South Africa’s energy transition stands at a critical juncture. The country has made major strides in renewable energy through the Renewable Energy Independent Power Procurement Programme (REIPPPP), yet electricity shortages and limited grid capacity continue to constrain growth.

Reforms such as the unbundling of Eskom and creation of the National Transmission Company (NTCSA) have opened new opportunities for public–private partnerships and independent transmission projects (ITPs). Realising this potential will depend on building investor confidence, managing offtaker risks, and expanding access to commercial and international finance.

While Chinese banks and companies have supported clean energy elsewhere in Africa, their role in South Africa remains limited. Differences in policy frameworks, regulatory barriers, and low risk appetite have held back deeper collaboration. Yet, there is clear scope to mobilise Chinese capital and technology to strengthen South Africa’s grid, support local manufacturing, and expand green finance.

The report highlights the opportunities, as well as challenges, for cooperation between South African and Chinese institutions - from co-financing and technology partnerships to adapting financial instruments that support transmission investment and localisation.

Report by the Overseas Development Institute