Connect with us
Anglostratits

Business

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

Published

4 years ago

on

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.

Related Topics:
Continue Reading
Advertisement

Business

Hong Kong sets out strategies to enhance the appeal and add value to the city’s tourism industry

Published

7 hours ago

on

September 21, 2026

By

Hong Kong

HONG KONG SAR – Media OutReach Newswire – 21 September 2026 – Enhancing the city’s appeal as a destination for tourism and major sports and cultural events was a strong focus of the First Five-Year Plan for Economic and Social Development of the Hong Kong Special Administrative Region (HKSAR) (2026-2030) and the 2026 Policy Address, announced by Hong Kong’s Chief Executive John Lee last week (September 16).

Mr Lee unveiled measures to support the integrated development of culture, sports and tourism which will help develop Hong Kong as an East-meets-West Centre for International Cultural Exchange. These included enriching the supply of high-quality tourism products, while bolstering infrastructure and ancillary facilities as well as deepening engagement with markets in the Chinese Mainland and around the world.

 




 
 

“Hong Kong is blessed with a unique cultural vision, shaped by both Chinese and foreign influences,” Mr Lee said. “We will continue to engage and collaborate with Mainland and overseas culture, arts and creative sectors to consolidate Hong Kong’s role as a hub for the exchange, collaboration and promotion of culture, arts and creativity. We will also host international cultural and arts exhibitions and performances to attract visitors to Hong Kong.”

 

To support Hong Kong’s film industry and promote “Film + Tourism”, the Support Unit for Non‑local Film Productions will be set up to provide one‑stop services for Mainland and overseas film crews filming in Hong Kong, attracting the production of more quality films to promote Hong Kong.

Mr Lee noted that the Kai Tak Sports Park has substantially expanded Hong Kong’s capacity to host international mega events, with more than 170 sessions of international and local sports and cultural entertainment mega events having been held there so far, attracting over 2.6 million spectators.

Meanwhile, the HKSAR Government will explore the redevelopment of Victoria Park Centre Court and other ancillary facilities into an iconic all‑weather, multi‑purpose venue for holding larger‑scale and higher‑level sports events, as well as performance activities.

Hong Kong’s Secretary for Culture, Sports and Tourism, Rosanna Law, highlighted the growing trend of multi-destination tourism. Ms Law said that Hong Kong welcomed around 36.67 million visitor arrivals in the first eight months of 2026, representing a year-on-year increase of about 11 per cent.

“The proportion of overseas visitors travelling onwards to the Chinese Mainland via Hong Kong has continued to rise, exceeding 20% in the first half of 2026,” Ms Law said.

The HKSAR Government will continue to capitalise on measures introduced by the Central Government to facilitate visits by foreign travellers to the Chinese Mainland, deepen collaboration with Mainland provinces and municipalities, and explore with the country additional immigration facilitation arrangements for international visitors. The Hong Kong Tourism Board (HKTB) will promote multi destination travel itineraries to overseas visitors, partner with airlines to roll out relevant tourism products and promotional offers, and intensify publicity overseas.

It will take forward “+ Tourism” joint initiatives, integrating various events with tourism to raise their appeal, aiming to extend visitor stays in Hong Kong and generate value‑adding momentum. Such joint initiatives would integrate tourism with mega events, ecology, heritage, finance and industrial brands.

On developing the yacht economy, Mr Lee said that a variety of new yacht berth projects are now moving ahead, including the tender for the composite development project in Aberdeen comprising a marina, recreational facilities and residential development scheduled for the first half of 2027, and the yacht bay project under the Airport City “SKYTOPIA”.

“In addition, starting from May, Hong Kong and Macao yachts may navigate in nine Guangdong-Hong Kong-Macao Greater Bay Area cities, with the requirement for guarantee exempted and under temporary ship nationality registration,” Mr Lee said. “The first northbound travel of yachts from Hong Kong set sail in June. The Marine Department will soon sign a memorandum of understanding with the Guangdong Maritime Safety Administration for the implementation of southbound travel for yachts from Guangdong, adding impetus to cross‑boundary leisure consumption.”

To further enhance the city’s appeal as a Muslim‑friendly destination, the HKTB will extend the Hong Kong Restaurants Halal Certification Funding Scheme to the end of 2027, encouraging the industry to provide more Muslim‑friendly food options.
 




 

Continue Reading

Business

Former DAMAC Senior Vice President Paulo J. Cruz Appointed Founding CEO of African Collaboration Group (ACG) to Spearhead Sports and Entertainment District Development Across Africa

Published

7 hours ago

on

September 21, 2026

By

DAMAC

Paulo J. Cruz will lead the development and expansion of a pan-African platform for the origination and structuring of large-scale sports and entertainment district ecosystems

LONDON, United Kingdom, September 21, 2026/APO Group/ –African Collaborations Group (ACG) (www.ACGafrica.com), the leading strategic project origination and collaboration platform focused on the industrialisation of sport in Africa through bankable district ecosystems, today announced the appointment of Paulo J. Cruz as its Founding Chief Executive Officer.

