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Gas-to-power project worth billons brings hope to SMMEs

by Excel Likhonithemba Fongoma
April 17, 2025
in Business
Reading Time: 3 mins read
A A
MEC for the Department of Economic Development, Environment, Conservation and Tourism, Bitsa Lenkopane  and Major Cllr Fikile Mhlophe  of Matlosana Local Municipality

MEC for the Department of Economic Development, Environment, Conservation and Tourism, Bitsa Lenkopane and Major Cllr Fikile Mhlophe of Matlosana Local Municipality

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Matlosana municipality in the North West has launched a R15 billion gas-to-power project and empowerment initiatives targeting women and youth entrepreneurs.

This development, hailed as a turning point for local SMMEs, aims to tackle the twin challenges of energy insecurity and economic exclusion.

The initiative is spearheaded by the economic development MEC Bitsa Lenkopane in collaboration with Matlosana’s mayor Fikile Mahlophe.

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At its centre is the Urban Blue International gas-to-power plant, which is a 99MW facility that will be built on land allocated by the municipality. The plant is expected to dramatically improve energy stability, reduce the frequency of load-shedding and attract fresh investment into the region.

“This landmark investment represents a crucial step forward in our quest for energy security and the promotion of vital investment in our municipalities and our province,” said Lenkopane.

“More than that, it lays the groundwork for the development of small enterprises who are the lifeblood of our communities.”

She stressed that the initiative was not just about infrastructure.

“It’s about building inclusive economies where small businesses, especially those led by women and youth, are not only supported, but empowered to thrive.”

For local SMMEs, the news could not have come at a better time. Businesses across Matlosana have battled under the weight of an erratic power supply, which has resulted in operational disruptions, increased costs and stunted growth.

Thabo Mokoena, who owns a food distribution business, explained the burden of power outages on his operations.

“Energy stability is everything to us. The frequent load-shedding has not only disrupted our operations but has cost us dearly in terms of lost stock and productivity,” he said.

“This project is a real game-changer for businesses. Reliable energy means I can plan ahead and offer better service. For SMMEs, this is a step towards long-term sustainability.”

Vukubi Building PTY Ltd founder Sipho Vukubi echoed similar sentiments.

“As a manufacturer of building materials, power disruptions have repeatedly halted production, increasing costs and delaying delivery timelines. The gas-to-power project will allow us to increase productivity, meet demand and grow our client base. It’s not just energy; it’s the future of our business on the line.”

Alongside the energy project, Matlosana also saw the launch of a skills development programme in partnership with the Banking Sector Education and Training Authority, which focuses on women and youth.

Lindiwe Sekwati, who runs Elegant Salon PTY Ltd in Klerksdorp, said the initiative could change the face of township enterprises.

“Many of us are running businesses without formal training. A programme like this doesn’t just help us get certified, it also boosts confidence and credibility with customers and lenders.”

A further 100 local youth have been employed as compliance monitoring officers to assist in enforcing environmental and business regulations, an initiative that has been praised by Mahlophe.

“This supports both awareness and enforcement. We will also be able to run environmental campaigns in schools and across the CBD,” he said.

The government has pledged ongoing support for Matlosana SMMEs, including plans for a one-stop shop centre to streamline regulatory and development processes. Tourism, environmental services and further economic development initiatives are also in the pipeline.

 

 

 

Tags: Gas-to-Power plantMEC Bitsa LenkopaneSMMEs and Urban Blue
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Excel Likhonithemba Fongoma

Excel Likhonithemba Fongoma

Excel Likhonithemba Fongoma studied journalism at TUT, and has worked in radio and online for eight years, covering a wide variety of stories for Tshwane FM, Rekord Noweto and more.

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