APRIL | 2021
SA STEPS UP
COMBATING COVID WITH AGILE CHANGE & DIGITAL INNOVATION
CSI SOCIAL IMPACT
The importance of giving during a global pandemic
ASSISTING LOCKDOWN The defence force: a key player in the fight against Covid-19
COVID-19 UPDATE
South Africa’s vaccination plan set to gain speed over the next few months
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Contents
APRIL 2021 | ISSUE 3
Editorial 12 | Africa Union 2063 Unpacked Steps we are taking to create the Africa we want
40 | Empowerment Journey South Africa’s journey towards diversity & inclusion thus far
20 | Digital Transformation Unlocking potential: How digitisation can transform the public sector
50 | The Return to Classrooms A new normal in schooling sees the safety of staff at the forefront
22 | SA Public Leaders New leadership to bring diversity to the National Prosecuting Authority
52 | CSI Social Impact The importance of giving during a global pandemic
30 | Environmental Issues Pollution, Plastic - what are the solutions?
54 | Public Customer Service Zooming in on service delivery & customer service in SA
36 | Combating GBVF SA’s Private Sector commits to GenderBased Violence and Femicide (GBVF) Response Fund 34 | Legal Matters The Constitutional Court: A pillar of democracy and transformation
16
60 | Buying Local Supporting local markets is more important than you think 62 | Multinationals & Investment Speeding up economic growth through automotive investment
48 | Assisting Lockdown The defence force: a key player in the fight against Covid-19
Features 10 | Addressing The Nation President Cyril Ramaphosa ? 14 | Covid-19 Update South Africa’s vaccination plan set to gain speed over the next few months 16 | Focus on Healthcare A year after the pandemic, healthcare workers continue to rally against Covid-19 24 | Trailblazer Dr. Tlaleng Mofokeng - dedicated to empowering women across our nation
4 | Public Sector Leaders | April 2021
26 | Women in Leadership Phindile Baleni - SA’s first female director-general in the presidency 44 | Focus on Agriculture Acknowledging the growth of SA’s Agricultural Sector 46 | Provincial Focus Breaking new ground: the Free State is investing in agricultural transformation 56 | In Other News Property and the Pandemic a win-win situation?
70 | Upcoming Events What to look out for this Freedom Month 66 | Financial Fitness Understanding municipal financial management
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48
34
24 CREDITS PUBLIC SECTOR LEADERS The Digimag For Leaders In The South African Public Sector Advertising Sales, Distribution and Subscriptions Top Media & Communcations (Pty) Ltd Tel: 086 000 9590 Info@topco.co.za | www.topco.co.za CEO Ralf Fletcher TOPCO STUDIO Production Director Van Fletcher van.fletcher@topco.co.za Group Editor Fiona Wakelin fiona.wakelin@topco.co.za Assistant Editor Charndré Emma Kippie Contributors Jessie Taylor
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EDITOR’S LETTER
BY FIONA WAKELIN
Letter from the Editor Welcome to the April edition of Public Sector Leaders (PSL).
I
t is April – we are already a quarter of the way through 2021.! Tempus fugit . As time flies by, it is healthy to pause every now and then from the work at hand, and celebrate our achievements - and our potential.
In his letter to the country this week – From the Desk of the Presidency our President encourages us to do just that: “Too often, we get caught up in our immediate challenges and lose sight of our true potential. Our country has all of the ingredients that we need for economic success. We only need to recognise these, and put them to use,” - President Ramaphosa. April is, fittingly, Freedom Month, and dedicated to human rights. Freedom Day is the commemoration of the first democratic elections held in South Africa on 27 April 1994 - the first post-apartheid national elections which gave birth to our constitutional democracy It is a busy month for public sector leaders with our President participating in the Extraordinary Double Troika Summit of Heads of State and Government of the Southern African Development Community in Maputo, Mozambique; DP Mabuza attended the Liberation Struggle War Veterans meeting; President Ramaphosa and Deputy President Mabuza made an oversight visit to the Aspen Pharmacare sterile manufacturing facility and President Ramaphosa, in his capacity as Chairperson, chaired the 30th African Peer Review Forum of Heads of State and Government. Human rights and constitutional democracy are the golden threads which run through this bumper April edition of Public Sector Leaders. We celebrate our country’s first woman Director-General in the Presidency, Phindile Baleni; and provide you with a COVID update as well as a focus on our heroes, the frontliners, including the role the SANDF has played during the pandemic. We look at why, against all predictions, the property market has boomed – and celebrate the fact that schools have opened, at last. It would not be a human rights edition without an update on GBVF and in our regular feature “Legal Matters” we foreground the Constitutional Court, a pillar in our democracy. Whether you are in the public sector, the private sector, supply chain or an interested individual, PSL has something for you. We hope you enjoy the read.
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ADDRESSING THE NATION
APRIL 2021
I
n his letter to the nation on April
time, our country has propelled
Ramaphosa emphasised that this
with remarks about South Africa’s
destination for offshore customer
without the proactive efforts of
12, President Ramaphosa opened
recovery plan being forward-
looking – a time to “to forge a new economy in a new global reality.” Our President emphasised the opportunities for job creation
itself from a relatively unknown
service delivery, in the shadow of large competitors, such as India and the Philippines, to the very
forefront of the global industry.”
good news:
“Last week, South Africa was ranked first in the world as a destination
for global business services – often
Last week, South Africa was ranked first in the world as a destination for global business services
called business process outsourcing
He then outlined the four
from eight key sourcing markets,
destination for business services: a
– in a survey of over 600 executives
including Australia, Canada, France, Germany, Italy, Spain, the UK and the USA. This sector includes call
centres, technical support and back and front office services for major multinationals and South African firms. This is truly a remarkable
achievement. In a short space of
10 | Public Sector Leaders | April 2021
government and the sector over several years:
“Led by the Department of
Trade, Industry and Competition,
government has worked closely with
inherent in the digital economy and, in doing so, gave us some
would not have been possible
advantages our country has as a
sophisticated digital infrastructure, including mobile networks and
high-speed broadband; a young, dynamic and skilled workforce; a high level of English proficiency; and last, but not least, we are
positioned in a similar time zone to our key export markets. President
Business Process Enabling South
Africa, the industry association, to
market our country as a destination for investment, embarking on roadshows and campaigns
around the world to demonstrate our strengths and capabilities.
Government introduced the Global Business Services Incentive just
over two years ago to encourage investment and support job
creation in the sector. The incentive has been successful in reducing
costs and attracting new investors to South Africa. The Presidential
Employment Stimulus*, which we launched in October last year in
response to the economic impact
buyers and investors, the sector in
practitioners in the early childhood
expansion of this incentive.
its target of 100,000 new jobs by the
Presidency The Report reflects that
of the pandemic, supported the The stimulus has enabled the
creation of 8,000 new jobs in the
industry during the last two quarters, most of which have gone to
previously unemployed youth.” The SAYouth.mobi, is a platform
for the youth to access a range
of opportunities and is a recruitment
South Africa is on track to achieve
end of 2023 and 500,000 new jobs by the end of 2030.”
President Ramaphosa ended his letter exhorting us all to pause
from wrestling with our immediate challenges and celebrate our country’s true potential.
tool which forms part of the
*The Presidential
Intervention.
The Presidential Employment
Presidential Youth Employment
“The result of all these efforts is that
the sector in South Africa has grown at twice the global growth rate for the sector since 2014 and three
times faster than key competitors. It has added 40,000 jobs to the
economy since 2018, with young
people making up 82% of these new jobs and women comprising 65% of
Employment Stimulus
Stimulus was first announced
by President Cyril Ramaphosa
in his address to a joint sitting of Parliament on 15 October 2020
and a third progress report on this
be released once data for March 2021 is available.
Key highlights of the February progress report include:
• The number of opportunities
supported increased by 159,909
between January and February 2021, to a total of 593,076. This includes both jobs created or retained
and livelihoods supported, for all
programmes that are currently in implementation.
February 2021, for support grants
Presidency at the beginning of April.
of public employment programmes
competitive proposition to global
report for Phase I of the stimulus will
this year - was released by The
data available up until February
and attracts significant capital
the rise, and with a compelling and
reaching its targets. A final progress
• Over 25,000 applications from
“The Presidential Employment
investment. With global demand on
impressive progress in terms of
crucial initiative - which reflects
the workforce. The sector generates R1.9 billion a year in export revenues
development (ECD) sector.” – The
Stimulus is the most rapid expansion in South Africa’s history, in response to the economic impact of the coronavirus pandemic.
The stimulus supports
ECD facilities were received in
to 125,000 ECD workers. 140 civil society organisations assisted
with the application process and are conducting site verifications for unregistered centres. The
Department of Social Development is currently processing these applications.
both traditional
• The Department of Agriculture,
programmes, such
has now issued over 35,000
public employment as through the
natural resource management
programmes of
Land Reform and Rural Development vouchers for production inputs to farmers and is on track to meet its overall target.
the Department of
Design work is currently underway
and Fisheries and
stimulus, which has been allocated
Environment, Forestry the Welisizwe Rural
Bridges Programme,
and innovative forms of livelihood support, such as through
income support for
for Phase II of the employment
R11-billion in the 2021/22 financial
year. This will continue the important support that the stimulus has provided to individuals and
communities across South Africa. n
Public Sector Leaders | April 2021 | 11
AFRICA UNION 2063
BY CHARNDRÉ EMMA KIPPIE
AGENDA 2063 UPDATE
- The Africa We Want
The African Union Commission Africa’s framework for transforming the continent into the ‘global powerhouse of the future’, Agenda 2063, is a strategic master plan geared towards delivering on Africa’s goal for inclusive and sustainable development. This blueprint is a formal manifestation of the ‘pan-African drive for unity, self-determination, freedom, progress and collective prosperity pursued under Pan-Africanism and African Renaissance’.
The African Union’s Ten Year Plan of Action is ambitious and achievable. The conception of Agenda 2063 was led by African leaders who believed that a shift in focus needed to occur; a shift from the struggle against apartheid and the attainment of political
independence to: • Prioritising inclusive social and economic development • Fostering continental and regional integration • Creating democratic governance and peace • Ensuring security for all The vision for Africa’s future, laid out across a 50 year period from 2013 to 2063, was documented in a letter presented by the former Chairperson of the African Union Commission, Dr. Nkosazana Dlamini Zuma. International Year for the Elimination of Child Labour Most recently, The African Union (AU), in partnership with the International Labour Organisation (ILO), has launched the International Year for the Elimination of Child Labour in Africa. The launch was acknowledged with a three-hour virtual event which took place on Wednesday, 31 March 2021. This
12 | Public Sector Leaders | April 2021
virtual launch created a platform for African and multi-stakeholders to engage in conversations surrounding growth and existing issues in the continents fight against child labour. This event facilitated the transition from a commitment to action towards the achievement of the African Union Agenda 2063, as well as Sustainable Development Goals (SDG) Target 8.7. As the event proceeded, all partners dedicated to combating child labour talked thorugh their individual interventions and goals, each stipulating how they hope to positively contribute to the execution of measures set out by the African Union (AU). In a collaborative effort, each partner made their 2021 Action Pledges. “The African Union’s Ten Year Plan of Action is ambitious and achievable. Over 10 years (20202030), we will all work together to protect the rights of all, including children involved in child labour.
It is up to us to build the future of our continent”, said the Commissioner for Health, Humanitarian Affairs and Social Development, H.E. Amira El Fadil. What the statistics show Studies show that one in five African children were working in 2016 - a trend that still continues today. With the devastating effects of the Covid-19 pandemic, the continent witnessed more children forced into child labour. In fact, it has been estimated that just a 1% point increase in poverty will cause a rise of at least 0.7 percentage points in child labour. These circumstances pose a major concern to families, employers
Director-General. At the live event, panellists zoomed in on the vast scope of the problem in Africa and discussed many underpinning issues surrounding access to quality education for all, fostering social protection, creating decent work opportunities for adults, and raising awareness. Putting plans in place Ms Cynthia Samuel-Olonjuwon, ILO Assistant Director-General and Regional Director for Africa, made valid points regarding the collaboration between African Union (AU) and International Labour Organisation (ILO) partners, stating: “This should not be seen as a cost. It is an investment. An investment in creating a better future for all.”
and workers across Africa. “We must protect children’s rights and encourage their return to school. The African Union’s 10year plan of action must be implemented at all levels to foster the continent’s development and protect children’s rights”, commented Guy Ryder, ILO
Partners, investors and individuals at regional, national and organisational levels, have been inspired to pledge their commitment to cause by pin pointing tangible actions they will take by December 2021 in order to assist in ending child labour. The final date for the submission of all pledges is 15 May 2021. As part of the 2021 campaign, key players have been invited to document breakthroughs and goals achieved throughout the year, using video recordings, interviews, and blog posts and impactful storytelling. As part of the next steps, the Minister of Labour of the Republic of South Africa, H.E. Thembelani Thulas Nxesi, announced that
the 2022 Global Conference on Child Labour will be held in Africa for the first time, and hosted by South Africa. The Flagship projects include, amongst others infrastructure, education, science, technology, arts and culture, as well as initiatives to secure peace on the continent. The flagship projects of Agenda 2063 focus on the following: • • •
• • • •
• • • • • • • •
Integrated High Speed Train Network Formulation of an African Commodities Strategy Establishment of The African Continental Free Trade Area (AFCFTA) The African Passport and Free Movement of People Silencing The Guns By 2020 Implementation Of The Grand Inga Dam Project Establishment of a Single African Air-transport Market (SAATM) Establishment of an Annual African Economic Forum Establishment of The African Financial Institutions The Pan-african E-network Africa Outer Space Strategy An African Virtual And E-university Cyber Security Great African Museum Encyclopaedia Africana
Find more information about the Ten Year Action Plan on Eradication of Child Labour, Forced Labour, Human Trafficking and Modern Slavery in Africa (20202030), see Agenda 2063-SDG Target 8.7 at: www. au.int n
Public Sector Leaders | April 2021 | 13
COVID-19 VACCINE UPDATE
BY JESSIE TAYLOR
Jabs in sight: South Africa’s vaccination plan set to gain speed over the next several months
T
he South African public could start receiving their jabs against the Coronavirus as early as next month. This was announced by President Cyril Ramaphosa’s Cabinet following a virtual cabinet meeting on Wednesday 24 March, in which deadlines for South Africa’s threephased vaccination roll-out plan were released. The plan aims to begin rolling out vaccines to essential workers and those older than 60, as South Africa faces down the potential of a third wave this winter. Prioritising the healthcare system The national Department of Health intends to start the second phase of the vaccination, which will focus on vulnerable groups in society, from 18 May. The vaccination rollout has been structured into three phases. The first phase,
which is currently underway, aims to vaccinate healthcare workers. This phase, which targets over 1,5-million (608 295 registered) healthcare workers across the country, started on 17 February and is scheduled to run for three months, until 17 May.
