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The Ripple Effect of South Africa's Energy Crisis

3/15/2023

 
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South Africa is struggling through an energy crisis. Scheduled blackouts, known to locals as ‘load shedding’ are crippling South African businesses and the larger economy, but how is this failure to resolve this issue rippling into the rest of the continent and what effect is it having on the startup boom?

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South Africa has restrictions on privatisation of energy suppliers with ESKOM being the near-sole provider of electricity for the country at 95% (making up 45% of the continent’s energy supply). You can read at length about how this energy crisis started but we would like to focus on the specifics of how it is affecting the economy and therefore the startup sphere.

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