Resources 4 Africa is pleased to announce the 11th edition of its annual Junior Indaba, taking place on 27 & 28 May 2025 in Johannesburg.
Please note that the 2025 Junior Indaba will be held at the Houghton Hotel, Houghton Estate, Johannesburg.
The Junior Indaba is a popular meeting place for junior miners and is enjoyed by all for its incisive, informative and frank discussions tackling the challenges of and opportunities for junior mining and exploration in South Africa and elsewhere in Africa.
Discussions will be framed within the global geopolitical, supply chain and energy shifts taking place and their impact on junior mining. Topics under discussion will include the demand for critical metals, the global outlook for commodities, investors’ perspectives on junior mining projects, ESG considerations and much, much more.
Attend and participate in the all-important conversations which will address questions including:
How can we create an enabling environment for junior mining and exploration in South Africa?
What are the latest updates on the South African cadastral system?
How can junior miners and investors manage the risks of operating/investing in Africa?
How are juniors addressing the challenges of ESG requirements and energy security/transition concerns?
How can juniors overcome the obstacles to obtaining financing for their projects?
What is the role of junior miners in meeting the demand for critical minerals and metals?
What lessons can be learned from successful junior miners who have managed to successfully get a project off the ground?
What technological innovations can be implemented for junior mining and exploration projects?
Discover the Future of Supply Chain at the 2025 SAPICS Conference
Supply chain professionals from around the world and across industries will gather at Century City Conference Centre, Cape Town this June for SAPICS 2025!
The SAPICS Annual Conference, Africa’s leading event for supply chain professionals, is proud to host Demand Driven World for the first time in its history.
Why Attend?
Two Events, One Destination: Enjoy full access to the full conference programme, including both SAPICS and Demand Driven World sessions, with a single registration.
Unparalleled Learning Opportunities: Explore diverse topics and groundbreaking insights from global supply chain leaders.
Expanded Networking: Connect with a broader community of industry professionals in one place.
Join us as two powerful events come together to create a transformative experience for the supply chain community. Don’t miss this historic opportunity to expand your knowledge, build connections, and shape the future of the industry.
Register now to be part of SAPICS 2025 and Demand Driven World – one incredible destination for supply chain excellence and discover true Innovation in Motion!
The success of small businesses – which are the backbone of South Africa’s economy – is being jeopardised by a lack of resources, skills and support in the critical area of supply chain management, according to supply chain industry body SAPICS.
“Small, medium and micro enterprises (SMMEs) have a crucial role to play in the national economy as employers that can fight the country’s dire unemployment rate and drivers of inclusive economic growth. A major factor in the growth and development of SMMEs is an understanding of operations and supply chain management best practices, but they are falling short and big business needs to step up,” says SAPICS president MJ Schoemaker.
“Small businesses have so many responsibilities, and so many things to consider, that the essential supply chain function is often overlooked. But it can make or break the business and is increasingly important in today’s complex and volatile business environment,” she states.
Corporates can support their suppliers with SAPICS Small Business Hub sponsorship
Schoemaker says that the SAPICS training and support programme for SMMEs offers a solution. A vital lifeline for small businesses that must navigate the turbulent supply chain landscape, the SAPICS Small Business Hub is also a valuable conduit for corporate businesses to support SMMEs and participate in the development of their suppliers. SAPICS is urging corporates to sponsor Small Business Hub membership for their suppliers. “Businesses can earn Enterprise and Supplier Development (ESD) points while empowering and uplifting SMMEs and upskilling their own supplier base,” Shoemaker expands.
“Usually, training for SMMEs focuses on aspects such as marketing and finance, leaving operational skills undeveloped. To survive and thrive, SMMEs need to address the knowledge gaps that exist, including in supply chain management.”
For an annual membership fee, SMMEs can join the SAPICS Small Business Hub and reap the benefits of skills development and knowledge sharing activities like workshops and webinars. They can expand their professional network and have regular face to face and online interaction with the SAPICS supply chain community across Africa. They can enjoy discounted registration fees for industry events, including the annual SAPICS Conference, the leading event in Africa for the supply chain profession.
