Janet Wilhelm
SMME INCLUSION IN THE JUST TRANSITION
Focus Group: Opportunities and Barriers for SMMEs in Just Transition towards a Low Carbon Economy
Sector Focus Area: Responsible water management
As the global community increasingly prioritises the transition to a sustainable and equitable economy, the imperative to ensure the inclusion of small, medium, and micro enterprises (SMMEs) becomes paramount. Within this context, empowering youth and female-owned SMME newcomers in green industries emerges as a pivotal strategy for fostering just transition inclusion. This paper explores the business challenges and opportunities faced by SMMEs owned by marginalised groups such as youth and women as they navigate the transition to greener practices and industries. Drawing on a review of existing literature and case studies, the paper identifies key SMME business barriers such as limited access to capital, a lack of technical expertise, and limited market opportunities. Moreover, it examines green sectoral challenges faced by youth and female entrepreneurs, including energy, water and waste sectors. Building upon these insights, the paper proposes a set of tailored strategies to strengthen the participation of youth and female-owned SMMEs as newcomers in green industries to ensure a Just Transition does not leave anyone behind. These strategies encompass capacity initiatives, targeted financial support mechanisms, business development, and mentorship programs, enterprise and supplier development initiatives and policy interventions aimed at levelling the playing field and fostering an enabling business environment for inclusive participation in the Just Transition as local green entrepreneurs. By addressing the unique needs and aspirations of youth and female entrepreneurs, empowering SMMEs owned by these demographics can drive meaningful progress toward a Just Transition, promoting economic resilience, social equity, and environmental sustainability.
- To identify opportunities for SMMEs in the Energy Sector (youth-owned, female-owned)
- To unpack green business barriers for local green entrepreneurs in the energy sector
- To put forward recommendations for policy interventions
- To foster collaboration across stakeholders
Presentations
TIPS-ECF Fund: SMME in Just Transition participation: Water sector focus group – Elize Hattingh, Dr Michael Hector, Dominic Ramos (TIPS)
The Water and Sanitation Industrialisation Masterplan Work – Gillian Chigumira (TIPS)
Water sector market Intelligence: Small, micro and medium enterprises – Akhona Tyhali (GreemCape) (With input from Lucky Litelu, IRCD Group)
Inclusive growth and economic opportunities through ecosystem partnerships: The case ofthe plumbing industry – Dr Anthony Gewer (NBI)
Gugulethu Mahlangu (House Harvest (Pty) Ltd)
Chantelle Jackson (WaterWell Serenity Spa Specialists (Pty) Ltd)
Youth BridgeTrust and the green economy – Ntsiki Gumbe (Youth Bridge Trust)
Speakers
Elize Hattingh joined TIPS in November 2020 as a Researcher: Sustainable Growth. She has a Master’s Degree in Sustainable Development and Management from Stellenbosch University’s School of Public Leadership in partnership with the Sustainability Institute. She has been actively involved in promoting the sustainable development agenda for more than 15 years.
Michael Hector has a PhD in Political Science from Stellenbosch University, where his research focussed on the green economy and environmental governance in South Africa. His thesis studied the use of ecological modernisation and market mechanisms (and the implementation thereof) in South Africa’s environmental and waste management policies.
Dominic Ramos is a former researcher at TIPS. He holds a Master’s degree in International Relations and Political Economy a degree in International Political Economy from the University of the Witwatersrand. His thesis primarily focused on food security and its trade implications in Mozambique and Zimbabwe amid severe climate crises. His research includes food security, the implications of the EU CBAM, and the role of SMMEs in the green economy.
Gillian Chigumira joined TIPS in 2014. Her work targets research and policy development for government departments, regional and international organisations. Her expertise cuts across national masterplans for industry, sectors, and individual product analysis in agricultural and agro-processing related value chains and the broader manufacturing sector.
Other Focus Groups
Sector Focus Area: Sustainable waste management
Sector Focus Area: Renewable energy and energy efficiency
SMME Inclusion in the Just Transition Focus Group: Renewable energy and energy efficiency
SMME INCLUSION IN THE JUST TRANSITION
Focus Group: Opportunities and Barriers for SMMEs in Just Transition towards a Low Carbon Economy
Sector Focus Area: Renewable energy and energy efficiency
As the global community increasingly prioritises the transition to a sustainable and equitable economy, the imperative to ensure the inclusion of small, medium, and micro enterprises (SMMEs) becomes paramount. Within this context, empowering youth and female-owned SMME newcomers in green industries emerges as a pivotal strategy for fostering just transition inclusion. This paper explores the business challenges and opportunities faced by SMMEs owned by marginalised groups such as youth and women as they navigate the transition to greener practices and industries. Drawing on a review of existing literature and case studies, the paper identifies key SMME business barriers such as limited access to capital, a lack of technical expertise, and limited market opportunities. Moreover, it examines green sectoral challenges faced by youth and female entrepreneurs, including energy, water and waste sectors. Building upon these insights, the paper proposes a set of tailored strategies to strengthen the participation of youth and female-owned SMMEs as newcomers in green industries to ensure a Just Transition does not leave anyone behind. These strategies encompass capacity initiatives, targeted financial support mechanisms, business development, and mentorship programs, enterprise and supplier development initiatives and policy interventions aimed at levelling the playing field and fostering an enabling business environment for inclusive participation in the Just Transition as local green entrepreneurs. By addressing the unique needs and aspirations of youth and female entrepreneurs, empowering SMMEs owned by these demographics can drive meaningful progress toward a Just Transition, promoting economic resilience, social equity, and environmental sustainability.
