Online Reporter
Nqobile Bhebhe [email protected]
GOVERNMENT will continue financing rural electrification projects through the Rural Electrification Fund (REF) and the fiscus, while adopting a least-cost technology approach to expand electricity access in underserved communities, Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube has said.
The policy is expected to accelerate electrification by allowing the country to deploy the most cost-effective energy solutions, including grid extension, solar systems and other appropriate technologies, depending on the needs and location of beneficiary communities.
The strategy comes as Government intensifies efforts to improve electricity access in rural areas, support socio-economic development and enhance service delivery in critical sectors such as education and healthcare.
Presenting the Mid-Term Budget and Economic Review Statement, Prof Ncube said Government remained committed to extending electricity infrastructure to marginalised communities through the Rural Electrification Agency (REA), while encouraging greater private sector participation in the sector.
“Government continues to support initiatives aimed at increasing electricity access by expanding the national electricity distribution network to reach underserved and marginalised communities, particularly rural areas, through the efforts of the Rural Electrification Agency (REA) and promoting private sector participation.
“In this regard, US$12,4 million was utilised from the Rural Electrification Fund during the period under review, financing the completion of 212 grid-energised projects across eight provinces. Social infrastructure absorbed the bulk of the outlay, comprising 81 primary schools, 54 secondary schools and 20 rural health centres, among other projects.”
The latest investments underscore the critical role being played by the Rural Electrification Fund in improving access to electricity for essential public institutions, with schools and health facilities accounting for the majority of completed projects.
Beyond conventional grid expansion, Government also scaled up off-grid renewable energy solutions to reach communities where grid extension is less economical.
Prof Ncube said complementary solarisation programmes were implemented across all eight rural provinces, with strong support from the private sector.
“Complementing grid extension, US$220 465 was utilised towards solarisation in the country’s eight provinces, covering primary schools, secondary schools, rural health centres, clinics and business centres, with most of the projects having been implemented and funded by the private sector.
“In addition, US$1,2 million was invested in biogas digesters, serving 132 households and five institutions.”
The investments in solar and biogas technologies reflect Government’s broader strategy of diversifying rural energy sources, improving energy security and promoting cleaner, sustainable energy solutions.
Prof Ncube said Government would increasingly prioritise technology choices that deliver electricity access at the lowest possible cost rather than relying solely on traditional grid expansion.
“Going forward, to broaden access and coverage of the power supply within communities, Government will continue to finance various rural power initiatives through the Rural Electrification Fund and the fiscus, with allocation increasingly guided by least-cost technology selection rather than uniform recourse to grid extension.”
The approach is expected to improve the efficiency of public spending while accelerating electrification in remote communities where decentralised renewable energy systems can be deployed more quickly and at a lower cost than conventional grid infrastructure.
The continued investment in rural electrification is aligned with Government’s broader objective of improving access to reliable energy, stimulating rural industrialisation, supporting productive economic activities and enhancing the quality of life in communities across the country.
