SALGA Voice of Local Government Issue 41

UNPACKING THE ENERGY CRISIS

Create an enabling environment for your key economic contributors to achieve their respective sustainability targets

Provide an alternative source of power to consumers

Help develop a private power trading environment

Assist your municipality in reducing reliance on a single power supplier

Assist in implementing a billing framework to integrate with your municipal systems

Attract project investment into your municipality

Assist your municipality in avoiding infrastructural capacity upgrade costs

Generate revenue from the use of your municipal network

Help reduce costs through a potential reduction in your Notified Maximum Demand

Align

Unpacking the energy crisis

In this issue, we take a deep dive into South Africa’s energy crisis, which is not showing any sign of abating, despite the newly appointed Minister of Energy in the Presidency and a State of Disaster declared. With load-shedding levels 7 and 8 threatening to rear their ugly head, and the resultant chaos intermittent blackouts cause for households and businesses across the country, the situation needs emergency attention now.

We unpack what provinces are doing to address the load-shedding crisis, and we look at how the promising township economy is taking strain under the uncertainty of doing business without electricity. We ask if solar power in informal settlements is a realistic option and whether or not the government’s Just Energy Transition plan will actually achieve energy security.

Not everyone is hopeful that it will, but we must at least remain open to ideas for introducing modern and efficient energygeneration capabilities to the national grid.

The energy crisis aside, we also take a look at an impending water crisis and how this could very realistically be reversed. Professor Anthony Turton, a scientist and consultant specialising in water resource management as a strategic issue, shares that we can

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mitigate the water crisis if we change the paradigms around water management – he says we need to view water as an infinitely renewable resource, and that bringing together political will, science and capital, we can change the way it is managed quite successfully.

We take a closer look at the iLembe District and showcase a review of their work trying to create efficient water services to maintain and expand economic activity in the region and other parts of the provinces. We highlight service delivery wins around social housing projects in the City of Johannesburg, the reopening of an economic and tourism corridor in the township of Kayamandi in Stellenbosch and we showcase officials in the Thaba Chweu Local Municipality in Mpumalanga who have adopted a hands-on approach to facilitating the implementation of departmental service delivery programmes through the Action Friday programme. The provinces are hard at work in the face of many challenges, and while some are doing better than others – see our review of the municipal audits in this issue – we cannot but be hopeful that, with political will, better management at all levels of goverment and active citizenry, our country sits on the brink of success.

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Helping future-proof municipal services

Enpower Trading and George Municipality hosted a symposium on energy wheeling and trading as a means to provide a more sustainable energy future for communities

The recent national emphasis on encouraging and speeding up private energy investment and empowering independent power producers (IPPs) provides a positive outlook for South African mediumterm growth and investment. Cost-effective and sustainable energy is one of the most important contributors to economic development and is central to the growth of the South African economy. It has far-reaching impact on cultures, traditions, genders, incomes, community welfare, livelihoods, education, and available natural resources. Human wellbeing, poverty reduction, social inclusion and cohesion as well as equality are all intensively reliant on energy within the community space.

As municipalities embark on “future-proofing” their services; affordable, accessible, greener energy and improved local energy security are key priorities and benefits for local economic development. The integration of energy costing into community/business design and public service provision reduces or avoids capital costs, which, in turn, reduce local tax increases and encourage investment and business growth.

George Municipality, in partnership with private electricity wheeling and trading company Enpower Trading, hosted a symposium on energy wheeling and trading

in February 2023 at the Hawthorn Boutique Hotel in George. George Municipality is committed to implementing wheeling and trading as it endeavours to provide a more sustainable energy future for its community. The municipality expects to reduce its reliance on Eskom over time as privately procured electricity enters the system.

SHARING KNOWLEDGE

The symposium set out to share knowledge and experience of wheeling and trading in pursuit of unique and innovative energy supply solutions for the future energy market in South Africa. Enpower Trading’s board combines capability, experience and a proven track record in South Africa and internationally across energy trading, solar photovoltaic (PV) and IPP development, construction and operation, as well as project and trade finance. The event attracted key representatives from the energy sector, business and local municipalities across the Western Cape and nationwide. The first of a series of symposia

As municipalities embark on “future-proofing” their services; a ordable, accessible, greener energy and improved local energy security are key priorities and benefits for local economic development.

to be held across South Africa, the aim was to promote awareness and education around energy wheeling and trading and, ultimately, the transformation of the electricity supply industry.

Welcoming the attendees, the executive mayor of George, Alderman Leon van Wyk, joined by the municipality’s electrotechnical services team, said in his opening remarks that the unreliability of Eskom’s electricity supply and the increasing intensity of load shedding is causing huge disruption and damage to the economy. Van Wyk encouraged the forum, saying, “while we are encountering power supply disruption, we need to look to innovation to take us forward into new opportunities”. Referring to wheeling, van Wyk said that this is the “radical change” that will propel South Africa into a new era of trading in electricity, “creating generating facilities and transporting electricity to where it is needed”.

THE EXPERTS SHARED VALUABLE ADVICE

Speakers and panellists included:

• Quantitative Manager Philip van Niekerk from hosts Enpower Trading;

• Jeandre van Zyl from Solar Africa Energy;

• Gerjo Hoffman from Open Access Energy;

• Josh Dippenaar from Sustainable Energy Africa;

• Nhlanhla Ngidi from SALGA;

• Bernhard Teuteberg from DEDAT Western Cape; and

• Rashid Khan and Siham Salie-Abrahams from Ernst & Young.

Khan and Salie-Abrahams facilitated an interactive workshop on energy market design, centred around grid-centricity and municipal revenue enhancement alongside Enpower Trading’s Chief Operations Officer, Adam Griffin.

Philip van Niekerk explained that “electricity wheeling” is the buying and selling of generated power and includes the transportation of additional electricity produced by power producers to a buyer/ municipality using utility-owned power grids.

Enpower Trading sets out to transform the South African electricity supply industry by facilitating the transportation of electricity on behalf of IPPs to customers, businesses and government; a business model premised on ensuring municipalities operating the local distribution grids

retain their profits (surplus-neutral) while providing customers with cheaper and cleaner electricity.

Bongani Mandla, the municipality’s director of electrotechnical services, spoke of the current George Municipality wheeling pilot with Enpower Trading and its technology partner for the pilot. He said that the automation of the billing process has drastically increased productivity and further enables renewable energy-scale on the municipal grid. He said municipalities cannot refuse grid access and must prepare frameworks to ensure the grid is open and accessible. Incentivising private sector participation will accelerate the long-term reformation of South Africa’s energy sector, he added.

Nhlanhla Ngidi, head of energy and electricity distribution at SALGA, shared the following recommendations:

• The need for facilitation of engagement between municipalities and NERSA to clarify the process for the cost of supply studies and wheeling tariff approvals;

• Development of a standardised wheeling framework for municipalities;

• Investment in robust data management and software;

• Building capacity in municipal electricity department personnel; and

• A national programme to strengthen municipal networks.

James Beatty, Chief Executive Officer of Enpower Trading, concluded the day by reiterating the devastating effects the current power crisis is having on local communities and the economy, a crisis that requires creative solutions and enormous

ability and flexibility to change what has gone before. But he also emphasised the positive movement towards addressing “future-proofing” energy models in the private and public sectors.

Focusing on the positive contributions to the symposium, Beatty said he hoped the attendees would leave with a positive outlook and a better understanding of the energy wheeling and trading landscape, one in which South Africa moves into a future of competitive electricity supply with considerable private sector participation in new generation capacity.

Thanks to its skilled team and increasing demand for cleaner, more sustainable energy, Enpower Trading is well positioned to support market enablement as South Africa transitions to a more open and competitive energy sector.

Enpower Trading is committed to creating a long-term impact that drives local economic development and improves the competitiveness, strength, resilience and livelihoods of South Africans.

A further symposium will be held in Gauteng in May 2023.

Scan this QR code to go directly to the Enpower Trading website.

For more information: Fiona Martin 083 653 5145 www.enpowertading.co.za enpowertrading

Striving for the highest levels of quality, governance and service delivery

South Africa is in the grips of a major energy crisis, as the national electricity provider struggles with breakdowns and maintenance and provision challenges. Nowhere is this impact felt more heavily than at the municipal level, where ongoing bouts of load shedding are impacting municipalities’ ability to deliver effective services to citizens.

Educational and healthcare facilities have borne the worst of this brunt, although the numerous small entrepreneurial businesses that operate in the “township economy” have also suffered extensively.

Fortunately, at both municipal and provincial level, efforts are underway to mitigate the worst impacts of the crisis. From the implementation of solar power solutions to the unique exemption from National Treasury obtained by the City of Cape Town, which allows it to pay businesses and residents directly for selling their excess power back to the municipality, local government is hard at work to reduce the effects of load shedding.

It is also clear that we need to engage in a just energy transition (JET), and global assistance is required as we navigate this new energy future. SALGA is certainly open to discussions with the various international organisations we feel hold the key to an accelerated JET.

Of course, electricity isn’t our only challenge. We also have the makings of a serious water crisis, which is why, in

this issue, we look closely at this potential crisis and local government’s responses. These include future-proofing against potential risks. Turning the tide on this particular problem will require us to bring together political will, finance and science to change the way water is managed.

Another issue local government faces is that of poor-performing municipalities, and SALGA is not an entity to shy away from the challenges facing its members. We must identify why so many municipalities continue to receive qualified audits, and we need to seek advice from the best-performing municipalities to find a solution to this problem.

On a more positive note, we look at how high school teachers are making efforts to tackle poor literacy through school reading groups, and we shine a light on the business continuity plans for the family of municipalities within the iLembe district. This district is making serious efforts to find solutions to address the title and land administration challenges it faces, to overcome water sustainability issues, and to find answers to the questions around the disposal of electronic and electrical equipment waste in the district.

In other good news, it is worth noting that despite South Africa facing a likely recession, the waste reclamation sector is booming. This is, in large part, due to projects such as the successful Zonda Insila Programme in Mpumalanga.

Here, informal waste-pickers are empowered and given the resources to grow their fledgling enterprises into legitimate small, medium and micro enterprises. This approach focuses on creating jobs and instilling a sense of pride in the sector, inculcated around the hard work being done to divert waste from the country’s bursting landfills.

It’s Human Rights Day on 21 March, so as we celebrate it in our various ways, it should serve to remind us that the reason we commemorate it as Human Rights Day is as a reminder of our current democracy and the cost paid for our treasured human rights.

Finally, SALGA celebrated its 25th anniversary at the end of last year. As we move into 2023 – and the next 25 years of co-ordinating local government – we would like to recommit our organisation to its core aim – to strive for the highest levels of quality, governance and service delivery from our members.

Rio Nolutshungu, acting CEO of SALGA, shares what the organisation is focused on during this first quarter of the year

Rio Nolutshungu

Fortunately, at both municipal and provincial level, e orts are underway to mitigate the worst impacts of the crisis. From the implementation of solar power solutions to the unique exemption from National Treasury obtained by the City of Cape Town.

IN BRIEF

INDIGENT REGISTER

The Vuthela iLembe  Local Economic Development Support Programme is contributing to the improvement of the economic future of the iLembe municipal district by implementing a tracking system to acquire a credible indigent register. The register will help it budget accurately for revenue, free basic services and associated expenses.

The Vuthela Programme is presently aligning indigent policies and registers across the district. The next phase will involve the automation of these registers to produce a credible indigent register for each municipality. Already, while completing a consolidated indigent register, it has been found that while iLembe District Municipality should have 28 900 beneficiaries, only 2 000 were on record.

“The verification of the registers from municipalities also uncovered several discrepancies that included people who were in the service of the state, deceased or employed and those who do not meet the criteria in terms of the council’s policy for relief,” says Zama Soji, the public finance management expert at the Vuthela iLembe Local Economic Development Support Programme.

The indigent management system will be used by all municipalities in the district for uniform purposes. The Vuthela Programme will procure the system and donate it to iLembe District Municipality.

POWER OF WE

The

MILLION MEALS

of food that would otherwise have gone

SA Harvest, a South African food rescue and hunger relief organisation that has delivered the equivalent of 38.6 million meals in the last three years by rescuing 11.7 million kilograms of food that would otherwise have gone to waste, is on a mission to end hunger in the country. Alan Browde, CEO and founder of SA Harvest, says: “While some may consider it an impossible goal to end hunger, we believe that it is attainable, through a combined approach of delivering nutritious food on a charitable basis to the chronically hungry while at the same time addressing the systemic causes of hunger via collaboration between government, civil society and corporate South Africa, and an entrepreneurial approach to tackling the problem.”

38.6 32.7

PER CENT

In collaboration with Media, Information and Communication Technologies Sector Education and Training Authority (MICT SETA) in South Africa, UiPath is to develop the first national qualification in Robotic Process Automation (RPA) in the Europe, Middle East, and Africa region.

“We are hopeful that by means of this qualification, we will bridge the current shortage of skilled labour within the ICT and digital industries and ultimately, increase the youth employment rate in South Africa,” says Matome Madibana, CEO, MICT SETA. “It is important for all stakeholders to come together and ensure South Africa will have people with the skills to innovate and exploit fourth industrial revolution technologies. Perhaps, most importantly, it will provide those whose jobs face with the opportunity to be reskilled.”

SCENE ON THE SOCIALS

@GCIS_IRC

South Africa has adopted a 365-day approach to end #GenderBasedViolenceandFemicide (GBVF). This approach requires each and every one of us to take collective responsibility for ensuring safer communities for women and children. #EnoughIsEnough #StopG

The number of people in Africa –approximately one-fifth of the total population – who went hungry in 2021, an increase of 50 million people since 2019, according to United Nations’ figures. Based on current trends, this is projected to rise to 310 million by 2030.

DID YOU KNOW?

From the third quarter of 2022, more than four in every ten (44 per cent) of all South Africans between the ages of 15 and 34 years were not in employment, education or training (NEET).

WATER CRISIS

According to the World Health Organization (WHO), over two billion people live in water-stressed countries. This challenge is expected to be exacerbated in some regions because of climate change and population growth. Africa remains one of the most vulnerable continents with 418 million people lacking a basic level of drinking water service, 779 million lacking basic sanitation services (including 208 million who still practice open defecation), and 839 million still lacking basic hygiene services, according to UNICEF.

In South Africa, specifically, it is estimated that 70 million litres of treated, clean, drinkable water is lost daily as a result of the thousands upon thousands of leaks that characterise South Africa’s water piping system.

@IECSouthAfrica.

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Power of We is the strength of the municipal movement to break through, ensuring a future for humanity from the local sphere that guarantees public services and brings transformation by our communities.

SONA: Addressing the omission of individual infrastructure needs

Some of the government’s top responsibilities are to provide people with access to fresh, drinkable water and basic infrastructure. With this in mind, the construction industry hopes to see government release more detailed plans regarding projects and programmes to meet these needs in 2023.

By Roelof Van den Berg, CEO of

resident Cyril Ramaphosa highlighted water, sanitation, and infrastructure as key nation-building instruments during his recent 2023 State of the Nation Address (SoNA), indicating that government will emphasise and increasingly invest in structural development in the coming months.

For a nation to thrive, its people need to be healthy, have access to basic housing and be physically able to reach economic opportunities. For this, the government must provide people with access to adequate water and sewer reticulation systems, suitable housing and practical, functional roads.

