Cape Town, 17 July 2024 — On the eve of the joint sitting of the National Assembly and the National Council of Provinces for the opening of the 7th Parliament of South Africa, the Progressive Business Forum (PBF) hosted an influential business dinner in Cape Town themed “Energizing South Africa and Fostering Economic Growth.” The event brought together key policymakers and industry leaders to discuss the future of South Africa’s energy sector and its vital role in the nation’s economic growth.
The dinner was adeptly facilitated by PBF CEO Ms. Elizabeth Thebe and Mr. Groovin Nchabeleng, with opening remarks delivered by Dr. Gwen Ramokgopa, PBF Chairperson and ANC Treasurer General.
During a media briefing prior to the dinner, Dr. Gwen Ramokgopa emphasized the importance of national dialogue, which was announced by His Excellency, Mr. Cyril Ramaphosa a few weeks prior. “We look forward to moving pre-emptively on the national dialogue, especially regarding the Government of National Unity (GNU) priorities however, today’s discussion is focused on energy and the pivotal role of minerals, resources, and petroleum, particularly in terms of beneficiation,” she stated. Dr. Gwen Ramokgopa also highlighted the potential of a sovereign wealth fund to optimize the monetization of the country’s resources for the benefit of all South Africans.
Minister of Electricity and Energy, Dr. Kgosientsho Ramokgopa, elaborated on the planned energy mix and its significant impact on future supply. “Energy is the next big frontier,” he declared. Minister Ramokgopa outlined the critical role of South Africa’s big six minerals—copper, platinum group metals, uranium, lithium, nickel, and rare earth elements—in the transition from greenhouse gas emissions to cleaner power generation.
He stressed the need for comprehensive industrial policies to anchor economic growth and the importance of domestic gas discoveries in pivoting from coal to gas-powered generation. “These discoveries are key because domestic gases are the cheapest form of generation, shielding us from price fluctuations and currency risks,” he explained. Despite ongoing challenges with load shedding, Minister Ramokgopa noted significant progress, particularly highlighting the achievements at Koeberg nuclear plant, its safety record and the extension of its license for another 20 years.
Addressing electricity pricing and tariff structures, he emphasized the necessity of ensuring access to affordable electricity for all South Africans, especially the poor. Looking ahead, Minister Ramokgopa envisioned a future featuring electric vehicles and green hydrogen, reflecting the comprehensive scope of ongoing energy initiatives.
Minister of Mineral and Petroleum Resources, Mr. Gwede Mantashe, spoke on the strategic opportunities for black industrialists. During the media briefing, he outlined key priorities:
- Economic Growth: Minister Mantashe stressed the need to monitor sectoral performance closely, rather than relying solely on global GDP figures. “It is crucial to assess and push sectors to perform consistently throughout the term,” he asserted.
- Labor Market: Highlighting the employment crisis at the lower end of the labour market, he emphasized the importance of not neglecting this segment while focusing on skilled labour and foreign investments.
- Sectoral Focus: The Minister pointed out the necessity of paying attention to sectors such as hospitality, construction, and farming to drive comprehensive economic growth.
- Beneficiation: Minister Mantashe raised two critical elements:
- Ensuring reliable, stable, and cost-effective electricity for all South Africans, which is fundamental for successful beneficiation and,
- Introducing incentives to promote beneficiation, thereby enhancing the value of mineral resources.
Regarding the establishment of a sovereign wealth fund, Minister Mantashe criticized the delay in its introduction. He suggested that the royalties, approximately 28 billion rands per annum which is currently moved to the Treasury, should be invested in a sovereign wealth fund to be utilized during economic crises.
The business dinner hosted by the Progressive Business Forum underscored the critical intersection of energy policy, mineral resource management, and economic growth strategies for South Africa. As the nation prepares for the President’s national dialogue announcement, these discussions highlight the collaborative efforts needed to harness South Africa’s rich resources and drive sustainable development. The emphasis on a comprehensive energy mix, sectoral performance monitoring, and the establishment of a sovereign wealth fund reflect a forward-looking approach to securing South Africa’s economic future.
Article: Mr. S. Singh / Photographs: Mr. Atlegang Lekabe