Tiger Brands CEO, Tjaart Kruger with Apollo Africa CEO, Nico de Bruyn, with Praveen Balgobind, Chief Manufacturing Officer, Tiger Brands (far left) and Trevor Gore, Business Development Manager, Apollo Africa (far right)
Image: Supplied
Tiger Brands - the producer of branded foods, beverages - has signed a major renewable energy wheeling agreement with Apollo Africa in a move aimed at cutting carbon emissions, improving energy efficiency and strengthening the food producer’s long-term sustainability strategy.
The agreement, which is expected to commence in 2028, will initially supply renewable electricity to Tiger Brands’ manufacturing operations in Gauteng through the national power grid.
The deal represents one of the more significant private-sector renewable energy partnerships in South Africa’s consumer goods sector as companies increasingly seek alternatives to rising electricity costs and carbon-intensive energy sources.
It also reflects the rapid evolution of South Africa’s energy market, where private-sector participation in electricity generation and trading has accelerated following regulatory reforms and persistent power supply challenges.
The arrangement will use a “power wheeling” model, where renewable electricity generated from solar or wind projects is transmitted through Eskom’s grid infrastructure to end users located elsewhere in the country.
Under the structure, Eskom electrons are effectively exchanged for renewable energy supplied by Apollo Africa through a long-term Power Purchase Agreement (PPA).
Tiger Brands, which operates 34 manufacturing plants in South Africa, said the agreement would enable the company to source clean electricity without being restricted by the location of renewable generation assets, creating greater operational flexibility while supporting the group’s decarbonisation objectives.
According to Tiger Brands chief manufacturing officer, Praveen Balgobind, the deal forms part of the company’s broader environmental stewardship strategy.
He said sites supplied through the Ekurhuleni Municipality are expected to receive around 60% of their electricity requirements through wheeled renewable power by 2028.
“Importantly, our business grows, cost efficiency is maximised, all while reducing our carbon footprint. This is a clear example of how we are working across our value chain to bring the best value and affordable nutrition to consumers while reducing the impact of our operations on the environment,” Balgobind said.
The agreement comes as South African companies face mounting pressure to reduce greenhouse gas emissions while navigating rising electricity tariffs, grid instability and increasing investor scrutiny around environmental, social and governance (ESG) commitments.
Tiger Brands has set ambitious 2030 environmental targets, including reducing water and energy intensity by 30%, cutting carbon emissions by 30%, sourcing 31% of electrical energy from renewable sources and achieving zero waste to landfill across all sites.
The company also plans to reduce production food waste by 50%, ensure that 80% of plastic packaging is recyclable or compostable, and increase recycled content in PET packaging to 25%.
Nico de Bruyn, CEO of Apollo Africa, described wheeling as one of the most effective energy tools currently available to large industrial users in South Africa.
“Tiger Brands is deploying it exactly as it should be, strategically, at scale, and anchored to a clear decarbonisation roadmap,” De Bruyn said.
He added that Apollo Africa specialises in structuring renewable energy wheeling agreements that allow manufacturers to access cost-competitive clean energy without having to build generation facilities adjacent to operations.
“This is the beginning of a long partnership, and we intend to deliver on it,” he said.
For large energy-intensive manufacturers such as Tiger Brands, renewable energy wheeling offers a pathway to improved energy security, lower long-term electricity costs and reduced exposure to future carbon taxes and emissions regulations.
The deal further signals growing confidence in South Africa’s renewable energy infrastructure and the increasing role private energy partnerships are expected to play in supporting the country’s industrial competitiveness and climate commitments over the coming decade.
BUSINESS REPORT