Foreign investment is ready to flip the switch in the energy crisis

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A lack of co-ordination and a cohesive approach prevents SA from making the most of abundant green resources

With companies around the globe highlighting SA as a top market for their renewable energy investment, the benefits of foreign direct investment and the importance of buy-in from all stakeholders to ensure sustainable growth and development of the renewable sector cannot be emphasised enough.

FDI also helps to create a competitive environment by breaking domestic monopolies and is critical for boosting economic growth and financial sustainability. However, for us to benefit from true sustainability not only when it comes to the generation of power but also economic development, a long-term view is crucial.The renewable energy investment space makes sense for a broad spectrum of foreign investors.

Policies must establish transparency and predictability to mobilise and channel the surge in investment. The government must be crystal clear in the laws it makes and potentially review incentive structures to attract and retain foreign investors. The struggle right now is there does not seem to be a clear voice that is not being lost in politically driven noise.

private sector, together with foreign stakeholders, has the capital, combined with the will and skill, to develop substantial renewable energy resources. We have the way and the means to shift the power crisis; it’s time the red tape that is hindering any real progress was removed.

 

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