This is, ostensibly, the path the president has placed government on for this year. But SoNA only gave us an overview of a few large-scale infrastructure projects currently in the pipeline and made no mention of the government’s intentions to address smaller, more localised problems that affect the average person every day.

ADDRESSING THE WATER AND SANITATION ISSUES

A large portion of SoNA was dedicated to urgent measures for addressing the ongoing electricity crisis, but that should not completely overshadow other developing problems.

We must start preparations to avoid what could be the country’s next crises: severe water shortages and spiking health issues associated with lacklustre sanitation infrastructure.

President Ramaphosa mentioned that the Department of Water and Sanitation is in the process of investing in a few major infrastructure projects nationwide, such as Phase 2 of the Lesotho Highlands Water Project. This project includes the construction of a dam, transfer tunnel and reservoirs that will help secure water for Gauteng, the Free State, North West, Mpumalanga and the Northern Cape.

Pthe Gap Infrastructure Corporation  of

in their dwellings. Additionally, only 64.8 per cent of households have flush toilets connected to a public sewer system or septic or conservancy tanks. Another 13.4 per cent still rely largely on pit toilets.

Gap Infrastructure Corporation (GIC) emphasises the importance of sewer reticulation systems and improved household sanitation connections, understanding just how crucial they are to improving South Africans’ personal hygiene and, as a result, their health.

To date, GIC has installed over 100 000 sewer reticulation networks in a multitude of underserviced areas, giving access to fresh drinking water and sewer connections.

To make a lasting impact on many South Africans’ lives, we need to take a more individualised approach to infrastructure development and install water and sewerage connections in every home in the country.

A ROADMAP REQUIRED FOR ROADWORKS

Roads are notoriously difficult to maintain. High traffic rates, heavy vehicles, and excessive rain take their toll on public roads. Government’s role, however, is more responsive than preventative in this regard, which means that a large portion of the roads budget must be allocated to road repairs each year.

However, while projects in key areas such as the Lesotho Highlands will be pivotal in securing water supply, this does not address the lack of in-home water and sewer connections still plaguing the nation.

The latest General Household Survey released by government reveals that 11.3 per cent, or just under seven million people, still do not have access to piped or tap water

According and

According to research from consulting firm Frost and Sullivan, more than half of the country is unpaved and almost a third of its paved roads are in poor to very poor condition.

Many roads that link important metropolises, especially and commuter needs. Considerable repairs and improvements are needed to enable people to access

Many roads that link important metropolises, especially roads in rural areas, are simply inadequate for transport and commuter needs. Considerable repairs and improvements are needed to enable people to access employment opportunities or allow trucks to transport goods to stores in small communities.

Addressing the roads problem and infrastructure development in general, Ramaphosa announced that R600-million has been allocated to Infrastructure South Africa for project preparation within rural and under-resourced areas. By January, some R232-billion worth of construction projects were already underway.

Importantly, the South African National Roads Agency has reportedly already awarded road construction contracts worth R18-billion in the past three months alone. This is an important step toward fixing the local roads network.

National Roads Agency has reportedly already awarded road construction contracts worth R18-billion in the past three months alone. This is important

Mpumalanga and the Northern Cape.

Roelof Van den Berg

OVERCOMING THE SKILLS OBSTACLE

Increased construction directly translates to higher employment among skilled, semi-skilled and unskilled workers. But large, state-driven construction projects require experienced developers that employ highly skilled and qualified engineers and other technical workers.

The president explained that one of the greatest obstacles to infrastructure investments is a lack of technical skills and project management capacity. Fortunately, South Africa is home to many prominent, large developers capable of managing complex national projects and employing, overseeing and upskilling smaller contractors to ensure that government meets its infrastructure goals.

GIC employs some of the top engineers, architects and project managers in the country and specialises in the development of water reticulation systems, dams and canals, water treatment and purification works, sewage pump stations, residential and low-cost housing, national roads and transport infrastructure, stormwater drainage and gravel road construction and upgrades.

RESOURCES:

SONA and the role of local government

Government policies and programmes are only as effective as the individuals charged with putting them into action, writes

People are what make policies, programmes and systems successful. A reliable, reputable, and competent government workforce is required to see the implementation of the goals outlined in President Cyril Ramaphosa’s State of the Nation Address (SoNA).

The speech had something for everyone, including South Africa’s local government sector, which plays a crucial role in helping promote social transformation and economic progress.

Ramaphosa offered criticism and advice on what local government should do to win back the public’s trust and create conducive environments for the development of the economy, society and environment.

“Government is implementing a number of interventions to address failures at local government level and improve basic service delivery. These include enhancing the capacity of public representatives and officials,” Ramaphosa said.

This assertion implies that local elected offi cials’ capacity to perform their duties is affected by their skills and training and that addressing this is more crucial than ever.

Bonolo Selebano

SALGA’S VITAL ROLE

SALGA agrees with this examination of the state of local government affairs and has interventions in place to address the situation. The achievement of the goals outlined in President Ramaphosa’s address depends on the performance of the personnel in the cabinet, government departments, state entities and municipalities.

In the case of local government, new councils for district, metropolitan and local municipalities in each of the country’s nine provinces are elected every five years, along with cohorts of new and returning councillors.

SALGA’s analysis of local government workforce skills at council level reveals that only 33 per cent of the 9 306 elected councillors after the 2016 municipal elections had a post-matriculation qualification.

Responding to the education and skills gap in the sector, SALGA has been running upskilling and reskilling programmes, including its national Integrated Councillor Induction Programme (ICIP).

The ICIP is an accredited Local Government Sector Education and

Training Authority (LGSETA) programme, whereby an NQF Level 3 & 5 certificate of competence is awarded upon completion.

To date, over 7 000 councillors have benefitted from this training initiative, which is crucial for developing the skills, knowledge and character traits needed to be a successful mayor or councillor.

However, SALGA cannot accomplish the goal alone. Political parties can play a part by strengthening the processes they use to choose the most suitable candidates for local government elections. Co-ordinated efforts from all local government stakeholders are necessary to advance the goal of creating a skilled and ethical workforce in local government. Ultimately, achieving the government’s objectives is determined by the people in charge of carrying them out.

Bonolo Selebano

GENERAL HOUSEHOLD SURVEY 2021

A LOOK AT SOUTH AFRICA’S ROAD CONSTRUCTION INDUSTRY

Load shedding How are we coping?

Happy Zondi unpacks how South African provinces have responded to the energy crisis

South Africans’ lives have been hugely impacted by the rolling power outages that have resulted in many businesses closing down, others downscaling, and massive job losses.

By finally declaring the country’s power crisis a national state of disaster, President Cyril Ramaphosa has left South Africans resigned while others dismissed this latest move as another opportunity for further corruption.

JOHANNESBURG LOOKING AT MIXED ALTERNATIVE SOURCES

Michael Sun, former member of the mayoral committee for environment and infrastructure services and DA councillor at the City of Johannesburg, says load shedding has had a huge impact on people’s lives and livelihoods.

“No electricity to distribute means loss in revenue. Ratepayers also suffer because services cannot be delivered to them,” he says. A statement released recently by former City of Johannesburg mayor Mpho Phalatse, which in parts quoted The Sowetan, reads: “Small businesses have had to shut their doors permanently and lay off staff. As a city that makes up 16 per cent of South Africa’s gross domestic product (GDP) and 40 per cent of Gauteng’s GDP, we are facing an economic emergency.”

“Because our infrastructure is old – built in the 1950s and not designed with load shedding in mind – repeated load shedding causes further damage.

The cost of repairs is astronomical,” says Sun, adding that the shadow of darkness due to continuous load shedding has also given rise to rampant crime, with many substations constantly subjected to vandalism and cable theft.

Based on the multiparty strategy adopted at the Energy Indaba in May last year, Johannesburg is looking at mixed alternative sources of energy to buy electricity independently and feed power into the grid and reduce its reliance on Eskom. This includes the use of independent power producers (IPPs), which will result in bigger IPPs for the various plants that fall under Johannesburg.

City Power, which supplies power to most of the Johannesburg municipalities, has issued an RFP (request for proposals) notice for short-term power purchase agreements to secure energy from IPPs for up to 36 months. This first round of RFPs went out in November 2022, with a 10 February, 2023 closing date.

Phalatse’s statement continued: “Parallel to the short-term power purchase agreements, Johannesburg is currently undergoing an approval process for ministerial determination to procure power on a longer-term basis from IPPs.

“We are rolling out City Power’s sustainable energy strategy, which articulates clear intentions, namely:

• Energy equality – speaks to access for all.

• Energy independence – speaks to reducing reliance on Eskom.

• Energy security – speaks to an energy mix.

• Energy Supply – speaks to the stability of the network and minimal outages.

“By going out into the market now, City Power seeks to secure extra capacity from diversified energy sources, including solar, gas, battery storage, waste-to-energy and the dispatchable option of gas-to-power,” reads the statement.

If the strategy is implemented successfully, it will be a huge game-changer for the current challenges facing Johannesburg, which will see major shifts. “If Eskom is implementing stage 3 load shedding, for example, City Power will be on stage 0, and power supply to residents will not be interrupted.”

Sun is quick to caution that all of this will depend on the much-needed R400-million financial injection to roll out the strategy effectively. Plans are underway to establish an infrastructure fund. This includes approaching development finance institutions, the private sector and provincial and national governments to fund this project to leverage Gauteng’s status as the economic hub of the country.

ETHEKWINI BEMOANS LOSS OF SERVICES AND REVENUE

Commenting on the impact of load shedding on day-to-day operations of

Ethekwini’s overall business operations, City of Ethekwini spokesperson

Msawakhe Mayisela says: “Where centres and buildings are not equipped with alternate sources of supply, the metro is forced to suspend operations requiring electricity, meaning that the city is unable to render services to residents.

“Repair and maintenance costs have resulted in reduced revenue. Continuous load shedding means that there is less money for maintenance. Funds must be reprioritised to undertake maintenance as a result of increased breakdowns. The electrical network was never designed for such frequent switching as is required for load shedding. This is causing an exponential increase in cable and switchgear failure,” adds Mayisela.

On the crisis being declared a national state of disaster, Mayisela says: “The benefit will only be to Eskom in terms of speeding up supply chain management processes.”

WATER CRISIS FOR CITY OF MANGAUNG

The city’s general manager for communications

Qondile Khedama, says: “Electricity is one of the key factors in the water supply system – from the source supply treatment and the eventual distribution to homes, schools, businesses, and so on. In the various stages of water supply, pumping requires the most electricity in the whole water system, which makes it even more dependent on electricity.

“Although the water interruption is low during the two two-and-a-half-hour load shedding intervals, this could change when there are outages over extended periods.

Qondile Khedama

Johannesburg is looking at mixed alternative sources of energy to buy electricity independently and feed power into the grid and reduce its reliance on Eskom.

A R14-million electrification project is underway at the Ekukhanyeni Informal Settlement in ward 15.

“The city also uses emergency reserves to ensure uninterrupted supplies. However, the extension of load shedding to stage 6 has led to more regular water supply interruptions in some parts of Mangaung,” he explains.

Some areas most affected by water outages include Thaba-Nchu, Wepenaar, Dewetsdorp, Vanstadensrus and Soutpan, mainly because the pump stations used in these areas are manually operated and tend to trip after load shedding. As a result, this causes supply interruptions or low pressure.

“In the Bloemfontein area, some areas affected include places such as Hillsbro, Groenvlei, Spitskop, and many more. This is one of the reasons why the city is prioritising the upgrading and maintenance of its water supply infrastructure,” says Khedama.

IMPACT OF SEMIGRATION

The Financial Mail recently ran an article, titled “The Great Semigration”, which reported that the most cited reason for Gauteng residents to move to the Western Cape was the advanced strides that province has made in mitigating load shedding and its economic impact.

Phalatse said when residents and businesses left Johannesburg and the province they took their spending power with them, meaning that the province was rapidly losing ratepayers, who, to a large extent, funded service delivery.

According to the Financial Mail, at the current pace of semigration from Gauteng, the Western Cape could take prime position as far as GDP per capita is concerned by 2030, if not sooner.

CITY OF CAPE TOWN’S GAINS AND LOSSES

Explaining how the City of Cape Town has managed to stay on top of the game to minimise the impact of load shedding on ratepayers, member of the mayoral committee for energy and DA councillor Beverley van Reenen says: “Cape Town aims to provide at least four stages of load-shedding protection progressively over the next three years under the Mayoral Priority Programme to end load shedding over time.”

This is set to be achieved through various means, including:

• Buying power on the open market, with the dispatchable energy portion of its major IPP procurement due to be announced soon.

• Paying businesses and residents to sell power back to the city.

• Incentives for voluntary energy savings under a new Power Heroes programme.

• Municipal generation projects such as Steenbras hydropower, solar PV, and gas turbines.

• Productivity for customer service centres and the city in general as most services relying on power are online-based.

Commenting on how Cape Town is addressing the challenges of day-to-day operations, van Reenen says: “We continue to invest in generators, UPS systems and other infrastructure to ensure services continue as much as possible during load shedding.

“Ongoing infrastructure vandalism and illegal connections remain a challenge across the city, with a steady increase as load shedding intensifies, unfortunately resulting in equipment damage and almost constant electricity outages in some areas, both in city- and Eskom-supplied areas.

“The city has attended to hundreds of faults in recent months and disconnects illegal connections to its infrastructure across the metro regularly. We encourage community members to assist us in ending this scourge,” she says.

Van Reenen lists some of the hotpot areas as:

• Hanover Park;

• Heideveld;

• Athlone;

• Manenberg;

• Atlantis;

• Woodstock; and

• Mitchells Plain.

PROVINCIAL LOAD SHEDDING STATISTICS SINCE 2022

City of Johannesburg (July–November)

• Days of outages: 122.

• Number of vandalism and cable theft incidents: 2 175.

• Overall cost of repairs to date: R200-million.

Source: Mpho Phalatse, former mayor of the City of Johannesburg

City of Mangaung: (January to date)

• Days of outages: 497.

• Number of vandalism and cable theft incidents: 88.

• Overall cost of repairs to date: R50-million.

Source: Mangaung power utility: Centlec

City of Ethekwini: Figures not available.

City of Cape Town: (July–October, 2022)

• Days of outages: Only 1 700 hours (Eskom 3 000 hours).

• Number of vandalism and cable theft incidents: 1 incident of high voltage cable vandalism, which cost an estimated R6-million to repair.

• Overall cost of repairs to date: R800-million.

Source: Beverley van Reenen, City of Cape Town

The City of Cape Town’s electricity generation and distribution Department carries out vitally important electricity maintenance daily across the metro. The mayoral committee member for energy, Councillor Beverley van Reenen and officials check on work being done.

The township economy is in danger

South Africa’s township economy –the “forgotten sector” – is in danger of collapse under the pressure of the energy crisis.

By Trevor Crighton

The informal economy provides livelihoods, employment and income for approximately 2.5 million workers (17 per cent of South Africa’s employed) and contributes 6 per cent to the gross domestic product (GDP), according to Stats SA. This major economic contributor is now suffering a series of body blows as load shedding has ramped up over the last quarter.

POWERLESS

Mxolisi Mchunu, specialist: economic development at SALGA, says that the energy crisis, poor service delivery and escalating living costs have only compounded an already crippling crisis in South Africa’s townships. “Faced with longstanding structural challenges rooted in the uneven and racially denominated development policies of the past, townships continue to be hardest hit by the multiple crises confronting the country,” he says.

