Vision 2030 Publication 2015 full book by Topco Media

“We, the people of South Africa, have journeyed far since the long lines of our first democratic election on 27 April 1994, when we elected a government for us all.” V i s i o n S ta te m e n t , O u r f u t u re – m a ke i t wo r k , N a t i o n a l D eve l o p m e n t P l a n 2 0 3 0 , E xe c u t i ve S u m m a r y

CONTENTS 18

THE ABC OF THE NDP

Letter from the Editor 9 Foreword by Minister in the Presidency, Jeff Radebe 11 Letter of endorsement from National Planning Commission Secretariat 12

CHAPTER 1

18 The ABC of the NDP 30 Interview with Minister in the Presidency, Jeff Radebe 38 Profiles of the Founding Commissioners of the NDP 42 Interview with Trevor Manuel 50 The NDP and embracing the social compact by Elias Masilela

CHAPTER 2 Sponsored by the Office of the Premier KwaZulu-Natal 56 Interview with the Premier of KwaZulu-Natal

CHAPTER 3

Mining remains Africa’s greatest hope by Trueman Goba 66 Interview with the Minister of Cooperative Governance and Traditional Affairs 72

CHAPTER 4

MINING REMAINS AFRICA’S GREATEST HOPE

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Interview with the Minister of Public Enterprises 78 The role of infrastructure in building the South African economy by Stephen Timm 82 Interview with the Minister of Human Settlements 88 Interview with the Minister of Public Works 92

CHAPTER 5 SMMEs: the sleeping giant of the South African economy by Stephen Timm 98

CONTENTS

108

INTERVIEW WITH THE MINISTER OF TRADE AND INDUSTRY

116

INTERVIEW WITH CHRISTO WIESE

Interview with the Minister of Trade and Industry Interview with Christo Wiese

108 116

CHAPTER 7 Sponsored by PRASA 124 Transport in the NDP by Philip Harrison

CHAPTER 8

South Africa’s global icons

138 SA’S GLOBAL ICONS

CHAPTER 6

138

CHAPTER 9 The rise and rise of financial services in South Africa by Dougie Oakes Interview with the Minister of Finance

162 168

CHAPTER 10 174 Interview with the Minister of Water Affairs and Sanitation 184 How does one develop a service culture in South Africa? by Stephen Timm

CHAPTER 11

218

INTERVIEW WITH THE MINISTER OF BASIC EDUCATION

Ensuring a responsive, accountable, effective and efficient local government system by Pascal Moloi

194

CHAPTER 12 Education and skills development by Marcus Balintulo and Percy Moleke Interview with the Minister of Science and Technology Interview with the Minister of Basic Education

200 210 218

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223

INTERVIEW WITH THE MINISTER OF HEALTH

236

THE IMPORTANCE OF THIS YEAR’S UNFCCC COP21 FOR DEVELOPING COUNTRIES BY DOUGIE OAKES

252

THE NDP’S VISION FOR GROWTH AND EMPLOYMENT BY MIRIAM ALTMAN

CHAPTER 13 Interview with the Minister of Health

223

CHAPTER 14 Interview with the Minister of Police

228

CHAPTER 15 The importance of this year’s UNFCCC COP21 for developing countries by Dougie Oakes

236

CHAPTER 16

258

REPORT ON VISION 2030 SUMMIT

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In pursuit of a comprehensive economic transformation agenda by Bridgette Gasa The NDP’s vision for growth and employment by Miriam Altman Report on Vision 2030 Summit Announcement of the New National Planning Commissioners Business card listing

246 252 258 268 270

FEATURED CLIENTS Please see page 270 for Business Card Listings

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of of of of

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When President Jacob Zuma decided to appoint the National Planning Commission to devise a plan for the future of South Africa, he indicated his seriousness by appointing one of his most senior ministers to head it up and he positioned it in the Presidency. He also made sure that the Commission consisted of independent thinkers who could, without political interference, produce a workable plan. This plan is known as the National Development Plan (NDP), commonly referred to as Vision 2030. Most people agree that the NDP is impressive and, if we implemented even half of what is outlined in the document, South Africa would be a significantly different place in 2030. If the NDP had to be summed up in one sentence, one would say that its intention is to deal with the triple challenges of unemployment, poverty and inequality. It starts with a diagnosis of what is wrong in our country and then proceeds to offer various suggestions as to how we can deal with these problems. As expected, it is a document that would require for its success much adaptation – not only among government officials but also among other sectors of society. While there are people who believe that the government is no longer committed to implementing the NDP, this is not true – based on the interviews and research we conducted for this publication. Government remains committed but they have had to be realistic about the best way to implement programmes towards the realisation of the NDP. The NDP remains at the heart of everything that government does. It has become part and parcel of all the government’s medium-and long-term strategies. However, there still remains a concern about the commitment of the private sector to the implementation of the NDP. Too many private sector companies are still pointing fingers at the government without doing anything about implementing the recommendations of the NDP. This, of course, goes against one of the key recommendations of the NDP, which is the creation of an active citizenry. What this means is that all of us need to take responsibility for our own future. The days of depending on government to do everything for us are over. This publication, and the conference that we hosted on the NDP in June this year, is part of Topco Media’s commitment to making the NDP a reality. We support the NDP wholeheartedly

and remain convinced that it is the best plan for our country. As such, we will do everything in our power to make sure that more people know and understand what is contained in this plan, so that they can help us monitor its progress. All South Africans have a responsibility to make sure that we implement the recommendations and findings of the NDP. We owe it, not only to ourselves, but also to our children and their children. We hope that you enjoy reading this publication and that it will inspire you to do your bit for our country’s future.

Ryland Fisher Editorial Director

V I S I O N 2 0 3 0 , OUR F UTURE OUR P L AN | 0 9

EDITOR’S LETTER | RYLAND FISHER

LET’S DO IT FOR OUR CHILDREN

K E Y C O N T R I B U TO R S “ Fo l l ow i n g S o u t h A f r i c a ’s c e l e b ra t i o n s o f 2 0 ye a r s o f f re e d o m a n d d e m o c ra c y t h i s ye a r, i t i s n ow t i m e to b e g i n l o o k i n g towa rd s o u r f u t u re .” KHULEKANI MATHE Acting Head of Secretariat, National Planning Commission The Presidency

MIRIAM ALTMAN Founding member of the National Planning Commission Head of Strategy, Telkom

PHILIP HARRISON

MARCUS BALINTULO

BRIDGETTE GASA

TRUEMAN GOBA

Founding member of the

Founding member of the National

Founding member of the

National Planning Commission

Planning Commission

National Planning Commission

Former Vice Chancellor and

Managing Director, The Elilox

Executive Chairman of Hatch Goba South African Research Chair

Principal of Water Sisulu

Group

in Development Planning and Modeling at the University of

University

the Witwatersrand

DOUGIE OAKES Writer, editor, speechwriter and copywriter

ELIAS MASILELA

PASCAL MALOI

PERCY MOLEKE

STEPHEN TIMM

Founding member of the National

Founding member of the

Programme Manager: Research

Journalist and writer

Planning Commission

National Planning Commission

and Policy Department of

Founder: Small Business Insight

Director, DNA Economics

Managing Partner of Modiro

Planning, Monitoring and

Pascal Moloi Consulting

Evaluation, The Presidency

CONTRIBUTORS BEA DROST

JOHN KRUGER

ZANELE TWALA

Policy analyst National Planning Commission Secretariat

Sector expert National Planning Commission

Senior expert

ASHRAF KARIEM

ZAMA NDLOVU

Senior expert National Planning Commission Secretariat

Communications specialist National Planning Commission

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National Planning Commission

JEFFREY THAMSANQA RADEBE MINISTER IN THE PRESIDENCY THE NDP, GOVERNMENT AND BUSINESS WORKING TOGETHER FOR A BETTER SOUTH AFRICA In 2009, we realised that there were two serious shortcomings in government and the country. One related to performance monitoring and evaluation and the other to long-term planning. To correct this, two ministers were appointed in the Presidency and assigned these two important tasks. The late Minister Collins Chabane was appointed to establish and head the Department of Performance, Monitoring and Evaluation; and former Finance Minister Trevor Manuel was appointed to head up the National Planning Commission (NPC) which consisted of highly respected individuals and experts from all areas of society. Members of the Commission were chosen with the assistance of the public. The Honourable Cyril Ramaphosa, now Deputy President of the Republic, was appointed as the Deputy Chairperson of the NPC. The mandate of the NPC was to formulate a vision of a society in which we want to live by 2030 and attain the goal of a united, democratic, non-racial, non-sexist and prosperous society as defined in our Constitution. The areas of expertise of the NPC Commissioners included economics, finance, social services, rural development, energy, public policy and governance, infrastructure development, urban and regional planning, education and training, health, agriculture and food security, climate change, local government and scenario planning. The Commission formally presented the National Development Plan (NDP) to the President at a joint sitting of the National Assembly and the National Council of

Provinces on 15 August 2012; a remarkable achievement in a relatively short time. In brief, the NDP identified one of the major issues that we need to address as South Africans as the triple challenge of poverty, inequality and unemployment. The NDP was endorsed by all political parties represented in the fourth democratic parliament, as well as by most organised formations in South Africa. There is universal agreement that this Plan will make South Africa a better place for all, one in which everyone will have equal opportunities to realise their full potential. In the past few years, the NDP has become more and more integrated into the work of government. Progressively, we are breaking down the silos in the working of government departments and now have a situation where all departments work with the vision of the NDP in mind. To give expression to this, we have rearranged the composition of government clusters and ensured that the Medium Term Strategic Framework is designed as an implementation framework of the NDP. Throughout the country wonderful work is being done to implement the NDP but the major weakness is that it is not always communicated properly.

all we want them to do is to acknowledge when positive things happen â&#x20AC;&#x201C; and there are many positive steps being taken on a daily basis in South Africa. Among them are the number of jobs we continue to create in a stifling international economic environment. We have established major infrastructure programmes and we are addressing the challenges that could impact the successful implementation of the NDP, such as our energy challenges, crime and education. The other weakness relates to the involvement of the private sector in taking ownership of the NDP. Now, more than ever, we need partnerships between government and business to take our country to a different level. If we all agree that this is our Plan, then we all need to play a role in making it a reality. This publication, and the Vision 2030 Summit that preceded it, is an important private sector initiative, which has been endorsed by the National Planning Commission Secretariat, to ensure that government and business work together to make South Africa a better place for all our people.

This could be due to a deficiency in our own communication mechanisms; it could also be that the media in South Africa tends to want to focus on the negative and ignore the positives. However, we have never asked the media to ignore the negatives; V I S I O N 2 0 3 0 , OUR F UTURE OUR P L AN | 1 1

FOREWORD | MINISTER IN THE PRESIDENCY

FOREWORD

ENDORSEMENT K H U L E K A N I M AT H E

A C T I N G H E A D O F S E C R E TA R I AT N AT I O N A L C O M M I S S I O N P L A N N I N G

COLLABORATION BETWEEN THE NATIONAL PLANNING COMMISSION (REPRESENTED BY DEPARTMENT OF PLANNING, MONITORING AND EVALUATION) AND TOPCO MEDIA TO CREATE VISION 2030 PUBLICATION AND SUMMIT Following South Africa’s celebrations of 20 years of freedom and democracy this year, it is now time to begin looking towards our future. The National Planning Commission, mandated by government to develop a long-term vision and strategic plan for South Africa, produced the National Development Plan (NDP). The NDP, in general terms, seeks to accelerate the growth of the South African economy through the development of national infrastructure, human and institutional capabilities. The Plan is a comprehensive and effective strategy to ensure South Africa’s long-term sustainability as a leading African and global nation. It was developed through an intense process of consultation, including over 10 000 participants from all corners of the country’s economy, including both the public and private sectors. There is a need for continued engagement and

1 2 | VISION 2 030, O UR FUT URE O UR PLA N

dissemination of information on the NDP. Topco Media’s Vision 2030 Publication and Summit seek to engage with both the public and private sector and reflect on what government departments are doing to align with the NDP, and unpack the investor community’s role in making the Plan a success. By identifying the challenges that exist and issues that need to be addressed, and engaging with key stakeholders about solutions and the best way forward, the Summit will become the most important tool to ensure the success of the NDP. Topco’s previous publications and events, including South Africa 20 Years of Success: Business & Government, South Africa: The First 10 Years, and The Nelson Mandela Years, along with its annual events such as the Oliver Empowerment Awards, the National Business Awards and Top Women in Business and Government

Awards makes it the ideal company to collaborate with in this endeavour. The National Planning Commission supports Topco Media in this endeavour and fully endorses the Vision 2030 Summit as the key tool for engaging with the public and private sectors on the NDP.

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CHAPTER ONE I N T R O D U C T I O N TO T H E N AT I O N A L D E V E LO P M E N T P L A N

“The South African economy needs to grow by 5.4% per year over the next 15 years and create more than 11 million new jobs.” 1 8 | VISION 2030, O UR FUT URE O UR PLA N

MANY TIMES BETTER THAN THE PRESENT By Khulekani Mathe, Ashraf Kariem, John Kruger, Zanele Twala, Zama Ndlovu, Percy Moleke and Bea Drost Will South Africa meet the National Development Plan’s (NDP) objective of having small and expanding firms create 90% of the 11 million jobs targeted for 2030?

The National Development Plan was formulated against the backdrop of the crippling global financial crisis (GFC) of 2008 which had a profound impact on many countries. Many economies experienced a decline or complete reversal of growth; millions of people lost their jobs and were thrown into the streets as they failed to pay their mortgages. It will take years for many countries to fully recover from the effects of the GFC and while the jobs lost may be regained, the suffering caused will never be reversed and the time lost will never be recovered. The NDP puts forward proposals for driving social and economic transformation over a long period of time while taking into account the effects of the GFC and other key forces shaping society. Such forces include demographic changes, urbanisation, the rapid growth of Africa and opportunities this presents, technological changes, globalisation, climate change and the shift of economic power from the west to the east. Taking these forces into account, the NDP responds to South Africa’s challenges inherited from centuries of colonialism and decades of apartheid government rule.

No magic wand will miraculously solve South Africa’s challenges. A multi-faceted approach involving all critical stakeholders is required. For this reason, the NDP proposes actions in a number of areas. Some highlights of the main actions recommended in the NDP are provided in this article.

ECONOMY AND INFRASTRUCTURE

The South African economy needs to grow by 5.4% per year over the next 15 years and create more than 11 million new jobs. To achieve this, the nation will need to address a number of challenges to ensure better education outcomes, a healthier population, better located and maintained infrastructure, a sound social safety net, a capable state and much lower levels of corruption. Higher levels of GDP growth require higher levels of investment. Investment as a share of GDP needs to rise to 30% by 2030. This can be achieved through increasing domestic savings as well as attracting foreign investment. Focus will need to be directed towards removing constraints to growth, such as energy generation and distribution, urban planning approval processes, skills development, water supply and waste water treatment and licensing for

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THE A B C OF T HE N DP – BUI LDI NG A FUTURE

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South Africa will need to focus on sectors and clusters that enable the country to grow in a faster and more inclusive manner. These include the agro-industrial cluster, the minerals and metals cluster, manufacturing, construction and infrastructure, green economy, the finance sector and retail and business services. The projected demand for some of South Africaâ&#x20AC;&#x2122;s main commodities over the long-term, indicates that they have the potential to contribute to growing our share of exports and stimulate the growth of domestic sectors linked to the export sectors. The Plan shows that a large percentage of the jobs will be created in domestic-oriented activities and in the services sector. Based on employment trends, the NDP projects that as many as 90% of the new jobs will be created in small and expanding firms and the share of output in small and medium sized firms will grow substantially. The success of these enterprises requires that attention be paid to creating a supporting regulatory environment. Rural areas must become vibrant economies based on their potential, enabling economic participation in rural areas to rise from 29 to 40%. This can be achieved through reforming land tenure, supporting smallholder and emerging farmers, expanding social services, expanding infrastructure, higher agricultural output, mining social investment and building vibrant tourism enterprises. The NDP is based on the idea that development is essentially about how we upgrade our endowments continuously and for the benefit of all citizens. In the context of the NDP, endowments include human capital such as education, skills and health as well as physical capital such as schools, clinics, roads and ports and power stations which are required to provide the opportunities for people to live the lives that they desire. Endowments also include technologies, management capabilities and a range of social institutions. If we are not able to continuously upgrade our endowments, we are unlikely to progress as a country. Enabling everyone to play a role in the development of the country will to lead to more equitable growth and a fairer sharing of the fruits of growth. People are able to upgrade themselves

and improve their position through work and earnings if they are part of the development process. Failure to directly involve all of the countryâ&#x20AC;&#x2122;s people in the growth process leads to higher levels of inequality. Youth unemployment is recognised as a major challenge facing the country. There is a need to improve access to lifelong learning opportunities and career advancement, stabilise the labour environment by improving dispute resolution and workplace relations, strengthen the labour courts and ensure the Commission for Conciliation, Mediation and Arbitration has access to adequate resources as well as review regulation and standards for small and medium enterprises. The most important task is to strengthen the accessibility and effectiveness of the post-school training system. This needs to be accompanied by policies to match job seekers with employers, thereby bringing down the cost of searching for and starting work. Some of the measures proposed in the NDP to help young people find work include: driver training for school leavers, a tax subsidy for employers to reduce the initial cost of hiring young people entering the labour market and facilitating agreement between employers and the unions on entry-level wages. Subsidies to help the placement sector prepare matric graduates for work and place them into work opportunities are also proposed alongside extending the Expanded Public Works Programmeâ&#x20AC;&#x2122;s employment incentive to the non-state sector, aimed at increasing employment in non-profit organisations. The NDP outlines the investment required in terms of physical infrastructure covering sectors such as energy, roads, rail, ports and Information and Communications Technology (ICT), as well as how to finance the investment.

EDUCATION AND TRAINING

The NDP sets out a broad vision and framework for improving education outcomes, enhancing productivity and contributing to economic growth and living standards. It acknowledges gaps and quality challenges across the education system from early childhood development (ECD) and Grade R, to basic education, to the post-school education and training system and includes the research and innovation system. It focuses on improving access as well as quality of education.

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T H E A B C O F T H E N D P | K H U L E K A N I M AT H E

water, the logistics platforms, telecommunications, minerals and environmental permits.

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Expanding access while improving quality requires focusing on the supply and quality of educators at all levels including ECD practitioners, teachers and lecturers. Initial training of educators must be strengthened as well as the continuing training and assessment of teacher knowledge. The management of teachers – creating positive incentives to teach – also needs more attention to maximise actual instruction time by fighting absenteeism and non-teaching when in school, as well as boosting the motivation and morale of teachers. The NDP proposes a critical programme to build the next generation of university lecturers, while also ensuring the necessary gender and racial shifts and ensuring that they have the capacity to train college lecturers as the sector expands. Support for research is necessary to build innovation. In addition to improving human resources, adequate infrastructure and quality learner and teacher support materials are required to ensure effective learning, building on recent initiatives of supplying workbooks and approaches to textbook provisioning. The NDP is clear that additional resources will not be enough. Governance, accountability and management systems along the whole education pipeline – from ECD to higher education – will determine whether resources are used well and whether the education outcomes improve.

EARLY CHILDHOOD DEVELOPMENT

The early learning and development of South Africa’s children should be a top priority. This sets the strongest foundation for what happens later in life in both classroom and the workplace. Dedicated resources should be channelled towards ensuring that all children are well cared for from an early age and receive appropriate emotional, cognitive and physical development stimulation. Plans for ECD infrastructure and services need to differentiate between the needs of urban and rural areas. ECD services should be flexible and responsive to the needs of children, families and communities. Some services need to be targeted directly at children while others at their primary caregivers. It is also essential that everybody has access to services of a consistently high standard, regardless of who they are and where they live. All children from 0 to three years should have access to quality ECD programmes with a strong focus on nutrition and education, provided primarily by government. The NDP proposes a number of actions necessary to ensure every child has access to quality programmes. They include the following: • A nutrition programme for pregnant women and young children, followed by a childhood development and care programme for all children under the age of three • I ncreasing state funding and support to ensure every child has access to two years of early childhood development exposure before Grade 1 • S trengthening coordination between departments, as well as the private and non-profit sectors • S tandardising the guidelines, norms and standards for ECD programmes • E xploring the introduction of home and community-based ECD interventions • T raining of ECD practitioners, upgrading their qualifications and developing clear career paths • P roviding support to NGOs and other intermediary agencies to support community-based programmes

HUMAN SETTLEMENTS AND SPATIAL TRANSFORMATION

Where people live and work matters. Apartheid spatial planning has led to the majority of South Africans living far from places of work, with poor access to basic services and low levels of participation in the economy. This has not changed very much since we attained our democracy. There are no quick fixes for changing this and there are powerful interests concerned with maintaining the situation as it is. The considerable existing investment in fixed assets such as houses, roads, water schemes, schools, means that transformation will invariably be incremental as these assets cannot be moved to desirable locations without significant cost. More people need to live closer to their places of work; but better quality public transport is also needed to ensure that people can access work opportunities affordably. Some amendments are proposed to the human settlement policy framework to allow for greater levels of flexibility to accommodate people’s individual choices. The NDP also includes proposals to address the challenges in rural areas and address urban inefficiencies and urbanisation challenges. South Africa needs a spatial vision and framework to: • T ackle inherited spatial divisions – South Africa’s spatial structure perpetuates exclusion • U nlock development potential – many places are not growing economically because of a lack of infrastructure, inadequate skills, poor innovation capacity and weak governance • G uide and inform infrastructure investment and prioritisation – a spatial investment framework is needed to support growth and inform the long-term infrastructure investment strategy • M anage contemporary economic and demographic shifts – economic dynamics are produced by concentrating productive activity, entrepreneurs, workers and consumers in a place without congestion • F acilitate coordination between parts of government and other agents – spatial policy could be used to bring different actors and interests together to define a common future binding all sectors locally, provincially and nationally

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Expansion is required in ECD, upper secondary schooling, technical and vocational education (TVET) and higher education to cater for growing learning needs. While South Africa has almost universal enrolment up to the mandatory schooling age of 15, there is an extremely high dropout rate over the next three years with less than 40% of a cohort which started school 12 years previously passing Grade 12. Less than 20% of an age cohort enter university and, while the technical education sector has been expanding, it remains much smaller than the university system – meaning more than 70% of those who pass Grade 12 do not move into postschool education.

