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Rekindling the Passion and Energy

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Energy

New Eskom board chairman Mpho Makwana shared his views on the just transition, securing South Africa’s energy needs, and getting Eskom fired up again

CAPE TOWN, South Africa, October 6, 2022/APO Group/ — 

New Eskom board chairman Mpho Makwana gave an interview on the side-lines of the Green Energy Africa Summit (GEAS) (https://GreenEnergyAfricaSummit.com/in Cape Town. Speaking only days after the new Eskom board was appointed, he shared his views on the just transition, securing South Africa’s energy needs, and getting Eskom fired up again.

We are speaking on the side-lines of the Green Energy Africa Summit. What are your objectives in coming to the summit, and what is the importance of events like these?

The Green Energy Africa Summit, and similar energy events like Africa Oil Week, are important in terms of connecting the energy-producing economies of the continent with other participants in the global supply chain. Engaging at these events helps us find a common understanding of how to balance the notion of just access with the idea of a just transition. That’s the biggest challenge our continent faces.

It’s important to understand that we only have one planet that is inhabitable for human beings. We are duty bound to figure out how to change our actions to ensure it continues to be habitable for generations to come.

We equally face the challenge that most members of society live in poverty. What is the point of talking about a future green planet where most people will still be poor?

Just-transition mechanisms must be balanced with the idea of “just access”. We need to figure out how to take everybody along so that the poorest of the poor feel like they are a part of this green future in a meaningful way – in terms of jobs, and access to economic opportunities.

Another key insight from this event has been the need to do everything in moderation. We need to ensure we maintain balance, in the spirit of sustainable ESG practices. By way of example, many years ago, Israel looked into wave-power technology. It was a novel idea, but then it became clear that there were other environmental impacts.

Every new idea must be tested against its ESG impacts. Is it sustainable? Will it create new jobs? Will it keep the cost of producing electricity affordable? What it costs to turn a tonne of coal into electricity is already extremely high. As far as possible, we need to work to get Eskom back to the days when it was renowned for producing the cheapest electricity in the world.

There’s something we’ve missed. Because if you inflate the costs of a megawatt of electricity, you are exacerbating the problem of access to electricity. So, we must do everything in moderation as we pursue ESG principles and sustainability.

Events like these also improve Pan-African integration. Integration is improving in Africa, but it is not yet on the same level as Europe, where one can commute across the continent. That level of integration does something remarkable to culture. Your supply chains also begin to cross-pollinate. Events also have economic knock-on effects. The hospitality industry benefits, retail benefits, and it helps to build a sense of pan-African integration.

Finding the ideal energy mix has been a major theme at the Green Energy Africa Summit. What is the ideal energy mix for Eskom? South Africa is suffering major energy shortages and regular load-shedding. How do you see Eskom meeting our growing energy needs going forward?

Firstly, there’s a government programme and policy that Eskom has to implement. But as we implement that policy, we need to be practical in our pursuit of a healthy energy mix. We need to learn from the mistakes that other economies may have made. Spain, Germany, and a few other economies have learned some painful and perhaps valuable lessons. Spain tried decades ago to go totally solar. It almost bankrupted the country. Perhaps at the time, solar prices were still high. But it indicates that no single source of energy can give you absolute sustainability. Germany attempted to move to full wind power, and also learned some painful lessons. The difference between South Africa and Germany is that Germany’s neighbours have enough capacity to support their energy needs, and an integrated grid. South Africa is the only major producer in our region, and we do not have that luxury. We need to be responsible and careful in managing any transition to ensure that it’s sustainable.

Secondly, we need to remember the importance of “coal-based towns” and the economic value chains that they support. If we think of the town of Ogies in Mpumalanga, if we were to – overnight – remove that town’s role as a coal town, what would the people of that town be expected to do? This applies to 10 similar towns in the region that currently are central to the provision of electricity in South Africa.

The map of South Africa’s energy supply chain dates to the early centuries of industrialisation. Today, South Africa has various hubs of economic activity. We no longer have gold mines only in Gauteng. North West province has become a new mining hub. As a country, we need to figure out how to balance our grid in line with these new industrial developments.

