Business and government partner to boost growth
JOHANNESBURG - Another partnership between business and government has been created.
President Cyril Ramaphosa convened ministers and senior business leaders under the Government Business Partnership.
This, to fast-track the implementation of key structural reforms and support performance improvements at Transnet and Eskom.
Martin Kingston, leader of B4SA's steering committee, believes that the best way to address unemployment and inequality is to execute structural reform, notably in the networking industry.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Daily Maverick
3 hours ago
- Daily Maverick
Ramaphosa extols green hydrogen as future driver of Africa-wide growth
President Ramaphosa on Thursday championed green hydrogen as Africa's future, but can the continent's ambitious dream overcome the reality of prohibitive costs and a risk-averse international financial regimen? 'Africa is uniquely positioned to become a major player in green hydrogen because it has abundant renewable resources that manifest themselves in high solar irradiation, strong winds and hydropower potential,' said President Cyril Ramaphosa. He was speaking at what was once called the South Africa Green Hydrogen Summit, now positioned as the Africa Green Hydrogen Summit, in Cape Town on Thursday. 'The vast land of our continent lends itself to large-scale renewable energy projects. We are therefore perfectly placed to leverage the global shift towards cleaner energy sources for our collective advantage as the entire continent. 'Green hydrogen is a way to marry our continent's mineral riches with our renewable energy endowments to decarbonise particularly heavy industries, to create jobs, to stimulate investment and to unlock inclusive growth across the various borders,' said Ramaphosa. Green hydrogen is produced by using renewable energy sources such as wind or solar power to split water into hydrogen and oxygen through a process called electrolysis. This hydrogen can then be used as an emission-free energy source and carrier for applications such as fuel cells or industrial processes, and is seen as being key to decarbonising 'hard-to-abate' or 'hard-to-electrify' sectors such as long-haul transport, chemicals, and iron and steel. Green hydrogen is of particular interest in South Africa because of the country's strategic advantages. The independent non-profit economic research institution Trade & Industrial Policy Strategies says that 'South Africa's rich endowment of ideal weather conditions for solar and wind-power generation, technological capabilities around the Fischer-Tropsch process, and access to platinum resources place the country at an advantage for developing the hydrogen value chain and being a key supplier into the global hydrogen market.' Ramaphosa noted that more than 52 large-scale green hydrogen projects had been launched across the continent, including in South Africa. 'To date, South Africa has invested more than R1.5-billion in our Hydrogen South Africa programme,' he said. Yet despite the President's bullishness, the reality of green hydrogen projects in South Africa and beyond paints a more complex picture. Daily Maverick reported in April that Namibia's HyIron Oshivela plant successfully produced green hydrogen for the first time, giving South Africa's neighbour to the northwest the lead in its implementation of its green hydrogen-related plans. South Africa's Hydrogen Society Roadmap, adopted in 2021, outlines an ambitious vision. While the initiative — which includes plans for a Hydrogen Valley industrial cluster and the Boegoebaai project in the Northern Cape — is substantial on paper, its implementation has lagged significantly behind Namibia's. Pilot project A pilot project in Sasolburg is producing green hydrogen for domestic use, and the Koega green ammonia project in the Eastern Cape is 'at an advanced planning stage' for four additional flagship hydrogen projects, said Ramaphosa on Thursday. Beyond suboptimal implementation, there are also complications, which Ramaphosa duly acknowledged. Chief among them: cost. 'We are very much alive to the reality that green hydrogen production faces a number of challenges. There is the cost factor. Capital intensity and the high costs of financing are significant barriers, as is the cost of green hydrogen relative to other energy sources such as natural gas, for instance,' he said. Earlier this year, Daily Maverick was told that the ambitious plan to produce 'green steel' in the Freeport Saldanha industrial zone had been shelved, with Sasol and ArcelorMittal citing high costs and shifting priorities. Globally, the steel industry is responsible for roughly 2.6 billion tonnes of carbon dioxide emissions a year, which is about 8% of global emissions. When the conventional coal-fired blast furnaces are replaced with ones that run on carbon emission-free green hydrogen, the steel that is produced is, accordingly, considered green steel. The difficulties in realising