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T H E A B C O F T H E N D P | K H U L E K A N I M AT H E

Tony Hawk visits Indigo Youth Movement

All spatial development should ensure that the historic policy of confining particular groups to limited space and the unfair allocation of public resources between areas, is reversed and that the needs of the poor are addressed as a matter of priority. Sustainable patterns of consumption and production should be supported and ways of living promoted that do not damage the natural environment. Vulnerability to environmental degradation, resource scarcity and climatic shocks must be reduced and ecological systems should be protected and replenished. The appearance and functional features of housing and the built environment need to be improved to create liveable, vibrant and valued places that allow for access and inclusion of people with disabilities. Productive activity and jobs should be supported, and burdens on business minimised. A fundamental reshaping of the colonial and apartheid geography may take decades, but by 2030 South Africa should observe meaningful and measurable

progress in reviving rural areas and in creating more functionally integrated, balanced and vibrant urban settlements.

SOCIAL PROTECTION

Compared to most countries on the African continent, South Africa has a large social protection system made up of different elements. The first is the social assistance programme – child support, foster care, disability grants and old age pensions – which covers more than 15 million citizens out of a population of 54 million people. The second is the social insurance programme which caters for people who lose their jobs; compensates for injury suffered while at work and covers medical and other costs of victims of road accidents. The well-known providers of the different aspects of social insurance are the Unemployment Insurance Fund (UIF), Compensation for Occupational Injuries and Diseases and the Road Accident Fund (RAF). The coverage of the UIF and the Compensation of Occupational Injuries and Diseases is limited to formal sector and formal workers. While the RAF covers all victims of accidents, the top

income earners are served by a large and economically important occupational and private social protection system providing retirement, medical and contingency benefits. A large private funeral insurance system caters for lower income groups. Social protection has an important function to play in any country. It protects households against adverse events which often cannot be foreseen – commonly referred to as the safety net function. It also serves as a preventative measure by protecting people from experiencing a crisis or falling into poverty. Social protection systems also assist households in risk management and support the functioning of the labour market through funding the job search – and in the process make the movement from school to work, and from work to school, a lot smoother. The NDP identifies a number of critical shortcomings and challenges with regard to the current social protection system. There is a need to improve the administration of the social assistance programme and address the exclusion of the long-term unemployed or the unemployed who have not previously

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contributed to UIF. At the moment, there is no social protection for the bulk of those in their productive years (18 to 59). There is also a lack of support for caregivers of children. In the case of social, occupational and private social protection, coverage is slow and costly. Because of the contributory nature of social insurance schemes and the requirements for documentation and regularity, informal workers â&#x20AC;&#x201C; a group that is believed to be growing strongly in numbers â&#x20AC;&#x201C; is largely excluded. Government is taking steps to close the medical insurance gap. It is implementing a national health insurance system to deal with the coverage and quality problems in the currently tax-funded public health system serving the bulk (about 85%) of the population.

2 6 | VISION 2 030, O UR FUT URE O UR PLA N

As part of further improving social protection, the NDP calls for a determination of a decent standard of living which every household should be able to achieve. The fragmented governance and management of the social protection system, with a large number of funds, departments and regulators responsible for different aspects, needs to be resolved. The NDP realises the limits of income support on its own. It calls for measures to lower the cost of living by addressing the cost and effectiveness of key social and household services such as transport, water, electricity, sanitation, education and health care as well as prices of foods consumed by poor households.

BUILDING A CAPABLE AND DEVELOPMENTAL STATE

The success of the NDP depends on government playing a developmental and transformative role in society. South Africa requires well-run and effectively coordinated state institutions staffed with highly skilled public servants who are able to create and implement impactful policies that tackle the challenge of poverty, inequality and unemployment. The NDP proposes that the role of the Public Service Commission be strengthened to ensure that public servants adhere to norms and standards and to monitor the recruitment processes in government. An administrative head of the public service whose responsibility is to manage the career

T H E A B C O F T H E N D P | K H U L E K A N I M AT H E

progression of department heads should be established. There should be a hybrid approach to the appointment of top management that balances administrative and political priorities, while a purely administrative process should be followed for lower level posts giving senior administrators full authority over staff appointments. The public service should attract highly skilled people and cultivate a sense of common purpose and a commitment to developmental goals. The NDP proposes that a formal graduate recruitment scheme for the public service to attract dedicated young people should be established to develop skills and build an ethos of public service. A separate strategy is required to attract high calibre talent into local

government that ensures that citizens have access to high quality basic services. The NDP recommends that more emphasis be placed on experience and the expertise required for operating effectively at senior management levels.

to hold public officials accountable at the level at which services are delivered. Greater delegation of powers and responsibilities within departments is required to enhance staff morale, particularly for middle managers.

The governmentâ&#x20AC;&#x2122;s role in developing technical skills must be strengthened through a clear strategy to produce skilled professionals combined with providing a work environment in which professional expertise is recognised and valued. The public service needs career paths that enable experienced technical specialists to continue as practitioners without being diverted to a management career.

The link between the legislature and executive is critical. Parliament needs adequate support to ensure that it can play its role effectively. And the Presidency should play a stronger role in bringing different departments together to ensure more effective coordination.

The energy and experience of citizens should be harnessed, allowing for citizens

There is a need to improve the clarity of responsibility of different spheres and ensure that funding and planning reflects these differences. To address the lack of capacity in some municipalities, the

V I S I O N 2 0 3 0 , OUR F UTURE OUR P L AN | 2 7

creation of regional utilities should be considered. The powers to implement housing and land transport functions should be devolved to metropolitan municipalities and provinces with a clear focus aligned to their powers and functions. Leadership from several national government departments is required to identify and resolve on-going problems. Creating an enabling environment for local government that strengthens rather than merely adds additional regulatory and legislative burdens is necessary. There must be a proactive approach to improving intergovernmental relations and a longterm approach to building capacity. Citizen participation must be mainstreamed to

2 8 | VISION 2030, O UR FUT URE O UR PLA N

ensure that citizens are truly involved in the development of Integrated Development Plans (IDPs) with government going directly to communities. State-owned companies are critical in providing economic and social infrastructure and require clear mandates and simpler tasks. Governance structures need to be clarified and simplified. The powers and resources of independent regulators of state-owned companies must be clearly defined. Capacity constraints must be addressed through clear strategies for the development of skills and consistent funding models.

The different chapters of the NDP are interrelated and progress must be made in all areas in the Plan. The actions to realise the goals of the NDP require that all South Africans work together and take a longterm view of development. It requires a commitment to excellence and constant learning and improving. While it is necessary to respond to short-term challenges, they should not be allowed to distract us from the long-term goals. Consistency over a long period of time will deliver the results.

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THE NEW

BUILDING A POSITIVE FUTURE FOR SOUTH AFRICA

An interview with the Minister in the Presidency, Jeff Radebe by Ryland Fisher 3 0 | VISION 2030, O UR FUT URE O UR PLA N

A former chairman of the ANC in KwaZulu-Natal, he has been responsible for Transport, Public Enterprises, Public Works and Justice and Constitutional Development. It is his latest role, as Minister in the Presidency responsible for monitoring, evaluation and planning that puts him at the centre of government’s deliverables. The National Development Plan is key to the deliverables identified by government and falls within Radebe’s portfolio. For Radebe, it is important that people understand that the NDP is not owned by government, but that it should be owned by all South Africans. “The NDP is not only a plan of the government but a plan for the people of South Africa. The President made sure that the National Planning Commission is not a government entity but was constituted essentially by people outside of government,” said Radebe at his office at Tuynhuis, next to Parliament. “The President made sure that it had the legitimacy of being embraced by all South Africans. That is why we can say with no fear of contradiction that the vast majority of South Africans have adopted the NDP as a national plan for South Africa.

“It is a long-term plan, but we have created a five-year programme of action from 2014 to 2019, which we call a MediumTerm Strategic Framework (MTSE). This framework lists some of the things that need to be attained in order to ensure that this is a building block for our Vision 2030. For example, one of the aims is to focus on the issues around the economy and to aim for five percent economic growth. “We have not been able to attain this as yet because of the tight economic conditions, but the measures have been put in place. We want to increase the levels of investments into the economy by adding about 30 percent to the gross domestic product. One of the key things is to create an enabling environment for this economic growth to happen. “This is why the President is focusing his attention on the infrastructure development programme. In the past five years, we have already invested more than a trillion rand on infrastructure such as transport and energy. “Another important area in terms of implementing the NDP is to deal with the issue of the labour environment. The President and the Deputy President are always at meetings with business and labour to ensure that we can deal with labour issues so that there is a conducive environment.

“One of the key things is to create an enabling environment for this economic growth to happen. This is why the President is focusing his attention on the infrastructure development programme.” V I S I O N 2 0 3 0 , OUR F UTURE OUR P L AN | 3 1

INTERVIEW | JEFF RADEBE

Jeff Radebe is the longest-serving Minister in Cabinet, having served under all South Africa’s post-democracy presidents: Nelson Mandela, Thabo Mbeki, Kgalema Motlanthe and now Jacob Zuma.

Monitoring and Evaluation, Minister Jeff Radebe at the signing ceremony of National Youth Policy 2020 at the local youth office of the NYDA in Khayelitsha Western Cape.12/08/2015 Kopano Tlape. GCIS

“In his State of the Nation address, the President outlined the programme for this year which he called the Nine-Point Plan. On top of that agenda is the energy challenge, revitalising agriculture, and the issues around the private sector investment. “There have been various meetings that the President has convened, called the Presidential Working Group, in order to ensure that the private sector can come on board. Some of the issues we are focusing on include the infrastructure for ICT and the ocean’s economy, called Operation Phakisa. These are some of the initiatives to make sure that government is able to implement the NDP.

3 2 | VISION 2030, O UR FUT URE O UR PLA N

“There are also exciting initiatives that the President has initiated with the private sector and labour. The first is the National Education Collaboration Trust which was launched by government together with partners in labour, business and the education sector. This is strongly driven by the private sector. The CEO of FNB, Sizwe Nxasana, chairs this committee which is a platform for the private sector to make a meaningful contribution to developing and improving the educational outcomes, especially at a district level. They work closely with the Department of Basic Education because education is one of our number one priorities.

“The other priority is Operation Phakisa for the Oceans Economy. We are focusing on marine transport and manufacturing off-shore oil, gas exploration, aquaculture and the issues of marine services and government. We took this model of Operation Phakisa from the Malaysian model which seeks fast results and makes sure that all stakeholders have a role to play in the resolution of an issue. We need to understand what is needed to unlock the full potential of the ocean’s economy. “The government has established the office of the Chief Procurement Officer. Issues around corruption and maladministration, and procurement matters, have been of

“Also important is that the President has already signed into law the Public Administration Management Act which prohibits public servants from doing business with the state. This will eliminate conflicts of interest among public servants so that their job is not to do business for themselves, but for the people. “There is also the area of the Youth Wage Subsidies. As you may know, the Employment Tax Incentive Act that has been initiated by National Treasury will facilitate the entry of young people into the labour market. We believe that this will go a long way to making this possible. “Also of significance is that the President has created the Department of Small Business Development with the Minister as the head, as part of implementing the NDP because of the need for a greater role for small business in South Africa due to their job creating potential. “In a nutshell, this is what we are doing; but the main point is the MTSF because that is a five-year programme that effectively anchors the NDP into government. “Over and above that, the President has already signed performance agreements with all the ministers based on all 14 outcomes that are stated in the MTSF, including basic education, health, inclusive growth, employment creation, social cohesion, fighting crime and corruption, effective and efficient public service. “The thinking is that the ministers will then sign their performance agreements with their heads of departments and it will be cascaded down. From time to time, on a quarterly basis, through the department, the President will be monitoring performance of his ministers.

“Also important is that budgetary submissions are first checked by the Department of Performance Monitoring and Evaluation to make sure that the priorities that departments and ministers set for themselves are in line with the National Development Plan and the MTSF before they are submitted to National Treasury for budget allocations. In this way we will be able to anchor the system that our departed colleague, Collins Chabane, started in 2009.” Asked what would happen to ministers who did not deliver, Radebe said that Zuma has shown that he does not hesitate to reshuffle his Cabinet if he is not satisfied with the performance of his ministers.

“We are committed as a government to implementing the NDP and each and every one of us must live up to the commitment that we made to the people of South Africa which is contained in the ruling party’s manifesto of 2014.” Radebe said that if the implementation of the NDP is successful, ordinary people would see an improvement in the quality of their lives. “They can expect to see services that the government delivers being improved and see their children at schools and at universities so that they are able to enjoy the fruits of our democracy. “The President appointed an interim steering committee led by Minister Pravin

Gordhan of Cooperative Governance and Traditional Affairs to focus on the issue of service delivery. As a result of that initiative by the President, government has already adopted the ‘back to basics’ strategy which is aimed at alleviating, especially at local government level, the challenges that we face.” Radebe believes that power outages could have a significant impact on government’s ability to implement the NDP. “This is why the President assigned the Deputy President to head up the war room to deal with the energy challenge in South Africa. Without an adequate supply of energy, our economy will not be able to grow. “There is a plan to deal with this, even in the MTSF. We want to put into the national grid about 10 000 megawatts of electricity. Already we have invited the private sector to participate through the Independent Power Producers (IPP). We want to stream renewable energy and the progress that we are making has seen South Africa among the top ten in the world in terms of providing renewable energy. All these measures are aimed at ensuring that we have a proper energy mix in South Africa to attain the objectives of the growth that we want to see by year 2030.” Part of the implementation of the NDP was to ensure that South Africa became competitive internationally, said Radebe. “Last year the President sent the Ministers of Finance and Trade and Industry and myself to London to meet a group of international investors as part of our promotion of South Africa as an investment destination. This year, the President led a group of ministers and top officials to the World Economic Forum where the story of South Africa and the NDP was promoted. “We are part of BRICS, a very important bloc within world affairs, ensuring that we are able to attract investment from those countries. We are satisfied that with the work that we are doing, together with Brand SA, we are promoting our country.

V I S I O N 2 0 3 0 , OUR F UTURE OUR P L AN | 3 3

INTERVIEW | JEFF RADEBE

grave concern to the President and government. We now have a Chief Procurement Officer in the National Treasury and, as Minister Nene highlighted in the budget vote, all the infrastructure will be in place by 1 April to ensure that we get value for money and to have economies of scale when we purchase goods and services as government.

Monitoring and Evaluation, Minister Jeff Radebe accompanied by Deputy Minister Buti Manamela and NYDAâ&#x20AC;&#x2122;s Yeshen Pillay at the signing ceremony of National Youth Policy 2020 at the local youth office of the NYDA in Khayelitsha Western Cape.12/08/2015 Kopano Tlape. GCIS

3 4 | VISION 2030, O UR FUT URE O UR PLA N

Radebe said it was important for ordinary people to embrace the NDP. “We encourage all South Africans to read the NDP. We are in the process of translating it into various languages. We will have summaries done and are promoting the idea of citizens monitoring government. “We are very transparent. There’s a Presidential hotline where members of the pubic are invited to not only criticise government, but also make proposals of what to do. This citizen-based monitoring is of crucial importance. This is why every time we have made this assessment as government we put that information on the Presidential website so that people can see the progress, or lack thereof.” Radebe said the terms of the original National Planning Commissioners were coming to an end this year and there was a process under way to find new commissioners.

“The role of the National Planning Commission will continue because we have not yet completed the implementation of the National Development Plan. But the discussions have not yet been completed as to what format it will take. We are now no longer developing a plan, but executing its implementation.” Radebe does not believe that there should be more incentives for companies to implement the NDP. “There are various incentive schemes within the Department of Trade and Industry and I’m sure that if there is a specific proposal to be made, Minister Rob Davies would evaluate and asses those kinds of incentives.” Asked what kind of South Africa he envisions in 2030, Radebe said it is one in which young people feel proud to be South Africans. “We should not have only traditional types of economic activities. We should be unleashing the full potential of the ocean’s economy. We want to see a lot of scientists in the marine environment. We want to see South Africans, black South Africans, being trusted in shipping. We want to see them being inspired by the satellite that we are developing in the Karoo, so that the vision of the Freedom Charter, that people shall share in the country’s wealth, is not only in theory but in practice.”

“I would like to see a South Africa where our young people feel very positive about the future of our country, where the economy is vibrant, where there are many choices and opportunities for our people academically speaking, as well as in the sporting area and in the economy.”

V I S I O N 2 0 3 0 , OUR F UTURE OUR P L AN | 3 5

INTERVIEW | JEFF RADEBE

“I keep raising the same issue, that our partners in business and labour also have a key role in selling our country as a prime investment destination. With regards to our role in Africa, we are intensifying our efforts to be part of a united Africa that is integrated. Our President is the champion of infrastructure investment on the continent, as elected by his fellow heads of states.”

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countries across the continent creates opportunities for these entrepreneurs and emerging small businesses beyond South Africa’s borders.

Access to funding

energy efficiency and renewable energy. • The Thembani International Guarantee Fund supports business with a minimum of 51% BEE business in South and Southern Africa. The fund offers 50% and 75% guarantees to SME clients.

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SMEs fail, not forGuarantee lack of technical ability, but rather because of support will empower more SMEs to realise their ambition, business with a minimum of 51% BEE skills. business in 12 million corporate livelihoodscitizen, relying Absa directly on SMEs. Asover a responsible lends its support Access to funding a lack of general business contribute to sustainable growth in South Africa. South and Southern Africa. The fund offers 50% and to the national agenda to promote a thriving SME sector. Considering that five out of seven (or 80%) SMEs in 75% SME clients. Absafinancial Bank Ltdsupport (Absa),iswholly ownedofsubsidiary of of the South In While a key driver the success Africa fail in their two yearsAbsa of operation Absato has seven Centres of Entrepreneurship located across the addressing SMEfirst challenges needs to be innovative in guarantees Barclays Africa Group member of Barclays, recognises SME, access to markets and building business skills are also – mostly to cash-flow problems – it is clear that It can advance country with the purpose of providing a support environment its due approach to providing pioneering solutions. Access to non-financial support the importance of small businesses as catalysts for significant challenges to address. improved financial support empower more SMEs to SMEs. The centres are a perfect example of private and funding to SMEs thatwill have been awarded valid and viable Another critical challenge facing SMEs is structural in economic growth and job creation. to realise their ambition, andprinciples contribute sustainable public sector cooperation that have led to the costs traditionally contracts. Cash-flow aretothe primary lending drivers nature. SMEs fail, not for lack of technical ability, but Asenterprise a responsible corporate citizen, South Africa. The development offeringAbsa fromlends Absa its aims to open growthasinopposed associated with starting and running a business being reduced. to traditional collateral or security-based lending. rather because of a lack of general business skills. support to theby national agenda to promote a thriving doors for SMEs providing access in three key areas: markets, Services offered include everything from providing access to Absa has committed R250 million per annum in non-traditional SME sector. 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Like geographic location, size or BEE status. To date there USAID. This fund is offered to SMEs with insufficient any masterpiece it takes time, effort and some extra are 30 000 SMEs and 3 500 corporates actively using security for existing business and start-ups. The fund determination to get the ball rolling. By investing in the portal. is backed by a 50% guarantee. individuals, communities and enterprises, Absa, through • The SME Fund is offered to BEE SMEs who have been its Enterprise Development programmes, is changing The portal is part of Absa’s value proposition to go awarded contracts or tenders by Government. The the South African business landscape, one entrepreneur beyond banking and open doors by addressing a fund does not require security. at a time. primary obstacle facing SMEs. Furthermore, Barclays • In partnership with the French Development Agency, Absa Bank Limited Reg in No12 1986/004794/06 Authorised Financial Services Provider Provider incentive Reg No NCRCP7 Africa’s presence countries across the continent Absa Registered can offer Credit an exclusive in the form of a

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rebate of up to 7% of the total loan amount. This is

0860 040 302 / absa.co.za

Absa opens doors for SMEs Absa is investing in individuals, communities and enterprises and through its enterprise development programmes is changing the South African business landscape one entrepreneur at a time.

