South Africa’s next Nationally Determined Contribution: An opportunity to boost industrial competitiveness and attract investment
National Business Initiative, We Mean Business Coalition
Despite geopolitical turbulence, 2025 remains a pivotal year for climate action and one that will set the pace and direction for the next decade of the low-carbon transition. The next round of Nationally Determined Contributions (NDCs), due ahead of COP30, are critical to determining not only whether the world can keep the 1.5°C goal within reach, but also how economies compete in the fast-growing global markets for clean energy, technology, and nature-based solutions. By prioritizing resilience and access to clean and reliable energy in its NDC, South Africa can grow a resilient economy and create prosperity for all.
South Africa’s next NDC will carry significance far beyond its borders. As Africa’s largest economy with strong trade, finance, and supply chain links worldwide, its climate pathway will shape investor confidence, regional development, and export competitiveness. A credible, ambitious, and investible NDC can give businesses the long-term clarity they need to deploy capital, scale clean technologies, and strengthen resilience in the face of climate impacts.
Recent polling of over 100 South African business executives makes this clear. The vast majority (95%) see renewable electricity as vital for sustainable jobs and growth, 86% support phasing out coal by 2035, and 84% say they would consider relocating operations or supply chains abroad if South Africa does not transition away from fossil fuels for electricity generation.
This briefing is the latest in a series of country-specific notes the We Mean Business Coalition is developing in collaboration with in-country partners. Each draws on local business insights to set out practical recommendations for NDCs that are both ambitious and implementable. These briefings aim to support a shared global objective: aligning policy ambition with the scale of private-sector capabilities already in motion to deliver a safer, more prosperous, and competitive future. The National Business Initiative is playing a critical role in this process in South Africa – facilitating dialogue, championing ambition, and not shying away from the difficult discussions that are needed to shape a stronger and more sustainable business environment in South Africa.