The second phase will be implemented over six months, between 18 May and 17 November. “The Department of Health is on track to vaccinate all healthcare workers by the end of Phase 1”, Cabinet said in a meeting. Phase 1 was initially delayed after the first batch of vaccines received by the South African government, the Oxford-AstraZeneca CoviShield, was found to be less effective against a predominant Covid-19
14 | Public Sector Leaders | April 2021
variant found in the country. The expedited roll out of the vaccine doses, an open-label research programme, called Sisonke, was launched to make the Johnson & Johnson vaccine immediately available to healthcare workers. Sisonke allows the vaccine to be available under research conditions while the vaccine is undergoing the licensing process in South Africa. The South African Health Products Regulatory Authority (SAHPRA) has approved the use of the Johnson & Johnson vaccine for the Sisonke Programme while it processes the full licensing. It is expected that vaccination registrations with SAHPRA will be completed in April. At the moment, under the Sisonke programme, South Africa receives around 80 000 doses every two weeks. An additional shipment of around
200 000 doses is expected to arrive in April. The vaccination roll-out programme is currently running at 54 vaccine sites across the country, and over 200 000 healthcare workers have already received doses of the vaccine. The programme is currently delivering between 5000 and 10 000 doses a day to healthcare workers, which authorities say is on track with their planned targets.
These sectors include mining, hospitality, the taxi industry, retail (including the informal sector such as spaza shops) and media. These sectors will be refined in consultation with the National Economic Development and Labour Council (Nedlac).
Targeting essential services However, the rate of vaccination is expected to increase during the second phase of the rollout plan and will likely increase to between 120 000 and 150 000 doses delivered daily. The second phase will be implemented over six months, between 18 May and 17 November.
During the second phase of vaccinations, the health department will increase the number of vaccination sites to 2085. Private sector sites will be included, to improve the efficiency and speed of the vaccination rollout programme.The second phase of the rollout is also expected to include those with comorbidities or those older than 60, as well as those living in congregate settings such as care facilities and correctional centres.
During this period, the health department aims to vaccinate over 13 million South Africans that fall into vulnerable groups or are classified as essential workers. This includes essential workers and those who work in sectors that are critical for economic recovery.
“Cabinet would like to reassure South Africans of the capacity of the Department of Health, in partnership with the private sector, to undertake a mass vaccine rollout when Phase 2 gets underway,” the Cabinet said in a statement. The first two phases of the
rollout plan will focus on reducing pressure on the healthcare systems, preventing deathsw and ensuring the economy can recover from the pandemic. Once this is in place, the remaining population will become the focus of the programme, to ensure 67% are vaccinated. This percentage is the number health experts agree will ensure population or herd immunity against Covid-19. The South African government had initially hoped to have the vaccinations completed by the end of the year, but this deadline has been moved out to early 2022. Phase 3 of the vaccination rollout plan will also run over three months and will aim to vaccinate those not included in the first two phases – an estimated 22-million people. This phase will run from November to February next year.n
Public Sector Leaders | April 2021 | 15
FOCUS ON HEALTHCARE
BY JESSIE TAYLOR
Celebrating healthcare & frontline workers On the frontline: A year after the pandemic, healthcare workers continue to rally against Covid-19
S
outh Africa’s healthcare workers, along with other essential frontline workers, face the highest risk for infection from the Coronavirus. However, these workers have continued to hold the line in the county’s fight against the pandemic. As South Africa stares down a potential third wave, Minister of Health Dr Zweli Mkhize has lauded the efforts of healthcare workers, saying they have helped lessen the effects of the Covid-19. Marking the first anniversary since Covid-19 hit South African shores, Hon. Mkhize recalled how his morale was boosted by nurses at Grey’s Hospital in Pietermaritzburg,
where the first case of Covid-19 was treated. A team of nurses started signing that they did not fear the virus and would be ready to nurse all patients – an act that filled the health minister with hope.
Frontline workers have been prioritised for the country’s vaccine rollout
Hon. Mkhize has publicly thanked all frontline workers, including doctors, nurses, physiotherapists, psychologists, medical technicians, pharmacists, porters and general workers, lab technicians,
16 | Public Sector Leaders | April 2021
environmental health practitioners, dentists and dental technicians and optometrists for their service. He has also remarked on their commitment and resilience. It is these characteristics that have been most marked in the response by healthcare workers. Many have been left exhausted, physically and mentally, by the toll the virus has taken, but have continued to serve at healthcare facilities. “To those of our health workers who have braved it all to face the challenge of our COVID-19 enemy, we say thank you, we say thank you for your dedication,” Hon. Mkhize said.
“We have seen … health workers holding each other, comforting each other and crying sometimes when they lose one of their colleagues … your hard work has not gone unnoticed. We want you to know SA is grateful for you, the African continent is grateful to you and humanity as a whole is grateful to you. You are the unsung heroes of our struggle against an unseen enemy. You have not flinched, you have made sure that humanity is saved.” First responders Despite personal risks, healthcare workers are among those at highest risk for contracting any virus or infectious diseases, according to the National Institute of Occupational Health, and this is no different with Covid-19. One of the classes of healthcare workers most impacted by the pandemic has been the healthcare system’s first line of defence, and those who provide the most one-on-one care to ill patients: nurses. Nurses have been a critical component in the treatment of Covid-19. They make up around 65% of the healthcare workforce and form the backbone of South Africa’s health system, according to a report released by the Human Sciences Research Council. “Nurses are the backbone of any health system. Today, many nurses find themselves on the frontline in the battle against Covid-19. This report is a stark reminder of the unique role they play, and a wakeup call to ensure they get
the support they need to keep the world healthy,’ the report stated. The report found that healthcare workers across all provinces felt they were at risk for contracting Covid-19. However, nurses believed they were at a higher risk, a perception that has been proven correct based on the infection rates among healthcare workers. While reports on the number of healthcare workers have been sporadic, in August last year over half of all infections among healthcare workers had been in nurses. Comparatively, around 6% of the positive Covid-19 cases had been recorded in doctors. According to the report, healthcare workers felt their highest risk factors for infection were, after their profession, the general public not following guidelines and a lack of personal protective equipment. But a key concern for healthcare workers is passing the virus on to their loved ones – and nurses were the most concerned about this, the report found. Also, one in five healthcare workers said they were severely distressed by the idea of potential infection. The public sector had been overwhelmingly affected by infections among healthcare workers, with more than 70% of cases reported in the public sector. However, South Africa’s cases remain low compared to the global average – possibly as a result of strong efforts by the government to bolster the health services. According to a statement released by the national
Department of Health, the overall infection rate amongst health care workers as compared to the total number of cases identified nationally is 5%. This is well below the global average of 10%. To address the concerns of healthcare workers, and support the healthcare system, these frontline workers have been prioritised for the country’s vaccine rollout. As of the beginning of April, almost 270 000 healthcare workers had been vaccinated – just one of the ways the government is demonstrating its commitment to protecting frontline workers. “This workforce remains at the front line of our battle against Covid-19 and it is in our interest as government to ensure that they are protected,” Hon. Mkhize.n
Dr Zwelini Lawrence Mkhize Minister of Health
Public Sector Leaders | April 2021 | 17
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18 | Public Sector Leaders | April 2021
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itizens are at the heart of why
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the government does what
recent proliferation of smart devices and increased connectivity, public
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their local representatives, nearby
solutions currently implemented in the government on its digital transformation journey. n
Contact: Email: sales@boxfusion.co.za Tel: (012) 940-1300. Website: www.boxfusion.co.za
service points such as clinics and
police stations, and follow municipal accounts on social media.
Public Sector Leaders | April 2021 | 19
DIGITAL TRANSFORMATION
BY JESSIE TAYLOR
UNLOCKING POTENTIAL: How digitisation can transform the public sector
D
igital transformation has become a necessity for almost all sectors, and government services are no exception. Globally, governments and companies have looked to digitise their processes, cut costs, increase revenue and become more accessible. The shift towards digital solutions has also been prioritised in service delivery by the South African government. Although the pandemic has highlighted the need for more remote access to various public sector services, the government has been developing its digital platforms for the last five years. Turning to technology for transformation e-Government – the innovative use of communications technologies – is considered a
pivotal enabler for governments to deliver better services, more efficiently, while improving their relationship with businesses and citizens. A digital government uses ICT services and digital technologies to make government processes more efficient, strengthen public service delivery and enhance participation by citizens in governance matters.
The strategy identified around 150 government services that could be considered for digitisation. But digital transformation is about more than just making government services accessible: South Africa could add over R2-trillion to society through digitisation, according to
20 | Public Sector Leaders | April 2021
research. Accenture and the World Economic Forum (WEF) developed a framework to measure the impact of digital technology on government services, business and society. This framework can be used to look a decade ahead at the value these technologies can create. Using the framework, Accenture established that using digital technology in government services could add over R2 trillion in value to the South African economy. By comparison, digital technology across industry sectors has the potential to add around R3-trillion. The framework’s measurements estimated that the government sectors that could house the biggest change through digitisation were public infrastructure maintenance, public administration and healthcare – these three sectors
alone had the potential to add over R1.2 trillion to society over the next decade. “Digital transformation of South Africa’s government services is likely to create the highest value for society through its impact on economic activity, productivity and service delivery,” the Accenture report found. A people-centred approach The government’s strategy to digitise services aims to create a people-centred, developmentorientated and inclusive digital society. This was expanded on in the National e-Government Strategy, created to guide the digital transformation of public service in the country, in so doing creating an inclusive digital society. The strategy identified around 150 government services that could be considered for digitisation. Digitising the public sector is such a priority for the government, that the National Development Plan for the country states that by 2030, the government will
make extensive use of ICT to engage with and provide services to citizens. The rollout of this strategy is already underway and several government services have already been digitised. This includes the South African Revenue Service (SARS) e-filing platform, a sophisticated system for tax management that has shown good results on tax collection; the Department of Home Affairs’ Smart Identification Card System for citizens, rolled out in partnership with the banking sector, which boasts better security features for identity documentation; and the integrated National Transport Information System (NATIS), which allows for the national registration and renewal of licences. These are all examples of ways the South African’s government is making its services more accessible to the public – a need that has been highlighted by the restrictions on movement generated by the Coronavirus and lockdown regulations. In a world where physically queuing to access services has become a
last resort, the move to digitisation has become a key focus for changing the way citizens interact with the public sector. SARS e-filing: A study in the effectiveness of digitisation The main function of SARS is the collection and administration of all national taxes, duties and levies. However, the annual submission of a tax return previously involved the tedious completion of paperwork. The introduction of e-filing changed how South Africans interact with SARS, by creating an electronic tax return. In 2006, SARS started developments to expand the e-filing system to include tax returns, initially only processing 40 000 returns. In 2007, the process was updated to allow citizens to file their own returns. This saw close to one million electronic submissions in the first year. This number has continued to increase year on year, with around 12-million returns (over two thirds) filed via e-filing or mobile platforms. n
Public Sector Leaders | April 2021 | 21
SA PUBLIC LEADERS
BY JESSIE TAYLOR
LEADERSHIP IN FOCUS: Facilitating positive change across SA
New leadership to bring diversity to the National Prosecuting Authority Four senior appointments to the National Prosecuting Authority (NPA) will lead the charges in ensuring the right to justice for all. The NPA, which was established under the Constitution in 1998, has the power to institute and conduct criminal proceedings on behalf of the State. The NPA is also mandated to carry out any necessary functions, such as investigating, related to conducting such criminal proceedings. The appointments will build the leadership of the NPA with a diverse and representative team of world-class and trusted experts, said President Cyril Ramaphosa. “These appointments are essential for the efficient functioning and rebuilding of the
NPA as part of the fight against serious crime, including sexual and gender-based crimes and corruption, and as a contribution to deepening the capability of the state”, President Ramaphosa said.
The RAASA will now require all members to be legally trained
When the successful candidates assume office, it would mark the first time the national director of public prosecutions will be surrounded by a full complement of senior leaders. Advocate Anton du Plessis has been appointed as the Deputy National Director of Public Prosecutions: Strategy, Operations and Compliance. The former prosecutor led the NPA’s roll-out of specialised
22 | Public Sector Leaders | April 2021
sexual offences courts and Thuthuzela Care Centres. He is a globally recognised criminal justice, serious crime and rule of law legal expert, with over 20 years of management and operational experience in the field. The President has appointed Advocate Lebogang Dineo Baloyi as Special Director of Public Prosecutions: Specialised Commercial Crime Unit. Baloyi has been acting Special Director of Public Prosecutions since October 2019. Baloyi was previously appointed at the Scorpions, where she conducted and directed the investigation and prosecution of criminal cases. Advocate Bonnie Currie-Gamwo has been appointed as Special Director of Public Prosecutions: Sexual Offences and Community Affairs Unit. During her 22-year tenure, Currie-Gamwo has specialised
in gender-based violence and matters involving vulnerable groups, including women, children and persons from the LGBTQI community. “Her skills as a litigator have secured the successful prosecutions of several child rapists, child murderers, traffickers and perpetrators of femicide”, President Ramaphosa. In the final appointment, Advocate Priya Biseswar has been named as Special Director of Public Prosecutions: Asset Forfeiture Unit. Biseswar has more than 23 years of experience, including as a civil court litigator for the Asset Forfeiture Unit (AFU). She has vast experience in dealing with international obligations in respect of international conventions.
