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Agri SA welcomes the early announcement made by President Cyril Ramaphosa at the COP26 climate negotiations in Glasgow that South Africa has secured a multibillion-dollar deal with developed nations that is essential to curbing its high emissions and reducing its reliance on coal. 

The agreement entails a partnership between the European Union, Germany, France, the UK and the US with South Africa whereby South Africa is set to be supported in moving away from its high reliance on coal-generated electricity. 

Details of the deal are unclear at this stage, but apparently includes investment to the tune of R131 billion over the next three to five years in the form of grants, concessional loans and investment and risk-sharing instruments (including mobilising private sector funding). 

“The implications are clearly that the developed nations are seeking a rapid transition to renewable energy sources and that they see South Africa as a key role player on the African continent,” says Janse Rabie, Agri SA head of Natural Resources. 

Together with the recent announcement of 25 preferred bidders in the next round of South Africa’s renewable energy independent power producers procurement process (REIPPPP), the early announcement coming from Glasgow is a clear indication that South Africa is part of the global trend of moving away from fossil-fuel based energy generation towards cleaner renewable energy technology. 

“This has the potential for significant further capital investment in South Africa and is welcomed by Agri SA from an environmental point of view. High-value agricultural production areas have been particularly adversely impacted by coal mining and electricity generating activities in Mpumalanga and elsewhere,” says Rabie. “While Agri SA appreciates the significant implications this may have for our mining sector, the global move away from fossil-based electricity generation is inescapable and should be embraced by all role players.” 

While Agri SA appreciates the significance of the announcement, it has to be noted that the climate change negotiations at COP26 will only begin in earnest over the following fortnight. Agri SA will follow further developments and announcements that may impact the South African agricultural sector. 

Issued by Agri SA