Northern cape: With its immense potential for renewable energy and green hydrogen production and export, the Northern Cape could become a key driver of South Africa’s energy transition and economic growth. This is according to President Cyril Ramaphosa, who delivered remarks at the opening session of a Presidential engagement between the National Executive and the Provincial Executive of the Northern Cape.
According to South African Government News Agency, President Ramaphosa emphasized the Northern Cape’s role as an economic pioneer and a frontier of innovation. He referenced a report from the previous year that characterized the province as South Africa’s emerging powerhouse, being at the forefront of the clean energy revolution. The province is experiencing a significant surge in power projects, notably solar and green hydrogen.
The African Green Hydrogen Alliance (AGHA), which includes South Africa among its 10 member states, estimates that the green hydrogen industry could contribute between $66 billion and $126 billion to the GDP of member countries over the next 25 years. The South African government is keen to capitalize on this potential, with the Boegoebaai Port and Rail Development identified as one of the top seven infrastructure priorities for 2025/26.
President Ramaphosa highlighted the Northern Cape’s Green Hydrogen Masterplan, which has ambitious goals for both the province and the national economy. He noted its potential impact on the Southern African Development Community (SADC) and the continent as a whole. The President also mentioned his participation in multilateral discussions and business forums promoting South Africa as a leader in renewable energy.
The President acknowledged ongoing challenges despite the province’s growth. The National Treasury’s 2024 provincial socio-economic review indicates an increase in poverty levels and a decline in access to basic services. Unemployment, particularly among youth, remains high, and fiscal constraints are impeding several projects at the municipal level.
To address these challenges, the President proposed supporting high-impact projects such as the Northern Cape Industrial Corridor, the province’s R1 billion housing program, and the Kimberley Big Hole precinct. He emphasized the need for creative funding mechanisms and regulatory approval for major initiatives like the Boegoebaai Harbour project.
President Ramaphosa stressed the importance of integrated planning across government levels, involving State-owned enterprises as key stakeholders. This integration should align with the Medium-Term Development Plan. He also highlighted the need to improve local government performance and develop the province’s tourism potential.
In addressing climate change and natural disaster readiness, President Ramaphosa underscored the need to leverage the Northern Cape’s natural endowments for economic growth.