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South Africa’s Ambitious, and Expensive, Energy Transition (By NJ Ayuk)

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3 years ago

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carbon emissions

South Africa has taken a proactive approach to developing its renewable energy sector and attracting investors

JOHANNESBURG, South Africa, March 29, 2023/APO Group/ — 

By NJ Ayuk, Executive Chairman of the African Energy Chamber (www.EnergyChamber.org) and Author of A Just Transition: Making Energy Poverty History with an Energy Mix.

South Africa has great aspirations for its energy industry: Not only has the country committed to significant decreases in carbon emissions, but it is also intent on creating a thriving green economy that creates jobs and business opportunities throughout the country.

And with great ambitions come a great price tag, in this case, an estimated $99 billion.

No doubt about it — this is an optimistic vision. But I do not believe it’s beyond the realm of possibility.

In fact, the African Energy Chamber’s (AEC’s) new report, “The State of South African Energy,” forecasts a considerable increase in South Africa’s power generation mix between now and 2050, one that continues coal usage but adds natural gas and renewables. As a result, our report predicts, South Africa’s energy generation will see its carbon intensity drop from the current 829.38 kilograms of carbon dioxide emissions (CO2e) per megawatt hour (MWh—1,000 kilowatts of electricity generated per hour) to 250 kilograms of CO₂e/MWh in 2050.

However, South Africa, like the African continent, will need a pragmatic, multi-pronged approach to raising the necessary investment dollars to fund its energy transition. And that approach will have to include natural gas production and monetization.

A Strong Start

To its credit, South Africa has taken a proactive approach to developing its renewable energy sector and attracting investors. These efforts, in part, have been a response to the country’s decades-long struggle to deliver reliable electricity.

The nation sources more than 80% of its total energy supply from aging coal-powered plants, and Eskom, South Africa’s public utility, supplies more than 90% of the country’s electricity. While South Africa has a running average demand for roughly 27,000 megawatts (MW) of electrical power, Eskom struggles to produce an average of only 21,000 MW, a disparity that has culminated in the need for regular rolling blackouts, or load shedding, and a dire situation that has left South Africa’s population severely underserved.

Since 2007, the need for load shedding has steadily increased at an alarming rate, with 2022 taking the lead as the most load-shedding intensive year on record and December as its harshest month.

We must address these worsening conditions as the evolution of this crisis suggests it’s creeping rapidly toward a single outcome—the complete societal breakdown of Africa’s most industrialized and technologically advanced country.

Estimates for supporting this transition and expanding clean energy infrastructure over the next three decades run as high as $250 billion

To his credit, in February 2023, during his State of the Nation Address, South African President H.E. Cyril Ramaphosa declared a National State of Disaster in an effort to stem the tide of his country’s energy troubles. Along with this declaration, Ramaphosa introduced a new Ministry of Electricity, an appointment specifically tasked with decreasing the frequency and duration of load shedding and reversing Eskom’s direction.

These emergency measures come after more than a decade of positive progress toward the introduction of renewables to South Africa’s energy sector and promising investment developments seen in recent years.

Dating back to 2011, the Renewable Energy Independent Power Producer Procurement Program (REIPPPP) saw policy adoptions that led to South Africa’s successful procurement of almost 9.7 gigawatts (GW) of capacity from Independent Power Producers (IPPs) in the form of renewables like onshore wind, solar photovoltaic, solar thermal, small hydro, and biopower. The success of the REIPPPP led to a relaunch of the program in 2019 with the goal of furthering the transition to renewables while alleviating energy poverty and creating new jobs.

That was followed by South Africa’s Just Energy Transition Investment Plan (JET IP). Unveiled at COP27 in November 2022, JET IP details the amount and extent of the funding required to successfully implement a decarbonization agenda in the country. Starting with an initial $8.5 billion in financing sourced from the Just Energy Transition Partnership (JETP) with France, Germany, the UK, the U.S., and the European Union, South Africa aims to initiate its transition away from fossil fuels, acknowledging that upwards of $99 billion in funding will be required through 2027.

Estimates for supporting this transition and expanding clean energy infrastructure over the next three decades run as high as $250 billion.

South Africa has exhibited a genuine commitment to achieving the United Nations Sustainable Development Goals, the capacity for meeting the many necessary milestones on the way to those targets, and the understanding that getting there will require substantial outside investment.

Besides the demonstrated recognition that Eskom’s facilities require immediate revitalization to stabilize the country’s existing energy supply, the Ramaphosa administration exhibited its willingness for reform when it announced in August 2021 that it would raise the threshold for unlicensed electricity production from 1 MW to 100 MW. This regulatory adjustment cleared the path for the SOLA Group’s development of projects totaling approximately 4.5 GW while enhancing South Africa’s appeal to other private investors.

