South Africa is poised to receive a substantial boost in addressing its energy crisis, as global leaders rally to triple clean energy investment in emerging economies. At the World Economic Forum (WEF) 2024 Annual Meetings in Davos, an alliance known as the “Network to Mobilise Clean Energy Investment for the Global South” was formed, comprising CEOs and government ministers from various nations, including South Africa. This initiative aims to unlock trillions of dollars to accelerate the clean energy transition in developing regions.

The long-standing energy deficit in South Africa has led to severe power cuts, with up to 10 hours of rotational outages daily, significantly impacting businesses and economic activities. The World Economic Forum’s Executive Opinion Survey (EOS) and Global Risks Report 2024 identified energy supply shortage as one of the top risks facing the nation, alongside economic downturn, unemployment, state fragility, and water-supply shortages.

The newly formed alliance, “Network to Mobilise Clean Energy Investment for the Global South,” includes ministers and CEOs from various nations, acknowledging the urgency of accelerating the clean energy transition to address the climate emergency. Roberto Bocca, Head of the WEF’s Centre for Energy and Materials, emphasized the need to unlock financing, stating that current investment levels fall short of the required scale.

Egypt’s Minister of International Cooperation, Rania A. Al-Mashat, co-chairs the network and stressed the necessity of tripling annual clean energy investment in the Global South from $770 billion to $2.2-2.8 trillion by the early 2030s. Al-Mashat highlighted that recent spending has been concentrated in a few countries and sectors, with over 90% of investment growth in advanced economies and China since 2021.

Minister of Electricity Dr Kgosientso Ramokgopa expressed the commitment to present a compelling case to attract foreign investors for expanding South Africa’s electricity transmission network. With a requirement of about R390 billion, the plan aims to strengthen the transmission grid with 14,000km of new power lines to accommodate the growing renewable energy sector.

Standard Bank Group CEO Sim Tshabalala, speaking on the sidelines of the WEF meetings, urged leaders to make it easier to do business in their countries by reducing red tape and liberalizing economies. He emphasized the need to improve the quality of institutions and professionalize the public sector, particularly in South Africa.

As South Africa grapples with its energy crisis, the global initiative to triple clean energy investment in emerging economies brings hope for a sustainable solution. The formation of the “Network to Mobilise Clean Energy Investment for the Global South” signals a collaborative effort to overcome investment barriers and facilitate a just, equitable, and inclusive energy transition. With renewed focus and commitment, South Africa aims to attract foreign investments to bolster its electricity infrastructure and contribute significantly to the global clean energy movement.