South Africa needs 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 urgency of financing the country’s ambitious 14,000-kilometer grid expansion plan.
“The fiscus alone cannot support this, and Eskom’s balance sheet is insufficient. We must develop customized financing solutions to attract 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 Growing Energy Investment Needs
Ramokgopa highlighted that Africa requires over R2.6 trillion in energy investments by 2040. He stressed that regional integration and interconnectivity are crucial 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 Africa. Expanding interconnectivity is essential for ensuring universal access by 2063,” he stated.
G20 Presidency and Energy Priorities
As South Africa assumes the G20 Presidency, Ramokgopa outlined key energy priorities:
- 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 energy access, regardless of the source,” he emphasized.
South Africa’s Just Energy Transition
Under its G20 leadership, South Africa will advocate for a just energy transition that considers individual country needs. The government is preparing to release the Integrated Resource Plan (IRP), which will outline the nation’s energy transition strategy.
“Each country must transition at its own pace, ensuring affordability and feasibility. We are actively engaging with Nedlac on this,” Ramokgopa noted.
G20 Leadership and Global Influence
South Africa’s G20 Presidency, which began on December 1, 2024, marks a milestone as 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 (EU & AU), represents 85% of global GDP and 75% of international trade, positioning it as a key player in global economic and energy policy discussions.
With massive energy infrastructure investments on the horizon, South Africa is working to secure financing, promote interconnectivity, and drive an energy transition that supports economic growth and energy access across the continent.
