South Africa has secured Chinese backing for an ambitious R2.2 trillion ($122 billion) energy expansion, marking one of Africa’s largest long-term infrastructure investment drives as the country works to strengthen electricity supply, accelerate renewable energy deployment and revive its manufacturing sector.

The investment programme aims to add approximately 105 gigawatts of new electricity generation and expand the national transmission network with about 14,500 kilometres of new power lines by 2039. The grid expansion is designed to connect new renewable energy projects, support rising industrial electricity demand and improve power reliability across the country.

China partnership supports industrial strategy

Electricity shortages have weighed on South Africa’s economy for more than a decade, limiting industrial output and discouraging investment. Pretoria is now positioning its energy transition as an opportunity to rebuild domestic manufacturing while attracting foreign capital.

Rather than relying solely on imported equipment, the government is encouraging Chinese companies to establish local manufacturing operations for renewable energy components and power infrastructure. Officials believe the strategy will create skilled jobs, strengthen supply chains and increase South Africa’s participation in the global clean energy economy.

Ramokgopa seeks investment and technology

Electricity and Energy Minister Kgosientsho Ramokgopa presented the investment pipeline during meetings with Chinese investors, highlighting South Africa’s policy reforms, improving electricity reliability and expanding private-sector participation in the power market.

He said South Africa offers one of Africa’s most attractive long-term energy investment opportunities, supported by regulatory changes that are opening the electricity sector to greater competition and private investment.

China shifts toward commercial investment

South Africa’s latest investment campaign comes as Chinese companies deepen their presence across Africa’s renewable energy, mining, electric vehicle and electricity infrastructure sectors.

While large government-backed lending has moderated in recent years, analysts say commercial investments, technology partnerships and industrial manufacturing projects are becoming the next phase of China-Africa economic cooperation.

The planned energy expansion is expected to strengthen South Africa’s electricity system, support economic growth, attract new industries and reinforce the country’s position as one of Africa’s leading destinations for clean energy investment.