This case study explores the Localisation Support Fund’s partnership with Carbo Ferrum, a 51% black-owned steel manufacturer in the Eastern Cape, to boost South Africa’s transmission tower capacity. Targeted technical support improved efficiency, safety, and quality systems, positioning the company to potentially double production within a year. Anchored by demand from Eskom’s Transmission Development Plan, the intervention shows how structured localisation can revitalise manufacturing and support the energy transition.
Context and Opportunity
South Africa’s energy crisis and Eskom’s TDP presented a strategic opportunity to localise transmission infrastructure manufacturing.
Carbo Ferrum was acquired by Siyavuya Power Projects (SPP) in 2018 to produce monopoles and later lattice towers for transmission and distribution networks.
The LSF, established in 2021, aims to strengthen South Africa’s industrial base by improving infrastructure-related manufacturing and enhancing the competitiveness of local producers.
LSF Action
Guided by a study into the transmission and distribution value chain, the LSF identified steel tower manufacturing as a key localisation opportunity.
A comparative analysis showed imported towers were cheaper, but consistent, large-scale local demand—such as from the TDP—could make domestic production cost-competitive.
Recognising Carbo Ferrum’s role in achieving national energy goals, the LSF provided technical support to improve efficiencies, particularly in monopole production.
Results
The support delivered immediate and measurable improvements:
Efficiency gains in material handling, directly improving capacity utilisation.
A robust blueprint for scaling up operations, positioning the company to potentially double production within the next year.
Operational improvements including streamlined workflows, reduced bottlenecks, stronger quality and traceability systems, improved safety, and better housekeeping.
Financial impact: millions in savings from asset recovery and waste reduction.
Broader Lessons
The Carbo Ferrum experience offers a replicable model for reindustrialising South Africa’s manufacturing base:
Combining lean production, technical upskilling, and strong management to drive sustainable change.
Highlighting the importance of anchor demand from both public and private sectors—especially Eskom and the NTCSA—to build economies of scale.
Reinforcing the LSF’s role as a catalyst for efficiency improvements and identifying localisation-ready value chains.
Demonstrating that localisation succeeds when supported by structured technical assistance, consistent demand, and close collaboration between government, industry, and public-interest organisations.
This case study shows how localisation can create globally competitive industries while directly contributing to South Africa’s energy transition and economic resilience.