Asianometry South Africa’s Crumbling, Corrupt Electricity Monopoly
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May 26, 2025 The podcast delves into the history and current turmoil of ESKOM, South Africa's electricity monopoly. It highlights the recent surge in load shedding after a temporary reprieve, revealing the company's struggles. The narrative traces back to the early 1900s, showcasing how the gold mining industry shaped the energy landscape. Political shifts and rampant corruption exacerbate ESKOM's woes, with increasing pressure to adopt renewable energy amidst a dire energy crisis. A gripping exploration of power dynamics and public utility challenges.
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ESCOM's Founding and Purpose
- ESCOM was created in 1922 to supply electricity at low cost and support South Africa's state capitalism and industrial diversification.
- The monopoly was designed to avoid dependence on unstable gold mining and labor strikes, securing reliable power for growth.
Coal Power Drives Cheap Energy
- ESCOM solved power supply issues by building new coal power stations funded by foreign loans in the 1950s.
- Cheap coal and exploited labor led to some of the world's cheapest electricity by 1960.
ESCOM's Overexpansion Problems
- ESCOM's massive 1970s-80s build-out of large coal plants caused high debt and inflexible capacity.
- Economic downturn and political isolation worsened the situation, leading to governance reforms in the 1980s.