Market Outlook: Transforming South African Universities – A Pathway to Energy Security and Climate Resilience

The Africa-Infrastructure Desk, operating under the NEPAD Business Foundation (NBF), is launching an innovative project to address South Africa’s climate change and energy security challenges. This project is funded by the United Kingdom (UK) Government through its International Climate Finance (ICF) portfolio under the UK Partnering for Accelerated Climate Transitions (UK PACT) programme. UK PACT responds directly to priorities identified by partner governments and provides grants for capacity-building projects in those priority areas, which are delivered by selected implementing partners. The UK PACT-supported initiative being launched by the NBF will implement tailored climate action plans across six South African universities.

Key Objectives and Approach:
Public universities in South Africa, serving 1.2 million students, are crucial for advancing climate change mitigation and fostering a green future. These institutions face challenges, particularly those historically disadvantaged or with a legacy of uneven resource distribution. This project aims to address these issues by developing investable and implementable climate action plans for
six selected universities. By leveraging industry-proven modelling tools and conducting comprehensive energy audits, the project will create tailored energy solutions and a decarbonisation roadmap to enhance each university’s energy efficiency and resilience.

In addition to technical solutions, the project will formulate robust business cases and identify appropriate funding mechanisms to support implementation. The “smart campus scoping” process which has been developed and rolled out by Siemens at other universities worldwide will be adapted to the South African context, drawing on global best practices to ensure the solutions are practical and aligned with local needs. This initiative will help universities reduce carbon emissions, improve operational efficiency, and secure necessary financial resources, contributing to broader national climate objectives and benefiting both students and surrounding communities.

Planned Project Structure and Partnerships:
• NBF serves as the lead implementing party driving the overall project coordination and stakeholder engagement;
• Siemens takes on the role of lead technical partner, conducting energy audits and proposing technical solutions;
• Letsema Consulting will develop the business cases and funding solutions for implementing the proposed climate action measures; and
• A Gender Equality and Social Inclusion (GESI) specialist will address the gender and social inclusivity component, ensuring that by design, previously marginalised stakeholders are included in all facets of the project from understanding of the problem statements to development of fully inclusive solutions.

Challenges and Opportunities:
While the project may face implementation challenges, it presents significant opportunities. By positioning these six South African universities as leaders in sustainable campus management and climate action, the project could catalyse broader societal changes. The focus on reliable renewable energy solutions is particularly timely given South Africa’s ongoing energy crisis. This project could demonstrate viable alternatives to traditional power sources, potentially influencing national energy policies and practices.

Peter Varndell, CEO of the NEPAD Business Foundation emphasised the transformative potential of this initiative: “This project represents a crucial step towards building a more sustainable and resilient future for South Africa. By empowering our universities to practically lead in climate action and energy innovation, we are not just addressing immediate challenges – we are cultivating the next generation of leaders who will drive our country’s green transition.”

Kudzanayi Bangure, Afri-ID Programme, added: “The collaborative nature of this project, bringing together diverse stakeholders from academia, industry, and government, exemplifies the kind of integrated approach needed to tackle complex challenges like climate change and energy security. We are excited to see how the innovations developed at these campuses can scale to
benefit broader communities within the surrounds of these universities.”

This project underscores the potential to transform South Africa’s higher education landscape while addressing critical energy and climate challenges. By creating a network of sustainable, resilient universities spanning multiple provinces, the project aims to generate practical solutions that could significantly contribute to South Africa’s energy transition and climate action goals. The success of this initiative across the participating universities could serve as a model for similar projects in other sectors, positioning South African higher education institutions as pioneers in sustainable development and climate resilience. As the project unfolds, its impact is likely to extend far beyond campus boundaries, contributing to a more sustainable and equitable future for South Africa.

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