While South Africa has shown that it is taking the correct stance to begin combating the current energy crises with a partial focus on the eventual conversion to a low-carbon economy, it is the AEC’s position that the country must first develop and monetize its vast, untapped natural gas resources in the interim.

Reserve estimates for the Luiperd-Brulpadda project off South Africa’s southern coast indicate that 3.4 trillion cubic feet of gas and 192 million barrels of gas condensate await extraction, offering the nation just one of many opportunities to capitalize on its fossil fuel resources while attracting additional interest from the free market. The revenue raised by fast-tracking natural gas projects in the region could fund South Africa’s current efforts to restore its generation facilities and grid infrastructure while offering a consistent, economy-stabilizing income stream and a funding source for future endeavors.

By keeping its primary focus on addressing the immediate needs of its population, South Africa will remain on course toward manifesting its vision of a carbon-neutral future supported by renewables while attracting crucial investments and generating the necessary wealth to get there in time.

South Africa’s energy challenges will be front and center at African Energy Week scheduled to take place on 16-20 October in Cape Town.  To read more about South Africa’s energy ambitions, download the chamber’s full report (https://apo-opa.info/42oP0Ra).

Distributed by APO Group on behalf of African Energy Chamber.

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Aurionpro expands its multi-country transaction banking engagement with Diamond Trust Bank (DTB)

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22 hours ago

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April 30, 2026

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Aurionpro

Aurionpro’s upgraded iCashpro platform for DTB delivers a unified digital experience across payments, trade, virtual accounts, and real-time reporting, enhancing straight-through processing, visibility, and control for both the bank and its corporate customers

MUMBAI, India, April 30, 2026/APO Group/ –Aurionpro Solutions Limited (www.AurionPro.com) (BSE: 532668 | NSE: AURIONPRO), a global leader in banking technology, announced the expansion and upgrade of its transaction banking engagement with Diamond Trust Bank (DTB), to modernize and enhance the bank’s corporate transaction banking capabilities across multiple countries.

Download Document: https://apo-opa.co/4edHUaC

This multi-country transaction banking upgrade covering Kenya, Uganda, and Tanzania aligns with DTB’s intent to enhance customer experience, streamline operations, and support growing transaction volumes as it expands its regional corporate banking footprint. DTB continues to focus on building a more agile, ‘digital-first’ banking experience, particularly around payments for its corporate customers across Africa, and is now well positioned to scale these capabilities. As part of its broader transformation agenda, the bank has been steadily investing in platforms that enhance scale, reliability, and service consistency across markets.

Through this partnership, we are proud to lead the next era of transformation in transaction banking, helping DTB enhance operational agility

Aurionpro’s upgraded iCashpro platform for DTB delivers a unified digital experience across payments, trade, virtual accounts, and real-time reporting, enhancing straight-through processing, visibility, and control for both the bank and its corporate customers. By enabling DTB to standardize and scale its transaction banking operations across countries, the platform ensures consistent service levels, stronger control, and improved efficiency. It also supports enhanced user experience, advanced security, and the flexibility to introduce new features as DTB expands its regional transaction banking footprint.

Murali Natarajan (https://apo-opa.co/48trPdk), Managing Director & CEO, DTB Kenya   commented: “We are delighted to strengthen and broaden our partnership with Aurionpro Solutions as part of DTB’s ongoing digital transformation journey across multiple markets. Our focus on innovation, operational excellence, and customer-centricity continues to guide our technology investments. This upgrade strengthens our transaction banking capabilities, enabling us to deliver greater value to our customers through robust digital channels and seamlessly integrated experiences.”

Ashish Rai, Group CEO, Aurionpro Solutions, commented: “We are pleased to deepen our multi-country engagement with Diamond Trust Bank and support the next phase of its transaction banking modernization. As DTB continues to scale across markets, platform resilience and consistency become paramount. Through this partnership, we are proud to lead the next era of transformation in transaction banking, helping DTB enhance operational agility, deliver superior experiences to corporate customers, and create long-term value across geographies.”

He added, “Aurionpro’s iCashpro lays a strong digital foundation for transaction & wholesale banks across the globe to grow their corporate and SME client portfolio today, while creating a clear roadmap for next- generation capabilities in AI-driven insights, advanced automation and API-led connectivity for businesses in Kenya and across Africa.”

Distributed by APO Group on behalf of Aurionpro Solutions Ltd.

 

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Minerals Council Chief Executive Officer (CEO) Joins African Mining Week (AMW) as South Africa Improves Sectorial Investment Climate

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22 hours ago

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April 30, 2026

By

Energy Capital

Minerals Council CEO to share insights on policy, infrastructure and investment trends shaping South Africa’s mining industry

CAPE TOWN, South Africa, April 30, 2026/APO Group/ –The upcoming African Mining Week (AMW) conference will feature Mzila Mthenjane, CEO of the Minerals Council of South Africa, as a speaker. Scheduled for October 14 – 16, 2026 in Cape Town, the event will bring together global investors, policymakers and industry leaders, with Mthenjane’s participation highlighting the council’s commitment to engaging international stakeholders and promoting investment across South Africa’s mining sector.

