Vision 2030 Publication 4th Edition

2030VISION.CO.ZA

VISION2030 | OUR FUTURE OUR PLAN

OUR FUTURE OUR PLAN

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E V E N T PA R T N E R

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VOLUME 4

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OUR FUTURE OUR PLAN

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PREAMBLE TO THE CONSTITUTION OF THE REPUBLIC OF SOUTH AFRICA, 1996 We, the people of South Africa, Recognise the injustices of our past; Honour those who suffered for justice and freedom in our land; Respect those who have worked to build and develop our country; and Believe that South Africa belongs to all who live in it, united in our diversity.

We therefore, through our freely elected representatives, adopt this Constitution as the supreme law of the Republic so as to • Heal the divisions of the past and establish a society based on democratic values, social justice and fundamental human rights; • Lay the foundations for a democratic and open society in which gover nment is based on the will of the people and every citizen is equally protected by law; • Improve the quality of life of all citizens and free the potential of each person; and • Build a united and democratic South Africa able to take its rightful place as a sovereign state in the family of nations.

May God protect our people. Nkosi Sikelel’ iAfrika. Morena boloka setjhaba sa heso.

God seën Suid-Afrika. God bless South Africa. Mudzimu fhatutshedza Afurika.

Hosi katekisa Afrika.

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CO NT E N T S 26

10

UPFRONT Contributors and credits

4

Adver tisers index

6

Editor’s letter

9

18

ARTICLES

2

SONA address

10

The new Cabinet

12

National Planning Commission

18

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F R A M E WO R K

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CONTENTS

A ) T H E M E D I U M T E R M S T R AT E G I C

68

The Medium-Term Strategic Framework (2014-2019)

26

B ) N AT I O N BU I L D I N G

49

Prosperous par tnerships

52

Better together

60

The private sector and the National Development Plan

68

88

B ) P OV E R T Y A L L E V I AT I O N , I N E Q UA L I T Y A N D J O B C R E AT I O N

75

Special Economic Zones

76

The road to growth

84

The finance sector and pover ty alleviation

88

Growing SA through the green economy

94

C) INVESTMENT OPPORTUNITIES

107

The state of investment in South Africa

108

Investment risk assessment

114

The Four th Industrial Revolution

120

108

AT T H E BAC K Vision 2030 Summit and Awards 2018

129

Business cards

141

V IS IO N 2 0 3 0 , O U R F U T U RE OUR P LA N, V OL 4 |

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CONTRIBUTORS CONTRIBUTORS AND CREDITS

Adrian Gore Adrian Gore, founder and Group Chief Executive of Discovery Limited. He launched Discovery in South Africa in 1992, with one purpose: to make people healthier and enhance their lives.

GreenCape GreenCape is a non-profit organisation that drives the widespread adoption of economically viable green economy solutions from the Western Cape.

Laurence Hillman Laurence Hillman is CEO Financial Services at Telesure Investment Holdings (TIH), and Managing Director of 1Life

Tshediso Matona Thsediso Matona has been the Secretary of Planning in the National Planning Commission in the Presidency since 2015. In his current role, he provides strategic and technical support to the National Planning Commission, which advises government on the implementation of the National Development Plan.

Vusi Mona Vusi Mona was Head of Communication at The Presidency in July 2009. He joined GCIS in August 2010 as Deputy CEO responsible for Communication and Content Management.

In April 2013, he joined SANRAL as its General Manager: Marketing and Communications.

Rory Moore Accenture Innovation Lead – South Africa. Innovation and emerging technology expert with years of experience growing and leading multidisciplinary teams and working on bringing new ideas and technologies to life.

Christopher Palm Christopher Palm is the Chief Risk Advisor for the Institute of Risk Managers South Africa (IRMSA) who works with risk professionals globally to transform risk management into a key component of excellent decision-making.

Jenny Retief Jenny Retief is the CEO of Riversands Incubation Hub, an initiative to kick-start the growth of the small business economy in northern Johannesburg at the Riversands Commercial Park.

Karl Westvig As CEO of Retail Capital, Karl Westvig is changing the playing field for everyone as he guides small business owners to make smart decisions as they apply for funding to see them through SA’s technical recession.

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CREDITS CEO Ralf Fletcher TOPCO STUDIO Publishing Director Van Fletcher Group Editor Fiona Wakelin Features Editor Elske Joubert Assistant Editor Nicole Forrest Designers Christine Siljeur Nabiehl Bester Tr a f f i c M a n a g e r Daniel Bouwer SALES Associate Publisher Lee-Ann Bruce Head of Brand Clay Tsapi Sales Executives Emlyn Dunn Richard Desha Jan Odayan Printers LAWPrint Images iStock Head Office To p M e d i a & C o m m u n i ca ti o n s ( Pty) L td T / A To p c o M e d i a 2 n d F l o o r , E l ka y H o u se 1 8 6 L o o p S t r e e t , C a pe T o w n , 8 0 0 1 Te l : + 2 7 8 6 0 0 0 9 5 9 0 | Fa x: + 2 7 2 1 4 2 3 7 5 7 6 E m a i l : i n f o @ t o pc o .c o .za We b s i t e : w w w .to pc o .c o .za Disclaimer All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written consent of Top Media & Communications (Pty) Ltd T/A Topco Media. Reg. No. 2011/105655/07. While every care has been taken when compiling this publication, the publishers, editor and contributors accept no responsibility for any consequences arising from any errors or emissions.

ISBN: 978099217785004001

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THE ALL-NEW BMW 3 SERIES.

HIGH PERFORMANCE AND LOW CONSUMPTION THROUGH BMW GOVERNMENT SALES.

Find out more at bmw.co.za/government

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ADVERTISERS INDEX

ADVERTISERS INDEX AB S A ACS A B MW Gauteng P rov i n c i a l Le g i sl a t u re Gautrain M a n a g e me n t A g e n c y HRDC Jo hns o n & Jo h n so n KF C King S ab a ta D a l i n d ye b o T V E T C ol l e ge M aj uba T V E T C o l l e g e M o theo T V E T M ylan S A Pet ro le um A g e n c y SA PR P S o lut i o n s Qhubeka Fo re n si c Se r v i c e s S A I PA S andvik M i n i n g R SA S A N Par ks S ea H ar ve st S ente ch S E RR S yn e rg y S iem e ns S iyakha I mp l e me n ta t i on Pa r t n e r s S iyas hesh a Le a d e r sh i p I n c u b a tor S PAR S qw idN E T Te lko m Ts him o ng Ts hwane Sou t h T V E T C o l l e g e ubank Uc o no my Um geni Wa te r Um s iz i S u sta i n a b l e Soc i a l So l u t i o ns 6

21 40 5 50 82 22 15 72 128 66 111 7 IBC 124 81 64 98 92 56 16 112 126 38 131 35 104 58 135 102 8 55 118 117

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EDITOR’S LETTER

“Our future is greater than our past “ – Mental Fight, Ben Okri .

Seven years ago South Africa adopted the National Development Plan to systemically tackle poverty, unemployment and inequality. This gives us only 11 years to achieve its vision by the watershed year 2030.

Tempus ‘is fugitting’. We are not on track as a nation and a seismic shift needs to happen to lower our disturbingly high unemployment rate: “The unemployment rate increased by 1.4 percentage points from 27.6% in the first quarter of 2019 to 29% in the second quarter of the year. According to StatsSA, this is as a result of an increase of 455 000 in the number of people who are unemployed and an increase of 21 000 in employment.

As a country we all need to lean in and be part of the solution. One of the The number of unemployed South Africans has

heartening initiatives is #Imstaying – a Facebook group which, at the time

climbed 9.4 percentage points since this time last

of going to print, has around 700 000 members and is growing by the day.

year, putting the number of people without jobs at 6.7

After being eroded by nine years of corruption and state capture, resilient

million, StatsSA found. – Sarah Smit 30 Jul 2019 13:05

South Africans are celebrating what makes Mzansi home.

– Mail and Guardian The publication would not have been possible without Features Editor Public–private partnerships are key to meeting this

Elske Joubert, Assistant Editor Nicole Forrest, Designers Christine Siljeur

challenge head on. In this publication we look at four

and Nabiehl Bester and Traffic Manager, Daniel Bouwer.

aspects of Vision 2030 – from the measurement of where we are according to the Medium Term Strategic

We hope you enjoy the read.

Framework (MTSF) – to the all-important topic of investment opportunities: •

Taking the temperature of the medium term

FIONA WAKELIN GROUP EDITOR

strategic framework •

Nation building

•

Poverty alleviation, inequality and job creation

•

Investment opportunities

V IS IO N 2 0 3 0 , O U R F U T URE OUR P LA N, V OL 4 |

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“OUR FUTURE IS GREATER THAN OUR PAST” On 20 June 2019, President Cyril Ramaphosa delivered the first State of the Nation Address of the sixth Parliament of South Africa under the theme ‘Let’s grow South Africa together as we celebrate 25 years of freedom’. This is an excerpt from the address.

“We adopted the National Development Plan (NDP) in 2012 to guide our national effort to defeat poverty, unemployment and inequality.

However, with 10 years to go before we reach the year 2030, we have not made nearly enough progress in meeting the NDP targets. Unless we take extraordinary measures, we will not realise Vision 2030. This means that we need to prioritise. We need to focus on those actions that will have the greatest impact; actions that will catalyse faster movement forward, both in the immediate term and over the next 10 years.

It is worth noting that the Medium-Term Strategic Framework (MTSF) for the last five years had more than 1 100 indicators by which we were to measure progress in the implementation of the NDP. Now is the time to focus on implementation. It is time to make choices. Some of these choices may be difficult and some may not please everyone.

In an economy that is not growing, at a time when public finances are limited, we will not be able to do everything at one time. As we enter this new administration, we will focus on the following priorities: economic transformation and job creation; education, skills and health; consolidating the social wage through reliable and quality basic services; spatial integration, human settlements and local government; social cohesion and safe communities; a capable, ethical President Cyril Ramaphosa | Image: GCIS

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and developmental state; and a better Africa and world.

| VISION 20 3 0 , O UR F UTUR E O UR P LAN , V O L 4

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EDITORIAL | SONA

“As we enter this new era, let us take to heart the words of Ben Okri, when he says:

All our programmes and policies across all departments and agencies will be directed in pursuit of these overarching tasks. At the same time, we must restore the NDP to its place at the centre of our national effort, to make it alive, to make it part of the lived experience of the South African people.

As South Africa enters the next 25 years of democracy, and in pursuit of the objectives of the NDP, let us proclaim a bold and ambitious goal, a unifying purpose, to which we dedicate all our resources and energies. As we enter the last decade of Vision 2030, let us even more clearly define the South

‘Will you be at the harvest, Among the gatherers of new fruits?

Then you must begin today to remake Your mental and spiritual world, And join the warriors and celebrants Of freedom, realisers of great dreams.

You can’t remake the world Without remaking yourself.

Each new era begins within.

Africa we want and agree on the concrete actions we need to achieve them.

It is an inward event,

To ensure that our efforts are directed, I am suggesting that, within the

For inner liberation.

priorities of this administration, we agree on five fundamental goals for the

We could use it to turn on

next decade. Let us agree, as a nation and as a people united in our

Our inward lights.

aspirations, that within the next 10 years we will have made progress in tackling poverty, inequality and unemployment, where no person in South Africa will go hungry, our economy will grow at a much faster rate than our population, two million more young people will be in employment, our schools will have better educational outcomes and every 10-year-old will be able to read for meaning, and violent crime will be halved.

Let us make these commitments now – to ourselves and to one another – knowing that they will stretch our resources and capabilities, but understanding that if we achieve these five goals, we will have fundamentally

With unsuspected possibilities

We could use it to use even the dark And negative things positively.

We could use the new era To clean our eyes, To see the world differently, To see ourselves more clearly.

Only free people can make a free world.

Infect the world with your light.

Help fulfill the golden prophecies.

transformed our society. Working together there is nothing we cannot be,

Press forward the human genius.

nothing we cannot do, and nothing we cannot achieve.

Our future is greater than our past.’ ” V IS IO N 2 0 3 0 , O U R F U T U RE OUR P LA N, V OL 4 |

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THE CABINET 2019

By Fiona Wakelin

Department of Trade and Industry

Economic Development Department

Department of Mineral Resources and Energy

Department of Energy

Department of Human Settlements

Department of Water and Sanitation

In 2019, President Cyril Ramaphosa’s new cabinet cut down the number of ministries from 36 (72 members) to 28 (64

Department of Higher Education and Training

Department of Science and Technology

Department of Environmental Affairs

Department of Agriculture, Forestry and Fisheries

Department of Sport and Recreation

Department of Sports, Arts and Culture

members), including 28 ministers and 34 deputies.

Several departments with similar mandates were amalgamated. The departments that have been combined include:

Deputy President DAVID MABUZA

Minister: Agriculture, Land Reform and Rural Development ANGELA THOKO DIDIZA

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Department of Agriculture, Forestry and Fisheries

Minister in the Presidency JACKSON MTHEMBU

Deputy: Rural Development SDUMO DLAMINI

Department of Rural Development and Land Reform

Deputy THEMBI SIWEYA

Deputy: Land Reform MCEBISI SKWATSHA

Department of Communications

Department of Telecommunications and Postal Services

Minister in the Presidency: Women and Youth MAITE NKOANA-MASHABANE

Minister: Basic Education ANGIE MOTSHEKGA

Deputy HLENGIWE MKHIZE

Deputy REGINAH MHAULE

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Deputy PINKY KEKANA

Minister: Cooperative Governance and Traditional Affairs NKOSAZANA DLAMINI-ZUMA

Deputy: Local Government PARKS TAU

Deputy: Traditional Affairs OBED BAPELA

Minister: Defence and Military Veterans NOSIVIWE MAPISA-NQAKULA

Deputy THABANG MAKWETLA

Minister: Human Settlements, Water and Sanitation LINDIWE SISULU

Deputy: Human Settlements, PAM TSHWETE

Deputy: Water and Sanitation DAVID MAHLOBO

Minister: Employment and Labour THULAS NXESI

Deputy BOITUMELO MOLOI

Deputy JOE PHAAHLA

Minister: Finance TITO MBOWENI

Minister: Higher Education, Science and Technology BLADE NZIMANDE

Deputy DAVID MASONDO

Minister: Environment, Forestry and Fisheries BARBARA CREECY

Deputy BUTI MANAMELA

Minister: International Relations and Cooperation NALEDI PANDOR

Deputy MAGGIE SOTYU

Minister: Health ZWELINI MKHIZE

Minister: Home Affairs AARON MOTSOALEDI

Deputy NJABULO NZUZA

Deputy ALVIN BOTES

Deputy CANDITH MASHEGO-DLAMINI

V IS IO N 2 0 3 0 , O U R F U T U RE OUR P LA N, V OL 4 |

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EDITORIAL | THE CABINET 2019

Minister: Communication and Digital Technologies STELLA NDABENI-ABRAHAMS

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EDITORIAL | THE CABINET 2019

Minister: Justice and Correctional Services RONALD LAMOLA

Deputy CASSEL MATHALE

Deputy NOXOLO KIVIET

Deputy: Justice and Constitutional Development JOHN JEFFERY

Deputy Minister: Public Enterprises PHUMULO MASUALLE PRAVIN GORDHAN

Minister: Small Business Development KHUMBUDZO NTSHAVHENI

Minister: Social Development LINDIWE ZULU

Deputy ZIZI KODWA

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Deputy: Correctional Services INKOSI PHATHEKILE HOLOMISA

Deputy ROSEMARY CAPA

Deputy HENDRIETTA BOGOPANE-ZULU

Minister: Tourism NKHENSANI KUBAYI-NGUBANE

Minister: Mineral Resources and Energy GWEDE MANTASHE

Deputy BAVELILE HLONGWA

Minister: Police BHEKI CELE

Minister: Public Service and Administration SENZO MCHUNU

Deputy SINDY CHIKUNGA

Minister: Public Works and Infrastructure PATRICIA DE LILLE

Deputy FIKILE MAJOLA

Deputy NOMALUNGELO GINA

Minister: Trade, Industry and Competition EBRAHIM PATEL

Minister: Sports, Arts and Culture NATHI MTHETHWA

Deputy FISH MAHLALELA

Deputy NOCAWE MAFU

Minister: Transport FIKILE MBALULA

Minister: State Security AYANDA DLODLO

Deputy DIKELEDI MAGADZI

| VISION 20 3 0 , O UR F UTUR E O UR P L AN , VO L 4

Johnson&J

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CONNECTING YOU TO THE DIGITAL WORLD As a key industry player in telecommunications and multimedia markets, SENTECH enables broadcasting and digital content services to corporate institutions, government departments and state-owned entities.

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SENTECH is the premier provider of electronic communications

ADVERTORIAL | SENTECH

network services in the broadcasting and communications industry. SENTECH is licensed to provide Electronic Communications Network Services (ECNS) and Electronic Communications Services (ECS).

SENTECH operates 367 terrestrial broadcast sites and a satellite platform to provide signal distribution services for television and radio. SENTECH has infrastructure that provides up-linking and down-linking of programmes via satellite and can be used for bidirectional communications as well as for direct-to-home (DTH) broadcasts. Our masts at high-sites are used for the broadcast of television and radio to the public. These facilities are also utilised by other telecommunications services providers such as cellular phone operators, wireless internet service providers, government entities and private telecommunications companies.

The company has expanded its footprint to clients in subSaharan Africa to provide broadcasting signal distributions and managed services such as Digital Terrestrial Television (DTT) solutions, Digital Radio (DAB+), training and consultancy services. SENTECH offers a wide range of services designed to meet the needs of broadcast and telecoms operators across the continent.

Transformation a priority SENTECH supports underprivileged communities, mainly in the field of education and health through its CSI) Schools

As a leading service provider of digital content delivery,

Connectivity Programme. Fifty-two schools have been

SENTECH’s Content and Multimedia, Managed Infrastructure and Connectivity services connect customers anywhere through

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We continue to make great strides as we work on South Africa’s

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own communications satellite.

of SENTECH’s transformation and development mandate.

Through its ESD initiatives, the company stimulates the growth of small and medium enterprises, creates jobs and provides critical ICT intensive skills for the economy. So far, SENTECH has incubated 20 SMMEs, of which 18 are potential suppliers and two are existing suppliers. SENTECH has also partnered and collaborated with three universities – the University of Pretoria, University of Witwatersrand and University of Cape Town – to sponsor research and bursaries for undergraduate and postgraduate students in the electrical engineering field.

The company also runs internships through the MICT SETA to assist graduates coming into the working world. They have employed 62% of the 220 students that have been part of this programme over the last 10 years.

CONTACT US Tel: 011 471 4400 | Call Centre: 086 073 6832 | Email: communication@sentech.co.za / support@sentech.co.za Facebook: www.facebook.com/SentechLtd | Twitter: @SentechLtd | LinkedIn: SENTECH SOC Limited

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SOUTH AFRICA AT A CROSSROADS THE NATIONAL PLANNING COMMITTEE’S PROPOSALS TO ACCELERATE ACHIEVING VISION 2030 The National Planning Committee

South Africa continues to stand at a crossroads, posing a very serious threat to achieving the National Development Plan (NDP) 2030 goals of full employment and a decent life for all. Urgent course correction is needed for revitalisation. This is the conclusion of the National Planning Committee’s (NPC’s) review of economic progress against NDP targets.

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HUMAN RESOURCE DEVELOPMENT COUNCIL OF SOUTH AFRICA: PARTNERING TO INNOVATIVELY DEVELOP SA’S HUMAN POTENTIAL The HRDC was established in March 2010 with the goal to improve the foundation of human resources in South Africa by focusing on economic and social demands as well as skills development.

In March 2006, the South African gover nment decided

initiative. JIPSA did not duplicate existing structures

to establish a short-term skills intervention initiative

but rather set priorities, identified and resolved systems

within the office of the Deputy President. The rationale

blockages and constraints, and monitored and reported

for this decision was that the gover nment recognised that

on progress. It also sought to align the training and skills

education and skills development is key to driving socio-

development efforts of the public and private sectors

e c o n o m i c g r o w t h i n o r d e r t o s u b s t a n t i a l l y r e d u c e p o v e r t y,

without undermining the development and implementation

inequality and unemployment.

o f l o n g e r- t e r m H R D s t r a t e g i e s .

The gover nment recognised that while long-term

The distinguishing feature of JIPSA was that it represented

improvement in human resource development (HRD) takes

a specific joint venture by gover nment, business and labour

t i m e , a n u rg e n t n e e d e x i s t e d t o a d d r e s s p r i o r i t y s k i l l s

to make a critical difference to skills provision over the

a r e a s i m m e d i a t e l y, g r o w t h e e c o n o m y a n d i m p r o v e l a b o u r

short and medium terms, in direct response to identified

absorption. The gover nment also pointed out that, in order

s k i l l s n e e d s i n t h e e c o n o m y, a n d t o p r o m o t e l a b o u r

to be successful, this would require a collaborative effort

absorption. JIPSA focused the attention of key government

on behalf of government and all its social partners.

d e p a r t m e n t s a n d b o d i e s – s u c h a s t h e S E TA s a n d p u b l i c education and training providers – on the achievement of

22

In support of the above, the Joint Initiative on Priority Skills

core national objectives. It called upon business leadership

Acquisition (JIPSA) was established under the leadership

to ensure that the private sector played an active and

of the then-Deputy President as a high-level task team

e n e rg e t i c r o l e i n t h e p r o v i s i o n o f p r i o r i t y s k i l l s , a n d i t c a l l e d

to accelerate human resources and skills development

u p o n o rg a n i s e d l a b o u r t o t h r o w i t s w e i g h t b e h i n d a s h a r e d

in priority skills areas to support the national growth

priority skills agenda.

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T h e H R D C ’s f o r m a l r e l a t i o n s h i p s w i t h t h e P r o v i n c i a l H u m a n

business and labour to fast-track the provision of priority

Resource Development Councils are decided by the Plenary

skills required to support accelerated and shared growth in

in consultation with such councils.

ADVERTORIAL | HUMAN RESOURCE DEVELOPMENT COUNCIL OF SOUTH AFRICA

JIPSA, in short, was a joint initiative of government,

South Africa. JIPSA did not duplicate the roles of existing government departments, statutory bodies and institutions, but sought to establish mutually agreed priorities, improve communication and the flow of information between

OUR AIMS •

To d e v e l o p i n s t i t u t i o n a l s y n e rg i e s f o r a n integrated Human Resource Development

the relevant bodies, identify and address problems and

Strategy of South Africa (HRDSA) which will

bottlenecks, and monitor and report on progress against

stimulate a culture of training and lifelong

a g r e e d t a rg e t s .

l e a r n i n g a t i n d i v i d u a l , o rg a n i s a t i o n a l a n d n a t i o n a l

JIPSA also provided information and practical experience that informed the establishment of the Human Resource

l e v e l s o f e m p l o y a b i l i t y.

•

development needed to successfully transform

Development Council of South Africa (HRDC) in March 2010,

S o u t h A f r i c a i n t o a k n o w l e d g e e c o n o m y.

w h i c h i s a m u c h l o n g e r- t e r m s t r a t e g y t h a t a i m s t o m e e t t h e c o u n t r y ’s s o c i a l a n d e c o n o m i c d e v e l o p m e n t n e e d s .

OUR MISSION •

GOVERNANCE STRUCTURE

Advise the government on the HRD strategy and its priorities

The Plenary is chaired by the Deputy President of the Republic of South Africa, with two deputy chairpersons

•

( f r o m o rg a n i s e d l a b o u r a n d o rg a n i s e d b u s i n e s s respectively). The chair of the Executive Committee (EXCO) serves as the first deputy chairperson and is appointed

Identify blockages, provide solutions to unblock them and monitor implementation thereof

•

Coordinate the efforts of gover nment departments and social partners in the implementation of the

by the Deputy President at the inaugural meeting of the

HRD Strategy

Plenary of Council.

•

Monitor and report on the implementation of the HRD Strategy

The second deputy chairperson is selected through a process whereby Council members submit names to the Secretariat for consideration by the Deputy President within

•

The Deputy President announces the appointment of the second deputy chair at the plenary meeting of the Council following its inaugural meeting.

Evaluate the impact of the HRD Strategy against agreed indicators

30 days of the inaugural meeting of the Plenary of Council.

OUR OBJECTIVES Reduce To u rg e n t l y a n d s u b s t a n t i v e l y r e d u c e t h e s c o u rg e s o f p o v e r t y, i n e q u a l i t y a n d

G o v e r n m e n t , c i v i l s o c i e t y s e c t o r s , o rg a n i s e d b u s i n e s s , professional bodies, higher education institutions, research c o m m u n i t i e s , c o - o p t e d m e m b e r s a n d o rg a n i s e d l a b o u r a r e represented in the HRDC.

To i n c r e a s e p r o d u c t i v i t y a n d t h e h u m a n r e s o u r c e

unemployment in South Africa Improve To p r o m o t e j u s t i c e a n d s o c i a l c o h e s i o n t h r o u g h

The HRDC comprises of the below tiers:

improved equity in the provision and outcomes of education and skills development programmes

•

The Plenary

•

The Executive Committee (EXCO)

•

The Standing Committee (SC)

•

HRD Provincial Coordination Forum (HRDPCF)

growth and development through the improved

•

The Secretariat

competitiveness of the South African economy

Increase To s u b s t a n t i v e l y i m p r o v e n a t i o n a l e c o n o m i c

CONTACT US Physical address: 6 Floor Ndinaye House, 178 Francis Baard Street, Pretoria 0001 Mr Michael Radzilani: Telephone: 012 943 2912

|

Email: Radzilani.m@dhet.gov.za

Mr Lesley Makhubele: Telephone: 012 943 3175

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Email: Makhubele.L@dhet.gov.za

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MEDIUM TERM STRATEGIC FRAMEWORK V IS IO N 2 0 3 0 , O U R F U T URE OUR P LA N, V OL 4 |

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MEDIUM TERM STRATEGIC FRAMEWORK: 2014 – 2019 Government Communication and Information System (GCIS)

The Medium Term Strategic Framework (MTSF) is Government’s strategic plan for the 2014–2019 electoral term. It reflects the commitments made in the election manifesto of the governing party, including the commitment to implement the National Devlopment Plan (NDP). The MTSF sets out the actions Government will take and targets to be achieved. It also provides a framework for the other plans of national, provincial and local government.

The MTSF highlights Government’s support for a competitive economy, creation of decent work opportunities and encouragement of investment. This is the first MTSF to follow the adoption of the NDP in September 2012. The introduction of a long-term plan brings greater coherence and continuity to the planning system, and means that the MTSF now becomes a five year building block towards the achievement of the vision and goals of the country’s long-term plan.

THE AIM OF THE MTSF IS TO ENSURE POLICY COHERENCE, ALIGNMENT AND COORDINATION ACROSS GOVERNMENT PLANS, AS WELL AS ALIGNMENT WITH BUDGETING PROCESSES. PERFORMANCE AGREEMENTS BETWEEN THE PRESIDENT AND EACH MINISTER WILL REFLECT THE RELEVANT ACTIONS, INDICATORS AND TARGETS SET OUT IN THIS MTSF .

Within the NDP vision, key policy instruments developed in the previous term will continue to drive government’s policy agenda.

These include the New Growth Path, which sets the trajectory of economic development, the National Infrastructure Plan, which guides the rollout of infrastructure to improve people’s lives and enable economic growth, and the Industrial Policy Action Plan, which focuses on promoting investment and competitiveness in leading sectors and industries. Government will also take forward key social developmentinitiatives, including social security and retirement reform, National Health Insurance, improvements in basic education and expansion of technical and vocational education.

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SUMMARY OF PRIORITIES AND ACTIONS FROM 2014-2019 EDITORIAL | MEDIUM TERM STRATEGIC FRAMEWORK: 2014 – 2019

The MTSF is structured around 14 priority outcomes which cover the focus areas identified in the NDP and Government’s electoral mandate. These are made up of the 12 outcomes which were the focus of the 2009–2014 administration, as well as two new outcomes (social protection, nation-building and social cohesion). A summary of each of these 14 outcomes is provided below. Further details of the actions and targets are set out in an appendix for each outcome.

QUALITY BASIC EDUCATION Education plays an important role in equalising individuals’ life chances, promoting economic mobility, advancing economic growth, creating employment, eradicating poverty and reducing inequality. Improving the quality of education requires further improvements in early childhood development, investment in school infrastructure and facilities, effective school management, and substantial improvements in literacy and numeracy.

The NDP’s vision for 2030 is that South Africans should have access to education and training of the highest quality, characterised by significantly improved learning outcomes.

The NDP incorporates key targets set out in the Basic Education Sector plan (Towards the Realisation of Schooling 2025). Targets for 2030 include improved

This would be a major improvement from current ANA scores. The

retention of learners and improved learning outcomes. All children

ANA system will also have to be improved to allow for technically

between ages 7 and 18 should be in school and 65% of learners

sound comparison across years. International benchmarks will

should be in class groups appropriate to their age by 2019.

continue to be used, including the Southern and Eastern African Consortium for Monitoring Educational Quality (SACMEQ) and the

Currently, Grade R enrolment has reached near universal enrolment

Trends in International Mathematics and Science Study (TIMSS).

and more than 90% of learners aged between 7 and 15 are enrolled in school. However, many learners from poor communities drop out of school after grade 9 and leave without a senior certificate or alternative qualification. By 2019, 60% of each age cohort should receive either a National Senior Certificate or an alternative

These targets are set against the background of some signs of a turnaround in the basic education system. For example, retention to Grade 9 improved from 80% in 2002

vocational or further education and training qualification.

to 85% in 2011 and South Africa’s performance scores

While improvements in enrolment and school completion are

international benchmark for learners at an intermediate

important, the key measures relate to quality and learning achievements. The target for 2019 is that 75% of learners tested through the Annual National Assessments (ANA) in Grades 3, 6

in TIMMS improved from 285 to 352 over this period (the level is 550 points). At Grade 12 level, the number qualifying for university entrance increased from 110 000 in 2009 to 172 000 in 2013. The target for 2019 is 250 000.

and 9 should achieve above 50% in both literacy and numeracy.

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A LONG AND HEALTHY LIFE FOR ALL SOUTH AFRICANS The estimated average life expectancy of South Africans increased from 51.6 years in 2005 to 61 years in 2012.

Advances in public health services have contributed to this progress, including the following: • Improved access to primary healthcare services, measured in terms of visits per year, which increased from 67 million in 1998 to 128 million in March 2013 • An increase in the number of people receiving antiretroviral treatment (ART) in the public sector, from 47 000 in 2004 to over 2.4 million in 2013 • A decrease in the Mother-to-Child Transmission (MTCT) of HIV from 8.5% in 2008 to 2.7% in 2011 • A decrease in the infant and child mortality rates by an average annual rate of 10.3% between 2006 and 2011 • An increase in the tuberculosis (TB) cure rate from 57.7% in 2006 to 73.8% in 2011, together with a decrease in the proportion of people defaulting on their TB treatment from 9% to 6.1%

• Reduced healthcare costs • Improved human resources for health, revitalisation of nursing colleges and expanded professional health training • Investment in health management improvements and leadership, including reform of the governance, funding and management of central hospitals as national referral facilities • Improved health facility planning and accelerated infrastructure delivery • Strengthened implementation of HIV/AIDS and tuberculosis prevention and management programmes • Expanded access to sexual and reproductive health by improving the availability of diverse contraception methods • Reduced unwanted pregnancies, with a special focus on teenage pregnancies • Implementation of the African Union-inspired Campaign on Accelerated Reduction of Maternal and Child Mortality in Africa (CARMMA).

The vision of the NDP is a health system that works for everyone, comprising an appropriate balance between preventative medicine, health promotion and curative services that are affordable and accessible to all. The NDP suggests that, by 2030, it is possible for South Africa to:

Targets for the MTSF period include the following: • Construction of 213 clinics and community health

• Raise life expectancy to at least 70 years

centres and 43 hospitals, and refurbishment of over

• Ensure that the generation of under-20s is largely free of HIV

870 health facilities in 11 NHI pilot districts

• Significantly reduce the burden of disease • Achieve an infant mortality rate of less than 20 deaths per 1 000 live births, and an under-5 mortality rate of less than 30 per 1 000.

The strategy for achieving better health outcomes is based on progressively improving the quality and accessibility of health services through the phasing in of National Health Insurance.

The NHI funding model will give effect to three key principles: universal provision of quality health care, social solidarity through cross-subsidisation and equity in access through free healthcare at the point of delivery. Over the MTSF 2014–2019 period, key components of this reform path will include:

• Doubling of the annual training of doctors locally and abroad to 2 000 a year • Doubling of the number of people on antiretrovirals from the present 2.4 million to a projected 5.1 million • Intensified TB screening and treatment programmes for vulnerable groups, including 150 000 inmates of correctional services facilities, 500 000 mineworkers and an estimated 600 000 people living in mining communities • Vaccination of all girls in Grade 4 against the human papilloma virus, to significantly reduce their risk of acquiring cervical cancer in the future

• Improved quality of health care and reduced waiting times in the public sector, supported through the newly established Office of Health Standards Compliance and adherence to a Patients’ Charter • Expanded and re-engineered primary health care, including municipal Ward-based Outreach Teams and school health services • Expanded district-based piloting of NHI services • Promotion of healthy lifestyles and encouragement of regular screening for noncommunicable diseases

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The goals for 2019 of these health interventions include raising life expectancy at birth to 63 years, decreasing the under- mortality rate from 41 in 2012 to 23 per 1 000 live births; decreasing the infant mortality rate from 27 in 2012 to 18 per 1000 live births in 2019; and lowering the maternal mortality rate from 269 to below 100 per 100 000 live births.

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EDITORIAL | MEDIUM TERM STRATEGIC FRAMEWORK: 2014 – 2019

ALL PEOPLE IN SOUTH AFRICA ARE AND FEEL SAFE The NDP vision is to ensure that, by 2030, people living in South Africa feel safe at home, at school and at work, and enjoy a community life free of fear. Women should be able to walk freely in the street and children should be able to play safely outside. Businesses should be able to invest confidently and create jobs without the threat of livelihoods being undermined by crime.

Key targets for the MTSF include: • A reduction in the number of reported contact crimes • An increased proportion of citizens feel safe walking alone, during the day or at night, as measured in official surveys • An increase in the proportion of households that are satisfied with police services in their area, and with the way courts deal with the perpetrators of crime • Improvements in citizens’ perceptions of levels of crime and progress in reducing crime, as measured in official surveys • An improvement in South Africa’s ranking on the Transparency International Corruption Perception Index.

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A SKILLED AND CAPABLE WORKFORCE TO SUPPORT AN INCLUSIVE GROWTH PATH

the needs of a growing economy. To support the knowledge

The NDP envisages that by 2030, South Africans should have

accompanied by increased graduate numbers in engineering

economy the number of PhD graduates will increase from 1 870 per year in 2013 to 3 000 per year by 2019. This will be

access to education and training of the highest quality. The

science (57 000 over the five-year period – 9 974 were

education, training and innovation system should cater for

produced in 2012), human and animal health (45 000 over

different needs and produce highly skilled individuals. The

the five-year period – 8 015 were produced in 2012), natural

graduates of the post-school system should have adequate

and physical sciences (36 000 over the five-year period – 6 366

skills and knowledge to meet the current and future needs of

were produced in 2012). To support basic education, universities

the economy and society.

will produce 20 000 teacher graduates per year by 2019, an increase from 13 740 in 2013.

To ensure more students have access to post-school education and training, there is a need to provide more places, such as

For the university sector, the focus is on increasing the number

new TVET college campuses and student accommodation.

of lecturers with PhDs while reducing the student dropout rate.

An additional area of focus is on producing the next generation

The number of students enrolled at universities will increase

of lecturers by increasing the pool of post-graduate students

from 950 000 in 2013 to 1.07 million in 2019, and the number

and by increasing research output.

enrolled in TVET colleges will increase from 670 455 in 2013 to 1.238 million in 2019.

The number of entry-level academic staff receiving teaching

However, access is not enough if the probability of completing

and Research Development Grant will increase from 50

the qualifications is not increased. The MTSF also includes

academics in 2012 to 400 academics by 2019.

and research development opportunities from the Teaching

actions to increase the number of students enrolled in foundation programmes which provide enrichment for students who are not

To transform the historical and social composition of the

adequately prepared for post-school training. It is envisaged that

academic work force by 2019, the number of new black

university enrollment in foundation programmes will increase from

entrants will have to increase by at least 100 per annum by

16 300 students in 2013 to 36 000 in 2019. To reduce financial barriers to accessing post school training, there will be an evaluation of the current financial aid system to improve how the funding is disbursed by 2015.

2019. The number of postgraduate students awarded bursaries and fellowships by the National Research Fund will increase to 27 411 cumulatively over the five-year period for masters students (3 704 in 2012), and 15 209 cumulatively over the five-year period for doctoral students (2 265 in 2012). Work

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The number of artisans produced every year will increase

placements will be increased by encouraging closer relations

from 18 110 in 2013 to 24 000 per annum by 2019, to meet

between industry and institutions of learning.

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EDITORIAL | MEDIUM TERM STRATEGIC FRAMEWORK: 2014 – 2019

DECENT EMPLOYMENT THROUGH INCLUSIVE GROWTH The NDP provides a long-term vision through to 2030 towards dealing with the challenges of unemployment, inequality and creating a more inclusive society. Central to meeting the vision enshrined in the NDP is the implementation of the New Growth Path (NGP), the Industrial Policy Action Plan (IPAP) and the National Infrastructure Plan.

These short and medium-term plans provide a more detailed programme of action for the next five years within the context of the NDP.

Key targets for the MTSF include: •

An increase in the GDP growth rate from 2.5% in 2012 to 5% in 2019

•

An increase in the rate of investment to 25% of GDP in 2019

•

The share in household income of the poorest 60% of households rising from 5.6% in 2011/12 to 10% in 2019

•

A decrease in the official unemployment rate from 25% in the first quarter of 2013 to 14% in 2020.

AN EFFICIENT, COMPETITIVE AND RESPONSIVE ECONOMIC INFRASTRUCTURE NETWORK The NDP 2030 vision is for investment in a strong network of economic infrastructure designed to support the country’s medium- and long-term economic and social objectives. This economic infrastructure is precondition for providing basic services such as electricity, water, sanitation, telecommunications and public transport, and it needs to be robust and extensive enough to meet industrial, commercial and household needs.

Key targets for the MTSF include: • Increasing the electricity generation reserve margin from 1% currently to 19% in 2019 A 5% increase in bulk water resources commissioned in comparison to 2014 • An increase in broadband penetration from 33.7% in 2013 to 80% in 2019 • Increasing the tonnage moved on rail from 207 Mt in 2013 to 330 Mt by 2019 • Improving the operational performance of sea ports and inland terminals from 28 to 35 average crane moves per hour by 2019.

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VIBRANT, EQUITABLE, SUSTAINABLE RURAL

COMMUNITIES CONTRIBUTING TOWARDS FOOD SECURITY FOR ALL

By 2030 the rural economy (agriculture) should create close to 1 million new jobs, contributing significantly to reducing overall unemployment.

