XOLILE KUNENE AND LIZALISE DINGALIBALA | Economic restructuring requires energy security

The role of historically black professional organisations has always been an arduous undertaking; on one hand they strive to create a cauldron of competent and capable professionals that can withstand the vigour of the South African modern economy.

And on the other, they must without compromise stand for the downtrodden, disenfranchised and voiceless.

An honest appraisal of the South African patterns of ownership ie black JSE ownership, is less than 30% and declining. This clearly indicates that, on average, the South African black majority still languishes in the same economic position the South Koreans found themselves in 1960. As such, we require a valiant and bold effort to lift the majority out of its current abject conditions; and a deliberate poverty elimination campaign is required.

The public sector has realised that the export deficit SA has towards its foreign bilateral partners can be resolved through re-industrialising and that undertaking requires long-term post-baseload energy supply in order to incentivise economies of scale product manufacturing and export capacity. Nuclear energy is not only low-carbon, it is also reliable when compared to other low-carbon options. This energy direction will translate into the country being able to have impetus in its foreign trading off agreements and further give growth to the black industrialist programme of the state.

Moreover, energy security ought to be a long-term strategic prerogative of the state and this has been shown through the UK. Eight nuclear power stations provide 50% of the country’s electricity supply.

This is a cost-driven solution as despite the supposed competitiveness of renewable energy, it is significantly more expensive than nuclear energy and in SA power procured from renewable energy independent power producers (REIPPs). Another example is South Korea. It began its nuclear programme in the early parts of the 1960s and its export of its goods and services in 2021 stands at 41.72 % ( $750,40B) of its GDP.

SA is currently experiencing constant electricity power cuts and many SMMEs, and businesses are losing clients and crucial hours of productivity. Businesses are closing and people are losing their jobs.

We need long-term planning in building new baseload generation capacity.

Currently the backbone of the Eskom electricity grid is dependent on coal, and SA cannot afford to decommission this baseload source without provision of another baseload. The Black Management Forum (BMF) advocates for the inclusion of nuclear from IRP 2019 policy.

SA should take stock of lessons learned from the global energy crisis which is adversely impacting Europe’s economic stability. Energy prices have hit all-time highs in 2022; South Africans are projected to be unable to sustainably afford such exorbitant prices if we do not plan accordingly for the reliable supply of electricity.

We require responsible green growth which takes into account the real problems our maturing democracy requires.

With nuclear energy as the anchor of the country’s green energy strategy we may begin to live in a post-baseload reality, which enables the state to invest and build mental infrastructures such as new universities, TVET colleges and other essential infrastructure which allow our society to develop in a harmonious and progressive manner.

As the BMF, we are anchored with the ideal that the energy industry requires a transformation charter that is underpinned by legislative enforcement and one that has actionable punitive measures that will create a conducive environment for equitable economic restructuring. The continued strategic deferrals of the nuclear industry goals by sponsored anti-nuclear lobbyists in this country is unacceptable.

This is an attempt to have exclusion of qualified and skilled black professionals from their meaningful participation in the rocket science that the nuclear industry offers. The mass exodus of South African nuclear skills to other countries developing nuclear programmes is partly as the consequence of this strategic intent.

It will soon be evidenced if the previously white male dominated nuclear industry will not be brought back through the back door with SA having to buy from overseas what it has the capability to create its own nuclear technology infrastructure to benefit its citizenry by further industrialising and creating in-demand in-country skill and expertise. The government should proceed to enable its policy position and direction to be implemented as the future of SA’s economy rests on its shoulders.

• Xolile Kunene is BMF acting managing director and head of thought leadership and Lizalise Dingalibala is BMF national energy committee chairperson