Feature/OPED
South Africa Lacks Energy Power in Emerging Multipolar World
By Kestér Kenn Klomegâh
South Africa undoubtedly boasts its power and integrity on the global stage. South Africa is known as the first economic power in Africa and as a staunch member of many international organizations. It maintains significant regional influence and is a member of the African Union, the Commonwealth of Nations, the BRICS and the G20. With an estimated 62 million (as of 2023) people of diverse cultural origins, South Africa’s economy is sustained by both local and foreign businesses. Today, it has to struggle with power outages, unsuccessful in meeting both domestic and industrial power requirements in the country.
Unlike most of the African countries, South Africa’s economy is the most industrialized and technologically advanced, the second largest economy in Africa, after Egypt and Nigeria. South Africa has a very large energy sector and is currently the only country on the African continent that possesses a nuclear power plant. The country’s primary electricity generator is Eskom, the utility is the largest producer of electricity in Africa.
Eskom’s latest energy availability factor (EAF) data reveals that mismanagement, corruption, poor maintenance, and sabotage caused power station breakdowns. Due to severe mismanagement and corruption at Eskom, the company is $22 billion in debt and unable to meet the demands of the South African power grid. It has resulted in load shedding to prevent a failure of the entire system when the demand for electricity strains the capacity of Eskom’s power-generating system.
China’s Factor in the South African Energy Crisis
China has contemplated support for the South African energy crisis since 2011 it joined BRICS. The latest development was in August 2023 during the 15th BRICS summit held in Johannesburg, South Africa signed a raft of deals with China to help it overhaul its creaky energy sector including upgrading its nuclear power plant as the government seeks to ease a severe energy crisis hobbling the economy.
The agreements, signed with Chinese power companies on the sidelines of the BRICS summit, include upgrades to the electricity transmission and distribution network. “We are moving at the speed of the fastest, we are not going to move at the speed of the slowest,” Electricity Minister Kgosientsho Ramokgopa after signing the deals. China’s power transmission grid network, generation capacity and renewable energy plants are the largest in the world and were set up in a short time and it is this expertise South Africa wanted to learn from, Ramokgopa said.
South Africa’s state utility Eskom has a power supply shortfall of around 4,000 megawatts (MW), accounting for a tenth of its installed capacity and resulting in record power cuts. Its transmission capacity is highly constrained, preventing any alternative power sources from coming online. The bulk of its distribution infrastructure – an array of thousands of transformers and substations supplying power to households – often burns out leading to long hours without power.
China will help to extend the life of Eskom’s coal-fired power plants, offer technology to cut emissions at a lower cost than available elsewhere globally and China might also set up transformer and solar PV panel manufacturing facilities in the country, Ramokgopa said. It will also help South Africa upgrade its nuclear power plant, he added.
President Cyril Ramaphosa noted that China, its biggest trading partner, would supply emergency power equipment worth 167 million rand ($8.9 million) and a grant of around 500 million rand for the power sector, without giving timelines.
According to an April 2024 report from Boston University’s Global Development Policy Center and the African Economic Research Consortium, China has a unique opportunity to drive forward an energy revolution in Africa, but it must first reverse nearly two decades of neglect of green power investments there. Beijing has emerged as the continent’s biggest bilateral trading partner since the start of the century and has financed billions of dollars worth of large-scale infrastructure projects.
In 2021, China’s President Xi Jinping said the country would not build new coal-fired power projects abroad, pledging to deal with climate change by supporting the development of green and low-carbon energy. Although Africa’s green energy potential is one of the highest in the world, Chinese lending and investment have so far provided relatively little support for the continent’s energy transition.
Lending for renewables, such as solar and wind, from China’s two main development finance institutions constituted just 2% of their $52 billion of energy loans from 2000 to 2022, while more than 50% is allocated to fossil fuels. “Given current economic challenges and future energy opportunities, China can play a role in contributing to Africa’s energy access and transition through trade, finance and FDI (foreign direct investment),” the report said.
Chinese development finance institutions have been focused on investing in the extraction and export of commodities to China and in electrification projects. Chinese lending has targeted many of the same sectors that produce the oil and minerals that flow back to China. At least eight hydropower projects financed by the Export-Import Bank of China (CHEXIM), which represent 26% of all hydropower lending, are intended to support the extraction of various metals.
“Although this track has led to export revenues for African economies, African countries are not yet receiving the full benefits of renewable energy technologies,” the report said. In 2022, fossil fuels accounted for around 75% of total electricity generation in Africa and about 90% of energy consumption, the report said.
