Opportunity Issue 109

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TECH TRENDS FOR ’24

Small business owners are embracing the cloud

BORDER MANAGEMENT AUTHORITY MARKS ONEYEAR ANNIVERSARY

WHEN TECHNOLOGY AND MINING MEET

Interrogating IP issues in mining technology

CONFERENCING

Hybrid and remote work are fuelling demand for exceptional venues

BOMBELA OPERATING COMPANY – A JOINT VENTURE LED BY RATP DEV

Leveraging glocal expertise to innovate, reduce carbon footprint and deliver worldclass public transport systems

TRANSFORMING SPACES, PEOPLE AND THE ECONOMY THROUGH MOBILITY

THE GAUTRAIN MANAGEMENT AGENCY’S NEW CHIEF EXECUTIVE OFFICER, TSHEPO KGOBE, BELIEVES THAT HIRING GOOD PEOPLE IS THE ROOT OF SUCCESS

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EDITOR’S NOTES

SACCI NEWS

SACCI held a series of Post-Budget Speech events in conjunction with Mazars and has a busy programme of events ahead, including a first Absa-SACCI Women-in-Business Directors Training Programme and the organisation’s Annual Convention.

TRANSFORMING SPACES, PEOPLE AND THE ECONOMY THROUGH MOBILITY

The Gautrain Management Agency’s New Chief Executive Officer, Tshepo Kgobe, believes that hiring good people is the root of success.

LEVERAGING GLOCAL EXPERTISE TO DELIVER WORLD-CLASS PUBLIC TRANSPORT SYSTEMS

Nthabiseng Kubheka, CEO of Bombela Operating Company (a joint venture led by RATP Dev) is proud that Gautrain can be used as a benchmark of what localised world-class public transport systems can look like.

RAIL IS THE SUSTAINABLE SOLUTION

A new report captures the socio-economic impact made in a financial year by Alstom, the group whose Gibela Rail Consortium is making the X’trapolis Mega Train from 30% lighter steel.

HARNESSING PRIVATE EXPERTISE FOR WORLD-CLASS PUBLIC INFRASTRUCTURE

The best way to tackle South Africa’s water woes is through public-private partnerships, says experienced P3-infrastructure developer, the Gap Infrastructure Corporation.

UNITING EDUCATION AND EMPLOYMENT, A TRUE CATALYST FOR PROGRESS

Jacques Farmer, Managing Director of Prisma Training Solutions, argues that for the country to really move forward, skills development must be a bridge to employment opportunities.

14 34 05

Post-Budget Speech 2024/25 event

Mazars, in partnership with SACCI, hosted an exclusive and “new look” 2024/25 Budget breakfast event.

This gathering provided a deep dive into the National Treasury’s Budget, exploring the theme "Election Year: Balancing Rands and Sense." We delved into how the Budget proposals would affect both the country and attendees' businesses.

The upcoming national elections were highlighted as pivotal moments shaping fiscal policy and the business landscape in South Africa. The Budget proposals outlined by the National Treasury reflected the government's priorities and challenges, as well as opportunities and risks for the private sector. Business leaders were urged to grasp the implications of these proposals and adapt accordingly. Our esteemed panel comprised a diverse group of prominent experts who shared invaluable insights on the Budget. They offered perspectives from various angles, including political, socio-economic, tax policy and business realms.

From the discussions, several key takeaways emerged:

• Insights into the Budget's implications for different sectors and industries.

• Understanding the current economic environment and its impact on economic growth.

• Exploring strategies for enhancing revenue collection efficiency and addressing supply-side constraints.

• Assessing government strategies aimed at minimising expenditure and promoting fiscal sustainability.

These topics provided a rich foundation for further discussion and strategic planning among attendees, ensuring they were well-equipped to navigate the evolving economic landscape in the wake of the Budget speech event.

FACILITATING SKILLS DEVELOPMENT FOR SUSTAINABLE LIVELIHOODS

The chemical industry’s sector education and training authority is pursuing partnerships based on innovation, collaboration, digitisation and transformation, says Yershen Pillay, CEO of CHIETA.

EMPOWERING PROGRESS THROUGH DIVERSITY

Gender inclusivity needs to be fostered in South Africa's energy transition, writes Maagatha Kalavadakken, Financial and Market Analyst for Wärtsilä Energy in Southern Africa.

IF A MINING COMPANY TWEAKS A TECHNOLOGY TO SUIT ITS OPERATIONS, WHO OWNS THE IP?

Hogan Lovells partner Deepa Vallabh speaks about the legal issues that arise when new technologies are used – and adapted – on a mine. Mining companies also have to find the right balance between efficiency and complying with social and environment guidelines.

TECH TRENDS FOR ’24

Small business owners are embracing the cloud, according to Xero’s State of Small Business report. James Bergin, Executive GM, Technology Strategy and Integration at Xero, describes the five top tech trends likely to have a big impact.

A SURGE IN HYBRID AND REMOTE WORK IS FUELLING DEMAND FOR EXCEPTIONAL VENUES

Nine things to look for when choosing a conference venue at a time when coming together is even more of a special occasion than it used to be, pre-Covid. Premier Hotels & Resorts lay out the most important factors to consider when booking a conference or exhibition venue that ticks all the new boxes.

SOUTH AFRICAN BUSINESS RANK INFRASTRUCTURE BLACKOUTS AS BIGGEST RISK

The Allianz Risk Barometer 2024 asses the top risks to business in South Africa. Critical infrastructure blackouts, cyber security and disruptions to business operations such as supply chains top the list of the concerns.

ECONOMIC DATA

The latest economic data issue by SACCI: Business Confidence Index (BCI) and Trade Conditions Survey (TCS).

Partners in excellence

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A member of the Sturrock and Robson Group

Civics, voting and taxes

In the old days schoolchildren were subjected to something called “Youth Preparedness”. Depending on how committed, bored or crazy the teaching staff might be, children would either be marched up and down a sports field in cadet uniforms, lectured on the evils of communism or shown movies on the evils of smoking.

The modern South African school pupil is taught “Life Orientation”, a broad subject that is intended to address a range of issues that include the self, the environment and career choices. With South Africa voting in an important election on 29 May, young South Africans can express through the ballot box what they learnt in Life Orientation (LO) classes devoted to the part of the curriculum called “responsible citizenship”.

However, voter apathy among young people is growing. In the 2019 national and provincial election 20% fewer voters exercised their democratic right than in 1994. All indications are that this trend is set to continue in 2024. Attempts to get young people to register have largely failed and even then, less than half of those registered to vote actually turn up to vote.

Perhaps “responsible citizenship” can be deployed to persuade young people to vote when they get the chance. But then the message from this Civics class needs to be clear: voting is about deciding who gets to spend the tax money that you give to the state. Modern politics at home and abroad is often framed as being about identity and social issues. The reality is that politicians who win majorities get to decide how tax revenue is spent. That simple fact should be drummed home to young people – and adults.

In this issue

Several of the interviews and articles in this issue deal with infrastructure, which is what a significant portion of tax money is spent on, or should be. The Gautrain Management Agency’s new CEO, Tshepo Kgobe, has vast experience in the private and public sectors and speaks passionately about what one should expect from a rail service. His thoughts on consequence management for non-performance help to explain why the Gautrain has become such a successful operation.

Water and education are two subjects that often are discussed purely in terms of the public sector. Roelof van den Bergh of the Gap Infrastructure Corporation argues that public-private partnerships are the best way of tackling water infrastructure problems and Jacques Farmer, Managing Director of Prisma Training Solutions, contends that for the country to progress, skills development must be a bridge to employment opportunities.

This topic is expanded on by Yershen Pillay, CEO of the Chemical Industries Education and Training Authority (CHIETA) in an insightful interview. Aiming to be fully digitised, CHIETA is also firmly focussed on bridging the digital divide for young people living in rural areas. Maagatha Kalavadakken, Financial and Market Analyst for Wärtsilä Energy in Southern Africa, provides insights into progress being made in terms of gender inclusivity in South Africa's energy sector while Xero’s James Bergin unpacks the company’s State of Small Business report. The Allianz Risk Barometer 2024 asseses the top risks to business in South Africa. Hogan Lovells partner Deepa Vallabh speaks about the legal issues that arise when new technologies are used – and adapted – on a mine.

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Prying through the frontiers in financial psychology

Professor Prince Sarpong, associate professor at the School of Financial Planning Law at the University of the Free State, outlines some of the key features contained in a new book on financial psychology.

Frontiers in Financial Psychology, published by LexisNexis SA, brings together insights from leading practitioners and researchers in South Africa, taking into consideration unique financial challenges and cultural factors to provide a unique perspective to the field of financial psychology.

In this book, we cast our gaze beyond conventional boundaries, drawing from research and practical strategies to help advisors connect with clients on a deeper level where advice provided is in harmony with clients’ unique life stories. Avoiding the danger of a single story [1] and the problem of speaking for others [2], the book transcends a singular perspective and ropes in the viewpoints and expertise of diverse contributors. I start off in Chapter 1 with an overview of the field of financial psychology and provide alternative viewpoints to financial well-being through the lens of African psychology. I cover the psychology of retirement in Chapter 7, and in Chapters 9 and 10, co-authored with Ayanda Sarpong, we explore the intersection of personal finance and various identities and tackle the complex topic of Black Tax and its financial implications.

Across Chapters 3, 4, 5 and 6, Paul Nixon, Head of Behavioural Finance at Momentum Investments, dissects the science of financial decisions and unpacks the complexities of investor risk behaviour and the psychology behind risk profiling. Bringing his expertise in both research and practice to bear, Paul provides invaluable insights into understanding the cognitive biases and emotional

factors that influence investment choices. In Chapter 8, Prof Liezel Alsemgeest, Director of the School of Financial Planning Law, explores the link between financial socialisation, money scripts and financial conflict. Drawing on the impact of financial socialisation and deeply ingrained money scripts, she unravels the root causes of financial conflict to help us better understand and address them with greater understanding and empathy. Fundhouse’s Head of Strategic Advisory Services, Rob Macdonald, in Chapters 11, 12 and 13, emphasises the crucial role of effective communication in building trust with clients, explores the principles of sound financial counselling and coaching, and delves into the art of building trust – all essential skills for empowering clients and fostering lasting client-advisor relationships. In Chapter 14, renowned financial coach Hendrick Crafford focuses on sustainable financial planning. In this chapter, we learn how to navigate the increasingly intertwined financial, environmental and social considerations in financial planning and how to guide clients towards a more sustainable financial future. Finally, Kim Potgieter, Director and Head of Life Planning at Chartered Wealth Solutions, masterfully rounds up the book in Chapter 15 and advocates for a "life planning" approach that integrates financial planning with broader life goals and aspirations, the essence of financial psychology. This holistic perspective acknowledges the interconnectedness of various aspects of life and entreats financial planning professionals to guide clients towards a more fulfilling and meaningful financial future. Kim argues that financial planning professionals are in a unique position to guide people to live their lives to the fullest and in a way that does not compromise their balance sheet. Weaving together insights from practitioners and academics, the book makes an important contribution to literature in financial planning and equips financial planning professionals with the knowledge and tools to serve their clients effectively and holistically.

[1] Renowned novelist Chimamanda Ngozi Adichie in her July 2009 TED talk “The Danger of a Single Story” warns that relying on a single, simplistic narrative about another person or culture leads to harmful stereotypes and hinders understanding.

[2] Latin-American philosopher and professor of philosophy, Linda Alcoff, in her article “Problem of Speaking for

Professor Prince Sarpong.

News & snippets

Industry insights from the past quarter

Fuelling business with solar

The Astron Ruhamah fuel station in Roodepoort, Gauteng, is now able to open at all hours after the installation of a hybrid battery system with 64.6kWp solar photovoltaic (PV), 48kW battery inverters and 60kWh of battery capacity. SolarSaver has connected over 500 businesses across the country through grid-tied rent-to-own solar solutions that reduce power costs as well as hybrid-battery installations that also provide a backup for when the grid is down. The hybrid nature of the installations gives customers like the fuel station the benefits of solar panels that remain connected to the grid and a backup battery system to store excess power. Ross MacGregor, representing the fuel station, says that the hybrid solar system from SolarSaver has had a massive impact on his business. "For a petrol station that runs a lot of HVAC equipment, refrigeration, ATMs and retail, consistent power is essential. From a business continuity perspective, it’s been wonderful," says MacGregor.

Reliable delivery

Stellantis boost for Eastern Cape automotive sector

Automotive manufacturer Stellantis has confirmed its intention to develop a greenfield manufacturing facility at the Coega Special Economic Zone in Gqeberha, with the Industrial Development Corporation (IDC) and the Department of Trade, Industry and Competition (the dtic). The Minister of Trade, Industry and Competition, Ebrahim Patel, and Samir Cherfan, Stellantis Middle East and Africa Chief Operating Officer, signed a Memorandum of Understanding at a meeting in Cape Town in September 2023. The manufacturing plant will boost the automotive component of the Coega SEZ and construction of the project is planned to be complete by the end of 2025. The first vehicle expected to roll off the assembly line in 2026 will be a one-ton pick-up truck with volumes expected to reach up to 50 000 completely knocked down (CKD) units annually, including vehicles which are intended for export.

Sasol and Transnet Freight Rail (TFR) have signed a public-private partnership to improve rail transport reliability in South Africa. TFR is an operating division of Transnet, the owner of South Africa’s railway, ports and pipeline infrastructure. Under the five-year agreement, Transnet will deliver ammonia from Sasol’s Secunda and Sasolburg facilities to the company’s customers through a dedicated fleet of 128 ammonia rail tankers. In turn, Sasol will fund Transnet’s maintenance and repair programme for the fleet. TFR and Transnet Engineering (TE), who will execute the Sasol ammonia fleet’s maintenance and repair work, expect additional revenue generation from anticipated increased haul volume and the Sasol-funded maintenance and repair work. The Transnet Freight Rail network and rail services provide strategic links between ports, freight terminals and production hubs. Sasol Chemicals produces and sells more than 540 000 tons of ammonia annually. It is used to make a variety of fertilisers and industrial chemicals for the agriculture, mining, textile and metalworking industries.

Joint energy conference set to attract investors

The Middelburg Chamber of Commerce and Industry (MCCI) and the Steve Tshwete Local Municipality (STLM) are jointly hosting an Energy Conference designed to attract investors interested in green energy opportunities.

What are the reasons for investing in Middelburg, Mpumalanga? Are there sustainable investment opportunities in the region? What can companies invest in? Discover green energy investment opportunities at MCCI and STLM's Energy Conference. Governments, NGOs and researchers sometimes disregard the Highveld economy. Insufficient information prevents accurate scrutiny of national and international activities whereas with the correct information, it soon becomes clear that there are rich potential investment opportunities. The Steve Tshwete Local Municipality in Middelburg is home to three Eskom power stations and over 150 mines within a 100km radius. One of many local manufacturers is a top South African exporter and also supplies local manufacturers, such the motor industry. Between 1996 and 2020, companies in STLM contributed R48-billion to GDP, an increase of 2%. In 2022, the coal industry employed 90 977 people and generated a turnover of R252.3-billion with a production of 231.2-million tons.

The Just Energy Transition

If you talk about electricity or coal mining in this region, people immediately dismiss it as a national responsibility, and it is assumed that people in the region should not have an opinion. The impact of the Just Energy Transition (JET) on the Highveld region in Mpumalanga is being ignored and is ineffective. JET projects continue. An example is the repurposing of the Komati power station. Government and big business have recognised that the repurposing of Komati has been a failure but JET organisations are failing to learn lessons from the Komati project. JET supports consultants and non-profit organisations in Mbombela, Gauteng and Cape Town through grants for research projects. These organisations have no interest in the Mpumalanga Highveld and their projects have limited effect. MCCI President Moeketsi Mpotu said at the AGM of the organisation in March 2024 that local businesses need to be the voice of reason. The current JET strategy will have a negative impact on STLM and Emalahleni businesses, including all businesses that supply, transport, export and provide services from the Gauteng region.

What does STLM offer investors?

Agriculture, manufacturing, mining and power generation are our strongest sectors. Creditors are better paid by Middelburg's

businesses, with a rate of over 60%. Our per-capita reserve of technical skills is one of the highest in Africa. Skilled artisans and engineers are in abundance in our community.