- To identify opportunities for SMMEs in the Energy Sector (youth-owned, female-owned)
- To unpack green business barriers for local green entrepreneurs in the energy sector
- To put forward recommendations for policy interventions
- To foster collaboration across stakeholders
Presentations
Fund on International Energy (PIE) an international platform hosted at Stichting European Climate Foundation – Elize Hattingh, Dominic Ramos (TIPS)
Opportunities for SMME in the Energy Sector
Fostering the contribution of Small Business to SA's Just Transition to a Greener Economy – Billy Bokako (Senior Manager Incubation, Seda)
ECF JT small business workshop – Group Ian Steuart (Just SA Team)
Business Development Support Initiatives for SMMEs in the Energy Sector
Installation, repair and maintenance (IRM) Initiative – National Business Initiative
SMME Business Barriers inputs (Case Studies)
The future of transformation – MLPC Projects
Smart energy, disability includion and circular economy – Phoki Foundation and Holdings
Presenters
Elize Hattingh joined TIPS in November 2020 as a Researcher: Sustainable Growth. She has a Master’s Degree in Sustainable Development and Management from Stellenbosch University’s School of Public Leadership in partnership with the Sustainability Institute. She has been actively involved in promoting the sustainable development agenda for more than 15 years.
Dominic Ramos is a former researcher at TIPS. He holds a Master’s degree in International Relations and Political Economy a degree in International Political Economy from the University of the Witwatersrand. His thesis primarily focused on food security and its trade implications in Mozambique and Zimbabwe amid severe climate crises. His research includes food security, the implications of the EU CBAM, and the role of SMMEs in the green economy.
Other Focus Groups
Sakhile Ndlovu
Sakhile Ndlovu is an economist and researcher at TIPS, where he joined in 2024. His work at TIPS explores how industrial policy can support inclusive and sustainable development in South Africa. He holds a BA Honours in Political Studies and International Relations and an MPhil in Economics (specialising in industrial policy), both from the University of Johannesburg and completed with distinction. His Master's research examined accumulation in South Africa’s sugar industry through a political economy lens, highlighting how policy regimes and entrenched power dynamics shape industrial outcomes. His broader interests include macroeconomics, structural transformation, financialisation, and the political economy of industrialisation in emerging markets. Sakhile is an aspiring development economist with a background in academic research and teaching, committed to evidence-based policymaking that supports equitable and transformative economic strategies.
Electrical Equipment Regional Value Chain Between South Africa, Zambia and Zimbabwe 2024
The demand for electricity in the Southern African Development Community (SADC) region is anticipated to double from 280 terawatt hours (TWh) in 2010 to 570 TWh by 2030. By extension, the region will require significant amounts of electrical equipment, which includes items that are used for generation, conversion, transmission, supply, control, and utilisation of electric energy. The SADC region is a net importer of electrical equipment, although South Africa supplies some of the equipment, including cables and structural steel products to the region, and Zambia produces copper wire on a large scale. If more local requirements for electrical equipment were produced in the region, it would stimulate investment, innovation, manufacturing, and job creation both directly and indirectly.
This regional value chain report examines whether SADC countries can move up the value chain and produce more inputs. It considers opportunities for further value addition in three Southern African countries – South Africa, Zambia, and Zimbabwe.
The TIPS Development Dialogue: Industrial policy after the COVID-19 downturn was held on Thursday 25 April 2024. For more information about the programme and speakers, and copies of the video and presentations, go to Development Dialogue.
FDI Tracker Q4 2023
The Tracker added 23 projects in the fourth quarter of 2023 with a pledged investment value amounting to R478.7 billion recorded from 12 projects. The other 11 projects have not yet reported their respective project values. Monitoring updated 28 pre-existing projects to the Tracker this quarter.
Growing the start-up economy in South Africa: Accelerating local and foreign investment
The South African start-up sector has experienced significant growth over the past decade. However, the growth of start-ups in South Africa is still far from its potential. Growth elsewhere in Africa has, in recent years, been far more rapid. Once the leading country in Africa for investment in start-ups, South Africa has been overtaken by Nigeria while other African countries, such as Egypt and Kenya, have been growing more rapidly than South Africa.
This policy brief identifies the key constraints that currently curtail the rate of growth of the South African start-up sector, and outlines the measures that could address these constraints. It follows a November 2023 TIPS workshop, Growing the Start-Up Economy: Accelerating Local and Foreign Investment. Inter alia, the policy brief draws on the presentations and discussion at the workshop.
