Industrial parks and special economic zones could be used to test green technology and build new local supply chains, a Department of Trade, Industry and Competition (dtic) official said.
Gerhard Fourie, the dtic’s chief director for green industries, spoke during a webinar on green industrialisation on September 22. The event was hosted by the United Nations Industrial Development Organisation (Unido) and green economy group GreenCape, Engineering News reported.
“South Africa cannot manufacture everything,” Fourie said. “Industrial spaces can help make the choices facing our industries more practical.”
He said the country is set to spend large sums on renewable energy, battery storage and electricity infrastructure in the coming years. According to Fourie, South Africa must try to keep as much of the value from these investments inside the country.
Fourie said strong and steady demand is what drives industrial growth. “Demand creates markets, predictable markets create investment, and investment creates scale,” he said.
He said South Africa’s industrial development strategy, launched this year, focuses on decarbonisation, digitalisation and diversification. He added that cutting emissions in industry is also an industrial development programme, not only an environmental one.
Unido South Africa project manager Karin Reiss-Haimbala said industrial spaces could become platforms for new clean technology industries, such as renewable energy equipment.
“South Africa’s energy transition is not only an environmental imperative, but also a major industrialisation opportunity,” she said.
Unido energy and climate action manager Rouba Onaissi warned about the risk of untested technology. She said about 35% of the expected cut in industrial greenhouse gas emissions depends on technology that is not yet sold commercially.
Onaissi said demand for low-carbon products is set to rise. She said critical minerals production is expected to triple by 2030.
Ndivhuho Raphulu, director of the National Cleaner Production Centre of South Africa (NCPCSA), said his agency is running pilot projects. These give companies practical examples of cleaner production systems.
Raphulu said the cost of moving to cleaner processes remains a challenge. “Some financial institutions cannot measure the risks associated with the transformation of industrial processes,” he said. He said this makes such funding expensive and discourages companies.
The NCPCSA has developed a green finance business proposal to help companies get funding for cleaner production, according to Raphulu.
GreenCape energy programme manager Jack Radmore said local firms could not compete with China in making solar cells or lithium-ion cells. He said there were still chances to make products for projects in South Africa and Africa.
Radmore listed solar panel mounting and tracking systems, step-up transformers, solar collectors, steel, concrete and internal wind tower parts. He said local makers could also adapt to produce cabling and low and medium voltage electrical equipment.
Nomawethu Qase, renewable energy director at the Department of Electricity and Energy, said her department and the dtic built a public database. It maps what South African manufacturers can make, to support local sourcing.
“The country’s Integrated Resource Plan forecasts 35 GW of renewable energy capacity by 2035,” Radmore said. He said building about 3.5 GW to 5 GW a year would be enough to support steady local manufacturing.
Source: this article is based on reporting by Engineering News. Image: Engineering News. Written with the help of AI and published by the Tzaneen Voice Technology desk. See our Editorial Standards.
Werner Jacobs covers technology for Tzaneen Voice. Werner reports on mobile networks, data prices, internet access, smartphones, apps, AI, cybersecurity and South African tech companies. Each story explains what a new product, price change or policy means for ordinary users in South Africa.