Green Economy Journal Issue 54

Strive for Net Zero while saving money at the same time!

Rooftop, solar car-ports, ground mounted solar, and agri-voltaics represent the best value energy available to the energy customer in South Africa. Blue Sky Energy are experts in the design, procurement and construction of such plants.

Battery energy storage installations provide access to solar energy daily during peak hours when the sun is not shining and enable users to bridge their primary energy needs through grid interruptions. While the levelised cost of hybrid solar + battery storage installations is significantly greater than solar PV only, appropriately sized solutions can be commercially feasible.

Would you like to know if your property or business can achieve energy security at the same cost or less than what you are paying currently?

Agri-Voltaics and Solar Car Ports

Blue Sky Energy works with leading light steel frame construction suppliers to offer a range of innovative solutions such as agrivoltaics and solar car-ports.

Have you considered putting your spare space to work? Whether you have low value land or large parking spaces, bring them to life through solar PV installations that create energy and high value spaces such as shade for parking or tunnels for agriculture.

HELLO

HELLOFUTURE

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Economy GREEN journal

EDITOR: Alexis Knipe alexis@greeneconomy.media

CO-PUBLISHERS: Gordon Brown gordon@greeneconomy.media

Alexis Knipe alexis@greeneconomy.media

Danielle Solomons danielle@greeneconomy.media

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PUBLICATION DATE: September 2022

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PUBLISHER’S NOTE

Dear Reader,

The slow pace of the roll-out of infrastructure in the energy sector has played a key role in precipitating the heightened crisis.

Eskom has taken two years to enter contracts for the supply of 833MWh of battery energy storage, eventually signed on 29 July this year, and the Department of Mineral Resources and Energy is due to publish the long-awaited 513MW Battery Energy Storage RFP by 30 September 2022.

This week, Eskom is asking NERSA to approve R16.9-billion for diesel to fire the Open Cycle Gas Turbine (OCGP) plants for the upcoming financial year. How much of this wasteful spending year-on-year could have been avoided had Eskom been able to acquire these battery projects on schedule, along with untold generation capacity of wind and solar, part of which would also have offset the diesel spending?

One must commend the efforts of the presidency in trying to speed things up, while sadly now being hamstrung by local strikes and international supply chain challenges.

Nevertheless, and as the country limps from one infrastructure crisis to the next, consumers and businesses are moving at pace to become more self-reliant for energy, water and waste services, catching up, as it were, to security and education as services one simply can no longer expect government to deliver.

This trend to self-sufficiency, as it happens, is perfectly in line with a move to more sustainable living and operating, and so therein lies the silver lining, that by the time we are through this energy crisis, we will have undergone a paradigm shift the likes of which could not possibility have been imagined in South Africa.

Strength to you,

EDITOR’S NOTE

In the move towards green economies, it’s become apparent that there’s a need to not only introduce new emission reduction technologies and green energy sources, but also to adopt new practices that allow our existing infrastructure to be repurposed, and which bolster other green energy generation models.

Considering that South Africa has one of the highest renewable energy generation potentials in the world and with existing infrastructure in place, the opportunities exist. Given that South Africa is the world’s largest producer of platinum, there is an opportunity for it to be a leading manufacturer of underlying technology.

Establishing widescale pipeline distribution is key to enabling a high-penetration hydrogen economy. Again, this presents an exciting opportunity in terms of infrastructure development. Could hydrogen be the future of our economic success? (Page 14).

We aim to transition to a green economy, combining economic development, social progress and environmental preservation. Both the economy and society remain, however, highly unsustainable. Targeting the transition to an inclusive green economy therefore signifies a massive shift, commanding a new model of development (page 30).

There are global initiatives to move towards renewable energy sources and public consciousness of sustainability is increasing. As such, there is opportunity for new PV technologies to enter the mix (page 36 and 40). To combat the impact of plastic on environment, the industry is transitioning towards a circular economy (page 44). Increasing agriculture to feed the growing world population is a key sustainability challenge too (page 50).

Enjoy this issue!

Alexis Knipe Editor

Publisher

THAT’S SUSTAINABILITY, FIRST.

As the first to introduce a CO2 rating system across all products, AfriSam became the first cement manufacturer to achieve a 33% reduction in CO2 emissions since 1990. It’s just one of the firsts we’re proud to have laid the foundations for since starting our sustainability journey over three decades ago. As the industry’s leaders in sustainability, putting sustainability first has been, and always will be, second nature to us.

access the full report in

Thought [ECO]nomy report boxes: Click on the READ REPORT wording or image in the box and you will gain access to the original report. Turn to the page numbers (example below) for key takeouts of the report.

CABINET ON ENERGY

Cabinet conveys regret that intermittent loadshedding is happening at the time when government is vigorously engaged with the interventions announced by President Ramaphosa in July 2022 to overcome the surmountable energy crisis facing the country.

Public Enterprises Minister Pravin Gordhan recently presented a briefing on the capacity of Eskom and a progress report from the Technical Committee of the National Energy Crisis Committee. Cabinet is still deliberating on these reports and following further interventions, announcements will be made.

Meanwhile, Cabinet remains committed to resolving the issue of energy security in the country and welcomes the concerted efforts being made by government and stakeholders to find a permanent solution to end loadshedding.

POWER STATION TO BE RECYCLED

The Komati Power Station is a coal-fired plant that started operating in the 1960s, and finally is being shut for good. Eskom’s plan, part of the just energy transition (JET), is to repower Komati with renewable energy, and repurpose it into a training facility for Eskom employees and the surrounding community to be able to operate renewable energy facilities, and as a factory for the assembling of containerised solar microgrids.

There are 600 employees at the Komati Power Station in Mpumalanga – 200 permanent staff, 200 contractors and 200 ERI Eskom road tech industry contractors.

Mandy Rambharos, GM of the Just Energy Transition programme at Eskom, at the signing ceremony for the development of the power station, said they are not retrenching any of the full-time Eskom employees – they will be reskilled and redeployed at the training facility.

Eskom is partnering with the South African Renewable Energy Technology Centre (Saretec), which will run the training, and the Global Energy Alliance for People and Planet (Geapp), which is providing the funding of $2-million over the next two years.

The goal is to train 500 workers, some of them existing Eskom workers and some community members in Mpumalanga. Saretec will educate, reskill and upskill Eskom Komati Power Station staff and qualifying beneficiaries from the surrounding communities.

The power station will be repowered with 150MW of solar, 70MW of wind and 150MW of batteries, which will most likely be built under an EPC (engineering, procurement and construction) contract, because it requires a high skill level.

SAVE THE RHINO

South Africa’s commitment to ensure the protection of its black and white rhino populations is clear from the partnerships that have been created over the years and the resulting collaboration, to conserve the species, says the Minister of Forestry, Fisheries and the Environment, Barbara Creecy. The proportion of rhino on private land has grown from about 30% in 2012 to about 60% at present, complemented by antipoaching successes.

The Department of Forestry, Fisheries and the Environment has recognised the significant progress made on security, biological management and responsive legislation with some critical milestones remaining outstanding, most notably on community empowerment, demand management and Cabinet approval of the National Strategy to Combat Wildlife trafficking.

In terms of the country’s overall rhino conservation plan, the private sector is playing an increasing role in South Africa and the rest of Africa. At present, the private sector is conserving about 60% of South Africa’s national herd. Therefore, government takes building partnerships and relationships of utmost importance in the conservation of this iconic species.

Over the last year conservation and anti-poaching efforts have intensified countrywide as a joint effort is made by the collaborative initiatives of state-owned conservation areas, government and private landowners to reduce the poaching of rhino in South Africa.

Information collected and communication flows through the Environmental Enforcement Fusion Centre (EEFC) continues to support the teams at both a tactical level and strategic level in both the private and public sector.

From a biological management point of view, the department in partnership with the Rhino Management Group and all relevant stakeholders are in the process of revising the Biodiversity Management Plans for rhinos.

An additional important measure of recent success in the management of the rhino meta-population has been the successful translocation of 27 rhino from South Africa to the Zinave National Park in Mozambique.

PRIVATE SECTOR REQUIRED

Minister Senzo Mchunu says there is a need to increase private sector involvement in water services to achieve the 2030 Sustainable Development Goals (SDG).

The minister spoke at the International Water Association World Water Congress in Denmark, in September. This year, the summit focused on Innovative Funding for SDGs and Climate Change.

In his speech, Minister Mchunu indicated that some of the challenges that hinder achieving the SDGs are the way municipalities run water and sanitation services. Minister Mchunu explained that municipal water supply is supposed to be managed as a selfsustaining business, with maintenance, operation and refurbishment costs covered by revenue from the sale of water.

“In many municipalities, water and sanitation services are in a poor state and deteriorating,” said Minister Mchunu. “And the percentage of the population with access to reliable and safe water and sanitation services is declining.

“Causes include weak governance and corruption, poor billing and revenue collection, poor asset management, operations management, maintenance and a lack of recruitment of people with the required qualifications and experience.”

The minister said where there is a constraint in the municipalities in terms of finance and expertise, there is substantial expertise in the private sector and banks and pension funds.

“However, private sector involvement in municipal water and sanitation services is considerably low compared to other middleincome countries. The reason for this is a lack of capacity in municipalities to take bankable projects to the market, coupled with a Public Private Partnership (PPP) regulatory framework, which means it takes eight to 12 years to facilitate a PPP.

“In this context, we are doing two key things, a) Putting in place public-private collaboration agreements with industries, such as the mines and agriculture, for joint funding of infrastructure projects. This agreement will simultaneously provide bulk water to industry and reticulated water to communities, and b) putting in place a Water Partnerships Office (WPO) to assist municipalities [on how] to contract for PPP and independent water producers (IWPs),” he elaborated.

CANNABIS MASTER PLAN

The wheels of change are rolling and the North West Department of Agriculture and Rural Development stands firm on ensuring the Cannabis Master Plan finds space in agriculture transformation in the province. This follows the Department hosting the hybrid Cannabis Lekgotla at the North West University in September. The first of its kind in the North West Province, the gathering met its objective of discussing the rollout of the National Cannabis Master Plan and engaging on the economic purpose of commercialisation and development of the herb.

MEC Desbo Mohono in her opening remarks said that the department provides a stark reminder that every avenue to

The WPO is a ringfenced entity in the Development Bank of Southern Africa, and the work of such a WPO will be assisted by the PPP regulatory framework currently being finalised by the National Treasury.

Minister Mchunu concluded by assuring all relevant stakeholders that South Africa is keen to learn from the experience of other countries as it embarks on this journey.

create employment and fight poverty must be pursued, allowing businesses to grow, emerge and thrive, while also using the capabilities of the state to create a conducive environment for farmers. Mohono said, “This is hands on deck indeed and a dream come true for people of the North West province, for they too deserve to benefit from the value chain of this herb. As the government, we always appreciate the direct, considered and constructive approach that higher institutions of learning take in responding to the challenges facing our country. That is why we saw it fit as the North West Department of Agriculture and Rural Development to rope in North West University, in particular, looking at their research output, which is amongst the best in the entire country.”

In conclusion, MEC Mohono said the Lekgotla unlocked many opportunities through commissions and the education drive. “In going forward, we will march to our traditional leaders as the department in forging a partnership and making sure that our people in communal land are not left behind by the train of this economic hub. The department will also set aside a certain amount of money in making sure that we train our farmers fully about how to be experts in this field. This will be done through roping in experts that we have met in this Lekgotla because we do not want to take a ride with our people’s time,” explained Mme Mohono.

THE ALL-NEW COROLLA CROSS

Boundaries

It’s the perfect cross between a motorsport brand that’s conquered some of the world’s toughest races and an SUV that’s built to Cross Boundaries.

The Corolla Cross GR-Sport has been fitted with specially tuned Gazoo Racing suspension configured to deliver sharper steering, better handling and braking with more stability during extreme cornering. It also features exclusive GR styling like a black roof, black 18” alloy wheels and an ultra-aggressive front grille.

Cross Boundaries in the all-new Corolla Cross GR-Sport.

Introducing the all-new, Toyota Gazoo Racing-inspired, Corolla Cross GR-Sport.

COULD HYDROGEN BE THE FUTURE OF SA’S ECONOMIC SUCCESS?

If so, how do we get there?

BY CLIFFE DEKKER HOFMEYR

The production of hydrogen presents unique environmental challenges because it is a water-intensive process that not only requires large volumes of water, but also high-quality treated water. The desalination of sea water is considered a viable water resource option for hydrogen production and offers an opportunity not only for further infrastructure development but possible opportunity to mitigate South Africa’s water shortages.

One significant by-product associated with desalination, however, is the salt-rich effluent (brine) produced during the process, which is then discharged into the ocean and this effluent generation will need to be weighed up in the impact assessments.

