2025 has been yet another year of turbulence. When reflecting on global macro-economic developments, the world finds itself in a profound era of structural transition. The geography of international trade is being redefined as nations increasingly implement protectionist policies through trade tariffs and other policy reforms. We are migrating to a world of multipolar power.
Despite global turbulence, Africa’s growth narrative remains intact, with GDP growth expected to exceed 4% in the following year. The continent, which is projected to have the world’s largest economically active population by 2050, has a medium-term trajectory that remains the strongest globally.
A relatively stagnant economy has plagued South Africa for the past 10 years. Substantial progress has, however, been made with various structural reforms, with the key ones being:
- Power generation – major reforms have enabled private sector participation in energy generation. IRP 2025 has been released, and it envisages the need for approximately 105 GW of power generation capacity by 2039, entailing a spend of roughly R2.2 trillion. This spans a mix of various renewable and alternative energy sources.
- The National Transmission Company of South Africa (NTCSA) is now fully operational as an independent transmission system operator, enabling the rollout of the Transmission Development Plan.
- Ports and Rail – A significant reform of our ports and rail system has opened the rail network to competition and invited private sector participation in port terminals.
These structural reforms, amongst others, form the stimulus for resuscitating economic growth and reindustrialisation in South Africa. ACTOM is ideally positioned across these key sectors to add economic value and social impact to South Africa.
We continue our efforts to grow ACTOM’s capability and capacity on the African continent, positioning ourselves as an Original Equipment Manufacturer (OEM) of choice and actively embracing the economies where we participate by industrialising in the geographies where we have a presence. We have, over the last quarter, completed the acquisition of the SGB-Smit Power Matla business, placing ACTOM as the largest transformer manufacturer on the African continent, with world-class facilities.
Our health and safety performance is currently at an LTIFR of 0.43. I want to commend everybody for maintaining a safe work environment.
Our financial performance for the year has been exceptional despite various challenges in our sector, and we have made significant progress in strengthening our balance sheet through well-managed working capital and debt management.
Our ACTOM Management and Leadership Academy, which started last year, has graduated its first Group. This is a key milestone for business sustainability, as we are actively creating a leadership pool of talent to take the organisation into the future. Congratulations to all our graduates—we are grateful for your commitment to this most strategic initiative.
We continue with our Impact initiatives, with significant progress made on our Enterprise and Socio-economic Development initiatives, which are now much more inclusive of our less-abled community. I am also so proud that our first cohort from our mathematics and science Tutoring program at Katlehong Technical School has qualified as artisans and are being absorbed into our workplace. This journey, which started years ago with a group of Grade 8s, is now beginning to shape the future workforce for ACTOM. ACTOM is actively ensuring that our country’s skills development programs are aligned with future industry requirements.
Our efforts in wellness have stepped up, with our iconic ACTOM annual marathon in the Vaal achieving over 2000 participants this year, of whom over half were ACTOM employees. We continue with these initiatives to foster the well-being of our staff and community.
Our Advocacy work with SEIFSA remains active. This year, we have engaged with key stakeholders, including the State President, the Minister of Electricity, and the Minister of the DTIC. Collaboration among all stakeholders will be key to reindustrialising, rebuilding our economy, and turning around our social woes of unemployment and inequality.
I want to thank and commend all in the ACTOM family for their efforts over the past year. We have achieved a successful year, despite headwinds and challenges. As the year draws to a close, I wish you all a merry Christmas and a blessed New Year. May this festive season bring joy, peace, and prosperity to you and your loved ones.
Mervyn Naidoo