SA targets R700bn investment pipeline to tackle economic challenges

Minister unveils plans of credible, investable projects designed to revitalise key sectors in SA

- BANELE GININDZA

PETROCHEMICAL giant Sasol is engaging with a team from the European Union (EU) to explore the production of clean aviation fuel in a bid to address impending trade challenges posed by Carbon Border Adjustment Mechanism (CBAM) taxes on South African exports.

Minister for Trade, Industry and Competition, Parks Tau, highlighted this strategic collaboration during his Budget Vote on Friday, emphasising the government's proactive approach to mitigate the potential impact of CBAM.

CBAM has raised concerns in many sectors, being perceived not only as an environmental mechanism but also as a barrier to trade. Tau stated that the South African government was actively negotiating with the EU, alongside garnering support at global platforms such as the World Trade Organisation (WTO), to underscore the importance of treating CBAM as a broader trade issue that requires comprehensive dialogue.

He said this was part of plans including meticulously curating a R700 billion pipeline of credible, investable projects designed to revitalise key sectors in South Africa.

This initiative spans critical sectors from 25GW of transformative energy projects worth R339bn solar parks, wind farms, battery storage, gas-to-power - alongside upgrades in transport, logistics, manufacturing, agro-processing, and digital infrastructure.