South Africa’s NBI Calls for Green Investment Push as Africa’s Energy and Climate Risks Threaten Economic Stability

The National Business Initiative (NBI) has urged the South African government to position water security, energy reliability and climate resilience as core economic priorities, warning that failure to act decisively could undermine growth and investor confidence.

Ahead of the State of the Nation Address (SONA) and the upcoming Africa’s Green Economy Summit (AGES), NBI CEO Shameela Soobramoney described the country’s water, energy and climate challenges as a “triple threat” to economic stability. She called for a shift from policy planning to coordinated execution through a structured national “delivery compact” between government and business.

Green Investment Hinges on Policy Certainty

Central to the NBI’s message is the need to unlock green investment through regulatory clarity and execution speed. The organisation stressed that South Africa already has strategic assets — including critical minerals and industrial capacity — but requires policy coherence and clear market signals to convert these advantages into jobs, exports and long-term competitiveness.

Among the priority actions identified were:

• Finalising the establishment of an independent national transmission company
• Advancing a competitive electricity market
• Announcing clear renewable energy generation targets
• Supporting local manufacturing capacity for electric vehicles and components

According to the NBI, clarity from SONA will directly influence investor sentiment and shape discussions at AGES, where international stakeholders are expected to explore green economy opportunities.

Balancing Energy Security and Decarbonisation

The NBI emphasised that the rapid expansion of renewable energy is essential to future growth. However, it cautioned that the transition must remain pragmatic and economically grounded. Maintaining energy reliability during the shift — including the continued short-term role of existing generation capacity — is critical to safeguarding economic stability.

“The transition is not about switching off the current system overnight. It is about building the new system fast enough while stabilising the one we have,” Soobramoney stated.

Water, Energy and Climate as Economic Risks

Framing water scarcity, electricity instability and climate impacts as systemic economic risks, the NBI warned that these interconnected challenges are increasing costs, weakening productivity and exacerbating inequality. It argued that environmental sustainability and economic growth are interdependent, not competing priorities.

The proposed “delivery compact” would focus on measurable targets in water security and energy reliability, supported by transparent data, clear accountability and genuine public–private co-implementation. The NBI pointed to collaborative reform initiatives such as Operation Vulindlela as evidence that coordinated partnerships can deliver tangible outcomes.

Service Delivery and Investor Confidence

The organisation concluded that effective service delivery is fundamental to rebuilding trust and strengthening economic resilience. It stressed that decisive leadership and coordinated reforms will be key to positioning South Africa as a competitive player in the global green economy.

As SONA approaches, the NBI’s message is clear: credible reform, regulatory certainty and coordinated execution are essential to unlock green investment and secure long-term economic stability.