South Africa’s energy reforms set stage for foreign investment at World Economic Forum

WEF convenes global leaders to address key global and regional challenges. These include responding to geopolitical shocks, stimulating growth to improve living standards, and stewarding a just and inclusive energy transition. Picture: AFP

WEF convenes global leaders to address key global and regional challenges. These include responding to geopolitical shocks, stimulating growth to improve living standards, and stewarding a just and inclusive energy transition. Picture: AFP

Published Jan 20, 2025

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TeamSA is hopeful that it will manage to attract foreign direct investment at the 2025 World Economic Forum (WEF) in Davos, Switzerland, on the back of stabilising the energy supply and structural reforms.

The Minister of Electricity and Energy, Kgosientsho Ramokgopa, joined President

Cyril Ramaphosa who is leading the South African delegation at the 55th WEF today to share significant strides South Africa has achieved in energy stability, regulatory reforms and future energy plans that will enable inclusive economic growth.

Key among the highlights that South Africa is showcasing are energy reforms and market transformation, elevating private sector participation, advancing renewable energy investments, and global leadership in energy transition.

Unlike in previous WEF meetings where South Africa would discuss the energy crisis at length, the country has successfully eliminated load shedding since March 2024 due to energy reforms.

The Ministry of Electricity and Energy said the Electricity Regulation Amendment Bill, signed into law in August 2024, has modernized the electricity market, encouraging private sector participation and competition.

It said the government is now focused on increasing generation capacity from 48GW to 78GW by 2035, with significant investments in renewable energy, natural gas, and nuclear power.

The Ministry said the collaboration between the government through Eskom and other State-Owned Companies and private investors was crucial in driving this transition.

South Africa has procured over 13 422MW of renewable energy since 2020, with investments exceeding $16 billion, positioning the country as a competitive player in the global renewable energy landscape.

As South Africa prepares to assume the G20 Presidency in 2025, the focus will be on addressing global energy challenges, ensuring energy security and affordability, and promoting equitable energy transitions across Africa.

The Ministry said the South African Energy Family delegation at WEF aimed to engage with international partners, to showcase the country’s energy market reforms, and explore investment opportunities that will drive South Africa’s energy agenda forward.

WEF convenes global leaders to address key global and regional challenges. These include responding to geopolitical shocks, stimulating growth to improve living standards, and stewarding a just and inclusive energy transition.

The Energy Family for TeamSA comprises the Group CEO of Eskom, Dan Marokane, and the Group CEO of the South African Nuclear Energy Corporation, Loyiso Tyabashe to support in telling the South African energy story.

“This year, South Africa is poised to showcase progress in energy reform and its commitment to a sustainable energy future and share how it will use the G20 Presidency to further regional and global sustainability goals,” it said.

“As the nation embarks on an ambitious energy transition, the focus remains on achieving energy sovereignty, fostering sustainability, and promoting inclusive economic growth.

“The current positive sentiment South Africa enjoys based on stabilising the energy situation augers well for its plans to attract investments into the country.”

Ramaphosa will deliver a special address to the WEF, where he will present the economic priorities of South Africa’s Government of National Unity and advance the country’s G20 Presidency.

Ramaphosa said the WEF Annual Meeting was a valuable opportunity for South Africa to demonstrate its potential as a hub for global investments and its ongoing structural reforms.

He said South Africa was committed to leveraging the G20 platform to highlight the significance of fostering economic growth while ensuring social inclusion and environmental stewardship.

Ramaphosa said that during the G20 Presidency, South Africa will endeavour to create equitable opportunities for all by addressing systemic disparities and promoting unity and mutual support to address shared global challenges collaboratively.

“At the centre of our G20 agenda is the promotion of cooperation among G20 and other countries on the most pressing issues facing the world. This cooperation should not only take place at a government-to-government level. It should involve all social formations,” he said.

“One of the messages we will be taking to Davos is our ongoing commitment to partnerships in pursuit of inclusive growth and sustainable development. We will present our experiences of cooperation across society in South Africa and encourage greater emphasis on partnerships in international relations.

“In particular, we will make a call for global companies to partner with governments, entrepreneurs and stakeholders in emerging markets to pursue sustainable and inclusive growth.”

BUSINESS REPORT