South Africa’s push to expand its nuclear energy sector has taken a major turn with invitations extended to Russia and Iran for project proposals. The announcement by Mineral and Petroleum Resources Minister Gwede Mantashe has drawn global attention, particularly in Washington, where it complicates ongoing energy talks with the United States. While South Africa aims to diversify its energy sources, these potential partnerships introduce geopolitical tensions that could shape its future energy strategy.
Why Nuclear?
South Africa, home to Africa’s only operational nuclear power plant—Koeberg—has long sought to increase its nuclear capacity. Frequent power outages have crippled the economy, making alternative energy solutions a priority. The government plans to add 2,500 megawatts of nuclear power to stabilize the grid and cut carbon emissions.
However, nuclear expansion has been repeatedly stalled by political and legal challenges. A planned tender (a formal bidding process for contracts) last year was delayed due to legal disputes led by the then-opposition Democratic Alliance, now part of the coalition government. Meanwhile, talks with the U.S. over renewing the Section 123 Agreement—essential for securing American-made nuclear fuel and equipment—have been at a standstill since the previous deal expired in December 2022.
A Stalled U.S. Agreement
The Section 123 Agreement, in place since 1997, governs South Africa’s access to U.S. nuclear fuel and technology. Renewal negotiations have dragged on for nearly a decade, with finalization repeatedly delayed by legal hurdles. Adding to the strain, an executive order by former U.S. President Donald Trump accused South Africa—without evidence—of strengthening nuclear ties with Iran, further complicating discussions.
Without a new agreement, South Africa risks losing access to key reactor fuel. Eskom, the national power utility, may struggle to source fuel for Koeberg’s Unit 1, which depends on U.S.-based Westinghouse. Unit 2, supplied by France’s Framatome, would remain unaffected.
Russia and Iran’s Role
Mantashe has emphasized that South Africa will evaluate proposals from any country, including Russia and Iran, based on merit. Although Pretoria insists it has no existing nuclear cooperation with Iran, speculation alone has raised concerns in Washington. A U.S. State Department spokesperson declined to comment on how these developments might impact ongoing discussions.
Russia’s state nuclear company, Rosatom, has long sought involvement in South Africa’s nuclear sector. A previous deal under former President Jacob Zuma faced heavy opposition due to cost and transparency concerns. Whether Russia will submit a new proposal remains unclear.
Balancing Energy and Diplomacy
South Africa faces a delicate balancing act between securing energy stability and managing international relationships. While the government insists nuclear deals will be awarded based on merit, partnering with Russia or Iran could strain ties with the U.S. and Western allies. The current U.S. administration has yet to take a clear position, but ongoing uncertainty over the Section 123 Agreement signals a cautious approach.
At the heart of the issue is South Africa’s urgent need for a reliable energy supply. With a struggling power grid and rising demand, delays in nuclear expansion are not an option. Whether the solution lies with the U.S., Russia, Iran, or another player, Pretoria must navigate its choices carefully to secure its energy future without worsening diplomatic tensions.
