South Africa continues to lead Africa’s renewable-energy transition, offering a growing range of investable opportunities in wind, solar, biofuels and green hydrogen, according to the latest Forvis Mazars ‘Powering Africa’s Future Energy’ report.

The report highlights that South Africa generated more than 50 TWh from renewable sources in 2024, including hydroelectric at 10.1 TWh, solar at 8 TWh, wind at 9 TWh and other renewables rounding out the remaining 27.1 TWh, positioning the country as the continent’s top producer.

“South Africa boasts exceptional renewable-energy resources, such as abundant solar and wind potential, and recent policy progress further supports energy transition ambitions,” Forvis Mazars director Johan Marais said on January 12.

The report notes that South Africa’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) created a blueprint for enabling regulations that had influenced renewable energy policies across the continent.

The report adds that solar capacity on the continent grew by 25% in 2024, with generation advancing rapidly in Southern Africa, where South Africa remains the regional leader.

The country is also increasingly developing opportunities in green hydrogen and biofuels. South Africa is identified as one of several nations ideally positioned for green hydrogen production and export owing to its exceptional solar and wind potential and rising European demand. Significant investments are under way to develop the biofuels sector, supported by enabling policies and international partnerships.

In addition, South Africa is investing in carbon capture solutions, smart grids and solar minigrid projects, with multiple pilot initiatives currently in progress. The country contributes substantially to Africa’s supply of critical minerals required for the global energy transition, including platinum group metals, cobalt and titanium.

“With their sector-specific legislation, feed-in tariffs, competitive auctions or net metering, and an independent regulator, these countries are considered pioneers and attract the majority of investments,” Marais said, referring to South Africa and a select group of other African nations.

He highlighted how the country’s Integrated Resource Plan 2019 aims to reduce reliance on coal in favour of a diversified energy mix including wind, solar and storage, while the Energy Action Plan 2022 seeks stable supply through renewable energy, with progressive regulations allowing independent private producers and improvements to the transmission network.

South Africa is also advancing legislative frameworks for hydrocarbons.

“More recently, the new Upstream Petroleum Resources Development Act, signed into law by the President [Cyril Ramaphosa] in 2024, establishes a more investor-friendly environment for oil and gas exploration and production. While this Bill is not yet in force, it reflects South Africa's move to integrate processing and local participation into petroleum legislation,” Marais said.

The report also notes that private generation is expanding alongside evolving upstream frameworks, prompting companies to seek expert guidance on converting policy changes into executable projects.

“Clients want to know where to move first and how to structure resilient projects,” Marais said.

Looking ahead, the report says continued investment in renewable infrastructure, combined with regulatory advances in the hydrocarbon sector, will enable South Africa to diversify its energy mix, ensure long-term energy security, attract new capital and support inclusive economic growth.

“These factors, coupled with a population exceeding 63-million and a GDP of about $400-billion, [mean that] South Africa remains an economic heavyweight on the continent, presenting significant opportunities for energy sector investment,” Marais said.