CDC eyes SoNA commitments as a means to further developments at the Coega SEZ

The Coega Development Corporation (CDC) reports that it is encouraged by policy interventions announced by President Cyril Ramaphosa in his State of the Nation Address on February 10 as these could help to extend developments at the Coega Special Economic Zone (SEZ).

These interventions will unlock economic development for inclusive growth and sustainability, forming part of the Economic Reconstruction and Recovery Plan as a common programme to rebuild the economy.

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New gas report says LNG pathway ‘optimal’ for South Africa as it lower stranded-asset risk

A new report on ‘The role of gas in South Africa’s path to net-zero’ argues in favour of a pathway based on the importation of liquefied natural gas (LNG), which it describes as “optimal” because it minimises the risk of stranded assets and gas infrastructure lock-in post-2040. In addition, such a pathway is less complex and capital intensive than ones based on the possible exploration and development of domestic gas fields and/or the building of a pipeline to import gas from northern Mozambique.
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Coal is still raising trillions of dollars despite green shift

The dirtiest fossil fuel is still raising-trillions of dollars of funding, despite finance industry pledges to back net zero carbon targets by the middle of the century. Commercial banks have channeled more than $1.5-trillion across the coal supply chain since the start of 2019, according to a report from German researcher Urgewald and its partners. The findings come just over three months after dozens of banks joined Mark Carney’s global alliance to achieve net-zero emissions from finance.
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COP27 host says priority to help Africa during energy transition

Helping African nations during the clean energy transition should be a priority of COP27 climate talks in Egypt later this year, according to the host country’s President. The continent shouldn’t miss out on the financial benefits of its oil and gas reserves, and the November summit in Sharm El-Sheikh needs to reach balanced, fair and objective resolutions to support African countries, Egyptian President Abdel-Fattah El-Sisi said. He added that the energy sector has provided decades of wealth for rich nations.
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Old Mutual unit hires Goldman to advise on Lekela Power bid

A unit of Old Mutual hired Goldman Sachs Group to help it acquire Africa-focused renewable-energy firm Lekela Power, according to people familiar with the matter. Buyout firm Actis has drawn broad interest for its 60% stake in Lekela, including bidders from China and the Middle East, said the people who asked not to be identified because the matter is still private. Old Mutual is bidding for Lekela through its African Infrastructure Investment Managers unit, they said.
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PwC lists five key areas for municipal focus in service delivery endeavours

Five key areas of President Cyril Ramaphosa’s February 10 State of the Nation Address (SoNA) will be key to the success of municipalities rolling out services to South Africa’s citizens in the coming years, says professional services firm PwC. PwC government and public sector partner Craig Kesson and strategy and economics partner Lullu Krugel report that the SoNa provides South Africans an opportunity to understand the policy direction of the national government and a synthesis of its strategic approach over the next year.
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South Africa weighs taking on Eskom’s $26-billion debt, IMF says

South Africa’s government is considering taking over part or all of Eskom Holdings’ R392-billion debt as it seeks to restructure the cash-strapped power utility’s loan obligations, according to the International Monetary Fund. Eskom’s financial position is of particular concern and requires a decision on how to address its “unsustainable” debt levels, the Washington-based lender said in a statement published on its website following on-line meetings between its staff and South African officials. The local authorities are discussing whether the state should assume part or all of the debt upfront or continue making annual transfers of funds to the company, which could be higher than budget estimates, it said.
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Saice welcomes civil engineering prominence in capacity building, will help ensure sustainable …

Industry body the South African Institution of Civil Engineering (Saice) welcomes that civil engineering features prominently on the scarce skills list President Cyril Ramaphosa referred to during his State of the Nation Address (SoNA) on February 10, when he articulated the need for capacity building, says Saice president Professor Marianne Vanderschuren. Employment remains a critical priority for South Africa and for the civil engineering sector. Saice reiterated its call on government to continue to engage the available resources, entities and professionals in mapping out the far-reaching plans that detailed in the SoNA.
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Energy Intensive User Group welcomes SoNA statements

Nonprofit organisation the Energy Intensive User Group (EIUG) has welcomed the statements made by President Cyril Ramaphosa in his State of the Nation Address (SoNA) on February 10, and says it concurs with the President about the need for “a competitive market for electricity generation and the establishment of an independent State-owned transmission company.” It says Ramaphosa correctly diagnosed the root causes of the South African electricity crisis, being “aging power stations, poor maintenance, policy missteps and the ruinous effects of State capture”, leading to the current electricity supply shortfall of 4 000 MW.
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Draft electricity pricing policy stresses principles of cost-reflectivity and standardisation

The draft Review of Electricity Pricing Policy (EPP), which has been published for public comment, seeks to provide guidelines to the National Energy Regulator of South Africa (Nersa) for a standardised, non-discriminatory approach to electricity pricing in a context of an electricity supply industry “rapidly transitioning” away from its monopoly structure to one that is market based. The document, the release of which was approved by Cabinet last week, was Gazetted by Mineral Resources and Energy Minister Gwede Mantashe on February 10, with a 30-day comment period.
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