The topics covered in SAPICS’s skills development events specifically for SMMEs include introductions to supply chain management, demand planning, and sales and operations planning. Case studies and success stories are covered and SMMEs receive advice from industry leaders. Accredited education programmes are also offered and can be sponsored by corporates to grow and develop their suppliers. These focus on specific aspects of supply chain management – like warehouse control, inventory replenishment principles, operational planning and scheduling, lean manufacturing principles and supply chain and materials management – as well as general entrepreneurial topics like business management and basic finance.
A SAPICS SMME Support Line enables small business owners to get advice and assistance.
“When it comes to reaping the benefits of supply chain optimisation – including efficiency enhancements and cost savings – SMMEs are being left behind, but we can change this, and corporates have a role to play,” Shoemaker stresses.
Welcome to the 12th annual gathering in Western Cape
Under the theme “Blueprint to Impact: Creating a Legacy of Growth,” this year’s conference is a call to action for all who are passionate about shaping a sustainable and prosperous future.
Amid evolving legislative frameworks and critical infrastructure and energy challenges, this event provides an essential platform for leaders, experts, and stakeholders to unite, exchange knowledge, and forge impactful partnerships.
Supported by the Western Cape Provincial Treasury and Department of Infrastructure, the conference will convene officials from municipalities and government departments, as well as prominent engineers and asset management practitioners. Together, we will explore forward-thinking strategies that address immediate needs while building resilient systems for long-term growth and economic transformation.
To better understand the concept of “wheeling”, Opportunity sat down with the Chairman of the South African Independent Power Producers Association (SAIPPA), Brian Day, on the sidelines of the Africa Renewable Investment Summit (ARIS) in November 2024.
What is wheeling?
An example is power being generated in the Eastern Cape by an independent power producer (IPP) and power being used by a customer in Mpumalanga. When your customer and your generator are both connected directly to Eskom, you have a wheeling arrangement.
But it is not literally that same power?
It’s different electrons and it’s a book entry. It’s a commercial arrangement and there are loss factors based on the relative geographies of the two to be taken into account.
The customer has an electricity supply agreement with Eskom and the generator has a connection and use-of-system agreement with Eskom. All the electricity comes through the Eskom meter but some of that came from the IPP. The credit on the customer’s bill is enough to pay the power-purchase agreement (PPA) to the generator.
And wheeling is catching on?
Slowly, and limited to big customers. In the future, in the same way you buy pencils at the corner shop you would buy electrons. Such a market at the wholesale level is being developed, while the retail market is some way off. Developing a market for power is where we are going. Mulilo has reached financial close on two Eastern Cape projects for 260MW total for a combined off-take by Sasol and Air Liquide for their Secunda operations.
Sasol needs a lot of power for its operations, not so?
Sasol was at the forefront of wheeling, much of which was initially done between their facilities in Sasolburg and Secunda. Eskom designed wheeling largely for Sasol because it is a massive prosumer, both a consumer and a producer of power. It’s an intriguing concept in the electricity space; other companies like [timber and dissolving pulp producer] SAPPI are prosumers because they have excess heat, which is excess energy and can be converted to electricity.
What is an aggregator?
A company trying to trade electricity.
Are we moving towards having a seamless market for such trading?
We are moving there now more than ever before and in the last year there has been significant progress.
Are there obstacles?
Brian Day, Chairman of the South African Independent Power Producers Association (SAIPPA).
The Electricity Regulation Amendment Act was promulgated on 1 January 2024, with some parts postponed, despite the complaints of the South African Local Government Association (SALGA) and municipalities.
Municipalities have a distribution licence and the word in the legislation and regulations is “supply”, but that is distinct from a trading licence which is the buying and selling: it is like running a fleet of trucks on somebody else’s freeway. Some other people need to do their job too, most notably the National Energy Regulator of South Africa (NERSA).
Can municipalities protect themselves from losing future revenue by building a solar farm?
A municipality can do three things: they can procure from an IPP who builds for them, they can establish new generators themselves or they can establish wheeling frameworks so that third parties establish new generators and sell to other third parties where they don’t have the onerous task of being the balance sheet. By wheeling, they are making their “road” available to willing people.
