The Department of Energy and Electricity (DEE) hosted an important engagement to discuss the Independent Transmission Program (ITP). The session brought together manufacturers, contractors, policymakers, and energy stakeholders to chart a path for inclusive participation in South Africa’s transmission build programme
Present at the event, The Steel and Engineering Industries Federation of Southern Africa (SEIFSA), the Power Line Association of South Africa (POLASA), and the Manufacturing Circle jointly presented a paper titled “From Grid to Growth: Global Insights and Local Action for Transmission Industrialisation”.
The position emphasised that the ITP presents a once-in-a-generation opportunity to strengthen local industrial capacity, create jobs, and position South Africa as a competitive player in the global transmission supply chain.
Speaking at the event, the industry associations underscored that South Africa has the expertise and experience to build its grid again. The country’s past successes in transmission infrastructure were driven by local contractors and manufacturers, and the same capability remains within reach if supported by deliberate policy and procurement alignment.
“The ITP is not only an energy infrastructure project — it is a national industrialisation and economic recovery opportunity,” the associations stressed, and by leveraging local capacity, South Africa can secure its energy future while simultaneously driving reindustrialisation and job creation.
The discussions highlighted that the competitiveness of local manufacturing improves significantly with scale. Studies show that the price per ton for locally produced transmission components decreases as procurement volumes rise, allowing local producers to compete effectively with imports. Ensuring steady and predictable demand through the ITP will therefore be critical to unlocking economies of scale.
Key Proposals from Industry
The three organisations tabled a unified set of recommendations to ensure meaningful local participation in the ITP:
- Equity Participation – Requiring that the majority equity holder in South African consortia possess relevant technical expertise, with mandatory inclusion of South African contractors and/or manufacturers.
- Local Content Provisions – Including clauses that specify minimum percentages of locally sourced products and services, aligned with the Department of Trade, Industry and Competition (the DTIC) and National Treasury designations.
- Sectoral Industrialisation Commitment – Ensuring that where possible steelwork and hardware components are locally manufactured, as South African firms already have established capability in these areas.
Providing certainty of demand is key, noted the associations . If industry knows what volumes will be procured locally, it can confidently invest in expanding manufacturing capacity — and that investment will translate directly into jobs and industrial growth.
This is an opportunity to not only meet our domestic infrastructure needs, but also to build capacity that can serve the rest of the African continent. With the right policies, the ITP can become a launchpad for export-led growth in engineering and manufacturing.
The presentation concluded with a call for continued collaboration between government, industry, and financiers to ensure that South Africa’s transmission build is both technically robust and economically transformative.
Through coordinated industrial policy, strategic procurement, and inclusive participation, the ITP can serve as a catalyst for long-term industrial expansion, job creation, and regional competitiveness.