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Sona 2023: South Africans dubious about R1.5 trillion investment
It's a necessary investment to mitigate climate change. But citizens feel that some of that money might be ill-intentionally redirected.
President Cyril Ramaphosa at Sona 2023. Image: Supplied by GCIS.
President Cyril Ramaphosa announced during his 2023 State of the Nation Address (Sona) that the South African government will be investing around R1.5 trillion over the next 5 years in the country’s economy in new frontiers such as renewable energy, green hydrogen and electric vehicles, as part of the Just Energy Transition Investment Plan.
“Several new sectors are emerging in the economy, such as major green hydrogen, electric vehicles and fuel cells,” he said during his address.
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The president late last year, during the inaugural South African Green Hydrogen summit in Cape Town, said that South Africa had the potential to emerge as a leader in the green hydrogen value chain.
Projects underway
At this year’s Sona, he acknowledged that a number of projects were already underway, including the development of a new facility by Sasol at Boegoebaai in the Northern Cape, the Prieska Power Reserve in the Free State, and the Hydrogen Valley initiative in Limpopo, Gauteng and KwaZulu-Natal.
“The Northern Cape has already attracted well over R100 billion in investments in renewable energy projects.
“These and other massive investments in renewable energy will create jobs and stimulate local economies not only in the Northern Cape, but also in the Eastern Cape, Western Cape and Mpumalanga, turning even the most arid desert into a giant energy source.
“Above all, our just transition will prioritise workers and communities in vulnerable industries to ensure that no one is left behind,” he said.
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SA not convinced
But South Africans were dubious about whether they would see the South African energy landscape effectively transformed in the space of five years, stating that it was far more likely that the R1.5 trillion would be looted by government officials and the like.
One Twitter account user wrote: “R1.5 trillion to steal. It’s up for grabs. Guys register your companies. It’s going to be raining tenders.”
South Africans obviously do not feel like they can trust their government officials…
South Africans were reacting on the back of the R50 billion that was set aside to aid South Africans during the Covid pandemic that was allegedly looted and not accounted for.
According to the then Auditor-General (AG), Kimi Makwetu, it was reported that the relief package redirected by government as a response to the Covid-19 pandemic, “landed in a weak control environment”, stating that there were plenty “indicators of high risk of fraud and abuse” in the audit report.
As such, it was not surprising that the country was hesitant about the president’s pledge.
Meanwhile, political analyst Theo Venter said that South Africans were probably just prejudiced by the coal lobbying.
“[The] Just Energy Transition [plan] is a global requirement and our contribution to mitigation of climate change,” he said.
