South Africa must secure over R440 billion in the next decade to expand its transmission infrastructure, according to Minister of Electricity and Energy, Dr Kgosientsho Ramokgopa.
Speaking at the 17th Africa Energy Indaba in Cape Town, the Minister highlighted the urgent need to modernise and extend the national grid by 14,000 kilometres to meet growing energy demands.
“This requires substantial investment. The national budget alone cannot sustain it, and Eskom’s balance sheet is insufficient. We must develop tailored financing solutions to make this a reality,” he stated.
Financing Africa’s Energy Future
Dr Ramokgopa called on financial institutions to lower borrowing costs to support Africa’s development, climate resilience, and clean energy transition. He noted that electricity trade across the continent is expected to surge by 300% by 2040, coinciding with a population increase from 1.5 billion to two billion people.
“Africa will need upwards of R2.6 trillion in energy sector investments by 2040. Even if we combine all the financial resources on the continent, it will not be enough. This is why innovative funding instruments are critical,” he said.
Advancing a Unified Energy Market
The Minister endorsed the African Union’s Agenda 2063 vision for a single electricity market, emphasising that regional integration and interconnectivity are essential to achieving universal energy access.
As South Africa leads the G20 Presidency, Ramokgopa outlined the energy priorities: ensuring secure, reliable, and affordable access to power; advancing fair and inclusive energy transitions; and enhancing African energy connectivity. These themes align with the African Union’s development agenda.
Just Transition at the Core
South Africa is committed to promoting a just, affordable, and inclusive energy transition under its G20 leadership.
“There is no one-size-fits-all approach to energy transition. It must consider each country’s unique circumstances, resources, and economic capacity. We hope to soon release the Integrated Resource Plan (IRP), which will outline South Africa’s roadmap for transition,” he explained.
Despite contributing less than 2.5% of global CO2 emissions, Africa faces the dual challenge of expanding energy access while maintaining environmental responsibility. The Minister stressed that energy security remains paramount, with gas continuing to play a role in the continent’s energy mix.
Shaping Global Policy
As the first African country to hold the G20 Presidency, South Africa is steering discussions under the theme: “Solidarity, Equality, Sustainability.” The year-long deliberations will culminate in the G20 Leaders’ Summit in November 2025.
With G20 members representing around 85% of global GDP and 75% of international trade, the grouping is instrumental in shaping global economic policy and fostering economic stability.
Through bold investment and regional collaboration, South Africa and the continent are poised to redefine the future of energy.