Industrial policy after the COVID-19 downturn
PRESENTATIONS
Nishal Robb (TIPS) – SA economic trends pre- and post-COVID-19: Implications for industrial policy
Itumeleng Mokoena (DNA Economics) – Trends in the global economy since 2008 and Implications for South Africa's industrial policy
Nokwanda Maseko (TIPS) – Post-covid industrial policy in the context of the climate crisis
Neva Makgetla (TIPS) – The political economy of industrial policy in SA
AGENDA
Opening Remarks and Moderator: Saul Levin (TIPS)
Presentations and discussion
• Nishal Robb (TIPS) – Insights from Paper: SA economic trends pre-and post-COVID-19: Implications for industrial policy
• Itumeleng Mokoena (DNA Economics) - Insights from TIPS Paper: Trends in the global political economy and trade
• Nokwanda Maseko (TIPS) – Insights from Paper: The climate crisis
• Neva Makgetla (TIPS) – Overview and presenting Insights: The political economic context for industrial policy
• Tanya van Meelis (COSATU) - Discussant
BACKGROUND
The COVID-19 pandemic in 2020 initiated a series of crises, ranging from supply-chain disruptions to geo-political tensions that substantially affected global markets. In South Africa, these developments aggravated joblessness and inequality, contributed to stress on network infrastructure, complicated the response to the climate crisis, and slowed overall growth. The improvement in prices for mining exports in the early 2020s provided only temporary relief.
These issues have reshaped the landscape for industrial policy in South Africa, opening up new opportunities as well as raising threats and obstacles. The development dialogue aims to promote discussion about how industrial policy has to evolve to address these new realities. To support the debate, TIPS researchers will present research undertaken over the past year that aimed to define the challenges more clearly, with in-depth dives into trends since 2020 in economic growth and employment; the climate crisis and policy responses to it; global trade and power relationships; and the local political economic context.
ABOUT THE SPEAKERS
Moderator
Saul Levin is the Executive Director of TIPS. He previously worked as a Chief Director in the Economic Development Department (EDD) with oversight over the Development Finance Institutions reporting to EDD.
Presenters
Dr Neva Makgetla is a senior economist at TIPS. Makgetla has published widely on the South African economy and worked for many years in government.
Nokwanda Maseko is a senior economist at TIPS. Her work is at the intersection of industrial policy, gender and the just transition. She previously worked as a Budget Analyst at the National Treasury, and as an Assistant Director for Industrial Policy at the Economic Development Department.
Nishal Robb is an economist at TIPS. Nishal has worked on a range of topics, including the history of South Africa’s labour-intensive clothing industry; the impact of poor school safety on education; the financialisation of South African firms and implications for structural transformation; and illicit financial flows, tax havens and industrial development in South Africa.
Itumeleng Mokoena is an economist at DNA Economics. He has worked on several projects across different sectors including financial services, government and manufacturing.
TIPS Dialogues bring together academics, policymakers, civil society organisations, workers, and practitioners
to discuss important issues and share ideas on industrial policy.
TIPS is partnering with the Department of Trade Industry and Competition (the dtic).
Analysis on state-owned entities - Neva Makgetla
eNCA 11 April 2024 - Interview with Neva Makgetla (TIPS Senior Economist)
Watch on YouTube
Industry Study: Capital Goods in South Africa 2024
TIPS industry studies aim to provide a comprehensive overview of key trends in leading industries in South Africa. For each industry covered, working papers will be published on basic economic trends, including value added, employment, investment and market structure; trade by major product and country; impact on the environment as well as threats and opportunities arising from the climate crisis; and the implications of emerging technologies. The studies aim to provide background for policymakers and researchers, and to strengthen our understanding of current challenges and opportunities in each industry as a basis for a more strategic response.
The capital goods industry plays a crucial cross-sectional role in the economy as the industry’s output of machinery and equipment is required for virtually all goods production processes. The industry accounted for 7.1% of South Africa’s total manufacturing value added in 2022. Income from the industry’s seven sub-industries rose from R56.4 billion in 2011 to R135 billion in 2021 (in constant 2021 Rand), with the five largest companies in each industry contributing an average of 42% of total income contribution. Exports of capital goods surged by 69% in 2022 from the previous year owing to a 347% increase in exports of other general purpose machinery to the European Union (EU). Employment within the industry is mainly dominated by engineering services, which accounted for 74% of total employment at the end of 2022. The share of general and special purpose machinery combined was 26%.
Industry Studies
Technological Change in the Food Processing Industry 2024
Technological Change in the Plastics Industry 2024
South Africa's International Trade in Plastics 2024
Technological Change in South Africa's Automotive Industry 2024
Technological Change in the Capital Goods Industry 2024
Clothing and Textiles International Trends 2024
International Trends in the Capital Goods Industry 2024
International Trade in South Africa's Automotive Industry 2024
Capital Goods in South Africa 2024
Additional studies for other industries will be added when finalised