South Africa and across the rest of Africa, energy has become crucial. Without sustainable energy flow, industrialization is impossible. At the BRICS-Africa Outreach and BRICS Plus Dialogue, China’s leader Xi Jinping made concrete proposals which included: China to launch the Initiative on Supporting Africa’s Industrialization. China plans to harness resources for cooperation with Africa and support Africa in its manufacturing sector, industrialization and economic diversification. China plans to channel more resources into investment and finance industrialization.
Russia’s Renewable Energy Pledges
South Africa and Russia have excellent relations. The nuclear energy deal between South Africa and Russia has dominated official discussions over the years. Under Jacob Zuma, Russian President Vladimir Putin signed a deal estimated at $76 billion to build Russian-run nuclear energy plants. Until today, that deal remains unrealizable and worse still mentioned in speeches as part of a bilateral agreement. But in the latest developments, South Africa from explicit indications unreservedly supports Russia’s ‘special military operation’ in Ukraine. During Johannesburg’s 15th BRICS summit held in August 2023, nuclear power pledges, with high enthusiasm, were renewed.
Russian Ambassador to South Africa Ilya Rogachev renewed the official pledge that Russia would help South Africa solve the problem of energy shortages. “The Russian Federation is a world leader in the field of nuclear technology. If we talk about cooperation between Russia and South Africa in this area, joint work on expanding nuclear generation in the country can play a key role in solving the problem of electricity shortages in South Africa and can lay the foundation for energy independence and technological sovereignty of the Republic of South Africa,” the diplomat told the local Russian media.
According to him, Russian companies work with advanced technologies and are ready, for their part, to offer expertise and competencies within the framework of appropriate tender procedures. Russia is ready to cooperate in the supply of fuel for nuclear power plants, the construction of new large and small nuclear capacities, the development of floating plants, the construction of a new research reactor, the development of nuclear medicine and so forth. Russia has the desire to strengthen South Africa’s energy security, and in particular, is ready to exchange useful key practices in the field of energy production, distribution and utilization.
European Union and South Africa’s Energy Cooperation
At least in 2021, the European Union has supported its concern over South Africa’s energy difficulties. Even far earlier European Union members have contributed financially. The governments of South Africa, France, Germany, the United Kingdom and the United States of America, along with the European Union, have in November 2021 announced a new ambitious, long-term ‘Just Energy Transition Partnership’ to support South Africa.
According to European Commission President, Ursula von der Leyen, the European Union kick-started the Just Energy Transition Partnership with South Africa, a first-of-its-kind global initiative for accelerating a just energy transition, and would also outline measures undertaken by the government of South Africa for long-term energy transition. EU is working with a concrete programme at the full cost of $8.5 billion, in addition to what the World Bank Board approved for Eskom, the South African energy Sector.
The President of the United States of America, Joseph R. Biden, said: “The United States is proud to partner with the Government of South Africa and the members of the International Partners Group to support South Africa’s just transition to a cleaner energy future. We welcome the comprehensive JET Investment Plan and fully support South Africa’s economy-wide energy transformation. Our support for South Africa’s clean energy and infrastructure priorities, which include efforts to provide coal miners and affected communities the assistance that they need in this transition, will help South Africa’s clean energy economy thrive.”
BRICS New Development Bank
Much praised BRICS (Brazil, Russia, India, China and South Africa) New Development Bank was established in 2015 to compete with other multilateral development banks such as the World Bank and IMF. As a multilateral development bank to mobilize resources for infrastructure and sustainable development projects in emerging markets and developed countries, it has so far limited scope of operations. It dreams of supporting developing countries, but it cannot under the circumstances and is far behind the status of the IMF and World Bank. While the IMF has offices across Africa, the NDB has only a skeleton staff in Russia and South Africa.
Although Bangladesh, Egypt, Uruguay and the United Arab Emirates also joined as members, the NDB still cannot simply compete with the already established multilateral financial institutions. In 2018, the Board of Directors of the New Development Bank approved two infrastructure and sustainable development projects in South Africa and China, with both loans aggregating $600 million. In addition, the NDB offered financial assistance during the coronavirus pandemic. With energy difficulties, there has been no report indicating loans to support South Africa’s energy sector. In future, developing countries craving to become members of BRICS should not expect any development finances from the BRICS (Brazil, Russia, India, China and South Africa) New Development Bank.
World Bank’s Contribution to South Africa’s Energy Sector
Last October 2023, the World Bank approved a $1 billion loan to support South Africa’s energy sector currently experiencing worse conditions including inadequate funds for overhauling, renovation and upgrading. That the World Bank’s loan, at least, would pull South Africa out of its persistent energy crisis that has adversely hit industrial production.
