Ramokgopa urges collective African response to ‘weaponisation of trade and finance’

4 Mar 2025

While the US could pull its funding for SA’s Just Energy Transition Investment Plan, Minister of Energy and Electricity Dr Kgosientsho Ramokgopa says that recent changes in the global order necessitate a closer look at a continental response.

Minister of Energy and Electricity Dr Kgosientsho Ramokgopa says African leaders need to develop a comprehensive and collective response to a changing global order that could undermine the continent’s energy and sustainable development aspirations.

He was addressing the Africa Energy Indaba on Tuesday, 4 February 2025.

“We convene in a world where multilateral cooperation is increasingly under strain. Global capital flows remain deeply unequal. Trade policies are increasingly politicised and the commitments under the Paris Agreement remain largely unfulfilled.

“The weaponisation of trade and finance further exacerbates existing disparities, making it even more difficult for developing nations to access the resources necessary to transition for sustainable development,” said Ramokgopa.

He argued that it was in the “collective interest” of the continent to fashion a response that was “comprehensive and coordinated” to survive the challenges they confronted. Ramokgopa noted that the continent was not a monolith and there were considerable degrees of difference in views about how to respond.

“We are going through turbulent waters. The geopolitical situation – depending on how you look at it – could be in our favour or could represent … adverse headwinds that require a comprehensive and well-considered response from African leaders,” said the minister.

He said the geopolitical situation manifested itself most acutely in the energy space.

Daily Maverick has reported that Ramokgopa warned there was a risk that the US would pull its share of the International Partners Group’s (IPG’s) funding for South Africa’s Just Energy Transition Investment Plan (JET-IP).

Read more: Ramokgopa warns of risk of US pulling its Just Energy Transition funding

The JET-IP is aimed at transitioning the country from fossil fuels to cleaner energy sources and ensuring a just and equitable process for affected communities. It was heralded by developing and developed countries alike as a model for how developing countries could form country-led plans to both attract finance and reduce emissions.

Last week, President Cyril Ramaphosa, in an address to G20 finance ministers and central bank governors, said, “The third priority of South Africa’s G20 presidency is to mobilise finance for a just energy transition.”

“Significantly more funding is required to limit global temperature rise in line with the goals of the Paris Agreement, and to do so in a manner that is equitable and just. We continue to advocate for greater concessional and grant funding to support the energy transition in developing economies,” the President said.

On Tuesday, Ramokgopa broadened the scope and spoke about the African energy landscape – “our appreciation of the African energy landscape, our ability to understand both the challenges and opportunities going into the future. On the continent, we’ve got 600 million Africans without access to electricity.”

The minister emphasised the contrasts that highlighted the injustice of Africa’s relative energy poverty.

“Africa holds about 60% of the world's best solar resources, but has installed only 1% of global solar PV capacity,” Ramokgopa said, adding “energy consumption per capita on the continent is about a 1/6th of the global average, but the population is about 17% of the total global population.”

The minister addressed making use of the continent’s resources, both fuel sources and the minerals that enabled their development and use and said that the assembled conference attendees should consider how the continent and its countries best made use of those resources.

“We’ve just been reminded now by some of the major superpowers that each and every country place front and centre their consideration of what is their sovereign interest … and I think it’s about time for Africa to define what is the sovereign interest of individual countries and what is in the interest of the continent.” DM

https://www.youtube.com/watch?v=REeWvTRUpMk

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