South Africa’s Declining Currency
South Africa has long established its status as an economic powerhouse on the African continent and is eager to attract foreign investment to further itself as an emerging economic power. However, just recently, South Africa has been among other nations such as Turkey and Russia that have seen their currencies drop. Specifically, South Africa’s rand fell 7.5 percent in January (its weakest level since 2008).
Also, South Africa has been grouped with Brazil, India, Indonesia and Turkey and the nations have been collectively referred to as the Fragile Five. They have seen the largest weakening of their currencies and the biggest impact on economic activity.
Amongst the Fragile Five, South Africa has witnessed the largest weakening of its currency to date (33 percent). This mirrors both the largest current-account deficit (6.8 percent in Q3, 2013) and one of the lowest real GDP growth rates (1.8 percent in Q3, 2013) on declining exports and domestic labor disruptions.
Unfortunately, like other emerging markets in Sub-Saharan Africa, South Africa is still heavily resource-dependent. Its gold industry has been in terminal decline for decades as shafts plunge deeper, ore grades decline and costs climb, knocking it from the world’s biggest producer by far to number five, according to the World Gold Council. South Africa has the world’s biggest gold and platinum reserves, but its share of global output has dropped due to several problems. South Africa was the world’s biggest gold producer until 2007, but its output has plummeted from 428 tonnes in 2000 to just 167 tonnes in 2012 – its lowest output in more than a century.
The heavy industry and mining sectors in South Africa are pivotal to the nation’s economic turnaround but the fiend of poor power supply continues to make things difficult.
USP&E: Providing Power Solutions in South Africa and the rest of Africa
USP&E is a complete turnkey contracting company that specializes in EPC and O&M of Power Plants. We are a globally respected and trusted supplier of power station EPC and O&M services in emerging markets around the world. We build, provide engineering for, offer installation for, and provide service for conventional and renewable power solutions tailored to meet any requirement up to 500MW.
For more information on Power Solutions South Africa and the other services we (USP&E) have to offer, please contact us at info@uspowerco.com or go to www.uspowerco.com.
Below is a full list of our other main services:
- Bankable feasibility studies for as little as R 500, 000.00
- EPC and O&M services for HFO, Gas Turbine, and Hybrid solar and waste heat recovery solutions
- Surplus, new, and reconditioned power station assets in stock and ready to ship
- Full financing, leasing, or IPP options
USP&E Africa (South Africa address)
JOHANNESBURG
Willow Wood Office Park
Cnr 3rd Ave & Cedar Road
Broadacres, Gauteng 2021
Tel: (011) 064 5600
Mob: (072) 955 2560