Africazine:
Eskom is set to enhance procurement opportunities for South African businesses to meet rising electricity demand.
At the Black Business Council summit, Eskom CEO Dan Marokane announced that the utility’s bn capital program will focus on local manufacturing and support for black-owned enterprises. With electricity demand projected to increase by 1.5% in the short-term and 2% in the long-term, Eskom aims to sustain energy security and drive economic growth.
Eskom’s Commitment to Local Manufacturing
Marokane emphasized that reliable power is not just an operational achievement but an economic asset. Eskom has achieved its strongest year-to-date energy availability factor performance in six years, with unplanned outages at their lowest daily level in eight years. This stability is crucial for creating a conducive environment for investment and industrial activity.
The utility’s Integrated Resource Plan 2025, valued at R2.23 trillion, outlines a roadmap for future energy infrastructure. It aims to generate 105GW of new capacity by 2039 and increase the share of renewables in the energy mix. This plan is expected to create demand for various components, including transformers and cables, thereby boosting local manufacturing.
Investment Opportunities and Challenges
Eskom’s investment pipeline has identified 96 projects, targeting 23.9GW of new capacity and an estimated value of R1.3 trillion. The focus is on making these opportunities more investable by improving visibility of future demand and strengthening supplier readiness. Marokane highlighted the importance of removing barriers that hinder capable black businesses from accessing larger contracts and project equity.
Transnet’s CEO, Michelle Philips, pointed out that efficient logistics are essential for South Africa’s industrialization. Without reliable transportation infrastructure, manufacturers struggle to compete globally. Ongoing investments in rail and port infrastructure aim to enhance the movement of goods, which is vital for economic activity.
Next Steps for Eskom and Local Enterprises
- Eskom will leverage its procurement spend to strengthen local manufacturing.
- Focus on increasing participation of black-owned and women-owned enterprises.
- Implement the Integrated Resource Plan 2025 to enhance energy infrastructure.
- Work with government and development-finance partners to address funding constraints.
Eskom’s initiatives are pivotal for empowering local businesses and ensuring energy security in South Africa.
