The coal-fired Matla Power Station in South Africa's Mpumalanga province. A partial privatisation could lead to 100 billion rand being invested in assets to generate more power in South Africa, according to Intellidex. Reuters
The coal-fired Matla Power Station in South Africa's Mpumalanga province. A partial privatisation could lead to 100 billion rand being invested in assets to generate more power in South Africa, according to Intellidex. Reuters
The coal-fired Matla Power Station in South Africa's Mpumalanga province. A partial privatisation could lead to 100 billion rand being invested in assets to generate more power in South Africa, accord
The misery of ongoing power cuts that are damaging Africa’s largest industrial economy may finally be coming to an end, with industry now allowed to generate its own energy.
South Africa generates most of its electricity from a fleet of ageing coal-fired plants, which are prone to breakdowns. When this happens, state energy utility Eskom cuts power to large parts of the country, sometimes for many as eight hours a day.
However, President Cyril Ramaphosa made a surprise announcement in June that companies could produce up to 100 megawatts without requiring a regulatory licence. To put it into perspective, a typical gold mine, which is among the largest users of electricity, requires between 20MW and 30MW for operations.
“The energy shortfall is a major risk to our economy,” said Mr Ramaphosa during a televised address. “Energy security is one of the priority interventions in our economic recovery plan.”
The sudden announcement caught many off guard, though.
“This was quite a surprise,” says Henk Langenhoven, chief economist at the Minerals Council, which represents the mining industry. Mines had been lobbying for a 50-megawatt exemption limit, while just two weeks earlier South Africa's Minister of Minerals and Energy Gwede Mantashe had been insisting that no more than 10 megawatts was on the table.
Many of the mines and related industries already had plans to set up solar, wind and other electricity-generating projects.
“We estimate there is at least 30 billion rand ($2.1bn) of electricity projects ready to go, which is equal to a third of the country’s fixed investment in 2019,” says Mr Langenhoven.
Beyond the mining industry, total investment could be as much as 100bn rand in the coming decade, according to Intellidex, a Johannesburg financial consultancy.
So far, there has been no directive as to what form the electricity generation will take but the general assumption is that for the most part it will be renewables such as wind and solar, says Prof Sampson Mamphweli at The Centre for Renewable and Sustainable Energy Studies at Stellenbosch University.
Other sources of energy are also expected. “With natural gas, we expect some capacity will come from there,” he said.
However, coal is the least likely candidate, in spite of the large deposits found in the country. This is because few banks or lending institutions are now making finance available for new coal mines or power plants, says Prof Mamphweli.
“It is very difficult to get finance for coal projects. We cannot rule it out, but expect a lot of solar and biogas.”
Already, companies are unveiling plans. Private hospital group Mediclinic says it will install solar panels across six of its hospitals countrywide.
“The solar PV systems will generate electricity that is supplied directly to each hospital site, affording them cost savings on their monthly power bills while relieving pressure on the constrained national grid,” the company said.
Also moving ahead is US car manufacturer Ford, which has a large assembly plant near the capital, Pretoria. The company will build one of the world’s largest solar-covered parking bays – a total of 4,200 covered spots for cars awaiting delivery. The project will deliver 13.5 megawatts and reduce reliance on the national grid.
Mining company Gold Fields has already received permission for a 40MW solar farm at its flagship South Deep gold mine, east of Johannesburg. The company is drawing on lessons it already learnt from its Australian operations, where it uses battery storage together with wind and solar.
Given that the country now has an unemployment rate of about 75 per cent among youths – classified as school leavers under 24 years of age – according to government statistics, it is hoped the infusion of energy projects will lead to mass job creation.
However, the scope of deregulation raises some questions. For instance, most towns and cities rely heavily on electricity sales for their revenue. They buy power from Eskom and sell it to businesses and homes within their borders.
“Around 70 per cent municipal revenue is from electricity sales,” says Lungile Mashele, an energy specialist at the Development Bank of Southern Africa.
The move, she says, would ultimately affect their bottom line.
