South Africa’s state-owned power utility Eskom Holdings SOC Ltd (Eskom Holdings SOC Ltd) has begun early discussions with the World Bank and other international financiers to support a potential multi-billion-dollar nuclear expansion programme, a senior official said on Wednesday.
The talks are part of preliminary efforts to secure funding for a new generation of nuclear capacity that could be launched within the next 12 months, as South Africa seeks to strengthen its long-term electricity supply and reduce reliance on ageing coal-fired plants.
Eskom currently operates Africa’s only commercial nuclear power station, the Koeberg Nuclear Power Station near Cape Town, and is now preparing a request for information for up to 5,200 megawatts of additional nuclear capacity.
The utility has not yet formally committed to the build programme, but officials said engagement with development finance institutions, including the World Bank Group (World Bank), is part of early-stage planning to explore viable financing structures.
South Africa has been grappling with persistent electricity shortages and rolling blackouts over the past several years, largely due to aging coal infrastructure, maintenance backlogs, and operational constraints. Policymakers have increasingly turned to nuclear energy as part of a broader strategy to diversify the country’s energy mix and improve baseload stability.
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The proposed expansion reflects a wider shift in South Africa’s energy planning, as the government balances decarbonisation commitments with the immediate need for reliable power supply to support economic growth.
Officials said the request for information process will help determine the most suitable technology options, procurement models, and financing arrangements before any final investment decision is made.
If pursued, the project would mark one of the largest nuclear development efforts on the African continent in decades, and could significantly reshape South Africa’s long-term power generation landscape.
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However, analysts caution that nuclear projects of this scale typically involve lengthy planning, regulatory approvals, and financing negotiations, meaning any actual construction is likely several years away even under an accelerated timeline.
The early-stage talks with multilateral lenders signal Eskom’s intention to leverage concessional and blended finance mechanisms to reduce the fiscal burden on the state, which has already carried substantial debt tied to its broader energy sector restructuring efforts.
Further updates are expected as Eskom completes its feasibility assessments and engages potential private and public sector partners in the coming months.
