Macroeconomic Impact Analysis of Kusile and Medupi Electricity Generation Investment: An Eye Bird View at Construction and Operational Phase

Macroeconomic Impact Analysis of Kusile and Medupi Electricity Generation Investment: An Eye Bird View at Construction and Operational Phase

Joel Marumo Mosenogi

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Olebogeng David Daw

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North-West University

Macroeconomic Impact Analysis of Kusile and Medupi Electricity Generation Investment: An Eye Bird View at Construction and Operational Phase

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Abstract

Economic growth, unemployment, and inequality have been challenges facing South Africa in the past decade. Amongst others, energy security is one of the underlying factors of declining foreign direct investment and economic growth. This study investigates the impact of electricity investment in Kusile and Medupi power plant on the macroeconomic environment of South Africa with the application of the Social Accounting Matrix Model (SAM). The study results show that the infrastructure investment in the two-power station has a positive impact in the South African Economy at the macroeconomic level. Furthermore, infrastructure investment shows to have a positive impact on GDP and does add significant value to Gross Fixed Capital Formation in the country at both construction and operational phase of Kusile and Medupi. Furthermore, household income is positively impacted by the economy as a result of electricity infrastructure investment. The SAM-based Model shows that total employment will be positively impacted and labor force with different skills level will unequally benefit.

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Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

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Not applicable for this article.

How to Cite This Article

Joel Marumo Mosenogi. 2019. \u201cMacroeconomic Impact Analysis of Kusile and Medupi Electricity Generation Investment: An Eye Bird View at Construction and Operational Phase\u201d. Global Journal of Management and Business Research - B: Economic & Commerce GJMBR-B Volume 19 (GJMBR Volume 19 Issue B4).

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GJMBR Volume 19 Issue B4

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Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

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GJMBR-B Classification JEL Code: B22

Submission ReceivedDecember 16, 2018
Peer Review Double Blind
Handling Editor
Accepted January 1, 2019
Published January 15, 2019

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v1.2

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September 4, 2019

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