The political economy of energy provisioning and profiteering in South Africa: the case of Somkhele and Emalahleni local municipality, an energy hub of South Africa

This chapter presents a critical political economy perspective and the analysis of South Africa’s coal-energy nexus that interrogate how the notion of the tragedy of the commons, accumulation by dispossession, and systemic infrastructure violence manifest within the illicit practice of substituting high-quality coal with low-grade alternatives supplied to Eskom (the state owned national electricity provider in South Africa). It posits that, far from generating sustainable wealth, this practice operates as a mechanism that exacerbates economic distortions, entrenches inequality, and imposes severe (and often irreversible), socio-ecological costs on impoverished communities proximate to mining operations. Two case studies were used: Emalahleni Local Municipality (ELM), which is South Africa’s primary energy production hub; and Somkhele in KwaZulu-Natal. A mixed-methods approach was employed, i.e. a comprehensive critical literature review and field observations, to dissect the multi-scalar ramifications of purposeful quality degradation within the Eskom supply chain. The investigation was motivated by the serious concern that South Africa is at a critical point in terms of energy governance, as entrenched rent-seeking behaviour and institutional weaknesses threaten to lock in detrimental pathways that favour elite capture of electricity generation through low quality coal to maximise profit, while externalising costs onto marginalised and impoverished populations.