Energy Minister Jeff Radebe has set his department an ambitious target of attracting at least $25 billion in foreign direct investment into the South African economy.
Radebe has briefed the media on Wednesday on his department’s budget, which will focus on using energy to ignite economic growth. He listed several initiatives on how this goal can be reached in the energy sector.
Radebe’s mission was triggered by President Cyril Ramaphosa, who wants to bring $100 billion of investment into the economy. Radebe would like the energy sector, under his political leadership, to contribute as a minimum, a quarter of the $100 billion target set by the president.
One of the ways this can be achieved is by promoting natural gas and securing strategic stock through investment in new fuel tanks and infrastructure. This will also go a long way in making South Africa a major shale gas producer.
He said: “We want to be ambitious… we want a quarter of the $100 billion that will be in addition to what has happened previously. And as you know, we’ve started contributing to the $100 billion.”
Radebe has also set his sights on overhauling struggling energy SOEs like the Central Energy Fund and PetroSA.