The Republic of South Africa (South Africa), a major coal producer and exporter, has a highly developed synthetic fuels industry and small reserves of oil and natural gas. Electrification is a key goal of the country's post-apartheid Reconstruction and Development Program (RDP).

BACKGROUND
South Africa has its first democratic, non-racial government in its history. Known as the Government of National Unity, the multi-party government headed by Nelson Mandela of the African National Congress (ANC) originally included seven political parties. The second largest party, the National Party, withdrew effective June 30, 1996. Deputy President Thabo Mbeki, succeeded President Mandela as leader of the ANC in December 1997.

The South African economy grew by 2.3 percent in 1997, and inflation rose from the 7.4 percent posted in 1996 to 8.9 percent. The South African government (SAG) was unable to reach some of the goals it established in its macroeconomic strategy, GEAR (Growth, Employment and Redistribution). Although inflation was below the GEAR target of 9.7 percent for 1997, GDP growth fell short of the GEAR goal of 2.9 percent. GEAR targets call for GDP growth of 6.1 percent and an inflation rate of 7.6 percent by 2000. Another objective of GEAR was the creation of 252,000 new jobs in 1997. Figures from the South African Reserve Bank showed a net loss of 62,000 jobs from the formal (non-farming) sector for the first two quarters of 1997. The mining sector, South Africa's largest foreign exchange earner, declined for the third successive year despite higher coal exports. The fall in gold prices led to a cut of 50,000 mining jobs. An additional 100,000 mining positions could be lost if the price of gold does not rebound. The agriculture and utility (electricity, water, gas) sectors continued to post strong gains in 1997.

The centerpiece of South Africa's domestic policy is its Reconstruction and Development Program (RDP) designed to distribute economic benefits previously enjoyed by only a small percentage of the population to the majority. Well over half of spending in the SAG 1997/1998 budget (nearly 60%) is allocated to social services including education, health services, housing, social security, and welfare. In previous SAG budgets the RDP was given its own funding, but under the current budget plan RDP spending is allocated to the various departments in the SAG that are affected. A major energy component of the RDP is an aggressive electrification program to supply electric power to an additional 2.5 million households over the 1994-2000 period (raising the percentage of households with electricity to 75 percent by 2000, compared with 44 percent at the end of 1995).

South Africa's international relations have been normalized since the 1994 elections, and the country is beginning to play a major role in African affairs. South Africa is a prominent member of the Organization of African Unity (OAU), the Southern Africa Development Community (SADC), and the Southern Africa Customs Union (SACU). President Mandela has helped mediate in Angola (between the Angolan government and UNITA), and in the civil war in the Democratic Republic of Congo (the former Zaire). South Africa has officially announced it is preparing its candidature for a permanent seat on the United Nations Security Council when and if the Council is expanded.

The cornerstone of South Africa's relationship with the United States is a Binational Commission, co-chaired by Vice President Al Gore of the United States and Deputy President Mbeki, which promotes ties across a broad spectrum of trade, business, human resource, energy, environment, and science and technology issues. The Commissions Sustainable Energy Committee coordinates efforts relating to the legal and financial infrastructure needed to increase the availability of electricity; construction of energy-efficient homes; use of clean, renewable fuels in homes and transportation; and training and job opportunities in the energy sector. The U.S. Department of Energy and South Africa's Department of Mineral and Energy Affairs are cooperating in an energy data and information exchange.

COAL
Coal is the primary fuel produced and consumed in South Africa. It is also South Africa's second largest foreign exchange earner (after gold). South Africa's coal reserves are mainly bituminous, with relatively high ash content (about 45%) and low sulfur content (about 1%). Three fields (Waterberg, Witbank, and Highveld) hold 70 percent of total recoverable reserves. Several areas, including parts of the Waterberg field, have been identified as having potential for future coalbed methane development.

