Ramokgopa refutes 'conflict of interest' claims in Oberholzer scoring R9.5bn battery storage tender
Ramokgopa told MPs on Wednesday there was 'no substantial evidence' to back up allegations of 'conflict of interests' between Eskom and Oberholzer's Mulilo Energy scoring a R9.5bn battery-storage tender, as part of the utility's renewable energy programmes.
Ramokgopa was responding to oral questions from MPs in the National Assembly on Wednesday during the appearance of cabinet ministers in the economic cluster.
MK Party MP Sipho Mbatha, who had put the question to Ramokgopa, had made the allegation of a conflict of interest in the deal between Eskom and Mulilo Energy.
The business transaction has also been slammed by other parties such the EFF, the Black Business Council, and trade unions such the NUM.
But Ramokgopa stuck to his guns, telling lawmakers that no evidence of a conflict of interest or any form of wrongdoing had been found during Eskom's due diligence on the Mulilo transaction.
'Mulilo did comply with the requirement of public disclosure. They made it known to the independent procurement office that its chairperson is a former COO of Eskom.
'And in that regard the IPP office then initiated a process where we sought legal advice from an independent assessor and a determination was made that there was no conflict [of] interest and therefore the process can unfold as determined, and that's how that process then culminated in us issuing the preferred bidder status,' Ramokgopa explained.
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Daily Maverick
24 minutes ago
- Daily Maverick
Mozambique's Cahora Bassa Dam expansion plan offers Eskom a fresh clean energy option
The Mozambican government-owned hydroelectric power company is looking at Eskom as a potential customer for the additional 1,245MW generation capacity that it plans to add to its existing plant at the Cahora Bassa Dam. Eskom is already the biggest client of the Hidroeléctrica de Cahora Bassa (HCB), the company that operates the Cahora Bassa Dam plant, with about 60% of the power generated at the dam travelling more than 1,400km on two parallel power lines between Cahora Bassa in Songo, northern Mozambique and the Apollo substation near Pretoria. Cahora Bassa has a 2,075MW generation capacity, and the Mozambican government is in discussions with the World Bank to raise money for the expansion of the dam's northern bank and the construction of a new hydropower plant at the Mphanda Nkuwa Dam. The latter dam is downstream from Cahora Bassa, also along the same Zambezi River, and is expected to generate 1,500MW of clean energy. The expansion of the Cahora Bassa Dam scheme has received the backing of the World Bank and will increase generation capacity through the installation of three turning turbines – each generating 415MW. The projects are estimated to cost more than $6-billion. With Eskom under pressure to keep the grid stable while trying to meet obligations to use cleaner energy sources, the power utility's spokesperson Daphne Mokwena told Daily Maverick that HCB's plans were in line with Eskom's mandate. 'One of Eskom's mandates is to ensure a reliable, sustainable and clean energy grid for the country. Eskom will review all HCB plans for future growth and give feedback once all the relevant details have been presented,' she said. Mozambique has its own challenges as it has to meet its domestic electricity demand and has set a target of 2030 to meet this need. According to the World Bank 2023 figures, only 36% of the Mozambican population had access to electricity, compared with 87.7% in South Africa. In February 2024, Bloomberg reported – based on an unpublished energy transition strategy – that the Mozambican government intended to end the partnership with Eskom when the contract expired in December 2030. Eskom said talks on the matter were yet to be concluded. Said Mokwena: 'As the discussions are ongoing, there has been no conclusion on this matter. Eskom is therefore not able to comment on this question at this stage'. However, Mokwena stressed that while Eskom continues to buy power from HCB, the utility 'will continue to rely on its own generation fleet'. 'Notably, the returned 800MW from Medupi Unit 4, the additional new 800MW capacity from Kusile Unit 6, and the planned return of 930MW from Koeberg Unit 1 by August 2025 will significantly boost available capacity,' she said. The 50-year-old Cahora Bassa Dam scheme is a Mozambican government flagship and was showcased to World Bank President Ajay Banga, who visited Mozambique last week. Banga was the guest of Mozambican President Daniel Chapo, who is driving the development of Mozambique's untapped energy sources. The 48-year-old Chapo (the governing party, Frelimo's, candidate) was elected president following the disputed October 2024 elections. The development of the war-ravaged country is at the centre of his plans. Ambitious renewable energy plans Chapo said the main objective of the World Bank's visit was to identify areas of possible investment in the country's energy plans. 'Mozambique has a geographic location that allows for wind farms, so we are currently working with the World Bank Group, through the IFC (International Finance Corporation) which is part of the World Bank Group. 'We can have a public-private partnership, who can come and invest in this entire energy matrix we're talking about – producing electricity through hydroelectric plants, solar plants, gas plants, and also wind farms,' said Chapo. Speaking after a tour of Cahora Bassa, Banga said Mozambique had the potential of becoming the 'energy powerhouse' of southern Africa. 