- South Africa’s Finance Minister, Enoch Godongwana, delivered South Africa’s 2025 budget speech yesterday.
- Relevant to the energy sector, Godongwana, announced that new regulations for public-private partnerships (PPPs) have been finalised and will take effect on 1 June 2025.
The regulations reduce the procedural complexity of undertaking PPPs, create capacity to support and manage PPPs, create clear rules for managing unsolicited bids, and strengthen fiscal risk governance.
The regulations also make provision for national departments to establish sector-specific PPP units. These units will drive private sector participation (PSP), creating opportunities to optimise the balance sheets of financially distressed state-owned companies.
“In the energy sector, the Independent Transmission Programme will be launched later this year. A request for information for a multi-line transmission package will also be issued by the Independent Power Producers Office in July this year, followed by a request for proposals in November. These will enable the private sector to play a key role in the expansion of the transmission network,” said Godongwana.
Treasury and the World Bank working on credit-guarantee framework
In her visit to South Africa in July last year, Satu Kahkonen, World Bank Country Director for South Africa, confirmed the World Bank’s commitment to South Africa’s energy transition.
The cost of this transition will be at least $500 billion by 2050, of which $140 billion will be needed before 2030. “Financing from the international community and mobilisation of private capital will be vital,” she added.
“The World Bank is ready to assist South Africa in this transition. We are proud to already support the energy transition. This includes the restructuring of the power sector, decommissioning of the first coal-fired power plant, private investment in renewable energy and storage, and just aspects of the transition. But we are ready to do much more,” concluded Kahkonen.
Author: Bryan Groenendaal