green hydrogen projects are shared internationally. A study published in the journal Nature Energy earlier this year, which tracked 190 projects over three years, found that by 2023 only 7% of the announced green hydrogen production globally had been realised. A large part of the reason is renewable energy and electrolyser costs. Lack of competitiveness A Potsdam Institute for Climate Impact Research researcher and the lead author of that study, Adrian Odenweller, as well as co-author Falko Ueckerdt, said: 'Green hydrogen will continue to have difficulties meeting the high expectations in the future due to a lack of competitiveness.' The Just Energy Transition Project Management Unit in the Presidency and the Industrial Development Corporation of South Africa previously confirmed as much with Daily Maverick, explaining: 'Currently, grey hydrogen (from steam reformation of methane gas) costs $1.50/kg to produce. Green hydrogen produced via electrolysis of water using renewables-generated electricity costs $5 to $6/kg. Approximately 60% of this cost is for electricity, 30% for electrolysers and 10% for transport, storage and other externalities. 'So, a reduction in price depends very much on renewable electricity generating costs falling still further. Additionally, the appropriate pricing of carbon taxes is another factor that will contribute to project viability. 'The costs of green electricity and of electrolysers will reduce, but not overnight. Furthermore, penalties in key global markets on goods produced using non-green technologies are ramping up over the next decade. We can anticipate that the right price point will be reached within the next few years. 'Based on the downward price trajectory of renewable energy and electrolyser costs, it has been projected that South Africa will reach $1.50/kg by 2037.' Speaking at the summit on Thursday, Energy and Electricity Minister Dr Kgosientsho Ramokgopa said, 'Africa's choice is whether to be a passive site of resource extraction or a proactive architect of the green energy economy. 'With the right policy framework, investment enablers and regional coordination, green hydrogen can and must be [the] backbone of a new African industrial era. 'South Africa's approach to green hydrogen is not aspirational, it is deliberate, structured and already under way. As a country, we have a clear choice to develop hydrogen not just as a climate response but as a catalyst for reindustrialisation, economic transformation, regional competitiveness and energy sovereignty,' said Ramokgopa. DM
Daily Maverick
3 hours ago
- Daily Maverick
Rebuilding trust — the imperative of the National Dialogue for SA's future
President Cyril Ramaphosa's recent announcement on the National Dialogue marks a defining moment in South Africa's democratic journey, because in a country such as South Africa where the public's trust in its institutions is wavering, where structural inequality remains entrenched and where social cohesion is fraying, the proposed dialogue offers more than just a political tool to pacify the electorate. Instead, it offers a necessary intervention to rebuild and restore the national soul. Encouragingly, the approach announced by the President reflects a meaningful convergence with the Inclusive Society Institute's vision as outlined in its publication, The National Dialogue – Pathway to a People's Plan for South Africa. Why the National Dialogue is necessary It is fair to say that South Africa is in crisis. This is not mere rhetoric, it is grounded in evidence. The Inclusive Society Institute's South African Social Cohesion Index paints a sobering picture: Respect for social rules stands at just 36.6 out of 100; Acceptance of diversity scores only 46.8; Trust in government institutions is a fragile 47.9; and Perceived fairness in the distribution of resources is an alarming 42.7. These are not just numbers. They reflect broken trust, frayed communities and a growing distance between citizens and the state. Add to this the reality that South Africa's economy has stagnated at around 1% GDP growth, far below the level required to reverse unemployment trends, and the urgency becomes clear. With unemployment (under the expanded definition) above 40%, economists agree that at least 3% sustained GDP growth is needed to hold the line and 4% or more to begin reversing the trend. In this fragile landscape, inaction is not neutral, it is costly. It is measured in missed opportunities, in disillusioned youth, in empty plates and stunted potential. And the people? They have been patient. Too patient. For years, they have waited with quiet dignity for the promise of democracy to deliver the fair, just and inclusive society they were told was possible. They do not ask for perfection. But they deserve progress. The case for social cohesion as economic foundation This is why the Inclusive Society Institute will bring to the National Dialogue table a central message: enhancing social cohesion is not optional, it is foundational. Across