What You Need to Know
South Africa and Mozambique have entered into a historic energy cooperation agreement aimed at accelerating joint infrastructure projects and enhancing energy trade. The memorandum was signed during the fourth meeting of the national bilateral committee, with officials highlighting its significance for regional energy security.
Africa. South Africa and Mozambique have signed a historic cooperation agreement in the energy sector aimed at accelerating joint infrastructure projects and enhancing energy trade, which officials hailed as a major step towards regional energy security.
The memorandum of understanding was signed in Maputo on Wednesday during the fourth meeting of the national bilateral committee between the two countries. The agreement was signed by the Minister of Electricity and Energy of South Africa, Kgosientsho Ramokgopa, and the Minister of Mineral Resources and Energy of Mozambique, Estêvão Bale, during a ceremony attended by President Cyril Ramaphosa and his Mozambican counterpart, Daniel Chapo.
The Department of Electricity and Energy stated: “The memorandum of understanding lays the foundations for strategic partnerships in energy trade and development, focusing on electricity and natural gas resources.”
Minister Ramokgopa’s signing of the memorandum underscores the South African government’s commitment to enhancing energy cooperation in the region, contributing to mutual benefits and strengthening energy security.
Mozambique is already a key partner for South Africa, providing energy imports through the Cahora Bassa hydroelectric project, which has long contributed to stabilizing South Africa’s grid amid local generation shortages.
The memorandum comes at a time when South Africa is grappling with a persistent electricity shortage and is seeking to diversify its supply sources. By expanding cooperation with Mozambique, Pretoria aims to secure reliable imports while supporting regional industrial growth.
The agreement will be formally reviewed at the fifth meeting of the national bilateral committee, scheduled to take place in South Africa, where both governments are expected to present a report on the progress made in implementing joint energy initiatives.
Ramaphosa noted that state-owned enterprises, development finance institutions, and private companies in South Africa are ready to partner in executing joint projects.
Ramaphosa and Chapo were also scheduled to inaugurate a gas facility built by the South African energy and chemicals company Sasol in the Inhambane province of Mozambique.
Ramaphosa stated to reporters on Wednesday: “This is another shining example of how two friendly neighbors can effectively collaborate.” He added: “The project also demonstrates how to optimally leverage public-private partnerships.”
The energy cooperation between South Africa and Mozambique is rooted in their geographical proximity and shared energy needs. Mozambique has long been a key energy partner for South Africa, particularly through the Cahora Bassa hydroelectric project, which has contributed to stabilizing South Africa’s energy grid amidst local generation shortages. This new agreement marks a significant step in strengthening their energy ties and addressing ongoing electricity shortages in South Africa.
