South Africa is beginning to see improvements in electricity supply following reforms in the energy sector, President Cyril Ramaphosa said, pointing to better performance at state utility Eskom and regulatory changes that have unlocked new investment.
Speaking on Friday night at the African National Congress (ANC) January 8 gala dinner in the North West province, Ramaphosa said government interventions were starting to stabilise the country’s long-troubled power system, which has been plagued for years by rolling blackouts.
“Energy reforms are bearing fruit,” Ramaphosa said, citing improved operations at Eskom’s power stations and policy changes designed to encourage private sector participation in electricity generation.
South Africa has suffered chronic power shortages due to ageing coal-fired plants, years of under-investment and maintenance backlogs at Eskom, which supplies more than 80 percent of the country’s electricity. The crisis has weighed heavily on economic growth and investor confidence.
Ramaphosa acknowledged that challenges remain, including so-called load reduction measures linked to infrastructure constraints and illegal electricity connections, particularly in densely populated urban areas. But he said government efforts to address these problems were continuing.
“We still have challenges,” he said, adding that authorities were working to strengthen networks and curb electricity theft while improving supply reliability.
A key pillar of the reform drive has been opening the electricity market to greater private investment, especially in renewable energy. Regulatory changes introduced over the past two years have removed licensing thresholds for embedded generation projects and accelerated procurement processes.
Ramaphosa said these reforms had helped attract significant investment into renewable energy, particularly in the Northern Cape, a sparsely populated province with some of the best solar and wind resources in the country.
“The progress we are seeing is due to the work that has been done to improve the performance of Eskom, particularly its power stations, as well as the regulatory changes that we have made to enable substantial new investment in renewable energy,” he said.
He noted that the Northern Cape had attracted more than 110 billion rand in renewable energy investment in a short period, equivalent to about $6 billion, underscoring growing confidence in the sector.
South Africa has made renewables central to its long-term energy strategy as it seeks to diversify away from coal, which currently accounts for the bulk of power generation and is a major source of carbon emissions.
Eskom has recorded extended periods without nationwide load-shedding in recent months, a marked improvement compared with previous years when blackouts lasted up to 10 hours a day. Analysts caution, however, that sustaining these gains will depend on continued maintenance, grid expansion and timely completion of new generation projects.
Ramaphosa said expanding renewable energy capacity was essential not only to stabilise supply but also to support economic growth and job creation over the long term.
“Increased investment in renewable energy remains central to achieving lasting energy security,” he said.
The ANC leader’s remarks come as South Africa heads into a politically sensitive period, with energy supply expected to remain a key issue for voters amid broader concerns over unemployment, cost-of-living pressures and public service delivery.