Clean Technology Component Manufacturing

W1 Hero | Clean Technology & Green Economy | InvestSA
Clean Technology & Green Economy

South Africa:
Africa's Clean Technology
Manufacturing Hub

South Africa's 32 GW renewable energy build-out to 2030 creates a captive, growing market for clean technology components. 90% of inverters and 60% of transformers are currently imported. That is the manufacturing opportunity: domestic demand, an unmet supply gap, policy-backed localisation targets, and preferential access to Africa's 240 GW pipeline by 2030 through AfCFTA.

>15 GW
Installed Renewable Capacity
Connected or under construction (2024) | GreenCape MIR 2025
10.5 GW
Private Sector NERSA Registrations Since 2021
3,000% growth in 2 years | NERSA Q3 2024 (via GreenCape VP June 2025)
90%
of SA Inverters Currently Imported
Import substitution opportunity | Green Economy Value Proposition, June 2025
32 GW
Renewable Energy Target by 2030
GreenCape Large-Scale RE MIR 2025
W2 Why South Africa | Clean Technology & Green Economy | InvestSA

Four Structural Advantages
for Clean Technology Investors

South Africa's clean energy investment case rests on verifiable, durable fundamentals: exceptional renewable resources, a fast-growing private energy market, a globally critical mineral position, and a maturing policy architecture backed by the JET Investment Plan.

World-Class Solar and Wind Resources

South Africa's Northern Cape province hosts nearly 60% of the country's installed solar PV capacity, benefiting from solar irradiance levels among the highest globally. Complementary wind resources along the Eastern and Western Cape coastlines have made South Africa Africa's most active large-scale wind procurement market. These natural advantages directly underpin the cost competitiveness of SA-based renewable projects and form the physical foundation of the country's green hydrogen ambitions, including the government's target of 10 GW of electrolyser capacity in the Northern Cape by 2030.

~60% of SA's installed solar PV capacity is in the Northern Cape BDO SA 2025 Renewables Report

A Captive Manufacturing Market: 90% of Inverters Are Still Imported

South Africa's renewable energy build-out to 32 GW by 2030 creates sustained, growing domestic demand for clean technology components. Yet 90% of inverters and 60% of transformers deployed in South Africa are currently imported. The South African Renewable Energy Masterplan (SAREM, April 2025) directly addresses this gap, setting legally binding localisation targets of 50% for solar, 47% for wind, and 60% for battery storage manufacturing by 2030. Independent benchmarking confirms South Africa is a cost-competitive and profitable location for transformer, inverter, solar module, and battery pack assembly. The market is here. The policy mandate is set. The manufacturing base is being built.

90% of SA inverters are imported: a direct manufacturing entry point for the 18 GW solar pipeline Green Economy Value Proposition, InvestSA, June 2025

Gateway to Africa's 240 GW Clean Energy Market by 2030

South Africa is not only the largest clean energy market in Africa: it is the manufacturing and export gateway into a continental opportunity of extraordinary scale. Africa holds 60% of the world's best solar resources, yet has installed only 1% of global solar PV capacity. The IEA projects a 10X increase in Africa's renewable capacity to over 240 GW by 2030. Under AfCFTA, SA-manufactured clean technology components and renewable energy systems reach 54 African markets under preferential trade terms. SA is the continent's most capable manufacturing base, with the best regulatory, logistics, and financial infrastructure to supply what this market will need.

240 GW Africa's forecast installed renewable capacity by 2030: 10X growth from today IEA Africa Energy Outlook 2022 (via Green Economy VP, June 2025)

Africa's Most Developed Clean Energy Policy Architecture

South Africa has built the continent's most comprehensive policy framework for clean energy investment. Key instruments include the REIPPPP (operational since 2011), the South African Renewable Energy Masterplan (SAREM, Cabinet-approved April 2025), the JET Investment Plan, the EV White Paper (December 2023), and the Climate Change Act (signed July 2024). A 150% investment allowance for new EV and battery manufacturing applies from March 2026. InvestSA's Energy One-Stop-Shop (EOSS) provides a dedicated single window for licensing and facilitation support, reducing the administrative burden for energy and clean technology investors entering or expanding in South Africa.

