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Accelerating the Just Transition by building a green economy in Mpumalanga.

Mpumalanga is at the centre of the South African coal industry. However, the transformation of the South African energy system to cleaner energy is gathering momentum. As this transition accelerates, there is an opportunity to drive a "Just Transition" to facilitate more investment and stimulate job creation in Mpumalanga's green economy.

The Mpumalanga Department of Economic Development and Tourism (DEDT) in collaboration with GreenCape, supported by UK PACT (Partnering for Accelerated Climate Transitions) and others, established a Green Economic Sector Development Cluster Agency. This Cluster was officially launched in May 2022 and will focus on unlocking and unblocking economic opportunities in the green economy to contribute to regional economic diversification and job creation.

One of the opportunities that can contribute to regional economic diversification and job creation is building the renewable energy manufacturing value chain. The South African Renewable Energy Masterplan (SAREM) presents the vision and opportunity for a renewable energy manufacturing value chain in South Africa and key regional areas like Mpumalanga. The SAREM is one of South Africa’s 14 industry-specific masterplans under the reimagined Department of Trade, Industry and Competition (DTIC), leading industrial strategy for South Africa. GreenCape has served as the secretariat of the SAREM development process. This involved managing the project, conducting and coordinating research, facilitating consultation with key stakeholders and doing the technical drafting of the SAREM with the support of UK PACT and others.

The interplay between these two initiatives – the Mpumalanga Green Cluster Agency and the South African Renewable Energy Masterplan – supports the possibility of a Just Energy Transition that promotes social inclusion, job creation, increased investment, and poverty reduction.

Key project actions:

• Engaging with government, trade unions, impacted communities and industry to validate and implement the SAREM process (project first phase)
• Developing a strategy and business plan for the new Mpumalanga Cluster Agency in the 22/23 financial year
• Shortlisting investment opportunities in Mpumalanga and promoting them.
• Delivering training to Mpumalanga government officials to enhance their understanding of the opportunities and potential challenges to adopting green solutions in the province.
• Developing the first Market Intelligence Supplier Database to help industry, project developers and investors procure only locally produced goods and services, as required by law for renewable energy developments. 

 Beneficiary:

Mpumalanga Green Cluster Agency highlights

• The Cluster is a registered independent Non-Profit Organisation and has a Board of Directors covering government, industry and academia.
• The Cluster has identified and is working to remove barriers for R75bn worth of Green Economy projects - with the potential to create over 13,000 jobs while diverting more than 740 tonnes of waste from landfills.
• The Cluster convened the Mpumalanga Energy Summit in May 2022 with key national stakeholders.  

• The social compact partners in government, industry, labour and community have worked to find common ground and collaboration to realise this significant opportunity for South Africa.
• A South African Renewable Energy Masterplan, supported by social compact partners, has been submitted to the Executive Oversight Committee (EOC) chaired by the Minister of Mineral Resources and Energy of South Africa.
• The analysis underpinning SAREM indicates that localising 70% of the components and 90% of the Balance of Plant and Operations and Maintenance in the wind and solar PV value chains, combined with battery energy storage, could deliver 36 500 new direct jobs by 2030, with a total GDP contribution of R420 billion.