Energising Economic Growth in the City of Tshwane
Energy is the lifeblood of any modern economy, powering businesses, fuelling industries, and driving innovation. How it is produced and consumed is an important consideration given the changing environment towards carbon neutral and sustainable energy sources.
In South Africa, this global drive must be balanced between ensuring that jobs within the sector are safeguarded while renewable energy sources are introduced in a way that minimises the disruption to broader economic activity in the sector, and ultimately but perhaps most importantly that ensures affordability as a central energy equality and security issue.
It is against this backdrop that the annual Tshwane Energy Summit takes place at the CSIR International Convention Centre in the capital cityon Friday, 13 June 2025.
Under the theme “Energy as a Catalyst for Economic Development”, the summit provides a timely opportunity for the City of Tshwane, its businesses, and emerging enterprises to explore how energy drives local economic growth, empowers businesses, and creates opportunities for entrepreneurs, while addressing the global challenges outlined in the United Nations’ Sustainable Development Goals.
Goals numbers 7 through to 11 are of particular relevance:
- Goal 7 outlines the importance of affordable and clean energy;
- Goal 8 describes the need for decent work and economic growth;
- Goal 9 focuses on industry, innovation and infrastructure;
- Goal 10 speaks to reducing inequality; and
- Goal 11 outlines the importance of sustainable cities and communities.
Economic context and revitalisation plans
As the Chief Executive of Tshwane Economic Development Agency, Dr Lardo Stander has noted: “Our economic profile is formidable.”
The City of Tshwane is a key economic hub that according to 2023 statistics contributes 9.4% to South Africa’s GDP and 26.8% to theprovincial economy, with particular emphasis on the economic sectors of manufacturing and technology, with a strong focus on theautomotive and aerospace industries, a resilient agricultural economy, and a fast-growing services sector.
“If the City of Tshwane were a country, our economy would rival that of Iceland, Cyprus, El Salvador, and also Zambia, Zimbabwe or Senegal,” Dr Stander has said. It is home to over 4.1 million people.
However, challenges such as high unemployment (31.7% in 2024), energy instability, and spatial inequalities persist.
- Attract R10 billion in new investments by 2026.
- Create 50 000 new jobs through targeted sector growth.
- Revitalise the central business district and industrial zones like Rosslyn and Waltloo through infrastructure upgrades and public-private partnerships. Of particular importance is the promotion of green economy initiatives, including renewable energy projects to enhance energy security and sustainability.
The Tshwane Energy Summit highlights
This year’s summit coincides with the U20 and African Mayors’ Assembly, two key events taking place in the lead-up to South Africa’s historic G20 Presidency in November 2025 – the first for an African nation.
These forums will amplify local government perspectives, ensuring that global policies resonate at the grassroots level.
At the same time, the energy summit will discuss crucial issues around the provision of energy, including transforming the sector to one ofsustainability and resilience, creating investment and job opportunities, harnessing innovative technology within the energy sector, and delivering training initiatives that
encompass the skills needed for a different, AI-driven, future.
An equally important aspect of the debates on energy is how to harness the partnerships and expertise available through inter-provincial and continental collaboration, particularly under the African Continental Free Trade Area (AfCFTA) framework.
Green energy: A driver of economic transformation South Africa’s unreliable energy, marked by load shedding, has disrupted businesses and households. Yet even these tough moments present opportunities. Green energy is a powerful engine for job creation. The City of Tshwane’s economy, like
much of South Africa, grapples with high unemployment rates, particularly among our youth.
Another critical aspect of green energy’s economic potential is its ability to address inequality and uplift underserved communities. Our capital city is one of contrasts, with affluent areas coexisting alongside townships and informal settlements.
Green energy projects, such as solar-powered community centres or off-grid solutions for low-income households, can improve access to electricity in areas that have historically been underserved.
This not only enhances quality of life but also enables residents to participate more fully in the economy, whether through small-scale entrepreneurship or access to education and digital tools.
By prioritising equitable energy access, the City of Tshwane can foster inclusive growth that leaves no one behind.
For example, transitioning to renewable energy – solar, biomass, gas and hydroelectric power – offers a solution to enhance energy security while addressing global carbonneutral goals.
In addition, an innovative renewable energy sector can create thousands of jobs in manufacturing, installation, maintenance, and research. Solar panel production assembly, for example, require skilled labour, while installation and maintenance demand technicians, engineers, and project managers.
Rosslyn Industrial Hub could become a centre for renewable energy manufacturing,leveraging its automotive expertise.
Small, medium, and micro enterprises (SMMEs), which account for 60% of the City of Tshwane’s businesses, can participate in the renewable energy supply chain.
Partnerships with institutions like the UNISA, University of Pretoria and Tshwane University of Technology could open the doors to developing training programmes to equip the workforce for a green economy. The event will also see the launch of the Youth Challenge for Renewable Energy partnership programme
between the City of Tshwane and UNISA featuring innovative solutions to address energy poverty in informal settlements.
And, importantly, a commitment to sustainability enhances the City of Tshwane’s appeal as an investment destination.
The Tshwane Economic Development Agency’s (TEDA’s) efforts to position the capital city as a smart, green city align with global trends, attracting ecoconscious businesses and boosting sectors like hospitality and eco-tourism, while green energy projects, such as solar-powered community centres in townships like Mamelodi and Soshanguve, can improve electricity access, enabling entrepreneurship
and education in underserved areas.
Balancing the green transition and employment
A key topic globally is that of the need to harness sustainable energy. In South Africa this topic is complicated by the need to find a balance between embracing green alternatives with finding solutions to thethreat of job losses in the current energy sector that such a move highlights. The shift to renewables must address concerns about job losses in traditional energy
sectors like coal.
It is a topic we cannot shy away from, as countries move to carbon neutral policies. Sooner or later, these changes will impact South Africa, so it is worth looking more closely at the links between sustainable energy sources and economic development. These links can be seen in the City of Tshwane’s revitalisation plans include:
- Reskilling programmes to transition coal workers to renewable energy jobs.
- The Just Transition Framework aligns with national policies to create more jobs in renewables than are lost in fossil fuel sectors.
- Innovation hubs are well placed to develop energy solutions tailored to the city’s context, supported by research institutions and private sector collaboration. Green energy is cost-effective, with solar power leveraging South Africa’s abundant sunshine to reduce operational costs compared to coal or gas. This frees up resources for investment in education, healthcare, and infrastructure.
By 2030, the City of Tshwane aims to:
- Increase the renewable energy share in its energy mix to 20%.
- Reduce energy costs for businesses and households by 15% through efficiency measures.
- Establish the City of Tshwane as a regional leader in green technology, fostering exports under AfCFTA. The Tshwane Energy Summit 2025 is a platform to shape a sustainable, prosperous
future. By fostering public-private partnerships, engaging communities, and investing in innovation, the City of Tshwane can transform its energy sector into a cornerstone of economic growth.
About TEDA:
The Tshwane Economic Development Agency (TEDA) is an agency of the City of Tshwane. Its core mandate is to promote trade and investment in the Tshwane region. TEDA plays a vital role in supporting the growth and development of SMMEs, driving economic inclusion, and creating opportunities for businesses.
Contact: Paseka Rakosa
Email: PasekaR@tshwane.gov.za
Tel/Cell no: 012 358 6517/082 429 1862
www.teda.org.za