CHAMWE KAIRA
South Africa, where Namibia imports most of its electricity, is seeking deeper Chinese investment and long-term industrial partnerships to support a planned transformation of its energy sector that is expected to require more than N$2.6 trillion in investment over the coming decade and beyond.
In a message outlining the country’s energy investment strategy, South African minister of electricity and energy Kgosientsho Ramokgopa said the government wants to move beyond a traditional buyer-supplier relationship with China and instead encourage joint investment, local manufacturing, technology transfer and skills development.
The investment programme is anchored in South Africa’s Integrated Resource Plan (IRP) 2025, which envisages the addition of about 105 gigawatts (GW) of new electricity generation capacity by 2039.
The programme is expected to attract more than N$2.2 trillion in investment.
In addition, South Africa plans to build approximately 14 500 kilometres of new electricity transmission infrastructure over the next decade, requiring an estimated N$440 billion in investment to strengthen the national grid and connect new power generation projects.
Ramokgopa said the energy transition represents more than an expansion of electricity infrastructure, describing it as a structural transformation aimed at creating a secure, affordable and competitive energy system capable of supporting long-term industrial growth.
He said the government wants Chinese companies to invest in manufacturing and industrial development in South Africa rather than simply export equipment to the country.
“Our proposition to China is not simply: come and sell to South Africa. It is: come and build with South Africa,” the minister said.
The government believes South Africa’s 13 Special Economic Zones, industrial development platforms, ports and logistics corridors provide opportunities for Chinese manufacturers and investors.
It also pointed to access to the African Continental Free Trade Area (AfCFTA), which offers a market of more than 1.4 billion people across the continent.
According to Ramokgopa, the investment programme is expected to stimulate demand for engineering services, transmission equipment, construction materials and advanced energy technologies while supporting new industries linked to battery manufacturing, green hydrogen, nuclear energy and digital energy systems.
He said the country aims to use the energy transition to strengthen local supply chains, expand manufacturing, beneficiate mineral resources, develop technical skills and create employment.
Ramokgopa said South Africa’s industrial capabilities, mineral resources, established financial markets and strategic position in Africa complement China’s strengths in infrastructure delivery, manufacturing and technology development, creating an opportunity for broader cooperation that could also contribute to Africa’s wider energy and industrial development.
The minister said South Africa is committed to ensuring that energy security, affordability, sustainability and industrial competitiveness advance together as the country undertakes one of the largest infrastructure investment programmes in its history.
