South Africa: Daniel Mminele Resigns Leaving R132 Billion Just Energy Transition Funding in Doubt

  • Mr Daniel Mminele has not renewed his contract as head of the Presidential Climate Finance Task Team which ended 31st December 2022.
  • It was expected that he would renew his contract as no deal has been struck with funding partners France, Germany, the United Kingdom and the United States, as well as the European Union.

On 2 November 2021, the South African government announced an historic partnership with the governments of France, Germany, the United Kingdom and the United States, as well as the European Union, to support a just transition to a low carbon economy and a climate resilient society in South Africa.

In line with the Political Declaration to establish this partnership, partner countries have offered to mobilise an initial $8.5 billion (R132 billion) over the next three to five years through a range of instruments, including grants and concessional finance, to support the implementation of South Africa’s revised Nationally Determined Contribution.

Appointed by the president in February 2022, Mminele, together with the Asset and Liability Division from National Treasury, was tasked to analyse the offer with a view to advising cabinet on the deal’s composition, affordability,  alignment with our regulatory environment, engage with partner countries; coordinate relevant government departments, development finance institutions, and the private sector; and oversee the development of relevant financing mechanisms and facilities to enable the flow of international climate finance to support South Africa’s just transition in the electricity, electric vehicles and green hydrogen sectors.

Related news: Lobby groups bemoan a lack of transparency on the climate finance deal 

Despite extensive lobbying, to date no deal has been reached. An announcement was expected to be made on the deal ahead of COP27 in November last year which would channel most of the funding to transmission infrastructure. Read more 

Mminele came with huge predigree

He served as Chief Executive of Absa Group Limited until 30 April 2021. Prior to joining Absa in January 2020, he was a Deputy Governor of the South African Reserve Bank (SARB) since July 2009 where he served two five-year terms. During a career spanning nearly 20 years at the South African Reserve Bank, Mr Mminele represented the SARB and South Africa in many international fora on the African continent and beyond.

His experience before the SARB included credit-risk analysis, corporate banking, and project and structured finance at private banking institutions in Germany, the United Kingdom and South Africa.

Mr Mminele was the recipient of the 2019 Life Time Achiever Award of the Association of Black Securities and Investment Professionals.

Author: Bryan Groenendaal

1 Comment

  1. It’s all Mantashe’s fault. By speaking out against procuring clean energy and making foolish and irresponsible statements, he has caused the world to back away from helping the country. If President Ramaphosa keeps Mantashe as energy minister the country must expect no help from civilised countries. The ANC would probably prefer help from Russia anyway.

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