South Africa is open to bids from Russia and Iran for its nuclear expansion project, a senior minister said Monday, a move analysts warn could escalate tensions with Washington and complicate negotiations over a key U.S.-South Africa nuclear agreement.
The government plans to add 2,500 megawatts of nuclear power to address persistent electricity shortages and reduce reliance on coal. South Africa operates Africa’s only nuclear power plant, Koeberg, near Cape Town.
“We can’t have a contract that says Iran or Russia must not bid—we can’t have that condition,” Minister of Mineral and Petroleum Resources Gwede Mantashe told Reuters. “If they are the best in terms of the offer on the table, we’ll take any [country].”
The comments come amid heightened scrutiny from the United States. Earlier this month, President Donald Trump issued an executive order suspending aid to South Africa, accusing its government—without evidence—of “reinvigorating relations with Iran to develop commercial, military, and nuclear arrangements.”
Pretoria denies having any nuclear cooperation with Tehran.
NUCLEAR PACT IN LIMBO
South Africa and the U.S. have been negotiating a renewal of their civilian nuclear cooperation agreement, known as a Section 123 Agreement, for nearly a decade. The previous deal, signed in 1997, expired in December 2022.
“The allegations made in the executive order can significantly complicate getting the agreement renewed,” said Isabel Bosman, a nuclear energy researcher at the South African Institute of International Affairs.
Failure to reach a new deal could prevent state utility Eskom from sourcing reactor fuel from U.S.-based Westinghouse for one of Koeberg’s two units, analysts say. It could also deter American companies, such as the Bill Gates-backed TerraPower, from investing in South Africa at a time of renewed global interest in nuclear energy.
A U.S. State Department spokesperson declined to comment on whether Trump’s executive order would affect negotiations.
Mantashe’s remarks come as South Africa delays a long-planned tender for new nuclear projects following legal challenges. The Democratic Alliance, now part of the governing coalition, previously led opposition to nuclear deals under former President Jacob Zuma, particularly a controversial agreement with Russia’s state-owned Rosatom.
Despite political hurdles, South African officials say talks with Washington on renewing the 123 Agreement remain on track. “As far as we know, both sides remain firmly committed to concluding this new agreement,” said Zizamele Mbambo, a senior energy ministry official.
However, analysts warn that the growing rift with Washington—and South Africa’s openness to bidders like Russia and Iran—could further complicate the process.
