The South African Generator and Transformer Industry report describes the current situation in the country, outlines developments in the industry and focuses on factors influencing the sector’s success. The report profiles 50 industry players including Allied Electronics Corporation Ltd t/a Altron which in November 2017 disposed of its 80% interest in the Powertech Transformers Group to a consortium comprising Power Matla (Pty) Ltd., Power Matla Transformers (Pty) Ltd. and SGB-SMIT GmbH. Also profiled is New Way Power which with 10% market share, was the second-largest local manufacturer of Gensets in 2015. During the course of 2017 the company’s share of the market has increased to an estimated 30%.
The South African Generator and Transformer Industry
Since 2015 the South African generator and transformer industry has suffered the effects of an economy weakened by reduced investment in energy and mining, declining manufacturing output and the impact of the drought on the agricultural sector. Above average winter temperatures and rising renewable energy production combined with Eskom’s stabilising of the grid, have resulted in an energy surplus that has negatively affected the growth of the generator industry. Growth in the transformer sector has also slowed because of reduced capital investment. Fraud and corruption remain prevalent and despite an increased focus on localisation, South Africa imported electrical transformers, static converters and inductors to the value of approximately R4.7bn in 2016.
Although markets slowed in 2017, prospects are considered positive on local and African growth in the traditional and renewable electricity sectors. Climate change and the green economy are expected to play vital roles in the adoption of diesel generators in Africa. The implementation of the Carbon Tax in 2018 will impact the generator market and stakeholders believe that manufacturers of reduced noise and emissions level generators are more likely to achieve end-user acceptance.