The private sector is ready to get behind government’s multitrillionrand infrastructure programme
In a world in which the government and central bank have several means available to stimulate the economy, infrastructure spend is a powerful anti-recessionary fiscal policy tool.
In South Africa, however, economic growth has been constrained by lower levels of investment in infrastructure than in other developing economies, which has been exacerbated by specific issues such as ageing infrastructure and infrastructure bottlenecks.
The COVID-19 crisis and the fiscal support needed to alleviate the damage done to businesses and the most vulnerable citizens as a result of the lockdown could also put the government’s future infrastructure ambitions at risk.
The extent of infrastructure spending in an economy is reflected in the level of gross fixed capital formation (GFCF) as a percentage of gross domestic product (GDP). The measure captures how much money as a proportion of total economic activity is being invested in capital goods such as equipment, tools, transportation assets and electricity and various measurable outputs of these.
South Africa’s reported GFCF has been historically low, with the exception of the build-up to the FIFA World Cup in 2010. Latest statistics show GFCF as a percentage of GDP was 18.19% in 2019, which is considered far too low for a developing economy. Several studies consider an acceptable norm to be in the region of 30% to 35% of GDP.
South Africa’s GFCF ratio also has some way to go before it will achieve the target in the government’s National Development Plan of 30% by 2030.
While assessing this, it is important to note that a country’s current debt level does have a bearing on its ability to fund infrastructure initiatives—and South Africa’s government debt burden does not bode well for the country’s infrastructure funding capacity.
South Africa’s gross loan debt to GDP ratio is expected to exceed 90% over the next three years.
When you include guarantees to state-owned enterprises (SOEs), the government’s debt-to-GDP ratio is expected to rise to well above 100% compared to the average emerging market level of around 45%. A debt-to-GDP level of more than twice as large as the average emerging market means the South African government will have very little scope to fund large-scale infrastructure and developmental initiatives, and thus the burden will fall elsewhere.
Although there are historical reasons for this high debt-to-GDP burden, the government’s finances have also been stretched by the social and economic measures it has needed to put in place to alleviate the economic fallout from COVID-19. A fiscal rescue package of R500 billion will add to the already high debt burden, and economic lockdowns have already resulted in lower levels of revenue generation—putting the government in a difficult position fiscally.
Banks as well as institutional investors are no strangers to fulfilling a funding role, but have become more apprehensive about doing so, given the government’s governance, financial and operational SOE failures.
While the various developmental finance institutions need to fulfil a specific role when it comes to industrial policy, economic development and providing
credit-enhancing capital, capital market players need to have confidence that the policy environment will remain stable and that potential investments will offer sufficiently attractive risk-related returns.
To a great extent, the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) met these criteria, enabling the private sector to play an important role— committing about R200 billion to the programme to date. REIPPPP is seen as an important success story, particularly in respect of the impressive implementation role that the Independent Power Producers Office played in that programme.
Unfortunately, the success of this programme has not been emulated in other sectors and there has not been a co-ordinated approach to address the other necessary infrastructure investments until now.
That may change with the Investment and Infrastructure Office set up by President Cyril Ramaphosa. The government gauged private sector investment appetite recently when it presented various project pitches for various sectors deemed a priority to the broader market, as a precursor to the inaugural Sustainable Infrastructure Development Symposium of South Africa. Sectors the government has identified as in need of infrastructure investment include energy, digital infrastructure, water and sanitation, human settlement, agriculture, and transport.
The government’s latest engagement with the private sector is a step in the right direction. It crowds in potential private sector investors in a much more coordinated manner and includes them in assessing how these various initiatives can be funded.
It is encouraging that the government is engaging with capital market participants during the conceptual stage of some of these projects because it will allow concerns to be addressed earlier and thereby potentially ensure a much higher success rate.
Although the range of projects is wide, there are several significant ones that could change the South African landscape to the benefit of all. From a digital perspective, infrastructure investment in broadband fibre connectivity could provide periurban (townships) and rural communities— which have been traditionally underserviced—with affordable access to broadband connectivity.
Government facilities such as schools, clinics and police stations would also benefit. More traditional investment in, for instance, transport infrastructure, would facilitate trade and the transport of goods and services. The government’s focus will be on upgrading existing toll roads, bulk rail transport lines and harbours.
The infrastructure initiatives under consideration could be important contributors to getting South Africa out of its current low-growth trap. Although the estimated R1.5 trillion needed to fund the projects over the next decade is a tall ask, the private sector is ready to fund them as long as they are well structured and managed, that investors are compensated for the risks they are taking, and that they ultimately have policy certainty.
Futuregrowth has been a longstanding institutional investment partner in infrastructure and developmental finance, funding projects for close on 24 years. It manages the largest debt fund of this nature in sub-Saharan Africa—the Futuregrowth Infrastructure and Development Bond Fund—which has a market value of more than R15 billion. It has funded various transactions over the last two decades to the benefit of all South Africans, and will continue investing in projects that provide the impetus the domestic economy needs to lift its economic growth rate to sustainable levels in the future, while earning riskadjusted returns. ◆
Jason Lightfoot Portfolio Manager @ FuturegrowthFuturegrowth Asset Management is a licensed discretionary financial services provider.
haven’t let COVID-19 take us down, and we don’t intend to let that happen. Indeed, times have been tough, but we’re still ticking along nicely. Adjustments have had to be made and belts tightened, but the show must go on.
At the start of lockdown in April, we committed ourselves to persevering and not retrenching any staff. It’s now four months later and the sign on our door is still “Open for business”. It hasn’t been easy, but thanks to a committed and dedicated staff and management, we’ve been able to stare down the monster.
So how have we risen above these tough economic challenges? The seeds of our success were sown pre-COVID. We’ve always run a tight ship when it comes to our finances. But that doesn’t mean we skimped—instead, we invested in the right areas and didn’t spend lavishly.
In this edition, we focus on the effects of the COVID-19 pandemic on business and industry in Africa, and provide much-needed advice on how your own enterprise can survive this period and plan for the ‘new normal’.
I’d be remiss if I didn’t mention our advertisers and suppliers. My gratitude to them cannot be adequately expressed. Many a relationship has been ruined by money, and thanks to good communication, and a bit of give and take on both sides, our relationships will endure and strengthen.
So where to from here? From a production standpoint, we’ve decided to move away from print for the remainder of 2020. We will review this decision in the new year. Until then our magazine will only be available in digital format. Aside from being able to access it on our websites www.abizq.co.za and www.avengmedia.co.za, it is also available on www.magzter.com and www.yumpu.com
In closing, I wish you and your businesses continued success.
Keep safe, and enjoy the read.
Ashley van SchalkwykPUBLISHER
EDITOR Ashley van Schalkwyk ashley@avengmedia.co.za
CHIEF SUB-EDITOR Tania Griffin tania@avengmedia.co.za
DESIGN AND LAYOUT Stacey Storbeck Nel (Indio Graphic Design) indiodesign@mweb.co.za CONTRIBUTING WRITERS Africa Newsroom, Werner Olivier, Klaus Meyer, Carsten Lund Pedersen, Thomas Ritter, Hailay Gesesew, Dr Kevin Kariuki, Tim Baines, Ali Ziaee Bigdeli, Nancy Coulson, Nicola Christofides, Paul Maylam, Nada R. Sanders, Olusegun Obasanjo, Hailemariam Desalegn Boshe
Africa’s post-pandemic recovery is likely to be prolonged and uneven, but could also be transformative
Specialist risk consultancy Control Risks (ControlRisks.com) and independent global advisory NKC African Economics—the Africa-focused subsidiary of Oxford Economics—launched the fifth edition of the Africa Risk-Reward Index in September 2020.
The Africa Risk-Reward Index is defined by the combination of risk and reward scores, integrating economic and political risk analysis by Control Risks and NKC African Economics. Risk scores from each country originate from the Economic and Political Risk Evaluator, while the reward
scores incorporate medium-term economic growth forecasts, economic size, economic structure and demographics.
The index offers a comparative snapshot of market opportunities and risks across the continent. It provides a grounded, longer term outlook of key trends shaping the investment landscape in major African economies, which should inform the strategies of organisations looking to invest in or grow their business in Africa. Investors seeking to minimise risks and maximise rewards are cautioned not to focus on headlines but rather on specific country, sector and project contexts.
The COVID-19 pandemic has undoubtedly eroded the overall improvement in risk-reward scores seen across the African continent in recent years, but this should not deter investors. Africa’s recovery may be prolonged and uneven, but it could also be transformative.
The pandemic’s huge economic cost has triggered a universal drop in our reward scores, but the impact on risk scores has been more varied. Ethiopia has seen the largest ratings drops as COVID-19–induced challenges combine with escalating ethnic tensions in the context of a delayed election. Egypt’s risk score has remained relatively steady, but its reward score has been badly hit by the triple blow of the pandemic, low oil prices and plummeting tourism revenues. Algeria’s risk score has improved since the mass protests and landmark elections of 2019, but challenges for its oil-dependent economy have still dragged down its overall score.
“The COVID-19 pandemic is a global crisis, but Africa’s recovery will be slower and more uneven than most,” warns Barnaby Fletcher, associate director at Control Risks. “However, this recovery will be an opportunity for governments across the continent to address structural constraints and promote new solutions. We are already seeing signs that they are doing so, and for investors this opens up some interesting opportunities.”
This 2020 edition of the Africa
Ensuring all persons working in the methane-based environment are competent to undertake work which complies with the relevant legislation and national health and safety standards in order to provide safe and efficient operations from point of supply to users in the domestic, commercial and industrial markets within Southern Africa. Covers Industrial Thermoprocessing, Compressed Natural Gas (CNG), Liquified Natural Gas (LNG), Biogas, and Natural Gas Vehicles (NGV)....
· Providing training to persons working in the gas industry to become competent gas practitioners · Developing skills, competencies and ensure knowledge sharing throughout industry · Assisting industry to comply with legislation · Educating stakeholders in safety and standards · Advocating the safe and efficient use of gas and pressure equipment
Risk-Reward Index examines the longer term implications of COVID-19 on Africa. The first article looks at the longer term impact of COVID-19 and imagines a post-pandemic landscape, while the second explores the role that African tech can play in revitalising more traditional industries. The last article covers the growing efforts by both external and domestic actors to manipulate the public debate in Africa through influence operations and disinformation campaigns, and the risks these efforts pose to commercial companies.
The immediate impact of COVID-19 will see Africa experience its first recession in 25 years, but more worrying is the lack of fiscal headroom available to African governments to engage in stimulus spending. For many countries, economic recovery will have to be driven by their private sectors, which were already weak and have only become weaker during the pandemic.
However, there are already indications that the scale of this crisis is prompting some welcome reforms. Faced with a volatile global landscape, African governments have a pressing need to develop downstream manufacturing, regional supply chains and domestic capital markets. There are also indications that large portions of the workforce are entering the formal economy to access government financial support and cope with pandemic containment measures. Some of these trends were set in motion before the outbreak, but COVID-19 seems to have accelerated them. Investors who stay
to fall in 2020, a consequence of both recent high-profile sector struggles and the impact of COVID-19 on external finance. However, any such decline should be viewed as an opportunity to reset expectations and approaches, not as an indication that the affected sectors are becoming less attractive.
COVID-19 has served to emphasise the need for tech and digital solutions across the continent. It has sparked the development of healthcare apps to help fight the pandemic, e-commerce platforms to facilitate life under lockdown, and new payment and microinsurance systems.
“The economic impact of COVID-19 will be varied, but the recovery will be even more so,” says Jacques Nel, head of Africa Macro at NKC African Economics. “The optimists will hope to see a race to the top as governments undertake desperately needed reforms, while the pessimists will see a continent set back more than a decade. The reality will be somewhere in between, with each country finding a unique spot on this spectrum.”
with Africa despite the current downturn will not only have an important role to play in its recovery, but will also see some exciting changes and opportunities.
Investment into African tech has reached record levels in recent years. These are likely
Digital and tech is set to play a far greater role in post-pandemic Africa than it ever did before. The wave of informal workers and companies entering the formal economy will need access to basic financial and legal services, which are likely to be provided through online or mobile platforms. Digital solutions may also help facilitate the growing push to build regional supply chains.
23 February
www.infocusinternational.com/ev
Even without the rapid growth of electric vehicles, our current power systems are in the midst of a disruptive transition toward cleaner, diversified and more flexible structures. If a transition from internal combustion engines to EVs is to be achieved, what will be the impact on these systems? What are the barriers to scale, and which solutions (and hence market opportunities) will be essential? This course provides a comprehensive introduction to the multi-sector issues that must be understood and integrated, plus the competitive battles ahead.
