NEWS
South Africa ’ s manufacturing and labour markets moving in a positive direction says Pepperstone
South Africa ’ s manufacturing sector is showing encouraging signs of renewed resilience as we close out 2024 . The PMI rose to 52.8 in September , signalling expansion and marking a step forward after a year of mixed performance .
The recent drop in the central bank ’ s interest rate to 8 %, though modest , is part of a broader approach to invigorate economic growth and strengthen domestic industries .
Youth unemployment has been stubbornly high , highlighting the need for targeted job creation initiatives .
The release of the latest employment data for Q3 is eagerly anticipated , as it will provide fresh insights into the current state of the labour market and potential shifts in hiring trends . With manufacturing activity expanding , there ’ s hope that job opportunities in the sector might also begin to pick up .
While challenges persist , South Africa ’ s manufacturing and labour markets are gradually moving in a positive direction . Supportive policies , if sustained and complemented by targeted reforms , could create the conditions needed for durable growth in both job creation and industrial output , turning these recent gains into a solid foundation for long-term economic health .
The labour market , however , remains a critical area to watch . South Africa ’ s unemployment rate was 33.5 % in the second quarter of 2024 , highlighting the ongoing challenges within the job market .
Further policy support could add to this positive momentum . The proposal to allow partial withdrawals from pension funds has generated interest as a potential way to inject capital into the economy , encouraging individuals to reinvest or boost personal spending .
Such moves would not only aid consumers but also have a cascading effect on manufacturing demand , supporting growth from both the supply and demand sides .
Ahmad Assiri , Research Strategist , Pepperstone
Teraco commences construction on 120MW solar PV plant to power its data centres
Teraco , a Digital Realty company and provider of interconnection platforms and vendor-neutral colocation data centres , announced that it has started construction of its 120MW utility-scale solar PV power plant in the Free State province of South Africa .
Teraco will own the 120MW solar PV plant and send the renewable energy to its data centres , with the plan to create its own sustainable energy source to power the next generation of client cloud and AI computing applications . The plant is expected to come online in late 2026 .
“ It is also only the first phase of our longerterm renewable energy commitment , with the construction commencement marking an important milestone in what has been a long journey over the last several years , and we are now looking forward to driving the project to completion ,” says Jan Hnizdo , CEO at Teraco .
This represents a holistic approach since Teraco plans to not only own its data centres , but also to power them with a renewable energy source , creating a sustainable path to growth . This initiative aligns with Teraco ’ s longterm vision of powering digital transformation across Africa . South Africa ’ s solar power represents a competitive advantage for data centres relative to other locations .
Teraco successfully secured grid capacity allocation from Eskom for the solar plant in February and has spent the last eight months finalising plant design and the wheeling arrangements between Eskom and the municipalities of Ekurhuleni and Cape Town , within which several of Teraco ’ s data centres are located .
Teraco will also be upgrading Eskom ’ s transmission infrastructure to allow the electricity generated to be successfully transmitted through the national grid . When fully operational , the 120MW solar PV plant is expected to produce more than 354,000 MWh annually .
Teraco has partnered with JUWI and Subsolar to develop the 120MW solar PV plant , with JUWI appointed to design and manage the procurement , construction , and commissioning .
Jan Hnizdo , CEO Teraco
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