In light of the recent Eskom tariff increase, Bronwyn Timm, Business Development Manager, SOLA Group , writes about how South African businesses can shift from energy dependence to energy resilience.
The Eskom tariff increase is changing how the industrial and commercial sectors perceive dependence. While the 8.76 is substantial and comes at a time of relatively weak growth and tight margins, it creates an opportunity for companies to change their structural approaches to energy.
Energy economists and industry analysts have warned that the hikes will raise operating costs with manufacturers likely passing these costs into final prices due to the added weight of fuel inflation. The conflict in the Middle East has also affected South Africas GDP growth, which was downgraded to 1.5 in March from 1.6 in February. Yet, this growth dip isnt as severe as expected and South Africa's growth is proving resilient when compared with the 1.0 predicted by the International Monetary Fund IMF.