Government aims to achieve the following over the next five years: • Increase the percentage of productive land owned by previously disadvantaged individuals from 11.5% in 2013 to 20% • Ensure that, by 2019, 7.2 million hectares of land in total will have been transferred to previously disadvantaged individuals and is being used productively (as compared to 4 million hectares by 2013) • Reduce the percentage of households who are vulnerable to hunger from 11.4% in 2013 to less than 9.5% • Reduce the percentage of the population living below the lower bound poverty line (R443 in 2011 prices) from 32.3% to below 22% • Reduce rural unemployment from the current 49% to less than 40%.

The main policy imperatives are: • Improved land administration and spatial planning for integrated development in rural areas • Sustainable land reform for agrarian transformation • Improved food security • Smallholder farmer development and support (technical, financial and infrastructure) for agrarian transformation • Increased access to quality basic infrastructure and services, particularly education, healthcare and public transport in rural areas • Support for sustainable rural enterprises and industries characterised by strong rural-urban linkages • Increased investment in agro-processing, trade development and improved access to markets and financial services resulting in rural job creation.

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EDITORIAL | MEDIUM TERM STRATEGIC FRAMEWORK: 2014 – 2019

RESPONSIVE, ACCOUNTABLE, EFFECTIVE AND EFFICIENT LOCAL GOVERNMENT The central focus of the 2014-2019 MTSF is on ensuring sustainable and reliable access to basic services, particularly in weaker municipalities which have the highest unmet demand for basic services. The NDP proposes that by 2030 the proportion of people with access to the electricity grid should rise to at least 90%, with non-grid options available for the remainder of households. Full access to affordable and reliable water and sanitation is envisaged before 2030.

Where municipalities lack technical capacity, regional utilities or alternative institutional mechanisms should be used so that basic services are not compromised.

Key targets for the MTSF include: • Increase in the percentage of households with access to a functional water service from 85% in 2013 to 90% by 2019.

• Increase in the percentage of households with access to a functional sanitation service from 84% in 2013 to 90% by 2019, including elimination of bucket sanitation in the formal areas.

• 1.4 million additional households to be connected to the grid between 2014 and 2019, and 105 000

SUSTAINABLE HUMAN SETTLEMENTS AND IMPROVED QUALITY OF HOUSEHOLD LIFE To achieve the vision of sustainable human settlements and an improved quality of household life, the priorities for 2014-2019 include: • Adequate housing and improved quality living environments, with approximately 1.4 million more households living in new or improved housing conditions by 2019 • A functional and equitable residential property market with

additional non-grid connections.

• Income support to the unemployed through expansion of the Community Work Programme to reach 1 million participants in 2019.

• An increase in the level of public trust and confidence in local government from 51% in 2012 to 65% in 2019, as measured by the IPSOS survey.

• An improvement in overall municipal audit outcomes, with at least 75% of municipalities receiving unqualified audits by 2019.

a target of 110 000 new housing units delivered in the affordable gap market by 2019 • Enhanced institutional capabilities for effective coordination of spatial investment decisions, with a target of 49 municipalities assigned or accredited with the housing function • The title deeds for all 563 000 new subsidy units as well the backlog of 900 000 title deeds in the integrated residential housing programme will be transferred over the next five years • Informal settlement upgrading will be expanded to cover 750 000 households, ensuring basic services and infrastructure in some 2 200 informal settlements.

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EDITORIAL | MEDIUM TERM STRATEGIC FRAMEWORK: 2014 – 2019

PROTECT AND ENHANCE OUR ENVIRONMENTAL ASSETS AND NATURAL RESOURCES The NDP vision is that South Africa’s transition to an environmentally sustainable, climate-change resilient, low-carbon economy and just society will be well under way by 2030. The main focus for the MTSF period will be on planning, piloting and investing in the creation of a framework for implementing the transition to an environmentally sustainable and low-carbon economy in South Africa. This phase will include unblocking regulatory constraints, data collection, establishment of baseline information, and testing key strategies for change, to determine if these can be scaled up.

Targets for the MTSF period include: • Stabilisation and reduction of CO 2 (a 34% reduction in emissions of CO 2 from “business as usual” by 2020 (42% by 2025) • Implementation of climate change responses in six critical sectors • Increasing the percentage of the coastline with at least partial protection from 22.5% in 2013 to 27% in 2019 • Increasing the compliance of mines with the National Water Act from 35% in 2013 to 60% in 2019.

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CREATING CREATING A A NEWNEW FUTURE FUTURE TOGETHER TOGETHER SPAR’s SPAR’s 100% recycled 100% recycled plastic plastic bags have bags resulted have resulted in in

35003500 TONNES TONNES

of usedof plastic used being plasticdiverted being diverted from landfills from landfills annually. annually.

In the production In the production of the bag of the bag there isthere a is a

40%40% REDUCTION REDUCTION in the carbon in the carbon footprint. footprint.

SPAR is committed SPAR is committed to reducing to single-use reducing single-use plastics and plastics their and impact their onimpact the environment. on the environment.

This is being Thisdone is being through donewaste through collection, waste collection, recycling recycling and the implementation and the implementation of of environmentally environmentally friendly, sustainable friendly, sustainable business business solutions solutions that support thatour support local economy. our local economy.

SPAR is engaging SPAR is engaging with suppliers with suppliers to exploreto explore alternatives alternatives to conventional to conventional plastics inplastics all our in all our operations operations and packaging. and packaging.

The SPARThe 100% SPAR recycled 100% carrier recycled bag carrier was bag was introduced introduced in 2018. Itinis2018. madeItfrom is made 100% from 100% recycled plastic recycled with plastic a minimum with a minimum of 70% of 70% post-consumer post-consumer waste. In waste. addition, In we addition, have we have introduced introduced brown paper brown carrier paper bags carrier to bags to further reduce further single-use reduce single-use plastics and plastics and improve sustainability. improve sustainability.

We will continue We will to continue exploretoand explore offer and offer environmentally environmentally friendly alternatives friendly alternatives to our to our consumers. consumers.

We hope We our hope effortsour willefforts stimulate will stimulate and support andfurther support recycling further recycling activities within activities within the market. the market.

COMMITTED COMMITTED TO ATO SUSTAINABLE A SUSTAINABLE FUTURE FUTURE

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ADVERTORIAL | SPAR

SPAR – PURSUING THE COMMON GOOD SPAR acknowledges the importance of green sustainable practices and their positive impact on the environment.

Only through true collaboration between all participants in the food system will meaningful progress be made in reducing the impact of food production on our environment.

Business is particularly challenged by this as the competitive,

The transformation to healthy diets will require substantial dietary

profit-driven ethos of traditional business often means that it

shifts and changes in consumer behaviour. The move from less

struggles with the concept of the greater good, preferring self-

healthy foods like added sugars and red meat to more healthy

interest as a driver. Similarly, governments, community-based

options like vegetables, fruit, legumes and nuts will not be easy.

organisations and NGOs grapple with self-interest.

However, this move is necessary to stabilise our climate and make our ecosystem more resilient. Current food production processes and

Food businesses, particularly food retailers, interact with millions

consumption threaten our climate stability and ecosystem resilience.

of people every day through retail stores and food products.

The responsibility of food retailers pursuing the common good has

As a food retailer in South Africa, SPAR believes that it is

never been more important in South Africa. Courageous, curious

our responsibility to bring about positive change within the

and activist leadership is needed within these organisations.

environment and communities in which we serve through various

Collective commitments to collaborate to reduce business impact

environmental stewardship commitments and programmes.

on the environment, to create employment and to pursue an

SPAR’s commitment is evidenced by the following actions:

inclusive economy should be at the forefront of their plans.

There is no doubt that a radical transformation in the global

•

Reducing our carbon emissions

•

Setting science-based targets to achieve meaningful greenhouse gas reduction

food system is needed. We in South Africa are as challenged as the rest of the world when it comes to committing ourselves to meeting the United Nations’ Sustainable Development Goals. If

•

challenges of illegal harvesting, poaching and exploitation

we fail to do this, we will leave behind a planet that is severely compromised and the people on it will increasingly suffer from

of marine resources •

malnutrition and preventable disease.

cardboard and plastic waste streams

targets for healthy diets and sustainable food production in the

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Collaborating with stakeholders to reduce packaging waste through the creation of a closed loop in our

To meet this challenge, we need to commit to science-based •

Collaborating with stakeholders in the food system to ensure

same way as we have committed to reduce our carbon emissions

that environmental, social and economic value is created

and reliance on traditional forms of energy production.

for communities

CONTACT US SPAR Head Office: 031 719 1900 | Physical Address: 22 Chancery Lane, Pinetown, 3610 | SPAR Customer Care: 0860 313 141 | Website: www.spar.co.za

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ADVERTORIAL | SIYAKHA

THE IMPORTANCE OF PROMOTING INVESTMENT INTO SOUTH AFRICA AND HOW THIS ALIGNS WITH VISION 2030 For us to achieve the objective of an integrated, robust South African society, we will need an economy that realises growth. Foreign Direct Investment (FDI) plays a critical role in stimulating economic growth and financial stability for the country’s aggressive aspirations of addressing its socio-economic dilemmas. From the original Growth, Employment and Redistribution (GEAR) strategy of 1996 to the current National Development Plan (NDP), the need to attract more foreign investors and promote exports has consistently been emphasised.

By Dionne Kerr The economy is slow, business confidence isn’t at its highest level, and

to doing business. If we wish to encourage further FDI, we could

the unemployment rate has increased from 17% in 1994 to the current

showcase the successes of transformation and realise that the past

29% with a corresponding growth in population from 45million people in

15 years have given us the advantage of understanding that achieving

1995 to the current 57,7million. For young South Africans (16 – 24 year-

impact investment is an ethos.

olds), who make up an estimated 66% of our population; unemployment is more than 50%. Economic growth is low, and many foreign investors

South Africa is ranked number one in Africa – and 21st globally –

are hesitant to invest given the state of flux which South Africa has been

with regard to strength of investor protection. So while we may have

in recently. However, while the outlook may be “cautionary”, the reality

challenges ahead of us, we can positively look at different models to

is that South Africa perfectly meets the objectives of Impact Investment

operate. With unemployment so high, the focus on employing people

and this provides us with an opportunity to change course.

with tertiary qualifications needs to change to include school-leavers who can work shorter weeks to allow them time to study part-time.

The Global Impact Investing Network (GIIN) estimates a market value of US$228.1-billion in impact investing assets, US$35.5-billion of which

The results? four-year programmes where participants leave with a

were committed in 2017. Social impact pioneer and chair of GSG, Sir

qualification, four year’s work experience and four year’s earnings

Ronald Cohen, said that US$1-billion has been raised over the past year

as opposed to the current model which sees tertiary school-leavers

through social-impact bonds to fund entrepreneurship ventures in Africa.

graduate into unemployment. Our procurement practices need to encourage Localisation as a means to reduce exposure to currency

The NDP Vision 2030, launched in 2012, talks directly to the need

fluctuation and carbon emissions from long-cycle shipping and

to encourage investment to address key priorities and socio-

logistics routes. Our environmental practices need to realise that

economic outcomes, including human development, inclusive

waste creates opportunities for new enterprises and alternative jobs.

economic growth, environmental sustainability, as well as accountable and efficient government systems.

We need to be changing our dialogue to encourage foreign investment, with an understanding of how we want companies to invest. South

The shift to operating in a way that follows not only strong shareholder

Africa’s legislation plays an interesting role, as it provides an ideal

returns but also addresses environmental and social impact is

framework for how one needs to consider development with a

gathering significant momentum globally with more than 90% of CEO’s

business approach to impact investment.

stating that sustainability is important to their company’s success. This operating ethos lends itself perfectly to Vision 2030.

If implemented correctly, our focus on the Industrial Policy Action Plan, the National Infrastructure Protection Plan, the NDP and Broad-Based

With more than 15 years of implementation since the adoption of

Black Economic Empowerment should derive commercial returns for

the original Broad-Based Black Economic Empowerment Act 2003,

every business. The ability to measure the impact of environmental

South Africa may not have achieved its “ideal state” in respect of its

and social investment alongside financial returns is pivotal because

transformation objectives. It has, however, learnt significant lessons

it is critical for inclusive growth. If we want to shift to a positive view,

in the implementation of business models that encourage inclusivity

it’s time for us to reach for excellence and showcase what can be

and the promotion of a national agenda and a broad-based approach

achieved because of these goals, not despite them.

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AIRPORTS COMPANY SOUTH AFRICA MASTERPLANS DEFINE HOW WE BUILD FOR THE FUTURE Airports Company South Africa to invest big in infrastructure developments and airport upgrades.

Airports Company South Africa will make a substantive

In terms of these master plans, close to R30-billion has been

contribution to the achievement of NDP 2030 objectives through

set aside for infrastructure investment in capacity upgrade and

the implementation of its “run, develop, grow” strategy.

maintenance projects over the next five to eight years.

In terms of this strategy, Airports Company South Africa is in

This capital investment programme was developed in consultation with the

business to run airports, develop airports and grow its footprint in a way that simultaneously contributes to deep transformation. This contribution is evident in the company’s drive to transform its base of airport concessionaires, suppliers and contractors.

So far, the company has lifted the black business share of commercial revenue to 54% of the total and to 51% of operational and development spending. In terms of staff complement, 94% of employees comprises South Africans from designated groups.

However, expanding and enhancing the run, develop, grow strategy will require additional world-class airport infrastructure. Master plans have been developed and approved for our three largest airports and

40

airline industry to ensure a fit-for-purpose application and adjusted where appropriate to support our strategy. Our infrastructure investments provide significant regional and national economic benefits and are consistent with development and planning policies for the areas in which they occur.

Growth in air travel can be expected to accelerate in the medium and long terms. Our airports must have the infrastructure needed to support this growth. Ensuring that our infrastructure is maintained and keeps up with global standards means that we remain globally competitive.

Long-term plans to stimulate growth and create job opportunities around our three main airports, in partnership with provincial and municipal authorities and regional economic and tourism bodies, continue to gain momentum.

preparation of similar plans for six smaller airports is underway. These

Below we describe four major projects that we will implement at our

master plans cover anticipated requirements for decades to come.

biggest airports over the next five to eight years.

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ADVERTORIAL | AIRPORTS COMPANY SOUTH AFRICA

OR Tambo International Airport upgrade

OR Tambo International Western Precinct Project Left and above: OR Tambo International Airport

OR Tambo International midfield cargo A 25-year master plan for the Gauteng city region

aerotropolis has been approved. The plan boasts a five-

year implementation plan to develop catalytic projects that

have a high likelihood of creating jobs, building businesses and converting the metropolitan area surrounding ORTIA into a business hub over time.

In line with this, plans are underway to develop the airport’s midfield cargo terminal to accommodate growing demand and create opportunities for blackowned businesses, in line with the construction sector transformation strategy. In 2018, air cargo processed through the O.R Tambo International Airport gateway was 399 781 tonnes. To meet the growing demand for international and local cargo operators, the company will develop midfield cargo facilities at the airport. An Environmental Impact Assessment (EIA) was conducted and phase 1 of the project was designed in consultation with the cargo industry to accommodate up to one million tonnes of air cargo annually.

The facility will have capacity for general cargo, specialised goods, distribution and support services for the air cargo supply chain. Depending on demand, a second phase will increase the facility’s capacity to two million tonnes a year. The project will be implemented over five to eight years.

Most visible to airport users in the short term will be the start of our major development of the Western Precinct in seven phases involving an investment of some R4.6-billion.

This investment will unlock the development potential of the Western Precinct to cater for the increase in demand for a range of facilities at O.R Tambo International Airport.

The Western Precinct comprises an 8.5 hectare site, with 180 000 metres squared earmarked for mixed-use development (commercial and retail buildings and a hotel), which will be completed in phases by 2020.

The planned iconic structure will not only house all the vertical and horizontal circulation functionality in a clear and legible way anchored by the Gautrain station as its core, it will also provide a unique architectural language to Africa’s largest airport.

The scheme is a landmark project that will: • A ct as a catalyst for the international departures area and create a new energetic, mutli-functional expansion of this area; • I mprove the connectivity from the airport Gautrain station and the existing hotels and facilities via pedestrian friendly connections to the international terminal building; • E xpand the potential markets generated by the activities of the various facilities that congregate in this terminal; • I ncrease the parking capacity by utilising structured facilities below the proposed new mixed-use development; and • D evelop a precinct which allows easy access to hotels, restaurants, fast food facilities, outdoor seating, retail, offices and a world class conference centre.

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Cape Town International Airport

Cape Town International Airport infrastructure Cape Town International Airport will undergo a R7.5-billion upgrade to increase its capacity to receive more passengers, more daily flights and larger aircraft.

In the 2017/18 financial year, the airport saw a 22% growth in international passenger numbers. These numbers are expected to grow as Cape Town’s tourism industry remains buoyant with more international carriers scheduling long-haul flights directly to the Mother City.

Three infrastructure projects will be implemented over the short-term: a realigned runway project at a cost of R3.8 billion and new facilities for domestic arrivals and the international terminal. The runway realignment project is expected to start in the first half of 2020 with a project duration of 18 to 24 months. The Department of Environmental Affairs has notified Cape Town International Airport of its authorisation for the runway realignment and associated infrastructure planned for the airport in terms of the Environmental Management Act. The authorisation included extensions to and realignment of the runway

King Shaka International infrastructure Our strategic infrastructure objectives are to grow the real estate revenue to R3-billion through development by 2035, development opportunities over 1 000 hectares of serviceable land, creating value for stakeholders, increasing reputation, diversifying ACSA’s business portfolio and achieving transformation objectives.

A 25-year plan to develop a business hub centred around the King Shaka International Airport has been approved. The Durban aerotropolis, which is being developed in partnership with the Kwazulu-Natal Provincial Government and Dube Trade Port Corporation, involves a development corridor and a public transport system between the city of Durban and the airport, with mixed-use developments in housing, industry, agriculture, water treatment and small business development.

The plan will spearhead economic development and social transformation in the province by improving connectivity around the international airport for trade, passengers, workers and tourists to enhance efficiencies, productivity and sustainability.

as well as associated infrastructure such as aircraft

The Durban master plan includes a 32 000-hectare special economic zone

parking stands and taxiways. The environmental impact

that will be located between Durban and Richards Bay with the airport being

assessment (EIA) took nearly four years of planning and

the anchor. The plan aims to create 750 000 permanent jobs and 42 million

assessment and included extensive public consultation.

square metres of business development with accommodation for 1.5 million

This runway project is not only about the growth of the

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King Shaka International Airport

residents. The estimated investment potential is up to R-trillion.

airport, it is about unlocking further growth potential

In addition to the master plan for King Shaka International Airport, a project to

of Cape Town and the Western Cape and Cape Town

extend the Bravo taxiway and construct two Code F aircraft stands is already

International Airport will be at the centre of contributing

underway. The project will increase parking capacity for larger international

to the further development of the region.

aircraft and is scheduled for completion in 2019.

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ADVERTORIAL | AIRPORTS COMPANY SOUTH AFRICA

Port Elizabeth International Airport

East London Airport and Port Elizabeth International Airport The East London Airport and Port Elizabeth International Airport master plans were finalised in 2009. The master plans make sufficient land provision to enable the airports to grow from their current capacities of 1.2 million annual passengers (MAP) at East London and 2 MAP at Port Elizabeth − to 5 MAP and 16 MAP respectively.

Detailed landside precinct plans are underway for both airports.

The precinct plans will inform the next development phases, and quantify and ‘unlock’ property and commercial developments.

The infrastructure development projects underway at East London airport include an additional code C stand, a terminal upgrade and a multi-storey parkade, and a vehicle parkade for the Port Elizabeth Airport.

George Airport, Bram-Fischer International Airport, Kimberley Airport and Upington International Airport Master planning for all these airports is underway. The master plans will determine the ultimate development potential of the airports and also define logical land uses. Projects are underway to expand and modernise the existing terminal buildings, reorganise access roads and make additional vehicle parking available.

Above: Kimberley Airport Below: Bram Fischer International Airport

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CONNECTING TO THE FUTURE In its early history, aviation was a novel and exciting experience.

Firstly, safety will be enhanced through reduced incident response

Many of us may recall childhood journeys to an airport just to see

times and improved collaborative responses to emergencies.

aircraft take off and land. In those early days airports were more like

Secondly, efficiency of airport operations will be enhanced as digital

mass transit stations where passengers were jammed in and just had

management of airports and airfields cuts turnaround times and

to grin and bear it.

increase aircraft movements. And thirdly, digital technologies will

Fast forward to the 21st century and the passenger experience is everything. Airports strive to make this critical component of any

44

transform the passenger experience by minimising time spent at customs and security checks.

journey as smooth and pleasurable as possible. So much so that the

Overall, the end-to-end experience for passengers will improve.

airport of the future will rely on digital technologies and innovation to

The infographic opposite illustrates how the critical points of

a degree that could not have been contemplated in the recent past.

a passenger’s journey will be transformed. Several of these

The application of existing and emerging digital technologies will

technologies are already in use by Airports Company South Africa,

transform both the visible and unseen aspects of utilising an airport.

with more to be implemented in the near future.

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USING OUR EXPERIENCE TO GENERATE MORE REVENUE

Features of the technical research and development insights include

Decades of experience in developing and running airports has enabled

passenger facilitation, automated and enhanced security equipment,

source in the form of its Technical Services and Solutions Division (TSS).

The origins of this division lie in the methods and structures the company put in place after it was formally established by the Air Traffic and Navigation Services Company Act of Parliament in 1993. Before the idea of a technical services and solutions division had even begun to germinate, the company was making a name for itself in the way it managed the large volume of technical work required to keep an airport operating smoothly.

Then, as Airports Company South Africa began to invest in new infrastructure, it steadily became skilled in designing, project managing and launching significant airport upgrades.

Perhaps the most significant achievement was the construction of an entirely new airport to serve the Durban region. What is now King Shaka International Airport was completed in time to facilitate tens of thousands of people attending the 2010 FIFA World Cup. Of special importance was the planning and preparation that went into closing the old Durban Airport one night and opening the new airport for flights the following morning.

The company soon appreciated that it had gained tremendous expertise and experience that could be packaged as a service and consultancy offering to other airports, in addition to the services it provides to the company’s nine airports in South Africa.

and airport facilities and maintenance detection systems. The latter includes the potential for using drones for runway inspections, perimeter surveillance and building maintenance.

Advisory services specialises in airport planning and development, airport operations, business management and regulation, and commercial advisory services. The latter includes consulting services to airports in the areas of retail, food and beverage, car rental, car parking, advertising, and property development.

The notable engagements for TSS’s project and portfolio management include significant work undertaken in Brazil.

In 2012, ACSA signed a 20-year concession agreement to manage the São Paulo Guarulhos International Airport in Brazil, a strategic alliance between the two countries ahead of that country hosting the FIFA World Cup in 2016.

The Guarulhos International Airport received 40 million passengers per year but had been designed for only 20 million. As a result, TSS was challenged to solve and mitigate problems such as broken escalators, and baggage counters and carousels that were not working, or aircraft that had been damaged. Furthermore, TSS managed the development of the new airport facility within a 24-month timeframe.

In Africa, TSS completed one of its most significant projects when the new Terminal 3 was opened at Ghana’s Kotoka International Airport in December 2018. TSS provided technical

And so the Technical Services and Solutions Division was born.

advisory and operational readiness and transfer services for

Headed by Girish Gopal, TSS is structured into four functional areas:

Terminal 3. It undertook stakeholder management, service level

• Technical research and development keeps the company abreast of global technical advances and trends through its information management centre. Its role is to facilitate development and adoption of innovative solutions to improve operational efficiency and enhance

agreements, retail optimisation, baggage and aerobridge design and commissioning, as well as IT and project management.

Elsewhere in Africa, TSS has been engaged for projects in Liberia, Rwanda and Zambia. In South Africa, TSS provides services to

passenger experience.

Mthatha and Oribi airports which are not owned by ACSA. Over the

• Advisory services provide technical advice to internal and external

will manage more than R20-billion in infrastructure development for

clients. The role of advisory services is to monetise the company’s skills and expertise and to support achievement of a strategic

next several years the project and portfolio management function ACSA’s airports.

objective to grow its footprint.

TSS has thus completed its transformation from an internally

• Project and portfolio management ensures timeous delivery of

respected, externally focused service provider that can bid for

efficient and cost-effective infrastructure developments. This team also provides strategic portfolio management of airport development projects and enables access to subject matter experts.

focused state entity providing services to one company into a projects in the open market.

A central function of business development is to position the company as a partner of choice in delivering sustainable airport

• The enterprise project management office ensures the alignment

management solutions. The department supports non-core

of all project functions within ACSA to common best-practice,

revenue generation through its consultancy and technical advisory

organisational standards and ensures that the business has constant

services, airport management services, training, and investment in

and relevant management visibility of the projects.

strategic international airport concessions.

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ADVERTORIAL | AIRPORTS COMPANY SOUTH AFRICA

Airports Company South Africa to generate revenue from an entirely new

significant areas of technological advance such as automated

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Our strategy focuses on accelerating transformation in the seven sectors wherein we are active: property, retail, car parking, construction, advertising, ground handling and IT. We are pleased with what we have achieved so far. In terms of our suppliers, black-owned businesses now share 61% of our operational and development spend and 59% of our commercial revenue.

In the 2017/18 financial year we invested R110-million in transformation initiatives, despite constraints in our business environment due to the 35.5% reduction in tariffs by the regulator.

But we know we must do more. Transformation remains a moral, social and economic imperative.

The enterprise supplier development (ESD) programme of Airports Company South Africa has developed over the life of the company’s first 25 years into highly organised and targeted support for black entrepreneurship.

We define enterprise and supplier development as financial and non-financial support provided to SMMEs to enhance economic participation, stimulate job creation and encourage corporates There is much we can learn from nature. Anyone watching the autumn sky has seen how migrating birds fly in a V formation.

from these SMMEs to help them grow.

Studies say these birds carefully position their wingtips and sync

Rather than simply set procurement criteria and targets,

their flapping, presumably to catch the preceding bird’s updraft

Airports Company South Africa provides three forms of

and save energy during the flight.

practical development support:

The business development function of ACSA deploys a similar

Technical support to entities to improve the quality of their

approach to growth and expansion. The skills and expertise

core business operations, such as assistance in receiving

developed over 25 years created an entirely fresh set of opportunities,

relevant accreditation.

enabling the company to fly into new areas in its own V formation.

Financial support to entities to improve their finances through

TRANSFORMATION: LEADING THE CHANGE WE WANT TO SEE

reduced payment cycles and other measures.

Airports Company South Africa is just one year older than

Business development support to entities to improve their

a democratic South Africa. We have therefore had frontline

business management skills − for example, in the areas of

experience of the challenges of transforming the nation into one

contract performance and customer care.

where all benefit from a growing economy.

New entrants that meet our ownership and management criteria

Over these initial 25 years, transformation has shifted

are offered detailed diagnostic assessments that help them raise

dramatically from an awkward add-on for most companies into

their chances of winning competitive bids. Business coaching

something that should be at the core of every business strategy.

and customised mentorship enable any qualifying business to

At Airports Company South Africa, transformation is indeed at the core

transform its ambition into tangible success.

of our business strategy. For us, transformation transcends the day-to-

The ESD programme is underpinned by ongoing performance

day. We are specific in our objectives and our transformation-related

monitoring and evaluation. Entities that are consistent in running

performance is an integral element of evaluating the overall business.

sustainable and high-performing businesses ultimately achieve

We are committed to achieving transformation by providing development

46

to engage in meaningful transformation. It includes procurement

Preferred Supplier status.

opportunities for previously disadvantaged people. Our transformation

Through ESD, Airports Company South Africa is proud to

agenda is aligned with South Africa’s National Development Plan and is

be a leader in transforming good intentions into measurable

guided by our transformation imperatives and Sustainability Framework.

outcomes for the company and its beneficiaries.

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Teachers also receive capacity and development training. Both

NATION

schools saw an immediate improvement in their results following

For the past 25 years, Airports Company South Africa has improved the quality of life for many South Africans, particularly historically disadvantaged communities, by positively impacting their lives. As a key role player in South Africa’s economic development in general, and aviation in particular, the company is uniquely positioned to significantly contribute to the country’s

implementation of the programmes. The preliminary performance reports showed that Walmer High Schools results went from 22% in 2016 to 72% in 2017 and Umtiza High School from 50% in 2016 to 52% in 2017.

Supporting the Disability Sector

social and economic development agenda.

From early 2000, ACSA, through its then Corporate Social

Goodbye Malaria

disabilities, as part of its Mobility Programme.

Airports Company South Africa’s “Goodbye Malaria” partnership supports youth entrepreneurship and youth empowerment. This private-sector partnership was launched in November 2016 with two pop-up stores selling branded “Goodbye Malaria” merchandise at OR Tambo International Airport. Since then, ACSA has opened a retail outlet at Cape Town International Airport and, more recently, at George Airport in Western Cape. To date, more than 18 jobs have been created for youth who live in the areas surrounding the three airports. The profits realised from the sales at the airport retail pods are shared between support for on-the-ground malaria elimination programmes in Mozambique, and the youth in the retail programme.

Learners & Teachers Development Programmes Eastern Cape Eastern Cape has historically been identified as having the worst performing schools by the Department of Education. Airports Company South Africa therefore took a decision to channel part of its socio- economic development funds to improve educational outcomes in the province by introducing a Learners and Teachers Development Programme in East London and Port Elizabeth.

The programme commenced in April 2017 with Walmer High School in

ADVERTORIAL | AIRPORTS COMPANY SOUTH AFRICA

SOCIAL AND ECONOMIC DEVELOPMENT: GROWING THE

Investment (CSI) programme, focused on supporting people with

At the time, the company endeavoured to put disability first and create a barrier-free environment, accommodating everyone. This was also correctly displayed in the infrastructure designs of all airports, ensuring universal access and enabling passengers with disabilities a dignified experience.

Through its business of ‘moving people, changing lives’, Airports Company South Africa deliberately selected projects that supported this aim and assisted the integration of people with disabilities.

The company supported several such initiatives, including Wheelchair Tennis South Africa (WTSA), Outeniqua Wheelchair Challenge, the Wheelchair and Assistive Devices Donations Programme, and the Disability Trade and Lifestyle Expo and Conference.

The company is also working in partnership with the Department of Social Development on the project Izingane Kuqala – ‘children first’ − a White Paper on the Rights of Persons with Disabilities (WPRPD) pilot project aimed at improving outcomes for children with disabilities experiencing compounded marginalisation in rural and underserviced communities.

Port Elizabeth and Umtiza High School in East London. The programme

These projects have contributed positively to the lives of many

focuses on Mathematics, Physical Science and Accounting for learners

South Africans, and Airports Company South Africa continues to

in grades 10 to 12 and offers Saturday and holiday classes.

invest in the wellbeing of the country.

CONTACT DETAILS Physical address: 24 Johnson Road, The Maples Office Park Bedfordview, Johannesburg Postal address: PO Box 75480, Gardenview, 2047 Tel: 011 723 1400 Fax: 011 453 9353 Website: www.airports.co.za

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NATION BUILDING V IS IO N 2 0 3 0 , O U R F U TURE OUR P LA N, V OL 4 | 4 9

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THE GOOD STORY OF THE

GAUTENG PROVINCIAL LEGISLATURE Over the past 25 years, the Gauteng Provincial Legislature (GPL) has become the first point of contact with the Legislative Assembly for the people of Gauteng. Armed with its agenda of promoting a transparent and responsive government, the GPL has evolved, transformed and grown from strength to strength.

After the euphoria of the historic 1994 elections, the complex task of rebuilding the country from the relics of apartheid began.

Provincial legislatures became the receptacles where input from the diverse voices found in society would define socio-economic development ideals to change South Africa for the better.

Speaker of the GPL, Honourable Ntombi Mekgwe, is now serving her second term in the legislature. She says that access to and the meaningful involvement of the people of Gauteng in legislative oversight will always be central to the GPL’s programme. She believes that this is the only way to build a legislature that meets the needs of the people – and a critical factor that asserts the South African government as legitimate.

The National Development Plan (NDP) identifies eliminating poverty and reducing inequality by 2030 as key goals. According to the plan, South Africa can realise these goals by drawing on

The GPL became the fist among its peers to introduce

the energies of its people, growing an inclusive economy, building

designated sector parliaments – platforms for various societal

capabilities, enhancing the capacity of the state, and promoting

groupings and vulnerable groups to raise issues that are pertinent

leadership and partnerships throughout society.

to them and then have the issues debated in the legislature for resolution. To date, the GPL hosts annual sector parliaments for

“Our public participation processes include committee hearings on

workers, the youth, women, children, the elderly, people with

law-making, oversight and an array of programmes that have a direct

disabilities and commercial sex workers.

impact on the livelihoods of the people of Gauteng. These create space for the involvement of citizens in legislative business, and in

In addition to this, the GPL has seen a progressive rise of female

the same vein, establish a process by which citizens can petition the

members into positions of leadership in committees of the house as

legislature for redress on problems and to put systems in place to

well as other structures.

make GPL an effective representative institution,” Mekgwe says.

Further to this, in its course of requiring the provincial executive

50

By enabling the marginalised to participate, a foundation has been

to account for various programmes and initiatives, the legislature

laid for better legislative oversight, a fundamental contribution to

has continuously placed a requirement and set targets for the

social stability, as well as the use of political processes to resolve

provincial government and its entities in the area of gender

problems related to building a democratic society in Gauteng.

transformation and mainstreaming.

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ADVERTORIAL | GAUTENG PROVINCIAL LEGISLATURE

Members of the Gauteng Provincial Legislature representing various political parties

“We come from a long history of a people who were subject

participation and fostering cooperative governance among all

to oppression based on race and gender. This, among many

spheres of government in the province.

forms, manifested itself through the multifaceted subjugation of women by virtue of their gender. With the birthing of democratic

The GPL has made giant strides as an exemplary African legislature,

institutions such as the GPL, the historical barriers that inhibited

poised to become a centre of excellence within the global

the upward movement of women in areas such as politics,

legislative community. And bearing testimony to this has been the

business and others have to be removed. We must continue

many international delegations of Commonwealth parliamentarians

establishing progressive and enabling legislation, and open

and peers who have flocked to the GPL to learn from some of its

doors for women leaders to take their place and take the country

frameworks and methods.

forward,” says Hon. Mekgwe.

“We need to remember that the pervasive necessity for public The new breed of younger leaders and elected public

participation in relation to the oversight responsibility of a provincial

representatives that now makes up a significant contingent

legislature requires input from the population of the province. This is

of members of the provincial legislature has also sharpened

the only effective way to hold the executive accountable and ensure

the edge and contributed to a more energetic legislature.

that service delivery programmes prioritise what is of importance for the province. It is also through continuous interaction with the

“This has continued to augur well for our goal to always remain an

public that the legislature will know what the electorate expects from

innovative, dynamic and transformational 21st century legislature.

the government. In so doing, we are able to identify areas where

And now, with the Fourth Industrial Revolution upon us and forcing

implementation of policy and legislation are inadequate, and remedy

us to change the way we live and work, the need for younger minds

them as necessary,” Hon. Mekgwe says.

in the legislative sector has never been greater. Constant renewal is Notwithstanding the inroads the GPL has made in reaching all

therefore of critical importance.”

communities in Gauteng, the participation of coloured, white and The story of the GPL is a good one. The 25-year journey has

Indian communities remains elusive. To counter this, the GPL

been steered by distinct milestones in all the mandates of

is constantly rethinking and redesigning the delivery of public

the legislature as well as its related innovations. The GPL’s

education to effectively penetrate all Gauteng communities. The

constitutional mandate, which has since evolved, began as

legislature has relied on its aggressive use of mass communication

oversight, law-making and public participation during the first

tools and social media to disseminate information, respond to

and second legislative terms. In subsequent terms, the mandate

popular demands, for qualitative oversight and to keep communities

was revised to oversight and scrutiny, law-making, public

in the loop. All while refining methods to reach the unreached.

Website: www.gpl.gov.za Facebook: Gauteng Provincial Legislature

|

Twitter: @GPLegislature

|

Instagram: @gplegislature

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PROSPEROUS PARTNERSHIPS

By Jenny Retief

A new era of dialogue between government and business leaders is essential if we are to thrive as a nation.

A successful partnership between government and the private sector that is founded on the belief that one plus one equals much more than two can bear results. Entrepreneurial and business incubation programmes are some of the most fruitful when it comes to such partnerships.

Offering subsidised and affordable spaces to entrepreneurs can transform unemployed individuals into productive, contributing members of society. Promoting such opportunities through public–private partnerships is an effective method of creating a thriving economy.

In line with this, National Treasury launched the Jobs Fund in June 2011 to address the challenge of unemployment in South Africa. Since then, the initiative has funded 126 projects, with R6.7-billion in grant funds allocated and R9.5-billion committed by private sector and NGO partners. So far, 225 981 sustainable jobs have been created. This has been accomplished, in part, by unlocking potential economic activity in areas where there are few local jobs.

While government can create the policies that encourage greater investment and create the platforms for other organisations to build upon, it is unrealistic to expect government to solve all of the social challenges we face.

By implementing programmes that offer mentorship and support services to small, medium and micro enterprises (SMMEs), public–private partnerships can boost entrepreneurship and encourage small-business ownership.

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Jenny Retief

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EDITORIAL | PROSPEROUS PARTNERSHIPS

Riversands Incubation Hub supports entrepreneurs to grow their businesses faster.

THE CHALLENGES WE FACE IN SOUTH AFRICA, HOWEVER, WILL NOT BE SOLVED BY THE GOVERNMENT OR PRIVATE SECTOR WORKING ALONE.

In the past two years, corporate South Africa has become more involved in economic development. This renewed energy, spearheaded by the CEO Initiative, has seen the formation of the SA SME Fund. This groundbreaking programme is a collaboration between government, labour and business to fund promising small businesses and the Youth Employment Service (YES), which aims to get young people placed in their first jobs.

With the diverse range of small businesses and industries in South Africa, it is essential that public–private partnerships

While there is incredible corporate goodwill, there is still not

are not created with a one-size-fits-all approach. These

enough support for small business in terms of procurement spend.

initiatives must rather actively seek to collaborate with

A major issue here is that big business does not believe that small

government agencies, corporates, academics, civil society

businesses can be fitted into a corporate supply chain. However,

and individuals to leverage these platforms to support

while incorporating small business into a supply chain does have

small business.

its challenges, these are not insurmountable. Added to this, there are huge benefits for the corporate from the agility that a small,

BIG FOR BUSINESS

hungry firm can offer.

What’s good for the country is good for business. Corporate

The challenges we face in South Africa, however, will not be

South Africa can lend its skills and financial sponsorship, provide

solved by the government or private sector working alone. The

access to supply chain opportunities for SMMEs and give small

current economic climate means that the state will need the help

businesses a fighting chance of making it through those crucial

of private enterprise more than at any other point since 1994. In

first years. The corporates also benefit as their investments into

many cases, government can create the environment where private

the public–private partnerships qualify in terms of their B-BBEE

companies that serve the public good can thrive. There should be

scorecard requirements.

incentives for private companies that serve the public good.

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EDITORIAL | PROSPEROUS PARTNERSHIPS BUILDING RELATIONSHIPS, GROWING RETURNS Globally, infrastructure development is the major beneficiary of the public–private partnership model. This will continue to be the case. But public–private partnerships need not all be large-scale infrastructure projects. There are creative win-wins to be found from existing resources.

