The economic imperative for nuclear power

Sectoral analysis reveals that nuclear power supports key industries. Mining, contributing 8% to GDP, and manufacturing, at 13%, require consistent power that wind and solar cannot provide. Nuclear projects will stimulate related sectors, such as construction and engineering, creating a multiplier effect across the economy that will, through ripple effects, catalyze prosperity and the much needed GDP growth in an economy struggling with 0,1% GPD growth and 0,2% population growth.

Policy implications and economic significance

Effective electricity policies are pivotal. Pricing must reflect true costs, including environmental externalities, rather than relying on government subsidies that distort markets. Nuclear power's low operational costs and high efficiency offer a sustainable model where electricity generation can be accurately predicted over a long period, providing a springboard for truly sustainable economic growth. Moreover, it will significantly enhance the balance of payments, a chronic issue for South Africa due to its reliance on imported energy technologies.

By leveraging domestic uranium reserves and PBMR/SMR innovations like the HTMR-100, the country could reduce imports, projecting an annual surplus of R8 billion on the current account by 2045.

FDI and skills development are additional benefits, as nuclear projects require a skilled workforce, addressing South Africa's skills gap and fostering long-term economic resilience. The construction phase alone will create over 33,000 direct jobs and 154,000 indirect jobs within a decade, supporting over a million dependents through the dependency ratio.

Moving forward for a resilient future

Most developing and emerging economies have a dilemma. On the one hand, there is intense global political and social pressure to limit their emissions of Carbon and Greenhouse gases (GHG); on the other hand, they face high unemployment and poverty levels. Every country needs to assess its economic and social needs.

Nuclear generated electricity, particularly SMR technology, is an economic imperative for South Africa, offering a reliable, cost-effective, and environmentally friendly solution. Its adoption will drive GDP growth, create jobs, and enhance economic sovereignty, setting the stage for a sustainable future.

Backed by rigorous analysis and expert insights, our report reveals a clear path to sustained economic growth and job creation through strategic investment in nuclear power, offering investors a stable, long-term opportunity in a sector poised to drive South Africa's electricity security and industrial competitiveness.

All countries need to pursue reliable, efficient, environmentally friendly electricity sources capable of generating and distributing dispatchable electricity to their industry and citizens. Nuclear generated electricity is undeniably the most reliable, cleanest and most sustainable way to do this.