150% investment allowance for NEV and battery manufacturing from March 2026 National Treasury Budget 2024; dtic EV White Paper
W3 Manufacturing Opportunities | Clean Technology and Green Economy | InvestSA

For DFI and institutional investors seeking bankable project finance opportunities (banks, development finance institutions, infrastructure funds): the SAIC 2026 Investment Project Book lists named projects with investment values, lead institutions, and project promoter contacts.

View Project Book

The Clean Technology Manufacturing Value Chains

South Africa's 32 GW renewable energy build-out to 2030 creates captive, growing demand across three manufacturing value chains. Each chain has a quantified market size, a documented import gap, and a policy mandate for localisation under SAREM. This is where the productive capacity investment opportunity lies.

Solar PV ~18 GW

Solar PV Component Manufacturing

South Africa's solar pipeline is the largest manufacturing market in the value chain. 64% of current NERSA-registered private projects are solar. With over 10.5 GW of private sector NERSA registrations since 2021, domestic demand for modules, inverters, mounting systems and trackers is growing faster than any other clean tech sub-sector.

Import Gap / Entry Point
90% of SA inverters are imported. SAREM mandates 50% local content for solar by 2030. Direct entry: inverter assembly, module assembly, mounting structures, single-axis trackers.
Cells and modules (wafer-based and thin-film)
Single-axis trackers and mounting structures
String and central inverters
Cables, fasteners and related BOS
Source: Green Economy Value Proposition, InvestSA, June 2025 | GreenCape MIR 2025
Wind ~7.2 GW

Wind Component Manufacturing

South Africa has ~30% of Africa's installed wind capacity and is the continent's most active wind procurement market. The Western Cape and Eastern Cape offer world-class onshore wind resources with capacity factors consistently above 35%. REIPPPP BW7 included 18 solar PV projects; wind projects continue under the programme and private PPA market.

Import Gap / Entry Point
Wind components are almost entirely imported. SAREM mandates 47% local content by 2030. Direct entry: tower sections, nacelle assembly, blade manufacturing, offshore-grade cabling.
Steel towers and tower sections
Nacelle assemblies and gearboxes
Composite blades
Cables and switchgear
Source: Green Economy Value Proposition, InvestSA, June 2025 | GreenCape MIR 2025
Energy Storage ~10 GWh

Battery and Energy Storage Manufacturing

Battery storage is the fastest-growing component of South Africa's renewable energy ecosystem. The 32 GW target requires more than 10 GWh of co-located storage by 2030. Southern Africa's BESS market is projected to exceed 70 GWh by 2030. Currently 100% of lithium-ion battery cells are imported, creating the most direct manufacturing entry point in the value chain.

Import Gap / Entry Point
100% of Li-ion battery cells are imported across Southern Africa. SAREM mandates 60% local content in battery storage by 2030. Afrivolt's 1.5 GWh plant (Atlantis SEZ) is the anchor productive capacity investment.
Li-ion cell manufacturing (LFP, NMC)
Battery module and pack assembly
Vanadium electrolyte for grid-scale VRFB
Battery management systems
Source: Green Economy Value Proposition, InvestSA, June 2025 | Afrivolt (Engineering News, Jan 2024)
Transversal All chains

Cross-Chain Components: Inverters, Transformers and Cables

Some components are common to all three value chains and represent the highest-volume import replacement opportunity. Inverters are required across solar, storage and grid integration. Transformers are required for every grid connection. Medium and high-voltage cables serve all renewable generation and transmission projects. These are scale manufacturing opportunities.

