South African Business 2025

Transnet Port Terminals

Transnet Port Terminals is improving performance and investing in new equipment.national utility, Eskom, has begun. The new NationalTransmission Company of South Africa is a workingentity and wheeling (the idea that an independentpower producer can sell energy to a third partywhile using the national grid) is booming.An interesting new development on thelandscape, literally, of the Mpumalanga Province,is the addition of what will become South Africa’sbiggest wind farm. Seriti Green is developing theUmmbila Emonyeni project to supply Seriti’s minesin the area, but the fact that Mpumalanga hasseveral coal-fired power plants that are going tobe decommissioned means that there will be sparegrid access for renewable producers. The coal plantclosures have been pushed back in some cases, butthey will close and when they do, the connectionsthey have to the grid will be gold dust.The conversation about the global climate crisishas seized the limelight across the world in a waythat few other topics have since World War II. Thedebate in South Africa has its own unique contours,particularly as about 80% of the country’s electricitygeneration comes from coal. The fact that manypeople would lose their jobs if coal mines closedown is an important factor in calculations, and akey reason why South Africa is at the forefront aboutthe need for a “Just Energy Transition”.An excellent programme exists to procurethe energy that South Africa needs to expand theeconomy, the Renewable Energy IndependentPower Producer Procurement Programme (REIPPPP).In Round Five of the REIPPPP, the cheapest solargeneration cost was 37.5c/kWh while the best windcost was 34.4c/kWh. These represent remarkablylow costs.Following the announcement by the City ofCape Town that residents could get cash for powerin late 2022, Versofy Solar received 1 500 enquiries inthe month of January and has experienced a surgeof orders for rooftop installations since then.The R130-billion pledged at COP26 by the EU,the US, Germany, France and the UK to assist SouthAfrica’s transition from oil and coal to greenertechnologies is not straightforward; it comes asa mixture of grants, risk-sharing instruments andconcessional finance but it will allow South Africato fund projects that will help the country to moveaway from fossil fuels without further stretchingEskom’s precarious finances.Eskom made a breakthrough in December 2022when South Korean company Hyonsung HeavyIndustries broke ground, signalling the first projectin Eskom’s Battery Energy Storage System (BESS)project. The 8MW facility will move to producingan additional 144MW in the second stage of theproject. In 2023, a larger project at Worcester, HexBESS, was launched. Another company that will beinvolved in Phase 1 of the national rollout of theseprojects is Chinese company Pinggao.In Cape Town a Swedish firm has spent-million setting up an assembly factory forlithium batteries and Bushveld Energy, a subsidiaryof Bushveld Minerals, is producing vanadiumbattery electrolyte at its factory in East London. ■SOUTH AFRICAN BUSINESS 202514PHOTO: TPT

WWW.NORTHERNCAPEBUSINESS.CO.ZAJOIN S ONLINE US ONLINEWWW.GLOBALAFRICANETWORK.COM | WWW.NORTHERNCAPEBU| | 10 REASONSWHY YOU SHOULD INVEST IN SOUTH AFRICA01.HOT EMERGINGMARKETGrowing middle class, affluent consumerbase, excellent returns on investment.02.MOST DIVERSIFIEDECONOMY IN AFRICASouth Africa (SA) has the most industrialised economy in Africa.It is the region’s principal manufacturing hub and a leadingservices destination.LARGEST PRESENCE OF MULTINATIONALSON THE AFRICAN CONTINENTSA is the location of choice of multinationals in Africa.03.Global corporates reap the benefits of doing business inSA, which has a supportive and growing ecosystem as ahub for innovation, technology and fintech.05.FAVOURABLE ACCESS TOGLOBAL MARKETSADVANCED FINANCIAL SERVICES& BANKING SECTORSA has a sophisticated banking sector with a majorfootprint in Africa. It is the continent’s financial hub,with the JSE being Africa’s largest stock exchange bymarket capitalisation.The African Continental Free Trade Area will boostintra-African trade and create a market of over onebillion people and a combined gross domestic product(GDP) of USD2.2-trillion that will unlock industrialdevelopment. SA has several trade agreements inplace as an export platform into global markets.07.YOUNG, EAGER LABOUR FORCE09.SA has a number of world-class universities and collegesproducing a skilled, talented and capable workforce. Itboasts a diversified skills set, emerging talent, a large poolof prospective workers and government support for trainingand skills development.04.06.08.PROGRESSIVECONSTITUTION& INDEPENDENTJUDICIARYSA has a progressive Constitution and an independent judiciary. Thecountry has a mature and accessible legal system, providing certaintyand respect for the rule of law. It is ranked number one in Africa for theprotection of investments and minority investors.ABUNDANT NATURALRESOURCESSA is endowed with an abundance of natural resources. It is the leading producerof platinum-group metals (PGMs) globally. Numerous listed mining companiesoperate in SA, which also has world-renowned underground mining expertise.WORLD-CLASSINFRASTRUCTUREAND LOGISTICSA massive governmental investment programme in infrastructure developmenthas been under way for several years. SA has the largest air, ports and logisticsnetworks in Africa, and is ranked number one in Africa in the World Bank’sLogistics Performance Index.10.SA offers a favourable cost of living, with a diversified cultural, cuisine andsports offering all year round and a world-renowned hospitality sector.EXCELLENT QUALITYOF LIFEPage | 2719SOUTH SOUTH AFRICAN AFRICAN BUSINESS BUSINESS 20232020