But does the road belong to the city? Does it not belong to Eskom?
It belongs to Eskom only up to a point, but then it gets to a point where the grid belongs to the city and that’s the problem. As I said about the big Sasol wheeling projects, if both the customer and the generator are connected directly to Eskom then it works. If one or other or both are connected to a municipal grid which in turn is connected to Eskom, you then have to make these arrangements with both the entities. And that’s when it gets more difficult.
For information on the South African Independent Power Producers Association: www.saippa.org.za
South Africa has made significant progress in transferring its government, businesses, and public services to digital platforms, thereby promoting inclusive growth. The key to this transition is increasing access to digital technologies and ensuring that all citizens are included in the digital world through effective regulations.
The South Africa Connect (SA Connect) effort, which began in 2018, intends to connect under-served and rural areas by linking 42,000 government buildings, including schools and healthcare facilities, by 2026. Phase 1 connected 970 government buildings in eight rural districts, laying the framework for future growth.
Phase 2, which began in late 2023, aims to connect an additional 882,000 households with an R2.4-billion investment. This phase also involves a feasibility assessment conducted in partnership with the Popular Bank of Southern Africa to identify the most effective rollout techniques. Through these initiatives, the program hopes to minimise the digital divide, promote digital inclusion, and enable residents to participate in the digital economy, thereby promoting both social and economic progress.
Overview of the event
The 35th Edition of the Digital Transformation Summit is a leading global event that brings together over 300 C-Level Executives, Directors, and Heads of Technology to explore groundbreaking advancements in AI, Web 3.0, IoT, Quantum Computing, Cybersecurity, and other Fourth Industrial Revolution (4IR) technologies. Offering essential insights to help businesses navigate digital transformation, enhance operational efficiency and stay competitive in an ever-evolving digital landscape, this summit provides attendees with actionable strategies to drive meaningful change and maintain an edge in their industries. Held under the theme “Mapping South Africa’s Digital Future & Beyond,” the event will take place on 12 March 2025, from 09:00 AM to 05:00 Pm at Qurtuba Convention Centre, Johannesburg.
Who will Speak?
Dr Denisha Jairam-Owthar – Group Chief Information Officer, Council for Medical Schemes.
Khetha Cele – Group Chief Information Officer, IDFC.
Mahendra Beharie – Chief Information Officer, Sub Saharan Africa, DHL Express.
Faith Burn, Chief Information Officer, Eskom Holdings SOC Ltd.
The event will cover topics like:
South Africa’s Digital Future: A Roadmap for National Transformation.
Unlocking South Africa’s Potential: The Transformative Power of Big Data and Gen AI.
Navigating Sustainable Digital Transformation: Innovation, Resilience, and Economic Growth.
South Africa’s Digital Infrastructure: A Catalyst for Economic Prosperity.
From Data to Action: How Advanced Technologies Drive Customer Experience Strategies.
Securing South Africa’s Digital Landscape: Addressing Emerging Cyber Threats.
Cars powered by hydrogen are on the road. Credit: BMW
What The Economist¹ says is happening in the world, GreenCape asserts is taking place in South Africa. Both the UK newspaper and the not-for-profit company concluded within a couple of months of one another in the middle of 2024 that solar is winning.
The Economist’s special section on the topic made the point that the progress of solar technology is so fast and so widespread that it almost doesn’t matter that there is some resistance to it: the battle is over. Some statistics put forward in the newspaper included:
The levelised cost of solar since the 1960s has gone down by a factor of more than 1 000
China’s solar panel capacity is 3.5TW
Battery operators in Texas recorded revenues in 2023 of $523-million
Whereas it took a year for the world to create 1GW of solar power in 2004, it now takes days (Source: Michael Liebreich)
Closer to home, GreenCape’s “Energy Services Market Intelligence Report 2024” noted a 52% increase in rooftop solar PV installations in South Africa, to 3.2GW from the beginning of 2022 to the first quarter of 2023. They assessed that market value at R41.6-billion and predicted that installed capacity will increase by 2030 to 10GW with a market value of R130-billion.
