Rethinking Southern Africa’s energy crisis
Summary
The document analyzes the energy crisis in the Southern African Development Community (SADC) and Southern African Power Pool (SAPP) regions, highlighting a significant gap between electricity generation and demand. It identifies key obstacles, including inadequate infrastructure investment, the insolvency of national utilities due to low tariffs, and the disproportionate influence of South Africa's coal-dominated energy system. The authors argue that while energy crises often push states toward inward-looking policies, regional cooperation, harmonized regulation, and transboundary projects offer the most viable path to energy security and economic development.
Key insights
- The Southern African Power Pool (SAPP) faced a substantial electricity deficit by the end of 2015, with a regional shortfall of 16,536 MW when accounting for current peak demand and required reserves.
- Investment needs for new generating capacity and transmission/distribution in sub-Saharan Africa are estimated at USD 885 billion, a figure that exceeds the combined GDP of all SADC member states, which is estimated at USD 668 billion.
- The insolvency of national electricity utilities is primarily driven by politically-motivated low tariffs, which result in low revenues and minimal return on investment, further exacerbated by corruption and mismanagement.
- South Africa's dominance in the regional energy landscape creates vulnerability for other SADC nations; for instance, in 2011, South Africa provided 82.5% of all SADC's electric power.
- The regional energy mix is heavily skewed toward coal due to South Africa's influence, where coal has become more economically valuable than gold, contributing ZAR 51 billion to the economy in 2013 compared to gold's ZAR 31 billion.
- Energy subsidies in sub-Saharan Africa are criticized for being poorly targeted and creating disincentives for the maintenance and investment necessary to resolve energy shortages.
- To improve regional integration, the document recommends rehabilitating existing infrastructure, strengthening the roles of the Regional Electricity Regulators Association of Southern Africa (RERA) and SAPP, and pursuing transboundary projects to achieve economies of scale.
Cite the original document
- APA
- Carson, M., Gill, T., Johnson, O., & Rosner, K. L. (2018). Rethinking Southern Africa’s energy crisis. Stockholm Environment Institute. https://www.sei.org/wp-content/uploads/2018/05/180529a-gill-carson-powering-africa-1805f.pdf
- Chicago
- Carson, Marcus, Tom Gill, Oliver Johnson, and Kevin L. Rosner. Rethinking Southern Africa’s energy crisis. Stockholm Environment Institute, 2018. https://www.sei.org/wp-content/uploads/2018/05/180529a-gill-carson-powering-africa-1805f.pdf.
- Wikipedia
- {{cite report |last1=Carson |first1=Marcus |last2=Gill |first2=Tom |last3=Johnson |first3=Oliver |last4=Rosner |first4=Kevin L. |title=Rethinking Southern Africa’s energy crisis |publisher=Stockholm Environment Institute |date=May 2018 |url=https://www.sei.org/wp-content/uploads/2018/05/180529a-gill-carson-powering-africa-1805f.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{carson2018rethinking, author = {Carson, Marcus and Gill, Tom and Johnson, Oliver and Rosner, Kevin L.}, title = {{Rethinking Southern Africa’s energy crisis}}, institution = {Stockholm Environment Institute}, year = {2018}, month = may, url = {https://www.sei.org/wp-content/uploads/2018/05/180529a-gill-carson-powering-africa-1805f.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }
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