Chamwe Kaira
President Cyril Ramaphosa has directed that a fully independent transmission system operator be created as part of the restructuring of South Africa’s electricity sector.
Eskom Holdings SOC Limited informed noteholders on the Johannesburg Securities Exchange (JSE) that the government will proceed with plans to establish a separate, state-owned transmission entity. The new entity will own and control transmission assets and operate the electricity market.
Ramaphosa made the announcement during his state of the nation address on 12 February 2026. He said the move was part of reforms to modernise the energy sector and reduce electricity costs.
He said past state captures, mismanagement, poor maintenance, and inflated megaprojects drove up electricity prices for households and businesses.
The president said regulatory reforms have opened the way for more renewable energy investment. He projected that by 2030, more than 40% of South Africa’s energy supply will come from renewable sources. The reforms aim to create a competitive electricity market and reduce reliance on a single supplier.
To manage the separation process, Ramaphosa announced a dedicated task team under the National Energy Crisis Committee. The team will address issues related to the split and set clear timeframes for phased implementation. It must report back within three months.
He also said the first round of independent transmission projects will begin this year to attract private investment in expanding the national grid. The government will work with provinces to deal with transformer overloading, illegal connections and equipment failures, with the goal of ending load reduction by next year.
Eskom said it will continue to update noteholders as the separation progresses.
In his address, Ramaphosa said the rand has strengthened against the US dollar, borrowing costs have declined and the Johannesburg Stock Exchange has performed well over the past year. He linked this to improved investor confidence.
He cited progress under Operation Vulindlela, saying the government has ended load shedding, improved port and freight rail performance, restored passenger rail services and invested in infrastructure such as roads, bridges, dams and renewable energy projects.
The president said more than 2.5 million opportunities have been created through the Presidential Employment Stimulus, mainly benefiting young people and women.
Namibia imported 1 079 GWh of electricity from South Africa in the financial year ending 31 March 2025, according to Eskom’s international sales report. The imports contributed N$1.5 billion in revenue to Eskom.
The volume more than doubled from 423 GWh in 2024 but remained below the 1 653 GWh recorded in 2022.
Eskom’s 2025 reporting suite covers the financial year ended 31 March 2025 and includes events up to 29 September, when the board approved the reports.
Caption
South African President Cyril Ramaphosa has directed the creation of a fully independent transmission system operator.
– Photo: South African Presidency