GreenCape also made observations about South Africa’s automotive industry. Given that the US is likely to want to pivot away trade with China, South Africa’s OEMs need to speed up the production of electric vehicles (EVs). The report noted that with many OEMs in the Eastern Cape, the creation of “large-scale renewable energy plants, such as wind and solar” would support this process. GreenCape market intelligence reports are published in partnership with UK PACT.
One of South Africa’s most successful investment projects, the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP), suffered a setback in the period between 2015 and 2021 but investors are again queuing up to take a stake in greener energy.
According to the Presidential Climate Commission, the pipeline of REIPPPP projects stood at R377-billion in June 2024. Applications for the development of 4.5GW were received in 2023, sharply up from the two previous years, 135MW (2021) and 1.6GW (2022). The establishment of a one-stop shop to deal with registering projects is part of the reason for the expansion of potential new capacity.
The problem is that South Africa has now come up against the constraints of the national grid. In the most recent round of bidding for projects, the Northern Cape received fewer projects than it otherwise would have if the national grid was keeping up with increased generation potential of new projects. This gives Mpumalanga a comparative advantage. With most of South Africa’s power stations located in Mpumalanga, the issue of grid capacity does not arise.
Automotive manufacturers have not gone all in on switching to producing electric vehicles (EVs), not least because global and local consumers have been somewhat hesitant to commit fully to EV options. There have also been calls from the industry for national government to give guidance in terms of how much support can be expected for the rolling out of incentives to produce EVs and in terms of providing supporting infrastructure, such as charging points.
Ford Motor Company, in announcing a range of investments at their sites in Tshwane and Gqeberha, set aside an amount of R5.2-billion for the production of the hybrid-electric Ranger bakkie to be built in Gauteng. Mercedes-Benz South Africa now makes two plug-in hybrid-electric vehicles at its East London plant, although only one of those is sold in South Africa.
The Automotive Industry Development Centre (AIDC) Eastern Cape is taking steps to prepare the province for EVs through its eMobility and Climate Change Support Business Unit. A high-profile aspect of the unit’s work has been the creation of EV charging stations in different parts of the Eastern Cape, including Gqeberha, East London and the Tsitsikamma. Education, research and the promotion of the idea of EV travel, including through the conversion of bus fleets, form important parts of the work of the unit.
Wheeling
Another big change that has come to South Africa’s energy landscape is the concept of “wheeling”. This entails power being generated specifically for a customer and “wheeled” along the grid to that customer from a supplier of energy. For this to work the grid has to be neutral and for that to be a reality, Eskom had to be unbundled, a process that has begun.
The model might entail a high-energy-use company entering a contract with a renewables company to supply it, as is the case with the Impofu Wind Farm complex comprising three 110MW facilities in the Eastern Cape, which will supply energy to Sasol and Air Liquide in Mpumalanga. Enel Green Power and Red Cap are building the R9-billion project. Another example is the joint venture called Envusa Energy, which is the new partnership between EDF Renewables and Anglo American.
Moving massive wind turbines can be a tricky business. Credit: Nordex Energy
Envusa Energy is putting up 50 Nordex turbines on Umsobomvu and Hartebeesthoek wind farms which form part of the Koruson 2 cluster, a blended wind and solar project which is partly in the Eastern Cape and partly in the Northern Cape.
An alternate model is emerging with the creation of energy aggregators, companies that can buy and sell at scale. National regulations on how much electricity private generators could sell fell away in 2023 and that has liberalised and turbo-charged the market. Some of the new aggregator companies include Discovery Green, NOA, Etana Energy and Lyra Energy.
Battery storage is increasingly becoming an important part of hybrid projects and a move in November 2023 by the JSE, Africa’s biggest stock market, signalled another landmark on the renewable energy landscape.
JSE Ventures has initiated a Voluntary Carbon Market together with US company Xpansiv, with the aim of creating a market for carbon credits.
Wind power is not being left behind, though. In Mpumalanga, Seriti Green has broken ground on a project that will deliver 750MW of wind from 130m towers when it is complete. In addition, the hybrid model will include 100MW of solar and 800MW of battery.
