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CONTENTS
10 FROM THE EDITOR
12 EVENTS
Rub shoulders and conduct business with the high-flyers in African business
ON THE COVER
Gautrain celebrates 14 years of operational excellence. CEO Tshepo Kgobe talks about the price of the service, safety and expansion of the rail network, among other subjects.
20 LUNGILE MTIYA CONSULTING
Mtiya celebrates 18 years in human resources consulting
22 C-SQUARED
This company turns complex projects into completed solutions
26 WOMEN IN BUSINESS
How strategic planning for women can break barriers in SA financial services
29 BONISWA
Lynette Magasa, founder of the Boniswa Group, celebrates 20 years in the telecommunications industry
32 WOMEN IN BUSINESS EXTRA Funeka Montjane wins the 2024 AWCA Woman of Substance Award
36 ECONOMICS
South Africa has a joblessness crisis; fixing it will take fresh thinking to find a game-changer
41 ZAS PETROLEUM
Siyamthanda Maya saw a gap in the market for black and female-owned companies that operate with excellence
42 OIL & GAS
How African countries can design competitive tenders for the continent’s upstream markets
44 INFRASTRUCTURE
Africa needs China for its digital development—but at what price?
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CONTENTS
48
FINANCE
How to use fintech to manage costs in business and give your company the edge it needs
52
TRANSPORT
The case for free public transport: Enhancing accessibility, sustainability and community well-being
60
RENEWABLES
How innovative financing and policy support can accelerate renewable energy development in Africa
64
MANUFACTURING
China and Botswana: ‘Fong kong’ products have helped drive local manufacturing, says study
70
AGRICULTURE
Climate change is a challenge for smallscale farmers; how old and new techniques produced a superior maize harvest
74
ENTREPRENEURS
Tailored support for women who run businesses will raise SA’s job creation and economic growth prospects
78
SKILLS TRAINING
Why business needs to partner with training institutions to develop entrepreneurial skills
81
RESEARCH
Aluminium foil that can clean water: A coating that attracts and traps dangerous microbes
84
DIGITAL
Six things to consider before you start dropshipping as a business
88
HUMAN CAPITAL
Giving feedback can be daunting for new leaders—here’s how to provide it thoughtfully
92
HEALTH
Is artificial intelligence part of the solution to South Africa’s health crisis?
BE INSPIRED
Successful businesspeople can often seem glamorous. We admire their success and know that they have not attained their dizzy heights of accomplishment overnight.
Courage, tenacity and resilience in the face of obstacles was required. Many lessons were learnt along the way, risks were taken and discipline was required on the road to success.
These are the majority of the stories you will read on the page s of this edition of African Business Quarterly
The Gautrain has recently celebrated its 14-year-anniversary. In our exclusive interview with CEO Tshepo Kgobe, we find out more about how the organisation will return to its original objectiv es, the expansion plans of the rail network and many more areas of inte rest to commuters and businesspeople.
Be inspired by Lungile Mtiya, Mushudu Rulu of C-Squared and Boniswa’s Lynette Magasa, who started from humble beginnings to lead their teams to success.
Funeka Montjane takes the pioneering spirit of women in busines s further as she won The African Women Chartered Accountants’ Woman of Substance Award 2024 (p32).
Further related to women in business, a new study finds that gender parity at senior level in the South African corporate world may only be attained by 2158. The report states that thorough succession planning will be required. Read all the details on page 26.
With our business-minded president travelling abroad to seek investment and regularly in contact with business leaders on ho me soil, now is the time for all those seeking success to follow i n the footsteps of the many success stories in this edition. Patience may be required at times—and with perseverance, determination and single-mindedness, business and career goals can be achieved.
Rub shoulders and conduct business with the high-flyers in African business
2ND ANNUAL ANTICORRUPTION, ETHICS AND COMPLIANCE CONFERENCE
6 & 7 NOVEMBER
Indaba Hotel, Fourways umbonosa.co.za
About 20 experienced corruption, ethics and compliance professionals from around the country will be speaking at this year’s event. This conference offers a broad selection of topics that will allow you to focus on your most relevant needs. The conference, spanning two days, focuses on various aspects of combating corruption and promoting integrity in business and society.
PERSONAL FINANCE MANAGEMENT
7 & 8 NOVEMBER
Manhattan Hotel, Pretoria snhseminars.co.za
After completion of this seminar, attendees will able to: understand the essence of personal finance management, understand financial products, and learn budgeting basics, among many other subjects, topics and skills.
CONTRACTS AND CONTRACTOR MANAGEMENT TRAINING
2024
12 TO 14 NOVEMBER
The Lakes Hotel and Conference Centre, Benoni ndunapc.co.za
This course covers the practical aspects of commercial and contract management, including an interactive session on all aspects of a 'deal': from tendering through to administration, management of the contract, and resolution of any disputes. This two-day contracts management webinar guides participants through the fundamental principles of contract management, including the
legal basis and purpose of a contract, the structure and key contractual terms, the different types of contracts, and the management of the contract over its lifecycle.
PACKHOUSE OPTIMISATION AND AGRO-PROCESSING SUMMIT
12 & 13 NOVEMBER
Protea Hotel Cape Town
Waterfront Breakwater Lodge, Cape Town empiretraining.co.za
This event brings you the latest in packhouse/agro technology operations highly beneficial for stakeholders involved in agricultural production, post-harvest handling and exportation of fresh produce. The summit aims to pave the way to a platform that showcases the latest advancements, technologies and best practices in packhouse operations. The event amalgamates stakeholders from across the agricultural sector to discuss, demonstrate and collaborate on improving efficiency, quality and sustainability in packhouse operations.
WATER DISTRIBUTION AND MANAGEMENT CONFERENCE 2024
13 & 14 NOVEMBER
CSIR International Convention Centre, Pretoria ndunapc.co.za
The conference is the SADC region's leading conference on water and wastewater engineering solutions and strategies for an increasingly dry sub-region. It offers a unique platform that will steer and transform the management of water and sanitation sectors in African countries by offering a more comprehensive conference and solutions on Africa's sewage industry bringing together the entire value chain of water, wastewater, recycling and
sewage conveyance systems on one platform. Topics covered include: Day zero: water rationing from an engineer's eye; Groundwater: The Borehole bonanza; Sewer management for day zero; plus design and civil engineering solutions.
WOMENIN FESTIVAL 2024
14 & 15 NOVEMBER
Silo District, Cape Town wearewomenin.com
The highly anticipated first-of-its-kind, cross-sectoral WiN Festival will bring together women from a diverse range of industries for two days of transformative leadership sessions, practical workshops, immersive site visits and invaluable networking opportunities. WiN, an acronym for the Women IN Portfolio, is designed to provide women with the tools, confidence and community access needed to break barriers and thrive in their fields. Attendees will have the chance to engage in leadership sessions that encourage holistic empowerment, participate in hands-on workshops and learn from the authentic, inspirational journeys of trailblazing women.
ADVANCED SKILLS FOR MANAGEMENT ASSISTANTS AND PROFESSIONAL SECRETARIES
10 TO 13 DECEMBER
Premier Hotel, Midrand snhseminars.co.za
Management of human beings is always a complex and challenging arena, since people – unlike electrons – will not always behave the same way under similar conditions. Whatever one's role, the ability to create value and deliver change in the workplace has become a ‘must have’ in these challenging times. This course will equip trainees with practical and innovative skills, tools and techniques to effectively and efficiently manage or deal with conflict, difficult people and situations.
MAGNIFICENT MILESTONE
THE GAUTRAIN HAS RECENTLY CELEBRATED ITS 14- YEARS OF OPERATIONAL EXCELLENCE. CEO TSHEPO KGOBE TALKS SAFETY, THE EXPANSION OF SERVICES AND WHY HIS WIFE WILL NEVER FORGIVE HIM...
INTERVIEW BY ALLISTER ARENDSE
The Gautrain Management Agency (GMA) has ambitions to transform the rail transport landscape in the Gauteng Province.
This is the picture painted by Tshepo Kgobe, 49, CEO of the GMA.
The Agency celebrated its 14-year milestone with commuters by going around on trains, handing out spot prizes, free tickets, headphones and Gautrain-branded merchandise. “It was a fun event,” Kgobe says. “On the day, we also had a birthday celebration reflecting on how far we have come as an organisation and how we can achieve what we want to do.”
He says their vision for the next 14 years will bring changes.
“I always speak about mobility that empowers an economy. We have to go back to what we were set up for, as an organisation and as a project. The project was set up to facilitate economic empowerment. It was intended to jumpstart the economy of Gauteng. We have to look at our property development in and around our stations to match the needs of commuters. When I speak with young mothers, about transporting their kids to school, the answer is often the same: ‘School run is in the opposite direction. So, by the time I am done with the school run, traffic has subsided and I may as well go on the highway.’”
Kgobe is now mulling over several questions such as the possibility of having a public or private school outside the station along with supermarkets and pharmacies. He says that currently people complain because the supermarkets and pharmacies are in the opposite direction. He wants access to full amenities at stations, as this is what commuters have asked for.
“It is about integrating ourselves into the lifestyles of our commuters. We’re bringing services and amenities to the stations. We own three driver’s licence and testing centres. You can have your personal driver’s licence renewed, and GMA has been given the rights to motor vehicle registration and licensing. It is a digitised service which is cashless and effortless. A
process that could take all day will take only 15 minutes if you’ve booked,” he says.
SOCIAL SERVICE
Some customers have complained about the price fare, and Kgobe explains that ticket prices are subsidised by the government.
“If you look at how much the Gautrain costs, the user does not pay the full amount. I want to put forward a new concept called ‘The negative concession’. Transport is a social service and most governments subsidise transport. If the user paid full price, the price would be double. The government subsidises part of the Gautrain costs; the part the commuter pays covers our operating costs such as electricity and maintenance. In that respect, the project breaks even,” he says.
As with any business, there are challenges and opportunities. Kgobe says the start-up and growth of the service was good, and that before COVID-19 the system was so full that it was necessary to purchase more trains –however, cost-effectiveness became a factor.
“At some point, Treasury asks: ‘Is this affordable?’ Then you start cutting your services and your requirements to fit within your affordability framework. We will still need more trains. Our growth is held back by the number of trains we have.”
Expanding the network is “a key, critical project” for the organisation, he says. “If we have to jumpstart the economy of this country, then this is a project that needs to be done. As I say to a lot of people: If you want to jumpstart the economy of a country, then you start at its heart. This (Gauteng) is the heart of this country. This can bring the economy back to the higher single-digit or maybe even double-digit growth path.”
EXTENSION
The Gautrain project comprises 80 kilometres of rapid-rail network. The GMA as mandated by the Department of Roads and Transport are developing plans to extend the Gauteng rail network by another 150km. The route for Phase One of the proposed extensions is from Gautrain Marlboro Station to Little Falls Station through Sandton, Randburg and Cosmo City.
Feasibility studies are being conducted to determine whether the Gautrain may expand to other provinces.
“The mandate of high-speed rail does not lie with us as yet. We are looking at acquiring that mandate. We did the prefeasibility study of the Limpopo Rail Project, next we will do the southern and southeastern line, which is the KZN/Durban line. Many of these lines will take off from the extension of the Gautrain,” Kgobe says.
He reflects fondly on his many years with the Gautrain: “I’ve been here 10 years, and 19 years altogether on the project. I arrived in 2005 when Bombela was the preferred bidder and were looking for engineers. I spent a lot of time in the design and the concluding of the contract. I am one of the few people who have worked on both sides of the fence.
“Most of the people who were working on the project were from outside the country. Few people understood how a system like this would be implemented. I quickly moved on to the role of interface manager and spent a lot of time on planes, buses and trains travelling between different countries to ensure the design would be sorted out properly... that it would fit the context of where it would be built.
“There’s also contextual intelligence. When foreigners come to implement a system, they don’t know the context of the place. I still remember, 16 days after I got married, I had to get on a plane to go to Ontario, Canada. My wife has never forgiven me for that after 18 years of marriage. She still reminds me that I was running away from her after getting married. That was the job I used to do. I used to run up and down.
“This gave me a broad context of what the system was intended to do, why it is designed the way it is and why certain things are the way they are. I have not only the technical knowhow, but also the ability to understand the contract, the way it was set up and how to adjust to the times we are in. I then left and joined a consulting company. I have been in the rail industry for 26 years. I worked on the Saldanha line expansion to run the long trains. I was the project manager on that for about two-anda-half years.”
Kgobe says that six years after he left, Gautrain approached him to rejoin. “This time not from the concessionaire’s side, but from the province’s side. They were
“IT IS ABOUT INTEGRATING OURSELVES INTO THE LIFESTYLES OF OUR COMMUTERS.”
“TRANSPORT IS A
SOCIAL SERVICE AND MOST GOVERNMENTS SUBSIDISE TRANSPORT. IF THE USER PAID FULL PRICE, THE PRICE WOULD BE DOUBLE.”
looking for a head of technical services. The Technical Services Unit is the core of the business. It’s how we interact with the concessionaire, how we run the system and how we ensure everything runs the way it does. I held that position for approximately six years before becoming the COO. During that time, I became aware of what it takes to run the business as a whole. I did that for four years before being appointed as CEO. I have been through the organisation and all the core parts.”
READY
"We are in the middle of restructuring our entity to be ready to take on devolved services. The acronym GMA will stay, but we will move from being the ‘Gautrain Management Agency’ to the ‘Gauteng Management Agency’. The Gautrain will be one of the services we run. We are becoming a group of companies, including a rail operations company, which will include the Prasa service, the Limpopo service and any high-speed rail service that comes into being," says Kgobe.
“I have restructured this business three times and am busy restructuring a fourth time. If there’s one thing the past 10 years have taught me, it is that it helps to prepare. You gear yourself up to deliver the services ahead of time. We are preparing ourselves for devolution. We won’t hire in, but we will have a structure to be able to capture the operations of Metrorail.”
Kgobe lives in Midrand. He says that ever since living in England, he has never lived further than 10km from work.
“We are looking at putting Gautrain bus services in Midrand, and on odd days I may use the services because I enjoy doing that. I call it my personal guarantee of service.
“One day I was coming from a meeting in Sandton and a young man jumped on the train and recognised me. He kept looking at me and looking away, then I just smiled at him. He just said to me: ‘Are you CEO of Gautrain?’ I said: ‘Yes, I am, but don’t tell everyone.’ He said: ‘I wouldn’t have imagined you actually use the service.’ I said: ‘Yes, I do, as this is my guarantee. If I run a service I can use or that a CEO can easily use, then I run a proper service that is safe.’ He said: ‘Don’t you travel with bodyguards?’ I said: No, I have a driver, but I don’t need bodyguards
because when I am on the system, it’s safe enough for me not to worry.'”
With Kgobe representing GMA to the public, the question arose of who does the work while he is interviewed by media outlets. “The marketing and communications team is up to scratch. I have a good team, on the whole. I can afford to be on as many interviews
as necessary because I have a team who manages things in the background.
“As I jokingly say to the guys: ‘I wear the bowties and speak to the media – you guys do the work.’ I am eternally grateful for the team I have. We have just been audited by the auditor-general; we are set for our 12th clean audit, which reflects the capability of the entity as a whole.
LEAP OF
FAITH
LUNGILE MTIYA IS ESTABLISHING HERSELF AS A NAME YOU CAN TRUST
Lungile Mtiya’s journey into self-employment started in 2006 when a friend inspired her to start her own human resources consulting business.
Despite a lack of resources and the reservations of her parents, she has gone on to achieve success.
While working at McDonald’s South Africa as a labour relations consultant, a good friend of hers Geoffrey Phiri motivated her to start her own business while she was still in her late 20s.
