South Africa's needless nuclear plan may be ruinous

Significance

Critics worry that the over 700-billion-rand (50-billion-dollar) scheme is unaffordable and would facilitate large-scale graft.

Impacts

• Power exports to neighbouring states will help offset shortages caused by drought, which is limiting their hydroelectric output.
• Zuma's protection will insulate the energy minister from a scandal surrounding the sale of the state's strategic fuel stocks.
• Low commodity prices will limit mining firms' appetite to leverage improved power supplies to expand their operations.
• Reliance on electricity distribution revenues will temper city authorities' desire to push renewable energy.
• The nuclear programme would create extensive opportunities for kickbacks to politically connected businesspeople.