Building a desalination plant may trigger an environmental authorisation (EA) Listed Activity, subject to the production capacity, while the discharge of the brine may also trigger coastal water discharge permits. The movement to green hydrogen will also allow the desalination process to be powered by renewable energy from which the hydrogen itself is generated, allowing for a clean circular process.

In the move towards green economies, it has become apparent that there is a need to not only introduce new emission reduction technologies and “green” energy sources, but also to find solutions and adopt new practices that allow our existing infrastructure to be repurposed, and which work in parallel with and bolster other green energy generation models.

Considering that South Africa has one of the highest renewable energy generation potentials in the world and with existing infrastructure in place, the opportunity exists to invest in electrolysis technology. This would also support the platinum sector as platinum is a required raw material for both fuel cell and electrolyser

Establishing widescale pipeline distribution is key to enabling a highpenetration hydrogen economy.

Novel hydrogen technologies bring new challenges to environmental assessment practitioners, developers, investors, lenders and regulators as the risks and impacts associated with hydrogen production, and specifically green hydrogen, requires further research.

manufacturing. Given that South Africa holds most of the world’s platinum reserves, and is the world’s largest producer of platinum, there is an opportunity for it to be a leading contributor in the manufacturing of the underlying technology.

In terms of repurposing, establishing hydrogen production facilities at existing mines and coal-fired power stations, for instance, may offer the opportunity to treat wastewater and contribute to combatting acid mine drainage where treated contaminated water can be used for green hydrogen production.

The use of hydrogen will play a critical role in the transition of the transport sector, which currently accounts for more than 20% of global carbon emissions. In this regard, hydrogen can be used as fuel for long-haul aviation, maritime shipping, certain road vehicles and heavy freight transportation.

Further, hydrogen can be used as an intervention in other industries such as steel production and in cement making; it can be used as a cleaned-up chemical feedstock in processes such as fertiliser production; it can contribute to the flexible dispatch and long-duration storage needs of a high-renewables electricity grid; and it can support contextspecific decarbonisation requirements.

A notable practical benefit to green hydrogen usage is that its distribution and storage can be linked to that of natural gas, as hydrogen can be stored in aboveground tanks and transported in gaseous form via pipelines, liquified for shipment, or even converted into denser forms such as ammonia.

Establishing widescale pipeline distribution is key to enabling a high-penetration hydrogen economy. In this regard South Africa’s establishment of and upgrades to pipeline infrastructure remain a priority as pipelines are conducive to hydrogen distribution, which can be carried out in a manner like, and potentially together with, the existing distribution and use of natural gas. Again, this presents an exciting opportunity in terms of infrastructure expansion and development.

ESG AND GREEN FINANCING

While ESG standards may initially have seemed somewhat abstract, ESG is becoming an increasingly tangible custom in corporate society, capable of swaying investor appetite and developer innovations towards greener and more socially responsible projects. The more investment capital is reserved for greener developments, the more developers will focus on projects that align accordingly.

ESG has become the foremost investment consideration and financial institutions must weigh up short-term costs (which are often extensive) with long-term benefits (that may likely be unquantifiable). Institutions need to design and implement ESG strategies that amount to the “tools” to practically implement ESG objectives, without which the objections may remain nebulous and ineffectual.

Considering hydrogen’s versatile application and its emissionreducing potential, it could form a key component of impactful ESG

strategies and stimulate investment in hydrogen projects for their ESG potential. For example, hydrogen could be incorporated into projects with high revenue-generation potential to make them appealing targets for impact investing.

Examples of such projects include algae farming in South Africa’s coastal waters, as algae growth produces hydrogen as a (green) by-product, or repurposing existing gas transmission infrastructure for green hydrogen distribution.

Another strategy is improved data analysis, as one of the main barriers to companies implementing ESG initiatives is the lack of data available regarding its (mainly financial) benefit. By improving data analysis techniques, companies will be better equipped to introduce tailored ESG objectives that also result in financial gains, including those involving hydrogen.

While hydrogen has major potential in terms of technology innovation, sustainable repurposing existing infrastructure, job creation, economic recovery and overall contribution to reducing GHG emissions, the extent of the potential, the cost, and implementation constraints all require further investigation. By bettering research and investigation into ESG motivated projects such as hydrogen technology and development, companies can confidently develop and hopefully easily access investment in green hydrogen projects that will bolster their ESG ratings that, and not superficially, reflect meaningful impacts.

Although the application of ESG criteria appears to primarily feature at the investment decision level, it also plays a vital role in any company’s day-to-day operations. Offering a competitive advantage, ESG observance at business level will naturally also be more attractive to ESG-committed investors and lenders. ESG implementation may have reputational benefits and risks risk of reputational harm if the ESG goals or outcomes are overstated or otherwise misrepresented.

To tie back to the need to be conscious of the appetite for increased civil challenges against the environmental impacts of infrastructure development, stakeholders, including environmental and community interest groups, are holding investors and corporates accountable, scrutinising environmental and social monitoring reports, publicly criticising failures to provide transparent disclosures and instituting ESG related litigation.

In South Africa in particular, with its development needs and just transition approach, these challenges are likely to arise irrespective of the robustness of an ESG-led investment decision.

Ultimately, in all ESG initiatives there needs to be a balance between responsibility and profitability, but there also needs to be a mindset shift to where costs are viewed as investments. The introduction of green hydrogen production technologies will be extremely capital intensive and will not be without challenges and barriers, particularly in the context of South Africa’s economic, political and social constraints. That notwithstanding, hydrogen presents a major opportunity to synergise sustainability and profitability and is therefore perfectly aligned with South Africa’s just transition goals.

Considering hydrogen’s versatile application and its emission-reducing potential, it could form a key component of impactful ESG strategies.

This article is an excerpt of the Cliffe Dekker Hofmeyr webinar: Could hydrogen really be the future of SA’s economic success? And if so, how do we get there?

ZERO-EMISSION FUEL CELL EVs

The Quantron QHM fuel cell electric vehicle (FCEV) was unveiled at IAA Transportation 2022 and the first orders for the vehicle have been placed. As a result, Quantron ordered 140 fuel cell engines from Ballard Power Systems to secure the supply chain, totalling approximately 17MW with an option to purchase an additional 50 units. The fuel cell modules are expected to be delivered in 2023 and 2024.

As of September 2021, Quantron and Ballard are engaged in a strategic partnership to accelerate the development of heavy-duty hydrogen vehicles. Ballard has made a minority equity investment in Quantron AG as part of Quantron’s financing round of up to 50-million euros.

The zero-emission fuel cell electric vehicle platforms developed by Quantron will integrate Ballard fuel cell products for various truck applications in Europe and the US. The company’s initial market focus is Germany. In the next step, a total of four FCEV models are planned in cooperation with Ballard Power for 2023.

“We are seeing growing global demand and policy support for zero-emission transport as companies strive to reach decarbonisation targets. This collaboration accelerates our entry into the European truck market and aims to have Quantron’s initial hydrogen-powered, zero-emission trucks on the road in the next 18 months,” says Randy MacEwen, CEO, Ballard Power Systems.

Quantron QHM FCEV at IAA Transportation.

AG

(Above) The fuel cell from Ballard Power Systems integrated in the Quantron QHM FCEV. (Left) FCmove™-XD 120 kW fuel cell from Ballard Power Systems.

INNOVATION IN HYDROGEN PRODUCTION

Boasting some of the world’s best renewable resources, the Africa Middle East (AME) region is well-positioned to host gigawatt size hydrogen production sites.

“It is anticipated that the region will drive product platform and foundational core technology innovation in the hydrogen production and energy storage area,” predicts Alan Zhao, who heads up the New Power business for power technology leader Cummins in the AME region.

For the New Power technologies requiring large-scale infrastructure buildout, Zhao expects these to follow a similar path as the traditional internal combustion engine. The full ecosystem of zero-emission technology includes upstream, midstream and downstream. Cummins continues to invest in other advanced technology to minimise emissions, including fuel-agnostic engines such as hydrogen and natural gas engines.

Looking more broadly at the hydrogen economy, Zhao defines this as an ecosystem of products and solutions that commences with hydrogen generation, to hydrogen and energy storage to applications and business segments enabled by hydrogen. In addition, the hydrogen economy also means powering economic activities in a decarbonised manner to eliminate carbon emissions.

The hydrogen economy means viable and thriving economies based on the hydrogen ecosystem. “This is a critical component to deliver sustainable impact. If it is not viable and thriving, it will not last, and therefore not deliver the desired lasting impact,” stresses Zhao.

“I believe strongly in a thriving hydrogen economy, based on some successful use cases and strong fundamental business cases for certain business segments. Those successes provide positive reinforcements to the hydrogen ecosystem. However, it will take time to go through the innovation adaption curve, just like any great innovation,” acknowledges Zhao.

“There are likely to be some applications and use cases generating a great deal of enthusiasm now that will not pass the harsh reality of economic viability, but some will return as thriving applications when the ecosystem is ready for it,” he points out.

Zhao concludes: “Successful energy transition requires massive

innovation and collaboration from the entire ecosystem of willing partners. Friendly competition is a key ingredient to drive critical and continuous improvement towards sustained impact. So, while competing to offer the best we can at any given stage of this long transition, together we can make it happen.”

Shell UK Future Fuels hydrogen refuelling station.

Miquel Gonzalez

Hydrogen refuelling.

James Cannon James Cannon

STRATEGIC ALLIANCES

A win-win for oil and gas operators and suppliers

Let’s be frank. The oil and gas industry excels at many things but getting operators and suppliers to trust each other and work closely for mutual benefit is not one of them. Business cycles drive relationships, with the price of oil at their heart.

BY KEARNEY CONSULTING*

Yet, strategic alliances pose real benefits for oil and gas (O&G) companies and partners, especially as they tackle new challenges on the road to becoming energy companies with new suppliers in areas such as wind turbines, solar panels or customer and software solutions. Wouldn’t it be great if their relationships were decoupled from oil prices and based on win-win outcomes instead?

There are good reasons to pursue strategic alliances now. For operators, 70% to 80% of their cost base lies with suppliers, and there is a wealth of value to be found there. Traditional contracting offers limited opportunity to uncover additional value, and companies need

more innovative and collaborative ways to work with the supply chain that go beyond reducing costs.

Most would agree the industry could operate better with fewer silos – not to mention an efficient request for proposal (RFP) process. Plus, managing suppliers for value could be a competitive edge in an increasingly complex and tightening market.

Strategic alliances are an excellent way to reach the next level of performance by working differently with suppliers. We have seen a 10% to 25% reduction in the total cost of ownership when operators and suppliers work collaboratively to fully tackle value and costs. We’ve also seen value unlocked in a multiple order of magnitude.

Photographic Services, Shell International Limited.

Typical approach by procurement has revolved around encouraging competition among suppliers, creating short-term benefits but a lack of long-term relationships.

Many categories risk getting positioned on the top left with “hot” markets increasing their supply power and buyers not having room to manoeuvre.

The ideal end goal is to explore shifting the category dynamic to the top-right quadrant, leverage longer-term supplier relations and seek joint advantage with the suppliers, such as through strategic alliances.

High

For example, delivering a well 20% quicker at 20% lower cost produces more benefits than simply a few days and dollars saved as production accelerates in a now viable project. This benefit grows as improved delivery continues over the longer term (three years or more) and can make borderline or uneconomical projects attractive again. Finally, companies can improve project delivery (completion timeframes) by 15% if they team more closely with third parties.

WHAT WIN-WIN LOOKS LIKE

Strategic alliances work best when power is high for both the demand (operator) and supply sides. Referring to the Kearney Purchasing Chessboard, procurement encourages competition among suppliers, leading to short-term benefits rather than longterm relationships, as shown in the lower right-hand quadrant of Figure 1

Many categories risk being positioned at the top left, where hot markets increase supply power, limiting buyers’ room to manoeuvre. The ideal end-goal with a strategic alliance is to shift the category dynamic to the top right by leveraging longer-term supplier

Strategic alliances are an excellent way to reach the next level of performance by working differently with suppliers.

Figure 1. Strategic alliances are a good approach when demand and supply power are high.

