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Understanding South Africa’s Energy Crisis (By NJ Ayuk)

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Energy Crisis

The frequent and extended power outages taking place have left businesses in Africa’s most industrialized country struggling to function

JOHANNESBURG, South Africa, March 20, 2023/APO Group/ — 

By NJ Ayuk, the Executive Chairman of the African Energy Chamber (www.EnergyChamber.org) and Author of A Just Transition: Making Energy Poverty History with an Energy Mix

Witnessing the far-reaching effects of South Africa’s continuing power cuts has been tremendously disheartening.

The frequent and extended power outages taking place have left businesses in Africa’s most industrialized country struggling to function. Manufacturing is suffering. The national economy is taking a hit. The prolonged darkness is emboldening thieves and pushing crime rates up. And as state-owned utility Eskom spends increasingly more on what are ultimately unsuccessful efforts to fix the problem, its operational costs are surging. Those costs are being passed along to consumers and businesses in the form of power price hikes, placing additional burdens on them.

I don’t believe President Cyril Ramaphosa was overreacting last month when, in response to the outages — by then leaving people in the dark six to 10 hours a day — he declared a national state of disaster. This freed emergency funding and gave the government additional powers, including streamlined procurement processes. I agree with the grave concerns he shared during his State of the Nation address in February.

“We are in the grip of a profound energy crisis,” Ramaphosa said. “The crisis has progressively evolved to affect every part of society. We must act to lessen the impact of the crisis on farmers, on small businesses, on our water infrastructure and our transport network.”

This crisis, explored in depth in our soon-to-be-released report, The State of South African Energy (https://apo-opa.info/42oP0Ra), is hardly a new problem. But the alarming frequency and length of South Africa’s periods without power have created an untenable situation that, as the president said, is putting the country’s well-being at risk.

Bleak Situation

At the root of South Africa’s energy crisis are the country’s coal-fired power plants, which are responsible for generating about 95% of the country’s electricity. These facilities are old, over-used, and constantly breaking down.

To make sure the country’s struggling plants aren’t overwhelmed to the point that they trigger a total shutdown of the grid, it has become common practice at Eskom to implement deliberate power shutdowns, also known as rolling blackouts or load-shedding, several times a day.

South Africa’s outages have set records for the past three years. In 2020, they reached a new high of 859 hours. That number rose to 1,169 hours in 2021. But 2022’s record far exceeded anything seen up to then: 205 days of rolling blackouts.

Last October, the Pan South African Language Board (PanSALB) made “load-shedding” the 2022 South African Word of the Year.

“It should come as no surprise to many South Africans that load-shedding has been the most used word/term in South Africa as the dreaded rolling blackouts instituted by Eskom have largely defined our lived experience in 2022,” PanSALB CEO Lance Schultz said at the time.

Failed Fixes

At the root of South Africa’s energy crisis are the country’s coal-fired power plants, which are responsible for generating about 95% of the country’s electricity

Also frustrating is the costly and unsuccessful saga of attempting to resolve this issue. About 15 years ago, South Africa began construction on two coal-fired plants, Medupi and Kusile, to increase the country’s power-generation capacity.

That has not worked out according to plan. Today, the plants are only operating at half of their combined 9600 megawatts (MW) capacity because of breakdowns, technical defects, completion delays, and accidents. And despite the plants’ inoperability, the project costs have been enormous, reaching a combined total of R300 billion by 2019.

Even with the hefty tariff increases imposed on customers, the company is struggling to keep up with its costs.

And last September, Ramaphosa announced that completing the two power stations will cost another R33 billion.

Distressing Repercussions

Then there are the costs of South Africa’s continuing power struggles. I mentioned some of the negative repercussions on business, crime, and electricity tariffs. But that’s only part of the story: Every outage has a devastating ripple effect that puts people at risk.

In South Africa, outages are causing food to rot, and they’re increasing the risk of widespread food insecurity. Every day, load-shedding impedes farmers’ ability to keep crops watered (pump stations that rely on electricity don’t operate) and livestock alive (one farm, for example, lost 50,000 broiler chickens when the ventilation system failed).

The outages impact hospitals and healthcare for the disabled and elderly. People who rely on electricity for medical equipment, like oxygen machines, are being put in life-threatening situations.