Import Gap / Entry Point
90% of inverters and 60% of transformers are imported. SA's 14,200 km extra-high-voltage transmission expansion by 2032 requires sustained transformer and cable supply. Direct entry for volume manufacturers in all three product categories.
String inverters, central inverters, grid-forming inverters
Distribution and power transformers
Medium and high-voltage cables
Switchgear and protection equipment
Source: Green Economy Value Proposition, InvestSA, June 2025 | GreenCape MIR 2025
Active
Afrivolt Battery Cell Gigafactory -- Atlantis SEZ, Western Cape
Africa's first lithium-ion cell gigafactory, targeting 1.5 GWh initial capacity expandable to 5 GWh. Located at Atlantis SEZ, Africa's only dedicated greentech SEZ. Capital raising and due diligence in progress. This is a direct productive capacity investment: a manufacturer building local supply for a market that is currently 100% import-dependent.
Lead: Afrivolt | Source: Engineering News Jan 2024; Mining Weekly Mar 2024 | Value: $500m
Pipeline context
Green Hydrogen and NEV Manufacturing Pipeline
The green hydrogen value chain (Coega, Hydrogen Valley) and the emerging new energy vehicle manufacturing opportunity (being developed jointly with the Advanced Manufacturing team) are tracked separately. These involve a mix of productive capacity and project finance. Contact the sector lead for pipeline briefings and to understand the appropriate entry point for your investment.
See SAIC 2026 Investment Project Book for named project listings | NEV value proposition: in development with Rashmee Ragaven, dtic Advanced Manufacturing
W4 Cluster Map | Clean Technology and Green Economy | InvestSA

Project Clusters and Renewable Energy Hubs

South Africa's three Hydrogen Valley nodes and three REIPPPP-concentrated provinces form the backbone of the country's clean technology investment geography. Hub locations sourced from the DSI Hydrogen Valley Feasibility Study (Oct 2021) and the Hydrogen Society Roadmap.

South Africa provincial map: green hydrogen hubs and renewable energy zones
Loading map…
Green Hydrogen Hub
REIPPPP / Renewable Zone
H2-active province
Solar concentration
Green Hydrogen
Platinum Valley / Limpopo Hub
Anchored by PGM mining and the Platinum Valley Initiative. The Mokopane corridor links mining to the Johannesburg industrial node via planned hydrogen truck conversion routes targeting 80% hydrogen demand by 2030.
Green Hydrogen
Johannesburg Industrial Corridor
Central node of the Hydrogen Valley. Hosts the Hydrogen Valley Innovation Hub ($60.1m, Mitochondria Energy). Existing gas distribution infrastructure already used for blue hydrogen transport.
Green Hydrogen
Durban / Richards Bay Hub
Port export gateway for green ammonia and hydrogen derivatives. Richards Bay SEZ provides industrial land and deep-water port access for export-oriented hydrogen projects.
REIPPPP Zone
Northern Cape Solar Concentration
Hosts approximately 60% of South Africa's installed solar PV capacity. Key location for large-scale REIPPPP and private PPA solar development, with strong case for co-located electrolyser capacity.
SEZ + Wind
Atlantis SEZ / Western Cape Wind Zone
Africa's only dedicated greentech SEZ. Hosts the Afrivolt battery gigafactory ($500m) and Atlantis Pyrolysis project ($75m). Western Cape is a major REIPPPP wind energy province.
SEZ + Wind
Coega SEZ / Eastern Cape Wind Zone
Anchor for the Coega Green Hydrogen project ($5.9bn, IDC + Hive Hydrogen), targeting financial close late 2026. Eastern Cape is a major REIPPPP wind province with strong grid access.
W5 Data Dashboard | Clean Technology and Green Economy | InvestSA

By the Numbers: SA's Clean Energy Track Record

Key performance metrics for South Africa's renewable energy programme, with the private investment opportunity to 2030. All figures sourced from named 2024/2025 publications.

>15 GW
Installed Renewable Capacity
Connected or under construction (2024) | GreenCape MIR 2025
10.5 GW
Private Sector NERSA Registrations Since 2021
3,000% growth over 2 years; 4 GW in Q3 2024 alone | NERSA Q3 2024 (via Green Economy VP, June 2025)
100+
IPP Projects at Financial Close or Operational
Across REIPPPP bid windows | NERSA 2025 Annual Report
133,764 GWh
Cumulative Electricity Generated by REIPPPP IPPs
BDO SA 2025 Renewables Report
129.2 mt
CO₂ Emissions Offset by REIPPPP Projects
Cumulative | BDO SA 2025 Renewables Report
~36 GW
Combined Solar, Wind and Storage Manufacturing Market 2024 to 2030
~18 GW solar | ~7.2 GW wind | ~10 GWh storage | Green Economy Value Proposition, InvestSA, June 2025
REIPPPP Capacity Procured by Bid Window (MW)
Cumulative capacity at financial close, bid windows 1 to 7 | Source: IPP Office quarterly reports; ESI Africa 2023; December 2025 BW7 announcement. By 2040: up to 65 GW solar, 21 GW wind, 31 GW battery storage (Green Economy Value Proposition, InvestSA, June 2025).