Safeguarding asylum seekers’ rights: A new partnership seeks to reduce application backlog in just four years A partnership with the United Nations will aim to eliminate a backlog in the asylum seekers system, in turn allowing them faster access to their rights. The agreement with the United Nation High Commissioner for Refugees (UNHCR), signed by Minister of Home Affairs, Dr Aaron Motsoaledi, will see an injection of around R147-million into upgrading South Africa’s asylum seekers application system. There is an estimated backlog of 153 000 cases, according to the Refugee Appeal Authority of SA (RAASA), an independent statutory administrative tribunal tasked with ensuring that appeal cases are dealt with efficiently, effectively and in an unbiased manner. The Auditor General of SA has said, with the current system in place, it could take as long as 68 years to clear the backlog without taking new cases. According to Motsoaledi, the backlog began in 2008 during the global financial crisis. Before this, the department had been able to clear the annual amount of asylum applications, which ranged between 11 00 and 53 000. “Things changed for the worst in 2008 when the number of applications shot up
nearly fourfold to 207 206. Another 223 324 applications were received in 2009. These numbers overwhelmed a system which was functional in dealing with 53 000 applications a year. Suddenly, the system had to process over 400 000 applications which came in just two years”, said Motsoaledi. The South African government has already undertaken some changes to improve the application process. The RAASA will now require all members to be legally trained, and cases can now be heard by one member instead of three. The partnership with UNHRC will bring in financial and technical support to help RAASA eliminate the backlog and establish a robust asylum appeals management programme. The funds will allow for the employment of over 30 RAASA members, who will be appointed and trained over the next six months. A portion of the money has been set aside to acquire IT tools the team will need to undertake the task. “Viewed collectively, these initiatives will help to protect the rights of applicants while reminding them of their responsibilities”, said Motsoaledi. “This underlines South Africa’s continued commitment to offering protection to people who genuinely need it as they seek refuge from persecution in their home countries.” n
Public Sector Leaders | April 2021 | 23
TRAILBLAZER
BY CHARNDRÉ EMMA KIPPIE
WOMEN’S RIGHTS ARE HUMAN RIGHTS!
W
ith Freedom Month, the country celebrates democracy, freedom and autonomy, and constitutional rights. In alignment with these themes, gender equality remains a crucial feature of democratic societies - a key area of concern in South Africa, especially.
Thus, advocate, medical practitioner and author of bestselling book Dr T: A Guide to Sexual Health and Pleasure (2019), Dr. Tlaleng Mofokeng, has dedicated her life and platform to empowering women across our nation, educating them on sexual health and emotional well-being, and improving access to quality sexual and reproductive health services - no matter what their economic, racial or social status may be. In July 2020, Dr. Tlaleng Mofokeng was appointed as Special Rapporteur on the Right to Health, by the United Nations Human Rights Council. Also the former Commissioner at the Commission for Gender Equality in South Africa, she was recently recognised as one of Apolitical’s 100 Most Influential People in Gender Policy amongst a group of strong women leaders from all over the globe. “I envision a world where all people regardless of gender, orientation, geography, disability or economic status are at the centre of reproductive health agenda and service provision”, said Dr. Mofokeng in a recent interview. “As an advocate for reproductive justice, I dedicate my time and expertise to ensure that this vision becomes a reality.” Paving the way for change Dr. Mofokeng graduated from the University of Kwa-Zulu Natal in 2007. During her years as a student, she managed to launch the first youth friendly clinic in Matatiele, in Eastern Cape, as part of her commitment to a rural community initiative set up under Lovelife.
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An MD in practice at DISA clinic, she advocates for equal health access, HIV support and care services, youth empowerment and family planning. Currently, Dr. Mofokeng is an acting member on multiple Boards, such as the Safe Abortion Action Fund, Global Advisory Board for Sexual Health and Wellbeing, Accountability International, and the Soul City Institute for Social Justice. Speaking of her passion for health matters, Dr. Mofokeng stated: “Sexual and reproductive health chose me. I had the first real inclination that I would work in this field during community service year; while I was working in the West Rand clinics in Johannesburg.” She continues: “It was very rewarding, and I think the process was organic, in that it is the patients who found me receptive enough to share their experiences.”
Our existence as black women is political and we can never switch off from the struggles of gender politics
Woman fighting for women’s well-being Dr. Mofokeng continues to advocate for support mechanisms and training opportunities for healthcare professionals. Aside from her medical profession and advocacy, she is a columnist for the Sunday Times Newspaper, a medical contributor at Kaya FM, guest speaker at events, and also facilitates various local projects.
As she wears these many hats, she uses her influence to zoom in on and raise awareness surrounding gender equality policies, maternal and neonatal health, post violence care, HIV management and menstrual health.
Recognition & Awards One of Apolitical’s 100 Most Influential People in Gender Policy 2021 in the Bodily Autonomy and Sexual and Reproductive Health and Rights [SRHR] category.
“The struggles are real and very personal”, she exclaimed. “Our existence as black women is political and we can never switch off from the struggles of gender politics, racial oppression and the quest for economic freedom... The daily experiences of not only my patients but also of my own in navigating an unjust world keeps me inspired.”
Winner, 120 under 40: New Generation of Family Planning Leaders, Bill & Melinda Gates Institute, New York, 2016 Mail & Guardian 200 Young South Africans, 2016 South African Medical Association Nominee for Young Doctor's Awards, 2016
Making an impact globally Previously, Dr. Mofokeng has worked as an advisor to the Technical Committee for the National Adolescent Sexual and Reproductive Health and Rights Framework Strategy, in South Africa, addressing issues of young children and teens, individuals with disabilities, migrants and those living with HIV/AIDS. She has, additionally, briefed the United States Senate congressional staff on the impact of the Global Gag Rule globally, and in Africa. Dr. Mofokeng is also the Former Vice Chair for the Sexual and Reproductive Justice Coalition - a civil society organisation composed of academics, researchers, activists, and service providers alike. Her work with the coalition has paved the way for future generations of advocates, as the group is passionate about uplifting marginalised sexual and gender identities, and shaping “a future informed by an intersectional sexual and reproductive justice perspective.”
Destiny Magazine, Power of 40! Enterprise Development Programme sponsored by Norton Rose, Beyond Coaching 2010 and 2012
Community work and social campaigns she’s been involved in: • • • • •
Mondeor SAPS - 2013 Feathers Awards Panelist 2015 - Health Department of Health PASOP - 2012/2015 #RedMyLips: Anti–rape campaign - 2016 Advocate for addressing Rape Culture in the Media n
Public Sector Leaders | April 2021 | 25
WOMEN IN LEADERSHIP
BY CHARNDRÉ EMMA KIPPIE
Serving Our Nation Phindile Baleni Celebrations are in order as SA’s first female Director-General in The Presidency is appointed
O
n Wednesday, 31 March, President Cyril Ramaphosa made the announcement that Phindile Baleni had been appointed as Director-General of The Presidency and Secretary of Cabinet. This comes as no surprise as Hon. Baleni has served in various government roles since 1994, both locally and provincially. A long-serving public sector executive, Hon. Baleni’s experience makes her an ideal candidate for identifying core issues the South African Government faces on a daily basis. As the nation continues to combat the impact of the global COVID-19 pandemic, South Africa remains dedicated to recovery and revitalising its economy. At this juncture, Hon. Baleni’s appointment as the Director-General will have a significant impact on the overall performance and efficiency of The Presidency. A new journey begins As noted with Baleni’s appointment, The Presidency oversees the progress and adequate execution of government policy, and
26 | Public Sector Leaders | April 2021
facilitates partnerships within the various sectors of our country as well as with international stakeholders - geared towards ensuring the growth and expansion of the country.
The Presidency oversees the progress and adequate execution of government policy In conjunction with The Presidency, the Cabinet Office offers tactical and policy support to Cabinet. It facilitates administrative protocols, making sure that the Cabinet and its committee members operate at optimal levels. Hon. Baleni became an active public service leader more than 25 years ago,
and is being relocated to The Presidency from the Office of the Premier, in the Gauteng Provincial Government, which is where she has served as Director-General since 2015. This transfer was sanctioned based on Section 12(3)(c)(ii) of South Africa’s Public Service Act of 1994. Hon. Baleni steps into this position after Dr Cassius Lubisi’s retirement, after a decade, in September 2020. SA’s first female directorgeneral in the presidency Baleni is an admitted attorney and conveyancer who holds a B. Proc and an LLB from the University of the Witwatersrand (WITS), and was appointed legal advisor to the then Gauteng MEC for Housing and Local Government, from 1994 to 1996. After this, she ventured into the City of Johannesburg, which is
where she was a key player in strategic planning, high-level project management and the development of localgovernment policy. In later years, Hon. Baleni became a member of the Electricity Distribution Industry (EDI) Holdings, taking on the role of Chief Executive Officer, and establishing regional electricity distributors (REDs) across the nation, in the early 2000s. In 2011, she was appointed as the Chief Executive Officer of the National Energy Regulator of South Africa (NERSA) – which was prior to becoming the DirectorGeneral in the Office of the Premier in Gauteng. n
Boards Hon. Baleni has served on: Manufacturing, Engineering and Related Services SETA (MERSETA)
CSIR
Wits University Council
Public Sector Leaders | April 2021 | 27
28 | Public Sector Leaders | April 2021
We’re making our circle bigger CREATING A TRUE CIRCULAR ECONOMY FOR PLASTIC PACKAGING NEM WASTE ACT SECTION 18 Converter
PLASTIC – PRODUCERS | BRAND OWNERS | RETAILERS | IMPORTERS
EPR
S ER YM OL
The following are required for producers: Existing producers to register with the Department of Environment, Forestry and Fisheries from 5 May and no later than 5 November 2021 (as per the amended EPR regulations released on 15 January 2021).
Alternative application
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Pay the appropriate fees to the EPR scheme.
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as
Join or form an EPR scheme that includes the entire value chain. Be accountable for the operation and performance of an EPR scheme.
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| R e t a il e r |
REC YC LE D
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Raw material producer
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s t e g e n e r a ti o n
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Fulfil monitoring and reporting obligations – to begin Q1 2022.
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Petco s | Buy ba
c k c e n t r e | Wa s t
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Growth in South Africa’s population and increased urbanisation has led to an increase in per capita waste generation. This places stress on current landfills and results in litter in the environment. As a pro-active response to the growing national concern around waste and its impact on society and the environment, South Africa has recently published the Section 18 Regulations to the National Environmental Management: Waste Act on 5 November 2020, which refers to the Extended Producer Responsibility (EPR) aspect of the National Environmental Management Waste Act (NEMWA). The regulations will come into effect on 5 May 2021. In essence, this new legislation makes EPR mandatory for all producers and importers of packaging. It changes how producers, brand owners, retailers and importers design, make, sell and keep their products in the recycling loop as far as is practicably possible. Any company or brand that makes or imports any form of plastic packaging for distribution is required to pay an EPR fee per tonne. Strict targets have been set by Government, for yearly collection and recycling, that need to be met over the next five years. EPR will see an investment in collection infrastructure. Not only will this provide consumers with more convenient recycling facilities, but a concerted recovery effort at the pre-consumer or post-industrial phase. Intensive consumer awareness campaigns will also help to drive behaviour change. All companies involved in the value chain have to work together to ensure that less waste goes to landfill. Instead of
www.petco.co.za
www.polyco.co.za
Polyco
Polystyrene Association SA
SAVA
r c ke
www.polystyrenesa.co.za
supporting the outdated, linear approach of producing, using and discarding plastic packaging waste that continues to hold value after it has been used, our focus is now on developing a true circular economy within South Africa – where the value of waste is never lost but is kept within the economy by ensuring that these materials are reused and recycled into many new and useful materials. Luckily, South Africa's plastics industry is well positioned for this next stage of environmental legislation. We have four voluntary, industry-led PRO’s that have been running for many years now and have impressive track-records of collection and recycling successes, namely PETCO for PET, Polyco for polyolefins (PP, HDPE, LDPE/LLDPE and Multi-layer), the Polystyrene Association for polystyrene, Southern African Vinyls Association for PVC. Each of these PROs collect voluntary EPR fees from their members, and use the revenue they generate to support the collection, sorting and recycling of recyclable materials by informal waste pickers, small and medium-sized collectors and large-scale mechanical recyclers. The new Section 18 regulations are a welcome step forward towards a more collaborative approach between government and industry. As an industry, we are committed to continue working closely with government as this process unfolds. We urge you to start the process now by engaging with the relevant plastics industry PRO’s listed below. Reporting against the gazetted targets starts in Jan 2022.
www.savinyls.co.za
www.plasticsinfo.co.za Public Sector Leaders | April 2021 | 29
ENVIRONMENTAL ISSUES
BY YASMINE MIEMIEC
POLLUTION, PLASTIC -what are the solutions?
S
outh Africans dispose of
and recycling have a place in
to create the new version of the
to fill an entire football field 10
However, upcycling and recycling
though most people are familiar
enough municipal solid waste
metres deep, every day. Every single person of our total population of 57
million generates up to 2,5 kilograms of waste per day, on average,
depending on his or her level of
corporate waste management.
use distinctly different processes that
feature their own benefits, depending on the quantity and type of waste being handled.
and Rural Development
upcycling can also help combat our huge unemployment problem
According to the 2018 South African State of Waste Report, in 2017 South
tons were recycled. This means that
We all know about
sent to landfill to rot and pollute
the waste come from?
the atmosphere. With waste and refuse increasing exponentially
every year, households and business organisations can no longer turn a blind eye.
Already there are reports that
Johannesburg’s landfills will reach capacity within the next six years. In order to combat this ever-
growing problem of waste, many
organisations think that recycling
is the best way to tackle this issue. Conversely, there are also other
options such as upcycling that can aid in the fight against waste and
pollution and companies should bear in mind that both upcycling
and corporations, we know very little about the benefits of upcycling. Upcycling: better quality and Upcycling is the process of
transforming waste materials or unwanted products into
different, new products of higher environmental value. When one
Africans generated 42 million tons
over 37 million tons of waste was
with recycling, along with the public
higher environmental value
income. – The Association for Water
of general waste, of which 4.9 million
same product. However, even
recycling – but where does The biggest waste stream in South Africa is general waste. which is
made up of organic waste such as food, gardening or animal waste.
upcycles, they are not breaking down the materials of waste products
as with recycling where plastic, for
example, is melted down to create more plastic. With upcycling the
item is refashioned, using the same materials.
In addition, we have construction
A good example here, is using old
or wood and then other waste
beds and shoes. The material is still
waste such as building rubble, sand such as paper, glass, metal, plastic and electronic materials. There
are different ways to assist with
tyres to make products like bags, dog the rubber from the tyres, just used in new ways.
decreasing this waste. One of these
So, what’s the difference really?
material is converted into the raw
In a nutshell, the difference
options is recycling where waste
material for the manufacture of new melted down and used to create new cans. The key differentiator
of recycling is the fact that used
products are put through a process
30 | Public Sector Leaders | April 2021
Both save the planet, right?
between the two is that recycling
involves a shredding, melting and/
or compressing process, usually to
recreate the same products as the
original products. Upcycling involves
taking unwanted or used items
furniture is made from materials
South Africa’s part in
different items. Both processes have
conveys the repurposing message to
South African companies need
and repurposing them to create an important role to play in the
management of waste. Recycling is vital because of the volumes of
which have been upcycled, and this the staff in a subliminal way as well as sparking their creative juices.
material that can be processed and
So, where does recycling and
discarded each year but this amount
waste management?
converted. Billions of tin cans are
of material cannot be upcycled into products that people will need.
However, the problem with recycling lies in the fact that it has a high
energy cost compared to upcycling due to the processes involved.
