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  • ArcelorMittal SA CEO sees no way of avoiding longs closure, says wind down to start in Jan
    ArcelorMittal South Africa (AMSA) CEO Kobus Verster believes there is no immediate prospect of addressing the structural issues undermining the financial viability of the group's long-products business and tells Engineering News that the operations will begin ramping down during January, when they are scheduled to stop receiving steelmaking materials, such as iron-ore.
    Verster provided this bleak assessment in an interview following the JSE-listed company's announcement that it would be initiating consultations with unions and customers on the closure of its operations in Newcastle and Vereeniging, as well as ArcelorMittal Rail and Structural, which relies on intermediate products currently produced at Newcastle.
    Although the closure of certain parts of the long-products business has been mooted previously, including in 2019 and 2021, the announcement of the proposed wind down still came as a shock, even though the group swung from a R3-billion profit in the first half of 2022 to a R448-million loss during the same period this year.
    The loss was attributed largely to electricity load curtailment, implemented at energy-intensive firms at high stages of loadshedding, which had again been escalated to between Stage 4 and 6 when ArcelorMittal South Africa made its wind-down announcement.
    It also came amid increased strain between business and government, more generally. Automotive group Volkswagen issued a warning about the company's South African operations, citing loadshedding and logistics problems as key concerns, while platinum producers have indicated that job cuts are inevitable.
    Meanwhile, Minister in the Presidency Khumbudzo Ntshavheni, who was widely condemned for suggesting that the private sector was engineering the collapse of the government when commenting on a rand manipulation-related settlement, appeared to double down in an opinion piece penned for the Business Day.
    Verster spoke to Engineering News after having held in-person meetings with employees at the Newcastle mill, in KwaZulu-Natal, who make up about 2 600 of the 3 500 direct employees and contractors likely to be affected by the closures.
    He reported that contact had also been made with the leadership of the company's two recognised unions, being the National Union of Metalworkers and Solidarity, and indicated that formal negotiations were likely to start either later this week or early next week, with Section 189 retrenchment notices expected within days.
    In a statement, Solidarity questioned the timing of what it described as a "drastic" move by the company and lamented the fact that 3 500 employees and their families faced an uncertain Christmas season.
    It also argued that some of the reasons given for the proposed wind down, including loadshedding by Eskom and Transnet's high costs and unreliability were "nothing new" and suggested that consultations should have been initiated ahead of any announcement.
    However, Verster argued that, while high electricity and logistics costs and the unreliability of both utilities were aggravating factors, the competitiveness of the long-products business had been eroded by weak demand and a structural over-supply.
    It had been further amplified by what he described as an artificial competitive advantage provided to electric-arc furnaces (EAFs) because of government's prevailing scrap policy.
    The company highlighted the preferential pricing system for scrap in its official statement on the wind down, arguing the policy, together with a 20% export duty and the recent scrap export ban, had made it impossible for an integrated iron-ore-based producer such as Newcastle to be price competitive.
    While AMSA manufactured some value-added long products, the bulk of its 900 000 t/y longs production was low-margin material that was currently uncompetitive in a market where demand stood at about 1.8-million tons against Verster's estimate of there being yearly production capacity of four-million tons.
    The flat-products busines...
    6 min
  • 3 500 jobs at risk as ArcelorMittal mulls closure of longs units at Newcastle, Vereeniging
    Steel producer ArcelorMittal South Africa (AMSA) has indicated that it may close its long-products business, which could result in the loss of 3 500 direct and contractor jobs at its Newcastle and Vereeniging operations.
    In a statement, the JSE-listed company said the potential wind down had been precipitated by structural issues outside of its control, including:
    A 20% fall in demand over the last seven years to four-million tonnes, on the back of persistently low economic growth, limited infrastructure spend and project delays;
    Rising transport and logistics costs, compounded by rail-service disruptions, as well as escalating energy prices; and
    The prevailing scrap advantage over iron-ore, precipitated by the preferential pricing system for scrap, a 20% export duty, and the recently imposed ban on scrap exports, which had given electric arc furnaces an "artificial" competitive advantage over integrated mills beneficiating iron-ore.
    CEO Kobus Verster said the board and management decision to consider a wind down of the long-products business was reached after "all possible options" were exhausted, had not been "taken lightly" and was being pursued in an effort to place the rest of the business on a "sustainable financial footing".
    The company also acknowledged the potential negative impact on the regional and local economies in which the mills were located, in particular the Newcastle Works, which was a major source of economic activity and jobs in the KwaZulu-Natal town.
