The National Business Initiative (NBI) has urged the South African government to elevate water security, energy reliability, and climate resilience to the centre of its economic agenda, warning that failure to act decisively could undermine growth, investor confidence, and long-term competitiveness.
Ahead of the upcoming State of the Nation Address (SONA) and the Africa’s Green Economy Summit (AGES), NBI CEO Shameela Soobramoney described the country’s water, energy, and climate challenges as a “triple threat” to economic stability. She called for a decisive shift from policy formulation to coordinated implementation through a structured national “delivery compact” between government and business.
Unlocking Green Investment Through Policy Certainty
At the heart of the NBI’s message is the need to unlock green investment by providing regulatory clarity and accelerating execution.
South Africa, the organisation argues, already possesses strategic advantages — including significant critical mineral reserves, established industrial capacity, and a relatively sophisticated financial sector. However, without coherent policy signals and predictable regulatory frameworks, these assets cannot be fully translated into job creation, export growth, and global competitiveness.
Among the priority actions identified are:
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Finalising the establishment of an independent national transmission company
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Advancing a competitive electricity market
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Announcing clear and ambitious renewable energy generation targets
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Supporting local manufacturing capacity for electric vehicles and clean-energy components
According to the NBI, clear commitments in SONA will directly influence investor sentiment and shape discussions at AGES, where international stakeholders are expected to explore opportunities in Africa’s growing green economy.
Balancing Energy Security and Decarbonisation
The NBI emphasised that scaling up renewable energy deployment is essential for future economic growth. However, it cautioned that the energy transition must remain pragmatic and economically grounded.
Maintaining system reliability during the transition — including the short-term role of existing generation assets — is critical to preventing further economic disruption.
“The transition is not about switching off the current system overnight. It is about building the new system fast enough while stabilising the one we have,” Soobramoney stated.
This balanced approach reflects a broader continental reality: African economies must expand energy access and industrial output while simultaneously navigating global decarbonisation pressures.
Water, Energy and Climate: Interconnected Economic Risks
Framing water scarcity, electricity instability, and climate impacts as systemic economic risks, the NBI warned that these challenges are already increasing operational costs, weakening productivity, and deepening inequality.
Rather than viewing environmental sustainability and economic growth as competing priorities, the organisation argues they are fundamentally interdependent. Climate resilience, grid reliability, and water security are now prerequisites for industrial competitiveness and foreign direct investment.
The proposed “delivery compact” would focus on measurable targets in water security and energy reliability, supported by transparent data, clear accountability, and genuine public–private co-implementation. The NBI pointed to reform initiatives such as Operation Vulindlela as proof that coordinated partnerships can deliver tangible results.
Implications for Africa’s Green Economy
While the NBI’s call is directed at South Africa, the message resonates across the continent. Many African economies face similar constraints: unreliable electricity supply, water stress, infrastructure backlogs, and rising climate vulnerability.
As global capital increasingly favours climate-aligned investment, African countries that provide regulatory certainty, execution capability, and infrastructure reliability will be better positioned to attract green financing.
A Defining Moment for Economic Reform
As SONA approaches, the NBI’s position is clear: credible reform, policy certainty, and coordinated delivery are essential to unlocking green investment and securing long-term economic stability.
For South Africa — and for Africa more broadly — the green transition is no longer simply an environmental imperative. It is an economic necessity.
