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BINDING CONSTRAINT

31st October 2014

By: Darlene Creamer

  

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There is little likelihood that South Africa’s electricity constraints will ease materially even after the first Medupi unit has been introduced. In addition, a tariff hike of nearly 12.7% has been approved for introduction from April 1, 2015, with a possibility of more hikes, despite a recent government bail-out of Eskom. So, sadly, electricity’s squeeze on economic growth is set to continue for some time yet.

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