Energy supply is a critical driver of socio-economic development in African nations as they strive to bridge the gap with developed countries. However, the continent faces significant challenges due to energy poverty and inadequate responses to the ongoing energy crisis.
In a recent study, Thabang Motswaledi, a North-West University (NWU) academic from the School of Government Studies, highlights the responses by state-owned enterprises (SOEs) as central to addressing this crisis. He says this has far-reaching consequences for economic activities, households and industries across the continent.
The study underscores how the energy crisis disrupts essential services, stunts economic growth and hinders technological advancement. South Africa and Nigeria – two of Africa's leading economies – are particularly affected. Despite their potential to lead in energy generation and compete on the global stage, they face obstacles such as corruption, poor maintenance and political interference, which prevent them from fulfilling this role.
Thabang's research further reveals how policy inconsistencies and a lack of political vision have led to the failure of SOEs to fulfil their primary mandate of ensuring energy security.
"The research discloses that while there have been some responsive measures, particularly in Nigeria following privatisation, the efforts are often undermined by political interference, corruption, maladministration and lack of maintenance," he says.
His study is significant as it compares the two countries’ economies and the energy challenges confronting them, as well as the responses implemented to alleviate them.
“Comparing South Africa and Nigeria provides insight into both developing and underdeveloped contexts, demonstrating the importance of energy reform, provision and sustainable responses to the energy crisis."
Shedding light on how SOEs respond
Furthermore, the study describes the most challenging factors hindering SOEs’ growth and efficient energy supply strategies, he says. “It also builds a case for the role of SOEs in ensuring security of supply in the energy sector."
Although there is existing scholarly literature on South Africa’s and Nigeria's energy sectors, there is little focus on how SOEs respond or should respond to the energy crisis.
"This study focused on the role and ability of SOEs in South Africa and Nigeria to supply energy in a manner that drives positive economic growth," he explains. "It highlights the importance of energy demand meeting supply to ensure sustainable growth in the economy and energy sector.”
He concludes that strategic interventions are necessary for SOEs to effectively address the energy crisis and overcome the factors contributing to this persistent challenge.
Thabang Motswaledi