“The provision of basic services is the cornerstone and an important enabler for socioeconomic development. With townships experiencing poor service delivery – evidenced by perennial service delivery protests and shutdowns – businesses in these areas find it even harder to remain sustainable as they have to overcome insurmountable odds to stay afloat.”

Professor Stephen Mago, head of the Department of Development Studies at Nelson Mandela University, says that Eskom’s failure to provide adequate power has led to increased costs for individuals and businesses, impacting the local economy.

“Small businesses in the townships, which are often informal and lack access to credit and support services, are particularly vulnerable to the effects of the energy crisis,” he says. “This can limit their growth potential and impact their ability to create jobs and contribute to the local economy.”

GDP DRAIN

Mchunu says that small businesses – most of which are found in townships – contribute as much as 35 per cent to South Africa’s GDP through the entire value chain.

“This highlights the importance of small businesses as drivers of economic growth and employment creation. Government is, therefore, duty-bound to play its part in harnessing and strengthening the township business ecosystem through, in part, improving access to support services and finance, enhancing skills and capabilities and accelerating digitisation to enable township enterprises to adapt to the changing world.

“The aim should be to work towards a complete reorientation of the township economy, where townships are elevated into economic hubs for manufacturing and production and not consumption sites as they currently are,” Mchunu says.

In terms of GDP growth, the energy crisis has likely contributed to the reduction of growth forecasts for the South African economy. Professor Mago says it is likely that the impact of the energy crisis has been felt by small businesses and households

FAST FACT

A recent report from the International Labour Organisation shows more than 60 per cent of the world’s employed population earn their livelihoods in the informal economy. One in every six South Africans who works, works in the informal sector.

in these areas, potentially leading to a reduction in economic activity and growth.

“Overall, while it is difficult to determine the exact impact of the energy crisis on the township economy, it is likely that it has affected people’s livelihoods in these areas.”

POLICY FOR POWER

SALGA has taken the lead in representing the interests of its members around the energy crisis. Mchunu says that SALGA has, through various intergovernmental forums, called for policy reforms and brought to the surface some of the challenges faced by municipalities – not least the nonpayment of services, theft of electricity infrastructure and illegal connections.

“These factors are placing severe strain on the ability of municipalities to recoup the cost of providing electricity to consumers. While SALGA is not able to directly mitigate the impact of load shedding, it is leading the charge in shaping the policy environment and lobbying for municipalities to be afforded greater leeway to seek alternative sources of energy,” he says.

Professor Mago says that while the country’s energy crisis is likely to set back the development of the economy as a whole, the township economy is being hit particularly hard as economic activity, competitiveness and growth are reduced. “The impact of the crisis is likely to be felt for some time, and addressing the underlying issues will be crucial for South Africa’s future economic development.”

Mxolisi Mchunu

As hundreds of solar photovoltaic (PV) installations are completed in South Africa’s suburbs and commercial hubs every day, the gap between those who can afford to generate their own power and those who can’t, widens. That leaves more people at the mercy of load shedding – and fewer people paying Eskom for the service it provides, when it provides it. That presents townships and undeveloped rural areas with increased service delivery challenges, security problems and the general inconveniences associated with sporadic power supply.

SEEKING SOLUTIONS

A project run by the Gauteng Research Triangle – a partnership between the universities of Johannesburg, Pretoria and WITS – has suggested that informal settlements are the perfect sites for kick-starting South Africa’s “solar revolution”.

“The morphology of informal settlements is to move from freestanding structures to compounds, which can include multiple households in one larger group of structures, which share one large roof – ideal for solar installations,” says Professor David Everatt of the WITS Department of Urban Governance.

In attempting to harness a unique urban formation to contribute to solving the energy crisis, Professor Everatt suggests that a different way of thinking is required. “We need to remain open to ideas, innovation and above all, learning by doing. The idea of solar in informal settlements – based on some reactions I’ve been exposed to – has seen people retreat into terribly static ideas of informality. I’m told that panels would be stolen immediately, as if poor people, offered a lifetime supply of sun they can turn into money, have no ability to see long-term value above a quick buck.”

He says people seriously underestimate the internal organisation and governance of informal settlements, which are a community, not a group of disparate and desperate people. “They can protect

Solar power in informal settlements?

Harnessing the unique topography of South Africa’s informal settlements could help solve the country’s energy crisis. By Trevor Crighton

common assets and maintain them. So, while the rich and middle-class and private sector entities can afford large solar installations, let’s simultaneously do something for those at the other end of the spectrum rather than simply leaving them out of the picture.”

for those at the other end of simply leaving out director Henkemans solar

a government programme to establish solar PV networks in townships as it could provide a reliable and affordable source of energy for people who may not have access to the grid. Such a programme would need to be well-designed with a focus on education and training to ensure the long-term sustainability of the installations,” says Henkemans.

MASS POWER

Alumo Energy managing director Rein Snoeck Henkemans says that requests for solar PV installations from rural areas and townships have contributed to the trebling of their customer base between last year and now. “Some challenges of operating solar PV systems in townships and rural areas include limited access to financing, lack of technical knowledge and skills for installation and maintenance, and the need for reliable and affordable storage solutions,” he says.

The cost of solar PV systems and batteries is still high, but Henkemans believes that embarking on a mass programme to install solar PV systems in informal settlements could potentially impact the pricing due to economies of scale – cautioning that the availability of inventory and the ability to manufacture components in South Africa would need to be assessed. “We would support

In terms of the feasibility of the proposal, Professor Everatt says that the study has been made public so that experts in the field could weigh in and participate in the project if they felt it was viable. “I think we’re also looking for innovation in the area from PV suppliers, not to just assume there is one fixed way of doing that, which works on formal, physically separated dwellings – how to do concentrated panels in settlements is where we’d like to go,” he says.

Henkemans believes it is technically possible to have homes feeding excess solar PV-generated power back into the grid. Indeed, the City of Cape Town has implemented a programme to pay businesses and residences a fee for doing so – but says that the grid would have to be modernised and the appropriate systems put in place to handle this level of input, which would be a significant undertaking.

Professor Everatt is more sanguine: “It’s beyond my level of expertise, but it doesn’t seem to affect the German or British grids.

Professor David Everatt

More than being left in the dark

The fallout from load shedding goes far beyond being left in the dark, writes Trevor

Crighton

The macro effect of load shedding costs the South African economy as much as R899-million per day to, according to the SA Reserve Bank. On a micro basis, it is having catastrophic effects on service provision in municipalities, affecting millions of people as wastewater treatment plants stall, water distribution becomes a challenge and security risks soar.

MANY-HEADED HYDRA

Dr Tyanai Masiya, senior lecturer and undergraduate studies co-ordinator at the School of Public Management and Administration in the Faculty of Economic and Management Sciences at the University of Pretoria, says load shedding also results in cable theft, damage or faults to electricity infrastructure or nuisance tripping that may result in even further downtime. “Many health services require electricity and electronic gates, cameras, and locks, which, if they stop working, pose a risk to clients and staff,” he says.

“Many municipal administrative services, from customer service centres to traffic services, also depend on electricity to operate.”

SALGA’s head of electricity and energy, Nhlanhla Ngidi, says that persistent power cuts have numerous long-term effects on infrastructure. “Wastewater treatment plants have been damaged, water reservoirs are also packing up as they are not built for excessive switching on and off, substations are burning out due to excessive switching related to load shedding and cable theft has escalated exponentially since the perpetrators know the load shedding schedules and align their criminal acts with the schedules,” he says.

and cable theft has escalated exponentially since the the confi guration of the networks in most areas to

Ngidi says that hospitals and critical infrastructure have been exempted from load shedding by the NRS 048:9 standards for load shedding, in a bid to ensure uninterrupted services – but Dr Masiya says this remains challenging. “By the end of 2022, nearly 80 hospitals countrywide had been exempted from load shedding. However, there are technical challenges including the current electricity confi guration of the networks in most areas where some hospitals are deeply embedded within networks, which makes it diffi cult to isolate them immediately,” he says.

COUNTING THE REAL COST

Ngidi says that municipalities report estimated losses of about R6-million per day per stage of load shedding, with cable losses contributing between R80 000 and R100 000 per day to that figure. Speaking to the impending increases in electricity tariffs, he says that the impact on municipal revenues and increase in debt owed to them will be great, as people have already lost confidence in municipalities due to interrupted services. “People will not be motivated to pay for further increases in services, including electricity. As more affluent customers opt to install solar photovoltaic (PV) systems that remove or reduce their dependence on the grid, municipalities suffer additional revenue losses. This shift can leave municipalities with only poor customers, who are not paying for their services, anyway,” he says.

Dr Masiya says the municipalities most affected are those that draw most of their revenue from electricity sales. “This means that a daily load shedding of more than four hours eats into the municipal revenues over and above disrupted services in the whole local economy,” he says. “Local municipalities such as Makhado Municipality rely on the reselling of electricity as a primary source of income, and insuffi cient income ultimately affects a municipality’s service delivery budget. Persistent load shedding destroys businesses and compromises the production of food and provision of social services, such as water, sanitation, community safety, education and health.”

UPRISING

Residents’ responses to piling challenges on top of challenges have been, understandably, to launch protests. Early in February, tensions fl ared across the country as people reacted to the combination of load shedding and its effects on other infrastructure. Dr Masiya says service delivery protests – many of which have turned violent – have become a tradition in South Africa in the last two decades. “Load shedding affects service delivery and service delivery quality. In this context, load shedding may be contributing to service delivery protests. Ngidi agrees: “We believe that, in all the protests currently taking place, load shedding is at the centre because of the ripple effect it has on disruption of other services.”

challenges have been, understandably, to launch country as people reacted to the combination of load place, other services.”

Dr Tyanai Masiya

Nhlanhla Ngidi

The just energy transition

Why international organisations are vital for accelarating just energy transition. By

Alana Kruger

, knowledge transfer manager for South Africa at Innovate UK KTN Global Alliance Africa

Over the next 15 years, South Africa will need to install at least 50GW of generation capacity to achieve energy security. Calculations by industry analysts indicate that this will require an estimated R1.2-trillion in investment before 2035 to mitigate the energy crisis.

It’s time for energy stakeholders to review the merits of the country’s past capital-raising efforts and explore new approaches towards achieving this 15-year investment goal.This need for reflection comes as the recent escalation in rolling blackouts adds immeasurable pressure on economic development, creating a domino effect on employment, poverty, and climate change.

According to energy experts, the recent prolonging of stage 6 load shedding has already caused significant damage to the country’s economy, with over R4-billion wiped from the national coffers for each day it continues, as reported in a 21 September, 2022 article by Business Tech

In an attempt to mitigate this impact, South African officials have investigated the potential of expanding the country’s fleet of coal power stations. However, amid the global shift to clean, green and renewable energy, a new path – Just Energy Transition (JET) – has been forged.

JET seeks to introduce modern and efficient energy-generation capabilities to the national grid, while simultaneously minimising the social and environmental impact that power production can have on the health and livelihoods of communities and wildlife. Or, as President Cyril Ramaphosa, unveiling government’s Just Energy Transition Investment Plan (JET-IP) at a virtual meeting of the Presidential Climate Commission (PCC) in November 2022, said: “It is about addressing the global risks of climate change while creating jobs and driving more rapid and inclusive economic growth.”

GREAT INITIATIVE, DIFFICULT JOURNEY

South Africa has received widespread praise for its plans to achieve JET, with global commentators applauding the president’s framework outlining the principles to guide the transition and the policy and governance arrangements to effect the transition. But, this does not mean that the road towards sustainable and inclusive carbon neutrality will be an easy one.

Among the most obvious challenges are the expenses associated with renewable energy. Equally as important, however, are issues around trust, which must be developed between public and private actors, the need for the redress of policy obstacles that slow the pace of clean energy production, and how the process can account for South Africa’s “coal communities” that depend on the energy resources for income amid high levels of unemployment and poverty.

Exacerbated by the ongoing energy crisis, South Africa’s goal of achieving JET is a complex endeavour, but offers great opportunity for collaboration. Local stakeholders should recognise the significant role international organisations can play towards providing a gateway to global knowledge, resources, networks and innovations – vital resources on the journey towards sustainability in the energy sector.

ACCESS TO GLOBAL KNOWLEDGE

International organisations represent a distinct break from the national norm and unlock unique opportunities to help address many challenges facing JET. For example, to help stakeholders access global knowledge best practices, organisations such as Innovate UK KTN, have curated Global Innovation Network, a UK-African community for researchers, funders and innovators in the energy space to come together and explore solutions that seek to solve critical energy shortages using technology and innovation. Through regular engagements, this network of energy specialists and industry stakeholders provides insight into the current climate, advises on how to overcome obstacles impeding implementation, and works to identify “needle-moving” projects with the potential to drive change within the industry. These engagements have already identified key focus points for programme exploration, including green fuels and their applications, an exploration into transition metals, export versus local usage of energy, and enterprise development. Global networks are an important resource. By assisting local actors to access new knowledge, technologies and mindsets, they support efforts exploring different pathways to JET.

International organisations facilitate a level of resource mobilisation that national actors cannot achieve on their own, making them a key component in supporting the planning, implementation, and monitoring of just and inclusive energy transitions.

For more information, visit https://ktn-uk.org/programme/africa.

RESOURCES:

The renewables revolution offers a brighter future

South Africa’s shortfall of power generation capacity has reached beyond crisis levels. But in crisis lies the opportunity for organisations of all sizes, including small and medium businesses (SMBs). The public conversation often focuses on the challenges and costs of load shedding for smaller businesses and how these can be mitigated. But a more empowering way to look at it is as a chance for SMBs to champion and lead the shift to a cleaner, more sustainable energy world.

The SME Climate Impact Report commissioned by Sage and launched in partnership with Oxford Economics and the International Chamber of Commerce (ICC), shows SMBs’ footprint totalled 29 per cent of nonhousehold emissions in South Africa when greenhouse gases generated in their supply chains were considered.

As such, SMBs can play a key role in the transition to cleaner energy. Let’s start with renewables. From independent power producers (IPPs) building wind and solar farms to large companies’ self-provisioning power to solar installations for SMBs and homes – the growth opportunities are plentiful.

ENERGY REFORMS TO BOOST SMBS

President Cyril Ramaphosa recently announced a broad package of reforms. These include making it easier for large power users to self-provide up to 100MW of embedded power generation, launching an Eskom feed-in tariff for solar users to sell power to the grid, and accelerating IPP roll outs.

This creates enormous opportunities for entrepreneurs and SMBs throughout the supply chain, from providing and installing systems to manufacturing components and playing a role in power storage and provision. The market is far from saturated, and skills are in short supply, creating compelling

entrepreneurial prospects in an industry with a bright future.

The pace of innovation in renewables has been astonishing; we envisage SMBs playing a leading role in driving further progress. Avoiding another monopoly would be highly desirable. Instead, we could foster a renewables ecosystem with competition at every level – from installation to power provision.

Driving entrepreneurship is essential for a just transition. Government, labour and communities are justifiably concerned about the loss of fossil fuel jobs and the poor getting left behind in the renewable energy revolution. An inclusive renewables industry would help address these challenges by potentially creating 250 000 new jobs over the next 25 years and off-grid power solutions for rural communities, reports the Global Wind Energy Council.