“Municipalities also provide vital services such as clinics, water and roads, which are cross-subsidised by energy sales.”
Still, it appears the government will press ahead with its plans, Eskom's chief executive Andre de Ruyter said during an online conference last month.
He said consumers and industry could soon expect relief from power cuts.
“Judging by the example of Vietnam, where they were able to add about 7,200MW to the grid in a period of 18 months following similar deregulation, we are hopeful that we will see more capacity added to the grid sooner,” said Mr de Ruyter.
FINAL SCORES
Fujairah 130 for 8 in 20 overs
(Sandy Sandeep 29, Hamdan Tahir 26 no, Umair Ali 2-15)
Sharjah 131 for 8 in 19.3 overs
(Kashif Daud 51, Umair Ali 20, Rohan Mustafa 2-17, Sabir Rao 2-26)
WHAT IS A BLACK HOLE?
1. Black holes are objects whose gravity is so strong not even light can escape their pull
2. They can be created when massive stars collapse under their own weight
3. Large black holes can also be formed when smaller ones collide and merge
4. The biggest black holes lurk at the centre of many galaxies, including our own
5. Astronomers believe that when the universe was very young, black holes affected how galaxies formed
Date started: January 2017 Founder: Khaled Zaatarah Based: Dubai and Los Angeles Sector: Technology Size: 21 employees Funding: $7 million Investors: Shorooq Partners, KBW Ventures, Vision Ventures, Hala Ventures, 500Startups, Plug and Play, Magnus Olsson, Samih Toukan, Jonathan Labin
Keep it fun and engaging
Stuart Ritchie, director of wealth advice at AES International, says children cannot learn something overnight, so it helps to have a fun routine that keeps them engaged and interested.
“I explain to my daughter that the money I draw from an ATM or the money on my bank card doesn’t just magically appear – it’s money I have earned from my job. I show her how this works by giving her little chores around the house so she can earn pocket money,” says Mr Ritchie.
His daughter is allowed to spend half of her pocket money, while the other half goes into a bank account. When this money hits a certain milestone, Mr Ritchie rewards his daughter with a small lump sum.
He also recommends books that teach the importance of money management for children, such as The Squirrel Manifesto by Ric Edelman and Jean Edelman.
New Zealand: Williamson (c), Blundell, Boult, De Grandhomme, Henry, Latham, Nicholls, Ajaz, Raval, Sodhi, Somerville, Southee, Taylor, Wagner
Umpires: Bruce Oxerford (AUS) and Ian Gould (ENG); TV umpire: Paul Reiffel (AUS); Match referee: David Boon (AUS)
Tickets and schedule: Entry is free for all spectators. Gates open at 9am. Play commences at 10am
Heavily-sugared soft drinks slip through the tax net
Some popular drinks with high levels of sugar and caffeine have slipped through the fizz drink tax loophole, as they are not carbonated or classed as an energy drink.
Arizona Iced Tea with lemon is one of those beverages, with one 240 millilitre serving offering up 23 grams of sugar - about six teaspoons.
A 680ml can of Arizona Iced Tea costs just Dh6.
Most sports drinks sold in supermarkets were found to contain, on average, five teaspoons of sugar in a 500ml bottle.
It’ll be summer in the city as car show tries to move with the times
If 2008 was the year that rocked Detroit, 2019 will be when Motor City gives its annual car extravaganza a revamp that aims to move with the times.
A major change is that this week's North American International Auto Show will be the last to be held in January, after which the event will switch to June.
The new date, organisers said, will allow exhibitors to move vehicles and activities outside the Cobo Center's halls and into other city venues, unencumbered by cold January weather, exemplified this week by snow and ice.
In a market in which trends can easily be outpaced beyond one event, the need to do so was probably exacerbated by the decision of Germany's big three carmakers – BMW, Mercedes-Benz and Audi – to skip the auto show this year.
The show has long allowed car enthusiasts to sit behind the wheel of the latest models at the start of the calendar year but a more fluid car market in an online world has made sales less seasonal.
Similarly, everyday technology seems to be catching up on those whose job it is to get behind microphones and try and tempt the visiting public into making a purchase.
