South Africa has secured Chinese backing for an ambitious R2.2 trillion ($122 billion) energy investment programme as Africa’s most industrialised economy steps up efforts to rebuild its manufacturing base after years of electricity shortages that hampered economic growth.
Electricity and Energy Minister Kgosientsho Ramokgopa unveiled the investment drive during a visit to China, where he sought financing, technology and industrial partnerships to accelerate South Africa’s energy transition while expanding domestic manufacturing capacity.
Chinese officials expressed support for the country’s power expansion plans, according to Bloomberg.
Rather than seeking capital alone, Pretoria is encouraging Chinese companies to establish manufacturing operations in South Africa to produce critical energy equipment including transformers, batteries, solar components, cables and other grid infrastructure.
The government says local production would reduce import dependence, strengthen industrial capacity and create jobs while supporting one of the continent’s largest electricity expansion programmes.
