Minister for Electricity and Energy, Kgosientso Ramokgopa, has emphasised the urgent need for a fundamental reconfiguration of the global energy finance architecture.
Speaking at the third Energy Transitions Working Group meeting under South Africa’s G20 Presidency, he called for a transition from pledges to tangible execution, particularly in light of recent commitments exceeding R1 billion towards the implementation of JET programmes.
Ramokgopa asserted that the credibility of the global transition hinges on the timely and effective mobilization of financial resources to where they are most needed.
“Finance must become a tool of inclusion, not a barrier to participation. Scaling up climate and energy finance is not only urgent, but also central to closing the infrastructure gap, addressing energy poverty, and driving structural transformation and industrialisation,” Ramokgopa said.
“We must shift from pledges to execution, from fragmented flows to coordinated and catalytic investment.”
Ramokgopa underscored the dire necessity to address systemic underinvestment in transmission, distribution, and generation capacity. He advocated for a financing structure that ensures long-term affordability, particularly for vulnerable and energy-poor communities.
Central to this strategy is the establishment of de-risking mechanisms aimed at attracting private capital while preserving essential public oversight.
Ramokgopa also highlighted the importance of expanding access to concessional and blended finance for early-stage and localised energy projects, prioritising small and medium enterprises in the energy value chain.
So far, South Africa has secured pledges totalling up to $12.8 billion from international partners, with over $760 million earmarked for grant funding.
Recently, the country entered into a $474m loan agreement with the African Development Bank (AfDB) along with a €500 million arrangement with the German Cooperation via KFW Development Bank, both crucial for funding the JET initiatives.
However, Ramokgopa cautioned that renewable energy sources alone – particularly in regions with variable resources, legacy baseload infrastructure, or limited grid flexibility – were insufficient to satisfy all system requirements.
He said for a pragmatic approach, South Africa had to utilise a mix of technologies, which includes Carbon Capture, Utilisation and Storage (CCUS) to reduce emissions from hard-to-abate sectors and existing fossil assets, Small Modular Reactors (SMRs) as a dispatchable, low-emission baseload option suitable for diverse geographies and carbon removal, and long-duration storage technologies to offset residual emissions and enhance system resilience.
Ramokgopa said demand-side and system flexibility tools, including digital technologies, to balance load and optimise system operations also had to be considered.
“A technology-inclusive approach ensures that countries can select solutions aligned with their energy mix, infrastructure readiness, and industrial strategy,” he said.
“It also expands investment options, supports innovation, and avoids prematurely locking out viable low-carbon technologies. The transition must be both ambitious and anchored in the realities of implementation.”
Ramokgopa’s clarion call extends beyond South Africa’s borders, urging the G20 to fully and practically implement Sustainable Development Goal 7, which aims to ensure access to affordable, reliable, sustainable, and modern energy for all.
This, he said, requires mobilising adequate and appropriate climate and development finance, modernising grid infrastructure at scale, supporting public-private partnerships to accelerate implementation and enabling context-specific, country-led energy transition pathways that consider national priorities and the global imperative to address climate change.
“Each country must retain the right to determine its pathway, based on national priorities, institutional capacity, and existing energy systems. There is no single model. No uniform pace. No imposed prescription,” Ramokgopa said.
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