Cape Town: Minister of Electricity and Energy, Dr. Kgosientsho Ramokgopa, announced plans to introduce a private sector investment instrument to support the modernization of South Africa’s energy infrastructure. The announcement was made during the debate on the State of the Nation Address (SONA) held in Cape Town.
According to South African Government News Agency, the new investment instrument is set to be introduced to the country within the next five weeks and will serve as a template for use across various State-Owned Enterprises, including Transnet. The initiative aims to drive forward infrastructure investment, with the country requiring an estimated R450 billion over the next decade to expand transmission lines by approximately 14,000 km.
Ramokgopa highlighted the financial limitations faced by the government, noting, “We make the point that the state sovereign balance sheet is weak, the Eskom balance sheet has been eroded, [and] we need to design instruments that help us to ensure that there is accelerated private sector investment.” This statement underscores the necessity of private investment to alleviate the financial burden on the government.
Furthermore, the government is focusing on increasing output in the freight logistics sector. Ramokgopa outlined targets to increase freight from a baseline of 149 million tonnes per annum to 170 million tonnes by the end of the year and 250 million tonnes by 2030. Specific corridors such as the Northern Cape Saldanha, the northern corridor, and the Gauteng-Durban corridor have been identified for targeted development to enhance the transportation of iron ore, manganese, coal, chrome, automotive, and general freight.
Addressing geopolitical concerns related to the Expropriation Act, Ramokgopa reaffirmed the government’s commitment to transformative policies. He emphasized that South Africa will continue to advocate for its democratic gains and push for an irreversible transformation project. “We are on the correct path.we will not be bullied,” he asserted, illustrating the administration’s resolve in navigating international relations while pursuing domestic goals.