South Africa’s leaders have consistently highlighted the importance of localisation, industrialisation and rebuilding the country’s manufacturing base. Investment conferences continue to attract significant commitments, and policy documents underscore the value of growing domestic capability. In this opinion piece, Mervyn Naidoo, CEO of the ACTOM Group, emphasises that as the country moves from policy ambition to implementation, procurement frameworks will play an increasingly important role in ensuring these goals are fully realised.
This is especially relevant in the country’s transmission build programme, which aims to deliver more than 15 000 km of new transmission lines over the next 10 to 15 years, with an estimated investment of more than R400 billion. This is one of the most significant infrastructure programmes currently on the horizon and will be critical to unlocking new generation capacity.
At the same time, the structure of the Independent Transmission Programme (ITP) presents an opportunity to ensure local firms that have helped build and maintain the national grid over many decades can continue to play a leading role in the next phase of expansion.
Some reports on the ITP suggest that elements of it could be reviewed to help ensure that South African companies are able to compete effectively for lead roles in the implementation of the Transmission Development Plan.
Policy alignment
This points to the need for clear alignment between industrial policy objectives and the design of procurement frameworks. Local manufacturers have invested substantially in plant, skills and capacity in anticipation of a long-term infrastructure pipeline that can support industrial growth. ACTOM, for example, has operated in South Africa for more than a century and is now a majority black-owned electrotechnical manufacturer supplying transformers, switchgear and high-voltage equipment. The company is currently investing R250 million to support grid expansion. These are the kinds of businesses that can help advance the country’s industrial ambitions.
Localisation is most effective when it is embedded not only in policy statements and investment targets, but also in the practical design of procurement frameworks. When domestic suppliers are fairly included and supported, infrastructure investment can generate broader value through local production, industrial expansion and job creation.
Rebuilding industrial capacity
The stakes are high. The metals and engineering sector, which underpins much of the manufacturing involved in building transmission networks, has lost more than 212 000 jobs over the past 15 years. This reflects the effects of underinvestment and uneven demand over time. A programme on the scale of the broader Transmission Development Plan could help reverse this decline by rebuilding domestic capability and supporting thousands of direct and indirect jobs.
Electro-mechanical manufacturers have an important role to play in Africa’s industrial future, producing the infrastructure that enables energy access, supports industrial activity and expands manufacturing capacity. Providers of electro-mechanical equipment and solutions also contribute to skills development and employment by creating opportunities for artisans, engineers and technicians.
When local firms invest in these skills, they contribute to South Africa’s long-term industrial resilience. To sustain that investment, however, they need procurement frameworks that provide visibility, consistency and a clear pathway for local participation.
Predictable demand
This is key to South Africa’s reindustrialisation. Government leaders have repeatedly emphasised the importance of localisation. At the 2026 South Africa Investment Conference, President Cyril Ramaphosa noted that domestic investors are showing renewed confidence in the economy, with major commitments across sectors. Turning that confidence into long-term industrial growth will depend on predictable demand, transparent procurement and policy mechanisms that help reinforce the local industrial base.
If South Africa is to deepen industrialisation, expand employment and maximise the impact of infrastructure spending, careful attention must be given to the details of procurement design. Qualification thresholds, scoring methodologies, local content requirements, and tender structures all influence whether South African manufacturers can compete effectively and contribute meaningfully.
Beyond the aspiration, localisation is a practical discipline that depends on aligning procurement with policy intent. South Africa has a valuable opportunity to ensure that infrastructure investment strengthens domestic capability and supports the businesses that are investing in the country’s future. ACTOM is one example of what is possible when local firms commit capital, skills and long-term capacity to national development. With the right procurement approach, that commitment can be matched more widely in an enabling environment that helps build a stronger local industrial economy.
For more information visit: www.actom.co.za