“The loan endorses a significant and strategic response to South Africa’s ongoing energy crisis and the country’s goal of transitioning to a just and low carbon economy,” the World Bank said in its report. But the South African government has often said it needs nearly $80 billion over the next five years to fund its transition to greener energy sources. Energy experts have consistently suggested that South Africa undergo some necessary reforms in its energy sector to address and consequently overcome regular power cuts that have curbed economic growth and industrial production.
South Africa is not the only country experiencing energy shortage and crisis. Energy poverty is pounding some Southern African countries. Nearly all African countries are suffering from acute power deficits. Appreciably China, Russia and other external countries, at least, have shown their uttermost unique contributions to consolidate relations and save South Africa, whose diverse internal problems turn complicated but highly boasts its image as Africa’s economic power on the international stage. With extreme prestige, the United States, Europe, BRICS and the G20 consistently chuckle at the African National Congress (ANC), President Cyril Ramaphosa and the entire population of South Africa.
Feature/OPED
Unlocking Full Human Potential: Growth, Diversity, and Purpose
In Nigeria’s diverse workforce, the conversation around diversity and inclusion (DEI) extends beyond gender to address tribal diversity, socioeconomic representation, and other cultural nuances. Policies that promote inclusivity are crucial for fostering collaboration in Nigeria’s multicultural corporate environment.
“An organisation is only as good as its people. Ensuring those people perform to their best is the role of human capital. Today, the field has a range of tools to ensure real-time engagement and agile interventions for optimal job satisfaction and performance”, – Catia Teixeira, MultiChoice Africa Holdings Group Executive Head of Human Capital.
In both our professional and personal lives, we all strive for growth and development. These opportunities are deeply rewarding, supporting the kind of self-actualisation that makes life most fulfilling. In the Nigerian workplace, where career growth often intertwines with societal expectations and the drive for self-improvement, human capital plays an even more significant role. Opportunities to grow are not just fulfilling but are deeply rooted in our collective ambition for a better future.
Employee engagement is a reflection of how actualised individuals feel in their roles. Engaged employees are more likely to perform at their peak and contribute positively to the workplace. In Nigeria, where the “hustle culture” is celebrated, organizations must create environments that not only nurture growth but also recognize and reward the efforts of their people.
When employees feel enriched and their work aligns with their aspirations, the results are transformative. Growth and development are not just personal milestones—they are the foundation of a thriving organization and, by extension, a more productive society.
Identifying Growth Opportunities
In every workplace, some employees stand out from the first day, while others take time to grow into their potential. Talent management processes must cater to both. For instance, a twice-yearly organizational talent review can help Nigerian companies identify where employees excel and where they need support.
Interactions within the workplace also play a crucial role. In Nigeria’s highly networked professional landscape, creating opportunities for cross-departmental collaboration can open new doors for employees. Systematic development plans, supported by tailored training, ensure that these opportunities translate into tangible growth.
Take the MultiChoice Academy, for example, which offers over 4,000 online courses spanning finance, HR, marketing, and other fields. This mirrors the Nigerian appetite for continuous learning, especially as industries rapidly embrace digital transformation. While face-to-face training remains valuable, customized e-learning platforms are pivotal in bridging knowledge gaps and preparing employees for the future of work.
For any training program, balance is key. Organizations must align employee development with business goals while ensuring individuals feel empowered to pursue their aspirations. In Nigeria, induction programs that connect new hires with company visions and purpose are critical to building this alignment.
One of the most rewarding aspects of human capital management is witnessing success stories unfold. In a country like Nigeria, where talent is abundant, but opportunities may be unevenly distributed, developing talent internally can make a significant impact. Long-term employees bring invaluable institutional knowledge, and nurturing their growth ensures they continue to drive organizational success.
At MultiChoice, we are deeply committed to equipping our workforce with the skills and confidence needed to excel. Whether it’s training young leaders, empowering women in leadership, or developing heads of departments, every investment in our people enhances their value – as individuals and as indispensable assets to the company.
What Diversity Means
At MultiChoice, gender equity remains a key focus. Women make up 46% of our workforce, and 46% of leadership roles are held by women—a significant achievement in a society where women often juggle professional aspirations with traditional family roles. Our promotions policy is designed to push these numbers to 50%, ensuring equity across all levels of the organization.
When entering new markets, MultiChoice intentionally applies its culture of inclusion, empowering women to excel in leadership positions. This commitment extends to addressing barriers unique to Nigeria, such as access to resources and mentorship for women in underrepresented fields.