“Knowing my parents and how traditional they were, I didn’t know how to convince them that I would be leaving a full-time permanent job with benefits to go and consult. I gave Geoffrey a copy of my ID and he went and registered the company as Lungile Mtiya and Associates.
“I asked him why he chose that name, and he said he didn’t just want names—he wanted me to identify with this. I wasn’t sure about it, but gave it a whirl,” she says.Once the company was registered, Mtiya had many challenges. She didn’t have a plan, clients or even a laptop. A short while later, she resigned from her job and decided to pursue her master's degree. When she quit, her boss asked how she would pay her bills and tried to keep her in the company.
“It didn’t go well with my parents.
It took time for them to be convinced about me leaving a job that offered pension, medical aid, a 13th cheque, shares etc.—but 18 years later, here I am, still standing.”
Mtiya says her company assists
clients with the entire human resources value chain from appointments to termination.
“We want clients to rest assured in the quality of service we provide,” she says.
She says the COVID-19 pandemic transformed the HR landscape and ushered in a new era of workplace dynamics and employee expectations.
“Change isn’t easy. The shift into remote and hybrid work models has redefined the workplace, and it is the way to go today,” she says.
“There are employers who are never going back to offices. It has worked for some and not for others. Employers must now prioritise cultivating a strong company culture and fostering engagement among the teams. In a nutshell, mental health support and flexible schedules become essential to attracting and retaining top talent.
“The road ahead is paved with challenges, but those employers who recognise the evolving landscape and respond proactively will emerge stronger and be more resilient.”
WELLNESS
Mtiya says employee wellness is important to prevent conditions such as burnout, stress, anxiety and depression.
“This is very close to my heart because I’ve seen close friends and family members being depressed at work. Wellness is a critical component of modern business success. With the rise of burnout, stress, anxiety and depression, employers have the responsibility to prioritise the well-being of their workers.
“Neglecting the employee mental health can have devastating consequences including reduced productivity, increased absenteeism, and a
negative impact on company culture. This doesn’t only affect the employee—it also affects the family members of the employee. On the other hand, investing in wellness initiatives demonstrates your commitment to your team and can yield significant results and returns,” she says.
Mtiya admits that the future is uncertain for her consulting firm; however, she feels optimistic due to the potential and opportunities that exist.
“The road ahead for us in the next three to five years is one paved with immense potential and opportunities. As a trusted firm, we are poised to capitalise on the evolving landscape and solidify our position as a leading partner for organisations seeking to optimise their most valuable asset: their people.
“In the coming years, we foresee a surge in demand for our comprehensive suite of services. Businesses now, more than ever, recognise the strategic importance of effective human capital management in driving organisational success,” she says.
Being self-employed has taught her that saving is essential. Also, she sets objectives, has a plan B and makes sure her organisation is always there for clients.
Mtiya says she is confident her company will emerge as the trusted adviser of choice for organisations seeking to unlock the full potential of their human capital.
“With our record, visionary leadership and relentless pursuit of innovation, we are poised to redefine the role of HR consulting in the years to come. We are here to stay,” she says.
See lm-consulting.co.za for more information.
C
HIP TO BE
SQUARED
- SQUARED PROJECT SOLUTIONS HAS A PROVEN TRACK RECORD OVER THE PAST 17 YEARS AND IS THE LINK BETWEEN ITS CUSTOMERS' NEEDS AND THE REALISATION THEREOF
C-Squared was established in 2007 with a mission of achieving successful project outcomes for its clients. The company aimed at providing a comprehensive project management solution that provides a single point of accountability for the management of the project. This allowed clients to focus on their core business, while having the assurance that their project needs would be realised.
In 2012, the company achieved its ISO 9001 certification and in 2016 was transformed into a 51% black youth woman owned company. Today, C-Squared has a 17-plus year's credible track record and has secured various contracts to support clients with their project-related needs—be it staff augmentation, services and/ or consulting/advisory related services—and has a current staff complement of over 80 people.
“Drawing from Einstein’s famous formula E = mc², we see ourselves (C²) as the integral link between our customers' (intangible) needs such as project objectives (energy) and the realisation thereof into something tangible, such as project deliverables (mass),” explains Mashudu Rulu, director.
“With our roots set within the nuclear energy industry, we have formulated our business processes, quality and safety standards and associated organisational cultures within an environment of complex and challenging engineering projects. Our attention to detail and process-orientated work methods (based on international standards and best practices) are thus aligned with industries where such attributes are considered important.
“Our realistic and objective planning combined with effective and efficient application of project management tools and processes by competent teams is the recipe for our success. Our organisation consists of highly qualified and experienced claims experts,
project contract managers, project control staff—such as planners, cost engineers/ quantity surveyors, quality assurance as well as administrative staff—working together to provide a comprehensive project management,” she adds.
REALISTIC PLANNING
Among other significant projects, the C-Squared project team led the initiation, planning and management of the project to demonstrate Koeberg Power Station’s ability to extend its lifespan beyond 40 years, and for which the National Nuclear Regulator just recently granted approval. It also has a team of project management professionals supporting the client with the refurbishment of Parliament following the devastating fire.
Rulu says it can be challenging when a client has unrealistic goals or expectations. “Sometimes you need to tell the client what they need to hear and not what they want to hear. We can be very creative and innovative to optimise lengthy project schedules and find
effective ways to reduce cost, but we always emphasise ‘realistic planning’ within our teams—and where we are required to make some ‘bold’ assumptions, the client is made aware of these and their associated risks.”
C-Squared’s strategic objectives over the next five years is to further expand its reach within the public sector as well as grow its private client base within energy, infrastructure and petrochemical industries within South Africa. The company also believes it has the capabilities to work with international companies to implement key projects.
“In support of our five-year plan, we have identified key initiatives in our strategic roadmap. For example, strengthening our ‘client-centric approach’, implementing new technology, continuing to invest in talent development and retention, and contributing meaningfully to corporate social responsibility,” Rulu says.
For more information, visit c-sq.co.za.
GEROTEK PROVIDES ACCREDITED TESTS SERVICES
Gerotek Test Facilities (Gerotek), a subsidiary of Armscor SCO, is an internationally accredited multi-disciplinary facility offering various ISO 17025 accredited tests. The facility primarily aims to meet South Africa’s needs in the testing of defence-related and commercial vehicles and products.
Gerotek’s well-maintained facilities are located just 20km west of Pretoria in the Gauteng Province, a 520ha site designed and built in accordance with international standards to offer unparalleled technical and service excellence to local and international markets.
WHO WE SERVE
Gerotek offers world-class ISO-accredited and certified facilities and services that can be used by both local and international clients to test and evaluate the performance of their vehicles and products. Services are designed to cater for the exact requirements of clients, to meet and exceed
SERVICE OFFERED
VEHICLE AND PRODUCT TESTING –
Gerotek offers ISO 17025 accredited testing that adhere to international standards in order to promote repeatability and accuracy of tests. Gerotek offers a broad range of Vehicle and Product Testing services including Vehicle characterisation, Endurance-, evaluation/qualification of electronic, electrical and mechanical, systems and components; Fatigue testing and analysis, Electromagnetic compatibility, Antenna testing, etc.
ADVANCED DRIVER TRAINING
Gerotek’s Advanced Driver Training focuses on safe driving practice in a safe, controlled environment under expert supervision. Training interventions on offer include Defensive-, Advanced-, High Performance-, Offensive- and 4x4 Driver Training. Gerotek Advanced Driver Training offers TETA and SASETA accredited and other non-credit bearing Driver Training courses.
FACILITIES HIRE
Gerotek’s well-maintained venue is suited for work and play. It is a unique venue for conferences, product launches, seminars, team-building activities, exhibitions, on- and off-road test tracks, an accredited shooting range, etc. Gerotek Facilities are ISO 14001 and ISO 45001 certified.Events, Recreation and Conferencing
Gerotek’s Event services are tailored to unique client needs, suited to enable corporate clients to get down to serious business in the conference venues and then have fun outdoors as they take advantage of the many recreational pursuits it offers.
RESTAURANT AND CATERING
The African-themed Sidibane Restaurant venue offers excellent catering facilities suited to any occasion, from a relaxed cocktail party or a spit braai to more formal events.
Tel: +27 (12) 371 2000/2065/2059/2052
Cel: +27 (82) 800 5932
Email: info@gerotek.co.za
Web: www.armscor.co.za
As several annual general meetings have taken place across the South African financial services sector recently, progress toward gender parity has been high on the activist shareholders’ agenda.
In its annual round-up reports, non-profit shareholder activism organisation Just Share (justshare.org.za) has so far put the leadership of ABSA, Nedbank, Sanlam and Old Mutual on the spot over a range of gender parity issues. Shareholder concerns include the lack of transparent reporting on the current numbers of women in senior leadership positions or, if reported, the low percentages achieved and the lack of strategic CEO–backed plans to address critical gender imbalances in the high echelons of their corporations.
Amid this local flurry, the World Economic Forum has released the Global Gender Gap 2024 Report (shorturl.at/QhAXH). There are several points of interest for South Africa’s corporate giants. Only one African country made it into the world’s top 10 countries closing the gender gap, and it wasn’t South Africa. While our neighbour Namibia attained the esteemed ranking of eight out of 146 countries in the world, South Africa levelled at 18 alongside Portugal and Costa Rica. In the regional breakdown, sub-Saharan Africa is third from the bottom; only southern Asia and the Middle East regions are worse when it comes to closing the gender gap.
But, perhaps, the most staggering observation of this year’s report is that if global companies continue at their current pace of transformation, we will see gender parity only in 2158.
Phryne Williams, founder of Capital Assignments (capitala.co.za), says: “Let’s be clear here: that’s five generations away. Which means the daughters, granddaughters and great-granddaughters of South Africa’s current crop of CEOs won’t live their lives out with a fair shot at the C-suite. These odds
aren’t acceptable to our younger generations. This means we can expect to see a significant amplification of the pressures to achieve gender parity, especially in financial services, which is a foundational sector when it comes to any country’s economic growth, transformation and inclusion.
“There’s a fair argument that with South Africa’s relatively high levels of education and our progressive constitution, we should at least be the country leading the way when it comes to gender parity on the African continent. But we are not. What are we doing, and perhaps more importantly, what are we not doing?”
Getting more women into leadership roles in the 21st century is about navigating the muted but still potent minefields of the lingering Old Boy’s workplace culture. Not just in South Africa, but across the world, there is a real shortage of women with both the willingness and experience to step up into leadership roles. Pervasive glass ceilings and holding the simplest of family aspirations as a woman have diverted otherwise top female talent into professional rather than operational roles in corporations.
According to Williams, strategic succession planning is an overlooked tool when it comes to achieving gender parity. She says, “Developing a strong leadership pipeline that makes sure you have at least one unique female candidate for each key role in your organisation is where you start. It’s the basics.
THE TRAILBLAZER
LYNETTE MAGASA, FOUNDER OF THE BONISWA GROUP, CELEBRATES 20 YEARS IN THE TELECOMMUNICATIONS INDUSTRY
Lynette Magasa is the founder of the Boniswa Group, comprising three business units: Manufacturing, TowerCo and Boniswa Corporate Solutions—Telecommunication Services.
This year, she marks 20 years in the telecommunications industry.
With over 20 years of working experience in the engineering and information technology sector, Magasa says that being a woman in a largely male-dominated industry has never held her back.
She started her career at Denel in 1998 as a receptionist, but today is the CEO of Boniswa, which employs more than 250 people. Known for being passionate and authentic, she constantly pushes herself to the limit.
When Magasa founded Boniswa Corporate Solutions with no capital investment or background knowledge of the engineering industry, she persevered with her passion for the sector and her belief in the strategic objective behind the foundation of her company.
She started off as an operations executive, taking on the responsibilities of network rollout for the major cellular operations in South Africa, from GSM infrastructure to wireless and microwave backbones. Juggling life as an entrepreneur and mother, and being a student does not faze Magasa. She also has a master’s degree in Information Technology from TUT and an MBA from Regenesys University.
She firmly believes that “given a chance, a woman can lead like men.”
She always carries her success and the awards she has achieved as her spear of pride. She believes her successes in leading a significant organisation will inspire all women from every race and creed in South Africa. Her passion drives her and she gives much credit to her employees.
INFLUENTIAL
Magasa is one of the most respected and influential women in the South African telecommunications small, medium and micro enterprise (SME) space.
With its excellent industry adaptation and great services, Boniswa was recognised as a “Transformation Champion” at the Top Empowerment Awards 2019 and the “Technology Company of The Year” Award at
Africa Tech Week in 2023. Under Magasa's leadership, Boniswa has worked in more than 5 000 cellular sites in South Africa, bringing the network to the community. She has made outstanding contributions to the South African economy, and she has participated in several international events organised by the United Nations and the World Trade Organisation that addressed global SME challenges. She is the author of Entrepreneurship Start-up Guide and is a mother to three beautiful children: Tshiamo, Dintle and Kagiso.
Magasa reflects on the challenges she has faced and what she has learnt: “The journey has been marked by overcoming significant challenges—from funding constraints to competition with more extensive market players, navigating complex regulations, and talent acquisition and retention.”
However, with steadfast determination and strategic collaborations, Boniswa has emerged as a trailblazer.
VALUE
Magasa says her leadership style depends on the situation and that her most dominant style is collaborative.
“I work hand in hand with my team. Consequently, Boniswa is run as a co-
operative, whereby every member of staff understands the value they bring to the organisation. All my employees have access to my office, and my door is always open.”
At Boniswa, innovation and continuous improvement are prioritised.
“We constantly stay updated with the latest industry trends and technological advancements to ensure our clients benefit from cutting-edge solutions. We continue to strive for excellence. We won the Technology Award for 2023 by Sentech. We strongly believe in the culture of learning.”
Magasa continues to attend Harvard Business School to keep up to date with change. She is also the author of the entrepreneurship journey manual.
INSPIRING
Magasa is passionate about motivating other women to believe in themselves.
She feels her success in leading a significant organisation will be a source of inspiration to many women from every race and creed in Africa and beyond.
“Given a chance, a woman can lead like men.”
Magasa has not neglected her social responsibility. She has been involved in providing bursaries to needy TUT students. Boniswa employs young graduates to allow them to learn directly from experienced colleagues in their field.
Considering the road ahead, Magasa says her organisation is seizing the opportunities presented by the consolidation and greater competition in the telecoms sector. “We are committed to playing a pivotal role in reshaping the industry and bridging the digital divide between rural and urban areas.”
Her vision is to create meaningful employment. In addition, she wants to grow the company globally and have a Boniswa brand footprint across different continents. As a continuity strategy, Boniswa's longterm vision is to develop the company from an SME to a corporate group.
Actively developing your leadership pipeline, male and female, is essential, and should be strategic. Implementing re-entry development programmes for women who paused their careers and have now returned to the workforce will obviously expand your leadership talent pool.
“But financial services companies also need to know how to retain the female talent in their leadership pipeline. This is a small talent pool in high demand, and you are competing not just locally but globally for these individuals. So, what are you doing to make sure your female leadership talent will stay with you through the development years? How are you closing the gender pay gap in your company? What spaces have you created for women leaders to mentor the next generation of women leaders? What shareholding or other financial incentives have you offered to your next-generation leaders?”
includes strategies to define career pathways, involving junior and mid-level female employees in special projects, providing coaches and mentors as well as organisational forums that provide platforms for women to unpack their
“Getting more women into leadership roles in the 21st century is about navigating the muted but still potent minefields of the lingering Old Boy’s workplace culture.“
This highlights that financial services companies are facing challenges on two fronts: building female talent internally, and attracting external top female talent. In both cases, there is also the struggle to retain female talent amid fierce competition from both local competitors and global players.