The greater Humansdorp Jeffreys Bay area hosts no fewer than 13 wind farms so the announcement in March 2024 that Nordex Energy South Africa is to start making concrete tower sections at a manufacturing facility in Humansdorp makes economic sense.
Up to 300 jobs will be created and work at the tower factory is expected to start in Q1 2024 with the first set of turbines due to be installed in the second half of the year. Having invested in the Eastern Cape since 2013, Nordex Energy South Africa boasts a significant footprint in the province, including a warehouse in Gqeberha and 573MW of installed capacity across five wind-power plants.
The latest large resources company to announce a 20-year power-purchase agreement is Richards Bay Minerals. Khangela Emoyeni Wind Farm will supply the miner with 140MW from the huge renewable-energy generator that rolls over a series of mountains on the edge of the Western and Northern Cape provinces.
Certain manufacturing companies that have access to biomass that results from the manufacturing process, such as woodchips for Sappi and bagasse in the case of sugar producers such as Tongaat Hulett and Illovo, are in a position to produce their own energy.
However, there are industries where signing offtake agreements with renewable energy producers is the more logical route to take. In fact, even PGM miner Ivanhoe Mines, despite having its own plans to produce solar power, has signed an offtake agreement with Renergen.
The thickets of the complex legal and regulatory landscape of renewable energy are redefining commercial law in South Africa. Credit: Enel Green Power
As South Africa continues its journey toward a sustainable energy future, wind energy has emerged as a crucial element of the country’s renewable energy mix. With its rich wind resources and increasing demand for clean energy, the sector is well-positioned to contribute significantly to the nation’s energy goals. Despite this promising outlook, several significant challenges could impede its growth.
The complexities of project development, grid connections and regulatory compliance have increased significantly as the domestic market has matured.
Says Chirwa, “Given the many challenges, the role of commercial law has become crucial in advancing the sector and highlighting the urgent need for legal reforms. This has transformed commercial law into an indispensable tool for navigating the complex legal and regulatory landscape of renewable energy projects.”
One of the primary hurdles is the regulatory environment, where existing regulations are often complex and outdated, leading to administrative bottlenecks that impede project development. Simplifying and modernising these regulations is essential for fostering a more supportive environment that promotes innovation and attracts investment.
…the role of commercial law has become crucial in advancing the sector and highlighting the urgent need for legal reforms. This has transformed commercial law into an indispensable tool for navigating the complex legal and regulatory landscape of renewable energy projects.
Financial constraints also pose a significant challenge, with the perception of the high financial risks associated with wind-energy projects making it difficult to secure funding.
“To attract both local and international investors, it is essential to have legal reforms that clarify risk management strategies and provide financial incentives. Such reforms can help mitigate perceived risks and accelerate the deployment of wind-energy projects,” adds Chirwa.
Furthermore, land acquisition for wind-farm projects presents another critical obstacle. The process can be lengthy and contentious, involving multiple approvals and potential disputes that cause delays. Here, effective legal frameworks are needed to streamline land acquisition processes, reduce delays and resolve conflicts efficiently, facilitating quicker project execution.
Additionally, integrating wind energy into South Africa’s national grid involves technical and regulatory challenges. Developing robust legal frameworks to support seamless grid connections and infrastructure investments is essential for ensuring that wind power can be harnessed and distributed effectively across the country.
Critical role for commercial law
The role of commercial law is becoming increasingly critical in overcoming the challenges faced by the renewable-energy sector. As the sector experiences rapid growth, commercial law has had to adapt, demanding a more in-depth engagement with technical aspects and a stronger grasp of regulatory policies. This transformation underscores the importance of legal expertise in navigating the complexities of renewable-energy projects.
Lena Chirwa, Enel Green Power Head of Legal & Corporate Affairs and South African Wind Energy Association (SAWEA) board member.
Commercial lawyers play a critical role in navigating these complexities, with Chirwa adding that she has adapted to engage more deeply with the technical aspects of a project and garnered a deeper understanding of the regulatory policies related to the industry.
“As commercial lawyers, our involvement in contractual negotiations is essential for addressing risk-allocation issues and streamlining transaction processes,” she says. “By managing these aspects effectively, we contribute significantly to the successful implementation of renewable-energy projects.”
