South Africa, grappling with its worst-ever energy crisis, is set to receive a $1 billion loan from the World Bank. The ongoing crisis, marked by scheduled rolling blackouts affecting 62 million citizens, particularly in urban areas such as Cape Town, has been attributed to the state-run utility Eskom. Eskom, responsible for supplying 80% of the nation's power through coal stations, has been plagued by corruption, mismanagement, and frequent breakdowns.
In an attempt to address the power supply issues, President Cyril Ramaphosa hinted at the possible delay in decommissioning some coal-fired plants. However, this move may hinder South Africa's climate change targets. The country, despite being Africa’s most industrialized economy and the world's 16th largest greenhouse gas emitter, contributes minimally to the global climate crisis.
To pivot towards sustainable energy sources, the South African government estimates a requirement of around $80 billion over the next five years. This comes at a time when the nation is heavily reliant on environmentally harmful coal-fired stations for its power generation. The World Bank's loan signifies a crucial step towards alleviating this severe energy crisis and transitioning towards cleaner energy alternatives.
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