    The company said the wind-down would exclude the coke batteries at Newcastle, which would remain operative, producing metallurgical coke for use at the Vanderbijlpark Works, and for sale of commercial market coke to the ferro-alloy industry.
    A consultation process in accordance with Section 189(3) of the Labour Relations Act will be initiated with unions and "every effort will be made to manage down the number of jobs affected".
    "The conclusion and number of affected posts will be finalised within a detailed wind down implementation plan that is being developed," the company said.
    UNCERTAIN CHRISTMAS
    Trade union Solidarity responded with shock to the announcement that three long-steel plants could be closed, noting that Arcelor Rail and Structures was also potentially affected by the wind down.
    It said that 3 500 employees and their families were now facing an uncertain Christmas season.
    The union also questioned the timing of the "drastic" move, noting that loadshedding and Transnet's high costs and unreliability were "nothing new".
    Solidarity argued, therefore, that a consultation process with parties affected by the decision, including trade unions, should have preceded the announcement, noting that it was still awaiting the formal restructuring notices.
    "After receipt of the section 189 (A) notice, Solidarity will start to meet with members and will support them during all the processes that may follow."
    ArcelorMittal South Africa said it also intended engaging with its customers and suppliers "to minimise the disruptions to their business, as far as reasonably possible".
    "The company continues to engage directly with government," the company added.
    AMSA slumped to a R448-million loss in the interim period to June 30, a dramatic deterioration from the comparable period of 2022 when it reported a R3-billion profit.
    The poor performance was attributed to intense loadshedding during the period, which not only disrupted the group's operations, because of 41 Eskom instructions during the period for a curtailment of its electricity demand, but also downstream demand, as fabricators pulled back on production shifts.
    The group has also been vocal about the negative impact of the collapse of the Transnet Freight Rail service, which has been particularly acutely felt at the Newcastle Works, which is located far away from its sources of raw materials.
    Solidarity said the ArcelorMittal South Africa announcement was a signal that government's mismanagement of Stat...
    4 min
  • As Eskom outlines worsened prognosis, City Power confirms loadshedding schedule review amid 'Stage 8' uproar
    Having outlined an improving power system prognosis for the working week on Sunday, following the shock implementation of Stage 6 on Friday November 24, Eskom has since reported that the outlook has deteriorated and has declared Stage 4 until 5:00 on Saturday.
    A day earlier, a faster de-escalation in the intensity of rotational cuts was forecast, with Eskom indicating that, having reduced loadshedding to Stage 4 from 12:00 on Sunday, Stage 3 cuts would be implemented during the day until Friday, while being ramped up to Stage 4 during the late afternoons to navigate the evening peak and replenish emergency reserves overnight.
    On Monday, however, it said that increasing demand, combined with insufficient generating capacity and the need to manage emergency reserves, meant that Stage 4 loadshedding would be implemented for the remainder of the week.
    "Unplanned outages slightly increased from 15 386 MW to 15 424 MW of generating capacity, while the capacity out of service for planned maintenance increased from 5 617 MW to 6 280 MW.
    "Eskom's load forecast for the evening peak demand is 28 123 MW," the utility said in a statement.
    The loadshedding revision, came amid ongoing complaints in certain distribution areas, notably Johannesburg, that the duration and frequency of the most recent Stage 6 cuts had been exceeding those experienced during previous episodes at the same stage.
    Electricity Minister Kgosientsho Ramokgopa insisted that Eskom had not breached Stage 6 over the weekend, and said that City Power would be in a better position to respond to those Johannesburg residents who were complaining that their experience had been more reflective of a Stage 8-type intensity.
    The complaints coincided with City Power having assumed responsibility for loadshedding from Eskom, as well as a move by the distribution entity to refrain from implementing four consecutive hours of loadshedding at a stretch. Instead, it said it would limit the outages to two hours, while acknowledging that this could result in more loadshedding episodes over shorter intervals.
    The approach was implemented over the weekend, resulting in a social media storm as well as claims that the schedule was not properly implemented.
    During an interview on 702, Professor Sampson Mamphweli, who heads the energy secretariat at the South Africa National Energy Development Institute, asserted that City Power "did not implement loadshedding the way it should have been implemented".
    "The country was on Stage 6 loadshedding and City Power, at some point, they implemented what appeared to be Stage 8 loadshedding," Mamphweli said.
