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When it comes to dealing with the various crises facing South Africa – especially the energy crisis – there is a sense of despair setting in that the plans and promises from political leaders are being repeated – while the political will to implement them is out of reach.
This is according to Busi Mavuso, the CEO of Business Leadership South Africa (BLSA), who says that solutions to South Africa’s problems are at hand if only politicians can do what it takes to get things done.
Writing in her weekly newsletter, Mavuso said that there appears to be a renewed sense of urgency to deal with the load shedding crisis that has plagued the country for over 15 years.
However, solving domestic problems requires billions of rands in new investments – and this is money that will need to be supplemented from abroad, she said.
“If we can demonstrate the case that such investment will improve the business environment and the performance of our economy, the international community is ready to listen,” she said.
International investors see that there are opportunities in the midst of the challenges in South Africa, Mavuso said. “When business and government jointly make that case, investors hear it.”
“There is no better example of government and business working together effectively than when we engage with the international business community.”
Mavuso’s comments come after visiting the World Economic Forum (WEF) in Davos, Switzerland, last week alongside significant bank CEOs, the minister of international relations and cooperation Naledi Pandor and finance minister Enoch Godongwana.
When trying to make a case for the country as an investment hotspot on the African continent, the CEO stressed the long-term potential of the country; however, she noted that energy security, crime and corruption are all serious disincentives to invest in South Africa.
Mavuso said that while big business welcomes the sudden sense of urgency on load shedding by the government, the sense of despair across the country cannot be ignored.
“There is a sense of despair that we’re doing it all over again as solutions have been tabled time and time again. To be frank, until there is political will across government, solutions will be proposed, perhaps some new ones adopted, but effective implementation will remain out of reach,” she said.
International investors have already approached South Africa in the form of private companies and entire government initiatives. Late last year, President Cyril Ramaphosa concluded various meetings with G20 countries and cemented a myriad of agreements on investment in the country’s renewable future and energy security.
Bilateral agreements dealing with South Africa’s energy crisis were made with the general secretary of the Chinese Communist Party and President Xi Jinping, and the prime minister of the Netherlands, Mark Rutte.
Saudi Arabia has signed 17 memoranda of understanding with South Africa relating to new renewable projects that would supplement the failing grid.
In terms of international private companies, South Africa has also caught the interest of Turkish Karpowership, which wishes to supply 1,220 megawatts of power to the national grid.
According to Bloomberg, the company is awaiting an environmental ruling on 7 March that, if approved, could see progress in implementing three ship-mounted gas-fired power plants.
“South Africa is in the midst of an acute energy crisis,” Karpowership said on Friday in response to questions. “The company is ready to help ease the heavy burden of South Africa’s energy crisis.”
Governments plans
Mavuso pleaded for more government action to mitigate rolling blackouts; however, the government’s response is lacking.
After cancelling his trip to the WEF and instead holding multiple emergency meetings with energy experts and other government officials, President Cyril Ramaphosa has provided no new ideas for dealing with the energy crisis.
Ramaphosa has stuck to his energy crisis plan outlined in 2022, which has seen little change in the frequency of power outages.
Broadly, the new plan – which is his old plan – includes the following three phases:
- Do urgent maintenance to coal-powered power stations
- Build new capacity
- Remove regulatory hurdles
In the short-term, Eskom must be supplied with more diesel, at a large cost to the already indebted company, to run its open-cycle gas turbines that are being used continuously despite only being designed as a supplement to traditional coal stations.
Read: The load shedding schedule for the week has already changed – here’s what to expect