Minister Kgosientsho Ramokgopa: Media briefing at 17th Africa Energy Indaba

Good afternoon, members of the media. Thank you for joining us today. Earlier, I had the privilege of delivering the opening address at the Africa Energy Indaba, where we engaged in critical discussions on the future of Africa’s energy landscape. The key message was clear: Africa must chart its own energy future—one that prioritizes energy security, economic growth, and industrialization while ensuring a just and equitable and People centred transition. Our continent is rich in energy resources, yet millions remain without reliable access to power. This is a contradiction we can no longer afford to accept.

African nations must rise in unison, dismantling these structural impediments with bold reforms, strategic investments, and deeper regional cooperation. Energy is the foundation of industrialization, and without it, growth remains an illusion. The decisions we make today will determine whether Africa becomes a global powerhouse or remains trapped in a cycle of dependency. We have the means, the expertise, and the will—now we must act with the urgency that history demands.

Today, I will outline the key interventions we are driving, including reforms to our electricity market, investments in regional energy integration, and measures to strengthen governance and transparency in the sector. South Africa has placed these issues from centre of our G20 Presidency agenda.

1. Reconfiguring the Cost of Capital – Climate finance must be made affordable and accessible. At present, developing nations face exorbitant borrowing costs due to perceived risks that do not reflect economic fundamentals but rather outdated and biased credit ratings. We need aggressive reforms to de-risk investments through guarantee mechanisms, blended finance structures, and enhanced concessionality.
2. Expanding Fiscal Space – The crippling debt burdens carried by developing countries continue to undermine their ability to invest in climate resilience and the clean energy transition. Meaningful debt restructuring and innovative financial instruments must be at the forefront of global discussions.
3. Enhancing Coordination Between Financial Actors – The fragmentation of climate finance across numerous institutions—Multilateral Development Banks (MDBs), Development Finance Institutions (DFIs), and vertical climate funds— creates inefficiencies that hinder impact. We must push for harmonised financial structures that align with national strategies, ensuring that finance flows are predictable, scaled, and structured to deliver maximum impact.
4. Strengthening the Role of National Development Banks (NDBs) – NDBs must be empowered to mobilise both domestic and international capital. Their unique position allows them to bridge the financing gap, but they require stronger capitalisation and de-risking support.
5. Attracting Private Sector Investment – Public finance alone will never be sufficient to meet the colossal investment requirements of the climate transition. Private capital must be mobilised at an unprecedented scale. To achieve this, governments must create an enabling environment offering policy certainty, strong regulatory frameworks, and project pipelines that are investment-ready.

African Energy Security: Key considerations and actions energy security to drive growth and development

Africa 2063: Strategic Actions for Energy

• Universal energy access by 2063 through regional integration
• Enhance energy security through diversified sources: Nuclear, clean coal, hydro, and gas must complement renewables. Scale up renewable energy investments: Target 600 GW by 2050
• Expected increase in electricity trade volumes by 300% - One unified African electricity grid by 2040.
• Integration of regional power pools to enhance energy security. Integrated African Energy Planning; Estimated $660 billion in savings through coordinated energy planning.
• Africa requires integrated policy frameworks, investment incentives are essential to develop cross-border electricity markets: Fully implement the AfCFTA electricity trade framework
• Africa’s share of global energy investment remains below 5%, highlighting financing gaps. Africa-led energy financing mechanisms to reduce reliance on external donors.
• Africa needs $2.6 trillion in energy sector funding by 2040. Strengthen domestic (African) energy financing and enhance African investment instruments to reduce reliance on foreign (non-African) capital.
• Through beneficiation at source of Africa’s abundant mineral and natural resources, drive industrialisation and innovation.

As I indicated, South Africa has taken the conscious decision to place these issues at the centre of our G20 agenda. The three specific outcomes that shape our resolve in this respect are:

1. Energy Security: forging affordable and reliable access.
2. Just, affordable and inclusive energy transitions
3. African interconnectivity and energy pools.

Africa’s time is now. The path to a prosperous and industrialized continent is not a distant aspiration—it is a mandate we must seize with urgency and collective resolve. Our abundant resources, youthful population, and growing markets position us to drive a new era of economic transformation, but this will not happen if we continue to be constrained by fragmented energy systems, underdeveloped infrastructure, and outdated policy frameworks.

Media enquiries: 
Tsakane Khambane, Ministerial Spokesperson 
Cell: 082 084 5566 
E-mail: Tsakane.Khambane@dmre.gov.za

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