In addition, STLM has:

• A designated economic zone in Mpumalanga

• Available land for manufacturers (working on opportunities to serve new investors)

• One of the top four performing municipalities in the country

• Consistent economic growth for decades

Infrastructure

One hour's drive from the industrial areas of Gauteng. Airfield is able to (and does) host jet aircraft. Middelburg is at the junction of the N4, N12, N11, R104 and R555, bypassing any blockage on the N3 to Durban harbour or to the Zimbabwe border. The MCCI has a rich history since 1903 of engaging businesses worldwide and has insights into local business intelligence.

Article by Anna-Marth Ott (CEO) and Moeketsi Mpotu (President) MCCI.

We invite you to our conference on 25 July 2024 in the STLM Banquet Hall. Book your place: Tel: 013 243 2253 | Website: www.middelburginfo.com

Moeketsi Mpotu, MCCI President.

SACCI’S UPCOMING EVENTS SACCI’S UPCOMING EVENTS

Absa-SACCI Inaugural Women-in-Business Directors Training Programme

The objective of the Absa-SACCI Inaugural Women-In-Business Directors Training Programme is to identify qualifying women who will undergo a Board Training Programme aimed at equipping them with the knowledge and skills they need to thrive as business leaders. The four-day programme will include topics such as governance, strategic planning, financial management and leadership development. Two sessions will be in-person and another two sessions will be virtual.

PHOTO: christina@wocintechat on Unsplash

Absa Ambassadors Roundtable Breakfast

We are organising a distinguished breakfast engagement aimed at strengthening and enhancing our relations with key ambassadors from the African continent, who serve as invaluable strategic representatives of their respective governments.

SACCI regularly meets with international delegations.

SACCI Annual Convention

The SACCI Annual Convention is the highlight of the South African business calendar where a range of issues of importance to the South African economy and our 20 000 business members is debated. We anticipate an attendance of 150 delegates representing business, government, labour and the diplomatic corps and wide media coverage of the event. We are currently actively engaged in organising the logistical aspects of our eagerly anticipated event. Stay tuned for additional information, which will be promptly shared on the SACCI website, www.sacci.org.za, and through our various social media platforms.

Absa-SACCI National SMME Summit

The Absa-SACCI National SMME Summit, themed “Empowering Entrepreneurs in the SMME Landscape”, is scheduled for 21 May 2024, in Johannesburg. This significant event is designed to bring together entrepreneurs, industry experts and key stakeholders to discuss challenges, opportunities and growth strategies within the SMME sector. Absa is the main sponsor of the summit, which is designed to facilitate essential dialogues, presentations and networking opportunities, fostering a collaborative environment for knowledge sharing and innovation. This initiative reflects Absa’s dedication to empowering small businesses, contributing to national economic solutions and promoting a conducive environment for entrepreneurial success. Speakers will provide valuable insights into business development, market access, funding, the digital economy and sustainability. The summit will feature comprehensive presentations, Q&A sessions and networking opportunities, aiming to create collaboration, knowledge exchange and support for SMMEs.

Small business needs a helping hand.

PHOTO: Dan Burton on Unsplash

CEO Alan Mukoki addresses the SACCI Convention.

Boosting continental trade via rail

The 2024 Southern African Railways Association (SARA) Conference and Exhibition will focus on how rail can boost continental trade through investments in the African rail network, thus ensuring the sustainable development of the continent.

EVENT SUMMARY

The Southern African Railways Association (SARA) is pleased to announce the forthcoming annual Conference and Exhibition, scheduled for 20-23 August 2024 at the Sandton Convention Centre, Johannesburg. This year's event, themed "Boosting Continental Trade via Rail: Investments in African Railways for the Sustainable Development of the Continent”, aims to spotlight the critical role of railways in driving economic growth, enhancing trade and promoting sustainable development across Africa.

ORGANISERS DETAILS

VENUE: Sandton Convention Centre, Johannesburg

DATES: 20-23 August 2024

EVENTS:

19 August – Build up

20-22 August – Conference and exhibition

20 August – Gala dinner

23 August – Golf day at Royal Johannesburg Golf Club

For more information and to get involved, please contact the SARA team. Southern African Railways Association (SARA)

Phone: +27 11 452 4991 | +27 84 516 6834

Email: info@sararailconference.com

Website: https://www.sararailconference.com/ LinkedIn: https://www.linkedin.com/company/sara-rail/ @ SARA Rail Facebook: https://www.facebook.com/Sararailconfere @ SARA Rail C X (Twitter): @SaraRail_Org

About the Southern African Railways Association (SARA)

Established in 1996 with its headquarters in Harare, SARA operates as a specialised subsidiary of the Southern African Development Community (SADC). The organisation is dedicated to promoting and enhancing rail transport services across the SADC region. SARA comprises a variety of railway operators, both public and private, along with rail-industry stakeholders from the Southern African region. It serves as a central hub for railway trade and regional integration. By providing a platform for collaboration, networking and knowledge sharing among its members, SARA coordinates rail stakeholder dialogues to advance the sector's interests. As the holder of the mandate for rail policy advocacy, SARA takes an active role in regional policy-making. Its efforts are centred on harmonising regulations across different rail systems, facilitating coordination of rail corridors and promoting infrastructure development.

SARA is unwavering in its commitment to enhancing rail competitiveness and advocating for equitable intermodal competition. The core programmes of SARA are aimed at augmenting various aspects of rail transport. These include initiatives to improve operational efficiency and safety in corridors, promote rail investments and adapt to international best practices. By implementing these programmes, the association aims to ensure that rail transport is competitive, reliable and a fundamental part of the region's transport logistics chain. SARA's ultimate goal is to foster a robust and efficient rail network throughout Southern Africa. This objective is integral to stimulating economic growth, facilitating regional integration and promoting the socioeconomic well-being of the region's inhabitants. By enabling infrastructure development and enhancing rail competitiveness, SARA plays a vital role in bolstering regional economic development and trade.

Gautrain: pioneering towards innovation and future sustainability

The new CEO of the Gautrain Management Agency believes that failures to deliver must have consequences. As he sets out to create “railtroplises” around Gautrain stations, Tshepo Kgobe is convinced that the public-partnership model where a “knowledgeable public party” ensures that high standards are maintained is the best model for mass public transit.

What is your mandate?

The mandate of the Gautrain as it stands now in the GMA Act is for us to implement the project, then manage the project and its assets and to ensure that we secure the finances of the entity itself. We need to ensure that we create financial sustainability over the long term and create jobs. Socio-economic development is a big part of what we do. To integrate with other transport modes the process allows the MEC to require us to assist on any projects that are public transport and rail related. Somebody might ask, ”Why are you building a taxi rank?” and I will tell them it is a mandate from the MEC, it’s public-transport related. We are assisting PRASA in some of their operations and in resuscitating their operations here in Gauteng and in other parts of South Africa, and that comes from that mandate. When we get asked to assist other entities, we do exactly that.

To whom do you report?

The MEC is the shareholder. We need to demystify this thing: the Gautrain as an entity and its assets are actually owned by the Gauteng Provincial Government. They are owned by GPG and they own those assets through the Department of Roads and Transport. The Gautrain Management Agency is the custodian of the assets on behalf of the Gauteng Provincial Government and the Department of Roads and Transport.

So there are no private shareholders?

No, none of the assets are privately owned. It is operated by a private entity, an operation where we contracted somebody privately to operate it but the assets are fully owned and paid off. Gautrain is a R45-billion asset that is owned by the Gauteng Provincial Government.

Please tell us more about what you are doing related to integrated transport.

The most interesting one is a partnership we have with the taxi industry. The taxi industry is contracted to provide lastmile services. Our distribution and feeder services in stations like Marlboro station in Alexandra and the surrounding areas

are provided by them. In Centurion and other stations, they are provided by the Tshwane taxi industry. We contract the one part of the transport industry that nobody wants to touch, and it’s one of our most successful partnerships. We have integrated with the minibus taxi associations to provide scheduled services for the Gautrain. People always ask us whether taxi drivers do not fight with us over our taking their routes. They don’t, because we contract the taxi association that owns the route to operate on that route. We’ve been running this for 13 years and it runs like clockwork because we do our due diligence. We check through the registration system in the Department, we check with the cities, we get concurrence from both the provincial departments and authorities in various cities that that particular route is owned by this particular taxi industry. The lines are very clear.

How are passenger numbers post Covid, are you recovering?

We’re recovering but it took a while. With the work-from-home culture, it took a while for the numbers to recover. In the last week of February, we breached 60% and went onto 64% of our previous numbers. But the freeway is full. A lot of companies have instructed their employees to return to work on a full-time basis. We are seeing the effects of it but we want it to translate fully back to about 50 000 passenger trips per day and then we will be satisfied. Not happy, but satisfied.

What does that represent in percentage terms?

That will be about 94% of pre-Covid numbers and then at 55 000 to 57 000 we will be back to 100% of pre-Covid numbers.

Do you know the total numbers?

A total of 175-million passengers have been carried on the Gautrain since its inception.

What is the percentage of the airport traffic of your general traffic?

Pre-Covid, the airport service carried about 10% of our ridership and the General Passenger Service carried 90% of our services all

throughout the day. We have three services running over the line: the Airport Passenger Service runs from the airport directly into Sandton. Then the service that runs on the same line from Rhodesfield into Sandton and finally the North/South GPS service from Hatfield in Pretoria all the way to Park in the Johannesburg CBD. Passengers can transfer from one service to the other in whatever direction they’re travelling.

How far advanced are the plans to expand the network?

The Premier in his recent State of the Province address announced that all three planned new routes will be expanded to all corners of the province. We have a short-term plan, which is the Soweto line that takes off from Sandton and then goes out to Randburg and on to Cosmo Junction, through Little Falls, through the Roodepoort ridge into Roodepoort and all the way to Jabulani. That becomes the Phase 1 line.

Are the finances in place?

Part of the process is for us to be able to look at the structuring of the finances and the important part is that we will have to relook at the finances. We want to ensure that the government’s contribution to the building of the extension is reduced as compared to last time. We’re looking at the division of revenue at allocation coming down to being at most 30% to 33% and then we would have private investors being 33% and then land value and station optioning and property development making up the other 33%. We are intentionally developing properties or transit-related developments in and around our stations. You have the aerotropolis which is a city around an airport; we are setting out to develop a “railtropolis”.

Property prices have gone up around Gautrain stations, not so?

Yes definitely. In the last economic impact study, we showed that for properties within a 5km radius, property prices grew at market

GAUTRAIN IMPACT

Typical construction year added to GDP

Typical post-construction year added to GDP

Median sales values within 2km radius of stations

R3.3-billion

R6.6-billion

Office: +45%

Retail: +32%

Residential: +52%

plus 5% greater than any other sector. Even in the 10km radius, property prices still grew decently above the market growth.

Are you buying new rolling stock?

We are acquiring more rolling stock but we are acquiring it not as a standalone project but we are doing it as part of the re-concessioning of the system itself.

Please unpack the concessioning system.

A concession agreement allows the private operator to operate the assets on our behalf and for that we pay them some part and then they get part of that money from their revenue earnings. The question we have had to ask now that the Gautrain has been built is, are we going to operate the systems ourselves?

We have the assets and we have had success in having the separation of duties. You have an asset owner who gives an asset out for operations and levies penalties on the person if they do not operate the system properly. Then you have an operator who earns a fee for operating the system itself. We thought this is the best method possible of being able to get the best practice out of operating railway lines. On most days we operate at 100% availability and 100% punctuality, which is unheard of in South African terms.

The concession has a fixed term?

It has a 15-year term. The old concession had the construction and the development period included, so it was a 19-and-a-half-year term with four-and-a-half years for the development part. We are going into another 15-year concession at the end of March 2024. We have put the bid out into the market.

You were involved in the engineering details of the foundation of the Gautrain. What were the biggest challenges that you and your teams faced back then? There were multiple challenges that we faced. In today’s context of looking at the extensions we are planning, it seems that sentiment towards public transport hasn’t changed in 20 years. When you say you are going to build a railway line, everybody says, “No, not in my backyard.” And then there are those who have experienced the Gautrain and you are getting a sentiment that says, “Why is it not coming into my backyard?” We are caught between the NIMBYS and the WIMBYS, as they now call the people who are asking, “Why not in my backyard?” As CEO, how do I work with this to satisfy everybody? The biggest challenge originally was the line location. Where my office is right now is not where the Midrand line was supposed to run. It was supposed to be on the western side of the freeway because that’s where the residential areas are but because there was such great fear of what kind of a system we were going to bring, that was the biggest challenge. It is the mental shift of being able to get people to understand that we are bringing a world-class system. A lot of businesses would now rather have their back wall being the Gautrain because they know that secures their businesses.

Anyone who has travelled on the Gautrain can’t but be impressed. What are the key pillars to the Gautrain’s success? The fundamentals of a good transport system is that it must be functional. The availability of the system, the punctuality of the system, the punctuality of supporting systems such as the buses and the minibuses, the escalators and all of that, that basic product has to be functional before you add fancy technologies. The basic product – which is a train ride – must be safe and it must be reliable. A lot of things fall into what we call hygienic factors. When they are in the background rather than them being the issues we argue about, then you then can superimpose technology on it. A good ticketing system will enhance the customer experience because the customer has the ability to be able to manage their own access. They can reload their card on an app or on a website or even travel with their bank card. We recently upgraded the technology so that you don’t need to buy a ticket, you can just show up with your debit card or with your credit card and ride on the system. That ease of access is the next level.

Gautrain is known for the professionalism of operations and staff who seem to care about what they are doing. How do you get that right?

Under concessioning I raised the issue of the separation of duties. First and foremost, it is a fallacy that the private sector would

do this on their own. You have the kind of system that we have now because there is a knowledgeable public party (an agency such as ours) that ensures that these things happen. You need an agency that without fear or favour will lay penalties on anybody who does not live up to the contract. Then you need a contract that is enforceable. Our contract is enforceable and the penalties are big if the services do not operate. We don’t want a contract that is penalty prone but it must be service prone, it is pro-service more than anything else. As I tell the team here, I am not in the business of penalties, I am in the business of providing services. The penalties have to incentivise service.

So there are consequences?

There are big consequences and expensive consequences.

How do you maintain that kind of excellence within your organisation?

I was told by an old mentor of mine, “Hire good people.” The rest of it takes care of itself. We hire the best. For our general interviews the minimum is a two-hour interview. We only bring the best to come and work with us. We source from both public and private but we only take the best in the market and that has always been my mantra. I will always hire for skill and capability and the rest of the things like employment equity come after the skill; the skill has to be there first and then we can talk about the other transformational issues.

What are your short- and medium-term goals as CEO?

The short-term goal is for us to be able to move the business with great speed to becoming self-sustaining. The operations of the entity have to completely come off the fiscus. We have to make our own money, so commercialisation is a big part of what we have to move with. We’ve already started with drivers’ licence and testing centres where you can get your new licence, you can register your car and you can get all sorts of other government services. That is turning out to be big business. I am meeting

BIOGRAPHY

with Treasury to confirm additional funding for us to roll out these centres all around the province. We are an agency that is gearing itself to be of great use not only to transport people, but to the greater public. We are also looking at developing a lot of properties around our stations and bringing on additional services. We will be self-sustaining and from then onwards we will start clawing back the amount of subsidy that is paid by government to subsidise the commuter. I want to ensure that any money we get from the state goes directly into subsidising the commuter and maintaining the asset, not working to sustain the agency.

And the expansion projects of the new lines form part of your plans?

We have already started the process. I have had a meeting with the project steering committee and it is all at full speed. We also are looking at putting the new contract in place, another key issue. We also have to close out the current concession. The amazing thing is that in and around South Africa there isn’t anybody who has closed out a concession similar to ours. We are the first, so we are creating new knowledge and as we continue with that, we have to make sure that we manage the knowledge and we have it recorded so that it can be shared with other people when they do this later on.

You have worked overseas and you’ve worked in the private sector. How have those experiences informed your approach to being CEO?

When I left the private sector, I explained to people who questioned my decision that my idea is to build public companies that are similar to private companies out there. If I can do that, then I would have served my country well. That becomes important: how do you meld in the capability that comes from the private sector with the rigour of spending public money? We have done that well enough at GMA so that we had 11 clean audits and I have been involved in nine of those.