1 to 5 March
www.africaenergyindaba.com
The 13th Africa Energy Indaba Conference will discuss, debate and seek solutions to enable adequate energy generation across Africa. A diverse group of luminaries and high-profile speakers will share their real-world insights about the changing energy landscape in Africa. In addition, the Africa Energy Indaba will host a 30-day exhibition where world-class industry organisations will demonstrate their commitment to provide the solutions Africa needs.
2 to 4 March
www.sankalpforum.com
Since 2009, Sankalp Forum has brought together thousands of entrepreneurs, investors, corporations, multilaterals and policymakers who are committed to furthering the cause of development through entrepreneurship and innovation. Sankalp also engages with governments, corporations, influential platforms like the G7 and G20, media and civil society to drive a paradigm shift in inclusive development approaches.
3 & 4 March
www.mckinsey.com/careers/womens-globaloperations-summit
The Women’s Global Operations Summit gives you the opportunity to connect with women all over the world. In different sessions you will learn more about McKinsey and the Operations Practice and how its diverse teams work on global projects. During a client case workshop, consultants will present one of McKinsey’s client cases to you, giving you firsthand insights into the work of a McKinsey consultant. There will also be a soft-skills workshop, where you can learn new skills.
3 to 5 March
www.ciltinternational.org/events/africa-forum-2021
Africa Forum seeks to bring together all CILT (Chartered Institute of Logistics and Transport) member countries in Africa—and other members across the world—to network and discuss pertinent supply chain, logistics and transport issues affecting the continent. This year’s theme will be “Sustainable Implementation of the Africa Continental Free Trade Agreement: The Role of Logistics, Transport and Industry”.
19 March
www.infocusinternational.com/solar-online
Attendees will gain a good understanding of the key factors from an integrated, multidisciplinary and commercial viewpoint, including: target market analysis, economic competitiveness, channels-to-market, financing influences and risk, project development processes, best practices and emerging technologies. The course schedule includes illustration of key project development considerations including energy yield, financial and other simple calculations, along with the chance to discuss key planning and market environment considerations.
Contact Tel: 011 726 5543 Cell: 079 567 4416 Email michael@mcpelectical.co.za carlos@mcpelectrical.co.za player@mcpelectrical.co.za info@mcpelectrical.co.za
Digitisation of the plumbing industry is vital in order to meet the changing demands imposed by an evolving customer base
Water is a life-sustaining, scarce resource. Fighting drought through water-wise behaviour can be achieved by having better insight into one’s consumption patterns. And who better to educate consumers about water-saving tips than their trusted plumber?
Developing smart solutions that are simple to install and use allows plumbers to take advantage of 4IR (4th Industrial Revolution) technology that is widely available and cost-effective. “Digitisation is an enabler to solving problems,” says Ushal Moonsamy, chief solutions officer at SqwidNet. “Businesses should not digitise for the sake of digitising, but rather digitise to drive business gains that lead to better customer and employee experiences, reduction in operational costs, and staying ahead of the disruption curve.”
SqwidNet is the only Sigfox network operator in the country, and covers more than 90% of South Africa’s population and national roads. Sigfox is a low-power wide-area network technology that is disruptive in nature, as it gives non-powered assets a voice—giving us datapoints that were not possible before.
Water meters are a perfect example of non-powered assets. Using radio technology such as Sigfox allows water meters to send important information like daily consumption down to the hour, as well as leak detection. This information not only keeps consumers aware of their spend but also allows plumbers to change their business model, moving from reactive to proactive in serving their customers’ needs.
Currently, plumbers provide a reactive service: either triggered by an insurance claim, building of a new home, or blocked drains. They provide a need-based service and many do not possess the skills of upselling solutions to customers. It’s basically a ‘fix it and go, until you need me again’ kind of service. However, today’s customers are becoming more green conscience and cost conscience, looking for ways to take control of their spend. It is indeed important that the current operating model of plumbers changes to meet customers’ needs, or be disrupted by new, more digital players.
The good news is that plumbers are already on the road to digital savviness, being able to operate chat programs such as
WhatsApp, to build a digital presence on websites, and to communicate with customers via email. What is glaringly missing, though, is the intersection of IT and their hands-on job.
With water pricing going up by an average of 15% to 20% per annum, it is only a matter of time before cost control becomes a critical requirement to consumers in the water space. For instance, one of SqwidNet’s partners, Ontec, has observed that of the customers who purchased a GaugeIT Smart Water solution, 57% detected leaks they were not aware of. Through the fixing of these leaks and changing consumption behaviour, the customers were able to save R225 per month on average.
Taking bolder steps to reinvent their offerings in the market by embracing digitisation will allow today’s plumbers to offer a new line of innovative services to their customers. IT will also drive transparency in billing, catch leaks early, avoid bill shock and, ultimately, realise the bigger dream of South Africa becoming a water-wise nation.
These solutions can be communicated via Sigfox radio technology for five years without
interruption. The tech is water- and dustproof, and requires minimal intervention from the plumber—therefore it’s ideal to bridge the digital gap in their offerings.
A Sigfox-powered Smart Water Solution such as GaugeIT is a ready-made, off-theshelf service product. With a few hours of intensive training on how to install and sell, plumbers can be up and running in a matter
Macrocomm believes digitisation of the plumbing industry is vital in order to meet the changing demands imposed by the evolving customer base. Says Sivi Moodley, group CEO at Macrocomm, “Customers are continually becoming more tech-savvy and demand instant gratification. The extreme cost pressure faced by the industry, as well as the strategic nature of water resources,
Macrocomm is strategically aligned to SqwidNet’s vision of providing connectivity, as well as deploying holistic customised solutions that address challenges faced by modern business in a cost-effective manner. The company works closely with the SqwidNet team to understand and create market trends that lead to new innovative products. Furthermore, SqwidNet technology has given Macrocomm the opportunity to create products and services that are now more cost-effective, with longer battery life. This allows entry into new industries and markets that were traditionally limited due to the high cost of connectivity.
While digitisation changes a plumber’s business model, it also changes the world for the better—driving sustainability for generations to come. “Doctors are remembered for healing people, banks are remembered for keeping our money safe; it is time that plumbers are remembered for their proactive service and driving watersaving habits, rather than simply replacing a burst geyser or pipe,” says Moonsamy. “Plumbers are at the forefront of cuttingedge technology that can enable business model innovation and change everything. It’s now left to the plumbers to take on the opportunity and see their business through a new light that leapfrogs them into the digital space.”
of a day. Starting at a distributor price of R1 400 once-off over a three-year period (including application, device and connectivity costs), it is clear that the value outweighs the cost, with the solution paying back itself within the first year of use.
Understanding that plumbers are hands-on and experiential learners, SqwidNet has worked closely with partners to craft a Digital Plumber training programme tailored to their needs. This specially designed training is offered nationwide in conjunction with Ontec, the Institute of Plumbing South Africa and Macrocomm—a smart solutions business that harnesses the power of the Internet of Things and which is highly experienced in smart water solutions.
necessitates the implementation of smarter, simpler solutions. Digitisation will offer a fairly paperless environment, new product training, new solutions and entry into the world of 4IR. The key to digitisation and a modular approach is that it should be easy, practical and cost-effective.”
SqwidNet’s life-changing goal is, through the use of its technology, to drive a nation that conserves water, grows businesses and makes our world a better place. ◆
For more information on how your business can change lives through the Internet of Things, visit www.sqwidnet.com.
Koen & Associates Architecture (K+A) is a world-class infrastructure development firm dedicated to sound and innovative architectural solutions that give maximum front-end results in the built environment.
Founded in 2011—with the drive to create sustainable, innovative architecture and deliver excellence—K+A has always been dedicated to improving people’s lives and environments through the use of environmentally sensitive designs and a commitment to innovation quality, and value. From the initiation of a project to the very end, the firm’s philosophy is built around keeping clients involved, allowing a hands-on approach.
Architecture is equal parts art and science, creative and analytical. Today there are new challenges in the field of architecture. A more responsible stance on environmental sensibilities requires design professionals to remain abreast of improvements in material and building technologies.
Aesthetic architecture is a must, but K+A prefers to measure success by the firm’s ability to respond to market requirements, and meeting the developer’s business objectives. It takes great experience to define a viable business concept, and then to translate it into an architectural plan that is highly sensitive to market needs.
The multidisciplinary practice provides architectural project management, quantity surveying and construction services. Service offerings include: Master Planning, Architecture, Interior Design, Interior Décor, Construction and Furniture Design. K+A has an ever-developing team of dynamic individuals who focus on producing elegant aesthetic solutions to the project briefs with which the firm is entrusted.
National Electronic Media Institute of South Africa (Nemisa), Parktown, Johannesburg: Creation of an environment that encourages collaborative learning and
creativity, and is flexible enough to
Meadow Point, Soweto, Johannesburg: The architectural concept of the new extension and renovation of the shopping centre was to create a seamless flow between social spaces and retail stores—a hybrid of a marketplace and public space where social interactions are more encouraged among people.
HILTI SA, Gezina, Pretoria: This outstanding high-street business environment facilitates extensive on-grade staff parking and excellent proximity to labour and transport, as well as secured power supply. The business park practises sustainable energy-efficient principles such as water harvesting, water-wise landscaping, waste sorting and recycling. ◆
Should you be interested in starting your next development with K+A and require more information, visit koenarch.co.za.
Improving people’s lives and their environments through sustainable, innovative architecture
evolve with the introduction of new technologies and methodologies
Koen & Associates Architecture is an award-winning Design & Build, infrastructure development company. Refined over the last 8 years of business, our proven track record puts you as the customer at the center.
Successful projects require complex teams, and our in-house team of expert designers, quantity surveyors, projects managers, contract managers, site foremen and support staff, will work out every single detail of your project and exceed your expectations.
The Design-Build delivery model is the better project delivery method. Single point accountability means that agreed upon developer project goals form the organizational compass for the entire team and project.
We design spaces that improve the occupant’s quality of life using an aesthetic that pushes the boundary while being sensitive to the environment. Koen & Associates Architects view design as holistic process; this process considers human needs while interpreting the main commercial objectives of the building.
location: 3 Centex Close Brooklyn Place Strathavon, 2031
Opportunities for gas lie in the realisation of South Africa’s NDP and the Integrated Resource Plan (IRP)
A significant challenge facing the development of a major gas market in South Africa is the extreme dominance of coal as a primary energy source, and industry’s historic reliance on coalgenerated electricity.
A lack of extensive gas transport and reticulation infrastructure goes hand in hand with this, while other challenges include uncertainty about volumes of indigenous gas available to industry; security of supply; switching and conversion costs; gas pricing; and negativity around the ongoing use of fossil fuels. End users require certainty before committing, while explorers look for a guaranteed market.
On a more positive note, opportunities for gas lie in the realisation of South Africa’s NDP and the Integrated Resource Plan (IRP). Both call for indigenous hydrocarbons –conventional and unconventional – and independent power production to play an
local and foreign companies. Oil and gas exploration requires enormous capital outlay and can represent a risk to workers, communities and the environment. Applicants are therefore required to prove their capabilities and safety record and must carry insurance for environmental rehabilitation.
In addition, all planned activities can only be carried out after completion of an environmental impact assessment and under an approved environmental management plan, after consultation with the public as well as interested and affected parties. Explorers are also required to contribute to skills development through the agency’s Upstream Training Trust.
Driving South Africa’s emerging gas sector while ensuring a well-regulated and responsible environment is a key mandate of Petroleum Agency SA, as is assisting operators with monetising smaller discoveries that may otherwise remain undeveloped, through advertising these opportunities to potential partners.
A diverse upstream industry contributing to energy security through sustainable growth in exploration and development of oil and gas.
increasing role in the nation’s energy mix.
The national power utility also intends to replace coal-fired power stations with gas-fired counterparts, in line with the vision of the NDP. The advent of gas-fired power stations will represent a ready, indigenous market for operators that make discoveries of gas in South Africa, ensuring it will be far easier to monetise smaller discoveries that may otherwise have remained undeveloped.
As custodian, Petroleum Agency SA ensures that companies applying for gas rights are vetted to make sure they are financially qualified and technically capable. Applicants also need to have a good track record in terms of oil and gas exploration activity, as well as regard for the environment. This applies to both
Oil and gas exploration in South Africa is regulated in terms of the Mineral and Petroleum Resources Development Act (MPRDA) of 2002, which stipulates that applicants for production rights are required to submit social and labour plans (SLPs) to assist in transforming the industry, promoting employment and advancing social and economic welfare in South Africa.
Applicants must develop and implement, where applicable, comprehensive SLPs that cover human resourcesdevelopment programmes, community development, housing and living conditions, and employment equity.