Upcycling, on the other hand, has a
human element because people are employed in the transformation of the products.
upcycling fit in with corporate When a company produces
case the company may choose to
recycle the bigger volumes of waste and upcycle the smaller volumes.
The benefit of this approach is that both ends of the value chain are being supported. The recycling
Solutions to the plastic scourge Plastic production over the last
half-century has mushroomed, from
material can be transformed
there is also a creative benefit for
companies. We have seen offices where all the office décor and
there is a mass of innovation taking place in the repurposing of plastic items. Examples of the creative
repurposing of plastic are floating
islands which are helping to combat habitat loss and are the basis of aquaculture farms.
Although there is a global shift, the been slow. However, in South Africa upcycling can also help combat
our huge unemployment problem.
Companies can therefore contribute to the transformation of the plastic that is already in the environment
and create jobs at the same time via upcycling.
15 million tonnes in the 1960s to a
By throwing their support behind
2014. It is estimated that 13 000 pieces
plastic from the environment and
gobsmacking 311 million tonnes in
stream can be upcycled but where
in the fight against plastic. Globally,
uptake of upcycling locally, has
they can make a difference.
creative benefit Not every waste
‘reduce and reuse’. However,
a practice is not as widely used by
producing and understand where
comes down to upcycling - the
making of the packaging.
Upcycling a twofold solution
to try and see what waste they are
processes used for recycling. It
recycled plastic can be used in the
generation and job creation through
should be consulting with companies
minimal compared to the industrial
necessary to use plastic packaging,
upcycling also plays a major role
feasible to upcycle all of it. In this
corporates. South African companies
sewing or woodwork, but these are
consumables are sold in. Where it is
construction sites, it may not be
upcycling. Upcycling, however, as
example, there is electricity used for
of plastic packaging that all
This highlights the shift towards
material like wood from
company also contributes to income
also lower than for recycling. For
to look at reducing the amount
enormous quantities of waste
companies are employed but the
The energy inputs for upcycling are
the war against plastic
of plastic litter can be found in every
square kilometre of the ocean. South Africans are culprits too and use
between 136kg and 139kg of plastic per person per year, 47% of which is recycled. Given that corporate
entities are the largest consumers and disposers of items such as
plastic cups on a daily basis, the fight to save the environment should
start with them. So, what can South African companies do to assist?
The answer may lie in upcycling.
projects which seek to remove
by working with communities, these organisations can find groundbreaking and original ways to
generate incomes from the items that would normally be thrown in
the trash. An inspiring example of this is the upcycling of millions of
disposable coffee cups that are used in corporate South Africa. A company has found a simple solution that has led to the training and employment
of many people while upcycling their used coffee cups into eco friendly
Public Sector Leaders | April 2021 | 31
products in the form of veggie
contributes to the activities of other
clogging the stomachs of marine
separating the outside paper from
are part of an important chain to
found that we are already eating
companies involved in upcycling but
seed bombs. This process involves the inside plastic of the cup. The
paper is then used to make a mould for the veggie seed bombs. The
seeds are put into compost and fertiliser, covered with the mould
and sold back to corporates and the public to plant in their veggie
gardens. Workers are now able to
keep plastic out of landfills. Obviously not all plastic can be upcycled.
However, if a company does have waste material, such as wood or
Styrofoam, there may be a product
which can be created which in turn will create jobs.
creatures and fish. Scientists have seafood that is contaminated with plastic. We can help put an end to
plastic pollution by choosing not to
use single use plastic items, such as plastic bags and straws. Single use
plastic items are one of the biggest contributors to ocean pollution.
Packaging accounts for just over 40% of total plastic usage.
receive the used coffee cups from
It is a win-win situation. Every year
seed bombs and sell them as a
is dumped into our oceans. That’s as
Annually approximately 500-billion
every minute. Everything from plastic
More than 1 million bags are used
the company, manufacture the
different product, thereby creating their own income.
about 8 million metric tons of plastic
much as a truckload of plastic waste bottles and bags to microbeads
Corporate South
Africa should contribute
Companies must realise they are not working in a vacuum. Their
activities such as the contribution
to upcycling and recycling not only
end up in our oceans. This creates
a swamp of large and small plastic pieces that is mistaken for food
every minute. 14% of all litter comes from beverage containers
(plastic bottles). A plastic bag has an average “working life” of 15
minutes. Plastic takes 500 years
by marine animals. Plastic waste
chokes and entangles turtles and
plastic bags are used worldwide.
seabirds. Tiny pieces of plastic are
to break down. n
Plastics by the numbers Some key facts: Half of all plastics ever manufactured have been made in the last 15 years.
Production increased exponentially, from 2.3 million tons in 1950 to 448 million tons by 2015. Production is expected to double by 2050.
Every year, about 8 million tons of plastic waste escapes into the oceans from coastal nations. That’s the equivalent of setting five garbage bags full of trash on every foot of coastline around the world.
32 | Public Sector Leaders | April 2021
Plastics often contain additives making them stronger, more flexible, and durable. But many of these additives can extend the life of products if they become litter, with some estimates ranging to at least 400 years to break down. - National Geographic
CHANNEL AFRICA THE AFRICAN PERSPECTIVE
Channel Africa is South Africa’s international public broadcast radio station whose primary audience is the entire African continent. Our secondary audience is the rest of the world, where we harvest our news and information. As an International Public Broadcaster, our core values subscribe to the highest journalistic ethics which find expression in fairness, accuracy, and impartiality. Channel Africa is a platform through which Africa is engaged in debate with itself, and recognises South Africa as a role player in continental and international affairs.
Vision: “The African Perspective” Mission: “to promote the regeneration, revival, and rejuvenation of Africa, through the production and broadcast of dynamic, stimulating, and interesting programmes”. Contact Information: Tel: 011 714 2997 Fax: 011 714 2072 Email: info@channelafrica.co.za Web: www.channelafrica.co.za Twitter: channelafrica1 Instagram: channelafricaradio DSTV:802 Public Sector Leaders | April 2021 | 33
LEGAL MATTERS
BY JESSIE TAYLOR
THE CONSTITUTIONAL COURT: A pillar of democracy and transformation
O
ne of the pillars of South Africa’s democracy, the Constitutional Court, has been upholding the rule of law and furthering transformation for 25 years. The Constitution celebrates its 25th anniversary in 2021, after being signed into law in 1996. The Constitutional Court was created as a transformative legal entity that would provide justice for all races, by safeguarding this key legislation. Upholding the supreme law of the land The Constitutional Court is the highest court in the county and is responsible for the interpretation, protection and enforcement of the Constitution. The court only hears matters that involve the application or interpretation of the Constitution. As the supreme law of the land, no other law or
government action can supersede its provisions. It contains the Bill of Rights, the fundamental human rights of all people in the country, and affirms the democratic values of human dignity, equality and freedom.
Since its establishment in 1995, the Constitutional Court has heard several landmark cases The Bill of Rights is based on the Universal Declaration of Human Rights and the South African Freedom Charter, but the idea of a Bill of Rights for South Africa can be traced as far back as an ANC document in the early 1920s, some 30 years before the development of the Freedom Charter. While the notion of human rights for all received much support, the
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question of who would implement it came under much debate. This was settled at a conference organised by the Constitutional Committee of the ANC in 1991 when a commitment was made to form aConstitutional Court that would be able to hear cases by direct access, as well as by referral and on appeal. The leadership at the time felt a court, independent of existing judiciary structures, needed to be created to protect the Constitution. At the time of the Constitutional Court’s creation, the judiciary was unrepresentative of the country’s population. This limited the judiciary’s legitimacy and its capacity to draw on the sense of justice of all communities. In creating a new court to protect the Constitution and the fundamental human rights of all South Africans, it was decided to include more representation of
South Africa’s diverse population. The Constitutional Court approved the Constitution on 4 December 1996. Six days later, it was signed into law by then -President Nelson Mandela. The Constitutional Court took up its home at Constitution Hill on 21 March 2004, Human Rights Day and 10 years after South Africa became a democracy. ThenPresident Thabo Mbeki, speaking at the opening, said: “The court represents the conversion of the negative, hateful energy of colonialism, subjugation and oppression into a positive, hopeful energy for the present and the future...” The noblest of tasks At the establishment of the Constitutional Court, H.E. Mandela summarised the work of the panel of judges – a task that is still undertaken daily.
“Yours is the most noble task that could fall to any legal person. In the last resort, the guarantee of the fundamental rights and freedoms for which we have fought so hard, lies in your hands. We look to you to honour the Constitution and the people it represents,” he said. Since its establishment in 1995, the Constitutional Court has heard several landmark cases and has handed down judgements that have not only changed the legal landscape but also affected the daily lives of South Africans. The first of these landmark cases was heard in 1995 when the death penalty was outlawed. This case was heard in the Court’s very first sitting on 15 February 1995. The 11 judges heard arguments over three days, examining if the death penalty violated the right to life, the right to dignity
and the right to be free from torture and cruel punishment. In its judgment, handed down on 6 June 1995, the Court unanimously found that the death penalty was unconstitutional. In the same year, the Court also declared corporal punishment as a sentence for juveniles unconstitutional. Since then, the Constitutional Court has ruled on other landmark cases, such as the right to housing, permitting same-sex marriages, prohibiting employment discrimination against an HIV positive person. These rulings speak to the Constitutional Court’s responsibility to safeguard democratic rights and protect our democracy. The Court has continued to exert its authority by reviewing all democratic processes, including the functioning of legislative bodies such as the National Assembly. n
Public Sector Leaders | April 2021 | 35
SOCIAL JUSTICE
BY CHARNDRÉ EMMA KIPPIE
Combating GBVF
in South Africa
SA’s Private Sector commits to Gender-Based Violence and Femicide (GBVF) Response Fund
O
ur nation finds itself at war - in the thick of battle against tragically high rates of gender-based violence and femicide. In terms of reported rape cases, by the end of last year, a 1.7% increase was recorded - with more than 53 000 cases taking place in 2020 alone. The South African Police (SAPS) also encountered 1 638 more sexual offences than those recorded in 2019. These statistics, met with the stark reality of the Coronavirus global pandemic at the beginning of last year, have increasingly risen, with more and more domestic violence cases being reported weekly. In light of this ongoing crisis, President Cyril Ramaphosa launched the Gender-Based
Violence and Femicide (GBVF) Response Fund 1, together with the International Women’s Forum of South Africa and social partners, early last month. This fund is a critical element of the National Strategic Plan (NSP) on GBVF South Africa’s roadmap to ending this epidemic - and the overall GBVF response in the country.
It is not just the voice of women that matters, we have also included the voices of men in the conversation Making an impact: Private sector With the launch of this nationwide fund, President Cyril Ramaphosa displayed deep
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respect and appreciation for the private sector’s much-needed contribution to combating Gender Based Violence and gender inequality. Collectively, the private sector has pledged R128-million to this multi-sectoral fund, with various companies and organisations coming together for real change. “We appreciate the resources businesses and philanthropies who are committed to social transformation have been able to contribute. This commitment comes at a time of great economic difficulty which itself contributes to the hardship and vulnerability affecting women. It is an important contribution to improving the lives of women and girls in our society”, Ramaphosa declared.
“The successful launch of the fund is a significant demonstration of the depth of social compacting in our society and the vision of a better South Africa shared by social partners.” The Board of the GBVF Response Fund 1 will allocate all financial resources to essential programmes (including Violence Against Children (VAC) programmes) that are underpinned by the following six pillars of the National Strategic Plan (NSP): • • • • • •
Accountability, Coordination and Leadership Prevention and Rebuilding Social Cohesion Justice, Safety and Protection Response, Care, Support and Healing Economic Power Research and Information Management
At present, the fund is being led by the International Women’s Forum South Africa (IWFSA), along with Chairperson, Judy Dlamini - Wits
University Chancellor. The fund has, to date, been backed by a long list of key players, such as the Ford Foundation, Anglo-American and ABSA. Internationally, AcademyAward winning actor, Forest Whitaker, has made a pledge to the cause through his Whitaker Peace and Development Initiative. “It is not just the voice of women that matters, we have also included the voices of men in the conversation”, Whitaker exclaimed at the launch. “Too often the epidemic of gender based violence spreads because of the silence that surrounds it and because too many men are left out of the discussion...Men must be included in this discussion. The meeting today suggests that things are moving in the right direction.” Transparency as prerequisite The launch and creation of this fund comes as no surprise after the 2018 GBVF Summit, and should assist multiple initiatives with enhancing the criminal justice system and reinforcing support
structures and access for victims. The fund will also be a huge help in terms of driving social change and assisting women with economic access and financial support. However, civil society organisations have raised a few concerns, advocating for accountability and transparency in terms of how the R128-million pledge will be monitored and controlled. Mandisa Khanyile, The Call To Action Collective’s (70+ civil society organisations and activists) spokesperson, made a fewpoints regarding the fund: “We seek clarity on how the secretariat will be constituted and the criteria which will be used for funding distribution. We look forward to working with the GBVF fund to ensure that patriarchy is dismantled and GBV is eradicated in all spheres of society”, she said. “Moving forward will require civil society to maintain oversight that will ensure accountability, transparency and coordination... We don’t want resources mismanaged.” n
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ADVERTORIAL
BY CHRIS HANI CO-OPERATIVE DEVELOPMENT CENTRE
Chris Hani Co-operative Development Centre Co-Value chain partnership through agri-commodity enterprises.
CHCDC Background The Chris Hani Co-operative Development Centre (CHCDC) is a non-profit company (NPC) registered in terms of the Companies Act No 71 of 2008. It was established to support cooperatives of which 80% that are in our database the agricultural sector.
District Municipality) in the rural areas of Eastern Cape.
