Green Economy Journal Issue 59

MANUFACTURING
Making a
MEANINGFUL IMPACT
With 120 years of experience in energy, ACTOM has continually evolved its offerings to meet
Africa’s energy needs. Green Economy Journal caught up with Mervyn Naidoo, Group CEO at
ACTOM and Chairman of the Manufacturing Circle.
ACTOM celebrates its 120th anniversary this year. Please provide
an overview of the company.
ACTOM is the largest manufacturer, repairer and distributor of
electro-mechanical equipment in the Sub-Saharan region, serving
the energy, general industry and mining sectors. Our primary focus
is supplying, repairing, and maintaining an extensive range of
electro-mechanical equipment in Southern Africa.
Our journey began when British General Electric entered the South
African market 120 years ago, laying the foundation for what would
become ACTOM. Throughout the years, our ownership has evolved,
and we were previously known as ALSTOM when GCE ALSTOM entered
the country. However, around 2008, as GCE ALSTOM sought to
leave South Africa, we transformed into a private equity firm
with the support of investors such as the Old Mutual Trust. This
transition allowed us to continue our commitment to innovation
in the field of electro-mechanical equipment.
Please outline the energy sectors that ACTOM caters to.
We manufacture a wide range of equipment, including boilers
and motors used for power generation and we take pride in being
one of the largest manufacturers of high-voltage equipment,
particularly for the transmission network. In the distribution sector,
we are actively involved in manufacturing and providing repair
services for transformers. In the renewable energy domain, we focus
on supplying the balance of plant equipment that connects to
the grid. This includes a comprehensive range of solutions, from
switchgear to protection and control schemes, as well as distribution
transformers and high-voltage isolators and disconnectors required
for transmission network connection.
ACTOM believes that African manufacturers can play a role in
addressing the energy crisis. How so?
Our confidence in this belief stems from our 120-year presence and
operations in Southern Africa, where we have developed considerable
capacity and intellectual property. We have observed that a significant
portion of the equipment servicing the energy market in Africa comes
from external sources, like India and China.
What sets ACTOM apart is our comprehensive business scope,
which includes a dedicated repairs and services division that
extends support across the continent. With this setup, we are
well-positioned to contribute to the development of African
manufacturers, empowering them to become key players in addressing
regional energy challenges. Through fostering a strong network of
African manufacturers, we see immense potential for collectively
tackling the energy crisis.
How, in your view, will the African Continental Free Trade Area
(AfCFTA) accelerate the development of Africa’s energy resources?
AfCFTA will create an environment of increased accessibility
to energy equipment within the African continent, fostering
better energy infrastructure development. Manufacturers will
have greater opportunities to grow their businesses, allowing them
34
to supply energy products and solutions to a broader range of
African countries.
At present, various import duties and economic obstacles hinder
the establishment of significant economies of scale in manufacturing.
However, with AfCFTA in place, these barriers will be reduced, promoting
a competitive energy sector across Africa. By harnessing the potential
of AfCFTA, Africa can witness accelerated growth in its energy resources
and improve energy access throughout the continent.
Please talk to us about ACTOM’s involvement in the creation
of industrial hubs in Africa.
ACTOM’s involvement is exemplified by our recent acquisition of
a manufacturing facility in Nairobi. This strategic move enables us
to better serve the East African region’s economic bloc while
building economies of scale. By operating locally, we aim to support
the regional economy and fully participate in the African free trade
economy, which fosters long-term partnerships and contributes to
sustainable development in the region.
With a manufacturing base in Nairobi, ACTOM can establish a strong
foothold in this interconnected market. This approach aligns with
our commitment to being an integral part of local economies,
promoting collaboration and mutual growth opportunities.
ACTOM worked on REIPPPP Bid Windows 1 to 4.5 and 5. How can
renewable energy projects reindustrialise South Africa?
The adoption of renewable energy sources by private companies,
particularly in the mining sector, is gaining momentum, leading
to enhanced productivity and a surge in economic activity. As these
companies invest in renewable energy projects, the country’s energy
supply becomes more stable and self-reliant, ultimately bolstering
economic growth.
South Africa’s energy landscape is undergoing a transformative
shift, positioning the nation as a key player in the sector. By embracing
renewable energy, South Africa is poised to reindustrialise its
economy, promoting long-term prosperity and resilience in the face
of energy challenges.
ACTOM is excited about the multitude of opportunities that arise
amidst the current challenges faced by our continent. Our country’s
energy crisis and Africa’s need for energy solutions present a ripe
environment for companies like ourselves to actively participate and
make a meaningful impact.
Mervyn Naidoo,
Group CEO, ACTOM.
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