To reduce electricity supply shortages, the National Treasury is working with the Department of Energy to consider the costs, benefits and risks of building additional nuclear power stations in South Africa.

Over the medium term, R200-million would be allocated to support preparatory work for nuclear procurement.

“Easing electricity, transport and telecommunications infrastructure constraints, alongside improved confidence and higher demand from major trading partners, are expected to boost gross domestic product growth to 2.8% in 2018,” the National Treasury said in a statement on the Medium-Term Budget Policy Statement.

The State had also built partnerships with the private sector to tackle the electricity supply gap, making additional capacity available through the Renewable Energy Independent Power Producer Procurement Programme.

This initiative was being extended to include investment in baseload coal generation plants.