This resulted in partnerships with agri-industries, commercial farmers and the emerging farming community. In pursuance of this, the CHCDC then established the RAFI (Rural Agro-Industries & Finance Initiative) programme in partnership with private industry partners and four participating district municipalities (Chris Hani District Municipality, O.R. Tambo District Municipality, Joe Gqabi District Municipality and Alfred Nzo
CHCDC programmes RAFI in partnership with municipalities and agro-co-operatives have a structured model with the AgroEconomy Tertiary Co-operative LTD, which has a total of more than 12 agro-secondary co-operative memberships, and approximately 250-agro-primary co-operatives, participating in RAFI Grain, RAFI Fresh Produce, RAFI Beef, RAFI Logistics and Inputs. The target is 50,000ha of grain production
We are now planning to plant more than 2 000 ha of land with Industry partners,
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by the year 2030, and 2500ha of fresh production in the same year. This informs the establishment of agro-industries within Industrial Parks, in partnership with district development agencies and private agro-industry partners. RAFI Grain Pilots for grain production were carried out working with RAFI Industry partners to pilot about 500 ha in the Chris Hani District, 430 ha in O.R. Tambo District and 250 ha in the Joe Gqabi District Municipalities. We are now planning to plant more than 2000 ha of land with Industry partners, focusing on grain commodities, which include maize and soya. RAFI Fresh Produce Working with the Eastern Cape provincial government, and their
stimulus package co-funding R15-million, CHCDC has established the RAFI Fresh Produce Packhouse. Industry partners have co-funded another R15-million which the CDC has established towards the RAFI fresh produce packhouse within Komani Industrial Park. Through the Chris Hani Development Agency, this has enabled market access of fresh produce from farmers, with more than 500ha under production for the packaging facility and fresh production commercialisation The fresh produce packhouse will be divided into two units, one for the RAFI fresh produce and the
RAFI
Fresh Produce Packhouse Facility
other for meat processing, which will be in partnership with Karoo Range.
with Wagyu breed, for the purpose of improving the quality of our livestock.
RAFI Beef A commercial agreement was signed for a partnership between Al-Mabroor Wagyu and CHCDC on behalf of beef cooperatives in the Eastern Cape Province, with a commitment for a start-up of establishing farm breeding facilities for 5000 animals. The beef commodity is a production value chain as there are other subdivisions within the programme itself which include the cross breeding of livestock amongst Bonsmara, and Angus
This will be coupled with the establishment of three commercial feedlots in different locations of Eastern Cape. At present, the programme has 29 existing breeding farms throughout the province with approximately 50 more farms identified through land mapping. CHCDC continues to serve its mandate of developing, supporting and building capacity for co-operative enterprises within the Eastern Cape Province. n
Abongile Hala
Chief Executive Officer Contact: Physical Address: No. 22 Cathcart Road Komani 5320 Tel: 045 838 8086 Mail: info@chrishanicdc.org Website: www.chrishanicdc.org
RAFI
Beef Livestock
Public Sector Leaders | April 2021 | 39
EMPOWERMENT JOURNEY
BY FIONA WAKELIN
South Africa’s journey towards diversity & inclusion We have made momentous strides since 1994
I
n 2003, the Broad-Based Black Economic Empowerment (B-BBEE) strategy was published as a precursor to the B-BBEE Act, No. 53 of 2003. This groundbreaking piece of legislation was followed by the 2013 B-BBEE Amendment Act Act No. 46 of 2013. The fundamental objective of the Act was to advance economic transformation and enhance economic participation of previously disadvantaged people in the South African economy. In this article we take the temperature of transformation of a number of key sectors in the country. THE ECONOMY – A SNAPSHOT South Africa is the most developed country in Africa and was the largest until 2014, when it was overtaken by Nigeria. The largest sector of the economy is services which accounts for around 73 percent of GDP. Within services, the most
important are finance, real estate and business services (21.6 percent); government services (17 percent); wholesale, retail and motor trade, catering and accommodation (15 percent); and transport, storage and communication (9.3 percent).
The period since 1994 has seen the South African economy undergo profound restructuring Manufacturing accounts for 13.9 percent; mining and quarrying for around 8.3 percent and agriculture for around 2.6 percent. - Trading
Economics South Africa’s economy grew by an annualised 6.3% in the fourth quarter of 2020, following an upwardly revised 67.3% advance in the July-September period and easily beating market
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expectations of a 5% rise, largely due to the further easing of lock down restrictions. Eight out of ten industries reported positive growth rates in the fourth quarter, primarily manufacturing (21.1%), trade (9.8%), transport (6.7%),construction (11.2%) and agriculture (5.9%). Expenditure on real gross domestic product increased at an annualised rate of 6,5%, driven by household consumption, exports and fixed investment. Year-on-year, the economy shrank 4.1%, after an upwardly revised 6.2% contraction in the previous period and compared with market expectations of a 4.6% slump. Considering the full year of 2020, the GDP shrank 7%, the most since 1946, as the devastating impact of COVID-19 in the second quarter when lockdown restrictions were at their most stringent weighed heavily on the economy - Statistics
South Africa
TRANSFORMATION ACROSS SECTORS Mining Mining is an important foreignexchange earner, with gold accounting for more than one-third of exports. South Africa is also a major producer of coal, manganese, chrome, platinum (world’s largest producer), and diamonds (6thlargest producer). The Mineral and Petroleum Resources Development Act (MPRDA) requires the Minister of Mineral Resources and Energy to set socio-economic targets through the Mining Charter. Mining Charter III came into force on 1 March 2019 – almost three years after the publication of the first draft. The Charter states that a minimum of 70% of total mining goods procurement spend must be on South African-manufactured goods and apportioned as follows: 21% from black entrepreneurs, 5%
on black economically empowered women entrepreneurs and 44% from black economic empowermentcompliant companies. In the case of services, a minimum of 80% of the total spend on services (excluding non-discretionary expenditure) must be sourced from South African companies and apportioned as follows: 50% on black economically empowered entrepreneurs, 15% on black economic empowerment women entrepreneurs and 10% on black economic empowermentcompliant companies. – BizNews – Peter Leon AGRICULTURE The African Farmers’ Association of South Africa (AFASA) has been at the forefront of pushing for the transformation of the agriculture sector as part and parcel of the broader agrarian reform government policies promote. AFASA‘s second Agribusiness Transformation Conference, which took place in 2018 and focused on value chain integration and farming as part of the Fourth Industrial Revolution, succeeded in promoting smart partnerships between investors and landowners and amongst farmers themselves. In 2008 the AgriBEE Transformation Charter was gazetted and in 2017 the Amended AgriBEE Sector Code was published. The objectives of this Amended AgriBEE Sector Code are to facilitate B-BBEE in the sector by implementing initiatives to include black South Africans at all levels of agricultural activity and enterprises by: •
Promoting equitable access and participation in the entire agricultural value chain
•
•
•
• •
De-racialising land and enterprise ownership, control, skilled occupations and management of existing and new agricultural enterprises Unlocking the full entrepreneurial skills and potential of previously disadvantaged individuals Facilitating structural changes in agricultural support systems and development initiatives to assist black South Africans in owning, establishing, participating in and running agricultural enterprises Social upliftment Increasing the extent to which communities, workers, cooperatives and other collective enterprises own and manage existing and new agricultural enterprises, increasing their access to economic activities, infrastructure and skills training.
MANUFACTURING In 2019 the manufacturing sector accounted for 11.78% of GDP (global average is 18%) and approximately a third of this contribution comes from the automotive sub-sector – which as a whole contributes in the region of 7.6% to GDP. Automotive manufacturing takes place in three provinces: Gauteng (NissanRenault, BMW and Ford); KwaZuluNatal (Toyota, Bell Equipment); and the Eastern Cape (Volkswagen, Mercedes-Benz, General Motors and Ford engines). Support and incentives from the state for the automotive industry include the Automotive Production and Development Plan (APDP) and the associated Automotive Incentive Scheme (AIS). This policy support has resulted in sustained investor confidence. The South African
Public Sector Leaders | April 2021 | 41
Automotive Master plan (SAAM) is a roadmap to 2035 with targets that include expanded vehicle production, doubling employment, an increase in local content to 60%, and an increase in the contribution of black-owned suppliers. There are several industry-led initiatives aimed at facilitating support for existing companies on this transformation and black supplier development journey. Incubator structures, private advisory services and cluster initiatives such as East Cape Automotive Industry Forum (ECAIF) and Durban Automotive Cluster (DAC) provide valuable structures to support these objectives
Manufacturing the future Traditionally Africa’s greatest wealth has been seen to be its natural resources and primary sector extraction, relying on other developed economies for secondary beneficiation and imports. Now we stand on the brink of a major disruption to this paradigm. Digitisation will transform the continent’s economy into one that is exports-based. Data, connected infrastructure and industrial ecosystems will together create the perfect storm for Africa to manufacture smart factories of the future. According to a Frost & Sullivan White Paper by the Manufacturing Leadership Council, the manufacturing industry will look completely different in the next 10 to 15 years as industries become high-tech engines of mass customisation. “Highly automated and informationintensive, the factory of tomorrow will look like an integrated hardware and software system, fuelled by
vast quantities of information from every corner of the enterprise and beyond, moderated by analytical systems that can identify and extract insights and opportunities from that information, and comprise of intelligent machines that learn, act and work alongside highly skilled human beings.” – Frost & Sullivan White Paper TRAINING AND SKILLS DEVELOPMENT The 1994 democratic government inherited a population with low educational and skills levels and an education and training system that was fragmented, dysfunctional and unequal. From 1994 to 2009, the Department of Education was responsible for higher and technical vocational education delivered through the universities and further education and training (FET) colleges. The then Department of Labour was responsible for workplace skills programmes, delivered largely through the Sector Education and Training Authorities (SETAs). This split in the education, training and workplace skills production created difficulties in delivery and the education and training levels of the population did not improve much. The education, training and skills system was described as ineffective and inefficient. In 2009, the government created the single ministerial portfolio of Higher Education and Training. The portfolio shifted the higher and further education and training functions associated with colleges and universities from the Minister of Education to the new Department of Higher Education and Training
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(DHET).Skills development and vocational training has been key to job creation and reduction of poverty. The focus of the Skills Development Act, 1998 (Amended 2008) was to: •
Empower the South African workforce with skills
•
Ensure employees access more opportunities for skill acquisition
•
Create space for the new entrants to the labour market to gain work experience, introduce transformative tools through training and education to redress unfair discrimination practices in the labour market.
Furthering the national skills development and training imperative, DHET presented the National Skills Development Plan to the portfolio committee on higher education and training in August 2018. The nine principles of the Plan were outlined as follows: 1.
Locating the NSDP within an integrated post-school system
2.
Contributing to the country’s socio-economic objectives
3.
Advancing an equitable and integrated system
4.
Greater inclusivity and collaboration
5.
Focus on support system for learners and employers
6.
Strong emphasis on accountability
7.
Understanding demand
8.
Steering Supply – Qualifications and Provision
9.
Steering Funding – Funding Mechanisms
FINANCE Since 1994 financial services have seen strong growth and investors cite this sector as one of the key motivations for investing in our economy. In the South African context, access to finance and financial services are key to achieving economic and social transformation.Meaningful transformation of the financial sector includes issues such as access, lower rates, appropriate product development, procurement, empowerment financing, socio-economic development, employment equity and skills development. True transformation of the financial sector means that it will work for all South Africans, enabling all citizens to save, borrow, insure and transact. Structure of the South African finance sector arranged according to value of assets: • • • • •
Banks Pension funds Long-term insurers Collective investment schemes Short-term insurers.
The period since 1994 has seen the South African economy undergo profound restructuring which has included policy initiatives such as the Broad-Based Black Economic Empowerment Strategy, the Microeconomic Reform Strategy, Transformation Charters, Sector Codes, Codes of Best Practice, the Black Industrialist Programme and the Financial Sector Regulations Act (2017). “In 2017 the Financial Sector Code was amended to ensure it was in line with the dti Codes of Good Practice. The year 2018 saw the sector contribute R640 368 228 613 to the gross domestic product of the economy (22.39%).The Financial Sector Code (FSC) commits all participants to actively promoting a transformed, vibrant and globally competitive financial sector that reflects the demographics of South Africa, which contributes to the establishment of an equitable society by providing accessible financial services to black people and by directing investment into targeted sectors of the economy. Recognising the unique position
that financial institutions hold in the development of South Africa, two unique elements exist in the FSC scorecard over and above the five elements in the Codes of Good Practice. These are: Empowerment Financing and Access to Financial Services. These elements are intended to accelerate the transformation process as they focus on making financial services accessible to the previously unbanked and under-served. They empower the previously disenfranchised through the provision of affordable housing, financing of black Small, Medium and Micro Enterprises (SMMEs) and agricultural activities, and investing in various types of transformational infrastructure that help create the necessary platforms to grow the economy on an equitable basis.” n
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AGRICULTURE
BY FIONA WAKELIN
South Africa’s Agricultural Sector is
GROWING!
T
wo years ago, the South African agriculture sector had been shrinking for four consecutive quarters - contracting by 7% in 2019. In 2020 in the first quarter it grew by 28% with good rains and bumper crops. By August 2020, the National Crop Estimates Committee (CEC) confirmed that SA’s total summer grain and oilseed output (17.85 million tons) was one of the largest on record – and 34% higher than 2019, with the total maize crop of 15.54 million tons being 38% larger than 2019. The citrus industry is also smiling, with South Africa exporting around 2.15 million tonnes in 2020 - up 19% from the previous year. Favourable weather conditions in South Africa over the last year have meant that farmers have been able to plant on time
and increase area plantings for various crops. Higher commodity prices have also improved bank balances, leading to improved sentiment. And, the sector is set to continue to improve with the support of government policies, including the Master Plan on Agriculture and Agro-processing.