Tshepo Kgobe is an engineer with more than two decades of experience in managing complex projects and operations with diverse technical requirements in infrastructure, energy and mining. A graduate of UKZN and Henley Business School (BSc, Civil Engineering, and diplomas and certificates in business management), Kgobe has also worked on strategy related to BBBEE, transformation and corporate social investment and marketing. His experience in the private sector includes serving as an Executive Director on the board of Hatch Africa and a period in the UK with Corus Rail Consultancy. He also worked at Metrorail. Tshepo was responsible for the engineering and project management of the trackwork subsystem in the Gautrain Rapid Rail Link project. He then held the position of Senior Executive responsible for all technical and project services in GMA and was until recently the Chief Operating Officer of the Gautrain Management Agency, responsible for the everyday running of the agency. He assumed the role of CEO in February 2024.

CEO of the Gautrain Management Agency, Tshepo Kgobe.

Gautrain: More than just a train!

Gautrain has been delivering passengers – and economic growth – since 2010.

The 8th of June 2010 marked a historic moment for South Africa as the first Gautrain ride for commuters left Sandton Station for OR Tambo International Airport Station, just in time for the 2010 FIFA World Cup. Members of the Gautrain project and the public braved the cold to be present for this momentous journey.

Fourteen years later, the Gautrain Management Agency (GMA), an agency established by the Gauteng Provincial Government to manage the implementation of the Gautrain Project, is recognised as a centre of excellence in the rail and public transport industry. The Gautrain has also proven to be more than just a transport project; it is an economic development project focusing on reaching the objectives of stimulating economic growth and job creation, promoting investment and new development. The system was a major employer of Gauteng residents in its construction stage and this has continued through to the operational phase. A total of 10 900 direct jobs and 61 000 indirect jobs have been supported during operations.

Cleaner, greener public transport

South Africa’s first and only rapid rail network is a forerunner in promoting smart mobility, helping to reduce road congestion, harmful carbon-dioxide emissions as well as noise pollution by

providing a cleaner, greener public transport option. A 2018 independent economic impact study commissioned by the GMA found that a commuter who uses the Gautrain every working day, to and from work between Johannesburg and Tshwane, saves around seven hours and R1 300 in petrol and car-maintenance costs a month. Furthermore, an average single trip on the Gautrain saves 2.8 kilograms of carbon dioxide (CO2) per passenger trip when compared to a private car.

In the 14 years since the Gautrain first opened its doors for passengers, 125-million train passenger trips have been undertaken and every day there are fewer cars on Gauteng roads. The arrival of Gautrain stations in communities has influenced local development and commercialisation decisions; R46-billion has been added to the total gross domestic product (GDP) of the provincial economy due to property development induced by the Gautrain, further contributing to another 245 000 jobs.

There has been a significant mushrooming of commercial and residential properties around Gautrain stations. The Gautrain route also breaks city boundaries and connects the metropolises of Johannesburg, Tshwane and Ekurhuleni, as well as linking to Africa’s largest airport, OR Tambo International Airport. This has not only led to the integration of communities but has also opened up opportunities for job

seekers, entrepreneurs and investors. Well-connected cities mean access to businesses, workers, residents and supply chains, reducing transaction costs, improving productivity and facilitating economic growth.

Integrated transport system

Alongside the railway operation, Gautrain has a Dedicated Feeder and Distribution Service, consisting of both dedicated buses and midibuses in partnership with taxi associations, provided to improve accessibility to the train stations and to limit road traffic to the stations. The Gautrain Midibus Service has been a critical game changer in unlocking the potential of the minibus taxi industry to operate scheduled, safe and reliable public transport services. In 2011, GMA formed an innovative contracting model with taxi associations operating in the Linbro Park area.

Since 2022, more midibus routes have been introduced and are operating at Gautrain Marlboro, Centurion and Hatfield stations.

Part of GMA’s mandate is to enhance the integration of the Gautrain system with other public transport services within the Gauteng province through initiatives such as the Midibus Service which commuters can use for just R12. The GMA continues to ensure that the Gautrain is an inclusive service and accessible for people living with disability. All Gautrain buses are equipped with electronic ramps to enable accessibility to persons living with disabilities and Gautrain bus drivers have been trained to assist passengers, including helping with boarding, disembarking and providing information about the journey. The Gautrain also offers discounts to students through the Gautrain Student Card and has a multi-tiered fare structure that offers favourable fares to frequent and off-peak travellers.

It is evident that the Gautrain, a national strategic asset valued at R45-billion at replacement value, has not only changed the perception of public transport in Gauteng, but most importantly has enhanced economic growth in the province. As the first publicprivate partnership of its scale in South Africa, the Gautrain has also been commended internationally and much interest has been shown in the lessons learnt from this contractual form and its application to other projects throughout the world.

For more information on Gautrain follow:

X: @TheGautrain

Instagram: @TheGautrain

LinkedIn: Gautrain Management Agency

Facebook: www.facebook.com/gautrain

Website: www.gautrain.co.za

Call Centre: 0800 42887246

SMS alert line: 32693

Leveraging global expertise to create local excellence

Nthabiseng Kubheka, CEO of Bombela Operating Company (a joint venture led by RATP Dev), is proud that the Gautrain can be used as a benchmark of what localised world-class public transport systems can look like in the Southern Africa region. She discusses the importance of partnerships, building strategic leadership, economic inclusion and the commitment of employees to a vision of delivering on a dream of an efficient fast-train service.

How did you come to be involved in the world of transport?

My career spans over 27 years working mainly in energy, a key sector of South Africa’s economy, where I was overseeing the efficient and successful implementation of mega-infrastructure projects, initially for our power utility Eskom, and later for the Power business of General Electric (GE: NYSE).

Both opportunities have afforded me the privilege of being mentored by industry leaders while actively contributing to building a better-resourced South Africa, which for me is a countryduty that I hold with the highest regard. The transportation sector is an equally important and strategic sector of our economy,

one that is key to unlocking socio-economic development and contributing to a carbon-free world by 2050 through moving people and goods from road to rail in mass.

When the opportunity to roll up my sleeves and lead BOC presented itself, I took it with both hands knowing that delivering on the efficient and successful day-to-day running of the Gautrain project would be a game changer for my career.

I am a patriotic South African who wants to see us progress into a super economy in Africa and beyond. My decision to leverage the lessons and skills acquired in the energy sector to contribute to building much-needed capacity in the rail transportation

sector was a no brainer. It made perfect sense. As a country we should take pride in building our economy from the bottom up by prioritising leading from the front while training and upskilling as many of our people to occupy strategic positions as possible. This is our country, we need to build it ourselves, no-one will do that for us.

What previous experience have you found most useful to your role as CEO of BOC, a joint venture led by RATP Dev?

At Eskom I learnt the project management of complex build projects; it taught me the importance of starting with the end in mind. Clarity of strategy and implementation ensures that you deliver on time and within costs as you have an immediate and long-term view of the impact of your day-to-day tasks.

At General Electric I learnt the importance of partnering with the best in the world and localising global expertise to benefit your local context. Countries and companies that are globally recognised for making gigantic strides in their growth have done so by collaborating, partnering and in some instances developing “glocal” (global and local) best practices.

Today we look back with pride at how we have leveraged our parent company RATP, the third-largest integrated transport leader globally and world leader in high-capacity rail networks. Today the Gautrain is globally recognised as a mode of transport that visitors and locals alike trust because of its predictability and consistency.

All of which has been influenced by the lessons learnt from other RATP Dev operations across Africa and beyond. For example, some of the Gautrain’s achievements to date include:

• 98% service availability and on-time performance.

• Over 131.6-million passenger trips since inception, 1.3-million of which were connecting travellers to OR Tambo International Airport.

• 24 200 fewer cars, contributing to reduced emissions and access to efficient public transport.

• An estimated R1.7-billion contribution to economy year-on-year.

• A R46-billion total contribution to GDP; 245 000 jobs added through property development.

We are privileged to have been a part of the collective team that has delivered on the above. None of this would have been achieved without collaborating with all our other partners and without the unwavering commitment of our employees.

Together this collective is flying South Africa’s flag high. To them we say Thank you, Enkosi, Siyabulela.

Nthabiseng Kubheka, BOC CEO.

If you were able to tell your 15-year-old self what position you have now achieved, would she have been surprised or would she have thought, “That’s about right”?

Probably she would have thought “That’s about right” with a disclaimer that “There is still a whole lot more to do”. The country is not where we envisaged it would be by now, despite making significant gains in our 30 years of democracy. A fully fledged and integrated transport system, a lower carbon footprint and a reduction in unemployment, especially among the youth and women, not to mention a fully diversified energy mix, are now needed to take our economy to significant growth levels.

Who have been inspirations to you along the path towards where you are now?

First and foremost, I am inspired by the resilience of the human spirit. Secondly, my parents, who have imparted in me the values of hard work, respect and paying it forward. Lastly, throughout my career I have had colleagues and bosses who have encouraged me to stay focused and lift others while I rise.

How would you describe your leadership style?

I am a fair and a firm leader who is empathetic and believes in accountability and integrity.

As an award-winning company in gender empowerment, please tell us what are the things you do or what is in your company environment that contributes to that achievement? Diversity, equity and inclusion are important for any country and for businesses operating in a market. For us in South Africa, this is further compounded by the need to fast-track the inclusion of more of our people into the economic value chain. Therefore, prioritising the segments of our population that are underrepresented in the economic value chain is an imperative that is at the heart of how we deliver value to South Africa.

The concept of “Ubuntu” (I am because you are), is a reminder that we owe our existence to all South Africans and those that came before us.

As part of our business strategy, we prioritise our communities and within them our youth, women, people with disabilities and the elderly. This we do through our corporate social investment projects, intentionally supporting their small and medium enterprises, the creation of quality and sustainable jobs and skills development programmes.

• We employ over 500 locals, 35% of whom are the youth and 50% are women.

• We provide mentorship, 250 hours of tutoring per year and three-year scholarships to the youth of Alexandra township through our Sizanani mentoring programme.

Who are the shareholders of BOC?

The Bombela Operating Company’s shareholders are RATP Dev (63%) and our local partner SPG (37%).

What is the main mandate of BOC?

Bombela Operating Company (BOC) currently operates and maintains the Gautrain, which is a 160km-per-hour high-speed train that safely and efficiently connects Johannesburg and Pretoria in just 42 minutes. As part of the operations, we manage 10 stations, associated parking spaces, security control centres, 125 Gautrain buses, 23 midibuses and an adaptative Operations Control Centre, which is our centre of operational excellence. The Gautrain is a best-practice case study that may be used as a benchmark of what localised world-class public transport systems can look like in the Southern Africa region and beyond.

To whom or what does BOC report? Or who is the client?

BOC reports to the Bombela Concession Company who in turn report to the Gautrain Management Agency.

What are you most proud of in terms of BOC’s operations?

Serving our customers and seeing their satisfaction with every trip that we make. Also having an experienced local team that is willing and capable of meeting the demands of our operations.

How many staff are employed at BOC?

Over 500 directly and many more indirectly.

Do BOC leaders engage in national, continental and international forums on issues relating to public transport (eg Africa Rail, the SARA Rail Conference)?

We participate in industry events as part of adding our voice to building the sector and ensuring that we promote local expertise and capabilities.

What role can RATP Dev play in supporting South Africa’s vision of building world-class cities in South Africa?

The parent company RATP is 70 years old and RATP Dev has been in existence for 20 years. It is the third-largest provider of integrated transport systems and a global leader in high-capacity rail networks. It has 24 000 employees across 15 countries and makes over 3.8-billion travels every year. South Africa can leverage the experience that RATP Dev already has in the South African and African markets and globally to deliver on its vision of building world-class cities. For example, RATP manages the metro lines in Paris and the surrounding areas, which is one of the densest multimodel networks in the world, doing 10-million trips a day postCOVID. That massive scale means that there are lots of lessons and expertise that can be borrowed from this wealth of experience.

In addition, as our leaders plan for the imminent extension of the current Gautrain line and for essential issues such as democratisation, RATP Dev can provide valuable insights on their experiences in this regard. For example:

• Across various types of transit systems such as the automated metros which are currently being generalised in Paris in the context of the Olympic Games to a wide range of buses operated across Europe, the US and the MENA and Africa region.

• Important topical issues such as the future of transport and the role it can play in climate-change mitigation; increased efficiency and operations through digitalisation and apps

(helping to track fraud, improve security, etc); as well as predictive maintenance and improvement of working conditions for workers (exoskeletons, VR, etc).

• Public Private Partnerships are essential in fast-tracking infrastructure development and growing the economy. This has been very evident with the success of the Gautrain project.

What are some of the lessons you have learnt through delivering on the Gautrain project?

Through the Gautrain project we have appreciated the learnings on the importance of partnering with a long-term commitment in mind, being agile and adaptive when the situation calls for it. For example, during the Covid-19 pandemic we had to adapt to the new reality of reconfiguring how we deliver our best service in a very challenging, fast-changing and very restrictive environment. The Gautrain serves as an example of how PPPs can effectively tackle transportation challenges and respond to the community’s expectations. While governments might not always have the expertise or funds to enhance transport infrastructure and service offering, setting clear objectives to private operators with a strong track record can be a powerful tool. Under the vigilance of strict performance metrics, operators can deliver an excellent service.

What advice would you give to South Africa’s next generation of leaders?

Prioritise education, humble yourself and be willing to learn from those who have been there before you and always do good at home, in the community and ultimately for your country. Good deeds attract good opportunities from people you may not have thought would notice you.

Rail is the sustainable solution

A new report captures the socio-economic impact made in a financial year by Alstom, the group whose Gibela Rail Consortium is making the X’trapolis Mega Train from 30% lighter steel. Alstom is the majority shareholder in a further three joint ventures in South Africa: Alstom Ubunye, Bombela Maintenance and Alstom BTSA.

Rail transportation is one of the most energy-efficient transport modes and will remain the backbone of mobility in a sustainable world. The average passenger cars in South Africa emit 148gCO2e/km, which is 18.9 times more than riding a train.

The X’trapolis Mega Train being produced at Gibela for Passenger Rail Agency South Africa (PRASA) is made from 30% lighter steel than trains made of carbon steel. The stainless steel translates to less energy consumption which results in lower greenhouse gas emissions. In addition, 99% of the train components are recoverable and 96% of them are recyclable, thus decreasing the likelihood of end-of-life impact.

Alstom, a global leader in sustainable and green mobility solutions, has released a report in collaboration with Ernst & Young (EY) capturing the company’s socio-economic contributions from April 2021 to March 2022. It highlights the support of over 9 000 jobs and R3.9-billion injected into South Africa as Alstom continues to grow its local presence.

“We have been in South Africa for at least 10 years now and our commitment to South Africa goes beyond the manufacturing of trains or railway components. We are a reliable local growth partner and are actively participating in the development of an inclusive and sustainable rail industry through localisation, job creation and skills development. This report creates a baseline understanding of the impact of our work to date and acts as a tool to measure our progress moving forward,” said Bernard Peille, Managing Director, Alstom Southern Africa.

Alstom’s strategy in South Africa is illustrated by significant investments in the country, which include Alstom Ubunye, Gibela Rail Consortium and most recently with Bombela Maintenance and Alstom Rolling Stock South Africa.

“Alstom’s commitment to eco-design is centred on minimising the environmental footprint of its solutions throughout the lifecycle. This approach is already applied to more than 50% of Alstom products globally with a target of having 100% of all new products by 2025,” says Peille.

Supporting local industry

“When we started our journey 10 years ago, the rail industry in South Africa was dormant and a significant effort was put into building Gibela’s supply chain which now consists of over 90 South African suppliers and 65% of the train’s content is supplied locally. Gibela also has over 1 000 talented employees and has delivered more than 100 locally made trains to PRASA," said Andrew DeLeone, President of Alstom in Africa, Middle East and Central Asia. Alstom’s actions also extend to freight; it is contracted to supply electric Traxx locomotives to Transnet, locomotives which will contribute to reducing heavy vehicle traffic on South Africa’s roads.

ON TRACK

Alstom has supported over 9 000 jobs in South Africa, according to EY

• R3.9-billion GDP contribution to South Africa’s economy

• 99% local hires, 35% women

• 65% X’trapolis train content supplied locally

• 91% less gCO2/passenger.km by train compared to cars

“In 2022, we expanded our manufacturing capabilities and can now produce locomotive car body shells in South Africa. Growing these unique locomotive skills locally is in line with our longterm growth strategy to introduce much-needed state-of-the-art freight solutions to the rest of the Southern Africa market. Reduced heavy vehicle/ truck traffic on our roads also leads to less carbon emissions and improved safety,” added Peille.