This would have to evolve with time. We must consider that our country has made certain commitments to the rest of the world in terms of the Paris Agreement. But we also have significant coal reserves with low sulphur content.

You have just been appointed as Chairman of the new board at Eskom, South Africa’s state energy utility. It is a pivotal role, to say the least. What are your immediate priorities?

The immediate priority is to keep the lights on. We have to grapple with how to return the energy availability factor – the EAF – to healthy levels. Under normal conditions, the EAF is 86%. Currently, our EAF is much lower. The president has challenged the Eskom board to get back to 75%. That is a tall order given the state of the systems in the country.

As a country, we need to figure out how to balance our grid in line with these new industrial developments

The other priority is people. You have 40 000 people working at Eskom, who understand to varying degrees where all nuts and bolts fit together. We need to reignite a sense of self-worth in these people. People have been psychologically battered throughout this loadshedding challenge.

I recall back when we prepared for the 2010 FIFA World Cup when I was Eskom CEO and chair. I went from region to region, to excite Eskom employees to be great hosts to the world for the World Cup. This time around, the challenge is to reignite in Eskom employees a passion for serving their country and its economy.

Related to this is the idea of reigniting a sense of internal competitiveness between power stations. Power Station X can compete against Power Station Y to see who maintains the highest EAF levels. This would get us well on the way to maintaining healthy energy availability factors across our operations. It’s not spreadsheets or robotics that will turn Eskom around. It’s people. We need to rekindle their passion and energy.

Another priority is that we need to energise communities. The average power station is hosted by a community. We need to excite each community around meaningful energy production and encourage them to see their power station as part of the continuity of the supply environment, and an asset that supports their livelihoods. Nobody will come and cut transmission cables if the community sees it as an asset of its own, which is part of a national asset – our power station fleet.

What is your stance on the unbundling of generation, transmission and distribution?

For me, it’s about best practice. Let’s take a country like Sweden, for example, which has a dynamic energy system. It was among the first countries in the world to do this. The system employed there might also make sense in South Africa. The approach is to find energy sources in every region that suit the assets of that area. In South Africa, it might work by harnessing solar energy in the Northern Cape, and biomass energy in KwaZulu Natal, where we have a large sugar-cane industry. We could have provincial waste-management system that generates energy and supports environmental sustainability. The two major cities in KwaZulu Natal – Pietermaritzburg and Durban – could relieve the grid of 100-200MW. In each of the other provinces, the most suitable energy resources can be leveraged. Agricultural waste in the Free State. Wind power in the Eastern Cape, for example.

Sweden employs such a model, where each region employs the most suitable mechanism of generating energy. There, regions that have suitable watercourses have hydropower facilities. Transmission lines are owned separately, and the distribution mechanism is decentralised in line with those provincial dynamics.

Power generation is capital intensive. But the IPP model has shown us that if you define the terms of reference, investors will come. We need to be practical. You can’t have everybody depending on one entity. Certainly, you need this entity to provide baseload power for the country, but then other parties and regions should be able to top up that base load from their position of advantage. We need to appreciate that the existing grid was designed 100 years ago, and so the dynamics of the next 100 years are going to be different. Therefore, let’s balance those things.

How do you see us unlocking the contribution of IPPs in the green energy space, and integrating them into the grid?

There’s huge opportunity for households, and for office buildings to provide green energy back to the grid. There are also major innovations happening in the area of finance. South Africa’s major banks have all pioneered smart solutions that allow individuals and businesses to finance renewable-energy installations on their buildings in the same way one currently finances a home or a car.

This is a great example of being proactive to find solutions to our energy challenges. We all lament loadshedding but actually the solution is that if we all redirect our spending, we can create new jobs. If the average household puts rooftop solar in place using these new financing mechanisms, small businesses will be built on that.

This is one way we can reignite our economy. It won’t be huge, but it will make a difference. Each one of us should be asking ourselves what we can do to create opportunities for ourselves, or for small businesses.

In the days before democracy, we had street committees. We can use the same model to build neighbourhood micro-grids. If there’s an open piece of land in a neighbourhood, rather than rushing to occupy it with residential developments, let’s look at whether homeowners’ associations can team up to install a solar facility and set up a microgrid. Microgrids can be set up from the outset whenever a new estate development is built.

