South Africa’s move to renewable energy means that the coal industry will be phased out over the coming decades. This transition away from a fossil-fuel based economy will affect over 100,000 workers in coal mining and coal-fired power generation – and their families. Economics professor and director of the Development Policy Research Unit at the University of Cape Town, Haroon Bhorat, and economists Francois Steenkamp, Tsungai Kupeta and Lisa Martin researched how many workers will be affected by the transition, and came up with ideas for policies to lessen the impact of the transition on vulnerable households and regions.
What does South Africa’s coal industry look like?
Globally, coal mines are generally concentrated in certain areas. This means that the labour market effects of the transition away from coal are also mainly concentrated in particular regions. For example, in South Africa there are 78 operating coal mines. Of these, 65 (or 83%) are located in the south-west part of Mpumalanga province. These 65 mines also account for approximately 80% of total coal production.
