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JIMMY MOYAHA: South Africa is making significant strides towards a sustainable energy future. As part of the Just Energy Transition (JET), we were the inaugural nation globally to test the JET initiative.
Additionally, we’ve made remarkable progress in enhancing South Africa’s energy transition. Our commitments and related projects are in place, and we will receive an update on our current progress regarding JET, particularly focusing on the portfolio management unit within The Presidency that oversees these efforts.
Read: How SA’s innovative new climate act and labor legislation can align to foster a just transition.
Joining me today is Joanne Yawitch, director of the project management unit for JET, to discuss their work and our achievements thus far.
Joanne, it’s a pleasure to have you on the show. Thank you for joining us. Could you give us a brief overview of the responsibilities of the project management unit in its current structure?
JOANNE YAWITCH: Thank you, Jimmy. It’s a pleasure to be here with you and your audience. The JET Project Management Unit, located in The Presidency, is primarily tasked with ensuring effective implementation of South Africa’s Just Energy Transition Investment Plan (JET IP).
This plan covers the period from 2023 to 2027 and lays out the essential actions needed for our country to reduce emissions and establish a diversified economy, ultimately paving the way for green growth within a varied energy sector. This encapsulates our work.
We partner across government, collaborating with multiple departments that support the Just Energy Transition within their mandates.
Our main responsibilities include mobilizing funds, guaranteeing their efficient deployment, and doing so with a just and inclusive approach, considering the needs and interests of local communities.
JIMMY MOYAHA: In terms of community needs, Joanne, could you outline the fundable projects organized through your project management unit, especially regarding their potential impact on South African citizens?
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JOANNE YAWITCH: Absolutely. We run a platform known as The Funding Platform. This serves as a matchmaking tool rather than a conventional fund, designed to facilitate applications from community worker projects and small, medium, and micro enterprises (SMMEs) for funding. The projects that we consider most viable or ready receive backing from various stakeholders supporting the JET IP.
Currently, we have 21 projects on our funding platform. So far, we’ve mobilized over R70 million from various grant-makers and investors. These projects include early childhood development centers in coal-affected regions and green economy SMEs led by women and youth, among various other initiatives.
We’ve identified that offering sufficient project preparation is crucial to making these initiatives easily fundable.
JIMMY MOYAHA: Let’s highlight the financing aspect. Clearly, securing funding is critical for projects of this scale. The platform evidently plays an essential role in connecting suitable funders with appropriate projects.
From the European Union, we initially received a commitment of €4.7 billion, and as of October this year, further commitments totaling €12 billion have been announced, bringing the total to nearly €17 billion to support our green economy and the initiatives under the Just Energy Transition.
How is this funding distributed? How does it fit into the ecosystem and assist in financing larger projects our country requires?
JOANNE YAWITCH: The distribution of these funds is mainly the responsibility of the donors or lenders, in consultation with National Treasury and the government departments through which the funds are allocated.
In the case of the EU, through their Global Gateway Programme, they concentrate on three areas: the Just Energy Transition, backing the critical minerals value chain in South Africa, and encouraging the development of a pharmaceutical sector within the nation.
Hence, these funds address various sectors, not solely benefiting the JET.
Listen: SA looks to Germany and the UK for loans to support the Just Energy Transition.
The EU has been pivotal in backing SMME initiatives and various skills development efforts related to JET, along with providing essential technical assistance and capacity support throughout the system—from government agencies to research institutions and NGOs.
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Read: EU commits €11.5bn to finance South African energy and transport.
Donor countries, including the UK, Denmark, Netherlands, France, and Germany, each have extensive programs in South Africa. They strive to allocate funds in accordance with the priorities set forth in the nation’s plan.
For us, the main priorities include backing community and worker organizations, thereby facilitating a just transition.
Skills development remains a focal point.
At the municipal level, we are working with Salga (South African Local Government Organization) to identify strategies for upgrading and modernizing the distribution grid across the country.
Moreover, we must tackle the pressing issue of supporting Eskom with enhancements to transmission systems while aiding the transition to renewable energy as coal power plants are phased out.
This provides insight into some of our priority areas.
Read: R1.3tn allocated for infrastructure: Can SA meet the challenge?
JIMMY MOYAHA: Establishing a supportive ecosystem for South Africa’s JET endeavors is part of the mission of the project management unit, alongside ensuring identified projects acquire funding and become bankable.
This concludes our discussion. Thank you for sharing these insights and your time.
We had Joanne Yawitch, head of the JET project management unit within The Presidency of South Africa, with us to talk about the advancements and future pathways for their projects.
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