South Africa shortlists Adani firm for power grid upgrade
Indian billionaire Gautam Adani.
What you need to know:
- Gautam Adani, ranked the world’s 27th richest man with a net worth of $71 billion, commands a global empire spanning ports, logistics and green energy.
- Last year, President William Ruto cancelled two major Adani contracts—a $1.85 billion deal to modernise Nairobi’s JKIA Airport and a $736 million power line project.
South Africa’s drive to stabilise its faltering energy system is also attracting controversy after it shortlisted an Indian conglomerate accused elsewhere of shady dealings.
The Department of Electricity and Energy shortlisted seven international consortia for a R440 billion (£26 billion) transmission grid expansion, a project central to modernising the country’s ageing coal based infrastructure and integrating renewable power.
Among the bidders is Gautam Adani’s Middle East unit, a name that has triggered sharp reactions across the continent.
Electricity Minister Kgosientsho Ramokgopa confirmed Adani Power’s pre-qualification on Monday, alongside heavyweights such as China’s State Grid International Development, China Southern Power Grid, and France’s Electricité de France (EDF).
The first phase of the rollout is ambitious: 1,164 kilometres of new transmission lines designed to deliver more than 3,000 megawatts of generation capacity. Officials describe the project as a cornerstone of long term energy security and industrial growth.
Adani, ranked the world’s 27th richest man with a net worth of $71 billion, commands a global empire spanning ports, logistics and green energy.
His inclusion in South Africa’s shortlist has divided opinion. Supporters cite his record of delivering reliable, low cost power, while critics warn against foreign control of strategic assets and point to corruption allegations.
South Africa’s embrace of Adani contrasts starkly with Kenya’s. Last year, President William Ruto cancelled two major Adani contracts—a $1.85 billion deal to modernise Nairobi’s JKIA Airport and a $736 million power line project—after US prosecutors indicted Adani for alleged fraud and a $250 million bribery scheme. The cancellations have left Kenya negotiating compensation, with penalties estimated at more than $40 million.
The juxtaposition between Pretoria and Nairobi underscores Africa’s energy dilemma. South Africa is desperate to end crippling load shedding while Kenya is dodging reputational risks.
