Why are developing economies pursuing small modular reactors?

Why small modular reactors?

Traditional large-scale nuclear plants require massive upfront capital, decade-long construction periods, and proximity to major grid infrastructure. For developing economies like South Africa, these barriers are often insurmountable. Countries in Africa are exceptionally large, a fact that is little known and often overlooked by so-called overseas experts.

SMRs offer a different pathway to electricity. Modern designs-such as helium-cooled, graphite-moderated reactors using advanced fuel configurations-exemplify the advantages :

• Scalability:Units can be deployed incrementally, matching investment capacity and demand growth. A typical rollout could envision four domestic units annually within years of initial deployment, rising to eight exported units within two decades.
• Flexibility:Smaller SMR units can be located closer to demand centers, reducing transmission losses and infrastructure costs. They're ideal for industrial process heat applications, such as powering chemical facilities or electricity generation in regions far from existing power stations.
• Safety: Passive safety features and simpler designs reduce operational risks. Modern SMR designs incorporate inherent safety characteristics that make them particularly suitable for nations building nuclear expertise.
• Industrial Development:Unlike imported renewable components, SMR programs build domestic manufacturing capacity. A comprehensive SMR initiative creates an entire nuclear industry value chain: development, engineering, design, and manufacturing.

The megaproject precedent

History validates this approach. South Africa's Richards Bay development, Sasol's coal-to-liquids technology, Petro SA's gas-to-liquids technology, and automotive industry growth each transformed regional economies. SMR deployment compares favorably with projected employment to be 340,000 jobs and dependent population supporting 1.4 million people, while offering superior balance of payments outcomes.

These megaprojects succeeded because they addressed real needs with practical technology, creating sustainable industries rather than dependency on imported solutions.

Building a nuclear industry

SMRs represent more than power generation, they're platforms for industrial development. A national SMR program involves the construction and operation of units for domestic markets and export, alongside the development of a local nuclear industry with significant local content.

The construction phase includes substantial localization to ensure regular long-term supply by original equipment manufacturers. This creates an entire value chain encompassing development, engineering, design, and manufacturing, significantly enlarging the manufacturing base of the economy.

The operational phase generates ongoing expenditures in wages, fuel acquisition (including nuclear fuel production), maintenance, and subcontracted services-creating permanent economic activity rather than boom-and-bust cycles associated with construction-only projects.

For countries with uranium reserves , SMRs offer additional opportunities. The technology and skills developed can extend to uranium enrichment industries, producing nuclear fuel domestically and for export, adding considerable value to natural resources.

The path forward

For the 565 million Sub-Saharan Africans without electricity, and billions more worldwide trapped in electricity poverty, the choice is clear. They cannot afford to gamble for their future on renewable infrastructure of wind turbines and solar panels, which are intermittent and undermine industrial development. The full lifecycle economic cost of renewable electricity projects does not support the needs of growing economies and keeps these countries trapped as consumer nations in perpetual debt cycles.

SMRs offer developing economies what they need most: reliable baseload power that builds domestic capability, creates quality employment, and establishes technology platforms for future growth. The alternative-continued electricity poverty or dependency on imported sources of energy for transportation and electrification-condemns billions to economic stagnation.

The question isn't whether developing nations should pursue nuclear technology. It's whether wealthier developed nations will support or obstruct that pragmatic choice. Electricity policy must serve people, not ideology. For the billions of people living on less than $10 daily, that's not just good policy, it's a moral imperative. The path to prosperity runs through reliable electricity. Small modular reactors can light that way.