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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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U.S.-Africa Energy & Minerals Forum Expands to Critical Minerals and Supply Chain Security

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3 days ago

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February 27, 2026

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Africa

This year’s U.S.-Africa Energy & Minerals Forum in Houston signals a strategic shift toward integrated energy and critical minerals investment, strengthening U.S. partnerships across Africa’s resource and industrial value chains

HOUSTON, United States of America, February 26, 2026/APO Group/ –The U.S.-Africa Energy & Minerals Forum (USAEMF) has relaunched with a dedicated focus on critical minerals, marking an important evolution in its role as a platform for U.S.-Africa commercial engagement. Building on its foundation in energy, power and industrial projects, the forum’s expanded scope positions it at the center of investment conversations shaping the future energy economy.

 

Scheduled for July 21–22, 2026, in Houston, Texas, USAEMF comes at a time of surging global demand for copper, cobalt, lithium, manganese and rare earth elements, driven by electrification, battery storage, AI infrastructure and advanced manufacturing. Africa is increasingly critical to securing these materials, highlighting how energy and minerals are now interconnected pillars of industrial growth, geopolitical stability and decarbonization.

The forum’s minerals mandate deepens engagement with African producers – particularly the Democratic Republic of Congo (DRC), home to some of the world’s largest copper and cobalt reserves. Momentum is building through the U.S.–DRC strategic minerals framework and the U.S.-backed Orion Critical Mineral Consortium, a major investment platform supported by the DFC and private partners. The consortium is pursuing a 40% stake in the Mutanda and Kamoto copper-cobalt operations in a $9 billion transaction, securing long-term supply for allied markets while reinforcing cooperation on infrastructure, security and supply-chain governance.

Placing critical minerals at the center while maintaining strong hydrocarbons engagement strengthens U.S.-Africa commercial ties

U.S. financing is also expanding across the region, with the DFC managing a continental portfolio exceeding $13 billion to support mining, processing and transport infrastructure for critical mineral supply chains. Recent commitments include rare earth, graphite and potash projects in Malawi, Mozambique and Gabon; broader investments in Uganda, Tanzania, Zambia and South Africa; and $553 million linked to the development of the Lobito Corridor. The DFC is also a major backer of TechMet, a U.S.-supported investment firm valued at over $1 billion, which is raising up to $200 million to expand copper, cobalt, lithium and rare earth assets and pursue new opportunities across the DRC and Zambia. Together, these initiatives underscore Washington’s push to diversify battery-mineral supply while positioning Africa as a long-term partner in clean energy and industrial value chains.

Houston’s role as host city reflects the alignment between American industrial capacity and African resource development. Long established as a global energy hub, the city is expanding into energy transition technologies, advanced materials, carbon management and industrial innovation. By convening African governments with U.S. private equity, development finance institutions, exporters, insurers and technical service providers, the forum creates a commercial platform capable of converting mineral potential into bankable projects.

“The evolution from USAEF to USAEMF reflects a broader shift toward integrated energy and mineral development,” states Nadine Levin, Portfolio Director at Energy Capital & Power, forum organizers. “Placing critical minerals at the center while maintaining strong hydrocarbons engagement strengthens U.S.-Africa commercial ties and advances projects that deliver long-term shared value.”

While critical minerals define the forum’s strategic expansion, the U.S.’ longstanding role in Africa’s energy sector remains central to the platform’s value proposition. American energy companies continue to advance exploration and development across key upstream markets, support gas monetization in the Gulf of Guinea and revitalize mature production in North Africa. U.S. export credit and development finance are also helping unlock large-scale LNG capacity in Mozambique while supporting optimization and expansion across existing gas infrastructure in West Africa – demonstrating how American capital, engineering expertise and risk-mitigation tools convert resource potential into delivered energy systems.

USAEMF is the leading platform connecting U.S. capital and technical expertise with Africa’s energy and minerals sectors. For more information or to participate at the upcoming forum, please contact sales@energycapitalpower.com

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

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Pesalink and Pan-African Payment and Settlement System (PAPSS) Unlock Cross-Border Payments in Local Currencies in Kenya

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3 days ago

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February 27, 2026

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Pesalink

The Pesalink–PAPSS partnership will reduce costs, speed up settlements, and help individuals, SMEs and businesses send money more efficiently across borders

NAIROBI, Kenya, February 26, 2026/APO Group/ —

  • Instant 24/7 bank-to-bank transfers across African borders in local currencies.
  • Simpler cross-border payments for individuals, businesses, and SMEs.
  • 80 plus Pesalink network participants now linked to 160 plus PAPSS participating banks.

 

Pesalink, Kenya’s de facto instant payment network, has partnered with the Pan-African Payment and Settlement System (PAPSS) to ease cross-border payment and speed up regional financial integration.

 

The partnership enables instant 24/7 cross-border payments from PAPSS participants into banks and mobile money operators within the Pesalink network in Kenya, all settled in local currencies. This reduces complex correspondent banking requirements and reliance on foreign reserve currencies.

 

Kenyan banks will now be able to offer faster, cheaper cross-border payments

PAPSS, an initiative of the African Export-Import Bank (Afreximbank) in collaboration with the African Union and the AfCFTA Secretariat, enables cross-border payments between African countries. Pesalink is now a Technical Connectivity Provider. It means that 80 plus Kenyan bank, fintech, SACCO and telco participants on the Pesalink network will be connected to 160 plus commercial banks and fintechs on the PAPSS platform.

 

Cross-border payments remain expensive and slow for many African businesses. The 2023 (http://apo-opa.co/4baDSh7) World Bank Remittance Prices report indicates that sending money across African borders incurs on average 7-8% of the total value sent (above the global average of 6–7%). Settlement can also take three to seven business days.

