Cape Town, March 6 – South Africa requires more than R440 billion over the next decade to expand and modernise its electricity transmission infrastructure, Minister of Electricity and Energy Dr Kgosientsho Ramokgopa said on Tuesday.
Speaking at the Africa Energy Indaba in Cape Town, Ramokgopa outlined the country’s ambitious plans to develop 14,000 kilometres of new transmission lines within the next ten years to meet growing electricity demand. However, he acknowledged that government funding alone would not be sufficient to finance the expansion.
“This is going to require an enormous amount of investment. The fiscus won’t be able to carry that. The Eskom balance sheet is not sufficient, so it is important to find bespoke financing instruments to make this possible,” Ramokgopa stated.
The Need for Alternative Financing
With South Africa’s economy already under strain, Ramokgopa called on financial institutions and investors to help reduce borrowing costs for infrastructure development, climate resilience, and clean energy transition projects.
The minister highlighted Africa’s growing energy needs, predicting that electricity trade volumes will increase by 300% by 2040 as the continent’s population expands from 1.5 billion to 2 billion people.
According to studies, Africa will require R2.6 trillion in energy sector investments by 2040 to meet rising demand. However, Ramokgopa warned that even if all African nations combined their financial resources, they would still fall short of this funding target, stressing the importance of innovative financing mechanisms.
A Unified African Electricity Market
Ramokgopa also endorsed a single electricity market for Africa, aligning with the African Union’s Agenda 2063, which aims for universal electricity access by 2063 through regional energy integration.
“For us to achieve universal access by 2063, there has to be significant investment in interconnectivity,” he said.
South Africa’s Role in the G20 and Energy Priorities
As South Africa assumes the G20 Presidency, the country will prioritise energy security, affordable energy transitions, and African energy connectivity.
Ramokgopa noted that 43% of Africa’s population still lacks electricity, which remains a major challenge. He emphasised that before discussions on transitioning to clean energy can take place, access to electricity must first be ensured.
While South Africa remains committed to reducing greenhouse gas emissions, he acknowledged that gas will continue to play a role in Africa’s energy mix in the foreseeable future.
The Just Energy Transition and South Africa’s Future Plans
Under the G20 Presidency, South Africa will focus on just, affordable, and inclusive energy transitions, recognising that each country has unique circumstances affecting the pace and scale of its transition.
The government plans to release the updated Integrated Resource Plan (IRP) soon, outlining South Africa’s long-term energy strategy.
South Africa’s G20 Leadership
South Africa’s G20 Presidency began on December 1, 2024, making it the first African nation to lead the G20. The presidency will culminate in the G20 Leaders’ Summit in November 2025, under the theme “Solidarity, Equality, Sustainability.”
The G20 represents 85% of global GDP and 75% of international trade, playing a crucial role in shaping global economic and energy policies.
As South Africa takes on this leadership role, Ramokgopa reaffirmed the country’s commitment to balancing energy access, economic growth, and environmental responsibility in shaping Africa’s energy future.