The war in the Middle East is likely to harm the global economy and South Africa’s government needs to support local businesses in the work to contain the impact, business organisation Business Leadership South Africa CEO Busi Mavuso emphasises in her latest weekly newsletter. She highlights concerns about the impact on the fuel price, with the mining sector set to be affected considerably, with costs going up for diesel-dependent road and rail transport, as well as impacting on operating costs at the mines.
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As South Africa scales up utility-scale solar, what needs to be done well from the start? Find out from the very highly experienced Derick Botha, the Senior Advisor of GameChange Solar, who shares the learnings of his long solar career, which began in South Africa in 1997 and expanded globally.
Surging electricity demand, ageing infrastructure, and tightening climate commitments are converging into a high-stakes test for utilities, particularly in Africa, and the only viable response is an urgent, end-to-end digital energy strategy, says Martin Kuhlmann, Energy Solutions Digital Head for Hitachi Energy in Africa, a global leader in electrification. At the heart of this energy shift is an unprecedented change in how electricity is generated and consumed.
As African countries respond to global pressure to transition to renewable energy while also addressing urgent development and energy needs, the focus should not be on moving away from coal, but rather on decarbonising its industrial use, says University of the Witwatersrand chemical and metallurgical engineering senior lecturer Dr Nandi Malumbazo. The global decarbonisation agenda should extend beyond the power sector, as all industrial sectors reliant on carbon-based raw materials face similar pressures. African governments, she adds, must carefully consider whether and how their economies can afford such a transition.
Africa has the potential to bypass a century of centralised, carbon-heavy power systems and move straight to a digital, distributed and low-carbon grid, but only if project execution matches project ambition, says global energy technology company Schneider Electric Middle East and Africa Zone president Walid Sheta. He argues that electrification, efficiency and smart grid management form the continent’s fastest route to economic growth and, in elaborating on Africa’s energy transition, he says that demand fundamentals create “an historic opening”.
South Africa’s energy transition is on the right track, but structural grid constraints, slow climate finance deployment and the socioeconomic realities of the coal regions threaten to hinder progress, states academic and political analyst Dr Oscar van Heerden. Van Heerden says that growing renewable-energy activity and recent regulatory reforms signal positive momentum; however, the pace and design of the just energy transition (JET) will determine whether it succeeds economically and socially.
Africa’s energy transition presents a significant opportunity to expand electricity access, stimulate industrial growth and attract private capital, provided that investment frameworks, grid infrastructure and policy certainty evolve to support long-term deployment, highlights Boston Consulting Group MD and partner Kesh Mudaly. He notes that while substantial global capital is earmarked for the energy transition, emerging markets continue to face structural barriers that slow investment, adding that the challenge is therefore not just the absence of capital scarcity, but the mechanisms required to mobilise and deploy it effectively.
Glencore’s South African ferrochrome unit could walk away from talks with the government over a discounted electricity package due to what it sees as unfavourable conditions, an executive said on Thursday. Glencore has said it requires reduced tariffs to keep its loss-making smelters open and avert job cuts. The government is keen to save the smelters, which employ thousands and are major customers of the state-owned electricity supplier Eskom.
Beyond traditional infrastructure and financing structures, a new generation of partnerships is beginning to shape how energy projects interact with the communities around them. As Africa accelerates efforts to close its infrastructure gap and expand energy access, one reality is increasingly clear, that cross-border growth cannot be delivered in isolation. Across energy, mining and large-scale infrastructure, sustainable expansion depends on carefully structured, value-aligned partnerships.
As South Africa’s electricity market shifts into competitive mode, 2026 may be a year of deal-making and portfolio realignment across the energy value chain, states law firm Webber Wentzel. The firm expects to see increased activity in mergers, acquisitions and strategic joint ventures as international investors and regional platforms look for scalable entry points.
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