Northern Cape Poised to Power SA’s Green Economy, Says President Ramaphosa

President Cyril Ramaphosa has reaffirmed the strategic importance of the Northern Cape in South Africa’s clean energy future, calling the province an "economic pioneer" and a "frontier of innovation" during a high-level presidential engagement with the Northern Cape Provincial Executive. Speaking at the opening session, the President laid out a vision in which the Northern Cape not only drives national energy security but also becomes a continental hub for renewable energy and green hydrogen production.

Northern Cape: South Africa’s Clean Energy Frontier

Describing the province as “South Africa’s emerging powerhouse,” President Ramaphosa said the Northern Cape’s potential lies in its vast natural resources, high solar irradiance, wind corridors, and infrastructure potential that support the development of solar, wind, and green hydrogen projects.

“The Northern Cape is at the forefront of the clean energy revolution and is experiencing a significant surge in power projects, notably solar and green hydrogen,” Ramaphosa said.

The President emphasized that the Boegoebaai Port and Rail Development, now one of South Africa’s top seven infrastructure priorities for 2025/26, will be critical to facilitating large-scale green hydrogen exports. This infrastructure will link emerging energy corridors with global markets, significantly enhancing South Africa’s position in the African Green Hydrogen Alliance (AGHA), which estimates that green hydrogen could contribute between $66 billion and $126 billion to GDP across member states over the next 25 years.

A Green Hydrogen Masterplan with Continental Impact

The Northern Cape Green Hydrogen Masterplan was spotlighted as a game-changing policy blueprint. The President noted that its impact could extend far beyond the province—spurring growth across the Southern African Development Community (SADC) and offering South Africa a leadership role on the continent in energy innovation.

The Masterplan integrates environmental goals with economic transformation, and supports South Africa’s Just Energy Transition Investment Plan (JET-IP) by creating new industries, attracting green investment, and building a skilled workforce around low-carbon technologies.

“Once the energy transition unfolds as envisaged, the Northern Cape could be the new heartbeat of the economy,” the President said, referencing a recent report from the Pulitzer Centre.

Industrial Growth and Infrastructure Momentum

The province is already showing signs of transformation into a multisectoral industrial hub. While mining continues to be a key economic driver, government initiatives such as:

• Special Economic Zones (SEZs)

• Industrial parks

• Strategic rail and port expansions

are catalyzing investment in manufacturing, logistics, and renewable energy sectors.

“The potential for industrial growth is being expanded through special economic zone development, industrial park development and major infrastructure developments,” Ramaphosa noted.

Persistent Challenges and Development Gaps

Despite the progress, the President was frank about the persistent socio-economic challenges that cloud the province’s development potential. According to National Treasury’s 2024 provincial socio-economic review, poverty levels have increased, and access to basic services such as water and sanitation has declined. Youth unemployment remains alarmingly high, and fiscal constraints are impeding municipal development projects.

Critical areas affected include:

• Rural electrification

• Disaster response mechanisms

• Asbestos removal

• Land restitution and housing projects

“Much as we look at the potential and the progress that is being made, these challenges are still casting a shadow on our way to much better development,” Ramaphosa acknowledged.

Accelerating Implementation Through Integrated Planning

To unlock the province’s full potential, the President called for urgent reform of the current delivery model, especially around large-scale capital projects such as the Boegoebaai Harbour.

He emphasized the need for intergovernmental collaboration between national, provincial, and municipal levels, along with active participation from state-owned enterprises (SOEs). This integration must be guided by the Medium-Term Development Plan (MTDP) and be flexible enough to respond to both regulatory and investment constraints.

“We need an urgent relook at the current delivery model to enable regulatory approval and investment activation,” he said.

Climate Change and Local Government Reform

Climate change adaptation and local governance were also on the agenda. Ramaphosa expressed interest in how the province is building resilience to natural disasters and extreme weather events, especially in light of the increasing climate variability affecting arid and semi-arid regions.

On local governance, he called for renewed efforts to improve service delivery, especially in tourism development, where he believes the province holds immense but underutilized potential.

“There is latent potential in this province where we can actually exploit the number of endowments that the Northern Cape has,” he said, alluding to the region’s unique desert landscapes, heritage sites, and eco-tourism opportunities.

A Shared Vision for a Just, Green Future

President Ramaphosa closed by encouraging all levels of government and society to harness the full spectrum of the Northern Cape’s endowments—from clean energy and mining to tourism and agriculture—within an inclusive, sustainable development framework.

He reaffirmed that South Africa’s global climate commitments must be leveraged not only to decarbonize the economy but also to generate jobs, reduce inequality, and build infrastructure that sustains long-term growth.

“This is our opportunity not only to transition our energy system, but to transform our economy.”