Why South Africa’s energy transition must deliver more than electricity
4 min read
As South Africa’s youth unemployment rate hovers above 46%, a growing body of evidence suggests that the country’s energy transition could be a key engine of job creation and economic resilience, if approached with deliberate focus on inclusion and skills development.
ENGIE South Africa says the time is now to turn megawatts into meaningful work.
“As we decarbonise, we must also broaden access to opportunity,” says Seshni Naidoo, head of Engineering at ENGIE Southern Africa. “Renewable energy is not just about green electrons. It is about unlocking new industries, new skill sets, and new futures, especially for young people.”
The numbers provide for interesting reading. According to the World Bank, South Africa’s energy and transport reforms could create up to 200 000 new jobs in the short term, and more than 500 000 jobs by 2050, boosting GDP by as much as 3% if executed effectively.
Meanwhile, global momentum is building. In 2023 alone, the world installed over 117GW of new wind energy capacity, while Africa recorded its highest ever annual wind installations, totalling 1 132MW, according to the Global Wind Energy Council.
In South Africa, where the Renewable Energy Independent Power Producer Procurement programme has already brought over 100 renewable projects online. As the country works to overcome grid and permitting challengers, the focus now must shift to scaling impact. ENGIE’s growing renewable energy footprint, which includes wind, solar, battery hybrid and concentrated solar power, is designed not only to provide renewable energy but to drive long-term socio-economic development in host communities.
“From technicians and engineers to project managers and policy experts, the sector is evolving fast, and the demand for young talent is growing. The challenge is to build a skills pipeline that is fit for this future,” says Naidoo. The energy sector may be where the transition has been initiated, but we have the opportunity and the potential in South Africa to think on a much larger scale. Firstly, to transverse sectors, to grow new entrepreneurs, businesses and industries in unexplored areas of the country, underpinned by access to energy. Secondly, the skills gained from the energy sector are compatible with many other industrial processes, especially as these industries too will evolve with technology.
A recent CNBC Africa report argues that the energy transition must be framed not as a moral obligation but as an economic strategy. It is a call echoed by youth advocates and job creation NGOs who point to the importance of local content, enterprise development, and technical training aligned to renewable value chains.
This perspective is gaining traction globally and locally, where ENGIE has already rolled out youth skills initiatives in multiple provinces, including technical internships, enterprise support, and bursary programmes, many of which are co-designed with local communities. These programmes aim to deliver not just jobs, but upward mobility.
Still, systemic alignment is needed.
“If we want to realise the full potential of the energy transition, we need closer collaboration between the private sector, government, and training institutions. This is about building a workforce that will reflect the country’s future. A workforce that is young, capable, and committed,” adds Naidoo.
As South Africa works to stabilise its grid and build a greener economy, the energy sector has a unique opportunity to serve as both an engine of decarbonisation and a driver of inclusive growth.
“By investing in skills development, supporting youth entrepreneurship, and designing projects that prioritise socio-economic impact, we can turn the energy transition into a long-term employment opportunity not just for a few, but for an entire generation,” concludes Naidoo.
