South Africa is well-placed to leverage its competitive edge in the manufacture of clean energy technology.

This is according to the latest report by the International Energy Agency (IEA), Energy Technology Perspectives 2024.

The IEA projects that the global market for clean energy technology will expand from US$700 billion in 2023 to over US$2 trillion by 2035. South Africa has been identified as one of the few African nations with the right resources and infrastructure to take advantage of this growth.

South Africa has low production costs, a strong industrial foundation and a business-friendly environment for clean energy investments. Supported by the Just Energy Transition framework, the country is well-suited to developing local supply chains and manufacturing key components for renewable technologies, the report states.

“South Africa has clear potential to become a manufacturing hub for clean energy technologies, particularly within the solar, wind and electric vehicle sectors,” the IEA notes. The report points to the country’s infrastructure, skilled workforce and dependable energy access as key enablers. These factors, along with South Africa’s position as the third-largest global exporter of iron ore, suggest significant potential for advancing low-emission iron and steel production – a critical step as industries are pushed by the implementation of the European carbon border adjustment mechanism for imports.

The IEA’s analysis also indicates that, with targeted investment, South Africa could be at the forefront of producing materials like polysilicon and wafers for solar panels and manufacturing components for wind turbines. This momentum aligns with global sustainability demands, especially as markets like the European Union implement carbon border adjustments incentivising cleaner production methods.

In addition to cutting emissions, South Africa’s efforts to decarbonise its iron and steel industries signal the broader impact of its renewable energy resources. By harnessing these resources, the country could boost local production, reduce emissions and support neighbouring sub-Saharan African countries in their industrial transformation.

According to the IEA, South Africa’s mix of industrial competitiveness, strategic location and energy transition policies provides a robust foundation to advance its ambitions as a leader in clean energy technology manufacturing and trade across Africa.