1. South Africa and
Electrical U3li3es
Jaclyn Simard
Julia Warn
Melissa Schegg
INT 610 Module 5

2. South Africa Background
• Country Background
– South Africa was established by seGlers from the North (4th century)
– 1652 Dutch colony was formed and soon aMer the Bri3sh arrived.
– Next 200 years Dutch (Boers) and Bri3sh fought for control
– 1860s and 1880s – diamonds and gold were discovered, respec3vely
• This increased the inflow of immigrants
– 1948 Na3onal Party comes to power. Apartheid law is enacted.
– The next 46 years was the rule of ‘Separateness’
– Damage has been done
• High poverty, high unemployment, high crime, lack of educa3on and
17% of the popula3on is infected with HIV

3. South Africa Background
• Country of Diversity
– Loca3on ‐ southern 3p of African con3nent
– 50 million people
– 11 official languages
– Major Religion – Chris3anity and Islam
– Life Expectancy – 52 years (Male) and 54 years
(Female)
– Largest ci3es – Johannesburg and Cape Town
– Rand is the currency (1 Rand equals 100 cents)
– Exports: gold, diamonds, metals and minerals

4. South Africa and Electrical U3li3es
• Eskom is the electrical supplier to South Africa
– Supplies 95% of South Africa
• residen3al, commercial and redistributors
– Supplies 45% of power to Africa
– Past several years of con3nuous business growth
hGp://www.eskom.co.za/c/ar3cle/743/media‐statement‐25‐august‐2011/

5. South Africa and Electrical U3li3es
• Posi3ves
– In process of building several new power plants
– Solar power and wind farm ini3a3ve
– Customers and revenue have been steadily
growing since 2007
– Monopolist environment
• Huge market share, liGle to no compe33on
– South African company
h"p://www.eskom.co.za

6. South Africa and Electrical U3li3es
• Nega3ves
– Old and disintegra3ng infrastructure
– Increasing demands by new customers
– Eskom controls rolling blackouts and ‘load‐shedding’ to
keep power on
– Unable to keep up with demands and it will only
increase as new customers are brought online
– Upgraded network is being worked on – comple3on
date 2018.
hGp://www.bbc.co.uk/news/world‐africa

7. South Africa and Electrical U3li3es
Poli3cal Risks
‐ Mul&party Parliamentary Democracy Shared power
between President and Parliament
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8. South Africa and Electrical U3li3es
• Economic Risks
‐ S&ll recovering from 2009 recession
‐ High unemployment rates Government es3mates a growth
rate of 6% in order to offset unemployment levels
‐ Increasing Fiscal Deficit con3nuously increasing since 2009
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9. South Africa and Electrical U3li3es
Poli3cal Benefits
‐ Ibrahim Index of African Governance (IIAG) In
2007/2008, South Africa ranked 5th out of 53 countries
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10. South Africa and Electrical U3li3es
Economic Benefits
‐ Emergence from 2009 recession
‐ “Economic Powerhouse of the African Con&nent”
‐ Generates over 50% of Africa’s electricity
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