Ramaphosa: SA has no money for nuclear power

Davos - Deputy President Cyril Ramaphosa, who is next in line to lead the country, said the government currently can’t afford to build new nuclear power reactors.

“We have to look at where the economy is - we have excess power and we have no money to go for a major nuclear plant building,” Ramaphosa told reporters on Thursday at the World Economic Forum in Davos, Switzerland.

“We have said the nuclear process will be looked at in the broad context of affordability.”

Ramaphosa’s approach differs markedly from that of President Jacob Zuma, who he succeeded last month as head of the ruling African National Congress. Zuma has championed plans to build as many as eight reactors that would generate 9 600 megawatts of energy starting from 2023 and cost as much as R1trn ($84bn) - a programme critics say the country can’t afford and doesn’t need.

While court challenges stalled the government’s plans to seek bids to build new atomic plants last year, Zuma signalled that he wanted to revive the nuclear programme when he reshuffled his Cabinet in October and changed his energy minister.

Ramaphosa, who is expected to succeed Zuma as president within the next few months, has said the government should focus on developing other forms of renewable energy.

Rosatom, Areva, EDF, Toshiba’s Westinghouse Electric unit, China Guangdong Nuclear Power Holding Corporation and Korea Electric Power Corporation previously expressed interest in building new reactors in South Africa.

* SUBSCRIBE FOR FREE UPDATE: Get Fin24's top morning business news and opinions in your inbox.

ZAR/USD
17.46
(+1.04)
ZAR/GBP
22.81
(+1.42)
ZAR/EUR
20.51
(+1.27)
ZAR/AUD
12.49
(+1.36)
ZAR/JPY
0.16
(+1.87)
Gold
1925.30
(-5.08)
Silver
25.51
(-12.22)
Platinum
938.99
(-4.56)
Brent Crude
44.95
(+1.33)
Palladium
2109.24
(-4.85)
All Share
57168.24
(+0.72)
Top 40
52831.61
(+0.76)
Financial 15
10215.75
(+3.21)
Industrial 25
75524.64
(+1.14)
Resource 10
58677.82
(-0.46)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Do you think it was a good idea for the government to approach the IMF for a $4.3 billion loan to fight Covid-19?
Please select an option Oops! Something went wrong, please try again later.
Results
Yes. We need the money.
11% - 958 votes
It depends on how the funds are used.
74% - 6380 votes
No. We should have gotten the loan elsewhere.
15% - 1315 votes
Vote