South Africa Secures Chinese Support for $122 Billion Energy Plan to Revive Manufacturing

South Africa has secured support from China for an ambitious $122 billion energy investment programme aimed at expanding electricity supply and rebuilding the country’s manufacturing sector after years of power shortages that slowed economic growth. The plan, valued at around R2.2 trillion, targets the development of 105 gigawatts of new electricity generation capacity and approximately 14,500 kilometres of new transmission lines by 2039. South Africa’s government says the project will help move the country beyond years of electricity challenges known as load shedding, which affected factori

South Africa has secured support from China for an ambitious $122 billion energy investment programme aimed at expanding electricity supply and rebuilding the country’s manufacturing sector after years of power shortages that slowed economic growth. The plan, valued at around R2.2 trillion, targets the development of 105 gigawatts of new electricity generation capacity and approximately 14,500 kilometres of new transmission lines by 2039. South Africa’s government says the project will help move the country beyond years of electricity challenges known as load shedding, which affected factories, mines and businesses across the country. Electricity and Energy Minister Kgosientsho Ramokgopa presented the investment strategy during a visit to China, where he sought financing, technology partnerships and industrial cooperation to accelerate South Africa’s energy transition. Chinese officials expressed support for the expansion plans, according to reports, as Pretoria looks to attract Chinese companies not only for investment but also for local manufacturing. The government wants Chinese firms to establish production facilities in South Africa to manufacture key energy equipment, including transformers, batteries, solar components, cables and other electricity infrastructure. Officials believe local production could reduce dependence on imports, create jobs and strengthen South Africa’s industrial capacity while supporting one of Africa’s largest clean-energy expansion programmes. For years, unreliable electricity supply has been one of the biggest obstacles to South Africa’s economic growth. Frequent power cuts disrupted industries and reduced investor confidence. The new strategy focuses not only on increasing electricity generation but also on expanding the national grid to connect renewable energy projects and support growing industrial demand. China’s role is considered important because it is a global leader in manufacturing solar panels, batteries and energy infrastructure technology. By attracting Chinese companies to produce equipment locally, South Africa hopes to benefit more from the global clean-energy transition and position itself as a major manufacturing hub on the African continent. The investment drive comes as African countries compete for Chinese capital in sectors including renewable energy, mining, electric vehicles and infrastructure. If successful, the programme could improve South Africa’s energy security, strengthen manufacturing and provide a foundation for long-term economic growth across the region.