    CITY POWER PLANS REVISIONS & APP
    However, in an interview with Engineering News, City Power CEO Tshifularo Mashava denied that Stage 8 had been implemented but did confirm that there had been several instances where faults had occurred that made it impossible for areas to be reconnected in line with the published schedule.
    She also confirmed that City Power was reviewing its implementation schedule for Stage 5 and above, given that the frequent outages associated with the current schedule had proved to be more inconvenient than was the case when loadshedding of four hours was implemented with longer gaps in between.
    The revision, which would affect Stages 5 to 8, was currently being assessed by an independent consultant and a new "hybrid" schedule was likely to be implemented in the coming week.
    Under the hybrid system, the two-hour limit would be reserved for loadshedding Stages 1 to 4, with longer duration cuts implemented from Stages 5 to 8.
    Mashava also attributed some of the confusion over the recent weekend to inaccurate schedules being reflected on the popular EskomSePush App (ESP), which is widely used by South Africans to help with navigating loadshedding.
    She said these inaccuracies had been reported to ESP, but that City Power also planned to launch its own loadshedding App in 2024 in an effort to ensure ongoing and accurate communication.
    4 min
  • De-escalation in loadshedding forecast for coming week as country emerges from renewed Stage 6 trauma
    Eskom is forecasting a de-escalation in the intensity of rotational power cuts for the coming week following the traumatic return of Stage 6 on Friday November 24 and complaints in certain distribution areas, notably Johannesburg, that the duration and frequency of the latest cuts exceeded those experienced during previous Stage 6 episodes.
    The utility announced that loadshedding would be reduced to Stage 4 from 12:00 on Sunday November 26 until 5:00 on Monday November 27, when Stage 3 cuts would be implemented.
    It was then planning to sustain Stage 3 during the day for the rest of the working week, while ramping up to Stage 4 during the late afternoons to navigate the evening peak and replenish emergency reserves overnight.
    Some 2 500 MW of capacity was anticipated to return to service by Tuesday evening.
    While cautioning that the system remained vulnerable and that changes to loadshedding stages could, thus, be made at short notice, Eskom Generation's Eric Shunmagum said during a briefing that the utility was currently not expecting to implement any loadshedding during the day this coming Saturday and Sunday, but that Stage 2 was expected to be declared in the evenings on both days.
    Electricity Minister Kgosientsho Ramokgopa repeated that the latest bout of Stage 6 had been implemented because of a depletion of emergency reserves on the back of the failure of several large coal units earlier in the week and a 1 500 MW spike in demand, attributed to the heat-wave conditions affecting parts of the country.
    The Minister said that, by November 24, diesel stocks had fallen precipitously to only 28% at the Ankerlig open-cycle gas turbine, but had since been rebuilt to about 55%. Likewise, the upper dams at Eskom's pumped hydro schemes had declined to levels described as "critically low" on Friday, but had also been recovered to acceptable levels by Sunday.
    Unplanned outages remained elevated at 15 386 MW on Sunday, while capacity unavailable for planned maintenance was 5 617 MW. However, Ramokgopa stressed that this lack of plant availability had not been the main trigger for the Stage 6 declaration.
    He also insisted that Eskom had not breached Stage 6 during the weekend, amid numerous complaints by residents, especially in Johannesburg, that their experience over the period had been more reflective of a Stage 8-type intensity.
    He noted that Eskom had handed responsibility for loadshedding in Johannesburg to City Power and that the city's distribution entity would, thus, be in a better position to explain its approach to implementation.
    In a statement, City Power said that it was no longer implementing four consecutive hours of loadshedding and had instead spread out those hours to provide customers with two-hours of relief in between. As a consequence, more loadshedding episodes were taking place at short intervals, with some areas being cut up to five times in a 24-hour cycle.
    "We are aware that these frequent outages are very inconvenient, and some might even prefer to be loadshed for four-hours straight if it means they will not be off again in the next two hours," City Power said.
    It added that an announcement on further changes to the loadshedding schedule would be made in the coming two weeks.
    4 min
  • Black Friday loadshedding triggered by depletion of reserves and heat-wave demand spike
    Electricity Minister Kgosientsho Ramokgopa attributed the "unwelcome" ramp up in the intensity of loadshedding to Stage 6 to a need for Eskom to rebuild its emergency reserves that had been depleted by the failure of large coal units during the week and a 1 500 MW spike in demand, which was attributed to the heat-wave conditions affecting parts of the country.
    Eskom implemented Stage 6 loadshedding at midday on November 24, a period that coincided with the yearly Black Friday retail event, during which shoppers flock to malls to take advantage of price specials.