Actively developing internal female talent
unique corporate experiences and challenges. One of the pitfalls of developing internal talent for leadership roles that must be addressed is the widening of the gender pay gap as women advance internally into leadership roles.
Competing for new female leaders externally places emphasis on the capacity of the organisation to offer a tempting yet wholly
authentic employee value proposition (EVP). Williams points out that, too often, companies don’t put their best foot forward when engaging and interviewing potential candidates. “Today’s female candidates for top roles who have competing job offers on the table care a lot about whether a company walks its talk when it comes to gender parity, and they care about entering a work environment that is supportive of them, particularly as female employees and leaders.
“Flexible working conditions—including the option for hybrid work, family-friendly policies and concern for work-life balance and employee well-being—are now hygiene factors and will not differentiate your EVP. No matter what you say about your company’s commitment to diversity and inclusion, what counts is that candidates see this diversity in the panels you put together for their interviewing process. Expect that they will be interested in the gender makeup of your board.
“So, what we are seeing in the job market is that strong female leadership talent has the luxury of being discerning, and candidates commonly have decision-making criteria that relate to transformation.”
As a shareholder, Just Share has highlighted recently in South Africa that banks and other financial services companies need to embrace transparency when it comes to their gender parity targets.
Williams concludes, “What are your goals and how are you tracking progress toward them? Are you using your succession planning strategically as a tool to drive diversity and inclusion? After all, the next-generation of female talent won’t be inspired to believe in you on a 2158 timeline.”
IDENTIFY,
NURTURE, LEAD
FUNEKA MONTJANE BESTOWED THE 2024 AWCA WOMAN OF SUBSTANCE AWARD
The African Women Chartered Accountants (AWCA) recently conferred Funeka Montjane CA(SA), the CEO for Personal and Private Banking at Standard Bank, with the prestigious 2024 Woman of Substance Award. This accolade recognised her unwavering commitment to empowering women and fostering inclusive growth in the corporate and banking sectors.
Previous recipients of this award include the first black female CA in South Africa Nonkululeko Gobodo, Gloria Serobe, Futhi Mtoba, Dr Brigalia Bam, Dr Phumzile Mlambo-Ngcuka, Dr Judy Dlamini and Irene Charnley, among others.
The Woman of Substance Award celebrates female leaders who have made significant contributions to the chartered accounting profession and have uplifted others as they rise in the business, social and economic landscapes of South Africa. It was presented to Montjane at the 2024 AWCA fundraising banquet. The event celebrates and recognises the partners and stakeholders who have been instrumental in supporting the organisation and the accounting profession over the years, simultaneously raising funds for the AWCA Bursary Fund.
The bursary fund helps provide financial support for women and girls who aspire to be chartered accountants and are registered with qualified higher institutions of learning in the country. The bursary is a critical mechanism for helping to address the shortage of qualified African (Black, Indian and Coloured) women CAs.
Many women lack funding after completing their undergraduate degrees, and without a postgraduate degree, prospective CA(SA) professionals can’t complete their training contracts, write board exams or ultimately qualify as a CA(SA). The
bursary unlocks holistic support for recipients, such as tuition and access to AWCA mentors and Student Chapters.
Upon receiving the award, Montjane expressed her gratitude and highlighted the importance of advancing women in the corporate space. “I am deeply honoured to receive the 2024 Woman of Substance Award. This recognition is not just for me but for all the women who are walking this journey. The journey was challenging, but I had a supportive environment, from my grandmother to my first manager who helped me along the way.
“This achievement is a reminder that we must continue to create supportive
“I am deeply honoured to receive the 2024 Woman of Substance Award. This recognition is not just for me but for all the women who are walking this journey.”
and enabling environments where CAs can thrive and reach their full potential, regardless of gender. By working together, we can build a future where women are empowered to lead, drive change and make a significant impact.”
Montjane’s journey toward becoming a CA(SA) began when she was in Grade 7 when she read a news article that stated CA(SA) professionals earned R10 000 a month. At the time, her grandmother earned a monthly salary of R100. Her journey was filled with challenges, but she overcame them. When she made the decision to pursue chartered accounting, there was only one black female CA(SA).
She was also enrolled in a school where one or two passed matric, and she was not good in mathematics—a key subject to studying accounting. She credits her grandmother for not allowing her to drop mathematics when she struggled with the subject. Instead, she built a supportive environment and got her a tutor who helped her get an A, allowing her to study at university.
AWCA president Buhle Hanise said: “Funeka exemplifies the essence of the Woman of Substance Award. Her dedication to uplifting others and her remarkable contributions to the
“Her dedication to uplifting others and her remarkable contributions to the business and banking sectors are commendable.”
business and banking sectors are commendable.
“This award is crucial in building solidarity among women and helping to highlight the importance of fostering a sustainable pipeline of professional African women CAs. By empowering excellence and inspiring change in her own career and the banking industry at large, Funeka embodies the AWCA’s mission to identify, nurture and lead. Her achievements reflect the broader impact of the AWCA in driving excellence and change within the profession and society at large.”
Montjane has an extensive and accomplished career in the audit and banking sectors spanning over 23 years. She has BCom (Accounting) and BCom (Accounting) (Honours) degrees from
the University of the Witwatersrand, a Chartered Accountant qualification, and a Master of Commerce degree from the University of Johannesburg.
Before joining Standard Bank, she worked at PricewaterhouseCoopers for seven years and was made partner in 2005. She was selected as a member of the World Economic Forum Young Global Leaders class of 2015 and was named Businesswoman of the Year in the Corporate Category by the Businesswomen’s Association of South Africa in 2016. In 2020, she received the Dignitas Award from the University of Johannesburg for her contributions to women empowerment and community upliftment. Recently, she joined the Board of Stanbic IBTC Bank PLC Nigeria as a non-executive director.
OTHER WINNERS FROM THE AWCA RECOGNITION AWARDS EVENING INCLUDED:
• Private Sector CEO: Albertina Kekana, Royal Bafokeng Holdings
• Public Sector CFO: Shoki Ralebepa, SA Reserve Bank
• Private Sector CFO: Mary-Anne Musekiwa, Coronation Fund Managers
• Audit Partner: Tumellano Lavhengwa, Deloitte
• Tax Partner: Linda Peter, BDO
• Leading Entrepreneur: Zanele Maduna, No-Valo
• Trailblazer in Academia: Lonah Mbhalati, University of Johannesburg
SOUTH AFRICA HAS A JOBLESSNESS CRISIS; FIXING IT WILL TAKE FRESH THINKING TO FIND A GAME - CHANGER
ECONOMY
Everyone agrees that solving the unemployment problem in South Africa is the number-one priority for economic policy for the new government—as it has been for all governments since 1994. What is less clear, and highly contested, is what should be done to solve this problem.
It’s worth starting by acknowledging that the problem is complex and there are no easy solutions. It is important to understand why unemployment is such a vexed problem, why it has remained a feature of the postapartheid labour market, why some parts of the problem are found in other countries, and why others are unique to South Africa. And how solving unemployment may be related to wider economic policies.
But address it South Africa must—because it’s the primary driver of inequality, a root cause of other social and economic problems, and a massive waste of human resources.
The official unemployment rate is 32.9%. If discouraged workers are included (people who have given up trying to find jobs), the unemployment rate is 41.9%. For young people, aged 15–24, the unemployment rate is 59.7%. If discouraged workers are included, about 11.2 million South Africans are unemployed.
SERIOUSLY TACKLING UNEMPLOYMENT REQUIRES BEING
CLEAR ABOUT A FEW THINGS.
First, it’s important to understand why unemployment in South Africa is so high. There are two main sets of issues: some global (such as changing employment patterns), and some specific to South Africa (such as the legacy left by the country’s apartheid past).
What I conclude is that addressing South Africa’s unemployment challenge requires some new thinking and an acknowledgement that policies that seek to deregulate the labour market are no solution.
South Africa requires policies to increase the demand for labour; which means finding a new growth trajectory that is employment-intensive. These could involve much greater public investment in rural
areas and townships—addressing backlogs in infrastructure like transport, which is important for linking people to markets—as well as promoting the informal economy and small businesses.
The country also needs a game-changer to get the economy onto a labour-absorbing path. One possibility is fighting climate change. South Africa has a high natural advantage in the production of solar and wind renewable energy. More investment in renewables— and the related manufacturing and services activities that go into the production of clean energy and which require clean energy as a key input—has the potential to shift the economy in a way that generates employment.
THE DRIVERS OF UNEMPLOYMENT
TWO GLOBAL ISSUES DRIVING UNEMPLOYMENT ARE IMPORTANT.
First, across the world, for much of the last three decades, technology has been changing at a rapid pace: computer technologies were followed by digital technologies and then artificial intelligence.
Technological change has had a significant impact on jobs. In net terms, it has reduced the number of jobs and wages, especially for low-skill occupations, and increased incomes for high-skill occupations.
Second, China’s incorporation into global production systems has had large effects on employment across the world. Harvard economist Richard Freeman has called this the “great doubling” of the global labour force (shorturl.at/a2dg7). The result has been that production has moved to China, and reduced employment elsewhere.
The key South African issues are also twofold.
First is the distorting impact of apartheid on the labour system. There are three effects worth mentioning:
One of the most deleterious effects was that most black women were not allowed to live in the cities, and therefore could not work for wages. Under apartheid, most of these women were classified as “economically inactive” and therefore not in the labour market. With the end of apartheid, there was a large increase in women migrating into the urban cities. In the
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post-apartheid period, these women were enumerated as economically active and, since most were unable to find work, they swelled the ranks of workers classified as unemployed. This led to a large increase in the official unemployment rate, although many of those women were unemployed in the previous period—they were just not classified as such. Daniela Casale and Dori Posel have done excellent research on this issue (shorturl.at/7UELh).
As highlighted by the South African sociologist Harold Wolpe (shorturl.at/ hv12M), the homelands and rural areas served essentially as spaces for women, children and retired men to live in, without any serious productive economic activity in these areas. Homelands were rural areas the apartheid government demarcated for black people to live in. This stripped them of any rights to live in, or work without a special pass in, what the government declared were “whites only” areas that made up 87% of the country.
The apartheid state crushed much of the entrepreneurial activity among black South Africans to force African men to migrate to work in the mining industry. This was researched exhaustively by, among others, the South African historian Colin Bundy (shorturl.at/0Zr2a).
The second national issue affecting the job
market is that while employment has risen and new jobs have been created, the size of the labour force is increasing at a faster rate than the net number of new jobs created
WHAT WON’T WORK SO WHAT’S THE SOLUTION?
One argument put forward is that the South African labour market is over-regulated. That there is too much protection for workers, and wage levels are too high for employers.
An additional argument is that workers’ skills do not match what is needed by employers.
All of these see the problem on the supply side of the labour market. That is, unemployment is caused by workers expecting a wage that is too high, not having the right skills, or expecting too much protection.
Proponents of this view argue that reducing protection and reducing wages will allow the labour market to clear and unemployment will fall.
THERE ARE A NUMBER OF REASONS SUCH A STRATEGY WILL NOT WORK
First, it ignores the country’s history and trends. Second, depressing wages is not politically feasible and will lead to
growing inequality in South Africa. Third, it underplays the key issue: The economy, even when it is growing, is generating fewer jobs than the increase in the labour force.
SOME SOLUTIONS
So, what may be a policy package that could address unemployment in South Africa? The economy has to shift to a growth pattern that increases the demand for labour. Some elements of this would include:
Much greater public investment in rural areas and townships, to generate better economic integration in these areas, and boost the demand for labour. Examples of this include investment in transport systems, telecommunications, and systems that promote exports.
More accommodating macro-economic policies—essentially, public expenditure and taxation and monetary policy such as interest rate policies—that promote employment-intensive growth. South Africa’s monetary policies have focused on reducing inflation, through high interest rates. High interest rates may attract capital to South Africa, but they do very little to encourage firms to invest in production and related activity, which creates jobs. The country’s macro policies should be focused more on promoting investment by firms to generate employment. This is not to suggest inflation control is not important, but a better focus on employment is also needed.
South Africa’s informal economy is small compared to its peers. Policies for greater public investment in marginalised areas will boost informal work opportunities.
There should be more investment in renewables and related production that requires clean energy, to take advantage of the country’s high natural advantages. There are two components to this: manufacturing all the inputs for rolling out renewables and also using clean energy to produce goods that are classified as 'green goods'.
This is the game-changer that could change the trajectory of South Africa’s economy.
Imraan Valodia
Director: Southern Centre for Inequality Studies University of the Witwatersrand
THE PIONEER
ZAS PETROLEUM FOUNDING DIRECTOR SIYAMTHANDA MAYA IS THE PERSONIFICATION OF DILIGENCE, DETERMINATION AND SKILL
ZAS Petroleum was established in 2015 with the main focus of importation and exportation of crude oil and refined products in South Africa. Founder Siyamthanda Maya saw a gap in the market for credible black and female-owned companies with a high degree of operational excellence.
Maya is a seasoned business professional in the energy sector, with extensive experience in both utility management as well as in the oil & gas sector. She is the personification of diligence, determination and skill—attributes that have contributed to ZAS Petroleum’s current performance standards. She has successfully founded and run two energy entities and led multibillion-rand infrastructural programmes. A big believer in credible skills transfer and development, she is a supporter of women's skills development and community enablement.
Maya holds a BTech in Electrical Engineering and an MBA from the University of Stellenbosch Business School.
Maya ascribes ZAS’s success to the fact that the company has built strategic partnerships with reputable energy leaders globally. “We pride ourselves in swift transactions backed by service excellence and a high degree of professionalism,” she says.
Furthermore, the group is led by a dynamic team “with over 45 years of energy industry
experience”. “Our approach to business is based on integrity, trust, accountability and customer centricity,” Maya adds.
CARE
Sustainability is at the core of how ZAS runs its business. “Each task performed is done with duty of care to the people and the environment we operate in. We are passionate about education, which is why ZAS’s board has adopted and supports AP Madubula Foundation in the Eastern Cape. This foundation is focused on
supporting rural kids through their education journey by providing technological, financial and career support,” Maya says.
ZAS’s main focus for the next five years is to expand its asset base to be better positioned to ensure security of supply to the Southern African Development Community.
“We aim to expand our green energy division to assist fossil fuel-based entities with their transition and optimal mix with green clean energy,” Maya says.
NEW INVESTORS
HOW AFRICAN COUNTRIES CAN DESIGN COMPETITIVE TENDERS FOR THE CONTINENT’S UPSTREAM MARKETS
Africa’s upstream sector is not short on opportunity, with oil and gas tenders being launched for onshore, deepwater, greenfield and brownfield acreage in Angola, Nigeria, Mozambique, Kenya, Tanzania and Liberia, among other markets.
Yet, for African countries to better compete for global exploration capital, their respective licensing processes, frameworks and terms must encourage new investment.
CREATING STABLE REGULATORY FRAMEWORKS
The establishment of transparent and stable regulatory frameworks is crucial for attracting upstream investors, who are more likely to commit capital when they have clarity on the legal and regulatory environment. This includes ensuring laws governing oil and gas exploration, production and taxation are welldefined and consistently applied, as well as establishing independent regulatory bodies that can enforce regulations impartially.
Angola—which will launch a 10-block limited public tender in 2025 (tinyurl. com/3bm8bvvd)—has been recognised for both. Its Petroleum Activities Law provides investors with a clear understanding of their obligations and rights, while its National Agency of Oil, Gas & Biofuels independently oversees the awarding of licences and has gained the trust of upstream investors.
