JOHANNESBURG, May 20 – South African state-owned power utility Eskom is holding exploratory discussions with the World Bank and other potential financiers over funding for a multibillion-dollar nuclear energy expansion programme that could begin procurement processes within the next 12 months.
The state-owned power company, which operates Africa’s only commercial nuclear power station near Cape Town, is preparing a request for information covering up to 5,200 megawatts of new nuclear generation capacity.
South Africa is seeking additional baseload electricity generation as it gradually transitions away from coal, which still accounts for most of the country’s power supply.
Eskom’s proposed programme includes approximately 4,800 megawatts from conventional pressurized water reactors and 400 megawatts from small modular reactors, commonly known as SMRs.
At least half of the planned SMR capacity is expected to support Eskom’s broader coal-to-nuclear transition strategy.
Bheki Nxumalo, Eskom’s group executive for generation, said the company is exploring multiple financing structures with development institutions, commercial lenders and strategic partners.
“We are looking for anyone with ideas,” Nxumalo said on the sidelines of an energy conference in Cape Town, referring to ongoing funding discussions.
The utility said it cannot independently finance the programme because of its balance sheet constraints and is therefore seeking support from institutions including the African Development Bank alongside commercial banks and private-sector partners.
A spokesperson for the World Bank declined to comment directly on the talks but noted that the institution now supports countries choosing nuclear energy as part of their long-term electricity mix.
Last year, the World Bank signaled a broader shift toward nuclear financing after decades of limited involvement in the sector.
Funding options being considered include public-private partnerships and vendor-financing models under which technology providers finance and construct nuclear facilities.
Nxumalo referenced Rosatom’s financing role in Egypt’s El Dabaa nuclear project as an example of potential structures under review.
South Africa’s nuclear plans remain politically sensitive, with environmental groups and civil society organizations raising concerns over cost, governance and long-term waste management.
However, policymakers argue nuclear power could play a key role in stabilizing electricity supply as the country faces rising energy demand, aging coal infrastructure and pressure to reduce carbon emissions.
The proposed programme also reflects growing global interest in small modular reactors, which advocates say offer lower upfront costs and faster deployment than traditional nuclear plants.
