Economy

Electricity reforms key to economic recovery as winter outlook improves: SA Electricity Minister

Date: May 9, 2025

SA Minister of Electricity, Dr Kgosientsho Ramokgopa, has reaffirmed government’s commitment to energy reform and infrastructure recovery during the launch of the second phase of Operation Vulindlela, held at the Union Buildings in Pretoria.

Speaking to Channel Africa on Thursday, Ramokgopa emphasised that stabilising the national power grid remains central to driving economic growth, achieving fiscal balance, and implementing wider structural reforms.

“The biggest problem we have in the country is the economy not growing at the levels we desire,” he said. “You won’t succeed in balancing the budget without fixing the economy, and energy reform is central to that.”

Operation Vulindlela, a government initiative aimed at accelerating economic reform, will continue to focus on improving electricity and logistics systems. The second phase now also expands to address water management and local government performance, alongside continued efforts on employment creation.

Turning to SA’s immediate energy outlook, the Minister delivered a cautiously optimistic update ahead of the winter season. He cited notable reductions in unplanned capacity losses, from peaks of 19 000 megawatts to around 13 000 14 000 megawatts, as signs of progress.

“We are bullish about the winter outlook,” Ramokgopa stated.

“Key units have returned to service. We’ve synchronised Kusile Unit 6 and expect Unit 1 to return soon. These developments are encouraging.”

Reflecting on progress since his appointment, the Minister highlighted improved alignment between government and Eskom leadership, strengthened executive appointments, and enhanced financial support for maintenance and refurbishment. He also credited labour stability and the introduction of performance incentives as vital to recent improvements.

“We’ve seen improvements because we’ve implemented accountability measures and incentivised good performance,” he explained. “The template we’ve used here can be exported to other sectors of the economy.”

Ramokgopa concluded by stressing the importance of collaborative action. “We must work together, government, business, labour and communities, to ensure lasting solutions to the country’s power and economic challenges.”

--ChannelAfrica--

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