Is this the way to Trump’s heart for SA?

Paving the way for big tech companies to own and operate small nuclear reactors (SMRs) in South Africa may open up an attractive African market for American interests and be the key to better relationships with the Trump administration.

This argument was voiced by Dr Gerard Boyce, an economist and senior lecturer at the University of KwaZulu-Natal, in an article he wrote in his personal capacity on the digital platform CounterPunch.

Boyce points to the renewed global interest in nuclear power generation, which is considered a clean technology suitable for a world transitioning away from fossil fuels.

South Africa is currently the only African country with nuclear power stations, but Russia’s nuclear company Rosatom is building four units in Egypt – and Kenya, Rwanda and Ghana are among other African countries moving in the same direction.

Africa highly attractive

Internationally, Africa is seen as a highly attractive market for countries involved in nuclear energy production. The US has a particular interest in the design and development of small modular reactors rather than conventional technology like that used at Koeberg.

SMRs are ideal for Africa, where extensive transmission and distribution networks are the exception rather than the rule.

These reactors are smaller, can be delivered faster, likely cost less than conventional nuclear plants, and do not need to be connected to a national grid. They would, for example, be extremely suitable for mining operations in remote locations.

Big interest from big tech

Major technology companies are also keen to acquire SMRs to power their data centres worldwide.

Many have already invested in SMR development in the US, including Microsoft owner Bill Gates’s $1 billion investment in TerraPower and Amazon’s investment in X-energy, a company in which South African venture capitalist Andre Pienaar’s C5 Capital has a stake.

Boyce argues that US President Donald Trump surrounds himself with major technology leaders, and their interests align with the ambitions of the US government.

Afrikaner overtures

He also notes that the Afrikaner organisation AfriForum and the family farming organisation Southern African Agri Initiative (Saai) have already reached out to SMR developers in the US.

The SMR model fits their goal of reducing reliance on the government, and the Trump administration is sympathetic to Afrikaners.

Both organisations have been in contact with Pienaar, who is closely linked to X-energy. With the support of the US government, this company is developing SMRs.

Listen/read: SA could have a new nuclear reactor by 2027

C5 has also expressed its intention to use its own capital to build the first SMR in South Africa.

Simple policy change

Boyce argues that all the South African government needs to do to smooth the way for US involvement in the local market is change policy to allow private companies to operate nuclear reactors.

He believes this could go a long way toward appeasing Trump and maintaining the benefits of the US African Growth and Opportunity Act (Agoa) trade agreement – without requiring the South African government to spend large sums of money.

President Cyril Ramaphosa has already taken strong steps to open the local electricity market to private sector participation, so such a policy change would align well with the government’s current direction.

SA’s nuclear potential is attracting global interest

Dr Dave Nicholls, chair of the South African Nuclear Energy Corporation (Necsa), which itself hopes to build an SMR and supply other African countries, confirms that South Africa’s established nuclear industry and regulatory framework make it highly attractive to countries looking to secure a foothold in the African market.

He says the policy change could be made through a cabinet decision.

Professor Bismark Tyobeka, vice-chancellor of North-West University and former CEO of South Africa’s National Nuclear Regulator, agrees that South Africa is the ideal launchpad for an SMR market in Africa.

He believes such a policy shift is a good idea and that South Africa could benefit significantly from an agreement with the US in this regard. However, he warns that South Africa has already lost much of its nuclear expertise and insists that any deal with the US should include technology transfer rather than causing further brain drain to America. “There must also be a transfer of skills,” he adds.

Scepticism over US commitment and political risks

Professor Jo-Ansie van Wyk, an international politics expert from Unisa, is more sceptical. She points out that Trump recently cut US funding that had been allocated to mitigate the impact of South Africa’s transition to renewable energy on affected communities.

Additionally, negotiations for the renewal of a nuclear agreement with the US, which had expired and included provisions for supplying nuclear fuel to Koeberg, have stalled.

“I don’t know if this will appease Trump,” she says. “He is more interested in domestic affairs and focused on oil. Unless we offer him minerals – because we can see that’s what he is interested in.”

Van Wyk adds that statements by South Africa’s Minister of Mineral and Petroleum Resources, Gwede Mantashe – suggesting that South Africa could turn to Russia or Iran for new nuclear power plants and restrict critical minerals from the US – have not helped to ease tensions.

Read: Is South Africa assisting Iran on the nuclear front? [Feb 2025]

Following Mantashe’s remarks, the US-based Foundation for Defense of Democracies called for Trump to consider nuclear sanctions against South Africa.

“Because the US is being so tough on us, other players might seize the opportunity,” Van Wyk says.

Rosatom has been particularly aggressive in marketing its nuclear technology in Africa and runs a strong training programme for students from the continent. Once these students complete their studies in Russia, they become familiar with Russian nuclear technology, paving the way for its adoption in their home countries.

A source in the nuclear industry who asked to remain anonymous stated that if South Africa enters into a partnership with another country for SMR development, it would need to be a long-term relationship.

“For that, you need a reliable partner with stable policies, and right now, it doesn’t look like the US meets that requirement.”