Small and Medium Enterprises (SMEs) play a vital role in a vast majority of economies. In South Africa, SMEs employ almost 60% of the employable population - with over 12 million livelihoods relying directly on SMEs. Absa Bank Ltd (Absa), wholly owned subsidiary of Barclays Africa Group member of Barclays, recognises the importance of small businesses as catalysts for economic growth and job creation. As a responsible corporate citizen, Absa lends its support to the national agenda to promote a thriving SME sector. While financial support is a key driver of the success of the SME, access to markets and building business skills are also significant challenges to address.

countries across the continent creates opportunities for these entrepreneurs and emerging small businesses beyond South Africa’s borders.

Access to funding

Considering that five out of seven (or 80%) SMEs in South Africa fail in their first two years of operation – mostly due to cash-flow problems – it is clear that improved financial support will empower more SMEs to realise their ambition, and contribute to sustainable growth in South Africa.

Access to markets

In addressing SME challenges Absa needs to be innovative in its approach to providing pioneering solutions. It can advance funding to SMEs that have been awarded valid and viable contracts. Cash-flow principles are the primary lending drivers as opposed to traditional collateral or security-based lending. Absa has committed R250 million per annum in non-traditional lending aimed entirely at the SME sector in South Africa. This is in order to fund SMEs that typically would not meet the normal lending criteria required by banks.

The portal is part of Absa’s value proposition to go beyond banking and open doors by addressing a primary obstacle facing SMEs. Furthermore, Barclays Africa’s presence in 12

Over and above the R250 million, Absa has created specialised non-traditional funding solutions to assist SMEs: • The Women Empowerment Fund provides credit to women entrepreneurs who have the skills and demonstrable potential to service their debts. The funding is available for all women SMEs who do not have sufficient security to start their businesses under ‘normal’ banking lending criteria. • The Development Credit Fund in partnership with USAID. This fund is offered to SMEs with insufficient security for existing business and start-ups. The fund is backed by a 50% guarantee. • The SME Fund is offered to BEE SMEs who have been awarded contracts or tenders by Government. The fund does not require security. • In partnership with the French Development Agency, Absa can offer an exclusive incentive in the form of a rebate of up to 7% of the total loan amount. This is for projects driving

The enterprise development offering from Absa aims to open doors for SMEs by providing access in three key areas: markets, funding and non-financial support (business support).

Access to markets is a more pressing obstacle facing SMEs than access to funding. The market exists, but the linkages don’t. Corporate buyers, for example, in terms of preferential procurement, face the challenge of locating and identifying suitable SME suppliers. And the SMEs in turn struggle with accessing these corporates in order to secure supplier contracts. Absa’s Procurement Portal – a virtual market place – creates the linkages between buyers and suppliers. SMEs on the portal are validated and verified. They are located using various searchable fields such as geographic location, size or BEE status. To date there are 30 000 SMEs and 3 500 corporates actively using the portal.

The National Development Plan (NDP) highlights the role of the Financial Services Sector in the context business small and medium energyofefficiency andexpansion, renewable energy. • The Thembani International Guarantee Fund supports enterprise growth, infrastructure development, business with a minimum of 51% BEEinnovation business in South youth development, job creation, and, and Southern Africa. The fund offers 50% and 75% guarantees ultimately economic expansion. The success of the to SME clients. NDP hinges on its effective implementation, which Access be to non-financial cannot achieved by support government alone. A joint and Another critical approach challenge facing SMEs is structural in nature.and collaborative by business, government, SMEs fail, not for lack of technical ability, but rather because of civil society is critical in ensuring that implementation a lack of general business skills. takes place in a consistent and coherent manner. The Absa has seven Centres across the NDP identifies a lackofofEntrepreneurship trust betweenlocated government country the purpose support environment and thewith private sector ofasproviding one of athe key challenges to SMEs. The centres are a perfect example of private and in achieving greater policy execution. This can be public sector cooperation that have led to the costs traditionally overcome through dialogue, which will help toreduced. shift associated with starting and running a business being Services offered include everything from providing accessand to entrenched positions, enable new perspectives infrastructure (computers and printers) and explore options for implementing the meeting NDP. rooms, to providing training seminars on various issues. Topics range from SARS and labour regulation to financial skills training. ItMentoring is in thisservices light that Absa has partnered with the are also provided.

CNBC, the Oliver-Adelaide Tambo Foundation and a Through non-financial offering,across Absa has helped over number of academicsupport institutions the country 42 000 SMEs develop their businesses in the past year through in order business to provide for networking. key stakeholders to training, tools,platforms seminars and By offering engage on challenges implementation non-traditional support, thefacing Centresthe of Entrepreneurship willof bring moreThe smalldiscussions businesses online and make it easierof forthe the plan. explore a number entrepreneurs to establish growas their businesses. plan’s economic driversand such energy, infrastructure development, agriculture, development Access to markets, funding andenterprise non-traditional support is a and shared outcomes of these discussions complexgrowth. recipe forThe a successful business. Like any masterpiece it takes and some determination to get the will be time, usedeffort to inform andextra accelerate execution of ball rolling. priorities, By investingwhich in individuals, communities and enterprises, these will contribute towards the Absa, through its Enterprise Development programmes, prosperity of both and society. is changing the Southstate African business landscape, one entrepreneur at a time.

0860 040 302 / absa.co.za

THE FOUNDING COMMISSIONERS OF THE NATIONAL DEVELOPMENT PLAN Five years ago, the founding National Planning Commissioners, under the leadership of former Minister in the Presidency, Trevor Manuel began work on formulating the plan to “build a state that will grow the economy, reduce poverty and improve the quality of life of our citizens.”

Trevor Manuel

Cyril Ramaphosa

Miriam Altman

Jerry Vilakazi

Trevor Manuel, former chairman of the National Planning Commission (NPC) is currently senior adviser and Deputy Chairman for Rothschild. He serves as Chairman for the Development Committee on the International Monetary Fund, is governor on the board of the World Bank and chairman of Finance and Investment Sector for South African Development Community. He previously served in government as Minister of Finance from 1996 to 2009; as Minister in the Presidency for the NPC from 2009 to 2014 and was the chancellor of Cape Peninsula University of Technology in 2008 for seven years.

Cyril Ramaphosa, a politician, businessman, activist and trade union leader is currently serving under Jacob Zuma as Deputy President. He played a vital role in the negotiations which freed South Africa from apartheid. Ramaphosa is the deputy chairman of the NPC and founding member of the National Union of Mineworkers. As Member of Parliament and Chairperson of the Constitutional Assembly, he was involved in drafting South Africa’s democratic constitution. On an international level, Ramaphosa is a member of the Coca-Cola Company International Advisory Board and the Unilever Africa Advisory

Miriam Altman served as an executive director at the Human Sciences Research Council (HSRC) from 2002 to 2010. She is head of strategy at Telkom and holds the position of Executive Director of the Centre for Poverty, Employment and Growth (CPEG). Altman has more than 100 publications and was commissioning editor for approximately 400 policy papers and publications in her division at the HSRC. She was a senior lecturer at the University of Witwatersrand in the Graduate School of Public and Development Management from 1995 to 2001 and a lecturer in the Department of Economics from 1991 to 1995.

Jerry Vilakazi originally trained as a teacher at the University of Zululand. He is a non-executive chairman of Netcare Limited, CEO of Business Unity of South Africa (BUSA), nonexecutive director for Goliath Gold Mining and former managing director of Black Management Forum. Vilakazi has his Bachelor’s degree from the University of South Africa (Unisa), Master’s degree from Thames Valley, Master’s degree from London University and an MBA from California Coast University.

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Anton Eberhard

Tasneem Essop

Bridgette Gasa

Joel Netshitenzhe is the non-executive director of Nedbank Group Limited. He works as an independent researcher and is the executive director of the Mapungubwe Institute for Strategic Reflection (MISTRA). He was head of the policy and coordination advisory unit in the presidency until the end of 2009. From 1998 to 2006, he served as Head of Government Communication and Information Systems (GCIS). He currently serves on the ANC’s National Executive Committee with a focus on the economic transformation and political education subcommittees.

Anton Eberhard directs the Management Programme in Infrastructure Reform and Regulation at UCT’s Graduate School of Business. He is a founding member of the Academy of Science of South Africa and serves on the NPC. He has worked in the energy sector for more than 25 years and was the founding director for the Energy and Development Research Centre. His research and teaching focuses on the restructuring and regulation of electricity sectors in Africa, investment challenges and linkages to sustainable development. He was the Director of the Energy and Development Research Centre from 1989 to 2000.

Tasneem Essop is the Minister of Environment, Planning and Economic Development of the Western Cape. She serves as International Climate Policy Advocate for the World Wide Fund (WWF) for Nature where she also serves as head of strategy. By profession, she is an educator and started her career in 1985 teaching English, history and guidance at Glendale Senior Secondary. After the first democratic elections, she became a member of the Provincial Legislature where she currently still serves as ANC’s Western Cape Spokesperson on Finance and Public Accounts.

Bridgette Gasa currently serves as the founder and Managing Director of the Elilox Group; she is a lecturer in construction management at Nelson Mandela Metropolitan University (NMMU) and sits as Chairperson of the Human Resources and Remuneration subcommittee of the board of PRASA. In 2008, Gasa was awarded the Leading Woman Scientist in Industry Award by the Department of Science and Technology.

Trueman Goba

Robert (Bobby) Godsell

Noluthando Gosa

Philip Harrison

Noluthando Gosa is the CEO of Akhona Properties and is Nonexecutive Director of various major property companies, such as Broll Property and Investec Asset Management. She was an investment banker at Investec Bank and a founding member of the first telecommunications regulator in South Africa, SATRA. She has won a number of awards including the Association of Black Securities and Investment Professionals and BMF Gauteng. She is a past nominee for CEO Magazine’s Most Influential Women in Business and Government in South Africa and first runner up for the Women Property Network’s achiever awards in 2006.

Philip Harrison is Chairperson of the National Research Foundation on Development Planning and Modelling at the University of Witwatersrand where he is a Professor in Urban and Regional Planning and former Acting Head of the School of Architecture and Planning. Harrison is Executive Director of Development Planning and Urban Management in the City of Johannesburg Metropolitan Municipality. He completed a Bachelor of Social Science degree in 1985 and a Doctorate of Philosophy at the University of KwaZulu-Natal.

Trueman Goba is the Executive Chairman of Goba (Pty) Ltd: Consulting Engineers and Project Managers. He received his Civil Engineering degree from the University of KwaZulu-Natal in 1979; a Master’s in Engineering from Cornell University (1986) and a Diploma in Public Policy and Development Administration at University of Witwatersrand (1994). He has also served as President for both SAICE and the Engineering Council of South Africa. Goba is an active mentor for young entrepreneurs for the Umsobomvu Youth Fund.

Robert Godsell is Chairperson of Business Leadership South Africa (BLSA) and was CEO of the South African gold mining company, AngloGold Ashanti from 1998 to 2007. He serves on the boards of the Industrial Development Corporation and the London listed Russian Gold and Silver mining company, Polymetal International. He is Co-Chair of the Millennium Labour Council. Godsell previously served as the Non-executive Chairman of Eskom Holdings from 2008 to 2009 and as President of South Africa’s Chamber of Mines. He is a council member at Vista University and a member of the Economic Advisory Council.

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F E AT U R E | T H E F O U N D I N G N AT I O N A L P L A N N I N G C O M M I S S I O N E R S

Joel Netshitenzhe

Mohammed Karaan

Vuyokazi Mahlati

Malegapuru Makgoba

Christopher Malikane

Mohammed Karaan is Dean of the faculty of AgriSciences at the University of Stellenbosch. He specialises in agribusiness management, supply chain management, informal markets and rural development as well as poverty issues. Karaan was chairperson of the National Agricultural Marketing Council and president of the Agricultural Economics Association of South Africa. He serves on the board of the Landbank and holds non-executive directorships with several agribusiness firms. Karaan holds an MSc and PhD in Agricultural Economics from Stellenbosch University.

Vuyokazi Mahlati is serving her second term as President of the International Womenâ&#x20AC;&#x2122;s Forum. She chairs the working group on the Capable and Development State on the NPC, as well as spatial transformation. She has held advisory positions to private and public sector institutions. Mahlati was the programme director in the Southern African region responsible for integrated rural development to the W.K. Kellogg Foundation (in USA) from 2001 to 2005. She is recognised as a global thought-leader and participates in think-tanks on corporate diversity leadership and inclusive development.

Malegapuru Makgoba has practised as an immunologist, physician and public health advocate and was Vice-Chancellor of the University of KwaZulu-Natal. He sits as Chair for the Rhodes Scholarship Selection Committee in KwaZulu-Natal and has been Speaker for the National Institute of Health since 2001. Makgoba was appointed as the first black Deputy Vice-Chancellor at the University of the Witwaterstrand in 1995. He has received multiple honours and distinctions including the Science for Society Gold Medal of the Academy of Science of South Africa (2002).

Christopher Malikane is an Associate Professor of Economics at the University of Witwatersrand. He holds a Doctorate in Economics from the New School for Social Research in New York and is a director of the Macro-Financial Analysis Group at the School of Economic and Business Sciences at Wits. His research areas include macroeconomics, monetary economics, financial economics, development economics, political economy and growth and business cycles. In 2007, the Edith Henry Johnson Memorial Award was presented to Malikane for an Outstanding Doctorate Dissertation in Economics from the New School for Social Research in New York.

Vincent Maphai

Elias Masilela

Pascal Moloi

Jennifer Molwantwa

Vincent Maphai was a former Director of South African Breweries (SAB) and Research Executive Director at the Human Sciences Research Council. He is Council Chair of the University of KwaZulu-Natal and Chairman of the National Responsible Gambling Programme (NRGP). He has received the Stanford Research Fellowship Award from Stanford University, the Princeton Presidentâ&#x20AC;&#x2122;s Award from Princeton University, Harvard, the South African Fellowship Award from Harvard University and the Golden Arrow Award.

Elias Masilela is the founding member of the Financial Sector Charter Council and CEO of Public Investment Corporation Limited. He is a Non-executive Director at Airports Company, South Africa and Head of Corporate Affairs, Head of Recruitment Reform and Executive Stakeholder Strategy at Sanlam. He is also the Head of Policy Analysis at Sanlam and former Acting Deputy Director-General responsible for Economic Policy in the Treasury. Masilela was appointed to the Board of the South African Reserve Bank in 2008, as well as the Board of the Government Employee Pension Fund.

Pascal Moloi is the managing director of the Resolve Group and former CEO of the Greater Johannesburg Northern Metropolitan Local Council. Moloi has fulfilled multiple public sector leadership positions, especially within the field of public sector management, change management and organisational design. He was previously the Director of the Local Government Unit for Planact. He is Secretary for the South African National Students Organisation (SANSO) and founding member of the Gauteng Institute of Local Government Managers.

Jennifer Molwantwa is a water scientist and manager of the hydrology unit at Digby Wells and Associates. Molwantwa is an active member of the Water Institute of Southern Africa. She is a qualified biotechnologist dealing with wastewater treatment and is a registered professional natural scientist with the South African Council for Natural Scientific Professions (SACNASP). Molwantwa is the recipient of the WISA Mine Water Division for the Best Paper presented by a student in 2004 and the Excellence in Research Award for a young scientist from the WISA/CSIR/ WRC in 2006.

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Ihron Rensburg

Vivienne Taylor

Karl von Holdt

Michael Muller is an Adjunct Professor at Wits University at the Graduate School of Public and Development Management. He is a professional and chartered engineer and Fellow of the South African Institution of Civil Engineers and the Water Institute of South Africa. Muller was Chairman of the Global Agenda Council on Water Security, Infrastructure Advisor of the Development Bank of Southern Africa, Director-General of the Department of Water Affairs and Forestry and a member of the Global Water Partnership Technical Advisory Committee in Stockholm from 2005 to 2011.

Ihron Rensburg is the Vice-Chancellor and Principal of the University of Johannesburg (UJ) and a former Deputy Director-General of the National Department of Education (1995 to 2001) where he played an instrumental role in the transformation of the South African educational system. Rensburg serves as a Councillor of the Association of Commonwealth Universities, Chairperson of the Ministerial Committee on Student Accommodation and chairperson of the Board of Trustees of READ foundation. He was awarded the Africa-India Leadership Award in 2011 for his outstanding contribution to leadership in Education in Africa.

Vivienne Taylor is Head of the Department of Social Development at UCT where she teaches social policy, development planning and social and economic development with more than 30 years’ experience. She has experience working within the United Nations with governments, in the nongovernmental sector and in academia. Taylor has over 60 publications and holds the following qualifications: Bachelor of Arts, Bachelor of Social Science Honours and Master of Social Science.

Karl von Holdt is the Director of the Society Work and Development Institute (SWOP) at the University of Witwatersrand. Von Holdt is a research specialist and co-ordinator on labour issues. His focus areas include projects on research and transformation intervention at Chris Hani Baragwanath Hospital and research into public hospitals. Van Holdt previously served as principal investigator for the SWOP research programme into collective violence and is an associate researcher into household livelihoods, strategies and reproduction.

SEE NEW COMMISSIONERS

O N PA G E 2 6 8 Malusi Balintulo Malusi Balintulo is the Vice-Chancellor of Walter Sisulu University. He has worked extensively as a lecturer of sociology in both national and international institutions. He is published in academic journals on a wide range of sociological topics since 1974. Balintulo completed his Bachelor of Arts Honours from the University of Fort Hare in 1964 and the University of Durham in 1969, a Doctorate in Sociology from the University of Warwick and a Doctorate of Philosophy from the same University in 1972.

Hoosen “Jerry” Coovadia Coovadia is Scientific Director at the Doris Duke Medical Research Institute at the University of KwaZulu-Natal. Coovadia was a Natal Indian Congress and United Democratic Front activist; he is an international Vice-Chair of the Paediatric AIDS Clinical Trials Group (IMPAACT), Deputy Chair of the Transitional National Development Trust, Co-Chair of the Advisory Board to the Artists for a New South Africa’s Amandla AIDS Fund and of the South African Academy of Science.

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F E AT U R E | T H E F O U N D I N G N AT I O N A L P L A N N I N G C O M M I S S I O N E R S

Michael Muller

THE MAN WHO LEAD OUR NATION’S PLAN

An interview with Trevor Manuel by Ryland Fisher

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It’s difficult not to address Trevor Manuel as “Minister Manuel”. After all, he was the world’s longest-serving Finance Minister – 13 years in all (1996 to 2009) out of a total of 20 years in government. He started out as Minister of Trade and Industry in 1994 and ended up as Minister in the Presidency responsible for Planning from 2009 before retiring last year. We interviewed him in January 2015, seven months after he stepped down and found him as contemplative as ever. Perhaps even more so because he no longer had to worry about saying and doing things in accordance with being a government minister. Not that Manuel ever let that stop him from expressing his views as freely as possible. Asked whether he was getting used to a new pace of life, he said he was still struggling with finding the balance between how he spends his time. “After the intensity of the 20 years as a minister I had arrived at the conclusion that I must step aside. Also, I don’t see leadership responsibilities as being permanent. I’ve always considered myself privileged to have been afforded opportunities to lead at a fairly young age.

I was 27 when we launched the UDF. I was 34 when I was elected to the NEC of the ANC, and 38 when I became a minister. And the only way to repay society is to create opportunities and plough back. “If the move had been sudden and external to me it may have been a little bit different. But this allowed me to kind of think through these issues. I didn’t want to go rushing into anything and so I spent some time clearing my desk, clearing my head. I think I’m still, seven months after the event, trying to get the balance between how I spend my time. I know that it must involve something that will give me an income and an opportunity to work with other people on a voluntary basis. I am very conscious of this.” Manuel had spent his last few years in government leading the process of developing the National Development Plan. Was it difficult to let go? “You know, I was faced with a strange set of circumstances in 2008. When I resigned, after Thabo Mbeki was recalled, I explained to anybody who wanted to listen, that ministers are appointed by the President, and when you recall the President, the new President must have a free hand to appoint all ministers.

“After the intensity of the 20 years as a minister I had arrived at the conclusion that I must step aside.” V I S I O N 2 0 3 0 , OUR F UTURE OUR P L AN | 4 3

INTERVIEW | TREVOR MANUEL

Trevor Manuel: Minister of Trade and Industr y (1994 to1996); Minister of Finance (1996 to 2008); Chair man IMF (2000 to 2008); Minister in the Presidency: National Planning Commission (2009 to 2014), currently senior adviser to the Rothschild Group worldwide and deputy chair man of Rothschild SA.

“You may recall that when my letter of resignation leaked, the rand went into a freefall – so whereas there had been a lot of resistance to my appointment as Finance Minister, 13 years into the job there had been a conflation of my personality with the portfolio. This was bad – bad for democracy. because then people begin to think that they’re indispensable. “I didn’t want to return in 2009 and I didn’t want to negotiate, but I said I couldn’t go back to the finance portfolio, come what may. The incoming President Zuma understood that and said he wanted me to do something else. “Heading up the National Planning Commission was very different because it took me half a step outside government. We tried to draw skills and experience from outside of the public sphere. The President said in his speech at the inaugural meeting of the Planning Commission in 2010: ‘I want you to take the independent, critical look and make suggestions about the long term’. “It took me out of government but it also placed me in a different situation because I was sitting in a commission of 25 people who were peers with different experiences. It was a very good experience. “Whilst the Planning Commission was independent and not responsible for implementation, if I had to rethink, it’d probably come closer to where we are now, which is to tie it up with performance, monitoring and evaluation. “I would use the space in-between to design, with departments and government agencies, the implementation schedule and the measurement for implementation and to measure performance, so that you’re closing the loop in a very particular way. The Planning Commission’s work is front end, but there’s still a lot of work that is incomplete. If you looked at the Green Paper on the Planning Commission that was agreed to in Parliament in 2009, there are still a number of issues that must have attention from a crosscutting body – and the Planning Commission remains well-positioned to do this. I’m thinking of something like food security.

