The massive utility powering nearly half of Africa's electricity

Countries & Cities · Published 15 October 2026 Swipe more like this →

In short: Eskom is more than just South Africa’s primary power provider; it is a continental titan. Generating roughly 45% of the electricity used across the African continent, this state-owned giant manages a complex web of coal, nuclear, and waterpower to keep nations running.

Founded in 1923 as the Electricity Supply Commission (now Eskom), the utility was tasked with building South Africa's national electricity network. A major milestone occurred in the 1960s when new power lines connected coal-rich plants in the northeast Transvaal region to the Cape region in the south. By the 1970s, the company diversified its portfolio beyond coal, constructing hydroelectric plants at the Gariep and Vanderkloof dams on the Orange River.

The utility utilizes a sophisticated 'pumped-storage' mechanism to manage demand. During hours of low electricity use, power is used to pump water uphill into reservoirs. When demand peaks, that same water is released back down through hydroelectric plants to generate electricity. This system allows for the storage and strategic release of energy to balance the grid.

Despite its scale, Eskom faces significant structural challenges. In 2019, this entity ranked as the global leader for sulphur dioxide output within the power sector, while contributing a 42% share to South Africa's overall greenhouse gas releases. To address debt and reliability issues, a plan approved in July 2026 aims to split Eskom into three distinct entities, ending its monopoly by establishing an independent transmission system operator.

The transition toward renewable energy remains complex due to the high stakes of mining employment. While international deals have been announced to fund this shift away from coal, the country's heavy reliance on coal-fired plants—which produce most of its current electricity—creates a difficult path for balancing economic stability with environmental goals.

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