In addition to the MPRDA, other acts also regulate the sector – including the National Environmental Management Act, the Royalties Act, the Mining Titles Registration Act and the National Water Act. These acts and regulations have served
Petroleum Agency SA was established in 1999 by Ministerial directive and is mandated through the Mineral and Petroleum Resources Development Act, 2002 (Act No.28 of 2002) together with the National Environmental Management Act, 1998 (Act No.107 of 1998). These Acts provide for Petroleum Agency SA to evaluate and promote oil and gas potential exploration
To promote, facilitate and regulate exploration and sustainable development of oil and gas contributing to energy security in South Africa.
the upstream industry well and are all in line with international standards.
Minister of Mineral Resources Gwede Mantashe and President Cyril Ramaphosa have recently stated that oil and gas exploration and production activities should have their own standalone legislation, separate from that applicable to hard mineral mining. This legislation is being drafted and the agency is part of the team at the Department of Mineral Resources working on it.
In today’s world, oil and gas remain the most critical of energy resources, and Petroleum Agency SA is in full support of those entering the South African oil and gas exploration and production industries. The Agency is fully committed to ensuring that our government and policy-makers sustain the sector for the benefit of all involved and will do everything in its power to advance the industry.
and production activities in South Africa, to regulate oil and gas exploration and the production industry and to archive all geotechnical data produced through oil and gas exploration. The Agency acts as an advisor to the government on issues regarding oil and gas exploration and production and carries out special projects at the request of the Minister.
In today’s world, oil and gas remain the most critical of energy resources.
During the COVID-19 pandemic, almost all businesses involved in the food supply chain have experienced effects ranging from a mild shock to severe disruptions, and further disruptions may be ahead during the second wave.
Yet, not all organisations have learnt critical lessons, and history shows us some companies are destined to remain unprepared for the next waves (www.hsaj. org/articles/167).
Many companies have taken decisive action to survive the pandemic and enhance their supply chain resilience. In doing so, they are protecting their interests and those of their business customers or consumers. Successful firms are taking what is known as a ‘systems thinking approach’ to enhance food supply chain resilience (see thesystemsthinker.com).
In the systems engineering world, systems represent the interconnected complexity of ecosystems that are connected both internally and externally. For example, a food production business is connected to numerous ecosystems internally and to those of their suppliers, business partners and customers.
Businesses have varying degrees of interdependence on infrastructure ecosystems outside their direct control, such as the power grid, telecommunications and Internet service providers. Other ecosystems include banking and insurance, logistics and technology providers, and various levels of government that provide inspections, permits and approvals.
The cascading consequences of an outage, failure or cyberattack in any one of these interconnected ecosystems can be catastrophic for any food business.
When a seemingly small disruption occurs within a company—such as a production line stoppage—the impact may be felt far and wide in the food supply chain. We can view a disruption like a tiny snowball that starts to roll down a mountain and may result in a catastrophic avalanche.
Disruptions can result from actions or decisions of individuals, departments or organisations. For example, in Canada, the government food safety inspectors union, citing health and safety concerns, refused to allow its members to enter meat-processing plants experiencing COVID-19 outbreaks (bit.ly/3jIdGNQ). Like the aforementioned snowball, this decision contributed to a disruption—the plant’s closure—with complex, unintended and potentially devastating outcomes and far-reaching
implications, including domestic beef supply and exports. The outbreaks in geographically concentrated meat-processing plants in Alberta resulted in approximately 75% of the Canadian beef supply going offline when three Albertan facilities closed temporarily (bit.ly/2GtSjSc). That disruption sent ripples through food services and grocery businesses nationwide and resulted in consumer concerns about food security and increasing prices.
Food uncertainty is knowing we have enough food but without the visibility to know where it is in the supply chain. These concerns have led to calls for enhanced supply chain resilience through digitalisation.
To enhance food supply chain resilience during the pandemic, companies should be using systems thinking to consider the unique requirements of food supply subsystems (livestock, for example) and to prepare for potential systems shocks in these interconnected ecosystems (bit.ly/30JS5x3).
We believe it is vital to look through a systems lens to understand how future food chains should interact and how risk should be managed. This is particularly critical as we confront a second wave of COVID-19 and the threat of additional disruptions.
Many organisations have internal silos that barely communicate with other divisions or subsidiaries often dependent on their decisions or output. Using the metaphor of the snowball, without an adequate avalanche detection system, organisations are at a higher risk of a shock or significant disruption. That is mainly because timely, actionable information is not being captured and shared within and across organisations, and because no one has contemplated the potential cascading consequences of interconnected system failures.
Systems thinking can help organisations visually map their business’s ecosystems landscape. Once this is done, they can examine or simulate where a failure or
system shock may come from.
A business should assess its foundational requirements as it determines how to use technology to provide early warnings of potential disruptions.
When businesses apply advanced or predictive analytics tools, such as artificial intelligence and machine learning, these tools can provide invaluable pre-alerts of potential disruptions before they happen, and allow for a course correction. This is akin to GPS warning a driver of an obstacle on the road ahead or traffic congestion with a suggested change of route.
In the figure below, we build on 2013 empirical research (bit.ly/30KuPie) from logistics scholars John R. MacDonald of Michigan State University and Thomas M. Corsi of the University of Maryland by visualising these advanced warning systems that we call tripwires and circuit-breakers.
The circuit-breakers are analogous to the GPS providing a suggested change of route: they help companies correct a disruption before it cascades out of control. For example, closing a food-processing plant for
sanitisation purposes to address an outbreak is a circuit-breaker intervention.
Advances in technology require organisations to continually adapt to new ideas, innovations and methodologies. There is no doubt that many businesses employ brilliant people and technologies, and they just work fine in everyday situations.
Unfortunately, we are living in an unprecedented era of social and economic turmoil and must react accordingly with a strategic, holistic, agile systems view. For food chain resilience, that approach must include integrated early detection alerts and rapid course-correction capabilities. ◆
John G. Keogh Academic Researcher, University of Reading Karen J. Hand Founder and President Precision Strategic Solutions Carl Unis Systems EngineerSUCCESSFUL FIRMS ARE TAKING WHAT IS KNOWN AS A ‘SYSTEMS THINKING APPROACH’ TO ENHANCE FOOD SUPPLY CHAIN RESILIENCE
A multi-billion rand Tshwane Automotive Special Economic Zone, a project by the Gauteng Province, Department of Trade, Industry and Competition, and City of Tshwane.
The Coega Development Corporation (CDC), developer and operator of the Coega Special Economic Zone (SEZ), recently announced that it has been appointed as the Implementing Agent (IA) to develop and operate the Tshwane Automotive Special Economic Zone (TASEZ). The CDC, as a public entity, is the IA of choice in the country due to its unparalleled expertise in mega and complex infrastructure development projects, says Dr. Ayanda Vilakazi, CDC’s Head of Brand, Marketing and Corporate Communications.
The multi-billion-rand TASEZ will mark an important milestone for the Gauteng Province, City of Tshwane and the Department of Trade, Industry and Competition (“the dtic”) SEZ
programme. “SEZs are a catalyst for employment, transformation, socio-economic development and inclusive industry growth,” says Dr. Vilakazi.
“The CDC’s appointment demonstrates our resilience as an organisation, having secured this multi-billion-rand TASEZ project under a difficult operating environment, amid the COVID-19 pandemic,” added Dr. Vilakazi. The CDC provides expertise in the fast and efficient delivery of minor and mega complex infrastructure development projects in South Africa and the rest of the African continent. In addition, Coega has ISO certified systems and processes that guarantee the effective delivery of these projects within scope, time, and budget.
“Our record of unqualified audit opinion by the Auditor General of South Africa (AGSA) on our projects speak for itself. The national government and various provincial government departments trust the CDC with its multi-billionrand infrastructure projects. This has become even more pronounced amid COVID-19 and the need to fast-track economic recovery through infrastructure development and thus, stimulate job creation,” said, Dr. Vilakazi.
The TASEZ was launched in 2019 and the success of it is important to the economic growth of the Gauteng Province. In the 2019 Gauteng’s State of the Province Address, the Honourable Premier David Makhura stated that: “we must be more aggressive and decisive in pushing a vision of turning the entire province into a single, multi-tier, mega special economic zone, based on Hannan, an island province in China, which is an SEZ in itself.”
The TASEZ is “Africa’s First Automotive City” and a key driver of economic growth in the City of Tshwane and the rest of the Gauteng province, with a mandate to promote economic participation for SMMEs and to create decent employment in the region.
“The TASEZ development will create an influx of economic activity to the region as well as generate socio-economic benefits for both local communities and SMMEs in the following industries: Security; ICT Maintenance; Facilities Maintenance; Construction; Automotive Supply Chain; Marketing and Advertising; Catering and Events; and Information and Technology (among others). Both Job Seekers and SMMEs are encouraged to take advantage of these opportunities. For more information on the TASEZ, visit www.tasez.co.za. The TASEZ will also provide social development through the improvement of infrastructure and the provision of facilities not currently available within the area,” said, Dr. Vilakazi.
TASEZ is an attractive world-class automotive city and a preferred investment destination for the automotive industry on the African continent. Its proximity to an established automotive industry in Tshwane allows for increased economies of scale and scope, thereby lowering the cost of doing business. The SEZ offers world-class customised
solutions, incentives, support services and systems for manufacturers seeking excellence, and a productive and progressive location.
As a catalyst for employment, transformation and socio-economic development and inclusive industry growth, it boasts the most skilled labour in the sector, provides easy access to a strong consumer base, and connectivity to both suppliers and potential markets, while promoting export-orientated industries and local integration. Furthermore, the TASEZ provides unparalleled connectivity and harmony between the living city, green city and the productive city of Tshwane including an array of state-of-the-art modern infrastructure and facilities. It provides direct and ready linkages to regional and international markets, making exports easy to the Southern African Development Community (SADC).
“I am certain that the CDC will succeed in assisting the TASEZ to achieve its goals and strategic objectives,” remarked Dr. Vilakazi. The CDC’s role of helping to develop effective and efficient SEZs has become very important in South Africa and on the continent.
According to Dr. LI Yuanchao, former Vice President of the People’s Republic of China, during his visit to CDC in November 2016: “I’ve been to many developing countries and industrial development zones around the world, the Coega IDZ is one of the best that I have seen.” These sentiments were echoed by the British High Commissioner to South Africa, Mr. Nigel Casey, in his remarks in 2017 about the Coega IDZ, when he highlighted impressive developments at Coega: “I’m particularly pleased by the number of investors who have taken advantage of this amazing economic zone and made a great success of their investments.”
The CDC is taking full advantage of the InterAfrica trade, which has been made possible by the signing of the Africa Free Trade Agreement by African countries to promote greater economic integration across the continent. To this end, the CDC’s International Business under Coega Africa Programme is managing the implementation of infrastructure projects in Zimbabwe, Central African Republic, and Cameroon, amongst other countries.
The CDC won a prestigious DTIC’s Investor of the Year Award in 2019 for its exceptional performance in attracting investments as well as excellence in developing and operating the Coega Special Economic Zone.
Furthermore, its performance has been independently verified by Statistics South Africa (STATS SA) that recently issued a report on the Coega SEZ: http://www. coega.com/DataRepository/Documents/ VonPSjxRuIRlNL1cFcRxeWCyy.pdf
STATS SA’s report shows that the total income of the Coega SEZ tenants improved by 22% over the comparative period (2015/16 - 2018/19) indicating an increased contribution of tax returns from the tenants. The Coega SEZ tenants also improved greatly on the net profit before tax, recording R506 million in 2018. The number of jobs increased by 17.3% on average per year. The Coega SEZ contributed to the economy of the region by creating decent jobs with an average salary of R222, 000 improving from R218, 000 per employee in 2015; Coega has outperformed the East London SEZ on many key performance indicators and is assisting other SEZs in the country for the benefit of South Africa.
The drive for growth and development has made Coega not only one of the most successful
SEZs in the country and the number one SEZ on the African continent, but an attractive and ideal investment destination for Foreign Direct Investment (FDI) and one of the country’s leading infrastructure Implementing Agents.
The CDC, with its proven track record in infrastructure implementation and programme management spanning over two decades, has successfully delivered other infrastructure projects in the country within budget, time and scope. The organisation has an arsenal of systems developed to fast track the implementation of infrastructure development projects whilst ensuring the creation of jobs and transforming economies through developing emerging businesses.
The CDC’s Infrastructure Project Management Services include:
• Project methodology and system;
• Development of reporting & monitoring services;
• Integrated planning & budgeting;
• Development of business plans;
• Stakeholder analysis & engagement programmes;
• Procurement of service providers and required equipment;
• On-the-job training & contractor development;
• Human capital solutions; and
• Post-implementation monitoring and facilities maintenance.
INFRASTRUCTURE DEVELOPMENT PROJECTS: Cecilia Makiwane Hospital- a large, provincial, government-funded hospital situated in the Mdantsane township of East London, Eastern Cape in South Africa; and the Kingsburgh Primary School - Lovu Town -in KwaZulu-Natal.of Public Works and Infrastructure; National Department of Public Works; National and Eastern Cape Department of Health, amongst others.
