South Africa has long been dependent on coal, finding it difficult to leave fossil fuels in the past for a future in green energy. The African country has produced and exported coal to bolster its economy as well as to provide energy for its population of over 60 million. However, now it has a 2.2 billion coal-exit plan thanks to funding from the World Bank.
Coal contributes around 82 percent of South Africas energy mix. In addition, roughly 28 percent of the countrys coal production is exported, primarily through the Richards Bay Coal Terminal, making South Africa the fourth-largest coal exporting country in the world. It was also the worlds 15th-highest emitter of carbon dioxide in 2023.
Although there is a multitude of coal producers in South Africa, just five account for around 85 percent of saleable coal production. Meanwhile, 11 mines contribute 70 percent of the output. The countrys coal deposits are relatively shallow with thick seams, making them easier and, generally, cheaper to mine, than the international average. At the present production rate, there is more than an estimated 50 years of coal supply left.
Its long dependency on coal, both for energy and revenue, has made many doubtful that South Africa will be able to move away from the fossil fuel any time soon. However, in June, the World Banks Climate Investment Funds CIF announced a new funding plan to support South Africas Accelerating Coal Transition investment plan. The CIF plan was put on hold last year after South Africa requested to delay the closure of three coal-fired power plants to ease an energy crisis. The CIF plans to provide South Africa with 500 million in funding, which could open the door to a further 2.1 billion in investment from multilateral lenders. South Africa must now provide projected project costs for approval from the CIF.