South Africa is experiencing rapid deindustrialisation. The mining sector has lost a considerable number of jobs. One way to address this is to turn South Africa into a green economy, which requires a set of no-regret actions by the government, such as tackling corruption, adopting ambitious fiscal policy for decarbonisation, and increasing R&D spending. This paper, which was commissioned by Germanwatch, finds that energy-intensive sectors such as steel and ferrochrome need lower input costs, technology upgrades, stable logistics, and affordable green energy. For ferrochrome, improved regulation and adoption of new technology are crucial for reducing electricity use and reviving smelters. In hard-to-abate areas like cement, high costs and limited storage make carbon capture impractical; funding should target low-carbon material research and infrastructure renewal. All of these steps will depend on effective institutions, support for civil society, and integrity in governance, including measures against corruption and infrastructure mafia, in order to revitalise South African economies.
This study is accompanied by a study on industrial decarbonisation in Indonesia. For a blog post that summarises both publications, see here.
