Budget Speech 2023

More broadly, part of addressing the persistent electricity supply shortage must involve implementing a just transition to a low carbon economy. Climate change poses considerable risks and constraints to sustainable economic growth in South Africa.

We are among the most water-scarce countries in the world, and recent events have shown that extreme weather events such as floods, heatwaves and drought, are occurring more often.

Our Just Energy Transition plan addresses these urgent climate challenges. It aims to significantly lower emissions of greenhouse gases and harnesses investments in new energy technologies, electric vehicles, and energy-efficient appliances.

Most importantly, it ensures that communities tied to high-emitting energy industries are not left behind, and are provided with new skills and new economic and employment opportunities.

Through the Just Energy Transition Investment Plan, launched by the President in 2022 at the COP27, the country will make significant invests in our economy over the next five years, supported by a coherent industrial policy to enable innovation and economic diversification. The International Partners Group of developed economies in 2021 pledged US$8.5 billion to support South Africa’s transition. This will go a long way.

South Africa, through its role in the G20, the IMF and the World Bank, has stressed that developed nations could do more to support the energy transitions of developing nations, especially by ensuring that the financial support includes a much larger grantfunding component.