Following overwhelming interest in its prolific offshore Orange Basin, Namibia adopted a more streamlined licensing system at the start of this year (tinyurl.com/36wcmkzh), restricting open-door negotiation to a twomonth period to eliminate bottlenecks and accelerate the evaluation of bids.
Similarly, Liberia opened a direct negotiation licensing round in August this year (tinyurl. com/mte3rvkx), featuring 29 offshore blocks in the Liberia and Harper basins and supported by over 26 000 square kilometres of 3D data.
Ensuring transparent bidding processes
To enhance the attractiveness of oil and gas tenders, bidding processes must be competitive and transparent. A wellstructured, open bidding process can build
investor confidence and encourage participation from a broad range of companies, allowing them to compete on equal terms.
Nigeria's Marginal Fields Bid Round in 2020 was one of the most transparent in the country’s history (tinyurl.com/35f39d4j), attracting a diverse range of bidders, with over 600 companies registering to participate and licences awarded to Nigerian companies including Matrix Energy, SunTrust Oil, Shoreline Natural Resources, Seplat Petroleum Development Company and Green Energy International.
As the country launched its latest bidding round in April 2024—placing 36 blocks on offer across the onshore Niger Delta, Continental Shelf and deep offshore for a period of nine months—the Nigerian Upstream Petroleum Regulatory Commission has promised transparent evaluation processes and competitive entry fees, specifically inviting the participation of indigenous companies with sufficient technical expertise and financial resources.
To ensure transparent and efficient tenders, Kenya utilises e-bidding platforms for various procurement processes, including in the oil & gas sector, which electronically manage the entire process: from the advertisement of tenders to the submission and evaluation of bids. The country’s Ministry of Energy and Petroleum plans to launch its first licensing round in late 2024 or early 2025, offering 45 onshore and offshore blocks (tinyurl.com/yc7daxcn).
OFFERING COMPETITIVE FISCAL TERMS
African licensing rounds should establish competitive fiscal terms that encourage investment and adapt to changing market conditions, while providing contractual stability and safeguarding government revenues.
Angola's reforms to its fiscal regime, including reduced taxes and royalties for marginal fields, have made the development of marginal fields more economically viable and led to the firsttime inclusion of five marginal fields in the 2025 bid round.
Meanwhile, incentives for high-risk or frontier areas such as tax breaks and reduced royalties can catalyse investment in emerging markets. Uganda's fiscal regime—which includes stabilisation clauses that protect oil companies from adverse regulatory changes, as well as joint
“To enhance the attractiveness of oil and gas tenders, bidding processes must be competitive and transparent.”
and several liability to ensure tax recovery—have attracted major investors including TotalEnergies and China National Offshore Oil Corporation to the Albertine Graben, a highly prospective yet frontier basin. The regime also features progressive royalty structures that increase with production, ensuring revenue responsiveness to market conditions.
Contract stability is another key incentive. Mozambique—which is preparing the launch of its seventh licensing round in 2025 (tinyurl.com/ bdhnpkdc)—has been able to attract largescale upstream investment, in part due to its ability to secure long-term liquefied natural gas offtake agreements.
PRIORITISING LOCAL CONTENT AND CAPACITY BUILDING
Designing realistic local content policies that gradually increase over time, while being beneficial to the host country, is also critical to attracting upstream investment at an early stage.
Following its world-class offshore discoveries, Namibia has fast-tracked the development of its Namibian Content Policy, which is nearing finalisation, focusing on facilitating market access and financing for Namibians.
Tanzania has also prioritised the development of comprehensive local content requirements— expected to drive interest in its fifth oil and gas licensing round to be launched later this year— as well as encourage joint ventures between international companies and local firms to build local expertise. The Tanzania Petroleum Development Corporation is collaborating with Indonesia’s state-owned Pertamina (tinyurl. com/2t2675p4) to provide human resource training and upskilling, following Pertamina’s interest in Tanzania’s upstream oil and gas exploration scene.
Energy Capital & Power
INFRASTRUCTURE FEATURE
STAYING CONNECTED
AFRICA NEEDS CHINA FOR ITS DIGITAL DEVELOPMENT BUT AT WHAT PRICE?
Digital technologies have many potential benefits for people in African countries. They can support the delivery of healthcare services, promote access to education and lifelong learning, and enhance financial inclusion.
But there are obstacles to realising these benefits. The backbone infrastructure needed to connect communities is missing in places. Technology and finance are lacking, too.
In 2023, only 83% of the population (shorturl. at/W13JR) of sub-Saharan Africa was covered by at least a 3G mobile network. In all other regions, the coverage was more than 95%.
In the same year, less than half of Africa’s population had an active mobile broadband subscription, lagging behind Arab states (75%) and the Asia-Pacific region (88%). Therefore, Africans made up a substantial share of the estimated 2.6 billion people globally who remained offline in 2023.
A key partner in Africa in unclogging this bottleneck is China. Several African countries depend on China as their main technology provider and sponsor of large digital infrastructural projects.
This relationship is the subject of a study (shorturl.at/CjLRD) I published recently. The study showed that at least 38 countries worked closely with Chinese companies to advance their domestic fibre-optic network and data centre infrastructure or their technological know-how.
China’s involvement was critical as African countries made great strides in digital development. Despite the persisting digital divide between Africa and other regions, 3G network coverage increased from 22% to 83% between 2010 and 2023. Active mobile broadband subscriptions increased from less than 2% in 2010 to 48% in 2023.
For governments, however, there is a risk that foreign-driven digital development will keep existing dependence structures in place.
REASONS FOR DEPENDENCE ON FOREIGN TECHNOLOGY AND FINANCE
The global market for information and communication technology (ICT) infrastructure is controlled by a handful of producers. For
instance, the main suppliers of fibre-optic cables, a network component that enables high-speed Internet, are China-based Huawei (www.huawei.com) and ZTE (www.zte.com.cn), and the Swedish company Ericsson (www.ericsson.com).
Many African countries, with limited internal revenues, can’t afford these network components. Infrastructure investments depend on foreign finance including concessional loans, commercial credits or public-private partnerships. These may also influence a state’s choice of infrastructure provider.
The African continent’s terrain adds to the technological and financial difficulties. Vast lands and challenging topographies make the rollout of infrastructure very expensive. Private investors avoid sparsely populated areas because it doesn’t pay them to deliver a service there.
Landlocked states depend on the infrastructure and goodwill of coastal countries to connect to international fibreoptic landing stations
A FULL-PACKAGE SOLUTION
It is sometimes assumed that African leaders choose Chinese providers because they offer the cheapest technology. Anecdotal evidence suggests otherwise (shorturl.at/5Ry1k). Chinese contractors are attractive partners because they can offer full-package solutions that include finance.
Under the so-called EPC+F (Engineer, Procure, Construct + Fund/Finance) scheme, Chinese companies like Huawei and ZTE oversee the engineering, procurement and construction while Chinese banks provide state-backed finance. Angola, Uganda and Zambia are just some of the countries that seem to have benefited from this type of deal. Allround solutions like this appeal to African countries.
WHAT IS IN IT FOR CHINA?
As part of its 'go global' strategy (shorturl. at/WDcKU), the Chinese government encourages Chinese companies to invest and operate overseas. The government offers financial backing and expects
companies to raise the global competitiveness of Chinese products and the national economy.
In the long term, Beijing seeks to establish and promote Chinese digital standards and norms. Research partnerships and training opportunities expose a growing number of students to Chinese technology. The Chinese government’s expectation is that mobile applications and startups in Africa will increasingly reflect Beijing’s technological and ideological principles. That includes China’s interpretation of human rights, data privacy and freedom of speech.
This aligns with the vision of China’s 'Digital Silk Road' (shorturl.at/phh6y), which complements its Belt and Road Initiative, creating new trade routes.
In the digital realm, the goal is technological primacy and greater autonomy from western suppliers. The government is striving for a more Sino-centric global digital order (tinyurl. com/nvrmfyp9). Infrastructure investments and training partnerships in African countries offer a starting point.
LONG-TERM IMPLICATIONS
From a technological perspective, over-reliance on a single infrastructure supplier makes the client state more vulnerable. When a customer depends heavily on a particular supplier, it’s difficult and costly to switch to a different provider. African countries could become locked into the Chinese digital ecosystem.
Researchers like Arthur Gwagwa from the Ethics Institute at Utrecht University (Netherlands) believe that China’s export of critical infrastructure components will enable military and industrial espionage (tinyurl. com/5xwmpuwf). These claims assert that
Chinese-made equipment is designed in a way that could facilitate cyberattacks.
Human Rights Watch, an international nongovernmental organisation that conducts research and advocacy on human rights, has raised concerns (tinyurl.com/4u983kuz) that Chinese infrastructure increases the risk of technology-enabled authoritarianism. In particular, Huawei has been accused of colluding with governments to spy on political opponents in Uganda and Zambia (tinyurl. com/44jzceyk). Huawei has denied the allegations.
THE WAY FORWARD
Chinese involvement provides a rapid path to digital progress for African nations. It also exposes African states to the risk of long-term dependence. The remedy is to diversify infrastructure supply, training opportunities and partnerships.
There is also a need to call for interoperability in international forums such as the International Telecommunications Union (www.itu.int), a United Nations agency responsible for issues related to ICTs. Interoperability allows a product or system to interact with other products and systems. It means clients can buy technological components from different providers and switch to other technological solutions. It favours market competition and higher quality solutions by preventing users from being locked in to one vendor.
Finally, in the long term, African countries should produce their own infrastructure and become less dependent.
Stephanie Arnold PhD Fellow UNU-CRIS
CONTROL THE CASH FLOW
HOW TO USE FINTECH TO MANAGE COSTS IN BUSINESS AND GIVE YOUR COMPANY THE EDGE IT NEEDS
We are probably preaching to the choir here, but keeping track of every last cent that moves through your business is the only way to guarantee long-term growth and success. If you don't know where the financial river (or trickle) is going, how can you control and manage the flow?
Enter fintech: a game-changer when it comes to cost management and staying on top of your finances. Financial technology, or fintech, is the term used to describe any technology or software that tries to improve and automate the delivery and use of financial services. Everyday examples include online banking, invoicing, mobile payment apps and more.
With innovative cloud-based solutions and automation, fintech is reshaping how companies handle their finances, offering efficiencies like never before.
Let’s see how finance meets technology, and how fintech can be your cost-saving best friend.
FINTECH AUTOMATION
Fintech has revolutionised cost management in financial operations by streamlining processes and reducing the reliance on manual, peoplecentric input. This has several advantages:
AUTOMATION OF FINANCIAL PROCESSES
The best modern financial software packages automate recurring financial processes such as account reconciliation,
invoicing and expense management. By eliminating manual data entry and repetitive tasks, you save significant time and valuable resources, leading to overall cost reductions as you deploy your workforce more effectively.
EFFICIENT TRANSACTION PROCESSING
Cloud-based fintech platforms offer faster and more efficient transaction processing compared to traditional banking or financial systems. Through technologies like real-time payment systems, transactions can be completed swiftly and securely, reducing processing costs and enhancing overall efficiency.
LOWER TRANSACTION FEES
By leveraging digital platforms and cuttingedge technologies, fintech providers can offer cost-effective solutions for payments, transfers
and currency exchange, resulting in savings for businesses and consumers alike.
REDUCED OVERHEAD COSTS
Fintech solutions minimise the need for physical infrastructure such as bank branches and administrative offices.
SCALABLE SOLUTIONS
Fintech solutions are highly scalable, allowing you to adapt to your business's changing demand without having to invest upfront in infrastructure or extra manpower. Whether it's processing a few transactions or managing large volumes of data, fintech platforms can efficiently scale up or down as needed, optimising costs according to business requirements.
The versatility of plug-and-play options with readily available updates should also not be underestimated.
Overall, fintech can play a pivotal role in the cost management aspect of your business by allowing you to automate financial processes while minimising overhead costs associated with manual operations and physical infrastructure.
As the world continues to embrace digital transformation, fintech will continue to drive efficiency and innovation in cost management across various departments—not least of which is budgeting and financial forecasting.
HOW AUTOMATIC BUDGETING AND FINANCIAL FORECASTING CAN SAVE YOU MONEY
Cloud-based fintech tools are all about streamlining transactions, automating
processes and giving you actionable access to real-time access to live data. This makes all the difference when it comes to big-picture budgeting and financial forecasting. By harnessing the power of real-time data and predictive analytics, these tools provide you with unparalleled insights that enhance budgeting accuracy and empower you and your finance team to plan more effectively for the future.
With the increased sophistication of artificial intelligence, budgeting and forecasting will become even more advanced when paired with fintech platforms—an exciting new development in this field. Knowing you have access to up-to-the-minute financial information with sophisticated algorithms working in your favour allows you to make data-driven decisions that rely on real numbers, not a hunch.
Your software system should also be able to identify trends and anticipate future outcomes based on historical data. With great precision, as the saying goes, comes great power.
But wait, there's more! Automated forecasting tools play a pivotal role in adjusting budgets dynamically in response to any changes in cash flowing on or out so that you can adapt quickly to evolving circumstances, optimise your available resource allocation, and mitigate risk in the long run. In essence, fintech tools not only revolutionise how budgets are created and managed but also empower you to navigate uncertainty and seize opportunities that may just give you the edge you need.
The rise of the fintech industry and cloud technology has changed the way in which we do business. Gone are the days of disjointed and disconnected technology platforms that are unable to talk to each other and lack real-time reporting capabilities.
Ensuring organisations utilise the latest cloud technology in an integrated environment results in automated systems, faster client delivery and improved data transparency and accuracy.
Outsourced CFO www.ocfo.com
URBAN IN THE 21ST
MOBILITY CENTURY
THE CASE FOR FREE PUBLIC TRANSPORT: ENHANCING ACCESSIBILITY, SUSTAINABILITY AND COMMUNITY WELL - BEING
Public transportation systems are vital components of urban infrastructure, providing essential mobility to millions of people worldwide. Despite their importance, access to public transport is often limited by cost, which can create barriers for many individuals, particularly those from lowincome backgrounds.
The idea of making public transport free has been gaining traction in various cities around the world, driven by the potential benefits it could offer in terms of accessibility, environmental sustainability and overall community well-being.
This article explores the compelling reasons public transport should be free and how it could transform our cities for the better.
ENHANCING ACCESSIBILITY AND SOCIAL EQUITY
One of the most significant advantages of free public transport is the enhancement of accessibility for all citizens, regardless of their economic status. Public transport fares can be a substantial burden for low-income individuals and families, often forcing them to choose between transportation and other essential needs. By eliminating fares, cities can ensure everyone has equal access to mobility, which is fundamental for accessing employment, education, healthcare and other vital services.
Free public transport can also help reduce social inequality. Transportation
costs disproportionately affect low-income individuals, who may already struggle with housing costs, food insecurity and other financial pressures. By making public transport free, cities can provide these individuals with greater opportunities to improve their quality of life and economic prospects.
ENVIRONMENTAL SUSTAINABILITY AND REDUCED CONGESTION
The environmental benefits of free public transport are substantial. One of the most pressing issues facing urban areas today is traffic congestion, which not only leads to
Transportation is one of the largest sources of carbon emissions, and increasing the use of public transit can help cities meet their climate goals. By investing in free, high-quality public transport systems, cities can reduce their carbon footprint and promote sustainable urban development.
ECONOMIC EFFICIENCY AND PRODUCTIVITY
While the initial cost of providing free public transport may seem high, the long-term economic benefits can outweigh these expenses. Reducing traffic congestion can lead to significant savings in terms of time and fuel for commuters, which can boost
“One of the most significant advantages of free public transport is the enhancement of accessibility for all citizens, regardless of their economic status.”
increased greenhouse gas emissions but also contributes to air pollution and reduced quality of life. By making public transport free, cities can encourage more people to leave their cars at home and use public transit instead. This shift can significantly reduce the number of vehicles on the road, leading to lower emissions and a cleaner environment.
