World
World Bank Okays $1bn Loan for South Africa’s Energy Sector
By Kestér Kenn Klomegâh
The World Bank has approved a $1 billion loan to support South Africa’s energy sector which is currently experiencing worse conditions including inadequate funds for overhauling, renovation and upgrading. Energy experts believe that the World Bank’s loan, which seems the last resort, would pull South Africa out of its persistent energy crisis that has adversely hit industrial production.
The energy problem has forced the country to lean on its highly polluting coal-fired power stations and consistent difficulties of generating enough electricity for its 62 million people. The state-run power utility, Eskom, generates approximately 80% of the country’s electricity through its coal stations, but they have failed to meet demand due to gross mismanagement, deep-seated corruption and regular breakdowns.
“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 latest 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.
It has already received a $439.5 million loan from the World Bank to help convert a former power station into a renewable energy provider. The Komati power station was decommissioned last year, but its story is an example of how developing countries desperately need money to finance their change to greener energy sources to help meet climate change goals.
Energy experts have consistently suggested that South Africa undergo some necessary reforms in its energy sector in order to address and consequently overcome regular power cuts that have curbed economic growth and industrial production.
Marie Francoise Marie-Nelly, the World Bank’s director for South Africa, said in a statement that the bank wants to support the country’s reforms to split struggling power firm Eskom and to transition to a low carbon economy.
In the statement, Marie-Nelly said reforms the government had launched would “benefit the people of South Africa – particularly the most vulnerable households – the economy, the environment, and advance the energy transition.” Eskom’s coal-fired power stations routinely break down, leading to outages of up to 10 hours a day.
The World Bank said its Development Policy Loan would contribute to a gradual reduction in water and air pollution by reducing the reliance on coal for power generation. It would also support “a low-carbon transition by encouraging private investment in renewable energy, including by households and small businesses, and strengthening carbon pricing instruments.”
South Africa’s government pledged to split Eskom into three subsidiaries – transmission, generation and distribution – in 2019. In February, it agreed to take on 254 billion rand ($13.3 billion) of Eskom’s debt, more than half its total debt, which was at risk of default.
In an interview back in April 2021, Knox Msebenzi, Managing Director of the Nuclear Industry Association of South Africa (NIASA), discussed the impact of challenges on the country’s economy and a way out of the power generation difficulties in South Africa.
According to him, Eskom, the utility company had a good handle on electricity consumption growth and had asked to build new capacity to meet the growing demand but was stopped by the government whose policy was to introduce other players in building new capacity. As a result of this delay and the ageing of the coal fleet, supply became increasingly a problem, resulting in load shedding. The impact was devastating. Some industries closed down and prospective investments could not come into the country because of no security of supply offered by the utility.
He explained that South Africa should pursue an energy mix that includes coal, nuclear and renewables going forward. The problem with the power industry is that there are too many players with self-commercial interests mudding the waters and driving the agenda that favours one type of technology at the detriment of the others.
Under Jacob Zuma, the narrative was that the insistence on nuclear power was driven by a corrupt agenda. Under Cyril Ramaphosa, it seems those who are pushing for renewable energy as the only sustainable source are getting more exposure. Experts, however, suggested an all-inclusive energy mix as a sustainable, long-term solution to South Africa’s energy needs. It cannot be an either-or scenario. The Integrated Resource Plan (IRP), which is the government’s energy policy, is very clear that an energy mix is the path towards attaining energy security.
South Africa is not the only country experiencing energy shortage and crisis. In fact, energy poverty is pounding a number of Southern African countries. Nearly all are suffering from acute power deficits. Southern Africa and other African countries must display the capability of solving the electricity situation. The challenges relating to nuclear are well articulated but are manageable. Criticisms of nuclear relating to costs and project management (long delays with huge projects) are being addressed with Small Modular Reactors.
By Kestér Kenn Klomegâh
Today, boosted by the Kremlin’s diplomatic push and support from the Ministry of Foreign Affairs’ Department of Partnership, Russian companies are moving with multitude of development projects and corporate entrepreneurial investments into Africa. St. Petersburg summit has also charted the roadmap cum well-designed strategies for boosting the entire bilateral economic cooperation with the continent whose endowed resources include the huge human capital.
The geography of Russia-African economic cooperation is steadily expanding. As previously reported, the Russian Industry and Trade Ministry, since the beginning of 2025, approximately 150 Russian companies have moved into Africa. And with Africa, ready to engage in priority partnerships, the Russian registered company called A7 African Cargo Lines LLC (A7 ACL, Moscow) has started its logistics and shipping services to West Africa. According to the Unified State Register of Legal Entities, A7 African Cargo Lines LLC (A7 ACL, Moscow), was registered on April 17, and has its primary activity listed as railway freight transportation.
“We intend to operate in West Africa,” the Board Chairman Andrei Severilov, told Interfax regarding the company’s establishment. “At the first stage, with the assistance of the Russian trade mission in Nigeria, we are implementing a project to establish a direct shipping line,” Severilov said. According to the news report, the launch of a maritime route between Novorossiysk and Nigeria’s port of Lagos is planned for mid-June, with two container ships chartered for the line’s inauguration, each with a capacity of 700 twenty-foot equivalent units (TEU). Future plans also include establishing maritime connections with Senegal (Dakar port).