Collaborations always introduce something new into the mix. Take, for example, the recent partnership announced by Johannesburg City Parks and Zoo that will see the Truffles on the Park restaurant contribute to the upkeep of Mushroom Farm Park in the centre of Sandton. The restaurant will be the first to be located at a public park and will showcase how public-private partnership can help maintain and upgrade public spaces. Here, a voluntary conversation levy of 2% on every guest bill, matched by the restaurant will raise funds for further park displays.

This is one example; there are countless other ways in which government and the private sector can work together. The important ingredient is that government (from national department to municipal level) should be open to considering solutions and involvement from the private sector.

Public–private partnerships based on mutual trust and respect are essential. Successful partnerships have three things in common: a commitment to a strong partnership beyond the terms of the contract, built-in mechanisms to share perspectives about the project (especially problems and concerns), and

PUBLIC–PRIVATE PARTNERSHIPS IN ACTION Riversands Incubation Hub is situated north of Johannesburg, adjacent to Steyn City and a stone’s throw away from Diepsloot. The Hub was catalysed by a partnership between Century Property Developments and National Treasury’s The Jobs Fund.

The hub opened its doors in September 2015 and the 40 000 square metre property is today home to 157 businesses. More than 1 000 permanent and 2 000 short-term jobs have been created on the campus and in the precinct.

Riversands offers office and manufacturing spaces from 50 to 200 square metres that are highly subsidised and significantly more affordable than commercial letting.

Leases are flexible: an entrepreneur can scale up their space requirement or scale down or move out with less than one month’s notice.

These entrepreneur-friendly lease rentals give small businesses access to formal working space without any penalties should the business not succeed. In this way, Riversands de-risks the inherently risky venture of entrepreneurship.

effective ways to overcome challenges to deliver.

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ADVERTORIAL | UCONOMY

SUPPORTING JOB CREATORS SMME S SOLVING THE UNEMPLOYMENT CRISIS South Africa’s unemployment rate, particularly among young people,

the one-year placements, SMMEs may elect to permanently employ the

is a national crisis which cannot be left to government alone to solve.

youth who already understand the business and its operations.

Uconomy is rising to the challenge set by President Ramaphosa during the 2019 State of the Nation Address: “Our greatest challenge

Using this two-pronged approach to support SMMEs to grow and

is to create jobs for the unemployed of today while preparing workers

provide access to young people to work as interns, Uconomy creates

for the jobs of tomorrow”. We believe that SMMEs hold the key to

a win-win solution: SMMEs can flourish and create employment for

overcoming this challenge and we support them in a number of ways.

youth, and corporates can fulfil their B-BBEE requirements.

Uconomy supports SMMEs, firstly, through comprehensive business

Furthermore, Uconomy understands that SMME development is

management packages that include services such as human resources,

a constantly evolving field that inevitably involves trial and error.

finance, marketing, logistics, support staff, lead generation and virtual

As such, we believe that effective and sustainable development

PAs. We also assist SMMEs with the development of business processes,

requires inclusive theoretical and practical research. Our research

access to funding, and practical training and mentorship, rather than

is structured to achieve and promote community engagement in

theoretical training alone. Uconomy actively mentors business owners to

projects and the sustainability thereof.

solve problems, identify opportunities and provide strategic, marketing, sales and administrative support services. In addition, Uconomy is able to

In conjunction with our in-depth research projects, we also implement

integrate these SMMEs into corporate clients’ supply chains.

monitoring and evaluation to track all impact. Understanding what works and what doesn’t allows us to collate a body of knowledge

Uconomy’s Enterprise and Supplier Development Model is another

and evidence that may be used to ensure the success of SMMEs.

way we support SMMEs while assisting corporate clients to address

Corporates who elect to partner with us on research projects will

the largest cumulative elements of the B-BBEE scorecard (enterprise,

contribute, on a macro level, to South Africa’s economic growth.

supplier and skills development). These solutions are tailored to suit each SMME based on their size and growth stage and they are then matched

This unique ecosystemic approach to SMME development means that

to corporate sponsors who are able to meet their compliance mandates.

economic development is not restricted to individual empowerment but

We facilitate the placement of young people with SMMEs as interns and/

rather expands to community empowerment in local areas. Uconomy’s

or learners, with funding support, resulting in small businesses being able

vision is to support groups of SMMEs in localised areas to develop into

to increase their workforce with minimal risk to themselves. At the end of

sustainable and job-creating economic hubs within their own communities.

GET IN TOUCH: Telephone: 021 045 1424

Email: enquiries@uconomy.co.za

Website: www.uconomy.co.za

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“Driven “Driven to to be be aa leading, leading, responsible responsible and and diversified diversified global global black-owned black-owned seafood seafood business” business”

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2019/11/11 3:58 PM

Since Since 1964 1964 Sea Sea Harvest Harvest has has become become an an iconic iconic black-owned black-owned and and managed managed fishing fishing company companythat thatisisrecognised recognisedas asbeing beingglobally globallycompetitive competitiveand andlocally locallyinvested investedininpeople, people, growth growth and and food food security. security. Established Established inin Saldanha Saldanha Bay, Bay, the the company company has has become become synonymous synonymous with with the the rural rural Cape Cape west west coast coast town town where where its its operations operations remain remain aa key key source source ofof livelihood livelihood for for the the local local community. community.As As Sea Sea Harvest Harvest navigates navigates the the future, future,itit will will remain remainfocused focusedon oncreating creatingvalue valuethat thatfuels fuelseconomic economicgrowth growthand andbenefiting benefitingsociety societythrough through job jobcreation creationand andsocial socialtransformation. transformation.

www.seaharvest.co.za www.seaharvest.co.za

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Telkom has been part of the new-democracy journey as one of the state-owned Telkom has that beenhad part new-democracy journey as one of theand state-owned companies toofbethe transformed to ensure its sustainability ability to companies that had to be transformed to ensure its sustainability and ability to compete in the telecommunications space in South Africa. compete in the telecommunications space in South Africa.

Further, Further, Telkom Telkom has been has been playing playing a very a very big role big role in the in the economy, economy, offering offering voice, voice, datadata and messaging and messaging solutions solutions to to National, National, Provincial Provincial and Local and Local government, government, including including enabling enabling a a significant significant number number of State-owned of State-owned Entities Entities to save to save costscosts whilewhile improving improving productivity. productivity.

Telkom Telkom is also is also veryvery excited excited about about the planned the planned spectrum spectrum auction auction

by ICASA

by ICASA in 2019. in 2019.

The leasing The leasing of additional of additional spectrum spectrum to telco to telco companies companies in SAinwill SAhelp will help us grow us grow into into the Fourth the Fourth Industrial Industrial Revolution Revolution era. era.

The need The need for higher for higher speeds speeds will be willcritical be critical in the inadoption the adoption of the ofInternet the Internet of Things, of Things, robotics robotics and artificial and artificial intelligence, intelligence, because because these these technologies technologies are capable are capable of unlocking of unlocking innovation innovation in the inworking the working environment. environment.

Further, Telkom has been playing a very big role in the economy, offering andamessaging solutions Further, Telkom hasvoice, been data playing very big role in the to National, Provincial and Local including enabling a economy, offering voice, data government, and messaging solutions to significant number of State-owned Entitiesincluding to save costs whilea National, Provincial and Local government, enabling improving productivity. significant number of State-owned Entities to save costs while improving productivity.

Telkom is also very excited about the planned spectrum auction

by ICASA 2019. leasing of additional spectrum to auction telco Telkom is in also veryThe excited about the planned spectrum companies SA will help us grow into the Fourth by ICASA in in 2019.

The leasing of additional spectrum to telco Industrial Revolution era. us grow into the Fourth companies in SA will help Industrial Revolution era.

The need for higher speeds will be critical in the adoption of the Internet The need for higher speeds willof beThings, critical robotics and artificial in the adoption of the intelligence, Internet of Things, because and these technologies are capable robotics artificial intelligence, of unlocking innovation in the working because these technologies are capable environment. of unlocking innovation in the working environment.

Telkom will continue to work and engage with all will spheres of government, Telkom continue to work andproviding engage our corporate citizenship, expertise and with all spheres of government, providing know-how to ensure alignment in the our corporate citizenship, expertise and efforts to achieve thealignment objectivesinofthe know-how to ensure the NDPtoby 2030. the objectives of efforts achieve the NDP by 2030.

Telkom Telkom will continue will continue to work to work and engage and engage withwith all spheres all spheres of government, of government, providing providing our corporate our corporate citizenship, citizenship, expertise expertise and and know-how know-how to ensure to ensure alignment alignment in the in the efforts efforts to achieve to achieve the objectives the objectives of of the NDP the NDP by 2030. by 2030.

Telkom has been part of the new-democracy journey as one of the state-owned companies that had to be transformed to ensure its sustainability and ability to compete in the telecommunications space in South Africa.

One of government’s main objectives is to drive broadband in the National Development Plan (NDP), to ensure access to affordable mobile products with the primary focus on broadband products.

The South The South African African mobile-operator mobile-opera challenging challenging yet exciting yet exciting market, market wit to defend to defend theirtheir market market share share agains ag

The need for higher speeds will be critical

A. REGULATORY A. REGULATORY • Out-of-bundle • Out-of-bundle billing: billing: When When dat longer longer an automatic an automatic switch switch to out mobile mobile users users will have will have the option the op they’re they’re on aon contract, a contract, providing providt

•

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513223F-Telkom NDP Print Advertorial (DTP) V6.indd 1

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Telkom is also very excited about the planned spectrum auction

by ICASA in 2019. The leasing of additional spectrum to telco companies in SA will help us grow into the Fourth Industrial Revolution era.

B. TECHN B. TE WithWit th upon ch

Tarifica research in 2016 compared South African data packages with those of its fellow BRICS-member countries, Brazil, Russia India and China. The research showed that, after Brazil, Southgovsales@telkom.co.za Africa has the most expensive data pricing. This Email Email govsales@telkom.co.za indicates there is still a lot to be done offer Southinfo Clickthat telkom.co.za fortomore Click telkom.co.za for more info Africans access to data services and affordable rates when compared to other countries.

Further, Telkom has been playing a very big role in the economy, offering voice, data and messaging solutions to National, Provincial and Local government, including enabling a significant number of State-owned Entities to save costs while improving productivity.

Mobile Mobile operators operators in South in South Africa, Afric as compete compete in dynamic in dynamic environments environmet many many factors, factors, including including regulatory regulata

One of government’s main objectives is to drive broadband in the National Development Plan (NDP),istotoensure access to in One of government’s main objectives drive broadband affordable mobile productsPlan with(NDP), the primary focus on to the National Development to ensure access broadbandmobile products. affordable products with the primary focus on broadband products.

Tarifica research in 2016 compared South African data packages with those of its fellow BRICS-member Tarifica research in 2016 compared South Africancountries, data Brazil, Russia and TheBRICS-member research showed that, after packages withIndia those of China. its fellow countries, Brazil, Russia South Africa has China. the most data pricing.

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Africans access to data services and affordable rates when compared to other countries.

Telkom FreeMe, a first of its kind, reduces data pricing and offers free traditional andreduces on-net data calling.

These Telkom FreeMe, a firstlandline of its kind, pricing and packages data-driven, andand offer the cheapest data pricing offers freeare traditional landline on-net calling. These on the market with the 1GBand data package at R99, which would packages are data-driven, offer the cheapest data pricing have almost double that fivepackage years ago.

This allows more on thecost market with the 1GB data at R99, which would Southcost Africans to double access that datafive more affordably. have almost years ago. This allows more South Africans to access data more affordably.

Some of the NDP programmes include, but aren’t limited to, qualityofbasic education, healthcare for all, well limited as economy Some the NDP programmes include, butas aren’t to, and employment. quality basic education, healthcare for all, as well as economy and employment.

When you look at basic education, Telkom’s been engaging National Provincial a When youand look at basic education education,departments, Telkom’s beenoffering engaging cost-effective solution to replace legacy voice and data, thus National and Provincial education departments, offering a saving the departments of money that they can redirect cost-effective solution tolots replace legacy voice and data, thusto the improvement of quality ourthey system.

Telkom to is saving the departments lotseducation of money in that can redirect looking at using the Reverseeducation Bill URL toinoffer data at schools as the improvement of quality our system.

Telkom is a vehicleattousing online education material and research. looking the Reverse Bill URL to offer data at schools as a vehicle to online education material and research.

During the FeesMustFall period, Telkom was the first mobile operator toFeesMustFall offer zero-rated and Telkom true Reverse Billfirst URLmobile solutions During the period, was the to all South African universities higher operator to offer zero-rated andand trueinstitutions Reverse BillofURL solutions learning.

This initiative enables universities to allow students to all South African universities and institutions of higher online access to courseenables material, and ensures learning.

This initiative universities to that allowlearning students continues at no cost toand theensures students andlearning universities. online access to additional course material, that continues at no additional cost to the students and universities.

In healthcare, Telkom is already working with the National Department Health,isassisting with connectivity of the Port In healthcare,ofTelkom already working with the National Health sites that are now using our Access Point Network (APN) Department of Health, assisting with connectivity of the Port solutions at very cost-effective prices.

Prices were compared Health sites that are now using our Access Point Network (APN) with otheratmobile operators, and Telkom offers thecompared best data solutions very cost-effective prices.

Prices were prices. with other mobile operators, and Telkom offers the best data prices.

the thefuture. future.

Telkom, developing the future.

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Africa.

One One of government’s of government’s mainmain objectives objectives is to is drive to drive broadband broadband in in the National the National Development Development PlanPlan (NDP), (NDP), to ensure to ensure access access to to affordable affordable mobile mobile products products withwith the primary the primary focus focus on on broadband broadband products. products.

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These These packages packages are data-driven, are data-driven, and offer and offer the cheapest the cheapest datadata pricing pricing on the onmarket the market withwith the 1GB the 1GB datadata package package at R99, at R99, which which would would havehave costcost almost almost double double that that five years five years ago.ago.

This This allows allows moremore South South Africans Africans to access to access datadata moremore affordably. affordably.

Some Some of the ofNDP the NDP programmes programmes include, include, but aren’t but aren’t limited limited to, to, quality quality basicbasic education, education, healthcare healthcare for all, foras all,well as well as economy as economy and employment. and employment.

When When you look you look at basic at basic education, education, Telkom’s Telkom’s beenbeen engaging engaging National National and Provincial and Provincial education education departments, departments, offering offering a a cost-effective cost-effective solution solution to replace to replace legacy legacy voicevoice and data, and data, thusthus saving saving the departments the departments lots of lots money of money that that theythey can redirect can redirect to to the improvement the improvement of quality of quality education education in our insystem. our system.

Telkom Telkom is is looking looking at using at using the Reverse the Reverse Bill URL Bill URL to offer to offer datadata at schools at schools as as a vehicle a vehicle to online to online education education material material and research. and research.

During During the FeesMustFall the FeesMustFall period, period, Telkom Telkom was was the first the first mobile mobile operator operator to offer to offer zero-rated zero-rated and true and true Reverse Reverse Bill URL Bill URL solutions solutions to alltoSouth all South African African universities universities and institutions and institutions of higher of higher learning. learning.

This This initiative initiative enables enables universities universities to allow to allow students students online online access access to course to course material, material, and ensures and ensures that that learning learning continues continues at noatadditional no additional costcost to the tostudents the students and universities. and universities.

In healthcare, In healthcare, Telkom Telkom is already is already working working withwith the National the National Department Department of Health, of Health, assisting assisting withwith connectivity connectivity of the ofPort the Port Health Health sitessites that that are now are now using using our Access our Access PointPoint Network Network (APN) (APN) solutions solutions at very at very cost-effective cost-effective prices. prices.

Prices Prices werewere compared compared withwith other other mobile mobile operators, operators, and Telkom and Telkom offers offers the best the best datadata prices. prices.

Email Email govsales@telkom.co.za govsales@telkom.co.za Click Click telkom.co.za telkom.co.za forfor more more info info

513223F-Telkom 513223F-Telkom NDP Print NDPAdvertorial Print Advertorial (DTP) V6.indd (DTP) V6.indd 1 1

Telkom, developing developing Telkom, the future. future. the

2019/11/11 3:58 PM

For Public Sector

Telkom, Telkom,developing developing the thefuture. future.

Telkom Telkom hashas been been part part of the of the new-democracy new-democracy journey journey as as one one of the of the state-owned state-owned

For Public Sector For Public Sector For Public Sector

A view of the South African mobile market A view of the South African mobile market The African mobile-operator spacemarket continues to be a ASouth view of the South African mobile

Big Data Big Data Big is valuable, and can be monetised by companies BigData Data

challenging yet exciting market, with existing operators having that can store andand analyse massive amounts of The South African mobile-operator space continues to be a Bigprocess, Data is valuable, can be monetised by companies to The defend their market share against at high speeds toand facilitate challenging yetmobile-operator exciting market,new withentrants. existing operators that can process, store analyse massive amounts of South African space continues to be a having data Big Data is valuable, can and be decision-making, monetised by companies service-improvement, trends and amounts the design challenging yet exciting market, existing operators having that can storemarketing and massive ofof new to defend their market share with against new entrants. dataprocess, at high speeds to analyse facilitate decision-making, Mobile operators Southshare Africa, as well as across the globe, business models.

Theto application of analytics these dataof new to defend their in market against new entrants. data service-improvement, at high speeds facilitate decision-making, marketing trendsto and the big design compete in dynamic environments that are also affected by types will give companies the competitive edge. service-improvement, trends the design of new Mobile operators in South Africa, as well as across the globe, business models. marketing The application ofand analytics to these big data many factors, including regulatory technological.

Mobile operators in South Africa, and as well as across the globe, by business models.

The application ofcompetitive analytics to edge. these big data compete in dynamic environments that are also affected types will give companies the compete dynamic environments thatand are technological. also affected by types will give companies the competitive edge. many in factors, including regulatory Virtual reality and augmented reality many factors, including regulatory and technological.

A. REGULATORY Virtual reality and augmented reality • Out-of-bundle billing: When data bundles run out, there’s no There is massive commercial potential for virtual reality and Virtual reality and augmented reality A. REGULATORY longer an automatic switch out-of-bundle charges; enabling any human being perform any and A. •REGULATORY Out-of-bundle billing:to When data bundles run out, there’s no augmented There reality, is massive commercial potential fortovirtual reality users will have the option to opt in or out, even if function, guided by analytics and external third parties.

•mobile Out-of-bundle billing: When data bundles run out, there’s no There is massive commercial potential for virtual reality and longer an automatic switch to out-of-bundle charges; augmented reality, enabling any human being to perform any they’re onan a automatic contract, with spend Telecommunications companies South Africato have already longer switch to them out-of-bundle augmented reality, enabling anyinhuman being perform any mobile users willproviding have the option to opt incharges; orcontrol. out, even if function, guided by analytics and external third parties. moved in this direction, e.g.companies with Gaming League mobile users have theproviding option to them opt inwith or out, evencontrol. if function, guided by analytics andTelkom external thirdAfrica parties. they’re onwill a contract, spend Telecommunications in Digital South have already • Data rollover: (DGL) entering space in order to diversify and adopt they’re on a contract, providing them with spend control.

Telecommunications companies South Africa have already moved inthe thisgaming direction, e.g.in with Telkom Digital Gaming League Data norollover: longer expire within 30 days. Service providers new technologies. moved in this direction, e.g. withspace Telkom Gaming League • will Data (DGL) entering the gaming in Digital order to diversify and adopt •have Data rollover: (DGL)new entering the gaming space in order to diversify and adopt to allow to roll expire over and be used up before any Data willdata no longer within 30 days.

Service providers technologies.

Data will to no longer expire within days.

Service new technologies. further data isallow allocated or for.

Telkom has have data to charged roll over30 and be used upproviders before any have to allow data to roll over and be used up before any implemented these toorallow for afor.

30-day rollover Looking forward further data ischanges allocated charged Telkom has data is allocated or charged for. Telkom has of further data. implemented these changes to allow for a 30-day rollover Looking forward implemented Looking The South forward African telecoms market will continue to present of data. these changes to allow for a 30-day rollover of data.

B. TECHNOLOGICAL opportunities forAfrican existing and newmarket playerswill in the market.

The South telecoms continue to present The South African telecoms market will continueindustry to present With Fourth Industrial Revolution Partnerships between government, experts B.the TECHNOLOGICAL opportunities forcorporates, existing and new players in the market.

B. TECHNOLOGICAL opportunities for existing must and new players in the market.to upon us, new technologies will and the larger community continue to be fostered With the Fourth Industrial Revolution Partnerships between corporates, government, industry experts With the Fourth Industrial Revolution Partnerships between corporates, government, industry experts change do will build aand cohesive, inclusive economic to better theto uponthe us,way newoperators technologies the larger community mustenvironment continue to be fostered upon us, newengage technologies will and of the larger community musttechnology continue to as beone fostered tokey business, with lives all South Africans, using of the change the way operators do build a cohesive, inclusive economic environment to better the change the operators do build a cohesive, inclusive economic environment to better the society andway service its with enablers ofof such an economy. business, engage lives all South Africans, using technology as one of the key business, engage with lives of all South Africans, using technology as one of the key customers.

There will be society and service its enablers of such an economy. society and service its enablers of such an economy. technological fundamentals customers.

There will be customers.

There will we must embrace as be a Who we are technological fundamentals technological fundamentals developing country to we must embrace as a we are we our must embraceand as a WhoWho we boost economy Telkom is aare leading information and communications developing country to developing country to stay onboost par with the globaland technology (ICT) provider in South Africa. Our mission our economy Telkom is aservices leading information and communications boost our economy and is a leading information and community. isTelkom to seamlessly connect peopleprovider to a communications better life. We carryOur thismission stay on par with the global technology (ICT) services in South stay on par with the global technology (ICT) services provider in South Africa.Africa.

Our mission through allseamlessly our brands, whether at the consumer, business or this community. is to connect people to a better life.

We carry community. is to seamlessly connect people to a better life. We carry this wholesale level. through allbrands, our brands, whether the consumer, business or through all our whether at theatconsumer, business or wholesale wholesale level.level.

A view of the South African mobile market

Big Data

The South African mobile-operator space continues to be a challenging yet exciting market, with existing operators having to defend their market share against new entrants.

Big Data is valuable, and can be monetised by companies that can process, store and analyse massive amounts of data at high speeds to facilitate decision-making, service-improvement, marketing trends and the design of new business models. The application of analytics to these big data types will give companies the competitive edge.

Mobile operators in South Africa, as well as across the globe, compete in dynamic environments that are also affected by many factors, including regulatory and technological.

A. REGULATORY • Out-of-bundle billing: When data bundles run out, there’s no longer an automatic switch to out-of-bundle charges; mobile users will have the option to opt in or out, even if they’re on a contract, providing them with spend control.

A view A view of the of South the South African African mobm

The South The South African African mobile-operator mobile-opera challenging challenging yet exciting yet exciting market, market wit to defend to defend theirtheir market market share share agains ag

Mobile Mobile operators operators in South in South Africa, Afric as compete compete in dynamic in dynamic environments environmet

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• Data rollover: Data will no longer expire within 30 days. Service providers have to allow data to roll over and be used up before any further data is allocated or charged for. Telkom has implemented these changes to allow for a 30-day rollover of data.

B. TECHNOLOGICAL

Virtual reality and augmented reality

There is massive commercial potential for virtual reality and augmented reality, enabling any human being to perform any function, guided by analytics and external third parties.

Telecommunications companies in South Africa have already moved in this direction, e.g. with Telkom Digital Gaming League (DGL) entering the gaming space in order to diversify and adopt new technologies.

Looking forward The South African telecoms market will continue to present opportunities for existing and new players in the market.

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EDITORIAL | BETTER TOGETHER

BETTER TOGETHER

By Tshediso Matona – Secretary of Planning in the National Planning Commission in the Presidency

Government and the private sector - leading partners in raising investment and implementing the National Development Plan: Vision 2030

The inauguration of a new administration led by President

We have a long way to go to reach the NDP’s 2030 targets of

Cyril Ramaphosa under the banner of renewal opens up new

dropping poverty from 39% to zero, creating 11 million jobs

opportunities for the implementation of the National Development

and reducing the Gini coefficient measure of inequality to 0.60.

Plan (NDP) Vision 2030 to gain much needed traction. During an interaction with the business sector on 15 May 2019, the President

With a fresh mandate to take South Africa forward, the new

undertook that the “incoming administration would focus on

administration is required to ensure that the priority business

implementation of the [NDP] and plans that feed into the NDP”.

of the country is re-energised and the implementation of the NDP is accelerated, making up for lost time. The remaining

South Africa’s unsustainably high levels of poverty, inequality

10 years of the current NDP towards 2030 is enough time to

and unemployment demand a renewal of the nation’s collective

improve on our performance in implementing the plan. We have

efforts to implement the NDP. With these challenges unaddressed

it within our means to achieve the transformation we seek as a

and prolonged low economic growth, the country cannot prosper.

nation. But we need a ‘business unusual’ approach, to re-invoke

Social strife and political unrest will likely increase, to our

an instructive cliché.

collective peril. This calls for radical and sustained interventions to unshackle the economy from various structural constraints. In light

To this end, there is a good foundation to build from: an effective

of this, the NDP remains a valid and compelling agenda, aiming to

social protection system is in place and has lifted millions out of

significantly increase employment, reduce poverty, and achieve

extreme poverty, partly through the provision of a basket of social

faster and more inclusive growth. However, it has not been

services. Domestic investment resources are available, along with

effectively implemented. At least not in the collective manner envisioned: spearheaded by government working together with business, labour and various actors in society.

a sophisticated financial sector, relative macroeconomic stability, relatively strong institutions, the rule of law and political stability, among others.

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PARTNERSHIPS: THE KEY MANTRA OF THE NDP Partnerships are the central philosophy of the NDP, in particular, partnership between the government and the private sector. This reflects the reality that South Africa is a mixed economy and that neither the government nor the private sector alone can achieve inclusive economic growth or reduce poverty and inequality.

In practice, however, government and private sector relations fall short of the strategic and coordinated cooperation envisioned in the NDP. Worse, lack of trust or ‘trust deficit’ are descriptions often

CHANGE AHEAD

applied to government–private sector relations. The inherited history of the economy is that government has played a dominant role in economic infrastructure provision (transport, energy, water, and so on) through state-owned enterprises (SOEs). Product and service markets, on the other hand, remain mainly the realm of private enterprise.

The economy is vitally dependent on government investment and the performance of SOEs. However, in current circumstances, unmet demand for infrastructure and the revenue constraints of both government and SOEs have proven that this model is unsustainable, to the detriment of the economy. Compared to market economy peers elsewhere, the private sector in South Africa under-participates in infrastructure investment. This is despite the fact that it is in control of trillions of rand in cash and the private pension fund sector, which has an increasing appetite for infrastructure investments.

While government has been undertaking major infrastructure investments to support growth, these have been devilled by various challenges, including growing debt exposure, price collusion by contractors, poor work quality, project delays, cost over-runs and corruption. This has also resulted in reputational damage for the private sector and has been detrimental for the required trust in government–private sector relations, thus making a case for more optimal and innovative approaches.

In order to sustain economic growth towards its goal of 5% per annum by 2030, the NDP recommends that total investment must reach 30% of GDP, with public-sector investment reaching 10% of GDP. Total investment currently sits below 20% of GDP. This increase requires a repositioning of government and private sector relations as well as an adoption of innovative approaches that have proved successful elsewhere, including greater use of Public–Private Partnership (PPP) models. Encouragingly, the need for this shift has been acknowledged by decision-makers within government.

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These programmes have cultivated cohesion between

and frameworks, led by National Treasury, must be intensified

government and the private sector by creating platforms for

and fast-tracked. Building on the experience of the Renewable

deeper, structured engagement and the exchange of ideas

Energy Independent Power Producer Procurement Programme

about the country’s plans and priorities. The initiatives are

(REIPP) may be a good place to start. The programme has

effective as they bolster the endeavours of government to

unlocked R201-billion in investment thus far – a positive

encourage the exchange of information and conveyance of

outcome, notwithstanding concerns around attendant cost

feedback provided for in consultations such as summits. In

and tariff implications.

reality, however, the performance of government has, in many

EDITORIAL | BETTER TOGETHER

To this end, the ongoing conception of new approaches

cases, been bedevilled by serious shortcomings that account Importantly, the arms-length nature of government and private

for the poor outcomes of well-intended policies. There have

sector interactions must change. The private sector’s resistance

been several areas of policy uncertainty, bureaucratic red

to government’s obligation to regulate for structural change

tape, service-delivery failures, inadequate capacity, lack of

in the economy presents as opposition to equity and inclusive

accountability and poor implementation.

policy goals. The perceptions within government is that, for the most part, the private sector has not aligned its strategies and

President Ramaphosa has grappled with these challenges and

objectives with NDP goals and priorities. From the other side of

has prioritised policy clarity and direction, and forging a fit-for-

the fence, it could appear that government is indifferent to the

purpose government with requisite skills and capability.

private sector’s concerns about red tape and policy uncertainty.

The stimulus package announced by the President early this

TOWARDS A SOCIAL COMPACT FOR INCLUSIVE GROWTH AND TRANSFORMATION There is therefore a need to create platforms for deeper, structured engagement and an exchange of ideas on the country’s plans and priorities, in between and in addition to ‘summits’, as much as other platforms are required for exchanging feedback and complaints, and taking care to limit the time-cost of multiple meetings. Government must be acutely conscious of its leadership responsibilities in the implementation of the NDP. It is conferred unique powers and is required to deploy these in pursuit of national development goals and priorities.

Government is required to implement appropriate policies and plans to achieve progressive structural change and broadened economic participation. To legislate, regulate, collect taxes, allocate resources, and engage and coordinate key stakeholders, all ensure sustained flows of investment and the attainment of NDP goals.

In some respects, government has been successful in using its powers to pursue these goals. Take, for example, initiatives such as the Presidential Business Working Group and the so-called CEO Initiative. The Private-Public Growth Initiative, launched in 2018 by former Minister in the Presidency Nkosazana Dlamini-Zuma, former minister Roelf Meyer, and Toyota Europe and Africa CEO Johan van Zyl, is another example. This programme involves joint planning and problem-solving, in no-holds-barred sessions between CEOs and various government directors-general with economic mandates.

year remains relevant and urgent to recover economic growth and employment, prioritising business confidence, and tackling governance and sustainability challenges in SOEs. It is imperative to foster an improved climate for enhanced economic activity and much higher levels of investment and growth. Many businesses are not struggling with lack of cash to invest, but are plagued by lack of confidence and a range of obstacles that require policy and regulatory clarity and increased efficiency.

At the instigation of business, this has been achieved on the tourism visa issue, and along with one-stop investment shops by the Department of Trade, Industry and Competition, is a step in the right direction.

The country needs a responsive government that prioritises inclusive growth, incentivises investment in productive sectors and promotes local procurement. Business can collaborate with government in planning and managing key infrastructure projects and on priority challenges such as skills development, climate change and strengthening the innovative and technological capacity of the country.

We need fresh approaches, involving effective partnerships and ‘social compacts’ for inclusive growth, inspired by the prevailing positive spirit of ‘a new beginning’ and building on our achievements during the past 25 years of democracy.

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VISION 2030

HOW DO WE REALISE THIS VISION? Based on a current National Treasury paper, ‘Towards an Economic Strategy for South Africa’, the economy and associated employment opportunities in South Africa are dominated by large and old companies. Mr Shahied Daniels, the Chief Executive of the South African Institute of Professional Accountants (SAIPA), has underscored that the goal of inclusive economic growth, requires emphasis to be placed on ways of empowering previously disadvantaged groups.

MORE COMPETITION Chief Executive, Shahied Daniels

South Africa’s ability to grow its job opportunities relies heavily on successful new businesses being established. A simple solution lies in creating a more competitive environment within the South African economy. We desperately need more micro enterprises and small businesses, as such entities are proven sources of employment opportunities.

Most businesses are still primarily clustered in existing urban areas, while most low earners predominantly reside in townships.

The lack of opportunities in rural areas compels millions of impoverished citizens to relocate to urban areas where they hope to achieve a better life. Sadly, many fail to find viable opportunities, languishing in poor informal settlements where their children are exposed to education that does not empower them to extricate themselves from a cycle of recurring poverty.

Unfortunately, there are no quick fixes to the structural problems in the South African economy. The coming of the Fourth Industrial Revolution (4IR) will require a concerted and strong effort from government, the private sector and the public to chart a future economic strategy that is cognisant of the challenges brought by the 4IR. ACCOUNTING AS AN ECONOMIC ENABLER At this juncture in South African history, we find ourselves needing to manage our human capital and other resources carefully, to ensure that we do not stumble into a further downward economic cycle. Daniels therefore proposes that the power of accounting be leveraged to ensure that we accomplish more with less.

The economic revival South Africa desperately needs, necessitates that we encourage and nurture entrepreneurial talents. “Professional

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Daniels aptly comments, “Above all, society as a whole must

businesses avoid these pitfalls by helping them maximising their

impart to our children a passion for learning, especially self-

capital and earnings to achieve business growth,” says Daniels.

education, as their greatest strength will be the ability to handle

ADVERTORIAL | SAIPA

accountants, acting as trusted business advisors, can help small

new tasks creatively and confidently.”

Professional accountants are also well positioned to assist A BETTER WAY TO MEASURE NATIONAL WEALTH

entrepreneurs in developing business plans that will enable them to access venture funding, whether this is from government or private investors. Furthermore, they are also able to help them

GDP is no longer the best measure of a country’s prosperity, its

determine whether they have made sufficient progress to advance

ability to fund its budget, or how well it is able to reduce its deficit.

to the next step in the business cycle, hiring their first employees.

This equally applies to organisations seeking public or private investment. Questions that are important to modern investors centre

In view of the challenges the future is very likely to pose, SAIPA

around whether economic activities bring happiness to all but a

has launched programmes that are targeted towards ensuring

select few, if there is consideration to the environment, and whether

that an increasing number of black professional accountants take

long-term sustainable growth is being created.

their rightful place in the South African economy. The Project Achiever programme is a good example of how the Institute

The advent of integrated reporting has brought together financial

aspires to prepare aspirant candidates for their professional

and sustainability considerations. By removing the fragmentation

evaluation, which is a prerequisite for the designation of

and duplication of facts, integrated reporting allows a more

Professional Accountant (SA). This process is greatly assisted

concise and refined picture of the status of a reporting entity.

by the Finance and Accounting Services Sector Education and Training Authority (Fasset) through fully-subsidising black and

Throughout the world local professional accountancy organisations

coloured candidates.

(PAOs) and international standards bodies are working together with governments to implement international accounting standards

SKILLS FOR THE FUTURE

and practices. Daniels comments: “We hope that the adoption of integrated reporting will provide a better understanding of policy consequences and contribute to improved decision-making”.

The 4IR will have a major impact on accounting and every other profession. This poses the question as to what children should be taught to prepare for this future.

COOPERATION BETWEEN BUSINESS AND GOVERNMENT

“On the technical side,” says Daniels, “the competencies needed

By assisting with economic transformation, businesses can

for traditional jobs will be superseded by the skills needed to

greatly maximise earnings potential and gain access to previously

automate those jobs. Frankly, in most occupational areas, a time

untapped markets. Consequently, their sales increase with more

may come where the only job will be to better automate business

people becoming able to afford their products and services, thereby

functions. Hence, at school there will be an increased focus on

facilitating their growth and enabling the economy to thrive.

technology and problem-solving related subjects that prepare children for these future roles. Consequently, such subjects are

To gain the necessary support, government needs to promote

increasingly being introduced into school curricula. A prerequisite

their plans for radical economic transformation to business,

being a willingness to master advanced mathematics.”

offering them better incentives. Part of this task is to build greater awareness of the need for economic transformation and

With machines and software taking over traditional work, humans

the benefits this has for business and society. Daniels notes:

will move towards spending ever-more time communicating,

“When everyone agrees on the good that will come from such

negotiating and presenting ideas to each other. Soft skills will

transformation, cooperation will grow organically.”

consequently become essential determinants of career progress these include emotional and cultural intelligence, negotiation skills,

There’s no easy road to positive radical change, a concerted

written and spoken communication, creativity and innovation.

effort between all stakeholders is required to make it a reality.

Contact Tel: 011 207 7840 | Physical address: SAIPA House, Howick Close, Waterfall Park, Vorna Valley, Midrand, 1685 Website: www.saipa.co.za | Twitter: @SAIPAcomms | LinkedIn: South African Institute of Professional Accountants Company Facebook: South African Institute of Professional Accountants

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EMPOWERING STUDENTS WITH THE RELEVANT KNOWLEDGE AND SKILLS TO BECOME ECONOMICALLY ACTIVE CITIZENS Majuba TVET College is committed to education and training, using cutting-edge technology and innovative teaching methodologies to enhance and optimise teaching and learning opportunities.

Majuba TVET College is one of 50 public Technical and

offers NQF-aligned lear nerships in collaboration with business

Vocational Education and Training (TVET) colleges in

and industry, skills programmes , and apprenticeship training .

South Africa, operating under the auspices of the Department of Higher Education and Training (DHET).

The college regards itself as an important social partner in

The college is one of the largest technical and vocational

realising the shared socio-economic objectives of the local

education and training service providers in the country,

provincial and national government. To this end, the college

specialising in priority skills development.

creates access to education and training opportunities, and

Majuba TVET College is the key service provider for technical and

to become economically active citizens.

vocational education and training in the Amajuba and Umzinyathi Districts. It services major industries in these areas, in the sectors of iron and steel manufacturing, mining (mainly coal), textile and clothing production, cement chemical manufacturing, tyre production, engineering , and primary agriculture.

There are seven campuses spread over a wide geographical area that includes Newcastle, Madadeni and Dundee. The college offers a diverse range of nationally recognised vocational and occupational programmes.

empowers our students with the relevant knowledge and skills

VISION: Empowering our nation through quality education, training and development.

MISSION: We will provide responsive and relevant education, training and development to cater for the needs of business, industry and communities.

VALUES: Our motto is “Reaching greater heights together”. It guides

Situated in Newcastle, norther n KwaZulu-Natal, the college

our values, which are:

plays a significant role in the holistic development of our

•

students, as part of preparing them for the world of work. In addition to the ministerial programmes, namely, the National Certificate (Vocational) and Report 191 (N1–N6), the college

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Creativity: To be resourceful, innovative and unconventional thinkers in what we do

•

Respect: To accord dignity to those whom we serve and work with

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•

•

• Electrical Infrastructure Construction • Engineering and Related Design

Service: To respond efficiently and effectively

• Hospitality

to the needs of our staff and clients

• Office Administration

Perseverance: To continuously apply ourselves

• Primary Agriculture

ADVERTORIAL | MAJUBA TVET COLLEGE

•

Integrity: To demonstrate a sense of justice and honesty in everything we do

• Tourism

to the best of our abilities

National N-Diploma

CAREER GUIDANCE

This qualification is primarily aimed at giving a student

We have a comprehensive and developmental advice

theoretical knowledge, practical knowledge and workplace

programme designed to help learners to make and carry

knowledge and skills required in their chosen vocational

out informed educational and occupational choices.

area. The design of the qualification enables students to progressively obtain the qualification by completing the

We offer guidance for the following career paths:

related N1, N2, N3, N4, N5 and N6 courses, in a particular

• Agriculture

vocational area.