Moreover, free public transport can play a crucial role in combating climate change.
overall productivity. Additionally, free public transport can attract more tourists and businesses to a city, stimulating economic growth and creating jobs.
Free public transport can also reduce the need for costly infrastructure projects such as building new roads or expanding existing ones. By improving public transit systems and making them free, cities can manage their growth more efficiently and allocate resources to other critical areas such as education, healthcare and housing.
Health benefits and improved quality of life
Public transport promotes physical activity and healthier lifestyles. Commuters often walk or cycle to and from transit stations, which can help reduce the risk of chronic diseases such as obesity, diabetes and heart disease.
Additionally, reducing the number of cars on the road can lead to lower levels of air pollution, which has significant health benefits for all residents, particularly children, the elderly, and those with respiratory conditions.
Free public transport can also enhance mental well-being by reducing the stress
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“While the initial cost of providing free public transport may seem high, the longterm economic benefits can outweigh these expenses.”
associated with commuting. Long, stressful commutes by car are linked to higher levels of anxiety and depression. In contrast, public transport allows commuters to relax, read or even work while travelling, contributing to a better work-life balance and overall happiness.
STRENGTHENING COMMUNITY AND SOCIAL COHESION
Free public transport can foster a greater sense of community and social cohesion. Public transit systems bring people from different backgrounds together, promoting interaction and understanding among diverse populations. This can help break down
social barriers and create more inclusive communities.
Furthermore, free public transport can support local businesses by making it easier for residents to travel to different parts of the city. This increased mobility can boost the local economy and encourage the development of vibrant, thriving neighbourhoods.
SUCCESSFUL EXAMPLES AND CASE STUDIES
Several cities around the world have already implemented free public transport with positive results. For instance, Tallinn, the capital of Estonia, made its public transport
system free for residents in 2013. The initiative led to a significant increase in public transit usage, reduced traffic congestion and improved air quality.
Similarly, cities like Dunkirk in France and Chengdu in China have also seen success with free public transport initiatives, demonstrating the feasibility and benefits of such programmes.
CHALLENGES AND CONSIDERATIONS
While the benefits of free public transport are clear, implementing such a system is not without challenges. Funding is a significant concern, as cities must find alternative revenue sources to cover the costs of operating and maintaining public transit systems. Potential solutions include reallocating funds from road infrastructure projects, increasing taxes on private vehicle usage, or leveraging public-private partnerships.
Additionally, ensuring public transport systems can handle increased ridership is crucial. Cities must invest in expanding and modernising their transit infrastructure to accommodate more passengers and provide reliable, high-quality service. Public awareness campaigns and community engagement are also essential to address concerns and build support for free public transport initiatives.
CONCLUSION
Free public transport offers myriad benefits: from enhancing accessibility and social equity to promoting environmental sustainability and economic efficiency. By removing the cost barrier, cities can create more inclusive, healthier and more vibrant communities.
While there are challenges to implementing free public transport, the potential rewards make it a compelling option for cities seeking to improve the quality of life for their residents and build a sustainable future.
As more cities experiment with and adopt free public transport, it could become a cornerstone of urban mobility in the 21st century, transforming the way we move and live in our cities.
A MULTIFACETED APPROACH
MAKING SOUTH AFRICAN ROADS SAFER: INSIGHTS FROM DISCOVERY INSURE
Discovery Insure’s recent Road Safety White Paper analysed the state of the roads in South Africa, and efforts to improve road safety in the country.
Discovery Insure CEO Robert Attwell says the short-term insurer has access to over 19 billion kilometres of driving data from the Vitality Drive programme with 500 000 daily trips, which enables the company to get an in-depth understanding of factors influencing vehicle accident risks.
This data shows that while environmental factors like road conditions, as well as vehicle factors contribute to road fatalities, human factors like driver behaviour play the biggest role. Over 60% of motor vehicle fatalities are influenced by five behaviour: drinking and driving, cellphone usage while driving, excessive speeding, aggressive driving, and lack of vehicle care.
South Africa’s deteriorating road infrastructure also contributes to the risk of road fatalities and economic losses. The Road Traffic Management Corporation reports that of the environmental factors that caused road fatalities in 2022, 22.2% were due to poor road conditions. It estimates that road fatalities caused a 3.29% or R200-billion loss to the gross domestic product that year.
“Combining these insights with our driving data, we can see that driving behaviour has a bigger impact on road fatalities than road conditions. The data shows that parts of the country with the best roads may have high motor vehicle fatalities because of bad driving behaviour,” adds Attwell.
Limpopo has some of the best roads, but drivers in that province have the highest number of driving events that cause accidents. They exceed the speed limit significantly. Limpopo's road fatality rate per registered vehicle is the highest in the country.
On the other hand, the Western Cape has good road infrastructure and good driver behaviour. This has led to lower road fatalities.
“This shows that road safety is a complex problem in South Africa, and it requires a multifaceted approach that largely drives a change in driver behaviour,” says Attwell.
Also emerging from Discovery Insure’s
research – and deeply concerning – is that accidents usually occur on the same roads or intersections, with 1% of locations being where 27% of accidents occur. So, key interventions at these locations can help improve road safety.
VITALITY DRIVE PROVES SUCCESSFUL IN CHANGING BEHAVIOUR
The Vitality Drive programme aims to create
safer drivers. Data shows that drivers on the programme reduce their accident risk by 15% within the first month of joining the programme, and they have a 34% lower fatality rate than the South African average.
The programme’s telematics technology helps drivers understand the good driving behaviours that will increase their rewards. The more they engage with the programme, reaching the highest Vitality Drive status, their frequency of accidents reduces by 70% and accident severity drops by 35%.
DISCOVERY INSURE EXPANDS INITIATIVES TO CREATE SAFER DRIVERS AND SAFER ROADS
Discovery Insure has applied insights from Vitality Drive to address the problem of potholes in Johannesburg. It launched Discovery Pothole Patrol in May 2021, in partnership with the Johannesburg Road Agency, and recently, Avis Southern Africa.
Attwell explains, “Through the Discovery Pothole Patrol, we can participate in improving road conditions and reduce road hazards by repairing potholes. Since its launch, the Discovery Pothole Patrol has fixed over 250 000 potholes, resulting in estimated savings of over R33 million to Discovery Insure and bringing much value to all road users in Johannesburg.”
MAKING SCHOLARS’ JOURNEY TO SCHOOL SAFER WITH SCHOLAR TRANSPORT INTERVENTION
Children are often involved in car crashes as pedestrians on the road, usually on their way to school. In the National Households Travel
Survey for 2020, it was reported that about 10.1 million learners walked all the way to their educational institution in all nine provinces, citing reasons that the school is nearby or close enough to walk from home; public transport is too expensive; and transport is not available.
Discovery’s Safe Journey to School (DSJTS) in partnership with Afrika Tikkun is an initiative to improve pedestrian safety especially for children and to provide safer scholar transport.
“In 2023 alone, the DSJTS programme in partnership with Afrika Tikkun transported more than 18 000 children safely to and from school. Initially set up as Safe Travel to School, the programme has recorded no fatalities since its inception in 2013,” adds Attwell.
COMMITTED TO SHARED-VALUE INITIATIVES
He says Discovery Insure is constantly looking
to enhance its Vitality Drive programme rewards to encourage behaviour improvement. It's encouraging to see the positive impact of Pothole Patrol in Johannesburg, and the Safe Journey to Schools programme, currently operating in the Western Cape and in Gauteng.
“We will always look for initiatives that are most impactful to the area of reducing risk and having a positive societal impact. The Discovery Pothole Patrol helps create safer roads for all road users, and Safe Journey to School creates safer pedestrians, namely learners. We believe that expanding these initiatives will help create safer drivers, safer roads and safer pedestrians in South Africa,” concludes Attwell.
Access the Discovery Insure Road Safety White Paper at shorturl.at/ xwnCq.
RENEWABLE ENERGY
GREEN MONEY
HOW INNOVATIVE FINANCING AND POLICY SUPPORT CAN ACCELERATE RENEWABLE ENERGY DEVELOPMENT IN AFRICA
As Africa’s energy sector deregulates, exciting opportunities open up for financial innovation to benefit consumers. Private sector buyers and traders can mitigate default risk and provide certified green energy at lower cost.
Africa's renewable energy potential is undeniable, but it remains largely untapped. The problem is that the financing landscape for renewable energy and other projects in Africa was previously reliant on state utilities as buyers. The scale of projects that could be financed in a country were then limited by the fiscal capabilities of that country and the sovereign guarantees it could provide.
This traditional model of relying on countries to provide such guarantees has faced recent challenges because of increasing debt burdens and shifting economic priorities.
Opportunities have therefore emerged for innovative financial approaches that will ensure more guarantees can be acquired from other sources and that risk can be diversified across a portfolio of suppliers and customers. This would see more projects achieving financial close, to ultimately provide more African people with clean energy.
There is also room not only to grow new renewable energy supply but to create new renewable energy markets on the continent, where that supply can be sold.
As a consequence, the market is opening up to allow alternative buyers of new renewable energy which can utilise existing regional competitive energy markets to diversify its risks.
This is extremely relevant at the moment. Legislation like South Africa’s Electricity Regulation Amendment Bill is set to open up the electricity sector to new supply and trading models. This foreshadows the opening of a competitive spot market for electricity trade in South Africa—linking in the future the South African spot market with that of the Southern African Power Pool.
Namibia did something similar a couple of years ago, as did Zambia.
These regulatory market developments are important, as they facilitate innovation and new private sector business models through which there can be a scale-up of bankable offtake agreements for new supply. The problem in the
region is not lack of projects. It's not lack of funding. It’s earning enough lender trust to lend on the back of a 20- to 25-year power purchase agreement backed by a private sector buyer without state fiscal support.
TRANSMISSION CAPACITY
Transmission constraints are another factor in this emerging scenario. The development of the electricity sector across the region effectively has a ceiling, determined by
the available transmission network for new generation.
Previously, development finance institutions would only fund state utilities, and then only when it was proved that sufficient generation would be coming on board to utilise any new transmission infrastructure.
Now, thanks to the growing liberalisation focus in the region, allowing new private sector participants to buy and trade power, these
transmission funding inflows can be facilitated. This new supply will be critical to making new transmission investments bankable.
If the private sector can sufficiently guarantee any proposed new capacity coming on board will utilise the necessary transmission infrastructure, that new capacity effectively backs the viability of the new transmission investing—bringing a direct value add to the state utilities in South Africa and the rest of the Southern African Development Community (SADC).
REGULATORY READINESS
But for all of this to fall into place, we need a convergence of the relevant regulatory readiness —and we are already seeing this across the region. In many SADC countries, new legislation is providing the regulatory clarity the private sector requires to venture into supply, transmission and trade.
The entire ecosystem must work for new entrants, and for lenders. Until now, lenders have seldom considered state utilities to be creditworthy, and they have required significant fiscal guarantees to cover the power-purchase obligations of those utilities.
That model is a double whammy. Not only does it encumber utilities with debt for new generation, but it hits the national fiscus as well.
In South Africa, for example, the widely respected Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) process has brought online a significant amount of new generation. However, once the South African government started reporting on the process in accordance with International Monetary Fund fiscal transparency regulations, this added an additional 36% to the contingent liabilities of the national treasury—almost $15 billion—overnight. This is money that can no longer be channelled into education, health and other key infrastructure development (water, transmission etc.).
The REIPPPP model has been extremely successful in the electricity sector, but it has perhaps outlived its usefulness. There are other priorities, and the private sector should be sufficiently capable to deliver on its own, with the lending community partnering accordingly.
The REIPPPP model can be replicated in cases such as storage tenders, and in the
transmission space. While transmission is usually considered a government function, it would certainly be possible to incentivize the private sector – and lenders – to enter the space.
NEW LICENSEES
Across the region, markets are liberalising rapidly. South Africa has shown it can happen almost overnight, as in the case of the country’s generation regulations. This has allowed thirdparty wheeled projects, from generators directly to customers, and facilitated new licence applicants in the market.
This shows how market thinking about the development of the electricity sector has fundamentally changed. There is collaboration like never before.
Financial innovation must happen in a way that makes lenders comfortable. The ultimate beneficiaries of this financial innovation must be the consumers. Many are looking to decarbonise their operations: for climate change reasons, and to make their products competitive on international markets.
Affordability is another key consideration. Around 70% of the costs of a generation or renewable energy project is from the cost of debt. Therefore, the more bankable an offtaker is, the lower the debt costs, and the cheaper the electricity—a clear demonstration of the benefits of financial innovation for the end consumer.
Ana Hajduka Founder and CEO Africa GreenCo
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CHINA AND BOTSWANA: ‘FONG KONG’ PRODUCTS HAVE HELPED DRIVE LOCAL MANUFACTURING, SAYS STUDY
MANUFACTURING
Chinese products are frequently viewed as inferior and inexpensive, contributing to their negative reputation. This is true in African countries, too.
Nonetheless, Chinese merchandise has played a pivotal role in shaping economies by accelerating globalisation and fostering local development.
Take the case of Botswana. Botswana has a population of more than 2.4 million people. Its economy is primarily driven by mineral extraction and diamond mining. Despite efforts at economic diversification, Botswana’s manufacturing sector remains relatively small, contributing only about 3.7% to its gross domestic product. This is due to a limited domestic market and reliance on South Africa for supplies.
In 2011, the Ministry of Trade and Industry introduced policies to stimulate the growth of citizen-owned enterprises and enhance the country’s competitiveness. These included the Economic Diversification Drive (shorturl. at/F5E1w) and the Citizen Entrepreneurial Development Agency (www.ceda.co.bw).
THE GOVERNMENT ALSO BEGAN WELCOMING CHINESE ENTREPRENEURS IN LOCAL TRADE AND MANUFACTURING
I have been studying Botswana’s economy and the country’s economic relations with China since 2011. My latest research (shorturl.at/wcS4V) looks at how Chinese merchandise has shaped Botswana’s economy, especially in helping contribute to manufacturing, and how this has been guided by Botswana government policies.
The study found that some Chinese investors in Botswana, some of whom started as traders of goods regarded as 'fong kong' (low quality and cheap), had upgraded into manufacturing businesses. This upgrade was part of government policies since the mid2000s, which restricted the number of trading licences issued to Chinese traders. There was also an increase in regulations targeting activities such as the sale of counterfeit goods and tax evasion. Threats not to renew existing licences were issued.
The Botswana-China case demonstrates
that Chinese businesses can be a building block for the development of an economy like Botswana’s, including manufacturing. But this depends on how Chinese companies are guided by the African host government’s policies.
THE JOURNEY WITH CHINA
For decades, the Chinese and Botswana governments purposefully overlooked the issue of counterfeit consumption within their domestic markets. Counterfeit production was employed to satisfy local market demands and foster the growth of domestic industries.
Initially in China, counterfeit production served as a stimulus for industry. It led to exports of made-in-China goods to Europe and the evolution of China into a manufacturing superpower.
Botswana, too, felt the impact of this shift. Since the 2000s, China’s impact on the country, particularly through the proliferation of 'China shop' businesses, has been significant. By 2013, there were approximately 1 000 China shops spread across Botswana, found in nearly every town and rural area. They offered a variety of goods: from clothes, shoes and cellphones to other everyday items. The shops became primary points of interaction between local people and Chinese business owners.