South African coal production of 227 million short tons (mmst) in 1996 was unchanged from the 1995 production output. Several South African companies are planning mine expansions or new mine developments to help boost production. Ingwe, the nation's largest producer, is currently looking at the possible merger of some of its mining operations to supply Eskom, the parastatal electric utility, more cost effectively. Ingwe has initiated a feasibility study on recovering pillar reserves from its Douglas Colliery (coal mine) located in the Witbank coal field. In room-and-pillar mining, the most common method of underground mining, rooms are the places where the coal is mined, and pillars are areas of coal left between rooms to support the mine roof. If the project is deemed viable, Ingwe hopes to produce 6.6 mmst annually. Ingwe will process and market the output from Kuyasa Mining's Ikhewezi mine in Mpumalanga. Kuyasa is South Africa's first Black-owned and managed coal company. Sasol, South Africa's third-largest coal producer, is expanding production at its Twistdraai mine. Twistdraai, the primary supply for Sasol's coal exports, is one of the five mines that currently supply coal to Sasol's synthetic fuel/chemical plants in Secunda and Sasolburg. Sasol also has plans to develop a new mine, the Sigma North-West strip mine on the banks of the Vaal River. The new mine plan has raised fears from riverfront property owners and concerns over environmental impacts of the operation. If approved, the mine will produce 5 mmst annually when fully operational. The Save the Vaal Environment Group (SAVE) has petitioned the South African high court to stop the planned mine. If the mine project fails to proceed, Sasol will have to look at ways to further expand production from existing facilities. Anglovaal, another company, is also considering expanding production at its Forzando mine in Mpumalanga to 2.2 mmst a year by 1999. Forzando's current production capacity is 0.9 mmst annually. Anglovaal recently completed feasibility studies on reserves at Dorstfontein. If approved the new mine could begin operation by mid-1998 with estimated annual production of 0.4 mmst.

Exports (nearly one-third of total production) are shipped almost exclusively through the Richards Bay Coal Terminal (RBCT), the world's largest coal export facility. Europe is the primary export market destination, followed by the Pacific Rim countries. Only shareholding members of the company use the RBCT. Current shareholders are: Ingwe, Amcoal, JCI/Lonrho/Duiker, Total SA, Sasol, Gold Fields and Kangra. Anglovaal has recently secured long-term access to the RBCT in an agreement with Total SA for exports from its Forzando mine. In exchange, Total SA has been granted an option (until December 31, 1998) to acquire a 50 percent interest in Forzando. ISCOR has planned to reduce its 1998 exports of metallurgical (coking) by half as a result of its inability to gain entitlement to the RBCT. Expansion and upgrades to current RBCT facilities, will raise the export capacity to 71 mmst per year. Upgrades will include additional areas for the stockpiling of coal, and new shiploading and conveyor equipment. The expansion will allow an additional vessel to receive coal, without interrupting present shipping activities. Additional expansion of the current RBCT facilities, to 77 mmst per year by 2000, is being evaluated.

A plan to establish a second coal terminal at Richards Bay has also been proposed. Construction of the South Dunes Coal Terminal (SDCT) could begin in 1998, with an estimated completion time of three years. SDCT was originally envisioned as a facility to handle sized-coal (4.4 mmst annually), but the current plan entails facilities capable of handling 13.2 mmst of coal (2.2 mmst of sized-coal and 11.0 mmst of unsized steam/coking coal) per year. The project will allow small traders and coal exporters who do not have access to RBCT to export coal. Coal producers ISCOR and Gold Fields are currently involved in the development of the SDCT project. The parastatal coal rail line, Coallink, will spend nearly $143 million to upgrade and expand rail infrastructure in anticipation of expansion at the RBCT. This includes the purchase of a fleet of locomotives and rail cars to serve the SDCT.

Other port facilities utilized for coal exports are Durban and Maputo in Mozambique. ISCOR currently exports its coking coal through Durban, and Gold Fields is using Maputo as an export site. Exports through Maputo could increase in the future as infrastructure is upgraded and added. The rail-link between South Africa and Maputo is undergoing a $13.8 million upgrade, and there are plans to dredge the harbor to accommodate larger vessels. The future of Durban and Maputo as major coal export ports could be jeopardized by the fruition of the SDCT project.

Domestic consumption of coal was virtually unchanged at 165 mmst in 1996 (1995 consumption was 166 mmst). The majority of domestic consumption is steam coal used to produce electricity. Other major steam coal consuming sectors include: gold mining, the cement industry, and the brick and tile industry.

ISCOR's steel plants are the main consumers of domestic coking coal in South Africa. Three-fourths of the requirements (about 3.9 mmst annually) are met by ISCOR's mining operations (the fourth largest) in South Africa. ISCOR also utilizes imports of coking coal and supplies from other local producers to satisfy the remainder of its requirements. A bulk storage facility with the capacity to handle 220,000 short tons of imported coking coal is currently under construction at the RBCT.