Enhancing the local economy

According to the report, Alstom South Africa purchased R3.6-billion of goods and services over the reporting period, 79% of which are from South African suppliers. The company’s dedication to local economic development has resulted in increased partnerships and support for local business enterprises. Alstom collaborates with over 500 suppliers in South Africa, who provide components for Alstom trains and services to projects across the country. Fully 99% of Alstom’s new employees have been local hires in South Africa, of which 90% are black Africans and 45% fall into the youth category. The company is committed to gender diversity and inclusion. Women compete equally for all roles and as a result 35% of the workforce is now female and this number will grow in the coming years through deliberate efforts. Alstom is committed to developing greener, smarter and safer mobility

for its customers but more importantly, to build local capability.

World-class skills training

In terms of skills and rail expertise development, Alstom invested in multiple skills transfer programmes and sent South African employees to various Alstom sites around the world including France, the United Kingdom, Sweden, Australia and India, among others. Alstom’s South African employees regularly undergo technical and behavioural skills training to ensure they operate at the same level as any Alstom employee at any site globally. In addition, Alstom also supports educational initiatives in South Africa focusing on science, technology, engineering and mathematics (STEM) subjects in high school and up to university level. Through its joint ventures, partnerships with universities are in place to advance railway-specific skills development, expand scientific and research capacity and attract and retain excellent researchers, students and scientists.

Alstom’s outlook for South Africa

By 2025, Alstom will grow its employee base by 10%, increase female representation up to 40% in the management, engineers and professionals category; optimise manufacturing to produce 62 X’trapolis Mega Trains per annum and intensify operational capacity to produce up to 50 locomotives per annum.

ABOUT ALSTOM

Leading societies to a low-carbon future, Alstom develops and markets mobility solutions that provide sustainable foundations for the future of transportation. From high-speed trains, metros, monorails and trams to turnkey systems, services, infrastructure, signalling and digital mobility, Alstom offers its diverse customers the broadest portfolio in the industry. Over 150 000 vehicles in commercial service worldwide attest to the company’s proven expertise in project management, innovation, design and technology. In 2021, the company was included in the Dow Jones Sustainability Indices, World and Europe, for the 11th consecutive time. Headquartered in France and present in 70 countries, Alstom employs more than 74 000 people. The Group posted revenues of €15.5-billion for the fiscal year ending on 31 March 2022.

Website: www.alstom.com

Employees at Alstom Ubunye.

Armscor, your strategic partner of choice for defence and security solutions

Delivering innovative defence solutions.

The Armaments Corporation of South Africa SOC Limited (Armscor) is an acquisition agency for the South African Department of Defence (DOD) and other organs of state and entities. Armscor's mandate is to provide the armed forces with state-of-the-art defence matériel, delivering innovative defence solutions efficiently and effectively. The organisation manages the strategic capabilities of the DOD, producing research and vanguard technological solutions required to provide safety and security for South Africa, its citizens and the continent.

Armscor’s core businesses

Acquisition

One of Armscor’s core businesses is acquisition. Its key functions include requirements analysis, technology development, design and development of products and product systems and the industrialisation and manufacturing of mature products and product systems that fully meet user requirements. It also entails procurement of existing and qualified products, as well as the acquisition of product-system support for user systems during the operational lifetime of the systems.

Research and development

Armscor, through its Research and Development, is able to conduct defence research and scientific research, test and evaluation services, technology management, analysis and industrialisation and intellectual property management services. The organisation has the capability to perform independent, centralised coordination and fulfil a management role for technology acquisition and technology commercialisation.

Naval dockyard

The dockyard provides repair and maintenance services to the SA Navy on various product systems from tugs to small craft, frigates and submarines. Maintenance and repair services cover both planned and ad-hoc projects. It is one of South Africa’s strategic national capabilities, where the country’s naval defence maintenance, repair and overall capabilities are housed.

For more information contact

Corporate Communication Division 370 Nossob Street, Erasmuskloof X4, Pretoria

Tel: +27 12 428 1911

Email: info@armscor.co.za

Website: www.armscor.co.za

Preventing threats while stimulating trade and legitimate movement

The Border Management Authority (BMA) is celebrating its one-year mark since inception with a mandate to tackle security threats, streamline migration processes, enhance safety measures, alleviate congestion and mitigate long transit times at South Africa’s ports of entry.

With its inaugural year marked by significant strides, the BMA is intensifying its efforts to stimulate trade activities and facilitate legitimate movement of persons and goods across the region while preventing serious threats against the Republic of South Africa. Since the deployment of the Border Guards in 2022, more than 300 000 people have been intercepted across the various ports of entry.

The notion of consolidating border management under a single authority faced initial resistance. Not everyone was convinced that it was the right approach. However, since the BMA became operational in April 2023, there appears to have been a notable turnaround. Initially, there was some uncertainty and even some anxiety about the entity, its purpose and the government's intentions behind it. The BMA had to invest significant time engaging with the private sector to ensure clear communication about the BMA's mandate and role. The establishment of the organisation has facilitated greater coordination and collaboration among various government departments and agencies involved in border management.

Collaborative effort

The BMA Act mandates a collaborative effort with various government departments and agencies involved in border management, including the South African National Defence Force, South African Police Service and South African Revenue Service (SARS), responsible for customs. During operations, as we collaborate and coordinate efforts with a multiplicity of agencies, local traffic authorities across the country play a significant role for managing corridor movement towards the port of entry. For the effective management of the movement of children across the ports, the BMA cooperates with the Department of Social Development. All BMA activities are overseen by members of the Border Technical Committee (BTC), who are heads of entities and Directors General, as well as the Inter-Ministerial Consultative Committee (IMCC) on border management. The approach of contextual collaboration is making a major difference at our ports. The BMA has undeniably brought stability and certainty to border posts and we remain committed to making further strides moving forward.

Where we come from

The BMA has been focusing on its capacitation and undertaking final processes for the integration of staff members from the four government departments operating at the ports of entry (DHA, Agriculture, Health and the Environment).

The BMA has applied all critical departmental policies and procedures.

The formative year of the BMA’s existence was sealed by its official launching by his Excellency, President Cyril Ramaphosa, in October 2023.

In this period, the BMA actively reached out to various stakeholders to ensure that there is a grasp of the functions and objectives of the BMA. Considerable progress was made and there is now a much greater sense of certainty. Our operations in this first year adopted an approach of not solely managing this from the top down and this has been pivotal. The BMA has dedicated significant time on the ground, first-hand witnessing border operations, understanding challenges and brainstorming solutions. Additionally, our continuous collaboration and dialogue

with the private sector has played a crucial role. By actively seeking their input, the entity was able to address their needs effectively and ensure the delivery of viable solutions.

Congestion solution

One example is at the Lebombo border post between South Africa and Mozambique where persistent congestion had been causing delays and increasing costs. In response, the BMA partnered with SARS to implement a joint-processing system under canopies on a bypass at the border post. This innovation streamlined truck movement by allowing officials to process trucks without drivers needing to disembark. By bringing the processing directly to the trucks, rather than having drivers navigate various buildings for cargo clearance and immigration, the BMA significantly reduced truck turnaround times.

The 2024/25 financial year signifies the first year of BMA’s full operation as an autonomous schedule 3(A) public entity. It is crucial to recognise that coming to border management and addressing issues at the various ports of entry, there is no one-sizefits-all solution for the challenges at ports. Each port of entry differs in layout, infrastructure and volume of traffic, making it essential to tailor solutions accordingly. Central to finding these solutions is the understanding that addressing issues cannot be done solely from an office in Pretoria. Over the past year, the BMA has prioritised on-site visits to border posts, gaining insights into their unique layouts and identifying infrastructure gaps. This approach emphasises addressing problems directly from the ground level.

The Lebombo border post solution underscored the need for innovation, collaboration and location-specific solutions.

Ports of entry cannot be treated as isolated entities; a corridor approach is essential for effective trade facilitation. This means considering the entire route, not just the individual border points. Specifically focusing on ports of entry, the first step is to address infrastructure to create environments conducive for lawful trade while curbing illicit activities. South Africa's ports of entry, originally designed for security during apartheid, now need revamping to facilitate regional and international trade more effectively. To achieve this, the BMA initiated requests for proposals for the redesign and development of six ports: Beitbridge, Lebombo, Maseru Bridge, Ficksburg, Kopfontein and Oshoek. Through this initiative, the aim is to enhance cross-border movement efficiency, promote regional economic integration and provide better support for the African Continental Free Trade Area (AfCFTA).

The establishment of a single entity for industry to engage with, rather than multiple government agencies, has yielded positive results thus far and has significantly streamlined border operations. The BMA has sought to strike a balance between security imperatives and the facilitation of lawful movement of people and goods.

Modernising infrastructure

In the near future, the BMA will be modernising border infrastructure and deploying advanced technology to improve border management capabilities. Investments have been made in

biometric systems that will provide us with detailed travellers data. Automated clearance processes, body cameras, drones and hi-tech surveillance equipment will also enhance border surveillance, identification and processing procedures.

The celebration of the BMA’s first anniversary coincides with a momentous time of the 30-year anniversary of our freedom and democracy. The BMA continues to demonstrate a commitment to upholding the rights and dignity of individuals crossing South Africa’s port of entry, including refugees, asylum seekers and vulnerable groups. By ensuring that border control activities are conducted in accordance with national and international laws, the BMA has worked hard to adhere to constitutional principles.

A happy one-year anniversary to the BMA!

Dr

NM

Masiapato,

Commissioner and CEO, BMA

Ms MJJ Thupana, Deputy Commissioner: Corporate Services, BMA

Major

General David Chilembe, Deputy Commissioner: Operations, BMA

Harnessing private expertise for world-class public infrastructure

The best way to tackle South Africa’s water woes is through public-private partnerships, says experienced P3 infrastructure developer, the Gap Infrastructure Corporation.

South Africa’s taps are at risk of running dry as its watersupply infrastructure comes under mounting pressure. As millions go without reliable in-home water connections and water supply infrastructure buckles under the pressure of population growth, urbanisation and industrialisation, the 2023 World Water Day theme of “accelerating change” was especially relevant for South Africans and the Gap Infrastructure Corporation (GIC).

The lack of access to clean water in many rural areas is becoming increasingly critical as water scarcity grows, leading to overcrowding at communal water taps and increased reliance on dirty or contaminated groundwater sources.

According to the last General Household Survey by Statistics South Africa, an alarming 12.2% of households used a public tap as a source of water; 1.9% used a neighbour’s tap; 1.8% used flowing, stream or river water; 1.7% made use of a water-tanker; 1.6% used a water vendor; and 1.5% used a rain-water tank, among other alternative sources.

Adding to the country’s water scarcity woes is below-average rainfall. South Africa’s annual precipitation is almost half that of the

global average at just 497mm per year. “Given the high demands on South Africa’s water resources, it is crucial that we prioritise the development of sustainable and easily accessible water infrastructure such as boreholes or rainwater harvesting systems, and invest in upgrading existing water supply systems,” says Roelof van den Berg, CEO of GIC.

Community education on water conservation and efficient water use is also vital. Through teaching households water-wise habits, community education can help reduce the burden on shared water sources and ensure that more people have access to safe and clean water in their homes.

“World Water Day called for increased efforts to promote water conservation, efficient water use and sustainable water management practices. It also emphasises the importance of innovative solutions and technologies to ensure that water resources are used more sustainably.

“Finally, the topic of ‘accelerating change’ was particularly relevant for GIC as a trusted construction partner in the drive to roll out reliable water infrastructure for the benefit of all South Africans.”

Water infrastructure is under pressure.

Harnessing private expertise for world-class public infrastructure

In the ongoing quest to improve infrastructure development nationally, public-private partnerships have emerged as an invaluable tool. These successfully bring together the expertise and resources of both private construction companies and government to deliver enhanced services.

THE FOUR BIG BENEFITS THAT COMPANIES CAN BRING TO THE PROCESS ARE DIVERSE:

Enhanced infrastructure roll-outs

Public-private partnerships are an effective way of increasing capacity, ensuring that more projects are undertaken simultaneously at a high-quality standard. By utilising these partnerships in the development of water infrastructure, South Africans can enjoy the benefits of new water-treatment plants and upgraded water-supply systems, while stimulating job creation, small business growth and increased investment in new technology and innovations for world-class water and sanitation systems.

technologies and conducting feasibility studies and environmental impact assessments.

Professional project management for maximum returns

The private sector can supply government with the required expertise as well as the qualified and experienced staff needed to ensure the success of large-scale projects. Infrastructure development companies can manage construction contractors and sub-contractors, liaise with numerous suppliers and control operations to ensure that projects are completed on time and within budget.

Community education and partnerships

Private companies can assist in launching and managing important learning and awareness programmes with communities, sharing responsibility with public entities for education and upliftment. For example, companies involved in water infrastructure development may roll out programmes teaching community members about water conservation and efficient water use and provide technical training and upskilling to local workers in the construction, operation and maintenance of water and sanitation infrastructure. Many of our country’s water issues, current and future, can be resolved in large part by upgrading the country’s ailing water system and constructing new infrastructure in previously underserved areas. Public-private partnerships are the most suitable, sustainable and beneficial way to ensure that quality infrastructure is developed sooner rather than later.

Expert planning and design

Through proper planning and design, infrastructure development companies help to ensure that projects are initiated and managed in environmentally sustainable and cost-effective ways. Drawing on deep infrastructure development expertise and experience, companies such as GIC further work to ensure that projects meet the needs of specific communities. This includes developing comprehensive water and sanitation plans, identifying appropriate

Roelof van den Berg, CEO of GIC

Large numbers of South Africans use public taps as a source of water.

Collaboration and co-creating sustainable solutions

Coca-Cola Beverages South Africa believes in collaboration to ensure water sustainability.

to create greater shared opportunity for the business and the communities we serve, across our value chain.

biodiversity. In addition, many of our water replenishment projects have additional co-benefits such as helping to improve soil health,

sequester carbon, conserve water, restore degraded lands, contribute to biodiversity and mitigate climate change. We are focused on accelerating the actions needed to increase water security where we operate, source ingredients and touch people’s lives. We do that by contributing towards sustainable, clean water access that improves livelihoods and wellbeing while protecting against water-related disasters.

We continue to replenish the water we use in our finished beverages to nature and communities. We have set three key goals designed to achieve our vision:

• Achieve 100% regenerative water use across our facilities in areas identified as facing high levels of water stress by 2030

• Improve the health of watersheds identified as most critical for our operations and agricultural supply chain by 2030

• Continue to return water to nature and communities. Ensuring the health of watersheds is a major part of this.

For example, as CCBSA we successfully implemented Project Lungisa in Grabouw in the Western Cape, where the municipality was losing a significant amount of its potable water due to leaks and failing infrastructure. Through this partnership, we trained young community members in plumbing to support the rehabilitation of water infrastructure, including fixing leaks in informal areas. In response to a looming Day Zero in parts of the Eastern Cape, CCBSA launched an ambitious project to work with the local municipality and other key stakeholders to assist vulnerable and distressed communities. Since 2020, CCBSA deployed an off-grid, solar-powered groundwater harvesting and treatment initiative called Cokevilles. In the region, a total of nine systems, or boreholes, have been deployed in Gqeberha with a potential

of replenishing a minimum of 90-million litres per annum at no cost to the beneficiaries. Last year the company unveiled a R12-million groundwater harvesting Cokeville project, to supply the entire town of Graaff Reinet in the Eastern Cape with potable water. The Cokeville mega project was installed to feed directly into the municipality’s infrastructure and is able to supply between 27-million and 30-million litres of water every month to the town and surrounding communities. Since the inception of our borehole groundwater harvesting programme, we have managed to replenish hundreds of millions of litres of water in Limpopo, KwaZulu-Natal, Gauteng, Free State and the Eastern Cape provinces, benefitting thousands of households.

Building resilience through partnerships and innovation

We understand that no entity can solve the water challenges alone. We believe in collective action and partnership to tackle development issues. It is important that all relevant stakeholders have a voice, an investment and a shared understanding of the outcomes to ensure we deal with the lack of access to safe water.

As CCBSA we believe in and are committed to solution-driven conversations for a better future for all.

The Graaff-Reinet Cokeville megaproject will supply between 27-million and 30-million litres of water every month.

Uniting education and employment, a true catalyst for progress

As South Africa votes in national elections for the seventh time since the democratic dispensation began, Jacques Farmer, Managing Director of Prisma Training Solutions, argues that for the country to really move forward, skills development must be a bridge to employment opportunities.

s the 2024 national election draws near, South Africa stands at a crossroad. The air is filled with a sense of expectation, where hope for a better future mingles with anxieties about the challenges ahead. Citizens are hungry for leaders who will confront the man on the street’s most pressing challenges – unemployment and

The nation grapples with a staggering unemployment rate of 33.9%. These figures aren’t just numbers; they represent the harsh reality endured by millions, leading to widespread poverty, social unrest and a deep-seated sense of despair. To break free from this crippling stagnation a revolution is needed, not just political, but a revolution of education, skills and opportunity.

