If NDP is our economic blueprint then nuclear programme is already dead

Another day, another hammering for the Rand. And another reason to take a closer look at the proposed nuclear power fleet President Jacob Zuma seems so determined to foist on the country.

Zuma has, however, stated on numerous occasions the blueprint for South Africa’s economy is been documented in the National Development Plan. So Zuma and his acolytes can save us all a lot of fretting by having a read at what the NDP says about the nuclear proposal.

Virtually every time nuclear is mentioned in the document, the commissioners warn that careful attention must be paid to costs: “A potential nuclear fleet will involve a level of investment unprecedented in SA. An in-depth investigation into the financial viability of nuclear energy is thus vital. SA needs a Plan B should nuclear energy prove too expensive, sufficient financing be unavailable or timelines too tight.”

When the NDP was published in September 2012, the Rand traded at R8.31 to the US Dollar. Yesterday, it fell a futher 20c to R15,65. So the $100bn nuclear build has, in SA money terms, virtually doubled from the R830bn the NDP commissioners warned might be unaffordable. That has grown to R1 565bn. Can the case be made any more clearly? Or is there something else behind Zuma’s obsession?

* PS: I’ll be covering Nenegate and previewing the 45th World Economic Forum annual meeting at presentations in London en route to Davos. Among them is a breakfast on Friday 15th, hosted by Credo in the boardroom in North West London. It will be an intimate affair for Biznews community members (only 25 seats) so if you’d like to come along, please book your place soonest by emailing [email protected].

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