* BW7: 3,940 MW announced as preferred bidders (Dec 2025); not yet at financial close. All other figures represent capacity at financial close. RMIPPPP shown separately. Source: IPP Office; Enerdata (Dec 2025).

W6 Strategic Framework | Clean Technology and Green Economy | InvestSA

South Africa's Clean Energy Strategic Framework

The country's clean technology investment case is underpinned by two interconnected policy streams: a mature electricity procurement architecture and an emerging green hydrogen and industrial transition programme backed by international partnership financing.

Electricity and Renewable Energy
REIPPPP, SAREM, IRP, NTCSA
2011
REIPPPP (Renewable Energy IPP Procurement Programme)
Operational since 2011, REIPPPP has attracted R292 billion in private investment, procured capacity across seven bid windows, and established SA as Africa's benchmark for competitive renewable energy procurement.
R292bn attracted since 2011
Jul 2024
Climate Change Act
Signed into law July 2024. Sets binding national greenhouse gas reduction targets and requires high-emission sectors to implement specific carbon reduction plans with annual progress reporting.
Jul 2024
NTCSA Operationalisation
The National Transmission Company of South Africa became operational July 2024, enabling structural separation of transmission from generation and facilitating third-party wheeling under NERSA's framework.
Apr 2025
South African Renewable Energy Masterplan (SAREM)
Cabinet-approved April 2025. SAREM is the primary manufacturing policy instrument: it mandates localisation targets of 50% for solar, 47% for wind, and 60% for battery storage by 2030, creating legally-backed demand for SA-manufactured components. The 32 GW build-out enabled by SAREM creates captive domestic demand across all three value chains. By 2040, renewables are projected to exceed 60% of generation, comprising up to 65 GW solar, 21 GW wind, and 31 GW battery storage (Green Economy Value Proposition, InvestSA, June 2025).
50% solar / 47% wind / 60% battery storage localisation targets by 2030
Dec 2025
REIPPPP Bid Window 7
Total of 3,940 MW awarded to preferred bidders across 18 solar PV projects. BW7 attracted 48 bidders offering over 10.2 GW of combined capacity against a 3,200 MW solicitation, demonstrating strong market appetite.
3,940 MW preferred bidders awarded
Green Hydrogen, NEV and JET Programme
JET IP, Hydrogen Roadmap, NEV White Paper
2022
Hydrogen Society Roadmap (HSRM)
Sets South Africa's green hydrogen targets: 500,000 tonnes per annum production by 2030, 10 GW of electrolyser capacity in the Northern Cape by 2030. Identifies three Hydrogen Valley hubs and nine pilot projects.
500 kt/year H2 target by 2030
Nov 2022
JET Investment Plan (JET IP)
Five-year investment plan (2023 to 2027) covering electricity, new energy vehicles, and green hydrogen. Identifies $98.7 billion in financing requirements. 2024 was the first year of active implementation, with $2 billion reported expenditure by early 2025.
$98.7bn financing requirement 2023 to 2027
Dec 2023
EV White Paper
Sets out the policy framework for South Africa's transition to new energy vehicle production. A 150% investment allowance for qualifying NEV and battery manufacturing investments applies from March 2026.
150% investment allowance from March 2026
Mar 2025
EU Global Gateway Investment Package
The EU committed EUR 4.7 billion to South Africa's clean energy transition, with EUR 4.4 billion directed toward supporting the production and export of green hydrogen and platinum group metals used in PEM electrolysers.
EUR 4.7bn EU commitment (Mar 2025)
W7 Incentives | Clean Technology and Green Economy | InvestSA

Fiscal and Financing Incentives for Clean Tech Investors

South Africa offers a layered set of tax, customs, and financing incentives specifically relevant to renewable energy, battery manufacturing, green hydrogen, and clean technology manufacturing investments.