 




  

Mr Cruz joins ACG from DAMAC Group, one of the largest privately held real estate developers in the Middle East, where he served as Senior Vice President from 2022 to 2026. In 2025, the Group reported close to USD 10 billion in property sales. His tenure at DAMAC further deepened an already distinguished career spanning infrastructure origination, urbanisation strategy, and large-scale real estate development across Africa, the Middle East, and Europe.

Over the course of his 28-year career, Mr Cruz has originated or structured projects ranging from USD 50 million to in excess of USD 5 billion, stewarding initiatives from early-stage concept through feasibility analysis, financial structuring, and investor alignment to bankable delivery stages. His professional footprint encompasses senior roles at BP, one of the world’s foremost energy companies; BlackIvy Group, a US-backed infrastructure investment platform; Movares, a leading European engineering consultancy; and Cushman & Wakefield, a globally recognised real estate advisory firm.

Prior to DAMAC, Mr Cruz served as Group Chief Executive Officer of LandAfrique, a pan-African development platform focused on industrial parks, infrastructure, housing and power projects across Sub-Saharan Africa, further solidifying his reputation as one of the continent’s most experienced development executives.

Infrastructure is the prerequisite for the industrialisation of sport in Africa

As Founding CEO of ACG, Mr Cruz will lead the development and expansion of a pan-African origination platform, working in close partnership with sovereign governments, development finance institutions (DFIs), private investors, sport and entertainment principals, and leading academic institutions to structure district-level projects that are both investable and deliverable at scale.

ACG operates as a specialised origination and collaboration platform engineered to transform concepts into credible, bankable sport and entertainment district ecosystems — architectures capable of attracting institutional capital and generating long-term, multi-dimensional economic impact at a national and continental scale.

ACG’s flagship initiative, Victory District™, provides a proprietary district development framework designed to originate integrated, mixed-use sport and entertainment destinations that transcend conventional single-venue models. The framework prioritises asset utilisation optimisation, long-term sustainability, expanded revenue diversification beyond matchday economics, structured employment and youth opportunity creation, talent development pathways, and institutional-grade operations and maintenance standards.

Mr Cruz’s appointment follows the establishment of ACG’s Advisory Board, comprising internationally recognised leaders from global sport governance, finance, infrastructure and development institutions — including Fatma Samoura, Former Secretary General of FIFA; Kenny Jean-Marie, Former Chief Member Associations Officer of FIFA; Herbert Mensah, President of Rugby Africa and Executive Board Member of World Rugby; and Jan Alessie, Co-Founder and Managing Director of the World Football Summit — as well as a Research & Impact Advisory Panel of leading scholars focused on the economics, governance and societal impact of sport. The full list of Advisory Board and Research & Impact Advisory Panel members can be consulted here:  https://apo-opa.co/4xMb5ry.

“Paulo brings an exceptional combination of origination expertise, institutional credibility, and continental experience that is virtually unparalleled in this space. His demonstrated ability to transform ambitious development concepts into financially structured, bankable projects positions him as the ideal leader to guide ACG as we build a platform capable of catalysing transformative investment and accelerating the realisation of financially sustainable sport and entertainment districts across Africa,” said Nicolas Pompigne-Mognard (www.Pompigne-Mognard.com), Founder and Executive Chairman of ACG.

A prominent thought leader and keynote speaker at leading international platforms — including the Africa Property Investment Summit (API Summit), the Africa Real Estate Conference & Expo (ARCE), the African Union for Housing Finance Annual Conference, and the West Africa Property Investment Summit — Mr Cruz was honoured as “Person of the Month” by Sustainable Investments and Alliances for Africa (SIA).

“Infrastructure is the prerequisite for the industrialisation of sport in Africa — without it, the entire value chain remains theoretical. Athletes need places to train, compete and develop. Sport governing bodies need venues that meet international standards. Broadcasters, sponsors and event organisers need facilities capable of generating commercial value. Every revenue stream in the sport economy ultimately depends on infrastructure existing and its respective operation. But how that infrastructure is originated determines whether it becomes an economic engine or a fiscal burden. Across Africa, too many sport facilities have been built in isolation — a stadium delivered for a single event, then left to deteriorate at a fraction of its capacity, draining public finances rather than generating returns. ACG exists to change that equation,” said Paulo J. Cruz, Founding Chief Executive Officer of African Collaborations Group.