Our report provides another troubling detail: the outages’ cumulative effect on what South Africa could have achieved. Since 2007, load-shedding has cost South Africa a staggering R1.5 billion – R2.4 billion per day. The result: Every year since 2007, 1-1.3% of the country’s GDP has been shaved away. That means that without load shedding, South Africa’s economy could have been about 17% larger than it is now.

I know there is little that can be done about what could have been, but I hope that confronting these painful truths galvanizes South Africa’s leadership to put the country on a new path, one where the country begins realizing its full potential.

South Africa’s energy challenges will be front and center at African Energy Week scheduled to take place on 16-20 October in Cape Town.

The “State of South African Energy Report” will be released later this month. Visit https://EnergyChamber.org for details or register now to be the first to receive a copy: https://apo-opa.info/40fWcOh

Distributed by APO Group on behalf of African Energy Chamber.

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Mukuru Partners with Flash to Add 170,000 Cash Pay-in Points Across South Africa

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Mukuru

New partnership brings remittance payments into township, peri-urban and rural spaza shops nationwide

JOHANNESBURG, South Africa, November 6, 2026/APO Group/ –Mukuru (www.Mukuru.com), a leading financial services provider, has partnered with Flash, a payments technology company with an extensive network of spaza shops across South Africa, adding 170,000 cash pay-in points where customers can now pay for their Mukuru remittance orders. The network includes Flash’s broader merchant footprint, giving Mukuru access to locations through Flash and its partner networks. These new locations are now operational, reducing the time and distance many customers currently travel to make a payment.

Previously, customers often had to travel to banks or dedicated payment outlets to pay for their Mukuru orders. Now, they can simply visit a spaza shop close to home, work or where they usually shop.

For people in townships, peri-urban and rural areas who rely on cash and have traditionally had limited access to formal pay-in points, particularly South Africa’s migrant communities, this change removes a real barrier and makes it easier to send money home. With these pay-in points inside spaza shops, Mukuru’s services become part of places people already go, meaning fewer extra trips and more timely payments.

Every additional pay-in point represents one less barrier for a customer trying to send money home

“Every additional pay-in point represents one less barrier for a customer trying to send money home,” said Erone Kyte, Commercial Manager: Cross-Border Remittances at Mukuru. “Our partnership with Flash gives us the scale to bring Mukuru’s services into the everyday spaces our customers already know and trust. It’s a meaningful step in making remittances simpler, more accessible and genuinely closer to the communities we serve.”

For Mukuru, working with Flash means reaching even more customers in underserved urban, township, and rural areas. By leveraging Flash’s established network, Mukuru can now offer cash pay-in options where they didn’t exist before. The expanded network is expected to help more people access Mukuru’s services, support growth in its South African customer base, and make cross-border payments more convenient.

Rens Rezelman, General Manager for Flash’s Merchant Division, commented, “Flash works to bridge the digital product and payments gap between businesses and consumers across the country. Launching Mukuru across our network presents another opportunity to bring a familiar brand closer to the people who need it most.”

The sector is now recognised as a R750 billion  industry. According to data tracked by Trade Intelligence, total turnover recently reached R197 billion, growing at roughly 15% annually. Research confirms that traditional trade and spaza shops are growing faster than large supermarket chains, with almost 80% of South African households shopping at these traditional trade outlets regularly. (https://apo-opa.co/4iDwZr8) Bringing Mukuru payments to these stores is a natural fit and helps shop owners draw in more customers and offer more services to their communities. Mukuru and Flash will build awareness of the new pay-in option through store, digital, and community promotions in the coming months.

This partnership is part of Mukuru’s ongoing drive to make cash pay-ins easier and improve access to remittance services for people living and working in areas with limited formal financial services. Over the past two years, the company has made similar moves to make its payment network bigger and more accessible across the region.

Mukuru customers looking to pay closer to home can easily find their nearest participating Flash pay-in point using the Mukuru app or website.

Distributed by APO Group on behalf of Mukuru.

 

 




 

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How CESI is helping shape Africa’s next-gen power grids

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CESI

CESI, a global engineering and consulting company specialising in power systems and energy transition, has supported utilities, transmission system operators and public institutions

CAPE TOWN, South Africa, November 6, 2026/APO Group/ –Across Africa, power systems are undergoing a profound transformation. Rapid population growth, urbanisation, industrial development and ambitious electrification goals are increasing pressure on networks that must improve reliability, integrate growing volumes of renewable energy and strengthen regional interconnections.

