Future of Energy in South Africa and Prospects for Building Regional Value Chains

Abstract

Africa is rich in energy resources but poor in its ability to exploit and use them. Many African countries face an energy crisis. Power is inaccessible, unaffordable, and unreliable for most people, trapping them in perpetual poverty. In addition, the COVID-19 pandemic has increased the triple challenges of unemployment, poverty, and inequality. The central argument of this chapter is that the problem of poverty, unemployment, and inequality in South Africa can be solved partly by a transition to renewable energy (RE). It asserts that RE policy has been ineffective and makes seven sets of recommendations: investing in energy infrastructure; technology transfers; improving access to electricity on a large scale; boosting cross-border power trade; improving the performance of existing utility companies; creating regional energy value chains; and helping countries chart low-carbon growth paths.