Government officials at loggerheads over SA’s proposed transition to renewable energy.

By Lehlohonolo Lehana.

Minister of Mineral Resources and Resources Gwede Mantashe this week snubbed a top-level meeting hosted by President Cyril Ramaphosa with European leaders to launch a European-funded green-energy initiative.

South Africa has launched a new dedicated fund that aims to raise $1bn (R18.2bn) in funding for the construction of a substantial pipeline of green hydrogen projects in the country.

The fund was launched in Pretoria on Tuesday during a visit to the country by the prime ministers of Netherlands and Denmark, Mark Rutte and Mette Frederiksen, who concluded a heads of agreement with Ramaphosa for the planned fund dubbed SA-H2.

The fund is supported by the Climate Fund Managers, the Development Bank of Southern Africa (DBSA), the Industrial Development Corporation, Sanlam and state-owned Netherlands Invest International BV.

It is also believed Netherlands and Denmark could soon join the $8.5 billion Just Energy Transition project with Germany, the US, the UK, France and South Africa that is set to launch soon.

According to The Sunday Times, instead of Mantashe attending the event to sign a Memorandum of Understanding (MOU) with Ramaphosa and the two international leaders, Mantashe was in Boksburg at a Cosatu event – with International Relations Minister Naledi Pandor singing the MOU in his stead.

Mantashe, said that he did not attend the event as he had not read the MOU.

“I didn’t say I’m not available to sign. I said I don’t sign an agreement I have not seen, that’s all I said. For me, that is a principle issue. You want me to sign an MOU, you give me that MOU to read and understand then I sign it,” Mantashe said.

“Leave the presidential minute; I’m told the morning of the meeting that ‘at 11am you are signing an MOU’. I ask: ‘What is the MOU? I am not signing an MOU I have not read.”

Presidency insiders said that the President was furious with Mantashe for not attending the event.

The latest incident is yet another example of senior government officials not being on the same page regarding energy transition and load shedding crisis.

The Bureau for Economic Research (BER) warned that there were too many cooks in the kitchen in regard to South Africa’s energy matters, and Eskom in particular.

Following the appointment of electricity minister Kgosientsho Ramokgopa earlier this year, Eskom has to deal with three separate ministers directly, including Mantashe and Public Enterprises Minister Pravin Gordhan.

In addition, a range of partnerships between the three countries were announced including the formation of a €300-million ($327-million) water infrastructure fund for South Africa by Invest International. A Dutch venture to form a “climate-smart” agriculture hub at the soon to be idled Grootvlei power plant in South Africa was also announced.

Scroll to Top