Why South Africa should be worried about China's plans for Limpopo

Why South Africa should be worried about China's plans for Limpopo

- An industrial agreement between China and South Africa will lead to the construction of a 4 600 megawatt coal-fired power station in Limpopo

- This comes when South Africa should rather be focusing on renewable energy

- The Chinese companies involved in the project will enjoy tax breaks and specific privileges

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A large-scale agreement has been reached between South Africa and China that will see the construction of a 4 600 megawatt coal-fired power station in Limpopo.

South Africa has a power problem. No one can deny that but building a coal-fired power station is not considered the best solution to the problem.

Coal power is dirty and unhygienic, not to mention a problem for the environment.

The South African reports it is certain that the 9 Chinese companies involved will be bringing in their own employees and receiving massive tax breaks.

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Why should South Africa be concerned?

Basically, because there is little to no real benefit to the project for anyone except the Chinese.

South Africa should be pursuing renewable energy. Not only will this pursuit result in job creation, it will be environmentally safer as well.

The South African Energy and Metallurgical Special Economic Zone allows the Chinese to enjoy preferential taxes and privileges.

The Chinese companies will have VAT and import duty relief as well as pay a reduced corporate tax rate of 15%, instead of the 28% that is expected from SA companies.

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Why South Africa should be worried about China's plans for Limpopo

The planned power station (Image Source: The South African Energy and Metallurgical Special Economic Zone website)

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Source: Briefly.co.za

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