South Africa’s Energy Council will transition its focus away from load shedding to address more complex issues within the energy sector. This move, outlined in a meeting on 13 August with President Cyril Ramaphosa, cabinet members, and senior business leaders, marks a new strategic direction for the Government of National Unity (GNU).
President Ramaphosa laid out the GNU’s key priorities for the seventh administration, which will include an enhanced partnership with the business sector to tackle critical issues in electricity, transport and logistics, and crime and corruption. The government aims to build on recent progress and accelerate implementation over the next 12 to 18 months.
“The GNU is committed to advancing the reform agenda initiated by the previous administration to restore investor confidence, promote economic growth, and create jobs,” Ramaphosa stated.
Adrian Gore, co-convenor of the business delegation, expressed optimism about the potential for achieving 3-5% GDP growth by 2030 through this renewed partnership. He highlighted the successful reduction in load shedding as a notable achievement, with South Africa experiencing 140 days without load shedding this year, a significant increase in grid capacity, and over 6,000MW of new energy generation added.
The president credited this progress to substantial investments in technical support from 57 companies, which have collectively invested over 9,000 hours at five power stations. The energy availability factor has improved to over 60%, nearing the 70% mark.
Energy Minister Kgosientsho Ramokgopa acknowledged that while load shedding may soon be declared a thing of the past, the sector still faces pressing challenges, including rising electricity costs, unsustainable municipal utilities, complex market reforms, a constrained grid, and stalled investment in new generation.
As a result, the National Energy Crisis Committee (Necom) will shift its focus to these pressing issues. Significant investment will be necessary for energy sector reform over the next 5 to 10 years.
In addition to energy, the partnership with business is addressing other critical areas. Progress in transport and logistics, as well as in tackling crime and corruption, has been noted but not as rapidly or extensively as hoped.
Business has provided technical support to Transnet Freight Rail and Transnet Port Terminals, but Transnet is still in need of substantial interventions to improve performance. The rapid implementation of structural reforms and adherence to the Freight Logistics Roadmap are seen as crucial for engaging private sector investment.
In the realm of crime and corruption, the immediate goal is to facilitate South Africa’s removal from the Financial Action Task Force (FATF) grey list, thereby enhancing international confidence. Efforts are focused on improving law enforcement’s ability to prosecute complex cases and recover assets, supported by specialised skills from the business sector. The promulgation of the NPA Amendment Act is considered vital for bolstering the Independent Directorate Against Corruption’s (IDAC) effectiveness.
Overall, the shift in focus represents a strategic realignment aimed at addressing broader systemic challenges within South Africa’s economic and infrastructural landscape.
