THANDEKILE MADIKANE | Why SA’s energy future will be built at the last mile

Walk into a barbershop in Soweto, a spaza shop in Thembisa, or a tailoring business in Khayelitsha and the reality of SA’s energy challenge comes into sharp focus.

What emerges is not simply a question of electricity supply but of how energy shapes daily economic activity.

A barber pauses mid-service because the clippers have gone silent, a shop owner loses sales as drinks warm in an unpowered fridge, and a tailor falls behind on orders with no way to run a sewing machine.

At home, similar trade-offs play out more quietly but no less significantly as families decide how to cook, light their homes or preserve food depending on what energy source is available at that moment.

In these settings, energy is not an abstract policy issue. It is a direct determinant of income, safety and productivity.

SA’s electricity system has been under sustained strain for more than a decade, with supply repeatedly falling short of demand and triggering prolonged periods of load-shedding.

In 2025, SA recorded nearly 92,000 unplanned outages averaging 12 hours each. Even when conditions improve temporarily, the underlying instability continues to shape behaviour, particularly for households and small businesses that have never experienced consistent access to reliable power.

To cope, many have turned to alternatives such as paraffin and petrol generators, but these solutions come with significant trade-offs. Paraffin, used by more than 500,000 households, is linked to thousands of shack fires each year and about 2,000 deaths annually due to burns and related injuries.

Generators, while more dependable, introduce a different kind of pressure. Running a small generator can cost between R150 and R300 a day, an expense that quickly erodes already thin margins.

For small, medium and micro enterprises, this pressure is particularly acute. These businesses contribute roughly a third of SA’s GDP and account for more than half of employment, yet they are also the most exposed to energy instability.

During periods of load-shedding, some small businesses report earning as little as 30%-40% of their usual daily revenue as operating hours shrink and customers turn elsewhere.

Households face the same instability from a different angle. Energy decisions are shaped less by preference and more by necessity, often requiring a balance between cost, availability and safety.

The same system that forces a business to close early can also push a household toward unsafe or inefficient energy sources.

What is becoming clear is that traditional coping mechanisms are no longer sufficient. As fuel costs rise and outages persist, households and small businesses are beginning to shift towards alternatives that offer greater flexibility and control. This is less about convenience and more about survival within an environment where energy cannot be taken for granted.

At the heart of this shift is a simple but important realisation: the challenge is not only about how much energy is generated but also about how it is accessed and used at the point of need.

SA’s electrification rate is relatively high on paper, yet reliability remains inconsistent, particularly in lower-income and underserved areas. Access does not always translate into usability.

Most small businesses do not require uninterrupted power throughout the day. They need reliable energy during trading hours, when customers are present and transactions are taking place. Households are not necessarily seeking complex systems, but solutions that are safe, affordable and available when required.

This is where the concept of “last mile energy” becomes critical. It shifts the focus from large-scale infrastructure to the practical realities of how energy reaches and serves end users.

The true measure of an energy system is not only how much it produces but also how effectively it works in the daily lives of the people who depend on it.

Solutions that rely on high upfront costs or assume stable income patterns often fail in this context. By contrast, models that prioritise accessibility, flexibility and ease of use are beginning to gain traction.

The impact is practical and immediate. A barber can continue working through an outage without worrying about interruptions or unexpected operating costs.

A vendor can extend trading hours into the night with reliable lighting. A household can reduce reliance on paraffin, lowering cost and safety risks.

Individually, these changes may appear incremental, but collectively they point to a broader transformation in how energy enables economic participation.

When power is reliable at the point of use, businesses operate more consistently, serve more customers and manage costs with greater predictability. Households benefit from safer and more stable energy options that improve the quality of life.

SA’s energy future will not be defined solely by large-scale infrastructure or national grid improvements. While these remain essential, they address only part of the challenge.

The more immediate question is how energy can be made to work effectively at the last mile, where its impact is felt most directly and most frequently.

This requires a shift in perspective. Beyond megawatts and generation targets, there must be a greater focus on accessibility, affordability and usability at the ground level.

When energy works at the last mile, the effects are immediate and compounding: businesses remain open, households become safer, and economic participation expands in ways that are inclusive and sustainable.