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“There’s also a question that we didn’t properly have time to get around to and that was what actually do we do as a country in Africa? What is our footprint? If we are going to play a peace-making role, how does that impact on the shape and composition of the defence force? “Even from the initial conceptualisation of the Planning Commission’s work, there are a number of areas that we haven’t got around to that remain open-ended, What is important is we don’t become too proprietary about anything. “The current commissioners’ five year term of office ends in 2015. I don’t know what call the President will make. I hope that the interventions are timeous and that the mandate of the next Planning Commission is actually entrenched. It’s very important because I think what the Planning Commission was able to do was give a sense of nation-building around particular topics. You’ve got to see these things through. There is an opportunity now to refresh or amend the mandate. It is going to be very important.” Manuel feels that, despite what appears to be a lack of urgency around the NDP, government remains committed to implementing the Plan. “The commitment is there. In Davos, President Zuma spoke about it and I have no doubt that he’ll build his State of the Nation address around it (which is what happened). “The communications challenge is it’s not just saying that you are committed but it’s actually showing your mettle on these issues. There are some things that are going to be fundamental to fixing the problems. For instance, you must deal with the behaviour of public servants, whether we are talking of the observations that countless people made about police

conduct in the face of xenophobic acts or whether we’re talking of education which is still separated into education for the few and education for the many. “We need to look at the role that trade unions play in looking not at the developmental imperative (including in areas like education) but only at their members and defending their members regardless. Or we need to look at the fact that the public health sector is available to 83% of our population but it’s funded very poorly and even where there is funding there are issues you can’t explain. You can’t explain why there are no essential medicines or what happened to the bedding in hospitals. You can’t explain why hospitals are dirty. “These are issues of public services, which present the face of government to the majority of South Africans. If you make a call that democracy is care driven, it has to care for the most vulnerable – so the issue of public service is very important. “The quality of public service is important and somebody must take responsibility. By addressing those kinds of issues you can actually take huge strides in creating a better sense of implementation and I think it’s in those kinds of areas that you create a different sense of national pride. It goes beyond just rolling out more and more infrastructure.” Manuel has always insisted that all South Africans should take ownership of the NDP and he believes this is happening. “I have seen NGOs convening meetings to discuss important issues and meetings where school principals have invited the private sector to talk about the challenges facing education. As a result, the private sector is getting involved in education and raising money for schools. There seems to be healthy cross-pollination. “But we must also address the issue of taking competent teachers and turning them into HODs and principals because that is the only way in which they can earn a little bit more. It’s a complex situation because you are taking competent teachers away from teaching and you’re putting

people in a position to manage others without them being properly trained. “This seems like a small interaction, but it has massive implications. The fact is that there are business people who want to do things. It is a source of hope. Nationally there are people who are prepared to give up their time and energy to make a difference to our society. “What worries me though, is the breakdown of service delivery and the breakdown of what used to hold communities together, a lot of which was found in the faith communities, your churches, priests, mosques. We need to hold on to the ability to do good in our communities, as opposed to the shift to all things material. It is important to build inclusive communities.” Manuel agrees that issues such as power outages can impact on the implementation of the NDP. “You don’t want to get to a point where people are unhappy because their power went and they feel that they can’t trust Eskom. So you can’t operate in an environment where there is a trust deficit. “As a nation we should be more concerned about what we communicate, how we treat each other and how we talk to people about it. This is important for decision-makers. “I learnt this with the Budget speech. You

don’t have a single audience because there are grandmothers sitting at home or in old age homes in the village that try to understand what is happening and you have to talk to them about the issues. There are workers who try and understand what this means to them. There are stock traders and businessmen listening and you have to talk to all of them at the same time. You have to talk to them in a language that has regard for them and makes sense. That is the big challenge. “We don’t always seem to understand that the way we communication has implications. When a minister says to a member of parliament for the opposition, that he is a white male babysitter, and that minister is not publicly rebuked, then we

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INTERVIEW | TREVOR MANUEL

“Where will we get our food from by 2030? What will we grow? What will we import? What will the balances be? How do we ensure the nutrition of all South Africans? It is a big, big challenge. I’m thinking about water security and the issue of power outages.

President Jacob Zuma with Minister in the Presidency and Chairperson of the National Planning Commission Trevor Manuel during a meeting with the National Planning Commission at the Union Buildings in Pretoria. South Africa. 03/07/2013

have a problem. Because then we are doing things which government should not do. We don’t know how to talk to each other. “We actually don’t understand that when we (as leaders) are abusive that it’s seen as a licence. What kind of licence might this give to the young unemployed person who feels that society doesn’t care? They might see this as a licence that you give them, when something is different, you can abuse it. This is part of the communication challenge and we don’t pay enough attention to it.” Manuel warned against seeing business as a monolithic entity which should have a uniform response to the NDP. “When we talk of government, it is a single entity, a complex single entity when you add in the provinces. We get a single set of marching orders. It is a single purpose. When you talk of business, you don’t have this.

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“If you are an importer you want a strong rand and if you’re an exporter you want a weak rand. If you are manufacturing, you have one view, if you are a retailer, you have another. If you’re a large business you want one thing. If you’re small business you want another. “There are issues. Last year there was the NUMSA strike, and there were differences of opinion within the private sector about the issues. So I think that even though a business voice needs to be understood, it’s likely to be fragmented. “Organised business is very fragmented. There was a decision to form Business Unity South Africa, which still exists. But then you have Business Leadership South Africa, which is comprised of the 50 largest businesses in South Africa. Then there is the Black Business Caucus, and ultimately if you have a business jockeying for position between these organisations, then you’re not going to have a composite voice.

“Ultimately business tries to make money. We mustn’t fool ourselves. But the idea is to try and help strengthen it. “If there’s better communication, I think it’s also easier to make long-term decisions. Business makes long-term decisions. If business is insecure, they don’t invest. You don’t get investments and they don’t create jobs. If you don’t create the jobs, you have instability in society. “If you go back to the NDP, you will see that the objective is to deal with poverty. You must get there and you must be able to raise those issues. You have to understand what it means to deal with poverty and inequality. And we mustn’t just talk. “I don’t think you can just go into communities of the poor and disadvantaged and talk about poverty and inequality. You’ve actually got to go to the wealthier parts of society and talk openly about these issues. My sense is that we should

INTERVIEW | TREVOR MANUEL

have these discussions so that we place ourselves in a problem solving mode. “The issue is that we understand the deficit of the young people out of work is a huge risk. It’s a risk to them. It’s a risk to all of society. We must solve it. Broadly that is what underlines the National Development Plan. We’ve got to solve it. “A society that ignores the needs of young people faces a huge challenge, because those numbers grow. “Leadership is important and we need to to find solutions that are contemporary, and that are sometimes premised on values rather than ideologies. We are still struggling to get to this point.

“The values I am referring to are articulated in the preamble of the Constitution where it says it will raise the living standards of all citizens and free the potential of each person.”

As one of the longest-serving government ministers, one would have thought that Manuel’s expertise would be put to use by government, even in an unofficial or advisory capacity. However, Manuel said this was not the case.

“If you want to raise the living standards you can’t keep people in poverty. If you want to free the potential of each person then your education system must allow them to understand what their potential is. If you don’t do those things, then you don’t even understand the Constitution. If you first think that the problems need to be solved by Karl Marx and Adam Smith, then you are going to make huge mistakes.”

When asked what the future holds for him, apart from his work as a senior adviser to the Rothschild Group, Manuel said he was looking to find an appropriate balance and hoped to work with young people.

“No, I am not being called up,” was all he said in response to the question about whether government was using his expertise, especially on the NDP.

“Young people face many issues and need support. It is a big battle.”

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DOING OUR PART TOWARDS - VISION 2030 distributed to good causes for the purposes of social upliftment. In 2012, a wide-ranging customer satisfaction survey charted the path for a strategy into the review of the Lotteries Act. Processes and consultations were soon under way for the amendment of the Act, and the Lotteries Amendment Bill was signed into law by President Zuma in December 2013.

Thabang Charlotte Mampane, Commissioner of the National Lotteries Commission

According to a report published on ngopulse.org “…in October 1994, the then Lotteries and Gambling Board published its Interim Report on Lotteries and Gambling in the Republic of South Africa. The report observed that illegal gambling deprived the state of tax, and that regulated gambling would provide a source of income that could provide tax relief. It was proposed by the board that the government acknowledge gambling as a ‘social reality’ and seek to regulate the industry and ensure that some of the profits from legal gambling be used to support the RDP, welfare and other good causes”. In other words, through a national lottery, some of South Africa’s most pressing social needs could be addressed – by facilitating a way for ordinary citizens to contribute toward helping others with the possible incentive of winning a prize. The National Lotteries Board (NLB) opened its doors in 1999 under the Lotteries Act No 57 of 1997. The year 2000 saw the launch of the weekly national lottery draw. Eighty organisations became the first beneficiaries of the NLB when ‘emergency’ disbursements worth R4.1 million were made. In 2001, the NLB distributed R222.5 million to 1 240 organisations across the three sectors from a portion of the proceeds of ticket sales. This was unchartered territory for us as a nation, and the first few years presented a number of learning curves for the Board and operators, but we have grown from strength to strength. To date, over R18-billion has been

On 14 April 2015, legislation was passed for the National Lotteries Board to become the National Lotteries Commission (NLC). The Lotteries Amendment Act, Act No. 32 of 2013 allowed the organisation to extend the powers of the Commission, allow for an organ of state to run the national lottery if need be (the state may only get involved in running the national lottery if a licensed operator fails to meet obligations as contained in the licence approval agreement), and improve the accountability of distributing agencies by appointing them full time. The amendment also allowed for the removal of reference to the Reconstruction and Development Programme (RDP). Most significantly, we recognised that not all citizens who are in need of services such as ours have the resources and know-how to start the applications process. The NLC now has the scope to embark on proactive funding where there arose a need. The NLB worked solely on application based funding. In the past few years, sustainability of the organisation, beneficiaries and the impact of funding has been under the spotlight. As we looked internally to assess our own performance, alignment to the National Development Plan (NDP) became a key outcome of review activities. The overall approach revolved around the recognition of the NLB as being in transition towards organisational capability. Benchmarks such as the Global Reporting Initiative (GRI) on Sustainability were utilised as the international benchmark for sustainability areas that are at the confluence of social, economic and environmental sustainability. Intervention areas of the NDP were utilised as line of sight of national priorities in respect of sustainable development, ensuring that the current five-year strategy of the organisation is in alignment with Vision 2030. Since inception, the funding principles of the NLC have always been aligned to government priorities. Even before the development of the NDP, NLC funding worked to alleviate poverty and eliminate inequalities in society. This funding is targeted mainly at three sectors: Charities (47% of overall

Where to find the National Lotteries Commission

budget), Sport & Recreation (28%), Arts, Culture & National Heritage (23%), and Miscellaneous Purposes (2%). (Under the previous Act and Regulations, Charities were allocated 45%, Arts 28%, Sports 22%, while Miscellaneous received 5% of the budget for distribution.) It is indisputable that some of our post-1994 inequalities are exacerbated by urbanisation and location. One of the strategic objectives of the NLC is to ensure equitable distribution of funds across all provinces, with a target of minimum 5% allocation of the overall budget.

Other intervention areas of the NDP to which the NLC contributes include: • Economy and employment • Transition to a low carbon economy • Inclusive rural economy • Human Settlements • Improving education, innovation and training • Promoting health • Social protection • Promoting accountability and fighting corruption (through monitoring and evaluation, and fraud-fighting initiatives) • Transforming society and uniting the country With a holistic view and approach to social upliftment, the NLC’s work is a symbol of the protection of human rights as enshrined in the Constitution of South Africa. As we continue to grow in impact and presence by increasing our national footprint, our activities seek to catalyse civil society so that it engages meaningfully in nation-building and economic growth, and ultimately reduces the pressure on government regarding job creation. While there will always be a need for funding for good causes, this organisation is not meant to build dependency amongst those who benefit from it. Our beneficiaries must be capacitated with competencies that assist them in self-reliance. The NDP states: “South Africa has the means, the goodwill, the people and the resources to eliminate poverty and reduce inequality”. As a link in the value chain of nation-building, the NLC aims to excel, ensuring that we make the right kind of social impact that will enable ordinary citizens to come within reach of the opportunities that our democracy offers.

HEAD OFFICE Block D, Hatfield Gardens, 333 Grosvenor Street, Hatfield, Pretoria Info Centre: 08600 65383, Switchboard: 012 432 1300, E-mail: nldtf@nlcsa.org.za EASTERN CAPE Waverley Office Park, 3 – 33 Phillip Frame Road, Chislehurst, East London Telephone: 043 813 3510 FREE STATE No. 321/322, Corner Stateway & Ryk Roads,Welkom Telephone: 057 815 3010 KWAZULU-NATAL Smartxchange, 5 Walnut Road, Durban Telephone: 031 817 4411 LIMPOPO 5 Landros Mare Street, Polokwane Telephone: 015 299 4660 NORTHERN CAPE Suite D, 9-11 Roper Street, Kimberly Telephone: 053 831 1583 NORTH WEST Henque Building 2313 Aerodome Cresent, Mafikeng Telephone: 018 815 3010 MPUMALANGA 25 Roodt Street Sonheuwel Dorp, Nelspruit Telephone: 013 813 4810 WESTERN CAPE 4th Floor, Manhattan Place, 130 Bree Street, Cape Town Telephone: 021 824 1153

“The concept of a social contract is premised on an underlying understanding that the success of any government is rooted in its partnership with society and the upholding of the values and demands of society.ˮ 5 0 | VISION 2030, O UR FUT URE O UR PLA N

Elias Masilela Founding member of the National Planning Commission

The NDP journey has completed its first stanza and South Africa awaits the next one. As we wait, we need to be conscious of the fact that this waiting needs to take place in the context of an understanding of the principles underlying the Plan.

One of the key observations of the first Commission is that the challenges facing South Africa are huge â&#x20AC;&#x201C; including poor growth, high unemployment, deep seated poverty, low investments and low savings, poor quality education, low skills, an ailing and inadequate health system and uneven public service, corruption and unsustainable inequality that threatens social stability. The list is long. The solutions cannot be left to the state alone. In this regard, the Plan proposes the development and adoption of a social compact for South Africa. A social compact is described as an agreement among the members of an

organised society or between the governed and the government defining and limiting the rights and duties of each (www.thefreedictionary.com). From this definition, it is clear that as South Africa waits, it ought to effect this compact whilst identifying respective roles of citizens, towards implementation. We cannot wait for the state or the next Commission. Leadership and ownership is required from all economic players. However, for South Africans to make the right decision within the framework of a social compact, it is essential to ensure that we start from a common position, in appreciating what this means.

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THE NDP AND EMBRACING THE SOCIAL COMPACT

Towards the end of 2008, COSATU made an interesting and interventionist statement, at the time of the height of the power crisis in South Africa. At that stage, Eskom had indicated difficulty in raising affordable funding for its capitalisation programme. This continues to be the biggest challenge plaguing the power debate today. In response, the leadership of COSATU, appreciating the negative impact costly finance would have on the economy and in particular the consumer, offered to assist by providing funding through its investment arm (whether COSATU can deliver on this, is an academic question). In July 2009, COSATU also intervened positively, through pronouncements they made, in the doctors’ strike. The importance of the interventions, whether they get translated into real commitment or not, originate from the fundamental signalling that we may finally be edging closer to the much desired social compact, for South Africa. But what does this really mean?

CONCEPTUAL UNDERSTANDING

The concept of a social contract is premised on an underlying understanding that the success of any government is rooted in its partnership with society and the upholding of the values and demands of society. Whether you think of it as a social compact, social contract or even a social accord, the principle remains – the modern understanding of social compacts is an attempt to address problems, in the growth path, that are best resolved through collective action and agreements between various interest groups. An example is the tripartite social accords in the Netherlands, Ireland and Spain.

ECONOMIC RELEVANCE

With the current slowing-down of the economy, rising unemployment and volatility in the currency markets,

coordination, consensus and the formulation of common agendas is critical. It is becoming very clear that some of the constraints that we are faced with as a country are not external to the economy. A few of these are a result of inappropriate decisions that we have taken and implemented in the past – as well as correct decisions that have not been well implemented. The example of the power crisis is a case in point here.

FILLING THE TRUST GAP

But what are the lessons to be learned from the other countries facing similar constraints? What lessons, if any, can be learned from countries which have managed to boost productivity and employment through a social compact amongst labour, business and state? Recently, we have observed successful compacts in Europe, directly responding to the crisis, with wage freezes, short-hours and re-skilling.

One way of dealing with this gap is to stop pointing fingers – for each stakeholder to take an objective stance to be part of the solution and identify a niche area in which to contribute, without waiting for the next person to make the first move. If each one of us takes this approach, the collective impact will be unprecedented.

For a social compact which involves all role players to make a significant economic impact, the following conditions must hold: • P reparedness by organised labour to make real concessions (income policies and labour-market reforms) in return for productivity-related benefits • G enuine commitment by employers to an accord process • L ending structural policy support to the accord process from the government, by ensuring timely and effective reforms in areas of labour, industrial, welfare and tax policy to aid part of the accord

In all countries that have implemented social accords, some form of a crisis triggered all these processes. Hopefully, the domestically originated structural crisis, as well as the globally originated crisis, will spur South Africa swiftly towards a more formal compact and virtuous circle. Unfortunately, the biggest challenge remains the low level of trust amongst stakeholders in South Africa.

“The solutions cannot be left to the state alone. In this regard, the Plan proposes the development and adoption of a social compact for South Africa.”

• P roductivity growth succeeds in improving profitability, thus encouraging firms to increase their investments • D iscourage the persistence of insider/ outsider imbalance and ensuring sustainability. We can learn from some of the successful experiences of social pacts in other countries – and it would appear that a commonly perceived crisis is a precondition for a social accord to be struck.

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CHAPTER TWO T H E N D P I N P R AC T I C E I N T E RV I E W W I T H T H E P R E M I E R O F K WA Z U L U - N ATA L

SPONSORED BY THE OFFICE OF THE PREMIER O F K WA Z U L U - N ATA L

INTERVIEW WITH: EDWARD SENZO MCHUNU

HONOURABLE PREMIER OF KWAZULU-NATAL Premier Edward Senzo Mchunu

PLEASE OUTLINE WHAT YOU CONSIDER TO BE THE DRIVING PRINCIPLES BEHIND YOUR PREMIERSHIP. This province has developed a reputation for good governance and hard work; as premier, I lead the provincial executive council â&#x20AC;&#x201C; a dedicated, and talented team. We have many capable leaders across all sectors of society who have a vision for a prosperous future. However, what is urgently needed is that we choose the right path that will enable all of us to reach our destination. I have called upon the leadership of this province at all levels to ensure that we are driven by the ethos of hard work to ensure a better life for our people. Together we must ensure that in the next fifteen years we make a serious impact in defeating the triple challenges of unemployment, poverty and inequality. This is a call which has been made by the President of the Republic, His Excellency J.G. Zuma, and clearly articulated in the manifesto of the ruling party, the African National Congress.

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WHAT HAS PROVEN TO BE YOUR GREATEST CHALLENGE AS PREMIER IN THE LAST YEAR?

The reconfiguration of the provincial government departments has been challenging but I am happy that we have turned the situation around. These reconfigurations include: Gaming and Betting was transferred from the Office of the Premier to Provincial Treasury. Environmental Affairs was also transferred from the Department of Agriculture and Rural Development to Economic Development. KwaZulu-Natal Ezemvelo, a public entity, was transferred from the Department of Agriculture and Rural Development to Economic Development and Tourism. The Department of Economic Development and Tourism is now called the Department of Economic Development, Tourism and Environmental Affairs.

HOW ARE YOU ENSURING THAT THERE IS PARTNERSHIP BETWEEN GOVERNMENT AND THE PRIVATE SECTOR? During this term of office I have undertaken to ensure that there is continuous engagement with the business community as part of efforts aimed at ensuring that this province becomes an economic powerhouse in South Africa.

I have encouraged members of the provincial executive council to also set aside time to meet regularly with big business, SMMEs and members of cooperatives. We have all agreed to this important task because we understand the crucial role the private sector is playing in driving economic development in the province. As a country, we have taken the route of becoming a developmental state with the intention of planning and implementing massive infrastructure programmes to lead growth and mobilise the private sector to invest alongside the state in a strong show of confidence in the country.