First responsible, traceable and commercially viable artisanal gold supply chain operational in Côte d’Ivoire
After a first export of gold, IMPACT (IMPACTTransform. org/en) and the European Union announced in September that a traceability and due diligence system from mine site to the international market for artisanal gold from Côte d’Ivoire has been successfully implemented as part of the Just Gold project.
The Just Gold project supports artisanal gold miners, a mining co-operative in the department of Dabakala (Hambol region), traders and exporters to ensure artisanal gold in Côte d’Ivoire is produced and sold according to international standards. The project provides evidence of traceability, allowing international buyers to track their gold to the pit in which it was mined. At the same time, it supports private sector actors to complete due diligence on their supply chain to identify, mitigate and publicly report on risks such as human rights abuses, forced and child labour, as well as corruption.
IMPACT is an independent non-profit that transforms how natural resources are managed in areas where security and human rights are at risk. It investigates and develops approaches for natural resources to improve
security, development and equality.
A 755 ingot of gold mined in Dabakala was traced to Abidjan, where the exporter is located, with full due diligence completed on the supply chain. The gold was exported legally to a European LBMA–listed refiner. The refiner signed a commercial agreement with the exporter, based in Katiola, and the
diligence mechanisms for their supply chain—opening a window to the international market for the country’s artisanal miners. At the same time, this export has demonstrated that supply chain due diligence can be commercially viable for all actors, and is both scalable and sustainable. Human rights are not only
artisanal mining co-operative, based in Dabakala Department, for this export and future purchases.
“This first responsible export of artisanal gold is a major turning point for Ivorians who can now count on traceability and due
an ethical imperative, it is a compelling business proposition,” said Joanne Lebert, IMPACT’s executive director.
The artisanal gold sector in Côte d’Ivoire is growing. According to media reports, the country’s gold reserves are estimated to be
“THIS FIRST RESPONSIBLE EXPORT OF ARTISANAL GOLD IS A MAJOR TURNING POINT FOR IVORIANS WHO CAN NOW COUNT ON TRACEABILITY AND DUE DILIGENCE MECHANISMS FOR THEIR SUPPLY CHAIN”
Trollope Mining Services (2000) (Pty) Ltd is a Level 2 BBBEE rated company which is 26% Black owned and provides the services of opencast mining, crushing & screening, civil infrastructure and rehabilitation while operating in the Civil and Mining Industries.
Established in 1975 the company boasts a substantial fleet of equipment and although traditionally operations were predominantly based in the coal sector, current operations have extended into platinum, andalusite, manganese, iron ore, gold, phosphate and diamonds with strategic intent being to diversify into other mineral sectors and grow our geographical footprint into Africa.
600 tonnes, and Côte d’Ivoire is currently the seventh largest gold producer in Africa. There are believed to be more than 240 illegal gold mining sites across the country, mined by tens of thousands of unlicensed miners. According to the Ministry of Mines and Geology, the government loses 479.22 billion CFA (approximately €730.5 million) due to illegal gold mining.
The Just Gold project has continued to operate throughout the COVID-19 pandemic. Artisanal mining communities have been severely affected by the pandemic, as prices paid for gold have typically dropped, while the cost of living has drastically increased. However, the Just Gold project guarantees the co-operative and its members be paid a fixed price, calculated based on a method that minimises the impact of local price
fluctuations in times of crisis.
“The Just Gold project offers Côte d’Ivoire unexplored opportunities for economic activity and development. These days, consumers and the private sector are paying more attention to the conditions in which their products are manufactured—and when they purchase gold, they want to be sure it isn’t tied to illicit trade or human rights violations,”
said Jobst von Kirchmann, Ambassador of the European Union in Côte d’Ivoire.
“The Ivorian government recognises the importance of due diligence in contributing to sustainable development and increasing artisanal gold production, and is taking important steps in this direction. This is even more important given that, under new European regulations coming into force in 2021, European importers of minerals such like gold will be required to complete due diligence on their supply chain.”
The Just Gold project was first successfully implemented in the Democratic Republic of Congo, making it possible for responsible artisanal gold to reach the international market. The project offers incentives for artisanal gold miners to channel their product to legal exporters— and eventually responsible consumers. The EU has provided €1.5 million for the project, which will be implemented in Côte d’Ivoire for two and a half years. ◆
IMPACT/Africa Newsroom (APO Group)
“EUROPEAN IMPORTERS OF MINERALS SUCH LIKE GOLD WILL BE REQUIRED TO COMPLETE DUE DILIGENCE ON THEIR SUPPLY CHAIN.”
Tailings storage facilities (TSFs) have been a feature of mining operations around the globe since mining began. They are the depositories of waste or gangue material from mining operations and mineral processing plants, or the storage facilities for pollution control. In some cases, they may still contain low-grade mineral, or be composed of fines that are not economically feasible. They may also contain reagents and other radioactive or potentially harmful minerals and chemicals, which could damage ecosystems in the event of their escape.
Tailings facilities are each in a way unique, either in terms of location, terrain, design and construction. Furthermore, in terms of design and construction, debate occurs globally on the merits and demerits of upstream and downstream facilities, and wet or dry facilities.
Following failures of TSFs around the globe over many decades, but especially in the last few years, great pressure from civil society and the investment community has resulted in calls for more stringent standards and audits, as well as public disclosure of the results of risk analysis and monitoring.
This has culminated in the recent publication of the International Council on
Mining and Metals (ICMM) Global Standard, as well as the development of a standard by the International Commission on Large Dams (ICOLD). At the same time, the Global Mining Professionals Alliance has called on its members to participate actively on a Global Action on Tailings (GAT) group, to ensure crossfertilisation of knowledge and learnings about TSFs across the globe.
In addition, and in response to calls from the Church of England and the Swedish Pension Fund, many mining companies conducted deep-dive self-audits during 2019 and 2020, which they published on their websites for public scrutiny, as the demand for transparency has increased.
In southern Africa, the Southern African Institute of Mining and Metallurgy has convened a Task Group that includes industry professionals, academia, the SAIMM, and the South African Institute of Civil Engineers (SAICE). This group has formed the organising committee for the presentation of an international conference on tailings facilities management, to be presented in November 2021 at Sun City.
The topics to be covered will follow the format of the ICMM Standard, as well as other topics. These include:
• Risk management and processes for TSFs
• The role of the regulatory authority
• The view of industry
• Stakeholder engagement and affected communities
• An integrated knowledge base created through case studies and learnings
• Design, construction and operation of TSFs
• Monitoring of TSFs in real-time - internal, external and satellite imagery
• Management, governance and reporting of TSFs
• Emergency response and long-term recovery
• Public disclosure and access to information
• Competence and qualifications of “Engineers of Record”
• Environmental impacts
• Modelling and simulation
• Research and the possibility of mining with no
• Remining of TSFs
• Case studies.
While at this stage the event is being planned as a full conference, contingency plans are also in place to present a hybrid or virtual event, depending on the status of the COVID-19 pandemic during 2021. ◆
EVERY ORGANISATION SHOULD PRIORITISE THE UPSKILLING AND RESKILLING OF THEIR LEARNING AND DEVELOPMENT TEAMS FOR 2021
Today, the survival of many organisations depends on their plans to leverage cutting-edge artificial intelligence (AI) technologies to transform their workplaces into augmented environments.
A 2019 IBM study (ibm.co/3dqXbTV) found that, as a result of AI and intelligent automation, 120 million workers will need to develop new skills or even be transitioned out of companies to different jobs in the next three years (bit.ly/3lHFwKM). Half of the surveyed organisations had done little to rethink their training strategies to respond to this urgency.
For that digital transformation to happen, organisations must avoid the costly ‘buy, not build’ talent strategy that involves opting for expensive new hires instead of retraining their current employees (on.wsj. com/3124BYL).
Instead, they need to launch a reskilling revolution (bit.ly/3jUY1uI) that places their employees at the centre of the digital transformation, that focuses on them as human beings with unique capabilities and that helps them collaborate with new technologies (see www.youtube.com/ watch?v=Qfpmggpsdtk).
But do those helping to lead the
‘reskilling revolution’ meet the requirements of the future of work? (bit.ly/3iRVT5G)
There is a desperate need for innovative, even disruptive approaches for training that involve many types of learning (see www. ibm.com/topics/training-development).
Training can be responsive, adaptive, personalised, mobile, self-service or on-demand, self-directed, experiential, collaborative, social. Some training must be available at the moment employees need it—also called just-in-time training—or during the flow of work (bit.ly/2SNIPDw).
Some of these training methods use game-based learning, or gamification (bit. ly/2SP42gz), and emergent technologies such as simulation, augmented reality (bit. ly/33QOe34), virtual reality (bit. ly/3dnKzNB), mixed reality or cross reality (bit.ly/313fLfV), to name just a few.
Training experts will help future workers adapt to the inevitable digital change. These include learning and development teams, also known as learning engineers, learning experience designers, instructional designers, educational technologists, experts in talent and organisational development, training specialists or performance consultants. Whatever they are called, they will be at the forefront (bit.ly/2SRXzS5) of training workers to collaborate with the technology to improve productivity and business performance (bit.ly/33S6Pvz).
Yet, these teams themselves are experiencing the digital transformation and also face an unknown future. They, too, need training.
Many predict AI will have a considerable
The recent amendments to the Mining Charter (Gazetted 27 September 2018), requires Mining Companies to not only develop local communities (18.2) but also focus on the career progression of their employees (18.1).
Implementing an AET project (in line with your SLP) in your local mining community, will entail:
Negotiations with the local chiefs, ward counselors and community leaders, before recruitment may start.
Source suitable, willing and motivated candidates within the local community.
Candidate registration and necessary administration completed to comply with MQA standards.
A suitably equipped training venue within the community.
Procure a local food vendor to provide meals, Monday to Friday.
Placements assessments must be conducted to determine at which level the candidates should start training.
Ensure that your training provider is accredited with Umalusi. Without accreditation your training for SLP purposes may not be valid and may place your mining permit at risk.
Find a facilitator in the community, with the necessary skills and experience to facilitate your project.
Monthly attendance records and candidate progress must be documented on a monthly basis.
Detailed learner packs with all documents required for compliance
Payroll
When stipends are included in a project, payroll administration becomes necessary.
The MQA may require examinations, which will require additional administration
In cases where examinations are not required, a portfolio of evidence must be compiled for every candidate.
In order for a mining company to apply for mining rights, it must submit a number of documents to the Department of Mineral Resources (DMR). The DMR then uses these documents to assess whether the potential mine will be viable.
Among the documents required is a Social and Labour Plan or SLP, which sets out how the company plans to empower it’s employees and the local community. This may include, developing the skills of the company’s employees, developing the skills of needy members from the local community, upgrading local schools and other infrastructure etc.
The social and labour plan the company submitted becomes a binding legal document after mining rights are awarded.
The following elements will also apply when training your employees:
Motivation Sessions.
Placement Assessments.
On-site facilitator provided. Flexible days and times.
Examination or Portfolio-based.
Reporting (Per group, per learner).
Formative Assessments, Moderation & Statement of Results.
We recognise the amount of effort required to successfully implement the skills development aspects of a social and labour plan.
But don’t dispair! We have the expertise and the experience to successfully implement your skills development project, no matter where you are in South Africa!
Contact us.
impact on the field of educational technology. Its presence in education is expected to grow by 43% by 2022 (bit. ly/3k7KCjb).
The application of AI in education includes profiling and prediction, assessment and evaluation, adaptive systems and personalisation of learning and intelligent tutoring systems (bit.ly/3nJOCIH).
Blockchain, another disruptive technology, has the potential to oversee lifelong learning and global learning itineraries (see blockgeeks.com/guides/ what-is-blockchain-technology). As learning becomes a continuous and ongoing process, blockchain can document all learning activities and connect learning records across different institutions (bit.ly/3dr01bx).
This could lead to a drastic change in the role of learning and development teams to include, among other things, applying data science and advanced analytics to organisational learning (see www.youtube. com/watch?v=FajOrOQocEM).
Typically, these teams lead the development of employee knowledge, skills and competencies and work to improve the overall talent pool in the organisation. They also provide employees with personal growth opportunities, which drives
engagement and retention (bit.ly/2STidB2).
Today, their responsibilities have evolved and are focused on helping existing and future workers find their place in the workplaces of tomorrow (pewrsr. ch/3nMlRuL). They also address the resistance to change for many, from managers to the rank-and-file.
Similar to all groups navigating the digital transformation, learning and development teams need to be able to collaborate ethically, critically, responsibly and sustainably with machines and emerging technologies.
