South Africa Investing in Energy to Strengthen the Economy

Article by Bukiwe Cimela, Pictures by Bukiwe Cimela & Invest Africa

03 Jun 2026

Deputy Minister of Public Works and Infrastructure, Sihle Zikalala, says that while South Africa is advancing energy innovation, including the exploration of green hydrogen, the costs of the transition must remain manageable. He has also called on African countries to share knowledge and expertise under the African Continental Free Trade Area (AfCFTA), noting that energy will be a critical driver of the continent’s industrialisation.

The Deputy Minister was speaking during a panel discussion at the 12th edition of the Africa Debate, held in London, United Kingdom, under the theme, “Redefining the Energy Transition.” During the discussion, Zikalala stressed that while the country is embracing cleaner and more sustainable energy sources, the transition must be managed in a just and inclusive manner to support communities, businesses, and workers whose livelihoods have depended on fossil fuels.

He said that while government is committed to funding projects aimed at transforming the energy sector, increased investment from the private sector is needed to accelerate growth and development.

According to the 2025 Technical White Paper on Africa’s infrastructure gap, The Missing Connection: Unlocking Sustainable Infrastructure Financing in Africa, the continent’s infrastructure needs are estimated at between US$130 billion and US$170 billion annually. Currently, only about US$80 billion is committed to infrastructure development each year.

“Energy transition is progressing in a regulated manner, with participation from the private sector and support from financial institutions within the country. We commend institutions such as the African Development Bank and Afreximbank for the work they are doing to support growth in the energy sector,” said Zikalala.

The Africa Debate is a leading conference that brings together influential leaders from across the world to discuss Africa’s trade and investment landscape, as well as the continent’s role on the global stage. The conference is organised by Invest Africa, a leading business and investment platform with more than 70 years of experience across the continent and a membership base of over 400 organisations.