HARNESSING RENEWABLES IN BUSINESS

Not every SMB will want to become directly involved in the renewables industry, but every SMB uses electricity. Herein lies an opportunity for SMBs to evaluate ways of harnessing alternative energy to improve business resilience, sustainability and effi ciency. Rapid renewables innovation means a strong business case for going solar.

For most businesses, barring those with heavy machinery or commercial fridges, solar panels and battery backup are excellent backup power sources. They’re cleaner, quiet and don’t depend on expensive fuel. Solar offers small businesses the prospect of becoming increasingly independent from the grid and reducing their power bill over time.

Some municipalities, such as Cape Town, allow businesses to feed power back to the grid for a rebate. Over time, solar installations will pay for themselves, even if you don’t factor productivity through load shedding into the equation.

Becoming more sustainable is also a good reputational move that enhances an SMB’s standing with customers and suppliers.

Tools such as Spherics, a carbon accounting solution from Sage, can help businesses easily understand and reduce their environmental impact. Though not yet available in South Africa, it will help SMBs manage their carbon footprint, and the data shows where the low-hanging fruit is for SMBs in making the transition.

RENEWABLE ENERGY IS KEY TO SECURING ENERGY FUTURE

Solar and wind are the best options to address South Africa’s power shortfall rapidly. But we must gradually wean ourselves from fossil fuels to meet our climate emission promise to the global community and play our part in addressing climate change.

Energy reform is an opportunity for businesses to increase growth and become more sustainable. SMBs need to take their place at the energy reform table, so they don’t get left behind. Government and big business would be wise to tap into the resourcefulness and innovation of the SMB sector to help drive a faster and more successful transition.

RESOURCES:

Pieter Bensch, executive vice president for Sage Africa & Middle East, shares the key role small and medium businesses can play in the transition to cleaner energy

SME CLIMATE IMPACT REPORT

GLOBAL WIND ENERGY COUNCIL REPORT

Pieter Bensch

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An overview and analysis of municipal audit outcomes

Pockets of excellence provide key learnings for clean audit outcomes of local government,

writes Deidre Forbay

As municipalities across the country table annual reports for the 2021/2022 financial year, the South African Local Government Association (SALGA) has emphasised the urgency of improving financial management and governance in local government. These results will be released at an overall local government level by the Auditor-General (AG) later in the year.

In the 2020/2021 financial year, the AG reported that of the 257 municipalities, 141 provided credible financial statements and received unqualified audits. These 141 municipalities accounted for 73 per cent (R371-billion) of the overall local government expenditure budget of R508-billion. Forty-one municipalities received clean audits. SALGA has welcomed this improvement from the 27 clean audits recorded for the prior year.

Of concern was that 163 municipalities were in financial distress, and 64 were considered dysfunctional due to poor financial management.

“When working with public funds, this rate of performance is far from ideal. While SALGA welcomes the good work done by the 141 municipalities, it cannot ignore that too many are failing at the most basic processes,” says Mohammed Lorgat, SALGA director for municipal audit support.

UIFW –THE FOUR-LETTER PROBLEM

The most common findings across the term involve unauthorised, irregular, fruitless and wasteful expenditure (UIFW).

At the end of the political term (2016–2021):

• The balance of irregular expenditure had accumulated to R119.07-billion;

• Unauthorised expenditure stood at R86.46-billion; and

• Fruitless and wasteful expenditure amounted to R11.04-billion.

“UIFW is growing; this means that the municipalities are not taking sufficient steps to recover, write off, or approve such expenditure,” Lorgat says.The Municipal Finance Management Act dictates that councils are required to investigate UIFW and no municipality should write off such expenditure without ensuring that no losses had been suffered, or that any losses cannot be recovered.

Lorgat explains: “The fact that UIFW continues to grow demonstrates a lack of consequence management. This tolerance of noncompliance fuels a sense of impunity in local government. It is the main reason for the deteriorating levels of accountability. There can never be an improvement in accountability and good governance if the transgressors are allowed to go unpunished.”

CONSULTANTS YIELD LITTLE RESULTS

By 2021, over R1-billion was spent on consultants, yet the overall reported results demonstrate that management controls of municipalities were inadequate to prevent material misstatements in several municipal financial statements.

“This excessive, expensive use of consultants points to the skills issue in municipal finance departments. How is it possible that a chief financial officer with a fully staffed finance unit cannot produce financial statements? And why is there no consequence management?” says Lorgat.

POCKETS OF EXCELLENCE

SALGA has previously expressed disappointment with the findings of the AG, noting an overall lack of transparency and a normalised reluctance to hold officials accountable.

The situation remains a concern for SALGA and the association has taken a keen interest in fostering opportunities to share best practices and key lessons from municipalities that have built a track record of clean audit outcomes.

Lorgat acknowledges that no single municipality is the same and there is no one-size-fits-all solution. “However, three factors – will, culture and people – seem to be a common thread in municipalities that consistently achieve clean audits. Surprisingly, they relate more to organisational culture than organisational processes.“Each of these

municipalities – at a specific point –became deliberate about achieving a clean audit outcome. This meant harnessing both political and administrative will to make a difference.“

The second common factor among the pockets of excellence is that all these municipalities created and entrenched a culture that prioritised prudent financial management and obtaining a clean audit outcome.”

“This culture is driven from the top at a political and administrative level and communicated at all levels of the municipality. Internal controls and best practices underpin this culture, and officials understand what they’re working towards.

“Lastly, and most importantly, these municipalities invested in their people. Whether employing the right people or upskilling current staff, these pockets of excellence have built financial teams that have technical and institutional knowledge and buy into the culture of achieving a clean audit outcome,” Lorgat explains.

A PROCESS, NOT AN EVENT

Senqu Local Municipality is a semi-rural municipality in the Eastern Cape. Senqu is a prime example of where there’s a will, there’s a way, receiving successive clean audits across the previous political term.

Before achieving a clean audit, Senqu recorded five unqualified audit opinions. Tanya Van Zyl, strategic support and communications manager, confirmed that Senqu’s best practice came about as a process, not an event.

For Senqu, clean audits started with the accounting officer ensuring that a clean audit outcome was translated into a key organisational objective, which became proper oversight functions. As the administration fed into these oversight functions, accountability became a central focus.

This led to a culture where each director is held accountable for their different responsibilities. This is supported by clear effective communication, proper processes and document management systems, adherence to good financial management principles and strong internal controls.

INSTITUTIONAL KNOWLEDGE A KEY DRIVER

Midvaal Local Municipality in the southern region of Gauteng has not only received a

CLEAN AUDITS

The following municipalities received consecutive clean audits for the 2016–2021 term:

• Senqu Local Municipality, Eastern Cape

• Midvaal Local Municipality, Gauteng

• Okhahlamba Local Municipality, KwaZulu-Natal Cape Winelands

• District Municipality, Western Cape

• Overstrand Local Municipality, Western Cape

• Witzenberg Local Municipality, Western Cape

• Cape Agulhas Local Municipality, Western Cape

clean audit throughout the previous term, but also recently announced receiving its ninth consecutive clean audit for the 2021/2022 financial year.

Midvaal is well run – its residents have one of the highest customer satisfaction rates in the country. The municipality credits its success story to a high level of institutional knowledge. Key management officials, such as the municipal manager, chief financial officer, and head of supply chain management, have been at the municipality for at least five years.

Another success factor is accountability. According to the AG, “the municipal culture, driven by the political and administrative leadership, is characterised by zero tolerance for transgressions and taking personal accountability for maintaining good financial practices and sustaining clean audit outcomes”.

MISSION POSSIBLE

Okhahlamba Local Municipality in KwaZulu-Natal was once placed under financial administration. Its goal to become one of the beacons of financial stability is ascribed to ensuring that the mission of a clean audit became a standing agenda item.

Suraya Asmal, senior communications officer at the municipality, says: “We have overcome many challenges in this extraordinary journey, including political turf wars, low staff morale and poor administration.”

Asmal credits their success to proper oversight bodies. “We hold Troika, Manco

and Audit Readiness meetings weekly, our portfolio committees, exco and council sit monthly, and our MPAC, audit committee, risk committee, and labour forums are all functional. This has made a huge difference in the way we operate.

“We also have a culture where we encourage our staff to pursue their educational qualifications and are proud that 99 per cent of our management staff hold tertiary qualifications.”

A QUALITY WORKFORCE

The Cape Winelands District Municipality in the Boland region of the Western Cape province forms part of the top achievers for the term.

Shaun Stanley, manager for budget and treasury in the municipality, notes that a clean audit is achieved by managing every process, transaction and interaction.

“Most people will attribute the attainment of a clean audit to good leadership and management in the administration. However, people often forget that if your staff complement does not want to do the right thing, you will struggle to get clean audits. A quality workforce is critical and at the centre of our clean audit.”

SALGA’S PARTING SHOTS

Lorgat acknowledges that there are several challenges, and each metropolitan, district or local municipality has its complexities. However, there are a few basic principles that should be in every audit process plan. These include:

• Entrenching and enabling an administrative environment that insists on credible financial and performance reports for in-year monitoring.

• Stabilising, retaining and capacitating skilled and experience administrative officials.

• Leading by example and ensuring that consequences for accountability failures are effected swiftly, bravely and consistently. “These interventions are in no way novel. They stem from well-documented best practices and are generally understood as supporting interventions to the principles of a strong financial management approach, which includes ensuring effective revenue collection, prudent spending, and prevention and speedy recovery of financial loss and wastage.”

The goal now is for all municipalities to put this understanding into practice.

Follow Salga on Facebook /SALGAGov or twitter @salga_gov

In search of solutions

SALGA’s National Executive Committee met recently to collaborate on finding solution-based approaches to key municipal priorities, writes

Bonolo Selebano

The Southern Sun Cape Sun Hotel in Cape Town was the venue for SALGA’s National Executive Committee (NEC) Lekgotla on February 13–14, 2023. The meeting took place against the backdrop of the country’s national discourse on the provision of sustainable and affordable electricity and the role of municipalities in the country’s energy sector. The NEC provided an update on the organisation’s interventions to address these challenges and discussed solutions-based approaches to key municipal priorities. A discussion about SALGA’s legal status as a public entity was also high on the agenda.

The organisational report presented by SALGA president Councillor Bheke Stofile evaluated SALGA’s performance and outlined important areas for improvement.

On concerns around political inclusivity in the SALGA KwaZulu-Natal (KZN) provincial executive committee (PEC), Stofile said: “It should, however, be noted that we remain concerned about the continued nonadherence to the constitutional provision that ‘political parties governing municipalities in the province must be proportionally represented on the PEC’.

“It is still evident that the political party that outrightly governs in several municipalities in the province and leads the coalition governments in a number of other municipalities has not been engaged to ensure adherence to the SALGA Constitution, as amended,” he said.

Stofile emphasised that the organisation would address the nonparticipation of several Gauteng municipalities during the election of the PEC of SALGA and urged the Lekgotla to address issues in the two provinces.

“Similar to KZN, this Gauteng matter cannot be allowed to go on without resolution and it is suggested that this NEC Lekgotla set a clear timeframe to ensure adherence by the two provinces with the SALGA constitutional prescripts.”

THE SAFETY OF COUNCILLORS

Stofile reflected on the ongoing spate of councillor killings and raised concern that the brazen murders of councillors are signs of growing lawlessness in the country. A skilled and productive workforce was deterred from entering the local government sector, he said, because of ongoing attacks on and killing of councillors and municipal officials. He listed some of the interventions to deal with the problem:

• Encourage SAPS and NPA to ensure that reported cases are investigated and prosecuted.

• SAPS should similarly apply a uniform and time-sensitive approach to conducting risk assessments for councillors and municipal officials.

• Jointly lobby for the provision of security to councillors to be appropriated from the national fiscus.

• Launch a national campaign on social cohesion to deepen democracy and promote ownership of local democracy by communities.

FUNDING AND REVENUE

South Africa’s local government funding and revenue framework was also a topic.

SALGA president Councillor Bheke Stofile at a meeting of the organisation’s NEC Lekgotla. Participants at the SALGA NEC Lekgotla.

Stofile said the revenue-sharing mechanism, specifically the Local Government Equitable Share Grant (LGES), is insufficient and hinders the sector’s ability to carry out its constitutional obligations.

“For years, SALGA has advanced the view that the assumptions made in the 1998 white paper on local government on own revenue-raising potential by local government are no longer relevant to local government’s current situation. SALGA has now successfully lobbied for an in-principle agreement that the funding of local government should be reviewed,” he explained.

Stofile ended his address by expressing confidence in SALGA’s ability to address these challenges and to advance the interests of the organisation’s member municipalities in local government.

MINISTERIAL ENGAGEMENT

Stella Ndabeni-Abrahams, Minister of Small Business Development, gave a presentation outlining the key areas where local governments and the ministry can work together to support the growth of small, medium, and micro enterprises (SMMEs).

Ndabeni-Abrahams told members of the NEC that all small businesses are started in municipal areas and therefore municipalities must create environments that will stimulate business growth and employment opportunities.

She said SALGA could take the following action to help stimulate local economic growth.

• SALGA to work with the Department of Small Business Development (DSBD) to address business licensing issues at municipal level.

• DSBD to work with SALGA and provincial governments on developing digital SMME license application systems (building on the experience of KZN as an example), including systems integration and interoperability.

• Local economic development offices to assist in building the SMME pipeline for the take up of the Township and Rural Entrepreneurship Programme and other DSBD instruments.

• Expand the Red Tape Reduction Programme and the Pilot Administrative Simplification Programme being rolled out across local government through district municipalities and enable SALGA to play a more prominent role therein.

ELECTRICITY TARIFF HIKE

The NEC noted the multiparty court action to stop the 18.65 per cent electricity tariff increase by the National Energy Regulator of South Africa (NERSA).

Eskom’s tariff application was approved by NERSA, leading to increased electricity prices of 18.65 per cent in the fiscal years 2023–2024 and 12.74 per cent in 2024–25. Due to Eskom’s lack of generation capacity,

SALGA members expressed concern that NERSA’s decision will only worsen the effects of load shedding on consumers, small businesses and municipalities.

NEC members stated that while other legal options are being considered, the organisation would use all necessary intergovernmental relations processes to address the matter.

DISTRIBUTION AGENCY AGREEMENTS BETWEEN MUNICIPALITIES AND ESKOM

The NEC dealt with what they described as the one-sided active partnering agreement between Eskom and Maluti-A-Phofung Local Municipality in the Free State. The agreement appears to assist the municipality with operational challenges to secure revenue to enable payment of the municipality’s bulk electricity account. However, concerns were raised that the agreement is intended to take away the electricity distribution function, including all revenue related to the function, from the municipality.

This is despite South Africa’s Constitution listing electricity reticulation as a local government responsibility, and Section 153 placing responsibility on municipalities to ensure the provision of electricity reticulation to communities.

SALGA will support Maluti-A-Phofung Municipality in addressing the impasse in the agreement signing with Eskom.

DELISTING AND WHAT IT MEANS FOR SALGA

The final topic of discussion at the Lekgotla was about SALGA’s delisting as a public entity and alternatives to the organisation’s listing as a Schedule 3A entity. It was confirmed that even after delisting on 1 April 2023, SALGA will continue to be accountable to its members with oversight provided by the Registrar of Labour Relations in accordance with the Labour Relations Act 66 of 1995.

listing as a Schedule 3A entity. confirmed Auditorof its affairs in terms of its constitution.

