South Africa’s green transition to cost over R1trn by 2030

Funding will seek to cut dependence on coal, create jobs.
Image: Mikael Sjoberg, Bloomberg

South Africa’s efforts to wean itself off coal and focus on renewables, battery storage, electric vehicles and setting up a green hydrogen economy would require funding of over R1 trillion by 2030, a top government official said on Tuesday.

In November, the United States, Britain, France, Germany and the European Union agreed to offer a $8.5 billion package to help South Africa accelerate a transition from coal.

South Africa is the world’s 12th biggest emitter of climate warming gases and the biggest in Africa. It is a coal-intensive economy where a fleet of decades-old and inefficient power plants provide a bulk of its electricity.

The funding of R1 trillion would also involve investments into transition fuels such as natural gas and nuclear and imparting new skills to people who will possibly lose their jobs, Crispian Olver, executive director of the Presidential Climate Commission told Reuters.

President Cyril Ramaphosa in 2020 had set up the Presidential Climate Commission to create a plan for South Africa’s transition to a net zero economy by 2050.

The Commission in February came out with a draft report that laid out guidelines on transition in four major sectors of the economy – coal, automotive, agriculture and tourism.

“We are working on the numbers, and different models project different numbers and there is also a big debate about energy mix… We think around R1 trillion by 2030, and R3 trillion to R4 trillion by 2050 will be needed,” Olver said, at the sidelines of a discussion held with the financial sector on the draft framework at the Johannesburg Stock Exchange (JSE).

“By the end of this year we are going to have fairly good estimate on the numbers (amount of funding required),” Olver said.

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With the rest of the continent not being green, or Africa noy having the warewithall to transition, I do not see green transitioning happening or even if we get 50% there how it moves the dial.

It’s rather the bigger economies Africa has to to pressure.

Rather focus on Norway stopping oil production, for example.

A trillion Rand? That’s only $63 billion, about a quarter of what Elon Musk is worth. Puts our tiny economy into some perspective yes?

While the ANC government celebrates Freedom Day, in a country that cannot run an efficient rail service, post service, power delivery service, education and health departments and on and on…

I’m starting to think that we should just sell the country to China and let them fix it.

We can improve service delivery and create jobs overnight if we simply invited Ireland or Israel to invade us and take over the government. Voluntary colonialization is the immediate solution. The voluntary de-Africanization of the mindset of the voter is the long-term solution.

That is if we are looking for solutions of course.

I heard on CapeTalk Radio this morning that France has 80 state managers while SA has 10.000.Most useless of course and eating up half or more of he national budget.

Could this be the reason why we are in this mess? I wonder … sigh …

“The voluntary de-Africanization of the mindset of the voter …” Quelle horrible!! Perish the thought!!!

End of comments.

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