utility in the short term and the competition of a private market for the long term. South Africa commercialized the formerly public utility Eskom, but worked with them to continue grid expansion. The South African government helps fund new connections and subsidizes the first 100kWh per month for poor households, up from a previous 50kWh per month. By 2005 South Africa's electrification rate had increased to about 70% (from 30% in 1990). Cons Privatization can lead to price increases if the market is not otherwise profitable. An unregulated or lightly regulated market could tend towards proven profitable customers too, ignoring riskier opportunities to expand service to rural or poor customers. Extending the electrical grid becomes difficult because of the high upfront investments required to serve a low population density. According to the Forum of Energy Ministers of Africa, most rural customers can't even afford the install costs of the most basic single phase circuit with an electrical socket. Energy subsidies are one possible solution, but they can disproportionately effect demographics who already have access to electricity, missing the most poor. Program management reform Most development initiatives work at the individual project level, leading to fragmentation and inconsistency between projects that discourage long term investors. Institutional reform is vital to improving the operating efficiency of the electrical sector as a whole. The current hybrid public/private model lacks a clear leading organization with one clear vision of the system's future. Attempts to negotiate management contracts over utility hardware have generally failed, leaving the public utility still burdened with day-to-day hardware support as well as growth, planning, and development. Of 17 high-profile African energy management contracts, four were cancelled before they even reached full term, five were not renewed after only one cycle, and five more were dropped in later years. Only three remain in place today. Smart utility management must meet increased investment in the middle to smartly allocate resources and develop a sustainable grid model. Of the current utilities, "On average, Africa's state-owned power utilities embody only 40% of good governance practices for such enterprise". Nevertheless, federal support for energy is gaining momentum, especially in Southern Africa. South Africa's government has established a Joint Implementation Committee to progress the biodiesel industry. This committee encompasses a variety of sub-committees, like “South Renewable Energy Technologies for Poverty Alleviation South Africa: Solar Water Heaters and Biodiesel,” and the “African Petroleum Industry Association. Plans for