Each home would have rooftop solar, and communities can build their own microgrids. So there are many possibilities that we should all be leveraging, and not constantly pointing fingers. I think it’s time for us to start asking, “What can I do to solve the problem?”

How would opening up the grid to more green energy affect the Eskom business model?

Remember, there are Eskom power stations that are reaching the end of their lifespan. By expanding our grid and devolving energy opportunities, we can free up space for us to continue with that programme of mothballing our power stations, refurbishing them and then later recommissioning them. It will actually give us a breather, rather than causing trouble.

How are you enjoying your new role?

I am still at the very beginning of my journey as Eskom chairman. I’m still onboarding, and we have a long way ahead of us. We’re essentially settling in as a board. Maybe after the first quarter we will be able to comment further, but we certainly have an exciting journey ahead.

Green Energy Africa Summit 2022 runs from October 4-5 at the Cape Town International Conference Centre.

Distributed by APO Group on behalf of Green Energy Africa Summit.

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Forget Energy Transition, Produce Oil Like Nothing Before

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African Energy Chamber

The future requires more oil and gas production – not less

BUENOS AIRES, Argentina, June 9, 2026/APO Group/ –The world does not have an energy problem. It has an energy supply problem. As demand rises, populations grow, and billions of people continue to live without reliable access to electricity and clean cooking technologies, the case for producing more energy has never been stronger. From Africa to Latin America, governments and operators are responding with renewed investments in exploration, production and infrastructure, signaling a shift away from energy subtraction and toward energy addition.

Speaking during the ARPEL Conference 2026 in Buenos Aires, Argentina, NJ Ayuk, Executive Chairman of the African Energy Chamber (AEC) – the voice of the African energy sector – delivered a direct message to policymakers, investors and industry leaders: “Forget transition. Let’s talk about addition. Let’s give people what they need.”

The numbers support the argument. Energy poverty remains one of the greatest barriers to economic development globally. In Africa alone, more than 600 million people remain without access to electricity, with nearly one billion people living without access to clean cooking technologies – the most disproportionately affected of which are women. Asking developing economies to produce less energy while these realities persist is fundamentally disconnected from the needs of billions of people.

“For far too long, we have been told to build less, produce less and pay more for energy,” Ayuk stated. “In Africa, we believe this is a moment for energy addition, not energy subtraction. Drill, baby, drill. It’s more important today than ever before.”

Africa offers the clearest justification for increasing oil and gas production. Despite holding more than 125 billion barrels of crude oil reserves and 620 trillion cubic feet of proven gas reserves, the continent relies heavily on imported petroleum products to sustain its economies. Inadequate investment flows across the energy value chain have impacted development and industrialization, leaving millions in the dark.

The global energy transition further compounds this challenge. Opposition by environmental groups, a shift toward aid rather than commercial business structures and diminishing investment for oil and gas projects have brought significant implications to the continent. While developed economies are pursuing a shift towards alternative energy sources, Africa needs its oil and gas – now more than ever before.

For far too long, we have been told to build less, produce less and pay more for energy

Efforts are being made across the continent to produce more oil and gas. Leading producers such as Nigeria and Angola strive to increase output, targeting brownfield development, accelerated exploration and enhanced recovery. Emerging producers such as Namibia are fast-approaching first oil, while discoveries made in Ivory Coast, investments made in the Republic of Congo, and new LNG builds in Mozambique and Tanzania are supporting greater production continent-wide.

“We must remain resolute. We must commit to an industry that builds more, produces more and never apologizes for oil. Many people in Africa are not ashamed of oil. We believe oil has a major role to play in our energy future,” Ayuk said.

Latin America offers a powerful demonstration of what sustained exploration and production can achieve. Brazil’s pre-salt developments remain among the most successful offshore projects in the world, delivering large volumes of low-cost production while attracting continued investment. Guyana continues to expand output at one of the fastest rates globally, while Argentina’s Vaca Muerta shale play is strengthening the country’s position as a major energy producer. Pan American Energy also recently announced plans to invest $680 million to revitalize Argentina’s Cerro Dragon field in the mature Golfo San Jorge basin, reflecting global interest in optimizing South American oil production.