Bridging the gap between education and employment

Such a revolution demands a concerted effort from both the government and the private sector. Investments in education must be intensified, ensuring quality learning reaches every corner of the country and vocational programmes must be given a complete overhaul. Gone are the days of generic qualifications.

“Transformed into a sought-after craftsman.” Limpopo resident Lucky Ndou qualified as a diesel mechanic through Murray & Roberts Cementation's training initiative at the De Beers Venetia Underground Project.

PHOTO: De Beers

The modern, digital-first economy demands precision skills. But education alone is not enough, experience is necessary. Here, businesses must be geared to provide the right environment for learned theory to find practical application, to maximise opportunities for skills growth and development.

However, the government alone cannot orchestrate this revolution and the private sector, particularly industries like mining, must be used as a potent catalyst for change. Companies should look towards expanding employment opportunities through targeted training and development initiatives. For example, mining houses collaborating with local communities, nurturing the talent hidden within through multi-skilling programmes that equip locals to operate machinery, coupled with dedicated channels to integrate them into the workforce, would be a transformative step.

To get to this point, it is crucial to move beyond skills development being a just tick-box exercise to garner points that only have corporate worth. We must transition to a mindset in which skills development becomes about igniting passion and fostering an entrepreneurial spirit. This could be in the form of mentorship programmes led by industry veterans who share their wisdom and experience with eager young minds, or business incubators sprouting up in mining towns, nurturing the seeds of local innovation and enterprise.

Skills development as the catalyst for unity

The union of education and employment must be seen not merely as a transactional exchange, but rather a powerful force for progress. Imagine a young woman from a rural village equipped with the skills to operate a drone, mapping mineral deposits with precision. Imagine a young man, once struggling to make ends meet, transformed into a sought-after craftsman due to his welding capabilities. These are not just stories, they are the building blocks of a brighter future when the right skills meet the right opportunities.

This is the future we must strive for, a future where skills development acts as a bridge, connecting education to a fulfilling professional life in which individuals are empowered to provide for themselves and their families. As a result, poverty will recede, replaced by the dignity of economic self-sufficiency. Crime rates will plummet and communities, once fractured by despair, will find unity in their shared prosperity. As is clear, this isn't just an economic imperative, it's a moral one. An opportunity is presented to build a South Africa where dignity and hope are not luxuries but fundamental rights.

Partnerships between communities and corporates

The 2024 election acts as a watershed opportunity. Let us choose leaders who understand this fundamental interplay between education and employment, leaders who will champion the skills revolution, who will invest in our youth, equipping them to become the architects of our tomorrow. To this end, training providers in every sector can make a significant difference by embracing this philosophy wholeheartedly and manifesting such a commitment through the provision of tailored training that

recognises the importance of forging strong partnerships between corporates and communities. Training providers can turn boxticking exercises into initiatives that are specifically designed to empower individuals, transform lives and ignite a brighter future for all. Training providers can achieve this by dispensing the tools, providing guidance and delivering a platform for communities to take charge of their own path towards growth and prosperity.

Investing in the future of our country

As we stand on the cusp of change, ready to cast our ballots, let us remember – the seeds of progress can only be sown in education, nurtured by skills development and reaped in the fertile ground of employment. Let us make the 2024 election a catalyst for real, lasting change, a moment where South Africa embraces the transformative power of the integration of education and employment.

About Prisma Training Solutions

With over a decade’s experience in the mining industry, Prisma offers customised and sustainable education, training and organisational development solutions that ensure that clients can realise their return on investment with increased productivity and efficiency through qualified and trained staff, while operating within the most competent and safe environment.

As the leader in professional training and a fully MQA-accredited specialist training service provider to the mining sector, Prisma have centres of excellence that provide the very best learning and development solutions customised to clients' exact needs. Strategically positioned in the North West, Mpumalanga and the Northern Cape, Prisma is ideally placed to respond to clients’ training needs anywhere within Africa including South Africa, Namibia, Botswana, Ghana, Sierra Leone and Tanzania.

Jacques Farmer, Managing Director of Prisma Training Solutions.

Facilitating skills development for sustainable livelihoods

The chemical industry’s sector education and training authority is pursuing partnerships based on innovation, collaboration, digitisation and transformation, says Yershen Pillay, CEO of CHIETA. This forward-looking SETA aspires to be a fully digitised entity that goes beyond skills to promote sustainable livelihoods and improve the quality of life.

What is the mandate of the Chemical Industries Education and Training Authority (CHIETA)?

CHIETA is a statutory body that was established by the Skills Development Act in 1998. CHIETA’s role in the sector is to facilitate skills development as well as to ensure that skills needs are identified and addressed through various training initiatives in the chemical and manufacturing industries. As a trusted partner in skills development and training for the chemical sector, CHIETA funds the industry for various occupational programmes as well as certain Technical Vocational Education and Training (TVET) sector and higher education programmes. Our mission is to facilitate skills development, education and training through innovative solutions for sustainable livelihoods.

How do you empower South Africa’s youth?

CHIETA offers learnerships and other youth programmes to unemployed youth to promote employability in line with government policy as per National Skills Development Strategy (NSDS III) objectives.

CHIETA has entered partnerships with various parties to drive innovation, skills development and training in Africa. Our role includes sourcing corporate entrepreneurs in the chemical sector to upskill them and identifying Fourth Industrial Revolution-linked programmes. The impact of this is that it will help provide youth with skills to combat unemployment.

We offer a wide range of discretionary and mandatory grant funding directed towards women, youth and people living with disabilities. One major programme launched during 2023 was the

Smart Skills Centres, in which rural learners are taught digital skills to keep abreast of artificial intelligence (AI) developments. The authority intends to establish these centres in all nine provinces.

Another project that stands out is the AlgoAtWork Robotics Academy in Richards Bay, in which children are taught essential skills for an AI-driven workplace in the future. Numerous bursaries flow into learning support and programmes for retrenched employees, a fundamental way CHIETA supports the Economic Reconstruction and Recovery Plan (ERRP).

Through its various programmes, including the upcoming Discretionary Grant Funding Windows and working with corporations, CHIETA provides potential opportunities for 615 internships, 1 085 leadership, 1 395 skills programmes and 1 285 TVET students for Work Integrated Learning.

CHIETA offers unique training programmes providing practical skills for matric graduates’ employability. Please tell us more.

CHIETA offers graduates or students looking for workplace experience, work exposure or work-integrated opportunities in the chemical sector. They also have programmes such as work readiness and job preparedness programmes, entrepreneurship development programmes, mentorship and market access programmes to support employability.

Please provide an overview of the learnerships and apprentices that you offer.

CHIETA will also continue to support fundamental skills focus areas including artisan training, learnerships, work-integrated learning and coherent skills training programmes (also known as part-qualifications) that allow for immediate job mobility while leaving the door open for candidates to further enhance their learning to obtain the remaining parts of the qualification incrementally using the lifelong learning principle. The apprentice career fields include boilermaker, draughtsman, electrician, fitter and turner, industrial machinery mechanic, instrument mechanic, millwright occupational instructor, refrigeration mechanic, rigger, truck driver and welder. Learnerships are directly related to occupations in the various fields of science, engineering and business.

Please tell us about CHIETA’s industry collaboration.

The organisation has adopted a partnership mode informed by the four strategic pillars (innovation, collaboration, digitisation and transformation). The strategic value of this approach is the contribution of these partnerships towards consolidating the organisational capacity to deliver stakeholder value and achieve the desired social impact.

TVET college sector partnerships and Community Education & Training Colleges (CET) partnerships play a critical role in the supply of skills:

Yershen Pillay, CHIETA CEO

Coded Welding (pilot project) with TVET colleges: A pilot project on blended learning to explore e-learning using the Coded Welding Skills Programme to curb youth unemployment, improve livelihoods and support economic development. The lessons and best practices would be shared towards the implementation of e-learning in the chemical sector.

Sefako Makgatho Health Sciences University: CHIETA funded Sefako Makgatho Health Sciences University to partner with pharmaceutical companies to offer work-integrated learning for undergraduate students who are studying pharmaceutical-related qualifications.

Trade unions in the chemical sector: Reskilling of the chemical industry’s retrenched workers.

CHIETA/CHEMIN Innovation Hub: The programme supports entrepreneurs in developing ideas into profitable businesses through incubation programmes.

CHIETA/UJ Multi-SETA Project: Grow collaboration among SETAs (envisioned partnership with EWSETA, ETDPSETA, Services SETA, AgriSETA and INSETA). The collaboration with the other SETAs for cross-sectoral SMME development will enable competitiveness and increased productivity of SMMEs participating in this programme for them to survive in the ever-changing business environment. These SMMEs will be the catalyst of job creation and economic growth.

CXI African Strategic Projects and Youth Media Movement: The digital skills gained from these projects will provide the youth with an opportunity to enter occupations in high demand and contribute significantly to the digital revolution and economy in South Africa.

China Europe International Business School (CEIBS): Support for corporate entrepreneurs within the chemical sector to grow the economy.

Smart Skills Centres: Smart Skills Centres will be established in all nine provinces.

CHIETA/MICT SETA/INSETA: Partnering on strategic projects that are aligned with the organisations’ mandates and will contribute to:

• Economic empowerment

• Youth employability

• Food security

• Entrepreneurship and business support

• Digitisation and 4IR.

The SETAs are partnering to identify the priority research areas and conduct research to support the CHIETA, INSETA and MICT sector skills plans.

How does CHIETA use innovation in its training initiatives? We not only use and encourage the support of e-learning and blended learning methods as we forge ahead, but it is imperative to strengthen our existing partnerships with both the private and public sectors. Concomitantly, we must cement new and lasting partnerships that will allow us to put the chemical industry on the

fast track to adopting 4IR and to continue to innovate in our quest to eliminate poverty, reduce inequality and spur the economic development of the country. We aspire to be a fully digitised, innovation-driven SETA that is not just about skills development, but about sustainable livelihoods and improving the quality of life. We want to support the end-to-end value chain of sustainable livelihoods. We conduct virtual reality-based training and promote the use of AI in education and training. We want to impact 100 000 livelihoods by 2025.

What is CHIETA’s perspective on tackling unemployment?

We can improve the agility of educational and training institutions. When the economy needs new skills, how fast can the country’s training providers react? An essential pillar of CHIETA’s vision is to overcome the difficulty that many communities in South Africa, predominantly in rural areas, have in accessing digital skills and opportunities. Therefore, bridging the digital divide is crucial if the country is to address the challenges around skills. The impact of upskilling people in 4IR-linked programmes is that it will help provide youth with skills to combat unemployment.

What are some of CHIETA’s success stories that illustrate the tangible impact of your initiatives?

CHIETA received a clean audit, met 100% of its targets and grew levy income year-on-year from R592-million to R621-million. CHIETA is determined to continue making a difference and working on the hydrogen economy for which it has gained a growing reputation as a leader in the green economy.

We take comfort from the fact that we are putting resources behind dozens of young girls interested in science – at least 217 last year – with positive results to boot.

The Eastern Cape Department of Education recognised hardworking matriculant Liyabona Ncanywa as one of the province’s top achievers in the 2023 national senior certificate examinations. CHIETA assisted her with tuition and school fees through its science, technology, engineering and mathematics (STEM) fund that supports 1 000 learners nationwide.

Through its various programmes, including the upcoming discretionary grant funding windows and working with corporations, CHIETA provides potential opportunities for 615 internships, 1 085 learnerships, 1 395 skills programmes and 1 285 TVET students for work-integrated learning.

Please discuss CHIETA’s role in addressing high unemployment rates among the Class of 2023.

In the past year, CHIETA supported the Economic Reconstruction and Recovery Programme (ERRP) of the government through three programme initiatives, namely:

• Occupationally directed programmes

• The STEM programme to grow the number of women and people with disabilities entering the chemical industry

• Support programmes for co-operatives, SMMEs, nongovernmental organisations and community-based organisations in both rural and urban areas

• These have yielded positive strides and evidence of success since inception.

• CHIETA’s role in the implementation of an innovation, skills development and training programme in Africa includes sourcing corporate entrepreneurs in the chemical sector to upskill them and identifying 4IR-linked programmes.

How do we start building an innovative and employable workforce for South Africa?

We can improve the agility of educational and training institutions. As an innovation leader in education, skills development and training we don’t want to train for the sake of training. Our broader goal is to improve the quality of life by focusing on sustainable livelihoods. We focus on reskilling and upskilling people to ensure they can have sustainable livelihoods. As industries like ours and others digitalise, we see a demand for what one could call crossover skills, skills that are as valuable in mining or retail as they are to our industry, which means that we must broaden how we interpret our remit.

Bridging the digital divide is crucial if the country is to address the challenges around skills.

A beacon of excellence

The Mankwe Campus of ORBIT TVET College is committed to providing accessible education and practical training, says Welheminah Molapi, Acting Campus Manager.

Please describe the community or communities served by Mankwe Campus.

The campus is located next to the Pilanesberg Game Reserve in a rural environment. It is 10km from Sun City and based on the locality, appropriate infrastructure and the objectives of the Provincial Growth and Development Strategy. Hospitality and Tourism were identified as niche areas for the Mankwe Campus. It serves local communities comprising 107 villages and the two formal townships of Mogwase and Madikwe with an estimated population of 242 553. Our campus forms part of the Moses Kotane Local Municipality which is mainly characterised by tourism, mining and agriculture. Industries and social services also form a critical part of the local economy.

What are the skills which are most relevant to the needs of the communities?

ORBIT TVET College Mankwe Campus stands as a beacon of educational excellence in the Moses Kotane Local Municipality. Its commitment to providing accessible education and practical training empowers students to pursue their dreams and contribute to the growth and development of Mankwe and beyond. Whether you are interested in Engineering, Business Studies or Hospitality and Tourism, Mankwe Campus offers a diverse range of programmes to help students on their path to success. A special feature of Mankwe Campus is a magnificently designed mock workplace for students studying Transport and Logistics, and Tourism and Hospitality. Two distinctive, Afri-chic guesthouses are available on campus. They are run and maintained by Mankwe Campus Hospitality and Tourism students. Students are exposed to real-life job experience while completing their studies.

Please give an example of collaboration with business. We forged a partnership with Anglo Platinum Mine for placement of our students to help them fulfil their academic requirements and build their skills before they graduate. The mine has partnered with Mankwe Campus to also offer internships and for students to gain experience. Most Memorandums of Understanding signed with partners are aimed at the placement of staff and students for expanded learning and job placement opportunities.

What are the potential benefits of having a virtual reality (VR) welding workshop at the college?

The Chemical Industries Education and Training Authority (CHIETA) donated a VR welding workshop to Mankwe Campus for skills development in welding, using digital skills. Students

are using the VR simulators to optimise designs before actual welding, allowing them to identify potential defects or weaknesses in welds through simulated trials. This saves time, resources and ensures better-quality welds in real-world applications. When students are practising in a virtual environment, they develop muscle memory and techniques.

Does Mankwe’s accommodation give the campus an advantage?

Mankwe Campus is the only campus with student accommodation and can accommodate 560 students. Students living on campus are just a short walk away from classes, an advantage in terms of punctuality and class attendance and giving easy access to resources such as the library, student support services, co-curricular programmes, academic assistance or counselling.

What are the challenges faced by this campus?

• Infrastructure maintenance and NSFAS funding.

• Insufficient opportunities for student and staff placement.

• Offering programmes that do not respond to the demands of the market and industry.

• Limited resources.

What do you enjoy most about being a campus administrator?

As a Campus Manager, I enjoy being a leader. My campus community are the first priority of progressive leadership. An atmosphere that fosters employee growth is produced by leaders who prioritise the growth and well-being of their teams. Better campus outcomes are the consequence, as this raises motivation and engagement levels. My experience has provided me with the opportunity to work as a member of a multi-disciplinary team, utilising strong communication and interpersonal skills in order to build respectful professional relationships with members of staff, students and key stakeholders alike and promote the college’s strategic objectives.

Virtual reality becomes a reality for ORBIT TVET College

North West college’s digital strides are enhanced by CHIETA partnership.

Avirtual-reality welding workshop has been presented to ORBIT TVET College.

