One of the greatest challenges to South Africa’s economic future is implementing decarbonisation initiatives and the Just Energy Transition. TIPS held a meeting on 5 November where researchers shared their views on the South African economy in relation to the climate agenda.

Approximately 86% of employed people, or approximately 100,000 employees, are working in the coal mining sector. Those working directly in electricity generation at Eskom, along with linked employment in the value chain, exceed 12,000 people, and Sasol employs about 13,000 people associated with its petrochemical and mining operations.

The coal mines contributed approximately R4 billion in mineral royalties in 2023/24, and Sasol contributed an additional R4.3 billion in 2024. Therefore, the total taxes that fund South Africa’s services through coal value chains are R8.3 billion.

Another matter that is often overlooked is the regional cluster linked to manufacturing and the role manufacturers played in creating additional jobs through baseload consumption, which stabilised our electricity supply. Other sectors, such as agriculture, retail and accommodation, also contribute to the circular economy in the Highveld region of Mpumalanga. There are about 103 coal mines in the region, but it isn’t easy to find any substantiated information. Why?

There is an absolute risk of significant job losses among Sasol and Eskom, potentially reaching up to 25,000 in coal refining. Sasol appears to be more vulnerable due to the technical challenges associated with transitioning away from coal. Coal miners and their communities are at risk, and most of the JET’s focus remains on other areas, not in Steve Tshwete or eMalahleni municipalities. Rising energy costs, power issues are two of the main factors that caused the “manufacturing meltdown” since 2010. 

Considering the substantial resources available for the green agenda, the focus on creating a Just Transition for affected communities appears to be set aside as unimportant. MCCI members must decide if this is the future they want.