• Boilermaking • Business Field • Business Management

Courses offered:

• Chemical Engineering

• Business Management

• Civil Engineering and Building

• Chemical Engineering

• Electrical

• Civil Engineering

• Engineering Field

• Electrical Engineering

• Finance

• Farming Management

• Fitting and Turning

• Financial Management

• Hospitality

• Hospitality

• Human Resource Management

• Human Resource Management

• Public Management

• Management Assistant

• Motor Mechanics • Office Administration

• Mechanical Engineering

• Tourism

• Public Management

NATIONAL CERTIFICATES

Artisan Courses:

We offer both National Certificate Vocational (NC(V)) and

• Boilermaker

National N-Diploma programmes.

• Bricklayer • Carpenter

National Certificate (Vocational) programmes

• Electrician

The NC(V) programme is offered at levels 2 to 4 of the National

• Electro-Mechanician (Millwright)

Qualifications Framework (NQF) and is intended to directly address the

• Instrument Mechanician

priority skills in demand in the South African economy. The NC(V) is

• Learner Technician Electrical

designed to provide both theory and practice, thus granting students

• Learner Technician Instrumentation

an opportunity to gain work experience during the period of study.

• Learner Technician Mechanical • Fitter

Practical experience may be gained in either a simulated

• Turner

or real workshop environment.

• F itter and Turner • Plumbing

Courses offered:

• Rigger

• Civil Engineering and Building Construction

• Welder

CONTACT US Majuba TVET College Central Office: 83 Allen Street, Newcastle 2940 Website: www.majuba.edu.za

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THE PRIVATE SECTOR AND THE NATIONAL DEVELOPMENT PLAN

By Adrian Gore

“...South Africa stands at a point of both considerable opportunities and challenges to liberate its remarkable potential.”

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holds, on a broad range of issues, South African respondents in the

Cabinet elected, South Africa stands at a point of both considerable

Ipsos MORI survey gave the least accurate guesses of the figures

opportunities and challenges to liberate its remarkable potential. On

on global and national development – out of all 28 countries. We are

one hand, our challenges are significant and widespread, with the

needlessly and ignorantly pessimistic.

EDITORIAL | THE PRIVATE SECTOR

With the 2019 elections held, President Ramaphosa sworn in and

Zuma years having cost us in terms of economic stability, service delivery and investor confidence. On the other, there has never been

Declinism could easily be excused as a peculiarity of cognition,

more at stake, given our country’s immense potential and the unique

except, it has real and dangerous consequences, which impede our

window to turn things around. Core to unlocking this potential is

progress.

the ability to create dignified jobs and foster inclusive economic development. It has become clear that the public sector cannot do

Firstly, we don’t see our country’s progress. The fact is South Africa, like

this alone – meeting the goals of the National Development Plan

the world, is a fundamentally better place as time progresses. Our GDP

(NDP) (a 61% increase in the number of jobs by 2030) requires

is 2.5 times the size it was in 1994 on a dollar basis, formal housing

collaboration from the private sector. Our belief is that corporate

increased by 131% from 1996 to 2016, new HIV infections were down

South Africa is well-equipped to build the country, but that it comes

60% between 1999 and 2016, and the murder rate per 100 000 came

down to a question of attitude – attitude drives fundamentals, not the

down 50% from 1994 to 2017.

other way around. And core to a nation-building attitude is positive leadership.

Secondly, we see problems as insoluble anomalies and our decline as inevitable. What blinds us from recognising our progress is our

THE VISION-BASED LEADERSHIP IMPERATIVE: CHALLENGING A

myopic obsession with the problem of the day. Pre-2005, the issue

DECLINIST OUTLOOK

was HIV/Aids. Then we experienced crime in the early 2000s, followed by xenophobia in 2008, and labour unrest thereafter. In the past few

In order for there to be collaboration on issues central to our

years, #FeesMustFall, state capture and land expropriation have

country’s progress, we need a vision of the future that is worth

occupied the public’s attention as the issues signaling our impending

buying into – a future worth losing. This requires seeking out

demise. It is precisely because these problems change that they

positive cues regarding our country’s progress and strengths,

cannot be intractable. I’m not minimising these problems, I’m making

and is vital to creating urgency to act. Worryingly, we are seeing

the point that we have the ability to gain traction on these issues.

the opposite: problem-centered leadership, and a negative public narrative that impedes progress. This pessimism is known as

Our country is also larger and more relevant than we think. Our

declinism – the belief that our world (or country) is on an irreversible

provinces square up against other countries in terms of GDP:

downhill trajectory, which is driven by our biological coding to seek

Gauteng is bigger than Kenya and Ethiopia, and the Western Cape

out negative cues and is a fundamental conditioning for survival.

is almost the size of Ghana. Our economy is substantial: in terms of stocks traded in 2017 (USD bn), South Africa trumps the Middle

This pessimism is pervasive: in 2017 the global market and opinion

East and North Africa region, Singapore, and Norway; it also holds

research organisation Ipsos MORI surveyed the perceptions of

82% of the pension fund assets in Africa, 18 times that of its second-

almost 27 000 people across 28 countries about how the world

ranked peer, Nigeria. This is in spite of Nigeria’s GDP being larger

is changing. Sixty-two percent of respondents believed the

than our own and its population being 3.4 times larger. This is

world was getting worse, fueled by misperceptions of how things

important structurally because these long-term savings are invested

have changed. Importantly, the degree of optimism about the

into government and corporate debt and company equity, driving

future differed hugely based on people’s knowledge about global

growth. Our market also enables massive companies to be built.

development – those that were most pessimistic tended to have the

Discovery’s revenue footprint (including Discovery Health Medical

least basic knowledge of how the world has changed for the better.

Scheme) is more than half that of Mauritius; and both Standard Bank and FirstRand are bigger than all Nigerian banks combined on a tier

The major flaw in much of the declinist narrative is the failure to

one capital basis.

distinguish between absolute and relative changes. On a range of measures, the world is better now than it has ever been: life

The effect of declinism is that we start perceiving our country and its

expectancy is up, the threat of infectious disease has been greatly

economy as risky and we avoid investing, when the opposite should be

reduced, children are staying in school longer, and literacy is on the

the case. South Africa has a relatively stable economy, as seen by its

rise – among other positive trends.

GDP growth, which is the lowest in volatility when compared against BRIC peers over 1994 to 2017. This suggests that we misprice risk and

As South Africans, we suffer from this declinist view acutely. Not only

miss opportunities. Our country has remarkable potential, but we need

are we gloomy about how the world has changed and what the future

to deliver economic growth, which is vital to addressing our serious

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challenges of unemployment, poverty and inequality – and to delivering

of this is the visionary governmental leadership that led to the

real improvements to quality of life. Looking back, had South Africa

CEO Initiative – a mechanism for getting public, private and labour

mirrored the rate of global or emerging market GDP growth, we could

sectors to work together on solutions to national challenges. This

have been 17% or 38% bigger (respectively). The Bureau for Economic

initiative gave rise to distinct streams overseen by private-sector

Research puts the cost of thelast 10 years at R500-billion, and the

champions, with the SA SME Fund being one.

opportunity cost at 2.5 million additional jobs. Vision-based leadership is the antidote to this pessimism – and must be the property of both

The SME Fund aims to invest in and help scale five to 10 significant

public and private sectors.

black businesses, over 200 black small and medium enterprises, and five world-class black entrepreneurs, with over R700-million committed

THE ROLE OF PUBLIC–PRIVATE COLLABORATION

to partner funds to date.

We have a chance now to embark on a decade of positive,

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vision-based leadership that can undo the legacy of the previous

Given that the NDP projects 90% of new jobs will be created by small

administration and unleash our inherent potential. One example

business in 2030, we believe this is where the greatest opportunity

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EDITORIAL | THE PRIVATE SECTOR

lies. Hence, the vast majority of the fund’s investments focus on

businesses will receive access to key executives and procurement

small businesses of R100-million or less. It is about empowering

officers in shareholder companies, C-suite mentors, and capital to

entrepreneurs to progress from startup phase to businesses of scale,

help guide their development. We strongly believe that these kinds

to move the needle on job creation.

of scalable and empowered small and medium businesses will help create the economic growth and employment we so desperately need.

As a subset of the SME Fund, we have launched the CEO Circle, an initiative aimed at accelerating the growth of high-potential black

I hope these arguments have made it clear that our country has made

businesses within the fund’s shareholders’ supply chains. The fund is

remarkable progress, and that more than ever, we need the private and

harnessing the power of its ecosystem of blue-chip shareholders and

public spheres to display the kind of leadership that ignites progress.

fund managers to help achieve these bold goals. The CEO Circle will

The latter involves acknowledging our country’s progress and creating

select an initial group of five to 10 highly scalable black businesses

hope; seeing our problems as real, but solveable, and seeking out

which have been in operation for at least five years and which

positive cues alongside negative ones when reading our environment;

have strong revenue growth and R50-million plus turnover. These

and recognising the potential of our economy and investing in it.

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INTERVIEW | KFC

TARUN LAL KFC GENERAL MANAGER

THE FIGHT AGAINST HUNGER

How does KFC SA align to Vision 2030?

stories have emerged out of this initiative by empowering young people to break

KFC Add Hope’s priorities are to help meet the

out of the cycle of poverty.

nutritional needs of underprivileged children in South Africa by providing them with nutritional meals that

We meet many young people who tell a story of where they were once overwhelmed

allow them to grow and develop. We know that better

with hunger and a dire outlook on life and through the help of Add Hope and the various

nutrition in early childhood can have a lasting impact

organisations we support, they were given the opportunity to break the cycle of hunger.

on physical, cognitive and social development, giving the next generation hope by unlocking potential and

Sinanziwe Ndlovu is one such person who tragically lost both her parents and, with

boosting prosperity. The KFC Add Hope initiative aims

that, the chances of reaching her dreams were near impossible. Through Afrika

to provide as many children as possible in South Africa

Tikkun, one of the non-profit organisations supported by KFC Add Hope, Ndlovu

with the necessary nutrition required at the foundation

completed her diploma in public relations and communications at the University of

phase to help lift them out of poverty.

Johannesburg this year.She has since completed a learnership in child and youth care development at Afrika Tikkun where she went on to join them as a library

This year, KFC is celebrating 10 years of the

facilitator at the Uthando Centre, helping young people with reading skills, public

Add Hope campaign. What is the ethos behind

speaking and homework support.

this initiative?

Children cannot learn or grow on empty stomachs

How many beneficiaries does KFC support and are there plans to increase

and good nutrition is a crucial part of helping them

this number?

reach their full potential. Over 3.2 million children in

Through various non-profit organisations, Add Hope supports 150 000 children

South Africa do not have access to nutritious food

with over 30 million meals across South Africa every year. Since its inception

and go to bed hungry every night, robbing them of

in 2009, we have raised just over half a billion rand between KFC contributions

their future potential. It was with this in mind that

and customer donations, and we are working on growing the work that KFC Add

KFC, in 2009, first reached out to its customers to

Hope does in a sustainable manner by supporting more organisations who share

join our efforts and add R2 to their purchases in order

the same vision to curb childhood hunger through the help of stakeholders and

to fight childhood hunger. The feeding is done by

everyday consumers.

partnering with NGOs that equip preschoolers and schoolgoers – and even their families – with good

What’s next for KFC?

nutrition and nurturing care to help them learn, grow

We want a South Africa where all children have the nutrition they require to grow,

and thrive.

Can you share one or two success stories that have come from the Add Hope initiative?

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learn and thrive. As such, we remain committed to the fight against hunger and are looking forward to partnering with our customers to continue growing the footprint and impact that Add Hope has. We also hope to expand our partnership with the various non-profit organisations we support, which has been a key strength of the

Almost a generation of young people have been

programme and it is through their incredible work on the ground that we are able to

helped since Add Hope started and many success

reach as many children as we do.

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ADVERTORIAL | KFC

ADDING HOPE, TEN YEARS ON In his State of the Nation Address of 2019, President Cyril Ramaphosa

to feed 150 000 children in South Africa and is growing every year. This is

revealed a bold new target for the country: to eliminate hunger within

more than 500 times what was first collected and distributed in 2009.

the next decade.

From humble beginnings, Add Hope has, over the course of the last decade,

“Let us agree, as a nation and as a people united in our aspirations, that within the next 10 years we will have made progress in tackling poverty, inequality and unemployment, where no person in South Africa will go

come a long way. But there remains a way to go.

We are continuously identifying new opportunities to grow the programme

hungry,” the President said.

and extend its reach. Last year, we increased our reach in the Eastern Cape

The University of Cape Town’s most recent South African Child Gauge puts

organisation partner, The Lunchbox Fund, and expanding our funding to

the number of children who live below the food poverty line at more than

existing organisations that we work with. In addition to the funding we

six million. Children cannot learn or grow on empty stomachs, and good

provide, we are also looking at sustainable feeding options and supply chain

nutrition is therefore a crucial part of helping them reach their full potential

optimisation to ensure that we operate as efficiently as possible and reach

and, ultimately, realising the goals set out in the National Development Plan

as many children as we possibly can.

and Northern Cape provinces by taking onboard a new national non-profit

of poverty reduction, economic growth, economic transformation and job creation. At KFC, we want every child in South Africa to have all they need

Beyond this, our vision for Add Hope is to increase the initiative’s footprint

to be the very best they can be and achieve their potential.

across the country in a tangible, meaningful way.

It was with this in mind that KFC first, in 2009, reached out to its customers

President Cyril Ramaphosa said in June that his plan to eradicate hunger

to join KFC’s own donation and add R2 to their purchases in order to fight

in the country was a ‘bold’ one, but one which he believed we could achieve.

childhood hunger. The response has been phenomenal.

And if the last 10 years are anything to go by, we at KFC agree. As the

To date, the Add Hope initiative has – through customer donations and

achieved over the last 10 years would have been possible without the support

KFC’s contributions combined – raised a total of more than half a billion rand.

of our customers and other stakeholders and likewise, none of what we strive

The programme works directly and indirectly with non-profit organisations

to achieve in the next 10, will be possible without this partnership either.

old adage goes: “It takes a village to raise a child.” None of what we have

Office address: Building G, Knightsbridge Office Park, 33 Sloane Street Bryanston, 2191 Contact: 0860 100 222

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Email: kfccustomercare@dsg.co.za

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We b s i t e : w w w. k f c . c o . z a / a d d h o p e

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POVERTY ALLEVIATION, INEQUALITY AND JOB CREATION V IS IO N 2 0 3 0 , O U R F U T URE OUR P LA N, V OL 4 |

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SPECIAL ECONOMIC Z NES By the SEZ Unit at the Department of Trade, Industry and Competition In an effort to foster an inclusive economy that is epitomised by high levels of foreign and domestic direct investments, low levels of unemployment and an export base that is dominated by value-added products, the South African government currently espouses a number of pro-industrialisation initiatives.

The Special Economic Zones (SEZs) programme seeks to leverage

these requirements, which are also articulated in the SEZ Policy and

the country’s comparative and competitive advantages with a

the Special Economic Zones Act 16 of 2014.

view to create an internationally competitive value proposition A total of 10 SEZs have been designated to date. In 2018, the

for the country.

Atlantis SEZ, a green-tech hub, and Nkomazi SEZ, envisaged as The SEZ policy specifically advocates that this be achieved

an agro-processing hub, were the latest designations under the

through four key determinants:

programme. In 2012, 10 years after designation, the Coega SEZ had 20 investors with a value of R1.13-billion, creating 3 778 jobs.

i) Intensive industrial agglomeration ii) Access to the required industrial infrastructure

As at 2018, Coega had 43 operational investors worth over

iii) C oordinated planning among key government agencies and

R9-billion and had doubled its employment creation to 8 210.

In 2012, East London had 21 operational investors valued at

the private sector iv) Structured development of other complementary development tools

R1.1-billion, with 1 179 jobs created. Six years later, East London had 31 investors valued at R4.4-billion and has created 3 839 jobs.

Consequently, the SEZ programme is a central part of South Africa’s efforts to reignite economic growth by attracting strategic investments

The total number of investors in the SEZ, 10 years after designation,

with the greatest potential for sustainable growth and development.

stood at 51. The number of operational investors in designated

Its successful implementation depends on a number of prerequisites

SEZs in 2018 had more than doubled at 115 with an investment

in place. Key among these is a transparent, conducive and consistent

value of more than R16-billion and exports of more than R4-billion.

investment environment. The SEZ programme attempts to incorporate

The number of direct jobs had also increased to 15 712.

AREAS OF DESIGNATED SEZs 1: OR Tambo SEZ Size: 49ha

5: Richards Bay IDZ

7

Size: 383ha 5: D ube Trade Port

2: Saldannha Bay IDZ

SEZ Size: 302.9ha

1

Size: 356ha 2: Atlantis SEZ Size: 118.6ha 3: Maluti-A-Phofung SEZ Size: 1 039ha

6: N komazi SEZ Size: 155ha

3

7: M usina-Makhado

5

SEZ Size: 7 262ha

4: Coega

4

SEZ Size: 9 259ha 4: East London IDZ Size: 462ha 76

6

2

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No.

Name ofthe SEZ

Province

Size (Ha)

1

Coega

Eastern Cape

2001

9003

2

Atlantis

Western Cape

2018

118

3

East London

Eastern Cape

2002

462

4

OR Tambo

Gauteng

2002

7

5

Dube Trade Port

KwaZulu-Natal

2016

302.9

6

Saldanha Bay

Western Cape

2013

356

7

Maluti-A-Phofung

Free State

2014

1039

8

Richards Bay

KwaZulu-Natal

2002

467

9

Musina-Makhado

Limpopo

2018

7262

Nkomazi

Mpumalanga

2018

155

10

Proposed SEZ

Province

Sectoral focus

Status

PGM beneficiation and mining input supplier park

Designated for public comments

Bojanala

North West

Upington

Northern Cape Solar manufacturing hub

Wild Coast Mthatha

Eastern Cape

Planning phase

Silverton Gauteng Automotive Hub

Automotive and components hub

Planning phase

Tubatse

PGM beneficiation and mining input supplier park

Planning phase

1. COEGA

2. ATLANTIS

SECTORAL FOCUS:

SECTORAL FOCUS:

Automotive, chemicals, business processing, renewable

Renewable energy / green tech hub

energy, agro-processing

Application received

Agro-processing and tourism hub

Limpopo

LAND OWNERSHIP:

LAND OWNERSHIP:

Lease agreement with the City of Cape Town for 110 ha.

Coega Development Corporation. Transfer pending from

Five sites privately owned but the control of the land

Transnet on 7.86ha of land.

EDITORIAL | SPECIAL ECONOMIC ZONES

Designation year

is with the SEZ operator

COEGA is the largest SEZ in Southern Africa, at 9 003ha. It was

The Atlantis ‘greentech’ SEZ is an existing industrial park

designated in 2001 and became South Africa’s first Industrial

with a four operational investors valued at R680-million

Development Zone (IDZ). It is located in the Nelson Mandela Bay

and a pipeline estimated to be worth R2.4-billion. Existing

Metropolitan Municipality in the Eastern Cape, and is strategically

employment creation is 312. The SEZ was officially launched

located on the east-west trade route to service both the world

by the president on 6 December 2018. The zone was approved

and African markets.

by National Treasury in early 2019.

The SEZ leverages on public sector investment to attract both foreign and domestic direct investment in the manufacturing sector, with an export orientation. The SEZ has attracted investment in the agro-processing, automotive, aqua-culture, energy, metals logistics and business process services sectors.

This has advanced socio-economic development in the Eastern Cape region through skills development, technology transfer and job creation. The recorded accumulative numbers of jobs since inception is more than 112 974, trained 6 674 people and spent R707-million on SMMEs. At the end of 2018, Coega has 43 operational investors, with four construction sites underway. These investors have pledged a total private sector investment of R11.750-billion, and they include BAIC SA (R11-billion), OSHO Cement (R600-million), Akacia Medical (R100-million) and HELLA (R50-million). BAIC SA has created 1 839 jobs during phase one of their investment.

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3. EAST LONDON SECTORAL FOCUS: Automotive, steel fabrication, renewable energy, agro-processing LAND OWNERSHIP: ELIDZ Co (Pty) Ltd The East London SEZ is characterised by innovation, efficiency, growth and sustainability. Established in 2003, the zone has become a prime industrial park in South Africa, renowned for its customised solutions for various industries, including automotive, agro-processing and aqua-culture.The zone has already attracted over R1-billion worth of investment in the automotive sector. It has a world-class Automotive Supplier Park (ASP) that houses world renowned automotive suppliers and has positioned itself as an ideal location for an Original Equipment Manufacturer (OEM). In 2012, the SEZ established the Metal Surface Treatment (aluminium treatment and E-Coating) facility which is located at its ASP. This became the first facility of its kind in the greater border area. As part of its service offering in line with the renewable energy sector, the SEZ established a Science and Technology Park (STP) to establish high-tech, home-grown enterprises which will locate in the zone to manufacture new products, create competitive growth entities in the form of new manufacturing entities, and offer value-added services to the SEZ tenants to ensure they meet market required standards.

5. DUBE TRADE PORT SECTORAL FOCUS: Agro-processing, electronics, pharmaceuticals LAND OWNERSHIP: ACSA, DTP Co and joint venture between the two – La Mercy Property Investment (Pty) Ltd

4. OR TAMBO SECTORAL FOCUS: Perishables, tertiary metals processing, advanced

a portal between KwaZulu-Natal and the world. It is the only facility in Africa that brings together an international airport, cargo terminal, warehousing, offices, a retail sector, hotels, and an agricultural area. Located 30 km north of Durban, Dube Trade Port is positioned

component manufacturing

between the two biggest sea ports in Southern Africa, and linked

LAND OWNERSHIP:

on manufacturing and value addition, primarily for automotive,

Gauteng IDZ lease with ACSA

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The Dube Trade Port is regarded as a catalyst for global trade and

to the rest of Africa by road and rail. The trade zone aims to focus electronics and fashion garments.

The OR Tambo SEZ aims to develop land around the OR Tambo

The facility involves warehousing, manufacturing, assembling real estate

International Airport in order to stimulate economic development

resource, complete with a single facility in which all freight forwarders

through the use of the SEZ mechanism. The OR Tambo SEZ supports

and shippers are located (Dube TradeHouse), which enjoys a direct link

the growth of the beneficiation of precious metals and minerals sector,

to the adjacent Dube Cargo Terminal, via an elevated cargo conveyor

with a focus on light, high-margin, export-oriented manufacturing

system. The AgriZone is a high-tech, future farming facility, and host to

of South African precious and semi- precious metals. The multi-site

the continent’s largest climate-controlled growing area under glass, will

development at the SEZ consists of several industry-specific precincts

focus on high-value, niche agricultural and horticultural products. The

and will be developed in phases over a 10 to 15-year period. The first

AgriLab will look into specialised tissue culture, greenhouses, flowers

investor into the zone, launched on the 5 April 2019.

and plants, all of which require swift air transportation.

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6. SALDANHA BAY EDITORIAL | SPECIAL ECONOMIC ZONES

SECTORAL FOCUS: Oil and gas services LAND OWNERSHIP: TNPA (Zone 2), SBIDZ Co (Zone 1,3,4 and 5) SALDANHA BAY SEZ is a sector-specific SEZ, designated to serve as the primary oil, gas and marine repair, engineering and logistics services complex in Africa, servicing the needs of the upstream oil exploration industry and production service companies, in the oil and gas fields off sub-Saharan Africa.

Situated approximately two hours north of Cape Town, the SEZ will include logistics, repairs and maintenance, and fabrication activities. It offers the largest and deepest port in the southern hemisphere with a berthing depth of 21.5 m. The SEZ has a pipeline of 52 investors, eight of which have signed lease agreements and have an investment value of over R3-billion.

The SEZ is also in the process of developing an Innovation Campus, the West Coast Business Development Centre and a Customs Control Area within the SEZ.

7. MALUTI-A- PHOFUNG SECTORAL FOCUS: Agro-processing, logistics, pharmaceuticals LAND OWNERSHIP: Free State Development Corporation

The Maluti-A-Phofung SEZ in Harrismith, Free State, lies at the mid-point of the crucial Durban-Johannesburg logistics route.

This newly established SEZ offers exporters a logistics base that

8. RICHARDS BAY SECTORAL FOCUS: Mineral beneficiation, ship repair, manufacturing

facilitates access to the Port of Durban, and inter-modal logistics

LAND OWNERSHIP:

solutions for the transfer of freight between road and rail.

Phase 1A (RBIDZ Co), Phase 1F (transfer pending from Municipality to RBIDZ), Phase D and C (Municipality)

The zone is well-suited and licensed for general manufacturing, offering a convenient production base for light and medium manufacturing. With excellent logistics links by road or rail to

The Richards Bay SEZ is a purpose built and secure industrial

South Africa’s industrial heartland, the Port of Durban and the

estate on the North-Eastern South African coast. The N2 business

southern Bloemfontein-Cape Town route, this SEZ is a natural

corridor links the Province’s two major ports, Durban and

choice for investors seeking a cost-effective location to service

Richards Bay, and connects with Maputo in Mozambique and,

domestic and export markets.

ultimately, areas of East Africa. It is linked to the international sea port of Richards Bay, tailored for manufacturing and storage

In addition, this SEZ intends building on existing strengths to

of minerals, and products to boost beneficiation, investment,

attract agro-processing industries to an area that has good access

economic growth and, most importantly, the development of skills

to the products of the agriculturally rich Free State Province.

and employment.

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9. MUSINA- MAKHADO EDITORIAL | SPECIAL ECONOMIC ZONES

SECTORAL FOCUS: Metallurgical processing, petro- chemical and logistics LAND OWNERSHIP: Lease agreement between Mulambwane Communal Property Association and LEDA Lease agreement between Mulambwane Communal Property Association and LEDA The Musina/Makhado SEZ comprises two geographical locations that address unique industrial clusters. The site in Musina targets the light industrial and agro-processing clusters, while the Makhado site is a metallurgical / mineral beneficiation complex.A third site has been identified to target the petro-chemical industries. This SEZ is strategically located along the N1 North-South route into the Southern African Development Community (SADC), very close to the border between South Africa and Zimbabwe. It forms part of the TransLimpopo Spatial Development Initiative (SDI) and has been developed as part of greater regional plan to unlock investment and economic growth, and address the development of skills and employment.

10. NKOMAZI SECTORAL FOCUS: Agro-processing and trade hub

Newly built infrastructure enables full utilisation of the area’s unique

LAND OWNERSHIP:

combination of mineral endowments and supports industries in the

Nkomazi Local Municipality (to be transferred to MEGA

full value chains for mineral beneficiation, agro-processing and light

as the as SEZ operator)

industrial manufacturing. The strategic location of this SEZ and its close proximity to the main land-based route into SADC and the African continent, together with supporting incentives and a good logistics backbone, will make it the location of choice for investment in the mineral beneficiation, agro-processing and petro-chemical industries.

The NKOMAZI SEZ is conceptualised as an agro-processing hub, which will be supported by mixed services such as warehousing and logistics. The targeted value chains of the SEZ include secondary and tertiary stages of processing with respect to the following products: citrus and sub-tropical fruits; aromatic plants/ herbs; ground and tree nuts; sugar cane; nutraceuticals; meat processing; leather goods; agri-inputs such as fertilizer. A total land area of 155 ha has been designated, consisting of industrial zones 1A, and 1C, zones 2A and 2B and zones 3A, 3B and 3C. Cabinet has ratified the decision to designate the zone in November 2018.

SECTORAL OVERVIEW 2018/2019FY (Q4) Automotive: 25% Agro-Processing: 7% Electro-Technical / ICT: 2% Energy (incl. Renewables): 9% General Manufacturing & Services: 14% Pharmaceuticals: 2% Aquaculture: 2%

FOREIGN & DOMESTIC DIRECT INVESTMENT

Logistics & Warehousing: 31% Chemicals: 4% Metal Fabrication: 2% Mineral Beneficiation: 1% bpo: 1%

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GAUTRAIN MANAGEMENT AGENCY

FOR PEOPLE ON THE MOVE The Gautrain Management Agency (GMA) was established

The Gautrain Project has made a major contribution over the years to help

by the Gauteng Provincial Government (GPG) in terms

the Gauteng Province become a more efficient economy. The project has

of the GMA Act (Act No 5 of 2006) to manage the

had the following economic impact in the province:

implementation of the project and the relationship with the concessionaire. The GMA’s focus is to manage, coordinate and oversee both the operation and maintenance of the Gautrain Project and the implementation of the extension of the system to accommodate future demand and new

• The project created 35 000 direct job opportunities during construction

• More than 10 900 direct jobs were created during operations

services as identified in the 25-Year Integrated Transport Master Plan (ITMP25) for Gauteng.

Gautrain is a passenger rail system linking Johannesburg, Tshwane, OR Tambo International Airport and Sandton.

Gautrain is mainly aimed at providing and optimising an integrated, innovative public transport system that enables and promotes the long-term sustainable economic growth of Gauteng. It is also part of a broader vision to industrialise and modernise the region, including a commitment towards creating and sustaining an integrated

• 87 000 indirect and induced jobs were created • A n increase in property values close to the stations, and the residential properties, which have added to the GDP of the province • T he project has facilitated regional development – 70% of all trips on the Gautrain cross a city boundary • Foreign direct Investment into the province increased to over R44-billion in 2016

culture of public transport use. The service offers fast, convenient, safe and efficient public transport.

SED achievements Gautrain brings economic benefits in that efficient public transport and lower road traffic congestion increase productivity and the economic viability of Gauteng and decreases the out of pocket cost of transport to the community. In addition to reducing costs caused by congestion, public transport creates jobs and supports local economies.

The Gautrain Project Socio-economic Development (SED) regime was developed as the first of its kind for a rapid rail network in South Africa. Since inception the project has continued to break new ground in ensuring that specific SED objectives are met. Gautrain adopted an innovative process to translate the government’s objectives into measurable performance indicators so that these could be entrenched into contractual obligations and the commitment of the concessionaire could be fostered.

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Since the Gautrain project development, R10-billion has been invested in new developments and upgrades to retail centres in a 10 km radius around Gautrain stations between 2009 and 2014. There has been a R12.9-billion increase in residential property values. This impact is seen in a well-positioned node close to Sandton and surrounded by good surrounding residential areas in which developers have invested substantially as part of the rejuvenation of the area.

One of Johannesburg’s fastest growing development nodes is the colourful Rosebank area, which has undergone considerable growth in recent years.

Ongoing upgrades are being made to the precinct, some R7-billion being spent on the development of commercial buildings such as the new upgraded Rosebank Mall. All these developments have assisted in stimulating the booming residential property market in Rosebank. Various property developers have attested that well-situated residential property within the Rosebank precinct is popular particularly among a younger ‘hip-and-happening’ crowd who are attracted to the cosmopolitan urban lifestyle that the area offers.

Each Gautrain station has witnessed an increase in lettable areas in its immediate surrounds in terms of office or industrial development.

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ADVERTORIAL | GAUTRAIN MANAGEMENT AGENCY

Operations and activities

Changes in the travelling patterns

While running approximately 6 700 train trips monthly,

The Gautrain system has increased connectivity, which has led

performance norms for availability and punctuality of the train

to residential, business and industrial densification, thereby

service are mostly at 98.5% and 95% respectively – providing

integrating the metropolis.

an efficient public transport option for people in the province.

To date, together with the support of its bus service, there have

It has the potential to significantly change the way we live and

been approximately 105 million passenger rail trips and 32 million

travel while preserving and enhancing our mobility. It improves

bus trips since the commencement of Gautrain’s operations.

the access of individuals and societies to core areas where there are goods, jobs, education and leisure.

Gautrain has midi-bus operations at Marlboro, Sandton, Centurion and Hatfield stations. This operation is in

Whilst improving the image of public transport in the province,

partnership with the taxi industry.

Gautrain has made travelling quick and convenient. It now takes 15 minutes to travel from Sandton to OR Tambo International Airport on

This partnership is to facilitate the integration of the taxi

the Gautrain and 35 minutes from Pretoria in Tshwane to Park Station

industry into the Gautrain system. The midi-bus operations

in Johannesburg. It further enhances a vibrant economy by creating

have proven successful in improving accessibility to public

more job opportunities, improving worker productivity and integrating

transport and integration of the Gautrain system with public

various sectors which ultimately leads to community development and

transport services.

upliftment. Gautrain facilitates sustainable growth and liveable cities.

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THE ROAD TO

GROWTH

By Vusi Mona Political risk and openness to trade are often emphasised for their ability to encourage or deter foreign direct investment in an economy. While it might not be in the spotlight as a means to encourage these investments, infrastructure is essential to promote business operations and accelerate economic development.

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According to the Roads Agency, it has construction projects that

contribution that the national roads network can make to

are already being implemented and will fit in seamlessly with other

balanced growth, job creation and entrepreneurship. It refers to

initiatives designed to attract investment from the private sector

these roads as “South Africa’s largest single public asset” and

and development finance institutions. In the Eastern Cape, for

highlights their role in connecting people and moving products

example, work on the N2 Wild Coast Road, which will unlock the

from small settlements to the centres of economic activity.

potential of one of the country’s poorest regions, is well underway.

It will help to eradicate the legacy of apartheid spatial planning

The design, management and maintenance of the road network

that has isolated many communities from access to government

all contribute to mobility, support economic growth objectives

services and opportunities in the fields of tourism, heritage and

and offer improved access to economic opportunities and

agri-processing.

government services to communities across the country.

However, the legacy of apartheid spatial planning often inhibits

The current projections are that every R1 spent on the roads project will

balanced growth and prevents communities from accessing these

unlock R3.15 for the local and regional economies. Within the regional

opportunities. The planning of the future road network must take

context, the N2 Wild Coast Road will save three hours of travel time

into account the role of this critical infrastructure to facilitate

between Durban and East London, improve logistical linkages, and

easier access to such opportunities, jobs and resources.

facilitate the easier and safer movement of people, goods and services.

These are among the factors that influence current and future plans

Further north, the new Mount Edgecombe Interchange between Durban

to manage the existing road network and expand into geographical

and the King Shaka International Airport was recently opened. This was

areas that have been marginalised in the past. At the same time, the

the culmination of an intricate engineering and construction project

network supports the growth of those sectors of the economy that

that was recognised by the Concrete Society of Southern Africa as the

will be vital to the country’s future developmental trajectory. Major

top infrastructure project of the year in 2017. The value of this initiative

road upgrades that are currently underway will support the growth

stretches beyond the engineering achievements. It represents investment

of tourism by providing easier and safer access to destinations that

in strategic economic infrastructure that will unlock greater value for the

were inaccessible in the past.

city of eThekwini, the province of KwaZulu-Natal and regions further afield,

EDITORIAL || THE THE ROAD 4TH IRTO GROWTH EDITORIAL

The National Development Plan (NDP) is clear about the

including the neighbouring countries like eSwatini and Mozambique.

Access to world-class roads is the common denominator of all 18 Strategic Infrastructure Projects (SIPs) identified in the National

Major upgrades have also been affected on the N1 highway on South

Infrastructure Plan (NIP). It is a vital factor in unlocking the economic

Africa’s northern border – the country’s primary road link into the

potential of the northern mineral belt (SIP 1). In the Durban-Free

rest of the continent. The construction of the Musina Ring Road will

State-Gauteng logistics corridor (SIP 2), most of the primary

contribute to the broader initiatives to improve facilities at Beitbridge,

movement of goods, products and services will take place on the

Zimbabwe – the busiest land entry point into South Africa.

road network. And in the Saldanha-Northern Cape corridor (SIP 5), the road system will sustain the envisaged expansion of an integrated

The Moloto Road (R573) upgrade has been identified as a national

rail and port system. SIP 4, which seeks to unlock economic

priority and received a R9.6-billion boost in the stimulus package

opportunities in the North West, will also require accelerated

announced by President Ramaphosa. This is a vital project on a road

investments in transport and other economic infrastructure to support

that links the predominantly rural provinces of Mpumalanga and

the sustained growth of the mining, agriculture and tourism sectors.

Limpopo with the urban economy of Gauteng. The current construction will not only improve the mobility and safety of the 50 000 commuters

The launch of the Infrastructure Fund by President Cyril

who travel on this road daily, but also facilitate easier access to the

Ramaphosa indicated the importance of infrastructure for

attractions that are located further away from major routes.

furthering South Africa’s development goals. In response to these announcements on the new infrastructure stimulus package,

Construction also continues on several priority projects that will

the South African National Roads Agency Limited (SANRAL)

benefit communities in all nine provinces and attract investment into

confirmed that it has “shovel-ready projects” with a value of

the broader local economies. The new Hopefield Interchange and the

more than R2-billion on national and provincial roads in all nine

upgrading of the Tierfontein sections of the N7 will provide improved

provinces. Most of these projects have already started and some

mobility for communities in the Western Cape. Near Kimberley in the

will reach completion before the end of 2020.

Northern Cape, the upgrading of vital intersections on the N12

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Since the launch of the NDP, the primary road network that is managed by SANRAL has grown to more than 22 000km. If it was possible to travel in a straight line one could make a return trip from Johannesburg to Beijing on the SANRAL roads, enabling goods to flow freely though South Africa.

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EDITORIAL || THE THE ROAD 4TH IRTO GROWTH EDITORIAL

However, broader economic development requires more than just

gap between the academic and professional environments. In addition

the implementation and management of construction projects. The

to this, commitments must be made to unlock opportunities for those

standards of engineering and design in the construction industry

who were denied them in the past. Partnerships should be formed

must be raised to ensure the creation of a transportation network

between established companies and emerging enterprises owned by

that will sustain the economy of the future.

black South Africans, women and youth. These partnerships will give SMMEs easier access to equipment, materials and professional advice,

Bursaries, internships and investments in education are required

which will enable them to tender on larger road construction projects.

to produce the next generation of engineers, artisans and skilled professionals in the fields of science and mathematics.

The accelerated implementation of the NDP and the boost in funding outlined in the NPI emphasise the critical role of

An excellent example of this is the Technical Excellence Academy in

infrastructure in driving economic growth. Ongoing investment

East London. Established by SANRAL, this academy enables graduate

in world-class road infrastructure will, no doubt, contribute to a

engineers to gain experience on construction projects and bridges the

balanced growth trajectory.

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BANKING ON EQUALITY

By Laurence Hillman Creating true financial education and inclusion is key in alleviating South Africa’s poverty crisis.

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In South Africa, more than 55% of the country lives on the upper-bound poverty line (R1 227 per person per month), with

EDITORIAL | BANKING ON EQUALITY

many living below that. If we consider that many of these consumers are taking care of family members, the true impact of this issue is not easily measurable.

With such concerningly high statistics, there is no doubt that much needs to be done to drive down poverty. Finding solutions to ensure that South African citizens have sufficient funds to satisfy their basic human needs is a fundamental corporate imperative. But where do we start? Or perhaps the question is: How do we improve on the initiatives already being brought forward?

Poverty intensifies through a number of factors, but at the very core of this issue is a lack of financial literacy and inclusion.

Financial literacy is the building block to financial freedom.

