By OBAKENG MAJE
31 August 2026 – The Republic of South Africa (RSA) president, Cyril Ramaphosa said a reliable electricity supply is the backbone of the economy. Ramaphosa said it is essential for development and growth.
He further said not long ago, South Africans planned their lives around load shedding. Ramaphosa added that businesses and households that could afford to had to buy generators and diesel to keep operating.
“Factories lost production. Small businesses struggled to survive. Hospitals, schools and households had to cope with hours without power.
“The electricity crisis, with severe load shedding almost every day, undermined investment and disrupted daily life. As we saw, an unreliable electricity supply has a devastating impact across society. So too does the high cost of electricity,” he said.
Ramaphosa said as a result of the Energy Action Plan and the steps they took to improve Eskom’s performance, they have made significant progress in restoring a reliable supply of electricity. He said this is an important achievement which they should recognise and acknowledge.
“But overcoming load shedding was never the end of our work. We must now confront another challenge that affects millions of South Africans, which is the rising cost of electricity.
“The cost of electricity has gone up significantly over the past two decades. For families trying to make ends meet, having to contend with the cost of food, transport and other necessities, high electricity costs cause real hardship,” said Ramaphosa.
He said for businesses, high electricity costs make it more expensive to produce goods and provide services. Ramaphosa said this make South African companies less competitive and discourage investment in industries that can create jobs.
“Our task, therefore, is not simply to produce enough electricity. We need electricity that is reliable, affordable and increasingly clean.
“For more than a century, Eskom has been at the centre of South Africa’s electricity system, responsible for generating, transmitting and supplying most of the country’s electricity. This model served South Africa for many decades,” he said.
Ramaphosa said but the electricity crisis demonstrated the danger of relying overwhelmingly on a single company to meet the energy needs of an entire economy. He said the model is no longer sustainable, if they want reliable and cheap electricity.
“When Eskom’s performance deteriorated, the country had few alternatives. That is why we are focused on modernising and transforming our energy system to ensure energy security, provide cheap, clean power for all South Africans and reduce the high cost of living.
“The enormous cost overruns associated with projects such as the Medupi and Kusile power stations also contributed to Eskom’s financial difficulties and ultimately to higher costs for consumers and taxpayers. We have learned from this experience,” said Ramaphosa.
He said today, thanks to the hard work of Eskom’s management and workers, its performance has turned around. Ramaphosa said Eskom’s latest results show important signs of stabilisation and improvement.
“But, we cannot become complacent. Now is the time to complete the reform process that we began in response to load shedding to ensure that we never experience the same crisis again.
“We need an electricity system in which Eskom is strong, but in which it does not have to carry the entire burden of investing in and supplying the country’s electricity while it continues to carry a huge debt,” he said.
Ramaphosa said that is why they are fundamentally transforming the structure of their electricity sector. He said over the past few weeks, they have made important progress.
“A new Electricity Pricing Policy has been published to ensure transparent electricity tariffs, prevent inefficiencies from being passed on to consumers, expand access to electricity for the poor, and enable competition in electricity generation.
“The energy regulator, NERSA, is finalising a range of new regulations that will form the architecture for a competitive wholesale electricity market. This will enable multiple generators – both public and private – to compete to supply electricity,” said Ramaphosa.
He said this competition can drive greater efficiency, encourage investment and put downward pressure on the cost of electricity. Ramaphosa said it will also enable South Africa to take advantage of some of their greatest natural resources.
“We have some of the best solar and wind resources in the world. With the right infrastructure, regulation and investment, we have the potential to become one of the world’s most competitive producers of clean electricity.
“Over time, cheaper, greener and more reliable electricity will lift our economy’s competitiveness and help industries to grow and create jobs,” he said.
Ramaphosa said chesp and abundant electricity could become a source of competitive advantage for South Africa. He said it could support the expansion of industry, enable new industries such as green hydrogen and electric vehicle production, support small businesses and create hundreds of thousands of jobs.
The Guardian 