Data Drives Change
To drive meaningful change, data is indispensable. Nigerian companies often face challenges like high employee turnover and workplace inefficiencies. By leveraging data, organizations can address these issues strategically.
MultiChoice uses platforms like Office Vibe to generate insights into employee engagement, satisfaction, and work-life balance. Weekly surveys and random polls provide actionable feedback, enabling quick interventions and fostering a culture of continuous improvement.
In Nigeria, where trust in leadership significantly influences workplace morale, data can also help bridge gaps between management and employees. Regular focus groups, coupled with robust analytics, ensure employees feel heard and supported. When organizations align employee needs with business goals, the result is a workforce driven by purpose and achievement.
The Collective Goal
In Nigeria, where community and collective growth are deeply valued, human capital strategies should emphasize the power of shared purpose. By investing in people, organizations contribute to a larger vision of national development.
At MultiChoice, every success story is a testament to this philosophy. From training young leaders to empowering women in leadership, the organization demonstrates that growth is a journey best undertaken together. For Nigeria, this represents a powerful blueprint for building a future where individuals and organizations thrive in harmony.
Feature/OPED
Between Governor Bala and the Presidency
Abba Dukawa
Although I’ve never met Governor Bala Muhammad in person, only seeing him on television, his recent outburst against the federal government’s economic policies resonates deeply with poor citizens’ view.
His concerns stem from empathy for the citizens’ going through unbearable hardships, which have worsened due to the economic situation where millions of citizens struggling with high cost of living, poverty and hardship, reflecting the reality on the ground where citizens face significant economic challenges.
His view resonated with the people in respect of political affiliations have praised Governor Bala for speaking truth to power, acknowledging that the economic policies aren’t working. But his outburst of the economic policies has sparked a heated response from presidency.
Even though President Bola Tinubu claims to have no regrets about his economic policies, aiming to strengthen the country’s economy, policies must be empathetic.
The Tax Reform Bills, in particular, have generated widespread concern, with experts warning of negative implications and advising the government to postpone the bill and engage in further consultations.
The National Economic Council, comprising 36 state governors and led by the Vice President, had expressed reservations about the bill, emphasizing the need for adequate consultation with stakeholders.
However, the Presidency swiftly rejected the NEC’s advice, stressing that the bill is crucial for supporting President Tinubu’s administration in bolstering the country’s fiscal institutions.
Governor Bala Muhammad’s expressed his concerns when hosting Sheikh Yahaya Jangir, a frontline campaigner for the Muslim-Muslim presidency, at the Bauchi Government House.
The governor urged President Tinubu to listen to Nigerians and correct his errors, stating that it’s his duty as a leader to tell the truth.
As Governor Mohammed noted, “I am sure you have heard that we are quarrelling with the president. Yes, it is true we are quarrelling because our people are suffering, and the president has refused to listen to us.”
His comments should not be seen as a critique of the president’s policies, not a personal attack. It’s essential for President Tinubu’s administration to understand the growing concern among Nigerians about the country’s economic direction and the need for effective strategies to address the current economic hardship.
The Presidency, through his Special Adviser, Sunday Dare, responded by urging Governor Mohammed to prioritize the welfare of Bauchi citizens instead of engaging in political posturing. Dare emphasized that the President’s administration is focused on national development and collaboration with state leaders.
It’s worth noting that Governor Mohammed has implemented various poverty alleviation programs, including the Kaura Economic Empowerment Programme (KEEP), to reduce the state’s high poverty rate. He has also prioritized education, with a focus on reducing the number of out-of-school children in the state.
Additionally, Governor Mohammed has taken steps to improve the state’s healthcare system, His administration’s efforts to address these challenges echo the experiences of poor citizens in Bauchi State and across Nigeria.
Overall, Governor Mohammed’s commitment to addressing the pressing issues faced by his state and its citizens resonates deeply with the experiences of poor Nigerians..
Dukawa write it from Abuja can be reached at [email protected]
Feature/OPED
Tinubu’s Titanic Wahala
By Tony Ogunlowo
‘Titanic’ can mean something that is very big, gigantic or enormous and it was also the name of a ship that sank on its maiden voyage.
When the Titanic sank in 1912 it sank due to a number of avoidable factors: a ship deemed unsinkable that wasn’t fitted with watertight compartments, a ‘unprofessional’ seasoned captain who was apparently bullied into going at full speed through known ice-berg strewn waters, lack of common binoculars for the deck watch and the unavailability of enough life boats for all the passengers.