Sasol's synthetic fuel and petrochemical operations is another significant domestic coal consumer. In 1995, the facilities consumed nearly 40 mmst of coal, and Sasol's mines met 95 percent of those requirements.

SYNTHETIC FUELS
South Africa has a highly developed synthetic fuels industry, which takes advantage of the country's abundant coal resources and offshore natural gas and condensate production in Mossel Bay. The two major players are Sasol (coal-to-oil/chemicals) and Mossgas (natural gas-to-petroleum products). Sasol has the capacity to produce 150,000 barrels/day (bbl/d), Mossgas 45,000 bbl/d. The SAG has decided to end Sasol's annual R1.1 billion subsidy, which was designed to protect it against cheaper imported crude oil, in stages finally ending in July 1999.

Sasol is the world's largest manufacturer of oil from coal, with coal liquefaction plants located at Secunda (oil) and Sasolburg (petrochemicals). Started by the government in the 1950s to help reduce South Africa's dependence on imported oil, the company was privatized in 1979. Coal is first gasified, then turned into a range of liquid fuels and petrochemical feedstocks. Sasol is upgrading its Secunda facilities to reduce costs and to help it remain competitive. The 860 million rand (R) program will improve the efficiency of gas to liquids conversion, and reduce operating and maintenance costs. Seven new reactor units are scheduled to be operational by the end of 1999. Sasol is expanding its coal-to-chemical operations. Two new gas-separation plants are scheduled to be built at Secunda with the first coming on line in 1999. The second unit is tentatively expected to be operational in 2001. Sasol also announced plans to construct a new methanol plant at its Sasolburg facilities. The new R 100 million will be capable of producing 140,000 tons of methanol annually. The plant is expected to be commissioned in the second half of 1998, and it will replace a 20,000- ton a year plant in Sasolburg.

Sasol has plans to market its synfuel technology abroad. Sasol and the Norwegian Statoil have signed a joint-venture agreement to develop facilities to turn natural gas into motor fuels. The process used by Sasol is less costly than a liquefied natural gas (LNG) project, hence the gas reserves of the field can be less than those needed by a LNG project to be economically feasible. The Sasol/Statoil plan calls for installation of a Sasol Slurry-Phase Distillation plant aboard a marine storage and transport ship for use in the North Sea. The plant would utilize gas currently flared and convert it to synthetic crude. A feasibility study on the project is scheduled to be completed by the end of the first quarter of 1998. Sasol is negotiating with the Qatar General Petroleum Corporation (QGPC) and Phillips Petroleum about a possible synfuel project utilizing gas from Qatar's vast North Field. Feasibility studies on the project are due to be completed by the end of March 1998. The project has the potential to produce from 10,000 to 20,000 bbl/d of synthetic crude oil. The estimated cost of the project is $260-$300 million.

Mossgas began production in 1993 and remains state-owned. The Mossgas plant receives natural gas and condensate from the F-A gas field in Mossel Bay through a 90-kilometer (54-mile) pipeline. It converts the gas into a variety of liquid fuels including motor gasoline, distillates, kerosene, and LPG.

The SAG has decided to reverse its position and not sell the Mossgas facilities. In December 1995, when the SAG announced plans to reduce and eventually eliminate the price subsidy for synthetic fuels, it also stated that it intended to sell Mossgas. However, in July 1996, a ministerial task force advised the government not to sell Mossgas as it did not consider any of the bids received acceptable. The SAG now plans to operate Mossgas as long as gas supplies last. The Auditor-General has called for a review of the Mossgas subsidy. In question is the compensation oil companies receive for taking up Mossgas's production, and the compensation given Mossgas for selling its products below normal market rates. A plan to convert the Mossgas facilities to a petrochemical complex would entail developing more gas reserves, and a conventional petrochemical plant is also being considered in Coega, which could jeopardize the conversion plans.

OIL AND NATURAL GAS
With the exception of offshore gas reserves in Mossel Bay, South Africa has been slow to develop its reserves of conventional oil and natural gas. The country imports crude oil primarily from the Middle East, with Iran as its chief supplier. South Africa has been trying to diversify its sources of imported crude and reduce its dependence on oil from Iran. Crude imports from Iran accounted for more than 90 percent of all imports in 1994. Iranian imports have decreased to 56.6 percent of total imports (in 1996) as South Africa has increased imports from Kuwait, Egypt and Angola. In November 1997, President Mandela signed a memorandum of understanding (MOU) with King Fahd and Crown Prince Abdallah ibn Abdul Aziz of Saudi Arabia to increase Saudi crude exports to South Africa.