Severilov previously owned a 23.8% stake in PJSC Far Eastern Shipping Company (FESCO, the parent company of FESCO Transportation Group). In September 2024, Severilov announced his intention to re-enter the transportation business and established the asset management company A7 African Cargo Lines LLC (A7 ACL, Moscow), with a focus on Africa and primarily targeting to get substantive returns, in terms of, profits. It’s unique decision to take up logistics connecting Africa’s transport market is poised for significant trade growth, by transporting goods across the region and for exports to Europe.
By building a new shipping line that would connect the West Africa, first through Nigeria promises raising trade. Nigeria is Africa’s most populous nation and its largest economy. Nigeria is a key member of the African Continental Free Trade Area (AfCFTA), which is fostering intra-African trade and economic integration. In addition to above factors, Russian companies are showing increased interest in Nigeria, for example in reviving the countries largest steel plant. There is also interest in investing in Nigeria’s energy sector.
Undoubtedly, establishing A7 African Cargo Lines LLC (A7 ACL, Moscow) could be an explicit opportunity for promoting trade by its logistics infrastructure. Reports indicate that Russia’s exports to Nigeria currently amount to about $1.51 billion, mainly consisting of refined petroleum, wheat, and malt, while Nigeria exports a small amount to Russia, primarily cut flowers, other oily seeds, and nuts.
Further to that, the overall Africa’s trade statistics at the end 2024, soared to a record of $24.5 billion from the previous figure, approximate $20 billion that came up during the special panel discussions in 2023 when the second Russia-Africa summit was held in St. Petersburg, the second largest city in the Russian Federation.
By the next Russia-Africa summit slated for 2026, with high anticipation of more Russian enterprises dominating the African landscape, in spite of the existing complexities and challenges would extend or broaden the sphere of economic influence in the context of geopolitical power shifts being capitulated by the Western powers and President Donald Trump of the United States.
By Adedapo Adesanya
The leadership of the Catholic church should announce a successor to the late Pope Francis on May 7.
A new Pope will be elected via a conclave, which involves a secret voting system.
This was initially supposed to hold on May 5 but was delayed for two days to help the cardinal electors get to know one another better and find consensus on a candidate before they are sequestered in the Sistine Chapel.
The cardinals set the date after arriving for the first day of informal meetings following Pope Francis’ funeral on Saturday.
The College of Cardinals that will elect a new pope includes members from far-flung corners of the globe whom Pope Francis named over his 12-year papacy to bring in new points of views of the Catholic Church hierarchy.
According to reports, 135 cardinal electors — 108 of whom were appointed by the late Pope Francis — don’t know each other very well.
The last 20 were appointed in early December.
Only cardinals under 80 are eligible to vote, and it is not clear how many of the 135 will participate.
Who Could Be The Next Pope?
Some candidates have emerged and Business Post has gathered from several sources of the possible candidates that could emerge as the new Pope.
Italian Cardinal Pietro Parolin, the Vatican’s Secretary of State, is recognized for his diplomatic skills and is viewed as a moderate who could continue Pope Francis’ policies, although his involvement in a €200 million investment scandal may affect his candidacy.
Cardinal Matteo Zuppi, also from Italy, serves as the Archbishop of Bologna and is known for his focus on inclusivity and social justice, aligning closely with Francis’ pastoral approach.
Cardinal Pierbattista Pizzaballa, the Latin Patriarch of Jerusalem, has demonstrated a commitment to interfaith dialogue and peace efforts in the Middle East, and his selection would make him the youngest pope since John Paul II.
From the Philippines, Cardinal Luis Antonio Tagle is considered a rising star within the Church, known for his humility and compassionate outreach, particularly towards marginalized communities.
Cardinal Robert Sarah of Guinea is a prominent conservative voice, advocating for traditional Catholic teachings and liturgical practices, appealing to those seeking a return to doctrinal orthodoxy.
Hungarian Cardinal Péter Erdő is another leading conservative candidate, noted for his strong doctrinal stance and experience within the Church’s hierarchy.
Swedish Cardinal Anders Arborelius, the Bishop of Stockholm, is the first cardinal from Scandinavia and is known for his ecumenical efforts and commitment to dialogue within the Church.
Cardinal Fridolin Ambongo Besungu of the Democratic Republic of the Congo is an outspoken critic of liberal teachings within the Church, representing a conservative perspective from the Global South.
Dutch Cardinal Wim Eijk, a former medical doctor, is known for his conservative views, particularly on issues related to marriage and family, and his opposition to Pope Francis’ liberal approach.
By Adedapo Adesanya
Pope Francis has died at the age of 88 after battling illness in the last couple of months.
The Vatican announced his demise on Monday morning, a day after Easter.
The pontiff, who was Bishop of Rome and head of the Catholic Church, became pope in 2013 after his predecessor, Benedict XVI resigned.
His death was announced by Cardinal Kevin Farrell in a statement released by the Vatican.
He said: “Dearest brothers and sisters, with deep sorrow I must announce the death of our Holy Father Francis.
“At 7.35am this morning, the Bishop of Rome, Francis, returned to the house of the Father. His entire life was dedicated to the service of the Lord and His Church.
“He taught us to live the values of the Gospel with fidelity, courage and universal love, especially in favour of the poorest and most marginalised.
“With immense gratitude for his example as a true disciple of the Lord Jesus, we commend the soul of Pope Francis to the infinite merciful love of the One and Triune God.”
The process for choosing a new pope – conclave – generally takes place between 15 and 20 days after the death of a pontiff.
Cardinals from around the world will gather in the Vatican and choose the new leader of the Catholic church.
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