Pretoria: As South Africa faces rising tax pressures and energy costs, Deputy Minister of Electricity and Energy, Samantha Graham-Maré has reassured businesses and citizens that the government is working hard to protect jobs and drive economic growth in the face of these new challenges.

According to South African Government News Agency, the Ministry of Electricity and Energy has highlighted the looming threat of the upcoming Scope 2 tax on indirect emissions and the European Union’s Carbon Border Adjustment Mechanism (CBAM), which could significantly raise costs for businesses and put R52.4 billion in exports at risk. Coal currently powers nearly 80% of South Africa’s electricity, and these new regulations could have a profound impact on the economy.

By 2034, South African companies could face up to a 60% increase in electricity costs due to these new carbon taxes, with rates expected to jump from R190 to R462 per tonne by 2030. As current tax allowances are gradually phased out, some industries may see an
overwhelming 340% increase in carbon tax payments. However, there is a path forward to secure jobs and promote growth.

The Deputy Minister emphasised that now is the time to invest in cleaner, cost-effective energy sources to build a more resilient, sustainable economy for all South Africans. She stated that the government’s priority is to protect jobs and strengthen the economy. By embracing renewable energy, South Africa can reduce emissions, create new opportunities for growth, secure the future of its industries, and maintain competitiveness in a global market that increasingly values sustainability.

The Ministry has assured businesses that the government stands ready to collaborate to unlock the potential of renewables. This approach aims to reduce dependence on coal, stabilise energy prices, and secure a prosperous future for South African workers and families. The Ministry underscored that energy efficiency translates to job creation and that together, they can protect jobs, build resilience, and pav
e the way for sustainable economic growth.