Africa's largest industrial nation—suffering from electricity shortages?

Due to its own mismanagement, Eskom ultimately fell into a financial crisis. Starting in 2018, Eskom’s financial situation deteriorated sharply: operating costs began exceeding revenues, and the company faced severe difficulties securing financing. In 2019, Eskom experienced a cash shortage, rendering it unable to repay debts or maintain normal operations—bringing it to the brink of collapse. Ultimately, the South African government was forced to step in with a guarantee, arranging a R3-billion commercial loan for Eskom in March 2019. In July 2019, Eskom announced massive financial losses totaling R20.7 billion, citing heavy debt repayments and rising primary energy costs. Rigid institutional mechanisms, aging infrastructure, internal corruption, and financial distress—all these factors make it astonishingly difficult for South Africa *not* to suffer electricity shortages. International pressure to reduce emissions Yet South Africa’s electricity shortage stems from far more than just utility mismanagement. South Africa holds proven coal reserves of 30.156 billion tonnes; in 2023, it produced 232 million tonnes—making it Africa’s top coal producer. Consequently, coal-fired power accounts for as much as 80% of South Africa’s electricity generation. As of 2021, Eskom operated 30 power stations—half of them coal-fired. In 2021 alone, South Africa emitted nearly 430 million tonnes of CO₂, ranking 14th globally in carbon emissions. This high emission level brings serious pollution—and thus mounting climate pressure from developed nations. Arnot Coal-Fired Power Station. Source: Wiki To reduce coal dependency, at COP26 in 2021, South Africa signed the ‘Just Energy Transition Partnership’ (JETP) with the UK, the US, and the EU. Under this agreement, partner countries pledged USD 8.5 billion between 2023 and 2027 to support South Africa’s gradual phase-out of coal-fired power plants. In return, the South African government committed to reducing coal’s share in electricity generation to 50% or less by 2035. Ahead of COP27 in 2022, South Africa announced that its first coal-fired power plant—the Komati Power Station—had ceased operations and would be converted into a renewable-energy facility. COP27, held in 2022. Source: Wiki Mpumalanga Province produces 83% of South Africa’s coal; roughly 85% of the country’s coal mining occurs there. Twelve of Eskom’s 15 coal-fired power stations are located in Mpumalanga. In 2020, the province employed nearly 200,000 people across its coal and power sectors. Yet to meet decarbonization goals, Eskom plans to shut down nine coal-fired power stations in Mpumalanga by 2035. This move will directly impact approximately 90,000 coal workers employed at mines and coal plants in the province. An estimated 4,500–7,500 new jobs will vanish, and nearly 18,500 workers will face early retirement—before reaching official retirement age—over the next decade. Kusile Coal-Fired Power Station in Mpumalanga Province. Source: Wiki Beyond opposition from coal workers, the energy transition faces resistance even from officials within the ruling African National Congress (ANC). Gwede Mantashe, South Africa’s Minister of Mineral Resources and Energy, is a prominent ANC figure opposing the energy transition. In the 1980s, when current South African President Cyril Ramaphosa led the National Union of Mineworkers (NUM), Gwede Mantashe co-founded and co-led its branch in Witbank.

South Africa’s homegrown 'black tech' born from sanctions: turning coal into oil!

Today we’re diving into something utterly absurd—and yet fiercely impressive: South Africa, which produces virtually no oil, managed—under global sanctions—to turn coal into gasoline! This isn’t sci-fi; it’s energy-sector survival mode at its most extreme! Hi, I’m Fei Ziyu. Part A — Background: A life-or-death technology forged under strangulation. What was South Africa’s situation? Rich in coal, poor in oil—and so oil-poor it literally ran out of fuel! During the apartheid era, the world imposed a full petroleum embargo. Cars ground to a halt; planes couldn’t fly; the entire nation choked under an energy blockade. Most countries would have panicked—but South Africa took a wildly unconventional path: ‘You won’t sell us oil? Fine—we’ll make our own!’ They imported Germany’s Fischer–Tropsch synthesis technology, then radically adapted it. In short: crush coal, gasify it, catalyze it—and after a whirlwind of intense chemical engineering, black coal pellets magically transform into crystal-clear gasoline! This isn’t magic—it’s a technological miracle born from being backed into a corner. Part B — Development: From garage experiment to world leader. At first, nobody believed coal could become oil. So South Africa founded Sasol—and kept scaling up. While others were still tinkering in labs, South Africa was already building factories and mass-producing fuel. While others debated costs, South Africa had already achieved near-half domestic energy self-sufficiency using this very process.

South Africa Expands Coal Mine to Feed Power Station for Years

May 15, 2026

Exxaro Resources expanded its Matla coal mine to supply over 9 million tons annually to Eskom until 2043, maintaining energy supply despite renewable growth.

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South Africa Expands Coal Mine to Feed Power Station for Years

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