Section 12B Renewable Energy Tax Allowance
Allows accelerated depreciation on qualifying renewable energy assets. Solar, wind, hydropower, and other renewable assets qualify for a 100% deduction in the year of assessment under the Income Tax Act. Applicable to both own-use and IPP investments.
100% year-one deduction
Source: Income Tax Act s.12B | Administered by SARS
150% NEV and Battery Manufacturing Investment Allowance
From March 2026, qualifying investments in new energy vehicle and battery manufacturing allow companies to deduct 150% of qualifying capital expenditure in the first year of assessment. Designed to accelerate local NEV supply chain development under the EV White Paper.
Effective from March 2026
Source: National Treasury Budget 2024 | dtic EV White Paper Dec 2023
Section 12I Manufacturing Investment Incentive
A tax allowance for greenfield and brownfield manufacturing investments in priority sectors including clean technology component manufacturing. Provides an additional investment allowance on top of normal capital expenditure deductions, subject to qualifying criteria.
Additional investment allowance
Source: Income Tax Act s.12I | dtic
Atlantis SEZ Incentive Package
South Africa's only dedicated greentech Special Economic Zone offers a comprehensive incentive package for qualifying green technology manufacturers: reduced corporate income tax rate, customs duty relief on imported machinery and equipment, and VAT relief. Companies in the SEZ benefit from streamlined licensing and access to existing green infrastructure.
CIT reduction + customs relief
Source: Atlantis SEZ Co. / dtic SEZ programme
IDC Green Economy Concessional Finance
The Industrial Development Corporation provides concessional financing specifically for green economy projects, including renewable energy, green hydrogen, waste-to-energy, and clean manufacturing. IDC is a co-funder and development partner in several SAIC 2025 Project Book entries including the Coega Green Hydrogen project and the Vanadium Electrolyte Project.
Development finance institution
Source: IDC Green Economy division | dtic
REIPPPP Preferred Bidder Framework
REIPPPP provides a proven, bankable procurement structure for independent power producers. Preferred bidder status includes a 20-year Power Purchase Agreement with Eskom, backed by a government implementation agreement. The framework has maintained an investment-grade risk profile that has attracted international project finance from commercial and development finance institutions across seven bid windows.
20-year PPA + government IA
Source: IPP Office / Department of Electricity and Energy
W8 SEZs and Infrastructure | Clean Technology and Green Economy | InvestSA

Special Economic Zones for Clean Technology Investment

Four designated industrial zones are directly relevant to clean technology, green hydrogen, and renewable energy manufacturing investment in South Africa, each offering dedicated infrastructure, incentive packages, and proximity to key project sites.

Western Cape
Atlantis SEZ
Special Economic Zone for Green Technologies

Africa's only dedicated greentech SEZ, established with an explicit mandate to attract green technology manufacturers. Offers SEZ fiscal incentives including reduced corporate income tax, customs duty relief, and VAT exemptions for qualifying activities.

Dedicated greentech mandate
Reduced CIT + customs relief
Existing green infrastructure
Proximity to Cape Town port
Anchor Project
Afrivolt Battery Gigafactory ($500m) | Atlantis Pyrolysis ($75m)
Eastern Cape
Coega SEZ
Special Economic Zone

SA's largest SEZ, adjacent to the Port of Ngqura (Gqeberha). Coega is the primary site for the Coega Green Hydrogen project, Africa's largest planned green ammonia facility. Offers customs-controlled area benefits, industrial serviced land, and port logistics infrastructure.

Customs-controlled area benefits
Deep-water port of Ngqura access
Serviced industrial land
REIPPPP wind zone proximity
Anchor Project
Coega Green Hydrogen ($5.9bn, IDC + Hive Hydrogen) | FC targeted late 2026
Western Cape
Freeport Saldanha SEZ
Special Economic Zone

Located at Saldanha Bay, one of SA's deepest natural harbours. Positioned within the Boegoebaai/Saldanha green hydrogen export corridor identified in government planning. Adjacent to the CSIR-led Boegoebaai hydrogen production zone project, which targets 1 GW of electrolyser capacity.

