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South africa and electrical utilities

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South africa and electrical utilities

  1. 1. South
Africa
and
Electrical
U3li3es Jaclyn
Simard Julia
Warn Melissa
Schegg INT
610
Module
5
  2. 2. South
Africa
Background• Country
Background – South
Africa
was
established
by
seGlers
from
the
North
(4th
century) – 1652
Dutch
colony
was
formed
and
soon
aMer
the
Bri3sh
arrived. – Next
200
years
Dutch
(Boers)
and
Bri3sh
fought
for
control – 1860s
and
1880s
–
diamonds
and
gold
were
discovered,
respec3vely • This
increased
the
inflow
of
immigrants – 1948
Na3onal
Party
comes
to
power.

Apartheid
law
is
enacted. – The
next
46
years
was
the
rule
of
‘Separateness’ – Damage
has
been
done
 • 
High
poverty,
high
unemployment,
high
crime,
lack
of
educa3on
and
 17%
of
the
popula3on
is
infected
with
HIV
  3. 3. South
Africa
Background• Country
of
Diversity – Loca3on
‐
southern
3p
of
African
con3nent – 50
million
people – 11
official
languages – Major
Religion
–
Chris3anity
and
Islam – Life
Expectancy
–
52
years
(Male)
and
54
years
 (Female) – Largest
ci3es
–
Johannesburg
and
Cape
Town – Rand
is
the
currency
(1
Rand
equals
100
cents) – Exports:
gold,
diamonds,
metals
and
minerals
  4. 4. South
Africa
and
Electrical
U3li3es
• Eskom
is
the
electrical
supplier
to
South
Africa – Supplies
95%
of
South
Africa
 • residen3al,
commercial
and
redistributors – Supplies
45%
of
power
to
Africa – Past
several
years
of
con3nuous
business
growth hGp://www.eskom.co.za/c/ar3cle/743/media‐statement‐25‐august‐2011/
  5. 5. South
Africa
and
Electrical
U3li3es
• Posi3ves
 – In
process
of
building
several
new
power
plants
 – Solar
power
and
wind
farm
ini3a3ve – Customers
and
revenue
have
been
steadily
 growing
since
2007
 – Monopolist
environment • Huge
market
share,
liGle
to
no
compe33on – South
African
company h"p://www.eskom.co.za
  6. 6. South
Africa
and
Electrical
U3li3es
• Nega3ves – Old
and
disintegra3ng
infrastructure – Increasing
demands
by
new
customers – Eskom
controls
rolling
blackouts
and
‘load‐shedding’
to
 keep
power
on – Unable
to
keep
up
with
demands
and
it
will
only
 increase
as
new
customers
are
brought
online – Upgraded
network
is
being
worked
on
–
comple3on
 date
2018. hGp://www.bbc.co.uk/news/world‐africa
  7. 7. South
Africa
and
Electrical
U3li3es
 Poli3cal
Risks
‐
Mul&party
Parliamentary
Democracy
Shared
power





between
President
and
Parliament 7
  8. 8. South
Africa
and
Electrical
U3li3es• Economic
Risks

‐
S&ll
recovering
from
2009
recession
‐
High
unemployment
rates
Government
es3mates
a
growth




rate
of
6%
in
order
to
offset
unemployment
levels
‐
Increasing
Fiscal
Deficit
con3nuously
increasing
since
2009 8
  9. 9. South
Africa
and
Electrical
U3li3es
 Poli3cal
Benefits

‐
Ibrahim
Index
of
African
Governance
(IIAG)
In






2007/2008,
South
Africa
ranked
5th
out
of
53
countries 9
  10. 10. South
Africa
and
Electrical
U3li3es Economic
Benefits

‐
Emergence
from
2009
recession

‐
“Economic
Powerhouse
of
the
African
Con&nent”

‐
Generates
over
50%
of
Africa’s
electricity 10

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