SALGA will continue being audited annually by the AuditorGeneral of South Africa and operate its affairs in terms of its constitution. The organisation’s equitable share allocation will be sustained.

The two-day Lekgotla ended with NEC members feeling optimistic that the discussions will produce positive outcomes for municipalities.

SALGA deputy president Xanthea Limberg contributed helpful insights.

Members of the SALGA NEC in discussion.

Stella NdabeniAbrahams

Imaging microsatellite takes to the skies

The EOS SAT-1, an imaging microsatellite that will collate and share valuable agricultural data, was launched in January by the Dragonfly Aerospace

The Minister of Higher Education, Science and Innovation, Dr Blade Nzimande, has welcomed the successful launch of the EOS SAT-1 (AgriSat-1/ ZA-008), built by South African company Dragonfly Aerospace. The microsatellite was launched on 3 January by US aerospace company SpaceX at Cape Canaveral, Florida, as part of the Transporter-6 mission.

The launch of the 170kg microsatellite follows last year’s successful launch of three locally produced nanosatellites by the Department of Science and Innovation and its partners. The Maritime Domain Awareness Satellite constellation (MDASat-1) was launched on SpaceX’s Transporter-3 mission, and marked the first launch of a satellite constellation developed entirely on the African continent.

The EOS SAT-1 satellite is the first of a seven-satellite constellation in low-Earth orbit for customer EOS Data Analytics. The remaining six satellites of the constellation will be deployed over the next three years.

EOS SAT is an agriculture-focused satellite constellation that will provide the

agriculture and forestry industry with high-quality data to support efficient and sustainable practices.

AGRICULTURAL AND ENVIRONMENTAL BENEFITS

Images obtained from Dragonfl y’s EOS SAT-1 will deliver valuable information for applications such as harvest monitoring, seasonal planning, and assessments that analyse information, for example, soil moisture, yield prediction and biomass levels. This data will support growers in reducing carbon dioxide emissions and help them to develop sustainable agricultural methods.

Such information will have important environmental benefi ts for the planet, and will maintain biodiversity and help prevent natural habitats from being diminished for crop growth.

Congratulating Dragonfly Aerospace, minister Dr Nzimande said the EOS SAT-1 launch is a proud moment for the country – for its much-needed agricultural focus and because it is 100 per cent locally developed. “This will further cement

The EOS SAT-1 satellite is the first of a seven-satellite constellation in low-Earth orbit for customer EOS Data Analytics. The remaining six satellites of the constellation will be deployed over the next three years.

South Africa’s position as an African leader in small-to-medium satellite development and help the country capture a valuable share of a niche market in the fast-growing global satellite value chain,” said Dr Nzimande.

“In 2009, the Department launched the SumbandilaSat, a technology demonstrator, in partnership with the South African industry. SumbandilaSat was launched from Baikonur, Kazakhstan, with monitoring and satellite support from the South African National Space Agency Space Operations facility in Hartebeesthoek,” he said.

He added that the SumbandilaSat initiative demonstrated South Africa’s satellite-build capability and facilitated human capital development. The programme allowed for the training of nine new black trainee engineers (four of whom were female) and broadened the experience of 78 other engineers. The Sumbandila programme produced 18 master’s and two PhD students in engineering at Stellenbosch University.

The country’s current satellite engineering capabilities are based on government investment in the SumbandilaSat programme.

Equipped with two dragon-eye electro-optical imagers, EOS SAT-1 will provide 44km swath panchromatic and multispectral imagery across 11 spectral bands – making it one of the most capable imaging satellites in lower-Earth observation.

For more information:

012 843 6300

www.dst.gov.za

USING 4IR TO ADDRESS SERVICE DELIVERY CHALLENGES

Almost a year ago, devastating floods in KwaZulu-Natal displaced about 14 000 people, leaving them without homes. The flood victims were housed in temporary accommodation like community halls, and many are still living in these make-do shelters.

Experts have warned that such floods, a consequence of the deepening impact of climate change, will become more frequent.

Heavy rains, drought-related veld fires and other devastating natural disasters destroy infrastructure and affect socioeconomic development. While it is not always possible to predict natural disasters, we can plan disaster responses.

In January, the Minister of Higher Education, Science and Innovation, Dr Blade Nzimande, launched a 3D construction printing initiative for human settlements in South Africa. The 4th industrial revolution technology is expected to radically change the provision of housing in the country, and to improve technology systems locally and in Africa.

The Department of Science and Innovation (DSI), the University of Johannesburg and the KwaZulu-Natal Department of Human Settlements are collaborating on the novel initiative, which allows a cement house to be manufactured in eight hours. The first few houses will be built in KwaZulu-Natal.

Speaking at the launch event, Minister Nzimande said that the 3D printing project showed the DSI's commitment to employing science, technology and innovation to solve people's problems.

"Using innovative building products in South Africa has potentially significant economic ramifications, including eradicating the housing backlog and providing better-quality housing and construction products, possibly reducing the

lifecycle cost of the houses," he explained. "We believe that construction using 3D printing technology will significantly alter and positively disrupt how human settlements are delivered in South Africa."

The provision of safe, good housing, even without the destruction of homes in climate change-related weather events, is one of the most urgent challenges facing South Africa. Although the government has made significant progress in the provision of housing in the past 28 years, there is still an enormous backlog.

In 2021, research conducted by the Department's entity, the Academy of Science of South African, indicated that the urban housing backlog exceeded 2,4 million houses and that many families still lived in informal housing. According to Statistics South Africa, the country has over 2 600 informal settlements, accommodating 1,4 million households.

Outgoing Vice Chancellor of the University of Johannesburg, Prof. Tshilidzi Marwala, said that the new technology could not only help with the housing backlog, but could also assist with emergency responses to disasters like last year's floods. The fact that it could produce a house so swiftly made the technology ideal for building emergency shelter during a crisis. Marwala emphasised that the finished houses were stronger, could handle fire better, and were better insulated than conventional houses.

Agrément South Africa, a technical assessment agency under the Department of Public Works that encourages and facilitates the use of innovative and non-standard construction products through its certification scheme, welcomed the initiative. The agency will be working with the DSI on the accreditation and certification of the 3D printing construction system.

"This type of innovation can give hope to our youth and educate our people about the future of science and innovation," said Agrément South Africa's CEO, Richard Somanje.

The new technology, while partially robotic, is not designed to replace humans in the construction industry, but is expected to enhance performance and productivity, and to create job opportunities.

About 160 km outside East London, in the Amatole District of the Eastern Cape, lies the small town of Seymour. The town was once a thriving farming region, but over the years agricultural activity has diminished and only a few farms remain. The area has become economically depressed, with widespread unemployment and increasing poverty.

But the launch of an initiative by the Department of Science and Innovation (DSI) to revive economic activity in the area means that there is hope for the community. On 28 February, the DSI and two of its entities, the Technology Innovation Agency (TIA) and the Council for Scientific and Industrial Research (CSIR), handed over six new aloe ferox-based cosmetic products to three agribusinesses and community enterprises in Seymour.

Aloe ferox is an indigenous plant growing in the area. Locals use it for its medicinal properties and can be found selling at the roadside. But the DSI and its entities, by adding science, technology and innovation to the natural resource, have also added economic value.

Through research and development activities at the CSIR, and with support from TIA, local agribusinesses and community enterprises have transformed aloe ferox into cosmetic products.

The processing of the aloe ferox material was validated, with the ingredients quality tested to ensure regulatory compliance, resulting in the development of face wash, body lotion, hand cream, hand wash, hair food and hair spray that can be produced at commercial scale for sale in formal markets.

The products, together with the technologies developed for the ingredients, were transferred to three agroprocessing businesses, Karibu Co-operative, Ziyanda Enterprise and Nozulu Aloe Farming Co-operative. The enterprises will be able to process the plant material in the area where it grows.

The initiative not only served to promote the commercialisation of the new aloe ferox-based cosmetic products, but also provided technology transfer and skills development to locals.

For Nomakhwezi Manzi, founder of Nozulu Aloe Farming Cooperative, the journey started six years ago, when she approached Phatheka Ndzotoyi, a senior researcher at the CSIR's agroprocessing group, for help. Manzi had an idea to empower not only herself but also her community. She wanted to go from selling wild aloe ferox for R50 a bucket to commercialising the plant. Ndzotoyi, whose area of expertise is the development of cosmetic products, was glad to be of assistance.

Manzi said that the project gave Seymour hope, at a time when there seemed to be nothing that could change its fortunes.

"I am grateful for the work done by the DSI, CSIR, TIA and other institutions that were actively involved in the process. Thabo Gwiji from the Eastern Cape Department of Economic Development, Environmental Affairs and Tourism really came through for us by facilitating the approval of permits to move the aloe from Seymour to the CSIR in Pretoria for laboratory tests," she said.

Local chief Mmyetheli Xhinela also expressed appreciation that the government and its entities were reaching out to rural areas. "Poverty is rife here, and we are grateful that you were able to come to us and address issues of poverty and employment creation," he said.

Reducing of poverty, economic growth, economic transformation, and job creation are at the heart of the National Development Plan, said Dr Maneshree Jugmohan-Naidu, Director: Agricultural Biotechnology at the DSI.

"At the DSI, we look at how science and innovation can improve people's lives and contribute to socio-economic impact. In agriculture, our Agricultural Bioeconomy Innovation Partnership Programme (ABIPP) gives us the opportunity to focus our efforts not only on what is happening in the laboratory, but also on the bigger picture" said Jugmohan-Naidu.

ABIPP is a DSI instrument managed by TIA using ring-fenced funding. It facilitates, coordinates and funds multi-institutional, multi-stakeholder and co-funded agricultural bioeconomy initiatives contributing to increased productivity, food security and rural economic development.

A resident of the nearby village of Upsher, Lulamile Matya, who is a citrus farmer, said that the project should not end with the handover of products to enterprises, but go further to support the create of a value chain.

"We need a factory and a company that is going to produce active ingredients. We already have a building that could potentially house the factory for the production of these ingredients. This will create more job opportunities for our children," said Matya.

ENVIRONMENTALLY FRIENDLY INNOVATIONS THE WINNER AT

EWaste Africa, a small KwaZulu-Natal business specialising in electronic waste, scooped the coveted Global Cleantech Innovation Programme-South Africa (GCIP-SA) award on Friday, 17 March. The company is headed by CEO Pravashen Naidoo.

Zandile Magwaza (iSolar company), Robert Bosch (Rubber Nano Products) and Nkhanyiso Madlala (Hello Gugu) were the first, second and third runners-up.

The GCIP-SA is part of a global initiative aimed at promoting clean technology innovation and supporting entrepreneurs to grow their SMMEs and start-ups into viable, investment-ready businesses. It is managed by the Technology Innovation Agency (TIA), an entity of the Department of Science and Innovation.

The programme offers training, mentoring, showcasing opportunities, access to capital and cash awards to innovators with clean technology innovations.

Friday evening's award ceremony celebrated 12 young finalists who made it through the rigorous selection process, all entrepreneurs who have excelled in the development of sustainable technologies.

Delivering the keynote address, the Deputy Minister of Higher Education, Science and Innovation, Buti Manamela, said the Department identified three societal grand challenges in its Decadal Plan, namely, climate change and environmental sustainability; the future of education, skills and work; and the future of society.

"Our Decadal Plan also recognises that the circular economy will bring new economic growth to South Africa. Cleantech will assist in the transition to a low-carbon economy and the sustainable use of natural resources in economic sectors," said the Deputy Minister.

He added that the Global Cleantech Innovation Programme resonated with South Africa's strategic priorities and this is why the Department of Science and Innovation was fully supportive of the TIA's participation in this programme.

"As you may be aware, South Africa is one of 15 countries that are part of the global GCIP programme," he said.

The Deputy Minister also stressed that the Department saw the SMME sector as a strategic sector and had developed a number of instruments to support SMEs.

The winning company, eWaste Africa, is a waste management company that focuses on the storage, collection, transportation, recycling and beneficiation of electrical, electronic and lighting equipment waste (electronic waste). The company operates two licensed waste management facilities in KwaZulu-Natal and Gauteng, managing recycling and refurbishment, among other services.

The first runner-up, iSolar, is a start-up dedicated to increasing the provision of clean energy in low-income communities. The company designs, develops and provides turnaround strategies for informal settlements, an important sector of society that remains marginalised.

Focusing on old rubber, among other things, Rubber Nano Products, the second runner-up, is a chemical technology company, specialising in ionic liquid technology. The company's intellectual property allows them to vulcanise rubber with energy savings and eliminate toxic components. They are now able to revulcanise old rubber, so that it has similar properties to new material.

The lack of lighting in poor communities, which makes them vulnerable to crime, was the inspiration for Hello Gugu, the third runner-up. The company addresses the public lighting challenge with solar power, at the same time allowing homes to generate clean energy for internet connectivity.

EWaste Africa won R300 000, while the runners-up each received R100 000.

The winner and runners-up will attend the global GCIP forum in Vienna, where they will compete with other participating GCIP countries.

Turning the tide on South Africa’s water crisis

South Africa’s water crisis could be reversed

While South Africa is undeniably experiencing a water crisis, this situation could be reversed by changing the paradigms around water management – viewing it as an infinitely renewable resource, and bringing together political will, science and capital to change the way it is managed. In the past, water was seen as single-use stock, and the solution to scarcity was to create dams and inter-basin transfers.

This approach was the foundation of huge industrial growth around the world, but had unintended consequences. Now, areas of the country that once thrived on a foundation of dammed water face economic ruin.

The paradigm must change – water is infinitely useable. In a new paradigm of abundance, based on simple scientific truth, we must acknowledge that water is a flux flowing in time and space, therefore, it’s an infinitely renewable resource. When it has been used, it returns to the ecosystem, so you haven’t lost it – you still have the same volume.

In my paper, “A South African Perspective on Climate Change, Food Security and Water”, presented at the 4th BRICS Academic Forum, New Delhi, in March 2012, I note that water moves in time and

space, driven by the laws of physics, in what is known as the hydrological cycle. We have the same volume on our planet today as when the dinosaurs roamed free 65 million years ago.

FIXING THE SECTOR

The crisis of management is that by seeing water as stock instead of flux, future economic growth has been constricted, and cities such as Port Elizabeth are on the brink of total collapse. We need R1-trillion to fix what’s broken in the water sector, but the science and technology already exist to make it happen.

Desalination and recycling water will substantially improve the situation. South Africa has been reclaiming and

Prof Anthony Turton, a scientist and consultant specialising in water resource management as a strategic issue, shares how

With an enabling environment and more capital, we can launch more water recycling and desalination programmes.

desalinating acid mine water at Witbank and other areas for at least a decade without problems, proving that we can convert the worst water into the cleanest potable water. With an enabling environment and more capital, we can launch more water recycling and desalination programmes. We don’t need to crash and burn – we need credible thought leadership creating a vision supported by robust science, engineering and technology; then we need to populate the vision with enthusiastic and competent people.

I am optimistic that progress is already being made. There’s a lot of good news. The current Minister of Water and Sanitation, Senzo Mchunu, has gone out of his way to reach out to experts and create water war rooms. Within the government, we see “moderate middle” components where capital resides and rational people want to make South Africa a better place. And there are scientists, business chambers and local governments already working on more advanced water recycling and desalination plans.

