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South Africa requires over R440 billion in the next decade to expand and modernize its transmission infrastructure, according to Minister of Electricity and Energy, Dr. Kgosientsho Ramokgopa. Speaking at the Africa Energy Indaba in Cape Town, he emphasized the urgent need to finance the country’s ambitious 14,000-kilometer grid expansion plan. “The fiscus won’t be able to carry that, and Eskom’s balance sheet is insufficient. It is crucial to develop bespoke financing instruments to enable this investment,” Ramokgopa stated. He urged financial institutions to lower borrowing costs for energy and climate resilience projects, as Africa anticipates a 300% increase in electricity trade volumes by 2040. Africa’s Energy Investment Needs Ramokgopa highlighted that Africa will require more than R2.6 trillion in energy sector investments by 2040, stressing that regional integration and interconnectivity are vital to achieving universal electricity access under Agenda 2063, the African Union’s long-term development plan. “We support the creation of a single electricity market for the continent. Significant investment in interconnectivity is necessary for achieving universal access by 2063,” he said. G20 Presidency and Energy Priorities With South Africa assuming the G20 Presidency, Ramokgopa outlined key energy priorities, including: Energy security and reliable access Just, affordable, and inclusive energy transitions Enhancing African energy connectivity Currently, 43% of Africa’s population lacks electricity access, an issue he described as urgent. “Before discussing transitions, we must first ensure access, irrespective of the energy source,” he added. South Africa’s Just Energy Transition As part of its G20 leadership, South Africa will advocate for a just energy transition tailored to individual country circumstances. The government is set to release the Integrated Resource Plan (IRP) soon, detailing the nation’s energy transition strategy. “Each country’s transition must be affordable and achievable at its own pace. We are engaging with Nedlac on this,” Ramokgopa stated. G20 Leadership and Global Influence South Africa’s G20 Presidency, which began on December 1, 2024, is the first African presidency and the fourth consecutive emerging market leadership. Themed “Solidarity, Equality, Sustainability,” it will culminate in the G20 Leaders’ Summit in November 2025. The G20, comprising 19 countries and two regional bodies (the EU and AU), represents 85% of global GDP and 75% of international trade, playing a crucial role in shaping global economic policies. |