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Under the leadership of the ANC as the ruling party, KwaZulu-Natal established a provincial planning commission which has aligned all provincial plans with national plans. As a result, the province is well positioned to take advantage of the infrastructure revolution that is led by the President of the Republic, His Excellency J.G. Zuma. Our province will, for the foreseeable future, grow as a result of the combined investment of national departments and para-statals, provincial and local government and private sector. The majority of job opportunities will be created by the private sector, particularly the small business sector. I have undertaken to strengthen all the institutional arrangements that have been created in order to foster working relations between government, private sector and civil society.

The KZN Growth Coalition, KZN Economic Council, KZN Planning Commission, KZN Climate Change Council, BEE Advisory Council and the Human Resources Development Council are a few examples of the institutional collaboration between business, government and civil society. I have also undertaken to have more interaction with the chambers across the province. By and large, these structures have the responsibility to make an impact at local levels where much of government service delivery happens and where there is further opportunity for public– private sector collaboration.Importantly, as government we are committed to taking this message of partnerships to traditional leadership structures, churches and the broader society. In this way we will create a winning nation.

WHAT ARE THE MAJOR CHANGES YOU FORESEE FOR THE PROVINCE – AND SOUTH AFRICA AS A WHOLE – BY 2030? We have a vision of ensuring that KZN becomes a prosperous province with a healthy, secure and skilled population, acting as a gateway to Africa and the world. We can only achieve this vision if we aggressively embark on a skills revolution.

It is for this reason that we have established a Human Resources Development Council. The Council is placing a strong focus on scarce skills such as engineering, science and technology, accounting, information technology, agriculture, health and social services. There are other key sectors for job creation such as the green economy.

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Our Provincial Growth and Development Plan has set an ambitious target of ensuring that we create 2.1 million jobs by 2030. These jobs will only be created through a skilled population. In the future we want millions of our people â&#x20AC;&#x201C; especially the youth â&#x20AC;&#x201C; to be the drivers of job creation in various sectors of our economy. Skills and knowledge are the key drivers of economic growth and it is therefore the responsibility of the Council to guide government and the province as a whole on how to produce a highly skilled workforce that will improve the global socio-economic status of KZN. Importantly, the province has a long coastline, two big ports in Durban and Richards Bay, many rivers and dams. As a result there are career opportunities in the maritime industry both at the harbours, on ships and in ship building. The industry needs artisans, shipbuilders, sailors and boat captains. These are skills that will be available in abundance in KZN by 2030. Critically, our province will, for the foreseeable future, grow as a result of the combined investment of national departments and parastatals, provincial and local government and the private sector. The total pipeline investment directed to all the districts in KwaZulu-Natal ranges between R3-billion to R8-billion for each district. UThukela, UThungulu and eThekwini investment will be more than R20-billion because of special projects in those areas.

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The provincial budget has more than R15-billion for construction of roads, bridges, health facilities and large housing projects in many other parts of the province. This investment will assist in driving job creation and building the provincial economy. Linked to this, we are focusing on supporting the municipalities in Integrated Development Plans and in the Local Economic Development to ensure that the identified sectors deliver growth in the economy. Agriculture remains one of the most critical sectors of our economy and we have resolved to intervene decisively so that agriculture becomes our solution to the chronic poverty that still persists in eleven districts of our province. In the context of the redistribution of wealth in the agricultural sector, we have adopted faster ways of moving

subsistence farmers into the mainstream economy. Our main focus is on how best to utilise all 590 bio-resource regions to produce vegetables, fruit and meat products for export. There are opportunities for SMMEs and cooperatives in agricultural projects such as honey farming, the growing of cut flowers, the production of essential oils for on-sale into the pharmaceuticals and cosmetics markets, and the cultivation of plants that can be marketed as indigenous medicines. The sugar industry in KwaZulu-Natal supports the livelihoods and incomes of close to one million people in the province and is a cornerstone of business development in rural areas in which sugar cane is grown. The milling industry in this province is untapped and it has the potential to grow and create thousands of job opportunities. We are paying close attention to the maize mills, cotton mills and sugar mills and are also focusing on the potential for sugar cane to be used as biofuel, which will not only provide opportunities for emerging entrepreneurs but will create thousands of job opportunities.

Our commitment towards economic development and food security has been demonstrated by the commissioning of two labs through the Operation Phakisa approach, which focus on Makhathini flats and poverty eradication respectively. Both these labs were tasked with the responsibility of coming out with a practical impact and outcomes-based implementation plans, which will not only touch people’s lives but change them for the better.

INCLUDED IN YOUR RESPONSIBILITIES AS PREMIER IS THE ROLE OF CHAIRPERSON OF THE COUNCIL ON CLIMATE CHANGE. PLEASE DISCUSS SOME OF THE MAJOR DEVELOPMENTS IN THIS AREA – AND COMMENT ON HOW IMPORTANT YOU FEEL COP21 WILL BE FOR DEVELOPING COUNTRIES. As the KwaZulu-Natal Provincial Government we recognise that climate crisis is as much a social and economic crisis as it is an environmental disaster. Through the Council on Climate Change we will launch an unprecedented effort to ensure that KwaZulu-Natal becomes a model of a province that is greener,

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“Skills and knowledge are the key drivers of economic growth and it is therefore the responsibility of the Council to guide government and the province as a whole on how to produce a highly skilled workforce that will improve the global socio-economic status of KZN”

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cleaner, sustainable and prosperous. Climate change has the potential to affect every sector in the economy of this province and this includes: agriculture, trade, infrastructural development, healthcare, energy and water, trade; and more importantly the country’s national fiscus. Therefore, we believe that stakeholder engagement remains the answer. We are calling upon all stakeholders – representatives from industry, nongovernmental organisations, civil society, academics, religious leaders, traditional leaders, leaders of all political parties and the media to work with government to refine and implement our programme of action on climate change. Acting together will ensure that we are able to effectively tackle both adaptation and mitigation. Critically, acting together will enable this province to leapfrog stages of socio-economic development as our collective action will facilitate the sharing of skills, stimulation of innovation and creation of opportunities for access to new technologies.

We acknowledge as government that climate change has altered the way in which countries view economic growth, in that nations are increasingly relying on the new technology to explore cleaner sources of energy. This has caused a shift towards new ‘green’ production processes and renewable energy generation, and a new way of thinking with regard to economic growth and development planning. The relevance for South Africa and KwaZulu-Natal lies in the need to invest in new renewable energy sources, and to attract investment that applies green principles and employs ‘green’ technologies. On the issue of the multi-stakeholder Provincial Climate Change Council, I wish to emphasise that the Council will, inter alia, refine, finalise and implement the KwaZuluNatal Climate Change Action Plan to do the following: 1. E stablish and/or improve communication mechanism amongst institutions concerned with and working in the field of climate change 2. C oordinate climate change responses at programmatic level to foster synergy and

avoid duplication of efforts, and optimise benefits from existing programmes, and coordinate activities related to policies, plans, strategies, financing programmes and projects 3. P rovide inputs for developing consensus on climate change related issues 4. P rovide inputs for financing in order to effectively implement, monitor and evaluate the implementation of the Climate Change Action Plan 5. M eet at least twice per annum and guide government policy making and planning process while mobilising civil society’s response. With regard to COP21, I believe that this gathering presents a wonderful opportunity to discover a new leadership that could champion a new climate change agenda that will promote the interests of developing countries.

WHAT DO YOU SEE AS YOUR GREATEST SUCCESS THUS FAR? I want to express my appreciation to the people of this province who have made the past few years the most memorable period in government.

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I N T E R V I E W | P R E M I E R O F K W A Z U L U - N ATA L â&#x20AC;&#x201C; E D W A R D S E N Z O M C H U N U

The support that we have received from across all sectors of our society is an indication that the people of this province want to see KwaZulu-Natal becoming a prosperous province. Ahead of the fifth general elections, the people we interacted with across the length and the breadth of this province said they wanted a government that represents their aspirations. We were humbled by the show of support and confidence demonstrated at the polls. Importantly, the 75.98% voter turn-out in the election propelled all of us as the executive council to work hard to demonstrate that we appreciate the confidence expressed by millions of our people in our democratic processes.

When I delivered the inauguration speech on the 26th May 2014, I undertook to ensure that we allocate state resources to alleviate the sufferings of the people of this province. I assured the people of this province that at all times we will cast our eyes into the future with a clear understanding that failure is not an option. Indeed, the people of this province have seen solid delivery. I want to personally pay tribute to the people of this province for their valuable input which has ensured that we move with speed to deliver on our commitment.

I have made that conscious decision on the understanding that the people who voted on the 7th May 2014 ushered in a new era in which leaders should always be accountable to the electorate. They voted for a government whose affairs should be conducted with a compelling sense of hard work, transparency, honesty and integrity.

I have personally directed that all members of the executive council must continue to account to the people who voted us into office on the promises we made.

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ENGINEERING COUNCIL OF SOUTH AFRICA

The Engineering Council of South Africa (ECSA) is a statutory body that has regulated engineering practice for more than 40 years in South Africa. ECSA exists as a regulatory body for the engineering profession. Engineering is essential and beneficial to society and the economy, therefore ECSA has a role to set certain professional standards in the interests of public safety and the economy. In addition, engineering services must be of high quality in the interests of maintaining a high standard of infrastructure in South Africa. Engineering is a global activity, with services and technology being exchanged across national boundaries. The standards of engineering education and professional competence are therefore benchmarked internationally. In addition, ECSA is empowered to advise government and other parties, and to take necessary steps to protect the public interest, health and safety, improve standards of engineering services, create awareness of the need to protect the environment and conduct research.

Registration of engineering practitioners as professionals or candidates in the categories of engineer, technologist, technician, certificated engineers, and specified categories is a key function of ECSA. Registrations with ECSA exceeds 40 000 members. The registration system has been established by law to ensure competence and accountability. Registration provides public recognition that the registered person has, through education, training and experience, demonstrated competence at an established level. Registration with ECSA and membership of a Voluntary Association (VA) are complementary. The VA promotes the interests of the discipline and its members and provides services such as continuing professional development (CPD). Different grades of membership – for example student, member and fellow – recognise the member’s career progression.

CHAPTER THREE RESOURCES

6 6 | VISION 2030, O UR FUT URE O UR PLA N

AFRICA’S GREATEST HOPE Trueman Goba

Founding member of the National Planning Commission Given the level of South Africa’s mineral resources, our current skills base, the infrastructure available, and our location geographically, developing the South African mining industry on a fast-track basis remains the best opportunity for the country’s economy to achieve a more powerful and consistent growth rate of 6% by 2030 as recommended in the National Development Plan. There are many challenges in this regard. However, the mining industry has the advantage of having the potential to create a positive spin-off on the downstream supplier side, contribute to the development of local communities and improve the quality of life for all. This entails an expanded economic infrastructure attendant to large mining projects, varying from transportation, water supply and power generation links to housing, sanitation and related urbanisation, as well as further industrial expansion projects. The South African mining industry finds itself at a crossroads at the moment. On the one hand, we have a global economic downturn, and on the other we have a downturn in the commodity supercycle. According to the National Planning Commission (NPC), employment in mining, excluding upstream and downstream industries, fell by 33% or 220 000 people between 1970 and 2004. Despite this fact, South Africa remains a mineralexporting economy, with mining, minerals and secondary beneficiated products accounting for almost 60% of export revenues.

RAISING SOUTH AFRICA’S GLOBAL SHARE OF VALUE-ADD

While South Africa has managed to diversify its mining exports and general export profile since the 1980s, the fact is that the country remains endowed with the potential to export highly sought-after minerals such as platinum and manganese. The South African mining industry, however, accounts for a small percentage of total employment in the country, and coupled to this is the fact that the global market share of South Africa’s exports fell markedly in volume terms from 1996 to 2006. This indicates that the country’s longterm economic success hinges on raising the global share of its value-add. And locally, this means raising the profile and contribution of the mining industry and facing a number of challenges that various stakeholders are concerned with, including that of power shortages. The mining industry played a vital role in establishing the South African economy, and has ensured the continued success

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MINING REMAINS

of many companies as well as growth in skills and expertise in local players such as Hatch Goba. Many professionals who cut their teeth in the South African industry have become global players who compete at a global level. The continued high standards in South Africa’s higher education, including engineering, has a lot to do with such successes. In Africa itself, it remains a benchmark – not only in terms of mining and engineering services, but also in related fields such as project and construction management. South Africa has been at the forefront of introducing new technologies and ways of doing things differently that have assisted in advancing the mining industry on the continent and globally. However, due to various challenges, the South African mining industry remains a complex and difficult one for companies to operate in, including increasing costs during periods of low demand and export prices, community welfare and the need for development and social responsibility, as well as skills shortages. On the other hand, although these seem to be daunting, there have been some significant successes, such as in delivery of capital projects, operations, corporate social investment and the image of the industry generally, especially in respect of health and safety.

THE ROLE AND IMPORTANCE OF THE SOUTH AFRICAN MINING INDUSTRY

It is also critical that both trade unions and the government have an accurate perception of the role and importance of the South African mining industry, from investment and providing employment with improved health and safety to complementing government’s role in uplifting local communities indirectly and, in some cases, even directly, together with ongoing training and skills development, and through that, improved quality of life. The South African mining industry has gone a long way to adapt the way that it mines, as well as the way it conducts its business. Such change is inevitable, especially given the rapid pace of technological change. In the current context, the South African mining industry is reportedly in the process of mechanising, partly as a means of making

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mining safe and viable, particularly where resources are located at ultra-deep levels. This should ensure that mining continues to contribute to South Africa’s legacy. We have to appreciate the enormous mineral wealth that South Africa has been endowed with, and that if revenues are utilised effectively in providing efficient services such as in education particularly, that opportunities will be maximised. These opportunities are particularly abundant in Africa, where a lot of the continent’s mineral wealth remains untapped due to issues such as poor logistics as a result of remote locations and lack of infrastructure. However, the untapped mineral resources in Africa will be key to Africa’s own future growth and development. Abundant steel and coal will be needed to build and power cities for Africa’s future and the concomitant demand for more services and improved quality of life. The mining industry is both a critical enabler of economic development that is required on the continent as well as a source of demand for new infrastructure and sustained modernisation. This requires countries to invest heavily in infrastructure programmes and also bridges the divide between the public and private sectors. Where increased project funding is required, it is inevitable that governments and companies need to be more exposed to the different dynamics in their respective spheres of influence. This is especially critical in operations where there are constraints facing the mining and construction industries such as in South Africa at present. According to Deloitte & Touche’s State of Mining in Africa (2015) report, about 30 mining projects are expected to come onstream from 2015 to 2018. This accounts for a total of $18-billion in investment across the continent. The total forward spend on these projects, Deloitte & Touche estimates, will be about $10.5-billion, with South Africa accounting for 29% of the total, the Democratic Republic of the Congo 23%, Mauritania 8%, Namibia 8%, Zimbabwe 8% and Zambia 7%. However, the report adds the caveat that infrastructure development is critical for

the long-term growth of the mining industry in Africa. Reducing the costs of existing mining operations, which leads to greater productivity and reliability, requires ongoing investment in ports, roads and both power and communications infrastructure. Deloitte & Touche notes in another report entitled Tough choices facing the South African mining industry (2014) that Mining companies globally, as well as in South Africa, face significant challenges. Local mining companies and mining companies with significant local assets manage unique South African operational complexities, while still operating in the context of global pressures. It is hoped that leaders of various stakeholders will find it possible to consider local communities’ needs for accelerated development, as well as make the necessary but difficult choices while taking the lead in doing what is best for society in the long term.

THE BEST CHANCE TO GROW THE ECONOMY

While growing the South African mining industry is seen as the best chance we have to grow the economy, many other factors have to be aligned as well. This includes the various recommendations that are included in the National Development Plan, many of which are already prioritised in government’s Medium Term Strategic Framework. For all of these recommendations to be realised it will be imperative for accelerated progress that leadership of all stakeholder parties be enhanced, and that all stakeholders are kept in the loop to form a social compact which will see Vision 2030 becoming a comprehensive plan for the elimination of poverty and accelerated developmental progress in all spheres of South Africa in the not-too-distant future, and make its mark as a continuing economic engine for the continent.

THE LIMPOPO PREMIER CHUPU STANLEY MATHABATHA

WE HAVE APPOINTED A PROVINCIAL MULTISTAKEHOLDER TASK TEAM TO HELP DEVELOP A MEDIUM-TERM WATER RESOURCES AND SERVICES STRATEGY. This strategy, as stated in February, will help with the planning, management and allocation of water to support both economic social and environmental needs of our province. Underpinning this strategy will be a mechanism for bulk infrastructure projects that support mining and commercial agriculture, provision of water to households, management of waste water treatment works and a sustainable availability of water. Our message remains that water, which is a rare and yet most basic commodity, belongs to the people as a whole. In this regard, we must be forever reminded that water must be used in the interest of both the current and future generations. We are delighted by the interest and support we have received from the National Department of Water, especially in resolving our water challenges in general. The district water summits were followed by provincial sector summits which focused on mining and agriculture in the context of water needs and usage.

The summits outlined above were designed to create a platform for government to, amongst others, derive inputs from the respective stakeholders. Accordingly, these inputs have informed the agenda and the content for this provincial Summit.

WATER AND ENVIRONMENTAL AFFAIRS, HONOURABLE EDNA MOLEWA. In the Minister of Water and Environmental Affairs, Edna Molewa’s address, she noted the water allocation challenges and advised the conference to look at ways in which water could be reallocated from sectors that are not fully utilising their allocations to those sectors that are truly in need of such water resources. She went further to acknowledge that the water regime as it was, necessitated a review of both legislative framework governing water resources. The good news is that since the 2011 Water Conference we have made inspiring progress in our attempts to secure sufficient water resources for both domestic and commercial use. But as we all know, ours is a water scarce country. The opening of De Hoop Dam in March last year, the launch of the Nandoni Bulk Water Supply System and the launch of Giyani water treatment work is evidence of the progress that has taken place since 2011. This has certainly increased the number of households in the province that have access to clean, drinkable water.

“THE GOOD NEWS IS THAT SINCE THE 2011 WATER CONFERENCE WE HAVE MADE INSPIRING PROGRESS IN OUR ATTEMPTS TO SECURE SUFFICIENT WATER RESOURCES FOR BOTH DOMESTIC AND COMMERCIAL USE.” The following challenges were addressed during the Summit which allowed for participants to engage with the issues: • The provision of bulk water •T he provision of water and sanitation to households • Waste water treatment works •T he usage of water to support economic development The Summit would have betrayed its purpose if it did not come up with practical, workable and lasting solutions to our water supply challenges.

COMPANYDETAILS Physical address: Civic Centre, Cnr Landros Maré & Bodenstein Streets, Polokwane, 0699, South Africa Phone: 015 290 2010 Website: www.polokwane.gov.za

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INTERVIEW WITH

Limpopo Province

Together we move

Limpopo Province forward Premier, Mr Chupu Stanley Mathabatha

The Limpopo Provincial Government has recently launched its Limpopo Development Plan (LDP). The Limpopo Development Plan is an ongoing journey to improve the standard of living, reduce poverty and unemployment and achieve economic growth. The Province aims to achieve this through sustainable economic, social, infrastructure and institutional development with emphasis on transformation. The vision of the Province remains to fulfil the potential for prosperity in a socially cohesive, sustainable and peaceful manner. The vision will be attained by way of a mission statement that emphasises participatory leadership aimed at promoting excellence and an entrepreneurial spirit, improved service delivery, facilitation of decent job creation and systematic poverty reduction.

Premier, Mr Chupu Stanley Mathabatha, inspects the SAPS Guard of Honour during the opening of Legislature

Limpopo Development Objectives The objectives of the Limpopo Development Plan (LDP) 2015-2019 are to: • Outline the contribution from Limpopo Province to the NDP and national MTSF for this period • Provide a framework for the strategic plans of each provincial government department, as well as the IDPs and sector plans of district and local municipalities • Create a structure for the constructive participation of private sector business and organised labour towards the achievements of provincial growth and development objectives • Encourage citizens to become active in promoting higher standards of living within their communities.

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Government Expectations

Comprehensive Rural Development

By 2030, the Government expects that Limpopo will have a public service that meets the best standards of governance, citizens that are educated, skilled, healthy and self-reliant, a labour force that is fully, productively and rewardingly employed, with infrastructure that is capable of promoting and sustaining an innovative local and regional economy for the benefit of all the Province’s diversified communities, in a responsible and sustainable manner.

The 2030 vision is for rural areas to be spatially, socially and economically integrated, where residents have economic growth, food security and jobs as a result of agrarian transformation and infrastructure development programmes, and improved access to basic services, healthcare and quality education.

Quality Basic Education By 2030, Limpopo must have a basic education system with high-quality, universal early childhood education and quality school education, with globally competitive literacy and numeracy standards.

Long and Healthy Life Nine long-term health goals for national and provincial government range from primary healthcare to reduced mortality rates, filling of critical posts and health information systems.

All People are Safe People living in Limpopo will feel safe at home, at school and at work and enjoy community life free of fear. There will be zero tolerance for corruption, citizens do not offer bribes and are confident that officials will be accountable. Leaders have integrity and high ethical standards.

Decent Employment through Inclusive Growth A long-term vision is provided towards dealing with the challenges of unemployment, inequality and creating a more inclusive society.

