SADCC Country Studies, Part I ENERGY, ENVIRONMENT AND DEVELOPMENT IN AFRICA 3 ENERGY AND DEVELOPMENT IN SOUTHERN AFRICA SADCC COUNTRY STUDIES PART I Edited by Phi1 O'Keefe and Barry Munslow Published by THE BEIJER INSTITUTE THE SCANDINAVIAN INSTITUTE The Royal Swedish OF AFRICAN STUDIES Academy of Sciences Uppsala , Sweden Stockholm, Sweden The series "Energy, Environment and Development in Africa" is pub- lished jointly by the Beijer Institute and the Scandinavian Insti- tute of African Studies, with financial support from the Swedish International Development Authority (SIDA). This book, together with a series of companion volumes reports on a study of Energy and Development in the SADCC Countries jointly undertaken by the SADCC Energy Sector and the various member states of SADCC, in collabor- ation with the Beijer Institute. ISSN 0281-8515 ISBN 91-7106-229-7 @ The Beijer Institute and the Scandinavian Institute of African Studies 1984 Printed in Sweden by Bohuslaningens AB, Uddevalla 1984 FOREWORD This Volume contains the first part of a series of nine energy country studies, prepared by the Beijer Institute as background material for the SADCC Regional Energy Seminar in Harare, December 1982. I would like to thank the group of authors most warmly for their contributions. Their work would not have been possible without the kind cooperation of many Ministries and authorities concerned with energy in the nine SADCC countries. I am also pleased to thank Professor Phi1 O'Keefe and Dr Barry Munslow for editing this Volume and my Deputy Director, Dr Lars Kristoferson, for his involvement in the preparatory work needed throughout the SADCC Energy Project. Final l y, I gratefully acknowledge the financial support of SIDA for the field work, the Seminar and the publication of this Volume. Gordon T. Goodman September 1984 ENERGY AND DEVELOPMENT IN SOUTHERN AFRICA SADCC COUNTRY STUDIES PART I CONTENTS FOREWORD ii i LIST OF TABLES vi LIST OF FIGURES viii INTRODUCTION Phi1 O'Keefe and Barry Munslow 1. ANGOLA M.R. Bhagavan 2. BOTSWANA Ben Wisner 3. LESOTHO Alan Frolich 4. MALAWI Richard Scobey INDEX 187 - vi - TABLES Page Main Commodities Traded . Direction Of Trade . Summary Of Household Energy Consumption And Demand . Total Energy Consumption And Demand . Summary Of Consumpti on, Excl uding Households . Production And Consumption Of Petroleum . Petroleum Products In Agriculture . Petroleum Products In Industry . Petroleum Products In Transport . Agricultural Land . Wood Supply To Industry . Wood Supply POtenti a1 . Potential Energy Resources . Electricity Generation And Consumption . Other Systems . Hydroelectric Power . Production And Export Of Crude Petroleum. Share Of Oil Fields In Production . Production Export And Import Of Refined Petroleum . Al. 1 Basic Data On Angola . A1.2 Electricity Consumption By Sector . A1.3 Electricity Consumption By Manufacturing Sector . A1.4 Electricity Capacity By Plant Type . Al. 5 Price Of Refined Petroleum Products . Botswana 2.1 Botswana Economic Background . 2.2 Urban Month1y Expenditure Per Household . vii . Women In Agriculture ........ Major Industrial Users ....... End-u se Requirements ........ Final Consumption By Sector ..... Final Consumption By Fuel ...... Final Consumption .......... Primary Resource Requirement .... Natural Wood Biomass Supply ..... Coal Fields In Botswana ....... Refined Petroleum Imports ....... Comparisons Of Supply Statistics . Electricity Generation ....... Relative Rail Costs ......... Lesotho Demographic Summary Of Lesotho ... 139 Selected Economic Indicators .... 142 GDP By Source At Current And Constant Cost ............ 143 Growth Rates By Economic Activity . 144 Per Capita GDP and GNP ....... 145 Average Real Growth Rate For Per Capita GDP ............. 145 Final Consumption Of Fuel By Sector . 149 "1980" Energy Bal ance ........ 150 Rural Household Consumption ..... 154 Urban Household Consumption ..... 155 Land Capability ........... 157 Coal Consumption .......... 162 Electricity Sales .......... 164 Potenti a1 Small Hydro Electric Projects .............. 167 . viii . FIGURES .Page Natural Regions Of Angola ...... Angol an Vegetation ......... Angol an Rai nf a1 l .......... Angolan Electricity Distribution . Angolan Oil Concessions ....... Republ i c Of Botswana ........ Botswana Rainfall .......... Vegetation In Botswana ....... Coal fie1ds In Botswana ....... Coal Transport ........... Electricity Supply And Distribution . Botswana's Energy Options ...... INTRODUCTION Energy provision is vital to every development effort; without it there can be no increased industrial or agricultural production, and no improvement in the basic living conditions of the population. An awareness of the importance of studying energy as a vital part of the development process emerged under the dual impetus of the oil price rises of the early 1970s and the growing shortage being experienced of traditional fuels upon which rural producers have relied in many areas. Both concerns provide the essential themes running through this work. These two volumes furnish an in-depth analysis and overview of each of the nine countries which together comprise the Southern African Development Coordination Conference. The research was carried out under the auspices of the Bei jer Institute of the Royal Swedish Academy of Sciences at the request of the SAOCC countries in 1982. These country case studies provided the background data for the summary volume being pub1 ished in parallel entitled SADCC: Energy and Development to the Year 2000, which draws together all of the individual countrydata to produce an aggregate regional energy picture and makes projections to the year 2000. Whilst the country case studies are valuable in their own right, seeking as they do to provide a breakdown of energy use in each economy, the reader interested in the regional picture is referred to the accompanying summary volume.(l) What unifies the approach of the authors of these individual country studies is a common methodology of establishing national energy balances from a demand perspective. This emphasis on an end-use approach to energy is an important one. National energy accounts are frequently built on a highly aggregated basis. They are avail able for major sources of commerci a1 fuel S, hydrocarbons and electricity, but the orientation is towards supply issues. Since the major institutions for p1 anning, admini stration, production and distribution have been establi shed for many years and are critically focused on supply issues, this situation is not unexpected. If, however, data from these institutions is utilised to build energy accounts, two major problems emerge. First, it is impossible to assess the demand for commercial fuels by end-use and, consequently, it is impossible to design conservation initiatives. Second1 y, because major institutions on1 y deal with commerci a1 fuel S, the traditional sector which domi nates the energy economies of Africa is left unrecorded. In order to avoid the obvious problems associated with conventional supply analysis, each researcher was requested to adopt a demand approach to the problem of energy accounting. This demand approach clearly demonstrated the importance of traditional energy consumption in the overall energy balance. In particular, the important sector of rural household demand dominates the energy accounts, frequent1y dwarfing the total commercial sector. The emphasis on rural household demand serves three useful functions, name1y: 1. It allows projections of future energy consumption to be projected from a demographic base of household formation rather than plucking some arbitrary economic indicator out of context: 2. It focuses attention on the biological resources of a country which, given the importance of agriculture to the development strategy of SADCC member states, is the crucial area for development initiatives: 3. It places appropriate attention on the critical role of women in obtaining fuel, and other basic needs, in maintaining the production and reproduction activities of peasant households. As such, it is a complementary analysis that must be placed a1 ongside supply data. A fourth volume has also emerqed out of the research. (2) This was produced by a group working Gnder Professor Richard piet, and is entitled Manufacturing Industry and Economic Devel opment in the SADCC Countries. Phi1 0'Keefe and Barry Munslow REFERENCES 1. C. Simoes (Ed), SADCC: Energy and Development to the Year 2000, in Energy, Environment and Development in Africa Vo1.2. SADCC Energy Sector, in collaboration with the Beijer Inst- itute and the Scandinavian Institute of African Studies, 1984. 2. R. Peet, Manufacturing Industry and Economic Development in the SADCC Countries, in Energy, Environment and Development in Africa Vol.5. SADCC Energy Sector, in collaboration with the Beijer Institute and the Scandinavian Institute of African Studies, 1984. REFERENCES --p 1. C. Simoes (Ed), SADCC: Energy and Development to the Year 2000, in Energy, Environment and Development inmca Vo1.2. mCEnergy Sector, in collaboration with the Beijer Inst- itute and the Scandinavian Institute of African Studies, 1984. 2. R. Peet, Manufacturing Industry and Economic Development in the SADCC Countries, in Energy, Environment and Development in Africa Vo1.5. SADCC Energy Sector, in collaboration with the Beijer Institute and the Scandinavian Institute of African Studies, 1984. CHAPTER 1 ANGOLA b Y M. R. BHAGAVAN AN OUTLINE OF THE POLITICAL ECONOMY OF ANGOLA. Angola became independent