Supply-side support will be required if South Africa aims to join green industrialisation race
- May 30, 2024
- Infrastructure
- 0 Comments
Stable demand remains a prerequisite if South Africa has any prospect of stimulating industrialisation in the renewable-energy and battery storage value chains, Trade & Industrial Policy Strategies (TIPS) senior economist Gaylor Montmasson-Clair has reiterated. But absent complementary supply-side measures – including tax and financial incentives, as well as an active trade policy – the country will struggle to attract green manufacturing investment in what is now a highly competitive global environment. In fact, Montmasson-Clair, who is also facilitator of the yet-to-be-launched South African Renewable Energy Masterplan (SAREM), counsels that South Africa will have to prepare a compelling investment case if it is to emerge as a market participant. One that cannot rely solely on rising demand for solar panels, wind turbines and batteries, nor on the country’s natural resource advantages and its current relative attractiveness as a manufacturing location when compared with its peers.
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