Deep natural harbour (deep-draft vessels)
H2 export corridor positioning
Customs-controlled area benefits
Port of Saldanha LNG project adjacent
Corridor Context
Boegoebaai hydrogen zone (CSIR masterplan) | Port of Saldanha LNG ($1.1bn)
KwaZulu-Natal
Richards Bay SEZ
Special Economic Zone

Adjacent to the Port of Richards Bay, South Africa's largest bulk export port by tonnage. Positioned as the KZN export node for the Hydrogen Valley, linking the Durban-Richards Bay hub to global markets. Offshore wind development potential in the adjacent exclusive economic zone is under assessment.

SA's largest bulk export port
Hydrogen Valley KZN export node
Offshore wind EEZ potential
Heavy industrial infrastructure
Hub Context
Durban / Richards Bay Hydrogen Valley Hub (H2 export gateway)
W9 Investment Entry Points | Clean Technology and Green Economy | InvestSA

Where Manufacturers Enter the Value Chain

Six entry points for productive capacity investors across South Africa's three clean technology manufacturing value chains, plus green hydrogen and the emerging new energy vehicle opportunity.

Solar PV ~18 GW by 2030
Solar PV Component Manufacturing

The largest manufacturing sub-sector by volume. 64% of NERSA-registered private projects are solar. 90% of inverters are imported. SAREM mandates 50% local content by 2030, creating a policy-backed localisation requirement that runs from now to 2030.

Module assembly, inverter manufacturing, single-axis tracker production, mounting structures, BOS cables and fasteners. Applicable SEZs: Atlantis SEZ, Coega SEZ.
Speak to the Sector Lead
Wind ~7.2 GW by 2030
Wind Component Manufacturing

South Africa has ~30% of Africa's installed wind capacity. The Western and Eastern Cape are world-class onshore wind resources with capacity factors above 35%. Wind components are almost entirely imported. SAREM mandates 47% local content by 2030.

Steel tower sections, nacelle assembly, composite blade manufacturing, wind-grade cabling and switchgear. Applicable SEZs: Richards Bay SEZ (KZN port proximity), Coega SEZ.
Speak to the Sector Lead
Energy Storage ~10 GWh by 2030
Battery and Energy Storage Manufacturing

100% of Li-ion battery cells across Southern Africa are imported. SAREM mandates 60% local content in storage by 2030. The Southern Africa BESS market is forecast to exceed 70 GWh by 2030. Afrivolt (Atlantis SEZ) is the anchor productive capacity investment in this sub-sector.

Li-ion cell manufacturing (LFP, NMC), module and pack assembly, vanadium electrolyte for VRFB, battery management systems. Equity co-investment alongside Afrivolt or greenfield.
Speak to the Sector Lead
Transversal All 3 chains
Inverters, Transformers and Cables

The highest-volume import replacement opportunity across all three value chains. 90% of inverters and 60% of transformers are imported. SA's 14,200 km transmission expansion by 2032 requires sustained transformer and cable supply over the next decade.

String and central inverter assembly, distribution and power transformer manufacturing, medium and high-voltage cable production, switchgear and protection equipment.
Speak to the Sector Lead
Green Hydrogen Pipeline
Green Hydrogen and Electrolyser Value Chain

South Africa holds ~75% of global PGM reserves, the critical feedstock for PEM electrolysers. The Hydrogen Valley (Limpopo to KZN) and Coega SEZ anchor the pipeline. The green hydrogen programme involves a mix of productive capacity investment and project finance. Contact the sector lead to understand the right entry point for your investment profile.

Electrolyser manufacturing (PEM and alkaline), green ammonia production (Coega), hydrogen valley technology partnerships. EU Global Gateway EUR 4.4bn directed at green hydrogen and PGMs (Mar 2025).
Speak to the Sector Lead
New Energy Vehicles In development
New Energy Vehicle Manufacturing

South Africa's EV White Paper (December 2023) and 150% investment allowance from March 2026 establish the NEV manufacturing framework. A dedicated NEV value proposition is being developed jointly with the Advanced Manufacturing team. Opportunities span local EV assembly, battery packs for the automotive sector, and electrification of public transport and freight.

EV component manufacturing, battery pack assembly for OEMs, public transport electrification (R10bn opportunity) and freight electrification (R62.8bn opportunity). NEV value proposition available on request.
Request NEV Briefing
W10 Contact and Downloads | Clean Technology and Green Economy | InvestSA