the world, empirical studies consistently show that societies with higher levels of cohesion tend to experience stronger, more inclusive economic performance. Cohesion fosters trust, which builds confidence, which in turn attracts investment and stimulates productivity. South Africa's history offers proof. In the late 1990s and early 2000s, when our social compact was strong and our democratic project broadly shared, GDP growth peaked at 6%, jobs were created and a growing middle class emerged. As that cohesion fractured, eroded by inequality, corruption and disillusionment, so too did economic momentum falter. Social and economic renewal must go hand in hand. A welcome alignment in approach The Inclusive Society Institute's framework for the dialogue calls for a broad-based, people-driven process. It is rooted in the belief that solutions must be co-created by the people, not merely for them. Inspired by the spirit of the Freedom Charter and the democratic architecture of Codesa, the institute envisions a structured, participatory dialogue culminating in a People's Plan for South Africa, a new social contract borne out of inclusive, honest deliberation. It is therefore welcome that the President's announcement mirrors many of these principles. He emphasised that the dialogue will not be a once-off event, but a months-long national process. It will reach every community, every sector, from business to labour, from religious organisations to the arts, from civil society to youth. Crucially, the process will not be led by government. It will be guided by a panel of eminent persons, with the secretariat based at Nedlac to ensure multistakeholder integrity. Government will be but one participant, preparing its input under the coordination of the deputy president. This rebalancing of power – from state-led to society-wide – is not just symbolically important. It is practically essential. South Africa needs shared leadership to rebuild a shared future. The Inclusive Society Institute's planned contribution The Inclusive Society Institute will participate in the dialogue by putting forward a focused and strategic proposition: South Africa must prioritise growing the economy über alles – above all else. But this growth must be inclusive, sustainable and underpinned by social stability. The institute will argue that economic growth and social cohesion are not sequential objectives, but simultaneous imperatives. No economy can flourish amid deep division and mistrust. No social fabric can remain intact when people are locked out of opportunity. The institute will, in its contribution to the dialogue, make the case that rebuilding trust, reducing inequality and fostering unity are essential preconditions for economic renewal. These are not abstract ideals, they are necessary investments in the nation's future. From shared vision to tangible results While some operational differences remain, the institute, for example, recommends an even more structured national convention model – the philosophical alignment between the President's announcement and the institute's vision is strong. Both acknowledge that this process must be inclusive, transparent and people-owned. Both accept that reform must begin with honest listening and shared purpose. Yet ideas alone are not enough. What matters now is execution. The process must avoid becoming a ceremonial talk shop. It must penetrate local communities, reflect real voices and translate dialogue into decisions. The test will not be the size of the platform, but the impact of the outcomes. A country worth rebuilding together South Africa is wounded, but not defeated. The people have waited. But the wait must end. The cost of further delay is measured in human suffering, in missed schooling, in breadlines, in lost dignity. The promise of democracy must not be something always deferred, always just over the horizon. And here is the truth: if we act now, if we take this process seriously and put shoulder to the wheel, it is not too late. This country can be fixed. The values of 1994 are not dead, they are dormant, waiting to be rekindled. But it will take courage. It will take humility. It will take us – all of us – committing to a national dialogue not as a political project, but as a moral imperative. Let this not be another conversation about the people. Let it be a conversation with the people, by the people, for the people, so that the dream of a just, inclusive and cohesive South Africa can finally begin to take shape. DM
IOL News
9 hours ago
- IOL News
SA's green hydrogen initiatives gain momentum with R650 million development funding
