While South Africa has moved beyond the prolonged periods of loadshedding that dominated business planning in recent years, energy-related risks remain a major concern for procurement and supply chain leaders.
Recent electricity tariff increases, combined with fuel price volatility and ageing infrastructure, are creating new challenges for businesses across multiple sectors.
According to Paul Vos, Regional Managing Director of the Chartered Institute of Procurement & Supply (CIPS) Southern Africa, the country’s energy risks have shifted rather than disappeared.
Energy Risk Has Evolved
In March 2026, the National Energy Regulator of South Africa (NERSA) approved electricity tariff increases of 8.76% for Eskom direct customers and 9.01% for municipal customers for the 2026/27 financial year.
Vos says businesses are increasingly dealing with infrastructure failures, maintenance backlogs and localised network disruptions.
“Energy uncertainty has evolved,” says Vos. “Organisations are increasingly contending with infrastructure failures, maintenance backlogs and localised network disruptions, particularly at municipal level. These issues are often less predictable than loadshedding and can have a significant impact on operational continuity.”
Cost Pressures Spread Through Supply Chains
The impact of rising energy costs is being felt throughout supplier networks.
Higher electricity tariffs, coupled with increasing transport and logistics expenses, are creating additional pressure on suppliers and contributing to pricing volatility across industries.
“This creates a double cost burden,” Vos explains. “Suppliers are facing higher energy costs and higher logistics costs simultaneously, resulting in more requests for contract adjustments, budget pressures and cost increases throughout the value chain.”
Energy-Intensive Industries Most Exposed
Several sectors remain particularly vulnerable to rising energy costs and supply disruptions.
These include:
- Manufacturing
- Food processing
- Cold-chain logistics
- Mining
- Chemicals
- Water infrastructure
These industries play a critical role in supporting South Africa’s broader supply chains and economic activity.
While many organisations have introduced efficiency measures to help offset rising costs, there are limits to how much can be absorbed internally. Businesses and consumers are therefore likely to continue seeing gradual price increases across a range of products and services.
Procurement Strategies Shift Towards Resilience
To manage ongoing uncertainty, procurement teams are increasingly prioritising resilience-focused sourcing strategies.
Supplier diversification, regional sourcing, nearshoring, scenario planning and enhanced cost modelling are becoming key components of risk management.
“Procurement is increasingly being recognised as a resilience enabler,” says Vos. “Energy risk is now a key consideration in supplier selection and sourcing decisions alongside quality, delivery performance and price.”
Renewables Gain Momentum
Businesses are also looking beyond the traditional grid to improve energy security and cost predictability.
Power purchase agreements (PPAs), embedded solar generation, battery storage and hybrid energy solutions are gaining traction as organisations seek greater control over their energy supply.
As South Africa’s energy landscape continues to evolve, companies that integrate energy risk into procurement planning, supplier management and long-term business strategy are likely to be better positioned to maintain competitiveness and supply chain resilience.
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