South Africa’s renewable energy sector might just have the resilience to navigate the Covid-19 crisis, given that it was already on the rise and moving in the right direction prior to the outbreak. This is according to consulting firm Kearney.
This is amid an overall period of struggle in South Africa’s economy, as it looks to manage Covid-19 related disruption. The country has been downgraded into junk status in the Moody’s ratings recently, while estimates of its GDP growth have been revised downwards by analysts.
Some have blamed South Africa’s state owned energy distribution company Eskom for compounding economic pressure on the country, as it has faltered in its energy capacity and generation capabilities. Noting the impact that interrupted power supply can have on the economy, the government has been looking to develop a more reliable energy supply.
Amid the overhaul of the energy infrastructure, South Africa’s strategy has been to invest in sustainability to the greatest possible extent. Experts have suggested that the transition to sustainability amid its rebuilding process is a tremendous economic opportunity for South Africa.
While the Covid-19 pandemic has caused significant economic disruption, Kearney partner Prashaen Reddy suggests that South Africa’s drive towards renewables is likely to remain just as strong. When the dust settles, the renewables sector is likely to become a driver of economic recovery. Read more…