His participation comes at a critical moment as the Minerals Council works closely with government on finalizing the Mineral Resources Development Bill 2025, a policy framework aimed at strengthening the country’s mining investment climate and the sector’s contribution to GDP. According to the council, the revised legislation will support new investment across the value chain as South Africa seeks to mobilize R2 trillion over the next five years to unlock its critical minerals potential.

The policy reforms come amid shifting production trends in the sector. In 2025, South Africa recorded declines in gold and platinum group metals output of 1.9% and 4.1%, respectively. The new regulatory framework is expected to strengthen public-private partnerships and stimulate investment, enabling South Africa to increase production and capitalize on strong global commodity prices. Increased private sector investments is crucial with South Africa seeking targeting to unlock an estimated R40 trillion in untapped iron ore potential as well as maintain its position as the world’s leading producer of chrome and manganese.

At AMW 2026, Mthenjane is expected to outline these trends, providing insights into how the council is contributing to addressing challenges disrupting the sector. Infrastructure and energy costs remain key concerns for industry players. To support the energy-intensive sector, South Africa approved a 35% reduction in electricity tariffs for major ferrochrome producers, helping stabilize an industry that has faced significant cost pressures after electricity prices surged by roughly 900% since 2008.

Logistics constraints are also a priority area for reform. South Africa’s economy is losing an estimated R1 billion per day due to inefficiencies across rail and port infrastructure. As a result, the government is considering measures supported by the Minerals Council to increase private sector participation in logistics. Planned reforms include rail modernization initiatives targeting 250 million tons of freight capacity by 2029, alongside port upgrades and private operator participation aimed at strengthening mineral exports and improving supply chain efficiency.

Beyond infrastructure and policy reforms, the Minerals Council is advocating for stronger exploration investment to support long-term industry growth.

At AMW, Mthenjane is expected to highlight these developments and outline the steps required to reinforce South Africa’s position in the global minerals supply chain. His insights will offer investors and stakeholders a timely perspective on opportunities within the country’s mining sector.

Distributed by APO Group on behalf of Energy Capital & Power.

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Seychelles Targets Energy Investment Push as Minister Jérémie Joins African Energy Week (AEW) 2026 as a Speaker

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1 day ago

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April 30, 2026

By

African Energy Chamber

Seychelles energy minister will speak at AEW 2026, positioning her to highlight reforms, renewable projects and investment opportunities as the island nation advances its transition toward a diversified energy system

CAPE TOWN, South Africa, April 29, 2026/APO Group/ –Marie-May Jérémie, Minister of Environment, Climate, Energy and Natural Resources for Seychelles will participate as a speaker at this year’s African Energy Week (AEW) 2026, taking place from October 12–16 in Cape Town. Her participation underscores the country’s growing role in shaping Africa’s small-island energy transition agenda.

Minister Jérémie’s presence at AEW 2026 comes at a critical time as Seychelles accelerates efforts to reduce its heavy reliance on imported fossil fuels. The event provides a platform to attract investment, strengthen policy alignment and showcase bankable projects, positioning the country as a viable destination for private-sector participation in island energy systems.

Seychelles is demonstrating how policy reform and innovation can unlock investment in constrained environments

In May last year, international finance institution the World Bank approved the Renewable Energy Acceleration Program, a seven-year initiative aimed at modernizing the grid and increasing renewable energy penetration to 15% by 2030. The program focuses on unlocking private capital while strengthening transmission infrastructure to accommodate variable renewable energy sources.

Project development is gaining traction in the country, particularly in innovative technologies suited to Seychelles’ land constraints. The 5.8 MW Seysun Lagoon floating solar PV project, developed by independent renewable power producer Qair, is under construction and expected online in 2026.

Alongside renewables, Seychelles continues to pursue upstream opportunities to diversify its economy. The government approved new exploration entrants in 2025 and extended exiting petroleum agreements, while securing an infrastructure partnership with China. Multilateral estimates suggest over $800 million in investment will be required over the next 25 years.

Regulatory reform is central to this transition, with Seychelles introducing an independent power producer framework to open the market to private developers. Standardized power purchase agreements, grid access reforms and strengthened public-private partnership structures are being implemented to improve transparency, reduce risk and accelerate project bankability across solar, storage and emerging wind opportunities.

“Minister Jérémie’s participation highlights the strategic importance of island nations in Africa’s broader energy transition,” says NJ Ayuk, Executive Chairman, African Energy Chamber. “Seychelles is demonstrating how policy reform and innovation can unlock investment in constrained environments. Her insights will be critical to advancing dialogue on resilient, low-carbon energy systems across the continent.”

Distributed by APO Group on behalf of African Energy Chamber.

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