Stable power supply ‘crucial for investment’

MINERALS and Energy Minister Gwede Mantashe says a strong and stable power supply is crucial to assuring investors and for providing avenues for the economy to grow.

He presented this view at the SA Investment Conference, which started yesterday and will end today following an address by President Cyril Ramaphosa.

It aims to attract domestic and international investment to the country. Last year, over R600 billion in investment pledges was recorded.

Mantashe said yesterday that the economy was under pressure due to the Covid-19 pandemic.

“The impact on South Africa’s economy is compounded by the fact that the virus found us already in a technical recession due to an economic decline in two consecutive quarters.

“This was followed by a double downgrade by two rating agencies, in March and April this year,” he said.

Mantashe told delegates a stable energy supply would attract investors and drive productivity.

He said it was an ideal time to open up power-generation as it would enhance competitiveness, and that transmission would be managed by the state through Eskom.

Eskom chief executive Andre de Ruyter said the company was doing its best to ensure its unbundling efforts were concluded.

He said a team effort was required to solve the country’s energy crisis, and it was hoped that by December 2021 a separate transmission operating unit would be operational to scale procurement opportunities, which would be offered by independent power producers.