Jurg van Dyk

There has been significant progress in procuring the next generation of South Africa’s energy commission capacity since the National Treasury first announced it was adopting an independent transmission model in 2024. Following an initial request for pre-qualification in July 2025, in December, electricity and energy minister Kgosientsho Ramokgopa announced that the government had appointed seven international bidders to advance to the next procurement phase.

The recent decision by the Chinese Ministry of Finance and the State Taxation Administration to change export tax rebates for photovoltaic (PV) and battery products is expected to alter significantly the playing field for foreign companies sourcing renewable energy components and industrial materials from Asia. Effective from 1 April, the Chinese export tax rebates for the value added tax (VAT) of PV products will be revoked.

A growing trend of increased risk sharing in engineering, procurement and construction (EPC) models, together with the downwards pressure on construction pricing from project owners, will require international contactors to capitalise on the uptick in activity in the South African infrastructure and energy markets.