Looking at global examples, Germany in particular, underscores the argument for legal reforms in South Africa’s wind-energy sector. Here, regulatory changes, such as streamlined permitting processes and clear legal frameworks, have played a pivotal role in positioning the country as a global leader in wind energy.
The future of South Africa’s renewable-energy sector depends on the willingness of stakeholders, government, investors and legal professionals alike, to adapt and collaborate.
Drawing parallels to these successes can highlight the potential impact of similar reforms in South Africa, making a compelling case for how targeted legal changes could accelerate the country’s adoption of renewable energy.
To fully realise the transformative potential of wind energy in South Africa, it is not enough to merely identify the challenges. Action is required, and legal reforms that streamline regulations, mitigate financial risks and simplify land-acquisition processes will unlock new opportunities for innovation and growth.
The future of South Africa’s renewable-energy sector depends on the willingness of stakeholders, government, investors and legal professionals alike, to adapt and collaborate. By embracing these changes, South Africa can not only meet its energy goals, but position itself as a leader in the global shift towards a sustainable future.
Founded in 1998, the South African Wind Energy Association (SAWEA) stands as a leading advocate for the wind-energy sector in South Africa. As a non-profit organisation, SAWEA promotes the advancement of sustainable energy practices, policies and investment in South Africa, while advocating for socio-economic development and energy transformation through wind power.
SAWEA is dedicated to fulfilling its purpose as a dynamic force within the wind industry with a primary focus on supporting its members and advancing the integration of wind energy onto the grid. Central to SAWEA’s strategic priorities is the active engagement of members on industry matters and the strategic aligning with stakeholders for focused collaboration to foster a just energy transition in South Africa.
The year 2025 marks a significant milestone in the remarkable history of Medihelp Medical Scheme as the medical aid provider proudly celebrates 120 years of service in the industry. As South Africa’s oldest medical scheme, Medihelp has achieved unparalleled longevity, demonstrating resilience and a commitment to helping generations of South Africans access quality healthcare.
Founded in 1905, Medihelp’s rich legacy is built on a foundation of adapting to the ever-changing healthcare landscape while remaining steadfast in its core purpose: to support members in taking care of their health and mental well-being. This enduring mission has positioned Medihelp as a leader in providing comprehensive medical cover that evolves with the needs and values of its members.
“Reaching 120 years is an extraordinary achievement that reflects the trust and loyalty of our members and the dedication of our teams,” says Varsha Vala, Principal Officer of Medihelp. “Our longevity is a testament to our ability to adapt to the times while remaining true to our core values. We are proud to have been playing a pivotal role in the lives of South Africans for more than a century.”
Throughout its history, Medihelp has continuously evolved its offerings to meet the demands of a dynamic healthcare environment. From its early days of providing basic medical cover to today’s comprehensive, tailored solutions, Medihelp has consistently placed the well-being of its members at the forefront of its operations.
Holistic healthcare
In recent years, Medihelp has focused on promoting mental well-being alongside physical health, recognising the importance of holistic healthcare. This approach has resonated with modern South Africans who prioritise their overall wellness and strive to live life to the fullest.
“Our members are at the heart of everything we do,” Vala continues. “We remain committed to being their trusted healthcare partner, providing peace of mind and confidence that their healthcare cover is in capable hands.”
As part of the 120-year celebrations, Medihelp will launch various initiatives promoting healthy living and mental well-being. These include wellness programmes, community outreach and educational campaigns aimed at empowering South Africans to be the custodian of their health and well-being.
Our members are at the heart of everything we do. We remain committed to being their trusted healthcare partner, providing peace of mind and confidence that their healthcare cover is in capable hands. — Varsha Vala, Principal Officer of Medihelp
Medihelp’s ongoing success is rooted in its ability to stay relevant and innovative while maintaining its core purpose. Its focus on value-driven, member-centric solutions has allowed the Scheme to successfully navigate various challenges over the years, including regulatory changes and the shifting healthcare demands of the population.
Looking to the future, Medihelp remains steadfast in its commitment to funding access to quality healthcare that aligns with its members’ changing needs. Medihelp Medical Scheme’s 120-year milestone is not only a celebration of its past achievements but also a reaffirmation of its dedication to supporting South Africans on their health journeys for generations to come.
