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Investec has received a 20-year energy trading licence from the National Energy Regulator of South Africa (NERSA), marking a significant step in the country’s shift toward a more liberalised energy sector. This licence allows the financial services firm to develop custom energy solutions and independently source power for its operations.
The approval came after a public consultation in August 2025, following Investec’s initial application in May. CEO Fani Titi hailed the move as a key milestone in improving access to cleaner, more reliable energy and supporting national efforts to diversify supply and improve energy security.
Mpho Modise, Investec’s head of renewable energy trading, highlighted the competitive benefits for clients through innovative, cost-efficient solutions. He noted that Investec’s platform is geared to offer financing, hedging, and offtake options that could appeal to emerging energy producers in South Africa and beyond.
As its first project under the licence, Investec plans to purchase electricity from the 50MW Ilikwa Solar Photovoltaic project in the Free State. This facility is expected to begin operations in Q2 2026 and will supply power to Investec’s Sandton headquarters through Eskom’s grid.
However, the expansion of private energy trading in South Africa remains controversial. State-owned utility Eskom has challenged NERSA’s authority to issue such licences, warning that private competition could undercut its tariffs and undermine its ability to subsidise access for low-income users. Critics, including energy expert Chris Yelland, argue that Eskom’s resistance stems from its own inefficiencies, not from regulatory flaws.
Energy Minister Kgosientsho Ramokgopa has urged Eskom to drop its legal objections and engage with the regulatory process. In response, NERSA has accelerated the rollout of energy trading rules, shortening the implementation timeline to just three months.
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Investec’s licensing reflects a broader trend across African markets, where power sector reforms are increasingly focused on affordability, climate adaptation, and attracting private investment. While uniquely shaped by South Africa’s legal and political landscape, the move is part of a continental shift toward more open, resilient, and inclusive energy systems.
