🎬No to clean energy?

Good morning. TGIF (the correct pronunciation is T-JIFF).

— Tayo Davies, Edna Akanni, Geraldine Ndzomo.

STARTUPS

South African energy startups are being left in the dark

In South Africa, it’s out with the new and in with the old as renewable energy startups struggle following the restoration of stable power supply to homes by national energy supplier, Eskom.

It’s been 153 days since South Africa experienced load-shedding, a deliberate rationing of electricity supply to prevent failure of the entire system. At the peak of South Africa’s energy crisis, houses and offices were left in darkness for up to 8 hours per day, grinding the economy to a near-stop with losses estimated at $51mn daily.

No to clean energy? The return to constant electricity supply has not come without a cost. Renewable energy startups that thrived during load-shedding are quickly changing their business models, according to analysts.

• On Facebook marketplace, customers are selling their backup solar systems for 20% of the original price. One listing had a Growatt 5KW solar system up for R6,000 ($337). Its retail price is R35,000 ($2,000).

• Rooftop solar panel installations are down by 91% compared to the same period in 2023.

• In July, Hohm Energy, a solar startup that raised $8 million in seed rounds, declared bankruptcy.

Elsewhere. When it comes to power supply on the continent, South Africa has little to complain about. In 2023, South Sudan was reported to be the least electrified country in the world with 7.7% of its population having access to electricity. Zambia, Zimbabwe, and Mozambique, all in southern Africa edge out with about 40% electricity coverage, a far cry from South Africa’s 84%.

Looking ahead. Despite Eskom’s improving power generation capabilities, the national power company bleeds cash because of high debt and operating costs. It passes these costs to consumers in the form of higher tariffs. This means that although consumers will enjoy a better power supply, they will pay more. This will continue to provide a rationale for alternative energy startups. TD.

AFRICA

Headline Quickie

• Nigeria becomes first country to receive mpox vaccines. With cases confirmed in more than 10 of the 36 states, Nigeria becomes the first country in the Sub-Saharan Region to receive mpox vaccine doses. This week, the United States of America confirmed a donation of 10,000 doses of the Jynneos(MVA) vaccine to Nigeria. This is on the backdrop of a severe vaccine shortage experienced in the Democratic Republic of Congo, which has recorded the highest number of cases at more than 360,000 so far.

• Gabon Presidential Elections: Gabon is preparing for its upcoming presidential elections, which are set to be highly contentious as the incumbent president seeks another term. The election has sparked tensions, with opposition parties accusing the government of undermining democratic processes and voter suppression. The political atmosphere in Gabon is charged, with protests and rallies being held across the country. Observers are concerned about potential violence and the fairness of the electoral process which they fear may lead to a coup.

• Ivory Coast's Cocoa Sector Under Threat: Ivory Coast, the world’s largest cocoa producer, is facing a crisis as climate change and deforestation threaten its cocoa industry. The country’s farmers are reporting lower yields and increased pest infestations, which are being exacerbated by erratic weather patterns. The government, in collaboration with international organizations, has launched new initiatives to promote sustainable farming practices and protect the remaining forests. However, these efforts face challenges due to the economic pressures on farmers to expand cocoa cultivation.