Northern Cape Touted as Catalyst for Energy Transition and National Growth at Presidential Engagement

Presidential engagement between the National Executive and the Provincial Executive of the Northern Cape. Image credit: The Presidency

This is according to President Cyril Ramaphosa who delivered remarks at the opening session of a Presidential engagement between the National Executive and the Provincial Executive of the Northern Cape.

“I have said on a number of occasions that the Northern Cape is an economic pioneer and a frontier of innovation. Last year, there was a report published…that characterised the province as South Africa’s emerging powerhouse – quite literally.

“The Northern Cape is at the forefront of the clean energy revolution and is experiencing a significant surge in power projects, notably solar and green hydrogen,” the president said.

According to the African Green Hydrogen Alliance (AGHA) – which is made up of 10 African states, including South Africa – the green hydrogen industry has the potential to add between $66bn and $126bn to the GDP of the member countries over the next 25 years.

The government is already working on capitalising on this with the Boegoebaai Port and Rail Development named as one of the top seven infrastructure priorities for 2025/26.

“The province’s Green Hydrogen Masterplan is ambitious in both scope and potential – not just for the Northern Cape but for the national economy as well. It is also, a potential that can have an impact on SADC and even for our continent.

“In recent months I, together with a number of members of the National Executive, …have participated in multilateral discussions and business forums where we have been articulating our vision of South Africa being a leader in the renewable energy revolution.

“And to quote the (Pulitzer Centre) report, once the energy transition unfolds as envisaged, the Northern Cape could be the new heartbeat of the economy,” he said.

The president noted the strides made in the province becoming an industrial hub.

“This is supported by traditional industries like mining, but is being expanded through special economic zone development, industrial park development and major infrastructure developments, notably in port and rail,” he said.

Persistent challenges

President Ramaphosa acknowledged that while the province’s economy has been growing and creating jobs, “persistent challenges” remain.

“National Treasury’s 2024 provincial socio-economic review points to an increase in the percentage of people living in poverty and…a drop in the number of households with access to basic services like water. Unemployment, especially youth unemployment, remains high.

“Fiscal constraints are holding back a number of projects particularly at a municipal level, including for disaster response, asbestos eradication, land restitution, rural electrification and public housing.

“Much as we look at the potential and the progress that is being made, these challenges are still casting a shadow on our way to much better development,” he said.

To resolve some of these challenges, the president said the government will have to find ways to “support high impact projects” in the vein of the Northern Cape Industrial Corridor, the province’s R1bn housing programme and the Kimberley Big Hole precinct.

“We will also need to find creative funding mechanisms for major projects…for instance the Boegoebaai Harbour project. That is a project that will turn the fortunes of our province around.

“We need an urgent relook at the current delivery model to enable regulatory approval and investment activation,” he said.

The president emphasised that integrated planning between all three spheres of government “must involve State-owned enterprises as important stakeholders with significant capabilities”.

This integration must also align with the Medium-Term Development Plan.

“We are keen to discuss how the province is addressing the issue of climate change and its state of readiness to respond to natural disasters.

“Another challenge that we need to address is at the local government level…how we are able to improve our local government sphere and find ways of ensuring that this province is able to move up to a high level in terms of tourism.

“There is latent potential in this province where we can actually exploit the number of endowments that the Northern Cape has,” President Ramaphosa said.