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ACTOM calls for investment certainty to unlock Africa’s grid expansion

ACTOM calls for investment certainty to unlock Africa’s grid expansion

Shifting the focus: From technical barriers to investment certainty

AT the 2026 ENLIT Africa Exhibition, Nicholas Msibi, CEO of ACTOM EPC, challenged the prevailing focus on technical obstacles in Independent Power Transmission (IPT) by spotlighting a far more pressing need: investment certainty. In doing so, he reframed the conversation, moving it from what Africa can build to how Africa can build with confidence, at scale, and for sustainable impact.

Proven capability across Africa

Africa, and especially South Africa, has repeatedly demonstrated both the technical know-how and industrial capacity to deliver large-scale grid projects. The region’s engineers have designed and built advanced high-voltage systems, achieving feats that are respected and emulated worldwide. Their expertise is not just proven at home; it’s been shared with and adopted by international partners.

Progress stalled by uncertainty

Yet despite these proven capabilities, progress has slowed, stalled not by lack of skill, but by uncertainty. The real roadblock is not in the competence and capability or on the construction sites, but in the boardrooms and policy offices where decisions about the future are made.

The impact of inconsistent demand and policy signals

Msibi argued that the primary challenge is inconsistency, shifting demand signals and unpredictable policy directions. For manufacturers, contractors, and investors, the absence of a clear project pipeline creates hesitation and stalls investment. Without predictability, local businesses cannot scale up, invest in talent, or innovate with confidence. He cautioned that simply replicating international models without adapting them to African realities risks eroding domestic manufacturing, undermining local value chains, and sacrificing national priorities. “International competition does matter”, he said, but it should be harnessed to strengthen, not replace, the local ecosystem.

Infrastructure as a socio-economic lever

Who gets to build Africa’s transmission infrastructure is not just a technical or financial question; it’s a social and economic one. Prioritising local firms means investing in jobs, skills development, and broader industrial growth. When projects are awarded abroad despite local capability, the opportunity cost extends beyond lost contracts; it means fewer jobs for Africans and slower progress towards national development goals.

Local procurement as a strategic approach

Local procurement, Msibi emphasised, is not about protectionism. It’s about building a resilient, innovative ecosystem capable of sustaining Africa’s long-term energy ambitions. Sourcing locally creates a multiplier effect, spurring job creation, supporting industrial growth, and building the societal stability needed for a thriving energy sector.

Emerging momentum from IPP Programmes

There are encouraging signs. Initiatives like the Independent Power Producer programme are beginning to provide clearer demand signals, sparking investment and renewed interest in transmission infrastructure. However, Msibi cautioned that these gains will only translate into long-term benefits if they are underpinned by unwavering policy support and a steadfast commitment to local industry development.

Aligning the ecosystem for long-term success

Ultimately, Msibi believes that the challenge is one of ecosystem alignment. Real progress in grid expansion will require deliberate coordination: policies that support long-term investment, investment that nurtures local industry, and industry that delivers socio-economic value back to communities. Only with this holistic approach can Africa unlock the full potential of its transmission sector.

A call for commitment and certainty

The call to action is clear. For Africa to realise its energy future, leaders, policymakers, and investors must step up with courage and consistency to provide the stable, predictable investment environment that will unleash the continent’s technical and industrial potential. Without this certainty, Africa risks leaving its greatest assets, its people and its ingenuity, underutilised. The time to commit is now.

https://actom.co.za

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