Prioritising Energy Security in Southern Africa

This research paper argues that Africa's energy security challenges stem from a reliance on nation-state planning, which limits energy source diversification and fails to attract sufficient investment due to small market sizes. The author advocates for deeper regional energy integration and the establishment of a regional energy regulator and a regional bourse to mobilize private capital, reduce risk, and harmonize energy policies, specifically within the context of Southern Africa.

• Africa faces significant energy access challenges despite having sufficient oil, gas, and hydropower potential. Only 23% of the population has electricity access, with 700 million people sharing 1% of global electricity. This failure is attributed to energy planning being limited to the nation state, which prevents the diversification of energy sources across borders and creates markets too small to attract necessary investment finance.
• Regional energy integration is presented as a solution to mobilize investment and diversify energy sources. In Southern Africa, the World Bank estimates that the optimal operation of the Southern Africa Power Pool (SAPP) could generate savings of up to US$1.6 billion over a ten-year period.
• The Southern Africa Power Pool (SAPP) is currently described as a 'loose pool' where national utilities retain authority over generation and transmission, and member countries operate under different legal frameworks. SAPP also faces a potential conflict of interest by acting as both a quasi-regulator and a market player for surplus energy.
• To accelerate integration, the author proposes the creation of a regional energy regulator to harmonize policies and a regional bourse for trading energy products. A regional bourse would involve the private sector, reduce information asymmetry and counterparty risk, and create pricing based on African supply and demand fundamentals rather than overseas factors.

APA

South African Institute of International Affairs (2009). Prioritising Energy Security in Southern Africa. https://saiia.org.za/research/prioritising-energy-security-in-southern-africa/

Chicago

South African Institute of International Affairs. Prioritising Energy Security in Southern Africa. 2009. https://saiia.org.za/research/prioritising-energy-security-in-southern-africa/.

Wikipedia

{{cite report |author=South African Institute of International Affairs |title=Prioritising Energy Security in Southern Africa |date=1 March 2009 |url=https://saiia.org.za/research/prioritising-energy-security-in-southern-africa/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{southafricaninstituteofinternationalaffairs2009prioritising, author = {{South African Institute of International Affairs}}, title = {{Prioritising Energy Security in Southern Africa}}, institution = {South African Institute of International Affairs}, year = {2009}, month = mar, url = {https://saiia.org.za/research/prioritising-energy-security-in-southern-africa/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }