But another constraint is emerging within the supply chain: access to working capital.
According to South African fintech ProfitShare Partners (PSP), many small and medium-sized enterprises (SMEs) in the renewable energy ecosystem are technically capable and commercially ready, yet financially constrained during project execution.
“The energy transition is capital-intensive at every layer,” says Andrew Maren, founder and CEO of ProfitShare Partners. “Large developers secure structured funding. Smaller suppliers are expected to bear the upfront costs of materials, labour, logistics, and compliance, often on 60- to 120-day payment terms. That is where momentum can stall.”
Renewable projects, whether in solar, battery storage, civil works, or specialist installations, tend to be input-heavy and milestone-driven. Suppliers frequently need to import panels, inverters or components, secure inventory, and mobilise teams before a single rand is paid. In a sector defined by speed and policy urgency, that lag creates risk.
“It is not a question of competence, but of cash velocity. An SME can have a valid purchase order from a credible buyer and still struggle to execute if capital does not move in sync with delivery.”
PSP, which has deployed more than R1.2bn to South African SMEs since 2017 through its transaction-linked funding model, argues that transaction-level finance is becoming increasingly relevant in renewable supply chains. Rather than relying on unsecured lending or broad enterprise development programmes, purchase-order-linked funding aligns capital directly to a verified contract.
“You are not betting on the business in abstract terms. You are enabling the delivery of a specific, approved scope of work. That materially reduces execution risk for both the supplier and the buyer.”
This becomes particularly important in time-critical scopes such as fabrication, earthmoving, logistics, energy services, and contractors tied to shutdowns or commissioning milestones. Delays in these segments can have knock-on effects across entire projects.
At the same time, the broader policy environment continues to encourage private participation and investment in renewable infrastructure. As capital flows into generation capacity, Maren believes equal attention must be paid to the SMEs responsible for delivery.
“If we want localisation to be durable and supply chains to be resilient, we cannot focus only on who wins the contract. We must consider how the contract will be financed and executed. When money moves in step with megawatts, delivery becomes predictable. When it lags, even strong suppliers are placed under unnecessary strain.”
As South Africa accelerates its energy transition, the pace of delivery may depend as much on working capital discipline as on installed megawatts.
