South African President Cyril Ramaphosa has enacted a significant restructuring of the country’s energy sector, splitting the former Ministry of Mineral Resources and Energy into two separate portfolios.
The move, announced on Tuesday, creates distinct ministries for Electricity and Energy, and Mineral and Petroleum Resources.
This change follows a cabinet reshuffle in June, which saw the merging of the Electricity and Energy portfolios and the establishment of a separate ministry for Mineral and Petroleum Resources.
President Ramaphosa has transferred various pieces of legislation to the new ministers, including:
- The Electricity Regulation Act and National Energy Act to the Minister of Electricity and Energy
- The Mineral and Petroleum Resources Development Act to the Minister of Mineral and Petroleum Resources
The existing Department of Mineral Resources and Energy (DMRE) will continue to operate until the transfer of legislation, human resources, and financial resources is complete. It will then be replaced by two new departments.
As an interim measure, the Minister of Mineral and Petroleum Resources has been given responsibility for the DMRE. A agreement will ensure the DMRE supports the Minister of Electricity and Energy until the new department is fully established.
The restructuring comes as South Africa grapples with ongoing energy challenges, including frequent power cuts that have hampered economic growth.
Analysts suggest this move may allow for more focused attention on the country’s electricity crisis, while also potentially streamlining decision-making in the minerals and petroleum sectors.
The government has not yet announced timelines for the full implementation of these changes.
