South Africa’s Power Export Boom
Who Buys South Africa’s Electricity?
According to Minister Kgosientsho Ramokgopa, South Africa sends electricity to eight neighboring countries: Botswana, the Democratic Republic of Congo, Eswatini, Lesotho, Mozambique, Namibia, Zambia, and Zimbabwe. These nations rely on South African power to keep homes lit, factories running, and schools operating.
How Much Money Is Expected?
For the financial year that ends on March 31 2026, the government estimates that electricity sales to these countries will bring in about **R18.8 billion**. This figure comes from a parliamentary answer to a question posed by uMkhonto we Sizwe MP Moses Mbatha, who asked both the number of recipient countries and the revenue generated.
Why Is There More Power to Sell?
Eskom’s group chief executive, Dan Marokane, recently noted that the utility’s generation performance has improved. More electricity is being produced than is needed domestically, creating a surplus that can be exported.
Rising Power Prices at Home
While exports are boosting revenue, South Africans are feeling the pinch at home. Minister Ramokgopa highlighted that between 2007 and 2023, electricity tariffs jumped by **987 %**, far outpacing inflation, which rose only about **150 %** in the same period. He warned that such steep increases eat into household disposable income, slow economic growth, and make local industries less competitive.
What’s Being Done About Prices?
In response to the cost crisis, the ministry is finalizing a new electricity pricing policy. The goal is to balance the need for revenue—especially from export earnings—with the affordability of power for everyday consumers.
Conclusion
South Africa’s ability to export electricity to eight southern African neighbors is turning into a significant source of income, projected to reach R18.8 billion by early 2026. At the same time, skyrocketing domestic tariffs are straining households and businesses. The government’s upcoming pricing policy aims to reconcile these two realities—leveraging export profits while keeping power affordable for South Africans.
