Navigating the Just Transition: Reflections by GIZ
In a recent webinar convened by SAYTA, NEF and Proudly SA, one of the key topics was around unpacking the practical meaning of the Just Energy Transition and its implications for young entrepreneurs. Viaksha Mohabir from the German Development Cooperation (GIZ) outlined how South Africa’s shift toward a low-carbon economy is not only an environmental imperative but also an economic restructuring process that requires deliberate inclusion of youth, small enterprises, and local communities. The discussion highlighted five central themes critical to understanding and navigating this transition.
1. The Just Transition as an Inclusive Economic Shift 🍃
The Just Transition refers to South Africa’s structured move away from coal dependency toward cleaner energy sources in a manner that safeguards workers, communities and regional economies. For decades, coal has underpinned both electricity generation and employment in specific regions. The transition therefore cannot be abrupt or exclusionary. It must include retraining initiatives, economic diversification and the development of new industries capable of absorbing affected workers. The principle underpinning this approach is fairness: as legacy industries decline, alternative opportunities must be intentionally created. Youth entrepreneurship forms a key pillar in ensuring that new economic pathways are inclusive and sustainable.
2. Green Hydrogen and Strategic Mineral Advantage 💎
A major opportunity within the transition lies in green hydrogen development. Green hydrogen produced using renewable energy provides a clean alternative for sectors that cannot easily electrify, such as steel production, heavy transport, shipping and chemicals. South Africa possesses significant competitive advantages in this field, including world-class solar and wind resources as well as critical minerals such as platinum and manganese that are essential for hydrogen technologies and battery systems. However, long-term value will not be realized through the export of raw materials alone. Beneficiation, local processing, component manufacturing and services development are essential to capturing economic value domestically. This presents a strategic entry point for youth-owned enterprises.
3. Youth Participation Across the Energy Value Chain 🔋
The green economy extends far beyond technical engineering roles. Before energy projects commence, services such as environmental assessments, water-use planning, community consultations, mapping and logistics are required. During construction demand expands to include contractors, transport providers, catering services, equipment suppliers and various trades. Once operational, facilities require maintenance services, quality control, packaging, laboratory testing and training provision. These activities demonstrate that participation in green energy value chains is accessible to a broad range of skills and backgrounds. Youth enterprises that are compliant, reliable and strategically positioned can integrate into these supply chains without needing specialized technical qualifications.
4. Circular Economy and Emerging Enterprise Opportunities 📈
Alongside renewable energy expansion, the circular economy is gaining prominence. This approach shifts production models from “cradle to grave” toward “cradle to cradle,” ensuring materials are reused, recycled and responsibly managed throughout their lifecycle. The growth of battery storage systems and electric vehicles for example, creates urgent demand for battery recycling, scrap metal recovery and e-waste management solutions. South Africa currently faces gaps in formal recycling infrastructure, presenting significant opportunities for youth entrepreneurs to establish enterprises in logistics, sorting, safety compliance and small-scale processing. Strengthening these segments is critical to ensuring that the green transition remains environmentally and economically sustainable.
5. Localization, Financing and Institutional Support 🏦
Clean energy projects attract both domestic and international financing, often tied to conditions promoting local supplier inclusion, job creation and community development. A strong and resilient low-carbon economy cannot be built on imported services alone; it requires robust domestic supply chains. Youth-owned businesses that formalize operations, maintain compliance and proactively align with green sector demands will be best positioned to access emerging procurement and financing opportunities.
Conclusion
The Just Transition is already reshaping South Africa’s industrial and economic landscape. It is not a distant policy objective but a present and evolving reality influencing supply chains, financing structures and enterprise development. For young entrepreneurs, the transition presents a generational opportunity to participate in building a low-carbon, inclusive economy. Ensuring meaningful youth participation across green energy value chains will be essential to achieving a transition that is not only environmentally responsible, but also socially and economically just.
For the full video, click on the link below.
Until next time!