THE Economic Freedom Fighters (EFF) has frowned upon the loans from World Bank, Germany, and the African Development Bank to support Mzansi's Just Energy Transition.
On Wednesday, 22 November, the EFF said the loans were an attempt to entrap the country in debt by the African National Congress (ANC) because it was losing political power and control.
"South Africa does not need any loans to resolve its energy crisis. The so-called 'just energy transition' is nothing but a plot to undermine South African sovereignty and enable profiteering at the expense of our people," said EFF spokesman Sinawo Thambo.
He claimed the loans were presented as below-market-rate loans for a just energy transition. Still, the reality was that these loans were meant to control and dictate Mzansi's politics and policy agenda once the ANC lost power.
"The stability of South Africa's energy generation, in a dependable and affordable manner, will not be driven by profiteering and involvement of Western imperialist agendas," he said.
The National Treasury announced on Tuesday, 21 November, that Mzansi has signed a loan agreement with the World Bank, the government of Germany, and the African Development Bank (AfDB) for concessional financing to support the country's Just Energy Transition in line with the Just Energy Transition Investment Plan.
"The loans provided by Germany's Kreditanstalt für Wiederaufbau (KfW) and the African Development Bank (AfDB) follow their partnership with the World Bank on the second Development Policy Operation (DPO) to support South Africa's commitment to the just transition for a low-carbon and resilient economy. These are sovereign loans provided directly to the National Treasury for general budget expenditure purposes," read the statement.
Thambo said EFF has raised, in the past, the National Treasury's deliberate increase in foreign dollar-denominated loans that come with conditions designed to control South Africa.
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"The EFF also notes that none of these loans provided for the so-called "just energy" transition are meant for additional generation capacity. Instead, the priority is given to building transmission and distribution networks suitable for the privatisation of generation," he said.
He pointed out that South Africa has the natural resources and human capital necessary to develop its energy sector independently.
Thambo said reliance on foreign loans with "hidden agendas only serves to perpetuate a cycle of dependency and compromises" the country's national interests.
"The EFF believes in the development of South African industries and the utilisation of local resources, in particular coal, to address our energy needs. This approach not only fosters self-sufficiency but also stimulates economic growth and job creation for much-needed jobs for the youth," Thambo said.