'Frankly, in this part of Africa, nobody has the capacity or capability to do what can be done with the assets of this country. 'We are discussing with the government of Mozambique the idea of investing in another 1,500MW downstream from (Cahora Bassa). 'And then in the meantime, we're also doing some investing in solar capacity, 400MW. And then (Chapo) has some master plans, which I think are even more interesting in terms of adding more capacity (at Cahora Bassa) and renovating this plant and then adding further downstream,' said Banga. Cahora Bassa is a major contributor to the Mozambican economy. It generated $547-million in revenue in 2024 and contributed $302-million to the southern African country's fiscus in the same year. HCB CEO Tomás Matola said that while they continued to make a major contribution to the Mozambican economy, the age of the plant was a threat to its revenue plans. He told the World Bank's Banga that they needed to refurbish Cahora Bassa's generators to future-proof the plant. Said Matola: 'From the supply side, our big challenge is because of the age of our equipment. It is 50 years old, so all our equipment is obsolete, so now we need to do a deep rehabilitation of our power plant and substations.' Southern Africa presently has a shortage of 10,000MW, while Mozambique plans to increase its power generation for the benefit of the domestic and the regional market. 'In Mozambique, we do have a challenge of electrification of all the country… So we have increasing demand from the domestic market, but also the regional market,' said Matola. 'As we need to diversify our power matrix, we have a project for producing 400MW of photovoltaic power. We believe that by 2027, we can start building this project,' said Matola, adding that HCB's vision was to generate 4,000MW of clean energy by 2034. The plans for the 400MW solar power plant include the construction of two solar farms with 200MW generation capacity each. Climate change threat to cleaner energy projects While there is a global drive towards renewable energy and less reliance on fossil fuel energy sources, such as coal, cleaner energy sources are not without challenges. For instance, Cahora Bassa's generation capacity has been adversely affected by the drought that has gripped countries along the Zambezi River. The dam's levels are currently at 25%, meaning that water management techniques have to be applied to maintain the flow through the five generators – thus reducing power generation. According to engineers at HCB, that is the lowest level the dam has reached in its 50-year history. That means Eskom has been getting less power from the plant. This was confirmed by Eskom spokesperson Daphne Mokwena, who said that the power utility had received 45% less electricity from Cahora Bassa than the previous year. 'Cyclically, southern Africa is affected by droughts, and Eskom's supply from HCB has been affected. During the droughts, Eskom relies on its own generation fleet. 'Eskom is receiving less power from HCB as compared to the previous year, due to the drought currently affecting the SADC region. The average loss of power is 45% when compared to last year,' said Mokwena. Cahora Bassa Dam is built on the Zambezi River, which flows through six countries – namely Zambia, Angola, Namibia, Botswana, Zimbabwe and then joins the Indian Ocean in Beira, northern Mozambique. The drought in the SADC region has seen levels at Kariba Dam – between Zimbabwe and Zambia – reach an alarming level of about 11% last year. According to the Zambezi River Authority, the Lake Kariba water levels were sitting at 24.3% on 14 July 2025, compared with 11.5% recorded on the same date in 2025. In July 2023, Kariba's levels were at 31%. However, while the levels have improved at Kariba, the benefits have yet to be realised downstream at Cahora Bassa, as the former is not releasing much water as it is still recovering from the lower levels. Fast facts on Cahora Bassa The construction of the dam took place between 1969 and 1974, resulting in the biggest hydroelectric power plant in southern Africa. Power is generated by water passing through five vertical generator units – each producing 415MW and a total of 2,075MW. Eskom is HCB's biggest client, buying 58% of the power generated at the plant, while 39% goes to the Mozambican state-owned energy company – 3% is sold to the Zimbabwean power utility. The staff complement at HCB consists of Mozambican citizens, with 741 permanent workers and 685 seasonal workers. Another 2,000 indirect workers benefit from the plant, through its suppliers. *Source: Hidroeléctrica de Cahora Bassa (HCB) World Bank Group structure The World Bank Group comprises five organisations that specialise in differing areas, namely: The World Bank, whose official name is the International Bank for Reconstruction and Development, which lends to low- and middle-income countries; The International Development Association, which also lends to low-income countries The International Finance Corporation, which lends to the private sector; The Multilateral Investment Guarantee Agency, which 'encourages' private companies to invest in foreign countries; and The International Centre for Settlement of Investment Disputes, which mediates disputes between private investors and foreign countries. DM Sibusiso Ngalwa is a journalist, a cabbage farmer and a breeder of boer goats. His trip was sponsored by the Hidroeléctrica de Cahora Bassa (HCB), the company that operates the Cahora Bassa plant.
