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The Conversation
Environment
Roula Inglesi-Lotz, Professor of Economics, University of Pretoria

South Africa's economic growth affected by mismatch of electricity supply and demand

Electricity pylons at night in Johannesburg South Africa, the country's economic hub. Taken by Alistair Routledge for Getty Images

South Africa’s electricity sector has faced a series of challenges over the last two decades. It started with inadequate grid infrastructure to provide electricity to the majority of the South African population in the 1990s. In 1994, only 36% of total households were electrified; 50% of the urban population and 12% of the rural population.

Particularly in the middle of the 2000s, the national utility, Eskom, ran into liquidity and profitability problems. It received frequent government bailouts. The 2022 national budget allocated R21.9 billion (about US$1.5 billion) to Eskom.

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