The Mankwe Campus of the ORBIT TVET College in the North West Province was the grateful recipient of a fully stocked virtual-reality (VR) welding workshop when the CEO of the Chemical Industries Education and Training Authority (CHIETA), Yershen Pillay, visited the site in September 2023.

One of CHIETA’s biggest goals is to make digital technology accessible to rural communities. With the students of Mankwe Campus being mainly drawn from the communities of Mogwase and Mabela Pudi, CHIETA is achieving its goal by making available to the campus such virtual-reality training equipment.

Mogwase and Mabela Pudi are near to Sun City and the area has a number of platinum mines but many families rely on subsistence agriculture so this is an excellent site for achieving the goal of narrowing the digital skills divide in rural areas.

During the ceremony, Pillay explained that VR technology serves as a practical tool in the educational process as it combines new technology, the advantages of digitilisation and easy use to allow student welders an opportunity to achieve the best welding results. CHIETA strongly believes that no-one should be left behind.

CHIETA is engaged in a national programme of rolling out SMART Skills centres across the country, with the goal of establishing nine such centres by 2025. Saldanha, Port Elizabeth, Sabie (Mpumalanga) and Babanango (KwaZulu-Natal) already have SMART Skill centres and the programme continues.

ORBIT TVET College has made strides in the ICT field through a partnership with Intel. The laboratory at the Brits Campus, supported by Intel, enabled two groups of ORBIT students to

progress to the finals of a 2023 global AI competition run by the company. One of the teams finished third overall.

Specialisations at ORBIT TVET College

As part of a national programme, two Centres of Specialisation are offered at ORBIT TVET College. On the Brits Campus, specialist apprenticeships can be trained in the trade of electrician. At Mankwe Campus, diesel mechanic is the specialisation on offer.

Altogether the College has three campuses, with the administrative headquarters based in Rustenburg.

Centres of Specialisation are departments within TVET colleges dedicated to artisan training in partnership with employers. The curriculum consists of occupational qualifications designed by industry for industry and which are registered with the Quality Council for Trades and Occupations (QCTO).

By forging valuable partnerships with business and industry partners, opportunities for work-integrated learning are presented to students when they complete their studies.

The virtual reality welding workshop on the Mankwe Campus of ORBIT TVET College is officially opened by College Principal Mr Dika Mokoena and CHIETA CEO Mr Yershen Pillay.

Working closely with SETAs to advance skills training

Resolution Circle has relaunched the Technical Training Centre in Welkom, an opportunity, says CEO Gideon Potgieter, to expand the technical training provider’s geographical range.

Biography

Gideon has extensive experience in Operations Management in the corporate world and in a consulting role, including Supply Chain Management, Quality Management and Project Management, applying tools, methodologies and philosophies like ISO9001, Kaizen, Lean, Six Sigma and the Theory of Constraints. He has worked in several industries ranging from higher education, high-tech electronics and information technology to automotive, medical insurance and renewable energy in South Africa and abroad.

Gideon Potgieter, CEO Resolution Circle

What is the significance of relaunching the Technical Training Centre in Welkom?

The Province of the Free state does not have any other training centres that offer apprenticeships other than Automotive or Electrical.

What is the basis of your relationship with the University of Johannesburg?

We are a subsidiary of UJ through the Holding company UJ INVNT.

How does this project fit in with Resolution Circle’s goals?

We entered Apprenticeship Training in 2019, which allows us to expand our footprint beyond Gauteng.

Do you have other sites where you offer training or do you send trainers out?

We have both; we have our own sites in Johannesburg and Ekurhuleni and we have trained at remote locations across the country.

Do you offer independent courses or are your courses always linked to a corporate sending employees to you? We do offer independent courses.

Can you help a student who can’t afford the fees?

Yes, we can. We apply for grants and when we receive grants, we generally recruit from the pool of unemployed candidates.

Please explain the difference between Apprenticeship, Candidacy and Work-Integrated Learning. Apprenticeship leads to becoming a qualified tradesperson like a Boilermaker or Electrician. Candidacy assists Engineers, Technicians and Technologists to register professionally with the industry body after qualification. Work-Integrated Learning is for Technicians in training who completed their relevant theory at the respective Universities of Technology, but in order to obtain their diplomas, they need to complete between six and 12 months of practical work exposure. These programmes cover levels 2 to 8 in the NQF system.

Do you work together with SETAs?

We work closely with CHIETA, ETDP, EWSETA, Manufacturing and Engineering, MICT, MQA and TETA. We wish to work with Agri, Construction, FoodBev and Local Government SETAs in the future.

Creating an employable workforce is said to be the focus of SETAs: do you see progress in SA in this regard? It remains the largest challenge, to get learners into opportunities to gain work experience in order to allow them to complete their qualifications.

Shaping the future of financial planning in South Africa

The School of Financial Planning Law (SFPL) at the University of the Free State has long been a trailblazer in the field of financial planning. As Professor Liezel Alsemgeest, the School’s Director explains, high standards for teaching and research continue to keep SFPL at the forefront of the discipline in South Africa.

Provide a historic overview of financial planning in South Africa and how the School of Financial Planning Law at the UFS contributed.

Financial planning in South Africa has come a long way to now being regarded as a well-established profession. Prior to the 1980s, financial advice was often disjointed, with product sales a

through its School of Financial Planning Law. Founded in 2001, the School offered South Africa’s first (and for a long time the only) Postgraduate Diploma in Financial Planning, which is an accredited qualification needed to obtain the coveted Certified Financial Planner (CFP®) designation. This programme, aligned with international standards, equips financial advisors with the knowledge and skills to provide holistic financial planning services. The UFS's contribution wasn't limited to academics. By producing graduates who prioritise client needs, the School helps to shape a new generation of ethical and competent financial planners, ultimately benefiting the financial well-being of South Africans.

Director Prof Liezel Alsemgeest

Biography

Professor Liezel Alsemgeest is an associate professor at the University of the Free State and the Director of the School of Financial Planning Law (SFPL). As an NRF-rated researcher, her focus is on communication in personal finance and financial behaviour – areas crucial for navigating the complexities of financial planning. She is a Certified Financial Planner (CFP®) and also the Programme Director for Specialised Postgraduate Diplomas at the SFPL.

Explain in more detail the importance of the CFP® designation and the role of the SFPL.

Earning the CFP® designation signifies a rigorous educational journey. Programmes delve deep into various financial planning areas, from risk management and retirement planning to tax strategies and estate planning. This comprehensive knowledge base ensures that CFP® professionals have the tools to tackle even the most intricate financial situations. Financial guidance is only as valuable as the trust behind it. CFP® professionals adhere to a strict code of ethics established by the FPI. The financial world is constantly evolving and CFP® professionals stay ahead of the curve through continuous professional development. As the biggest educational provider in South Africa, the SFPL plays a critical part in upholding high ethical standards.

Are your programmes suitable for employed individuals?

The SFPL’s distance-learning programmes were developed specifically to cater to working professionals. The flexible format allows a student to study around job demands and family life. Having access to course materials online enables students to study whenever it best suits their schedule. Additionally, the SFPL programmes offer a personalised learning approach which ensures the student receives the guidance they need to excel. Assessments are conducted online, so a student can be anywhere in the world and complete the qualification.

What are the most popular courses overall?

Has there been any shift in recent years?

The Postgraduate Diploma in Financial Planning is the flagship programme and takes centre stage with the highest volume of

students every year. This comprehensive programme equips aspiring financial advisors with the knowledge and skills necessary to navigate the complex world of financial planning. Structured around the CFP® curriculum, it delves into areas like risk management, retirement planning, tax optimisation and estate planning and will soon include behavioural finance.

The SFPL also offers specialised postgraduate diplomas in Estate Planning and Investment Planning. These programmes cater to individuals seeking in-depth knowledge in specific financial areas.

On the undergraduate level, the Advanced Diploma in Estate and Trust Administration is experiencing a surge in popularity as it equips individuals with the expertise to handle complex fiduciary matters.

At what NQF level are the various courses?

The Postgraduate Diplomas in Financial Planning, Estate Planning and Investment Planning are all on NQF level 8. The Advanced Diploma in Estate and Trust Administration is an undergraduate qualification on NQF level 7.

Do you have some students who are already financial planners and are looking to add to their qualifications in specific areas?

The SFPL understands the needs of working professionals in the financial industry. With approximately 99% of our students employed, our programmes are specifically designed for distance learning. This ensures that students can gain valuable financial planning expertise without compromising their current work schedule or family commitments.

The SFPL offers not just accredited qualifications but also assists students in focused professional development. Alongside our acclaimed postgraduate diplomas, the SFPL offers industry-relevant short courses designed to enhance a student’s existing skillset.

Whether someone is looking to delve into the world of financial coaching or gain expertise in employee benefits, the SFPL’s short courses provide individuals with the knowledge and practical skills needed to excel. These focused programmes are perfect for busy professionals, complementing their current qualifications and allowing them to specialise.

The flexible nature of these short courses, delivered online, ensures minimal disruption to work schedules. This makes them ideal for continuous learning and keeping expertise at the forefront of the ever-evolving financial landscape.

The Advanced Diploma in Estate and Trust Administration is accredited by two organisations. Tell us more about it.

The Advanced Diploma in Estate and Trust Administration is offered by the SFPL, the only institution in South Africa that is accredited with two well-respected organisations:

The Fiduciary Institute of Southern Africa (FISA): This is a nonprofit organisation that focuses on fiduciary practitioners such as estate planners and trust administrators. FISA sets standards for the profession, provides education for consumers and offers

continuing professional development for its members. This accreditation signifies that the programme meets the educational requirements for achieving the prestigious FPSA® (Fiduciary Practitioner of South Africa) designation.

Society of Trust and Estate Practitioners (STEP): STEP is a global professional association dedicated to upholding high standards in the trust and estate management profession. It focuses on educating and maintaining rigorous professional qualifications for members. The Advanced Diploma in Estate and Trust Administration is the only qualification in South Africa that is considered sufficient as the education portion to become a STEP member. The SFPL is very proud of this achievement to be the only education provider in South Africa. TEPs are recognised internationally as experts in estate and trust administration. This designation grants access to a global network of over 20 000 professionals.

What are notable achievements by the SFPL in the last couple of years?

The SFPL has a track record of excellence, boasting several notable achievements in recent years:

• Top performers: SFPL alumni consistently rank among the top five achievers in the FPI Board exam, year after year. This impressive record demonstrates the effectiveness of the SFPL's curriculum in preparing students for success.

• Award-winning professionals: For several years running, SFPL graduates have claimed the prestigious FPI Financial Planner of the Year award. This recognition highlights the exceptional skills and ethical practices instilled in SFPL alumni, solidifying their reputation as leaders in the field.

• National recognition: The Advanced Diploma in Estate and Trust Administration is the only qualification that FISA recognises as the academic requirement for attaining the FPSA® designation.

• International recognition: The SFPL offers the only accredited qualification in South Africa that allows graduates to become international STEP members. This unique qualification positions SFPL graduates for success in international estate planning.

• Pioneering research: SFPL academics are at the forefront of financial planning research. Their groundbreaking publication, Perspectives in Financial Therapy, is the first of its kind in South Africa, exploring the intersection of financial planning and emotional well-being and demonstrating the School's commitment to a holistic approach to financial guidance. These achievements showcase the SFPL's dedication to excellence in financial planning education. By producing top-performing graduates, award-winning professionals and contributing to groundbreaking research, the SFPL continues to shape the future of financial planning in South Africa.

Empowering progress through diversity

Gender inclusivity needs to be fostered in South Africa's energy transition, writes

Maagatha Kalavadakken, Financial and Market Analyst for Wärtsilä Energy in Southern Africa.

The energy sector is the cornerstone of any nation's development. The link between energy and human progress is undeniable as it powers our homes, industries and aspirations.

As South Africa strives to achieve its economic and sustainable growth goals, one crucial element cannot be overlooked: the active and meaningful participation of women. Globally, women account for only 16% of the traditional energy sector according to the International Energy Agency (IEA) and numbers are equally marginal in South Africa. Nonetheless, women are now emerging as key drivers of change, innovation and progress within the sector. Recognising and harnessing their potential is not just a matter of gender equality, it's a strategic imperative for a brighter energy future. As a woman working at Wärtsilä, a global leader in energy solutions, I have witnessed firsthand the complex challenges and opportunities for gender diversity in the industry.

South Africa's women and the energy transition: a critical perspective

Despite the just energy transition's focus on addressing job losses when coal plants retire, gender equality has often been overlooked. Achieving full gender equality in the energy sector remains a complex challenge linked to education, societal norms and corporate policies. But diversity won’t happen by itself.

Maagatha Kalavadakken, Financial and Market Analyst, Wärtsilä Energy.

Companies and industries play an important role in tackling the stereotypes and promoting gender equality. In 2023 at Wärtsilä, we celebrated women during International Women’s Day in March, with our event “Innovating sustainable societies and metaverse”, showing how women are making a difference and continue to do so.

Energy poverty remains a significant challenge in South Africa, particularly in rural and under-served communities. Women are often at the forefront of these communities, managing households and contributing to their families' livelihoods. Their involvement in the energy sector can provide essential insights into the unique energy needs of these communities. Women-centred initiatives can lead to the development of energy solutions that are not only affordable but also tailored to the specific requirements of these populations. By engaging women, South Africa can take meaningful steps towards bridging the energy access gap and improving overall quality of life. Wärtsilä recognises that addressing energy poverty requires more than just technical innovation; it necessitates a diverse and inclusive workforce. When I joined Wärtsilä, I was drawn to the company's commitment to providing sustainable energy solutions while nurturing an environment where women can thrive.

Representation matters, especially in sectors where women have historically been marginalised. When women see other women occupying leadership positions in the energy sector, it sends a powerful message that their aspirations are attainable.

The journey towards gender equality and women's empowerment in the energy sector requires collaborative efforts from government, businesses, educational institutions and civil society organisations. It calls for the creation of mentorship programmes, scholarships and training opportunities specifically tailored to women in energy. Furthermore, businesses should embrace policies that promote diversity and inclusion, creating an environment where women can thrive and contribute their best.

Nevertheless, I remain hopeful, knowing that Wärtsilä's commitment to empowering women extends beyond mere words; it is demonstrated through action, unwavering commitment and a belief in the power of diversity. Wärtsilä is already leading the way with a university programme that trains both men and women, aiming to create a more inclusive future. Through various Diversity and Inclusion (D&I) programmes, Wärtsilä actively strives to increase female representation at all levels. Special attention is given to hiring, aiming for gender equity and appreciating the

unique perspectives and creativity that women bring. As living proof of this commitment, I have personally experienced the support and opportunities Wärtsilä provides.

My empowering journey with Wärtsilä

Working as a financial analyst in a traditionally male-dominated industry was not without its challenges. However, joining Wärtsilä marked a turning point in my career. The company's strong focus on advancing women resonated with me deeply. From mentoring to professional development opportunities, Wärtsilä has nurtured my growth. My work involves understanding energy markets in Africa and Europe, proposing viable solutions through

financial modelling and finding the best fit for our customers. This has deepened our understanding of power systems in different regions, allowing us to contribute meaningfully to their development. South Africa stands at a pivotal moment in its energy evolution and women are poised to play a transformative role. By recognising the importance of women in the energy sector and actively supporting their participation, South Africa can tap into a wellspring of creativity, innovation and leadership that will drive its sustainable energy future. Gender equality is not just a moral imperative; it's an essential step towards securing a prosperous, inclusive and vibrant energy sector that benefits all South Africans.

What role will women play as South Africa transitions to cleaner energy solutions?

Credit: Wärtsilä

About Wärtsilä Energy

Wärtsilä Energy leads the transition towards a 100% renewable-energy future. We help our customers in decarbonisation by developing market-leading technologies. These cover future-fuel-enabled balancing-power plants, hybrid solutions, energy storage and optimisation technology, including the GEMS energy-management platform. Wärtsilä Energy’s lifecycle services are designed to increase efficiency, promote reliability and guarantee operational performance. Our track record comprises 76GW of power-plant capacity and 110 energy storage systems delivered to 180 countries around the world.

https://www.wartsila.com/energy

About Wärtsilä

Wärtsilä is a global leader in innovative technologies and lifecycle solutions for the marine and energy markets. We emphasise innovation in sustainable technology and services to help our customers continuously improve their environmental and economic performance. Our dedicated and passionate team of 17 000 professionals in more than 200 locations in 68 countries shape the decarbonisation transformation of our industries across the globe. In 2021, Wärtsilä’s net sales totalled EUR4.8-billion. Wärtsilä is listed on Nasdaq Helsinki.

www.wartsila.com

Steinmüller Africa’s induction bending machine at work, bending thick-walled piping.

