No economy can thrive without energy, says Mantashe

Mineral Resources and Energy Minister Gwede Mantashe has conceded that an economy with no energy, in particular electricity, was only destined to collapse. Picture: ANA Archives

Mineral Resources and Energy Minister Gwede Mantashe has conceded that an economy with no energy, in particular electricity, was only destined to collapse. Picture: ANA Archives

Published Oct 19, 2022

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Cape Town - While Eskom plunged South Africans into yet another round of stage 4 load shedding, Mineral Resources and Energy Minister Gwede Mantashe has conceded that an economy with no energy, in particular electricity, was only destined to collapse.

Speaking at Africa Energy Week at the V&A Waterfront on Tuesday, Mantashe said energy poverty was not an academic exercise in Africa, but a lived experience.

Africa Energy Week sees government officials from African nations, along with oil and gas industry professionals, businesspeople, analysts and public figures in attendance.

The four-day interactive exhibition and networking event seeks to unite African energy stakeholders, and drive industry growth and development.

Mantashe told delegates that an economy with no energy, in particular electricity, cannot serve the interests of any nation, and thus was only destined to collapse.

Mantashe said the lack of energy was the most critical challenge facing Africa today.

“Africa’s growth and prosperity depends on solving the energy poverty that has engulfed the continent and thus ensure security of energy supply to her people.

Lack of energy is the most critical challenge facing Africa today. Recent statistics show that about 600 million Africans, 43% of the population, do not have access to electricity.

“Therefore, energy poverty is not an academic exercise in Africa, but it is our lived experience.

“While we are fully committed to achieving the energy trilemma balance through transitioning from high to low carbon economies, as sovereign states, we must exercise energy sovereignty and eradicate energy poverty on this continent.

As African leaders, this is a commitment we must attain in our lifetime.

“Africans are suffering from energy poverty, and this has been the case for too long that we tend to forget that energy poverty is an anomaly.

We must turn this abnormality around – Africa must no longer wait.

Changing this abnormality requires a greater level of commitment than ever seen before, for Africa’s future depends on it. The time has come for Africans to no longer be content with small ambitions on energy,” he said.

The conference’s first-panel discussion explored Africa’s role in global energy security and the rise of oil and gas as a tool for geopolitical leverage. Group chief executive of Oando Group, Adewale Tinubu, said: “Local institutions do not have the investment capacity to close deals alone.

We need to use natural resources as a bargaining tool.

Natural resources on their own will not eradicate poverty. We should ensure that the EU exports our gas.”

Executive vice-president at Sasol Priscillah Mabelane said energy was a critical enabler of economic growth, yet most African countries were still lagging behind.

“In addition to the challenge of access to energy, Africa faces an uncertain future due to the impacts of climate change.

Energy security, climate security and socio-economic security are connoisseurs of Africa’s developments. As such, it is crucial we address these issues in a sustainable manner,” said Mabelane.

Cape Times