President Cyril Ramaphosa has welcomed the enthusiasm of the Netherlands and Denmark in working with South Africa to strengthen economic relations, including exploring opportunities in green energy sectors.
“Both countries have shown great interest in becoming key trading partners in the green hydrogen and green energy sectors,” President Ramaphosa said on Tuesday at the SA-Denmark-Netherlands Business Forum, which was held in Pretoria during the State visit of the two countries in South Africa.
President Ramaphosa had earlier hosted Netherlands Prime Minister Mark Rutte and the Prime Minister of Denmark, Mette Frederiksen, who are on an official joint working visit in South Africa.
The visit seeks to solidify South Africa’s relationship with Denmark and the Netherlands in the areas of green hydrogen, renewable energy and just energy transition (JET).
President Ramaphosa said South Africa’s Transition Investment Plan brings about many trade and investment opportunities in the green hydrogen and green energy sectors.
“For South Africa, it is important to develop green hydrogen projects that contribute to the export market, while developing local economies,” President Ramaphosa said.
He said the engagements held during the visit are important for all three countries.
“It is significant that these engagements have involved government, business, labour and other social partners. It reinforces our view that these developments need to be inclusive and need to benefit all within society.
“South Africa today is well poised to attract and implement renewable energy projects and we have the capability to build some of the components that these projects will require. From solar to biogas, wind and battery storage, these investments are leading one of the most important growth industries in South Africa.
“The development of new renewable generation capacity – alongside the recovery of our existing fleet of power stations – is vital for our long-term energy security,” President Ramaphosa said.
The President said the reforms that are underway in the electricity sector will enable a more competitive, cost-effective and sustainable electricity market.
“We also need to acknowledge the investments that are breathing new life into mining, one of the country’s oldest industries and still one of its most important. South Africa also offers valuable investment opportunities in manufacturing, advanced manufacturing, infrastructure and innovation,” the President said.
Big investment announcements
During the engagements, companies and institutions from the Netherlands, Denmark and South Africa made investment announcements and partnerships.
A commitment of $1 billion was announced for the establishment of the SA-H2 Fund to mobilise green hydrogen investments.
The fund is supported by finance investment firm, Climate Fund Managers (CFM), and Invest International (II) of the Netherlands, Sanlam Limited of South Africa (Sanlam), the Development Bank of Southern Africa (DBSA), and the Industrial Development Corporation of South Africa (IDC), in collaboration with other strategic partners.
“As the South African government, we remain committed to creating a business environment that is conducive to supporting trade and investment,” President Ramaphosa said.
The visit also brought a substantial group of investors to South Africa to reinforce the high levels of cooperation and good relations between South Africa and two important European partners. – SAnews.gov.za
