The South African economy is resource intensive and not very efficient in the use of natural resources. This especially refers to energy and water intensity and inefficiency, as well as wasteful management of our land. Reducing resource intensity and improving efficiency will be an essential ingredient in unlocking future economic and employment growth. Otherwise, we will find that limited resources could put on a brake on growth.

Cheap energy and abundant coal supplies have resulted in an energy-intensive economy. There are efforts underway to reduce energy intensity, although these are progressing slowly. It is expected that the rising price of electricity will in itself have a major impact, as could investment incentives recently introduced. Energy intensive investments reliant on coal have translated into, a high carbon emission intensity. Between 1970 and 2000, the country’s emissions grew from about 150 megatons to 460 megatons CO₂ equivalent. In 2000, 83 percent of emissions were associated with energy supply and consumption; 7 percent were associated with industrial processes; 8 percent associated with agriculture; and 2 percent resulted from waste.  South Africa has made commitments to reducing carbon intensity, and there are challenges and trade-offs associated with their achievement.

The availability and use of water will shape economic development not only in South Africa, but in all of Southern Africa in the years to come. Some of South Africa’s catchments, for example, will not sustain supply for economic growth beyond certain levels. Ten of the 19 river systems have water deficits. Mining, industry, agriculture, households and the ecology all place competing demands on water. The challenges in water supply are discussed in detail in Chapter 4: Material Conditions.

In 2005 the solid waste system managed the disposal of 20 megatons of municipal solid waste, 450 megatons of mining-related wastes and 30 megatons of power station ashes. Municipal solid waste quantities are growing faster than the economy in many cities, and the daily average of 2 kg/person in South Africa is high in comparison with other parts of the world.

South Africa falls within the so-called third major soil region that is typical in mid-latitudes on both sides of the equator. The land is dominated by shallow sandy soils, placing inherent limits on agriculture. Only 13 percent of the land is arable and just 3 percent is high-potential land. The result is a tendency towards overexploitation.

Overview of the extent and nature of the unbuilding - (463KB)