AfDB’s Adesina starts visit in South Africa

African Development Bank (AfDB) Group president Dr Akinwumi Adesina has started a three-day official visit to South Africa. He will meet with President Cyril Ramaphosa, as well as various other government and industry leaders, to discuss important global and regional concerns, the AfDB’s development agenda and South Africa’s potential for increased trade and investment with the rest of Africa.
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Court decision to determine South African power security, DNG plans

A court hearing on Tuesday will determine whether South Africa can move forward with a project to top up its energy capacity after a year of record power blackouts. The ruling will also be critical for the businessman who blocked the plan with his lawsuit. The country’s efforts to add power capacity with an emergency program ground to a halt when 39-year-old Aldworth Mbalati’s DNG group of companies sued the government alleging corruption in the award of a contract. DNG, which has UK politician Peter Hain on its board and, according to Mbalati, counts Helios Investment Partners among its backers, lost the case in South Africa’s High Court in January. It applied to appeal, a decision on which will determine whether the project will be stalled further.
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Eskom considering taking on climate funds as equity injection

State power company Eskom is planning to propose that some of the funding the country secured to help tackle climate change take the form of loans to the government that could be converted to equity in the utility when needed. The arrangement would enable Eskom to access the $8.5-billion pledged by the US, the UK, Germany, France and the European Union without adding to its debt burden, a person familiar with the proposal said. The company wants to use the money to fund the closing of some coal-fired power plants and the construction of renewable-energy facilities to replace them.
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Innovative citizen ownership model proposed for just transition to renewables

A financial model that enables the building of public renewables assets using funds from citizens, who receive ongoing inflation-adjusted payments in return that are linked to the asset’s power purchase agreement (PPA), is being proposed for integration into South Africa’s planned just energy transition. The mechanism is being promoted by energy specialist Clyde Mallinson, who believes the approach could help allay the fears of those stakeholders who remain sceptical of wholesale private ownership of generation assets, while also delivering tangible security-of-supply and financial benefits to municipalities along with annuity payments to citizen investors.
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