    The utility also indicated that it intended sustaining the same level of loadshedding intensity until 5:00 on Monday morning. During Stage 6, power is interrupted in some areas for between 8 and 12 hours in a day.
    Speaking at a briefing organised hastily after the declaration, Ramokgopa said that although unplanned breakdowns and partial load losses were elevated at 15 600 MW and planned outages stood at 5 800 MW, Eskom would not typically have needed to resort to Stage 6 loadshedding over a low-demand weekend period to offset such losses.
    However, demand on Friday had risen to 1 500 MW above that experienced on Thursday, which Eskom Generation executive Bheki Nxumalo attributed to a higher use of air-conditioners. This, coupled with a requirement to to replenish dam levels at the pumped storage schemes and rebuild diesel stocks, particularly at the Ankerlig open-cycle gas turbine, had led to the decision to implement Stage 6.
    The emergency generators had been used extensively during the week, when large units failed at power station such as Medupi, Lethabo, Duvha and Majuba.
    Nxumalo insisted that Ankerlig's diesel stocks were not being directly affected by the congestion at the Port of Cape Town and said the rate of replenishment was instead limited by the usual road-logistics constraints associated with the restocking of the facility.
    Ramokgopa also insisted that there had been no reversal in the recovery trend across the coal fleet and forecast that there would be "significantly lower levels of loadshedding" in December, even predicting that there would be some days when no loadshedding would be implemented.
    He acknowledged, though, that the loadshedding threat could only be eliminated with the introduction of new generation capacity, and said actions were being taken to unlock private capacity and resume public procurement.
    However, no firm date was provided for the resumption of public renewables procurement, which was initially scheduled to resume in the middle of 2023, but which has been delayed because of ongoing uncertainty over grid allocations.
    A further system briefing would be held on Sunday.
    3 min
  • Renewables bodies await publication of Eskom's curtailment framework
    The associations representing the wind and solar sectors as well as independent power producers (IPPs) more generally are eagerly awaiting a proposed curtailment addendum to Eskom's Grid Connection Capacity Assessment (GCCA), which is published yearly to provide connection visibility for new utility scale generators.
    The latest GCCA was published at the end of October and states that, while there is still 19.9 GW of capacity available, all capacity has been absorbed in the Eastern, Western and Northern Cape provinces, as well as Eskom's Hydra Central grid area, which borders the Cape provinces and the Free State.
    It was published in the absence of a highly anticipated new framework outlining Eskom's approach to curtailment, which has potential to unlock significant capacity in areas that have previously been shown as having no more capacity to connect.
    Curtailment involves the active reduction of output from wind and solar plants in response to system security needs or temporary transmission capacity constraints and is widely used by system operators globally to introduce variable renewable generators and optimise the use of the grid. It follows a logic that can arguably be likened to the one used by airlines when seating is overbooked ahead of a scheduled flight in an effort to ensure it is full in a context where some bookings are likely to fall away.
    Eskom has belatedly aligned itself to this view, having indicated that curtailment will be used even when additional grid capacity is added in areas of constraint, as it would yield the most cost-effective outcome and is, thus, fully aligned to the least-cost criterion embedded in the country's Grid Code.
    The lack of such a framework came to the fore painfully last year when none of the 23 wind projects that bid for a 3.2 GW public-procurement allocation was selected to proceed on the basis of grid depletion.
    Eskom has confirmed that a curtailment addendum to the GCCA will be published and has indicated that the framework should unlock 4 GW of connection capacity immediately in the wind-potent Eastern and Western Cape provinces.
    However, it has not yet indicated when its curtailment addendum will be published. This, despite confirmation by the IPP Office that the framework is required before it can announce the next public procurement round, which was initially scheduled for mid-2023.
    South African Photovoltaic Industry Association (SAPVIA) CEO Dr Rethabile Melamu describes the release of the GCCA without the curtailment framework and the associated connection capacity that would be unlocked in each supply as "not ideal".
    "The understanding is that the curtailment framework will unlock additional connection capacity in the constrained greater Cape area, which should have informed available capacity," she says, while also noting that the framework will not immediately embrace solar photovoltaic (PV).
    South African Independent Power Producer Association chairperson Brian Day argues that Eskom's previous approach to calculating grid capacity, which limits it to a single short period of constraint across the year, sub-optimises the grid potential.
    "I can't quite understand why we haven't engaged on the curtailment approach long ago," Day adds.
    He says curtailment rules will unlock significant capacity, and reveals that business is actively engaging to propose commercially viable rules.
