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South Africans face potential risks in $25bn power deal with Indian billionaire

Simon Osuji by Simon Osuji
December 17, 2025
in Business
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South Africans face potential risks in $25bn power deal with Indian billionaire
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The decision has reignited debate over foreign involvement in critical infrastructure, particularly after an Adani Group-linked unit emerged as a shortlisted bidder.

Electricity Minister Kgosientsho Ramokgopa confirmed the development in Pretoria this week, describing the process as a key step towards modernising South Africa’s ageing power backbone and restoring long-term energy security.

The transmission upgrade is central to unlocking new generation capacity and reducing the impact of chronic power shortages that have constrained Africa’s most industrialised economy for more than a decade.

Among the pre-qualified firms is Adani Power’s Middle East unit, part of the Indian conglomerate founded by Gautam Adani. The group’s interests span ports, logistics, power generation, and renewable energy, with projects across Asia, the Middle East, and parts of Africa.

Other shortlisted bidders include France’s Electricité de France and Chinese state-owned utilities State Grid International Development and China Southern Power Grid International, underscoring the global competition for the South African project.

While the government has framed the selection as a technical and financial screening exercise, Adani’s inclusion has drawn heightened scrutiny online and in policy circles.

Alleged fraud links

Social media users react as Indian billionaire Gautam Adani is shortlisted among bidders for South Africa’s multi billion dollar electricity grid upgrade. [Photo: Indranil Aditya/Bloomberg via Getty Images]

Critics point to ongoing legal and regulatory challenges linked to the billionaire’s business empire, arguing that governance risks should weigh heavily in decisions affecting national infrastructure.

In November 2024, Gautam Adani, along with two executives, including his nephew Sagar Adani, was accused in the United States of involvement in a scheme that allegedly paid more than $250 million in bribes to secure solar energy contracts in India.

Regulatory attention has continued into 2025, as for the fifth time in eight months, the US Securities and Exchange Commission filed a status report with the Eastern District of New York stating that India’s Ministry of Law and Justice had yet to serve notice on Gautam and Sagar Adani.

In a December 12 filing, SEC counsel Christopher M. Colorado said the agency’s efforts were ongoing, noting that the commission remained in contact with Indian authorities through diplomatic channels under the Hague-Service Convention.

The SEC added in an earlier update that Indian authorities had confirmed receipt of its request and had asked local judicial bodies to attempt service of the summons and complaint. The case remains unresolved, with no liability determination at this stage.

In South Africa, the timing of these revelations has amplified public unease. Years of rolling blackouts have battered households, weakened businesses, and eroded trust in the country’s energy institutions.

For many South Africans, the finer details of procurement matter less than results. As bidding advances, whichever consortium ultimately wins will face not only complex engineering and financing hurdles, but also the challenge of persuading a weary public that this vast investment will finally deliver stable power and keep the lights on.

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