By Mervyn Naidoo, CEO of The ACTOM Group
South Africa’s leaders have consistently emphasised the importance of localisation, industrialisation and rebuilding the country’s manufacturing base. Investment conferences continue to attract significant commitments, while policy documents underscore the value of strengthening domestic capability. As the country moves from policy ambition to implementation, procurement frameworks will play an increasingly important role in realising these goals.
This is particularly relevant to 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 on the horizon and will be critical to unlocking new generation capacity.
At the same time, the structure of the Independent Transmission Programme (ITP) offers an opportunity to ensure that local firms that have helped build and maintain the national grid for many decades can continue to play a leading role in the next phase of expansion.
According to reports on the programme, some elements of the ITP could be reviewed to help ensure that South African companies can compete effectively for lead roles under the Transmission Development Plan.
Policy alignment
This underscores the importance of close alignment between industrial policy objectives and procurement design. Local manufacturers have invested substantially in plant, skills and capacity, anticipating a long-term infrastructure pipeline to 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 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 meaningfully 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 transmission manufacturing, has lost more than 212 000 jobs over the past 15 years. This reflects the effects of underinvestment and uneven demand. A programme on the scale of the broader Transmission Development Plan could help reverse this trend by rebuilding domestic capability and supporting thousands of direct and indirect jobs.
Electro-mechanical manufacturers play an important role in Africa’s industrial future by 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 strengthen 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
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, with major commitments across sectors. Turning that confidence into long-term industrial growth will depend on predictable demand, transparent procurement and policy mechanisms that 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 paid 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.
Localisation is not merely an aspiration; it is a practical discipline that requires aligning procurement with policy intent. South Africa has a valuable opportunity to ensure that infrastructure investment strengthens domestic capability and supports the businesses 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 by an enabling environment that helps build a stronger local industrial economy.