Kearney Analysis

KEARNEY’S PURCHASING CHESSBOARD

Innovation breakthrough Respecification

Risk management Technical data mining

Value chain management Value partnership

Integrated operations planning Cost partnership Supplier pricing review Target pricing Co-sourcing Commercial data mining Tendering

Demand management Volume bundling Globalisation

Low Low Demand power High Supply power

1. Base cost

- “True” costs (no margins based on best historic delivery achieved)

Short-term goals

2. Risk and inefficiencies

- “True” costs for inefficiencies and lost time

- Incurred as cost or accrued as margin driving efficient delivery and continuous improvement

3. Fixed fee

- Fixed fee to ensure income margin is always captured, capping downside risk for alliance members (10% to 25% of typical margin)

Accrual mechanism as check and balance

4. Performance margin - Margin based on non-time-related performance levers (floating mechanisms)

Agreed “fair” % margin for average performance

5. Long-term incentives

Key concepts and guiding principles for commercial framework

Fosters a one-for-all, all-forone spirit among partners (win or lose together)

Incentivises the long term while still rewarding short-term performance

No scenario in which alliance (non-operator) members incur a loss

- Transparency on cost and margin (open book, true cost)

- Step-change improvement margins are multiple times normal margins (win-win-win)

- Average performance results in lower-than-average margin (improvement is needed)

- Balance of long-term and short-term incentives (weighted towards the long term)

- Incremental improvement >>incremental margin uplift, step-change improvement >> step-change margin uplift

- Accrual mechanism (#2) to incentivise faster delivery, linked to performance margin (#4) as a check and balance to ensure outcomes in performance (such as HSE or quality)

- The upside (and value potential) for suppliers is not capped

- Suppliers never lose money (floating fixed-fee mechanism to ensure this)

Strategic alliances work best when power is high for both the demand (operator) and supply sides.

Having a commercial framework that drives win-win outcomes is paramount (see Figure 2). It can incentivise for the long term while rewarding short-term performance. It supports step-change improvement margins that are multiple times normal margins (a winwin-win) while seeking to improve average performance that renders a lower-than-average margin.

BENEFITS OF A WIN-WIN

• It delivers mutual value from partnerships. C-level heads on the operator and supplier sides will both be dedicated to making things work.

• It improves the teams’ productivity by focusing on standardised processes, value-added work and a one-team mindset. Both parties will ask, “If we were one company, how would we solve this problem?” Then, they’d do it.

• It leverages data tools to develop value opportunities for all parties and stress-tests the framework to ensure win-win outcomes.

• It uses common language and promotes transparency on performance and activities. Partners must be willing to have an open book with no hidden margins.

• It creates the potential for end-to-end value optimisation.

Strategic alliances are dynamic and require continual crosscompany alignment and co-development to keep projects moving forward at every phase. Having an objective referee oversee the coming-together of partners at every phase is essential. At Kearney, we have found it very effective to bring all parties together in a room for a joint scrum to collectively work the needs and drive consensus and alignment on objectives, identifying the value case and principles everyone can work toward from the outset.

A BREAKTHROUGH ALLIANCE

Strategic alliances can be valuable for a wide range of projects, including drilling and well services, offshore wind, operations management (such as turn-arounds) and infrastructure.

IN PLAIN SIGHT

The opportunity to form strategic alliances in the O&G industry has been there for years. Enduring mindsets – and perhaps being comfortable doing things the way they’ve always been done –have kept companies from exploring the benefits. A tightening market may trigger some to collaborate now, but it is also a smart move for thinking five to 10 years down the road. Finding partners through strategic alliances ensures operators have the help they need and presents an opening for shaping what the market looks like in the future.

*Authors: Christian Tapolcai, Partner and James Pearce, Partner, Kearney Consulting

Figure 2. The commercial framework needs to drive win-win outcomes and the right behaviours. [Note: HSE is health, safety and environment]

Kearney Analysis

- Additional margins split members on reaching key project or yearly milestone(s) Long-term goals

Petroleum Agency SA GROWING SA’S ECONOMY

Petroleum

Agency SA (PASA) is South Africa’s state-owned company established through a ministerial directive in 1999.

The Mineral and Petroleum Resources Development Act (MPRDA) came into operation in May 2004 and in terms of this Act, the Agency received its mandate to operate. The Agency is responsible for the promotion and regulation of exploration and development of South Africa’s oil and gas resources. The Agency archives all data related to oil and gas exploration and develops the local upstream industry for the benefit of all South Africans.

In terms of strategy, the Agency actively seeks out technically competent and financially sound clients to whom it markets acreage, while ensuring that all prospecting and mining leases are for the longterm economic benefit of South Africa. By application of appropriate technology, the agency improves the understanding of the commercial potential of South Africa’s natural oil and gas resources to attract investment, both locally and internationally.

By facilitating the process of attracting qualified international explorers to invest in the oil and gas sector, PASA can further grow the South African economy and contribute to the aims of the National Development Plan 2030. The plan envisages that by 2030 South Africa

will have an adequate supply of electricity and liquid fuels to ensure that economic activity and welfare are not disrupted, and that at least 95% of the population will have access to grid or off-grid electricity. Both the National Development Plan and the Integrated Resource Plan call for natural gas to contribute a far greater percentage to South Africa’s primary energy supply mix.

Previous challenges affecting investment decisions, such as the low oil price and the uncertainty introduced by the MPRDA amendment bill, are now a thing of the past. The MPRDA amendment bill has been withdrawn from parliament. Both President Ramaphosa and Minister Matashe have explained oil and gas exploration will be governed by separate legislation, and no longer grouped under general mining legislation. South Africa is on the brink of major developments in the upstream industry and the next few years will be key in determining its future energy profile and how oil and gas contribute to the greater energy mix.

There are currently plans for massive gas production off South Africa’s coast. South Africa expects TotalEnergies SE to submit a production plan to utilise a prolific offshore gas discovery that will form a major part of increasing investment in the sector. South Africa lacks

Petroleum Agency SA has been designated by the government as the official agency responsible for the promotion and regulation of South Africa’s petroleum resources. The Agency regulates and monitors exploration and production activities and is the custodian of the national exploration and production database for petroleum.

commercial oil and gas production, leaving it reliant on imports of the fuel. Its search for domestic resources has encountered unprecedented opposition in recent months by communities and activist groups who have successfully blocked exploration activities by companies including Shell Plc.

“As the Petroleum Agency, we acknowledge that South Africa’s upstream oil and gas industry has become litigious,” CEO of PASA, Phindile Masangane says. “Steps are being taken to enhance the guidelines around local consultation, which have been criticised by groups in court, while the regulator looks to increase activity.”

Production from the newly discovered Block 11B/12B could revive PetroSA’s Mossel Bay gas-to-liquids plant which ordinarily produces 45 000 barrels a day but has run out of feedstock. (PetroSA is South Africa’s national oil company and is separate from Petroleum Agency SA.) South Africa also plans to use the fuel to transition away from coal, which is used for South Africa’s electricity generation.

Most of the coal consumed locally is utilised not as a final energy product but as feedstock, primarily for electricity and synthetic fuel production; coal supplies about 77% of the total primary energy market in South Africa. It is government’s stated objective to diversify the energy mix and environmental pressures suggest that at least part of this demand be met by a clean source such as natural gas.

If TotalEnergies meets the requirements, obtains environmental authorisation and starts the development, output could potentially begin as soon as 2026 says Masangane.

Eco Atlantic Oil & Gas Ltd and its partners have hired a rig to start exploration in Block 2B, which is offshore South Africa. Masangane says that processes leading to the activity have been followed properly.

The demand for energy has surpassed supply and alternative energy sources are being sought to deal with the ever-growing demand. Petroleum Agency SA, together with the Council for Geoscience and the Department of Mineral Resources, is conducting extensive studies into South Africa’s potential shale gas resources. Natural gas

has been discovered off the west coast of South Africa in the Atlantic Ocean (Ibhubesi gas field) and off the southern coast in the Indian Ocean (F-A, E-m and other fields of the Bredasdorp Basin). Both areas have great potential.

South Africa has also returned its attention to the Karoo, a gas-rich semi-desert region of the country where several wells were planned almost a decade ago by Shell and other explorers before environmental concerns and legal uncertainty saw activity diminish.

Regulations were published in July 2022 for public comment by the environment minister around hydraulic fracking, a drilling technique that raised concerns over water use in the Karoo.

The government will conduct seismic activity by the end of 2022 to determine which blocks to license after the rules are finalised, according to Masangane. She says that groundwater and geological studies are being conducted in the biodiversity-rich areas.

Other operations of interest include exploration of the deep water and ultra-deep water of the southern Orange Basin. There is continued interest in the ultra-deep water of the northern sector. The deep water of the southern offshore, soon to be tested by Total, holds exciting potential for large oil reserves.

In addition to well-developed air and rail links, South Africa has 750 000km of roads and over nine-million registered vehicles. South Africa thus represents an important world market for petroleum products and this market is expanding rapidly. Since over 60% of current demand is met by imported crude there is a ready local market for any indigenous hydrocarbons that are discovered in South Africa.

Oil and gas remain the most critical of energy resources, and Petroleum Agency SA is in full support of those entering the South African oil and gas exploration and production industries. The Agency is fully committed to ensuring that our government and policymakers sustain the sector for the benefit of all involved and will do everything in its power to advance the industry.

CEO OF PETROLEUM AGENCY SA

Dr Phindile Masangane is arguably one of the best-qualified women in the South African energy sector. She holds a PhD in Chemistry, an MBA from Wits Business School and a Bachelor of Science degree. Dr Masangane has overseen the development and commercialisation of all CEF Group renewables, alternative and new technology advancements through strategic partnerships with private and public sector entities. She has vast experience in developing, deal structuring and financing of renewable energy projects. She has participated in national energy policy development, including for biofuels, renewables and the gas programme.

There is an excellent case to be made for investment in South Africa’s burgeoning oil and gas exploration and production sector.

High standards of waste management in Angola’s oil sector

As Sub-Saharan Africa’s second-largest oil producer, Angola has seen the application of world-class waste management standards in its oil and gas sector.

BY SRK CONSULTING

SRK Consulting has been involved in landfill design and environmental impact assessments in Angola for almost 20 years, according to Bruce Engelsman, principal engineer at SRK Consulting.

“Most of the waste from the offshore platforms comprises drill cuttings, which emanate from many kilometres of off-shore exploration drilling,” says Engelsman. “These have to be brought ashore, treated and disposed of responsibly, especially to manage the hydrocarbon content in this waste stream.”

A specialist Angolan firm treats these cuttings extracting the oil in the cuttings using the latest Danish thermal desorption technology before the material can be sent to landfill. There is also hazardous waste from offshore and onshore facilities that is incinerated as well as general domestic waste which is landfilled. In line with best practice and Angolan regulations, emissions emanating from treatment are scrubbed and monitored as part of closely managed waste disposal.

Environmental protection principles are in fact embedded in the country’s constitution1, which highlights that the State “shall promote the protection and conservation of natural resources guiding the exploitation and use thereof for the benefit of the community as a whole”. It also gives all citizens the right to “live in a healthy and unpolluted environment” and requires the State to “take the requisite measures to protect the environment and national species of flora and fauna... and maintain ecological balance”.

Engelsman explains that Angola has several main service hubs to support its oil and gas sector. One is Luanda with its extensive port facilities, and the other is in the far north at Soyo – on the Congo River. “These sites boast total waste management solutions that use leadingedge technology,” he says. “The treated residue is deposited in landfill facilities designed by SRK, ensuring that best international practice is applied regarding environmental and social impact. The total design includes the cells themselves, groundwater monitoring, roads and other infrastructure.”

“To ensure a high standard of design, SRK has in the past applied the minimum requirements from South Africa’s Department of Water and Sanitation. In recent years, Angola also began developing its own regulations – especially regarding characterisation of waste – so we incorporate these too,” adds Engelsman.

This developing legal landscape for waste management requires, for instance, more detailed investigation of leachable characteristics as well as the total concentration of contaminant of concern in the waste. Two streams of testing are therefore conducted – one for the leachable concentrations and another for total concentrations. Based on the outcome of these tests, there are restrictions on what materials can enter the landfill.

“Our extensive experience in waste management in South Africa – in the field of tailings dams, for example – equips us very well for these projects,” says Engelsman. “Tailings waste has to be classified to assess whether a lining is required under the facility – a decision with significant cost implications.”

To ensure a high standard of design, SRK has in the past applied the minimum requirements from South Africa’s Department of Water and Sanitation.

The Cacuaco facility, with which SRK has been involved for 15 years, is nearing the end of its life. After closure, operations will move to Bengo in the Viana district, on which SRK is currently busy with design work.

“We partner with a local firm of professionals to conduct the environmental impact assessments (EIAs), including high-tech work such as air emissions modelling,” he adds. “The recommendations from the EIAs are then incorporated into our designs.”

Angolan municipalities also face a considerable challenge dealing with waste from residents and local businesses, and SRK has recently become involved in feasibility studies in this segment.

“Cities like Luanda have struggled for many years to manage the rapid urbanisation from the war years, when people flocked to cities for safety,” Engelsman says. “For instance, Luanda reportedly produces some 6 000 tons of solid waste every day, and its infrastructure was not developed to cope with such volumes.”

The country continues to develop its waste management capacity with partner agencies. In 2019, the United Nations Environmental Programme (UNEP) – through its Chemicals and Waste Management Programme – launched an ambitious three-year project2 in Angola, focused on establishing a sustainable and integrated national structure to better manage chemicals. The strategy has been coordinated by the Angola Ministry of Environment, through a National Chemicals Management Unit. This works towards the implementation of the project and ensures that Angola can continue to manage chemicals and hazardous wastes into the future.

Angola has several main service hubs to support its oil and gas sector, boasting total waste management solutions.

Unsplash

Unsplash

Angolan municipalities face a considerable challenge dealing with waste from residents and local businesses.

Our Green Buildings Finance Programme provides up to 100% property finance ranging from R500 000 to R50 million to established entrepreneurs with a viable business who want to invest in green buildings and achieve green building certification. We finance the purchase, construction, and/or retrofit of buildings if their designs are certified under an eligible green building certification.

Extra benefits:

The cost of green certification is covered by a non-refundable grant of up to R150 000. We offer a rebate of up to 40 percent of the capital expenditure needed to green your building and achieve green buildings certified status.

It’s time to harness renewable energy, go off grid, harvest rainwater, and ultimately reduce your business’ running costs.

Loadshedding and the rising petrol price

Practical tips for SMEs to overcome challenges facing the sector

Following two years of lockdown restrictions, South Africa’s economic recovery is being thwarted by several adversities on both local and global fronts. Locally, several antagonistic forces are at play, namely significant fuel price hikes and the ongoing bouts of loadshedding, which continue to undermine the stability of the energy system and put additional pressure on small and mediumsized enterprises (SMEs) in the country.

This is the opinion of Rene Botha, area manager at South African SME financier, Business Partners Limited, who explains that the effects of these realities are felt most acutely by small businesses. Within this context, SME owners need to focus single-mindedly on finding creative ways to circumvent these challenges to maintain a semblance of business as usual.

businesses, especially where factors like food storage need to be considered. A good, practical exercise for SME owners would be to add up the line-item costs of undergoing a complete shutdown during loadshedding versus the initial outlay of a backup power source or the cost of going completely green for your building. In most cases, the cost saving potential of backup energy or going green justifies the initial investment especially with finance that comes with rebates as with the Business Partners Limited’s Green Buildings Finance programme.

THE EFFECTS OF THE FUEL PRICE HIKE

Hikes in fuel prices affect South African small businesses across several sectors. SMEs who deliver or collect goods or transport people as part of their business model are directly impacted. Small businesses are also affected indirectly when supplier prices escalate to accommodate rising fuel prices. From a macroeconomic perspective, fuel hikes can drastically reduce consumers’ disposable and spending power, which can also have a knock-on effect on an SME’s bottom-line.

Botha offers the following tips on how small businesses can mitigate the effects of the fuel price increase:

1. Prioritise vehicle maintenance

Depending on the vehicle being used, there are ways to maintain a car to ensure that its fuel consumption remains relatively low. For example, tyres that are underinflated have a higher rolling resistance on the road, which generates excess friction and increases fuel consumption in the long run. Tyre pressure should be checked at least once a month, engines need to be serviced frequently and air filters should be kept cleaned.

A SPOTLIGHT ON LOADSHEDDING

Loadshedding has led to significant revenue losses, with the most recent figures presented by technology company, Yoco, suggesting that about 30% of small businesses have lost up to 10% of their annual revenue due to the onset of loadshedding. There are several theories on how much longer loadshedding will continue, with one source suggesting that it could persist well into 2025. The consensus, however, is that it is a South African reality for which small businesses need to prepare.

Botha offers the following tips for SMEs on how to reduce the effects of loadshedding:

1. Surge protect your property

With small businesses playing such a crucial role in the subsistence of South Africa’s economy, finding innovative ways to mitigate loadshedding needs to be a priority. At a minimum, SMEs should have preventative measures in place to reduce damage to their property, which includes installing surge protection plugs.

2. Install a backup power source

Another way to avoid incurring severe revenue losses because of loadshedding is to invest in battery-powered backup technologies like point-of-sale devices, so that sales can still be processed when the electricity is cut off. With the wide variety now available, SMEs should be able to find battery-powered solutions that meet their needs.

Portable nano solutions are relatively cost-effective when compared to the potential revenue loss of being completely unable to operate. Solar powered backup generators are also viable options for larger

2. Optimise your travel arrangements

Technology is a powerful enabler when it comes to finding ways to be more fuel-efficient. Navigation apps like Google Maps and Waze collate millions of data points to provide users with accurate information on traffic capacities and alternative, faster routes. By using these apps to avoid peak traffic times, SMEs can reduce their fuel input cost. Incremental savings in the short-term can accumulate into longer-term savings.

SMEs that deliver goods can introduce set delivery slots and use digital tools to position these slots within hours that roads are relatively free of traffic. This can be marketed to customers effectively by emphasising how set delivery times will help goods recipients to plan their schedules more efficiently.

NCPC-SA DEVELOPING GREEN SKILLS

Globally, there is a resounding push towards a circular economy and just transition. Responding to the inevitable change to industry, NCPC-SA hosted a green skills development workshop at the 5th Biennial Industrial Efficiency Conference.

BY NCPC-SA

At the 2019 United Nations Climate Action Summit, 46 countries committed to support a just ecological transition by formulating national plans for a just transition and creating decent and green jobs. However, as the just transition becomes increasingly prevalent across the globe, the South African industry and her youth are left wanting and struggling to, in most cases, make the relevant shift.

To help bridge the gap, the National Cleaner Production Centre South Africa (NCPC-SA) workshop reflected on the skills required for a just transition, the move to a sustainable economy and the inclusion of marginalised sectors or society and industry.

“A green or environmental transition can actually lead to the creation of a lot of jobs if we take the right measures and approaches at the level of policies and strategies,” explains Alice Vozza, ILO Decent Work Team for Eastern and Southern Africa. Speaking on behalf of the International Labour Organisation (ILO), Vozza delivered a presentation titled, The Just Transition and Skills for Green Job Initiatives in Eastern and Southern Africa. To access the presentation visit: www.ncpc.co.za

Thought leaders from the GIZ, National Business Initiative and the Council for Scientific and Industrial Research (CSIR) joined Vozza in reflecting upon their organisations’ programmes on skills development and the green economy. The presentations provided insight into available opportunities and developments in new skills sets and learning platforms that can assist industry to transition to efficient ways of doing business.

As an important catalyst that facilitates the demand and supply of skills that support the transitioning towards a circular economy, NCPC-SA has, over a 12-year period, offered introductory, end-user and expert level training in the fields of:

• Resource Efficient and Cleaner Production (RECP)

• Energy Management Systems (EnMS)

• Energy Management 101

• Energy Performance Measurement Indicators (EnPMI)

• Power quality principles

• Water efficiency (under development)

• Sustainable finance

• Renewable energy courses

• Biogas

• Solar thermal (under development)

• Energy Systems Optimisation (ESO):

• Compressed air systems, motor systems, pump systems, steam systems, fans systems, and large-scale cooling and industrial refrigeration systems.

NCPC-SA has established itself as a leader in the green economy training field. “We have become global players and global leaders winning international awards,” celebrates Ndivhuho Raphulu, NCPC-SA director. Over the past decade, NCPC-SA has trained more than 8 646 professionals, and certified 401 experts and 252 local trainers. The project registered seven national qualifications framework occupational qualifications and created 13 original training courses.

Held every two years, the Biennial Industrial Efficiency Conference has established itself as a benchmark for platforms that equip and highlight best practice in South Africa’s circular economy transition.

Visit www.ncpc.co.za for information on the conference, training programme and services.

NCPC-SA has established itself as a leader in the green economy training field.

TARGETING THE TRANSITION

GREEN ECONOMY POLICY REVIEW

South Africa aims to transition to an inclusive green economy, combining economic development, social progress and environmental preservation. Both the economy and society remain, however, highly unsustainable. Targeting the transition to an inclusive green economy therefore signifies a massive and disruptive shift, commanding a new model of development.

Industrial policy is core to this process, notably to ensure a “just transition” and manage a balancing act, consisting of maximising the benefits of the transition and minimising the risks associated with not transitioning; but in line with South Africa’s capabilities to minimise the short-term trade-offs and threats. This requires a careful alignment of South Africa’s industrial policy with the inclusive green economy paradigm to support the country’s green industrial development. Ultimately, this requires the shift from industrial policy to green industrial policy.

To inform such a transformation, this report reviews South Africa’s industrial policy, from an inclusive green economy lens. It investigates the extent to which South Africa’s industrial policy is responding to, if not driving, the country’s transition.

POLICY DESIGN

Several broad policy documents, such as the National Development Plan (NDP), the Innovation Plan and the National Strategy for Sustainable Development and Action Plan (NSSD) have called for the

This report is an excerpt from Green Economy Policy Review of South Africa’s Industrial Policy Framework. The policy review was compiled by the departments of Forestry, Fisheries and the Environment; Trade, Industry and Competition; and Science and Innovation and was produced by the United Nations Environment Programme in 2020. Lead authors are Gaylor Montmasson-Clair and Gillian Chigumira from Trade & Industrial Policy Strategies (TIPS).

transition to a more sustainable development path in South Africa. Such documents mention and support (at least in principle) a green industrial transition, but they do not constitute a strategic, coherent, green industrial development vision.

The National Planning Commission (NPC) has embarked on a process to develop 2 050 pathways for South Africa which may provide the platform to establish the country’s vision for green industrial development (and beyond). Despite some “green shoots”, South Africa’s industrial policy, historically structured around the 2007 National Industrial Policy Framework and the rolling Industrial Policy Action Plans (IPAPs), has not shaped a green development vision.

The dti has provided leadership for the development of green industries, with building blocks to support renewable energy, resource efficiency, the circular economy and e-mobility. In addition, the department increasingly focuses on aligning industrial policy with environmental objectives. Industrial policy has been core to designing and implementing a just transition, leading with the identification of vulnerable sectors and stakeholders, the development of resilience plans and the Socioeconomic Impact Assessment System (SEIAS).

Going forward, industrial policy will be structured around the development of Master Plans for key industrial value chains, as coordinated by the presidency’s Re-imagining our Industrial Strategy for Inclusive Growth framework. The presidency’s approach has not, however, overtly embraced a green economy lens and focuses on traditional sectors and activities.

National Development Plan | Executive Summary [2011]

A general coherence seems to emerge, in theory, from national policy documents, with renewable energy, energy efficiency, green buildings, waste management and sustainable transport arising as key focus areas. In practice, several issues lack consensus or clarity. This is the case around key technological choices in the energy space.

From an institutional perspective, the cross-cutting nature of the transition to a green industrial development leads to responsibilities being scattered among multiple entities. Ultimately, elements of green industrial policy are conducted by a wide array of stakeholders, mostly with conflicting interests, including all spheres of government.

Multiple official channels aimed at aligning public policy exist, such as the Forum of South African Directors-General, the Economic Sectors, Employment and Infrastructure Development (ESEID) cluster, ministerial political and technical structures and the Intergovernmental Committee on Climate Change.

Industrial policy has been elevated to the presidency, opening the door for a more coordinated approach. A strong push for green industrial development from the presidency could effectively require the dti and other departments to be more proactive. The Climate Change Bill makes provision for additional coordination mechanisms at national and provincial levels.

Beyond the coordination of public action, social dialogue is a central aspect of the transition to green industrial development, particularly because of its socioeconomic implications. It is historically vibrant in South Africa, notably through the National Economic Development and Labour Council (Nedlac). The NPC aims to reach a social compact through an extensive process of bottom-up consultation. Furthermore, the establishment of a Presidential Climate Change Coordinating Commission (PCCCC) shows a strong interest by all social partners in improving coordination of the (just) transition.

At the industrial level, the degree of stakeholder engagement varies vastly from one industry to the next. In most cases though, engagement appears to be more reactive than proactive and culminates if issues (or crises) arise. Furthermore, stakeholders often do not consider their concerns and proposals to be considered meaningfully. The extent to which such engagements are mobilised to discuss issues pertaining to the transition to a green industrial development also seem to depend on the political agenda.

The Master Plan approach may provide the adequate platform for proactive, forward-looking planning and implementation. At the monitoring and evaluation level, the knowledge base necessary for evidence-based decision-making and effective implementation of a green industrial development agenda, although growing rapidly, remains largely incomplete.

POLICY IMPLEMENTATION

Mirroring the multitude of strategies and numerous measures that have already been implemented in South Africa to foster the transition to green industrial development. Altogether, while far-reaching, the mix of measures appear to lack coherence and certainty. There is no clarity on the role, scope and impact of the mix of measures and the interaction of its many components.

In some cases, like the carbon tax and budgets, the integration remains weak. In addition, the mix of measures does not adequately capture the diversity of industrial situations vis-à-vis the transition and fails to propose tailored solutions. All industrial policy tools have, however, been used to some extent to foster the transition.

Industrial finance directed at the transition has steadily increased over the last 10 years. Overall, the energy sector, namely renewable energy and energy efficiency, has garnered the most focus, through the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) and a series of tax incentives.

Despite the increasing focus on green industrial finance, material gaps remain. They range from policy-related issues (misalignment between the industrial and green economy policy frameworks) to structural problems (the lack of a funding pool for some segments) to skill and capacity issues (the misunderstanding of green economy by financiers) to fund design problems (the focus on renewable energy and energy efficiency).

The transition also rests on the ability to identify and supply green skills. Overall, no central repository of learning opportunities exists in the country, hindering the rollout of competencies. South Africa does not have a comprehensive, cross-cutting approach to green skills development, despite existing initiatives in some universities, Sector Education and Training Authorities, and Technical Vocational Education and Training colleges. For champions driving the transition, a wide spectrum of learning opportunities relevant to a green economy already exists in South Africa, such as resource efficiency.

Regulations have a fundamental impact on the transition and have been used with various degrees of success in South Africa. Commandand-control regulation, such as licensing for impact assessment, pollution prevention or industry waste management plans, is widely used in South Africa. However, its implementation remains highly imperfect, from the lack of enforcement to the difficulty in obtaining some licences. In some cases, it has had a hindering effect on the transition by obstructing circular economy initiatives or preventing the roll-out of new technologies.

From a climate change perspective, quantity-based regulations around greenhouse gas (GHG) emissions have been implemented at national (peak, plateau and decline trajectory), sector (emissions targets) and firm (carbon budgets) levels. Price-based instruments have been used to change behaviours. The levies on electric filament lamps and plastic bags have had a positive impact on consumption, while the impact of a carbon tax on new vehicles is more tenuous. A carbon tax on GHG emissions has been implemented since 2019.

Frameworks (the REIPPPP and industrial symbiosis programmes) as well as procurement and fiscal rules (such as deductions for “green” investments) provide the regulatory settings for certain operations and have been used in South Africa. The use of standards and targets has shown mixed results. In line with the National Energy Efficiency Strategy, fast-rising energy prices have led to a dramatic progress in industrial energy efficiency over the last two decades.

South Africa lags other key industrialised economies in the rollout of International Organisation for Standardisation (ISO) standards, such as ISO14001 for environmental management and particularly ISO50001 for energy management.

The Climate Change Bill [2018]

National Strategy for Sustainable Development and Action Plan [2011]

SPECIAL

Local content requirements are a key industrial policy tool to develop the manufacturing capability in the country. “Green procurement” has yet to be rolled out in South Africa, despite some initial investigation. In the meantime, the REIPPPP has been the main avenue used to localise green goods. The sound design and governance of the programme attracted numerous manufacturers. However, implementation issues forced most facilities to close. Over and beyond local content requirements, products can be earmarked (“designated” in South African terms) by the dti for local procurement by public entities.

Industrial parks support, manage and administer industrial activities within a specified area to facilitate socioeconomic benefits for the surrounding area, its tenants and the country as whole. They can also be eco-industrial parks, bringing multiple economic, social and environmental benefits. South Africa hosts a variety of economic zones and multiple initiatives are under way to tap into the opportunities associated with the transition to a green economy. The dti, through the National Cleaner Production Centre (NCPC-SA), runs a programme aimed at greening the country’s industrial parks through resource efficiency and industrial symbiosis.

Some industrial development zones and Special Economic Zones (SEZs) are engaged in the transition to eco-industrial parks, with the East London, Atlantis, Dube Tradeport and Richards Bay SEZs leading the way. In addition to initiating the transition to eco-industrial parks, some SEZs aim to harness the manufacturing opportunities associated with the transition to a green economy (Greentech Atlantis, Upington Solar Corridor and Bojanala Platinum Valley SEZs).

Trade policy, as a component of industrial policy, can be used to promote the development of green goods and services globally as well as domestically. South Africa’s trade balance for green goods could be materially improved, notably by promoting imports substitution. Imports are roughly double the size of exports.

RECOMMENDATIONS

Building on this analysis, recommendations to foster green industrial development in South Africa can be formulated. They are split into four complementary components: capacity building; policy mainstreaming; information/data systems; and transition planning. Developing a green industrial policy in South Africa is conditioned on building the capability of the State in designing and implementing it.

Green industrial policy is, by definition, cross-cutting, complex and challenging of the status quo. Efforts should be directed towards building internal capacity on sustainability transitions within the departments of the ESEID Cluster. Sustainability issues must notably be mainstreamed into all sector divisions of the dti. The use of the SEIAS should be further leveraged to improve the understanding of cross-cutting issues through the public sector, including politicians.

A double mainstreaming of sustainability in industrial policy and development in environmental policy should take place. This should prelude the full alignment of environmental and industrial development policies. Sustainability objectives should become an integral pillar of South Africa’s industrial policy, including the Master Plans. The integration of sustainability into industrial policy should ultimately lead to greening the programmes which form industrial policy.

Support to key industrial value chains should be strategic, timebound and conditional to green performance improvements. Measures incompatible with the transition should be progressively phased out. Complementarily, policy and regulatory bottlenecks for industries to move towards a sustainable development pathway should be identified and unlocked. Measures to stimulate market demand, particularly from the private sector, should be prioritised.

Further collaboration between entities is required on technology development and commercialisation to bridge the “valley of death” preventing innovation to reach the market. Efforts are required to develop the green skill base in the country, through awareness raising, establishing professional bodies and the mainstreaming of green skills in education programmes. Both capacity building and policy mainstreaming interventions, to be successful and longstanding, need to rely on up-to-date, accurate data. A just transition to green industrial development cannot occur without evidencebased policymaking.

Establishing a central, robust and extensive information base should be prioritised. Economic data and information should be further disseminated and understood, notably by non-economic departments and stakeholders. A one-stop-shop platform dealing with the interplay of sustainability and industrial development should be established.

Systems for the co-development of policy (in its broad sense) by government, the private sector, labour and communities should be established. In addition to all policy interventions aimed at fostering South Africa’s sustainability transition, further attention should be paid to managing the transition process within a just transition framework. A long-term vision aligned with the country’s sustainability objectives should be developed.

Leveraging the Master Plan process, sectoral roadmaps should accompany the vision to flesh out the implications for each economic activity. The development of sectoral roadmaps should be informed by a clear understanding of the risks and opportunities associated with the transition. Resilience plans should be systematically crafted to ensure a just transition in favour of workers, small businesses and low-income communities. Institutionally, due to the far-reaching nature of this work, social dialogue and co-development by a set of multi-disciplinary stakeholders, under the guidance of the PCCCC, should drive this process.

CONCLUSION

Vast opportunities exist for aligning industrial development and green economy policies in South Africa and embarking on a just transition to green industrial development. The current development of the Master Plans offers a unique opportunity to initiate the transition to green industrial development in the country. Considering the transition to a green economy should be a requirement for every Master Plan. Such work will provide an impetus to further bridge existing knowledge gaps and trigger implementation.

Re-Imagining our Industrial Strategy to Boost Inclusion and Private Investment [2019]

The Climate Change Bill [2022]

Rethinking hazardous waste management The 11-million elephants in the room

Research shows that 92.7% of hazardous waste is landfilled in South Africa. That is a staggering 48-million tons of hazardous waste or the equivalent of 11-million elephants. Eleven-million elephants stacked on top of each other would create a tower that is 36 410km high – almost long enough to reach around the entire earth.

Accordingto the South Africa State of Waste Report 2018, South Africa generates more than 107.7-million tons of waste annually. Of this, 48% or 52-million tons, is classified as hazardous waste that may have a detrimental impact on health and the environment. A total of 92.7% of this is landfilled every year.

To compound matters, South Africa’s dumping grounds are filling up at an alarming rate with some large sites having less than three years of airspace available, says Leon Grobbelaar, the president of the Institute of Waste Management of Southern Africa. Engineering News has recently reported that Johannesburg, Tshwane and Cape Town each have less than 10 years of landfill life left.

Legislators have identified this as a fundamental issue that needs to be resolved, and as such the South Africa Waste Management Strategy 2020 states: “Prevent waste, and where waste cannot be prevented, ensure 40% of waste is diverted from landfill within five years; 55% within 10 years; and at least 70% within 15 years leading to zero waste going to landfill”. A tall order, but a crucial one for our country and environment.

Waste that is not taken to landfill poses possible environmental and human health risks and disasters – the tragic tailings dam failure in Jagersfontein (2022) is an example. In a recent Reuters report, it is noted that South Africa has the highest number of high-risk tailings dams (79) in the 10 countries that were profiled. Quartz Africa asserts that “there are growing calls for the cleaning up of high-risk tailings dams so that the waste can be re-processed and used to fill up mined out operations, thereby reducing environmental hazards.” Mariette Liefferink from Federation for a Sustainable Environment (FSE) warns that in terms of ecological risk, the issue of mining waste is widely recognised as second only to global warming and stratospheric ozone depletion.

A high degree of effort is required to mitigate environmental risks posed by hazardous waste, no matter where that waste currently exists. For this to be achieved requires industry to pursue zero

waste aggressively with landfill technologies from both sides of the buyer-supplier relationship.

TREATMENT OF HAZARDOUS WASTE

There are various ways of treating different types of hazardous waste including but not limited to biological, physical/chemical, thermal or disposal. The type of treatment depends highly on the contaminant and the desired result, as not all waste streams are susceptible to all treatment methods. Other factors that influence the choice of treatment method include the conditions of contamination and surroundings, type of remediation required (destruction, separation or containment), operational intensity, capital requirements, relative costs, reliability of outcome and the time window.

Treating hazardous waste is by no means an easy feat, and much more work is needed to develop solutions for waste streams that currently have no treatment options. Combining +50-year-old principles with innovative product technology, Bemical delivers solutions to hazardous waste streams that are based on the most efficient methods in biological and physical/chemical treatment. Waste stream examples that have been managed via these treatment methods include hydrocarbons, volatile organic compounds (VOC), heavy metals such as lead, arsenic and chromium, polycyclic aromatic hydrocarbons (PAH), manufactured gas plant waste (including cyanide, naphthalene, total petroleum hydrocarbons, arsenic), chromium ore process residual, asbestos as well as platinum group metal tailings and sewage.

Bemical’s leadership team includes a head of technical and project operations, an expert with over 20 years of global remediation experience, as well as a chief science officer serving as an associate professor with a distinguished academic track record in chemical and environmental engineering. Bemical has partnered with the Department of Engineering at the University of Pretoria to conduct further research into industry-leading remediation products to better serve the variety of waste streams available.

Contact Jaco Nel at admin@bemical.com or +27 83 363 0315. www.bemical.com

NMISA SAVES ENERGY FOR SA

NMISA services in support of energy-saving efforts for the South African economy

NMISA disseminates traceability to the National Measurement Standards, which are linked to the international system of units (SI) through calibration of measuring equipment. Traceability to SI allows weights and measures in South Africa to be comparable to weights and measures in other parts of the world. In the field of electromagnetic radiation, it is NMISA’s responsibility to maintain the SI unit for luminous intensity (the candela) and to perform traceable photometric and radiometric measurements and calibrations in support of industry.

The

science of photometry and radiometry addresses the measurement of electromagnetic radiation. Photometry concerns the measurement of light (the visible part of the electromagnetic spectrum) and measurements consider the response of the human eye. Radiometry, relates to the measurement of electromagnetic radiation in the wider spectral region ranging from the ultraviolet (UV) to the infrared part of the spectrum.

The measurement and calibration services offered at NMISA are categorised according to:

• Photometry e.g. lux and luminance meter calibrations

• Properties of detectors e.g. UV radiometer and laser meter calibrations

• Spectral emission properties of sources e.g. spectral distribution of lamps/light emitting diodes (LEDs)

• Spectral properties of materials e.g. transmittance, absorbance of filters

• Spectrally integrated measurements for sources e.g. correlated colour temperature, colour rendering index of lamps/LEDs

• Colour and other spectrally integrated measurements of materials e.g. gloss, luminance factor

ENERGY EFFICIENCY

NMISA develops measurement capabilities for LED products that serve

as energy-efficient light sources. The move toward LED lighting is propelled by its high efficacy which provides savings. To support the local lighting industry, accurate LED measurement methods and standards must be developed to ensure that the performance and safety of these light sources can be assessed correctly. NMISA measures the following properties of small to medium-sized (e.g. A-type lamps) LED products:

Photometric, colorimetric and radiometric parameters

• Spectral power distribution

• Spectral radiant/luminous flux

• Radiant/luminous flux

• Chromaticity coordinates

• Correlated colour temperature

• Colour rendering index

• Luminous intensity

• Averaged LED luminous intensity

• Irradiance/illuminance

• Radiance/luminance

• Peak/centroid/dominant wavelength

• Purity, full width at half maximum (FWHM)

Electrical parameters

• RMS current/voltage

• Power factor

• Total harmonic distortion (THD)

• Luminous efficacy

Temporal light modulations and artefacts

• Waveform, frequency, flicker index, percent flicker

• Short-term flicker index and voltage fluctuation immunity

• Stroboscopic visibility measure

• Perceptual modulation

Photobiological safety

• Actinic UV and near-UV hazard

• Blue light hazard

• Retinal thermal hazard

• Infrared eye hazard

• Thermal skin hazard

UV APPLICATIONS

UV radiation falls outside the visible part of the electromagnetic spectrum. UV-C radiation with wavelengths between 200 nm and 280 nm is an important tool in medical applications. It has disinfection properties and is used in UV Germicidal Irradiation (UVGI) devices to

The National Metrology Institute of South Africa (NMISA) is mandated by the Measurement Units and Measurement Standards Act, 2006 (Act No. 18 of 2006) to provide for the accuracy and international recognition of local measurement results to provide for the use of measurement units of the International System of Units and certain other measurement units; to provide for the designation of national measurement units and standards; to provide for the keeping and maintenance of national measurement standards and units; and to provide for the establishment and functions of the National Metrology Institute.

prevent the spread of infectious diseases via air, water and surfaces but also has inherent risks.

The equipment used for LED measurement and calibration can also be used to accurately measure the UV content of lighting products and ensure that UVGI devices provide both effective disinfection and a safe environment for room occupants.

UV LEDs have also become an environmentally friendly option to replace mercury lamps in certain applications such as curing and disinfection. NMISA can provide the measurement of UV LED devices to determine their performance and safety, as well as calibration of UV radiometers which are used to measure these types of devices in the field.

HOW TO GET IN TOUCH WITH NMISA ONLINE

Website: www.nmisa.org

Online Shop: https://store.nmisa.org/

Facebook: National Metrology Institute of South Africa

Twitter: @NMISouthAfrica

Instagram: @nmisouthafrica

LinkedIn: National Metrology Institute of South Africa (NMISA)

YouTube: National Metrology Institute of South Africa NMISA

For a detailed list of accredited measurement and calibration services, refer to the Photometry and Radiometry Laboratory’s South African National Accreditation System (SANAS) scope of accreditation . The laboratory also offers custom and non-accredited services, which may be discussed upon request. To learn more about these services contact pr@nmisa.org or +27 12 947 2782/2800

An integrating sphere, which is used to measure the flux of a lamp.

THE FUTURE IS BRIGHT FOR PEROVSKITE PV

Perovskite PV is an exciting new solar power technology. In 2009, the first report of a perovskite solar cell was published with an efficiency of just 3.9%. Given the novelty of the technology, the rapid gains in efficiency are impressive; however, high efficiency is not the only promising attribute.

BY DR ISABEL AL-DHAHIR

The silicon photovoltaic (PV) market is accelerating every year. There are global initiatives to move towards renewable energy sources and public consciousness of sustainability is increasing. As such there is plenty of opportunity for new PV technologies to enter the mix and meet gaps in demand.

Perovskites refer to a family of materials with a specific material structure. Those used in photovoltaics have a unique combination of electronic and optical properties that are extremely well-suited to this application. Perovskite PV is not expected to imminently replace silicon PV as the dominant technology; however, there is substantial motivation for its adoption.

Perovskite PV can provide similarly high-power density as silicon PV at lower cost, a fraction of the weight, and with a simpler manufacturing process. It can also be combined with silicon to create tandem cell architectures that can surpass the efficiency limits of single junction solar cells. Several companies are working on developing single junction perovskite and tandem PV, some of which have pilot lines and trials in progress with plans to launch commercially within the next year or two.

EFFICIENCY GAINS

Perovskite PV research took off in 2009. Since then, research into the field has catapulted. Record efficiencies are already on par with those of silicon PV, a technology with decades of research behind it.

(Above) Perovskite photovoltaics can be utilised in either a thin film (left) or tandem perovskite-on-silicon architecture, targeting applications such as indoor energy harvesting or rooftop PV respectively. (Top image) Perovskite photovoltaics in the background with individual perovskite crystals shown as the colourful units.

Additionally, perovskite PV does not use toxic or rare materials and the manufacturing is well-suited to scalable solution-based deposition methods. This gives perovskite PV an edge over the existing dominant thin film alternatives such as cadmium telluride (CdTe) and copper indium gallium selenide (CIGS), which suffer from expensive synthesis and material scarcity.

Despite the demonstration of high efficiency perovskite solar cells, commercial adoption is limited by concerns over long-term stability. Perovskites are well-known to degrade following exposure to environmental factors such as heat, air, humidity and UV light. Encapsulation techniques and material engineering are crucial to prevent degradation of the perovskite film – solving these high-value problems is a compelling commercial opportunity.

EMERGING APPLICATIONS

Perovskite PV is very versatile. It is used in mainstream applications such as in solar farms and rooftops. Since the weight of a perovskite module is at least 90% lighter than a silicon module, it is particularly well-suited to novel applications as well such as vertical building integration and structures with low weight tolerance. These are applications that mainstream silicon-based PV is not compatible with and therefore provide a niche opportunity for perovskite PV.

Flexible solar modules are another exciting recent development in photovoltaics. Thin film perovskite PV is naturally cut out for flexible designs. Conformality allows for greater practicality and aesthetic control when integrating into building façades as well as electronic devices.

Internet of Things (IoT) devices promise to enable a world of smart, connected objects, with their number expected to rapidly accelerate to billions by 2030. However, small electronic devices typically rely on batteries that require frequent recharging or replacement every few years, leading to high material as well as unwanted waste. Powering

IoT devices in a cheap, sustainable fashion is crucial to achieve the promised vision of a connected world. Small, low-cost thin film solar cells, optimised to work with diffuse indoor light, solve to this dilemma.

Employing low-cost PV powered devices with lifespans of 10 years could be far more economical. There is already very early-stage commercialisation of self-powered electronics using organic PV. This market is still very small and there is plenty of room for new entrants. Perovskite PV promises higher efficiencies and simpler synthesis than organics, and potentially longer lifespans.

INDOOR ENERGY HARVESTING

A connected world comes with the burden of batteries and unsightly extensive wiring. As more technologies are adopted into homes and businesses, the chaotic clutter of wires and the dwindling count of nearby power sockets become an increasing nuisance.

The use of batteries is an environmentally unfriendly solution and replacing them on a mass scale every three to four years is expensive and labour intensive. The integration of a thin film solar module within smoke alarms, motion sensors, smaller electronic displays and other gadgets means that there is no need for batteries or external wiring and so the device can be placed anywhere that has sufficient light exposure.

Perovskite PV provides similarly high-power density as silicon PV at a lower cost, a fraction of the weight and with a simpler manufacturing process. Perovskite solar cells can maintain relatively high efficiencies even under low intensity or diffuse light, making them compatible to both indoor and outdoor energy harvesting.

This is a key advantage over the conventional silicon technology that suffers poor efficiencies under indoor light. Since the perovskite material applies like an ink, the solar cells are very lightweight, flexible and unobtrusive. They can easily be integrated into small electronic devices and used to power them directly.

(Above) Perovskite PV could be a cost-effective method to power everyday electronics. (Left) Researchers have developed a new way to test longlasting perovskite formulations that could be used for solar cells. The highthroughput automated degradation test system monitors the breakdown of the material through its changes in colour as it darkens.

IDTechEx

COST TRUMPS EFFICIENCY

For a lot of household and consumer electronics, high power is not a strict requirement. For example, powering headphones, sensors, and lights does not require state-of-the-art solar technology. Solar cells with an efficiency of 10% to 15% could be sufficient to operate most small and portable electronics.

Durability is another typically important criterion that can be relaxed since many electronics are intended for short-term use, with consumers frequently updating their devices for newer models. The need for 25-year lifespans, as is typical for rooftop solar panels, is no longer the standard to measure by.

The key metric for the successful deployment of solar cells in consumer and retail electronics is cost. Given the increasingly high volume of consumer and retail electronics, energy solutions need to be economical. Additionally, solar technology will be competing with well-established and relatively inexpensive batteries. Solar could move into a competitive position with batteries if it were to demonstrate lower costs and greater practicality.

OUTLOOK

The future appears optimistic for perovskite PV, since the technology has advanced much more rapidly than any other photovoltaic technology. Unlike CdTe and CIGS active layers, perovskites do not require rare or expensive raw materials. The synthesis is straight-

forward, and deposition can be carried out without the need for a vacuum or high temperatures.

The possibility of creating flexible devices also opens new applications that mainstream silicon PV cannot target due to their bulk, weight and rigidity. Despite the promising advantages, concerns surrounding the lifespan of perovskite solar cells remain at the forefront of the discussion.

ROUTE TO COMMERCIALISATION

Resolving perovskite PV stability issues is challenging, with many strategies bringing performance trade-offs or extra costs. Nevertheless, the field has come a long way in its understanding of degradation mechanisms and substantial progress has been made. Advancements in stabilising perovskite cells have helped to transition the technology from academia to industry.

The article is an excerpt from the IDTechEx report Perovskite Photovoltaics 2023-2033

Perovskite PV is not expected to imminently replace silicon PV as the dominant technology; however, there is substantial motivation for its adoption.

Ken Richardson

Solar cells made of perovskite have great promise, in part because they can easily be made on flexible substrates, like this experimental cell.

GOING BEYOND SILICON’S LIMITATIONS

The rise of thin film photovoltaics

In the shadows of a silicon-dominated field, other photovoltaic technologies have been edging closer to the spotlight. Emerging photovoltaic applications, such as indoor energy harvesting and building integrated photovoltaic, have specific requirements that will enable “thin film” alternatives to flourish.

BY IDTechEx

Thin film photovoltaic (PV) can deliver several unique advantages such as lighter weight, better indoor light conversion efficiency, simpler manufacturing and potentially lower costs than conventional silicon PV. A particularly exciting opportunity is the role of thin film photovoltaics in powering Internet of Things devices – a market expected to reach billions following the increasing smartification of home and retail electronics.

EMERGING MARKETS

Thin film PV is expected to gain traction in the coming years, with the market set to grow to US$6.1-billion by 2033. Substantial strides have been made within the thin film sector, with efficiencies increasing and manufacturing processes becoming cheaper and more streamlined.

New applications are being developed that conventional silicon PV is not suitable for due to its rigidity, bulk and weight. These applications include building integrated PV where the panels are attached to the sides of buildings. Some types of thin film PV can be made semi-transparent and very lightweight, which makes them less aesthetically obtrusive and ideally suited to deployment on windows.

Other emerging applications belong to the self-powered electronics and IoT sector, which is expected to grow substantially in the coming years as “smart” electronics become more prevalent. Lightweight thin film minimodules can be used to power such devices and could serve as a cheaper and more long-lasting alternative to batteries.

What will dominate the thin film market?

Currently, the thin film market is dominated by cadmium telluride (CdTe), followed in second place by copper indium gallium selenide (CIGS). CdTe is best known in the USA, where it is used for 40% of all utility-scale PV power. Despite concerns over the use of the scarce element tellurium, the CdTe market is expected to keep its position following strong investment and the creation of recycling initiatives that are at present already operative.

A particularly exciting opportunity is the role of thin film photovoltaics in powering Internet of Things devices.

CIGS technology, on the other hand, has been plagued by commercial failures, with the largest manufacturer having exited the market in June 2022. It is expected that CIGS will be surpassed in the coming years by perovskite PV – a very young and exciting technology that has shown remarkable efficiency gains in just a few years, with record efficiencies already on par with those of silicon PV, a technology with decades of research behind it. Perovskite PV is well-suited to both outdoor high power density applications as well as indoor energy harvesting and powering small electronics.

Organic PV and dye-sensitised solar cells are contenders that are commercial on a small scale in both outdoor and indoor applications. Given their short lifespans of five years, organic and dye-sensitised solar cells are better suited to powering short-term use electronics rather than large area outdoor energy harvesting units that are expected to last >15 years. For this reason, the application range is limited.

OUTLOOK

Decarbonisation of global energy sources is being catapulted forward as both nations and industries race to achieve net zero. While silicon PV is affordable to consumers and delivers high efficiencies, its application range is limited by its weight, size and rigidity, as well as a complicated manufacturing process. Thin film alternatives present numerous advantages to overcome these limitations and cater to emerging applications such as buildingintegrated PV and indoor energy harvesting.

The Massachusetts Institute of Technology team have achieved the thinnest and lightest complete solar cells ever made, they say. To demonstrate just how thin and lightweight the cells are, the researchers draped a working cell on top of a soap bubble, without popping the bubble.

This article is an excerpt from the research report BEYOND SILICON: THIN FILM PHOTOVOLTAICS 2023-2033 | IDTechEx | [2022]

Thin film PV could enable ubiquitous solar powered technology. New applications of thin film applications include building integrated PV where the panels are attached to the sides of buildings (right).

IDTechEx

Joel Jean and Anna Osherov

A SUCCESSFUL CLEAN-UP AND RECYCLE SA WEEK 2022

According to Douw Steyn, sustainability director at Plastics SA, literally hundreds of clean-up events took place around South Africa to keep our environment clean, with many more initiatives continuing to take place over the coming weeks.

“Clean-Up and Recycle Week 2022 was action-packed and it was wonderful to see the large number of volunteers signing up for cleanups at beaches, rivers and streams and in communities around the country. Our sincere gratitude goes out to all the coordinators who worked tirelessly to ensure that everything ran smoothly on the day; the many sponsors who contributed either financially or with products to this year’s clean-up efforts, and every South African who willingly gave of their time and energy to make a difference, by removing visible litter from the environment,” he says.

Highlights of this year’s Clean-Up & Recycle SA Week included River Clean-Up Day, which took place on 14 September, National Recycling Day, which took place on 16 September, as well as International Coastal Clean-Up and World Clean-up Days both falling on 17 September. These incredible days united over 180 countries across the world for a cleaner planet as volunteers and organisations took to cleaning every space imaginable – including divers who went deep-sea litter hunting.

Douw especially thanked Plastics SA’s sustainability manager, John Kieser, who has been the Cape Province’s coordinator and one of the founder members of the South African International Coastal Clean-Up for the past 27 years.

Plastics SA’s work is not finished yet, as the completed audit sheets now need to be compiled, processed and analysed to produce a final report about South Africa’s participation in this year’s events, as well as a snapshot of the waste found on our beaches and waterways.

“We want to encourage communities to continue with their

Hundreds of clean-up events took place around South Africa to keep our environment clean.

efforts to keep their communities clean. Every South African can make a difference every day by picking up litter and ensuring that they recycle. Small, consistent efforts make a huge difference if everybody does it. Together we can turn the tide on litter in our country,” Douw concludes.

South Africans can celebrate another successful Clean-Up and Recycle Week as thousands of kilograms of waste were removed from our natural spaces.

(Top left) Underwater clean-up diver Mia Vorster of ScubaXcursion collects waste at Scottsburgh (Fern Reef). (Top right) Beach clean-up at Scottsburgh.

Shark dissection at Scottburgh beach cleanup by Steven Mabugana (AquaAmazing) educating about marine pollution.

PLASTIC DEMAND GROWS

BIOPLASTICS 2023-2033: TECHNOLOGY, MARKET, PLAYERS AND FORECASTS

BY ANDY KO, IDTechEx

Yet,

even if all the plastic produced every year was 100% recycled, there would still be a need for virgin feedstock to meet growing consumption. Bioplastics – plastics which are synthesised from biobased feedstocks – can replace incumbent fossil-based plastics here. Given their biobased origin, these plastics are a lower carbon footprint and sustainable option to incumbent fossil-based plastics.

The bioplastics industry began decades ago, but during the 2010s the industry fell deep into the valley of death, indicated by a string of bankruptcies and business repositioning away from the space. This slump was driven by recoil from bullish initial investment in the space, and a significant bottleneck when it came to scaling production to commercial level. Furthermore, the high relative cost of bioplastics compared with a substantial drop in the price of Brent crude made bioplastics poor competition against conventional plastics, reinforcing the decline.

Plastic demand continues to grow even as we become increasingly aware of the threat that plastics pose to our environment. Global consumption of plastics will double by 2050. To combat the impact of plastic on environment and climate change, the industry is transitioning towards a circular economy.

Technology readiness level of bioplastics by types.

A bioplastic is a plastic made from plant resources, such as corn, wheat or algae.

IDTechEx

However, recent changes have turned the tide in the bioplastics industry, revitalising its growth mode. Foremost, there has been a shift towards sustainability demand from brand-owners themselves. This is driven from both sides: by consumer pull that continues to strengthen, and by legislation changes (plus anticipation for future changes) towards sustainability – such as single-use fossil-based plastics bans. The cornerstone COP26 conference, supported by the IPCC report, fuelled brand-owner commitments to decarbonisation, too. This surplus demand is pushing manufacturers to expand their capacities faster, with many brand-owners forming partnerships to accelerate the scaling-up process.

Many companies are beginning to overcome the commercial scale bottleneck and as technology develops bioplastics are being produced for lower costs. Additionally, consumers are more willing now to pay the premium for sustainable bioplastics. Overall, these factors are driving bioplastics towards being more affordable and competitive against conventional plastics. This is supported by a spike in Brent crude prices recently, which make bioplastics a more attractive alternative.

DROP-IN DISRUPTORS

A major factor for bioplastic adoption to disrupt the plastics industry is the drop-in materials. These are biobased feedstocks or building blocks that can be a direct substitute for incumbent feedstocks. By substituting with drop-ins, manufacturers can easily facilitate the transition from fossil to biobased. The same processes can be used, rather than establishing entirely new plants, and end-product properties are unchanged.

This also means that the well-established end-of-life options of incumbent plastic products can be used, particularly recycling streams which massively improve the sustainability of a plastic product. Using drop-ins, the biobased material can be traced with chain-of-custody models like mass balance, which create transparency and trust throughout the value chain regarding sustainable material origins and processes. Overall, the plastics market will more readily adopt drop-in bioplastics which have a strong advantage over other bioplastics.

CHALLENGES FOR BIOPLASTICS

Yet, there are still many challenges for several bioplastic types to overcome. To be truly sustainable and become part of the circular economy, bioplastics must be designed for end-of-life processing. For example, polylactide (PLA), the most widely produced 100% biobased plastic material can be industrially composted, however this provides no value to the compost so there are few off-takers in the industry. Meanwhile, recycling PLA, unlike drop-in biobased polyethylene terephthalate (PET), requires dedicated infrastructure that is uncommon and very expensive to adopt. Instead, most PLA is mismanaged or goes to landfill.

The largest groups of plastics worldwide, polypropylene (PP) and polythene (PE), remain without a major bioplastic solution. Bionaphtha is used to make biobased PP and polyphenylene ether (PPE), but synthesis of bio-naphtha from bio-alcohols and oxygenates is inefficient (because of waste oxygen in the process). Furthermore, this puts chemical manufacturers into competition for feedstock with biofuel and bioenergy. On the other hand, bio-naphtha can be made from plant oils, however these raw materials suffer from price fluctuations resulting from geopolitical instability.

Younger bioplastic types that are still in demonstration or pilot scale show promising properties. However, they have yet to develop a significant range of applications, critical to developing demand for the materials. Companies in these niches need to form partnerships with brand-owners and formulators to expand their application portfolios.

ORDER REPORT

THOUGHT [ECO]NOMY greeneconomy/report recycle

This article is an excerpt from the research report BIOPLASTICS 2023-2033: TECHNOLOGY, MARKET, PLAYERS AND FORECASTS | IDTechEx | [2022]

As bioplastic materials transition from being a “nice-to-have” to materials with a very strong, viable business case, manufacturers are racing to keep up with demand. Brand-owners, striving to hit their decarbonisation targets by taking the initiative to transition to bioplastics, are generating a stronger brand-owner pull than ever before. This demand is further exacerbated by legislators around the world, who are cutting down on fossil-based plastic use with single-use plastic bans.

Together, these major factors are pressurising players across the bioplastics industry to commercialise their materials and ramp up production. With all this activity, IDTechEx forecasts global annual bioplastics production capacity to grow at a CAGR of 10.1% over the next ten years.

IDTechEx’s report evaluates the technologies and trends that bring more sustainable biobased materials to the plastic industry.

South Africa’s advanced PET STRAPPING SOLUTION

Did you know that using PRO-10 STRAP™ can assist your company’s sustainability goals, while also lowering your environmental carbon footprint?

Extrupet

is one of South Africa’s largest contemporary recycling operation, dedicated to the recycling of post-consumer polyethylene terephthalate (PET) bottles. Since its establishment in 2000, Extrupet has grown to become one of the most respected names in the recycling industry.

The company currently recycles over four-million PET bottles per day and successfully supplies high-quality recycled products to a few blue-chip manufacturers who understand the need for a sustainable solution to the issue of PET waste.

PRO-10 STRAP™ is an exceptional product with which to secure loads during transit. Its extraordinary tensile strength, tenacity and high elasticity ensures that the load remains tightly bound even if the package shrinks after being strapped.

PRO-10 STRAP™ is manufactured in South Africa at a state-of-the-art facility using a SIMA production line made in Italy and used globally by the world’s leading strap manufacturers. Ensuring high-quality products is what the company excels in.

PRO-10 STRAP™ is made from remarkably high-quality PET raw materials. The manufacturing facility conforms with ISO 9001:2015 International Standards. This, combined with world-class European technology, ensures that PRO-10 STRAP™ delivers both reliable and outstanding physical and mechanical properties to ensure your load’s stability from dispatch to delivery, giving you complete peace of mind. Extrupet’s inhouse laboratory uses world-class testing equipment to ensure consistent high-quality products.

As Extrupet is continually looking for ways to reduce the environmental impact of its products and work towards a sustainable circular economy model, PRO-10 STRAP™ is fully recyclable. Postconsumer PRO-10 STRAP™s can be collected and recycled by arrangement.

PRO-10 STRAP™ is locally manufactured, from locally sourced recycled PET bottles and can be locally recycled after use. This focus on localisation leads to several commercial and cost benefits, such as:

- Lowered lead times

- Reduced minimum order quantities

- Decreased risk of exposure to port and shipping delays

- Local technical assistance and product development

- Supporting a proudly South African company

The strapping is available in all standard sizes, with the option of tailormade product development, which makes PRO-10 STRAP™ extremely versatile. It can be used in a variety of applications – from securing light loads to heavy industrial loads. PRO-10 STRAP™ can even be used to replace steel strapping in certain applications, making it safer and more cost-effective.

Technical support is available to all PRO-10 STRAP™ customers nationwide.

Nastasja Berning 083 627 3331 Caitlyn Muller 062 991 0683 Sanchay Kumar 067 106 9809 www.pro10strap.co.za

A ROLLING START for EV manufacturing plans

BY GEORGINA CROUTH

They’re

dirty and soon no one will want them. Traditional internal combustion engines (ICEs) are being phased out in South Africa’s biggest markets – Britain and the EU – and if the local automotive sector does not switch gears from ICE production to new energy vehicles (NEVs), it might as well close up shop.

Britain and the EU have set aggressive targets to phase out ICE vehicles: by 2030 neither will allow sales and imports of such vehicles and they are planning to introduce heavy carbon taxes on imports.

That’s less than eight years away and South Africa’s motor industry has not rolled a single electric vehicle (EV) off the factory floor, and only a few manufacturers, including Toyota, Mercedes-Benz and BMW, are producing hybrids, which are classified as NEVs.

The motor industry’s anxiety over the issue has been stepping up for years, as it raised concerns that the market for ICEs was getting progressively smaller while the government’s promised EV roadmap to speed up sales and production progressed at a snail’s pace.

In 2021, the dtic published the Green Paper on Advancement of New Energy Vehicles (NEVs), after extensive industry consultations and with an undertaking to issue a White Paper by the end of the year.

The Green Paper explores levels of support and infrastructure investment needed to encourage electric vehicle uptake, within the context of wider economic recovery efforts through market stimulus and supply chain support measures.

It looks at an investment and tax system to build a resilient raw material supply chain to support the country’s efforts to be a global player in NEV manufacturing as well as how to retain preferential access to major trading partners to allow the country to maintain global competitiveness and foster innovation.

There’s still no White Paper [at time of going to print].

But the Automotive Business Council, also known as Naamsa, is bullish about developments after Trade, Industry and Competition Minister Ebrahim Patel released details of a “working document” at the Presidential Climate Commission, making a “compelling” case for South Africa’s shift to NEVs. Patel insists the NEV roadmap is taking shape.

This is significant because the current market for NEVs in South Africa is almost non-existent due to lack of demand – mainly because of the eye-watering cost of these vehicles, which are imported for the premium market. Also, there are plans for carbon taxes on imports.

Patel reportedly told the commission: “We have not closed our eyes to the other options; we have looked at them and have concluded that it would be in South Africa’s best interest to move to EVs.”

Finance Minister Enoch Godongwana met the automotive sector to discuss the Treasury’s approach to NEV production.

There is a huge tax burden on all new vehicles produced in South Africa – in total, the Treasury lumps 42% in taxes on every vehicle sold, including 15% VAT, ad valorem tax (because vehicles are deemed to be luxury items) and carbon emissions taxes.

Patel recognised the need for a support framework. Not creating it would put a lot of the GDP at risk. He said the government intended to go for a production-led model, rather than a consumption led strategy advocated by some stakeholders, whereby growth in domestic demand, supported by lower tariff barriers, triggers investment.