This couldn’t be more important to those living on the breadline. Making sure one knows how to best utilise every last rand is crucial. While this may not drive citizens out of poverty immediately, it will help them understand how to manage their budgets, when to utilise credit and how

However, it’s not only about access to products, but also about

to empower themselves to break free from the debt cycle.

ensuring that when a consumer needs to claim, they can do so quickly and seamlessly. Consumers should not be left creating

Programmes that encourage financial literacy can go a long

large amounts of debt to pay for a funeral or live day to day. As

way in not only ensuring consumers know how to budget and

such, innovations in claims processing – such as the ability to

manage their money, but also in assisting to minimise debt – one

make a decision within three minutes on funeral claims – make

of the key contributors to poverty. It’s about changing a mindset

a fundamental difference in people’s lives and ensure they have

and giving consumers the opportunity to be truly financially fit.

immediate access to their money.

Helping citizens understand how their money can work for them and, most importantly, changing their perception of money and

Similarly, fintech is becoming one of the major contributing

wealth are key to improving financial literacy.

factors to financial inclusion by creating a new generation of savvy savers and investors, and creating financial access that

The World Bank indicates that financial inclusion is a critical

once was not afforded to the poor. If we consider that 85% of

element in the journey towards poverty reduction and economic

South Africans have a mobile phone, then using a fintech model

growth – both of which are central to South Africa’s financial

to create inclusion is a substantial move in the right direction.

objectives. In the past few years, we have seen a number of

Considering the number of people entering the formal financial

incredible innovations from the banking sector that look at

services sector who have no prior dealings with the legacy

banking the unbanked. These advancements have aimed to build

financial services’ processes and systems, embracing digital

and strengthen the lower class by providing access to savings

services is likely a more viable option.

pockets, bank accounts and responsible lending platforms.

Mobile-based money services, such as M-Pesa in Kenya, use a Similarly, in the insurance sector, products such as prepaid

simple text message to allow people to send and receive money.

funeral cover and being able to access long-term insurance

The M-Pesa system has resulted in almost half of Kenya’s gross

through USSD codes have been fundamental in protecting the

domestic profit (GDP) now flowing through the system and

financial future of the children and families of South African

increased access to financial services to 83% of the population.

consumers. A core focus here is on creating opportunities for access to products that are affordable and adaptable for the

Fintech is shaking up the way consumers pay and borrow money, while

lower income earner to enable them to have peace of mind that

also breaking down barriers to important investment products and

their family will be protected in the event of their death.

services. In the current decade, fintech ensured more than US$100-billion

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EDITORIAL | BANKING ON EQUALITY in investments. If we consider that there are approximately 1.7 billion

Statistics show that approximately 17% of total employment

adults globally who don’t have access to financial services, it’s easy to

(one in six South Africans who work) are employed in the

see why fintech innovations that provide solutions for these consumers

informal sector. It is, therefore, an integral contributor to the

can have a consequential social and economic impact.

economy. More importantly, though, the informal sector has real potential to contribute to employment and reduce poverty.

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Lastly, we need to consider the impact of job creation and

So promoting such entrepreneurial spirit provides an opportunity

empowering the informal sector, often times those who feel

to inject the necessary money into less privileged households

the pinch of financial exclusion and poverty.

and encourage economic equality.

Government is playing a sound role in driving the job creation

The financial services sector is integral to the alleviation

agenda and empowering those entrepreneurs that have previously

of poverty. Given the resources available to the sector and

been overlooked. Today, government is enthusiastic about

the potential for real innovation to address some of South

regulatory approaches that embrace innovation, and Treasury

Africa’s most pressing issues, it essential that the sector

is looking to boost access to development financing for small,

supports government in boosting job creation, financial

medium and micro enterprises (SMMEs) by reducing red tape.

inclusion and education.

Similarly, the financial services sector is looking at ways to reduce

The country’s National Development Plan (NDP) aims to fast

barriers to entry and find solutions that encourage entrepreneurship

track broad-based growth to transform the economy, create

and make access to business ownership easier. For example, prepaid

jobs and reduce poverty and inequality by 2030. As a sector

funeral cover is a product that has entrepreneurship at its core. It

that has the power to positively impact GDP growth, financial

enables township business owners to sell prepaid funeral insurance

services players need to take a collaborative approach to

as an additional income stream – without the regulatory red tape that

meeting these key objectives – or risk leaving South Africa’s

comes with being a financial institution.

poor to continue to suffer the burden of financial insecurity.

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GROW NG SOUTH AFRICA THROUGH GREEN ECONOMY INVESTMENT

By GreenCape, South Africa “South Africa, our country, is our land. Our land is our home. We sweep and keep clean our yard. We travel through it. We enjoy its varied climate, landscape, and vegetation. It is as diverse as we are. We live and work in it, on it with care, preserving it for future generations. We discover it all the time. As it gives life to us, we honour the life in it.” – Extract from the Executive Summary of the NDP The National Development Plan (NDP) is a vision for South

GREEN ECONOMY PRIORITIES AND INVESTMENT

Africa’s prosperous future. It defines a desired trajectory for the

OPPORTUNITIES

country and recognises the role that different sectors of society

According to Annelize van der Merwe, Director: Green Economy

need to play in fulfilling that vision.

Industries, Investment South Africa, Department of Trade, Industry and Competition (dtic), the green economy is one of the sectors

At a country level, the NDP identifies the sustainable management

earmarked by the dtic, through consecutive iterations of the

of the environment as a critical capability, alongside building

Industrial Policy Action Plan (IPAP), as having high growth and

legal and other institutions, infrastructure (telecommunications,

investment potential.

water, energy and transport), the education and training system,

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systems of innovation and patterns of spatial development. One

Chapter 5 of the National Development Plan (NDP) is clear on the

of the external drivers of change highlighted in the process of the

necessary tenets of a transition to a low-carbon and resource-

development of the NDP, is climate change.

efficient economy for South Africa.

In this regard, the green economy presents investment prospects

The coordinated implementation of policies and frameworks such

that will lead to much-needed future employment opportunity in

as IPAP and the Green Economy Accord has ensured alignment

South Africa, while working towards the sustainability priorities set

across a number of industries and government departments to

out by the NDP.

contribute to green growth and investment.

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There are clear correlations between selected NDP objectives and

and Development (UNCTAD) on Investment for the Sustainable

investment opportunities identified by GreenCape in various green

Development Goals, InvestSA, in partnership with a number of

economy industries:

EDITORIAL | THE GREEN ECONOMY

Through cooperation with the United Nations Conference on Trade

provincial and local government entities, has promoted investment in a number of green economy projects. At the 2018 World

1. UTILITY-SCALE RENEWABLE ENERGY & ENERGY SERVICES

Investment Forum in Geneva, Switzerland, InvestSA was recognised

NDP objective

for its contribution in promoting sustainable investment.

Move to less carbon-intensive electricity production through

During the recent South African Investment Conference hosted by the President, it became clear that to make South Africa attractive as an investment destination we need, among other things, to guarantee access to reliable clean energy; a number of potential investors indicated a requirement to report 100% clean energy to their shareholders. Investors further require improved sustainability reporting to justify their participation in the South African economy.

To this end, South Africa is committed to investing in the greening of its economy, with a strategic focus on: • Renewable/alternative energy • Improved energy efficiencies

procuring at least 20 000 MW of renewable energy, increased hydro-imports from the region and increased demand-side measures, including solar water heating.

Investment opportunities The latest draft of the Integrated Resource Plan (IRP) indicates intended allocations of 8 100 MW for wind, 5 670 MW solar photovoltaic (PV) and 2 400 MW of small-scale embedded generation (SSEG) to be procured by 2030, which has the potential of attracting in excess of R200-billion in the next 12 years.

With a growing energy market and an increase in the number of independent power producers IPPs, a secondary market for refinancing and equity buyouts has emerged.

• Emissions/pollution mitigation and • Natural resource management.

South Africa still has a single-utility electricity model where a single entity (Eskom) owns and operates generation, transmission and a

The anticipated investment in renewable energy alone is estimated at US$48.3-billion up to 2030. Renewable energy projects added about 3 774 MW to the grid between 2011 and December 2017, while a total of 6 426 MW has already been procured through seven bid windows (according to the Case for Investing in South Africa).

GreenCape is a non-profit organisation that drives the widespread adoption of economically viable green economy solutions from South Africa. The team works with businesses, investors, academia and government to unlock the investment and employment potential of green technologies and services, and to support a transition to a resilient green economy. GreenCape’s vision is for South Africa to be the green economic hub of Africa. Through close working relationships with businesses, investors, government, investment promotion agencies and academia, GreenCape’s sector desks are in a unique position to collect, create, and disseminate free market intelligence on the green economy. The authors of the reports work at the frontier of the green economy, climate change adaptation and sustainable development.

The 2019 GreenCape Market Intelligence Reports MIRs, developed with the support of the Western Cape Provincial Government’s Department of Economic Development and Tourism, are written for investors and businesses, both local and international, who are currently active or interested in green economy sectors in the Western Cape and South Africa. These reports focus on the type of investments that will lead to economic growth and the creation of new jobs in the green economy sector. The reports are available from the GreenCape website.

share of distribution infrastructure. This model is designed to aid developing energy markets that require significant long-term (10–15 years) infrastructure investments and demand balancing. “The applicability of this single-utility model is changing rapidly in a global context with the introduction of new technologies, which are cheaper, modular, capable of being decentralised and more environmentally friendly,” says Jack Radmore from the Energy Sector Desk at GreenCape. “SA is in the early stage of this transition on the back of a large-scale renewable energy (RE) rollout,” he adds.

“The timing of procurement will have a major impact on manufacturing and pricing in the market. A consistent annual allocation will attract international developers and manufacturers and increase competitiveness, which in turn will decrease the tariffs bid,” says Ian Scrimgeour, Energy Analyst at GreenCape.

“Indications are that prices as low as R0.46/kWh and R0.56/kWh for solar and wind can be expected by 2030,” he adds.

The term ‘energy services’ (ES) is used to describe two key energy market segments in the South African energy space: namely (i) smallscale embedded generation (which includes rooftop PV systems and energy storage) and (ii) energy efficiency. These market segments are increasingly bolstered by offerings in the energy finance sector, which in and of themselves also present opportunities to financial investors.

“Many individuals, businesses, industry and government are increasingly motivated to adopt alternative energy services options due to a number of market growth factors,” says Reshmi

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Muringathuparambil, Energy Analyst at GreenCape. “The 2019

3. WATER

Energy Services MIR highlights notable investment opportunities

NDP objective

that are subsequently emerging. The energy storage market, for

Ensure that all people have access to clean, potable water and

example, is expected to become the keystone of the future energy

that there is enough water for agriculture and industry, recognising

service market,” she adds.

the trade-offs in the use of water. Reduce water demand in urban areas to 15% below the business-as-usual scenario by 2030.

The South African energy services market holds lucrative opportunities for equipment suppliers, project developers,

Investment opportunities

technical advisors and financial investors. By 2035, the South

Market trends observed during the Western Cape drought

African energy storage (battery) market is expected to reach

highlighted emerging longer-term investment opportunities linked

R15–R30 billion, the energy efficiency market R21-billion, and the

to water scarcity in South Africa.

rooftop PV market R75-billion.

“This year’s Market Intelligence Report draws on market demand Ultimately, the growth of South Africa’s energy services markets

trends observed during the drought, and looks at the emerging

will also contribute meaningfully to potential job creation.

longer-term investment opportunities linked to water scarcity,” says Jane Reddick, Senior Water Sector Analyst at GreenCape.

2. ELECTRIC VEHICLES NDP objective

Raldo Kruger, Senior Water Sector Analyst at GreenCape,

By 2030, public transport will be user-friendly, less environmentally

explains that the 2019 report focuses on insights relating to the

damaging, cheaper and integrated or seamless.

four key urban water markets in South Africa: commercial and industrial businesses, residential, new property developments and

Investment opportunities

municipalities. The report elaborates on market size indicators, main

Global sales of electric vehicles (EVs) are projected to reach five

opportunities and key market segments for investors to consider.

million in 2019, up from one million in 2015. This global shift is primarily driven by emission reduction commitments, growing

4. WASTE

urban air pollution concerns and continued crude oil price

NDP objective

volatility. While South Africa has not yet joined the ranks of those

Absolute reductions in the total volume of waste disposed to

countries experiencing a steep rise in EV uptake, the country,

landfill each year.

much like others, has the same obligations where emissions and energy security are concerned.

Investment opportunities “The South African waste management landscape is set to experience

“For South Africa, a thriving EV market, supported by the

a raft of legislative and regulatory changes that will advance the country

robust local manufacturing capacity, holds the promise of

toward a more resource-efficient economy,” says Sam Smout from

economic growth and job creation. It will also counteract the

the Waste Sector Desk at GreenCape. “This will create opportunities

inevitable decline in demand for internal combustion engine (ICE)

for business and investors in the waste sector who focus on plastics,

vehicles globally,” says Khanyiselo Kumalo, Energy Analyst at

organics, e-waste, and construction and demolition waste,” he adds.

GreenCape. “The 2019 Electric Vehicles MIR highlights notable investment opportunities that are emerging in passenger vehicle

In 2016 the waste economy contributed approcimately R24.3-billion

manufacturing, electric bus manufacturing and lithium-ion battery

to the South African GDP and provided 36 000 formal jobs and

(LIB) production,” she adds.

around 80 000 informal jobs/livelihoods. A further R11.5-billion per year could be unlocked by 2023 by diverting up to 20 million tonnes

Public transport presents a solid business case for electrification.

of waste. The anticipated spin-offs could include 45 000 additional

This is especially true for the bus market as it already produces buses

formal jobs and 82 000 indirect jobs, as well as create 4 300 SMMEs.

largely for the domestic market. Buses are designated in South Africa

Opportunities within the organic, e-waste, plastics and builders’

and are subject to between 70% and 80% local content requirements

rubble sectors have the potential to unlock R1.2-billion in value.

by the dtic for public procurement. The assembly of buses further

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enjoys the benefit of duty-free importation of all driveline components.

5. SUSTAINABLE AGRICULTURE

South Africa assembled 1 131 units in 2017, with 54 (4.7%) of those

NDP objective

destined for the export market. While this is a fairly flat market, there is

Channel public investment into research, new agricultural technologies

scope to revitalise this space. Incorporating e-bus manufacturing is a

for commercial farming, as well as for the development of adaptation

more economically viable way of achieving this revitalisation.

strategies and support services for small-scale and rural farmers.

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Investors have access to extensive investment support

“The Western Cape drought, characterised by significant

through the One Stop Shop for investor support and the rest

decreases in rainfall over three years, again emphasised that water is a key constraint to agricultural development,” says Inge Kuschke, Sustainable Agriculture Sector Analyst at GreenCape.

“International market pressure for low-carbon, environmentally friendly products is another increasingly important driver for the

EDITORIAL | THE GREEN ECONOMY

Investment opportunities

of the investor support ecosystem, which includes InvestSA, GreenCape, the City of Cape Town and Wesgro. Together the ecosystem provides information and advocacy; market intelligence; facilitated access to permits and licenses, planning and development approval; and skills training.

uptake of practices and technologies that also reduce the use of chemical inputs and carbon dioxide emissions,” she adds.

Approximately R700-million has already been invested in the Atlantis SEZ, including manufacturers of wind turbine towers,

Given these drivers, there are emerging investment opportunities

geotextiles, double-glazed windows, wind tower internals and

in remote-sensing technologies for precision agriculture

acetylene gas. Because of these investments, more than 320 new

applications (driven specifically to improve water efficiency

jobs have been created in the zone to date.

and climate adaption); undercover farming (UF), which includes low-tech infrastructure such as shade netting and higher-tech

It is expected that the zone will attract a further R3.7-billion

controlled environment agriculture systems; and well-established

of investment by manufacturers of wind blades, smart meters,

investment opportunities in renewable energy (RE) and

batteries, wind turbines and solar PV, and by other players in the

conservation agriculture.

waste, agri-processing, gas and chemicals value chains. The goal is to create nearly 3 000 direct jobs in the zone by 2030.

GROWING GREENTECH THROUGH PARTNERSHIP ‘Greentech’ refers to green technologies that reduce or reverse the

In addition to jobs and investments, the people of Atlantis have

impact of people on the planet. These include renewable energy

also benefited in a number of other ways.

technologies. Wind turbines, solar panels, insulation, biofuels, electric vehicles, materials recycling and green building materials

Skills development has been prioritised to ensure local skills meet

are all examples of green technologies.

the needs of industry located in Atlantis. To this end, the youth has benefited from training, mentoring, exposure to greentech,

The South African greentech manufacturing market is worth

and participation in the annual Renewable Energy Challenge

at least R30-billion, with a growing greentech market in the

and Career Expo, all of which will potentially help them tap into

neighbouring countries. South Africa has opportunities in energy,

greentech job opportunities emerging from the SEZ.

waste, agriculture, transport and other sectors and is a great entry point for the SADC market.

Skills development and training for adults has taken the form of a training session on solar PV for people from Atlantis and

As highlighted in the 2018 Presidential Investment Conference’s

surrounds, and the recruitment of three female interns from

“Case for Investing in South Africa”, South Africa provides active

Atlantis to work in the SEZ project office. The women successfully

support for investors by providing a wide range of incentives,

transitioned into permanent appointments with the SEZ project

including a comprehensive suite of tax incentives for investment in

office in 2016. Other benefits for Atlantis include the upgrade of

special economic zones (SEZs).

the power supply, fibre connectivity and MyCiTi transport links.

SEZs are key tools used by the South African government for driving

The Atlantis SEZ is a physical manifestation of the potential of

industrial and economic development. Within SEZs, cluster industries from a particular sector locate in geographically designated areas to get the benefits of scale and co-location. SEZs are governed by the SEZ Act (No.16 of 2014) and are supported by a range of incentives aimed at attracting foreign and local investment. The Atlantis SEZ is a zone dedicated to the manufacturing and provision of services in the green technology space. The zone welcomes manufacturers, service providers, suppliers and other players in the value chains of different green technologies. Situated on South Africa’s West Coast, the Atlantis SEZ capitalises on the Western Cape province’s already booming renewable energy and green technology sector, tapping into the US$3-trillion global clean-technology market.

partnerships to grow the green economy across stakeholder groups, including government (national, provincial and municipal), business and the community.

Strategic investment into key green economy opportunities will assist to propel South Africa towards the vision set out by the NDP. It’s our future. Let’s make it work.

“We all see to it and assist so that all life’s enablers are available in a humane way.”

– NDP Vision Statement • • V IS IO N 2 0 3 0 , O U R F U T U RE OUR P LA N, V OL 4 |

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SANDVIK MINING AND ROCK TECHNOLOGY DEVELOPING ADVANCED ENGINEERING SOLUTIONS FOR MORE THAN 150 YEARS For more than 150 years, Sandvik has remained committed to developing the most advanced engineering solutions. From the first steel products to today’s comprehensive equipment ranges, we’ve always strived to develop solutions that add value to your business.

We ’ r e c a r r y i n g o n t h i s t r a d i t i o n a t S a n d v i k M i n i n g a n d

q u a l i t y, s a f e t y, f l e x i b i l i t y a n d – n o t l e a s t – t o t a l e c o n o m y.

R o c k Te c h n o l o g y. O u r c o n s t a n t l y e v o l v i n g o f f e r i n g o f

Innovation and research and development drive our state-

equipment and tools, services and technical solutions

of-the-art solutions, which are all backed by application

for mining and rock excavation covers rock drilling, rock

expertise: a worldwide network offering on-site service,

cutting, crushing and screening, loading and hauling,

training and around-the-clock support.

tunneling, quarrying and breaking, and demolition. No matter the terrain, material or ground hardness, we’ll

O u r s t r e n g t h i s i n o u r c u s t o m e r r e l a t i o n s h i p s . We s p e n d

ensure you’re matched with the right solutions to

a lot of time with you in mines and quarries around the

m a x i m i s e y o u r p r o d u c t i v i t y a n d p r o f i t a b i l i t y.

w o r l d , s o w e u n d e r s t a n d y o u r n e v e r- e n d i n g p u s h t o increase productivity and cut costs. Our mining equipment

98

A s a w o r l d - l e a d i n g m i n i n g e q u i p m e n t m a n u f a c t u re r, w e a re

solutions are improved continuously through constant

c o m m i t t e d t o i m p ro v i n g y o u r p ro d u c t i v i t y a n d p ro f i t a b i l i t y.

c u s t o m e r f e e d b a c k . We c o n d u c t b u s i n e s s i n c l o s e

S a n d v i k M i n i n g a n d R o c k Te c h n o l o g y ’s p ro d u c t s a n d s e r v i c e s

cooperation with you, with the promise of being your

provide you maximum value in terms of performance,

p r o a c t i v e p r o d u c t i v i t y p a r t n e r.

| VISION 20 3 0 , O UR F UTUR E O UR P L AN , VO L 4

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ADVERTORIAL | SANDVIK MINING AND ROCK TECHNOLOGY

Mining and rock excavation products and equipment

•

Mechanical cutting equipment

•

Rock tools

W h e t h e r y o u n e e d t o e x c a v a t e , t r a n s p o r t o r p ro c e s s o re ,

•

Rock drills

ro c k o r o v e r b u rd e n m o re e ff i c i e n t l y, o u r c o m p re h e n s i v e

•

Breakers, demolition tools and booms

r a n g e o f c u t t i n g - e d g e s u r f a c e a n d u n d e rg ro u n d m i n i n g

•

Automation

e q u i p m e n t i s d e s i g n e d t o i n c re a s e y o u r p ro d u c t i v i t y a n d boost your bottom line:

Parts and services you can count on

•

Stationary crushers and screens

P e o p l e t e l l y o u s t o r i e s a b o u t q u a l i t y, c o m m i t m e n t a n d

•

Mobile crushers and screens

i n n o v a t i o n . B u t f o r t h e r e a l s t o r y, t a k e a c l o s e l o o k a t t h e

•

Underground drill rigs and bolters

numbers. In an industry where an hour of downtime can

•

Surface drill rigs

cost thousands, Sandvik 365 parts and services can save

•

Exploration drill rigs and tools

you millions, with around-the-clock service, qualified

•

Underground loaders and trucks

engineers and genuine parts on demand.

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increasing workplace safety. Sandvik offers different inspection types which meet customer requirements – from comprehensive inspection to module inspection.

•

Ser vice solutions When you can predict productivity, you can predict your profitability. Sandvik 365 service solutions are about optimising performance, 365 days a year. It removes risk from your operations with an extended lifetime.

•

Rebuild solutions

Sandvik Rebuild Solutions supports your most vital equipment throughout their life c ycles.

•

C o m p o n e n t s o l u t i o n s S a n d v i k s i m p l i f i e s t h e s e r v i c e p r o c e s s a n d ensures less downtime to get you back up to peak p e r f o r m a n c e a s q u i c k l y a s p o s s i b l e . We h a v e a l l your key components under our various commercial offerings to suit your needs.

•

Genuine consumable kits Sandvik machines are a vital part of your mining operation – a safe, productive and reliable workhorse in your toughest applications.

•

Upgrades and engineered solutions At Sandvik Mining and Rock Technology we continuously invest in research and development machines with new added-value features.

•

Safety solutions With a continuing demand from mining companies to emphasise safety, Sandvik is committed to developing safer products and intelligent aftermarket solutions that increase

Product groups •

•

both the safety and productivity of your operations.

My Sandvik digital ser vice solutions

•

Ground engaging tools and buckets

Sandvik’s digital service solutions cover a wide array

Wear and tear is simply a part of operating in harsh,

of intelligent services that can give a true boost to your

underground mining conditions. Sandvik’s extensive

productivity. Providing you with vital, accurate data and

range of integrated wear packages are renowned for their

necessary interactive tools, digital service solutions –

durability, backed by an OEM with full backline support.

such as My Sandvik Insight and My Sandvik Productivity

Take the risk out of your operational equation by ensuring

– assist you in your operations in an efficient,

you have your biggest asset covered. Lower your overall

performance-enhancing way.

costs, and reduce costs per ton mined.

Inspections

•

Wear solutions and screening media

Machine failures and unexpected breakdowns are costly

Sandvik offers a wide range of wear solutions,

and – more importantly – can pose serious safety risks.

crushing chambers and screening media that deliver

Therefore, addressing potential failure scenarios in a

lower operating costs, improved product quality and

proact ive manner is crucial for minimising downtime and

m a x i m u m p r o d u c t i v i t y.

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•

Financial ser vices provider who truly understands your operation, your equipm ent and your needs? Financing can open up a world of new possibilities for expandin g your business and maximising profitability. And choosing the right equipm ent finance partner can make all the difference.

Commitment through an entire life cycle With an active presence in more than 150 countries, we understand both the global world of mining and rock excavation and the local implications of your operations, and we take pride in being able to respond to your needs quickly and effectively. We have a tradition of localisation and a

ADVERTORIAL | SANDVIK MINING AND ROCK TECHNOLOGY

Wouldn’t it be a relief to have a financi al solutions

conviction that there can be no substitute for direct service and face-to-face contact.

Our extensive global network of 3 500 skilled service personnel located strategically around the world provides proactive product and aftermarket support that helps keep your operation running productively and efficiently. Our Sandvik 365 service programmes optimise performance year-round.

In our world, uptime and availability make all the difference.

Genuine Sandvik mining spare parts enable safer, easier maintenance and ensure your equipment runs smoothly throughout its lifetime, helping you improve reliability and productivity. Our commitment to genuine Sandvik parts extends beyond the basics of after-sales support. It covers skills training for in-house teams, inve stment in production technology and more, creating an infrastructure that adds genuine value to your business.

From maintenance agreements to equipment rebuilds, Sandvik’s mining services and mining spare parts can help improve your productivity and reduce your operating costs.

CONTACT US Physical address: 64 Jet Park Road, Jet Park Boksburg, Johannesburg 1462 | Telephone: 0800 555 451 Website: www.rocktechnology.sandvik

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TSHWANE SOUTH TVET COLLEGE

Tshwane South TVET College (TSC) is a registered public Technical

As a public institution, TSC and its counterparts’ fundamental

and Vocational Education and Training (TVET) College in terms

mandate is to equip South Africa’s young people with vocational and

of the Continuing Education and Training Act 16 of 2006. TSC is

occupationally directed skills at intermediate level of the National

a merger of three former technical colleges namely Atteridgeville

Qualifications Framework (NQF), thus contributing to the eradication

Technical College, Centurion Technical College and Pretoria West

of inequality, poverty and unemployment of the peoples of South

College of Engineering. In 2006, TSC gained its fourth campus (Odi

Africa, and the economic growth initiatives of the country. Tshwane

Campus) from the Orbit TVET College as a result of the rezoning of

South TVET College has been selected as one of the Centres of

the provincial borders.

Specialisation for the fields of Mechanical Fitter and Fitter & Turning.

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VOCATIONAL

ADVERTORIAL | TSHWANE SOUTH TVET COLLEGE

REPORT 191: NATURAL SCIENCE (ENGINEERING STUDIES)

NATIONAL CERTIFICATE

L2–L4: •

Tourism

•

Hospitality

•

Information Technology and

N1–N6: •

Electrical, Mechanical and Civil Engineering

Computer Science •

Civil Engineering and Building Construction

•

Electrical Infrastructure Construction

•

Engineering and Related Design

•

Office Administration

•

Finance Economics and Accounting

SKILLS PROGRAMMES

PRE-LEARNING PROGRAMME •

PLP – Pre-Learning Programme

REPORT 191: GENERAL STUDIES

•

Clothing Production

•

Artisan Training

•

Gandhi – Mandela Centres of Specialisation for Artisan Skills

•

Centres of Specialisation for Fitting & Turning

N4–N6: •

Intro Business Studies N4

•

Intro Catering Services N4

•

Management Assistant

•

Financial Management

•

Hospitality Studies

LEARNERSHIPS •

Early Childhood Development

•

Community House Building

•

Building and Civil Construction

Website: www.tsc.edu.za • General Enquiries: 012 401 5000 Atteridgeville Campus: 012 373 1200 • Centurion Campus: 012 660 8500/1 • Pretoria West Campus: 012 380 5000 • Odi Campus: 012 725 1800 Follow us on social media:

@tsc_tvet

@OfficialTshwaneSouthCollege

@TSC_TVET

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IOT DRIVES INNOVATION KNOWING WHEN TO ACT Nature vs. Nurture. I always find this an interesting argument. If

In the world of business, technology is also fast improving

you think about child birth, for instance, there is a growing trend to

our confidence when seeking to meet customer needs.

move from caesarean (C-section) back to natural delivery. We see

According to Frost & Sullivan, improving customer experience

the rise of clinics like Genesis by Life Healthcare group because

is one of the main reasons that businesses embark on a

of our need to go back to nature. This is a wonderful thing, but it’s

digitisation journey. The business owner is turning to technology

not back to the way it was. It’s back to nature, safely. In the 17th

to go back to being more intimate with customers without

century, 1200 women per 100 000 died during childbirth.

increasing the risk of going out of business. Going back in business means, taking the business back to the land of

But as the branch of medicine developed, it started being assisted

personal touch, high touch, customer intimacy. Because of the

by technology. We started having pre-natal screenings to look for

numbers of customers which a business that operates globally

signs of distress. All the way up to child birth itself, we employ

can generate over time, customers have just become wallets -

strategies like epidurals for the pain, emergency C-sections

there to hand over their hard-earned money to businesses in a

for breach babies and the list goes on. All the while we all but

grudge purchase fashion.

annihilated child birth mortality using technology during childbirth.

This is not how the customer wants to be treated, and it With the rise of going back to natue, we can now, more than at

is not how the business wants to be seen, but the growing

any other time in history, do this more confidently, because of the

volumes make this the de facto relationship. Businesses must

safety that we’ve managed to improve pre-natally. I have a friend,

rely on finding a very intuitive leader who, through experience

whose second baby will be at Genesis because she wants to

can help them satisfy 20% of their customers (the high paying

experience childbirth the natural way.

ones), 80% of the time. This 80/20 rule in its many variants helps businesses to focus on the cash cows. We hear phrases

This is what technology that has come of age allows us to do. It

like “you can’t please all of the people of the time.” Traditionally,

allows us to be sensitive to risk at such a high level that we almost

this was fine, because every year, a business tries to improve

eliminate it. Our doctors and caregivers are well trained to react to

its offering to keep the 20% satisfied, and maybe satisfy a

any situation if they are aware of it. Truly, through technology, and the

few more.

growing confidence of mothers in modern cities, technology is driving natural child birth. Technology is allowing the maternity branch of

But is there a way that a business can improve and satisfy more

medicine to innovate to such a point that we can go back, without

customers? Is there a way that a business could know when its

compromising on safety. This is what technology can do

customer’s experience of its products is at risk of deteriorating?

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simple and hands-free. Prices as low as R2400 for a water-smart get notified whenever there’s a leak in their toilet causing a high water bill before that cost escalates and eats into their profits and impacts on the customers’ experience of their establishment.

At SqwidNET, not only do we take advantage of this technology in a way that brings you the lowest-cost, business-grade quality (C)onnectivity, but we also have an ecosystem of partners that ensure that that “lowest cost”, “highest value” is abundant in the (A)pplication, (B)ackend and (D)evice as well.

ADVERTORIAL || SQWIDNET SQWID ADVERTORIAL

meter (once-off cost over 10 years) means that a business can

Our network is nationwide, with over 100 base stations across South Africa that cover over 90% of the population, we guarantee to hear your asset when it speaks no matter where it is in the country, rural or urban, stationary or in transit. Our ecosystem of partners makes over 200 applications and over 600 devices

There is! We call it IoT, which stands for the Internet of things.

Using this technology, a business is able to connect their assets, that are capable of increasing or decreasing their customers’ experience of their product, in such a way that they can either be alerted when a condition occurs that is undesirable, or they can look for patterns in the gathered data to make improvements that improve their customers’ experience.

available to suit almost every business case without having to incur huge customisation costs.

The last thing I want to mention about IoT is the myth that you must integrate this data into your current IT systems, and thereby increase the costs of digitising your business drastically. This is not required. Businesses that integrate their

And implementing IoT is no longer a reserve for big businesses.

It has become affordable and can help small and medium

IoT data into their existing data, do so for different reasons, and usually they are big enough to be able to afford it. As an SME, this is not necessary because IoT is a complete offering for

businesses (SMEs) improve their products and/or capability to produce products without breaking the bank. But what is IoT? Or, when is it IoT?

you. IoT is about visibility, not automation. You can save your business thousands, and dramatically increase your customers’ experience of your product just by being aware at the right time, that your asset has changed behaviour and requires your

IoT is as simple as ABCD. That is, in order to IoT your assets

superpowers: ACTION.

you, at least, need an (A)pplication + a (B)ackend Platform + (C)onnectivity + a (D)evice. You attach this device to your asset in such a way that it generates data every time your asset performs outside of your desired tolerance. For example, you can put

You know your business, and what to do when things go wrong.

Without a digitised asset, you act when things have ALREADY gone wrong. With a digitised asset, you act when things START

a sensor on a restricted door, and get notified when someone opens that door. Another example is, you could have the device attached to a herd of cattle (maybe on one cow), and then using an algorithm, understand grazing patterns whilst knowing their exact whereabouts, giving you peace of mind, and information as

going wrong. IoT lets you know when it’s time to act. IoT gives you information that helps you make the right decision at the right time to improve your customers’ experience. Innovation is about improving what exists. And that’s why we say, IoT drives innovation.

to how best direct their grazing in order to protect the land.

IoT assets can relay information that indicates when customer experience is at risk of deteriorating. This IoT technology is now at a price point that makes sense for SMEs and has the kind of battery life (years and even decades) that makes the maintenance

CONTACT US Address: 96 Koranna Avenue, Doringkloof’ Centurion, 0157 Tel: +27 (0)12 443 1000 Fax: +27 (0)12 443 1003 Email: info@sqwidnet.com Website: www.sqwidnet.com

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INVESTMENT OPPORTUNITIES V IS IO N 2 0 3 0 , O U R F U T URE OUR P LA N, V OL 4 | 1 0 7

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THE STATE OF

INVESTMENT

By Karl Westvig

It’s been said that when it comes to investing, what is comfortable is rarely profitable. That is the premise that we need to work from when investing in South Africa. We are undoubtedly in an economic downturn with consumer and investor confidence at an all-time low, but we need to be careful of misinterpreting the downturn as the destination.

As a nation, we can’t help but be exposed to the ongoing political narrative. Relentless, sensationalist news headlines feed our insatiable appetite for negativity and do little to engender confidence in our robust, open democracy. But the notion that nothing has changed is misguided.

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comfortable is rarely profitable. That is the premise that we need to work from when investing in South Africa. We are undoubtedly in an economic downturn with consumer and

“WE NEED TO CREATE A SUPPORTIVE, ENABLING ENVIRONMENT FOR THE ECONOMY TO GROW”

investor confidence at an all-time low, but we need to be careful of misinterpreting the downturn as the destination.

Surviving a political era plagued by corruption and blatant looting has resulted in a wait-and-see approach from the private sector,

As a nation, we can’t help but be exposed to the ongoing

characterised by very little new investment. At the same time,

political narrative. Relentless, sensationalist news headlines

the last estimate revealed that corporate South Africa has over

feed our insatiable appetite for negativity and do little to

R1-trillion rand in cash that they are not reinvesting into the

engender confidence in our robust, open democracy. But

economy. The resounding message is that we shouldn’t wait for

the notion that nothing has changed is misguided.

foreign investment to reverse the current trend but look to our local businesses to create a virtuous positive cycle in economic

In the 18 months since Honourable Cyril Ramaphosa took

growth. A cycle whereby we will, by default of the investment, see

over the Presidency, there have been significant changes

wage growth, higher consumer spending, businesses generating

within our government departments and state-owned

more turnover and higher employment across the board.

EDITORIAL | THE STATE OF INVESTMENT

It’s been said that when it comes to investing, what is

enterprises (SOEs), the National Prosecuting Authority (NPA), South African Revenue Service (SARS) and numerous

For many corporate leaders, deploying these funds comes

other institutions to root out corrupt and non-performing

down to policy certainty from government in key sectors of

officials. This clean-up goes much deeper than what we see

the economy around quotas and land expropriation. For example,

in the press. Political journalist JP Landman writes about

creating a framework around the agricultural, mining and fishing

reclaiming the state, and it’s time that we acknowledge that

industries to protect the business owner’s investment is a powerful

we are at a pivotal point in the country’s growth where we

way to reignite the economy, create new jobs and make strides

need to reclaim the economy.

towards reaching NDP goals.

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EDITORIAL | THE STATE OF INVESTMENT If necessity is the primary driver of invention, the same is true for our re-invention as a growing economy. We have a strong culture of

re-engineer the way we weigh up risk and reward when it comes to investment.

innovation, entrepreneurship and, as business leaders, we need to create a supportive, enabling environment for the economy to grow.

That was the premise behind the development of Recap, a Retail Capital solution that allows us to prequalify businesses with

Retail Capital’s innovative cash-flow funding model has

rich data for funding in as little as 30 seconds. The process is

disrupted the SME market by closing the gaps between

completely digital by way of a cloud-based app, and the money

entrepreneurs and their access to working capital. We are

is paid out the same day. Recap is just one example of how much

continuing to support SMEs with our latest asset finance offering

more agile and responsive we need to be to build our economy.

that allows small businesses to buy capital equipment over five years and give them the tools of the trade they need to grow. We

The reality is that, as a country, we don’t have to be perfect

are also planning to launch a debtor’s finance product, unsecured

before we invest. We simply need to be moving in the right

finance to SMEs and, later, we will introduce insurance for the

direction, which I believe we are. The NDP clearly outlines our

small business owner to protect them against risk too.

needs as a country in terms of the economy and job creation, among other crucial socio-economic issues.

To create an enabling environment, we also need to acknowledge that how businesses and sectors operate is

South Africa has a long track record of resilience and innovation.

fundamentally different to how they did 10 or 20 years ago.

The next ten years present an opportunity to take a risk on our

Therein lies an opportunity to cut through the red tape and

country, reclaim our economy, and reap the rewards.

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ADVERTORIAL | MOTHEO TVET COLLEGE

MOTHEO TVET COLLEGE THE GATEWAY TO EMPLOYABILITY

Motheo TVET College is one of the four public Technical and

We have a SEDA-funded Design and Line Manufacturing

Vocational Education and Training (TVET) colleges in Free State,

Incubator project in Bloemfontein to service the community

serving the Motheo and Xhariep districts. The college comprises

in terms of plumbing and electrical services and enhance the

three campuses, a central office and three satellites:

building and construction sector.

The college has fostered partnerships with a spectrum of

BLOEMFONTEIN CAMPUS focuses mainly on the training

local businesses, government institutions, municipalities

of Business Studies NC(V) and Report 191 programmes.

and partners who assist with skills development where

Training of disabled students (deaf, blind and physically

accreditation is not yet in place.

impaired) are catered for at this campus.

International partnerships include Coleg Gwent (UK), Northlink TVET College (Cape Town), West Lothian College (Scotland)

HILLSIDE VIEW CAMPUS serves Bloemanda

and Warwickshire College Group in Leamington Spa (UK).

Township, which is 8km from the central office.

Memoranda of agreement have been entered into between the University of the Free State, the Central University of THABA ’NCHU CAMPUS is in the semi-rural area

Technology and the Mangaung Chamber of Commerce

of Thaba’Nchu, which is approximately 70km from

and Industry.

Bloemfontein CBD. This campus has a programme Motheo TVET College operates closely with SETAs, particularly

mix of both engineering and business studies.

with the Banking Sector Education and Training Authority (BANKSETA). We recently entered into a signed agreement with In order to address the current local economic challenges such

the Media, Information and Communication Technologies Sector

as unemployment and poverty, the college has established three

Education and Training Authority (MICT SETA) in partnership with

satellites in strategically targeted areas.

Digilab to train 50 female students to qualify as satellite installers.

We have established an Artisan Academy with the intention of

The college also offers a broad number of learnerships,

fast-tracking the development and provision of artisans in line

accredited skills programmes and a community-directed

with the third National Skills Development Strategy’s (NSDS’s)

programmes and serves international students from the

target of producing 30 000 artisans by 2030.

neighbouring state of Lesotho.

CONTACT US: Address: c/o St Georges and Aliwal streets

Telephone: 051 406 9300

|

Fax: 051 406 9434

|

|

Postal Address: Private Bag X20509, Bloemfontein, 9300

Email: marketing@motheotvet.co.za

WE ARE ON SOCIAL MEDIA: Twitter / Instagram / Facebook: Motheo TVET College

|

|

Website: www.motheotvet.co.za

YouTube: Official Motheo TVET College

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A UNIQUE SKILLS DEVELOPMENT APPROACH The National Development Plan (NDP) envisages that by 2030, South Africans should have access to education and training of the highest quality to produce highly skilled individuals.

The NDP focuses on giving effect to existing laws and policies by improving their implementation as well as identifying the need for key stakeholders to work together to overcome obstacles to improving performance.

Vision 2030 is not only for government – it requires the involvement of all sectors of society as well as an active citizenry. It also requires increased communication and trust between sectors, with government playing a major, catalysing role in these initiatives.

South Africa is currently grappling with concerns about environmentally sustainable growth, inequality and decent work opportunities. Poverty, inequality and unemployment continue to negatively affect the lives of many. Too few have work, investment is too slow and education lags behind our requirements. Skills shortages raise economic costs and perpetuate inequalities. The poor quality of education perpetuates the cycle of limited job opportunities, thus impeding progress towards transforming the economy.

Despite certain measures, such as employee tax incentives and attempts to improve accessibility to quality training, the South African economy is still subject to a myriad of l skills shortages.

These challenges constrain investment, job creation and growth.

One of the government’s key plans is to ensure that there is synergy between the needs of the economy and the skills produced by the post-school articulation policy. This strategy aims to ensure greater cooperation between the different components of post-school education.

Vision 2030 is about transformation, achieving a cycle of confidence and trust, a growing economy and expanding opportunities.

developing training programmes that equip learners with the skills needed by businesses to realise our national vision for 2030. We focus not only on fulfilling our national transformation agenda, but

Since its inception SERR Synergy has embarked on a long-

also on incorporating developments critical to enhancing our global

term research agenda hallmarked by innovation and aimed at

competitiveness and meeting our development objectives.

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We follow a three-pronged approach in the development of training programmes and incorporate a development

ADVERTORIAL | SERR SYNERGY

component aligned with the Fourth Industrial Revolution (4th IR) into all of our training modules. The inclusion of this content aims to meet the future requirements of businesses, employees and workplaces. This approach will assist with filling the gap created by inferior basic education and improve South Africa’s ability to meet the international competitive requirements driven by technology.

Our aim is to shift focus away from current development models that fail to encourage the development of skills that enable employees to be internationally competitive.

Instead, we prepare them for a revolution in thinking, execution and skills application. A development initiative cannot be said to be effective if it operates within a vacuum. If we do not deliver useful skills configured for future requirements, our economy will continue to haemorrhage job-creation growth opportunities.

We are a proud partner of the Youth Employment Service (YES) launched in 2018 and have reconfigured some of the modules offered by the initiative to encapsulate our vision of being futuristically aligned. This has required interventions to ensure acumen and talent development.

We are well aware that if we cannot teach our youth problem-solving skills, we will not break the unsatisfactory cycles of the past.

ABOUT THE AUTHOR: GIDEON GERBER Gideon Gerber is a co-founding director

SERR Synergy averages 600 learnership programmes for black unemployed youths per year. Thanks to our unique induction and mentoring interventions, we have achieved phenomenal completion and absorption rates of these unemployed learners, who had generally been regarded as

of SERR Synergy, an admitted High Court attorney with a BJuris (Unisa), BProc (Unisa) and LLM (Pret.). His Master’s dissertation is titled An Appraisal of the Offence of “BEE fronting” in the context of Broad-Based Black Economic

untrainable and unemployable.

Empowerment (B-BBEE) in South Africa.

We are very proud of our unique retainer training product

in business structuring, training, skills

which will be launched shortly. This product provides businesses with the opportunity to continuously train their staff in accredited, priority, critical and scarce skills aligned with their core business activities. The courses are diverse enough to cover the full spectrum of development and international skills development standards and meet the 4th IR requirements. Apart from upskilling staff, these new generation skills development courses are recognised for skills development purposes in terms of the broad-based black economic empowerment (B-BBEE) scorecards and

He has more than 30 years’ experience development and business compliance in South Africa, the UK and Namibia. Gideon is a regular speaker at various B-BBEE seminars and also writes articles about B-BBEE matters for Business Day and Landbouweekblad. He also published an article titled “Criminal liability requirements of the new Broad-Based Black Economic Empowerment (B-BBEE) statutory offence” in the Journal of Contemporary RomanDutch Law (THRHR) in August 2018.

will come into consideration for discretionary SETA grants.

Head Office Address: Alenti Office Park, Block E, 457 Witherite St, The Willows, Pretoria, 0081 Telephone: 010 025 0682 | Email: communications@serr.co.za

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SOUTH AFRICA IS UNDERGOING SIGNIFICANT SHIFTS, DESPITE MAJOR RISKS

By Christopher Palm

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The top risk in South Africa is structurally high unemployment, followed by growing income disparity Management South Africa (IRMSA) Risk Report.

EDITORIAL | INVESTMENT RISKS

SOUTH AFRICA’S TOP 10 OVERALL RISKS

and inequality, according to the 2019 Institute of Risk

Stats SA says unemployment in the first quarter of 2019 increased by 0.5 of a percentage point, bringing the rate to 27.6%. The burden of unemployment is concentrated among the youth between the ages of 15 and 34 years.

Almost four in every 10 young people in the labour force do not have a job. The IRMSA report creates awareness of the risks facing the achievement of South Africa’s country

1.

Structurally high unemployment

and industry objectives.

More than 85 experts in their fields provided opinions and profound insights for each of the top 10 risks facing the country and industry.

In the IRMSA report VoxCroft Analytics specifically expressed concern that the growing disillusionment among the youth of South Africa could lead to a

2.

Growing income disparity and inequality

youth-driven protest movement, on a much larger scale than the student protest movement.

Such a movement, if led and supported by other population groups in the country, would hold a particular challenge for the general political stability of the country.

Nerine Kahn, CEO at Employment Relations Exchange, says unemployment is possibly the highest risk to the

3.

Failure of governance in the public sector

achievement of any or all of the National Development Plan’s (NDP’s) objectives.

The NDP goals are targeted towards developing certain aspects of the economy, but they require very significant skills and education levels.

IRMSA recognises the NDP as the legitimate summation of the joint goals of government and private sector, to

4.

Unmanageable fraud and corruption

work towards a shared and prosperous future for the country and its people.

Graeme Codrington, founding director of strategic insights firm, TomorrowToday, says South Africa seems to be just limping along with not much changing, and yet, under the surface, some significant shifts are taking place. The impact of fraud and corruption and state failure has shifted down the risk list. It is now in the fourth place. In

5.

Inadequate and/ or sub-standard education and skills development

2017 it was top of the list, and last year it was the second biggest risk facing the country.

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EDITORIAL | INVESTMENT RISKS

CONTINUED

This reflects the ending of the Zuma-era, a decade that will be blight on the nation for some time to come. Last year saw the beginnings of a collective resolve to reverse the damage.

Difficult decisions were made, such as raising the VAT rate by one percentage point, replacing the boards of key stateowned enterprises, dropping the nuclear deal and tackling

6.

the land issue.

Energy price shock South Africa has a robust economy and currency (relative, at least, to our peer group which includes countries such as Turkey, Argentina, Thailand, Indonesia, Mexico, Egypt and Nigeria). It has a stronger government than we have had for years. We are not where we want to be, but we are a long way ahead of where we once were.

7.

The first few years of the 2020s will see a more resolute

Labour unrest

approach to solving the land issue. We have no future as

and strike action

a country if a vast majority of its citizens remain locked in endemic poverty and landlessness. The ANC has pledged to deal with the land issue lawfully, carefully and without damaging the country’s economy.

Small groups, with their own particular agendas, are using fear-mongering tactics, along with “sophisticated psychological techniques” and the manipulation of social

8.

National political uncertainty/instability

media, to sow seeds of fear, discord and enmity between ordinary South Africans.

Trevor Channing, head of governance and risk at the Chemical Industries Education and Training Authority (CHIETA), is of the view that South Africa’s second biggest risk – growing income disparity and inequality – will threaten the majority of the six priorities in the NDP.

9.

Cyber-attacks (ransom.

Business and individuals must get involved in solving the

algorithm shutdown of

major issues that currently lock people out of their futures,

the internet of things)

especially education, employment and healthcare.

This will have a direct impact on our social cohesion, strengthening our democracy, citizenry and functioning as a capable and developmental state.

The country now needs ethical political leadership for

10.

sustainable foreign investments, an end to wasteful

Macro-economic

expenditure and for resources to be applied in ways that will

developments

stimulate economic growth.

The country needs all sectors of society to create a united front against the national issues that are holding us back.

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EMPOWERING THE PEOPLE OF SOUTH AFRICA ADVERTORIAL | UMSIZI SUSTAINABLE SOCIAL SOLUTIONS

Since 2006, Umsizi Sustainable Social Solutions (Umsizi) and Socio-Technical Interfacing (STI) have been designing and implementing effective socio-economic development programmes across South Africa – in both rural and urban contexts.

With a vision of uplifting the nation, the Umsizi-STI partnership has created unique development solutions which mobilise and empower the people of South Africa. These solutions lift people out of poverty, unemployment and inequality, moving them into meaningful, productive economic participation and growth. Our expert team has worked with partners and stakeholders from the private sector, government and communities to bring about robust and sustainable socio-economic transformation of people, households, communities and regions. South Africa is faced with massive and complex developmental challenges, including inequitable access to land and unproductive use of land. Fresh thinking is required to produce solutions at scale that can address these problems.

Our flagship development programme, the Broad-Based Livelihoods (BBL) Programme, can empower large numbers of people, thereby reducing poverty. It provides diverse empowerment based on horticulture, livestock, business tools and personal vision planning. Whatever limited resources participants have access to, the programme enables people to create their own livelihoods, income and jobs, with no limit to how far they can go.

The BBL Programme is based on eliminating dependency. Participants are empowered to become self-starters, take immediate action and create sustainable solutions. The effect is cumulative local economic development from the bottom up that expands GDP impact from households to communities and regions.

The horticultural emphasis starts with providing food security to disadvantaged households by teaching them how to produce healthy food for their families. This is followed by expansion to commercial production and business, enabling BBL Programme participants to become food suppliers and goods and services providers within their communities. In this way, the programme enables the recirculation of money in communities.

Above: A BBL participant who has applied the horticultural training and business tools of the programme. Participants are able to increase disposable income and create revenue

Over time, the recirculation results in greater local spending and supply, meaning that

streams using their own resources.

more money comes into and stays in the community. The BBL Programme is a catalyst for generating local economic development based on households doing it themselves,

Below: BBL participants completing a sale at their

empowering others, doing it again and growing more – “Phindaphinda!” The end result

agricultural food tunnel. The BBL encourages the

of the process is wildfire local economic development. The programme expands as more enterprises and jobs are created, with more residents seeing the results and getting

growth of micro-enterprises which can expand to achieve greater success.

involved in applying the principles of the BBL Programme for themselves.

We at Umsizi-STI are deeply grateful that our approach has been so effective in bringing people at the bottom of the socio-economic pyramid out of hunger, economic apathy and despondency, and into action, productivity, increased economic security and a whole new hope for the future.

CONTACT DETAILS CEO: John-Mark Kilian Website: www.unsizi.co.za I Physical address: 4 Coram Office Park, 86 Ferero Street, Randpark Ridge, 2156 I Tel: 011 791 2157

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Section 3030 ofand thethe and Company the Company Secretary and Secretary the serve Company in serve an Executive Secretary in an Executive serve Committee, in Committee, an Executive Committee, Services (Section 29), are to Municipalities. provide services uThukela uThukela andAct King and Cetshwayo uThukela King Cetshwayo and District King District Municipalities.

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The responsibility of the Chief Executive, who works with fi ve UMGENI WATER’S UMGENI SUPPLY WATER’S FOCUS SUPPLY UMGENI AREAS FOCUS WATER’S AREAS SUPPLY FOCUS AREAS strategy and policy direction, and ensuring that all business strategy and policy direction, and ensuring that all business In Financial WSAs.UMGENI The mandate ofFOCUS Umgeni Water designates to it theononitsitsability abilityto toundertake undertakeitsitsprimary primaryfunction. function.

TheThe Invalue Financia Yearfo2 UMGENI WATER’S SUPPLY AREAS WATER’S SUPPLY FOCUS AREAS (4IR) and translate them into activities activities are aligned are aligned activities to strategies to are strategies aligned and policies. and to strategies policies. and policies.

In organisation organisation has the has organisation following the following infrastructure has infrastructure the following to The support infrastructure toChief support its Executive, its to support itsExecutives activities aligned strategies policies. areare aligned to to strategies andand policies.

Executives to assist him. organisation following infrastructure support solid set of set solidofresult organisation hashas thethe following infrastructure to to support itsits theactivities functions of a Water Services Provider. Section 30business of the business activities activities (this business infrastructure (thisactivities infrastructure is(this either infrastructure is either ownedowned by is either by owned by set sustainable sustainable organ business activities (this infrastructure is either owned by and the Company Secretary serve in an Executive Committee, business activities (this infrastructure is either owned

by STRATEGIC STRATEGIC FOCUS: FOCUS: STRATEGIC ENABLED ENABLED AND FOCUS: INNOVATIVE ANDENABLED INNOVATIVE ANDKEY INNOVATIVE Water Services Act allows Umgeni Water to undertake other Umgeni Umgeni Water Water or managed Umgeni or managed on Water behalf onorbehalf of managed the of Department the onDepartment behalfofof theofDepartment ofSTRATEGIC su SOME ACHIEVEMENTS IN FINA FOCUS: ENABLED AND INNOVATIVE STRATEGIC FOCUS: ENABLED AND INNOVATIVE and people the p and the Umgeni Water or managed on behalf the Department Water managed on behalf of of the Department of of GROWTH GROWTH GROWTH whose key functions implementation of the Board’s Water Water andUmgeni Sanitation and Sanitation Water andorsome and andSanitation municipalities): some municipalities): andare some municipalities): activities, provided that these do not impact negatively an GROWTH GROWTH 2018/19 fi nancial po fi nancial position Water and Sanitation and some municipalities): In theInyear Water and Sanitation and some municipalities): the ahead year ahead In excellence the excellence year in ahead delivery in excellence delivery of products, of in products, delivery of products, strategy and policy direction, and ensuring that all business fin on its ability to undertake its primary function.

The • Approximately • Approximately •1 260Approximately 1kilometres 260 kilometres of pipelines 1 260 of pipelines kilometres of pipelines determined determined borro In the year ahead excellence in delivery of products, In the year ahead excellence in delivery of products, Inmanagement Year 2018/19 W services services and operation and operation services and management and andoperation management ofand schemes ofFinancial schemes will will of schemes will Umgeni de Approximately 1aligned 260 kilometres pipelines • • Approximately 1 260 kilometres of of pipelines activities are to strategies and policies. bulk potw organisation has the following infrastructure to support services operation and management of schemes will of bulkofpotable services andand operation and management ofpotable schemes • Approximately •its Approximately •53 kilometres Approximately 53 kilometres of tunnels 53 of tunnels kilometres of tunnelsbe maintained, be maintained, along be along maintained, with an withaffordable an along affordable with bulk an potable bulk affordable bulkwill potable set of solid results that refl ect its und of Approximately kilometres tunnels • • Approximately 5353 kilometres of of tunnels affordable affordable bulk pb bemaintained, maintained, alongwith with affordable bulk potable along anforan affordable bulk potable business activities (this infrastructure is either owned tariff. waterbe These tariff.

These are water keyare ingredients tariff. key ingredients These for are accelerated key ingredients accelerated socio-for socioaccelerated socio• Fifteen •by Fifteen (15) impoundments, (15) • impoundments, Fifteen (15) six ofimpoundments, which six of which are managed aresixmanaged of whichwater are managed affv sustainable organisation that adds water tariff.

These are key ingredients for accelerated socioSTRATEGIC FOCUS: ENABLED AND INNOVATIVE water tariff.

These are key ingredients for accelerated socio• Fifteen (15) impoundments, six of which are managed • on Fifteen (15) six ofSanitation which managed economic economic development development economic and vital development andcontributors vital contributors and to vital reduction tocontributors reduction to reduction Umgeni Water or managed on behalf of the Departmentonofbehalf behalf of the of Department the onimpoundments, Department behalfofofWater theofDepartment Water and and Sanitation ofare Water and Sanitation Importantly Importantly, the and the topeople of KwaZulu-Nata economic development and vital contributors to reduction economic vital contributors reduction on behalf of the Department of Water Sanitation ontwo behalf the Department ofUgu Water andand Sanitation of unemployment, of unemployment, poverty of development unemployment, poverty and inequality. andand inequality. poverty and inequality.

GROWTH and two and on behalf on behalf ofof and Ugu two of District Ugu on behalf District Municipality ofMunicipality District Municipality Water and Sanitation and some municipalities): Im res resiliency unemployment, poverty inequality. of of unemployment, poverty andand inequality. behalf Ugu District Municipality financial position allowsWater’s it toWater’s have unh andand twotwo onon behalf of of Ugu District Municipality Wao • Twelve • Twelve (12) wastewater (12) • the wastewater Twelve treatment (12) treatment wastewater works, works, andtreatment and in works, and the Depart the Department In year ahead excellence delivery of products, with lineUmgeni with Umgeni InWater’s line with Water’s continued Umgeni continued strategic Water’s strategic continued focus on focusstrategic on focus on • Approximately 1 260 kilometres of pipelines determined borrowing limits – factors Twelve (12) wastewater treatment works, • • Twelve (12) wastewater treatment works, andand In lineIn the and Sanita and Sanitation M services and operation and management of schemes will • Twenty • Twenty (20) water (20) • treatment water Twenty treatment (20) works water works treatment works In line with Umgeni Water’s continued strategic line with Umgeni Water’s strategic onon ed Enabled Enabled andInInnovative and Innovative Enabled Growth, and Growth, efforts Innovative efforts willcontinued be Growth, will intensifi beefforts intensifi ed will edfocus befocus intensifi of bulk potable water infrastructure investment investments toane • Approximately 53 kilometres of tunnels Twenty (20) water treatment works • • Twenty (20) water treatment works Enabled and Innovative Growth, efforts will be intensifi ed Enabled and Innovative Growth, efforts will be intensifi ed to expand to expand coverage coverage to in expand KwaZulu-Natal in KwaZulu-Natal coverage through in KwaZulu-Natal through provision provision of through of provision of be maintained, along with an affordable bulk potable developme development and inv affordable bulk potable GOVERNANCE GOVERNANCE ANDGOVERNANCE COMPLIANCE AND COMPLIANCE AND COMPLIANCE to expand in KwaZulu-Natal through services andtoproducts and products services to coverage municipalities and to municipalities in toa collaborative municipalities in athrough collaborative inprovision a collaborative expand coverage inproducts KwaZulu-Natal provision of of water tariff. water tariff. These are key ingredients services for accelerated socio• Fifteen (15) impoundments, six of which are managedGOVERNANCE de GOVERNANCE AND COMPLIANCE AND COMPLIANCE toBoard triumph toservices triumph over effort service over toproducts triumph service delivery delivery over challenges, service challenges, delivery and/ challenges, and/ municipalities aand/ collaborative services andand products to to municipalities in in a collaborative As at As 30th at June 30th 2019, June As at2019, Umgeni 30th Umgeni June Water 2019, Water had Umgeni a had full aBoard Water full Board hadeffort a fulleffort economic development and vital contributors to reduction on behalf of the Department of Water and Sanitation or when or when requested requested bywhen thebyrequested Provincial the Provincial Government by delivery the Government Provincial orchallenges, Government ortheand/ or of 2018/2 effort triumph overservice service delivery and/ comprising comprising 13 non-Executive 13 comprising non-Executive members 13 Umgeni non-Executive members and Water one and Executive members one Executive one Executive effort toortotriumph over challenges, 30th June2019, 2019, Umgeni Water aand fullBoard Board Importantly, results As As at at 30th June hadhad a full The follow The following ar of member, unemployment, poverty and inequality. and two on behalf of Ugu District Municipalitymember, the Department theoffiDepartment ofthe Water of Department Water and Sanitation andby ofthe Sanitation Water toProvincial and intervene to Sanitation intervene to intervene member, the Chief the Chief Executive.

Executive. the TheChief Board’s Themembers Executive.

Board’s term of term The offi Board’s of ce offi ce term of ceorwhen when requested the Government or or requested by Provincial Government or comprising non-Executive members and one Executive comprising 1313 non-Executive and one Executive Water’s resiliency and strategic theposit past in thein past year: Th as offi implementing as implementing agent. as implementing agent.

Retention, growth agent. growth and Retention, further and further growth and further beganbegan on 1ston May 1st began 2019 May on2019 following 1st following MayThe confi 2019 rmation confi following rmation oftermofconfi ofofoffi rmation oftheDepartment Department ofWater Water Sanitation intervene the of Retention, andand Sanitation to tointervene member, the Chief Executive.

TheBoard’s Board’s ce member, the Chief Executive. term ce • Twelve (12) wastewater treatment works, and appointments the Department of Water in penetration penetration current ofpenetration current markets; ofagent. and current development, and markets; development, and on and development, on on and Sanita appointments by on appointments by1st Executive the Executive by2019 the Authority.

Executive The Board Theconfi Authority.

Board has hasThe Board has implementing Retention, growth andfurther further Good asofasimplementing agent.

Retention, growth began 1stwith MayAuthority. following confi rmation of Intheon line Umgeni Water’s continued strategic focus onmarkets; began May 2019 following rmation of Good progr progress co and Sanitation Master Plan that p demand, demand, of new of markets new demand, markets will of also will new be also markets actively be actively will pursued also pursued be as actively as pursued as As•at 30th AsTwenty at June 30th (20) 2019, June As water at2019, Umgeni 30thUmgeni June Water, 2019, Water, the Umgeni group, the group, had Water, a had the a group, had a full responsibility full responsibility and full powers responsibility and powers of the of Accounting and the powers Accounting Authority. of the Authority.

Accounting Authority. penetration currentmarkets; markets;andanddevelopment, development,onon of theofLower of ofcurrent appointments theExecutive ExecutiveAuthority.

Authority.

Boardhas has bepenetration appointments bybythe TheThe Board treatment works the Low uM Enabled and Innovative Growth, efforts will intensifi ed Go part of part growth of growth strategies. part strategies. of growth strategies. total oftotal 1 250 of 1 250 employees total employees of at 1 250 its various at employees its various sites.

They sites. at its were They various in were sites. in They were in Prior to Prior the to appointment the appointment Prior of to the of current appointment the current Board, of Board, the the previous current the previous Board, the previous investments to ensure a future th demand, of new markets will also be actively pursued as As at 30th June 2019, Umgeni Water, the group, had a As at 30th June 2019, Umgeni Water, the group, had a responsibility powers of the Accounting Authority. demand, of new markets will also be actively pursued as When When fullfull responsibility andand powers ofin theKwaZulu-Natal Accounting Authority. com completed to Board expand coverage through provision of strategies. of permanent, permanent, fipermanent, xed-term, traineetrainee and fiat xed-term, and casual trainee employment. employment. and casual employment.

Board hadPrior been had been appointed had to serve been toof an serve appointed interim an interim period, to serve period, from anthe interim from period, from part growth total of 1 250 employees at its various sites.

They were part of of growth strategies. total offixed-term, 1 250 employees itscasual various sites.

They were in in Board Prior to appointment of the current Board, the previous development and universal sanitatio toappointed thethe appointment the current Board, previous an estimat an estimated 50 GOVERNANCE AND COMPLIANCE Wh In the In Financial the Financial Year In the 2018/19 Year Financial 2018/19 strategies Year strategies 2018/19 implemented implemented strategies implemented The majority The majority of them of The are them majority involved are involved of in them all of in are the all involved of functional the functional in all of the functional services and products to municipalities in a collaborative September September 2017 to 2017 April September to 2019.

April 2019.

2017 to April 2019. permanent, fixed-term, traineeandandcasual casualemployment. employment. Board permanent, fixed-term, trainee Board been appointed serve interim period, from hadhad been appointed to to serve anan interim period, from Amanzimto Amanzimtoti inane to identify to identify growth growth prospects to identify prospects had growth already had prospects already begun begun had yielding already yielding begun yielding areas areas of Umgeni of Umgeni Water: areas Water: of fi nance, Umgeni fi nance, asset Water: asset management, fi nance, management, asset management, effort toto April triumph over service delivery challenges, and/ FinancialYear Year2018/19 2018/19strategies strategiesimplemented implemented majority them involved in the As atTheThe 30th June 2019, Umgeni had afunctional full BoardSeptember In InthetheFinancial majority of of them areare involved inWater allall of of the functional September 2017 to April 2019.

2017 2019.

Am promising promising results:results: promising results: planning planning of projects, of projects, planning projectproject management, of projects, management, project watermanagement, water quality,quality,The waterroles quality, The roles of theofChairperson The the roles Chairperson ofand thethe and Chairperson Chief the Chief Executive andExecutive the Chief Executive to identify growth prospects had already begun yielding A memorandum areas of Umgeni Water: fi nance, asset management, to identify growth prospects had already begun yielding areas of Umgeni Water: fi nance, asset management, A memora or when requested by the Provincial Government or comprising 13management, non-Executive members andenvironmental one Executive water water resource resource water management, resource environmental management, environmental science science science are separate, are separate, as recommended are as separate, recommended in as King recommended in IV King Report, IV Report, in to King to IV Report, to The following are some organisati results: planning projects, project management, water quality, TheTheroles • On • 17th Onpromising October 17th •October 2018 On uThukela 2018 17th October uThukela District 2018 District Municipality uThukela Municipality District Municipality the KwaQi the KwaQiko Tra promising results: planning projects, project management, water quality, roles Chairperson andthetheChief ChiefExecutive Executive of of thetheChairperson and theensure Department Water to member, theof of Chief Executive.

The Board’s term offiensure ce and management and management and and water management and water treatment treatment and andwater conveyance. andtreatment conveyance. andof conveyance.

A ensure independence independence and independence clear and separation clear of separation and of clear roles ofand separation and roles Sanitation and of roles andintervene the past the seventh the became seventh customer the customer of seventh Umgeni ofincustomer Umgeni Water Water of year: Umgeni Water waterresource resourcemanagement, management,environmental environmentalscience science to c Water Water to constru water separate,as asrecommended recommendedin inKing KingIV IVReport, Report,tobecame to became areareseparate, The supply The supply area of area The Umgeni of supply Umgeni Water area Water is of the Umgeni is entire the entire Water Province Province is the entire Province • On 17th October 2018 uThukela District Municipality implementing agent. growth and further • On 17th October 2018 uThukela District Municipality the responsibilities. responsibilities.

Inasterms responsibilities.

In terms of the ofWater the In Water terms Services Services of Act, theRetention, Board Water Act, Board Services Act, Board began onmanagement 1st May 2019 following confi rmation of ensure following following signingsigning of following a partnership of a signing partnership agreement of a agreement partnership in inagreement land in belonging land belont and water treatment and conveyance. andand management water treatment independenceandandclear clearseparation separationof ofroles rolesandand independence ofappointments KwaZulu-Natal, of KwaZulu-Natal, asof declared KwaZulu-Natal, asand declared in gazette inas gazette declared issuedand issued by in conveyance. the gazette by the issued byensure the became seventhcustomer customerof ofUmgeni UmgeniWater Water members, members, excluding excluding members, the Chief theexcluding Chief Executive, Executive, theareChief appointed areExecutive, appointed are development, appointed became thethe seventh Wa penetration of current markets; and on by the Executive Authority.

The Board has Ladysmith.

Ladysmith.

The partnership The Ladysmith. partnership agreement The partnership agreement makes makes agreement makes Dam, a com Dam, a compone The supply area of Umgeni Water is the entire Province Theof supply area of Umgeni Water is the Province responsibilities.

In terms the Water Services Board responsibilities. terms ofofof the Water Services Act,Act, Board Good progress continues to be made Ministry Ministry Water of Water and Ministry Sanitation and Sanitation of Water in 2015. and in 2015.

The Sanitation supply Theentire supply inarea 2015. area The area following signing of a partnership agreement in by supply thebyMinister the Minister of by Water the of InWater and Minister Sanitation and Sanitation Water (nowand Minister (now Sanitation Minister (now provision Minister following signing of a partnership agreement in lanw for Umgeni for Umgeni Water Water for to ultimately Umgeni to ultimately Water operate tooperate ultimately operate Sch SupplySupply Scheme, demand, ofthe new markets willare also be actively provision pursued asprovision ofKwaZulu-Natal, KwaZulu-Natal, aspowers declared in gazette issued by the aremembers, full comprises responsibility the Accounting Authority. of askilometres, declared in gazette issued the members, excluding theChief Chief Executive, are appointed Executive, appointed comprises 94 359 94comprises square 359and square 94 kilometres, 359 of square and there and kilometres, there are 54areby and 54 54 ofthere Human of Human Settlements, Settlements, ofexcluding Human Water Water Settlements, and Sanitation), and Sanitation), Water andand the and Sanitation), the and manage the Ladysmith.

Thebehalf partnership agreement makes of the Lower uMkhomazi Bulk W Ladysmith.

The partnership agreement makes Da and and manage 14 schemes and 14 schemes manage on on 14 behalf schemes of this of district on this behalf district of this district River catch River catchment. of Water Sanitation in 2015.

The supply area Ministry Water andand Sanitation in 2015.

The area bythe the Minister Water (nowMinister Minister part of Minister growth strategies. byare Minister oftheofWater andand Sanitation (now Priormunicipalities toMinistry theinofappointment of the current Board, the previous municipalities KwaZulu-Natal. municipalities in KwaZulu-Natal.

A in total KwaZulu-Natal.

Aof total 43 of them 43 of A supply are total them ofare 43 of them Board Board contracts contracts with Board the with contracts Minister through with through the a Sanitation Minister Shareholder a Shareholder through a Shareholder provision for Umgeni Water to ultimately operate provision for Umgeni Water to ultimately operate Su When it will provide fo municipality municipality and forand municipality municipal for municipal staff andatstaff for these municipal at schemes these completed, schemes staff at these schemes represents represents a sign comprises 94 359 square kilometres, andthere there areCompact. comprises 94Local 359 square kilometres, and are 5454from ofHuman Human Water Sanitation), the ofThe Settlements, Water and Sanitation), Local Municipalities, Local Municipalities, 10 are Municipalities, 10 District are District Municipalities 10 Municipalities are and one Municipalities andperiod, one and one Compact.

Board The Compact.

Board hasSettlements, four hasThe Committees four Board Committees has toand four assist to Committees assist it in itand inand tothe assist Board had been appointed to serve anDistrict interim andmanage 14 schemes onbehalf behalf this district 14 schemes Riv to beit transferred toin be and transferred tomanage to Umgeni be to transferred Umgeni Water.

Water.

Umgeni to on Umgeni Umgeni Water Water.

Water isof ofthis Umgeni is district Water ispeople will secure will secure future an estimated 500 000 in municipalities in KwaZulu-Natal.

A total of 43 of them are municipalities in KwaZulu-Natal.

A total of 43 of them are Board contracts with the Minister through a Shareholder Board contracts with the Minister through a Shareholder isSeptember a Metro. is a Metro.

In terms In is terms ofato the Metro. of Water theIn2019.

Water Services termsServices ofAct, the 14 Water Act, of these 14 Services of these Act, 14 of theseits responsibilities. discharging discharging responsibilities. its These responsibilities.

These Committees Committees These are: strategies are: Committees are: operating municipality and for municipal staff at these schemes in regenerating Initsdischarging the Financial Year 2018/19 implemented municipality and forschemes. municipal at these schemes rep 2017 April operating three currently schemes. three operating threestaff schemes. regenera in Local Municipalities, are District Municipalities and one Local Municipalities, 1010 are District Municipalities Compact.

The Board hasProjects, four Committees assistitProcurement itincurrently in currently Amanzimtoti inWater eThekwini toinHibberd Compact.

The Board has four Committees to toassist municipalities municipalities are Water municipalities are Water Services Services are Authorities Water Authorities Services (WSAs).

(WSAs).

Authorities Of and Ofone (WSAs).

OfCapital Audit; Audit; Capital Projects, Audit; Projects, Fixed Capital Fixed Assets Assets and Procurement Fixed and Procurement Assets and to be transferred to Umgeni Water.

Umgeni is to be transferred to Umgeni Water.

Umgeni Water is wi to identify growth prospects had already begun yielding a Metro. terms Water Services these discharging is ais Metro.

In In terms of of thethe Water Services Act,Act, 1414 of of these dischargingits itsresponsibilities. responsibilities.These TheseCommittees Committeesare:are: currently operating three schemes. currently operating three schemes. in promising results: municipalities WaterServices Services Authorities (WSAs).

The municipalities roles of theareare Chairperson and the Chief Executive Water Authorities (WSAs).

Of Of Audit; Audit;Capital CapitalProjects, Projects, FixedAssets AssetsandandProcurement Procurement Fixed

are separate, as recommended in King IV Report, to ensure independence and clear separation of roles and responsibilities.

In terms of the Water Services Act, Board RESIZE.indd 118 members, excluding the Chief Executive, are appointed

•

On 17th October 2018 uThukela District Municipality became the seventh customer of Umgeni Water following signing of a partnership agreement in

A memorandum of agreement ha the KwaQiko Traditional Authority Water to construct the off-channe 2019/11/11 4:03 PM land belonging to the Traditional Au

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es MCO); (REMCO); CO); es(REMCO); (REMCO); •

• Negotiations Negotiations areat are atadvanced anadvanced advanced stage stage with two with One of One the of biggest theinvestments biggest investments investments in water bulk infrastructure water infrastructure implementation are informed are informed Umgeni

by Umgeni Water’sWater’s • • •Negotiations an advanced stage with two One ofOne the ininfrastructure bulk water infrastructure implementation areare informed Umgeni Water’s areat atanat an stage with two Negotiations •Negotiations areNegotiations at anareadvanced are stage anadvanced with two stage with One of the biggest inin bulk water infrastructure One of two thetwo biggest investments ofbiggest the biggest ininvestments bulk investments water inbulk bulk water infrastructure implementation byby Water’s implementation implementation are implementation informedare byinformed Umgeni informed Water’s bybyUmgeni Umgeni Water’s

ns are at an advanced stage with two One of the biggest investments bulk water infrastructure implementation are informed by Umgeni Water’s ecision tive decision existing existing customers, customers, Harry Gwala Harry Gwala District District Municipality South inin South Africa Africa will bemade will made beinin made inthe the in Upper theuMkhomazi Upper uMkhomazi uMkhomazi Infrastructure Infrastructure Master Master Plan.

Plan.

As part ofpart Umgeni of Water’s Umgeni Water’sWater’s sion existing customers, Harry Gwala District Municipality in in South Africa will bethe Upper Infrastructure Master Plan.

AsAs part ofofUmgeni Umgeni Water’s ve ctive decision decision existing customers, Harry Gwala District Municipality existing customers, existing Harry customers, Gwala District Harry Municipality Gwala District Municipality in South Africa will be made the Upper uMkhomazi inMunicipality South Africa in will South be made Africa inwill be Upper made uMkhomazi in the Upper uMkhomazi Infrastructure As part ofAs Infrastructure Master Infrastructure Plan. Master AsMaster partPlan. ofPlan.

Umgeni part Water’s Umgeni Water’s matters on matters and Ugu and District Ugu District Municipality, Municipality, a with ato view to Umgeni Water Water Project Project that will that be will constructed be eThekwini constructed feed to eThekwini feed eThekwini commitment commitment to economic economic transformation, transformation, 35% of 35% the of total the total tters and Ugu District Municipality, with a with view Umgeni Project that will be constructed tototo feed eThekwini stomers, Harry Gwala Municipality commitment to to economic transformation, 35% the total intowith South Africa will beWater made inProject the Upper uMkhomazi Infrastructure Master Plan.

Astopart ofofUmgeni Water’s on to to to matters matters and Ugu District Municipality, with aview view toUmgeni Umgeni and UguDistrict District and Municipality, Ugu District with Municipality, a view Umgeni ato view to Umgeni Water Project that will be constructed feed eThekwini Water Project that Water will be constructed that will to be feed constructed to feed eThekwini commitment to economic transformation, 35% ofofof the total commitment to economic commitment transformation, economic 35% transformation, the total 35% the total Water operating operating managing and managing some some secondary secondary Metro’s Western Western Aqueduct.

Aqueduct.

Umgeni Umgeni Water Water and the and Transtheeach Transof value each oftransformation, capital eachproject capital project isallocated allocated is allocated to targeted toBlacktargeted Black- BlackWater operating andand managing some secondary Metro’s Western Aqueduct.

Umgeni Water and the Transvalue of each capital project isproject toof targeted BlackWater and managing some secondary Waterwith operating Water and operating managing and some managing secondary some secondary Metro’s Western Aqueduct.

Umgeni Water and the TransMetro’s Western Metro’s Aqueduct.

Western Umgeni Aqueduct.

Water and Umgeni the TransWater and the Transvalue ofproject each capital allocated to targeted value of capital value of each is capital allocated project toistargeted isallocated Blackto targeted Blackstrict Municipality, aWater view tooperating Umgeni Water Project that will beMetro’s constructed to feed eThekwini commitment tovalue economic 35% the total bulk bulk schemes schemes or implementing implementing augmentation augmentation Caledon Caledon Tunnel Tunnel Authority Authority (TCTA) (TCTA) received received approval approval from the from the owned owned enterprises enterprises bulk schemes or orimplementing Caledon Tunnel Authority (TCTA) received approval from the enterprises bulk schemes or implementing augmentation bulk schemes bulk or implementing schemes orimplementing augmentation augmentation Caledon Tunnel Authority (TCTA) received approval from the Caledon Tunnel Authority Caledon Tunnel (TCTA) received Authority approval (TCTA) received from the approval from owned enterprises owned enterprises owned enterprises rating and managing some secondary Metro’saugmentation Western Aqueduct.

Umgeni Water and the Transvalue ofthe eachowned capital project is allocated to targeted Blackderpinned ned by interventions interventions within within these these districts. districts. schemes The schemes Minister Minister of Water of Water and Sanitation and Sanitation go ahead toahead go ahead with with it. d byby by by interventions within these districts.

TheThe schemes ofSanitation Water and to gogo ahead with it.it.it.it. rpinned derpinned interventions within these districts.