R1 billion in grower levies over the next four years going into research and technology According to the Agricultural Business Chamber (Agbiz), the Agbiz/IDC Agribusiness Confidence Index (ACI) improved from 61 points in the fourth quarter of 2020
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to 64 in the first quarter of 2021. This is the highest level of the Agbiz/IDC ACI since the second quarter of 2014. These results show that South Africa’s agricultural sector will, optimistically, experience another year of robust growth. “In volume terms, South Africa’s agricultural production has grown by 19 percent since 2010. Encouragingly, this expansion has occurred across all subsectors of agriculture and agro-processing value, that is, horticulture (up 70 percent), animal products (up 43 percent), field crops (up 22 percent) and agro-processing (up 13 percent), according to data from the Bureau for Economic Research (BER) and Bureau for Food and Agricultural Policy (BFAP).” - Wandile Sihlobo, Chief Economist, Agbiz
And from a citrus perspective the news is just as good. “The Citrus Growers Association of Southern Africa (CGA) is excited to announce that the South African citrus industry will likely break all previous export season records with an estimated 158.7 million cartons in 2021. If the estimate is reached, it would represent a third consecutive season of record export volumes, with 130 million cartons exported in 2019, followed by 146 million cartons in 2020. Our current projections for 2021 indicate a 22% growth in export figures in just 2 years…These figures indicate phenomenal growth within the South African citrus industry, and for our local economy. The demand for our produce overseas is a wonderful testament to the quality of South Africa’s citrus fruit. There is no doubt that citrus growers are investing heavily for the future, with more than R1 billion in grower levies over the next four years going into research and
technology to support market access and transformation, while creating an enabling logistics environment to move the fruit.” Justin Chadwick, CEO of the Citrus Growers’ Association of Southern Africa (CGA) To explore the future expansion of markets in the agriculture and agribusiness sectors, on 19 March 2021, the Agricultural Business Chamber held a hybrid event with its members, public sector representatives and commodity – focusing on how South Africa could make greater inroads into international markets, particularly within BRICS. “The attractive markets within this grouping are China and India. This is because they account for sizeable agricultural import volumes, have growing populations, fast-growing economies, and changing consumer taste. South African policymakers’ engagements with
their BRIC(S) counterparts should be to lower tariffs for certain agricultural products and address the non-tariff barriers. Consider wine trade in China – the likes of Australia and Chile accessed the Chinese market at 0% preferential tariffs. Meanwhile, South African producers face 14% import tariffs. Hence, competition has been challenging for the wine industry and a range of agricultural products. It is also crucial that the industry pays closer attention to geopolitical developments in this region. China has sanctioned Australia for criticizing some of its policy positions. These sanctions entail trade restrictions. Other countries have been able to take advantage of Australia’s gap to meet China’s import demand.” – Wandile Sihlobo, Farming Portal, Agri News Net. n
Wandile Sihlobo
Chief Economist | Agbiz
Public Sector Leaders | April 2021 | 45
PROVINCIAL FOCUS: FREE STATE
BY JESSIE TAYLOR
Breaking new ground Free State is investing in agricultural transformation
A
s the country’s third largest province, Free State produces about 100,000 tons of vegetables and 40,000 tons of fruit each year. But alongside crop production, the province’s agricultural sector also comprises animal production, horticulture, dairy farming, game farming, aquaculture, and agroprocessing, and is a major source of employment. In 2010, agriculture provided just short of 20% of all formal employment opportunities in the region. To promote transformation and inclusion in the agricultural sector, the Free State provincial government is leading the way in a land redistribution programme. The programme will ultimately see more than 4000 parcels of land handed over to new owners, to promote an inclusive agricultural sector.
Creating a new future for agriculture Land ownership has long been an area the South African government has looked to for promoting transformation. In an attempt to correct past injustices, the government’s National Development Plan looks to land reform to unlock a dynamic, growing and employmentcreating agricultural sector. The NDP aims to rapidly transfer agricultural land to black beneficiaries, many of whom will have received support through a training programme in agriculture or skills development projects. To date, the South African government has settled 80 664 claims benefitting 2.1 million beneficiaries. The government also has restored 3.5 million hectares of land, and it is envisioned that this will be a catalyst for agricultural
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and economic development. But no focus on reshaping the agricultural sector can leave the Free State untouched. Almost 15% of all South Africa’s commercial farming takes place in the province. An estimated 7500 farms can be found in the Free State, the highest concentration in the country and 90% of the province is agricultural land. In her State of the Province Address Premier Sisi Ntombela reported: “Agri-hubs that were established in Thaba Nchu, Springfontein, Wesselsbron and Parys are now implementing the Grain Value Chain Programme. Aspects of this Programme include provision of storage and milling facilities to support Agriparks through the Farmer Support Production Units in Makholokoeng, Thaba Nchu, Odendaalsrus, Kroonstad and Zastron. The Free State Poultry Hub Investment Plan has been
developed. Poultry initiatives are being implemented.” Economic powerhouse The province has the potential to play an important role in redistributing wealth. The Free State is responsible for 15% of South Africa’s gross agricultural income, and t contributes more than 5% to South Africa’s total gross domestic product. This economic potential is no doubt one of the reasons land reform in the province has been a part of a programme, to reduce inequality in the farming sector, run by the national government. In October last year, the national Minister of Agriculture, Land Reform and Rural Development, Thoko Didiza announced that applications would open for agricultural projects on more than 8 000 ha of State-owned land in the province, as part of the government contribution to the land reform programme. The emphasis on land reform is also
evident at a provincial level, with efforts made to redistribute land parcels to black beneficiaries.
the support they need to develop successful enterprises and create meaningful employment.
Premier Ntombela announced during her State of the Province Address that the redistribution of land is well underway. The provincial government has identified 4872 land parcels for distribution, which are valued at a combined R11-billion.
This is why the government is partnering with existing farmers, farming organisations and key players in the value chain to support potential black farmers and ensure they maintain successful agricultural projects. n
Of these pieces of land, 2626 have been earmarked to be transferred to the rightful beneficiaries. “We have completed an audit of farms in the province with the view of making these available to our people, mainly the youth and women. Ninety-five farms that include resorts and nature conservation areas have been identified,” added Hon. Ntombela. However, correcting inequalities inherited from the past requires more than just a title deed – a whole of society approach is needed to ensure farmers have
Hon. Sisi Ntombela Free State Premier
Public Sector Leaders | April 2021 | 47
ASSISTING LOCKDOWN
BY JESSIE TAYLOR
The defence force: Offering support to government departments in the fight against Covid-19
W
hile the South African National Defence Force (SANDF) is known for defending our national borders, it has also played a key role in supporting government departments on the frontline during the global pandemic. The SANDF has deployed its members on multiple occasions to support the services or healthcare and frontline workers, during periods in which South Africa’s Covid-19 numbers have spiked. Boots on the ground The latest deployment of the SANDF was during the country’s second wave in December and January, when over 2000 troops were allocated to aid in the government’s response to the global pandemic. Amid the second wave of Covid-19 cases, the country moved from level 1 to adjusted level 3 on 28 December 2020. The deployment, which ran
from 29 December 2020 to 31 January 2021, was announced by President Cyril Ramaphosa as part of this tightening of regulations. The President authorised the employment of 2 122 members of the SANDF for “service in order to preserve life, health or property in emergency or humanitarian relief operations”, in support of other government departments. The SANDF members also worked in cooperation with the South African Police, to prevent crime and enforce restrictions under the adjusted Level 3 lockdown regulations. The SANDF members have assisted the National Department of Health by providing professional Doctors, Nurses, and other healthcare professionals. Of the troops deployed in the front line against Covid-19 are soldiers tasked with border safeguarding operations
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between Zimbabwe, eSwatini, Mozambique and Botswana. Other SANDF members have provided support to the South African Police Service, to enforce regulations such as curfew, the ban on the sale and distribution of alcohol, the prohibition of public gatherings, and the legal requirement to wear a face mask while in public. The deployment of so many troops is no small feat and comes at a cost estimated at around R95-million.
SANDF will be critical in the rollout of vaccines across the country
The most recent deployment, at the beginning of the year, to assist the Covid-19 effort follows three others in the last 12 months.
An initial deployment of 2 820 SANDF members began on 25 March 2020, followed by 76 000 troops deployed on 21 April 2020, and 20 000 deployed on 30 June 2020. Forces are also currently deployed on Operation Corona which serves to safeguard South Africa’s borderline, especially now that 20 ports of entry have been closed to the general public. To swell the SANDF’s ranks, reserves in the South African Army, South African Air Force, South African Navy and the South African Military Health Service have been called up and deployed together with the Regular Force. Essential in the fight against Covid-19 The South African National Defence Force has been essential to our national effort to confront the virus, President Ramaphosa said during an address on National Armed Forces Day on Sunday 21 February. He commended the SANDF for their role in helping to enforce lock down regulations, while still maintaining compassion for the hardships of their fellow South Africans. “It was our soldiers who helped to maintain law
and order in the early days of the lockdown. The landward force deployed no less than 33 companies in under 72 hours. The SANDF undertook mercy missions to repatriate our citizens abroad who were fearful and wanted to be reunited with their families,” he said. In addition, the SA Army Engineers Corps helped deliver clean drinking water to vulnerable communities. The SA Air Force and the Logistics Division managed the distribution of much-needed supplies to deployed forces. The South African Military Health Service deployed its personnel in all provinces, where they worked in hotspots and helped set up field hospitals and quarantine sites.
in the fight against Covid-19 is far from over. The next area the SANDF will be critical in is the rollout of vaccines across the country. Troops will be assigned to vaccination sites, where they will safeguard the distribution of the doses. The SANDF will assist in the rollout plan by being stationed at vaccine administration sites to secure the vaccine and to bolster security measures. These sites will include 18 public hospitals, as well as 13 private hospitals. n
“But what perhaps touched us as the nation most was the sight of SANDF members helping the elderly carry their groceries, walking alongside young people making their way home, and many other instances that showed our armed forces at their best,” President Ramaphosa added. But the role of the defence force
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FOCUS ON EDUCATION
BY JESSIE TAYLOR
The return to classrooms – what now?
A
A new normal in schooling sees the safety of staff at the forefront
s the first term of schooling draws to a close, learners and educators are slowly adapting to a new normal in teaching in the midst of the pandemic. Learners returned to their classrooms for the start of the academic year on Monday, 15 February 2021, after the second wave of Covdi-19 swept across the country. The first terms will run until Friday 23 April. The new normal for schools includes the use of personal protective equipment, smaller classes and online learning – all with the focus on promoting the health and safety of teachers, staff and learners, Education minister Angie Motshekga said. Counting the cost of Covid-19 in the classroom Not only has Covid-19 caused disruptions to schooling and
reduced teaching time, but it has also had a devastating effect on school staff. By February 2021, over 1100 teachers had passed away due to Covid-19, while 243 nonteaching staff had succumbed to the virus. The province most affected was the Eastern Cape, which had a death toll of 533 among teachers – almost half of the country’s fatalities.
This safety-focused approach must remain in place as schools return to extramural activities
To fill the staff shortages caused by teachers who have passed away, or who are at risk and unable to return to classrooms, the Department of Basic Education has employed 290,000 assistants, Hon. Motshekga announced.
50 | Public Sector Leaders | April 2021
“The Sector has welcomed close to 290 000 young people, who have been employed on contract as Education Assistants and General School Assistants. These young people have been employed in our schools, as the Sector’s response to President Ramaphosa’s Fiscal Stimulus Package, announced in April 2020. We call this initiative, the Basic Education Employment Initiative (BEEI),” she said. The BEEI seeks to address Covid-19 related academic disruptions, as well as assisting in dealing with lingering systemic challenges. Another key component of the BEEI is to provide support to workers negatively and directly impacted by the Covid-19 pandemic, explained Hon. Motshekga. “A portion of the R7 billion allocated for the BEEI, is targeted at saving SGB-funded posts in
public schools and Government subsidised independent schools. We are working hard to ensure that the delayed payments of some of these young people are addressed immediately,” she said. A safety-first approach to school activities. To protect both staff and pupils, Hon. Motshekga has urged schools to adhere to strict safety procedures. “We emphasise the critical importance of vigilance and strict adherence to the health and safety protocols, in order to save lives. Since the Covid-19 pandemic, the Department of Basic Education has been monitoring the state of provinces on a regular basis, to ensure that provinces have systems in place to cope under the pandemic; and to provide support, where support is needed; to ensure smooth opening and
running of schools,” said the Hon. Motshekga. “We will continue to maintain the delicate balance between health and safety in schools on the one hand, while on the other, we deal with the curriculum gaps, identified during the 2020 academic year.” This safety-focused approach must remain in place as schools return to extramural activities, now allowed under level one lockdown regulations. The Department of Basic Education announced the lifting of the ban on school sports events last month. However, Minister Motshekga has urged pupils, teachers, coaches, and parents to be extra cautious during school activities amid concerns of a third wave of Corona virus infections. The decision to lift the ban on school sporting events includes sports
matches, physical education, extra-curricular activities, and any school sports tournaments. Co-curricular and enrichment programmes such as oral history, spelling bees, moot court, speech contests, debates and school clubs may also resume activities. Subject strict adherence to all social distancing, hygiene and safety measures, choir practice or rehearsals, choir competitions and interschool choir events may also resume. Currently, no spectators were allowed at events, and strict hygiene and safety measures to prevent and combat the spread of Covid-19 must be complied with, Hon. Motshekga said. “We urge learners, coaches, teachers, parents, and other parties to work together to protect us from a possible third wave and to keep their loved ones safe,” Hon. Motshekga said. n
Hon. Angie Motshekga
Minister of Basic Education since
Public Sector Leaders | April 2021 | 51
CSI SOCIAL IMPACT
BY JESSIE TAYLOR
SOCIAL RESPONSIBILITY: The importance of giving during a global pandemic
D
espite a year of unprecedented economic changes due to the global pandemic, which has in turn seen a sharp decline in national employment numbers, South African businesses have stepped in to support civil society. The amount local businesses put towards Corporate Social Investment (CSI) in 2020 increased, despite the economic downturn. Many businesses stepped up in response to Covid-19, offering relief through donations to government programmes and community outreach initiatives. CSI, making business sense CSI is built on a growing trend in business to put people before profits but contributing time and resources to uplift communities and invest in environmental or
economic causes. CSI projects embody a commitment to respond to the socio-economic needs of our society. This commitment has seen the business community, from large corporations to sole traders, increasingly dedicating money or resources to improve the nation with no direct financial benefit to the company - as well as contributing to the betterment of society, CSI initiatives are good for business. Just some of the reasons why CSI is vital for a company, is because it generates positive publicity, which in turn can attract new customers, as well as boosting employee morale. For many employees, pay and benefit are just part of the reasons they choose to join and stay with
52 | Public Sector Leaders | April 2021
a company. A growing number of employees are looking to work for companies that match their values, and CSI projects are an ideal way to reflect the company’s value system. This is evident in the number of start-ups that weave social impact messaging into their brand, ensuring that social responsibility is a part of their brand from day one. However, aside from ensuring your company retains talent, CSI projects make business sense. CSI has become so commonplace in the business world that many companies are taking on initiatives simply to stay on par with their competitors. Most CEOs know that CSI brings benefits such as tax breaks, increased BEE points, improved business reputation, reduction of
operational risk, skills development, enhanced stakeholder relationships and compliance with international standards. It could be for these reasons that South African businesses continued their spend in the face of the global pandemic.
We embraced this ubuntu unselfconsciously, which gave us a glimpse of our greatness CSI spending in South Africa increased by around 5% year on year in 2020, according to research published in the Trialogue Business in Society Handbook. The total estimated CSI expenditure by South African businesses was R10.7 billion, compared to the R10.2 billion spent on CSI initiatives in 2019. Beyond the bottom line But much of the CSI expenditure was also channelled towards responding to the global pandemic. According to the report, almost all companies prioritised the health and safety of their staff and customers in their response to Covid-19. The response to Covid-19 across the country as a result of the realisation of our interdependence, both with all of humanity and our planet, said Mamphela Ramphele Co-Founder of ReimagineSA in the report.
and the weak and vulnerable became a central focus of neighbours, often for the very first time. We embraced this ubuntu unselfconsciously, which gave us a glimpse of our greatness, if only we were able to continue to exhibit the power of unity in diversity,” she said.
organisations and individuals, and members of the international community, can contribute to.