Mike Mabasa, CEO at Naamsa said not releasing the White Paper created significant uncertainty in the market. But Naamsa is aware that government officials have been working behind the scenes on options and, based on the discussion and feedback, the organisation and others are comfortable that the department will “get us to the finish line”.

South Africa is at risk of losing export markets as major trade partners ditch gas-guzzlers. Our biggest markets are banning imports and sales of ICE vehicles within less than eight years and yet South Africa has hardly started producing new energy vehicles.

“We are hopeful that before the end of this year South Africa will certainly be able to announce very firmly the direction we are taking.”

URGENCY

Motoring expert Mark Smyth says, though there has been delay, there is now a realisation that something needs to be done urgently. Time is of the essence. South Africa’s biggest markets have already decided to ban imports of ICE vehicles within less than eight years and the average lifecycle of a new model car is between five and seven years in terms of development time.

Smyth says most manufacturers have already invested in new plants, with other plants coming remarkably close to ending their tenure and being at risk if they fail to switch quickly.

The industry has become reliant on ICE and South Africa has been able to supply raw materials such as platinum catalytic converters used

THOUGHT [ECO]NOMY

in petrol and diesel vehicles, but it has none of the raw materials that are required for switching to electric vehicles.

The manufacturers have invested significant amounts of money and resources in creating new facilities for EVs to be able to meet the demand, says Smyth, but there are already shortages worldwide, including chips and wiring harnesses from Ukraine. It is furthermore uncertain whether the South African government will stump up financial support. The automotive sector is a critical pillar of the South African economy – one of the country’s largest economic sectors by revenue with 4.3% to GDP (2.4% manufacturing and 1.9% retail). It accounts for 17.3% of manufacturing output and 18.1% of total exports. A total of 298 020 vehicles, worth R138.3-billion, and R69.2-billion in automotive parts, were exported in 2021.

At least 110 000 people are directly employed in the sector and the livelihoods of more than half-a-million more people depend on it. In October last year, Mabasa warned that by 2030 40% of all vehicle sales in Europe may be EVs, and that his association believes the number could increase to 80% by 2040.

“It is clear that we cannot ignore EVs if we want to continue doing business with Europe. It will have a huge impact on the country if we lose R201-billion in export earnings a year.

“We don’t want our main export markets to say that they are no longer interested in ICEs because of their emission targets, and that they are taking their business elsewhere. We need to remain relevant.

“The change in our industry is going to be driven by how we redefine mobility, the convergence of connectivity, electrification and changing customer needs – not just for our local consumption needs, but for other markets around the world as well.”

HARNESSING ELECTRIC VEHICLES FOR INDUSTRIAL DEVELOPMENT IN SOUTH AFRICA | Tips Research Report for Department of Trade, Industry and Competition | National Association of Automobile Manufacturers of South Africa | [2020]

The world of mobility is rapidly evolving worldwide. Technological developments are notably enabling the diversification of drivetrains, away from traditional internal combustion engines towards electric and other alternative motors.

While EVs still account for a marginal share of global vehicle sales, the shift is evident in leading markets. All forecasts point to an exponential growth of EVs in the coming decades. Heightened environmental regulations, linked to climate change mitigation and air quality improvement, have initiated the transition to cleaner forms of transportation.

Policy impetus, such as support programmes and tight environmental targets, are now driving the market globally. In addition, favourable economics, which see EVs being increasingly cheaper to own than petroleum-based cars over their lifetime, and consumer experience, linked to the connectivity, reactivity and usage experience of the vehicles, are supporting the transformation.

South Africa lags behind this global trend. EVs remain extremely marginal, be it from an offer, demand or manufacturing perspective. As heralded by government and industry alike, it is, however, the ambition of the country to rapidly enter this space. While a coherent policy environment is lacking, the country’s Green Transport Strategy sets out government’s vision to radically grow the uptake of EVs in South Africa.

As with every transition, the emergence of EVs brings disruptions, calling for the need to adequately manage the transition. In the short term, this requires supporting the development of the sector, both from a market development and manufacturing perspective, through a coherent policy framework consistent with South Africa’s domestic context.

There is a huge tax burden on all new vehicles produced in South Africa.

Opportunities for BUILDING RESILIENCE OF AFRICAN FARMING SYSTEMS

Increasing agricultural production to feed the growing world population is a key sustainability challenge and one that is most crucial for Sub-Saharan Africa where most of the expected rise in world population by 2050 will occur. It is estimated that agricultural production will need to rise by between 60% and 80% to meet the projected rise in food demand.

Therising food demand in Africa can be met by any combination of the following pathways: (1) increased importation of food; (2) increased agricultural output due to expansion of area under food production; (3) reducing food waste and loss, which currently accounts for about 30% of agricultural output; and/or (4) producing a greater quantity of agricultural output on existing farmland, ie a productivity-led approach to agricultural growth.

Sub-Saharan Africa (SSA) has achieved the highest rate of growth in agricultural production value of any region in the world since 2000, expanding by 4.3% per year in inflation-adjusted US dollars between 2000 and 2018, roughly double that of the prior three decades. The world average over the same period was 2.7% per year. Roughly 75% of SSA’s crop production growth came from the expansion of area under cultivation and only 25% from improvements in crop yield.

The region’s average cereal grain yield at the start of the 21st Century was about 1t/ha (ton per hectare), while yields averaged 3t/ha in Latin America and South and Southeast Asia, 5t/ha in China and more than 10t/ha in North America, Europe and Japan.

The main biophysical reason for SSA's poor results were due to the depletion of soil fertility on smallholder farms because they could not replenish the nutrients removed by harvest with enough mineral fertilisers and organic inputs. Empirical evidence from on-farm experiments suggests that cereal yields in SSA can increase 3t/ha using current widely available technologies. By 2019, SSA’s average cereal yields increased to about 1.5t/ha, indicating that there is scope for significant further improvements in yields.

Due to environmental concerns including biodiversity conservation and destruction of natural vegetation, continued reliance on area expansion as the main source of agricultural growth is not a viable option. In some communities, all potential farmland is already under cultivation, meaning an increasing population will further limit access to quality land for the youth, potentially triggering social conflicts.

Cropland expansion is a major cause of deforestation, which engenders climate variability by raising temperatures. For example, in Zambia, smallholder cropland expansion accounts for about 60% of the 250 000 hectares of forest lost annually. It is estimated that

92% of forest cover lost in Africa between 2001 and 2015 was due to agricultural expansion by smallholder farmers, compared to about 51% loss in forest cover at the global level during that period.

It has been projected that an additional 430-million hectares will be cleared for food production in SSA by 2060 with dire environmental and biodiversity costs. Agriculture-led habitat loss is responsible for about 80% of all threatened terrestrial birds and mammals. The Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services (IPBES) estimates that 25% of plants and animals assessed, or about one-million species, are threatened with extinction and that agriculture expansion is the most common form of land use change.

Much of the agricultural system in SSA is characterised by low-input and low-technology production, rainfed production, many small and declining farm sizes as well as underdeveloped infrastructure and markets, which interact in many ways to hamper significant yield improvement. This trend must be reversed to build resilience. Building the resilience of African farming systems is closely associated with shifting from extensification to intensification mainly by increasing crop yields including on previously fallowed land.

include: acute land scarcity; degradation of land; variable weather conditions; and challenges in creating an enabling policy environment that encourages private investment in food systems.

Increasing rural population

Africa’s rural population is projected to increase by 305-million to reach 810-million by 2050. A decade ago, the population density on the continent averaged 117 persons/km2 of cropland with the average at 172 persons/km2 in areas of high density. Almost 74% of the rural population in SSA is clustered in densely populated areas operating on 20% of arable land that receives good rainfall.

The projected increase in rural population poses two important challenges. First, it implies mounting pressure on cropland and increasing land fragmentation. Second, given the land pressures, agricultural growth will have to rely on intensification as the longterm sustainable path.

Yet, evidence indicates that at very high levels of population density, the positive relationship of agricultural growth with Boserupian land intensification breaks down. This implies that yield improvements on existing land will need to be based on sustainable intensification practices for agricultural growth.

BOSERUPIAN LAND INTENSIFICATION

CHALLENGES TO RESILIENT FARMING

The sustainability of African farming systems is limited by several factors. The main ones, many of which are related to farmer behaviour,

Economist Ester Boserup’s theory of agricultural intensification explains how human populations continue to grow despite visible environmental limits. Boserup posits that humans adopt more industrious technologies as they continue to grow. She argues that when people need to sustain themselves, they do whatever is necessary to survive.

Cropland expansion is a major cause of deforestation, which engenders climate variability by raising temperatures.

Changing climatic conditions will necessitate a change in cropping patterns across the continent.

Land degradation

Land degradation constitutes the loss of production capacity due to reduction in soil fertility and the loss of biodiversity. Africa is the second most affected by land degradation after Asia, with some 73% of land (10.5-million km2) in dry areas degraded. About 157.2-million people (38% of rural population) in SSA were living off degraded agricultural land by 2010, up from 32% in 2000.

With rising land pressures in SSA, there is risk of accelerated degradation of existing arable agricultural land and population encroachment onto degraded lands that are unsuitable for agricultural production. Loss of soil fertility is a major source of land degradation that has significantly affected crop yields in SSA. Soils in SSA have undergone nutrient depletion over the years, rendering them less fertile for agriculture and thus jeopardising the region’s food security.

Roughly 10% to 40% of smallholder fields in a wide range of countries and conditions across Africa have been found to be non-responsive to inorganic fertiliser applications. Mounting evidence indicates that smallholder resource constraints and soil fertility deficiencies need to be addressed holistically for smallholders to achieve a higher yield response to inorganic fertilisers and to increase the profitability and demand for fertilisers.

A more holistic approach to increasing soil fertility that includes increased mineral fertiliser use as well as other organic nutrient resources will improve efficiencies and profitability of fertiliser use in SSA.

Climate change

Climate change is one of the most important challenges to the resilience of agriculture globally. This is more so in developing countries that have limited resources to mitigate the effects of climate shocks. In Africa, rising temperatures and increased rainfall variability have been observed in the past and predicted into the future with negative implications for agricultural production.

Changing climatic conditions will necessitate a change in cropping patterns across the continent. It is estimated that by 2050, SSA will experience a decrease in the yield of a range of staple crops, specifically for maize (22%); millet (17%); sorghum (17%); groundnuts (18%); and cassava (8%). These predictions paint a picture of high-level

vulnerability for a large section of SSA’s smallholder farmers who are dependent on rainfed agricultural production with low levels of inputs and limited access to basic services such as improved infrastructure and information.

Human pandemics

Covid-19 put a further strain on Africa’s agricultural sector, which was already under pressure from other challenges. Given that about 70% of the African population is engaged in agriculture, the outbreak of this pandemic threatened production systems that are predominantly labour-intensive. Restrictions on movement contributed to increased food losses for highly perishable agricultural products. The situation was worsened by limited investments in cold chain systems and value addition. Transport restrictions resulted in logistical challenges including scaling down of international shipments, which impacted supply chains of farm inputs such as seed, pesticides, fertiliser and other agrochemicals. This increased the prices of inputs especially in countries that depend on imports.

The devastating effects of Covid-19 revealed the limited capacity of African farming systems to cope with pandemics and associated economic shocks. This suggests a need for building resilience to such shocks at the primary level of the food systems.

BUILDING RESILIENCE

Improved farming practices that help restore and maintain soil heath and raise productivity are necessary for building resilience. Although the exact mix of practices will differ spatially, climate-smart agriculture – broadly defined as farming practices that aim to raise productivity and household income, build adaptation capacity and resilience to climate change as well as reduce greenhouse gas – is considered an integral component.

This article is an excerpt from the Africa Agriculture Status Report A DECADE OF ACTION: BUILDING SUSTAINABLE AND RESILIENT FOOD SYSTEMS IN AFRICA | Alliance for a Green Revolution in Africa (AGRA) | [2021]

If we do not transform our food systems, we will hardly attain the Sustainable Development Goals (SDGs), particularly ending hunger. In this decade, Africa will need to chart clear pathways and identify concrete actions that can build sustainable and resilient food systems.

Food systems that can deliver sufficient and nutritious food to feed the 256-million food insecure people on the continent. Food systems that are environmentally sustainable and can reverse the trend in deforestation and soil degradation. Food systems that create dignified jobs and shared prosperity for African youth now entering the labor market at a rate of 11-million per year with only 25% getting employed.

Agriculture-led habitat loss is responsible for about 80% of all threatened terrestrial birds and mammals.

Institute, Egerton University; Maria Wanzala, African Fertilizer and Agribusiness Partnership (AFAP);

(IAPRI);

Ngoma,

Maize and Wheat Improvement Center (CIMMYT); Pedro Sanchez, University of Florida.

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