IOL News
5 hours ago
- IOL News
South Africa's G20 Meeting: Tackling illicit financial flows and advancing social protection
The G20 Development Working Group Ministerial Meeting commenced with a compelling keynote address delivered by Minister Maropene Ramokgopa, Minister in the Presidency for Planning, Monitoring & Evaluation. Image: Department of Planning, Monitoring & Evaluation/ Facebook It was a busy week for the Department of Planning, Monitoring and Evaluation (DPME) with the Fourth G20 Development Working Group (DWG) Meeting and Ministerial Meeting, focusing on the need to tackle illicit financial flows, strengthen domestic resource mobilisation, advance inclusive social protection systems and align development finance with the Sustainable Development Goals (SDGs). At the ministerial meeting, Minister Maropene Ramokgopa said South Africa's Presidency placed particular emphasis on two critical enablers: the mobilisation of domestic resources through curbing illicit financial flows and the acceleration of universal, inclusive, and adequate social protection. 'With just five years remaining before the 2030 deadline, only 52.4% of the global population is effectively covered by at least one form of social protection. In Sub-Saharan Africa, that figure stands at a mere 13%, compared to 86% in North America and Europe. The disparity is stark. Social protection, in particular social security, is not a luxury. It is a fundamental human right and a cornerstone of resilient societies,' Ramokgopa said. She highlighted their pride in the 16 points of the Call to Action, which advocate for expanded Social Protection coverage. This expansion aims to accelerate progress towards the SDGs, particularly in addressing poverty and hunger, by increasing social protection coverage for at least one category by 2 percent annually in countries currently lagging. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading Ramokgopa said they are also committed to drawing further on the advances and advantages of digitalisation while being mindful not to exacerbate inequalities through the digital divide. 'To uphold our commitments and transform discussions into meaningful action, we have empowered the Social Protection Interagency Board (SPIAC-B), in partnership with the ILO, to monitor and annually report to the G20 DWG on the progress made in realising this call to action,' Ramokgopa said. Ramokgopa said investment in social protection remains dangerously low. 'We need to shape all of society to understand social protection as an investment in human capital, which can be leveraged as a tool for inclusive economic growth and transformation of the economy and labour market,' Ramokgopa said. Ramokgopa added that while the demand for SDG financing escalates, official development flows and domestic fiscal capacities remain insufficient. Blended finance has mobilised only $213 billion to date, with the least-developed countries receiving a paltry 6%. 'This underscores the imperative to strengthen domestic resource mobilisation and to curb illicit financial flows (IFFs) decisively,' Ramokgopa said. 'IFFs remain a critical challenge for many countries, especially in developing and low-income countries. Although inherently difficult to quantify, estimates suggest that IFFs amount to around $1.5 trillion annually.' Ramokgopa presented a framework of high-level principles designed to serve as a foundation for systemic action, including: Advancing global financial transparency; Promoting integrity and the exchange of financial data; Establishing equitable tax systems; Enhancing multilateral cooperation and enforcement mechanisms; Investing in the capacity of revenue authorities and financial institutions; Strengthening procurement transparency and accountability; and Promoting technological innovation to track, trace, and recover stolen assets. Delivering opening remarks at the development working group meeting, Ramokgopa emphasised the importance of inclusive growth, social protection, and sustainable financing. 'This week is crucial for the advancement of our shared commitment to confront global development challenges. We gather not just as Ministers and officials, but as stewards of a common ambition to build a world in which progress does not bypass the most vulnerable,' Ramokgopa said. The Development Bank of Southern Africa (DBSA) hosted a side event on day one, focusing on financing sustainable development and global public goods. The discussion explored innovative financing solutions, collaborations, and consistent policies to address the needs of the most vulnerable communities. Practical implementation of development goals was the focus of other sessions. The United Nations Development Programme (UNDP) reviewed the outcomes of the Fourth International Conference on Financing for Development, while the United Nations Environment Programme (UNEP) showcased its RELISA initiative as a practical example of sustainability.