The schemes interventions within interventions these districts. within these The schemes districts.

The schemes Minister of Water and Sanitation toto ahead with Minister of Minister Water Minister and of Water toSanitation and go ahead Sanitation with toit. go with mes or implementing augmentation Caledon Tunnel Authority (TCTA) received approval from the owned enterprises tperson Chairperson under under negotiation negotiation forare are O&M in Kokstad, inKokstad, Kokstad, within within In In response customer to customer water water demands and the and need the need to rson under negotiation for in are Kokstad, within response to to customer water demands the need tototo hairperson under negotiation for O&M are inare Kokstad, within under negotiation under for negotiation O&M areforO&M inO&M for Kokstad, O&M within in within Incustomer customer water demands and the need to In response toIn In response response water demands customer and water the demands needdemands toand and the need within districts.

The schemes and Sanitation toWater, go ahead with it. cns private private these Harry Gwala Harry DM, while DM, awhile system aisto system istransfer isofrequired tototransfer to transfer Umgeni Umgeni Water, TCTA TCTA and the and Department the Department Water of backlogs, Water eliminate backlogs, backlogs, as atJuly July at 2019 July a2019 total aof total R1, of 58 billion R1, 58 billion vate Harry Gwala DM, while system required toWater transfer ndand private Umgeni Water, TCTA and the Department ofofof Water Harry Gwala DM, while a system isrequired required transfer Harry Gwala DM, Harry while Gwala aGwala system DM, isawhile required a Minister system is required to transfer Umgeni TCTA and the Department Water Umgeni Water, Umgeni TCTA and Water, the TCTA Department and the of Department Water of Water eliminate backlogs, asaas at July 2019 R1, 58 billion eliminate as at July 2019 aatotal ofofof R1, 58 billion eliminate eliminate as eliminate atbacklogs, July backlogs, 2019 total at ofas R1, 2019 58 billion atotal total R1, 58 billion ities nclude include water from Weza from River Weza to River toHarding Harding both Dam, in both in the and Sanitation offi cials offi are cials already are already working closely closely towas es water from Weza River toHarding Harding Dam, both inthe the waterare from Weza water River from to Harding Weza Dam, to both inDam, theboth Dam, both in the committed was forsupply bulk forwater bulk water water supply supply infrastructure andSanitation offi cials are already working closely tototo to and Sanitation and offiSanitation cials Sanitation areoffi already offi cials working are already closely working to working closely udeinclude water from Weza River toRiver Harding Dam, in the was for bulk supply was committed was for bulk committed water bulk infrastructure water supply infrastructure andand cials are already working closely to otiation for O&M inwater Kokstad, within was committed forfor bulk water supply infrastructure In response customer water demands and theinfrastructure need toinfrastructure gic objectives, South Coast System within Ugu DM. South Coast System South within Coast Ugu System DM. within Ugu DM. ectives, ic objectives, South South Coast System Coast System within within Ugu DM. Ugu DM. defi entity’s role nancial and defi ne eachdefi entity’s neeach role each in entity’s institutional, role ininstitutional, fiinstitutional, nancial institutional, andfifinancial nancial andbacklogs, defi nethe defi ne entity’s each entity’s role role in institutional, fifinancial fiand nancial and and development which will be spent as follows: development which development will beatspent which as follows: will spent follows: development development which which will be will spent be spent follows: as58 billion follows: ves, South Coast System within Ugu DM. nedefi each entity’s role ininin institutional, development which will bebe asas follows: a DM, while a system is required to transfer Umgeni Water, TCTA and Department of Water eliminate as July 2019 aspent total ofas R1, nagement project co-ordination arrangements and also facilitate project co-ordination project arrangements co-ordination and arrangements toarrangements also and facilitate and to also facilitate management ement project project co-ordination co-ordination arrangements and and also to alsoRural facilitate ment co-ordination arrangements tototo also facilitate R408 million •facilitate development: R408 development: million R408 million Rural • development: development: Rural development: R408 million R408infrastructure million support ofEnabled Enabled and Innovative Growth, Research of In Enabled In and of Innovative Enabled Growth, and Innovative Research Growth, Research •• •• Rural development: R408 million Weza RiverIntosupport Harding Dam, both the support Insupport support ofin Enabled and Innovative and Innovative Growth, Growth, Research Research and Sanitation offi cialsproject are already working closely to was committed for bulk water supply In Insupport of ofEnabled and Innovative Growth, Research rformance. implementation project.

Umgeni Water will implementation implementation ofimplementation the project. ofthe Umgeni the project.

Water Umgeni will Umgeni Water will will mance. performance. implementation ofthe the of project. the project.

Umgeni Water Water will nce. implementation of of project.

Umgeni Water will and Innovation task teams comprising leaders, senior and Innovation and task Innovation teams comprising task teams leaders, comprising senior leaders, senior and Innovation and Innovation task teams task teams comprising comprising leaders, leaders, senior senior and Innovation task teams comprising leaders, senior • Current and future growth (expansion and • Current and • future growth and future (expansion growth and (expansion and tntrol.

System within Ugu DM. defi ne each entity’s role in institutional, fi nancial and development which will be spent as follows: • Current • Current and and future future growth growth (expansion (expansion and and • Current and future growth (expansion and ol. implement the potable water component while TCTA will implementimplement the potable implement water the component potable water while component TCTA will while TCTA will implement implement potable the potable water water component component while while TCTA will TCTA will the potable water component while TCTA will and young professionals have been formed. managers andmanagers young managers professionals and young have professionals beenhave formed. have been formed. managers managers young and young professionals professionals have been have been formed. formed. managers andand young professionals been formed. augmentation): R139 million augmentation): R139 augmentation): million R139 million augmentation): augmentation): R139 million R139 million augmentation): R139 million be responsible for the raw water component of the scheme. be responsible for be the responsible raw water for component the raw water of the component scheme. of the scheme. project co-ordination arrangements and to also facilitate responsible be responsible for raw the water raw component water component scheme. of the scheme. bebe responsible forfor thethe raw water component of of thethe These task teams will assist theorganisation inidentifying identifying These task teams These willteams assist task teams the organisation will assist the inorganisation identifying organisation in identifying •scheme.

Rural development: R408 million nabled Innovative Growth, Research These These task teams task teams will assist will the assist the organisation in identifying These task will assist the organisation in in identifying tion nsthethe is is istheand the Upgrading and rehabilitation ofofof infrastructure: R808 • Upgrading rehabilitation Upgrading and of rehabilitation infrastructure: R808 infrastructure: R808 tion the opportunities opportunities implementation of the project.

Umgeni Water will Upgrading • Upgrading and rehabilitation and rehabilitation of infrastructure: of infrastructure: R808 R808 •• ••and Upgrading and rehabilitation infrastructure: R808 arising from the Fourth Industrial Revolution arising opportunities from the Fourth arising Industrial from the Fourth Revolution Industrial Revolution opportunities opportunities arising arising from from Fourth theIndustrial Fourth Industrial Industrial Revolution Revolution Construction opportunities arising from thethe Fourth Revolution task teams comprising leaders, senior orks sth with with fi ve fi ve and commissioning of the uMshwathi Construction and Construction commissioning and commissioning of the uMshwathi of the uMshwathi million million million rks ve five (4IR) and translate • Current and future growth (expansion and Construction Construction and commissioning and commissioning of the of uMshwathi the uMshwathi fivefiwith Construction and commissioning of the uMshwathi million million million (4IR) and translate them into value forthe the organisation.

(4IR) them and into translate value for them the into organisation. value for the organisation. implement the potable water component while TCTA will (4IR) and (4IR) translate and translate them into them value into for value for organisation. the organisation.

(4IR) and translate them into value for the organisation. he Executives Executives Regional Bulk Potable Water Supply Scheme have been Regional Bulk Potable Regional Water Bulk Supply Potable Scheme Water Supply haveScheme been Scheme have been been young professionals have been formed. he cutives Executives Regional Regional Bulk Potable Bulk Potable Water Supply Supply Scheme Scheme have been have ives Regional Bulk Potable Water Supply have been augmentation): R139 million be responsible completed. for the raw water component ofWater scheme.

Committee, ewill Committee, completed.

This scheme will benefi t benefi communities inininWater This completed. scheme will This benefi scheme tthe communities will benefi tin communities Umgeni Umgeni Umgeni has Umgeni adopted Water Waterhas ahas adopted adopted approach aa aregional regional approach approach ettee, Committee, completed. completed.

This scheme This scheme will benefi will t communities t communities inUmgeni completed.

This scheme will benefi t communities in smittee, assist SOME the organisation in identifying Water Water hasregional adopted has adopted aregional regional a regional approach approach Umgeni Water has adopted approach SOME KEY ACHIEVEMENTS IN FINANCIAL YEAR KEY ACHIEVEMENTS SOME KEY ACHIEVEMENTS IN FINANCIAL YEAR IN FINANCIAL YEAR SOME SOME KEY ACHIEVEMENTS KEY ACHIEVEMENTS IN FINANCIAL IN FINANCIAL YEAR YEAR SOME KEY ACHIEVEMENTS IN FINANCIAL YEAR uMgungundlovu hethe theBoard’s Board’s uMgungundlovu and iLembe district municipalities. will uMgungundlovu and iLembe district and municipalities. iLembe district Itmunicipalities. will municipalities.

Itwill willIt will toItItplanning tofor toplanning bulk planning water forfor supply. bulk bulk water water In this supply. supply. regard, Insupply.

Inthis this regard, regard, • Upgrading and rehabilitation of infrastructure: R808 Board’s Board’s uMgungundlovu uMgungundlovu and iLembe and iLembe district district municipalities.

It ard’s uMgungundlovu and iLembe district municipalities. will to planning to planning for bulk for water bulk water supply.

In this In regard, this regard, 2018/19 2018/19 2018/19 to planning for bulk water supply.

In this regard, sing from the Fourth Industrial Revolution 2018/19 2018/19 2018/19 all business business increase assurance supply and, for the fifirstfirst time, make increasecommissioning assurance increase of supply assurance and,of for of the supply fisupply rst and, time, for make the rst time, make make itstherefore, Infrastructure therefore, itsits Infrastructure Programme Infrastructure isProgramme aligned Programme tois is aligned aligned to to Construction and of the uMshwathi usiness tllt all business increase increase assurance assurance of supply of and, for and, the for the time, fitherefore, rst make time, million ness increase assurance of supply and, for the fi rst time, make therefore, therefore, its Infrastructure its Infrastructure Programme Programme is aligned is aligned to to therefore, its Infrastructure Programme is aligned to In Financial Year 2018/19 Umgeni Water again delivered a In Financial Year In 2018/19 Financial Umgeni Year 2018/19 Water again Umgeni delivered Water a again delivered a te them into valueInfor the a reliable supply of of potable water available areas of of Government a delivered reliable a of reliable potable supply water available potable water in areas available of in in areas Provincial Provincial Provincial Government strategies Government andstrategies plans. strategies and and plans. plans.

In Financial Inorganisation.

Financial Year 2018/19 Year 2018/19 Umgeni Umgeni Water Water again delivered again areliable Financial Year 2018/19 Umgeni Water again delivered a a supply a reliable a reliable supply ofpotable potable ofhave potable water water available available areas inof areas of Provincial ofProvincial aWater supply ofsupply water available in inareas Regional Potable Supply Scheme been Provincial Government Government strategies strategies and plans. and plans.

Government strategies and plans. setset ofthat solid reflrefl ectect itsposition undisputed position as a set of solid results of solid reflresults ect results its that undisputed that its undisputed as aBulk position as a Mshwathi, Southern andand Central Maphumulo.

Mshwathi, Mshwathi, Ndwedwe Southern andNdwedwe Central Ndwedwe Maphumulo.

Central Maphumulo. set solid ofresults solidthat results that that ect its ect undisputed its undisputed position position aMshwathi, setset of of solid results reflrefl ect itsrefl undisputed position as as a a asSouthern Southern Ndwedwe Ndwedwe Central andMaphumulo.

Central Maphumulo.

Maphumulo.

Mshwathi, Southern Ndwedwe andand Central sustainable organisation thatthat value to to its its customers sustainable organisation sustainable that organisation adds value to adds its adds customers value customers completed.

This scheme willMshwathi, benefi tSouthern communities in Umgeni Water hasWATER’S adopted aWATER regional approach ATIVE VE UMGENI WATER’S UMGENI UMGENI BULK WATER WATER’S BULK SUPPLY BULK WATER SYSTEMS SUPPLY SUPPLY SYSTEMS SYSTEMS sustainable sustainable organisation organisation that adds that value adds value to its customers to its customers sustainable organisation that adds value to its customers EVEMENTSand IN FINANCIAL YEAR TIVE UMGENI UMGENI WATER’S WATER’S BULK BULK WATER WATER SUPPLY SUPPLY SYSTEMS SYSTEMS WATER’S BULK WATER SUPPLY SYSTEMS andandof thethe people The organisation’s the people KwaZulu-Natal. peopleof ofKwaZulu-Natal.

KwaZulu-Natal.

The organisation’s The organisation’s RollRolldistrict out to to UMGENI Rolland out iLembe of major infrastructure outof ofmajor majorinfrastructure continued infrastructure inItcontinued order continued to into inorder order uMgungundlovu municipalities. will planning for bulk water supply.

In this regard, andthethe and people the of people ofKwaZulu-Natal.

KwaZulu-Natal. of KwaZulu-Natal.

Theorganisation’s organisation’s The organisation’s The combined The 13 The Umgeni combined combined Water 13 13 Umgeni bulk Umgeni water Water Water supply bulk bulk systems water water supply supply systems systems and people The Roll out Roll of out major ofand major infrastructure infrastructure continued continued inorder order intoorder to The toThe Roll out of assurance major infrastructure continued inineliminating financial position allows it toit have unhindered to prefinancial position fiallows nancial itposition to have unhindered allows to have access unhindered to pre- access access to pre-assurance combined The combined 13 Umgeni 13 Umgeni Water Water bulk water bulk supply water supply systems systems combined 13 Umgeni Water bulk water supply systems increase of supply and assist in increase increase of supply assurance assist of supply in eliminating and assist eliminating ofproducts, products, increase assurance of supply and, for the fi rst time, make recorded excellent recorded recorded performance excellent excellent against performance performance all risk against categories against all all risk risk categories categories fi nancial fi nancial position position allows allows it to have it to unhindered have unhindered access access to preto prefi nancial position allows it to have unhindered access to pretherefore, its Infrastructure Programme is aligned to increase increase assurance assurance ofsupply supply of supply and assist and assist ineliminating eliminating in area eliminating increase assurance ofwithin and assist inoperational determined borrowing – factors thatthat enable provision determined borrowing determined limits borrowing – factorslimits that limits enable – factors provision enable provision oducts, of products, ucts, recorded recorded excellent excellent performance performance against against all risk all categories risk categories recorded excellent performance against all risk categories water backlogs within Umgeni Water’s operational water backlogs water within backlogs Umgeni Water’s Umgeni operational Water’s area area 2018/19 Water again delivered a hemes schemes willwillUmgeni determined specifi ed in SANS specifi specifi 241:2015 ed ed in SANS in SANS Drinking 241:2015 241:2015 Water Drinking specifi Drinking cations.

Water Water specifi specifi cations. cations. determined determined borrowing borrowing limits –limits factors –reliable factors that that enable provision provision borrowing limits –infrastructure factors enable provision athat supply of potable water available in areas ofoperational Provincial strategies and plans. water water backlogs within within Umgeni Water’s Water’s operational operational area area water backlogs Umgeni Water’s area of water bulk potable water infrastructure and formulation anan of bulk infrastructure potable water and formulation and ofenable an formulation of schemes es willpotable will of bulk potable willpotable specifi ed in SANS edwas in 241:2015 SANS 241:2015 Drinking Drinking Water Water specifi specifi cations. cations. and beyond.

Towithin this end, an amount of of R1, 3636 billion has andofbeyond. this and end, beyond. anbacklogs amount To this end, ofUmgeni R1,an 36 amount billion has R1, billion has Government specifi inhealth SANS 241:2015 Drinking Water specifi cations. bulk lk As36 a consequence, Asspecifi As a consequence, public aed consequence, public public assured health health while was was assured meeting assured while while meeting meeting of bulk ofpotable bulk potable water infrastructure water infrastructure and formulation and Southern formulation of and anTo ts that refl ect its undisputed position as a of bulk bulk potable water infrastructure and formulation of of ananNdwedwe and beyond. and beyond.

To this To end, this an end, amount an amount of R1, of 36 R1, billion billion has has affordable bulk potable water tariff. affordable potable affordable water bulk tariff. potable water tariff. beyond.

To this end, an amount of R1, 36 billion has Mshwathi, and Central Maphumulo. bulk otable potable able been Of this been committed been forcommitted 2019/2020 committedforfor fi2019/2020 nancial 2019/2020 year.financial Of financial this year. year.

Of this As a consequence, As a consequence, public public health health was assured was assured while meeting while meeting As a consequence, public health was assured while meeting lerated ated sociosociocustomers’ water customers’ customers’ demands water and water demands water demands quality andand water compliance. water quality quality compliance. compliance. affordable affordable bulk potable bulkwater potable water tariff. water tariff. potable tariff. nisation that addsaffordable value tobulk its customers been been committed committed for 2019/2020 for approximately 2019/2020 fimillion nancial fiyear. nancial year.

Of year. this been committed for 2019/2020 financial Ofmillion thisthisOf erated sociosocioamount andand inapproximately 2019/2020, R408 amount and in amount 2019/2020, in 2019/2020, R408 approximately R408 ociocustomers’ customers’ water water demands demands water and water quality quality compliance. compliance.

UMGENI BULK WATER SUPPLY SYSTEMS water demands andand water quality compliance. to reduction reduction Themillion resultsWATER’S arecustomers’ The contained The results results are below: are contained contained below: below: Importantly, the results of 2018/2019 refl ect Umgeni Importantly, the Importantly, results of 2018/2019 the results refl of ect 2018/2019 Umgeni refl ect Umgeni amount amount and in and 2019/2020, in 2019/2020, approximately approximately R408 R408 million million amount and in 2019/2020, approximately R408 million etion KwaZulu-Natal. The organisation’s uction to of reduction willrural bebe spent onon rural development projects will be infrastructure spent on will development spent rural projects development projects The results The results are contained are contained below: below: The results are contained below: Roll out of major continued in order to Importantly, Importantly, theresults results the results ofstrategic ofposition 2018/2019 ect refl Umgeni ectsupport Umgeni Importantly, the ofstrategic 2018/2019 refl ect Umgeni The Umgeni Water bulk water supply systems • combined Acute Microbiological • 13 • Acute Acute Microbiological Health: Microbiological Health: 99.94%, Health: 99.94%, 99.94%, Water’s andand torefl further support resiliency Water’s andresiliency strategic resiliency to2018/2019 further position support to further will spent be spent rural ondevelopment rural development projects projects willwill bebe spent onon rural development projects n allows it toWater’s have unhindered access toposition preincrease assurance of supply and assist in eliminating • Acute • Microbiological Acute Microbiological Health: Health: 99.94%, 99.94%, Water’s resiliency resiliency strategic andand strategic position position to further to further support support • Acute Microbiological Health: 99.94%, Water’s resiliency andand strategic position toWater further support thethe Department of Water Sanitation’s National Water the Department ofWater’s Water Department and Sanitation’s of Water and National Sanitation’s National Water recorded excellent performance against all risk 100.00%, categories HOW SURPLUS IS IS USED HOW SURPLUS IS HOW USED SURPLUS USED • Acute Chemical • • Acute Health: Acute Chemical Chemical Health: Health: 100.00%, 100.00%, egic c focus focus on on – factorsthe owing limits enable Department the Department of Water of Water and Sanitation’s and Sanitation’s National National Water Water the that Department ofprovision Water and Sanitation’s National Water and Sanitation Master Plan that prioritises actions and and Sanitation Master and Sanitation Plan that Master prioritises Plan actions that prioritises and actions and water backlogs within Umgeni Water’s operational area HOW SURPLUS HOW SURPLUS IS USED IS USED HOW SURPLUS IS USED • Acute • Chemical Acute Chemical Health: Health: 100.00%, 100.00%, • Acute Chemical Health: 100.00%, egic on focus on scus on ed 241:2015 Drinking Water specifi cations. entensifi intensifi eded In posted a ain SANS Inactions Financial Year InFinancial 2018/19 FinancialYear the Year2018/19 organisation 2018/19thetheorganisation posted organisation a specifi •posted Chronic Chemical • • Chronic Chronic Health: Chemical Chemical Health: Health: 99.91%, 99.91%, 99.91%, Sanitation and Sanitation Master Master Plan Plan prioritises that prioritises actions and andan water infrastructure and formulation ofensure an andand Sanitation Plan that prioritises actions and investments to asupports future that supports investments to investments ensure aMaster future toensure that athat future inclusive that supports inclusive and beyond.

Toinclusive this end, amount of R1, 36 billion has efiprovision intensifi ed of ed In Financial In Financial Year 2018/19 Year 2018/19 the organisation the organisation posted posted a a ed hnsifi rovision of In surplus.

Financial Year 2018/19 organisation a to • • Chronic bebeused, others, surplus. The surplus surplus.The will Thesurplus besurplus used,willamong willthe others, used,among among to posted others,to Chronic • Chemical Chronic Chemical Chemical Health: Health: 99.87% 99.91%, 99.91%, As public health was assured meeting Health: 99.91%, investments investments ensure touniversal ensure a coverage. future athat future thatsupports supports that supports inclusive inclusive development and sanitation coverage. development and development universal sanitation and sanitation coverage. investments to toensure auniversal future inclusive •a consequence, Aesthetic: Aesthetic: 99.87% while 99.87% potable sion provision of tariff. llaborative surplus. surplus.

The surplus The atwater surplus will be will be used, among among others, others, to •to • Aesthetic: ncollaborative of of water keep bulk potable tariffs at affordable levels and keepfor bulk2019/2020 potable keep water bulk tariffs potable affordable water tariffs levels at affordable and others, levels and been committed fisurplus nancial year.

Ofused, this surplus.

The will be used, among to customers’ water demands and water quality compliance. development development universal and universal sanitation sanitation coverage. coverage. development andand universal sanitation coverage.

• Aesthetic: • Aesthetic: 99.87% •• • Aesthetic: 99.87% • and Operational: Operational: Operational: 99.54%.

99.54%.

99.54%.99.87% nges, lenges, and/ and/ orative collaborative also implement keywater Infrastructure projects to to and implement also key implement critical keycritical critical Infrastructure projects keep bulk keep potable bulk Infrastructure potable water tariffs tariffs ataffordable affordable attoaffordable levels levels and ative keep bulk potable water tariffs atprojects levels amount and inalso2019/2020, approximately R408 million The results are contained below: vernment nment or orof 2018/2019 reflect Umgeni Operational: • Operational: 99.54%.

99.54%. ensure water resource security.

These projects willwill assist resource ensure security. water resource These projects security. will These assist projects assist lenges, , and/ and/ 99.54%. also implement also implement key critical key critical Infrastructure Infrastructure projects projects also implement key critical Infrastructure projects to to •to• Operational: eand/ results following areare some organisational achievements The followingThe are The some following organisational some achievements organisational achievements will be spent onensure ruralwater development projects INVESTMENT INVESTMENT ININVESTMENT SOCIO-ECONOMIC IN IN SOCIO-ECONOMIC SOCIO-ECONOMIC DEVELOPMENT DEVELOPMENT DEVELOPMENT intervene municipalities meet future demand and eliminate water municipalities meet municipalities future demand meet and future eliminate demand water and eliminate water vernment ent or or ensure ensure water water resource resource security. security.

These These projects projects will assist will assist tytointervene or ensure water resource security.

These projects will assist • Acute Microbiological Health: 99.94%, and strategic to further support infollowing the past year: in theposition past year: in the past year: The following are some are some organisational organisational achievements achievements TheThe following are some organisational achievements PROJECTS PROJECTS PROJECTS nd and further further backlogs.

The emphasis provision ofand such infrastructure backlogs. The emphasis backlogs. onThe provision emphasis ofonsuch on provision infrastructure of such infrastructure INVESTMENT INVESTMENT SOCIO-ECONOMIC IN SOCIO-ECONOMIC DEVELOPMENT DEVELOPMENT ervene to intervene INVESTMENT ININ SOCIO-ECONOMIC DEVELOPMENT municipalities municipalities meet future meet future demand demand eliminate and eliminate water water ene municipalities meet future demand and eliminate water in the in past the year: past year: of Water and Sanitation’s National Water in the past year: pment, lopment, onon is on sustainability ofemphasis supply of on safe drinking water. is IS on sustainability is on of supply sustainability ofThe safe of drinking supply water. of safe drinking water.

HOW SURPLUS USED • Acute Chemical Health: 100.00%, PROJECTS PROJECTS urther and further PROJECTS In 2018/19 approximately In In 2018/19 2018/19 approximately R383 approximately million R383 was R383 spent million million on was was spent spentonon backlogs. backlogs.

The emphasis on provision provision of such of infrastructure such infrastructure ther backlogs.

The emphasis on provision of such infrastructure progress continues to be made with implementation Good progressGood continues Good progress to be made continues with to implementation be made with implementation Master pursued yopment, pursued as that prioritises actions and implementation implementation implementation of key rural development of of key key rural rural development infrastructure development infrastructure infrastructure nt, on asPlan on is on sustainability is on sustainability of supply of supply of safe of drinking safe drinking water. water. on is on sustainability of supply of safe drinking water.

In 2018/19 In 2018/19 approximately approximately R383 R383 million million was wasonspent on on In 2018/19 approximately R383 million was spent of the Lower uMkhomazi Bulk Water Supply Scheme. of the Lower uMkhomazi of the Lower Bulk uMkhomazi Water Supply Bulk Scheme.

Water Supply Scheme.

Financial Year 2018/19 the CREDIT organisation posted a Good progress Good progress continues continues made toIn be made with implementation with implementation Good progress continues to to bebe made with implementation • projects Chronic Chemical Health: 99.91%, spent 2018/19 RATINGS 2018/19 CREDIT 2018/19 RATINGS CREDIT RATINGS that supports inclusive whichimplementation projects included: projects which which included: included: yued pursued densure as as aasfuture implementation implementation of key of rural key development rural development infrastructure infrastructure When completed, it will provide for the water needs of When completed, When it will completed, provide for it will the provide water needs for the of water needs of of key rural development infrastructure ofLower theuMkhomazi Lower uMkhomazi uMkhomazi BulkWater Water BulkSupply Water Supply Supply Scheme.

Scheme. surplus.

TheScheme. surplus be(S&P) used, among others, toRatings of ofthetheLower Bulk Standard & and (S&P) and re-reStandard &will Poors Standard &Poors Poors Fitch (S&P) Ratings andFitch agencies FitchRatings re- agencies 2018/19 2018/19 CREDIT CREDIT RATINGS RATINGS 2018/19 CREDIT RATINGS d universal an sanitation coverage. projects which which included: included: an estimated 000 people in coastal beltbelt from estimated 500 an 000 estimated people in the 000 coastal people belt inthe the from coastal •agencies 99.87% projects which included: • Aesthetic: uMshwathi • projects •Regional uMshwathi uMshwathi Bulk Regional Water Regional Supply Bulk Bulk Scheme Water Water Supply Supply Scheme Scheme When When completed, completed, it500 will itprovide will provide for the for water theneeds water needs needs offrom of affi When completed, it500 will provide for the water plemented mplemented rmed Umgeni Water’s national scale ratings.

Fitch affiof rmed Umgeni affi Water’s rmed Umgeni national Water’s scale ratings. national Fitch scale ratings.

Fitch keep bulk potable water tariffs at affordable levels and Standard Standard Poors &(S&P) Poors (S&P)and (S&P) andFitch Fitch and Ratings Fitch Ratings agencies agencies re- reStandard & &Poors Ratings agencies reeThekwini toinin Hibberdene in Ugu. Amanzimtoti inAmanzimtoti eThekwini Amanzimtoti toin000 Hibberdene in000 eThekwini to Ugu. Hibberdene inbelt Ugu. estimated an estimated 500 500 people 000 people in thecoastal incoastal the coastal beltfrom from belt were fromre-affi ananestimated 500 people the • uMshwathi • uMshwathi Regional Regional Bulk Water Bulk Water Supply Scheme Scheme • Greater Mpofana • • Greater Greater Bulk Mpofana Water Mpofana Supply Bulk Bulk Scheme Water Water Supply Supply Scheme Scheme • uMshwathi Regional Bulk Water Supply Scheme gun n yielding yielding Ratings were re-affi rmed in September 2018 for long-term Ratings Ratings rmed were in September re-affi rmed 2018 in September for long-term 2018 for long-term • ratings.

Operational: 99.54%.Supply also implement key affi critical Infrastructure toscaleratings. mented mplemented affi rmed affi rmed Umgeni Umgeni Water’sprojects Water’s national national scale ratings.

Fitch Fitch nted rmed Umgeni Water’s national scale Fitch Amanzimtoti Amanzimtoti eThekwini in eThekwini Hibberdene to Hibberdene Ugu.in Ugu. Amanzimtoti in in eThekwini to to Hibberdene in in Ugu. and senior unsecured ratings at AA+ and short-term rating and senior unsecured and senior ratings unsecured at AA+ and ratings short-term at AA+ rating and short-term rating • forLower uMkhomazi Lower Lower uMkhomazi uMkhomazi Water Supply Bulk Bulk Scheme Water Water Supply Supply Scheme Greater • Bulk Greater Mpofana Mpofana Bulk Water Bulk Water Supply Supply Scheme Scheme •• •• Greater Mpofana Bulk Water Supply Scheme gun elding yielding A memorandum Ratings Ratings were re-affi were rmed re-affi rmed September inassist September 2018 2018 long-term long-term ding were re-affi rmed in in September 2018 forfor long-term A Amemorandum hashasbeen with ofmemorandum agreementofhas ofagreement agreement been signed with beensigned signed with Ratings ensure water resource security.

These projects will at F1+.

S&P ratings were rmed July 2018 at zaAAA at F1+. S&P ratings at F1+. were S&P re-affi ratings rmed were in re-affi July re-affi 2018 rmed atinzaAAA in July 2018 at zaAAA re some organisational achievements senior andunsecured senior unsecured unsecured ratings at AA+ atand AA+ short-term andINVESTMENT short-term rating rating unicipality Municipality KwaQiko Traditional thatthatallows the KwaQiko the Traditional the KwaQiko Authority Traditional thatAuthority allows Authority Umgeni allowsUmgeni Umgeni andand senior ratings atratings AA+ and short-term rating • Maphumulo • • Bulk Maphumulo Maphumulo Water Supply Bulk Bulk Scheme Water Water Supply Phase Supply Scheme 3 Scheme Phase Phase 3Scheme 3 IN SOCIO-ECONOMIC DEVELOPMENT • Lower • Lower uMkhomazi uMkhomazi Bulk Water Bulk Water Supply Supply Scheme municipalities meet future demand and eliminate water • Lower uMkhomazi Bulk Water Supply Scheme memorandum A memorandum agreement of agreement been hassigned been signedfor signed with with for long-term andand zaA-1+ forThe short-term.

TheThe affiaffi rmation long-term and for zaA-1+ long-term for short-term. zaA-1+ for affi short-term. rmation rmation A Amemorandum of ofagreement hashasbeen with : Water mgeni eni Water Water to construct Water to toconstruct off-channel Ngwadini Dam Waterthe off-channel constructthethe Ngwadini off-channel Dam Ngwadini on Damonon at F1+. at F1+. atS&P F1+. ratings S&Pwere ratings were re-affi were rmed re-affi rmed July in2018 July at 2018 zaAAA at zaAAA S&P ratings re-affi rmed in in July 2018 at zaAAA PROJECTS Municipality ipality KwaQiko the KwaQiko Traditional Traditional Authority Authority thatallows allows that allows Umgeni Umgeni ects stability in inUmgeni Water’s stand-alone le le Thukela reflects stability refl in ects Umgeni stability Water’s Umgeni stand-alone Water’s profi stand-alone le profi •profi Lower Lower Bulk Lower Thukela Thukela Supply Bulk Bulk Scheme Water Water Supply Phase Supply Scheme 1Scheme Scheme Phase Phase ality backlogs.

The emphasis onreflprovision of such infrastructure thetheKwaQiko Traditional Authority that Umgeni Maphumulo • Water Maphumulo Bulk Water Bulk Water Supply Supply Scheme Phase 31 3 •• •• Maphumulo Bulk Water Supply Scheme Phase 31 Phase eement greementin in land belonging land belonging to to the Traditional TheThe Ngwadini to land the belonging Traditional Authority. the Traditional TheAuthority.

Ngwadini Authority.

Ngwadini forfor long-term for long-term and zaA-1+ and for zaA-1+ for short-term. for short-term.

The affi The rmation affirmation long-term and zaA-1+ short-term.

The affi rmation due to tariffs costcost effective tariffs and relatively stable funds from due effective due to and effective relatively tariffs stable and funds relatively from stable funds from •to•Bruyns mgeni Water Water WatertoWater toconstruct construct to construct off-channel the off-channel Ngwadini Ngwadini Dam on Dam on Water thethe off-channel Ngwadini Dam onto isBulk onuMkhomazi sustainability ofcost supply of safe drinking water.

• Wartburg Wartburg Wartburg Hill to Pipeline Bruyns to Bruyns Hill Hill Pipeline Pipeline ment ntatermakes makes Dam, a component Dam, a component of the Lower uMkhomazi Bulk Water Dam, of a the component Lower uMkhomazi of the Lower Water Bulk Water In 2018/19 approximately R383 million was spent on ectsstability reflstability ects stability Umgeni in Umgeni Water’sWater’s stand-alone stand-alone profi Lower • Thukela Lower Thukela Thukela Bulk Water Bulk Water Supply Supply Scheme Scheme Phase 1 1 reflrefl ects in inUmgeni Water’s stand-alone profi le leprofi•le• Lower Bulk Water Supply Scheme Phase 1 Phase ontinues to be made with implementation operations. operations. greement ent inoperate in Supply land belonging land belonging to Traditional the Traditional Authority.

Authority.

The Ngwadini The Ngwadini operations. t inoperate land belonging to to thethe Traditional Authority.

The Ngwadini ately ly Supply Scheme, will be situated in in thethe Lower uMkhomazi Scheme, Supply will be Scheme, situated in will the be Lower situated uMkhomazi Lower uMkhomazi due due cost toeffective cost effective tariffs tariffs relatively and relatively stable stable funds funds from from due to to cost effective tariffs andand relatively stable funds from implementation of key rural development infrastructure • Trust Feed • WWTW • Trust Trust Feed Feed WWTW WWTW • Wartburg • Wartburg to Bruyns to Bruyns Hill Pipeline Hill Pipeline • Wartburg to Bruyns Hill Pipeline ment makes makes Dam, a Dam, component a component of the of Lower the Lower uMkhomazi uMkhomazi Bulk Water Bulk Water Mkhomazi Bulk Water Supply Scheme. akes Dam,River a River component ofThe the Lower Bulk Water his f this district district River catchment. budgeted project costcost of of R4 billion Thecatchment. budgeted catchment. project The budgeted costuMkhomazi of R4 project billion R4 billion operations. operations. operations.

2018/19 CREDIT RATINGS projects which included: CAPITAL INVESTMENT CAPITAL INVESTMENT CAPITAL INVESTMENT tely operate Supply Scheme, Scheme, will situated be situated the Lower the Lower uMkhomazi uMkhomazi rate Supply Scheme, bebe situated in in the Lower uMkhomazi d, itschemes will provide forSupply the water needs of Trust • Feed Feed Trust WWTW Feed WWTW hese eperate schemes represents awill signifi cant inin infrastructure thatthat represents a signifi represents cant investment awill signifi cant ininvestment infrastructure investment in that infrastructure • • Trust WWTW The budget for thethe entire Five-Year Capex – – The budget for The the entire budget Five-Year for entire Capex Five-Year Programme Capex – Programme Programme Standard & Poors (S&P) and Fitch Ratings agencies redistrict this district River catchment.

River catchment.

The budgeted The budgeted project project cost of cost R4 of billion R4assist billion trict River catchment.

The budgeted project cost of R4 billion ni geni Water Water is is will secure future water supply, reduce backlogs and assist will secure future will water secure supply, future reduce water backlogs supply, reduce and assist backlogs and 00 000 people in the coastal belt from • uMshwathi Regional Bulk Water Supply Scheme CAPITAL CAPITAL INVESTMENT INVESTMENT CAPITAL INVESTMENT 2020/25 - is- R8, 912 billion; anR2, 82 billion allocation of of R2, 82 billion 2020/25 -that is R8, 2020/25 912 billion; is an R8, allocation 912 billion; of an allocation R2, 82 billion hemes ese schemes in regenerating represents a signifi aindustrial signifi cant investment cant investment infrastructure indevelopment. infrastructure thatWater’s mes affi rmed Umgeni national scale ratings.

Fitch represents a signifi investment in in infrastructure that in industrial regenerating and economic development. inrepresents regenerating andcant economic industrial development. and economic The budget The budget forthe theentire forentire theFive-Year entire Five-Year Five-Year CapexProgramme Capex Programme Programme – The budget for Capex – – eThekwini to Hibberdene in Ugu. is for rural development projects.

Capital projects under is for rural development is for rural projects. development Capital projects. projects Capital under projects under Water geni is is secure willfuture secure future future water supply, waterreduce supply, reduce reduce backlogs backlogs assist and assistin September 2018 for long-term er is Water willwill secure water supply, backlogs andand assist • of R2, 82 billion Greater Mpofana Bulk Water Supply Scheme Ratings were re-affi rmed 2020/25 2020/25 is R8, - 912 billion; is R8, 912 billion; allocation an allocation R2, 82 billion 2020/25 - is- R8, 912 billion; anan allocation of of R2, 82 billion regenerating in regenerating industrial industrial economic and economic development. development. in in regenerating industrial andand economic development. and senior unsecured ratings atisrural AA+ anddevelopment short-term rating for development rural projects. projects.

Capital Capital projects under is is forfor rural development projects.

Capital projects under • projects Lowerunder uMkhomazi Bulk Water Supply Scheme m of agreement has been signed with at F1+. S&P ratings were re-affirmed in July 2018 at zaAAA aditional Authority that allows Umgeni • Maphumulo Bulk Water Supply Scheme Phase 3 for long-term and zaA-1+ for short-term. The affirmation uct the off-channel Ngwadini Dam on reflects stability in Umgeni Water’s stand-alone profile • Lower Thukela Bulk Water Supply Scheme Phase 1 RESIZE.indd 119 2019/11/11 4:03 PM to the Traditional Authority. The Ngwadini due to cost effective tariffs and relatively stable funds from

EMERGING TECHNOLOGY, AND WHAT THIS PRESENTS FOR THE REGION

By Rory Moore The world around us is changing at an unprecedented rate. On any given day we have access to more information and technology than our predecessors experienced in a lifetime. We’re entering a never-before-seen era of collaboration and access to information. Business models are being overturned and assumptions about how the world works are being challenged as new businesses emerge and disrupt the status quo. Traditional boundaries are being blurred as new technologies promote change and opportunity, encouraging us to find new paradigms for better navigating this new world.

