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Geopolitics, reforms key themes of the 2025 SoNA

Engineering News editor Terence Creamer discusses some of the key themes of President Cyril Ramaphosa’s first State of the Nation Address since the establishment of the Government of National Unity; whether the SoNA reflected the fact that Cabinet now includes multiple political parties; how the President navigated some of the brewing geopolitical storms; and some of the key takeaways on the economy and for business.
February 7, 2025 by

Nersa’s carbon tax decision may signal extension of prevailing approach to electricity price …

The National Energy Regulator of South Africa’s (Nersa’s) recent decision to disallow Eskom from raising revenue through the tariff for carbon taxes may indicate that the National Treasury has opted to extend the electricity price neutrality approach used during the first phase of the tax by a further five years to 2030. In its sixth multiyear price determination application (MYPD6), Eskom applied for carbon tax revenue of R5.5-billion in 2025/26, R21.3-billion in 2026/27 and 18.9-billion in 2026/27 in anticipation of the implementation of the second phase of the carbon tax on January 1, 2026.
February 7, 2025 by

New Nordex head says South Africa remains key market, despite recent headwinds

Newly appointed Nordex Energy South Africa MD Robert Timmers says that South Africa is poised to be one of the multinational’s largest markets outside of North America and Europe in 2025. This, despite recent public procurement disappointments arising from the country’s well-documented grid constraints and delays in the introduction of new curtailment rules. In an interview with Engineering News, Timmers indicated that the demand gap left by the last two Renewable Energy Independent Power Producer Procurement Programme (REIPPPPP) bidding rounds was currently being partially closed for Nordex by two large private projects in the Eastern Cape, with a combined capacity of 631 MW.
February 5, 2025 by

Bate still expects to play role in green transition following IDC departure

Former Industrial Development Corporation (IDC) COO Joanne Bate, who departed the development financier at the end of January, expects to continue to play some role in South Africa’s green energy transition but has not yet taken up any specific new position. Having worked for the IDC in the late 1990s, Bate rejoined the State-owned entity on a five-year contract in February 2020, following a period in the commercial banking sector that included stints with HSBC and Barclays/Absa.
February 5, 2025 by

Africa50 to set up off-grid power, green infrastructure funds

Africa50, a pan-continental infrastructure investor, is setting up the first region-wide investment vehicle dedicated to off-grid power companies and plans a $500-million fund to invest in climate-friendly projects. The new funds at the investor, whose shareholders include the African Development Bank and Morocco’s central bank, come amid a drive by regional governments to boost access to electricity and shield against the impact of adverse weather caused by climate change. The World Bank and AfDB last month convened a conference to give momentum to a program to bring power to 300-million Africans by 2030.
February 5, 2025 by

World Bank lifts South Africa GDP forecast on energy, logistics

The World Bank raised its economic-growth forecast for South Africa because of a sustained recovery in its energy and logistics sectors, while warning that the nation will struggle to achieve a pace of expansion needed to reduce poverty and unemployment. The Washington-based lender boosted its gross domestic product growth projection for 2025 to 1.8%, from 1.3% previously, according to its South Africa Economic Update report published on Tuesday. The bank expects growth to accelerate to 2% by 2027.
February 4, 2025 by

Wind turbines on their way to Ummbila Emoyeni facility

Nine turbines, including 27 blades and other components, are being transported on the N2, from Richards Bay to Seriti Green’s Ummbila Emoyeni wind energy facility in Bethal, Mpumalanga. The turbines and components started moving on February 3. The convoy, managed by Vanguard, will be 335 m long and take three days to complete its journey.
February 4, 2025 by

South Africa’s energy and transport reforms could create 500 000 jobs – World Bank

South Africa could increase its GDP growth by 1% in the short term and up to 3% in the medium term by addressing persistent energy and freight logistics constraints, the World Bank’s latest ‘South Africa Economic Update’ states. Such projected increases in economic activity, the report adds, could create about 200 000 jobs in the short term and 500 000 jobs in the medium term. The bank estimates that constraints in both sectors have cost the economy three to five percentage points of GDP growth, and have disproportionately affected small businesses and low-income households.
February 4, 2025 by

Leslie Mkhabela appointed Eskom lead independent director

State-owned power utility Eskom has appointed Leslie Mkhabela as lead independent director, with effect from January 31. “The board appointed Mr Mkhabela as a lead independent director to strengthen governance and create an organisational structure with robust checks and balances. Leslie has consistently demonstrated decisive, ethical and inclusive leadership,” says Eskom chairperson Mteto Nyati.
February 4, 2025 by

Diamond-dependent Botswana needs economic reset, new leader says

Botswana’s government will develop new industries, dismantle the State power utility to foster private investment and increase concessional borrowing as part of a plan to diversify the diamond-dependent economy, President Duma Boko said. While gems mined by Debswana — a venture between Anglo American’s De Beers unit and the government — account for 80% of Botswana’s economy, they aren’t creating enough jobs, which raises the risk of instability in the arid nation of 2.5-million people, Boko said in an interview. The country is mainland Africa’s richest relative to the size of the population.
February 3, 2025 by