Steinmüller Africa’s specialised induction bending solutions benefit industries across South Africa

Steinmüller Africa, a specialist in the engineering and fabrication of high-pressure components, offers exclusive induction bending solutions to the South African market.

Steinmüller Africa’s pride – The Cojafex PB 850 Induction Bending Machine

Steinmüller has manufacturing capacity for two-million productive hours a year at its Pretoria facility and has highly skilled engineers on hand to develop, manufacture, install or retrofit components. Its manufacturing facility contains specialised pieces of equipment, including a specialised induction bending machine called the Cojafex PB 850, capable of bending pipes between 48.3 mm (outside diameter) and 850 mm (outside diameter) with a wall thickness up to 100 mm.

The Cojafex PB 850 Induction Bending Machine Is a oneof-a-kind induction bending machine, enabling paper and pulp, power, petrochemical and mining plants to source custom bends locally, as well as large radius, multiple or complex bends – all with quick turnaround times.

Induction bending is the process whereby a straight pipe is precision-bent by a specially-engineered machine. The front of the pipe protrudes through an induction coil and is clamped into position. The induction coil is heated to a specified temperature and then the arm of the machine moves in a predetermined radius, pushing the pipe through the coil. “This is programmed into the machine upfront and is an automated process,” explains Lee Chapman, Divisional Manager – Piping, Steinmüller Africa. The automation and machine control renders a precise and top-quality pipe bend. “Our Cojafex machine is capable of bending pipes between 48.3 OD and 850 OD with a wall thickness up to 100 mm. It can create bends up to 180 degrees,” adds Chapman.

Induction bending is ideal “when standard size bends are not available and custom or large radius bends are required,” states Chapman. Since it can create complex (multiple) bends without the need for welding, induction bending guarantees pipe system integrity and a reduced maintenance requirement, making it especially wellsuited to high pressure (HP) piping, steam piping and industrial piping systems. This also means it delivers a relatively low cost of ownership. In addition, if multiple bends are done at once then there is a cost saving during the erection and ongoing maintenance phases of a plant’s operation.

The benefit of partnering with Steinmüller is that it offers complementary services in addition to induction bending. “There is no need to move the component between different suppliers as we are able to do all the necessary

Our Cojafex machine is capable of bending pipes between 48.3 OD and 850 OD with a wall thickness up to 100 mm. It can create bends up to 180 degrees.

bending, welding and heat treatment in-house,” says Chapman. Using its Schlager gas furnace, Steinmüller conducts post bend heat treatment (PBHT), which ensures the pipe’s mechanical properties are restored following the bending process. In addition, Steinmüller specialises in various welding processes, enabling custom welding onto pipes.

A commitment to safety and quality, backed by international expertise, has made Steinmüller Africa the fabricator of choice for some of South Africa’s largest Power, Paper and Petrochemical companies.

“Steinmüller has been carrying out induction bending for over ten years at its facility in Pretoria and has a number of qualified bending procedures to both EN and ASME standards for safety and quality. Our in-house quality management system ensures that our products meet all the necessary international standards,” adds Chapman.

Steinmüller Africa is a Bilfinger Power Africa company, and is a BBEE Level 1 company. For over six decades, Steinmüller has provided comprehensive solutions for steam generating plants, from design through to commissioning and after-service maintenance.

For more information, contact Jaco Gerber – Specialist: Outage Execution at Steinmüller Africa: Tel: +27 (0)87 759 0849

Email: jaco.gerber@bilfinger.com

www.steinmuller.bilfinger.com

If a mining company tweaks a technology to suit its operations, who owns the IP?

Opportunity spoke with Hogan Lovells partner Deepa Vallabh at the Investing in African Mining Indaba about the legal issues that arise when new technologies are used – and adapted – on a mine. Mining companies also have to find the right balance between efficiency and complying with social and environment guidelines.

What is your title at Hogan Lovells?

Biography

Deepa Vallabh has over 22 years’ experience in corporate and commercial practice and has in-depth knowledge in a number of legal areas, including mergers and acquisitions (both domestic and cross-border), capital market transactions, BEE transactions, corporate reorganisations and restructurings with a particular focus on cross-border M&A transactions into Africa. Deepa has experience in a variety of sectors which includes mining and resources, technology, telecommunications, media and communications, FMCG, insurance, agriculture, manufacturing and private equity.

Deepa Vallabh, partner at Hogan Lovells.

I am a partner in the corporate and commercial Mergers and Acquisitions (M&A) department.

Why is the convergence of technology and mining presenting legal challenges?

As technology progresses, a sector like mining can’t ignore the developments that are happening in technology and the ability which is being created for them to create efficiencies in their operations. There is a convergence between the technological sectors and the traditional mining sector. We ask questions about the legal intricacies surrounding technological innovations in

mining operations and how they can be navigated. In the legal landscape, you’ve got two very different sectors which are regulated by very different pieces of law. When you integrate that effectively, mining companies have to become au fait with the rights and challenges around technology.

Would that include things like copyright on technology? Correct. Depending on the kind of technology you are dealing with, it is external or internal. If its external, you generally have a supplier that has come up with a product and has created some technological or technical efficiencies which the mining operator can employ. Then the legal regime is one of a licensing

arrangement to use the technology or to explore the technology and then a fee is payable. In those scenarios the copyright sits with the licensor, which is the entity which has either developed it or has the ability to license that. The originator. They hold the intellectual property (IP) and they will have the registered rights to the IP. Where it becomes really interesting is when you have a piece of technology that needs to be adapted for a specific mining operation. If a certain technology measures something or works out where the resource is sitting, that technology might have to be adapted depending on the minerals you’re looking for and depending on the kinds of operations.

Would the climate be a variable?

Or even the climate, whether it is an underground operation or a surface operation. Often mining companies will engage with these technology companies to try to adapt the technology and then it becomes interesting from a legal perspective: who owns the amended technology or software?

So what sort of law do you go to there?

IP law has some basic principles. The registered owner owns the IP and they have a title and they have the ability to defend the title to that particular IP. However, the intricacies of these developments is in the commercial rig agreements that you put together so you can govern contractually how that IP is actually shared and if it

is shared. This then depends on the rights of the licensor versus the licensee, the strength of the licensor versus the licensee. For example a licensor like Microsoft is generally not going to be very amenable to giving you the IP even if they are developing a bespoke product for you, whereas a small technology player may feel they want the business.

They want the next contract?

They want the next contract, so they would maybe be more amendable on sharing the ownership structure of the IP. Those issues become very interesting. The additional challenge also is that sometimes you enter into these agreements and you put something in place for the licence but operationally when you are on the ground and you start adjusting the IP and nobody regulates this… it wasn’t in the contract, someone will say. Legal challenges arise from that if there is a dispute scenario. These are some of the things that mining companies and technology companies working with mining companies have to start thinking about.

And are you trying to help both parties navigate that before it becomes a problem?

Absolutely. There are certain things that we will ask upfront before the commencement of the negotiations or the drafting of the document. What is this IP about? Will it be developed? Is it changeable and who owns the developed IP? A lot of technology relating to what a mining company would be interested in relates to the IP and the adapting of the IP.

Is our legislation keeping up or is it still evolving with this merging of the two sectors?

With respect to IP legislation per se there is obviously legislation that protects the ownership of the IP, the rights of parties who have developed IP. You can register your IP and you can create a patent around your IP, you can have natural copyright in things that you have created. The IP laws are not new, but they haven’t been adapted to deal with issues like who owns co-mingled IP for example. By that I mean IP that’s been developed collectively.

New technology is constantly being introduced to mining operations.

Nearly half a million South Africans are employed in the mining sector.

There is a body of jurisprudence around this and there’s a significant amount of case law that guides us but a lot depends on how you contractually create the framework.

BALANCING TECHNOLOGY AND EMPLOYMENT

Is there not a danger that new technologies will reduce employment?

There are other considerations that are really relevant in our South African market and in the context of an African market. Where you have efficiency technologies being introduced, mining companies have to balance the need to invest in these technologies with the need to balance the ability to keep people employed in a sector in an economy where jobs are so relevant. It is a big issue. The mining sector contributes a significant amount to the South African GDP and a significant portion of that mining sector is labour intensive. There is a significant population in South Africa that relies on that employment. I think the mining industry employs something like a half a million people across South Africa and the same issue applies in other African countries. Every developing country has the need to ensure that they are creating as many jobs as possible.

Is Hogan Lovells also in the business of advising on that kind of thing?

We would be able to advise on the employment issues around these aspects. From a legal perspective we can navigate these issues depending on the client, but this is more a commercial consideration for mining companies who are looking to invest in technology or put capex into technology. They’ve got to balance the need to keep people employed versus the need to be more technologically efficient.

In some markets, that need to keep people employed is actually legislated, isn’t it?

Correct and our market is one of them. You also have to think about the fact that a significant proportion of the workforce in the mining industry is unionised. It is a massive drive for government to ensure that these jobs are available and that they are decent paying jobs and that the health and safety of workers is being taken care of. Mining companies have a slew of legislation and a raft of requirements to deal with in terms of ensuring that their people are safe because there are safety measures, health protocols and standards that are applied to wages and living conditions. These are all covered in our mining legislation and in our labour relations act. You have to balance that with the need to be commercially profitable as a mining company; it may well be profitable to invest a chunk of capital in a machine that’s going to do the work of what a thousand employees are doing; it’s more efficient, you don’t have to pay medical aid, you don’t have to give severance, you don’t have to give housing. Balancing those needs in our market has to be taken into account, and that’s the challenge for most African governments and most African mining companies.

Do you have periodic workshops with senior mining executives that you might be consulting with?

We do and it depends on what’s topical at the time and what is relevant to our clients. We have a very sophisticated mining industry so these issues are not alien to the executive teams of these mining companies. They are constantly balancing that need to increase stakeholder value. In terms of our legislation, we’re supposed to be looking at the benefit for stakeholder community and that stakeholder community includes employees, the communities within which you mine, your shareholders, of course, and it also includes the environment. The mining companies have a responsibility to look at these issues more holistically than just economically.

And you’re there to guide them, as it were? Yes, we are there to guide them.

The mining sector must balance investment in technology with the social imperative to employ people.

Ithuba Valves and Industrial Supplies

Designing, making, fixing and installing high-quality waterworks valves.

Ithuba Valves and Industrial Supplies is the only Level 2 BBBEE company that specialises in the design, manufacturing, refurbishment, installation, removal and supply of waterworks valves. Valves are manufactured to the customer's specification at our Alberton facility, thus creating and maintaining employment opportunities for South Africans. Ithuba Valves is a proud supplier of local valves to all state-owned companies and we comply with all their specifications. Clients include the Department of Water and Sanitation, Eskom, Rand Water, Johannesburg Water and Umgeni Water. We are proud to have played a role in designing and installing a complex wedge-gate valve in the Mohale Tunnel, part of the Lesotho Highlands Water Project. Our management and technical teams surpassed the client’s expectations on this tough project, as the work involved descending 96m underground in a shaft.

Background

Ithuba Valves and Industrial Supplies cc was established in 2000 and commenced trading in August 2003, quickly earning a fine reputation as a refurbishment

company in the valve industry. This resulted in the successful completion of various large contracts, including phase one and two of the demothballing of Camden Power Station and phase one of Grootvlei Power Station. With the acquisition of a manufacturing facility in 2006, Ithuba Valves stepped up its strategy of becoming South Africa's first fully black-owned valve manufacturer. Further acquisitions have seen the company expand its range of designs, drawings and patterns which means that Ithuba Valves now has a wide range of products to sell to the waterworks industry.

Product range

Ithuba Valves manufactures waterworks valves ranging from 80mm to 3 000mm, with working pressure ranging from 10 bars up to 100 bars.

• Butterfly valves, double flanged

• Butterfly valves, wafer type

• Rubber-lined Butterfly valves

• Metal-seated Butterfly valves

• Wedge-gate valves

• Sleeve valves

• Non-return valves, double flanged (single door and multi door)

• Plunger valves

• Spherical valves

Ithuba Valves has developed a new Butterfly valve with ranges from 1 000mm to 2 800mm (PHOENIX Butterfly Valve). Its features include a dish disk that reduces the weight of the valve by 20% and the valve is able to handle seven to 10 litres of fluid a second.

Mission statement

• Focuses on being a product leader in waterworks.

• Passionate about manufacturing highquality products and on-time delivery for our customers.

• Educating and creating awareness about quality to all our employees.

• Strive to satisfy our internal and external stakeholders.

Employment equity policy

Ithuba Valves distances itself from any form of discrimination and commits itself to the promotion and achievement of equal opportunity and fair treatment in the work environment.

Contact details

8 Basalt Street, Alrode Ext 7, Alberton Tel: +27 11 864 2582

Email: sales@ithubavalves.co.za

Website: www.ithubavalves.co.za

Tshepo Mabona, CEO

Tech trends for ‘24

Small business owners are embracing the cloud, according to Xero’s State of Small Business report. James Bergin, Executive GM, Technology Strategy and Integration at Xero, describes the five top tech trends likely to have a big impact on small business.

The pace of technological change is accelerating and it's reshaping just about every aspect of how we live, work and play. While Xero’s Future Focus research reveals small businesses are more optimistic and even intrigued about the potential of emerging technologies than focussing on doom and gloom, many wish there was more education and resources to navigate a rapidly changing world. With small business owners looking to make technology a digital stepping stone for their businesses’ success in 2024, Xero’s South African State of Small Business (SOSB) report suggests that many small-business owners are embracing the cloud, with 69% using cloud-based technology in their business because of the flexibility it offers to work from anywhere and its ability to streamline and improve operations and collaborate with their advisors and financial processes. The report further revealed that small-business owners are willing to invest in technology skills, with 86% investing in online or in-person training courses to increase knowledge and improve tech skills. To help small businesses and their advisors plan ahead, it is essential to separate the hype from reality — to uncover the top five technology trends that may impact the small business landscape in 2024.

Trend #1: The AI-augmented creativity boom 2023 saw generative AI burst into the mainstream, and while language models are not necessarily new to those within the tech industry the interactivity and accessibility of AI through tools like ChatGPT signalled the biggest leap in the technology’s capabilities, helping businesses to create content easier and faster. In 2024, we could well see a “creativity boom” where AI models go beyond statistical similarity and come up with new designs or products that are far better than the ones that exist today. Continuing in its ability to augment (rather than replace) human intelligence, AI could truly become the co-pilot for business owners, enabling them to set up the requirements such as manufacturing processes, helping with the automation and reporting of certain financial and administrative tasks and filtering a myriad of new ideas. The drawbacks around misinformation, copyright and bias will also need to be worked through in 2024, as the push for the commercially safe, transparent and ethical use of these AI systems comes to a head in jurisdictions around the world.

Trend #2: The rise of the augmented, conversational UI

The promise of conversational user interface has been around for a while with Siri and Alexa, but it’s always been functional and instructional, never truly conversational. ChatGPT is not a better search engine but it is becoming one of the first real, usable and intelligible chatbots. In 2024, large language model-powered tools like ChatGPT will continue to revolutionise human-computer interaction through the rise of conversational chatbots that are able to interact with customers. The ability for chatbots to have real-time conversations in any language to customers 24/7 and perform certain tasks at their request will unlock new opportunities for small businesses looking to handle customer inquiries or expand into new markets.

James Bergin

Trend

#3: The metaverse finds a new source

of power

The idea of living and working entirely in a virtual world as so often shown in the movies still feels fanciful, even comical. Yet advances in 2023 in the technologies that underpin the concept of a metaverse, particularly in augmented and virtual reality, and significant investment by large technology companies, has brought some aspects of this ambitious vision closer to reality. Will it be the breakthrough technology of 2024? It seems unlikely to reach full maturity, but a version of the metaverse will be the next iteration of the Internet, providing immersive, blended and connected experiences for everything from entertainment to education to virtual community building, and that it will introduce new concepts of ownership of digital assets. Many of these concepts will continue to evolve and emerge in 2024, with more small businesses innovating and exploring this space as some started to do in 2023.