The Fourth Industrial Revolution (4th IR) is ushering in a new era of emerging technologies that are allowing us to reshape our entire world and ourselves within it. Organisations that are able to leverage these technologies will have the opportunity to weave themselves into a new digital society. In South Africa, and across the continent, the imperative to transform is urgent.

12 0 | VISION 20 3 0 , O UR F UTUR E O UR P LAN , V O L 4

RESIZE.indd 120

2019/11/11 4:03 PM

Enabled by the 4th IR, emerging technology is a key

A NEVER-BEFORE-

changer that deserves immediate attention. The 4th IR will

SEEN ERA OF COLLABORATION AND ACCESS TO INFORMATION”

component of a digital business environment and is a gametransform the way we live and work like never before. But in South Africa, where the adoption of emerging technologies has been sluggish, a troubling question lingers: will the country be left behind in the transformation propelled by the 4th IR? By most estimates, emerging technologies will double annual economic growth rates, promising a future of robots and humans working together to solve the world’s

EDITORIAL | THE 4TH IR

“WE’RE ENTERING

most difficult problems side by side and armed with nearunlimited processing and algorithmic power. In South Africa, many companies find themselves encumbered by legacy technologies and systems, business models, and corporate structures, as well as sunk investments in antiquated infrastructure, all with workforces that may not be ready for the 4th IR that is already underway across the globe.

Indeed, like many workers in other countries, South Africans are concerned that emerging technology will eliminate their jobs and worsen income inequality. While many South African organisations have begun to embrace the potential of the 4th IR, more work remains.

Many organisations are just at the start of their transformation journeys, addressing the fundamental building blocks for digitalisation of businesses – and coming to terms with the new business models, processes and skills needed to leverage the opportunities a digital world offers. To these organisations, the 4th IR may seem a long way off. It is not.

Globally – and in South Africa – many commentators are concer ned that the 4th IR will have a negative impact on society. Research has shown that although there is the potential for job losses, there is even more potential for job rotation and even more jobs that never existed before.

Indeed, rather than replacing humans, emerging technology should make people more productive.

WHAT ARE THESE NEW TECHNOLOGIES? Emerging technologies include blockchain, virtual and augmented reality, artificial intelligence, computer vision, natural language processing, and machine learning. These self-directed, self-adaptive technologies combine with data mining and pattern recognition, among others, to enable extraordinary solutions.

The 4th IR will be powered by a multiple of these technologies that can be combined in different ways to sense, comprehend, act and learn. These advanced technologies leverage big data

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“BY MOST ESTIMATES, EMERGING TECHNOLOGY WILL DOUBLE ANNUAL ECONOMIC GROWTH RATES”

and cloud connectivity, as well as the emerging sensated world

That will fundamentally change organisations’ points of

of ‘things’ ripe for integration—the Inter net of Things (IoT) and

departure – their goals, their positioning and how they interact

Industrial IoT (IIoT) – coupled with innovative business models

with their customers, employees and other stakeholders.

to deliver higher business value. Together, these technologies are disrupting and revolutionising entire industries.

EMERGING TECHNOLOGY AS A FACTOR DRIVING PRODUCTIVITY

At work, we collaborate with technology do our jobs better.

Globally, there has been a marked decline in the ability of

We use sophisticated communication and collaboration

traditional levers of production – capital investment and

technologies to work with colleagues on the other side of the

labour – to propel economic growth. Since the 1980s, GDP

globe, whether they’re human or not. We see organisations

growth has steadily slowed in many large economies. Emerging

partnering with competitors to create entirely new ventures using

technologies driven by the 4th IR can help reverse this trend.

platform technologies. From autonomous driving vehicles to live translations made possible by artificial neural networks, emerging

Accenture Research, in collaboration with Frontier Economics,

technology is making every interaction both simple and smart –

modelled the impact of just artificial intelligence (AI) on 12

and setting a high bar for how future interactions will work.

developed countries that together generate more than 50% of the world’s economic output. It found that AI has the potential to

FUTURE OPPORTUNITIES

boost rates of profitability by an average of 38% by 2035, leading

The near-future world that researched trends describe is

to an economic boost of US$14-trillion across 16 industries in

already familiar. It’s a world in which new technologies are being

12 economies by 2035. As a yardstick, the study used growth

leveraged; natural interfaces are taking over from browsers, deep

in gross value added (GVA), a close approximation of GDP. GVA

learning algorithms enable technology to constantly adapt to

is an output measure that accounts for the value of goods and

human needs, businesses are staffed by an on-demand workforce

services produced in a certain sector. It can be thought of as the

able to adjust rapidly to digital transformation, human-centred

contribution of different sectors to economic growth.

design anticipates and meets user needs, and new business and partner ecosystems form dynamically. Whether ordering fast food,

With the recent leaps forward in research and development,

booking accommodation, checking luggage at an airport or making

economies are entering a new era in which technology has the

a doctor’s appointment, chances are consumers will soon be

potential to overcome the physical limitations of capital and

dealing with emerging technology.

labour and open up new sources of value and growth. Emerging technology can be seen as a new factor of production that can

As each interaction becomes more personalised, powerful

help address future labour shortages and a chronic productivity

and natural, emerging technology will become a pipeline for

deficit in South Africa.

customer satisfaction and loyalty, for employee and agent engagement, and for operational efficiency. But getting this

4TH IR GROWTH

right will require some fundamental shifts in thinking:

More than being a productivity enhancer, emerging technology − inspired by the 4th IR − can reverse the trend of falling profit

• A change in people’s relationship with technology – it now works with them, not for them.

• B y providing people with more empowered technology,

growth by optimising processes with intelligent automation, by augmenting human labour and physical capital, by creating new customer experiences, and by propelling new innovations. More

businesses will transform their relationship with people

importantly, these new technologies are tools that can transform

from provider to partner.

our thinking about how growth is created, introduce new sources

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training, especially for people who are disproportionately affected in

people to drive growth in business.

employment and income; create adaptive, self-improving regulation to keep pace with technological change; and integrate human

THE POWER OF EMERGING TECHNOLOGY

intelligence with machine intelligence by reconstructing work to

The 4th IR is a collection of technologies whose value can

take advantage of the respective strengths of each.

only be fully captured when several of them are combined.

This combinatorial innovation offers powerful possibilities for

Success will also depend on ecosystem participation, including

business-model transformation.

partnerships with startups, universities and individual experts to access knowledge and skills at scale.

Amazon Go promises a new kind of physical store with no checkout required. It uses the same types of technologies used

International companies will also want to use a multi-location

in self-driving cars: computer vision, sensor fusion and deep-

research and development strategy to capture local nuances – for

learning algorithms. Amazon reached this point by investing

instance, an algorithm using retail intelligence may work well in

heavily in technology research and development and filing a

the United States, but not in the Chinese market.

EDITORIAL | THE 4TH IR

of growth, change how work is done and reinforce the role of

patent in 2014 for the underlying technology.

A multi-location strategy can also prompt world-class innovations Other companies that see similar potential for change are setting up

– for instance, Korea’s global edge in intelligent display systems

in-house technology labs or acquiring and investing in technology

that feature in smart cars. Location strategies will reflect

startups. But not all businesses warrant such significant financial

increasing geographic specialisation of AI and the emergence of

investments to develop emerging technologies in-house. Instead,

different AI hubs.

collaboration may be key. For instance, a credit-scoring simulation tool that enables quick decision-making on prospective customers

To leverage the power of the 4th IR, CEOs must put emerging

may be a bank’s competitive differentiator, and the bank may do

technology at the heart of organisational strategy, ensuring their

well to own the intellectual property of the underlying algorithm.

enterprises harness two complimentary factors: technology and

Conversely, a chatbot to engage with the bank’s customers could

people. This is because the ability to integrate technologies

simply use an external partner’s technology.

with diverse talents will determine success. South Africa is at an

“WILL THE COUNTRY BE LEFT BEHIND IN THE TRANSFORMATION PROPELLED BY THE 4TH IR?” FUTURE SUCCESS

inflection point where we have an opportunity to fully embrace the

To prepare organisations for a successful future within the

4th IR and emerging technology.

4th IR, policymakers must clear the path to an emerging future by preparing the next generation accordingly, prioritise

Failing to do so will make economic and national success

attending to infrastructural barriers and foster a collaborative

almost impossible as we miss out on the impact and benefits of

ecosystem across pillars to support technology development.

emerging technology. But if we strive to be a leader in the 4IR by educating and reskilling our talent, create a supportive regulatory

Business leaders will need to integrate emerging technology

environment, and create incentives for human/technology

into their strategies and create a new playbook that empowers

collaboration in the workspace, we can, and absolutely will,

people to do what they do best – imagine, innovate and create

reignite growth and position ourselves for future success.

– and create value for customers.

Transforming the relationship between humans and machines, South Africa is facing myriad structural and cultural hurdles, as well

reimagining business models and processes, creating a thriving

as social dilemmas, which may hamper or delay businesses and

ecosystem, and unlocking trapped value of data are key

governments from fully integrating emerging technologies into the

ingredients for future success. When emerging technology is

economy, ultimately impacting the potential upside to growth and

implemented responsibly, people will use it, enabled by the 4th

competitiveness that these exciting technologies present. South

IR, to amplify human existence and improve how we live, work

African companies will also need to emphasise education and

and play.

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CORPORATE CITIZENSHIP: STRATEGY OR TRAGEDY?

As the National Development Plan (NDP) aims to eliminate poverty, and reduce unemployment and inequality by 2030, the private sector is expected to help realise these goals. With the pressure to support the NDP, sought-out initiatives to which the private sector has contributed (directly or indirectly) include economic development, employee equality, improving the quality of workforce through skills development, rural development, social cohesion and entrepreneurship.

This begs the question: How effective and transparent are these initiatives?

Streamlining an organisation’s strategy to factor in the above has the potential to positively make a difference to those impacted by it. The challenge organisations often encounter in a strategic initiative of this type is the belief that capital is required to drive it.

Think of it like this: if your business is taking strain, instinctively you identify ways to mitigate risks through innovation, diversification in revenue streams, new products or services and so forth. By being forced into this situation, we consciously put in an effort to execute our strategy successfully. Similarly, as leaders, should we not consider an organisational culture that replicates this result for voluntary strategic initiatives – especially those that have the potential for positive economic and social impact?

How do we make voluntary strategic initiatives a mandatory part of our organisational strategy?

CORPORATE CITIZENSHIP Hiten is currently the CFO of PRP Solutions, and was selected as a 2019 finalist for SAICA’s prestige Top 35 under 35 event. As an accomplished and responsible leader, Hiten operates with the highest integrity. His knowledge, gained through practical real-life experiences, is used to assist businesses and entrepreneurs to be sustainable for the future.

The impact organisations have on society today is a core strategic component of brand image and identity. Corporate citizenship is no longer a corporate social responsibility initiative or marketing gimmick, but rather an executive leadership business strategy – one that defines an organisation’s identity. Research by Deloitte in 2018 reveals that eliminating poverty and reducing unemployment and inequality is gaining global popularity as a hot topic for discussion. Interestingly, the research reveals that organisations are not willing to wait for political solutions but prefer addressing these critical problems proactively.

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ADVERTORIAL | PRP SOLUTIONS

AUTHENTIC CITIZENSHIP STRATEGY

proven results in the elimination of poverty, reduction in

The current era of social enterprise, this is an ideal

to create continuous commitment and authenticity behind

opportunity for organisations to make citizenship a core part of their strategy and identity. Leaders need to communicate a single, comprehensive authentic strategy which defines the organisation’s purpose. Subsequently, organisational leaders should be held accountable for the outcomes of these strategies.

Successful and authentic citizenship stems from how your organisation impacts society, how well your product or service meets people’s needs, what your impact on the community is, how your employees feel about their jobs, and so forth.

unemployment and inequality. This inherently has the potential citizenship strategies. As a knock-on effect, this recognition may create a competitive landscape environment where organisations automatically digest authentic citizenship strategies in line with their brand image and brand identity.

We all have a role to play in moving our nation forward. We need both sectors – public and private – to play their part in advancing the South African economy. The support of the one for the other will inherently eliminate impediments to a successful future.

The authenticity of these diverse activities is what shifts corporate social responsibility to authentic citizenship strategy. Window-dressing these activities as corporate social responsibility can bypass an organisation’s potential to positively impacting economic and social development.

Assuming this authenticity is maintained, another question is: Should organisations not be fairly recognised and acknowledged for their efforts?

CITIZENSHIP STRATEGY RECOGNITION (CSR) Even though corporate citizenship is gaining rapid popularity, there still remains a grey area: Is it mandatory or voluntary?

The saying “you scratch my back, I scratch yours” holds true. If the National Planning Commission expects to achieve Vision 2030 successfully with the support of organisations, there needs to be recognition for business leaders who have

Switchboard: (011) 293 0500 Physical Address: 260 Surrey Avenue, Ferndale, 2194 Postal Address: PO Box 412, Pinegowrie, 2123 Email: support@prpsolutions.co.za / sales@prpsolutions.co.za Support Line: 0861 000 476 Website: www.prpsolutions.com

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THE TIME IS NOW FOR BUSINESS TO UPLIFT SOCIETY Although the notion of shared value, corporate social investment (CSI) and businesses giving back to the communities in which they operate is nothing new, it is becoming more imperative for businesses to integrate the well-being of society into their core objectives.

In many instances contributing to society is a secondary objective

This is the difference between development and pure

for businesses, and yet without a healthy flourishing society, we

philanthropy. For example, any business should be able

cannot be successful.

to manage skills development; however, it will need to consider which skills lead to employment and fill the

South Africa is currently facing many challenges, and while

skills gap in South Africa.

government has outlined key priorities in the National Development Plan 2030 (NDP), businesses need to both align and contribute to addressing these challenges.

2. For real impact you need to look beyond your own business It is true that businesses should continue to upskill their own employees and manage their sustainability in terms of both the

Some of the main issues we face include unemployment,

environment as well as the economic health of the company.

employment equity, lack of transformation and environmental

Having said that, for a business to have a wider impact on

sustainability – these areas should be translated into what we

society, it also needs to enable its suppliers through enterprise

do as businesses. We should be aligning ourselves to the agenda

and supplier training and development, as well as provide their

of government and start reporting on what we as businesses are

customers with solutions that impact society. If we are not

doing to uplift South Africa.

enabling other businesses through the work we do as companies, then we are missing opportunities for these businesses to grow

For the past five years Siemens has taken this approach and

and in turn contribute to the growth of the country.

translated it into a “business to society” approach whereby we take the development of the country and embed it into our

3. Measure, report and evaluate

business model. We have made an effort to report on how we

It is critical to not only set goals against your efforts to

have added value to society and how we contribute to the

uplift society, but also to measure the outcomes report on

country by showcasing results.

them to track year-on-year improvements and evaluate your programmes to ensure they remain both relevant and effective.

In doing so we have seen great results in creating more than

This should be done annually in alignment with the social,

1 500 jobs, growing our female workforce to 28.6% of the

economic and political climate of the country, with a consistent

company, maintaining B-BBEE level 2 status and enabling our

focus on the needs of the community.

customers to lower their carbon-dioxide emissions. Over the past few years we have recognised the following key learnings in contributing to society: 1. If you stimulate the right growth in society, your

As a global business, we take key learnings from our other operations; however, everything we do is localised for impact.

Businesses can no longer afford not to contribute to society. If

business grows

we don’t uplift the communities in which we operate, our future

When businesses aim to put society at the centre of what they

in South Africa will also be affected. By building the country in

do, it is imperative to firstly understand societal needs and

line with both its potential and challenges, we are building a

secondly be able to link them back to your business offering.

destination attractive for investment, growth and development.

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SABINE DALL’OMO: LEADING THE CHARGE ADVERTORIAL | SIEMENS

Regarded as one of Africa’s most influential women in engineering, Siemens Chief Executive Officer for Southern and Eastern Africa, Sabine Dall’Omo, has consistently put her best foot forward and broken boundaries in this male-dominated field.

With 25 years of experience, she has worked tirelessly to push the continent forward in terms of science and technology by ensuring that innovative ideas are harnessed into tangible solutions for society.

Not only does she oversee more than 100 businesses in South Africa, Sabine is also the President of the German Chamber of Commerce and Industry, and the Board Chairperson for Siemens Nigeria and Siemens South Africa’s Employee Share Ownership Programme. Additionally, Sabine holds board positions at the German-Africa Association (Afrika-Verein) and the Impilo Consortium.

Outside the office, Sabine has a passion for everything aviation. This qualified pilot has travelled extensively throughout Africa, taking in majestic views while frequenting craft markets. She continues to learn about new and different types of fabrics and textiles.

In her travels, Sabine always promotes the Proudly South African brand and strongly believes that corporates should include it in their daily operations.

1985

1986–1989

1990–1995

Sabine graduates from Heinrich-Thoene College with a Higher Commercial Certificate.

Completes vocational training at Siemens Germany.

Takes on the responsibility of Commercial Officer: Accounting Services and shortly thereafter Commercial Officer: Sales.

1996–1997

1998–2001

2001–2004

Her path leads her to California, USA where she is a Financial Analyst for Siemens Rolm Communications, after which she returns to Siemens Germany as Senior Financial Officer: Corporate Planning & Controlling.

Becomes Commercial Manager for a Siemens’ Automation and Drives business in Germany, a position she holds for over three years.

Progresses to Commercial Manager for the Siemens Automation and Drives Office in Shanghai, China until 2004.

2004

2008

2012

2014

Joins Siemens South Africa as Head of Risk and Controlling, Mergers and Acquisitions where she is instrumental in executing major transactions.

Remains in this function until 2008 when she takes over the commercial responsibilities for Siemens Healthcare.

Is appointed Chief Financial Officer of the Siemens Cluster Africa.

Becomes Chief Executive Officer of Siemens Southern and Eastern Africa.

CONTACT US: Physical address: 300 Janadel Avenue, Halfway House, Midrand, Gauteng,1685 Telephone: 011 652 2000

|

|

Postal address: Private Bag X71, Halfway House, 1685

Website: www.siemens.co.za

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PROFILE | KING SABATA DALINDYEBO TVET COLLEGE

KING SABATA DALINDYEBO TVET COLLEGE OVERVIEW

PARTNERSHIPS, DEALS, MERGERS AND ACQUISITIONS

King Sabata Dalindyebo TVET (KSD TVET) College has seven

A range of supporting initiatives through strategic partners ensures

campuses strategically positioned to serve 28% of primarily

the provision of programmes that are relevant and speak to the needs

indigent communities in the rural areas of the Eastern Cape. The

of communities served. The partners are local and include: district

seven campuses are spread across four local municipalities (KSD,

municipalities, government departments and agencies which form

Nyandeni, Ngcobo and Mbhashe) and three district municipalities

inter-governmental relations with participants who hold meetings

(OR Tambo, Amathole and Chris Hani).

regularly to address issues at hand; local, provincial and national businesses that participate in student and lecturer placements,

ACTIVITIES AND OPERATIONS

funding and donations; international partnerships (Isle of Wight

Over the years, these campuses have re-aligned curricula to

College, UK Leadership Exchange Programme and HWK Erfurt TVET

respond to the socio-economic challenges and needs of the

Partnership Project (Germany) for motor and diesel mechanics);

communities by offering a targeted programme qualifications

SAMSA, which provides backup in the introduction of maritime

mix: engineering, IT, tourism, hospitality, transport and logistics,

studies and oceans economy; Nelson Mandela Foundation, which

water and waste water treatment, agriculture, business studies,

introduced coding to youth; NEMISA, which trains youth in e-skills;

occupational skills and part-time studies with plans for e-learning

AB350, which provides support in diesel mechanical engineering;

and open-learning. As a TVET college, KSD TVET takes pride in

Sekhukhune TVET College, which provides support in artisan training

skilling and developing students who could not finish Grade 12

(electrical and diesel mechanical engineering); Furntech for SME

or who achieved very low pass rates that would not allow them

incubation and cabinet-making training − and a number of SETAs

university entry.

that have improved the placement of students for work-integrated learning, among which are FP&M SETA, CETA, MICT SETA, ETDP

EXCITING HIGHLIGHTS OF THE YEAR

SETA, MerSETA, W&RSETA, PSETA, MQA and LG SETA.

The college has had a very productive year. To mention just a few highlights: a fully constituted council; graduations with increasing

RESPONSE TO THE FOURTH INDUSTRIAL REVOLUTION

numbers of students each year; a tripartite partnership (KSD Local

KSD TVET College council, management and staff regard the

Municipality, SAMSA & KSD TVET College) which is opening new

institution as the most innovative in the area of ICT as the

avenues for communities with prospects of boat building, maritime

college has made strides within a short period of time to turn the

recreation and engineering programmes; and a skills exchange

institution around from ineffective to highly effective. The aim is

programme with HWK Erfurt TVET Partnership Project (Germany)

to excel through innovations brought on by ICT. This is in line with

for motor and diesel mechanics.

the KSD TVET College slogan “conquer through technology”.

CONTACT US Mr ZM Kahla, Communications and Marketing Manager c: 076 017 5591 t: +27 (0) 47 505 1000/5 e: zkahla@ksdcollege.edu.za Dr ZJ Ndamase, Deputy Principal: Partnerships & Innovation Development c: 082 820 9077 t: +27 (0) 47 505 1066 e: zjndamase@ksdcollege.edu.za

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SKILLS | ECONOMIC GROWTH | INVESTMENT

SUMMIT 20 – 21 JUNE 2018 AWARDS 21 JUNE 2018 EMPERORS PALACE, JOHANNESBURG Join The National Debate @Vision2030sa #Vision2030

Vision2030summit

V i s i o n 2 0 3 0 S u m m i t a n d Awa rd s

To p c o m e d i a t v

To p c o m e d i a _

www.vision2030.co.za

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MEET THE MAIN PLENARY SPEAKERS #VISION2030

TSHEDISO MATONA

SABINE DALL’OMO

BONANG MOHALE

Head of Secretariat The National Planning Commission of South Africa

CEO Siemens MEA

CEO Business Leadership SA

@TshedisoMatona

@bonang_mohale

DR NKOSAZANA DLAMINI-ZUMA

SIYABONGA GAMA

SY MAMABOLO

Minister in the Presidency: Planning, Monitoring and Evaluation

CEO Transnet

CEO The Electoral Commission of South Africa

@dlaminizuma

@SiyabongaGama01

PROFESSOR ARTHUR MUTAMBARA

ASHWELL JENNEKER

DR SETUMO MOHAPI

Former President of ANA and former Deputy Prime Minister of Zimbabwe

Deputy Director-General: Marketing, Communication and Publishing, StatsSA

CEO SITA

@amutambara

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@SiemensAfrica

@ashwellashwellj

2019/11/11 4:03 PM

Recent research conducted nationally by NPO ACTIVATE! Change Drivers has proved that social youth networks form an integral part of a viable economic development strategy

ACTIVATE! Change Drivers is a national non-profit organisation in South Africa with the primary objective of equipping the youth to become active citizens in order to influence and promote positive change in their communities. ACTIVATE! has trained and empowered more than 3 400 young South Africans in previously

CONNECT

disadvantaged communities since it was launched by Siyashesha Leadership Incubator seven years ago, creating a network of change agents who have a daily impact on their communities.

EQUIP

Its youthful change drivers, known as Activators, have contributed a staggering R31-million worth of free volunteer hours to the South African economy to create social change according to the 2018 ACTIVATE! YouCount research survey.

In more recent ACTIVATE! research released in July 2019,

Activators are equipped with personal development and growth, to support them in driving public innovation.

Activators are connected to each other, to resources, to thought leaders, and to socio-economic opportunities through the creation of shared spaces for meaningful engagement and collaboration.

INSPIRE Activators are inspired by, and in turn inspire, the South African public through stories of impact, innovation and socio-economic opportunities.

PROVOKE

INFLUENCE

Activators provoke public debate with new ideas, approaches, dialogues and opportunities.

Activators influence South African society at a personal, interpersonal, local and national level.

ADVERTORIAL | SIYASHESHA LEADERSHIP INCUBATOR

EMPOWERING THE YOUTH TO BUILD A BETTER SOUTH AFRICA

ACTIVATE! programmes are grounded in these five pillars.

titled The Impact of Social Youth Networks in South Africa, the role of young Activators in their networks was analysed, establishing that social youth networks form an

The youth can be catalysts for social change in their communities if

integral part of any viable economic development strategy,

their voices are integrated in public decision-making nationwide; instead

particularly in countries such as South Africa, where

of having an entire generation labelled as ‘victims’ of a broken system.

development is still “uneven, fragile and difficult”.

“Youth development programmes needed to be strategic in their efforts to collaborate with the youth and drive change,” Dr Mutami.

“Young people, when capacitated with the right skills and knowledge, motivation and resources, are capable

The latest research reveals that the concept of local, on-the-ground, social

of initiating ripples of positive change in their local

networks − and their likely impact − stems from three key concepts: centrality,

communities. Crucial to the development narrative is

cohesion and structural equivalence (patterns of connections).

energising and supporting social networks for youth development to transform societies for the good of all,”

Overall, research reveals that the ACTIVATE! network has managed to

says ACTIVATE! social scientist, Dr Cephas Mutami, who

positively impact South African communities, particularly at the local level.

conducted the research.

“Young people should not be seen as the problem, but as a critical mass for driving positive change in communities,” Dr Mutami.

In addition, ACTIVATE! research has found that social programmes that reach young people and offer them a

“Through ACTIVATE! programmes, we have created an experiential learning

positive outlook for the future, help them avoid indulging in

journey to enable a young person to discover their own learning potential so

risky behaviour and pull them out of unsafe environments –

that they can generate a better tomorrow for themselves and their country as

which is a key objective of ACTIVATE! youth programmes.

whole,” ACTIVATE! CEO, Chris Meintjes.

OUR OFFICES: Western Cape: The Station, 177 Main Road, Muizenberg, Cape Town, 7945 I 087 820 4873 Gauteng: 708 South Point Corner, 87 De Korte Street, Braamfontein I 087 820 4874

KwaZulu-Natal: 4th Floor Cowey Park Unit 401B, 91–123 Problem Mkhize Rd, Essenwood, Berea, 4001 I 087 820 4875

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SUMMIT HIGHLIGHTS MR TSHEDISO MATONA Head of Secretariat at the National Planning Commission stated that the NDP is not a plan for government, it is a plan for the country and everyone needs to play their role, both the public and private sector.

HON. DEPUTY MINISTER ANDRIES NEL The Deputy Minister of COGTA, highlighted how skills, growth and transformation are critical to local government delivering on their mandates. He also spoke about how COGTA had outlined a strategy to deal with the shortfalls of local government.

BONANG MOHALE The CEO of Business Leadership SA gave a thought provoking speech, with a call to action for all South Africans.

SIYABONGA GAMA The CEO of Transnet outlined some of the challenges and shortfalls of the SOE but also looked at the way forward, a way to grow and be more inclusive. He said that international partnerships, disruptive technologies and innovation are required in order to work towards African growth and development.

PROF RENUKA VITHAL Honorary Professor of Mathematics Education in the School of Education, University of the Witwatersrand spoke on the pertinent issue of mathematics education in our country, emphasising how access to quality schools and basic tools such as calculators can play a role in the outcome of a student.

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SY MAMABOLO The CEO of The Electorial Commission of South Africa stated that accountability is the cornerstone of our democracy and noted that the NDP aims to unify South Africans, encouraging us all to be involved in curating the future.

SITHEMBELE SENTI The SITA Executive for Multistakeholder Projects spoke about how government’s plans to digitalise in an effort to maximise service delivery and ensure that everyone can have access and dialogue with government.

SABINE DALLÓMO The CEO of Siemens highlighted that “it can be done’’, when corporates aligns themselves with the country’s goals.

ASHWELL JENNEKER The Deputy Director-General: Marketing, Communication and Publishing, StatsSA stated that we are an evidence-based nation and we must know and understand the challenges facing us.

Join The National Debate

@Vision2030sa #Vision2030

Vision2030summit

V i s i o n 2 0 3 0 S u m m i t a n d Awa rd s

To p c o m e d i a t v

To p c o m e d i a _

www.vision2030.co.za

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DECOR STYLING PARTNER

TRAVEL PARTNER

MEDIA PARTNERS

P

13 4 | VISION 20 3 0 , O UR F UTUR E O UR P LAN , V O L 4

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LEADERSHIP DEVELOPMENT PUBLIC SPEAKING DEBATING

TSHIMONG GROWING CITIZENS

Tshimong is a social enterprise strengthening, multiplying, and amplifying the voices of young people.

Led by a team of servant leaders, Tshimong provides private and public sector entities with a one-stop service to undertake debating, public speaking and leadership training programmes in line with various social responsibility objectives.

Physical Address: The Formation, No. One Eloff, Salisbury Claims, Johannesburg 2001 | Telephone: 064 963 9644 | Email: info@tshimong.co.za | Website: www.tshimong.co.za

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MEET OUR ESTEEMED JUDGES

ABBAS JAMIE Director - Innovation & Transformation Aurecon Group

NTUTHUKO MELUSI BHENGU Commissioner National Planning Commission of South Africa

PASCAL SIPHELELE ZULU HR Director UNISA

EDNA MONTSE Head: Diversity & Inclusion, RBB Barclays SA

SIPHAMANDLA WELCOME ZONDI Head of Political Sciences University of Pretoria

KEITUMETSE LEBAKA Acting CEO Cathseta

COLIN LESHOU Provincial Manager: Gauteng Province Small Enterprise Development Agency

MOTHUNYE MOTHIBA CEO Productivity SA

SIFISO CELE HR Executive ABSA Group

For more information about the judges, visit vision2030.co.za/awards/#Judges2018

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MEET THE WINNERS

I C T AWA R D

I N F R A S T R U C T U R E AWA R D

E N E R G Y AWA R D

AG R I C U LT U R E AWA R D

I N D U S T R I A L AC T I O N P L A N AWA R D

H E A LT H CA R E AWA R D

s p o n s o re d by P u b l i c S e c to r Manager

S M M E AWA R D

D R I V E R F O R C H A N G E AWA R D s p o n s o re d by S A B C Marianna Dipiloane Phutsisi Motheo Tvet College

E D U CAT I O N AWA R D s p o n s o re d by H R D C

Highly Commended

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Highly Commended Steven Zwane Youth Leadership & Entrepreneurship Development

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OUR AWARDS VIP SPEAKER, MC AND ENTERTAINMENT VIP SPEAKER Dondo Mogajane, Director General: National Treasury

Mr. Mogajane joined National Treasury in 1999 as Deputy Director and has worked in various areas including, Intergovernmental Relations, Provincial Budget Analysis and International Economic Relations divisions. Between 2007 and 2010, he represented South Africa at the Executive Board of the World Bank, as Senior Advisor for Africa Group 1 countries. Between 2010 and May 2014, Mr. Mogajane was appointed as the Chief of Staff in the Ministry of Finance and later, as acting Chief Operating Officer from May 2014 until May 2015. He was later appointed Deputy DirectorGeneral, responsible for the Public Finance division at National Treasury; a position he occupied from June 2015.

MASTER OF CEREMONIES Julia Stuart

Julia Stuart, affectionately known as Jules, is a Sports Presenter on SuperSport, features on SuperSport Blitz as a Voice Over and has a sports column in the Daily Voice newspaper. She holds a degree in Film and Media from the University of Cape Town and Honours in media theory and practice.

ENTERTAINMENT Femi Koya Band

A story of migration resonates in this music, which creates a conscious dialogue between West African and South African sounds. This musical fusion demonstrates the path to a new and culturally integrated Africa in which a common heritage is reinforced to meet the needs of today’s world. Femi Koya’s quest is for African unity at a time when the continent should claim its rightful and proud place in the world.His music is evidence of the rich melodies that result from this fusion. Through his versatility on the saxophone, Femi Koya breathes new life into African world music. Celebrate Africa’s love of life with infectious dance numbers that life the soul and move the feet.

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BUSINESS CARDS ABSA

ACSA Violet Motshe

Bakang Letshwiti

Brand Manager 24 Johnson Road, The Maples Office Park, Bedfordview, Johannesburg, 2007

15 Alice Lane, Sandton, 2196 Tel: 0117727157 Email: bakang.letshwiti@absa.co.za Website: www.absa.co.za

BMW

Tel: 0117231400 Email: violet.moatshe@airports.co.za Website: www.airports.co.za

Gauteng Provincial Legislature Zanele Mkhize Public Sector Sales Specialist

Thebe Khumalo

1 Bavaria Avenue, Randjespark, Ext 17, Midrand, 1685

43 Rissik Street, Johannesburg, 2000

Communication Unit

Tel: 0114985948 Email: TKhumalo@gpl.gov.za Website: www.gpl.gov.za

Tel: 012 522 2749 Email:governmentsales@bmw.co.za Website: www.bmw.co.za

Gautrain Management Agency Ingrid Jense

Michael Radzilani

Executive Manager: Reputation Communication and Marketing

Assistant Director: Admin, Coordination and Communication

44 Grand central Boulevard, Grand Central, Midrand, 1682

6 Floor Ndinaye House, 178 Francis Baard Street, Pretoria 0001

Tel: 0110863525 Email: ingridj@gautrain.co.co Website: www.gma.gautrain.co.za

Tel: 012 943 2912 Email: Radzilani.m@dhet.gov.za Website: www.hrdcsa.org.za

Johnson & Johnson

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HRDC

KFC

Aluwani Museisi

Andra Nel

Manager government Affairs & Policy

CSI Manager

2 Medical Suite, Halfway House Midrand, 1685

33 Sloane Street, Knightsbridge Office Park, Bryanston, 2021

Tel: 0112651000 Email: amuseisi@its.jnj.com Website: www.jnj.com/tag/south-africa

Tel: 0117909000 Email: andra.nel@yum.com Website: www.order.kfc.co.za

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King Sabata Dalindyebo TVET College

Majuba TVET College

Dr Z.J. Ndamase

Sanele Mlotshwa

Marketing and Communications Manager

Principal

R61 QueenstownRd, Cicira village Mthatha, 5099

83 Allen street, Newcastle, 2940 Tel: 0343264888 Email: sanelezitha@yahoo.com Website: www.majuba.edu.za

Tel: 0475051000 Email: zjndamase@ksdcollege.edu.za Website: www.ksdcollege.edu.za

Motheo TVET

Mylan SA Kumaraswamy Ekhambaram

Thabiso Mofokeng

Head of Government Affairs

Assistant Director: Marketing and Communications

Building 7, Greenstone Hill Office Park Emerald Boulevard, Modderfontein Edenvale, 1609

St Georges St, CBD, Bloemfontein, 9301 Tel: 0514069300 Email: mofokengte@motheotvet.co.za Website: www.motheotvet.co.za

Petroleum Agency SA

Tel: 0114511300 Email: Kumaraswamy.Ekhambaram@mylan.in Website: www.mylansa.co.za

PRP Solutions Hiten Keshave

Mauricha Manus

CFO

Promotions Coordinator

260 Surrey Avenue, Randburg Johannesburg

7 Mispel Street, Tygerpoort Buiding Belville, 7530

Tel: 0112930500 Email: hiten.keshave@prpsolutions.co.za Website: www.prpsolutions.com

Tel: 0219383546 Email: ManusM@petroleumagencysa.com Website: www.petroleumagencysa.com

Qhubeka Forensic Services

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SAIPA

Jessica Dennison

Kerry Hodgkinson

PA to Cjief Executive Officer

Brand, Communications & PR Manager

386 main Road, Bryanston, Sandton Johannesburg, 2191

SAIPA House, Howick Close, Waterfall Park Vorna Valley, Midrand, 1685

Tel: 0861111956 Email: jessica@qforensic.co.za Website: www.qhubekaforensics.co.za

Tel: 0112077840 Email: KHodgkinson@saipa.co.za Website: www.saipa.co.za

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Sandvik Mining RSA (Pty) ltd Vusi Mnguni

Gabrielle Venter

Human Resource Development Manager

Manager: Media and Stakeholder Relations

64 Jet Park Rd, Jet Park, Ext 15 Johannesburg, 1462

643 Leyds Street, Muckleneuk, Pretoria

Tel: 0119295300 Email: vusi.mnguni@sandvik.com Website: www.rocktechnology.sandvik

Tel: 0124265258 Email: gabrielle.venter@sanparks.org Website: www.sanparks.org

Sea Harvest

Sentech Anthea Abrahams

Given Wageng

Group Corporate Affairs Manager

Corporate Affairs and Communications

Government Jetty Saldanha road Saldanha, 7395

Sender Technology Park, Octave Street Honeydew, Gauteng

Tel: 0227014100 Email: antheaa@seaharvest.co.za Website: www.seaharvest.co.za

Tel: 0114714400 Email: wagengg@sentech.co.za Website: www.sentech.co.za

SERR Synergy

Siemens Elsie Ellis Digital Communications Strategist Alenti Office Park, Block E, 457 Witherite St The Willows Ext 82, Hartebeestpoort 362-Jr Pretoria, 0081 Tel: 0834466303 Email: communications@serr.co.za Website: www.serr.co.za

Siyakha Implementation Partners Mathapelo Maliehe National Marketing Coordinator Siyakha House, 3 Eaton Ave, Bryanston Sandton, 2191 Tel: 0117069006 Email: mathapelo@siyakha.co.za Website: www.siyakhaimplementationpartners.co.za

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SANParks

Sarita Gouws Events and Sponsorships Manager 300 Janadel Avenue, Halfway House Midrand, South Africa, 1685 Tel: 0116522000 Email: sarira.gouws@siemens.com Website: new.siemens.com

Siyashesha Leadership Incubator Kim Barlow Marketing Manager 177 Main Road, Muizenberg Cape Town, 7945 Tel: 0878204873 Email: kim@activateleadership.co.za Website: www.activateleadership.co.za

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SPAR

Telkom Kevin O Brian Group Sustainability and risk Executive

Building 1, Silver Stream Office Park 10 Muswell Road, Bryanston Johannesburg, 2149

22 Chancery Lane, Pinetown, KZN, 3610 Tel: 0317191900 Email: kevin.obrien@spar.co.za Website: www.spar.co.za

Tshimong

Website: www.telkom.co.za

Tshwane South TVET College Maud Pitikoe

Busisiwe Mkumbuzi

Acting Marketing Manager

Director

85 Francis Baard Street, Pretoria Central, 0001

44 Springbok Street, Randfontein, 1759 Tel: 0649639902 Email: bmkhumuzi@tshimong.co.za Website: www.tshimong.co.za

ubank

Tel: 0124015000 Email: maud@tsc.edu.za Website: www.tsc.edu.za

Uconomy Anne Williams Manager: Communications, PR & Events Manager ubank House, 10 Matuka Close, Erand Gardens, Extension 49, Midrand, 1685 Tel: 0115185000 Email: Anne.Williams@ubank.co.za Website: www.ubank.co.za

UMGENI

Rusha Malan Operations Project Manager u7 Ferndale on Republic, Republic Road Ferndale, Randburg, 2194 Tel: 0716876791 Email: rusha@uconomy.co.za Website: www.platform.uconomy.co.za

Umsizi Sustainable Social Solutions John-Mark Kilian CEO

Website: www.umgeni.co.za

4 Coram Office Park, 86 Ferero Street Randpark Ridge, 2156 Tel & Fax: 0117912157 Email: johnmark@umsizi.co.za Website: www.umsizi.co.za

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