The Solidarity Fund Of those companies who set aside funds in response to Covid-19, two-thirds of businesses allocating CSI funding to support food security and healthcare. But even larger donations were made to the national Covid-19 response – 80% of companies made philanthropic contributions to Covid-19-specific responses and around 60% of corporates answered the government’s call to pool resources in the face of the pandemic, by donating towards the Solidarity Fund.
Ramaphosa said at the time of the fund’s establishment. The public benefit organisation has been mandated to support the national health response and contribute to humanitarian relief efforts by mobilising South Africans. In seven months, the Solidarity Fund had accepted pledges for R3,16 billion from businesses, governments and individuals, of which R3,12 billion had been received.
The Solidarity Fund was established by President Cyril Ramaphosa early in the country’s response to the pandemic. ‘We have set up a solidarity fund, which South African businesses,
The fund will focus efforts to combat the spread of the virus, help us to track the spread, care for those who are ill and support those whose lives are disrupted,”
Aside from responding to Covid-19, corporations continue to invest heavily in education initiatives, the report also found. Over half of the CSI spend in 2020 was funnelled into education initiatives, while 15% was put towards social and community development. n
“What was most awe-inspiring in the early days of the pandemic was how the best in us showed up. Strangers reached out to others to help them. Old people, children,
Public Sector Leaders | April 2021 | 53
PUBLIC CUSTOMER SERVICE
BY JESSIE TAYLOR
TOP PRIORITY: Service Delivery and Customer Care in SA Funding Scheme to keep classrooms open for small children As many of the country’s 32 000 Early Childhood Development centres face an uncertain future, a government fund looks to provide a lifeline until young learners can return to their classrooms. While many sectors were impacted by lockdown regulations in response to the global pandemic, the ECD sector has been particularly hard hit. Many of the businesses in this sector are small and privately owned, often providing services in impoverished areas. ECD education is vital for healthy childhood development. Not only does it prepare children for primary school, but it also develops the social, emotional, cognitive and physical wellbeing of children. This education
provides a foundation for lifelong learning and wellbeing. However, many families were forced to put this education on hold. Schools were forced to close for parts of the last year, and once opened, many of their learners did not return to the classroom due to concerns over safety or financial constraints due to job losses among parents. Relief for hard-hit programmes A relief fund has been established to stimulate the Early Childhood Development (ECD) sector, to save jobs and keep business doors open. Payments commenced this month, with thousands of ECD staff expected to receive the once-off funding. The Department in the process of finalising ECD stimulus employment relief fund payments,
54 | Public Sector Leaders | April 2021
after calling on small businesses in the sector – such as crèches, daycare services and nursery schools – to apply for assistance. The ECD stimulus employment relief fund provides a R496-million fund to assist South Africa’s ECD facilities, many of which have taken severe financial strain as a result of the various levels of national lockdown, imposed in response to Covid-19. The fund is designed to provide a one-off payment of around R4500 to ECD staff members, with four staff members eligible per facility. This includes cooks, administrators and other workers. However, the funds can only be applied for by the operator of the facility, and only one application can be made per facility. “Following the national call
from the for all Early Childhood Development programmes to apply for the ECD Employment Stimulus Relief Fund (ECD-ESRF), verification and payments are now being processed for qualifying ECDs,” said Social Development spokesperson, Lumka Oliphant.
Around 28 200 applications have been received by the Department of Social Development, for around 125 407 staff members. A sector buckling under the weight of the pandemic The relief fund comes not a moment too soon, as the sector finds itself struggling under the effects of the global pandemic. Estimates from the Centre for Early Childhood Development suggest more than half of South Africa’s ECD centres have not been able to reopen, even in level 1 of the lockdown. A report by Research on Improving Systems of Education (RISE) Fellow Janeli Kotzé and co-authors found that Covid-19 had disrupted the function of ECD programmes and could have far-reaching impacts on children and their families. Four months after the closure of ECD programmes in March 2020, the ECD sector was operating at less than a quarter of its pre-lockdown levels, the report found. And the impact on the learners was equally severe – the number of children attending ECD programmes in July had dropped by almost 20%, compared to levels
pre-Covid-19. The report estimated that only 13% of children under the age of six were attending ECD by mid-August. “When viewed from a broader socio-economic lens, the threat of ECD programme closures across the nation will have impacts beyond ECD operators to the lives of millions of children, millions of households and millions of adults who rely on these ECD services. A swift intervention by the government is necessary to save this important sector and limit the ripple effect of programme closures on multiple layers of society,” said Janeli Kotzé. Around 28 200 applications have been received by the Department of Social Development, for around 125 407 staff members. Following a verification process, there are around 25 571 applications with 116 102 staff members currently on the system, added Oliphant.
Lumka Oliphant
Department of Social Development spokespersnon
About the ECD Relief Funds Scheme Application Process: •
The application process opened on 5 February and closed on 26 February.
•
The Department made the applications process available online through the GovChat application platform. But to accommodate those with connectivity challenges, applications could also be lodged with the department’s local offices.
•
Around 28 200 applications have been received by the Department of Social Development, for around 125 407 staff members.
•
As part of the cleaning and removal of duplicate applications amongst others, the number of applications on the system is 25 571 applications with 116 102 staff members.
•
At the moment, applicants have been contacted via SMS as part of the verification process and are urged to update their applications with all the correct details.
•
During the verification process common issues that have been picked up are incorrect ID numbers and names of applicants not being as stated in their identity document; incorrect banking information; incorrect addresses and incorrect classification of funding. n
Public Sector Leaders | April 2021 | 55
IN OTHER NEWS
BY CHARNDRÉ EMMA KIPPIE
PROPERTY VS. PANDEMIC: a win-win situation?
Taking a closer look at Covid-19’s impact on our property markets
W
ith the Covid-19 pandemic hitting South Africa at the beginning of 2020, various property economists and key players in the sector made predictions regarding the rapid decline of housing prices. It was forecasted that the situation would be comparable to that of the downfall witnessed throughout the global financial crisis of 2008. The rate of home purchases in SA was already ‘underwhelming’ pre-Covid. As Covid-19 was an unprecedented knock to our country’s economy, many commercial banks, mortgage originators, and even real estate agents indicated that we could expect the price of homes to further decline by 10%-20%. Surprisingly, these forecasts turned out to be inaccurate, as the housing market in fact witnessed
an unexpected performance. According to Lightstone Property — a provider of information, valuations and market intelligence on properties in South Africa — housing prices increased by an average of 3% for 2020 as a whole. And when one factors in the average consumer price inflation of 3.3% for 2020, these prices only fell by 0.3%.
South Africa’s property sector has been aided by the Reserve Bank’s decision to cut interest rates by 3% This was a less devastating outcome than expected, as many of the other sectors of the South African economy took a much greater blow, financially.
56 | Public Sector Leaders | April 2021
Popularising home loans Commercial banks have now reported a rise in renewed home ownership interest by consumers. South Africa’s largest home loan provider, Standard Bank, reported that they granted new home loans throughout the country at “record levels’’ in the midst of the pandemic. They received 258,000 new applications and granted R56.5-billion in mortgage loans during 2020. This was a 13% increase from 2019. Many other financial institutions also witnessed an increase in the amount of home loan disbursements once the South African government eased lockdown restrictions - a trend expected to slow down throughout 2021 as banks become more cautious due to employment instability. The easing of these restrictions allowed citizens to
move freely between homes, into new property, and also prompted deeds offices to reopen and track property sales transactions more effectively. Gerhard Kotzé, managing director of the RealNet estate agency group provides comment: “We are already seeing bond approval numbers drop from the highs of July and August 2020, and fewer grants for 100% home loans. The possibility of largescale retrenchments this year in big private sector companies and the public sector is especially worrying.” “Nevertheless, we expect price growth and possibly even real (after inflation) price growth in the under-R2m market this year due to steadily tightening inventory constraints, especially at the lower end of this sector”, says Kotzé. Interest rates drop South Africa’s property sector has been aided by the Reserve Bank’s decision to cut interest rates by 3%. This decision lowered the bank’s prime lending rate to
7%. With this decrease, it became more affordable for existing homeowners to regularly pay off their home loans. In conjunction, the costs of home ownership became cheaper than at the beginning of 2020. Also, factoring in transfer duty (a tax levied on properties valued above R1million), key property industry leaders estimated that these interest rate declines made homeownership 30% cheaper. This prompted an increase in first-time home buyers. “They [first-time homebuyers] are keen to get an offer to purchase signed and accepted as quickly as possible so that they do not lose out. At the same time, the banks are still keen to lend and first-time buyers can find favourable conditions”, says Seeff Property Group Chair, Samuel Seeff. Although these ‘favourable conditions’ have generated a demand in selling and purchasing activity in the property market, this is likely to change considerably even post-Covid deemed as the ‘Post-Lockdown Recessionary Phase’.
2020 Property overview what happened? Retail sector Retailers in South Africa were faced with the task of curbing the spread of the virus. In some cases, stores closed down permanently due to a lack of sales and crippling rental costs. On the other hand, retailers who opted to continue operations faced restrictions on ‘non-essential services and goods’. Unable to trade during the 21-day lockdown period, South African landlords and retailers experienced many disputes regarding still having to pay store rental fees. Industrial Sector During the lockdown period, and even thereafter, production rates decreased gradually across South Africa, highering the rate of unemployment and leaving facilities bare. Rental growth, thus, slowed down even further while confidence in local businesses diminished - this put a damper on future developments. Office space The office market received a total transformation during the pandemic. Businesses witnessed an increase in demand for open plan office environments, hotdesking and serviced offices. This prompted a reduction in the amount of office space allowed per person. Many citizens were forced to work from home due to lockdown. With remote working set to be the new norm, many office buildings have been left unoccupied. n
Public Sector Leaders | April 2021 | 57
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Public Sector Leaders | AprilBrought 2021to|you 59by
BUYING LOCAL
BY CHARNDRÉ EMMA KIPPIE
THINK LOCAL! Supporting local is more important than you think.
Uplifting small local businesses could grow the economy by R200-billion President Ramaphosa’s
consumers opting to purchase
SONA 2021 took place Thursday,
potentially contribute an estimated
R200-billion target
11 February 2021, and during his
address of the country’s finances
and manufacturing sector, President Cyril Ramaphosa emphasised that our economy could see major
recovery come about if citizens
continuously choose to make more
local purchases, decreasing the need for imports.
“The second priority intervention of the Recovery Plan is to support a
authentic South African goods, could
– Edible oils
the masses, voiced strategic plans
– Fruit concentrates
deemed an ambitious dreamer by to lower the level of the country’s imports by 20% over the next five
years. South African Leadership has
their focus on revitalising the country’s manufacturing sector, with numerous
– Personal protective equipment (PPE) – Steel products made in South Africa – Green economy inputs
– South African-made sugar SA businesses making waves -
once again.
CORICRAFT -
exports ‘globally competitive’
globally competitive. This will
economy, potentially returning more
by the private sector.
– Locally–produced furniture
plans set out to make South Africa’s
“If we achieve our target, we will
encourage greater investment
SONA speech. These products include:
R200-billion to the fiscus. Ramaphosa,
massive increase in local production and to make South African exports
seven specific products as part of his
significantly expand our productive than R200-billion to the country’s annual output. These efforts are
supported by robust manufacturing
local produce to consider TAPESTRY HOME BRANDS
Coricraft is enthusiastic about
producing and selling high-quality,
budget-friendly furniture, and boasts an incredible range of modern and traditional homeware styles.
support programmes”, he concluded.
The company is well-known for
business, and organised labour to
Local products to look out for
versatile couches. Coricraft designs
Ramaphosa went on to encourage
indicated that there are a total of 42
Key to this plan is a renewed
commitment from the government, buy local”, said Ramaphosa. President the public to buy products that
are produced right here, inside our borders. Ramaphosa urges that a positive change in mindset, with
President Ramaphosa has since
products that will be encouraged for local purchase, and these will
be made public knowledge in due course. However, he emphasised
60 | Public Sector Leaders | April 2021
their wooden furniture pieces and
and produces home furniture with the aim of manufacturing pieces
that consumers can proudly add
to their homes. Coricraft are famous for their exceptional quality leather couches, in various finishes. Each
couch is manufactured in South
ATYRE
African countries. Illovo produces raw
Cape Town or Johannesburg. Their
female designer, Reabetswe
African, European Union (EU), United
Africa at their couch factory in either experienced furniture manufacturers are skilled at creating high-quality
couches meant to last for years. The company has about 50 different walk-in furniture stores across
States of America (USA) and world
Ngwane, this local fashion brand is
markets, from sugar cane supplied
a premium producer and retailer of
by its own agricultural operations and
handmade bags that are not only
independent outgrowers who supply
beautifully designed and made to
cane to Illovo’s factories.
last, but friendly to the environment
Southern Africa, and also offers an
and socially inclusive. Atyre upholds
online shopping experience.
a minimum wastage policy in
The organisation employs more than
maximised to the best of their
across the group, with a further 18 000
12 000 people in permanent positions
their factory, where all fabrics are
STEELMOR INDUSTRIES Established by Hendrik van der Bijl, as the Iron and Steel Corporation (ISCOR) in South Africa, in 1943, stainless steel has been a major contributor to creating jobs and fostering industry development in South Africa - upholding strict standards of manufacturing excellence and quality.
people employed on a temporary
capabilities. The company has also
basis. The company aims to ensure
created full time employment for
reliable cost-effective energy supply,
6 local community members, with
utilising bagasse and biomass
numbers growing substantially. Atyre
generated from its operations
actively works with waste pickers
Around 14 million tons of sugar cane
who collect and trade recyclable
are processed annually, by 12 sugar
materials for employment, to supply
mills, under the group’s cane sugar
them with the tyre tubes.
Currently, stainless steel in South Africa remains in high demand across various industries, from medical to construction, industrial equipment, and even in the catering market. A booming stainless steel industry continuously stimulates our economy, promoting innovation, technology advancement and enhancing infrastructure across a broad spectrum of applications. Steelmor has played a leading role in this important market for more than 40 years, and is popularly regarded as a top stainless steel specialist and leading stockist and manufacturer of stainless steel products - right here on our home ground.
and refined sugar for local, regional
Created by the innovative young
integrated business sustainability model, maximising the use of all
Each item is handcrafted from sturdy,
input materials with very few
upcycled tyre material, and carefully
waste products. n
selected textiles from local South African suppliers. The company’s
vision is geared towards becoming a global leader in sustainable fashion, and a game changer in Africa.
Atyre is committed to continually
innovating the craft of bag making, to not only be ecologically friendly and
sustainable, but also socially inclusive by working with local communities to eradicate poverty.
