1. 80 | FORBES AFRICA DECEMBER 2014 / JANUARY 2015
SEYMONE MOODLEY
MINING THOUGHTS
THE PROBLEM WITH POWER
T
he beginning of summer
in South Africa brings
warm rains, scorching hot
temperatures, longer days
and brighter nights. And
thanks to Eskom it also brings rolling
blackouts. That spells bad news from
the suburbs to the mines.
On November 1, a silo which housed
over 10,000 tons of coal collapsed at
Majuba power station, all personnel
at the site were evacuated in time and
according to Utility’s Chief Executive
Tshediso Matona.The collapse caused
a shortage of 3,600MW. It meant
people were going to work carrying
irons to press their clothes and mines
lived in fear of powercuts.
According to the African
Development Bank, Africa’s chronic
power problems are hurting 30
countries, cutting economic growth and
productivity. In sub-Saharan Africa,
only one in five have electricity. If the
current power situation continues,
less than 40% of African countries will
reach universal access to electricity
(when everyone in the country has
electricity) in the next 35 years.
“South Africa will reach universal
access to power, the time it gets
will depend on budget,” says Eskom
spokesman Andrew Etzinger.
Power shortages can cost up to 2%
of gross domestic product, according to
the African Development Bank.
One African country that struggles
more than most is Nigeria, Africa’s
most populous country. Half of the
country’s 160 million people go
without electricity. South Africa
consumes 55 times more energy per
head and the United States (US) 100
times more than Nigeria.
The failure to provide adequate
electricity by the country’s state
owned monopoly PHCN, the Power
Holding Company of Nigeria,
nicknamed as ‘Please Have Candles
Nearby’, has left the land in distress
for decades.
At the end of 2013, Nigeria’s
government decided to privatize
most of its power sector and fortunes
could change.
“Because power development is
so difficult and requires a serious
amount of political will, the reforms
were stalled for years because of a
face-off with labor unions. This is
really a success story, in terms of the
structure of the sector in Nigeria; it
is now more advanced then South
Africa. That is pretty remarkable,
when you look at a country like
Nigeria you would of not thought it
was possible 10 years ago,” says Lai
Yahaya, team leader to the Senior
Advisors Group of Power Africa.
In June 2013, US President
Barack Obama launched Power
Africa, an initiative aimed
at doubling electricity
in sub-Saharan
Africa, where more
than 600 million
people are without.
Power Africa set
an ambitious goal
of more than
10,000MW of
electricity to 20
million households
and businesses.
This year,
Obama announced
a $300-million
investment to
connect 30,000MW to 60 million
households and businesses.
Obama says that this initiative is
to help Africa grow. His critics say
this is merely the US trying to stay
in the game as China makes inroads
into Africa. Despite what the cynics
say, Yahaya believes that the future of
Africa’s electricity is in good hands.
“You can be fairly certain that
Power Africa will succeed.”
Millions of Africans hope so.
Lai Yahaya, team leader to the Senior Advisors
Group of Power Africa.