 




 
 

For utilities, regulators and governments, this creates a dual challenge: planning future power systems while modernising the infrastructure required to operate them safely and efficiently.

Drawing on projects delivered across the continent CESI, a global engineering and consulting company specialising in power systems and energy transition, has supported utilities, transmission system operators and public institutions in addressing both long-term planning requirements and grid modernisation challenges. These experiences highlight how strategic planning and operational modernisation are becoming increasingly interconnected.

Planning for growth in a changing energy landscape

Many African countries are updating power sector strategies to reflect changing demand patterns, evolving technologies and new regional opportunities. National master plans in countries including Angola, Mozambique and Liberia are examining how generation, transmission and distribution systems can evolve over the coming decades while remaining technically feasible and financially sustainable.

A key trend is the growing emphasis on integrated planning. Rather than treating generation, transmission and distribution separately, stakeholders are increasingly assessing investments across the entire value chain to meet future demand efficiently and reliably. Demand forecasting methodologies are also evolving, considering industrial development, electric mobility and broader electrification trends.

Renewable energy integration is another central consideration. Africa possesses significant solar, wind and hydropower resources, but integrating these technologies requires careful assessment of transmission capacity, system flexibility, reserve requirements and grid stability. In this context, CESI has contributed to power sector master plans and network studies evaluating future development pathways while addressing reliability, economic and energy transition objectives.

Regional interconnections as strategic infrastructure

Regional integration continues to play an increasingly important role in Africa’s electricity sector. Future Interconnection projects linking countries such as Ethiopia and Somalia, Uganda and Tanzania, and Uganda and South Sudan demonstrate how cross-border infrastructure can enhance energy security and optimise the use of available generation resources.

Delivering these projects requires more than engineering analysis. Technical, economic, regulatory and operational considerations must be aligned among participating countries. Through its involvement in several interconnection initiatives at different stages across Africa, CESI has supported stakeholders in assessing feasibility, network performance and operational requirements for cross-border electricity exchanges.

As regional power markets continue to develop, interconnected systems are expected to contribute further to reliability, operational flexibility and efficient resource utilisation.

Modernising grid operations for greater reliability

Alongside long-term planning, utilities are investing in modern operational technologies to improve management of increasingly complex power systems. Control centres, SCADA systems, energy management systems (EMS) and telecommunications networks are becoming essential components of modern grid operations.

In countries including Mozambique and Angola, projects are supporting the development of advanced control centres capable of monitoring generation facilities, transmission networks and interconnections through integrated operational platforms. These systems provide operators with real-time visibility and decision-support capabilities that strengthen system reliability and operational efficiency.

Meanwhile, programmes in Tunisia and Nigeria illustrate how utilities are upgrading ageing SCADA and EMS infrastructures to meet evolving requirements. Modern solutions increasingly incorporate

  • cybersecurity,
  • wide-area monitoring capabilities and
  • renewable energy management functions.

CESI’s experience in control centres, SCADA/EMS systems and power system operations reflects the growing importance of digital technologies in enabling more resilient and responsive electricity networks.

Building resilience and technical capacity

Environmental and social considerations are becoming increasingly important across both planning and modernisation initiatives. Climate resilience now plays a central role in infrastructure development, particularly in countries exposed to extreme weather events or heavily dependent on hydropower resources. As a result, environmental and social assessments are increasingly integrated into project design and investment decision-making processes.

Capacity building is equally important. New technologies and analytical tools require utilities and public institutions to continually strengthen technical capabilities. Training and knowledge-transfer programmes have therefore become integral components of many planning, interconnection and grid modernisation projects, helping organisations develop the expertise needed to manage increasingly sophisticated power systems.

An integrated approach to Africa’s power future

Several common themes are emerging across Africa’s electricity sector. Utilities are adopting longer-term planning horizons, renewable energy is becoming a central driver of network development, regional interconnections are expanding opportunities for power exchange, and digitalisation is transforming power system operations.

