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Energy subsidies in South Africa 2025...
24 Dec, 2025 13:13 60 min read
A new analysis reveals South Africa’s energy subsidies reached at least ZAR 198 billion (USD 10.8 billion) in FY 2025, with 55% directly supporting fossil fuels. These subsidies lock the country into a high-emissions path, impose a heavy fiscal burden, and are an inefficient way to support low-income households. Key reforms recommended include developing a comprehensive action plan to phase out inefficient subsidies while protecting the vulnerable, restructuring Eskom’s finances, improving the targeted delivery of free basic electricity, strengthening the carbon tax, and prioritizing support for renewable energy and public transport.... More