- Energise reports that ACTOM has acquired transformer manufacturer SGB-SMIT Power Matla, making them the largest transformer manufacturer in Africa and the only African company able to manufacture large-scale Class 3 transformers.
- South Africa’s Competition Commission and Competition Tribunal has approved the transaction.
The purchase broadens ACTOM’s transformer offering to include Class 3 transformers of up to 500 MVA/400 kV which complements its existing Class 0, 1 and 2 transformers offering.
“We see rising demand for transformer capacity across the continent, driven by population growth and the resultant need for infrastructure. Multinational OEMs have generally avoided setting up manufacturing operations in Africa, which has left the continent with limited transformer manufacturing capacity. This gap was a key driver of our acquisition,” said ACTOM CEO Mervyn Naidoo in an exclusive interview with Energise.
“Infrastructure demand must be used as a lever for industrialisation. Manufacturing is a key sustainable path to meaningful economic growth. When China achieved double-digit GDP growth, manufacturing was the central driver. South Africa must take a similar approach if it is to address unemployment and low growth,” added Naidoo.
Town The acquisition includes two factories in Pretoria and Cape. SGB-SMIT Power Matla has been in business rescue in September 2023. The acquisition includes the Pretoria and Cape Town manufacturing facilities.
“Our immediate priority is to ensure compliance, recommissioning the facilities to pre-fire standards, bringing laid-off staff back into the business and rebuilding the order book so that production can resume,” Naidoo said.
South Africa’s transmission sector is set to boom
Last month South Africa’s IPP Office published a request for pre-qualification for new electricity transmission infrastructure capacity under the Independent Transmission Projects Procurement Programme (ITP). Read more
The government wants to build 14,000 km of new transmission lines by 2032 which is expected to cost around R440 billion. Read more
German Cooperation via KFW Development Bank has concluded a €500 million loan to support structural reforms to enhance the efficiency, resilience, and sustainability of the country’s infrastructure services, with a specific focus on the energy sector and climate mitigation. Read more
The National Treasury has designed a Credit Guarantee Vehicle of US 500 million to unlock private capital and complement public financing for infrastructure while minimizing contingent liabilities. The Credit Guarantee Vehicle will be operationalised by July 2026 to align with the first phase of ITP projects. Read more
“Demand for transformers is set to grow substantially. This acquisition ensures we can meet that demand locally, reduce reliance on imports and support industrialisation and job creation,” concluded Naidoo.
Author: Bryan Groenendaal