Together, these trends point towards a broader evolution of African power systems. The challenge is no longer simply expanding infrastructure, but ensuring that future networks are planned, operated and modernised in a coordinated manner. Achieving this objective will require continued collaboration among utilities, governments, regulators, financiers and technical stakeholders.

Experience across the continent suggests that integrating sound planning with targeted grid modernisation can support the development of more reliable, resilient and adaptable power systems, helping meet Africa’s long-term economic and social development goals.

CESI is a partner of ESI Africa, the power, energy, water, transport and utility multimedia platform that forms part of VUKA Group.

Read the article and access more information: https://apo-opa.co/47Xr1g3

Distributed by APO Group on behalf of VUKA Group.

 

 




 

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Bilateral Cooperation Anchors South Sudan’s Energy Renaissance

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Etu Energias

South Sudan Oil & Power 2026 provides a platform for South Sudan’s energy industry to connect with regional and international partners to accelerate oil and gas development

JUBA, South Sudan, November 6, 2026/APO Group/ –South Sudan is placing bilateral partnerships at the center of its energy renaissance. As East Africa’s sole oil producer seeks to expand geomapping, unlock 14 available exploration blocks, maximize brownfield production and strengthen access to regional energy markets, cross-border cooperation has become a strategic avenue for accelerating development.

 




 
 

The upcoming South Sudan Oil & Power (SSOP) conference – scheduled for November 24–25, 2026 in Juba – provides a platform to connect South Sudanese authorities with regional and international counterparts, drive new investment and forge strategic energy partnerships. Returning for its seventh edition, SSOP will connect South Sudan’s regional and global partners with emerging investment prospects across the oil value chain as the country eyes production targets of 230,000 barrels per day (bpd) in the near term and 450,000 bpd in the longer-term.

Strengthening Regional Petroleum Trade

Already a major exporter, South Sudan is actively pushing to establish a domestic refining industry while exploring cross-border petroleum trade opportunities with regional neighbors. The October 2026 meeting between South Sudanese President Salva Kiir and Kenyan President William Ruto marked a major milestone in strengthening bilateral energy and infrastructure cooperation to accelerate regional market growth.

The engagement builds on momentum generated in September 2026, when a delegation of South Sudan’s key energy leaders – led by Caretaker Minister of Petroleum Awow Daniel Chuang – attended the groundbreaking of Dangote’s $16 billion, 700,000-barrel-per-day refinery project in Kenya. Once operational, the refinery could open new markets for South Sudan’s crude while supplying refined products to meet growing domestic demand. Dangote Refinery CEO David Bird is speaking at SSOP 2026.

Expanding Trade Corridors and Bilateral Synergies

Beyond Kenya, South Sudan is actively solidifying strategic energy and trade arrangements across the region. Bilateral agreements signed with Uganda in October 2026 are designed to improve market access, remove trade barriers and streamline petroleum-product logistics and transport links. In April 2026, South Sudan and Ethiopia reaffirmed bilateral cooperation on infrastructure, transport and oil industry development following a meeting between President Kiir and Ethiopian Prime Minister Dr. Abiy Ahmed. These engagements underscore South Sudan’s growing focus on strengthening regional petroleum infrastructure, expanding cross-border trade and securing reliable crude export routes.

South Sudan Looks to International Partners

South Sudan is also strengthening engagement with international partners. Following an October 30 meeting between President Kiir and Russian President Vladimir Putin, Russia committed to training 40 South Sudanese professionals for the 2026/2027 period, leveraging its position as a major hydrocarbon producer to support the nation’s energy development.

Separately, South Sudan’s Minister of Energy and Dams Agok Makur Kur met with a delegation from the European Union to discuss foreign investment and bilateral cooperation, with discussions centering on co-developing national electricity networks and essential dam infrastructure.

SSOP 2026: Turning Partnerships into Tangible Projects 

As South Sudan strengthens ties with regional partners, SSOP 2026 serves as the official platform for deal-making, policy alignment and commercial collaboration. By bringing together public decision-makers, regional counterparts and private sector leaders, the event provides a platform to convert bilateral engagement into tangible project developments. For operators and investors looking to capitalize on South Sudan’s evolving oil and gas landscape, SSOP 2026 offers direct access to new opportunities across exploration, midstream infrastructure and regional energy supply chains.

Distributed by APO Group on behalf of Energy Capital & Power.

 

 




 

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