In May 1997, the offshore Oribi field began production. The state-owned oil exploration company, Soekor, operates the field, 140 km (84 miles) offshore southwest of Mossel Bay. Oribi is currently producing 25,000 bbl/d. Soekor has estimated that Oribi has a field life of 4 years, but the projected development of adjacent discoveries could boost it by an additional 6 years. The Oribi satellite fields could yield 15-40 million barrels of oil.

Also in May 1997, a consortium, led by Phillips Petroleum, signed an exploration agreement for acreage on South Africa's eastern coast. The two blocks (17 and 18) stretch from the Mozambique border to south of Durban and comprise 14.5 million acres. Phillips, the operator with a 40 percent share, is joined by PanCanadian Petroleum, Sasol, and Energy Africa (Engen), a private South African firm. The other members each have a 20 percent stake. If hydrocarbons are discovered, the state will have the option of a 10 percent stake in the consortium through Soekor.

Engen, which also holds a 20 percent share in the Oribi field, was awarded a license off South Africa's western coast in October 1997. The two blocks, 3B and 4B, are located deep offshore. The geology of the region, and the fact that Namibia's offshore Kudu gas discovery is nearby, points to the possibility of significant gas discoveries.

Prior to the Engen signing, a similar agreement was reached with the U.S. company Pioneer Natural Resources for two offshore blocks (13A and 14A) near the city of Port Elizabeth.

In June 1996, the government announced plans to fund development of satellite fields off Mossel Bay in order to extend Mossgas reserves beyond 1997. Development drilling on the F-A (the source of current Mossgas production) field and the adjacent E-M field began in early 1997. Mossgas has requested a $213 million investment in the E-M field from SAG. Mossgas estimates that the E-M field could extend the life-span of Mossgas' synthetic crude output by 15 years. Soekor has also announced that it would like to take over and operate Mossgas' exploration and production functions. If approved by the SAG, Soekor would receive the licenses for the F-A and E-M fields, the F-A production platform and the pipeline, leaving Mossgas the synfuel facility. Soekor contends that the transfer would enhance the privatization possibilities of both entities. Although currently undergoing commercialization, the SAG has not established a schedule for Soekor's privatization.

In the near future, South Africa may begin to utilize imports of natural gas from the neighboring countries of Mozambique and Namibia. Shell has announced it will invest more than $300 million in the development of Namibia's Kudu gas field. Shell has stated that it has reached an agreement with Namibia's state-owned electric utility, NamPower, and Eskom to construct a $500 million gas-fired power station that will use gas from the Kudu field. The plant would be an independent power producer (IPP), and would supply electricity to both countries. A steel plant currently under construction at Saldanha (set to begin operation in 1998) has expressed interest in purchasing gas from the Kudu field. If the project proceeds on schedule, the feasibility study is expected to be completed in mid-1998, The first gas could be produced by 2000, and the first power supplied to the Namibian and South African electric grids by 2001.

Plans for additional gas-fired power plants on South Africa's east coast (although additional generating capacity is currently not needed) could use gas from Mozambique's Pande gas field. A planned direct-reduced iron plant in South Africa's Northern province would also utilize Pande gas.

Refining and Downstream Oil Activities
Multinational companies (including BP, Shell, Caltex, and Total) are major participants in South Africa's downstream petroleum markets. The two major South African companies involved downstream are Sasol (which operates a conventional oil refinery in addition to its synfuels plants) and Engen. Two Black-owned firms, Naledi Petroleum and Afric Oil are also involved in downstream activities. Worldwide African Investment Holdings (WAIH) recently purchased (in October 1997) 51 percent of the South African firm, Zenex Oil for R 400 million, consolidating its position as South Africa's largest Black-owned oil group. WAIH currently holds 67 percent of Afric Oil. The purchase of Zenex increases the number of retail outlets held by WAIH from 55 to 205. Also included in the sale were 20 fuel depots, a lubricant-blending plant and terminals in various parts of the country. Engen, the largest private South African oil firm, is currently involved in talks with several Black business groups about taking a significant minority stake in the company (15-20%).

