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    Home » Why South Africa’s Energy Future Will Be Won in Spaza Shops
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    Why South Africa’s Energy Future Will Be Won in Spaza Shops

    June 8, 20265 Mins Read
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    Walk into a barbershop in Soweto, a spaza shop in Tembisa, or a tailoring business in Khayelitsha, and the reality of South Africa’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.

    South Africa’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, South Africa 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, still used by over 500,000 households in South Africa, is linked to thousands of shack fires each year and roughly 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 per 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 South Africa’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 to 40 percent 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, both households and small businesses are beginning to shift toward 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 about how it is accessed and used at the point of need. South Africa’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 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. Companies like bPOWERd are operating within this space by offering portable, rechargeable energy solutions that allow users to access power on demand, without the ongoing burden of fuel costs or significant capital investment.

    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 evening with reliable lighting. A household can reduce reliance on paraffin, lowering both 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.

    South Africa’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. Because 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 both inclusive and sustainable.

    Written by Thandekile Madikane, Head of Country Operations, South Africa at bPOWERd

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