Skilled and Capable Workforce By 2030, Limpopo should have access to education and training of the highest quality, leading to improved learning outcomes. The education, training and innovation system should cater for different needs and produce highly skilled individuals. The graduates of Limpopo’s universities and colleges should have the skills and knowledge to meet the present and future needs of the economy and society.

Competitive Economic Infrastructure Limpopo needs to invest in a network of economic infrastructure designed to support medium- and long-term economic and social objectives. This is a 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.

Human Settlement Development There is a need to transform the functioning of human settlements, so as to observe meaningful and measurable progress in creating more functionally integrated, balanced and vibrant urban settlements by 2030.

Developmental Local Government By 2030, Limpopo will have a developmental local state that is accountable, focused on citizens’ priorities and capable of delivering high-quality services consistently and sustainably through cooperative governance.

Environmental Protection By 2030, Limpopo’s transition into an environmentally sustainable, climate change-resilient, low carbon economy and just society will be well under way.

Regional Integration The National Development Plan sets out a vision for a future Limpopo that is prosperous and stable, with high labour absorption rates in a country that is strategically integrated into the region, the continent and the global political economy.

Developmental Public Service The Province will have well-run and effectively coordinated provincial institutions with skilled public servants who are committed to the public good and capable of delivering high-quality services, while prioritising the provincial developmental objectives.

Inclusive Social Protection System By 2030, everyone must enjoy an adequate standard of living. There must be basic social protection guarantees, aimed at preventing or alleviating poverty and protecting against vulnerability.

Social Cohesion In 2030, residents of Limpopo will be more conscious of the things they have in common than their differences. Their lived experiences will progressively undermine and cut across the division of race, gender and ethnic cleavages.

For more information, contact Provincial Government Spokesperson: Mr Phuti Seloba, tel. (015) 287-6060

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THE NDP NEEDS TO CREATE A MORE DYNAMIC SOCIETY An interview with the Minister of Cooperative Gover nance and Traditional Affairs, Pravin Gordhan by Ryland Fisher

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This was said by Minister of Cooperative Governance and Traditional Affairs (Cogta), Pravin Gordhan, in an interview at his office in Pretoria. Gordhan had spent his previous term in government as Minister of Finance. His move to Cogta was an indication of the importance the government attaches to municipalities. Gordhan said that the way to convince ordinary people that the NDP was working in their favour was by understanding and delivering on their needs. “We need to make sure that there are perceptible changes taking place in their lives. There are many parts of South Africa where ten years ago people didn’t have electricity and now they do. They didn’t have, in some instances water borne sewerage or proper sanitation systems, but now they do. They didn’t have houses, but the houses are there today. “There’s a whole category of people in South Africa who have experienced changes. We need to also now ensure that apart from quantitative access, we move to quality of services and quality of interaction with citizens. “We need to constantly understand what their needs are and respond to them. At the same time we must be able to manage expectations about what the state can and

can’t do. We need to be frank about where community participation and community ingenuity and energy need to make a contribution so that they also become part of the process of giving life to the NDP. “We haven’t met every expectation but the changes we’ve been able to undertake over a short 20-year period, which is just one generation by the way, are phenomenal; at the same time we must be humble enough to admit that we still have a long way to go and also have the optimism that we can achieve it. “We had a recession in 2008 that set us back massively, in terms of both fiscal resources and work. A million people lost their jobs and we didn’t bounce back in the same way as Indonesia or Brazil did. But today, as Indonesia’s growth has dampened and Brazil finds itself in recession, we are growing somewhere between 1.5 and 2% which is better than some, but not good enough for the kind of challenges that we face.” Referring to the NDP, Gordhan said the President and the ANC had to be congratulated for putting in place “a process which would give us a vision around which all stakeholders in our country could unite, could join in collective action and perhaps even debate crucial policy issues as well.”

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“The National Development Plan is not about a delivery system using just fiscal resources and getting the state to deliver. It’s also about creating a new kind of society that’s far more dynamic, far more entrepreneurial, far more energised, far more purposeful in its life and far more hopeful than we might be creating at this point in time.”

“It gave President Zuma’s administration a clear basis upon which to found the MediumTerm Strategic Framework both for the last administration and this. That shows the connection between the work done by the Commission, the various contributions made and the setting of a government five-year programme which then each of our departments has to take into account in formulating our own five-year strategic plans and our one-year annual performance plan – which then needs to be approved by Parliament. The initiative also put in place the Department of Monitoring and Evaluation and both the Commission and that Department had to find their feet in early 2009. “For my department there are different elements in the Development Plan we need to interact with because there’s no particular chapter on local government; and much of our work will be coinciding with those elements. “Under the Back to Basics programme we are reviewing municipalities in terms of their governance standards and governance behaviour. This won’t happen in the next few years, but over decades. If we do the right thing, it will give us a resilient and well-performing municipal system. “Another example is the planned talks about spatial integration as a crucial element of transforming the spatial – or the lived – environment for South Africans, taking into account the kind of legacy that we’ve had. In that regard there’s a policy process which is producing an integrated urban development framework, which responds to many of the things which the NDP is talking about, such as densification and corridors of development. “Generally, global experience shows that as you get better agglomeration around all inner city environments, you get all sorts of beneficial effects in terms of mixed income groups living together, economic opportunities opening up, less costly efforts in terms of job seeking for young people in particular, which is a big issue in South Africa; and clustering of different types of efforts around common themes – whether it’s IT or software development or start-ups. “We are currently reviewing what municipalities are actually doing. There are lots of claims about spatial development frameworks in municipalities which are responding to the integration challenge, but at the same time we must admit that some of

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the RDP houses and the communities that we’ve been developing around them are still in far-flung areas. Greater effort and energy needs to be put into that particular area. “Service delivery is another area that the NDP talks about, whether it’s an energy or a water context or other basic services that municipalities provide. This is a key theme in the Back to Basics programme that we are implementing to get more focus, more energy and more effort put in by municipal leaders, whether administrative or political, to ensure that they do the right thing.

“The NDP also talks about active citizenry, which is a timeous and crucial challenge for us. South Africans are used to the idea over the last 20 years that you wait and we will deliver. A theme that we want to pursue in that regard is some work that I did in the Treasury with the World Bank around township economics and what kind of strategies people have developed themselves. How do we find ways of supporting their strategies for such subsistence forms of economy? As well as the informal sector and the microsector – which is something that Minister Lindiwe Zulu’s new department is looking at as well.”

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Gordhan said that most municipal structures in South Africa are still very young, which could explain some of their teething problems. “Our municipal structures are only 15 years old. Some of them are even younger because they’ve merged into one area, like Tshwane. It’s only been since 2011 that other municipalities merged to form Tshwane. It’s going to be another ten, 15 years before we evolve to a stage where we have a stable number. Currently there are still municipalities where you have 5 000 people and five or ten wards and three councillors. These are some of the aberrations that we want to overcome.

“We want a professionalisation of the bureaucracy and we want the political role-players and the administration to understand their place and their role and develop a culture of mutual respect for each other’s roles. “We are also changing the way in which this department works. It’s gone through an early phase where it had to enact laws in terms of the Local Government White Paper and the new Constitution. Then we went through a period where the institutional mechanisms in terms of the Structures Act and the Systems Act had to be put in place. Now you want the national department to have oversight

capability over all 278 municipalities. This Back to Basics programme has a number of indicators. Each of those indicators are issues that municipalities have to report on. “Somewhere between 180 and 200 municipalities are now reporting under these on a reasonably regular basis. We’ll embed that culture but at the same time rationalise municipal reporting so it doesn’t become a huge burden on municipal managers. More importantly, national government will have a more direct understanding of the benefits and the downfalls that are happening in each municipality and hopefully in every ward of the municipalities. That’s our ambition.”

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“We want to ensure that traditional leaders play their rightful and energetic role and contribute to development in the rural areas in South Africa, but also contribute to social cohesion.”

In terms of the second part of his portfolio, Gordhan said that traditional leaders and culture are an important component of South African life which is recognised by the Constitution. “We’ll be presenting a piece of legislation soon for parliament’s consideration which would ensure the incorporation of the Khoi and San communities within the traditional structures and then give them representation. 7 6 | VISION 2030, O UR FUT URE O UR PLA N

“There are traditional communities that have done very well in terms of ensuring that the benefits from mining licences and mining processes are shared by the community. “That’s an area that we want to focus a lot more on. We want to ensure that traditional leaders play their rightful and energetic role and contribute to development in the rural areas in South Africa, but also contribute to social cohesion.

“There are parts of South Africa where we have issues among different language groups and it’s important, as we go forward, that we continue to have all South Africans respect diversity and the different identities people have. Obviously that’s not going to happen overnight but traditional leaders have an important role to play here.”

CHAPTER FOUR INFRASTRUCTURE

STATE-OWNED COMPANIES CAN DRIVE THE ECONOMY An interview with the Minister of Public Enterprises, Lynne Brown by Ryland Fisher

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“The NDP affords opportunities for robust and unanimous cohesiveness between the ministry and department; and for the department and every external sector in this pursuit. “As such, they have a crucial role to play in the implementation of the NDP,” Brown said in an interview at her office in Cape Town in September. “The government has entrusted us with the most important assets and we need to ensure that we leverage them to unlock growth in the economy. SOCs are an important instrument for the state to influence the economy in the right direction. We have taken a strong position to ensure that, even in tough trading conditions, our SOCs continue to drive investments in the economy and support the development of skills as part of enhancing the capacity of the economy. “In 2014/15, the SOCs in our department invested over R80-billion and employed just over 107 000 people. These are a few of the things we are doing to support re-igniting the South African economy.

“Addressing the electricity supply challenges is one of the priorities that we need to get right. The past 30 days (and counting) of no load shedding has shown that the work we are doing to refocus Eskom is paying off. The moving of Medupi Unit 6 to full commercial operation is a major achievement for South Africa and shows the government’s commitment to supply South Africa with reliable electricity. “We have also seen Transnet increasing tonnage moved by rail by 7.7% in a very tough operational environment where most sectors serviced by the company have been experiencing a decline. Denel has expanded its revenues generated from exports. All of this has a positive impact on the South African economy.” Brown said that the NDP’s marching orders were the elimination of poverty and inequality and this served as a guideline for her ministry and department. “The NDP affords opportunities for robust and unanimous cohesiveness between the ministry and department; and for the department and every external sector in this pursuit.

“You can see that bold steps have been taken by the current administration in placing infrastructure at the forefront of government’s agenda to transform the economy and stimulate economic growth and job creation.”

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I N T E R V I E W | LY N N E B R O W N

Public Enterprises Minister Lynne Brown understands the impor tance of her por tfolio in developing South Africa’s economy. The stateowned companies (SOCs) that repor t to her are among the biggest investors in South Africa and among the biggest job creators.

“It is highly desirable for government and all sectors to operate under one progressive developmental state paradigm for the exclusive benefit of all parts of our society. The NDP is the national policy compass for this objective. The document is a product of highly robust engagements led by esteemed commissioners to which the DPE, like all other partners and stakeholders, would have had an opportunity to contribute. “The NDP then serves as a welcome collaboratively-produced policy document to both the ministry and department and serves to codify the concept of a developmental state. The Department of Public Enterproses (DPE) has embraced this concept and through various efforts has ensured the benchmarking of our SOCs in relation to performance in this space. With the NDP adopted as the paradigm of our business and transformation objectives, we have the muscle for leadership to begin achieving the objectives. “Structurally, the legacy of South Africa’s unjust pre-1994 history looms large in sectors, so a policy document such as the NDP is critical for urgent and decisive action toward addressing injustices of the past. The NDP has been very careful to be richly located in already progressive documentation of South Africa post-1994 and provides a coherent framework for the execution of our economic strategies and policies such as the New Growth Path and the Industrial Policy Action Plan. “The department has used the aspirations of the NDP to formulate its five year strategy that will direct resource allocation and define priorities as we accelerate the implementation of the NDP.” Some of the industries where the SOCs under Brown can make a huge impact are energy, transport and manufacturing, where they provide essential services. “These sectors have been identified as being essential to the reindustrialisation of the South African economy. The department has continued to direct the SOCs in the direction where their operational and investment activities unlock further growth, facilitate the rapid transformation of the economy and set

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the economy on a different path that is more labour absorbing. “The call by the NDP to increase competitiveness and invest in a strong network of economic infrastructure designed to support the country’s medium-and longterm economic and social objectives is precisely the function of the DPE. “The DPE cannot underscore more firmly enough its support to secure the economic infrastructure necessary as a prerequisite for SOC-performance to function at optimum. This is not limited to the DPE performance, but is a national agenda item to conceive the supply chains needed for a new growth trajectory.” “Addressing the current infrastructure challenges and accelerating the transformation of the South African economy will be the key measures of success for the department,” said Brown. “We cannot see our contribution being limited to achieving an acceptable level of governance; we encourage having SOCs that drive investment and leverage on the innovativeness of the private sector. The strategic plan of the department is vested on the premise of the NDP and every sector team of the DPE has aligned both their annual performance plans and operational performance plans to the NDP. This work is monitored quarterly and includes comprehensive reporting in this respect from the SOC themselves which is discussed quarterly at departmental level.” Brown remains confident that load shedding will not impact on the implementation of the NDP. “In its wisdom, the NDP has ensured a phased approach to which the DPE has aligned and taken its cue from the Medium Term Strategic Framework.In the first five years (2014 to 2019), the emphasis will remain on lowering unemployment and accelerating infrastructure investment to promote economic recovery. This demands urgent investments in rail, water and energy infrastructure, alongside regulatory reforms that provide policy certainty.

“Load shedding has become a necessary detour from total black out and is a temporary instrument. In the interim, firm investment in the current build programme (Medupi, Kusile and lngula) and disciplined power station construction continues. Government has taken decisive steps to heavily invest in infrastructure and we have formulated partnerships with the private sector that will support the development of the South African economy. “In addition, new ways of thinking about electricity continues with the reform of the electricity supply industry to introduce independent power producers (IPPs) in support of security of electricity supply. “This includes the procurement process for base load coal, cogeneration and the launch of the Gas to Power project. This has unlocked almost R200-billion worth of private sector investments into renewables. Some could interpret this as the ingenuity required for the second phase (2019 to 2024) already rearing its head. The core function of this phase is for South Africa to diversify the economic base. Ultimately, drawing on the energies of the people and in partnership with them, as the NDP calls for, will be our central motivation.” Brown said that she was confident that South Africa’s economy would move forward despite the challenges it faced. “You can see that bold steps have been taken by the current administration in placing infrastructure at the forefront of government’s agenda to transform the economy and stimulate economic growth and job creation. We have taken an uncompromising, unflinching stance in rolling-out the Government Build Programme. Whichever challenges we have had or remain, no one can say Transnet did not, by the end of the 2014/15 financial year, move a total volume of 227million tons against the 228 million tons target (99% rail volume performance against target). “Instead, without doubt, there can be a celebration that such progress, in spite of the constraints, has seen wider and more reliable users of this service taking the strain off the roads and increasing road safety.

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“Whatever the constraints, all projects in the current Build Programme are in the construction phase. Medupi unit 6 is already delivering 794 MW and is now in full commercial operation. Progress is ongoing towards the synchronisation of lngula. Unit 3 and 4 are expected to be synchronised by end of 2015/16 financial year.” She welcomes the fact that there is ongoing monitoring of the NDP’s implementation by Statistics South Africa and the Department of Planning, Monitoring and Evaluation. “Ultimately, however, it will be the tangible social cohesiveness that will be the most telling proxy and one that can only be confirmed by people themselves over and above our reports. Partnership here, remains our motivation.”

She is not blind to the major obstacles that could hamper the implementation of the NDP. “Within the work of the (economic) cluster, the issue of funding for the roll-out of the build programme, is a central restraint. Over and above this, other crippling factors could be the lack of intergovernmental cohesiveness, poor policy and planning processes, inadequate legislation as well as methodologies.” Brown does not believe that there should be incentives for companies to implement the NDP. “This is not about bribing sectors to comply but about the marching orders from our electorate. The ANC election manifesto in which we have placed our people first is the incentive. Financial incentives are a nogo. The implementation of the NDP is

an incentive on its own as its realisation will result in bigger opportunities for both the private and public sector. Companies need to understand that this is South Africa in which they operate and a post-1994 South Africa means a developmental paradigm takes precedence over high profit margins.” She believes the future of the NDP lies in the hands of the youth. “Already the youth directorate within the department, as led by Deputy Minister Bulelani Magwanishe, has ensured provincial engagements in which developmental state aspirations and SOC progress in this area have been robustly taken to various schools and colleges. In addition, the DPE is open to any citizen wishing to partner with us.”

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“According to the National Treasury, between the 2009/10 and 2013/14 financial years the public sector spent just over R1-trillion on infrastructure and will spend a further R813-billion over the next three years.”

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By Stephen Timm With the economy slowing, South Africa must pay closer attention to how it finances infrastructure such as nuclear power stations, new dams, rail links and roads. Drawing in the private sector will be key. The National Development Plan (NDP) points out that rising rates of investment will be achieved initially through state spending on infrastructure, largely aimed at crowding in private sector investment. But with the economy expected to grow by just 2% this year and 2.4% next year, the government will have to run a tight ship if it wants to create viable infrastructure projects that will help grow the country.

INFRASTRUCTURE PROJECTS

In May 2015 President Jacob Zuma said the Presidential Infrastructure Coordinating Commission (PICC) – which is tasked with overseeing the coordination of projects – was monitoring more than 200 project clusters where construction was taking place. They employ about 220 000 workers. Key among these is the construction of the Medupi and Kusile power stations, as well as the Ingula pump station, necessary to resolve the country’s energy crisis. All three are behind schedule. These and other energy build projects are expected to add almost 11 000MW or an additional 25% of power to the constrained current electricity grid of about 43 500MW. Private sector investment will add a further 16% (including 1 500MW which is already feeding the grid). With the country’s current

power crisis expected to shave about 10% off growth (according to estimates by economist Dawie Roodt), the energy projects are desperately needed. Other infrastructure projects under way include the building or expansion of six dams over the next decade, road and port upgrades, new logistics hubs, new bus routes in large cities, the building of new clinics and schools, the rollout of broadband and the Square Kilometre Array (SKA) project. South Africa’s spending on infrastructure has increased markedly since 2000, from under R50-billion a year to over R250-billion a year by 2013 as revealed by expenditure estimates drawn from The National Treasury’s Budget reviews between 2003 and 2013.

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THE ROLE OF INFRASTRUCTURE IN BUILDING THE SOUTH AFRICAN ECONOMY

GOVERNMENT SPEND ON INFRASTRUCTURE

According to the National Treasury, between the 2009/10 and 2013/14 financial years the public sector spent just over R1-trillion on infrastructure and will spend a further R813-billion over the next three years. As a share of gross domestic product (GDP), public sector spending on economic infrastructure such as roads, bridges, dams, electricity and pipelines is now at its highest level in 25 years, reveals this year’s Budget Review. Over the four years from 2014/15 to 2017/18 this will amount to 6.2% of GDP, slightly down from 6.7% of GDP over the five years from 2009/10 to 2013/14, notes political analyst JP Landman. He points to data by the McKinsey Institute which reveals that the average spending on infrastructure for developing countries varies between 2 and 4%. In China it amounts to 8.5% of GDP. Compare this to Brazil, where public investment in infrastructure came in at US$44-billion or 2.4% of GDP last year before its present economic crisis hit, according to consulting firm Inter.B. Brazil’s plan to concession US$65-billion in new infrastructure projects over the next two years, announced in June, will notch this up this to just 3.5% of GDP, according to estimates by the Financial Times. South Africa’s spending on infrastructure is also becoming more effective, with the Financial and Fiscal Commission noting in June that spending performance had improved notably since 2010. For instance, state-owned enterprises improved infrastructure spending markedly, from 60% of budgeted expenditure in 2010/11 to 98% in 2013/14. The government is also taking other measures to improve efficiency, including the use of an incentive-based funding approach to promote more efficient delivery of infrastructure for schools and health facilities and the establishment of a unit to oversee school maintenance. The Infrastructure Development Act, signed into law last year by President Zuma, also aims to strengthen the capacity of government to roll out infrastructure. Among other things, it sets time frames for the approval of regulatory decisions affecting infrastructure projects

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and allows the PICC to expropriate land that is required, subject to the Constitution and relevant legislation. However, investment in infrastructure is now beginning to slow. The three-year projection of spending on infrastructure had to be revised down by R34.2-billion, to R813-billion in the National Treasury’s 2014 forecast, mainly after Eskom and Transnet had to trim capital spending plans because of lower commodity prices and slower global growth or with projects nearing completion. Stanlib chief economist, Kevin Lings, believes the government should invest in infrastructure in a way that will raise the confidence of the private sector to begin investing itself. Private investment, he says, is in a recession which he believes could last for some time. However, the government can’t sit and wait for the private sector to begin investing – the state has to take a leap of faith in order to lift business confidence. But rather than rolling out mega projects which take years to complete, the government should undertake a series of easy-to-do projects such as repairing of potholes or upgrading of public transport. He says that while the country’s electricity supply remains a major constraint on investment and is expected to continue to do so for the next two years, the government should still go ahead with rolling out infrastructure projects, so that they will be ready when the energy crisis ends. The government would then have to make difficult choices because it can’t build everything it needs. Given the choice from its long list of strategic infrastructure projects covering 18 areas, the country should invest in economic infrastructure, above social. This, he says, is because a rail or road link could do more than hospitals or schools, to catalyse private-sector investment.

GOVERNMENT SHOULD WORK CLOSELY WITH THE PRIVATE SECTOR

Added to this, the government should work more closely with the private sector to address those issues that businesses say are holding them back from investing.

According to Nedbank chief economist Dennis Dykes, a big problem is that the public sector wants to go it alone in investing in infrastructure, whereas the funding and experience is in the private sector. Most of the projects over the three coming years will be publicly funded, while a small proportion, such as the Independent Power Producer Procurement Programme and the Cornubia Integrated Human Settlement Project near Durban, are funded by the private sector. Dykes says the government’s main drive should be to draw in the private sector to invest in infrastructure by removing as many

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impediments to private investment as possible – such as fixing the electricity crisis and relaxing labour laws. The government, he reckons, is placing too many requirements on its state-owned enterprises. He singles out the case of Eskom which he says has to meet requirements such as skills training, BEE and others, adding that, in the end, “the last requirement is getting electricity.” He says the expectation that the country can create the skills it needs by using infrastructure projects to carry out onthe-job training on a wide scale, such

as at Medupi, is not sustainable. He believes instead that training should be carried out gradually and describes the government’s plan (contained in the Medium-Term Strategic Framework 2014 to 2019) to procure at least 75% of its goods and services from local producers as an “extraordinary bad idea.” While he concedes that it could work in certain sectors, he says to have a blanket target across all sectors would be wrong, as it would lead to higher input costs and lower the country’s competitiveness. He points to the 60% local procurement requirement on Medupi, which he says has

resulted in delays and cost escalations. In addition, using local production to create an industry in South Africa, he believes, will only work if the country has an unrrivalled comparative advantage in a respective sector. What would be better, he says, would be to gradually ramp up local input values – as is being done with the procurement of locomotives by Transnet. Some might say that with Africa’s vamping up of infrastructure, nurturing a local rail industry might be of strategic importance for South Africa. However, Dykes says that there’s no guarantee that because the country is in Africa that other countries

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on the continent will buy from South Africa. Key will be to ensure that the country is sufficiently competitive in manufacturing train sets, particularly with South Africa’s skills challenges.

ELECTRICITY CHALLENGES

When it comes to addressing the country’s electricity challenges he believes an independent buyer of electricity could help solve the country’s energy crisis in two to three years and would take the bias away from purchasing decisions, as Eskom presently acts as both the generator and retailer of electricity. The independent power producer (IPP) model currently being used by the government for Eskom to buy electricity from private producers is the way to go, he believes; but some in the government remain unhappy that the private sector had entered the energy sector out of what he calls “false ideological reasons”.

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However, Energy Minister Tina JoematPettersson told Parliament in June that the planned procurement of nuclear power stations could be carried out using the IPP model. Despite this, there are increasing concerns that the government’s plan to spend up to R1-trillion on six or eight nuclear power stations will prove too costly for the country. Other critics say that wind and solar are safer and cleaner forms of energy.

COST AND TIME OVERRUNS

In February Anton Eberhard at the University of Cape Town’s Energy Research Centre warned that international experience showed that nuclear projects are prone to cost and time overruns. Modelling undertaken in 2013 by the Centre revealed that South Africa could secure more energy without investing in nuclear power. In addition, other forms of power like solar, liquefied gas and wind would be more affordable. The assumptions are driven mainly by the fall in renewable

energy prices in recent years. There are also concerns that with South Africa’s current low economic growth, electricity prices would have to be radically increased to fund nuclear power stations. Then there’s the question over whether some infrastructure investments have been miscalculated. Take government’s argument that more freight should be shifted from the country’s overstressed roads to rail. The Passenger Rail Agency of SA (PRASA) plans to spend R51-billion on new rolling stock over the next five years, while Transnet is expected to spend an almost equal amount on buying new locomotives. Not all are convinced that big investments in rail is the way to go. Transport economist, Andrew Marsay, questions whether there are not more economic ways of obtaining similar benefits by putting in place safer and better maintained roads, separate truck roads and

CAN INFRASTRUCTURE SPENDING TRANSFORM THE ECONOMY?

Given the probable high cost overruns, can infrastructure spending transform the economy? In a 2005 study, statistician Peter Perkins and colleagues, found that public sector investment in economic infrastructure had a positive effect on GDP growth. He found GDP growth to have a positive effect on railway lines, rail coaching stock, rail passengers, cargo handled at ports, SAA passengers and fixed phone lines.

better regulated engines on trucks. “Rail for freight only makes good economic sense in (relatively) small countries like ours if it is used to carry multi-millions of tons of bulk materials,” he says. He points out that Transnet’s container service between Durban and Gauteng, though improving, cannot presently cover its costs with the current tariff and is effectively having to buy market share – and run the risk of creating infrastructure that will cost far more to maintain than it can earn in revenue. Earlier this year Luke Jordan, a former private sector development specialist at the World Bank, told a conference in Cape Town that data from an Oxford University research group on projects from around the world reveals that nine out of 10 infrastructure projects

Over the long term, between 1960 and 2009, public sector investment in economic infrastructure averaged about 4% of South Africa’s GDP. Perkins found that the relationship between economic infrastructure and economic growth appears to run in both directions. Economic growth provides both the need for, and the resources to fund, various types of infrastructure. Provided that infrastructure projects take place in response to appropriate cost-benefit analyses, they are more likely to promote GDP growth than hinder it and the failure to provide appropriate infrastructure services may impact it.

of taxes and getting users to pay for what they use is the most likely way to ensure that these are properly maintained once completed. The government is trying to instil the principle of user-pay, but at the same time cushioning poorer consumers against major costs – such as exempting minibus taxis and buses in Gauteng’s e-tolls. In May, Deputy President Cyril Ramaphosa spoke of a new dispensation for e-tolls, which included a 50% reduction on the monthly cap for tolls, which was welcomed by critics of the tolls, such as Wayne Duvenage of the Urban Tolling Alliance. This is in line with the NDP’s suggestion that some form of subsidy must be available to ensure that people can access basic services. This can be provided in the form of a grant to households or municipalities to provide free services that meet people’s basic needs. South Africans cannot expect to rely on the government to simply roll out free infrastructure and must not simply assume that any spending on infrastructure is better than none at all. The best kind of infrastructure will be the kind that doesn’t end up indebting future South Africans and which continues to generate payoffs in the way of jobs and economic growth in decades to come.

“The objective for policy makers across all levels of government must be to plan for and provide economic infrastructure that is not too much, not too little, but just the right amount, just the right type, at just the right time and just the right price. It is a difficult challenge indeed,” noted Perkins. Who will pick up the tab for the running cost of some of these projects – like new roads, rail, power stations and dams? A mix

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experience cost overruns – with overruns of up to 50% or more being common. In addition, he says that once the infrastructure is built, demand forecasts used to scope them are almost always wrong. He said South Africa’s R1-trillion infrastructure programme is a classic example, severely behind schedule and with low disbursement levels. Indeed the cost of building Eskom’s Medupi and Kusile coal-fired power stations has jumped by more than 60% from the initial estimates when construction began in 2007.

BUILDING OUR HOUSE ON GOOD PUBLIC SERVICE An interview with the Minister of Human Settlements, Lindiwe Sisulu by Ryland Fisher

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So said Human Settlements Minister, Lindiwe Sisulu, in an interview at her office in Cape Town. Sisulu was Minister of Public Service and Administration at the time the NDP was produced and it had a great impact on her within that position. “When the NDP came out, it was a magnum opus for the government. A group of people who were experienced in their own sphere, were handpicked and approved by Cabinet to work on a long-term plan for ourselves. It was long overdue and cemented our vision for the future. It directed everybody towards what it is that we as a developmental state ought to do and cemented everybody in a particular framework based on the Freedom Charter and the Preamble of the Constitution. “At the time it was launched, I was the Minister of the Department of Public Service and Administration (DPSA) and nothing could have been more fortuitous. It pointed out several things that were wrong with the state and it said categorically that, unless you fix the engine which is the public service, nothing is going to work. It pointed out a number of things that were wrong with the public service: “Number one was the high turnover of DGs. We could not continuously invest in people gaining experience in their job and then remove them.

“It also indicated to me as Minister of Public Administration that, unless the environment around which public service delivers, everything we say as politicians means nothing.” The idea came to Sisulu to start a school of government where government could ensure that public servants were imbued with a particular culture that was in line with the NDP and the Constitution. “They need to understand the laws and why we have them. They are the implementers and unless they have a common understanding, as we do, of where we’re going to, where we’re coming from, they become just automatons. “I invited (former Minister) Trevor Manuel to launch the school and he spoke about why this concept was so central to what we have to do. He explained that we should have a meritorious system of public service and that public servants themselves ought to understand their role in this whole edifice of government and live up to expectations. He unpacked all the values that were in the NDP for the public servants. “He said that they had a responsibility because they drove the state and this was the nature of the state that we want – one that was interventionist, enabling us to intervene in situations that would make it better for our people and that public servants were our front soldiers.

“We have to live by a particular set of ethics, by which we’re judged and most of what you find now in the Public Administration and Management Act comes from the NDP.” V I S I O N 2 0 3 0 , OUR F UTURE OUR P L AN | 8 9

INTERVIEW | LINDIWE SISULU

“It was always impor tant for South Africa to have a plan and the National Development Plan (NDP) should have come much sooner. In fact, it should have been done immediately after the adoption of the Constitution.”

“It gave the public servants a sense that they were important. There is a whole chapter in the NDP dedicated to them. By the time we finished that workshop, they had a new confidence about their place in society. “For me, as Minister of Public Service, it could not have come at a better time. It was long overdue. It came at a time when I really needed to centralise everybody around where we are going and it identified just exactly what needed to be done at that particular time. “The NDP is a living document. We will revisit it when we find that, at a particular time, we’ve either outgrown a phase or it didn’t work. It doesn’t tie us down. Even the Constitution can be changed, so too is the NDP a growing document. Hopefully as we live through it we will be able to enhance it and make sure that it speaks to our problems.” The other matter that was important for Sisulu in the NDP was that it planned to put a stop to the situation where new ministers reinvented policy. “Once policy is adopted by Cabinet, it has to stand unless there are situations that we could not have foreseen. This is something that used to happen regularly: a new minister would take office and what went before would be done away with. I’m hoping that the Ministry of Monitoring and Evaluation in the Presidency will also be able to look at any progress made in relation to the policy that is submitted to Cabinet so that there will be a monitoring, not only of performance but of how well we stick to what we have adopted as policy.” The NDP also laid down strict rules to promote ethical behaviour among public servants. “We have to live by a particular set of ethics, by which we’re judged and most of what you find now in the Public Administration and Management Act comes from the NDP. “Based on the Constitution, it outlines the kind of public service that we need to have. It was very intensive work and it caused a

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bit of resistance. One of the clauses that we took from the NDP is that public servants shall not do business with government. Corruption is corroding our society and when it lodges itself in the State it’s almost as if you’ve got a liver problem, because then very little else in the body functions.” Sisulu said that she was flattered when she discovered that the NDP’s human settlement recommendations coincided with what she had introduced in her previous stint as Minister of Public Service and Administration. “We had called it Breaking New Ground – in South Africa we have a society that is built around racial segregation and, unless we do something about the spatial patterns of our living spaces, we will continue to live as black and white and coloured and Indian and there is no way we will be able to properly transform our society. “We worked with a whole team of people who helped us come up with this idea, which we have now adopted for human settlements – and it is contained in the NDP. Hopefully by the end of the year we will be putting together our White Paper based on the NDP. “It was a brilliant idea from the ANC and well executed by a whole host of highly committed people. When they started off there was a lot of scepticism. It was a great deal of hard work for the Commission required a lot of convincing because where they felt that a particular department was not quite in sync with various policies, there was a bit of resistance. “Of course, we also had the problem of the unions and as Minister of Public Service, I worked a great deal with them. It caused considerable friction, especially when we were discussing the way forward and wage negotiations, because they had a particular ideological negativity towards it. I cannot put my finger on what exactly it was that they did not like about the NDP. For them it was, from the economic space, a continuation of Growth, Employment and Redistribution (GEAR) policies of the government. It was a negativity that was deep-seated and there was nothing we could do about that.”

Sisulu said the vision of the NDP is not unrealistic but provides a guideline about what needs to be done. “It is good that we have a plan. It should have been the second step after the adoption of the Constitution. It took us a long time to realise that we have a gap, but we now have a plan. “The good thing about the NDP is that it is cross-cutting and has been adopted by the whole of Parliament. It’s very rare that we all agree but we came to the conclusion that this is what we all wanted. To sell something as big as that to the Cabinet, the whole of Parliament, is a massive achievement.” Sisulu said that government should not be solely responsible for the housing needs of society. “All of us are. It is a responsibility that we all as citizens have. The reason why government plays a disproportionately bigger role is because the state wanted to make amends for the wrongs of the past. People were removed from their houses in places like District Six and Sophiatown. We take a huge responsibility for making sure that we can make up for that which they have lost. “But at the same time, we came to an understanding, which the NDP outlines, that all of us have a responsibility. This is exemplified by what happened in Marikana. It is an example of what happens when people live in conditions that dehumanise them. It’s not right. “The idea of bringing on board a partnership of responsibility was identified in the NDP. We’re making progress in our pilot projects in 22 mining towns, where we’ve committed about R6-billion and R2-billion has been given to us by the mining houses. Some of the land has been donated by either the mining towns or the mining companies themselves. That’s one way in which we can try to see how we can work together with big business, civil society and employers in general, making sure that the living conditions of our people are in line with what we as a society would like to see 20 years down the line.

“What also came out from the NDP was a focus on the increasing unemployment among the youth. We all took a decision that this is something that we have to attend to on an urgent basis. Each department had to find a way to ensure the youth are engaged in productive labour – otherwise we’re going to be faced with a crisis by 2030. “We decided to embark on a programme called the youth brigade. Every province is required to have a youth brigade which will draw from the ranks of the unemployed youth and equip them with skills. We also have a partnership with the National Youth Development Agency, which reports to the Presidency, and the SETAs. “We’re hoping that in another three years’ time we will have absorbed a huge number of unemployed youth desperate for work. I must add that we are either failing to sell the idea or the youth is not interested in lowly work. As soon as it was announced I had expected, with the huge unemployment that we have, that the phones would not stop ringing. But that has not happened. We’re looking at that to see if we sold it incorrectly – and how we can make it more exciting for them. “What we find them most vociferous about is that they want houses. But there is no policy in this government

that gives houses to everybody. When the Constitution says that the state shall provide adequate housing for the people it does not say it will provide free housing for the people. What it says is that we will provide adequate opportunities for people to have housing because it is a state responsibility. “We try to ensure that there shall be houses for all by assisting those people who have no means to get houses. We build houses for the indigent, for people who have no possibility of improving their circumstances. We want people to either put down a deposit or come and help us build the house.

“Our intention is to build a culture of responsibility, because the value of a house is something we would like everybody to understand. We provide a whole range of subsidies, depending on the circumstances of the person. It is in that subsidy regime that we provide adequate housing for all. We also encourage the private sector to come and help us build houses.” Sisulu said that, in order for ordinary people to take ownership of the NDP, it needed to be written in accessible form. “People are largely concerned about

themselves: How does this improve my life? What’s in this for me? We must package it in such a way that each person sees how they benefit from this Plan. “As the NDP stands now, it’s written at an intellectual level. My aunt in Cofimvaba has no idea what the NDP is. She hasn’t a clue why she should be interested in the NDP. If it is put across in a way that is aimed directly at how she benefits from a government that has a very clear plan, that is accountable to that plan, then it is attractive to her. It must be accessible, attractive and easy to disseminate. “We are also not using the media and the public education platform to make sure that people actually see this as a living document, where they themselves fit in. We’ve got to a stage now where the NDP is in place, the NDP has been adopted; we now need to monitor implementation and compliance and see whether the NDP is reaching the people – and whether the people are responding.”

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INTERVIEW | LINDIWE SISULU

Human Settlements Minister Lindiwe Sisulu hands over a newly built house to Hlekani Shange as part of the National Women’s Day celebrations. (Photo: GCIS)

“We’re making progress in our pilot projects in 22 mining towns, where we’ve committed about R6-billion and R2-billion has been given to us by the mining houses.”

CREATING WORK OPPORTUNITIES A n i n t e r v i e w w i t h t h e M i n i s t e r o f P u b l i c Wo r k s , T h u l a s N x e s i b y F i o n a Wa k e l i n

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“The NDP represents our vision as a government for the next 15 years. It provides focus for everything we do as the Department of Public Works and guides our Five Year Strategic Plan for the period of this Administration as well as Annual Plans.

“Secondly, working with our entity the Council for the Built Environment (CBE) to develop the necessary skills. In a situation where only a quarter of registered professionals are black, CBE has made the following strides:

“Public Works is creating work opportunities through the Expanded Public Works Programme to mitigate the effects of deep structural unemployment and extend the social security net to unemployed and poor people. The department is providing training and work experience, as well as creating social infrastructure and services in poor communities.

“It has implemented a maths and science programme to support learners in disadvantaged communities – achieving impressive results particularly in Limpopo (with the top 27 matric learners in Vhembe District achieving 90% and 89% averages in maths and physics respectively).

“We are committed to creating six million work opportunities by 2019 – and we are on track with one-and-a-quarter million created in the first year (2014/15).” In relation to the Infrastructure Plan which is at the heart of the NDP Strategy, Public Works assists in two ways: “Firstly, working with our entity the Construction Industry Development Board (CIDB) in developing the construction sector through the National Contractor Development Programme to mentor, train and provide opportunities to emerging black contractors. The Register of Contractors and the soon-to-be introduced Register of Professional Service Providers gives us a useful guide to our current capacity and capabilities across various classes of construction work, whilst identifying our shortfall areas. This enables coordinated interventions to achieve our Infrastructure Programme.

“CBE has also implemented a Workplace Training Model for the built environment professions – to unblock the skills pipeline whereby many black engineering graduates fail to find placements; and even those who do find positions do not receive the appropriate workplace training to lead to professional registration. “Public Works has active schools, bursary, candidacy, internship and artisan programmes – mostly in construction – with some 1 297 participants. Last year the department trained 120 youths in KZN and Mpumalanga to operate water services – under supervision. Currently a further 320 unemployed chemical engineering graduates are receiving training and will be appointed to 97 water facilities across the country. “Further ways of making the NDP a reality include working with the CIDB to implement measures that combat collusion in the construction industry – which wastes public money – as well as ensuring regulations

“We are committed to creating six million work opportunities by 2019 – and we are on track with one-and-a-quarter million created in the first year (2014/15).” V I S I O N 2 0 3 0 , OUR F UTURE OUR P L AN | 9 3

INTERVIEW | THULAS NXESI

At his offices in parliament, Cape Town, Minister of Public Works, Thulas Nxesi, shared his views and his passion for how to make the NDP work.

The launch of The Presidency Energy Saving Campaign President Jacob Zuma flanked by Deputy President Cyril Ramaphosa and Minister in the Presidency Jeff Radebe, Minister of Public Works Thulasi Nxesi and Deputy Minister in the Presidency Buti Manamela launched The Presidency Energy Saving Campaign, Union Buildings, Pretoria, 13/03/2015

are in place to make payment of contractors within 30 days obligatory. Best practice clauses included in state tenders will encourage skills development and labour intensive methodologies. “Public Works is mandated to transform the built environment in terms of skills, training, empowerment and better regulation and development of the construction sector. This facilitate the roll out of the Infrastructure Programme – a key pillar of the NDP.” When asked about how his department measures the success and progress of projects, the Minister replied:

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“One of the achievements of the last Administration was to institute a regime of planning, monitoring and evaluation and performance management. This was directly associated with the work of our recently deceased Minister Collins Chabane. What this means is that the implementation of the NDP is measured on a continuous basis through the quarterly assessments of progress on implementation of the various outcomes of the 5 Year Medium Term Strategic Framework (MTSF) – measuring employment, skills and infrastructure. As individual ministers and departments we set five year and annual targets and indicators in line with the MTSF – which is itself based on the NDP – so we also monitor on a

quarterly basis that we are meeting targets; this is cascaded down through the top management of departments to make every manager responsible for their contribution to attaining these targets.” Minister Nxesi was upbeat about South Africa’s ability to deal comprehensively with inequality and poverty. “The NDP – and the strategy to drive economic growth and re-industrialisation – are key to employment creation to combat inequality and poverty. We have also said that it is vital to renew our efforts to address the issue of Land Reform and Agrarian transformation. Still, around 40% of the

– and the strategy to drive economic growth and reindustrialisation – are key to employment creation to combat inequality and poverty.”

population live in the rural areas – mostly in poverty with tenuous access to land and economic opportunities. This is a priority of the second phase of transition.

and regulation – with the Presidential Infrastructure Coordinating Commission (PICC) playing a major role in coordinating projects.

“The Expanded Public Works Programme (EPWP) remains important – in the knowledge that structural employment will not be addressed overnight. In fact, many countries experiencing similar unemployment look to South Africa’s model of rolling out public employment opportunities.