About Medihelp Medical Scheme
Medihelp Medical Scheme is one of the five largest open medical schemes in South Africa and also its oldest, established in 1905. With a 120-year legacy, Medihelp continues to provide comprehensive medical aid solutions that prioritise the physical and mental well-being of its members. By offering accessible and sustainable medical aid plans, the Scheme is committed to empowering South Africans to live healthier, more fulfilling lives.
Varsha Vala, Principal Officer of Medihelp.
Principles of success
Building a business that lasts 120 years requires a combination of adaptability, resilience and a deep understanding of market dynamics. Here are Varsha’s key principles to achieve such long-term success:
Build a strong foundation.
Establish a clear mission and strong core values that can guide decision-making across generations. Plan with a multi-generational mindset rather than short-term gains and maintain integrity and strong governance to build trust.
Adapt to change.
Foster a culture of learning to keep evolving with market trends and consistently adapt to changing customer needs and expectations.
Build a resilient brand.
Ensure your products and services maintain high standards over time. Develop strong relationships with customers that pass through generations.
Nurture human capital.
Treat employees as long-term partners, not just workers. Prepare and mentor future leaders early and foster a culture that retains talent and promotes growth.
Balance tradition and innovation.
Respect legacy. Preserve what makes the company unique while modernising where necessary.
Leverage technology and digital transformation.
Implement modern technology without losing sight of core business principles and use analytics and AI to optimise operations and customer engagement.
Thembani Marhanele is the Chair of the Tariffs and Wheeling Workgroup of the South African Independent Power Producers Association (SAIPPA). In that capacity, and as founder and CEO of Jeka Energy, he deals daily with issues central to the future of South Africa’s energy landscape. Opportunity spoke with him via an electronic connection made possible by electricity.
What is your background and how did you get into energy as a career?
I was in logistics as a mining service provider and I was introduced to Renewable Energy Technologies at the Mining Indaba in 2013. I studied Renewable Energy Project Development through the Renewables Academy (RENAC) in Germany where I received an International Certification in Renewable-Energy-Project Development in 2016. When I came back, I started a company called Jeka Resources (Jeka means light in Shona).
Jeka Energy was established as a subsidiary and it has focussed on large-scale project development since 2017. We have self-funded the development of a utility-scale 90MW project that will connect to a municipality’s distribution lines in Limpopo that is almost at financial close. We also do some smaller Commercial and Industrial (C&I) projects in South Africa. Our portfolio stands at about 20MW combined: We design, build, own and operate Green Power Plants for our clients through power-purchase agreements (PPAs).
When you say a bit smaller are you talking about a supermarket roof?
Roof or ground-mounted solar installation from 50kWp to 2MW (megawatts). A small office installation could be 50kWp with battery storage. A commercial building or office block could be about 100kWp to 1MW. Also, the rooftop installations at shopping centres and malls ranges from 100kWp to 5MW. We are also developing utility-scale projects in Zambia, Zimbabwe and Botswana.
Is the business growing?
Yes, and we have also been growing in SADC.
How many utility-scale projects have you done or are you doing?
In South Africa, almost 350MW, with 100MW developed for municipalities (90MW in Polokwane and 10MW with Ekurhuleni). The other 250MW projects are developed for private off-takers, being your large power users like mining houses and industry to conclude through PPAs with wheeling arrangements. They sometimes have challenges regarding land or space where they operate, limiting their ability to install large solar plants.
We are also co-developing projects in Zimbabwe (100MW), Zambia (150MW) and Botswana (5MW). We are looking into private PPAs, wherein wheeling power to private large power users becomes an everyday conversation
And so you have direct experience of that which you are talking about as the chairman of the SAIPPA working group?
Yes, we are engaging with Eskom and other stakeholders in trying to design financial models that make business sense. The tariff must make business sense to the developer and benefit the client, including the cost implications of wheeling power through the Eskom grid. We already have success stories of signed wheeling agreements in South Africa which shows progress in the kind of engagements that shape those conversations.
