South Africa validates its commitment to the environment, but not at the cost of jobs

President Cyril Ramaphosa reaffirms South Africa's commitment to renewable energy while protecting jobs.

Share:

Transition écologique Afrique du Sud

South Africa, one of the most industrialized economies on the African continent, finds itself at a crossroads between the need to reduce its greenhouse gas emissions and the preservation of its economic and social fabric. Currently, 80% of its electricity production depends on coal, employing over 100,000 people. This makes the country one of the world’s biggest CO2 emitters.
At a meeting with government representatives and international donors, President Cyril Ramaphosa stressed the importance of an energy transition that is both equitable and inclusive. He insisted that this transition must not be at the expense of workers and local communities, citing the need for a pace of decarbonization adapted to the country’s economic and social capacities.

International Investments and Local Challenges

Since 2021, South Africa’s initiatives to move away from coal have received support from wealthy countries, with an $8.5 billion funding program also aimed at supporting affected workers. The World Bank also contributed $497 million in 2022 to transform a large coal-fired power plant into a renewable energy facility.
However, the transition is not without its challenges. Resistance is growing, particularly within the African National Congress (ANC), traditionally supported by the miners’ unions. Employment remains a critical issue, with an unemployment rate in excess of 30%. In addition, aging electrical infrastructure has led to power shortages, with blackouts of up to 12 hours a day in some regions.

Towards Energy Diversification

Faced with these challenges, South Africa is actively exploring energy alternatives. The country has opened up to private investment to create a more competitive electricity market, and is banking on green hydrogen and wind power. Ramaphosa’s speech emphasized the importance of carbon taxes in encouraging companies to adopt cleaner technologies, and highlighted the government’s efforts in retraining programs and support for small businesses.

Reflections on Just Transition

The balance between ecological transition and job preservation remains delicate. Ramaphosa’s gradual approach aims to minimize negative economic impacts while moving towards a more sustainable future. International cooperation and private investment play a crucial role in this transition, offering opportunities to diversify the economy and improve the country’s energy resilience.
The road to a low-carbon economy is fraught with challenges, but with the right policies and continued support, South Africa can become a model of fair and inclusive transition, reconciling sustainable development and social progress.

Nearly USD92bn will be invested by major American and international groups in new data centres and energy infrastructure, responding to the surge in electricity demand linked to the rise of artificial intelligence.
Nouakchott has endured lengthy power interruptions for several weeks, highlighting the financial and technical limits of the Mauritanian Electricity Company as Mauritania aims to widen access and green its mix by 2030.
Between 2015 and 2024, four multilateral climate funds committed nearly eight bn USD to clean energy, attracting private capital through concessional terms while Africa and Asia absorbed more than half of the volume.
The Global Energy Policies Hub shows that strategic reserves, gas obligations, cybersecurity and critical-mineral policies are expanding rapidly, lifting oil coverage to 98 % of world imports.
According to a report by Ember, the Chinese government’s appliance trade-in campaign could double residential air-conditioner efficiency gains in 2025 and trim up to USD943mn from household electricity spending this year.
Washington is examining sectoral taxes on polysilicon and drones, two supply chains dominated by China, after triggering Section 232 to measure industrial dependency risks.
The 2025-2034 development plan presented by Terna includes strengthening Sicily’s grid, new interconnections, and major projects to support the region’s growing renewable energy capacity.
Terna and NPC Ukrenergo have concluded a three-year partnership in Rome aimed at strengthening the integration of the Ukrainian grid into the pan-European system, with an in-depth exchange of technological and regulatory expertise.
GE Vernova has secured a major contract to modernise the Kühmoos substation in Germany, enhancing grid reliability and integration capacity for power flows between Germany, France and Switzerland.
The National Energy System Operator forecasts electricity demand to rise to 785 TWh by 2050, underlining the need to modernise grids and integrate more clean energy to support the UK’s energy transition.
Terna has signed a guarantee agreement with SACE and the European Investment Bank to finance the Adriatic Link project, totalling approximately €1bn ($1.08bn) and validated as a major transaction under Italian regulations.
India unveils a series of reforms on oil and gas contracts, introducing a fiscal stability clause to enhance the sector’s attractiveness for foreign companies and boost its growth ambitions in upstream energy.
The European Commission is launching a special fund of EUR2.3bn ($2.5bn) to boost Ukraine’s reconstruction and attract private capital to the energy and infrastructure sectors.
Asia dominated global new renewable energy capacity in 2024 with 71% of installations, while Africa recorded limited growth of only 7.2%, according to the latest annual report from IRENA.
US President Donald Trump's One Big Beautiful Bill Act dramatically changes energy investment rules, imposing restrictions on renewables while favouring hydrocarbons, according to a recent report by consultancy firm Wood Mackenzie.
On July 8, 2025, the Senate validated the Gremillet bill, aimed at structuring France's energy transition with clear objectives for nuclear power, renewable energies, and energy renovation.
Brazil, Mexico, Argentina, Colombia, Chile, and Peru significantly increase renewable electricity production, reaching nearly 70% of the regional electricity mix, according to a recent Wood Mackenzie study on Latin America's energy sector.
The Canadian government announces an investment of more than $40mn to fund 13 energy projects led by Indigenous communities across the country, aiming to improve energy efficiency and increase local renewable energy use.
The German Ministry of Economy plans to significantly expand aid aimed at reducing industrial electricity costs, increasing eligible companies from 350 to 2,200, at an estimated cost of €4bn ($4.7bn).
A major electricity blackout paralyzed large parts of the Czech Republic, interrupting transport and essential networks, raising immediate economic concerns, and highlighting the vulnerability of energy infrastructures to unforeseen technical incidents.