ILLOVO SUGAR AFRICA (PTY) LTD.
Illovo Sugar is Africa’s biggest sugar
producer, with extensive agricultural
and manufacturing operations, in six
TOP REASONS TO BUY LOCALLY •
Local businesses tend to partner with other local entities, such as service providers, farms and banks. This enhances development, growth, and sustainability of the economy.
•
Buying local demonstrates national pride, showing confidence in locally made products.
•
South African products are tailored to meet uniquely South African needs and solve the issues that local economic sectors face - in a manner that international products cannot.
•
Local product demands create and save jobs - we are keeping markets open.
Public Sector Leaders | April 2021 | 61
INVESTMENT BY MULTINATIONALS
BY JESSIE TAYLOR
Speeding up economic growth through Automotive investment
A
n almost R16-billion venture by Ford Motor Company is the start of what automotive industry leaders anticipate will be a bumper year for investment. The automotive giant announced plans to introduce new technologies and systems to grow the Ford Silverton Assembly Plant, as it increases the production of its all-new Ranger pickup truck next year. An historical investment The upgrades will mark the biggest investment in Ford’s 97-year history in South Africa, and is one of the largest-ever investments in the South African automotive industry, said Dianne Craig, President, Ford’s International Markets Group “This investment will further modernise our South African operations, helping them to play an even more important role in the turnaround and growth of our
global automotive operations, as well as our strategic alliance with Volkswagen,” said Craig. The plant will also manufacture Volkswagen pickup trucks as part of the Ford-VW strategic alliance. The investment is worth around $1.05-billion (R15.8-billion), of which $686-million (R10.3-billion) would be invested in technology, upgrades and new facilities at theSilverton plant. These include the construction of a new body shop with the latest robotic technology and a new high-tech stamping plant, both of which will be located on-site for the first time. Both facilities will modernise and streamline the integrated manufacturing process at Silverton while contributing to higher quality and reducing overall cost and waste. The company said it would hire around 1200 new employees to meet the expanded production
62 | Public Sector Leaders | April 2021
needs. Ford’s private-public partnership with the government in the Tshwane Automotive Special Economic Zone (TASEZ) is a crucial step toward unleashing the new production capacity. In addition to its representation on the TASEZ board, Ford also is working closely with the government and state-owned entities to develop a high capacity rail corridor between Gauteng and Eastern Cape. This will be a full-service line linking the TASEZ with Gqeberha /Port Elizabeth, which is home to Ford’s Struandale Engine Plant and the Coega Special Economic Zone. “Ford’s investment in our South Africa manufacturing operations underscores our ongoing commitment to deliver everbetter vehicles to our customers in South Africa and around the world, while providing opportunities for our own employees, new team
members and our communities,” said Neale Hill, Managing Director, Ford Motor Company of Southern Africa. The promise of more to come However, the investment by Ford is just one of the ventures that will give the local economy a boost, believes The Automotive Business Council (Naamsa). Naamsa CEO Mikel Mabasa said the organisation anticipates several capital investments and commitments by manufacturers in the industry. “The automotive industry’s performance over the past three decades has been dependent on the constructive collaboration and partnership with Government, and hence, the attraction of major investments into this sector have been stimulated by the long-
term certainty and consistency provided by Government’s policy regime to support the sustainability and growth of this sector in the country,” said Mabasa. Significant investment pledges have also been received from several companies in Asia, Minister of International Relations and Cooperation Dr Naledi Pandor confirmed during the State of the Nation Address Debate. Companies such as Toyota, Isuzu, Tata Motors, Mahindra and Motherson Sumi have indicated they plan to expand their investments in South Africa. Earlier this year, Toyota announced an investment of close to R3-billion to produce a new SUV at the manufacturing plant in Durban. The move stands to create around
1500 new jobs. The automotive industry has huge potential to bolster the local economy, and already contributes 6.4% to the Gross Domestic Product (GDP). “The South African automotive industry remains the most dynamic manufacturing sector in the South African economy and is a significant driver of economic growth and development for the country,” said Mabasa. “The SA Automotive Masterplan 2035 which is due for implementation from July 2021, will create a framework to secure even higher investment and production levels, and will continue to provide multinational vehicle and component companies the consistency they need to invest confidently in South Africa”. n
The automotive industry in numbers:
The number of employees in the manufacturing segment of the industry.
The percentage of the country’s manufacturing output the
automotive industry accounts for.
The value created through the export of vehicles and automotive components.
The number of international markets vehicles and
components created in South Africa are exported to.
The total automotive revenue in South Africa in 2019.
Dianne Craig
President | Ford’s International Markets Group
Public Sector Leaders | April 2021 | 63
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Public Sector Leaders | April 2021 | 65
FINANCIAL FITNESS
BY CHARNDRÉ EMMA KIPPIE
Understanding municipal financial management Good financial management is essential for effective local delivery - here’s what you need to know
W
ith so many demands for bettering our nation, financial management is critical for our local municipalities to be equipped for making a positive impact on local areas transforming our land into a better place for all citizens. Councillors and members of the community dream of ‘ideal’ changes, however, these must be properly planned for in order to make a significant difference. Councilors are tasked with the responsibility of approving and regularly tracking a municipality’s budget and spending behaviours. This task is completed in consultation with ward committees in order to maintain high standards. The
reality, however, is that large amounts of funds are needed to execute all plans and projects in order for councilors to serve their communities. This is where effective financial management plays a vital role.
The approval of the budget is one of the most important tasks undertaken by councillors
The role of financial management Municipal financial management makes sure that sufficient funds are available to execute council policies.
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Councillors, committee members and government officials oversee these funds, making sure that these monies are handled attentively, with full transparently. Good financial management is the driving force behind local delivery – local activists and ward committee members are required to properly understand municipal finance and budgets so that they’re able to engage councillors on important conversations regarding spending and development priorities. Processes used in municipalities At present, the following financial management processes are used and tracked in local South African municipalities:
Budgeting: Calculating what income the municipality will receive and correlating this with the expected expenditure, by preparing detailed plans and forecasts.
Auditing: Reporting financial results to all stakeholders by preparing municipal financial statements that are audited by the Auditor-General, who reports to Parliament.
Safeguarding: Implementing controls to ensure that the income, capital and assets such as money, motor vehicles, computer equipment etc., are safeguarded against misuse, damage, loss or theft.
The budgeting cycle and community participation The financial year of South African municipalities runs from 1 July of each year to 30 June the following year. Municipalities must prepare budgets for each financial year. Council must approve these budgets before the new financial year begins, after proper planning and consultation with ward committees and other stakeholder groups in the area.
Financial Reporting: Monitoring actual income and expenditure and comparing this to the budget, through regular financial reporting and corrective action when needed.
The approval of the budget is one of the most important tasks undertaken by councillors, after consultation with ward committees and other stakeholders. Ward committees need to investigate all parts of the budget which will affect the people in their community. Ward councillors should regularly call ward meetings to openly discuss the budget at hand. All members of the community also have the right to call a special council gathering, in which the budget is reflected upon and voted on. Operating budgets and capital budgets The municipality’s operating budget includes all planned operating expenditure and income, for the delivery of all services to the community.
‘Operating expenditure’ involves the cost of goods and services from which there will be short-term benefit - services will be used up in less than 12 months. These include salaries, wages, repairs, operational hardware and devices, petrol, office stationery etc. ‘Operating income’ refers to monies received for services delivered for a short-term period, such as property rates, service charges, investment interest, and traffic fines. On the other hand, the capital budget allocates money aside for estimated expenditure on long-term purchases and big investments, such as buildings, plots of land, motor vehicles, equipment and office furniture. These are considered to be municipal assets for more than a 12 month period. A municipality’s capital budget must cater for all estimated costs for all items of a capital nature. These include the construction of roads, buildings and purchase of vehicles that are planned in that budget year. Capital budget - includes big costs, such as replacing water pipes in a community, which you pay once-off to develop something, and how you will afford these costs. Operating budget - includes the day-to-day costs and income to deliver municipal services, such as road workers’ wages and maintenance work.
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Municipal income - where does it come from? Municipalities need to make sure that there will be enough funds to cover all planned expenditures if they are to ‘balance the budget’. There are multiple sources of income that can be utilised by municipalities to finance their expenditure. The main sources of capital budget financing include the following: External loans - Monies received from a bank or other financial institution. This is the expensive way to finance the capital budget due to high interest rates in South Africa. These loans should only be used to finance the purchase of major capital items. Internal loans - monies borrowed from internal ‘savings funds’ such as Capital Development Funds or Consolidated Loan Fund. Contributions from revenue When purchasing a small capital item, the small total cost can be paid for from the operating income in the year of purchase. This financing source is referred to as ‘contributions from revenue’.
Public/Private Partnerships Capital costs paid for by means of partnerships between the private sector and the municipality - the private sector partner often has a profit motive in the service and capital being funded. Main sources of operational budget financing Property rates - annual tax paid by citizens based on the value of each property owned by individuals and businesses with private property.
Service charges / Tariffs - These are monies paid, by individuals and businesses, for measurable services, such as water, electricity or approval of building plans. Fines - These include traffic fines, late library book fines, penalties for overdue payment of service charges, and assist in prompting citizens to obey democratic laws. Equitable share - This refers to an amount of money that a municipality gets from the national
Government grants Municipalities may apply to the national government for grants for infrastructure development. The two main funds available are the Consolidate Municipal Infrastructure Programme (CMIP) and the Water Services Projects. Donations and public contributions - Capital items or monies donated or sponsored by local and foreign donors.
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government each year, to ensure that municipalities can provide basic service and develop their areas. Keeping a healthy cash flow The movement of money in and out of the municipality’s bank account must be properly maintained as funds are received and utilised. While a surplus is favoured, this won’t always be the case each month, as unexpected expenses come up. When more funds have to be paid out than there is flowing in, your municipality could be heading for big financial problems. The municipality can, at that point: 1.
Borrow funds from the bank (overdraft)
2.
Borrow from another sphere of government (a loan or grant)
3. Increase the property rates and service charges which people must pay for local services to avoid bankruptcy
Hon Tito Titus Mboweni Minister of Finance
However, it must be emphasised that none of these options will be good for your municipality’s reputation. A negative cash flow or deficit should be avoided as much as possible. The Municipal Finance Management Act No. 56 of 2003 (MFMA) The MFMA aims to modernise budget, accounting and financial
management practices by placing local government finances on a sustainable footing in order to maximise the capacity of municipalities to deliver services to communities. It also aims to put in place a sound financial governance framework by clarifying and separating the roles and responsibilities of the council, mayor and officials.
The MFMA is required by the Constitution, which obliges all three spheres of government to be transparent about their financial affairs. It also forms an integral part of the broader reform package for local government, as outlined in the 1998 White Paper on Local Government.
The role of your ward committee
Your ward committee members all need to help maintain a positive cash flow for your municipality’s development projects, by:
Being a good example in paying your rates and service charges fully, and before the due date
Encouraging all members of your community to pay their rates and service charges, on time
Challenging any waste of municipal money and asking for a proper explanation or investigation
Public Sector Leaders | April 2021 | 69
UPCOMING EVENTS
BY CHARNDRÉ EMMA KIPPIE
WHAT TO LOOK OUT FOR
2-4 Easter Weekend The Christian community will begin the Easter Weekend by observing Good Friday on the Friday before Easter Sunday. Easter falls under the Paschal season in the Christian Advent Calendar. Good Friday commemorates the crucifixion, and death of Jesus Christ. Whilst Easter Sunday celebrates His resurrection. Families are encouraged to spend quality time together, attend church services and carry on the tradition of giving loved ones (especially children) chocolate eggs, as a symbol of new life and Jesus’ emergence from the tomb. Family Day will also be observed on Easter Monday, and is a time for strengthening bonds among family members, and going on vacation together.
04 International Day for Mine Awareness and Assistance in Mine Action As per the General Assembly, on 8 December 2005, it was declared that the 4 April of each year would be observed as the International Day for Mine Awareness and Assistance in Mine Action. Initiated by the USA and the United Nations, this day creates awareness around nations in which mines and explosive remnants of war pose a serious threat to the health, safety and livelihood of all civilians, or an obstacle to positive social and economic development at the national and local levels. Victim assistance, risk education campaigns and advocacy will be top of the agenda on this day.
23 World Book and Copyright Day World Book and Copyright Day is a celebration to encourage the enjoyment of books and reading. Each year, on 23 April, celebrations take place all over the world to recognise the magical power of books, exhibiting a connection between the past and the future - a bridge between generations and across cultures and creeds. On this occasion, UNESCO and the international organisations representing the three major sectors of the book industry - publishers, booksellers and libraries - come together to commemorate the power of the written word. Schools often host special reading sessions and character dress up days to get young children more excited about literature and literacy.
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Freedom Month 24 World Veterinary Day Initiated in 2000, by the World Veterinary Association, World Veterinary Day highlights the amazing work that veterinarians around the globe have committed their lives to. Every year, a unique theme is chosen, assisting pet owners to remember the importance of the many important aspects of animal care, and how vets can aid in caring for these animals. One continual topic of discussion is ensuring pet vaccinations remain up to date to prevent unnecessary spread of highly contagious virus, like Parvo. In 2020, the theme of World Veterinary Day was ‘Environmental protection for improving animal and human health’. This year, there will be a focus on Veterinarian Response to the COVID-19 Crisis.
26 World Intellectual Property Day World Intellectual Property Day is commemorated annually, and was established by the World Intellectual Property Organization (WIPO) in 2000 to promote the importance of patents, copyright, trademarks and designs, and the manner in which they impact on daily life. This is a celebration of creativity, and ‘the contribution made by creators and innovators to the development of societies across the globe’. World Intellectual Property Day coexists with the 1970’s historical initiation of the Convention Establishing the World Intellectual Property Organisation’s commencement. This year, resources will be made available to help small businesses with their intellectual property needs, and focus will be put on educating people on intellectual
27 Freedom Day Freedom Day is the celebration of our country’s first democratic elections, held on 27 April 1994. This was when Nelson Mandela was voted President of our nation. These were the first postapartheid national elections to be held in South African where anyone could vote regardless of race. The first democratic elections on 27 April 1994 gave birth to our constitutional democracy. For the majority of South Africans who had never voted before their dignity was restored and the country transformed to a nonracial, non-sexist and democratic society. In 2020, Freedom Month was celebrated under the theme ‘Valuing Our Freedom in Difficult Times’ - a theme that undoubtedly still applies today.
property rights.
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W W W.W O O D B I D . C O . Z A 74 | Public Sector Leaders | April 2021