 

The Pesalink–PAPSS partnership will reduce costs, speed up settlements, and help individuals, SMEs and businesses send money more efficiently across borders.

 

Speaking during the partnership signing held at Pesalink offices in Nairobi, PAPSS CEO Mike Ogbalu III said, “For PAPSS to deliver true impact, collaboration with national and private switches like Pesalink is essential. Pesalink is the first switch we’ve piloted for transaction termination in Kenya, and we are already seeing greater adoption by opening more channels for seamless, local-currency cross-border payments across Africa.”

 

Pesalink CEO, Gituku Kirika, said “Kenyan banks will now be able to offer faster, cheaper cross-border payments. They will be helping their customers grow more regional trading relationships and thrive in a more integrated digital economy.”

Distributed by APO Group on behalf of Afreximbank.

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Africa Trade Conference Returns to Cape Town with Esteemed Speakers Driving Africa’s Trade Agenda

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3 days ago

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February 27, 2026

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Africa

Second edition convenes global policymakers, business leaders, and innovators to accelerate Africa’s integration into global trade

CAPE TOWN, South Africa, February 26, 2026/APO Group/ –Access Bank Plc (www.AccessBankPLC.com) is proud to announce the distinguished line-up of speakers for the second edition of the Africa Trade Conference (ATC 2026), scheduled to take place on March 11, 2026, at the Cape Town International Convention Centre, Cape Town, South Africa. Building on the strong foundation of its inaugural edition, ATC 2026 will convene an exceptional assembly of global and African leaders, policymakers, investors, and business executives committed to shaping the future of trade on the continent.

The Africa Trade Conference has rapidly emerged as a premier platform for advancing dialogue and action around Africa’s evolving role in global commerce. The 2026 edition will feature influential voices from across finance, government, development institutions, and the private sector, who will share insights on unlocking trade opportunities, strengthening intra-African commerce, enabling business expansion, and positioning African enterprises for global competitiveness.

The confirmed speakers represent a powerful cross-section of leaders driving Africa’s economic transformation.

Building on the momentum of its maiden edition, which convened senior decision-makers from 28 countries, the 2026 conference with the theme “Turning Vision into Velocity: Building Africa’s Trade Ecosystem for Real-World Impact”, will have the keynote address delivered by Kennedy Mbekeani, Director General, Southern Africa Region, African Development Bank (AfDB), alongside Kwabena Ayirebi, Managing Director, Banking Operations at the African Export-Import Bank. Their joint keynote will address the evolving financing landscape for African trade and the strategic pathways for unlocking continental prosperity.

The welcome address will be delivered by Roosevelt Ogbonna, CEO/GMD, Access Bank Plc, who will set the tone for discussions centered on trade transformation, financial inclusion, and regional competitiveness, while Tolu Oyekan, Managing Director & Partner at Boston Consulting Group, will deliver insights on “Africa Trade Outlook 2026”, examining emerging macroeconomic trends, supply chain shifts, and growth opportunities across key sectors.  The CEO of Pan-African Payment and Settlement System, Mike Ogbalu, will be engaging the conference participants on the topic, “Building a Connected Africa Through Trade, Payments & Technology”, focusing on how payment interoperability and digital infrastructure can accelerate the African Continental Free Trade Area (AfCFTA) agenda.

The calibre of speakers confirmed for this year’s conference underscores the urgency and opportunity before us

The conference will also host a High-Level Ministerial Panel that features Elizabeth Ofosu-Adjare, the Minister for Trade, Agribusiness & Industry, Ghana; Tiroeaone Ntsima, Minister of Trade and Entrepreneurship, Botswana; Mr. Florian Witt, Divisional Head, International & Corporate Banking Oddo-BHF, Ms. Nathalie Louat – Global Director, International Finance Corporation (IFC), Dr Isaiah Rathumba – Head of Department, Limpopo Economic Development, Environment and Tourism and Mr. Alfred Idialu – Chief Rep Officer, Deutsche Bank among other policymakers shaping trade policy across the continent.

Commenting on the announcement, Roosevelt Ogbonna, Managing Director/Chief Executive Officer of Access Bank Plc, said:
“The Africa Trade Conference reflects our unwavering commitment to advancing Africa’s economic transformation by creating a platform that brings together the leaders, institutions, and ideas shaping the future of trade. The calibre of speakers confirmed for this year’s conference underscores the urgency and opportunity before us. Africa is not only participating in global trade, it is helping to redefine it. Through this convening, we aim to catalyse partnerships, unlock new opportunities for businesses, and accelerate Africa’s integration into global value chains.”

“At Access Bank, we see ourselves not just as financiers, but as connectors of markets, ideas, and opportunities. Our role is to help African businesses move from ambition to impact, from local relevance to global competitiveness.”

With operations in 24 countries globally, including 16 across Africa, Access Bank’s expansive footprint places it in a unique position to facilitate cross-border trade, unlock regional value chains, and simplify the complexities of doing business across markets.

“Our presence across Africa and key global corridors gives us a front-row seat to the realities of trade. It also gives us the responsibility to design solutions that are inclusive, scalable, and future facing. ATC 2026 is part of that commitment, Ogbonna added.

ATC 2026 is expected to catalyze partnerships, enable policy dialogue, and provide actionable strategies for businesses operating within and beyond the continent.

The Access Bank Chief puts it thus, “Africa will not be a spectator in the remaking of global trade. We will be one of its architects. ATC 2026 is where those blueprints will be drawn.”

For more information and registration, please visit https://apo-opa.co/4sdXWF7

Distributed by APO Group on behalf of Access Bank PLC.

 

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