SADC Gas Infrastructure Under the Spotlight

Department of Energy

The energy minister, Jeff Radebe, has asked whether the Southern African Development Community (SADC) has the necessary policy and regulatory framework to provide an enabling environment to exploit natural resources in the region.

The minister was speaking at a SADC ministerial workshop on regional gas infrastructure and market development in Johannesburg.

The workshop considered the role, infrastructure and market development requirements for the gas sector to take off in the region.

The minister also asked whether SADC had the gas infrastructure to transport the gas within the region to markets, sufficient demand to finance the necessary infrastructure development and whether funding will be available for a mega regional project.
 
As regards funding for gas infrastructure, the minister described accessing finance as a major challenge.

He added that “multilateral, private financial institution and Development Financial institutions have to be strategic partners who will provide the much needed funding to this project as well as providing a sound and innovative funding models to accommodate individual member state financial circumstances.”

The minister holds the view that natural gas reserves within the SADC region “present a significant opportunity for industrialisation that can boost economic growth, create much needed jobs and attract new investments in the region and increase significantly energy access.”

Sabinet Cape Town Office