South Africa’s Green Transition: Preparing the Workforce for a Sustainable Future

South Africa's green transition presents both opportunities and challenges, requiring urgent workforce upskilling to meet emerging job demands. The World Bank highlights the need for coordinated leadership, industry collaboration, and targeted training to ensure an inclusive and competitive shift to a sustainable economy.

South Africa is undergoing a profound economic transformation driven by the global shift towards a green economy. A recent World Bank report, developed with input from the REAL Institute at Wits University, the South African National Energy Association (SANEA), and the Centre for Renewable and Sustainable Energy (CRSE), highlights the urgent need to equip the country’s workforce with the skills necessary for this transition. As industries evolve to meet new environmental standards, workers must be ready to adapt to the changing nature of jobs. Some industries, particularly those reliant on fossil fuels, will see job losses, while others, like renewable energy, will create new employment opportunities. However, the success of this transition depends on South Africa’s ability to train its workforce to meet the growing demand for green skills.

The Global Shift Towards Green Economies

Around the world, countries are striving for net-zero emissions, restructuring their economies to prioritize sustainability. For South Africa, this shift is both an opportunity and a challenge. As global markets tighten environmental regulations, businesses that fail to comply risk losing their competitive edge. The European Union’s Carbon Border Adjustment Mechanism (CBAM), for example, requires exporters to prove that their goods meet stringent environmental standards. South Africa’s automotive industry, which relies heavily on exports to Europe, will need to adapt quickly.

The geopolitical competition for critical minerals is also reshaping economic dynamics. South Africa possesses vast reserves of platinum and other essential minerals needed for green technologies. If leveraged correctly, these resources could drive economic growth. However, if the country fails to develop the necessary expertise in refining and processing these materials, it risks falling behind in the global race toward sustainability.

Balancing Ambition and Reality in South Africa’s Transition

The South African government has set ambitious targets for reducing carbon emissions under its Just Energy Transition (JET) plan. The National Development Plan and the Integrated Resource Plan lay out a roadmap for transitioning to a low-carbon economy. Investments in renewable energy projects, such as Toyota’s R2.6 billion investment in locally produced hybrid vehicles and large-scale wind and solar projects in COEGA’s Special Economic Zone, demonstrate the country’s commitment to a greener future.

However, progress has been slow. More than 80% of the country’s electricity is still generated from coal, and planned shutdowns of coal plants have faced significant delays due to political and economic resistance. The government’s JET Investment Plan remains underfunded, and South Africa is already falling behind its 2030 emissions reduction targets. Factors such as governance inefficiencies, opposition from coal-dependent communities, and an ongoing electricity crisis continue to hinder progress.

The Skills Gap in South Africa’s Green Economy

The transition to a green economy will have far-reaching effects on employment. While an estimated 1.6 million new jobs could be created by 2050, approximately 600,000 jobs—primarily in the coal and petroleum sectors—will be lost. Unfortunately, these workers may not have the skills required to transition into new green jobs. Many of the emerging jobs in renewable energy, electric vehicle manufacturing, and sustainable agriculture require expertise in science, technology, engineering, and mathematics (STEM) fields.

However, South Africa’s education and training system is struggling to keep pace with these changes. While universities have some flexibility to adapt curricula, the technical and vocational education and training (TVET) sector faces bureaucratic hurdles that delay the introduction of green skills training. Additionally, Sector Skills Plans (SSPs), which should provide guidance on workforce planning, fail to offer comprehensive insights into the country’s green job market. The lack of data and coordination between training institutions and industry further exacerbates the problem.

Women remain underrepresented in green jobs, primarily due to their lower participation in STEM fields. Without targeted intervention, the green transition could widen gender disparities in employment. A more inclusive workforce strategy is needed to ensure that women, as well as unemployed youth and other vulnerable groups, are not left behind.

A Roadmap for Workforce Readiness

To ensure a smooth transition, South Africa must adopt a multi-pronged approach to workforce development. First, better data collection and dissemination are needed to understand labor market demands. SSPs should integrate green skills assessments, and new research should be conducted across industries to identify emerging job trends.

Second, leadership and coordination must be strengthened. A clear national strategy is required to align the efforts of government agencies, employers, and training institutions. Establishing a JET Skills Advisory Forum could facilitate communication and collaboration between stakeholders.

Third, targeted training programs should be developed for industries with strong green momentum. Renewable energy, electric vehicles, and sustainable agriculture are key growth areas where skills shortages could hinder progress. Training institutions should prioritize developing programs that cater to these industries, ensuring that workers are equipped with the necessary expertise.

Fourth, stronger partnerships between industry and training providers are essential. Employers should play a direct role in shaping curricula and offering hands-on training opportunities. More collaboration is needed, particularly at the TVET level, where outdated programs fail to meet modern industry needs.

Finally, vulnerable workers must be supported. South Africa’s Social Relief of Distress program could be expanded to help at-risk workers reskill and transition into new roles. More effort is needed to encourage women and unemployed youth to pursue careers in the green economy. Addressing these challenges will not only enhance South Africa’s competitiveness but also ensure a just and inclusive transition.

The World Bank is committed to supporting South Africa’s workforce development efforts. It is currently working on skills assessments for key industries and providing technical assistance for economic transformation in coal-dependent regions such as Mpumalanga. Integrating workforce preparedness into broader green economy initiatives is critical for ensuring long-term success.

South Africa’s green transition is an opportunity to build a more sustainable and competitive economy. However, without immediate action to bridge the skills gap, the country risks exacerbating unemployment and economic inequality. A proactive approach, driven by strategic planning and industry collaboration, will be essential in ensuring that South Africa’s workforce is not just prepared for the green economy but is a driving force behind it.