No Economy Can Operate Without Reliable Supply of Electricity – Ramaphosa

(AFRICAN EXAMINER) – President of South Africa, Cyril Ramaphosa has said that no economy can operate without a reliable supply of electricity.

Speaking on Thursday at the opening ceremony of the South African Investment Conference, the first physical convening of participants since 2019, the President noted that the ongoing reforms in the energy sector included changes to Eskom, the country’s energy supplier, and additional generation capacity mainly through wind and solar sources of energy.

He also announced that a presidential task team set up to advance the country’s just energy transition to a low-carbon transmission economy, was on track. “We invite you to be part of the South African growth story”, he said.

He further expressed the country’s optimism and determination in the face of a global pandemic, tough economic headwinds, and millions of job losses.

“We meet at a time when our country is facing huge challenges but great opportunity and promise. Our economy has been severely damaged with the loss of two million jobs. I am here to share with you what has been done and what we are doing”, he added.
President Ramaphosa also outlined measures his government has made, including social and economic relief packages, describing them as “difficult but necessary reforms” in energy, state-owned enterprises, and the fiscal and taxation sectors, to drive economic growth.

In his remarks at the event, the president of African Development Bank Group, Dr. Akinwumi Adesina Adesina announced that the Bank will support South Africa, with $2.8 billion funding package for over the next five years.

Dr. Adesina who is on a three-day official visit to South Africa, also pledged $400 million from the African Development Bank in support of the country over the next three years, particularly for Eskom, as it transitions to renewable energy.

“This financing will support public and private sector investments in priority areas of agriculture, renewable energy, transport, youth employment, health, vaccines manufacturing, among others…We know South Africa is bankable”, he said.

He said the Bank was working with international partners, especially the G7 countries, to establish a just energy transition facility that will support South Africa in raising at least $27 billion.
“We will do it without South Africa going into debt. I applaud the G7 countries, for their commitment of $8.5 billion in support of South Africa’s just energy transition”, he added.

The African Development Bank Group’s active portfolio in South Africa comprises 23 operations with a total commitment of about $4.5 billion in financing. Since 1997, the Bank has invested nearly $7 billion in the country in energy and infrastructure.

In the remaining days of his visit to South Africa, the African Development Bank chief, will meet various government and industry leaders. He will discuss with them important global and regional concerns, the African Development Bank Group’s development agenda and South Africa’s potential for increased trade and investment with the rest of Africa.

On Friday March 25, Dr. Adesina will be the keynote speaker ahead of a panel discussion organized by the African chapter of the Ambrosetti CEO Community. He will speak on the topic “Africa beyond Covid-19: a new era of opportunity”.

In Johannesburg, Dr. Adesina will also meet with G7 ambassadors accredited to South Africa. One of the key subjects of their discussion will be the Just Energy Transition agenda for South Africa, a strategy which aims to make the evolution towards a cleaner and greener energy future for the country, as fair as possible.