Skills ecosystem mapping of MSMEs located within the Nkangala District Municipality

This paper examines the skills ecosystem for Micro, Small and Medium Enterprises (MSMEs) in Nkangala District Municipality (NDM), Mpumalanga—a coal-dependent region central to South Africa’s Just Energy Transition (JET). Using a systemic framework, it maps local networks, policy alignment, and coordination shaping MSME development in an inclusive, low-carbon economy.
Drawing on 254 MSME and 22 stakeholder interviews plus policy analysis, the study finds MSMEs—key to jobs and diversification—largely excluded from JET opportunities. Most are informal, survivalist, and unsupported: only 11% access structured assistance, while 68% have never engaged training providers such as Nkangala TVET College. Skills provision is often misaligned, and green-sector prospects (solar, recycling, sustainable agriculture) remain weak locally. National and provincial policies promote green industrialisation and skills, but municipal delivery suffers from fragmentation, limited capacity, and poor alignment with enterprise realities. Mediation mechanisms are ineffective, leaving MSMEs disconnected. An exception is Steve Tshwete Municipality, where initiatives like the Steel Incubation Programme show how local leadership and partnerships can integrate MSMEs into green value chains. The study concludes that unlocking MSMEs’ potential in South Africa’s JET requires ecosystem leadership, integrated skills planning, and grounded local interventions bridging top-down vision with grassroots needs.