The South African Battery Manufacturers Association (SABMA) urges consulting engineers to proactively integrate locally manufactured battery energy storage systems (BESS) into project specifications, as South Africa enters a new regulatory era defined by local content designation, import duty increases, and tightened industrial policy.

The International Trade Administration Commission of South Africa (ITAC) determination under Notice 3864 of 2026 confirms that fully assembled lithium‑ion batteries will soon attract a higher import duty, with ITAC proposing a new tariff subheading and a 15% ad valorem duty on fully built‑up batteries. SABMA notes that this aligns with its long‑standing request to distinguish between cells (duty‑free) and batteries (dutiable).

A preliminary determination to increase the general rate of customs duty on fully assembled lithium‑ion batteries to the WTO bound rate of 15% ad valorem, by way of creation of a new 8‑digit tariff subheading.

This shift is significant for engineers because imported turnkey BESS solutions will become materially more expensive, while locally manufactured systems, already competitive on lifecycle performance, will gain a structural price advantage.

The Public Procurement Act (2024) reinstates compulsory local content designation. The Department of Trade, Industry and Competition (dtic) has already confirmed that renewable energy components are next in line for designation, including batteries: “Preparations are underway for the publication of designation notices… targeting sectors such as Energy Infrastructure and Renewable Energy.”

SABMA’s formal submission to ITAC further recommends that BESS be explicitly designated, noting: “It is recommended that the designation is specifically extended to include Battery Energy Storage Systems (BESS).”

Our members should therefore anticipate that public‑sector tenders will soon require minimum local content thresholds for BESS, similar to India’s model, where Battery Management Systems, Energy Management Systems, containers and packs carry 50% to 90% local content requirements.

SABMA members have already demonstrated compliance with IEC, UL and UN standards. This means local systems already satisfy the technical requirements CESA members specify for utility‑scale and commercial and industrial projects.

However, an article that was published in January 2026 in an Energize article, highlighted commissioning challenges, including grid‑code interpretation, measurement discrepancies, thermal performance, and configuration trade‑offs: “Mismatched frequency or voltage measurements complicate performance validation… underscoring the need for stronger calibration procedures.”

Local manufacturers are therefore uniquely positioned to resolve these issues quickly, as they provide on‑site engineering supply; maintain real‑time monitoring platform and adapt designs to South African thermal and cycling conditions. Projects don’t end at commercial operation date, only local support can service and augment the technology to last the expected 20‑plus years.

Why This Matters for our Members

1. Specification and Tendering
   With duties rising and local content becoming mandatory, consulting engineers will need to update their local content evaluation methods. They will also need to distinguish between cells, which are imported, and batteries, which are locally manufactured. In addition, they should avoid specifying turnkey foreign BESS solutions that may soon become non-compliant.
2. Compliance and Certification
   SABMA’s push for harmonised standards will simplify compliance, but it may also introduce new certification requirements, standardised testing protocols, and unified safety and performance benchmarks.
3. Lifecycle and O&M Assurance
   Local manufacturers provide fleet-wide degradation data, real-time monitoring, local spares and service teams, and warranty models based on South African operating conditions. This reduces long-term project risk for clients.

South Africa is entering a decisive phase in its renewable energy industrialisation strategy. With import duties rising, local content designation imminent, and strong local manufacturing capability already in place, consulting engineers will play a pivotal role in ensuring that project specifications align with national policy, cost‑effective procurement, and long‑term operational reliability.

SABMA has noted that they stand ready to support our members and the rest of the industry with technical data, standards alignment, and project‑specific guidance as South Africa builds a resilient, locally anchored energy storage sector.

SABMA contact details are available via the association’s social media channels, their website: https://sabma.co.za or email info@sabma.co.za