In addition to technical skills, they require uniquely human capabilities that include the ability to negotiate, motivate, persuade, co-ordinate and identify and solve problems (bit.ly/3720oZc). They will be expected to take initiative, to be critical thinkers, great collaborators and communicators, curious, creative and adaptable. They will need a global mindset, diversity acumen and empathy, to name just a few requirements.
While the traditional role of learning and development teams requires a well-defined
set of knowledge and skills (bit. ly/370m3Rq), action is required worldwide to help them evolve and develop competencies that reflect their changing roles (bit.ly/3nSPhYz).
To help their organisations compete in the digital era, learning and development professionals will have to completely reinvent themselves. They need to engage in continuous learning in order to develop new skills, new capabilities and lead the change (bit.ly/33Sy7Sy).
Upskilling and reskilling should be a priority for these teams so that they can determine efficient training strategies for their organisations. Yet, there is a gap in the literature when it comes to the training, upskilling and lifelong learning once these experts are in the field.
In the age of ubiquitous information, books, podcasts, magazine articles, blogs and webinars are abundant. Some come with free access; others demand registrations. This requires not only handling the overwhelming amount of information, but also filtering it critically.
Conferences also offer excellent exchange spaces for those who can afford them. Many learning and development professionals engage in conversations on social media in an active attempt to stay close to the trends.
But these random ‘staying up-to-date strategies’ are not documented or studied well. This needs to change.
Richard Branson, founder of the Virgin Group, once said: “Take care of your employees and they’ll take care of your business.” Today, we add: Take care of your learning and development teams and they will take care of your employees (bit. ly/312HKMS). ◆
Nadia Naffi
Assistant Professor: Educational Technology Université Laval
Ann-Louise Davidson
Associate Professor: Educational Technology Concordia University
Houda Jawhar Research AssistantConcordia University
LEARNING AND DEVELOPMENT PROFESSIONALS NEED TO ENGAGE IN CONTINUOUS LEARNING IN ORDER TO DEVELOP NEW SKILLS, NEW CAPABILITIES AND LEAD THE CHANGE
Let’s rethink roads and railway projects to protect people and nature
Kenyan President Uhuru Kenyatta fumed at construction delays on the Lamu Port–South–Sudan–Ethiopia Transport Corridor (www.lapsset.go.ke) in 2019: a US$22-billion transport network that includes a 32-berth port, highways, railways and pipelines. But these delays, caused by financing gaps, afforded fishers, pastoral farmers and conservationists time to challenge the project in court (bit.ly/3iSm10l), and push for amended plans (bit.ly/2GIOKaL) that better protect local habitats and migratory routes used by people, livestock and wildlife.
While major road and rail projects often break up wilderness and grazing lands, a sudden pause in construction can offer a
lifeline to people fighting to protect these areas.
Lockdown restrictions and the uncertainty caused by COVID-19 have made sourcing labour and materials more difficult, increasing construction costs. The result is that infrastructure building has slowed globally (yhoo.it/2GxgO0Q), creating a unique opportunity to redesign road and rail projects around the world so that they benefit the people and environments with which they share the landscape.
Dozens of new roads, railways and pipelines are under construction in sub-Saharan Africa due to a surge in investment in recent
years. Although they are promised to bolster economic growth, our research (bit. ly/34LAMNs) shows that many of these new mega-highways and high-speed rail lines were approved without meaningful consultation between planners and local people. As a result, they tend to become new barriers that are difficult and dangerous to traverse, forcing people to travel long distances to reach safe crossing points (bit. ly/3lwdwtA).
In dry regions, this can make it difficult to reach vital water sources. Amid farmland and forests, construction can push people from their land or force them to travel further to reach it. Deforestation usually comes before construction too, which encourages people to migrate further into woodland, building new settlements that drive more forest clearing.
Poorly designed roads and rail lines can take a heavy toll on human and animal life. During our research between 2017 and 2019, we found too few safe crossing points, inadequate signage and lax speed enforcement along new highways and railways in Kenya and
POORLY DESIGNED ROADS AND RAIL LINES CAN TAKE A HEAVY TOLL ON HUMAN AND ANIMAL LIFE.
Tanzania, resulting in numerous road accidents.
Conservationists are particularly worried by growing roadkill sightings along a new highway in northern Kenya. Endemic and endangered species like the Grevy’s zebra are often killed in collisions with cars and lorries after wandering onto roads that now criss-cross their range. As one pastoral farmer living alongside the new highway exclaimed, “How many animals have died? Uncountable.” (bit. ly/3jOXkD6)
Fortunately, there are lots of proven strategies for preventing transport projects from fragmenting habitats, such as building passages across new highways and railways that migratory species can use. Repairing environmental damage caused by construction, by filling in quarries that produce construction materials, for example, can also help restore grazing land for livestock and wildlife.
The Mongu-Kalabo road constructed over the Barotse floodplain in western
ceremony that takes place at the end of the rainy season can continue, when the Litunda (king of the Lozi people) moves from his compound in the Barotse floodplain to higher ground.
There is no single blueprint for building roads and railways that allow humans and nature to thrive. Wherever construction is planned, public participation is vital (bit. ly/30NY1oQ). Gathering the knowledge local people have of their environment can improve the design of these projects, but this insight cannot come from rushed consultations or impact assessments conducted from a distance. Only meaningful and ongoing engagement with local communities and environmental authorities will do.
Major infrastructure investment (bit. ly/2GPyEf4) will likely be key to pulling the global economy out of recession. The opportunity to mould upcoming projects will not last forever, so let’s ensure any new road and rail project is designed with respect to the rights of people and nature. ◆
Presidential Fellow: Socio-Environmental Systems
University of Manchester
Alex Awiti DirectorEast African Institute
The Aga Khan University
Brock Bersaglio
Lecturer: Environment and Development University of Birmingham
Banking sector urged to go digital to build resilience and sustainable growth post COVID-19
Bankers from sub-Saharan Africa and China who attended the Huawei Sub-Saharan Africa Financial Services Industry Online Summit 2020 agreed that digitisation of the sector will give it resilience against the current COVID-19 pandemic and enable sustained growth in the post-COVID era.
The pan-African conference, themed “Accelerating Digital Transformation, Enable Business Growth Again”, was attended by 1 200 delegates from across banks, telecommunications operators, fintech and ICT (information communication technology) services companies.
Opening the event, Liao Yong, vicepresident of Huawei Southern Africa Region, said advances in ICT present unique opportunities for the banking sector, especially when almost 70% of the region’s population does not have a bank account.
“All of these ICT advances will be critical enablers to a thriving banking sector in sub-Saharan Africa. As we can see, the merging of these two curves of ICT and banking services is powerful. But how much we can unleash the power depends on how much and how soon the banking sector goes digital,” he added.
There has been a rapid uptake of mobile technologies in the region, with strong economic growth in the past two decades. According to statistics by GSMA, 4G mobile broadband technology adoption will overtake 2G in 2023 and the total of unique subscribers in sub-Saharan Africa will reach 600 million by 2025, representing half the region’s population.
is that this is likely to accelerate a multidecade trend we’ve already seen toward digitisation. So, when we look at the architecture of banking moving forward and the real elements that have been accelerated during the coronavirus period, you can see that shift to digital is creating much more aligned, some digital experience. This basically brings us to a new model of
Speaking at the online event, Brett King (author of Bank 4.0 and founder of New York–based mobile banking startup Moven) said the behavioural changes that come with the coronavirus further underpin the need for digital transformation in banking sector. “The declining use of physical branches is likely for many customers to remain a permanent feature of their lives. The
banking… we’ve moved to this low-friction banking embedded in the world around us.”
In China, bucking the decline in Q1 gross domestic product, the financial sector recorded a 6% year-on-year growth. Analysts attribute this growing to the sector’s years of unremitting efforts in digital transformation.
Chen Kunte, former chief information
reality
“
THE DECLINING USE OF PHYSICAL [BANK] BRANCHES IS LIKELY FOR MANY CUSTOMERS TO REMAIN A PERMANENT FEATURE OF THEIR LIVES.”
officer of China Merchants Bank and current chief digital transformation officer of Global Financial Services in Huawei’s Enterprise Business Group, said digitisation will give the banking sector the resilience it needs in the public health crisis. Banking everywhere cannot come true without leveraging the cloud, artificial intelligence and Big Data.
He added that, “We need to restructure banks’ ICT platforms from legacy architecture to cloud-based, open architecture by building AI-powered and data-driven platforms to expand the way financial institutions engage and interact with their customers, and accommodate more innovative business models and service scenarios.”
Banks from the region shared some case studies on digitisation in banking services:
Lucille de Kock, head of Data Analysis and Product Management at First National Bank, introduced FNB’s fundamental shifts across all dimensions to transform the bank into a helpful, trusted and people-centric money manager leveraging digital and data platforms.
According to Alex Siboe Wekunda, head of Digital Financial Services at Kenya Commercial Bank (KCB), said 97% of all
transactions are done digitally, which has led to substantial growth during the pandemic. “Luckily enough, we had invested well in our platform, so we’re able to handle the traffic that comes through this ecosystem.”
And Joshua Oigara, CEO and managing director at the KCB Group, said KCB will continue to accelerate that investment beyond just the lending platform, which has been very successful.
Huawei works with over 1 000 financial institutions globally, including six of the world’s top 10 banks in the digital transformation voyage. “Our operations of over 20 years in sub-Saharan Africa enable us to think global and act local by providing our clients in the region with tailor-made solutions to make the digitisation process painless and smooth, as if it is a tech company that happens to work in the financial sector rather than as a bank that tries to adapt disruptive technologies,” Liao concluded. ◆
Africa Newsroom (APO Group)
BANKING EVERYWHERE CANNOT COME TRUE WITHOUT LEVERAGING THE CLOUD, ARTIFICIAL INTELLIGENCE AND BIG DATA.
Seven years ago, the Democratic Republic of Congo (DRC) proposed the Inga 3—a 4.8-gigawatt hydropower project on the Congo River—with great fanfare (bit.ly/3dvBd2p). Third in a series of dams that would form the Grand Inga complex on the Congo River, the project was touted as a solution to southern Africa’s energy deficit woes and a way for the DRC to participate in regional economic development.
Seven years later, development of Inga 3 has yet to begin. The project continues to be stymied by conflicts. For example, earlier this year, one of the partners, a Spanish company, pulled out of the consortium (bit. ly/3iR4o0L). But DRC President Félix Tshisekedi continues to push to revive the plans (bit.ly/3iXG0L6).
According to South Africa’s Integrated Resource Plan (www.energy.gov.za/IRP/ irp-2019.html), the country plans to import at least 2.5GW of electric power from Inga 3 (or more than half of the original 4.8GW design), a commitment reiterated recently by South African President Cyril Ramaphosa (bit.ly/3lw4XyG). The largest
remaining fractions of Inga 3’s electricity generation would be purchased by the mining industry in the DRC. Less than 10% of the electricity from Inga 3 is expected to supply the DRC’s residential electricity needs. Currently 90% of the population in the DRC lacks electricity access (bit.ly/2SJQfb9).
Does Inga 3 make sense? We set out to answer this question in our research paper
the host country, the DRC and the main buyer, South Africa.
The hydropower potential at the Grand Inga site on the Congo River, the largest remaining untapped hydropower potential in the world, has drawn the interest and attention of development banks and regional governments for the past several
(bit.ly/3lD83B7). We concluded that pursuing large hydropower dams in the DRC is financially risky for South Africa. We assessed the feasibility and costeffectiveness of renewable energy alternatives to Inga 3 to serve the energy needs of both
decades (www.hydropower.org/countryprofiles/democratic-republic-of-the-congo). But there has been dramatic change in the energy sector in the past five years. In particular, the cost of alternative energy sources like wind and solar has changed
INGA 3 HAS BEEN FRAUGHT WITH POTENTIAL SEVERE SOCIAL AND ENVIRONMENTAL IMPACTS
the game for cost-competitive and sustainable energy generation that can be rapidly scaled up.
There are more efficient ways to address severe energy deficits quickly and costefficiently. For example, wind projects take only one to three years to build, and most solar photovoltaic projects take a year. Both incur lower costs than similar-sized hydropower projects, which take five to 10 years to build. The latest construction time estimate for the Inga 3 is eight years.
Longer build times lead to greater costs due to interest on capital. And analysis of data from past large hydropower dams shows that these projects cost twice the amount they quoted before the start of the project (bit.ly/34RspzR).
We found that, even without considering the large environmental and social impacts, the dam is an unsound investment based on plain economics.
In our study, we compared alternative energy sources for South Africa, the largest
potential buyer of Inga 3 electricity.
We found that a mix of wind, solar photovoltaics and some natural gas would be more cost-effective than Inga 3 to meet future demand.