Refining capacity (excluding synfuel plants) is currently 465,000 b/d. To meet regional demand and economic growth (gasoline demand growth has averaged 3-4% annually), refiners are considering significant expansion projects. The Sasol/Total joint venture announced in September 1997 that it is considering a $186 million capacity expansion project at its Natref refinery. If approved, the project will increase refining capacity at Natref by more than 30 percent, and include the ability to produce low-sulfur diesel. The project is expected to be completed by the end of 1999. The existing pipeline that supplies crude to the Natref refinery will be unable to carry the additional crude. An additional pipeline between Durban and Sasolburg is being planned. Talks are currently underway to include Petronet as a joint-venture partner in the $181 million pipeline project. Shell and BP are also studying a possible expansion project for their Sapref refinery. The Sapref plan entails a staged expansion, adding from 100,000- 150,000 bbl/d of additional refining capacity. When completed, the expansion would nearly double Sapref's current 165,000 bbl/d refining capability. Engen is studying expansion plans for its Gencor refinery in Durban, while Caltex has shelved plans for expanding its Cape Town-based Calref refinery.

The MOU signed between South Africa and Saudi Arabia in 1997 also called for a feasibility study on the joint-construction of a new refinery in South Africa. The study is scheduled to begin during the first quarter of 1998.

The Strategic Fuels Fund (SFF), the South African governments oil storage and trading arm, maintains strategic stocks of crude oil as insurance against interruptions in imports, but has been reducing the size of these reserves since 1991. Approximately 45 million barrels are currently held at two locations: the tank farms at Saldanha Bay (15 million barrels) and abandoned mines in the Ogies area (30 million barrels). This is nearly 100 days of supply based on current consumption. The SFF is currently studying the viability of commercializing its storage facilities at Milnerton near Cape Town. Originally used to store strategic crude oil, the 39-tank, 7.8-million-barrel- capacity facility has been systematically emptied as part of the government's policy to reduce oil stocks. To be economically viable, the Milnerton tank farm would require its own loading and discharge facilities. The SFF is evaluating the possibility of establishing a single point mooring system linked to the complex. Iran, and recently Saudi Arabia, have made proposals to lease 15-22.5 million barrels of storage capacity at the 47 million barrel Saldanha Bay facility. A decision to lease the storage has not been made.

ELECTRICITY
Parastatal company Eskom, one of the largest utilities in the world, generates nearly all of South Africa's electricity (approximately 95%). Eskom also owns and operates the national transmission system. Generating capacity (35,000 megawatts (Mw)) which is primarily coal-fired, also includes one nuclear power station at Koeberg (1,930 Mw), two gas turbine facilities, two conventional hydroelectric plants, and two hydroelectric pumped-storage stations. In addition to serving the domestic market, Eskom also exports power to Botswana, Lesotho, Mozambique, Namibia, Swaziland and Zimbabwe.

The SAG has granted Eskom the permission to sell three power plants currently decommissioned for scrap. The three plants, Highveld (480 Mw), Taaibos (480 Mw), and Ingagane (500 Mw) were all coal-fired. No decision has been made concerning the remaining mothballed coal-fired power plants Camden (1,600 Mw), Grootvlei (1,200 Mw), and Komati (1,000 Mw). Projected electricity demand growth would entail that the three plants return to operation, but the SAG is currently reviewing private and public (municipal)- sector partnerships, joint Eskom-private sector proposals, and individual private sector proposals on the re-commissioning of the power plants.

A new plan to distribute electricity was unveiled by the SAG in August 1997. The plan involves dividing South Africa into five regional electricity distributors (REDS), which would be joint-venture companies formed by Eskom (Eskom currently distributes nearly 60 % of the electricity it generates directly to end-users) and local authorities. The REDS would purchase electricity from generators (Eskom and IPPs) on the basis of wholesale purchase tariffs established by the National Electricity Regulator (NER). To help finance the REDS, the Electricity Restructuring Inter-departmental Committee (ERIC), the committee that formulated the REDS proposal, has suggested that a tax be placed on electricity charges. This levy would only last until the electrification programs are completed.

The REDS plan is a first step in the gradual unbundling of Eskom's generation, transmission and distribution activities. The ERIC and the NER will jointly draft legislation to ensure competition among companies unbundled from Eskom and new entrants into South Africa's power market. To accomplish this goal it will be necessary to convert Eskom into a quasi-private entity that is taxed by the SAG. The ERIC has stressed that for Eskom to be competitive the SAG should grant Eskom tax breaks for its rural electrification programs. The NER has offered an alternate proposal for electrification funding. Under its plan, dividends received from Eskom would flow into a newly established National Electrification Fund (NEF), and these funds would finance electrification. Creation of the NEF would shift the electrification portion of the RDP from Eskom to an autonomous institution directly under SAG control.