Mail & Guardian
2 days ago
- Mail & Guardian
Operation Vulindlela: Big on policy but low on results
Mixed bag: President Cyril Ramaphosa's Operation Vulindlela is stronger on policy than implementation. Photo: GCIS The government's flagship economic reform programme, Operation Vulindlela, has registered modest progress in the second phase of its roll-out — particularly in visa reform — but faces mounting criticism for delays in key infrastructure areas and a lack of transparency in outcomes and expenditure. The latest These visa reforms aim to 'attract skills, investment and tourism through a streamlined and modernised visa system'. The home affairs department has also upgraded its digital verification system to enable remote authentication and reduce downtime — a step toward building a digital identity system. Yet the gains made in visa systems are in contrast to widespread delays in fixing constraints in water and sanitation, electricity and freight logistics. Most work so far has been legislative, with little tangible implementation. Operation Vulindlela, initiated during President Cyril Ramaphosa's first term, aims to boost economic growth through structural reform. Ramaphosa has touted the operation as a key achievement, and in his latest 'The reduction in load-shedding over the past year was supported by the reforms we introduced to unlock private investment in electricity generation, while reforms in the telecommunications sector have brought down the cost of mobile data,' he wrote. Launched in May after cabinet approval, But despite policy work being under way in several areas — with the Electricity Regulation Amendment Bill, the Water Action Plan, the Digital Transformation Roadmap and the Local Government White Paper among the documents drafted — implementation remains limited. The progress report itself concedes that of the seven priority areas in phase two, only visa reform has moved into tangible outcomes. The electricity sector reform includes the establishment of the National Transmission Company of SA, which will eventually separate power utility Eskom's grid from generation and distribution. The government has also finalised a national wheeling framework to enable third-party access to the grid. Yet, the new transmission company still awaits licensing as a market operator. The National Energy Regulator of SA is also finalising market codes for private wholesale. Legal adviser and social activist Nkanyiso Ngqulunga was scathing in his assessment, saying Operation Vulindlela represents an acceleration of neoliberal policies that are proving counterproductive. 'It has been a complete failure. The unbundling of Eskom has not yielded any positive results but rather put the country's energy generation into the private sector,' Ngqulunga said, adding that the reforms have not attracted the promised investment. 'It hasn't attracted investment as intended. We are implementing policies that have been proven to fail — allowing the private sector in with the hope that it will boost the economy is counterintuitive.' Ngqulunga believes the government should focus on building state capacity and investing in public infrastructure. 'We need to unlock opportunities by empowering public assets,' he said. 'At a time when the government is underperforming, geopolitical tensions are high and tariff wars are growing, it's misguided to think these reforms will attract investment.' In logistics, a new Transnet Rail Infrastructure Manager division has been created to modernise operations and enable private operator access. In December, the rail, port and pipeline parastatal released network access tariffs and received 98 slot applications from private freight operators. Conditional awards will be announced by 15 August. Ntokozo Buthelezi, an economist and researcher, is concerned about the Vulindlela initiative's accountability. 'I remember from the budget speech, the minister mentioned phase two and I wondered what happened to phase one,' she said, adding that she found it to be 'vague' with regard to outcomes and money spent. 'We don't know what happened, how much was spent and what the outcomes were. There is so much secrecy — we have no clue as the public on how investment and loans are spent by the government,' she said, also criticising the absence of oversight. 'They don't tell us much. It's just numbers — billions here, billions there — but no tangible outcomes.'