This all put together, as they say, was a recipe for disaster. Red flags were ignored.
Translating this to President Tinubu’s modern-day Nigeria, the avoidable factors that can sink the country are way too obvious.
Nigerians have long enjoyed the benefits of fuel subsidy. Costly as it is to maintain it’s enabled the economy to keep running by keeping the cost of things low. It’s removal, as can be seen, has created a domino effect, as the experts predicted, resulting in the prices of even the basic commodities skyrocketing as everyone passes on the additional costs.
With inflation currently at 32.7% and still rising, things are only going to keep on getting more and more expensive. As a result, the new minimum wage of N70,000 will have less purchasing power than the previous 2021 minimum wage of N30,000. If fuel subsidy removal was meant to boost the economy it has done the opposite and will stagnate any efforts to kickstart it.
The governments inability to control corruption or severely punish corrupt officials which is robbing the country’s coffers of billions and billions of Naira every year is a stumbling block for development.
If a corrupt government official who built 750 houses with stolen funds or an ex-governor accused of misappropriating N80 billion are allowed to walk around freely, supposedly on bail, without fear of eventual conviction it questions the message the government is sending out to future looters: if the culprits were in Russia or China the outcome will be totally different.
Even though an austerity economic policy may seem harsh like it was designed to rob Peter to pay Paul, it should be short, sharp hardship with green pastures in the foreseeable future – not ever! A good start will be to cut down on the number of foreign loans being obtained every year as their repayment can take a huge chunk out of the country’s annual income.
The new tax laws are long overdue and it should include that VAT earned in a state stays in that state: so, if your state doesn’t generate any VAT (- such as from the sale of alcohol products) you don’t get to share in what other states have collected.
Insecurity in the country is not something that started yesterday. Previous governments have blood on their hands for not nipping these insurrections in the bud before they grew to become monstrosities. You don’t pat yourself on the back, like the Nigerian Army likes to do believing you have the threat ‘under control’ – you eliminate the threat completely using what ever means necessary.
Unless the order (given by ‘Somebody’) is not to destroy them completely and to quote the late Sani Abacha,”…any insurgency that lasts more than 24 hours, a government official has a hand in it..”, no wonder Boko Haram continues to flourish and bandits like Turji Bello continue to taut the government. When the armed robber Lawrence Anini did something similar in 1986 he was fished out within months, tried and executed.
As I’ve written before the Nigerian Police Force is long past its sell by date and considering the ever growing population of Nigeria with its associated acts of anti-social behaviour its time to seriously consider devolving the NPF into state-run outfits. The growing popularity of state-run security outfits, such as Amotekun, proves this is feasible and effective.
Considering the fact the country is going through severe economic hardship the President, himself, should curb frivolous spending where possible: no more new Presidential yachts or planes ( – that includes the new one for the VP), a cap on ridiculous-no-real-job SA and SSA appointments and most important of all a cap on ALL politicians salaries and perks (which is to say if politicians are patriotic enough they’ll agree to a pay cut, forgo some of their benefits and pay for their own jaunts abroad).
Implementing the Steve Oronsaye Report which recommends merging and closing of ministries etc that has been passed over by every President since President Goodluck commissioned it in 2011 will cut government operating costs even further. This should not just be at Presidential level but extended to all the states: this will not just streamline the bloated and largely inefficient civil service but will also weed out ghost workers and white elephant project.
The ‘japa’ movement which the government is trying to discourage should be allowed to continue. It’s morally wrong for a government that can’t provide suitable employment for its citizens to try and prevent them from seeking opportunities abroad : ‘japa’ is not just limited to Nigerians, it’s a worldwide phenomenon.
People, British, American, Filipinos, are migrating worldwide to where ever there are opportunities for them to prosper. That’s the way the world works now: nobody is going to stay in a ‘sh*t-hole’ country if there are no opportunities for them to grow. Scr3w patriotism! It’s every man for himself! So, if a country can’t provide adequate employment opportunities people will pack their bags and ‘japa’! And if you restrict them from leaving the country what are they going to do? Get up to mischief – 419, cultism, kidnapping!
These same people send money back to their home countries all the time: Nigerians in diaspora in 2023 alone sent home more than $19.5 Billion Dollars. This is a huge injection of foreign currency for a country that desperately needs it.
So, just like the Titanic the warning signs are there and the inevitable that will happen should they be ignored. The question is which way is President Tinubu going to go. This is what I call the ‘Titanic Wahala’, ignore the obvious and the proverbial will hit the fan, sooner or later.
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