Aon – Forging a new way forward

Dare to dream, and make it happen

Chris Campbell, CEO, CESA

On an annual basis, the CESA Aon Engineering Excellence Awards showcase and celebrate excellence in South African engineering. This year, the key difference is the use of a live virtual platform to communicate the results in response to Covid-19. The advantage of this is that we can share the excitement of the event with a much broader audience within South Africa, Africa and worldwide.

The aftershock of the Covid-19 pandemic will continue to ripple through our economy and society for many years to come, in the process introducing unprecedented change in the way we interact and do business. This will be largely due to the manner in which we embrace technology.

Within the global perspective, many leaders in the public and private sector see the aftermath as an opportunity to restart and re-engineer, with the infrastructure sector identified as a major influencer. The same is true for South Africa, because without infrastructure development and the services it delivers, no economy can function effectively.

Among our major platforms locally are the Sustainable Infrastructure Development Symposium South Africa (SIDSSA) conferences held over the past three years, which have received resounding support from local and international investors. At the 2020 SIDSSA symposium in June, I had the privilege of representing CESA at the Ministerial Round Table Discussion on Water, Sanitation and Human Settlements – all areas in need of urgent attention.

We must all support SIDSSA and allied initiatives, like government’s Infrastructure Fund, since they serve as catalysts for positive change that, when implemented, will transform our socioeconomic landscape, creating sustainable employment and enabling families to prepare and transition their children to a world after the Fourth Industrial Revolution. Our hope is that many will embrace engineering as their chosen profession and CESA’s members are on standby to enable this process through professional mentorship.

Communication is vital There is a growing sense of urgency for bankable and ‘shovel ready’ projects to be moved to the tender and award stage. What CESA and the industry are calling for is greater clarity on the actual implementation timeline from government. This is important because it directly influences local and international investment sentiment, to positively impact gross fixed capital formation.

Governments tend to be the largest buyers of good and services, which directly and indirectly stimulates the growth of major interrelated GDP contributors like construction and manufacturing. In South Africa, we’ve experienced a steady drop in public infrastructure investment over the past decade. Compounding the issue has been a spike in wasteful expenditure, and the maladministration of funds. Targeted infrastructure execution has also been hampered by the technical skills gaps within the public sector, further complicated by ineffective procurement processes.

Collectively, we have the answers, but the change will only happen if we can engage and come together with a common purpose. As CESA, we are part of that collective and have been encouraged by an increase, rather than a decline, in the number of new firms joining us as members, all of whom support this drive.

The question of how best to build a capable state needs an action-based approach that looks well beyond the post-Covid-19 environment. If I dare to dream, 2021 will be the fulfilment of a long-awaited resurgence in infrastructure spend. The prime areas include Sanral projects, mass housing developments, and active Independent Power Producer project awards to meet the immediate 2 000 MW emergency supply gap. All are imminent and achievable.

Going into 2021, our focus should be on arresting the decline in GDP and moving steadily and smoothly to a resurgence in commercial activity. Every CESA member has an integral part to play in this process. I applaud the companies that have entered our awards this year for their commitment to the promotion and development of the industry, and their focus on providing engineering excellence!

Forging a new way forward

In the face of the Covid-19 pandemic, it is fitting to reflect on the rising resilience that our ‘new normal’ has demanded from all individuals and businesses. As in the rest of the world, the globally synchronous impact of this pandemic in South Africa has been devastating. All the challenges and conditions that existed prior to the pandemic still prevail, with many amplified, demanding new strategies in order to cope with these changing complexities in our ‘new normal’.

Whether you are a sole proprietor, a small or medium-sized consultancy, or a large commercial operation, the risks are common across all business formats, and the quantum typically substantial. These risks include professional liability, business interruption, cyber, directors and officers (D&O) exposures, legal and contract exposures, credit risk, talent and many more. In Aon’s most recent State of the Market2020 report, we look at which risks have become more pressing as businesses and economies emerge and rebuild after the Covid-19 devastation. These include aspects such as: • declining risk readiness despite increasing risk complexity • widening skills gaps and shortages – something SA is experiencing in significant doses • growing social discontent and riot risk –a worldwide phenomenon • political risks, which are no longer limited to developing markets • cyber risk with remote working exponentially amplifying exposures • business interruption, which now has the added dimension of pandemic and cyberattacks thrown into the mix • market volatility and the need for payment protection as even large organisations falter • professional indemnity and D&O liability exposures are growing in volatile markets. Over the coming months, definitive trends in risk will continue to emerge. Data and analytics models are providing powerful insights not only into historical patterns, but into the future risks coming down the line. It is here where the power of Aon and expert advice really comes to life – when we take our global capability, backed by experts from across all geographies, and deliver it locally to your business. The role of professional and qualified advice linked to deep market insights becomes crucial in securing financial security in these challenging economic and socio-political environments, whether you are a solo operator or a large commercial operation.

As we celebrate the CESA Awards, it is an opportunity to reflect on the rising resilience that the engineering sector has demonstrated in the face of a global pandemic. Through all of this, you have maintained the high standards of excellence and innovation in your tremendous contribution to our economy and society. As Aon, we are immensely proud of our 35-year relationship with CESA and its members, and we stand as Aon United in delivering risk solutions and professional advice to secure the operating environment for engineers, no matter the challenges ahead.