A few phrases have become part of everyday use in Botswana. An example is ni hao, which means “hello” in Mandarin. It became
synonymous with Chinese people after the then Chinese premier Li Peng visited Botswana in September 1986.
By the early 1990s, Chinese street traders were referred to as caca by local people. The word in Chinese means “rubbing” and came from the early traders selling essential balm oil.
In the 2000s, the rise of Chinese merchants selling counterfeits earned them the nickname 'fong kong'.
THE TRANSITION
The Botswana government’s efforts at fostering a manufacturing sector began to show signs of bearing fruit by 2018 when Chinese products with “Made in Botswana” labels began to appear.
This transition showed the influence of Chinese merchandise on Botswana’s trade and industrial landscape. And Chinese goods had been adapted to bolster the local economy and cater to consumer preferences.
This process was not without its tensions between Chinese-run and owned businesses and local enterprises. Nevertheless, China shops have facilitated Chinese merchants’ progression in business: from retail sales to wholesale and even manufacturing.
Additionally, they have catered to local market needs, supported local traders, and contributed to domestic manufacturing initiatives. This,
despite the fact that successful cases remain rare, and the changes have yet to be reflected in the statistics.
A 2023 survey by Afrobarometer (shorturl.at/ GAPTp) showed that people in Botswana saw China as being more influential than the United States, the European Union and Japan.
In 2021, Botswana signed a Memorandum of Understanding ( shorturl.at/ALuA7) on the Belt and Road Initiative – the Chinaled infrastructure project. Zhao Yanbo, the Chinese ambassador to Botswana, expressed intentions to: encourage Chinese enterprises to increase investment; explore co-operation in industrial parks, special economic zones and regional development belts; and enhance Botswana’s industrialisation process.
Chinese investors are increasingly being seen as crucial in addressing Botswana’s industrialisation challenges. This sentiment was echoed recently by the Minister of Trade and Industry, Mmusi Kgafela (shorturl.at/J7Xov).
WHAT'S NEXT?
Botswana policymakers should consider a number of policy refinements:
Steer foreign businesses, including Chinese enterprises, toward paths that benefit society in the long term.
Address the counterfeit phenomenon. The best way to do this would be to recognise the counterfeit phenomenon as a form of 'creative destruction', blending innovation, lower quality and illegality. Policymakers should aim to legalise production and consumption processes while preserving innovation ecosystems. This would mitigate negative effects on the local market.
Establish a China-Africa think tank as a platform for dialogue and collaboration between China and Botswana. This would help both countries understand each other’s strategies. It would foster balanced, mutually beneficial partnerships, contribute to more informed policymaking and enhance economic cooperation.
Yanyin Zi Assistant Professor: Global Studies Rikkyo University
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Steinmüller Africa’s induction bending machine at work, bending thick-walled piping.
This Cojafex PB 850 induction bending machine is one of only two induction bending machines on the African continent, enabling paper and pulp, power, petrochemical and mining plants to source custom bends locally, as well as large radius, multiple or complex bends – all with quick turnaround times.
Induction bending is the process whereby a straight pipe is precision-bent by a speciallyengineered machine. The front of the pipe protrudes through an induction coil and is clamped into position. The induction coil is heated to a specified temperature and then the arm of the machine moves in a predetermined radius, pushing the pipe through the coil. “This is programmed into the machine upfront and is an automated process,” explains Lee Chapman, Divisional Manager –Piping, Steinmüller Africa. The automation and machine control renders a precise and top-quality pipe bend. “Our Cojafex machine is capable of bending pipes between 48.3 OD and 850 OD with a wall thickness up to 100 mm. It can create bends up to 180 degrees,” adds Chapman.
Induction bending is ideal “when standard size bends are not available and custom or large radius bends are required,” states Chapman. Since it can create complex (multiple) bends without the need for welding, induction bending guarantees pipe system integrity and a reduced maintenance requirement, making it especially well-suited to high pressure (HP) piping, steam piping and industrial piping systems. This also means it delivers a relatively low cost of ownership. In addition, if multiple bends are done at once then there is a cost saving during the erection and ongoing maintenance phases of a plant’s operation.
The benefit of partnering with Steinmüller is that it offers complementary services in addition to induction bending. “There is no need to move the
Our Cojafex machine is capable of bending pipes between 48.3 OD and 850 OD with a wall thickness up to 100 mm. It can create bends up to 180 degrees.
component between different suppliers as we are able to do all the necessary bending, welding and heat treatment in-house,” says Chapman. Using its Schlager gas furnace, Steinmüller conducts post bend heat treatment (PBHT), which ensures the pipe’s mechanical properties are restored following the bending process. In addition, Steinmüller specialises in various welding processes, enabling custom welding onto pipes.
A commitment to safety and quality, backed by international expertise, has made Steinmüller Africa the fabricator of choice for some of South Africa’s largest Power, Paper and Petrochemical companies. “Steinmüller has been carrying out induction bending for over ten years at its facility in Pretoria and has a number of qualified bending procedures to both EN and ASME standards for safety and quality. Our in-house quality management system ensures that our products meet all the necessary international standards,” adds Chapman.
Steinmüller Africa is a Bilfinger Power Africa company, and is a BBEE Level 1 company. For over six decades, Steinmüller has provided comprehensive solutions for steam generating plants, from design through to commissioning and after-service maintenance.
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SECURING LIVELIHOODS
CLIMATE CHANGE IS A CHALLENGE FOR SMALL - SCALE FARMERS; HOW A MIX OF OLD AND NEW TECHNIQUES PRODUCED A SUPERIOR MAIZE HARVEST IN A DRY PART OF SOUTH AFRICA
New research into rural small-scale farms in South Africa’s North West province (shorturl.at/ZjEtd) has found that climate-smart farming techniques lead to a better maize yield, a more regular supply of food for the farmers, and a wider variety of crops.
Small-scale farmers often produce primarily for their own consumption, but many also sell produce in local markets. Because small-scale farmers rely on their crops both to survive and as their only form of income, they are particularly vulnerable to the impacts of climate change.
SOME OF THE CLIMATESMART TECHNIQUES BEING SUCCESSFULLY USED ARE:
• Planting drought-tolerant maize seeds—a new variety of maize that grows well even when there is a drought.
• Mulching—covering the soil with a layer of leaves or bark to keep the moisture in.
• Cover cropping—planting grasses or legumes between the main crop to nourish and protect the soil.
• Mixed cropping—growing two or more crops together to repel pests.
• Zero tillage—placing mulch over the soil and planting seeds in that layer instead of digging beds.
The North West province of South Africa has a semi-arid climate with hot summers and mild winters. More frequent and intense droughts and unpredictable rain have created an unstable environment. Traditional farming practices have become less reliable, underscoring the urgent need for adopting climate-smart agriculture.
Across South Africa, rural small-scale farming families are very vulnerable to climate change. They do not own expensive irrigation systems. These days, rains are often delayed. This means the small-scale farmers can no longer plant as early as they used to. This affects
growing seasons and reduces their crop output, creating food insecurity in their households.
We are agricultural economists who research how climate-smart agricultural practices can make small-scale farmers more productive and resilient. As our findings show, adopting certain agriculture practices helps mitigate climate impacts. It also leads to increased food availability and a more diverse range of foods, enhancing overall food security for rural farmers.
Maize is an important crop in South Africa. Tens of millions of people eat 5.2 million tonnes a year of this staple food, which provides essential nutrients and forms a significant part of their diet.
THE STUDY
We interviewed more than 300 small-scale maize farmers from 30 rural communities across the North West province, which borders Botswana. We asked them which farming
“Traditional farming practices have become less reliable, underscoring the urgent need for adopting climate-smart agriculture.”
practices they had used during the 2022 and 2023 agricultural seasons.
Our research found that they’d started adapting their farming to climate change since 2010, based on their indigenous knowledge of how to cope with droughts, storms and changes in the climate, how to conserve water, protect the soil, and how to introduce new crops.
In 2011, South Africa released the National Climate Change Response White Paper. As part of this, climate-smart agriculture was integrated into agricultural policies and programmes run by agricultural scientists, nongovernmental organisations and government agriculture extension services in the study area. This specialist advice plus the farmers’ grassroots solutions evolved into the climatesmart agriculture they practise today.
This synergy is an important part of helping small-scale farmers adapt to climate change because, ultimately, the individual farmer’s unique perception of climate change determines what farming practices they choose to implement.
WHAT WE FOUND
We found that 86% of the farmers interviewed (or 272 farmers) had adopted climate-smart agriculture. As one farmer said: “The weather used to be more predictable, and we knew
when to plant and harvest. However, the rain comes late or not at all. I’ve had to change how I farm through trying new seeds and planting techniques... It’s not just about growing food; it’s about adapting to the new reality we face.”
That the majority of farmers began adapting to climate change on their own highlights their ingenuity and resilience and shows that smallscale maize farmers can farm while the climate changes.
The farmers who adopted climate-smart agriculture had more maize to consume than farmers who had stuck to ordinary farming methods. They harvested around 6.2 tonnes of maize per hectare per year, earned about R15 000 (US$824) per hectare from selling their maize, and sold 4.1 tonnes of maize per year. The farmers who stuck to ordinary farming methods harvested 3.9 tonnes per hectare, sold 2.7 tonnes of maize, and earned about R11 500 (US$632) per year.
The 30% improvement in earnings for farmers who use climate-smart agriculture is meaningful and transformative. Small-scale farmers often operate on thin profit margins. A 30% improvement in earnings provided these farmers with economic stability, the chance to reinvest the money in their farms, and improved livelihoods.
THE BENEFITS OF CLIMATESMART AGRICULTURE:
• Enhanced soil health: Practices like cover cropping and using organic fertilisers improve soil structure and fertility. This leads to more crops for harvesting.
• Environmental sustainability: Climatesmart agriculture includes conservation agriculture (combining intercropping, mulching and zero tillage) and agroforestry (planting trees and bushes with crops). These store carbon and reduce greenhouse gas emissions
from farming activities, contributing to environmental sustainability.
• Improved food security: With more diverse farms came additional food and income sources. This reduced the farmers’ dependence on a single crop. It improved their resilience to climate shocks. This diversification can also buffer farmers against the risks of crop failure.
• Increased productivity: We found that climate smart agriculture in the North West province improved soil health (helping the soil retain water), water management and pest control. This meant farmers could continually rely on their crops doing well.
• Economic benefits: Switching to climatesmart agriculture, which is nature-based, meant the farmers reduced chemical inputs such as pesticides. This saved them money. Climate-smart agriculture practices can open up opportunities and new markets for eco-friendly products, providing additional income for farmers.
WHY GOVERNMENT AND STAKEHOLDERS SHOULD MAKE CHANGES
The government must provide support through extension services (agricultural specialists who visit farmers with advice and training, such as on the use of climate forecast services).
The government should also provide smallscale farmers with financial incentives to switch to climate-smart agriculture now. Agricultural co-operative societies must become stronger so that all small-scale farmers have access to climate-smart agricultural equipment.
Government policies should be geared toward climate-smart agriculture and include community engagement. Academics and government departments can also work with small-scale farmers on researching new ways for these farms to produce more crops.
Through this, South Africa can build more resilient and sustainable agricultural systems. These will secure the livelihoods of maize farmers in the face of climate change.
Abeeb Babatunde Omotoso
Oyo State College of Agriculture and Technology
Abiodun Olusola Omotayo
North-West University
FEMALE ENTREPRENEURS
NEED MORE HELP
TAILORED SUPPORT FOR WOMEN WHO RUN BUSINESSES WILL RAISE SOUTH AFRICA’S JOB CREATION AND ECONOMIC GROWTH PROSPECTS, NEW STUDY FINDS
South African women are exiting their businesses at a higher rate than they are starting and running businesses, indicating they need more support in growing startups to the established stage of more than 3.5 years.
This is a key finding of the Global Entrepreneurship Monitor (GEM) South Africa Report 2023/2024 by Stellenbosch Business School on Women Entrepreneurship in South Africa (shorturl.at/ACaDu), launched in August.
The gap between men and women entrepreneurs widens as businesses mature, with almost double the number of men owning established businesses (7.9% vs 4.1% of women), indicating that women find it more challenging to sustain a business than to start one.
Natanya Meyer, lead-author of the report and associate professor in the Department of Business Management and SARChI for Entrepreneurship Education at the University of Johannesburg, says the lack of business support tailored to women’s specific challenges and needs puts South Africa’s women entrepreneurs on the back foot in realising their potential to make a greater contribution to economic growth and job creation.
“Women entrepreneurs matter. Women make up half the global population, but are less engaged than men in entrepreneurial activities. It thus makes sense to find out how better to invest in and support women’s entrepreneurship, with its high potential to be one of the most effective means to achieve sustainable economic growth.
“Moreover, supporting women entrepreneurship potentially has a significant impact on development, as women entrepreneurs tend to allocate more of their funds toward the improvement of health, education and overall welfare of their families and communities. Women are also more motivated to go into business to make a social impact.”
While GEM has tracked women’s entrepreneurial activities at a global level over the past 25 years, the Special Report on Women Entrepreneurship 2023/2024, titled “Women Entrepreneurship in South Africa: What does the future hold?”, is the first GEM
report to focus on the motivations, progress in business, and support needs of women entrepreneurs in South Africa specifically.
Prof. Meyer co-authored the report with Stellenbosch Business School research fellows Mahsa Samsami and Angus Bowmaker-Falconer. The GEM SA national study team is hosted at Stellenbosch Business School and supported by the Small Enterprise Development Agency, the University of Johannesburg and Ontbytsake
Prof. Meyer says the “starkly different” reasons for women and men exiting their businesses highlights the specific barriers that women face in sustaining a business.
The top reason for exiting businesses was lack of profitability for both women (34.4%) and men (21.5%), while their other leading reasons differed thereafter.
Women’s next two main reasons were personal and family matters (21.5%, almost double that of men at 12.1%) and problems obtaining finance (21.5% vs men 17.8%). After lack of profitability, men mostly exited their businesses due to an opportunity to sell (18.7%, vs 10.8% of women).
Women face not only unequal access to business finance and support resources but also gender stereotypes and prejudice. As women bear the majority share of caregiving and family responsibilities, they face a greater burden of managing conflicting demands on their time as they juggle business and family needs.
“It is widely acknowledged that women in business have greater challenges in balancing business and home life, due to societal expectations of women as primary homemakers and caregivers. This influences how women in business are perceived, by funders for example, resulting in adverse outcomes,” Prof. Meyer adds.
The research had previously found that women entrepreneurs were far less likely than men to obtain credit in their founding year, even though those women who did receive startup loans had a lower default rate than their male counterparts.
Lack of access to funding and support resources, along with women’s more considered approach to risk, are possible
reasons for women-led businesses remaining “modest in scale and lacking substantial prospects for expansion”.
The GEM SA research found a notable gender gap in business growth, with 11.8% of men’s business ventures reaching the threshold of employing 20 or more people, while only 4.9% of women-owned businesses had done so. Meanwhile, women were more likely to be “solo-preneurs”, at 4.9% compared to 1% of men.
“The data highlight gender disparities in business scaling, with men owning larger businesses at a disproportionately higher rate than women. This could reflect various obstacles women may encounter in business expansion, including limited access to funding, networks, mentorship support and resources,” Prof. Meyer notes.
Although women’s involvement in entrepreneurship showed a healthy increase from 9.5% in the 2022 GEM SA survey to 13.5% in 2023, men’s involvement showed a greater increase, from 11.1% to 19.9%.
“Given women’s higher unemployment rate— although it is positive to see an increase in their entrepreneurial activity—it is concerning it remains low and lags behind that of men. The results of this survey highlight the importance of improving the supporting environment for entrepreneurship for both women and men in order to reduce high unemployment,” Prof. Meyer says.