The tariff must make business sense to the developer and benefit the client, including the cost implications of wheeling power through the Eskom grid.
How have you found the wheeling environment?
In the beginning it was very difficult, especially for clients that are behind the municipal meter instead of Eskom. The success (even though it took longer than expected) of the Bio2watt-BMW-Tshwane project serves as a success story. The wheeling environment for clients behind the Eskom meter was also very challenging as most of the large power users (as potential off-takers) currently have very low tariffs. The benefits that come with renewable energy as an energy source also rely on policy adoptions that include tax incentives.
Please expand on the business sense issue.
The client could be paying 60 cents per kilowatt to Eskom, for example. If I then want to sell that client green power through a wheeling agreement, the simulated cost savings (ideally below the current tariff that they are paying) and tax incentives should make financial sense and add value to our clients. We also look into socio-economic strategies like localisation and direct community involvement within the value chain of delivering those projects to foster social-cohesion.
Does SAIPPA have direct communication with Eskom?
SAIPPA has a multi-pronged approach. We interrogate the NERSA processes and we have working groups that interact with different stakeholders. As an industry body we serve as the platform where IPPs, government, private sector, professionals and communities at large can engage and contribute to a zero-carbon future. Our membership is so diverse that all stakeholders come into one conversation and try to find solutions.
Our platforms are also used in sharing the feedback from all our engagement with stakeholders to benefit those that were not part of those conversations.
Are more power producers wanting to use the wheeling model?
Definitely. A key aspect is space availability. Roofs that were designed long ago do not have the structural integrity to carry the weight of solar panels for power to be produced from their roof for self-consumption. For large power users, how can you access green power cheaper without having to sacrifice land that is earmarked for future operations? In those cases, the other option is to negotiate a wheeling agreement where the solar installation is on land available closer to grid connection points.
Are your interventions being heard at policy level?
Yes, definitely. The beauty about it is that there are a lot of stakeholders besides SAIPPA that are advancing technology-specific policies like SAPVIA (solar PV), SAWEA (wind), etc. SAIPPA is an overarching association and we are not technology based. We are looking at the industry as a whole and engaging with all industry stakeholders and players.
Thembani Marhanele, the Chair of the Tariffs and Wheeling Workgroup of SAIPPA.
There has been a lot of improvement in terms of the industry coming together and the conversations on different platforms created to advance and support our country strategies. The alignment of industry players with some of the stakeholders like potential funders is energising.
Do you believe the renewable energy sector is on the up and up?
Definitely. A good thing is that most of the business cases in terms of renewable energy for C&I and utility projects were not based on loadshedding as they would have been for households.
Businesses need uninterrupted power solutions designed to make sure that they can continue on a daily basis without further interruptions to operations due to power failures. The daily costs of loadshedding on our economy was measured and published. Power interruptions costs a lot of money to business.
How important is it for the renewable energy sector that Eskom completes its split into three divisions?
The debundling of Eskom into the three divisions is another one of the positive contributions, as the new focus on strengthening grid access also advances the green-energy business case. It is critical. We need a division that’s focused on transmission, strongly focussed. All the assets that Eskom owns need to be used optimally.
Is there scope to grow the sector?
Government, industry, communities and all other stakeholders have created multiple platforms that are advancing conversations and strategies for us as a country to achieve our country sustainability goals. The sector is also growing with advancement of other technologies for power generation like hydrogen.
Government support in policies that include social-cohesion strategies and localisation are also contributing positively to the sector growing that should be inclusive.
When you talk to a smaller service provider who is just installing small solar-power PV rooftop to households, they have no idea about opportunities to sell power through a wheeling engagement. They are not building business cases that allow them to grow, but solving that one problem, “Loadshedding”. As an Association we have a duty to inform and foster conversations that will elevate such energy businesses to eventually become IPPs.
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“Reaching 120 years is an extraordinary achievement that reflects the trust and loyalty of our members and the dedication of our teams,” says Varsha Vala, Principal Officer of Medihelp. “Our longevity is a testament to our ability to adapt to the times while remaining true to our core values. We are proud to have been playing a pivotal role in the lives of South Africans for more than a century.”
