The South African Photovoltaic Industry Association (SAPVIA) has welcomed Finance Minister Enoch Godongwana’s announcement in the Medium Term Budget Policy Statement (MTBPS)(12 November 2025) confirming a R2 billion Credit Guarantee Vehicle specifically for expansion of the electricity transmission grid. SAPVIA sees this as a significant step in translating energy policy into financial reality.
The confirmed R2 billion credit guarantee vehicle specifically supports expansion of the transmission grid.
Ahead of the speech, the association had advocated for the MTBPS to provide concrete fiscal and strategic pathways for financing the substantial solar PV build-out indicated in the IRP 2025 and specifically for confirmation of financial commitments and innovative funding vehicles for critical transmission infrastructure.
Sim Khuluse, Technical and Policy Manager at SAPVIA, said: “The minister's announcement on the CGV answers directly to the industry’s most critical request. The commitment of R2 billion to a Credit Guarantee Vehicle for transmission expansion is precisely the kind of innovative, blended finance mechanism we sought. It will de-risk private investment and enable new public private partnerships, directly addressing the single largest bottleneck to connecting new capacity.”
SAPVIA views this measure as essential to support the ambition of the Integrated Resource Plan, noting that such structural reforms in energy are key to lifting the nation’s growth rate.
Furthermore, the minister's acknowledgment of more than 2 220 megawatts of solar, wind and battery projects in development reinforces the momentum in the private generation sector.
“This is a catalyst for action. By establishing a clear funding pathway for grid development, the minister has provided the assurance and financial clarity required for private capital to flow at the scale needed to secure South Africa’s energy future,” said Khuluse.
For more information visit: www.sapvia.co.za