The region’s success reflects a commitment to developing resources rather than restricting them. “Our friends in Latin America have been strong stewards for our industry,” Ayuk said, adding, “Be proud of your energy industry.”

That message extends far beyond Latin America. As governments reassess energy policy, supply security and economic growth priorities, oil and gas continue to provide the foundation upon which modern economies are built. The choice facing both emerging and producing nations is increasingly clear: either create the conditions necessary for investment, exploration and development, or risk falling behind in a world that continues to demand more energy.

“We do not have anywhere to transition to. Where are we going to transition to? From the dark to the dark?” Ayuk asked. “We want to ensure that we have energy that drives development.”

For billions of people still seeking access to affordable, reliable energy, the priority is not producing less. It is producing more.

“Don’t ever apologize for producing energy that drives human flourishing,” Ayuk concluded. “Keep building, keep producing and don’t be scared to say, ‘drill, baby, drill’ whenever you have the chance.”

Distributed by APO Group on behalf of African Energy Chamber.

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Heirs Energies’ US$750 Million Financing Named Best Oil & Gas Deal of the Year

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Heirs Energies Limited

The award was presented on 3 June 2026, in London, and recognises one of the largest financings secured by an indigenous African energy company

LONDON, United Kingdom, June 9, 2026/APO Group/ –Heirs Energies Limited, Africa’s leading indigenous-owned integrated energy company, has been recognised on the global stage after its landmark US$750 million dual-tranche Senior Secured Reserve-Based Lending (RBL) facility was named Best Oil & Gas Deal of the Year at the EMEA Finance Project Finance Awards 2026.

 

The award was presented on 3 June 2026, in London, and recognises one of the largest financings secured by an indigenous African energy company. The transaction highlights the growing role of African capital in supporting strategic investments that advance energy security, economic development, and long-term value creation across the continent.

Executed with the African Export-Import Bank (Afreximbank), the US$750 million financing was structured to accelerate field development, optimise production, and support Heirs Energies’ long-term growth ambitions, while maintaining disciplined capital management.

Commenting on the recognition, Osa Igiehon, Chief Executive Officer of Heirs Energies, said: “This recognition reflects the confidence that African and international financial institutions continue to place in Heirs Energies, our strategy, and our long-term vision.

“The transaction demonstrates that indigenous African energy companies can successfully structure and execute world-class financing solutions that support investment, growth, and value creation. We are proud to receive this award and grateful to our financing partners, advisers, and stakeholders whose support made it possible.”

We are proud to receive this award and grateful to our financing partners, advisers, and stakeholders whose support made it possible

Mr. Haytham ElMaayergi, Executive Vice President, Global Trade Bank at Afreximbank, said: “We are truly honoured that the US$750 million dual-tranche Senior Secured Reserve-Based Lending facility for Heirs Energies has been recognised as Best Oil & Gas Deal of the Year by the EMEA Finance Project Finance Awards.

“This recognition underscores the importance of well-structured, Africa-focused financing in supporting indigenous energy companies with strong governance, high-quality assets and clear long-term growth plans. Afreximbank was proud to support this landmark transaction, which demonstrates how African financial institutions can help mobilise capital for strategic businesses that advance energy security, production capacity and sustainable value creation across the continent.

“We congratulate Heirs Energies and all the partners involved in the transaction and are pleased to see this important financing recognised on such a respected international platform.”

Samuel Nwanze, Executive Director and Chief Financial Officer of Heirs Energies, added: “This award validates the strength of the transaction and the confidence our financing partners placed in Heirs Energies.

“The facility was designed to support our long-term growth strategy, enabling continued investment in field development, production optimisation, and sustainable value creation. We are pleased to see the transaction recognised on such a respected global platform.”

The financing represented a major milestone in Heirs Energies’ evolution from acquisition-led financing to a capital structure aligned with the long-term development profile of its reserves. It further reinforced the Company’s position as a leading indigenous energy producer and demonstrated the ability of African institutions to finance transformational African businesses.