Minister for Electricity and Energy, Kgosientso Ramokgopa, acknowledged the capital-intensive nature and commercially untested at scale of this emerging sector, particularly at early stages. Image: GCIS South Africa's plans to accelerate the development of green hydrogen have received a major boost with several initiatives announced on Thurdsay, highlighting the country's commitment to renewable energy. The Public Investment Corporation (PIC), the Industrial Development Corporation of South Africa (IDC), and the Development Bank of Southern Africa (DBSA) have collectively invested R656 million into the South African Hydrogen Fund (SA-H2), also known as CI3 South Africa. This fund is pivotal in advancing the country's just energy transition (JET) and reinforcing its status as a global leader in green hydrogen. As part of this intensification of green energy initiatives, the IDC has joined forces with Germany's KfW Development Bank to provide grant funding for Mahlako, a 100% women-owned firm focused on developmental infrastructure projects, and CENEC (Central Energy Corporation), based in Bloemfontein. This partnership aims to expedite the development of the Prieska Power Reserve (PPR), a project that has successfully navigated a rigorous due diligence process this year. To date, the IDC has received a significant number of funding applications for green hydrogen projects and the PPR was among the first to have undergone a rigorous due diligence process. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad Loading The announcements coincide with the inaugural Africa Green Hydrogen Summit in Cape Town where President Cyril Ramaphosa and Minister for Electricity and Energy, Kgosientso Ramokgopa, outlined the government's efforts to mobilise blended finance within the hydrogen sector. Ramaphosa said green hydrogen was a way to marry Africa's mineral riches with renewable energy endowment to decarbonise heavy industries, to create jobs, to stimulate investment and to unlock inclusive growth across borders. "The growing global demand for clean hydrogen as countries decarbonise their industries, transport, and energy systems presents unlimited opportunities for our continent," he said. "As demand for green hydrogen grows, so does demand for platinum group metals, sustaining and expanding our continent's mining and refining industries." Ramokgopa acknowledged the capital-intensive nature and commercially untested at scale of this emerging sector, particularly at early stages. "The Department of Electricity and Energy, working with National Treasury, the IDC and the DBSA, is advancing instruments to de-risk early projects through concessional capital, credit enhancements instruments, and project preparation facilities," Ramokgopa said. In a significant showcase of its ambitions, SA-H2 announced its first investment of $20m for the Hive Hydrogen Coega Green Ammonia Project in the Eastern Cape, which is set to revolutionise green ammonia production in the country. The plant aims to generate approximately 1 million tons of green ammonia annually, facilitating the avoidance of 2.6 million tons of carbon emissions each year and creating more than 20 000 jobs during its construction and operational phases. The IDC's recent statement elaborated on the scope of the Development Funding Agreement, detailing support for engineering, procurement, construction selection, front-end engineering and design, and environmental and social impact assessments. This crucial investment paves the way for financial close by mid-2026, with commercial operations anticipated to commence by 2029. 'Green hydrogen economy will not only create jobs but help boost South Africa's energy security in the long-term,' said Rian Coetzee, the IDC's acting divisional executive for industry development and planning. 'To this effect, there has been a significant ramp-up of greenhydrogen projects in the country over the past three years and these have attracted the attention of international funding entities that are keen to accelerate development of the local Green Hydrogen economy.' SA-H2 will be managed through a partnership that includes Climate Fund Managers B.V. (CFM) and Invest International (II), a Dutch development finance institution. The project sites for PPR, which encompass around 1 900 hectares, are strategically located to facilitate renewable energy generation and green ammonia chemical processing in collaboration with the Siyathemba Local Municipality. The Department of Electricity and Energy also used the event to formally launch the South African Renewable Energy Masterplan (SAREM), a Cabinet-approved, sector-wide industrial strategy that anchors energy transition in local manufacturing, value addition, and job creation. 'SAREM is not just a roadmap for expanding renewable energy generation; it is a blueprint for how to industrialise through energy,' Ramokgopa said. 'Developed through a rigorous social compacting process between government, industry, labour, and civil society, it sets clear targets for localisation, supplier development, skills transfer, and green economy investment attraction.' The Masterplan aims to leverage South Africa's growing renewable energy demand, including for green hydrogen, to stimulate upstream and downstream industrial development across solar PV, wind, battery storage, electrolysers, and fuel cell technologies. BUSINESS REPORT Visit:
