Tafadzwa Chibanguza, CEO-designate of the Steel and Engineering Industries Federation of Southern Africa (Seifsa), stated that uncertainty surrounding local content rules in public procurement is making it difficult to prioritise domestic production in grid investments.
Speaking at a meeting organised by the National Business Initiative (NBI), Chibanguza highlighted that the Transmission Development Plan (TDP), which aims to expand the country’s transmission infrastructure, will be South Africa’s largest infrastructure programme over the next decade. He emphasised that the plan offers significant opportunities for production in the metals and engineering sectors.
Under the TDP, the National Transmission Company of South Africa (NTCSA) and private sector investors are expected to invest ZAR 400 billion to build approximately 14,500 km of new transmission lines and add 133,000 MVA of transformer capacity by 2034. However, Chibanguza pointed out that, due to delays in finalising the new public procurement framework, previous local content priorities for products such as transformers, steel products, and electrical cables are no longer effective.
Chibanguza stated that Seifsa is requesting clear localisation criteria for the TDP and their enforcement. He also noted that feedback from the industry indicates the first RFP for independent transmission projects (ITPs) was structured in favour of foreign investors. Seifsa plans to submit its official comments to the government and NTCSA on this matter.
Comments
No comment yet.