Minister of Electricity and Energy Kgosientsho Ramokgopa has announced plans to introduce a new investment instrument aimed at attracting private-sector funding to modernise South Africa’s energy infrastructure. The framework will be unveiled within the next five weeks and could serve as a model for infrastructure investment across state-owned enterprises.

Speaking during the State of the Nation Address debate in Cape Town last week, Ramokgopa emphasised the urgent need for private capital to address infrastructure shortfalls.

“We have designed an instrument that we will introduce to the country in the next five weeks. This will serve as a template – not just for energy but also for Transnet and other state-owned enterprises to drive infrastructure investment forward,” he said.

The minister said financial constraints limit government’s ability to expand the national transmission network. South Africa requires approximately R450 billion to add 14 000 km of transmission lines over the next decade – an investment the state cannot afford alone.

“The state’s sovereign balance sheet is weak and Eskom’s financial position has deteriorated. We need instruments that accelerate private-sector investment,” Ramokgopa said.

Beyond energy, government is also prioritising freight logistics improvements. Ramokgopa outlined a plan to increase annual freight volumes from a baseline of 149 million tonnes to 170 million tonnes this year with a long-term goal of reaching 250 million tonnes by 2030.

Key corridors targeted for development include:

• Northern Cape-Saldanha for iron ore and manganese.
• The northern corridor for coal and chrome.
• Gauteng-Durban for automotive and general freight.