South Africa Loosens Anti-Trust Rules to Battle High Energy Costs

South Africa has eased its anti-trust regulations, allowing firms to jointly build energy infrastructure and negotiate contracts to combat high electricity costs. This move aims to support distressed industries facing competition from countries like China. The government is also working on reducing tariffs to aid struggling smelters and steelmakers.

Amid surging electricity costs, South Africa has relaxed its anti-trust regulations to empower companies to collaborate in building energy infrastructure and negotiating supply deals. The trade minister, Parks Tau, announced that these measures are designed to provide relief to industries burdened by immense power expenses.

Electricity prices in South Africa have skyrocketed over 900% since 2008. This has hit smelters and steelmakers hard, as they grapple with competition primarily from China, whose manufacturers benefit from cheaper electricity. South Africa's strategic response includes efforts to lower tariffs from state-run utility Eskom.

Historically a leader in chrome ore production, South Africa has lost ground in the ferrochrome market due to power costs. Energy-intensive operations have been forced to close, leading to significant job losses. Firms like ArcelorMittal South Africa and Glencore-partly owned ferrochrome businesses are among those severely impacted.

(With inputs from agencies.)