South Africa is stepping up efforts to transform its energy sector and revive industrial growth after securing Chinese backing for an ambitious about US $122bn (R2.2 trillion) investment programme focused on expanding electricity generation, strengthening transmission infrastructure and boosting local manufacturing.
The initiative was unveiled by Electricity and Energy Minister Kgosientsho Ramokgopa during a visit to China, where he held discussions with government officials and investors to attract funding, technology and industrial partnerships. According to Bloomberg, Beijing has expressed support for South Africa’s long-term power expansion strategy, which is expected to play a key role in the country’s economic recovery.
A central element of the plan is to encourage Chinese companies to establish manufacturing facilities in South Africa rather than simply exporting equipment to the country. The government wants investors to produce critical energy components locally, including transformers, batteries, solar panels, cables and other transmission equipment, a move aimed at reducing import dependence, creating skilled jobs and strengthening domestic industrial capacity.
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Long-term goals
The proposed investment programme includes the development of approximately 105 gigawatts of new electricity generation capacity and the construction of 14,500 kilometres of transmission lines by 2039. Expanding the national grid is seen as essential to connecting new renewable energy projects and supporting growing electricity demand from industry.
The strategy marks a shift from South Africa’s previous focus on addressing immediate power shortages caused by years of load shedding, which disrupted mining, manufacturing and commercial activity. With electricity supply becoming more stable, the government is now prioritising long-term infrastructure development that can support industrial expansion and the country’s transition to cleaner energy.
Officials believe stronger transmission networks will be just as important as new generation capacity, as limited grid infrastructure has delayed the integration of renewable energy projects. By leveraging China’s global leadership in clean energy manufacturing, South Africa hopes to build a competitive local supply chain while positioning itself as a regional production hub for energy equipment.
The investment campaign also reflects a broader trend in China-Africa economic relations, where commercial investments and industrial partnerships are increasingly replacing traditional state-backed lending. If successfully implemented, the programme is expected to improve energy security, enhance industrial competitiveness and support sustained economic growth while reinforcing South Africa’s role in Africa’s clean energy transition.