Bowmaker Falkoner says the involvement of young women in entrepreneurship is low, at 11.3%, and that with half of South Africa’s youth unemployed (50% of economically active aged 15–34 in Q1, 2023), it is essential to improve exposure to entrepreneurship education at school level.
Lack of exposure to entrepreneurship as a career choice for young women links to the study finding women are less likely to view themselves as being capable of starting a new business, at 66.2% compared to men at 72.4%, even though about two-thirds of both men and women say they see good opportunities to start a new business in the area where they live.
“However, when we narrow this sample down to only people already entrepreneurially involved, women entrepreneurs’ perceptions
of available opportunities and their own capabilities to run a business are higher than those of male entrepreneurs. Women already running their businesses also have a much lower fear of failure than women in the general population,” says BowmakerFalkoner. “This highlights the positive effect that engaging in entrepreneurship has on women’s entrepreneurial mindset and business confidence.”
He sees the report findings as an important contribution to advancing the economic influence of women entrepreneurs, as it provides policymakers, enterprise development agencies and future funders with a comprehensive understanding, backed by data, of the factors that contribute to developing women in entrepreneurship.
“The GEM methodology provides hard data and analysis on South African women’s level of engagement in entrepreneurial activity across all the stages—from intention to start a business through to established businesses more than 3.5 years old—and the timing and reasons for exiting their business.”
In addition to data on actual and forecast job creation, growth expectations and perceptions on the business enabling environment, the report provides detailed insight into the personal motivations and cultural context of women business owners, as well as information on the types of businesses and sectors in which they engage.
“This research provides important insights to enable informed decision-making, targeted interventions and effective support programmes to foster a more conducive environment for women’s entrepreneurial
development and success in South Africa,” Bowmaker-Falconer adds.
RECOMMENDATIONS
The report makes several recommendations to improve the entrepreneurship ecosystem in support of women entrepreneurs:
IMPROVED IMPLEMENTATION AND AWARENESS OF POLICIES
South Africa has a progressive set of policies to promote gender equality, but lacks in effective implementation. The report recommends better promotion of government policies and programmes that offer mentorship, financial and other support to entrepreneurs, along with rigorous protocols to evaluate the impact of support programmes.
“Government policies promoting women entrepreneurship should prioritise a genderneutral legal framework, reduce bureaucratic obstacles, and increase access to finance for women entrepreneurs.
“Financial literacy and business management skills training should be enhanced for young women, especially in rural areas.
“Family-friendly policies should be promoted, and developing specific laws for womenowned small enterprises could significantly impact their success.”
PROMOTION OF WOMEN NETWORKS AND ASSOCIATIONS
The researchers recommend women-oriented
business networks be developed and promoted by local governments, business incubators and private sector initiatives.
“Establishing small, women entrepreneurial groups led by successful women business owners can promote confidence and increase business growth.”
GREATER MEDIA ATTENTION ON WOMEN ENTREPRENEURSHIP
Society still perceives entrepreneurship as a men-dominated field. Increasing media coverage of women entrepreneurship, women’s business capabilities and profiling successful women in industry will contribute to reducing stereotypes and stigma. This would positively impact society and boost confidence in women entrepreneurs.
EXPOSING WOMEN TO THE BUSINESS ENVIRONMENT FROM A YOUNG AGE
Mentorship and exposure to business environments early in life can contribute to future entrepreneurial intentions, the researchers say. This includes providing more readily available information and practical guidance to young women to stimulate entrepreneurial intentions. Recommendations include visits to local entrepreneurs, hosting school market days and promoting gender equality initiatives, particularly in rural areas with limited resources for education and entrepreneurial initiatives.
SUPPORTING DIGITALISATION AND SOCIAL AND ENVIRONMENTAL SUSTAINABILITY
The COVID-19 pandemic led many entrepreneurs globally to adopt digital tools, resulting in increased sales and employment. The report recommends development of comprehensive policies and strategies to empower women entrepreneurs for digitalisation of their businesses and access to digital infrastructure and services.
Sustainability initiatives can be costly for small businesses, especially in highly regulated industries. Impact investing and government incentives can support sustainability practices, especially as research has shown women entrepreneurs prioritise social, health, educational and environmental impacts over profit.
PMC Training Consultants and Associates
ORIGINS
Peter Martin Cloete is the founder of PMC Training –born and raised in Nababeep in the Namaqualand region of the Northern Cape. He joined De Beers Mine as a bedrock cleaner after matric in 1994. He came through the ranks and was later appointed as an earthmoving machine operator and eventually a multi-skilled operator. Cloete joined the Training Department in Koingnaas and later became a driver and machine operator instructor. His passion for people development impressed his peers and he was promoted to mine training foreman.
De Beers had other plans for this dynamic leader and Cloete was transferred to Venetia Mine in Limpopo during 2006 where he holds the position of chief training officer of Mining. He eventually joined Assmang Khumani Mine where he was responsible for the HR department.
Cloete holds various qualifications including a Trainer Development Diploma, National Diploma in ETD Practices and Lead Auditor.
PMC Training is accredited by various SETAs, of which the MQA is the primary SETA. The company is an SME, ISO certified, youth owned and fully female owned.
PMC Training Team
The assessors, moderators, administrators and consultants are registered as assessors and
moderators with the relevant SETAs and have vast experience in their respective fields of expertise. They also have come through the ranks in the mining and construction environment and are experts in the facilitation, presentation and assessment of various training programmes.
New Generation
Peter’s daughter, Cassidy Manique Brandt, was also born in Nababeep. Both her grandfathers were employed in the Okiep Copper Company, today better known as Copper 360. She came through the ranks with dedication, smart work and commitment. Cassidy has sound knowledge and experience in ISO processes, training operations and auditing. She is the heartbeat of the day-to-day training activities at PMC Training. She was recently appointed as the operations manager after seven years of intensive on-the-job training, coaching, mentoring and various training programmes. She is also the majority shareholder of PMC Training.
Core Focus Areas
Mining Training, Health and Safety Training, Construction, Lifting Equipment Training, Compliance Training, Community Training, BBBEE and WSP/ATR Assistance, MIE Verifications
SKILLS DEVELOPMENT FEATURE
SUPPORT THE FUTURE GENERATION
WHY BUSINESS NEEDS TO PARTNER WITH TRAINING INSTITUTIONS TO DEVELOP ENTREPRENEURIAL SKILLS
It is clear we are enduring an evergrowing unemployment crisis which, given the economic challenges being faced by our country, certainly shows little signs of improving in the near future. One of the only ways we can bring people into the mainstream economy and give them a chance to not only survive but thrive, to the extent that they can assist in the growth of the nation, is through the development of effective entrepreneurial skills.
It is also clear that businesses, from the smallest SMMEs to large corporates that are running shy of employing people on a permanent basis in such times, can still contribute by lending their experience, expertise and primarily their support to entrepreneurial skills training programmes.
Fortunately, there are institutions in this country that have expert training for entrepreneurs, but they do need the buy-in of businesses to ensure the outcome of the programme leads to the evolution of real enterprises that make a solid contribution to the fiscus.
So why exactly is this—and what are the benefits for business entities of supporting budding young entrepreneurs?
ENTER THE EXPERTS
One institution making a massive contribution to the upliftment of entrepreneurs, through training them in all the appropriate skills and mindset, is the False Bay TVET College Centre for Entrepreneurship Rapid Incubator (CfERI).
Centre manager Nafeesa Dinie, an expert in this field, provides much insight into the college's objectives, the need for changing the mindsets of youth to become business owners, and for partnerships with businesses to be formed ultimately to assist with employment creation.
She speaks enthusiastically about the purpose and vision of the programme: “Entrepreneurship is key in driving economic recovery, job creation and socioeconomic development in the country. At False Bay TVET College, we promote action-entrepreneurship as a career of choice and the CfERI plays an integral role in the stimulation, promotion, creation
and growth of the SMME [small, medium & micro enterprise] footprint within the TVET [technical and vocational education and training] space, through offering non-credit bearing, action-driven entrepreneurship programmes.”
BUSINESS INVOLVEMENT AND BENEFITS
There are various ways that business can be involved, and from each of these ways certain benefits are derived:
AS A STUDENT
Some businesses will find great benefits in taking the programme themselves to
and build your business by providing you with tailor-made solutions and support to guide you along your entrepreneurial journey.
AS A PHILANTHROPIST
Alternatively, you may decide to be a part of the programme through the support of others, and this enables you to play your part as a role-player that effects meaningful change and has an impact on the lives of those who need opportunities to learn and grow.
As Dinie says, “You have the chance to support a future generation of job creators and innovators. Without artisans and trade skills, the country cannot grow its economic value and create the jobs required, which negatively
“TVET students have a faster pathway to entrepreneurship because of the blended teaching methodology and approach”
develop their own entrepreneurial skills. The CfERI, for example, makes it their business to be in your business and develop an understanding of the specifics of your operation. It can therefore help you start
impacts all businesses. This is a problem that everyone needs to join forces to address.”
As a business seeking entrepreneurial partners You may be investing in the tutelage of
perspective candidates because you seek to build a workforce of entrepreneurially minded employees or future business partners. The college aims to deliver employees and future employers (entrepreneurs) who possess the 21stcentury skills required to transform our economy—and possibly your business.
Who’s to say an entrepreneur whom you nurture may not be able to start a branch
train them ourselves?” For a couple of very good reasons...
TVET students, according to Dinie, “have a faster pathway to entrepreneurship because of the blended teaching methodology and approach (practical, theory, experiential and entrepreneurial), therefore providing you as a partner with a faster and higher socioeconomic return on your investment.”
“ Businesses can contribute by lending their experience, expertise and primarily their support to entrepreneurial skills training programmes ”
of your business in an area where you have no experience on the ground, therefore creating and expanding markets that were previously not in reach for existing larger enterprises, and bridging the market divide gap. Many of our townships have burgeoning local business communities that have proven to survive during tough times. Surely these micro and small business owners understand their markets and are agile and flexible to adapt in times of rapid change and uncertainty where resilience is key.
WHY PARTNER WITH THE COLLEGE?
You may say, “Well, if our intention is to train potential employees or partners, why not simply
She continues: “Also, at the college we drive change and we measure success based on the impact our programmes have on the lives of the students and the broader communities—our work is embedded in human-centred development.”
This is a strategic imperative embedded into the DNA of the college as mandated by the College Council. “We don’t only ‘talk the talk’, but we ‘walk the walk’ and provide a diversity of support and interventions to assist the budding entrepreneur along their entrepreneurial development journey. This we achieve through collaboration and co-creation with our students, ecosystem network partners and our communities.”
THE BENEFITS TO THE COMMUNITY AND COUNTRY AS A WHOLE
At the end of the day, it is not just about expanding and creating a better business but also about giving something back to the community and endeavouring to build the country and its people as a whole.
Dinie believes the real objective and benefits of the programme are “to create an enabling environment for young entrepreneurial inclusivity, participation and diversity through unlocking co-creation and innovative learning opportunities for artisan, vocational, occupational skills. This aims to pave and lead the way to economic recovery and socio-economic reconstruction and the development of marginalised communities.”
A FEW OF THE BENEFITS AND IMPACTS OF COLLABORATION BETWEEN BUSINESSES AND THE COLLEGE:
• Increasing the number of student- and youth-owned businesses.
• Increasing job opportunities.
• Contributing to the transformation and diversification of township and rural economies.
• Providing youth with alternative career choices such as entrepreneurship.
• Equipping youth with the required 21st-century skills for the future.
• Making a positive contribution to socio-economic development.
• Working toward decreasing the current prevalent social challenges that are directly due to high levels of unemployment.
“By providing youth the opportunity to start their own ventures, they are less likely to get involved in societal ills,” concludes Dinie. And businesses can benefit from the expansion of their networks, enlarging the commercial playing field to include many who currently sit on the sidelines, unsure of how the game is played.
SIMPLE
& AFFORDABLE
ALUMINIUM FOIL THAT CAN CLEAN WATER: WE’VE DEVELOPED A COATING THAT ATTRACTS AND TRAPS DANGEROUS MICROBES
More than 2 billion people around the world do not have access to safe, uncontaminated drinking water. Around 418 million of them live in African countries.
The problem is most acute in rural communities, where people’s primary water sources are rivers, lakes and hand-dug wells, which are often contaminated with harmful pathogens. This contamination is caused by inadequate sanitation facilities, open defecation practices and agricultural runoff—and it has dire consequences.
Waterborne diseases such as cholera, typhoid and diarrhoea claim hundreds of thousands of African lives each year. Children are especially vulnerable to these diseases because of their developing immune systems. And the cycle of waterborne diseases not only affects health: It also perpetuates poverty, as sick children are unable to attend school and adults are unable to work, hindering economic progress.
The existing solutions for water treatment often fall short. Conventional methods, such as boiling or chlorination, can be time-consuming, require fuel or chemicals, and may alter the taste of water, making people less likely to take precautions.
Filtration systems, while proven to be effective, can be expensive and require regular maintenance. This makes them inaccessible to many rural communities.
The need for a simple, affordable and sustainable solution is clear. What if part of that solution is lying in your kitchen drawer right now, in the form of a roll of aluminium foil?
Taufiq Ihsan is an environmental engineer. With his colleagues (shorturl.at/rGVm2), he has developed a foil coated with a special material called layered double hydroxide (LDH). This material acts like a magnet, attracting and trapping microbes. In laboratory tests, they found the LDH foil remarkably efficient, removing over 99% of E. coli bacteria—a common indicator of water contamination—from water samples within a few hours.
The researchers found that its efficacy also
extends beyond E. coli, targeting a wide range of waterborne pathogens including bacteria, viruses and parasites. This means the LDH foil offers comprehensive protection against various diseases.
Their invention is not intended to be a standalone solution and, of course, further testing will be needed, especially in the field. However, they believe it can become a valuable addition to existing water treatment practices. It can be used along with traditional methods like boiling or filtering, providing an additional layer of protection and ensuring comprehensive water safety.
HOW IT WORKS
This isn’t a completely new idea; it was already known that LDH could trap contaminants. The researchers' innovation was making it into a simple, easy-to-use foil.
The LDH foil’s magic lies in its ability to adsorb or capture harmful pathogens from water. Imagine a sponge soaking up water—
that’s absorption, where one substance is taken into another. Adsorption, on the other hand, is like sticking magnets to a fridge; substances cling to the surface of another material.
The science behind this process is fascinating. The LDH surface is positively charged, while most microbes have a negative charge on their surface. This creates an electrostatic attraction, drawing the microbes toward the LDH foil like iron filings to a magnet. Other chemical and physical forces contribute to making pathogens bind to the LDH surface, ensuring their effective removal from the water.
The researchers tested the LDH foil in a lab by adding bacteria to clean water and then dipping the foil in to see how many bacteria it could remove. It turns out the foil was really good at its job: It removed more than 99% of the bacteria within three to 24 hours, depending on the specific type
of LDH foil used, as different formulations exhibited slightly varying adsorption rates.
ADVANTAGES TAILORED FOR AFRICA
There are several reasons the researchers believe LDH foil is ideal for use in African countries.
The first is that it’s simple and affordable. The production process is remarkably straightforward and inexpensive. The researchers estimated the cost of producing LDH foil for one year’s use is approximately US$6.93 per person. This makes it suitable for local production even in remote areas with limited resources. It not only ensures accessibility but also empowers communities to take ownership of their water safety, fostering self-sufficiency and reducing reliance on external aid.
