News24.com | Ramaphosa, Ramokgopa try to calm fears over trade-off between climate goals and electricity

President Cyril Ramaphosa addresses the SA Investment Conference. Photo: SA Investment Conference/Twitter

• President Cyril Ramaphosa told SA's fifth investment conference on Thursday that government was still committed to the Just Energy Transition investment plan. 
• Recent statements by Minister of Electricity Kgosientsho Ramokgopa have raised the possibility of keeping SA's coal-fired power stations going for longer than climate commitments in the plan.
• Ramaphosa also also said there will now be a National Logistics Crisis Committee to drive the implementation of a comprehensive roadmap for problematic freight logistics sector. 
• For more financial news, go to the News24 Business front page.

President Cyril Ramaphosa opened the fifth SA investment conference on Thursday confirming his government's commitment to the Just Energy Transition (JET) investment plan, but which he said would unfold "at a pace the country can afford".

Recent statements by Minister of Electricity Kgosientsho Ramokgopa have raised the possibility of keeping SA's coal-fired power stations going for longer than the climate commitments implied by the JET partnership arrangement and the JET investment plan. Ramokgopa's brief, since his appointment in March, is to improve the performance of Eskom's coal-fired power stations.

The JET investment plan and the $8.5 billion of concessional funding attached to it, requires that SA retire its coal fleet at a pace that will achieve its nationally determined contributions (NDCs).

Ramaphosa said:

Ramaphosa also emphasised the economic and growth opportunities that would arise from the transition to green energy including the local manufacture of solar panels, batteries and inverters and the use of our unique natural endowment in resources like platinum and vanadium.

Also, addressing the conference Ramokgopa allayed fears that SA intended to comprise on its climate commitments made at the COP26 conference in 2021.

"The nationally determined contributions (NDCs) are not in question. We are unswerving about that … We are not making a new plan. There is a plan in place," Ramokgopa said in reference to the national energy crisis plan and the Integrated Resource Plan.

"Investment must be made to strengthen the grid so that we don’t undermine the business proposition of embedded [renewable] generation … and are able to reach the NDCs."

The investment conference is taking place in a very different environment to previous conferences, with a crippling energy shortage, a crisis in the state logistics sector, and crime and corruption which are rapidly becoming embedded.

While acknowledging the success of his investment initiatives so far – with pledges of more than R1.1 trillion in the bag – Ramaphosa focused much of his speech on government initiatives to address the challenges.

A similar initiative to the National Energy Crisis Committee (Necom) which has formulated a plan to reduce and eventually eliminate load shedding, is to be established in the logistics sector.

"Significantly, we have agreed with key stakeholders to establish a National Logistics Crisis Committee to drive the implementation of a comprehensive roadmap for the freight logistics sector," he said.

And, in the same way that business has contributed resources to assist Necom with staffing and capacity through the formation of a R100-million Resource Mobilisation Fund, Ramaphosa said that discussions with business would lead to similar support.

"Just as the private sector Resource Mobilisation Fund is providing support for the energy action plan, we are greatly encouraged by indications from business that they are prepared to support government in our effort to fix the logistics system. We are confident that working together with the private sector and organised labour, Transnet and government will be able to overcome these constraints to improve efficiencies," he said.

Ramaphosa also announced a new visa regime to facilitate the entry of skilled labour into the country as well the ability of multinational companies to employ their own executives and technicians from outside the country. This will include:

• Decentralising the adjudication of visa applications to foreign missions;
• Streamlining application requirements to reduce the timeframes for obtaining a work visa;
• A trusted employer scheme for qualifying companies; and
• Establishing a points-based system to provide more flexible pathways for skilled applicants, in line with global best practice.