The launch of the Ummbila Emoyeni Wind Energy Facility near Bethal, Mpumalanga is expected to create opportunities for local businesses as the province begins diversifying beyond its traditional coal-based economy.
The project presents potential opportunities across sectors including construction, transport, security, catering, accommodation, equipment hire, engineering and maintenance.
However, the key question is whether these opportunities will translate into sustainable businesses for entrepreneurs in Bethal and surrounding communities, or whether most of the economic value will remain with large contractors with the financial capacity and technical expertise to secure major contracts.
The 155MW first phase of Ummbila Emoyeni forms part of a planned 900MW renewable energy programme. The project has been positioned as an important component of South Africa’s Just Energy Transition, with the potential to support employment, skills development, infrastructure and local economic activity.
The developer has reported that the project and related activities are expected to support more than 600 direct and indirect jobs, while thousands of applications were received for skills development opportunities.
For local entrepreneurs, however, job creation is only one part of the equation.
SMMEs need access to the procurement pipeline
Bethal-based entrepreneur Nolwazi Booi, who operates Tactical Services, said renewable energy investment could become a major economic opportunity if local businesses are given practical access to supply chains.
“Projects of this size can change the local economy, but small businesses need to know where the opportunities are and what is required to qualify. It is difficult for a small business to compete when procurement processes are designed mainly for companies with large financial resources,” Booi said.
The concern reflects a wider challenge facing SMMEs participating in major infrastructure projects.
While large developments can generate demand for local goods and services, smaller businesses often face barriers including limited access to finance, strict compliance requirements, lack of technical certification and difficulty securing contracts that require significant upfront capital.
Mlungisi Mabaso, a representative of Thumelani Business Workshops, said the renewable energy transition should be measured by how much value remains within local communities.
“The real test is whether local businesses are moving up the value chain. We need to see SMMEs not only providing catering or security services but also developing the technical capacity to participate in engineering, maintenance and other higher-value opportunities,” Mabaso said.
Green economy requires long-term planning
The opportunity extends beyond the construction phase.
As renewable energy projects move into commercial operations, businesses can potentially develop longer-term service offerings around maintenance, logistics, security and technical support.
This makes skills development and supplier development critical to ensuring that local entrepreneurs remain part of the economic ecosystem after construction activity slows.
MGCA communication officerGift Mkhatshwa said Mpumalanga’s transition would require deliberate planning to ensure that communities historically dependent on coal are prepared for new industries.
“The Just Energy Transition cannot only be about replacing one source of electricity with another. It must also be about building local economic capacity, developing skills and creating businesses that can participate in the new energy economy.” Mkhatshwa said.
For Mpumalanga’s SMMEs, the challenge is therefore to move from being temporary beneficiaries of renewable energy projects to becoming permanent participants in the green economy.
The province’s ability to connect local entrepreneurs with procurement opportunities, business development support, finance and technical training will determine whether projects such as Ummbila Emoyeni deliver broad-based economic benefits.