Secondly, it’s easy to use. That’s a key advantage in contexts where technical expertise and complex instructions may be barriers to adoption. Its simple design and operation make it accessible to everyone, regardless of their education level or background.
It is also reusable, which is important in resource-constrained environments. After use, the foil can be regenerated multiple times by being re-immersed in simple alkaline solutions like sodium carbonate solution, commonly known as washing soda or soda ash, which is a readily available and inexpensive alkaline salt. This promotes sustainability and reduces the environmental impact associated with disposable water treatment solutions.
The researchers have also taken cultural sensitivity and adaptability into account. The LDH foil’s design and implementation can be adapted to fit the cultural context and specific needs of different African communities.
One practical example of this is the use of seawater as the alkaline solution in its production, particularly for coastal communities with easy access to this resource. This is primarily a matter of geography and what resources are available—but it also ties into cultural adaptability. Coastal communities often
have a strong connection to the sea and its resources.
Similarly, using fertilisers as a magnesium source (magnesium is a key component of the LDH foil’s production) will resonate with agricultural communities where these materials are commonplace and familiar.
THE ROAD AHEAD
While the LDH foil holds immense promise, its widespread adoption will require a collaborative effort.
Further research and development are needed to optimise its performance, address any potential limitations and ensure its long-term effectiveness in diverse African environments.
The researchers published their study in open-access format using a Creative
Commons licence (CC BY 4.0) to ensure all their data is publicly available and that others are able to test the LDH foil in specific settings, replicate their findings and build upon their existing research.
Field trials in various communities will be crucial to gather user feedback, assess its practicality and identify any cultural or logistical considerations. Moreover, partnerships with local organisations, governments and non-governmental organisations will be essential for production, distribution and education on its proper use.
The journey toward clean water for all is a shared responsibility. The research team believes LDH foil represents a powerful tool in this endeavour.
Taufiq Ihsan: Department of Environmental Engineering at Universitas Andalas
MIDDLE
MAN
6 THINGS TO CONSIDER BEFORE YOU START DROPSHIPPING AS A BUSINESS
DIGITAL ECONOMY
You buy a new phone case from an online retailer. The phone case arrives safely at your house, the online retailer makes a small profit and everyone is happy.
But the phone case didn’t come from the retailer’s premises. It was sent directly from the manufacturer. The only thing the online retailer did was take your order and organise for the factory to deliver the case to your home.
This is dropshipping: where an online seller organises to have purchased products sent to buyers directly from the wholesaler or manufacturer, rather than sending it themselves. Many see dropshipping as, if not their main business, then as a valuable side hustle to help bolster income when the cost-of-living crunch is making it hard to make ends meet.
In other words, the seller doesn’t own a warehouse of products ready for shipping. They’re a middleman. They organise delivery of products to customers without taking physical possession.
Dropshipping may sound like an appealing side hustle to help offset the cost-of-living crunch, but there are downsides, too.
So, what do you need to know before you become a dropshipper?
THERE ARE PROS AND CONS
Dropshipping has doubled since 2020, and is expected to double again by 2027.
Websites with e-commerce features are also increasingly affordable, and since the barrier to entry for starting a dropshipping business is low, it has become a popular method for making extra money.
Dropshipping eliminates 'inventory costs', which includes things like: buying the products upfront; paying warehouse rent; and paying staff to package and ship.
Since dropshippers don’t need to hold any inventory, they’re able to offer a wider selection of products to sell. Low startup costs also make dropshipping more accessible to a wider range of people than traditional businesses.
So, dropshipping has clear advantages over traditional methods of selling online— but it’s not all rosy.
The main problem with dropshipping is loss of control over the delivery and fulfilment process. If a problem with delivery arises, it can be more difficult to resolve. Is the problem with the manufacturer? The warehouse? The delivery service? Sometimes it can be unclear and take longer to address than the customer would like. This can threaten the seller’s ability to offer superior customer service.
Here are six things worth knowing before you launch into dropshipping:
SUPPLIER REPUTATION MATTERS
Dropshipping isn’t new; brands in the late 1990s were doing it. But with this maturity has arisen opportunities for fraud. Counterfeits, knock-offs and general quality
issues are worryingly commonplace in the dropshipping world.
Choose a reputable supplier with clear systems and processes to control product quality and eliminate copyright infringement.
CHOOSE A LOCAL SUPPLIER
To remain competitive, delivery speed is key. If your target audience is in Australia, shipping from foreign soils won’t cut it—the delivery times are too long. Consumers are willing to wait to receive their products on some occasions, but most of the time consumers want it now.
Choose a local, reputable supplier to minimise delivery times.
DON’T ASSUME QUALITY
One of the biggest mistakes dropshippers make is not physically inspecting products before listing them for sale.
Dropshipping enables sellers to offer a wider range, since shelf space isn’t an issue. But that may tempt you to keep adding new products to the catalogue.
The quality of products from dropshipping suppliers varies considerably, and what looks great on screen may look very different in hand. Selling poor quality products means more customer service requests, and ultimately consumers start to associate your brand with poor quality.
Always get a new product sent for physical inspection before listing it in your sales catalogue.
DEVELOP A RELATIONSHIP WITH YOUR SUPPLIER
The best way to resolve potential delivery issues associated with dropshipping is to build a strong relationship with the supplier.
Many suppliers do not offer support services when things go wrong. These suppliers should be treated with caution. Developing a strong, collaborative relationship with a willing supplier makes service failures easier to deal with.
STAND OUT FROM THE CROWD
Doing business online is not easy—all your competitors are just a click or a tap away. Dropshipping is common, and many other websites are selling the same things as you, potentially from the same supplier.
Standing out from the crowd is key. Differentiate yourself from other dropshippers by servicing niche markets and offering superior after-sales support.
THE CUSTOMER SETS DEMAND
Don’t add more and more products to your catalogue until you’re offering everything under the sun; this sets you up for failure because you end up offering everything to no one.
Specialisation is key. Find an easily reachable and sizeable audience and stick to what they want, not what you think they want. Careful attention to sales data will help clarify what it is your customers are telling you they want.
Brent Coker Lecturer: Marketing
The University of Melbourne
SPEAK UP
GIVING FEEDBACK CAN BE DAUNTING FOR NEW LEADERS — HERE’S HOW TO PROVIDE IT THOUGHTFULLY
Giving performance feedback at work can be a stressful experience, especially for new leaders and their employees. It often evokes feelings of anxiety, uncertainty and defensiveness.
Leaders may worry about how their feedback would be received and how it could affect workplace relationships. On the other hand, employees may feel vulnerable and apprehensive about being judged or criticised, which could lead to defensive reactions.
Yet, feedback has never been more important. In today’s world, where complexity and unpredictability are the norm, leaders need access to diverse perspectives and accurate information to make informed decisions and strategically adjust their approaches.
Employees can be apprehensive to speak up at work, so it’s crucial to create a workplace culture that values continuous learning and open communication. This requires everyone in an organisation to engage actively in both giving and receiving constructive feedback.
When feedback is delivered thoughtfully and perceived as constructive by employees, it can bridge the gap between potential and performance and provide clarity in times of uncertainty.
For new leaders, mastering the art of giving feedback involves more than just addressing performance issues; it includes recognising achievements, fostering professional development and building trust with employees.
STAYING COMPETITIVE
Performance feedback offers several benefits that can help leaders and their workplaces. First, feedback helps leaders identify gaps between current and desired performance, allowing them to detect limitations and develop strategies for improvement. By understanding and addressing these discrepancies, leaders can enhance their workplace’s performance.
In addition, managerial roles are often ambiguous and uncertain, especially as leaders move up the organisational hierarchy due to broader responsibilities, complex decisionmaking and less direct oversight.
Traditional control mechanisms, like job descriptions and formal performance reviews,
are often inadequate for guiding leaders through these complexities. In such cases, actively seeking out feedback becomes crucial for effectiveness.
Leaders need diverse feedback sources such as peers, customers, mentors and industry experts to understand and respond effectively to the rapidly changing business environment. Feedback from employees helps leaders tap into the collective intelligence of their teams, make informed decisions, identify strategic misalignments and develop innovative solutions.
Lastly, regularly seeking feedback from employees fosters a culture of continuous learning and engagement in the workplace. It strengthens relationships, shows appreciation for employees’ knowledge and motivates them to contribute to organisational goals.
SEEKING OUT FEEDBACK IS KEY
It’s equally important for leaders to seek and receive feedback from their employees. Embracing feedback enhances adaptability by providing leaders with real-time insights into what’s working and what’s not, allowing them to make necessary adjustments.
Leaders who actively seek feedback can refine their strategies, adapt their leadership styles and improve inclusiveness within their teams, leading to better decision-making and stronger team dynamics.
When leaders seek feedback, they demonstrate humility and a commitment to self-improvement, which instils these values in their employees.
Leaders who actively seek feedback are seen as more effective, trustworthy, authentic and respectful. This behaviour positively impacts performance across all sectors. Employees working under such leaders feel more engaged, committed, resilient, energised, creative and satisfied at work.
Despite the benefits, many leaders— especially new ones—find giving and receiving feedback daunting and avoid
it. Performance feedback can improve performance and leader effectiveness, but it can also lead to lower performance and interpersonal conflict if not done right. This happens because our performance at work is closely tied to our perception of who we are. Negative feedback can hurt our positive self perceptions, leading to defensive reactions.
HOW TO PROVIDE THOUGHTFUL FEEDBACK
To ensure feedback is received positively and constructively, here are five strategies to consider:
1. DEVELOP YOUR SKILL
Improve your ability to give feedback by educating yourself through articles, videos and formal training. Observe other leaders to learn from their techniques. Practise delivering feedback in low-stakes situations to build confidence and proficiency, and take time to reflect on your experiences.
2. CHECK YOUR MOTIVES
Before giving feedback, ensure your intentions are genuinely aimed at helping the recipient improve, rather than to criticise or vent any frustrations. If you are seeking feedback, approach it with an open mind and be ready to listen and act on the insights provided.
3. CHOOSE THE RIGHT TIME AND SETTING
Timing is everything. Provide feedback when both you and the recipient are calm, and avoid times of high stress. Deliver feedback while the context is fresh and the details are clear. Choose an appropriate, comfortable setting
where the recipient feels safe and open to discussion. These conversations should not feel intimidating for either party.
4. SEPARATE PERFORMANCE FROM SELF-CONCEPT
When giving feedback, focus on task-related processes—steps, techniques and strategies— rather than on the person’s abilities or value. This approach reduces defensiveness and promotes improvement by directing attention to the task at hand. Be specific and clear when acknowledging good performance in employees.
5. TREAT FEEDBACK AS A GIFT
When asking for feedback from employees, acknowledge the risk they take in sharing their insights, such as potential discomfort or fear of negative repercussions. Appreciate their courage and use the feedback to grow and improve. Practise humility, and recognise that constructive feedback gives you the opportunity to benefit personally and advance your career.
Giving and receiving feedback constructively is more than just another leadership skill—it’s a strategic tool that can build trust while driving better decision-making. Practise it regularly, and watch both your leadership capacity and team dynamics flourish.
Leda Stawnychko
Assistant Professor: Strategy and Organizational Theory
Mount Royal University
Mehnaz Rafi
PhD Candidate Haskayne School of Business University of Calgary
NEW MEDICAL FUTURE
IS ARTIFICIAL INTELLIGENCE PART OF THE SOLUTION TO SOUTH AFRICA’S HEALTH CRISIS?
The South African healthcare system faces challenges from insufficient resources and suboptimal working conditions that can contribute to professional burnout and systemic inefficiencies. The introduction and effective implementation of artificial intelligence (AI) is one way to address these critical issues, providing innovative solutions to enhance the quality of care, improve operational efficiency and empower healthcare professionals.
ADDRESSING PROFESSIONAL BURNOUT WITH TARGETED AI SOLUTIONS
As in many countries, but perhaps increasingly in South Africa, healthcare professionals endure significant burnout, primarily owing to their challenging work environments, limited support and deep-rooted systemic issues.
What AI may introduce is targeted solutions that automate repetitive tasks and provide specialised decision-support tools. These advancements could reduce the cognitive load on clinicians, allowing them more time for direct patient care and complex medical decision-making. In doing so, healthcare AI can improve job satisfaction and raise the standard of care for patients.
HARNESSING DATA TO TRANSFORM CLINICAL MANAGEMENT
The success of AI significantly depends on its ability to integrate and decipher various data sources. In South Africa's resource-
“In South Africa's resourceconstrained settings, AI should become invaluable in using the extensive data generated across healthcare systems”
constrained settings, AI should become invaluable in using the extensive data generated across healthcare systems.
In the future, AI-driven analytic tools will be able to synthesise data and use it to effectively monitor and manage common chronic diseases such as hypertension and tuberculosis, providing healthcare workers with timely and actionable insights.
OPERATIONAL EFFICIENCY THROUGH AI–DRIVEN INNOVATIONS
Operational inefficiencies are a substantial obstacle to healthcare delivery. AI has the potential to remove these barriers by automating administrative processes, which will be particularly valuable for functions such as patient scheduling and claims processing.
In addition, AI–driven analytics have shown to be effective at identifying operational bottlenecks and suggesting workflow adjustments that can improve the quality of care and reduce costs. If effectively deployed in local settings, this capability could be a key to bridging the divide between South Africa's public and private healthcare sectors.
PERSONALISING HEALTHCARE WITH GENERATIVE AI
There is support for GenAI as a tool to assist in redefining patient and clinician experiences in healthcare. Digital applications can facilitate personalised healthcare pathways for patients, for example, by using AI–enhanced virtual health assistants and tailored wellness tools.
For healthcare providers, GenAI offers the potential to simplify the user experience when
using electronic health records to mitigate documentation processes, enabling clinicians to invest more time in patient engagement over administrative duties.
PIONEERING HEALTHCARE RESEARCH WITH AI
Another area where AI can play a part is to function as a dynamic catalyst for enhanced healthcare research to unveil new and faster insights for developing groundbreaking treatments. AI should help identify the right patients for clinical trials, analyse patient-reported outcomes, and unify and correlate the data from different systems needed to accelerate the development and distribution of new healthcare solutions. This is particularly important in South Africa, where advances in healthcare research are critical to
improving and reducing the total cost of public healthcare outcomes.
In summary, the most pertinent areas where AI could have a positive impact on healthcare include:
• AI augmented healthcare applications— where AI is used for diagnostic accuracy, predictive analytics, personalised treatment plans and operational efficiency in both the public and private sectors.
• Enhanced diagnostics—AI is being used to supplement and enhance human diagnostic analysis of medical images that can identify patterns that human eyes may miss.
• Operational efficiency—When integrated with operational systems with access to the right data, AI could help optimise
scheduling, reduce administrative burdens and streamline workflows.
• Patient care—Today, there are trials that use AI–powered chatbots and virtual assistants to provide continuous patient support and personalised health recommendations.
A NEW MEDICAL FUTURE
AI can potentially transform South Africa’s health system and the health of its people by addressing critical systemic challenges to enhance the overall quality of care. It needs to ensure its healthcare providers are already ready for AI to play a pivotal role in creating a sustainable and efficient healthcare system.
The benefits of AI will only be realised if the supporting requirements like regulations, training and data access are in place.
South Africa can change its future for the better by investing in responsible AI to make measurable and meaningful improvements in healthcare. And, given South Africa’s unique genetic history and mix, it may help improve the world's health.
Henry Adams Country Manager InterSystems South Africa
MAKING ROADS SMOOTHER AND SAFER
The Discovery Pothole Patrol is a joint initiative with Avis Southern Africa, the Johannesburg Roads Agency (JRA) and the City of Johannesburg. Together, we’ve fixed over 240,000 potholes since 2021.