- The South African government will implementing changes to the composition of two departments that execute programmes that deal with energy and agriculture.
- The government plans to separate the Department of Mineral Resources and Energy into two departments, as well as establish the agriculture department as a standalone.
- This is according to National Treasury’s document on the 2024 Medium Term Budget Policy Statement (2024 MTBPS), which was released on 30 October 2024.
“The Department of Mineral Resources and Energy will be separated into two departments by April 2025. The newly established Department of Electricity and Energy will advance the development of transmission infrastructure, oversee the amended Electricity Regulation Act (2006) and manage the Integrated National Electrification Programme (INEP),” National Treasury said.
INEP is an initiative of government to provide capital subsidies to municipalities to address the electrification backlog of permanently occupied residential dwellings. The purpose of the programme is to manage the electrification planning, funding and implementation process, with the aim of addressing the electrification backlog.
Municipalities own and operate approximately half of South Africa’s electricity distribution grid and facilitate universal access to electricity.
“One hundred and sixty-five municipalities are electricity service providers. Through the Integrated National Electrification Programme grant, municipalities are responsible for addressing the electrification backlog. Municipalities therefore need to be in the driving seat when it comes to providing clean, affordable energy to communities, businesses and industry,” President Cyril Ramaphosa said at the Inaugural Just Energy Transition (JET) Municipal Conference in August last year.
Government is reviewing the integrated national electrification programme grant and will finalise related reforms over the medium term.
“Concerning the splitting of the Department of Mineral Resources and Energy and the Department of Agriculture and Land Reform, it is agreed that the foundational documents for these departments should be published with an effective date of 1 April 2025.
“If the proclamation is published by 31 October 2024, it will align with the budget process for the fiscal year 2025/26. However, an earlier publication date is preferable to provide the affected departments more time for planning,” National Treasury said.
Author: Bryan Groenendaal
