South Africa PIC gas investment strategy targets 3GW power shift

Tuesday 2nd December 2025

by inAfrika Newsroom

South Africa PIC gas investment strategy has received board approval, giving the country’s biggest asset manager a clear mandate to finance gas projects for the energy transition. Statements from the Public Investment Corporation describe the plan as a “landmark” move to support cleaner, reliable power after years of load-shedding.

The strategy rests on several pillars. It backs new gas infrastructure, the conversion of existing diesel-fired peaking plants at Ankerlig and Gourikwa, and the development of a 3,000 megawatt gas-to-power project. It also seeks to ease an expected “gas cliff” as pipeline supply from Mozambique declines later this decade.

PIC manages pensions for millions of public servants. Therefore, any South Africa PIC gas investment strategy must balance long-term returns with social and environmental risk. The corporation says it will favour projects that unlock further renewable energy, grid upgrades and industrial uses of gas, rather than supporting stand-alone fossil investments.

Analysts note that the plan arrives as South Africa struggles with fragile coal plants, rising renewable capacity and complex Just Energy Transition Partnership talks. Gas, they argue, can back up wind and solar if priced and regulated well. Yet it can also lock in emissions if poorly planned.

Why it matters

The investment strategy could shape the country’s power mix for decades. If the corporation channels capital into efficient, flexible plants and infrastructure, it may reduce blackouts, cut diesel costs and support new industries such as green hydrogen and fertilisers.

Moreover, a strong institutional investor signal can attract private partners to complex midstream projects, including import terminals and pipelines. That matters because South Africa will likely rely on several gas sources, from domestic finds to regional imports and LNG.

However, civil society groups urge transparency on emissions, tariffs and community impacts. They warn that workers and towns tied to coal must not be left behind as capital moves. For PIC and the government, the challenge is to make gas a bridge to a resilient low-carbon system, not a new dependency.