We reached this conclusion after examining the impact of several uncertain factors that could change overall costs. These included: Inga 3 performance, Inga 3 cost overruns, wind and solar performance, and the demand for electricity in the future.
The only scenarios in which Inga 3 was more cost-effective were those that assumed significantly lower than average wind energy performance.
In the case of the DRC, we found that wind and solar generated electricity would be cheaper than the World Bank–estimated price of electricity from Inga 3 for both retail customers in Kinshasa and mining customers in the Katanga province. These renewable energy technologies are more suitable for providing decentralised and off-grid access to electricity to DRC’s geographically dispersed population.
The DRC has since proposed to more
than double the initial capacity examined in our study. This would obviously change the economics described here, though President Tshisekedi has expressed preference for the original smaller 4.8GW proposal.
Of course, economics should be only one of many factors to weigh when choosing energy technologies. Like many other mega hydropower projects, Inga 3 has been fraught with potential severe social and environmental impacts. At least 35 000 people would be displaced by Inga 3 alone (bit.ly/33QgpiD).
The potential ecosystem impacts include the decline of fisheries upstream of the dam, threats to freshwater diversity and mangroves in the Congo delta, and reduced carbon sequestration through reduced organic sediment transport downstream to the ocean.
Time and resources wasted over the last decade entertaining a high-risk mega project that may not even be realised could have been fruitfully spent pursuing opportunities like wind and solar technologies that are cost-effective today.
The DRC government and international financial institutions like the Africa Development Bank backing the Inga 3 can still change course to choose more sustainable and lower risk avenues to provide cost-effective access to energy and spur economic development. ◆
Grace C. Wu Smith Conservation Fellow
Ranjit Deshmukh Assistant Professor: Environmental Studies
THE ANZISHA PRIZE HAS REVEALED ITS TOP 20 FINALISTS FOR 2020 WHO ARE PAVING THE WAY FOR OTHER YOUNG AFRICANS TO PURSUE ENTREPRENEURSHIP
This year’s application season saw a record number of 1 200 applicants vying for a chance to join the Anzisha Prize fellowship. From these applications, 20 businesses emerged that were 45% female-owned and represented sectors such as agriculture, manufacturing and education.
Young entrepreneurs from Morocco, South Africa and Tanzania displayed impressive ventures that are tackling critical issues within their communities while also turning a profit. Through their businesses and entrepreneurial leadership skills, these job starters are paving the way for other young Africans to pursue entrepreneurship.
Selected as a top 20 finalist is 21-year-old Alaa Moatamed, who is the co-founder of Presto: a company she describes as one of the leading delivery management platforms in Egypt. The venture provides business owners with an affordable and convenient delivery service for their customers. Joining Alaa is 20-year-old Benjamin Mushayija Gisa from Rwanda, who manufactures and packages natural organic products for consumption and for cosmetic purposes in the form of lotions and coconut soap.
“2020 has seen a global shift in the future of work. This year’s applicants have personified the resilience and innovation that Africa needs as we navigate our way into a post COVID-19 future,” says Melissa Mbazo-Ekepenyong, deputy director of the Anzisha Prize.
For the past decade, the Anzisha Prize—a partnership between the African Leadership Academy and Mastercard Foundation—has championed and supported very young African entrepreneurs such as Alaa and Benjamin. The programme has supported 122 entrepreneurs, and 77 of those businesses have created over 2 000 jobs, with 56% of those being employment provided for young Africans under 25.
Peter Materu, chief programme officer at the Mastercard Foundation, says: “The success of the Anzisha Prize over the last decade stands as a resounding testament to the creativity and entrepreneurial potential of Africa’s very young people—a hugely under-tapped resource. Through Anzisha, we’re reminded of what they can achieve when challenged and enabled to own and solve the problems they see around them. Now, as ever, the innovations that have
THE 2020 FINALISTS FOR THE ANZISHA PRIZE ARE:
Mustapha Zeroual, 22, Morocco: Founder of IA4YOU, a business/social initiative that designs different systems and digital platforms using artificial intelligence.
Aseitu Olivia Kipo, 22, Ghana: Founder of agribusiness Kobaa-Ok, which focuses on the production and sale of vegetables and provides training and advisory services for other agri-entrepreneurs with farming businesses.
Omonlola Loïs Aniambossou, 21, Benin: Founder of Abiathar Services, a business that offers installation, monitoring and repair services for owners of electrical appliances.
Ian Khonje, 20, Malawi: Founder of an innovative agri-business called Ian Khonje Food Processers, which procures raw baobab from smallholder farmers—both within Malawi and from Mozambique—and produces and packages baobab jam.
Mohamed Bah, 22, Sierra Leone: Founder of Information For All, an NGO that constructs drills and repairs water
emerged through the Anzisha Prize inspire and renew our faith in and commitment to their promise.”
This year, the top 20 will gather virtually from their various countries to share knowledge and learn from expert coaches and mentors as they prepare for their final pitches to a panel of external judges. All the entrepreneurs will receive a cash prize of $2 500. The grand prize winner will receive $25 000, while the 1st runner-up and 2nd runner-up will receive $15 000 and $12 500 respectively.
As the programme celebrates its 10th year, the announcement of the grand prize winner will take place at the Anzisha Prize Conference at the end of October. This will be a virtual gathering of key stakeholders within the youth entrepreneurship community.
As an advocate of young people starting businesses and hiring their peers to combat youth unemployment, the Anzisha Prize is confident that these top 20 entrepreneurs exemplify the importance of young Africans choosing entrepreneurship to build sustainable businesses. ◆
wells and toilets—enabling water sustainability and hygiene for water-deprived communities.
Benjamin Mushayija Gisa, 21, Rwanda: Founder of Kaso, a manufacturing company that manufactures and packages natural organic products both for consumption (e.g. honey, tea, oils, baking soda) and for cosmetic purposes (e.g. lotions, bee’s wax, coconut soap).
Joshua Adabie Armah, 22, Ghana: Founder of PopKing Ghana, a business that sells fresh popcorn in multiple flavours to vendors in Ghana.
Adjei Nyamekye, 17, Ghana: Founder of Mosquito Trapping and Emergency LED Bulbs, an initiative that sells
state-of-the-art light bulbs that provide 12 hours of emergency electricity during power outages and which trap mosquitoes.
Wilfred Chege, 20, Kenya: Co-founder of Shulemall Limited, an e-commerce platform that sells uniforms, textbooks, stationery etc. for students in boarding schools.
Abdelouahab Toukkart, 22, Morocco: Founder of Isla Pack, a business that processes used industrial paper into boxes and wrappings for confectionery items.
Mahlatse Matlakana, 22, South Africa: Founder of Wozilex, an agri-business that produces and sells vegetables.
Abdul Dumbuya, 21, Sierra Leone: Co-founder of a social enterprise that produces raw ginger and processes it into powder. The social enterprise uses 25% of its generated revenue to support educational programmes.
Saly Sarr, 22, Senegal: Founder of SallyMaa, a fashion brand that designs and manufactures leather accessories such as heeled shoes and sandals for women of all ages.
Frida Agbor-Ebai Nenembou, 20, Cameroon: Founder of Supreme Sparkle, a multifaceted business that offers tailoring, salon and spa services.
Jonathan Paul Katumba, 22, Uganda: Founder of Minute5, an online grocery delivery service with a focus on fresh farm products. It sources fresh fruits, vegetables, and other produce from small-scale farmers and then delivers to consumers and businesses.
Alaa Moatamed, 21, Egypt: Co-founder of Presto, one of the leading delivery management platforms in Egypt. The venture enables business owners to provide an affordable and convenient delivery service to their customers.
Hamidu Biha, 22, Uganda: Founder of Biha Eco Venture, an innovative recycling company that uses poultry eggshells to make various eco-friendly products including eco-charcoal and eco-tiles.
David Denis, 22, Tanzania: Founder of Cutoff Recycle, a human hair waste recycling venture.
Matina Razafimahefa, 22, Madagascar: Founder of an innovative EdTech venture that sources, trains and produces highly equipped young Africans in industryspecific digital skills.
Ijeje Hephzibah, 20, Nigeria: Co-founder of Recyclift, a recycling company with the sole focus of recycling plastic bottles and plastic bottle caps.
Fusion Laboratories, under the leadership of Rasheed Patel, is a nutraceutical lifestyle company that promotes peak health
Fusion Laboratories is a premier nutritional, lifestyle and wellness research & development (R&D) company that is constantly expanding the frontiers of nutraceutical technology—delivering superior-quality, high-performance, multi-nutrient nutraceutical products that focus on promoting peak health. As a member of the Health Products Association of Southern Africa, it recognises that health is our most vital asset and it is committed to quality control and ethical standards of production. Fusion Laboratories was started through
identifying a need to develop high-quality nutraceutical products in hitherto largely untapped segments of the complementary medicines market. Highly lucrative premium profit margins, growing demand and increasing popularity for such products among the health-conscious public were added incentives.
The person bringing this vision together is CEO Rasheed Ahmed Patel. He is responsible for product innovation including development, marketing, design and aesthetics as well as keeping the company abreast of developments in the
nutraceuticals market. He is also responsible for product formulations, research and training. He launched Fusion Laboratories in such manner as to ensure the company’s vision, being that of a research and product development firm in the nutraceuticals field, is prioritised—while the essential business competencies of finance, strategy and business development are taken care of as well.
Patel began his tertiary education in law, but his passion for supplements led him to accept an offer from Universal Nutrition as a nutritional consultant in 2000. Following
this, he moved to head up the nutrition section of the Sandton Daelite Pharmacy in 2001.
In 2005, an investment consortium that had landed the territorial rights for USN in the Middle East appointed Patel to launch and develop the USN brand in that territory, being highly impressed by his knowledge and experience in the sports supplement industry.
However, personal loss in the family forced Patel back to South Africa in early 2007. Fusion Laboratories, his conceptual brainchild, was founded in the same year. His insightful recognition of the gaps in the complementary medicines field led Patel to steer Fusion Laboratories’ focus on the hair and skin industry, through which the development and launch of its first range of products, Trichotin and Dermagen, occurred.
After having spent substantial amounts of capital and time to finalise its formulation, product aesthetics and marketing initiatives, the Trichotin range was launched in 2009. Along with its anti-ageing properties, Trichotin Hair Regenesis—being an oral supplement—was specifically formulated to supply the essential nutrients required for healthier hair. The formulation was finally completed after consultation with numerous industry experts, and after having investigated all possible causes of hair loss. Thirty-four separate ingredients (including key amino acids, vitamins and herbal extracts) are combined for maintaining and strengthening hair while minimising hair loss, combating greyness and stimulating new growth. Comprising a completely natural formula without any side effects, Trichotin Hair Regenesis has met with astounding market acceptability. Its application across the hair loss and hair care industry is vast and hugely promising.
Continuing along the Trichotin series, Fusion Laboratories’ second product, the Trichotin DHT Inhibitor, was launched and designed to inhibit the hormone that is responsible for hair loss (dihydrotestosterone).
The natural formula
contains saw palmetto extract, beta sitosterol, nettle root extract, co-enzyme Q10 and ginseng.
Dermagen Formulated Skin Care is a daily caplet containing 21 ingredients that support healthy skin metabolism by delivering a carefully balanced and perfectly formulated mix of essential vitamins,minerals and antioxidant nutrients. Dermagen stimulates the body’s circulatory system to feed and repair the skin from within.
These two ranges have become the leading products for clinics, salons and aesthetic centres around South Africa. Fusion Laboratories has also developed a lucrative pipeline of new products focusing on skin, slimming agents and sports nutrition products—including its latest
offering called Duo Calm: a smart calming and sleep aid with valerian and chamomile, which regulates your circadian (day/night) rhythm so that you awake refreshed each morning.
Through its independent Integrated Services (FIS) division, Fusion Laboratories also provides assistance in intellectual capital, research, formulation, manufacturing and marketing of nutraceutical products for outside companies wishing to further develop or launch their own nutraceutical projects. The ideas incubated are unique, and products are formulated and manufactured in a way that is distinctly different; product excellence appeals to all five senses.
FIS sources the most suitable ingredients and manufactures outstanding formulations that stringently adhere to best manufacturing practices. The result is a product that excels in quality and presentation in the final rollout, ensuring customers’ satisfaction and brand loyalty are optimised.
Patel is an early-stage investor and adviser in FIS as well as Group 4 Health and Human Limitless.
Fusion Laboratories is looking to expand its R&D capabilities in the nutraceuticals field and plans to grow its existing pipeline of products. Realising that its core strength lies within R&D and product development, the company hopes to strengthen its ability to manufacture, distribute and bring to market its unique nutraceutical product offerings.
For further information, visit www. fusionlabsonline.com.
How often has it been said that ‘the world will never be the same again after the COVID-19 pandemic’? If so, the question is, how might it change? Might it not change much at all? The questions have given rise to speculative debate, with optimists and pessimists offering their predictions.