Trend #5: The rise of the super ecosystem, powered by connectivity

Connectivity between new and traditional players within the payments ecosystem is bringing in a new era of digital payment experiences for small businesses. Today, it allows the real-time validation of e-invoices to help small businesses send bills over the Internet and get paid faster. Xero’s research reveals that late payments cost small businesses time and resources, with 92% of SMEs revealing that chasing down late payments takes them on average one to two months, stressing the fact that more needs to be done to reduce the burden of late payments.

A super ecosystem, powered by connectivity, will ensure the seamless transmission of data between banks and third-party providers to enable instant access to financial information and services, thus reducing the burden of late payments so that the country can effectively unlock the potential of small businesses.

Trend #4: Carbon accounting the next frontier for compliance

We are well into the critical decade of climate action and pressure will begin to mount on governments and industries to reduce their carbon emissions to meet the Intergovernmental Panel on Climate Change’s (IPCC) 2030 deadline. At the same time, the release of the sustainability standards by the International Sustainability Standards Board (ISSB) could see reporting on carbon emissions no longer be optional for businesses. The ISSB standards could very well bring in a new era of compliance and become the basis of accounting standards in 2024. To avoid being locked out of corporate supply chains or providing inaccurate and misleading information on environmental or sustainability practices, small businesses will need to ensure they are accurately calculating and tracking their carbon emissions each year. The integration of carbon-accounting software into existing accounting platforms will see carbon accounting become an extension of financial accounting and reporting practices for small businesses.

In 2024, global platforms like Xero, Apple, Amazon, Google and Microsoft will continue to make their products work better together. Why? Because people are tired of using lots of different apps for different things. They want everything in one place, working smoothly together. Rather than the rise of the “super-app”, we’ll see the power of the “super ecosystem”; the interconnectedness of financial services that make it easier to pay bills, transfer money and manage finances together in one spot.

Small steps to an exciting future

While some of these tech trends might take years, or decades even, to realise the full scope of their impact on the world, the first steps into that future are being taken now. In 2024, it would be a good idea for small businesses and their advisors to continue to keep an eye on developments in these five trends, as they will no doubt play a major role in shaping the future themselves.

A surge in hybrid and remote work is fuelling demand for exceptional venues

Nine things to look for when choosing a conference venue at a time when coming together is even more of a special occasion than it used to be, pre-Covid. Premier Hotels & Resorts lays out the most important factors to consider when booking a conference or exhibition venue that ticks all the new boxes.

In the wake of the remarkable shift towards hybrid and remote work arrangements across the world, the quest for extraordinary conference venues has reached new heights, with a focus on fostering connections among colleagues and stimulating surroundings taking centre stage.

The meetings, incentives, conferences and exhibitions (MICE) sector has changed in the aftermath of Covid and organisers need to be aware of the new demands that are being made of them. Amid this evolution, the significance of inspiring surroundings has taken centre stage, as companies seek innovative alternatives to the conventional office setting. The need for conference facilities that offer seamless, stress-free and one-of-a-kind in-person meetings has become paramount. A stand-out player in the realm of being able to host exceptional conference and corporate events is Premier Hotels & Resorts, which has a presence in some of South Africa’s most sought-after places. Renowned regions such as Drakensberg, Kruger National Park, OR Tambo and East London have emerged as alluring choices for conferences owing to their picturesque landscapes and well-equipped conference facilities.

Here’s what to look for when selecting a conference venue:

Indoor vs outdoor opportunities

The dynamics of conferences have shifted dramatically since the Covid-19 pandemic. Companies are now in search of venues that

Flexibility

The trend has shifted from large theatre-style settings to smaller, more intimate group sessions. Clients increasingly demand versatile seating arrangements and breakout areas tailored to the specific needs of each conference or team-building activity. Adaptable scheduling and time-keeping also plays a crucial role in accommodating the changing requirements of conferences.

Equipment

The functionality of technology is now paramount. A robust audio-visual setup and high-speed uninterrupted WiFi are vital. Smart TVs, projectors, audio setups, connectivity cables and ample plug points are must-haves. Conference units must host built-in microphones and video cameras to facilitate seamless connectivity through platforms like Zoom, Skype and Microsoft Teams. Tech professionals must be on standby to address any troubleshooting issues that may arise.

Culinary

experiences

Nutritious fare is vital to maintaining focus and productivity throughout a conference which is why standard menus are falling away. This has led chefs to move towards offering a pickand-choose menu of superior culinary offerings that cater to diverse dietary requirements. Incorporating restaurants, gourmet catering services and wine tastings into conference programmes can enhance attendees’ experience, providing an opportunity to savour the region’s delightful cuisine and sample world-class wines during breaks or networking sessions.

Smaller and flexible meeting rooms, like this one at Premier Hotel

The Winkler in Mpumalanga, are becoming more popular with conference planners.

Unique and captivating settings

When it comes to a venue’s natural beauty this is an easy tick-box. Majestic mountain ranges and picturesque landscapes create a captivating backdrop for conferences. A venue’s layout and ambience has a significant impact on a conference’s success. Research indicates a notable correlation between workplace ambience, employee performance and productivity. Adequate meeting rooms that can accommodate the conference’s size and requirements are vital. Venues that provide ample natural light and fresh air foster collaboration, creating a happier and more

Team-building activities

In addition to the allure of exclusive conference venues and their amenities, many venues offer a range of team-building activities that can be seamlessly integrated into conference schedules. These experiences foster camaraderie, encourage collaboration and provide memorable moments for conference attendees.

The “Bleisure” trend

Most conference venues are typically located in proximity to other tourist attractions and activities such as wildlife reserves, golf courses, hiking trails or historical landmarks. These allow conference attendees to combine business with leisure, providing opportunities for relaxation and exploration during their stay and enhancing the overall conference experience.

On-site accommodation

For multi-day conferences, on-site accommodation is a significant advantage. Premier Hotels & Resorts offers preferential rates for conference attendees, providing rooms and suites equipped with modern amenities such as designated workspaces and complimentary high-speed WiFi.

Location

Choosing a conference venue with safe and easy access to public transportation, along with nearby quality accommodation, is essential for convenience. All Premier Hotels locations are wellsuited for colleagues and teams travelling from near and far, offering high-end facilities for conducting business in absolute comfort. The combination of scenic beauty, unique event spaces, exceptional facilities, attentive service, culinary delights and immersive experiences have combined to make Premier Hotels & Resorts a popular choice as a conference destination.

About Premier Hotels

Premier Hotels & Resorts is one of South Africa’s leading independent hospitality groups, operating a portfolio of 24 properties. The award-winning hospitality company has over 30 years’ experience developing and managing hotels and conference centres, with a proven reputation for delivering superior results through forward-focused ingenuity and exceptional asset management. The range of properties within the portfolio offers comfortable accommodation and superb facilities as well as relaxed dining options, combined with convenient locations ideal to easily access the surrounding attractions or key sites of importance in the area.

For more information, visit www.premierhotels.co.za

The Premier Resort Sani Pass is located in the unique and captivating setting of the southern Drakensberg, easily fulfilling one of the most important criteria for a good modern conference venue.

Premier Hotel The Winkler at night.

South African business ranks infrastructure blackouts as biggest risk

The Allianz Risk Barometer 2024 asseses the top risks to business in South Africa. Critical infrastructure blackouts, cyber security and disruptions to business operations such as supply chains top the list of the concerns.

Cyber incidents such as ransomware attacks, data breaches and IT disruptions are the biggest worry for companies globally in 2024, according to the Allianz Risk Barometer. The closely interlinked peril of business interruption ranks second. Natural catastrophes (up from #6 to #3 year-on-year), fire, explosion (up from #9 to #6), and political risks and violence (up from #10 to #8) are the biggest risers in the latest compilation of the top global business risks, based on the insights of more than 3 000 risk management professionals.

Critical infrastructure blackouts top South Africa business risk for 2024

Critical infrastructure blackouts have emerged as the number one risk for businesses in South Africa for the second consecutive year, highlighting the severe impact of power outages and the failure of essential infrastructure such as ports, railways, roads on the economy and businesses. The closely interlinked peril of energy crisis has climbed to the fifth position, up from sixth place in 2023. Cyber incidents and business interruption continue to hold the second and third spots, respectively.

"South Africa's business community must remain vigilant in the face of critical infrastructure blackouts. The persistent threat of power outages and infrastructure failures poses significant challenges to businesses, disrupting supply chains and impacting the overall economy. The report underscores the urgent need for investment in infrastructure resilience and the development of contingency plans to mitigate the potential consequences of blackouts. By proactively addressing these risks, businesses can enhance their ability to withstand disruptions and ensure continuity of operations,” said Thusang Mahlangu, CEO of Allianz Commercial South Africa.

Allianz Commercial CEO Petros Papanikolaou comments on the findings: “The top risks and major risers in this year’s Allianz Risk Barometer reflect the big issues facing companies around the world right now – digitalisation, climate change and an uncertain geopolitical environment. Many of these risks are already hitting home, with extreme weather, ransomware attacks and regional conflicts expected to test the resilience of supply chains and business models further in 2024.

Brokers and customers of insurance companies should be aware and adjust their insurance covers accordingly.”

Large corporates, mid-size and smaller businesses are united by the same risk concerns – they are all mostly worried about cyber, business interruption and natural catastrophes. However, the resilience gap between large and smaller companies is widening, as risk awareness among larger organisations has grown since the pandemic with a notable drive to upgrade resilience, the report notes. Conversely, smaller businesses often lack the time and resources to identify and effectively prepare for a wider range of risk scenarios and, as a result, take longer to get the business back up and running after an unexpected incident.

Trends driving cyber activity in 2024

Cyber incidents (36% of overall responses) rank as the most important risk globally for the third year in a row – for the first time by a clear margin (5%). Cyber incidents retains #2 position in South Africa. It is the top peril in 17 countries and regions, including Nigeria, Uganda, Kenya, Mauritius, Africa and the Middle East, Germany, India, Japan, the UK and the US. A data breach is seen as the most concerning cyber threat for Allianz Risk Barometer respondents (59%) followed by attacks on critical infrastructure and physical assets (53%). The recent increase in ransomware attacks – 2023 saw a worrying resurgence in activity, with insurance claims activity up by more than 50% compared with 2022 – ranks third (53%).

“Cyber criminals are exploring ways to use new technologies such as generative artificial intelligence (AI) to automate and accelerate attacks, creating more effective malware and phishing. The growing number of incidents caused by poor cyber security, in mobile devices in particular, a shortage of millions of cyber security professionals, and the threat facing smaller companies because of their reliance on IT outsourcing are also expected to drive cyber activity in 2024,” explains Scott Sayce, Global Head of Cyber, Allianz Commercial.

Business interruption and natural catastrophes

Despite an easing of post-pandemic supply chain disruption in 2023, business interruption (31%) retains its position as

Regional differences and risk risers and fallers

Climate change (18%) may be a non-mover year-on-year at #7 but is among the top three business risks in countries such as Brazil, Greece, Italy, Turkey and Mexico. The report reveals that South Africa experienced a slight shift in risk perception, with climate change dropping from fourth to seventh spot in 2023. Physical damage to corporate assets from more frequent and severe extreme weather events are a key threat. The utility, energy and industrial sectors are among the most exposed. In addition, netzero transition risks and liability risks are expected to increase in future as companies invest in new, largely untested low-carbon technologies to transform their business models. Unsurprisingly, given ongoing conflicts in the Middle East and Ukraine and

tensions between China and the US, political risks and violence (14%) is up to #8 from #10. The risk moved down one place to #6 in South Africa. 2024 is also a super-election year, where as much as 50% of the world’s population could go to the polls, including in Ghana, Mauritius, Senegal, South Africa, India, Russia, the US and the UK. Dissatisfaction with the potential outcomes, coupled with general economic uncertainty, the high cost of living and growing disinformation fuelled by social media, means societal polarisation is expected to increase, triggering more social unrest in many countries. However, there is some hope among Allianz Risk Barometer respondents that 2024 could see the wild economic ups and down experienced since the Covid-19 shock settle down, resulting in macroeconomic developments (19%), falling to #5 from #3. Yet economic growth outlooks remain subdued; just over 2% globally in 2024, according to Allianz Research.

“But this lacklustre growth is a necessary evil: high inflation rates will finally be a thing of the past,” says Ludovic Subran, Chief Economist at Allianz. “This will give central banks some room to manoeuvre. Lower interest rates are likely in the second half of the year. Not a second too late, as stimulus cannot be expected from fiscal policy. A caveat is the considerable number of elections in 2024 and the risk of further upheavals depending on certain outcomes.” In a global context, the shortage of skilled workforce (12%) is seen as a lower risk than in 2023, dropping from #8 to #10. However, businesses in Central and Eastern Europe, the UK and Australia identify it as a top-five business risk. Given there is still record low unemployment in many countries around the globe, companies are looking to fill more jobs than there are people available to fill them. IT or data experts are seen as the most challenging to find, making this issue a critical aspect in the fight against cyber crime.

About Allianz Commercial

Source: Allianz Commercial. Figures represent how often a risk was selected as a percentage of all responses. Figures don’t add up to 100% as up to three risks could be selected.

Allianz Commercial is the centre of expertise and global line of Allianz Group for insuring mid-sized businesses, large enterprises and specialist risks. Customers include the world’s largest consumer brands, financial institutions and industry players, the global aviation and shipping industry as well as family-owned and medium-sized enterprises which are the backbone of the economy. Allianz also covers unique risks such as offshore wind parks, infrastructure projects or Hollywood film productions. Powered by the employees, financial strength and network of the world’s #1 insurance brand, as ranked by Interbrand, the company works together to help customers prepare for what’s ahead: they trust us to provide a wide range of traditional and alternative risk transfer solutions, outstanding risk consulting and multinational services, as well as seamless claims handling. The trade name Allianz Commercial brings together the large corporate insurance business of Allianz Global Corporate & Specialty (AGCS) and the commercial insurance business of national Allianz Property & Casualty entities serving mid-sized companies. We are present in over 200 countries and territories either through our own teams or the Allianz Group network and partners. In 2022, the integrated business of Allianz Commercial generated more than €19-billion gross premium globally.

Top 10 risks in South Africa

Economic data

The South African Chamber of Commerce and Industry (SACCI) regularly publishes economic data relating to business confidence and trade, the SACCI Business Confidence Index and the Trade Conditions Survey. As of 2023, SACCI has been collaborating with the Bureau of Market Research (BMR) in producing the Small Business Growth Index. For more statistics, see www.sacci.org.za and www.bmr.co.za

SACCI BUSINESS CONFIDENCE INDEX

Persistent business confidence

SACCI’s Business Confidence Index (BCI) remained steady at 114.7 in both February and March 2024. It has been on an upward trend since November, marking the highest level for the BCI since January 2018, which coincided with the election of new leadership within the ruling party. The month-on-month movement between February and March 2024 indicates a stabilisation of business confidence at an improved level. The notable short-term positive influences were observed in global trade and foreign tourist service-related activities. The enhanced BCI suggests a business environment that remains stable to positive, despite external factors and local economic challenges. This positive shift reflects businesses' adaptability to adverse circumstances, partly attributed to positive international economic and business relations involving South Africa. Despite South Africa’s foreign political relations, international economic and business engagements have significantly contributed to the country's economic well-being. Critical to achieving economic growth is maintaining adequate levels of capital stock and encouraging continued fixed investment. However, domestic savings in South Africa fall short of financing the necessary fixed investment to expand the capital stock. In 2023, domestic savings only accounted for 14% of GDP, leaving a considerable shortfall of 11% of GDP to achieve a 25% fixed investment to GDP ratio. This financing gap must be supplemented by foreign investment due to South Africa's inadequate domestic saving performance.

TRADE CONDITIONS SURVEY, SACCI 2024 starts off with tough trade conditions

The results from the February 2024 Survey of Trade Conditions by SACCI confirm a rough trade environment that began to deteriorate since October 2023. Although there was a minor improvement between January and February 2024, 69% of respondents still experienced trade conditions as negative. Seasonal factors did not play a significant role in the deterioration. All elements of trade improved in February 2024 though it was from the historic low base in January 2024. New orders also showed a slight improvement in February. Input cost slowed further with only 56% of respondents recording rising input costs. The SA Reserve Bank may possibly consider easing its monetary stance on interest rates. A number of trade activities are touched by the cumbersome trade conditions. Logistical problems at harbours and rail transport have limited merchandise global trade and contributed to the more difficult trade conditions. Tourist services are still in the recovery phase while new vehicle sales, although lower, appear to have stabilised. Lower interest rates could help to stabilise retail trade activity and enhance household spending. Electricity supply, however, continues to affect trade conditions.