Tiger Brands aims to reduce production food waste by 50% by 2030.
Image: Tiger Brands
Tiger Brands has signed a long-term renewable electricity wheeling agreement with Apollo Africa as the food producer moves to cut carbon emissions across its manufacturing operations.
The agreement, expected to start in 2028, will initially supply Tiger Brands manufacturing sites in Gauteng with renewable electricity transmitted through the national grid.
According to Climate Group RE100, 100% of its South African members, which includes Shoprite and Investec, are committed to using 100% renewable electricity.
Tiger Brands’ deal forms part of the company’s broader environmental strategy aimed at reducing scope 1 and scope 2 greenhouse gas emissions.
Also known as power wheeling, the arrangement allows electricity generated from renewable sources such as solar or wind farms to be transmitted across the national grid to customers located elsewhere in the country.
Under the structure, Eskom electricity supplied through the grid is effectively offset against renewable electricity procured from Apollo Africa through a power purchase agreement.
Statistics South Africa’s latest data shows that coal accounted for 83% of local electricity generation in 2024, although renewable energy sources have gradually increased their share over the past decade. Coal’s contribution to electricity generation has declined from 90% in 2016 to 83% in 2024.
Renewable energy, including wind, solar and hydroelectric power, accounted for 9% of electricity generation in 2024, up from just 2% in 2016.
According to Praveen Balgobind, Tiger Brands chief manufacturing officer, the agreement would allow the company to access renewable electricity without being restricted by the physical location of generation facilities.
“The wheeling agreement will enable Tiger Brands to procure renewable energy generated off-site and transmit it across the national grid to its manufacturing facilities in Gauteng,” Balgobind said.
Tiger Brands said sites supplied through the Ekurhuleni Metropolitan Municipality network are expected to receive about 60% of their electricity supply through wheeling arrangements by 2028.
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
“Importantly, our business grows, cost efficiency is maximised, all while reducing our carbon footprint,” Balgobind said.
The company said the agreement forms part of its 2030 environmental stewardship targets, which include 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.
Tiger Brands also aims to reduce production food waste by 50%, make 80% of plastic packaging recyclable or compostable and increase recycled content in PET packaging to 25%.
InvestSA said on its website that South Africa’s waste economy contributes R24.3 billion (1%) to the country’s GDP and provides about 36,000 formal and 80,000 informal jobs. It added that it is projected that water demand will outstrip supply by 17% by 2030.
Nico de Bruyn, chief executive of Apollo Africa, said wheeling had become an increasingly important mechanism for large electricity users seeking cleaner energy.
“Wheeling is one of the most effective tools available to South Africa's large energy users right now, and Tiger Brands is deploying it exactly as it should be, strategically, at scale, and anchored to a clear decarbonisation roadmap,” de Bruyn said.
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