On what grounds do the optimists look to a future in which social justice, environmental sustainability, and reduced inequality are prioritised?
First, it is argued that the pandemic has exposed neoliberalism’s failure to provide an adequate response to the twin health and economic crises. During this pandemic, governments pursuing neoliberal policies
have departed from norms, making interventions in the economy and healthcare in order to limit the dire human and economic consequences of COVID-19. This, say the optimists, is a lesson for the future: the market shown to be an inadequate mechanism for tackling the most fundamental problems facing humankind.
Second, the pandemic has highlighted
the need for greater international cooperation in addressing global crises. The optimists say the pandemic has revealed the necessity for a global response, and that in the future such a response should extend to address other crises, particularly climate change and inequality.
Third, the pandemic has starkly exposed the failures of elected right-wing governments to tackle the pandemic—the US, UK and Brazil being the most obvious examples. Opinion polls have shown the approval ratings of these governments to be falling significantly. Surely, therefore, voters will punish them at the polls and opt for alternatives with social democratic inclinations?
The overall optimist view has been stated pithily by one analyst: There can be no return to normality after the pandemic, because normality has long been the problem. Before the pandemic, Nobel laureate in economics Joseph Stiglitz offered a sharp assessment of what is wrong, pointing to three major crises in the world:
inequality, climate change, and the crisis of democracy. The latter crisis, he argued, is that democracies are not tackling the other two crises. The optimists hope the pandemic will force a more concerted attempt to address these global challenges.
The pessimists, on the other hand, hold out little hope for a more progressive, internationalist, post-pandemic future.
First, they see corporate power being little diminished. They recall how optimists believed the 2008–2009 financial crisis would bring fundamental change in its wake, but in the event the neoliberal order survived. Surely, say the pessimists, the same will happen again?
The continuing power of the market is shown up in two recent, telling US economic indicators, which viewed together seem utterly bizarre. In April, the US stock market recorded its biggest monthly gains since 1987. In the same month, US unemployment rose by over 20 million— the largest monthly rise since the 1930s. It is estimated that during the months of the
pandemic, the wealth of US billionaires has grown by a staggering $565 billion, while the total number of unemployed in the country rose above 42 million during the same period—bearing out French economist Thomas Piketty’s view that the surest means of accumulating ever greater wealth is to possess wealth in the first place. If this trend can occur during the height of the pandemic, is it not likely to continue in its aftermath? The free market is geared to profit-making, not to confronting human tragedy.
Second, pessimists foresee the continuing rise of right-wing, populist nationalism in more parts of the world, as currently evident in countries such as the US, Brazil and India: a trend characterised by xenophobia, racism and the scapegoating of those deemed responsible for the pandemic.
Third, with the rise of nationalism will come anti-internationalism. Donald Trump is showing the way with his scorn for international organisations like the World Health Organization. Some observers fear
what is being called “vaccine nationalism”: the country that first develops an effective COVID-19 vaccine denying access to it for perceived enemies or rivals.
Which is the more likely: the optimistic or the pessimistic scenario? Any firm prediction is clearly impossible. There are variables to be considered, the chief one being the length of time it takes to bring COVID-19 under control. The longer it takes, the more far-reaching the economic devastation.
The overall death count will not itself be a major driver of change. An underlying, callous ageism may give rise to the view— not openly articulated, of course—that the vast majority of those who have died have been the aged and infirm, doomed to die anyway in the near future. The loss of this cohort would have a minimal economic impact; in cold, materialistic terms, such people are expendable. This kind of thinking is probably already guiding Trump’s cavalier approach to the pandemic.
A full-blown economic depression, however, would have far-reaching consequences, bringing massive unemployment and social discontent, bankruptcy and heavy government indebtedness. In such a context, the predictions of the optimists and the pessimists become possible: a government response along the lines of Roosevelt’s New Deal, or a slide into fascism? Maybe one or the other in different parts of the world? Or perhaps neither? Will there be austerity programmes, with cutbacks in social security prioritised? Might there be a progressive approach, with heavy taxes on wealth and a clampdown on tax havens, as recommended by the likes of Stiglitz and Piketty? Will countries wholly prioritise their own recoveries, neglecting the plight of poor countries?
The likelihood is that there will be a drive on the part of political and economic power holders to return to normality. While they largely succeeded following the 2008–2009 financial crisis, it will be more difficult to do so in the post-pandemic world. Welfare cutbacks are harder to implement in a context of widespread poverty. At the same time, corporations, backed by media allies, will surely resist tax
increases for big business and wealthy individuals. While such increases may become unavoidable if the pandemic is not soon brought under control, one should expect austerity measures to take precedence, placing the greatest burden on the poor and working-class during the recovery period.
The pandemic has given rise to a polarisation in public opinion in many parts of the world, especially in the US, where a vocal right-wing minority resents lockdown measures that restrict their ‘freedoms’ (including their freedom to infect others), while also showing themselves to be receptive to conspiracy theories, disinformation and anti-scientific ideas. At the other pole are those who adopt a humanist perspective and bow to science.
This polarisation will likely continue in the post-pandemic world. Online media will persist in feeding nationalist, populist sentiment with ideas and disinformation directed against targeted scapegoats including foreigners, immigrants, racial and religious ‘others’ and liberal elites. At the other pole, progressive opinion will continue to push for policies and practices that make for a more sustainable, egalitarian future.
Outcomes will likely vary in different parts of the world, but it is quite probable that for the most part, neither will predominate. Expect the centre-right (as embodied in a figure like Joe Biden) to prevail. It is hard to envisage fascist regimes emerging as in the 1930s. Nor is there enough high-level support for a progressive agenda.
Democratically elected governments tend to think short-term, afraid to bear the economic disruption accompanying a radical socio-economic and environmental transformation—costs that could endanger a ruling party’s electoral prospects.
The eventual outcome will depend on the extent to which the pandemic makes ‘business as usual’ an impossible eventuality. Be sure, though, that political and economic power holders will strive for just such a return to pre-pandemic ‘normality’. The prospect of a political economy geared toward meeting human need, rather than feeding human greed, looks to be as remote as ever. ◆
Paul Maylam Emeritus Professor Rhodes UniversityTHERE
Many well-meaning education benefactors and commentators in South Africa have expressed that in the light of the COVID-19 pandemic, online self-guided learning could solve some of the current teaching problems and address the educational backlog. What learners need, the reasoning goes, is to get free Internet access to educational support materials on offer online.
Nothing could be further from the truth.
In fact, self-guided online learning is doomed to fail. Research (files.eric.ed.gov/ fulltext/EJ1044355.pdf) shows an exceptionally high drop-out rate, even in developed countries. Learners simply have no incentive to keep at their studies without peer pressure, a teacher at hand or a structured learning environment.
In South Africa, in particular, with socio-economic disparities and related problems, the drop-out rate would be even higher. More so in key subjects like mathematics and physical science where prior knowledge, conceptual understanding and self-motivation to succeed are critical (see “Perceptions and needs of South African Mathematics teachers concerning their use of technology for instruction” by G. Stols et. al. in the South African Journal of Education, Vol. 35, No. 4, November 2015).
The only answer, in the country’s unequal teaching environment, is a customised version of blended learning. Blended learning integrates computerassisted online activities with traditional
face-to-face teaching (chalk-and-talk). When used by a trained teacher, this approach can add valuable new dimensions to the learning process. It can allow learners to work at their own pace and teachers to fill content gaps.
In many developed countries, blended learning is a well-established practice. It has enabled these countries to adapt to the demands of the current pandemic. Digital remote learning and teaching is backed up by dependable infrastructure and skilled, motivated teachers.
By contrast, the differences between South African schools have been thrown into sharp relief. The binary system of a privileged minority of schools and the rest remains, despite the political changes more than 25 years ago.
More than 80% of public schools are under-resourced. They are ill-equipped to respond to the teaching and learning challenges of the 21st century, let alone the latest demands of the pandemic (see “The grim reality of education: The poor get poorer schooling” by Chris Gilili on mg.co. za/section/education, 7 February 2020).
The current lockdown has suddenly compelled teachers to adopt predominantly online, blended learning teaching practices. But nearly 90% of all households in South Africa are still without access to the Internet at home (www.statssa.gov.za/publications/ P0318/P03182018.pdf). Very few schools
had adapted to blended learning before lockdown and few schools would be able to adopt it during the lockdown (see “A Snapshot Survey of ICT Integration in South African Schools” by Keshnee Padayachee in the South African Computer Journal, Vol. 29, No. 2, October 2017). Therefore, the schools that had fewer resources and skills will fall even further behind.
This is especially disappointing, since the current cohort of pupils (born after 2000) have long expressed their preference for a blended learning model (see “How Generation Z Is Shaping The Change In Education” by Sieva Kozinsky on forbes.com, 24 July 2017). Even the recent recognition by the South African government that science, technology, engineering and mathematics are important in the 4th Industrial Revolution has had little effect on the skills development of teachers, infrastructure or modernisation of resources in schools.
Therefore, in the South African context, mainstream blended learning is not the complete answer. We need to go beyond blended learning.
Since 2002, the Govan Mbeki Mathematics
Development Centre at Nelson Mandela University in Port Elizabeth has wrestled with these challenges.
The bad news is that there is no way to make the teaching and learning of maths and science easy. But we have developed a number of interventions that have lifted the twin burdens of poor training and lack of infrastructure from the shoulders of teachers. Skills development linked to the use of user-friendly and interactive digital resources has allowed teachers to focus on attaining a high quality of teaching with subsequent learning successes.
Over the past decade, the centre has experimented with various combinations of online and offline self-directed teaching methods. It has worked specifically on blended learning for mathematics and physical sciences in secondary schools.
The greatest success has been a blended learning system that uses a combination of online and offline interactive resources with preinstalled apps that are aligned with the South African school curriculum (see “Programme multiplies pupils’ success” by Nicky Willemse on mg.co.za/section/ education, 8 August 2019). These can be used as a guide for teaching, homeschooling, after-school study and tutoring. We call it techno-blended learning: a structured approach, using mostly offline apps in an integrated way, with the full participation of a trained or experienced adult mentor or guide.
One of the centre’s more recent interventions is a mini personal computer called the GammaTutor™ (mbeki-mathsdev.mandela.ac.za/Projects/GMMDCResource-Development-Project). This is an
offline device preloaded with interactive learning material. These resources have been specifically designed for South African school conditions.
The GammaTutor™ software package is primarily intended for teachers: When plugged into any data projector, a TV or digital screen, it doubles as a flexible maths and science teaching assistant in the classroom and a learner support resource for after school hours. It fits in the palm of a hand, requires no data and is navigated by the click of a mouse. Its small size makes the device easy to keep safe and to take where it is needed.
It is well known that major educational challenges exist in schools as a result of the country’s multi-language society— particularly in the teaching and learning of mathematics. The GammaTutor™ application offers mathematics concept explanations in eight indigenous languages.
The device covers the full curriculum for high school maths and physical sciences, presented in video, PDF or animated PowerPoint format—along with glossaries, exam revision support, translations from English into indigenous languages, and
many additional teaching support materials. It can be used for interactive teaching online and remotely.
The response from teachers, learners and stakeholders to this approach of teaching and learning has been overwhelmingly positive. Where these interventions have been applied, in pilot schools in the Eastern Cape province, the results have been gratifying. Marks have improved significantly and successful learners have been able to progress to university (see “Tomorrow’s teachers use new technology to tutor maths and science” by Nicky Willemse on www.rnews.co.za, 12 February 2019).
The new urgency for remote teaching caused by the COVID-19 pandemic has created an opportunity for the country to adopt policies to accelerate blending learning practices among teachers and learners. The Govan Mbeki Mathematics Development Centre offers lessons learnt through more than a decade of research. ◆
LEARNERS SIMPLY HAVE NO INCENTIVE TO KEEP AT THEIR STUDIES WITHOUT PEER PRESSURE, A TEACHER AT HAND OR A STRUCTURED LEARNING ENVIRONMENT.
Vaccines for COVID-19 are generating a lot of talk. To shed some light on which vaccines are available for countries in sub-Saharan Africa, and how the process will work, The Conversation Africa’s Ina Skosana and Ozayr Patel asked Benjamin Kagina to answer a few questions.
African health regulatory authorities must approve the use of vaccines before they can be rolled out on the continent. National health regulatory authorities around the continent are working closely with regional and global regulatory bodies to ensure the approval processes will be efficient.
The AstraZeneca–Oxford vaccine was approved for emergency use by the United Kingdom health regulator on 30 December 2020 (bbc.in/2M326Ro) and will be available for use in Africa once regulators on the continent approve it. It is likely that the approval will be obtained in the first quarter of 2021. This vaccine was also tested in parts of the continent like South Africa (bit. ly/39Hrkgt).
