Mini Budget: SAPVIA hails R2bn credit guarantee fund for transmission expansion

 

The South African Photovoltaic Industry Association (SAPVIA) today congratulated Finance Minister Enoch Godongwana for the announcement of a R2 billion Credit Guarantee Vehicle specifically for electricity transmission expansion, calling it a pivotal step in translating energy policy into financial reality.

Ahead of the speech, SAPVIA had called on the Minister to provide concrete fiscal and strategic pathways for financing the massive solar PV build-out, specifically requiring “confirmation of financial commitments and innovative funding vehicles” for critical transmission infrastructure.

Sim Khuluse, Technical and Policy Manager of SAPVIA, said the Minister heeded this call.

“The Minister’s announcement is a game-changer and a direct answer to the industry’s most critical request,” said Khuluse.

“The commitment of R2 billion to a Credit Guarantee Vehicle for transmission expansion is precisely the kind of innovative, blended finance mechanism we called for. It enables a new era of Public-Private Partnerships, which de-risk private investment without state guarantees, directly targeting the single largest bottleneck to connecting new capacity”.

The association views this measure as essential to support the ambition of the Integrated Resource Plan, noting that the structural reforms in energy are now key to lifting the nation’s growth rate.

Furthermore, the Minister’s acknowledgment of more than 2,220 megawatts of solar, wind and battery projects in development reinforces the momentum in the private generation sector.

“This is a blueprint for action. By establishing a clear funding pathway for the grid, the Minister has provided the stability and financial clarity required for private capital to flow at the speed and scale needed to secure South Africa’s energy future,” said Khuluse.

 

View the 2025 Medium Term Budget Policy Statement here

 

/ends