South Africa Eases Anti-Trust Rules to Aid Energy-Intensive Firms

By Mintesinot Nigussie
Published on 01/08/26

South Africa has relaxed its anti-trust regulations to allow firms struggling with soaring electricity costs to jointly build energy infrastructure and collectively negotiate supply contracts, the government said on Wednesday. 

Reuters reported that the move targets distressed industries, including smelters and steelmakers, which are grappling with both domestic power costs and international competition.

Electricity prices in South Africa have increased by more than 900 percent since 2008, according to the Minerals Council. High energy costs have pushed several energy-intensive firms, including ArcelorMittal South Africa and a ferrochrome operation partly owned by Glencore, to mothball operations and lay off hundreds of workers.

The government notice said the amended rules allow companies to collaborate to “secure back-up or alternative energy supply, reduce energy costs and secure shared or adjacent sites, infrastructure, equipment and facilities.” The reforms are part of a broader package, which includes potential reductions in tariffs charged by state-owned utility Eskom, aimed at providing relief to affected firms.

South Africa, the world’s largest producer of chrome ore, once led global ferrochrome production but lost the top spot to China, largely due to lower electricity costs abroad. Some companies continue to struggle; for instance, Transalloys, operator of the country’s last functioning manganese smelter, said on December 30 it may have to shut the plant and cut hundreds of jobs if energy costs remain high.