In a single, ill-considered move, the Department of Defence has jeopardised the future of every Independent Power Producer (IPP) project in South Africa, undermining both our energy security and investment prospects.
In a letter dated 30 June 2025, issued by Vice Admiral D.M. Mkhonto, the Department placed a moratorium on issuing “No Objection” letters, an essential requirement for all IPP applications to connect to the national energy grid.
According to the Admiral, this suspension is to ensure alignment with “broader strategic defence considerations.” Alarmingly, no timelines or criteria have been provided as to when or how such determinations will be finalised.
This vague, open-ended directive has had an immediate and damaging effect:
- It has compromised the bankability of energy projects, as investors now face unacceptable uncertainty.
- It has placed billions of rands of investment and thousands of potential jobs at risk.
- It demonstrates how a single bureaucratic decision made without public consultation or parliamentary oversight can stall critical national progress.
The “No Objection” letter is just one of many regulatory hurdles IPPs must overcome. This kind of red tape is exactly what the DA has consistently warned against and what we must eliminate if we are serious about unlocking growth and tackling our energy crisis.
The DA strongly objects to the unilateral action taken by the Department of Defence and demands immediate intervention.
We call on the Minister of Electricity and Energy, the Minister of Defence and the Presidency’s Project Management Office to urgently rescind this moratorium and ensure that strategic energy investments are no longer held hostage by unnecessary and arbitrary bureaucracy.
South Africa cannot afford to let job-creating, growth-driving projects be derailed by outdated systems and unchecked power. It is time to put the economy and the people of South Africa first.