Sbu Khumalo, founder of FlexDeployHydro, has been named the winner of the uMngeni-uThukela Water GIBS Route-to-Market Challenge 2025. The business aims to build small, hydro-power plants to provide electricity to rural areas.
In South Africa, 1.6 million households are unelectrified. Inconsistent supply means that homes, clinics, schools, and businesses are too often left in the dark, especially in rural areas. “Stable power is the lifeline of any growing country,” says Khumalo. “The world is also moving towards cleaner energy.”
FlexDeployHydro’s solution is an off-grid hydroelectric plant, scaled to supply a single neighbourhood. The pilot project will be a 50 kW plant in KwaZulu-Natal which could electrify 50 to 100 households. The business model is innovative but the technology behind it is not untested. Billionaire Johann Rupert, for example, operates a private 2.3MW hydro-power plant on his wine farm.
Khumalo’s concept harnesses the energy of water flowing through pre-existing systems, like water treatment plants, to create electricity. This method of generation is completely renewable and requires relatively minimal infrastructure. The power generated feeds into a small independent grid, allowing the business to avoid costly and complicated integrations with the national grid. This localised approach makes FlexDeployHydro scalable and affordable.
“It’s a great initiative. It’s bold,” says Nhlanhla Zama of uMngeni-uThukela Water (UUW), the competition’s corporate partner. “We are eager to ‘go green’ at UUW so I will fight for him to gain access to the dams where we have infrastructure.”
Khumalo, who supports himself by driving a minibus taxi, has spent years exploring business ideas, from offside detection technology for soccer to an early music-streaming platform.
“I applied for the challenge because, as entrepreneurs, we struggle to gain access to the right people, the relevant decision-makers,” says Khumalo. “But the strategic advice has been invaluable.”
The Route-to-Market Challenge identifies high-potential, early-stage businesses and empowers them to bring their ideas to market. Finalists receive business training from The Gordon Institute of Business Science (GIBS) and entrepreneurship specialists Raizcorp.
The top three candidates also have the opportunity to present and discuss their businesses with decision-makers from a leading organisation in their industry. As the winner in the water category, Khumalo is invited to explore potential partnership opportunities with UUW, the largest bulk potable water supplier in KwaZulu Natal.
“It’s a competition,” says Allon Raiz, founder of Raizcorp, “but it doesn’t feel like one because it’s all about access. Access to the GIBS professors, to people with experience, to someone powerful who can open a door for you. And we’re all here to help.”
“The passion within UUW for the development of small businesses is unmatched,” says Zama. “We want to be a center of excellence for empowerment. So we’ve already signed on for RTM 2026.”
