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Figure 4 below shows undesirable levels of growth for the South African economy in the
past year. The adequacy of the current energy supply capacity relies on a dormant
economic growth outlook, and would be incapable of supporting the type of rapid
economic growth that the WCG endeavours to stimulate.

Figure 4 GDP growth

Source: StatsSA

The WCG and the City of Cape Town (CCT) have identified the availability of quality,
reliable and clean energy as a key strategic imperative. To this end, the Energy Security
Game Changer – which is a joint effort by the WCG, the CCT and the five largest local
municipalities (Stellenbosch, George, Drakenstein, Saldanha Bay and Mossel Bay)
– was established. This effort seeks to ensure long-term energy security through the
availability of reliable, diverse and low carbon energy to support economic and social
growth in the Western Cape. Already half of the Western Cape grid is supplied through
nuclear generation.

Successful implementation depends critically on the continuous engagement and co-
operation of multiple stakeholders within both government and the private sector.

“ If we want to continue on the upward trajectory of economic growth
and job creation in Cape Town, we need to act now to make our city and
province energy secure… We cannot leave the future of energy security in
the hands of Eskom. We no longer want to merely be distributors of electricity
”
but want to become energy creators as well.
Patricia de Lille, Cape Town Mayor

The message therefore is that there is insufficient power to support the economic
growth rates that the Western Cape is aspiring to, and even a slight uptick in the
economy could result in power outages. So we are not out of the woods, and a
special effort is needed to change the energy landscape of the Western Cape to
support growth.

20 QUARTERLY ECONOMIC BULLETIN 2016