    South African Wind Energy Association (SAWEA) CEO Niveshen Govender says he is pleased that Eskom is considering a curtailment framework that will expand the grid capacity in the short term.
    "The curtailment framework needs to be well-considered to ensure positive investment conditions for new energy generation infrastructure projects in the South African market."
    The associations are also keen for consultations on the framework, with clarity needed on the apportionment of curtailment costs.
    Eskom has raised eyebrows with its recent proposal that compensation for curtailment be a contractual matte...
    6 min
  • SAAFF warns of rising port-congestion costs
    The South African Association of Freight Forwarders (SAAFF) estimates that the current congestion at South Africa's ports is costing at least R124-million a day in direct and indirect costs.
    With 96 vessels waiting at anchorage outside the country's commercial ports, CEO Juanita Maree estimates the direct daily costs to be R98-million, comprising both sunk costs and congestion surcharges. The indirect costs associated with impeding the movement of goods valued at about R7-billion, meanwhile, are estimated by SAAFF to be at least R26-million.
    Transnet has confirmed that the number of vessels waiting outside Durban Container Terminal (DCT) Pier 2, the country's largest container terminal, stood at 16 on November 20 and that the backlog was currently only forecast to be fully cleared by the end of February.
    The State-owned company also confirmed that during the period of inclement weather in October more than 20 vessels had waited at outer anchorage at Durban for up to 18 days.
    Maree reports that there has been an improvement at the Cape Town and Port Elizabeth harbours, but that the Durban terminals remain severely delayed, with vessels at anchorage for about nine days.
    Shipping lines have responded by imposing congestion surcharges and there are also reports that they are diverting South Africa-bound cargo to Port Louis, in Mauritius, which is adding to lead times and imposing additional supply-chain costs, which will ultimately be carried by domestic consumers.
    Transnet chairperson Andile Sangqu has warned that the problem is complex and cannot be overcome immediately, owing to serious equipment and maintenance backlogs.
    The group has, however, received permission from the National Treasury to accelerate procurement and Transnet Port Terminals (TPT) is aiming to procure additional rubber-tyred gantries, straddle carriers and ship-to-shore cranes for delivery between April 2023 and April 2025.
    In addition, it would continue to pursue various private sector partnerships across the port system with a due diligence under way related to a partnership with International Container Terminal Services Incorporated, of the Philippines, which has been named as the preferred bidder for a 25-year joint venture with TPT at DCT Pier 2.
    Maree says a greater sense of urgency and greater collaboration is required to address the immediate crisis.
    "We must improve operational efficiency and increase throughput, or else the trade, transport, and logistics industries will continue to curtail desperately needed economic growth for South Africa."
    3 min
  • New range of electric two-wheelers goes on sale in SA as EVs become 'highly attractive'
    It is not only the electric car that is challenging the status quo of the global automotive industry, but also the electric motorbike.
    VMoto Soco South Africa (VSSA) is a new company that aims to bring the VMoto Soco range to the local market.
    VSSA brand manager Tim Eccles tells Engineering News Online that the company is a new division of the FI Group.
    "The FI Group is a collection of companies that span a few sectors, each with a significant importing aspect - mostly from China, but also from the UK.
    "While not automotive-specific, the FI Group's businesses require large warehousing facilities, strong logistical expertise, and a varied staff, many of whom are engineering and technical-minded.
    "We also have a deep interest in all things automotive, and we tend towards the leading edge of innovation," notes Eccles. "And the speed of progress in electric vehicles (EVs) has really piqued our interest."
    He explains that VMoto Soco is a joint venture (JV) between Australian-owned VMoto and Chinese EV manufacturer, Super Soco.
    The companies in 2020 formalised their JV, "leveraging their strategic partnership to innovate, manufacture and distribute electric motorcycles and scooters globally".
    Eccles notes that the South African market is becoming increasingly flooded with EV brands, many of them startups.
    "We wanted to ensure that the brand we chose had longevity and scalability. It needed to be globally established, tried-and-tested, and with a strong view to the future.
    "VMoto Soco fits the bill - they are a European top-seller. They also have a versatile range, with the promise of staying at the forefront of this rapidly developing industry. They're also beautifully designed and the build quality is excellent."
    Eccles says the VMoto Soco range starts with the small, entry-level e-scooter, the CUx, priced at R53 100, including VAT.
    "The TC Wanderer (single battery option) is our most affordable e-motorbike, currently available at a launch price of R77 850. The dual battery option is R103 950."