The RDP electrification goal was exceeded for 1996. A total of 453,995 (RDP goal of 450,000) homes were connected to the national grid by December 31, 1996, raising the total share of homes electrified to 54.6 percent. All provinces except KwaZulu-Natal and Mpumalanga exceeded their 1996 electrification targets. Eskom was responsible for connecting nearly 310,000 homes in 1996. A total of 1.75 million homes will have been connected by 2000 to meet the RDP goal of 75 percent electrification.

South Africa and the other members of the SADC signed a memorandum of understanding in August 1995 to establish a Southern African Power Pool (SAPP). An interconnection with Zimbabwe was inaugurated in March 1996. Reconstruction of the connection between the Cahora Bassa dam in Mozambique and the South African power grid was completed in August 1997. Over 2,000 pylons along the 560-mile (900-kilometer) transmission line were destroyed during the civil war in Mozambique. A second line from Cahora Bassa to South Africa was scheduled to be completed by the end of August 1997. South Africa is expected to receive nearly 75% of the electricity generated by the Cahora Bassa hydroelectric facility.

A 450-mile (720-kilometer) line connecting South Africa and Namibia will be completed in 2000. In July 1997, Swaziland approved the construction of a line connecting South Africa (via Swaziland) to Maputo, Mozambique. The line completes another link in the SAPP, and replaces proposals for separate lines running from Mozambique and South Africa to Swaziland.

RENEWABLE ENERGY
The most widely used renewable energy source in South Africa is fuelwood, which meets the daily energy needs of more than one-third of the country's population. Deforestation attributed to increased fuelwood consumption by a growing population has prompted interest in other renewable energy sources, particularly solar, which could play an important role in supplying power to isolated rural areas not currently connected to the electric power grid. In 1995, South Africa was the destination (the fifth largest) for 6.5 percent of U.S. photovoltaic cell and module exports.

South Africa participates in the Renewable Energy for African Development program (READ), which was set up in 1993 to promote cooperation between African countries and U.S. industry, government, and academia. The non-profit program promotes sustainable rural development through appropriate use of renewable energy technologies.

ENVIRONMENT
Environmental programs are an important element of the RDP. Development of policies for sustainable traditional fuels (e.g., sustainable forestry projects), the development and supply of low-smoke coal, and energy conservation and efficiency all have high priority in the RDP.

South Africa's Department of Environmental Affairs and Tourism has overall legal responsibility for setting pollution standards and monitoring compliance. With the exception of particulate standards, however, there are no legal standards (only voluntary guidelines) for power plant and vehicle emissions. However, as of 1996, all new cars are required to run on unleaded gasoline, and unleaded fuel prices are being discounted.

COUNTRY OVERVIEW
President: Nelson Mandela (since May 10, 1994)
Deputy President: Thabo Mbeki
Independence: May 31, 1910 (from United Kingdom)
Population (11/97E): 43.0 million
Location/Size: Southern Africa/1.2 million square kilometers (471,445 square miles, nearly twice the size of Texas)
Major Cities: Pretoria (capital), Johannesburg, Durban, Cape Town
Languages (official): Afrikaans, English, Ndebele, Northern Sotho, Southern Sotho, Swazi, Tsonga, Tswana, Venda, Xhosa, Zulu
Ethnic Groups: Black (76%) , White (12%), mixed race (Colored) (9%), Asian (3%)
Religions: Christian (Dutch reformed, other Protestant and Catholic denominations) 60%, Jewish, Hindu, Muslim, and traditional African religions
Defense (1996E): Army, 118,000; Navy, 5,500; Air Force, 8,400; Medical Corps, 6,000

ECONOMIC OVERVIEW
Minister of Finance: Trevor Manuel
Currency: 1 rand (R) = 100 cents
Market Exchange Rate (1/15/98): US$1 = 4.97 R
Gross Domestic Product (GDP - 1990 dollars)(1997E): $117.2 billion
Real GDP Growth Rate (1997E): 2.3%
Inflation Rate (1997E): 8.9%
Unemployment Rate (4Q95): 29.3%. Unofficial estimates range from 32-45%
Merchandise Exports (1997E): $30.8 billion
Merchandise Imports (1997E): $29.1 billion
Trade Balance (1997E): $1.7 billion
Major Exports (1997): Gold (26%), metals and metal products (16%), minerals (15%)
Major Imports (1997): Machinery and equipment (32%), chemicals (10%), finished goods (7%)
Major Trading Partners (1997): Japan, Germany, Italy, United Kingdom, United States
Current Account Balance (1997E): -$1.8 billion
Total Reserves, Non-Gold (12/97E): $4.2 billion