Distributed by APO Group on behalf of African Collaborations Group (ACG).

 

 




 

Continue Reading

Business

Africa Makes its Case for a Bigger Role on the Global Stage

Published

7 hours ago

on

September 21, 2026

By

Africa

GABI’s Unstoppable Africa 2026 brings global leaders together on Africa’s push to capture more value from its resources, accelerate investment and strengthen its influence in global trade and decision-making

NEW YORK, United States of America, September 21, 2026/APO Group/ –Africa is pushing for a bigger role in shaping the global economy, as business leaders, heads of state, investors, policymakers, and global partners converged in New York yesterday to articulate the continent’s ambition in global trade, investment, and value creation. Held alongside the 81st session of the United Nations General Assembly, Unstoppable Africa 2026 put Africa’s business agenda at the center of the global conversation.

 




  

The fifth edition of the Global Africa Business Initiative’s (GABI) flagship convening drew senior leaders from across business, government, and global institutions to the Marriott Marquis in Times Square, including UN Secretary-General H.E. António Guterres; H.E. Mahmoud Ali Youssouf, Chairperson of the African Union Commission; and Massad Boulos, Senior Advisor to the President of the United States on Arab and African Affairs.

The UN Secretary-General called for action to give Africa a greater role on the global stage, including a permanent presence on the United Nations Security Council: “Africa needs a permanent presence on the United Nations Security Council, where it can contribute to dialogue and action for the whole globe.” He stressed that Africa’s growing influence in global markets must translate into a stronger voice in international affairs. Guterres also urged reforms to better reflect the needs of developing countries, particularly in Africa, and for the continent’s natural resources, including critical minerals, to generate more local value and decent jobs rather than simply being exported.

With critical minerals, trade, energy, and investment dominating the first day, Unstoppable Africa reflected a wider shift in Africa’s economic story: from supplying the global economy to building more of the businesses, industries, and value chains that can capture the opportunity.

H.E. Mahmoud Ali Youssouf, Chairperson of the African Union Commission, said Africa’s 1.5 billion people and growing market create a significant opportunity, but the continent must accelerate the development of African value chains and remove barriers to trade to drive industrial transformation. He identified affordable energy, better infrastructure, access to finance, skills, technology, and clear standards as critical requirements for Africa to turn its market potential into faster economic growth.

Africa needs a permanent presence on the United Nations Security Council, where it can contribute to dialogue and action for the whole globe

The private sector took center stage, as African and global business leaders articulated what it will take to turn Africa’s resources, markets, and talent into productive economic capacity. The Leaders Panel brought together Samaila Zubairu, President and CEO of the Africa Finance Corporation; Aliko Dangote, Founder and Chairman of the Dangote Group; Mandy DeFilippo, CEO of Americas, Europe, Middle East and Africa at Standard Chartered; Nonkululeko Nyembezi, Chairperson of Standard Bank Group; Nolitha Fakude, Chairperson of Anglo American South Africa; and Tidjane Thiam, General Partner at Allied Critical Minerals Fund.

Leaders stressed the need to move beyond exporting raw materials, including critical minerals and crude oil, by developing local processing, manufacturing, and value chains that create jobs and retain more economic value on the continent.

One of the highlights announced yesterday was that the US$300 million Nigeria Distributed Renewable Energy (DRE) Fund has reached its first close, securing its initial capital commitments and moving into operation. Co-managed by the Nigeria Sovereign Investment Authority (NSIA) and Africa50, the fund will provide equity financing to local clean-energy developers, supporting decentralized solutions including solar mini-grids, solar home systems, commercial and industrial power solutions, and energy storage. Aligned with Mission 300, which aims to connect 300 million Africans to electricity by 2030, the fund is designed to mobilize private investment and expand reliable energy access for Nigerian homes and businesses.

Energy was another major focus. Anna Bjerde, Managing Director of Operations at the World Bank Group, and Damilola Ogunbiyi, CEO and Special Representative of the UN Secretary-General for Sustainable Energy for All, joined discussions on how innovative finance could unlock investment in Africa’s power infrastructure and accelerate access to reliable energy.

Healthcare also featured within the wider economic conversation. Roche reaffirmed its commitment to advancing breast cancer care through its Africa Breast Cancer Ambition (ABCA), which aims to help 80% of women diagnosed with breast cancer in Africa survive for at least five years by 2030.

Unstoppable Africa 2026 continues today, September 21st, with further sessions focused on digital transformation, investment, creative industries, sport, and Africa’s role in the global economy.

Everyone is invited to watch the event live on Unstoppable Africa YouTube channel at https://apo-opa.co/4xoGXlz

Distributed by APO Group on behalf of Global Africa Business Initiative.

 

 




 

Continue Reading

Trending