Treasury aims to spend over R200 billion on energy infrastructure. Picture: Armand Hough/Independent Newspapers
Image: Armand Hough/Independent Newspapers
Finance Minister Enoch Godongwana intends to allocate over R219.2 billion towards South Africa’s green energy revolution, with the huge investment targeted at improving infrastructure in the sector.
Godongwana was set to deliver his Budget Speech on Wednesday, but in an unprecedented move, the event had to be postponed after Cabinet ministers in the Government of National Unity (GNU) failed to reach consensus on the matter of Treasury’s 2% increase on Value Added Tax, which would have increased the VAT rate to 17%.
Although the speech was not delivered, Treasury has released the Budget Speech and its presentation, but they have said senior officials in the Treasury would not comment on the documents until the new Budget Speech is delivered on March 12.
In terms of funding, the government has allocated over R1 trillion for infrastructure development over the next three years. This will be spent on various projects, including: R402 billion for transport and logistics, R219.2 billion for energy infrastructure and R156.3 billion for water and sanitation.
This significant investment is expected to support the development of new energy projects, including renewable energy initiatives.
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The funding will also be used to expand the electricity transmission network and improve the financial viability of trading entities.
Notably, the move towards renewable energy comes as a relief to communities plagued by cable theft, which has led to frequent power outages and disruptions.
A Riverlea resident, who would only identify himself as Mr. Jantjies, expressed frustration as he had not had any electricity for two days.
"I'm a concerned citizen, and I'm affected by cable theft,” he said.
“I've had no power for two days now. So, I want to know, is there really a budget? And what exactly is it for? Is it to mitigate stealing or to remedy the situation, because honestly, we need solutions, not promises," said Jantjies.
Solar energy, in particular, is emerging as a beacon of hope, offering a reliable and sustainable solution to the country's energy woes.
The allocation of R219.2 billion for energy infrastructure is expected to have a significant impact on the economy, with numerous social and economic benefits. Some of the expected benefits include job creation and economic growth.
With R50 billion allocated for new solar and wind power projects, South Africa is poised to harness the power of renewable energy and reduce its reliance on traditional energy sources. This shift is expected to bring much-needed respite to communities affected by cable theft and power outages, while also contributing to a cleaner, greener future.
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