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Investing in skills in SA’s renewable energy sector

4 November 2024: With a constrained national power grid and a global move towards greener energy, many South Africans are considering installing solar electricity solutions at home. However, they are often faced with a tough choice: paying a premium for high-quality products (often imported from Europe) or opting for more affordable products (often from China) and compromising on quality.

In both cases, when something goes wrong, there is often no recourse, as the consumer usually deals with a local agent – not the manufacturer that issues the warranty. Ener-G-Africa (EGA) has found a way to bridge the gap, providing high-quality, certified renewable energy products at a lower price point, while also offering warranties.

EGA offers innovative energy access solutions, designed and built in Africa for African needs, including solar panels (TÜV certified), biomass stoves and 100% locally made stainless steel clean-cooking stove components.

Through a combination of innovative manufacturing, local expertise, and a focus on sustainability, the company manages to provide products that are both high-quality and cost-effective, making a meaningful impact in African markets. EGA Chief Production Officer, Charlie Leaper shares two lessons for other local manufacturers.

Invest in first rate equipment; minimise supply chain costs

“High-quality production often requires advanced technology and equipment, which can be expensive and difficult to acquire for local manufacturers. Without modern machinery and tools, it’s hard to meet international quality standards while keeping costs low,” Leaper says.

Leaper explains that the EGA business started in Malawi and is now headquartered in South Africa. “We are an African company that understands the local markets, so we know what people are looking for and we focus on delivering that, rather than trying to retrofit products from overseas markets,” he says. “We also understand how to do business here. We manufacture our products in Africa for Africans, which reduces shipping costs and avoids import tariffs.”

By outfitting its facilities with custom-made metal forming machines and cutting-edge precision tools, EGA achieves high production efficiency. These tools enable the company to produce bespoke metal parts, improving quality while controlling costs through in-house capabilities.

EGA has actively engaged with several educational institutions and training providers to upskill employees, develop leadership capabilities, and meet technical requirements for its product lines.

Find a balance

Leaper says creating a sustainable business in Africa requires balancing production efficiency (such as automating aspects of the manufacturing process) and socioeconomic elements (such as job creation and skills development).

“EGA is a Proudly South African member, which means we’re committed to local socio-economic progress, and to making a meaningful contribution to building South Africa’s economy and alleviating unemployment,” says Leaper.

EGA primarily recruits its workforce from the communities in which it operates. For example, in 2024, when EGA launched its new solar panel manufacturing facility in Paarl, it invested in upskilling a previously unemployed community member, Shane Swaartbooi, training him to operate its state-of-the-art laser cutting machine.

Swaartbooi, who had no prior experience, says he had always wanted to work for an organisation such as Ener-G-Africa “because they do not just manufacture their products in quantities, but it is about manufacturing quality products that make a positive impact in people’s lives.”

He now manages the EGA laser cutting machine, worth $1 million, and is proud to work for the business. “Our products are good for the environment, but more importantly than that, South Africa has a huge energy crisis, and a high unemployment rate. Local manufacturing is important because it means that customers do not have to pay more for quality products because they are made right here at home.”

For more information, visit the Ener-G-Africa website, www.ener-g-africa.com.

 

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About EGA: Ener-G-Africa (EGA) offers innovative energy access solutions, designed and built in Africa for African needs. As a champion of sustainability in Africa, EGA is addressing the obstacles posed by climate change through locally developed sustainable and clean energy products and solutions, spanning the entire continent.

EGA aims to transform communities by giving them access to efficient cooking and affordable solar electricity solutions.

Established in Malawi in 2017, EGA was founded as a solar wholesale company. Today, the company operates its own manufacturing facilities in South Africa’s Western Cape province, producing a range of solar panels, clean-cooking stove components, biomass fuels, and advanced biomass stoves.

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