- MoU targets grid expansion and industrial financing for local suppliers.
- 14 500 km of new transmission lines planned under 2025–2034 programme.
- Partnership to strengthen localisation and supply chain capacity over 72 months.
The National Transmission Company South Africa (NTCSA) and the Industrial Development Corporation (IDC) have signed a Memorandum of Understanding to accelerate investment in transmission infrastructure and support localisation across South Africa’s energy sector.
The agreement focusses on project development, execution and the provision of industrial financing to suppliers and contractors verified by NTCSA. A joint steering committee will oversee implementation, with a mandate to fast track priority workstreams, monitor progress and resolve constraints. Funding mechanisms and qualification criteria are expected to be communicated once finalised in line with each organisation’s governance frameworks.
The partnership aligns with NTCSA’s Transmission Development Plan for 2025 to 2034, which is already under implementation. The plan includes the construction of about 14 500 km of transmission lines, new substations and the installation of around 210 transformers and associated components. Grid expansion is being prioritised in the Western Cape, Eastern Cape and KwaZulu Natal to address network constraints and enable new generation capacity.
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Industrial Development Corporation Chief Executive Officer Mmakgoshi Lekhethe said the agreement supports national energy security and long term industrial growth. She also acknowledged Eskom Holdings SOC Limited for improvements in operational performance. Lekhethe said the IDC is prepared to fund viable companies participating in the grid expansion programme.
NTCSA Chief Executive Officer Monde Bala said the scale of the Transmission Development Plan will drive significant demand for locally manufactured components. He noted that the agreement is designed to support verified suppliers through access to technical expertise and potential funding, enabling them to build sustainable production capacity. The initiative will also advance supplier development, localisation and industrialisation, with a focus on constrained inputs such as transformers, insulators, conductors, transmission steel and grid infrastructure components.
The collaboration is expected to enhance visibility of future demand for local manufacturers while aligning procurement, funding and localisation objectives. NTCSA will drive supplier development and demand planning, while the IDC will assess funding support for qualifying companies, including working capital and capital investment, subject to due diligence.
The 72-month partnership marks a strategic step in strengthening South Africa’s transmission network while supporting localisation, industrial development and long term economic growth.
Author: Bryan Groenendaal
