Africa’s energy future: Power expansion vs Payment system collapse

At this year’s Africa Energy Indaba in Cape Town currently underway, the conversation around Africa’s energy future is not just about how much electricity can be generated, but how it will be paid for, transmitted and sustained. South Africa alone faces a R450-billion transmission grid expansion challenge, even as electricity access has reached 93% of households. While investment in independent power producers and renewable energy continues to grow across the continent, experts warn that a more difficult structural challenge is emerging, the financial and payment systems that underpin the energy value chain. With municipalities owing Eskom more than R100 billion, and consumer and business arrears to municipalities exceeding R416 billion, can Africa sustainably expand energy supply without fixing billing, revenue collection and digital payment infrastructure.Vincent Maphosa, CEO of Wetility – a South African independent power producer (solar) and fintech infrastructure company explains.