ENERGY OVERVIEW
Minister of Mineral and Energy Affairs: Penuell Maduna
Proven Oil Reserves (1/1/98E): 29.4 million barrels
Oil Production (1997E): 182,000 barrels per day (bbl/d), of which about 170,000 bbl/d is synthetic
Oil Consumption (1996E): 480,000 bbl/d
Net Oil Imports (1996E): 285,000 bbl/d
Crude Refining Capacity (1/1/98E): 465,000 bbl/d
Natural Gas Reserves (1/1/98E): 826 billion cubic feet (bcf)
Natural Gas Production/Consumption (1996E): 69.2 bcf
Recoverable Coal Reserves : 61 billion short tons
Coal Production (1996E): 227.5 million short tons (mmst)
Coal Consumption (1996E): 164.7 mmst
Net Coal Exports (1996E): 65.9 mmst
Electricity Generation Capacity (1996E): 34.6 gigawatts
Electricity Generation (1996E): 186.9 billion kilowatthours (bkwh), of which 5.6 bkwh was exported
Electricity Consumption (1996E): 168.3 bkwh

ENVIRONMENT OVERVIEW
Total Energy Consumption (1996E): 4.3 quadrillion Btu
Energy Consumption Per Capita (1996E): 100.5 million Btu (vs. 351.9 million Btu in U.S.)
Energy-Related Carbon Emissions (1996E): 96.0 million metric tons (1.6% of the world total)
Carbon Emissions Per Capita (1996E): 2.3 metric tons (vs. 5.5 metric tons in the United States)
Major Environmental Issues: Lack of arterial rivers or lakes requires extensive water conservation and control measures; growth in water usage threatens to outpace supply; pollution of rivers from agricultural runoff and urban discharge; air pollution resulting in acid rain; soil erosion; desertification

ENERGY INDUSTRY
Organization: Amcoal, Ingwe, Sasol, ISCOR, JCI/Lonrho - major private coal producers; Eskom - parastatal electric power company; Sasol - coal-to-liquid synthetic fuels group (privatized in 1979); Mossgas - state-owned gas-to-synthetic fuels plant; Soekor (the Southern Oil Exploration Corporation)-oil and gas exploration/development (state -financed); Strategic Fuels Fund Association - strategic oil storage facility and state oil imports; Petronet - petroleum pipelines and tank farm.
Major Coal Fields: Waterberg, Witbank, Highveld
Major Coal Ports: Richards Bay Coal Terminal
Oil Refineries (1/1/97 Capacity): Shell/BP - Durban (165,000 bbl/d); Caltex - Cape Town (100,000 bbl/d); National Petroleum - Sasolburg (95,000 bbl/d); Engen - Durban (105,000 bbl/d)

For more information from EIA on South Africa, please see:
EIA - Country Information on South Africa

Links to other sites:
1997 CIA World Factbook - South Africa
U.S. Department of Energy's Office of Fossil Energy's International section - South Africa
U.S. State Department's Consular Information Sheet - South Africa
South African Consulate-General in the U.S.
Country Commercial Guide - South Africa provided by the U.S. Department of Commerce
U.S. State Department Background Notes on South Africa - November 1994
1996 Country Report on Economic Policy and Trade Practices - South Africa - U.S. Department of State

The following links are provided solely as a service to our customers, and therefore should not be construed as advocating or reflecting any position of the Energy Information Administration (EIA) or the United States Government. In addition, EIA does not guarantee the content or accuracy of any information presented in linked sites.
GEAR - South African Macroeconomic Strategy
1997 South African Budget
Eskom - South African Parastatal Electric Utility
Economic and Financial Data - South African Reserve Bank
South Africa - Central Statistical Service
Rand Afrikaans University, Institute for Energy Studies, South African National Energy Data
Department of Commerce Big Emerging Markets (BEMS): South Africa
MBendi Country Profile - South Africa
South African Government of National Unity
Southern Africa Development Community (SADC)

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File last modified: February 2, 1998

Contact:

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