Energy Profile
The South African government is seeking to increase jobs and promote business development throughout the country with the hope of reaching annual 6.0 percent GDP growth in the future. In 2006, South Africa’s real gross domestic product (GDP) growth rate was 4.6 percent. The South African government has committed to ensuring that black-owned companies have access to the energy sector. Under its black economic empowerment (BEE) program, the South African government has set targets of 25 percent BEE ownership of energy companies by 2014. Large, predominately white-owned corporations have sold assets to achieve this objective, with the first sale occurring in 2000. BEE firms are commonly referred to as “empowerment” firms. The bulk of South Africa’s energy consumption mix is comprised of coal, which the country primarily uses to produce synthetic fuels. South Africa also consumes a substantial amount of oil. Only a small percentage of the energy consumption mix is comprised of natural gas and nuclear.