The EMEA Finance Project Finance Awards recognise outstanding transactions across Europe, the Middle East, and Africa, celebrating excellence, innovation, and impact in project and structured finance.

Distributed by APO Group on behalf of Afreximbank.

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What Human Resource (HR) Professionals Gain from Automation

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HR

Four examples of automation supporting HR staff

JOHANNESBURG, South Africa, June 9, 2026/APO Group/ –Human resource people are concerned. As automation becomes more featured in modern digital technologies, many HR staff are asking the same question: will automation replace me?

 

Their fears are not unfounded. According to surveys conducted by Gartner (https://apo-opa.co/4uo4fGQ), some companies are using AI as an excuse to reduce HR headcounts, and 79% of Chief HR Officers told AMS (https://apo-opa.co/4xj8Qg9) that they see notable concerns about job security among their teams.

 

Supporting human abilities

 

However, a report published last year by the International Labour Organisation (https://apo-opa.co/3SaBQGM) found that AI and automation are unlikely to replace HR staff. Instead, automation is producing significant productivity improvements for HR staff, says Mignon Wolmarans, HR Product Manager at Deel Local Payroll.

 

“HR jobs require people with complex problem-solving, creativity, and strong interpersonal skills. These are not abilities that a machine or software can replace. But HR people spend most of their time on manual tasks that actually reduce their ability to focus on priorities where their skills are needed the most.”

 

This observation comes from working with clients who adopt automation in their HR environments, she adds.

 

“We sometimes encounter reluctance when we bring up automation, and the resistance is usually around a comfort with manual processes or gaps in training and skills that reduce people’s confidence in technology. But when we work with them to overcome those concerns, they love what automation does and how it gives them more autonomy and focus.”

 

How automation supports HR

 

Modern HR platforms, cloud software, can automate many routine HR tasks, either as processes designed by HR teams or as ready-to-use native features. These latter features match frequent HR tasks that would otherwise require significant manual processing, input from multiple people, or both.

People are most reluctant to adopt automation because of skills gaps, which feeds into fears that the technology will replace them

 

Some examples include:

 

  • Leave management: Automate accruals based on length of service, salary grade, or a combination of the two. Automation applies forfeiture rules automatically, and if an employee’s tenure ends, leave encashment is calculated and processed in a single automated action.

 

  • Claims: Self-service custom forms and document attachments streamline overtime and travel claims. These are processed through established rules and approvals, pushed to the responsible managers or heads of departments. As soon as a claim is approved, it automatically updates payslip information.

 

  • E-onboarding: Instead of HR practitioners capturing new employee information manually, ‌newcomers use online forms to complete their basic profile and address information, and attach key documents, all of which are loaded onto their profile and only require approval from HR.

 

  • Performance management: Set up different performance review layouts, forms, and templates for various roles, objectives, and indicators. Participants can attach supporting documents, while reviewers, managers, and other staff can submit their contributions. All the performance data feeds into central dashboards for complete control and visibility of the company’s performance.

 

These automations reduce manual workloads and errors while extending features to other stakeholders in different departments. Crucially, they don’t replace HR staff and instead give them the capacity to focus on intricate and human-centric activities that require more than capturing data and compiling reports. As mentioned, HR teams can also create automated processes and customised forms.

 

Creating digital confidence

 

The best HR software vendors offer training and skills honing for customers. For example, Deel Local Payroll provides training staff and extensive learning resources for its customers, helping them take charge of automation.

 

“People are most reluctant to adopt automation because of skills gaps, which feeds into fears that the technology will replace them. That’s why we have a dedicated training department, one-to-one training, and e-learning courses that help fill those gaps,” says Wolmarans.

 

The fear that automation will replace HR people is overstated, even if some company leaders consider it an option. Software cannot compare to what skilled HR professionals do best. But those same professionals focus overwhelmingly on manual tasks, taking time better spent on more complex and strategic priorities.

 

Automation doesn’t replace HR professionals. When the right platform and vendor support them, it makes them better at their jobs.

Distributed by APO Group on behalf of Deel Local Payroll, powered by PaySpace.

 

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