The South African Water Chamber, of which I am a founding member, is working with stakeholders and the government to create programmes using special purpose vehicles (SPVs) as a solution to failing

In a new paradigm of abundance, based on simple scientific truth, we must acknowledge that water is a flux flowing in time and space, therefore, it’s an infinitely renewable resource.

municipalities and to enable economic growth. These SPVs, to be rolled out over the next decade, will mobilise the R1-trillion we need.

RESEARCH DRIVES PROGRESS

Research based on science is important in driving progress in sectors such as water resource management. During WWII, it became evident that science, engineering and technology could play a significant role. The invention of radar, directly linked to Prof Basil Schonland at Wits University, was a game-changer in the Battle of Britain.

This triggered the creation of national science councils in all former British colonies, mandated by parliament to generate the science, engineering and technology platform needed to develop the economy. Each Commonwealth country has gone different routes, but many still have CSIR-type science councils.

In South Africa, the Commission of Enquiry into Water Matters created the national framework to guide the CSIR in the type of research and technology

development needed. An example is the development of technology to safely recycle sewage as potable water, as pioneered by the CSIR for implementation in Windhoek. The same happened when the treatment of acid mine water became a crisis, with the sulphur removal technology being pioneered by the CSIR. We can safely say that the economic development of South Africa has been strongly influenced by science, engineering and technology, with many examples, including the pioneering work into the production of oil from coal.

Research creates an unambiguous platform for creating new knowledge around complex issues. Coming from a national science council, that research formed the foundation of policy and thinking in both the public and private spheres. Today, I still work in two spheres – research exclusively funded by private capital for strictly commercial purposes and research in the public domain for the public good. There is a place for both in society.

Tackling poor literacy at high schools

A2021 research article by Wordsrated.com shares that 51.2 per cent fewer people in South Africa were reading books at the time of their research than in 2006. Older reports reveal that very few of the population read for leisure.

This is due to a combination of factors, including the prohibitive prices of books, the unavailability of leisure time, and cultural norms that reflect a lack of understanding of the benefits of literacy. And yet, according to nonprofit

Lea-anne Moses, executive director of the Fundza Literacy Trust, shares some advice on how South African school teachers can run reading groups

organisation Read to Rise, reading has been effective in helping children excel at school and go on to become constructive members of society. It all starts with reading.

Promoting a culture of reading has been repeatedly noted as the best

way to improve literacy levels among children and adults alike. Reading forms part of primary school learning, but it’s only a small part of the high school curriculum for English literature. At this level, reading should be encouraged beyond just textbooks to keep literacy levels up and highlight the benefits of reading for pleasure. And while a range of factors resulting in children not reading cannot be fixed overnight, there are some manageable ways to buck this trend – one being the development of reading groups at schools.

ENSURE THAT THE GROUP HAS ACCESS TO EXCITING MATERIAL

Engaging reading material is a surefire way to get teens and young adults reading. If only bland reading materials and textbooks are available, there’s very little chance that high school students will want to join a reading group.

If the school doesn’t have access to new, exciting books or reading materials, put out a call to your community, your parents, your network and even your local library. Many people are looking for ways to sustainably offload some of the books they have at home. Additionally, incorporate platforms such as Fundza into your reading groups. Through its data-light mobisite, fundza.mobi, young people now have access to a library of local stories written by themselves and their peers about them and for them.

MAKE IT ABOUT MORE THAN JUST READING

Similarly to how book clubs are as much about getting together as they are about discussing books so school reading groups should also factor in the social aspect.

Make the reading group a safe space where students can also share their own stories or opinions. This could be done through note cards that are left in each book before they are passed to the next person, so they share both the story and their experience of it.

Encourage everyone to write something short every week or second week, and have them share it with the group if they wish. You could also share a question with the group a day or two before each meet-up, and students can prepare their answer. Questions, such as “what made you smile this week?”, “what are you looking forward to right

now?” and “what do you wish to achieve this year?”, encourage openness and sharing among students and peers.

SHOW UP PREPARED

If you have asked students to read a particular short story before the next meet-up, you should not only have read the short story, but also prepared some questions about the story to ask the group.

Being prepared this way shows your dedication to the group and also holds everyone accountable because they would need to finish the reading to participate in the discussion.

If you are struggling to get the group to discuss something, you can make use of something called the “think, pair, share” method, where you ask a question, learners take time to think of their answer before sharing it with a partner, and then share it with the bigger group. This also ensures that the whole group gets involved in the discussion.

LET THE STUDENTS CHOOSE SOME OF THE READING MATERIALS

If you involve your students in choosing some of the required reading, they are more likely to read it. Let them choose the book or a story from a digital portal.

Draw up a schedule ahead of time of when students can choose the reading piece or book. Students are more likely to hang around if they see they are being relied on to choose the reading material in two or three weeks. Doing this also allows students to select books linked to popular culture, for example, something they’ve seen online or the book version of a particular film they enjoyed.

MAKE USE OF READING GROUP RESOURCES

Several online resources are available to teachers who want to run reading groups

at their schools. This would be a good place to start for anyone wanting to get this going.

Resources for reading groups, warm-up games for groups and running reading groups are all useful if you are looking to get started. Additionally, Fundza offers a SACE-accredited “How to run a reading group” course, and educators who complete this will earn professional development points.

Reading for fun needs to be encouraged more among high school learners. Often these students don’t have the space or time to read at home, so by creating a reading group at school as part of their day, schools are not only improving literacy levels, but also giving their students a comfortable space in which to enjoy this pastime.

New leader at the helm

The Municipal Demarcation Board has appointed a new chief executive officer. By THE MUNICIPAL DEMARCATION BOARD

The Municipal Demarcation Board (MDB) is pleased to announce the appointment of Manye Moroka as the new chief executive offi cer (CEO), effective 1 March 2023. He takes over from Aluwani Ramagadza, who has held the interim CEO position over the past year.

Moroka’s illustrious career spans more than 25 years, and he brings a wealth of knowledge and experience from the various leadership roles he has held in both the public and private sectors.

He holds a master’s degree in public administration, a BProc degree, and a Global Executive Development Programme qualifi cation, among others.“On behalf of the board, I congratulate Mr Manye Moroka on his appointment,” says Thabo Manyoni, chairperson of the MDB. “His leadership skills, experience and deep understanding of national and local government will certainly lead the entity to greater heights.”

“His leadership skills, experience and deep understanding of national and local government will certainly lead the entity to greater heights.” – Thabo Manyoni

ABOUT THE MUNICIPAL DEMARCATION BOARD

The Municipal Demarcation Board is an independent authority mandated to demarcate municipal boundaries of the entire territory of the Republic.

municipal demarcation board

➔ Scan this QR code to go directly to The Municipal Demarcation Board website.

For more information:

012 342 2481

www.demarcation.org.za

Demarcationboardmdb

O cialMDB1

Municipal Demarcation Board

Mr Manye Moroka

Plans afoot for recycling of e-waste in iLembe

While the iLembe District Municipality has developed plans to improve waste management, there are significant challenges around the disposal of waste electronic and electrical equipment in the district, writes Paul Jones, director of Lumec and local co-ordinator for the Sustainable Recycling Industries iLembe local project component

On 23 August 2021, waste electronic and electrical equipment (WEEE), better known as e-waste, was banned from being accepted at landfills in South Africa. This comes after the eight-year compliance timeframe, as defined in the National Norms and Standards for Disposal of Waste to Landfill (2013), lapsed. In addition to the previous bans of lead acid batteries and lighting waste (such as spent fluorescent lamps) to landfill, this means that all types of WEEE must now be diverted from landfill and instead collected and recovered by licensed companies.

Although this ban has been enacted by the National Department of Forestry, Fisheries and Environment (DFFE), there is limited awareness and a lack of understanding about the implications

of the recent landfill ban, particularly by local government, small businesses and households.

The Sustainable Recycling Industries (SRI) South African project seeks to “contribute to favourable framework conditions that enable the development of a sustainable recycling industry for waste electrical and electronic equipment”.

Falling under the Vuthela iLembe LED Support Programme, SRI also has a local component that is currently being implemented in iLembe. Local research has highlighted that little has been done in iLembe to comply with the WEEE ban; local policies and bylaws have not been scrutinised to ensure alignment with this ban, and limited WEEE collection and disposal options are available to avoid sending WEEE to landfill, especially for households and small businesses.

CURRENT WEEE LANDSCAPE

The WEEE value chain starts with the production of electrical and electronic equipment (EEE), which, when sold to the consumer market and after its useful lifespan, ends up as waste electrical and electronic equipment.

Among households (and small businesses), there is limited education and awareness around the disposal of WEEE in iLembe. This is made worse by the fact that only a third of all households in iLembe receive a weekly waste collection service, and almost half use their “own refuse dump”. As a result, WEEE either ends up being stockpiled, going directly to a landfill as part of the municipal waste collection service or dumped illegally. The landfill ban necessitates that WEEE be diverted from the municipal waste stream.

THE ROLE OF THE RECYCLERS

The iLembe area is well-represented with formal WEEE recyclers, including Indalo, RecycleX and Reclite. Although these companies vary in size and function, collectively they allow for WEEE in iLembe to be dismantled, pre-processed and/or refurbished. All recyclers do some form of dismantling, where materials are separated and then consolidated and sold to scrap dealers and

plastic recyclers or exported into global recycling markets. Some pre-processing takes place, where complex WEEE components are processed (crushed), separated from each other and consolidated, and mainly exported for processing at smelters in global markets where technology is available for the complex processing of printed circuit boards, for example.

support the WEEE industry. While most of the bylaws provide a framework for the collection, recovery, recycling and disposal of waste in general, they do not make any specific reference to WEEE. In addition, the capacity to enforce bylaws has been raised as a major challenge. As such, there is a lack of guidance and enforcement from local government around the correct disposal of WEEE, which results in WEEE either being stockpiled or landfilled.

POSSIBLE SOLUTIONS

Unlike households, WEEE generated by businesses and institutions is generally well recovered. WEEE is either passed on directly to those who process for material recovery and/or refurbish WEEE (the recyclers), or first to formal collectors (waste management companies) and then to recyclers. These strong business-to-business relationships ensure that large volumes of WEEE are diverted from landfill. However, recyclers have indicated that one of the biggest challenges they face is access to WEEE volumes due to limited collection, especially from households. Additionally, government WEEE stockpiles are blocked from being released due to asset management policy.

POLICY ENVIRONMENT

Within South Africa, district municipalities are responsible for the management of landfills, while local municipalities are responsible for the collection and disposal of waste and diverting recyclable waste materials from landfill. As part of these responsibilities, local governments are required to promote recycling (including

separation at source interventions), create public awareness, and facilitate local solutions for the public, such as drop-off centres. Additionally, local government is also responsible for developing and implementing local bylaws.

The iLembe District Municipality and all four local municipalities have developed Integrated Waste Management Plans (IWMPs) that aim to assist, sustain and improve waste management in the district, and include strategies on how to collect, minimise, reuse, recycle and recover waste, and how waste should be treated and disposed of. Integrated Waste Management bylaws also exist, which provide regulations for waste management services, such as the collection and removal of waste, operation of garden sites, minimum management obligations for hazardous and industrial waste, and to encourage recycling of waste. KwaDukuza, Mandeni and Maphumulo all have Integrated Waste Management bylaws.

Within all the IWMPs, there is, however, limited information or data on WEEE volumes or specific initiatives to

Given the ban of WEEE from landfill, new solutions for WEEE management are required. Firstly, it is important that local government creates a conducive policy environment, enforces waste management bylaws, and promotes the enhanced collection of WEEE in the district.

Bylaws must be revised to support the national ban of WEEE to landfill by providing clear regulations around the correct treatment of WEEE, while IWMPs need to provide clear strategies and interventions to enhance municipal capacity to deal with WEEE. This includes how to encourage WEEE recycling in the district, how municipally-owned and operated drop-off and buy-back centres can be facilities for WEEE recovery, and how capacity can be enhanced to enforce waste management bylaws. Additionally, changes are required to current asset release policy to unlock WEEE currently in government stockpiles. Secondly, households and businesses should ensure that they are disposing of WEEE correctly with licensed collectors or recyclers active within the iLembe area and also encouraging their peers to follow suit.

The SRI iLembe project is in the process of establishing “WEEE are iLembe” – a partnership-based model aimed at ultimately increasing the volumes of WEEE collected and further treated in the region. “WEEE are iLembe” will partner with existing stakeholders in the area to drive a public awareness campaign, undertake further research to better understand stockpiles and collection preferences of households and businesses, and support local government to harmonise local policies and bylaws as well as optimise drop-off sites to accept WEEE as a key waste stream.

Delivering the skills for an effective local government

Sector Education and Training Authorities (SETAs) have been put in place to encourage skills development in specific economic sectors and provide skills development and training to people employed or seeking employment in these sectors.

The role of the Local Government SETA (LGSETA) is specifically to promote and facilitate skills development initiatives and strategic sectoral training interventions, and to enhance the efficiency and effectiveness of the local government sector through a variety of initiatives.

LGSETA chairperson Phumlani Mntambo says he was appointed to the role in March 2020 to drive the board forward according to the responsibilities laid out in the constitution.

“It was certainly an interesting start to the job, as I joined just at the time the country went into lockdown. This meant having to undertake meetings via electronic collaboration platforms, at least for essential services, before I’d even had the chance to meet my staff face-to-face,” he says.

TRAINING PILLARS

Mntambo notes that training for the local government sector focuses on certain pillars, namely, infrastructure and service delivery, financial viability, community-based participation and planning, management and leadership, and adult education and training.

“Our SETA facilitates training that is focused on each of the above pillars, as well as offering training and guidance to councillors and traditional leadership. We also work closely with other SETAs, such as the Energy and Water SETA, whose programmes cut across the local government landscape, and run a course

on municipal finance that is relevant to all members of a municipality, as opposed to only the finance people.“In addition, we have programmes on disaster management, leadership, local economic development, councillor development, and a number of others related to environmental management. We also focus on developing artisans, including plumbers, electricians and water quality controllers,” adds Mntambo.

He explains that this training is important for several reasons, most notably a government white paper on post-education that calls on the SETAs to ensure that everyone has a skill of some kind, post-matric.

“The LGSETA thus provides training to post-matriculants to ensure they obtain such qualifications. Moreover, since we live in an ever-evolving world, we must ensure that those who are trained are consistently upskilled and reskilled to ensure their continued competence within the local government sector.”

DEALING WITH CHALLENGES

Mntambo says the local government programmes offered by the LGSETA are unique – there is no specific university course that provides such a qualification. Essentially, these programmes help the LGSETA to bridge the gap between university studies and practical experience.

“We have a national footprint and are active in all nine provinces. We are consistent in our efforts to bring youth into government, to expose them to the skills they require and to help them gain the necessary qualifications to deal with the many challenges facing local government,” he says.

Mntambo says a major challenge in the sector is the number of unqualified audits received by municipalities across the nation.

The Local Government SETA is positioned to provide the kind of strategic sectoral training interventions that can help municipalities enhance their efficiency and effectiveness, writes

RODNEY WEIDEMANN

“Since we live in an ever-evolving world, we must ensure that those who are trained are consistently upskilled and reskilled to ensure their continued competence within the local government sector.”