As at January 2021, South Africa had secured 1.5 million doses of AstraZeneca–Oxford vaccine from the Serum Institute of India, which is producing these vaccines for low- and middle-income countries. The national regulator is in the process of reviewing the relevant vaccine data in order
to grant approval for its emergency use in the country.
The African Vaccine Acquisition Task Team established by African Union Chair President Cyril Ramaphosa recently secured a provisional 270 million vaccine doses for African countries (bit.ly/3sL4Cgf). The vaccines will be supplied by AstraZeneca–Oxford, Pfizer–BioNTech and Johnson & Johnson. The distribution of these vaccines on the continent will likely depend on the
approved for emergency use by the United States as well as UK health regulators.
The Gamaleya Research Institute of Epidemiology and Microbiology in Russia (sputnikvaccine.com) and Sinopharm in China (bbc.in/2M0MNsC) allowed the public use of their vaccines before conducting large-scale clinical trials—this
population size of each country. Even with additional 600 million vaccine doses promised by the World Health Organisation (WHO) COVAX facility, the cumulative total vaccine doses available will only be enough for about half of the continent’s population.
Another vaccine that is likely to be available to the continent soon is that manufactured by Moderna. Pfizer–BioNTech and Moderna vaccines have already been
raised huge public concerns (bloom. bg/3qyuwlj).
Conducting clinical trials and openly sharing the data from the trials is the international standard practice. The practice is to conduct three phases, all with smaller scale tests at first. Results from such trials are reviewed to assess safety and efficacy. This always precedes regulatory approval. If this route is not followed, it is unlikely these vaccines will get approval from the national
AFRICAN HEALTH REGULATORY AUTHORITIES MUST APPROVE THE USE OF VACCINES BEFORE THEY CAN BE ROLLED OUT ON THE CONTINENT.
health regulators, as there is no data to review.
Nevertheless, countries are buying vaccines from China (reut.rs/391k0NH).
The Financial Times is also reporting that countries are buying Russia’s Sputnik V vaccine (on.ft.com/38WK8sY), while the two leading Chinese manufacturers, Sinopharm and Sinovac Biotech, have signed deals with more than a dozen countries.
But public safety and scrutiny is critical. Without data from the trials, it will be difficult to get the public on board. Sinopharm has submitted clinical data to the WHO for review (reut.rs/3pa97OQ).
When Pfizer–BioNTech announced its vaccine was 95% effective, it also said it had to be stored at a temperature of -70 (bit. ly/3qCwUrl). Most low-income countries do not have the necessary cold chain infrastructure for storing and distributing this vaccine.
Vaccines that require standard refrigeration conditions, like many of those used in existing immunisation programmes in these countries, would be easiest to deliver. The AstraZeneca–Oxford vaccine is one.
Johnson & Johnson has also developed a vaccine being trialled in Africa. The phase III results for this vaccine will be available in February 2021. If the vaccine is proven to be safe and effective, it will be the easiest to distribute, as it requires standard refrigeration. And more importantly, it
THAT REQUIRE STANDARD REFRIGERATION CONDITIONS, LIKE MANY OF THOSE USED IN EXISTING IMMUNISATION PROGRAMMES IN THESE COUNTRIES, WOULD BE EASIEST TO DELIVER.
requires just one dose, which is logistically easier to deliver.
At present, it is thought that the mutations will not affect the efficacy of the vaccines. But more data is still required to be sure about this. Scientists and vaccine manufacturers are assessing if the current vaccines are effective against the new variants. Preliminary data is encouraging.
The rollout is therefore continuing and tests will continue to assess if the emerging variants affect the vaccines’ efficacy.
There is a lot of misinformation and incorrect messaging on social media platforms about the new vaccines (bit. ly/39ZDLV9). One incorrect message is that the vaccines were short-circuited and that this could have compromised them (bit. ly/3bQt0GW). It is important to emphasise that due diligence was adhered to and no shortcuts were taken (bit.ly/39Kaq0D). These vaccines were tested properly and are proved to be safe. Additional monitoring of safety is ongoing as the vaccines get rolled out to more people following approval by the regulators. Safety monitoring will remain a key component of the vaccine rollout. ◆
Benjamin Kagina is a senior research officer at the Vaccines For Africa Initiative in the Faculty of Health Sciences at the University of Cape Town.
VACCINES
South Africa’s automotive industry highlights the social and employment cost of innovation
In South Africa, local operations of international motor manufacturing companies must constantly innovate to meet global demands and offer competitive value (bit.ly/3dqreev). The way work is done is constantly changing. The current technologies adopted in the workplace are ever smarter than those that went before (bit.ly/3nJGk3p).
This trend, driven by economic forces, does not always lead to social improvements (bit.ly/30Zp54B). Automation and the use of robots in manufacturing, combined with new working methods and systems, can have negative social impacts on workers.
There has been an increase in technology in South Africa’s automobile sector since 2003 (bit.ly/34OCQUH). Most of the work in vehicle manufacturing has been automated, which makes manufacturing easier, faster and more productive. More units of cars are produced daily. Companies used to manufacture only 20 units of cars hourly— now they are manufacturing over 100 units an hour using the same number of autoworkers.
Our study of the industry (bit. ly/34OCQUH) found that automation is
well advanced. The sector’s body shop is fully automated. The paint shop is 80% automated. There is about 20% technology utilisation in the car assembly line. And logistics is making a lot more use of machines than before.
These percentages are an indicator of how workers have lost the contest with technology in the industry. Many workers are being deskilled: they no longer fully use their skills to do their job, because robots do most of the work. The remaining workers are being reshuffled to assembly lines likely to be automated with time. This increase in job automation and deskilling can cause
some workers to lose their jobs because their skills have been substituted by machines.
We gathered data through in-depth interviews with 30 participants, drawn from three automobile companies. They included managers, autoworkers and workers’ representatives.
Our interviews with management revealed that management does not necessarily prefer machines over human workers. But in order for the product to compete, they have to consider production capacity, quality and workplace economics.
Where they intend to introduce machines, it is not to take over the jobs of the workers but because some tasks require the use of machines. For example, one cannot expect workers to lift a car while another person is working underneath it. A machine can do that without endangering the workers. Still, management said that if given the chance, they would replace more workers with machines, as robots perform more tasks efficiently and boost productivity without the need for negotiation.
Though robots have eased the process of labour, their increasing use stagnates the population of workers on the shop floor, paint floor, body shop and assembly line.
The decisions that resulted in the reallocation of many autoworkers from the body shop and paint shop to the assembly
line are almost irreversible. One worker said: “If you have to look at the traditional press line, you would have an average of 20 operators. Now you only need four operators just to pack the parts. So, 16 workers are reduced by introducing five robots. The affected workers are moved to other departments within the industry for now.”
Growth in the automobile industry does not create more jobs for human workers. Where automation does create jobs, it is mostly in managing the technology. It does not create work for existing skills. This creates the threat of a rising unemployment rate, which was at 30.1% in the first quarter of 2020 (www.statssa.gov.za/?p=13411). That, in turn, contributes to South Africa’s position among the most unequal countries in the world (bit.ly/2FlWDSR).
The adoption of technologies can relieve workers from strenuous tasks and boost productivity, but will most likely also relieve workers of their jobs entirely.
As an initiative to boost productivity and save costs, the global auto industry expects thousands of job losses—with an estimation of 234 000 jobs cut by 2030 in Germany, 12 000 job cuts by Ford in Europe by the end of 2020, and 2 000 job losses in India by the end of 2020 (bit.ly/2GTPqKe).
We noted in our research that the capacity of the auto workers’ trade union, the National Union of Metalworkers of South
Africa (www.numsa.org.za), to collectively restructure the auto sector with management and benefit all stakeholders is weakened due to the coercive control of the management and top-down labour arrangement.
Innovation is the driving force of consumers, and this is what management responds to. But instead of valuing innovation above all else, industrial policymakers should seriously examine how far it can boost the human condition before it becomes a problem by contributing to job losses, employment uncertainty, deskilling and inequality.
The solutions would be to retain existing jobs, increase job opportunities, revamp industrial policy, reduce the rate of task allocation to technologies, and make the automobile sector’s production process more labour-intensive than capital-intensive.
The state, car companies, unions, workers, consumers and society in general all have a role to play in effecting meaningful economic change and employment reform that is sustainable for all. ◆
Doctoral Candidate University of Fort Hare
Fhulu. H. Nekhwevha
Acting Executive Dean Faculty of Social Sciences and Humanities, Teaching and Learning University of Fort Hare
Revitalising coffee production in Africa to improve economic development
Coffee farmer Francois Dadi Serikpa, from Gnamagnoa in Côte d’Ivoire, joined Nestlé’s Nescafé Plan (Nestle-cwa.com)
10 years ago. The coffee farms that had been in his family for generations were producing poor yields, making it hard for him to earn a good living to care for his family. Under the plan, he worked hard with Nestlé agronomists who taught him better farming practices and how to grow coffee sustainably.
Four years later, Dadi was very proud to have increased his production five-fold, growing more than two tonnes per hectare. Dadi embodies the success stories of thousands of farmers across 11 countries who are part of the Nescafé Plan worldwide.
Dadi is one of the millions of farmers all
around the world facing the threat of climate change disrupting coffee production. To grow properly, coffee crops require specific temperature, light and humidity levels. However, rising temperatures will reduce the area suitable for growing coffee by up to 50% by 2050. Water shortages have also left some coffee farms abandoned or converted for other uses. In Côte d’Ivoire, coffee production usually peaks at about 100 000 metric tonnes a year, but recently took a severe hit when the seasonable rain pattern reduced supply by 15%.
Africa accounts for about 12% of the world’s coffee production, and the highquality and taste of coffee from the continent are loved by coffee connoisseurs worldwide. Côte d’Ivoire alone is the largest coffee producer in West Africa and the third
largest in sub-Saharan Africa. However, scientists warn that without conservation, monitoring and seed preservation measures, millions of coffee farmers on the continent could lose their livelihoods—impacting the quality of their lives and that of their families.
To help revitalise coffee production on the continent, much work is currently underway to boost production, which will improve the incomes of coffee farmers and encourage young people to pursue a career in coffee farming, eventually improving economic development across the region.
For Nestlé in Central and West Africa, sustainable coffee farming is attainable, and
the company is joining forces to do this by rejuvenating, rehabilitating and replanting sustainable coffee now, and in the future.
Agricultural techniques— such as adapting the coffee tree crop formation including the structure, number of branches and canopy shapes—have been introduced to enhance growth. Group training, individual farmer coaching and farming tools have also been provided to Ivorian coffee farmers to encourage the advantages of the correct pruning and maintenance of plantlets and trees.
As a result, about 6 750 hectares of coffee trees have been planted and more than 2 000ha of coffee farms have been rejuvenated across Côte d’Ivoire—producing over 2 000 metric tonnes of additional coffee supply and increasing farmer income by 25%.
In the Democratic Republic of Congo, Nespresso also recently announced a long-term commitment to revive the country’s coffee industry, support Congolese farmers and restore production in regions that are under threat.
Encouraging such behavioural changes in agricultural supply and enhancing economic development cannot be done alone.
Last year, the Inter African Coffee Organisation teamed up with the Centre for Agriculture and Biosciences International and the International Coffee Organization to launch a multimillion fund to support Africa’s coffee industry.
In 2018, the Ministry of Agriculture in Côte d’Ivoire introduced a pruning campaign to provide support to coffee farmers and set a target to achieve 350 000 metric tonnes of coffee production. Although this goal was not met and coffee supply volumes continued to decrease, this kind of action to kick-start production is welcomed, as without collective action the future of high-quality coffee looks bleak.
“The coffee industry, including exporters and producers, together with governments in Africa and worldwide, must all work
swiftly as one to tackle climate change. It is highly important to Nestlé, which is why our CEO Mark Schneider has signed on to the UN’s ‘Business Ambition for 1.5°C’ pledge to achieve zero net greenhouse gas emissions by 2050. We commit to such sustainability goals to advance the health of our planet, drive societal progress and support a sustainable, healthy food system,” says Fatih Ermis, head of Agricultural Services for Nestlé in Central and West Africa.
Scott Coles, business executive officer for Coffee at Nestlé Central and West Africa,
continues: “Working together, we will be able to empower and provide long-term support to local farmers and their communities to rebuild their coffee industries and local economies, while meeting growing demand for coffee in sub-Saharan Africa. All of these steps will go a long way to help fulfil our purpose of unlocking the power of food to enhance quality of life for everyone—today and for generations to come.” ◆
Nestlé Central and West Africa/Africa Newsroom (APO Group)
AFRICA ACCOUNTS FOR ABOUT 12% OF THE WORLD’S COFFEE PRODUCTION
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