External publications

Financing South Africa's energy transition: making the just aspects count more

Paris: IDDRI

South Africa’s transition to a low-carbon economy requires substantial infrastructure investments—modernizing electricity grids, deploying renewables, and enabling new sectors such as green hydrogen. However, infrastructure alone cannot achieve a just transition. Drawing on data from the Just Energy Transition Investment Plan (JET IP) and stakeholder consultations, the brief highlights a persistent imbalance: while it is expected that infrastructure absorbs a large share of grant funding due to its capital intensity, this has come at the expense of adequate support for social dimensions such as skills development, worker protection, and economic diversification in coal-dependent regions like Mpumalanga. Only 11.21% of tracked grants have been allocated to skills development, and less than 5% of Mpumalanga’s funding needs are met—the U.S. withdrawal from the International Partners Group in 2025 further strains the financing landscape. To mitigate socio-economic disruption and promote inclusive growth, the op-ed recommends scaling TVET programs, strengthening social protection systems, and increasing local participation in renewable energy value chains. Achieving a just transition will require recalibrating financial strategies to ensure that people and communities remain at the core of South Africa’s energy future alongside essential infrastructure.