JOHANNESBERG, Aug 27 – Blu Label is moving into electricity after separating from Cell C, as the South African digital distribution group looks to expand its business beyond telecoms and payments.
The company is positioning its energy unit, Blu Energy, across the electricity value chain, including power trading, wheeling, renewable generation, battery storage and municipal billing.
In February 2026, Blu Energy received a multi-year electricity trading licence from the National Energy Regulator of South Africa (NERSA). The company says it has identified about 400 megawatts (MW) of potential capacity and plans to deploy up to 180 MW in the near term.
Blu Label plans to use its payments, vending and municipal infrastructure to connect power producers, municipalities and large electricity users.
“We have got trading, we’ve got wheeling, and then the bigger concentration for us is how do we start deploying green energy on this side of the municipal grid,” Blu Label co-CEO Mark Levy told TechCabal.
The company also plans to participate in nodal production, battery storage and supplying electricity at different times of the day. It has already contracted 28 MW of rooftop solar capacity, while its wider pipeline includes ground-mounted projects, with some expected to begin deployment in the third or fourth quarter of 2026.
Blu Label is also targeting municipal revenue collection. The company says it has deployed more than 50,000 meters, with another 10,000 to 15,000 in its pipeline. Levy described municipal revenue assurance as a “sleeping giant”, estimating that about R30 billion ($1.9 billion) in revenue is not being billed or collected correctly.
The move comes after Blu Label’s costly attempt to turn around Cell C. The company remains the mobile operator’s largest shareholder, with a 49.53% stake following Cell C’s listing and restructuring.
Blu Label recorded a R5.19 billion ($324.4 million) net loss related to Cell C, including a R6 billion ($375 million) loss from disposing of part of its investment. Reported EBITDA fell to a R4.77 billion ($298.2 million) loss from a R1.60 billion ($100 million) profit a year earlier.
Excluding Cell C and restructuring effects, however, Blu Label reported normalised revenue of R9.4 billion ($589.6 million), EBITDA of R923 million ($57.7 million) and core headline earnings of R681 million ($42.6 million).
Blu Label received R2.7 billion ($168.8 million) from selling down a 30% Cell C stake, while cash and cash equivalents rose by R1.8 billion ($112.5 million).
The group is now looking to use its technology, data and existing infrastructure to create new revenue streams, with co-CEO Brett Levy also identifying data monetisation as a major opportunity.