– Phumlani Mntambo

Board oversight in Kuruman.

Phumlani Mntambo, LGSETA Board Chairperson.

These issues mostly relate to irregular expenditure – a key area of focus, as is helping municipalities to understand and deal with this.

“To this end, we facilitate a municipal financial management programme designed for directors, such as those in planning or infrastructure, and senior municipal managers. The aim is to not only ensure they have a relevant qualification, but also to obtain feedback from them on how best we can improve our programmes and qualifications.”

ON THE ROAD

Mntambo explains that the LGSETA is currently undertaking a provincial roadshow where it is visiting stakeholders to listen to their challenges and to observe the training provided to them. It is also about informing them adequately about the LGSETA’s role so they can clearly understand its services and offerings.

“A good example is how some traditional leaders in the Northern Cape were unaware of the traditional leader-focused training we offer. This is exactly the reasoning behind this roadshow – to position the LGSETA as an organisation that can understand their challenges and offer answers to these.”

Another of the functions, he continues, is to undertake oversight visits of projects funded by the LGSETA to ensure that funds

are being effectively utilised and proper training is being rolled out in these regions.

“It is important for us to be able to see the progress made on specific projects and to ensure that these programmes are being implemented as they should. It goes without saying that local government is impacted by the scourge of fraud and corruption, so oversight means witnessing the training facility and the learners in action. It also affords us the opportunity to gain input around the challenges they face and what needs to be done to improve things moving forward.”

OPEN-DOOR POLICY

Mntambo indicates that it is vital for the LGSETA to continue functioning optimally and deliver the skills necessary to keep improving the status of local government. This means that the type of

Training for the local government sector focuses on certain pillars, namely, infrastructure and service delivery, financial viability, community-based participation and planning, management and leadership, and adult education and training.

skills the organisation wants to inculcate are the ones that will be most effective in improving the service delivery within, and the standing of, the municipality in respect of key areas, such as finance, energy and water and sanitation.

In this respect, he suggests that improved audit outcomes are equally crucial, as it is vital to have municipalities that are more stable and solvent. It is necessary to have people within these local government structures who are skilled and capable of maintaining local government infrastructure and processes. This is why it is imperative to ensure they have the relevant skills and qualifi cations required.

“Looking ahead, the LGSETA is now focusing on digital learning around smart cities and the fourth industrial revolution (4IR), as well as concentrating on increasing the number of women in leadership positions in local government and providing the training required to achieve this.

“I would like to remind the local government sector that as the LGSETA, we understand how best to access the funds they need to help train their people. They should come to us with their challenges, needs and requirements. We have an open-door policy for stakeholders within local government who needs funding for training, and we are always willing to assist wherever we can, within the boundaries of our annual budget,” concludes Mntambo.

For more information: 011 456 8579 info@lgseta.org.za www.lgseta.org.za

Itumeleng Lethoko mayor of Ditsobotla Local Municipality.

Makhado Board oversight.

Keeping water services on stream

With reliable electricity supply under threat because of Eskom’s woes, a consistent source of high-quality water must be secured.

By iLembe District Municipality

The Vuthela iLembe LED Support Programme is assisting the KwaDukuza Local Municipality to review water services delivered to consumers in areas that fall under the Siza Water Concession.

Vuthela is providing professional services to assist the iLembe District Municipality to review the Siza Water contract and identify where revisions may be required.

Efficient water services are essential to maintain and expand economic activity by initiating new developments. This will ultimately include more people in the economic activities of districts, creating greater inclusivity for many who would otherwise remain outside the mainstream economy.

Secure water services are, therefore, central to the iLembe District Municipality’s development plans and its growth trajectory in the future.

REVIEWING THE CONTRACT

The 30-year concession to provide water and sewer services began in 1999 when Siza Water signed a contract with the Borough of Dolphin Coast, now known as the KwaDukuza Local Municipality.

The contract required Siza Water to deliver water and sanitation services in Ballito, Zimbali, Shaka’s Rock, Sheffield Beach, Tinley Manor and Salt Rock along the coast and in the inland areas of Shayamoya, Nkobongo, Shakaskraal and Etete.

In the two decades since the concession’s inception, South Africa has implemented many legislative changes; local development plans have evolved, and the numbers and profile of municipal customers have changed significantly. With the Siza Water concession scheduled to end in 2029, the Vuthela iLembe LED Support Programme is supporting the iLembe District

Municipality to ensure that the contract continues to be viable over the remaining seven years.

The original contract for the Siza Water concession was based on the Framework for Restructuring of Municipal Services, the prevailing guiding policy in 1999. It was concluded well before any legislative frameworks for water services delivery, municipal services and public-private partnerships came into effect. This makes it necessary to review the contract’s alignment with the current legislative framework and revise it where necessary.

The Vuthela Support Programme is currently conducting an extensive review of the performance of the contract, legal and financial issues and the changing customer base.

The analysis of the contract performance will identify the amendments needed to ensure it aligns with the iLembe District Municipality Regional Water and Sanitation Master Plan (2016) and the Water Services Development Plan (2021).

ALL ASPECTS BEING ANALYSED

The review team is working closely with analysts within the iLembe District Municipality’s technical department to understand the infrastructure asset base within the concession area. The infrastructure analysis includes :

• Assessments of present and future water demand;

• Sales;

• Nonrevenue water (which refers to water that is supplied, but not paid for);

• Average daily demand over the year;

• Average daily sales over the year;

• Consumption patterns in the various supply zones;

• The water infrastructure required; and

• The storage capacity required for the short and long term. The current concession contract and its various supplementary agreements are also being analysed for their compliance with broad-based black economic empowerment legislation and the procurement regulatory framework. National water benchmarking norms and standards for the provision of water services are taken into account in this analysis.

The concessionaire’s audited annual financial statements and quarterly financial reports, income reports, contribution reports, tariff reports and statements are being assessed, along with Siza Water’s contribution to SMME and youth development.

The legal review includes analysing the concession’s performance and supplementary agreements to ensure the contract is legally compliant with the current legislative and regulatory framework.

The review is also testing compliance with the contract’s model for the equitable distribution of the financial proceeds between the iLembe District Municipality and the concessionaire. It is further assessing the implications of the iLembe District Municipality’s current mandate to provide universal water and sanitation and appropriates service levels.

Procurement and equity aspects of the contract are being assessed against the requirements of:

• The Constitution of the Republic of South Africa, 1996;

• The Broad-Based Black Economic Empowerment Act 53 of 2003;

• The Preferential Procurement Policy Framework Act 5 of 2000;

• The Public Finance Management Act 1 of 1999;

• The Local Government: Municipal Finance Management Act 56 of 2003; and

• The Municipal Fiscal Powers and Functions Act 12 of 2007.

This assessment will inform the

drafting of amendments to ensure that the contract is in line with current legislation and policies.

Performance and service level aspects are being reviewed by testing compliance with the Constitution of the Republic of South Africa; the Local Government: Municipal Structures Act 117 of 1998; and the Local Government: Municipal Systems Act 32 of 2000.

The review is also considering how the Siza Water contract fits in with the national water services benchmarking initiatives that SALGA has agreed to; the National Water Act 36 of 1998; Water Services Act 108 of 1997; and the National Environmental Management Act 107 of 1998.

The professional team conducting the review will draft a supplementary agreement to ensure that all compliance issues and proposed remedies are addressed.

The financial review of the Siza Water concession is underway to ensure that projections of the financial model and profit-sharing model are accurate, complete and robust. Experts are analysing the impacts of the COVID-19 pandemic on financial projections, investigating the financial performance of the concession, reviewing the current tariff structure and

analysing the estimated rate of return for each year until the contract expires.

SHIFTING TRENDS AND FORECASTS

Shifting trends in the demand and supply of water and sewer services for residential, commercial and industrial consumers in the past 23 years since the concession’s inception are also being analysed.

A customer base expert is assessing the socioeconomic environment, income and affordability variables for the areas within the concession area to indicate the spatial distribution, income levels and affordability of customers supplied by Siza Water. The experts will use this information to forecast how growth areas and future development will impact the demand and supply of water and sanitation services.

This forecast of future demand will guide the provision of additional capacity that may be required, ensuring that consumers in the KwaDukuza Local Municipality continue to receive water and sanitation services until the end of the Siza Water concession in 2029.

The Vuthela Support Programme continues to provide expert professional services that assist the KwaDukuza Local Municipality and Siza Water to supply water and provide sanitation services to communities in this rapidly growing region in KwaZulu-Natal.

The Vuthela Support Programme is currently conducting an extensive review of the performance of the contract, legal and financial issues and the changing customer base.

A solution for every water supply problem

SBS Tanks was pleased to be able to assist the Nelson Mandela Bay Metropolitan Municipality, helping to supplement the water supply to areas of Gqeberha, writes Kim Blom

ABOUT SBS TANKS

SBS Tanks offers innovative water storage solutions for municipalities. Tanks can be used for bulk water storage and the storage of borehole, raw, seawater, process water and effl uent or wastewater. With a range of sizes from 7 000 litres to 4.2 million litres, SBS Tanks are suited for any application in even the most remote location due to their modular design.

In the Bushy Park area of Gqeberha, several boreholes were sited, drilled, tested and equipped with pumps. The water from these boreholes feeds collectively into a single 460 000 litre SBS tank. The tank, along with a booster pump station, is located next to the main bulk supply lines serving the metro from the west. Potable water from the SBS tank is then pumped into the main supply, supplementing the water supply to the metro.

THE CHALLENGES WERE NO MATCH FOR THE ENGINEERING TEAM

The Nelson Mandela Bay Metropolitan Municipality has been experiencing water challenges for several years. As part of one of nine initiatives implemented by the municipality, which comprises Gqeberha and Kariega (previously known as Port Elizabeth and Uitenhage respectively), a 460 000-litre bulk water storage tank from SBS® Tanks was installed.

“The lack of rain in the catchment areas has meant that the Nelson Mandela Bay Metropolitan Municipality has had to come up with solutions to improve the sustainability of the water supply and keep water flowing to businesses and residents,” says Mava Gwagwa, a director at SBS Tanks. “One of the initiatives was to develop a wellfield along the western outskirts of Gqeberha, which included a water storage tank from SBS Tanks.”

“The site posed many challenges. These included difficult sand road access to the site, large and specialised pipework and nozzle requirements,” Gwagwa said. “This is exactly why SBS Tanks has an in-house engineering team that can work with consulting engineers, municipalities and other professionals to ensure a successful project outcome.”

The modular and lightweight panel construction of water storage tanks from SBS makes it possible to access remote sites with terrain challenges, such as the site at Bushy Park. By collaborating with the main contractor and consulting engineer on this project, SBS Tanks was able to successfully supply and install a sustainable and practical storage solution for the project and the overall water supply scheme.

For more information: 086 048 2657 info@sbstanks.co.za

www.thesbsgroup.com

Scan this QR code to go directly to the SBS Tanks website.

“SBS Tanks has an in-house engineering team that can work with consulting engineers, municipalities and other professionals to ensure a successful project outcome.”– Mava Gwagwa

SBS Tanks’ 460 bulk water storage tank in Bushy Park.

City of Joburg advances on social housing

The City of Joburg’s member of the mayoral committee for housing, Mlungisi Mabaso, kicked off the Long Street Social Housing Project, led by the Johannesburg Social Housing Company (Joshco) in December 2020. The project entails the construction of 1 336 units to accommodate lower-income households with gross incomes ranging from R3 500 to R15 000 a month.

“The development in Jeppestown is part of the city’s turnkey projects, which aim to address the lack of affordable housing in the city. The mixed development aims to address the housing need for RDP beneficiaries, subsidised homes at lower costs and social housing for rentals,” said Mabaso.

Jeppestown is a critical focus area of the city’s plans to invest over R800-million in revitalising the inner city over the 2022/23 financial year. A further R900-million will be invested in 2023/24, with R1-billion set aside for 2024/25.

Last year saw the completion of an apartment building that provided 95 social housing units and ground-floor retail facilities at a cost of R33.7-million. The complex, comprising a mix of studio, one- and two-bedroom apartments, offers affordable rentals ranging between R626 and R4 866 monthly. R25.6 million of the overall amount was contracted to SMMEs, and the project created 230 jobs.

“The Jeppestown Social Housing Project demonstrates government’s efforts to redress apartheid spatial planning through well-located human settlements and providing dignified housing in line with the Constitution of the Republic and the Social Housing Act 16 of 2008,” said Public Works and Infrastructure Minister Patricia de Lille during an oversight visit to the project.

Mpumalanga municipal officials get hands-on for Action Friday

Officials in the Thaba Chweu Local Municipality in Mpumalanga have adopted a hands-on approach to facilitating the implementation of departmental service delivery programmes through its Action Friday programme. By Dale Hes

Acting municipal manager Peter Mankga started the Action Friday initiative at the beginning of 2023, with various directorates getting onboard to assist field workers with activities, such as road repairs, grass cutting, rehabilitation of illegal dumping sites, removal of illegal water and electricity connections. The programme was conceptualised after a meet-and-greet engagement session between Mankga, general staff and organised labour upon the issuance of an unqualified audit opinion for the 2021/22 financial year.

“It was overemphasised that the municipality has fairly accounted for the use of public funds, however, it still faces a service delivery conundrum that is not commensurate with the improved audit opinion,” says Thaba Chweu Local Municipality spokesperson Themba Sibiya.

Starting in the municipal seat of Mashishing on 13 January, the initiative has since spread to Sabie, Graskop and other areas. “Improved road conditions, a clean environment and a responsible citizenry that is against the illegal connection of water and electricity are some of the results,” says Sibiya.

The City of Joburg is making considerable progress in reducing its social housing backlog, with the advancement of flagship projects in Jeppestown, within the inner city, writes Dales

Hes

Launched in 2003, Joshco is a registered social housing institution accredited by the Social Housing Regulatory Authority, mandated to provide and manage social and affordable rental housing for the lower-income market. The entity pioneered a sustainable model of providing social housing in the inner city and surrounding areas and has developed more than 9 000 rental housing units to date.

He adds that Action Friday will help to inculcate a culture of hands-on management without detracting from the daily responsibilities of the involved officials.

“This can be used to influence and inform departmental planning. The initiative does not obliterate the daily routines for the responsible directorates, however, this is one mechanism to strengthen the rendering of services and maintenance of infrastructure.”

Nokwanda Ndashe, SALGA’s marketing and communications officer for Mpumalanga, says such initiatives should be replicated in local municipalities countrywide.

“South Africa has witnessed many protests on issues ranging from poor or no service delivery, among various other issues. Such initiatives should be one of the focus areas for municipalities as they instil confidence, assuring citizens that the local sphere is the coalface of service delivery.”

Stellenbosch reopens township corridor

The Stellenbosch Local Municipality has reopened an economic and tourism corridor in the township of Kayamandi to unlock more opportunities in the region, writes Dales Hes

The Kayamandi Corridor was first opened in 2008 for entrepreneurial, tourism and arts and culture activities, but has experienced various challenges, ranging from vandalism of facilities to criminal activity. Late last year, Stellenbosch executive mayor Gesie van Deventer reopened the facility following an extensive rebuilding effort after recognising that establishing a safe, sustainable, modern facility was key to unlocking economic opportunities. The construction and upgrading work took six months and cost R4.7-million. The project included the replacement of walls, fencing, floors, electrical and plumbing systems, repair of structural damage, a full repaint and the installation of canopies for informal traders, CCTV cameras, LED floodlights and fire equipment. The municipality envisages that the new corridor will act as an easily accessible space for residents to engage with the municipality, have community gatherings, host concerts, lease office space and sell local produce and products. The four ward offices of Kayamandi will also be housed at the facility.