    "The CUx is perfect for short commutes, as a student's first wheels, or a holiday house run-around. At the opposite end is our CPX Pro scooter, which offers supreme urban performance for more demanding riders," says Eccles.
    "Our two motorcycles - the TC Max and TC Wanderer - differ slightly too, with the TC Max offering higher power and top speed, but the TC Wanderer offering greater range. It really depends on what the rider needs."
    As recharge costs are somewhere between R6 and R15, depending on the model, there are long-term savings to go electric, says Eccles.
    "Also, service costs are minimal and removable batteries means charging convenience, while it also adds a layer of security.
    "But, while economy does enter into the equation, we are positioned more as a premium offering, where riders can experience performance, reliability and cutting-edge innovation," notes Eccles.
    Each bike is sold with its own fast charger.
    It takes roughly 3.5 hours to charge a single battery.
    All chargers fit standard South African plug sockets.
    The range between models differs from 65 km to 110 km on a single charge.
    "Our CPX Pro and TC Wanderer models have a dual-battery option, so they offer the highest range," says Eccles.
    "Real-world range depends on the demand placed on the battery from the rider. This includes average speed, rider weight, acceleration and climbing angle."
    "When it comes to adopting new technology, there is always inertia from the market in terms of both demand and supply," adds Eccles.
    Early adopters are often ready to leap, driven by the thrill of innovation, novelty and exclusivity.
    But, the wider audience often requires some barriers to fall away before they act.
    Some of these include the lack of EV charging infrastructure; limited vehicle range; and the look of the vehicle or bike.
    "We feel that both the technology and market have arrived at a point where these barriers have toppled sufficiently for EVs to be a highly attractive ...
    5 min
  • New $1.8bn-plus concessional loan package signed to support JET-IP
    South Africa has confirmed the signing of three new policy loan agreements - worth more than $1.8-billion - in support of the country's Just Energy Transition Investment Plan (JET-IP), the implementation plan for which was approved by Cabinet last week.
    The dollar- and euro-denominated loans are described as "concessional' and have been provided directly to the National Treasury for general budget expenditure purposes by the World Bank, Germany's Kreditanstalt für Wiederaufbau (KfW), and the African Development Bank (AfDB).
    The $1-billion, 15-year World Bank loan includes a five-year grace period and carries an interest rate based on the six-month Secured Overnight Financing Rate (SOFR), which currently stands at 5.32%, plus 0.95%.
    The current rate payable on a South African ten-year bond is about 10%.
    The $300-million, 12-year AfDB loan is priced at the six-month SOFR, plus 1.22%, with a two-year grace period.
    The 500-million, 12-year KfW loan, meanwhile, has been extended at a fixed 4.4% interest rate and also includes a three-year grace period.
    The National Treasury said the KfW and AfDB loans followed their partnership with the World Bank on the second Development Policy Operation to support South Africa's commitment to the just transition for a low-carbon and resilient economy.
    "The financing facilities from the three development institutions are in line with the National Treasury's funding strategy to diversify its funding mix for international borrowing and access concessional financing instruments offered by the development partners to support government's key reforms under climate change and the electricity sector.
    "These facilities also enable the National Treasury to raise funding at very affordable rates which help to reduce the government public debt," the National Treasury said in a statement.
    In November 2022, the French and German development banks, AFD and KfW respectively, extended 300-million apiece in support of the JET-IP; these were also extended in the form of policy loans to the National Treasury.
    The announcement of the latest JET-IP-linked loans follows a reaffirmation by the International Partners Group (IPG) of its support of South Africa's JET-IP.
    Initially comprising France, Germany, the UK, the US and the European Union, the IPG was expanded earlier this year to include Denmark and the Netherlands and the total financing commitment has also increased to $9.3-billion from $8.5-billion.
    The IPG also announced that the overall grant financing component had been increased to $713-million, representing a 116% increase from the amount committed at COP26 in 2021.
    The IPG also welcomed the progress that South Africa had made on its JET-IP implementation plan, which was approved by Cabinet at its most recent meeting.
    The plan will guide implementation of the far larger JET-IP, which was itself approved ahead of COP27 last year, and indicated that investment of about $99-billion will be required to support South Africa's transition to greater climate resilience over the coming five years.
    The JET-IP sets out investments that South Africa will need to make in electricity, new energy vehicles and green hydrogen to ensure its climate resilience in line with decarbonisation targets outlined in the Nationally Determined Contribution lodged with the United Nations.
    4 min

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