The South African National Energy Development Institute (SANEDI) reaffirmed the critical role of policy, innovation and digital transformation in advancing South Africa's energy transition during the 13th Manufacturing Indaba Conference & Expo, where Prof Sampson Mamphweli, Head of the Department of Science, Technology and Innovation (DSTI) Energy Secretariat at SANEDI, participated in Automation Day on 16 July 2026.

The side event brought together leading experts in automation, robotics, artificial intelligence (AI), Industry 4.0, smart manufacturing and digital technologies to explore how innovation is transforming the future of manufacturing. As part of the programme, Prof Mamphweli participated in a high-level panel discussion examining how policy, regulation and automation are shaping a more energy efficient and globally competitive manufacturing sector in South Africa.

During the discussion, Prof Mamphweli emphasised that while rising electricity costs remain the primary driver for improving energy efficiency, effective policy and regulatory frameworks have become the second most important catalyst for accelerating the adoption of automation technologies across industry.

"Energy efficiency is no longer simply a cost-saving measure it has become a strategic business imperative. Through supportive policies, incentives and technological innovation, South Africa has an opportunity to modernise its manufacturing sector, improve competitiveness and accelerate the country's transition towards a low-carbon economy," said Prof Mamphweli.

A key focus of the discussion was South Africa's National Energy Efficiency Strategy (NEES), which continues to guide national energy efficiency and demand-side management initiatives. The strategy, currently under review, sets an ambitious target of reducing the country's energy intensity by 29% by 2030, positioning energy efficiency as a cornerstone of sustainable industrial development.

Prof Mamphweli also highlighted the continued success of the Section 12L Energy Efficiency Tax Incentive, administered by SANEDI on behalf of government. The incentive enables businesses to claim R0.95 per kilowatt-hour (kWh) of verified energy savings, encouraging investment in energy-efficient technologies, automation and operational optimisation.

Since its introduction, the Section 12L incentive has verified more than 34,000 GWh of energy savings across multiple sectors of the economy, translating into more than R29 billion in tax incentives, with South Africa's manufacturing sector contributing significantly to these achievements.

The panel further welcomed the extension of the Section 12L incentive until 31 December 2030, providing long-term certainty for businesses investing in energy-efficient equipment, automation and modern manufacturing technologies.

Looking ahead, Prof Mamphweli outlined several important regulatory developments that manufacturers should prepare for as South Africa continues to strengthen its energy and climate policy framework. These include the implementation of Phase 2 of the Carbon Tax, which will further incentivise emissions reductions and operational efficiency; the enforcement of Minimum Energy Performance Standards (MEPS), requiring new industrial electric motors to comply with IE3 Premium Efficiency standards; ongoing reforms enabling manufacturers to procure electricity directly from independent power producers through wheeling and electricity trading arrangements; and continued compliance with Energy Performance Certificate (EPC) regulations for qualifying buildings.

The discussion concluded that policy certainty, technological innovation and automation will remain essential enablers of industrial competitiveness, improved productivity and sustainable economic growth. By embracing advanced manufacturing technologies alongside supportive government policies, South African industries can reduce energy consumption, lower operating costs and strengthen their position in an increasingly competitive global economy.

SANEDI remains committed to supporting government, industry and research institutions in driving energy efficiency, promoting innovation and accelerating South Africa's transition to a resilient, competitive and low-carbon industrial future.