Poets call Africa the heart of the earth. It is, both geographically and biologically. Yet, it remains the most underdeveloped continent. Only a handful of nations in the continent have become economically competitive with their European counterparts.
South Africa is one such nation. When it comes to economic development, Nigeria and South Africa are the two most developed nations in Africa.
South Africa has everything that makes it comparable to a developed Western nation. Better standard of living, good healthcare, top schools, and a fast-growing economy are some of the reasons why other nations look up to South Africa.
As with any developing country, South Africa too relies heavily on its energy sector to produce enough energy to meet the demands of industries, cities, and households.
A McKinsey report on the relationship between electricity consumption and GDP shows how “electricity consumption and economic development are closely linked; and growth will not happen without a step change in the power sector.”
South Africa’s economy is sustained by its energy sector. As of 2016, 84 percent of the population in South Africa had access to electricity. In comparison, 60 percent in Nigeria, 43 percent in Sub-Saharan Africa, and only 27 percent in Uganda had access to electricity. The situation gets worse in the least-developed countries of Africa, where as little as 8 percent have access to electricity.
But despite being an African energy superpower, South Africa has been plagued by frequent blackouts in recent months.
Poor Management and Corruption
Earlier this year, blackouts were increasing in South Africa. The state-owned electricity provider Eskom has provided residents with a schedule of “load shedding” and has advised to prepare accordingly. There are even apps that inform citizens about blackouts.
My friend who lives in South Africa calls these blackouts “extremely difficult, severe and disruptive.” She says people are angry about the situation as there is a power cut almost every day, especially when people get back home from work.
She says the corruption within the government and Eskom is seen as the main reason for the current state of affairs. Years of corruption led to poor management at Eskom, with underserviced machinery, hiring of shoddy contractors, and a complete failure to update their technology to keep up with the growing demand and expanding population.
Eskom is officially bankrupt. The government recently announced that Eskom will receive $1.5 billion every year from government to pull itself out of its own mess.
It was also announced that the entity will be split into three components and individual operational bodies for the purpose of electricity generation, transmission, and distribution. It will be many years before we see any significant benefits (or lack of them) from restructuring.
Fossil Fuels are the Way Forward
The South African case serves as a good, yet scary, example for the rest of Africa. Despite addressing their coal shortage in the 2000s, and although South Africa has plenty of coal at its disposal, the mighty Eskom was brought to its knees by gradual mismanagement and corruption.
It also emphasizes the fact that fossil fuel-based electricity does have the potential to meet the energy demands of rapidly growing economies like South Africa.
In 2015, 93 percent of South Africa’s electricity came from coal, oil, and gas sources. Africa, like rest of the world, cannot bypass fossil fuels in the search for energy liberation.
Six hundred million people lack access to electricity in Africa, and it is estimated that 240 million will still have no access to electricity in 2030.
But efficient use of fossil fuels and a corruption-free, proper management of the energy sector could ensure energy liberation in Africa’s darkest regions.
Featured photo by Damian Patkowski on Unsplash.
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