Eskom tariff hikes may hurt manufacturing, mining sectors

The state-owned power utility declined to confirm a report it had proposed to raise electricity tariffs by at least 14,6% over each of the next five years, according to iAfrica.com. This would climb to 19% if the government introduced a carbon tax or built new power plants beyond those already under construction.

The state wants the economy to create up to 5-million jobs by 2020, with manufacturing playing a key role in meeting this target.

Electricity prices, however, have been a key culprit of rising inflation in the past few years, in the process eroding the purchasing power of consumers and the profits of manufacturing and mining companies, iAfrica.com says.

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