South Africa has received pledges of about $11.6 billion for its just energy transition. Oxpeckers Investigative Environmental Journalism asked the treasury how
Lost your password? Please enter your username or email address. You will receive a link to create a new password via email.Financing JET: National Treasury is the entity responsible for managing and disbursing the funds. Image supplied
This is a significant development aimed at enabling municipalities, particularly in Mpumalanga, to tailor their energy strategies to local resources while addressing financial constraints, the treasury said. Neil Cole: ‘We are considering what kind of credit guarantee vehicles can be put in place to support these local governments and weaker municipalities.’ Photo courtesy PMUNeil Cole, financing manager for the Presidency’s JET Implementation Plan project management unit , said the first challenge of financing municipalities with weak balancing sheets is that there is no mechanism for the treasury to borrow and then on-lend to municipalities.
“When we did the costing of the South Africa transition investment plan, the total cost was $98 billion, or R1.5 trillion. We will allocate a significant portion of the $11.6 billion to Mpumalanga, but we will need to mobilise additional resources as well,” Cole added. “However, significant work is required in capacity building, particularly in improving financial management, billing systems and debt collection. Our finance workstream will address how to access necessary funds, overcome existing problems and develop the plans municipalities need. This will involve collaboration with a capability workstream focused on enhancing municipal capacity and solving related issues.
Mpotu suggested that the JET office be located in Mpumalanga, or that the chamber have some oversight, particularly for Mpumalanga-related projects. “This would ensure transparency and allow us to track where the money is going,” he explained.
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