Although sparkly announcers clasp iPads and outline the technical gadgetry hidden beneath bonnets, people's obsession with their own smartphones often appeared to offer a more tempting distraction.
“It's maddening,” said one such worker at Nissan's stand.
The absence of some pizzazz, as well as top marques, was also noted by patrons.
“It looks like there are a few less cars this year,” one annual attendee said of this year's exhibitors.
“I can't help but think it's easier to stay at home than to brave the snow and come here.”
UAE v Gibraltar
What: International friendly
When: 7pm kick off
Where: Rugby Park, Dubai Sports City
Admission: Free
Online: The match will be broadcast live on Dubai Exiles’ Facebook page
UAE squad: Lucas Waddington (Dubai Exiles), Gio Fourie (Exiles), Craig Nutt (Abu Dhabi Harlequins), Phil Brady (Harlequins), Daniel Perry (Dubai Hurricanes), EsekaiaDranibota (Harlequins), Matt Mills (Exiles), JaenBotes (Exiles), KristianStinson (Exiles), Murray Reason (Abu Dhabi Saracens), Dave Knight (Hurricanes), Ross Samson (Jebel Ali Dragons), DuRandt Gerber (Exiles), Saki Naisau (Dragons), Andrew Powell (Hurricanes), EmosiVacanau (Harlequins), NikoVolavola (Dragons), Matt Richards (Dragons), Luke Stevenson (Harlequins), Josh Ives (Dubai Sports City Eagles), Sean Stevens (Saracens), ThinusSteyn (Exiles)
Plan to boost public schools
A major shake-up of government-run schools was rolled out across the country in 2017. Known as the Emirati School Model, it placed more emphasis on maths and science while also adding practical skills to the curriculum.
It was accompanied by the promise of a Dh5 billion investment, over six years, to pay for state-of-the-art infrastructure improvements.
Recent developments have also included the introduction of moral education - which public and private schools both must teach - along with reform of the exams system and tougher teacher licensing requirements.
MATCH INFO
Europa League final
Marseille 0
Atletico Madrid 3
Greizmann (21', 49'), Gabi (89')
Under the UK government’s proposals, migrants will have to spend 10 years in the UK before being able to apply for citizenship.
Skilled worker visas will require a university degree, and there will be tighter restrictions on recruitment for jobs with skills shortages.
But what are described as "high-contributing" individuals such as doctors and nurses could be fast-tracked through the system.
Language requirements will be increased for all immigration routes to ensure a higher level of English.
Rules will also be laid out for adult dependants, meaning they will have to demonstrate a basic understanding of the language.
The plans also call for stricter tests for colleges and universities offering places to foreign students and a reduction in the time graduates can remain in the UK after their studies from two years to 18 months.
The Hong Kong Monetary Authority defines it as a bank that delivers services through the internet or other electronic channels instead of physical branches. That means not only facilitating payments but accepting deposits and making loans, just like traditional ones. Other terms used interchangeably include digital or digital-only banks or neobanks. By contrast, so-called digital wallets or e-wallets such as Apple Pay, PayPal or Google Pay usually serve as intermediaries between a consumer’s traditional account or credit card and a merchant, usually via a smartphone or computer.
What’s the draw in Asia?
Hundreds of millions of people under-served by traditional institutions, for one thing. In China, India and elsewhere, digital wallets such as Alipay, WeChat Pay and Paytm have already become ubiquitous, offering millions of people an easy way to store and spend their money via mobile phone. Indonesia, Vietnam and the Philippines are also among the world’s biggest under-banked countries; together they have almost half a billion people.
Is Hong Kong short of banks?
No, but the city is among the most cash-reliant major economies, leaving room for newcomers to disrupt the entrenched industry. Ant Financial, an Alibaba Group Holding affiliate that runs Alipay and MYBank, and Tencent Holdings, the company behind WeBank and WeChat Pay, are among the owners of the eight ventures licensed to create virtual banks in Hong Kong, with operations expected to start as early as the end of the year.