The municipality’s local economic development department has now embarked on a project to advertise the available spaces and opportunities at the corridor to small business owners, vendors and entrepreneurs in the area.

The community is encouraged to take ownership of the venue and all its facilities. “Permanent security has been appointed at the facility, and we will ensure that our law enforcement conducts regular visits,” said van Deventer at the launch. It is envisaged that the new facility will be a similar success story to the CoCreate Hub, which was created through the transformation of the disused Victoria Street Clinic. The hub offers free trading space to 31 vendors and also offers local entrepreneurs the opportunity to grow their businesses through the Ranyaka Community Transformation’s Building Business programme.

Mayor Gray received strong support for the idea from the multiparty council of the municipality that adopted the resolution in December last year.

“Every councillor voted in favour of the resolution. This is indicative of the collaborative stance that the municipality has taken towards tackling the problem of gender-based violence,” says Gray.

Gray says the house in Magaliesberg would undergo refurbishment to better suit the needs of victims, and the local municipality was working with the local and provincial departments of social development to develop an upliftment programme.

“The facility will have an upskilling centre that will equip the residents with skills, whether in sewing, agriculture, business management or anything else that can help to empower them,” he explains.

The response to Gray’s written questions to the former Gauteng Department of Human Settlements, Cooperative Governance and Traditional Affairs member of the executive committee, Paul Mashatile, revealed that an ordinary municipal

Mayoral residence to be converted into safe house

In a victory in the fight against gender-based violence, the Mogale City council in Gauteng unanimously agreed to adopt a resolution proposed by executive mayor Tyrone Gray to convert the mayoral residence into a safe house and skills development centre for victims of abuse, writes Dales Hes

councillor. This means that the councillor was enjoying privileges he did not deserve, including free accommodation, security services, garden services and the maintenance of the mansion,” Gray says.

He adds that the conversion was also part of the city’s plans to revitalise several community assets that had become dysfunctional.

councillor had occupied the residence for 14 months in 2017 and 2018, going against the guidance stipulated in SALGA’s Mayoral Handbook.

“No lease agreement for the occupation of the Mayoral House was signed between the municipality and the

On 1 February, the city opened the newly constructed Krugersdorp Taxi Rank, which will provide commuters with access to 22 destinations across the municipality. Located on the corner of Fountain and Pretoria Streets, the taxi rank falls under a greater project to regenerate the central business dstrict and improve and expand public transport facilities.

Revamped trading facilities at the Kayamandi Corridor.

Tyrone Gray

Bonitas wins Medical Scheme of the Year

At the inaugural News24 Business Awards ceremony in Cape Town this month, Bonitas – the second largest open medical scheme in South Africa – was awarded Medical Scheme of the Year.

News24 recognised companies and CEOs doing excellent work in building their businesses while also going above and beyond in strategic leadership, transparency and building a better South Africa.

News24 editor-in-chief Adriaan Basson says: “From our engagement with the corporate sector, we are well aware that some companies do more than others when it comes to communication, leadership and taking on responsibility.

“The awards were the culmination of two years of planning and hard work that started with a question we have been grappling with for some time: how do we recognise companies and CEOs who are doing excellent work in building their businesses while also going above and beyond in innovation, strategic leadership, client service, transparency and building a better SA?”

The News24 Business team of journalists also assessed product offerings, consumer platforms and corporate social investment initiatives. Transparency, media relations and public relations were also evaluated.

“To audit the inputs and the weightings, an actuarial consultant was employed to confi rm the winning parties in each category,” says Basson.

“Our team of journalists gave Bonitas a perfect score for how easy it was to understand its offering. Bonitas received an outstanding assessment of its platform and

communication.” The Scheme also received high marks in other areas of assessment.

Bonitas principal officer, Lee Callakoppen, dedicated the award to Bonitas’ members. He said: “Every single day, healthcare is a very emotive aspect. Illness is a challenging time and we’ve also just come out of a global pandemic, which highlighted the importance of having access to quality healthcare. But Bonitas is driven to help members ‘get out of sickbeds’ and take care of their health.”

OTHER WINNERS

• Royal Bafokeng Platinum’s long-serving CEO, Steve Phiri, was named News24’s first CEO of the Year.

• Woolworths is the Company of the Year.

• Investec is News24 Bank of the Year.

• Sanlam is News24 Long-term Insurer of the Year.

• OUTsurance is the Short-term Insurer of the Year

For more information: 0860 002 108 www.bonitas.co.za @BonitasMedical

Scan this QR code to go directly to the Bonitas website.

“Our team of journalists gave Bonitas a perfect score for how easy it was to understand its o ering. Bonitas received an outstanding assessment of its platform and communication.” – Adriaan Basson

Bonitas Principal Officer, Lee Callakoppen, received the award for Medical Scheme of the Year. He is pictured alongside Business editor, Helena Wasserman, who presented the awards.

iLembe municipalities able to deliver during disruptions

A business continuity plan for the municipalities within iLembe district is almost ready for validation, writes James Stewart, business continuity specialist consultant at SNG Grant Thornton

Business continuity has become a buzz phrase over the past few years, more especially on 26 March 2020, when South Africa entered alert level 5 lockdown as part of government’s COVID-19 Risk-Adjusted Strategy. This very sudden lockdown meant that many organisations and businesses had to close, and those with no proper business continuity arrangements, found themselves wanting badly, regardless of size or sector. Business continuity is nothing new; it can be traced back to the 1970s.

It is defined by the ISO22301 standard (2018) as “the capability of the organisation to continue delivery of products or services at acceptable predefined levels following disruptive incident”.

A MULTISTAGE PROCESS

The business continuity journey with iLembe District followed the Business Continuity Management (BCM) Life Cycle (Good Practice Guidelines of 2018-BCI). Before any Business Continuity Plan (BCP) can be developed, you must know and understand the business operations of the entities. A Business Impact Analysis (BIA) is conducted to help clarify what is required. BIA is defined as “the BIA identifies the business continuity requirements, providing information to determine the most appropriate business continuity solutions. The BIA identifies the urgency of each activity undertaken by the organisation by assessing the impact over time by any potential or actual disruption to this activity on the delivery of products and/or services”.

From a consulting aspect, the analysis stage is about gathering information of what

is most critical for the day-to-day business operations, and what the dependencies are – whether related to system or application, equipment, staffing or even external.

Also determined was how soon business operations would need to resume following a disruption, including any potential risks. Every municipal resource we engaged with demonstrated a huge commitment to this process.The end goal is to have a districtwide BCP with more agile and resilient municipalities in place. This has already been drafted and is almost ready to share with the municipalities for review.

The final stage of this journey will be to have all the role players, such as the plan owners, team members and co-ordinators, come together for a two-day workshop (scheduled for 8–9 December). The BCM life cycle requires that the plan be validated and key aspects such as roles and responsibilities and recovery/relocation requirements walked through and exercised to ensure that the plan is deemed “fit for purpose”. However, while this may be the final stage, it is not the end of the journey. Business continuity must always be seen as a living process, and when departments hold regular meetings, BCM should always be an agenda item.

UPDATES ARE NECESSARY

As responsibilities, business activities or resources change, the BCP and the BIA must be updated. An annual review, as a bare minimum, should also always take place following the BCM life cycle.

BCM has been around for many years and is perhaps partially associated with the term “disaster recovery”, which is more related to the ICT space than business operations. Business continuity has a place in all sectors. It is highly commendable that all the municipalities within iLembe District have taken this crucial step, especially from a top-down approach.

Having a workable BCP sends a strong message not only to the municipal staff that you care about their wellbeing, but also to communities, stakeholders and suppliers. While BCM was a small part of the overall Vuthela iLembe LED Support Programme, it demonstrates what can be achieved when all the role players are brought together and provides a great foundation for others to follow. Business continuity requires everyone’s involvement in the process, not just ICT, HR, or senior management.

District steps up for local service delivery

In an encouraging example of sound financial management, the Frances Baard District Municipality used savings to purchase service delivery trucks for the local municipalities under its jurisdiction, writes Dale Hes

During the tabling of its 2021/22 adjustment budget, the Frances Baard District Municipality (FBDM) recorded savings of R5-million on its operational and capital budget. As a result, the municipality used the funds to purchase service delivery trucks – one refuse removal truck each for the Sol Plaatje and Dikgatlong local municipalities and a service truck for the Magareng Local Municipality.

TACKLING THE WASTE CHALLENGE

“The two skip trucks for Dikgatlong and Sol Plaatje were procured to assist the local municipalities with refuse removal. Littering and waste management are a challenge in these municipalities. These trucks will assist in reducing these challenges through regular waste collection. The district aims to assist the municipalities with service delivery and keep the towns and streets clean,” said SALGA Northern Cape spokesperson Dibandlela Nkume.

Handing over the truck to the Sol Plaatje Local Municipality in Kimberley, FBDM executive mayor Unondumiso Buda said that the district municipality wanted to go beyond just allocating funds to the local municipalities. With illegal dumping presenting a particular problem, the FBDM decided to step in.

“As the district municipality, we usually give funds to the municipality to assist them, however, we have noticed that we do not always get value for the money we give. This way of addressing the

challenges in the municipality does not mean we will no longer give funds to the municipality; it is part of the tangible changes we are making for service delivery to continue,” said Buda. She went on to urge the municipality to enforce its waste management bylaws.

“There are bylaws on how the municipality should handle challenges such as illegal dumping. The municipality must impose those bylaws to eradicate illegal dumping in the city.” She added that the donations were the first of several initiatives to tackle the issue present in all of the district’s local municipalities, with plans in place to donate refuse bins as well.

Sol Plaatje executive mayor Kagisho Sonyoni said that the municipality would be paying increased attention to clamping down on illegal dumping. “These behaviours need to change. Our people need to take pride in their city and ensure their streets are clean. We will come down hard on those found guilty of such actions,” said Sonyoni.

BOLSTERING SERVICE DELIVERY

The truck purchased for the Magareng Local Municipality will be used for both refuse removal and general loading work around the municipal seat of Warrenton. “This municipality is also struggling with refuse removal, and this truck will assist with that. However, the truck is not limited to this service only, as it will also assist during road maintenance, clearing and grubbing work, as well as cleaning campaign programmes,” said Nkume.

Nkume explained that the new vehicles were vital for achieving the

local municipalities’ service delivery mandate.“Key to the services the municipalities render to their citizens is ensuring that refuse is collected and waste disposal is managed. Citizens pay rates and levies to the municipality for these services. Therefore, purchasing these trucks contributes to ensuring much-needed refuse collection and to a cleaner, green environment.”

SUPPORT PROGRAMMES

SALGA plays a key role in supporting all 31 local municipalities in the Northern Cape. Some of the high-impact programmes being implemented are within the spheres of the built environment, trading services and municipal capabilities.

“The Built Environment Unit is currently facilitating a roads and transport support programme on the development of municipal bylaws that form part of policy development and strategy formulation. These bylaws focus on roads and transport issues. This unit is also focusing on advocacy and lobbying to ensure the proper billing of independent power producers that operate within the province,” Nkume said.

SALGA’s Trading Services Unit is also involved in a support programme for municipalities focusing on Green Drop audit outcomes rectification for the 2021/2022 financial year, where four municipalities have been identified for wastewater treatment works operations.

FBDM executive mayor Unondumiso Buda (centre) hands over a refuse removal truck to the Sol Plaatje Local Municipality.

Calling for greater support of local councillors

With the growing number of municipal councillors under attack, SALGA advocates for better security, writes Tiisetso

Tlelima

THE IMPORTANCE OF PARTICIPATORY DEMOCRACY

South Africans are known to vent their anger over the lack of service delivery on municipal councillors, whether by threats of violence, torching their homes, or murder.

Since the 2021 local government elections, at least 54 councillors and municipal officials have been killed and more than 300 murdered over the years. While the individuals responsible should be held accountable, Michael Chauke, SALGA’s specialist in inclusive governance and councillor welfare, says the growing trend of councillor killings is an indictment of the government’s inability to provide adequate protection for councillors.

In 2017, SALGA released a study Violence in Democracy: A Study on Damage to Property, Intimidation, Threats, Harm, and Killing of Councillors and Municipal Officials, chronicling intimidations, loss of life and the destruction of property in the local government sector.

“The figures mentioned in the study, of councillors, municipal managers, senior managers and ward committees, murdered, intimidated, threatened, and whose properties and assets have been destroyed, are not of fictional characters, they are of real people and are extremely shocking,” says Chauke. “Law enforcement agencies should and must do more to protect the lives and properties in the sector.”

ADVOCATING FOR COUNCILLORS

SALGA runs a welfare and support programme that lobbies for fair remuneration, allowance and benefits for councillors. Councillors are underpaid and, in some rural municipalities, are graded as part-time councillors. “They are called part-time workers, but when citizens have

problems, they can’t say ‘it’s 4pm the office is closed’,” explains Chauke.

SALGA’s welfare and support programme advocates for councillors’ rights, ensures they are tax-compliant and provides them with financial management skills so they don’t face financial hardships at the end of their term.

In recent years, SALGA has been vocal about the need to protect councillors from eminent attacks. As it stands, only mayors and speakers receive protection in the form of bodyguards, whereas councillors only get security after the SAPS conducts a threat risk assessment. “That process needs to be streamlined and more agile because it takes a long time for a risk assessment to be concluded; by that time, a person’s life has been lost,” says Chauke. He adds that councillor killings pose a risk to local government as they may deter citizens from standing for public office.

Often, councillors are blamed for issues that should be addressed at provincial and national level. Chauke attributes this to insufficient attention paid to civic education since the dawn of democracy. “Local government is at times unfairly expected to provide services that are not a competency of local government,” explains Chauke.

“As the closest sphere to citizens, when communities get frustrated, they vent their frustrations at the sector.” He believes that better collaboration

Michael Chauke, SALGA’s specialist in inclusive governance and councillor welfare, says recurring and increasing community-based protests are possibly the starkest indicator of challenges and failings of participatory governance.

At the same time, significant strides have been made in recognising the importance and benefits of involving communities in municipal governance affairs.

Many municipalities go to great lengths to involve their diverse communities in municipal governance processes and programmes through social media and apps. But Chauke asserts that there needs to be a move away from the generally held government view that ward committees are the only avenue through which public participation is facilitated.

Municipalities must also use the available technological platforms for community members to lodge complaints. “The timely response by municipalities to community concerns will go a long way to mend what has at times become a fragmented relationship between municipalities and communities,” he adds.

Follow Michael Chauke onTwitter: @mikechauke_mc

in responding to challenges between the three spheres of government is necessary to curb the scourge of councillor killings.

Other strategies could be undertaken to ensure that ward councillors are safer, such as establishing platforms to engage on issues relating to councillors’ welfare and support, ensuring that communities are educated on the roles and responsibilities of different spheres of government through roadshows and campaigns, and developing a safety and security manual for councillors.

“As the closest sphere to citizens, when communities get frustrated, they vent their frustrations at the sector.”

– Michael Chauke