“The shortage of critical skills, particularly in the construction sector, remains a problem, but is being addressed by government across a number of departments – led by Higher Education and Training – which includes Public Works (working with CBE).

“Obstacles to the implementation of the NDP include the bureaucracy in terms of the length of time it takes to obtain planning permission to roll out infrastructure plans. This is being addressed through legislation

“To some extent, South Africa remains at the mercy of international economic trends and developments – which influence the rate of economic growth as well as the cost of obtaining funding. This obviously constrains what we can achieve.

“These problems are compounded by the reticence shown by local companies in investing in the South African economy. This is an area where we need to forge much stronger partnerships and a common understanding of what is required to take us forward.” HOW DO WE GET SOUTH AFRICAN CITIZENS AS A WHOLE TO MAKE THE NDP A REALITY? “Principally by training people and then getting them into productive employment – and supporting small businesses and co-ops to take up economic opportunities created by the NDP.”

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INTERVIEW | THULAS NXESI

“The NDP

THE DEPARTMENT OF PUBLIC WORKS

Director General: Mziwonke Dlabantu

LEADS GOVERNMENT DEPARTMENTS IN THEIR SERVICE DELIVERY MISSION The National Department of Public Works (DPW) is proud to be the anchor on which service delivery by national government hinges. The Department is hard at work pursuing strategies, systems and new technologies that will assist the country in its infrastructure roll out. As an infrastructure-providing department, the DPW is one of the most critical departments for the fulfilment of the objectives of the National Development Plan (NDP) of South Africa. Through the management and regulation of the built industry, the DPW will be of paramount importance in putting South Africa on the path to growth and prosperity with regard to education, job creation and infrastructure development over the next 15 years. Many people and communities, particularly in the rural areas of the country, continue to look to the government to intervene in the fight against poverty, unemployment and marginalisation. The government introduced the Community Based Public Works Programme (CBPWP) between 1996 and 2003 as part of the National Public Works Programme (NPWP). The objectives of that

www.publicworks.gov.za

programme were to: • C reate short-term employment opportunities for community members during the construction of public assets • C reate sustainable employment opportunities by facilitating micro business opportunities associated with the community assets created • B uild the capacity of communities by linking the projects with training Even though that programme was successful, government realised that it had to come up with innovative strategies to fight structural deficiencies in the economy and joblessness. A new flagship programme, the Expanded Public Works Programme (EPWP) was launched in 2004 to address poverty and unemployment through providing work opportunities for poor, unemployed and unskilled people. The current administration has committed to ensuring 6 million public employment work opportunities by 2019. This target is in line with that set in the National Development Plan. By the end of March this year, 1.24 million work opportunities had been created – against a target of 1.04 million, in other

words, a 119% achievement. In short, we are well on track to meeting the 6 million work opportunity target by 2019. The existence of a reliable Immovable Asset Register, and the establishment of a Real Estate Information Registry Services Division, is enhancing Public Works’ ability to leverage this portfolio for socio-economic development, black economic empowerment, support for small businesses and job creation – as well as to generate revenue to maintain State assets. A fair value to assets is being achieved, from a paltry R49 million in 2012/13 to R59.5-billion in 2014/15. The disclosed value of immovable assets will increase significantly as the Register is finalised – thus more appropriately reflecting on the national balance sheet. The Department of Public Works is part and parcel of the government’s efforts to eradicate poverty and underdevelopment in our country. And we are winning.

CHAPTER FIVE SMALL, MEDIUM AND MICRO-SIZED ENTERPRISES

“So how many small businesses would it take to create these 9.9 million jobs?” 9 8 | VISION 2030, O UR FUT URE O UR PLA N

ENTERPRISES

– THE SLEEPING GIANT OF THE SOUTH AFRICAN ECONOMY By Stephen Timm Will South Africa meet the National Development Plan’s (NDP) objective of having small and expanding firms create 90% of the 11 million jobs targeted for 2030?

THE SOUTH AFRICAN SMME LANDSCAPE IN 2015

The NDP cites the 2006 Finscope survey by Finmark Trust, which estimates that 90% of jobs created between 1998 and 2005 in South Africa were in small, medium and micro enterprises (SMMEs). Yet the sector’s performance so far – as well as the county’s low entrepreneurship rate when compared to other emerging nations – has left many doubtful that the target of having small and expanding firms create 90% of the 11 million jobs targeted for 2030 can be reached. To meet the NDP’s target of creating 9.9 million jobs by small businesses by 2030, the sector alone will have to contribute roughly 660 000 new jobs a year. Yet last year the country created a total number of just 400 000 jobs. It’s not known how many of these were created by small and medium-sized businesses (defined in South Africa as firms with fewer than 200 employees). The problem is that, unlike its peers Malaysia, India, Brazil and Chile, the country publishes no reliable statistics on small business. This means figures vary on the size and contribution of the sector.

In April, Deputy Trade and Industry Minister Elizabeth Thabethe, pointed to research by the National Treasury that small businesses presently provide about 60% of the country’s jobs. This is in contrast with a Finscope 2010 study that estimated that small businesses employed six million people, or just under half of the number of employed people at the end of 2010 (which in total came to 13.1 million people employed). If one includes the owners themselves, the figure rises to 11.6 million jobs created by small firms in 2010. So how many small businesses would it take to create these 9.9 million jobs? Endeavor’s jobs calculator, released earlier this year, estimates that South Africa would need to create 362 000 small businesses with between 10 and 50 employees, or 7.4 million new micro firms (those with up to nine employees). Alternatively, the country can bank on creating just over 44 000 small businesses growing at a rate of 20% per year, but this would be the least likely scenario. It’s a huge ask considering that the Finscope study says of the country’s 5.6 million firms – just 1.8 million or just 33% – employ more than the owner themselves.

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SMALL, MEDIUM AND MICRO-SIZED

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Considering that fewer than 3% of South African adults run an established business of three and a half years or more (which is far lower than in other emerging economies) more South Africans will have to start their own business. But so far things aren’t looking too good. The percentage of South Africans starting or running a new business fell dramatically last year over 2013 – by 34%, according to the Global Entrepreneurship Monitor (GEM). Just 6.97% of adults run a business of less than three and a half years old – the total early stage entrepreneurial activity (TEA) – down from 10.6% in 2013. GEM executive director Mike Herrington says he is a “little perturbed” about the drop. However, he cautioned that the drop was from a low base of 10%. “If we had a TEA like other sub-Saharan African countries then there would be considerable cause for concern. We are waiting to see what happens this year. However, I think it could be due to a lack of confidence caused by electricity blackouts, continuing poor education and the regulatory environment.” He believes that it is unlikely that small businesses will create 90% of the jobs SA needs by 2030. “The latest GEM report shows that more businesses are discontinuing than (there are) established businesses; therefore there is a net loss of businesses. So how can we expect to continue increasing employment?” The problem becomes clearer when South Africa is placed among other similar emerging peers. In an analysis by the Small Business Insight blog of a group of eight emerging economies (Brazil, Chile, Colombia, Malaysia, India, Russia, Georgia and South Africa) South Africa, with the exception of Chile and Colombia, has the highest business failure rate. But what makes South Africa’s case concerning is the country’s low number of adults involved in start-up activity and in running established firms. Essentially South Africa’s problem is that too few firms start up and too many close too quickly. A closer look seems to reveal that the problem lies in the quotient of small businesses with 10 to 49 employees, which has shrunk dramatically in recent years. This share fell from 34% to 28% of total employment in firms over the 2008 to 2011 period, far greater than in the US or in Chile where it also fell. In the UK the share climbed by 0.4%. In South Africa firms with nine or fewer employees gained employment share over this period. They now account for 40% of all jobs, up from 37% over the same period. This is in line with a 2013 survey by Statistics South Africa which revealed that following the 2008 recession, firms with less than 10 employees created the most jobs in the majority of the country’s provinces between the third and fourth quarter of 2013. A 2013 report from small business researchers, SBP, based on a survey of 500 firms, reveals that the employment share of those firms employing less than 10 people and those with 10 to 49 employees started off matching one another in 2002, at 27%. As the decade progressed, the 10 to 49 jobs category began to account for an increasing share of the total, reaching a high of about 37% in 2007.

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The group of firms that employ five or more people is smaller still – numbering just 300 000.

However, it’s then, at about the time of the Global Financial Crisis, that the share of employment in these SMMEs fell sharply and was passed by employment in larger firms. Perhaps small businesses are not too good at creating jobs after all. A 2013 report by Andrew Kerr, Martin Wittenberg and Jairo Arrow revealed that when both the number of jobs created and destroyed is taken into account, small firms in the long run destroy more jobs than large firms do. They found that in South Africa larger firms are better net creators of jobs than small firms. Despite this, their assumptions were made without measuring job creation and destruction in unregistered companies – which represent 83% of all small businesses according to the 2010 Finscope study. Yet the trend mirrors developed countries, at least according to a 2009 paper by US entrepreneurship expert Scott Shane, titled Why encouraging more people to become entrepreneurs is bad public policy. South African economist Neil Rankin has suggested that bargaining councils are to 10 2 | VISION 2030, O UR FUT URE O UR PLA N

blame for the declining share of jobs in small business. He says bargaining councils are estimated to be associated with seven to 16% lower employment in small firms. They hold small businesses back because they mandate both small and large businesses to pay the same wages and benefits. Agreements are negotiated by employer associations and trade unions and then extended to non-party firms, which are often smaller firms. But the Word Bank argues in its 2013 World Development Report on Jobs that bargaining councils can explain only a small part of South Africa’s high unemployment rate of 25%. It says given the number of workers employed in industries covered by collective agreements, eliminating the employment effect of bargaining councils would reduce the unemployment rate by 1.5% at the most. It points out the relatively small size of the informal sector compared to other countries at a similar development level. Apartheid, while making it effectively illegal for black Africans to run their own business, left a legacy of high transportation costs for the unemployed,

who tend to live far from where the jobs are. So South Africa’s job creation problems may stem primarily from urban issues, it argues. A report last year by the Centre for Economic Performance, that uses the Organisation for Economic Cooperation and Development (OECD) data, points out that firms that are five years of age or younger contribute positively to aggregate job creation in nearly every period and country considered. But this is only true if they are able to survive their initial years. It’s here where South Africa loses out, with its high business failure rate. The question is whether the recent decline in the employment share of those small firms employing between 10 and 50 employees is a signal that something is holding back these firms. A number of critics point out that to boost small businesses the government must cut red tape. In small business surveys, most business owners repeatedly single out the country’s stringent labour laws, which limit the ability to hire and fire, as the number one culprit.

The NDP says uncertainty about the application of current dismissal provisions undermines the willingness of firms to hire inexperienced workers. To ease entry into formal work opportunities it suggests that ordinary unfair dismissal protections should not apply to employees on probation, up to a limit of six months of service. The Plan also calls for an expert panel to prepare a comprehensive regulatory review for small businesses to assess whether special conditions are required. Last year when the Department of Small Business Development was constituted, the minister in charge, Lindiwe Zulu said her department had started on such a review. The department is also conducting workshops across the country with municipalities on reducing unnecessary red tape. However, Jan Theron of UCT’s Institute of Development and Labour argues that apart from attitudinal surveys reflecting the perceptions of business people, there is little empirical evidence of a relationship between labour regulation and employment. If small businesses are offered funding and support can they create jobs effectively? The experience of the National Treasury’s R9-billion Jobs Fund, in which state funding complements existing private funds that organisations put forth might be informative. Over R1-billion in funding has been committed to projects that will offer business support and financing to assist small businesses, with just over half of the contribution in funding to come from the state. The projects are expected to create over 22 000 jobs. Three years ago Inga Gubeka, who runs Indalo Décor, a small company that makes designer wooden bags and home décor, was able to get R25 000 from the Jobs Fund, via the Cape Craft Design Institute (CCDI), based on the expectation that he would create at least one job. He used the funding to buy leather tools and to fund marketing expenses. Three years on he has been able to create three jobs, using just half of the amount. The rest he has banked. He is now looking for a new machine which will create at least one more job. He’s shied away from temporary hires because he is wary that it might put his intellectual property at risk and because he says it takes at least three months to train employees. He says he has had no real challenge from the labour laws

so far, but admits that it is difficult when one has to pay employees even when there is no work. Gubeka is one of 44 business owners whom the Institute has assisted with finance from the Jobs Fund. Since the agreement with the Fund in 2012, R9.5-million of R11.6-million pledged by the Fund has been disbursed, with the Institute adding R2.9-million of its own funding to this. Shortly before the expiry of the funding window (in June), the organisation had helped create 391 of the 451 jobs that it pledged to create. Winston Richards, the CCDI’s business support programme manager, says that the Institute had requested an extension until 31 December to allow participants that have not met their target, additional time to do so. “Well over 90%” of those businesses supported continued to operate, he says. He stresses that the success of the fund with regards to job creation rests very much on the shoulders of the beneficiaries. “While initially they appear willing and able to create the jobs using the funding provided, not all have the staying power and creativity to deliver on their commitments – the craft sector is volatile and heavily dependent on the influx of tourists, especially those that are not able to access foreign markets through exports,” he said.

PRIVATE SECTOR INVOLVEMENT

Half of the R1-billion that has been pledged to small businesses by the Jobs Fund will be channelled to Anglo American. The mining giant has, since April 2013, been assisting small businesses with the help of the Fund. It plans to invest R500-million in order to create 8 000 jobs by March 2018. Half of the amount is from the Fund, which is being matched by Anglo. By the end of March R131.5-million in loans had been disbursed to 91 small businesses. In all, 2 920 jobs have been created. The company has partnered with various other incubator organisations to disburse the funding, while also having set up 15 operational hubs so far to help mentor small businesses. The mining company has been involved in assisting small businesses longer than most other

big companies in South Africa, with its Zimele enterprise development initiative having been established 26 years ago. But Zimele managing director Hlonela Lupuwana stressed that a higher number of transactions does not necessarily translate into an increased number of jobs created. She adds the baseline set for the number of transactions to small businesses to create 8 000 jobs was overestimated. Furthermore, because small businesses require extensive hand-holding and mentoring in bringing the business to full capacity, jobs are usually only created over a longer period of time. “Another problem,” notes Lupuwana, “is access to markets remains a key problem as most start-ups do not always have firm contracts to secure long-term commitments.” Though Gubeka, from Indalo Décor, is one of the few who has been able to create jobs more cheaply, funding small businesses to create jobs is expensive. The 22 000 jobs that the Jobs Fund wants to create will cost about R45 000 each (slightly less than the average at Anglo American of R50 000 per job).

ENTREPRENEURIAL ECOSYSTEMS – RE-CREATION OF A VIRTUOUS CIRCLE

Perhaps a better and more affordable way to promote the sector would be to nurture an entrepreneurial eco-system, a concept promoted by Babson College’s Professor Dan Isenberg, who notes that entrepreneurship depends very much on conditions of the local environment. In an entrepreneurial eco-system various actors – from universities, incubators, funders to government officials – work together to create a virtuous circle which will boost entrepreneurship. Acting alone, the government’s ability to make an impact is limited principally by its lack of skills in servicing the country’s wide array of small businesses. To waken the sleeping giant it needs to partner with the private sector and reduce the impact of unnecessary red tape on small businesses. Small businesses then might have a better chance of creating the jobs the country badly needs.

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THE NDP AND SMMES

â&#x20AC;&#x153;The UIF, in line with creating the envisioned virtuous cycle of expanding opportunities, is investing in these projects with the objective of creating decent employment as well as improving the skills level of South African workers.â&#x20AC;?

CONTACT DETAILS: Physical address: 94 WF Nkomo (formaly known as Church Street), Pretoria, 0001

THE UNEMPLOYMENT INSURANCE FUND ALIGNS WITH THE NDP The Unemployment Insurance Fund (UIF) is an entity of the Department of Labour established to provide short-term insurance to workers who qualify for its benefits. The Contributions Act mandates the institution to collect contributions from employers and employees. The UIF Act (no 63 of 2001) established the organisation and mandates it to pay UIF benefits when the need arises. The organisation provides the following benefits: Unemployment

Illness

Maternity

Adoption

Dependant benefits

It should be noted that there are qualifying criteria for UIF benefits, for more information visit www.labour.gov.za

ACTIVITIES AND OPERATIONS The subdued economic activity in the country highlights the relevance and importance of the organisation in protecting its beneficiaries against abject poverty. More than 50 000 beneficiaries claim for UIF benefits on a monthly basis. The organisation makes benefit payments in excess of R600-million monthly. The volume of claims places enormous pressure on resources and impacts negatively on quality service delivery. The prevailing situation has propelled the organisation to leverage on technological innovation to improve its service delivery model. The uFiling system introduced the virtual concept in which organisations that deal with UIF have the capability to engage and transact with UIF online. This online application system was recently extended to UIF beneficiaries enabling unemployment insurance, maternity, adoption and illness benefits to be submitted online. However, the dependant benefit cannot be processed online because of the complicated verification process required before approval.

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devising strategies to improve the skills base of UIF beneficiaries. However, the unit also provides funding to non-UIF beneficiaries.

HIGHLIGHTS FOR THE YEAR END MARCH 2015 NDP linked performance

The UIF continues to manage its financial resources prudently and is in a strong financial position with reserves amounting to R109-billion. The organisation has been able to invest part of its funds in Social Responsible Investments (SRI) and over R7-billion has been committed to such projects. The capital injections in SRI projects are in line with the key pillars of the NDP. The NDP envisions faster economic growth and higher investment in infrastructure programmes to reduce the high unemployment rate. The NDP’s attack on poverty and exclusion, as well as its focus on economic growth, creates a virtuous cycle to expand opportunities, build capabilities, reduce poverty and involve communities in their own development which will lead to a rise in living standards. The UIF, in line with creating the envisioned virtuous cycle of expanding opportunities, is investing in these projects with the objective of creating decent employment as well as improving the skills level of South African workers. The Fund invested R4-billion with the IDC in the form of bonds listed on the Johannesburg Stock Exchange (JSE). These bonds provide capital to fund start-up industries and to grow existing ones. Transactions can be funded on a standalone or a co-funding basis with IDC. To qualify for funding, a company must contribute to creating or retaining employment opportunities. The UIF/IDC bonds are performing well in the market. Since inception, 258 deals were approved, spread geographically over all nine provinces and across twelve industrial sectors. These deals resulted in 32 741 jobs created and

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21 644 jobs saved, totalling 54 385 jobs. The UIF has injected capital in Corporate Social Investment (CSI) projects through the Public Investment Corporation (PIC). The PIC’s investment strategy is to invest in companies or projects that are committed to protecting the environment, growing the economy through job creation, investing in large scale long-term infrastructure projects, social infrastructure in support of small and medium enterprises and black economic empowerment. The investment strategy of PIC is in line with the NDP requirements which is biased towards a developmental perspective, investing in projects that address South Africa’s unequal past. Furthermore, UIF investments are in line with the NDP’s chapter on economic growth and employment and the focus area is in sectors and clusters that provide decent employment opportunities resulting in a skilled and capable workforce. The organisation has invested R58-million in Eduloan to ensure that the country’s workforce develops skills to assume future job opportunities. It is estimated that more than 4 000 students will benefit from the investment. In a quest to ensure food security, to reduce the dependence on food imports and food price inflation, UIF has established an Agriculture Fund with an investment of R500-million managed by Future-Growth. This investment will strengthen government efforts to ensure adequate food security for citizens while creating decent and sustainable jobs. The UIF has committed funds in other initiatives where support will be provided to SMMEs with the aim of creating jobs; these initiatives will be launched in the current financial year. In addition, the UIF is playing a huge role in capacitating South Africa’s human resource potential. The organisation has established a unit called Labour Activation Programme which is charged with

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The unit was able to train 5 260 UIF beneficiaries in a number of artisan related skills as outlined in the NDP to improve the prospects of employability. According to the NDP, the country must create employment opportunities for 11 million more people by 2030, further highlighting the need for improvement in skills development. The UIF is focusing its energy on the training of potential entrepreneurs. The NDP envisages a situation where small businesses will be the driver of job creation and accordingly the UIF is contributing to the development of future opportunity entrepreneurs and 450 of such people have been trained.

COMMENTARY ON THE SOCIAL SERVICES SECTOR UIF

Globalisation and its interrelated connectivity to global economics has had both positive and negative impacts on social services worldwide. The UIF is not immune to global shocks as was evident during the 2008 global economic crisis which changed the face of the UIF from being a receiver of revenue to a disburser of revenue; into a pro-active institution which sought to be relevant and impact society positively by contributing to South Africa’s economic sustainability. The future strategic direction of UIF will evolve over time and its role in capital infrastructure investments to stimulate economic growth is set to continue. The relevance of UIF`s role as a social security protector hinges on being a proactive and an agile organisation that responds quickly to changes in the external environment. The pointers of a forward-looking organisation are already in place. Already set up are the Actuaries and Investment Unit and a Labour Activation Programme in order to remain relevant in the fast changing insurance industry. The technological changes will set in motion an organisation where operations will be more efficient, freeing resources to support functions such as marketing, communication and customer relationship management to improve its reputation in the market. However, as the organisation evolves it is anticipated that more focus will be placed on investment intelligence on a global scale; the investment returns made will be used for job creation and skills development initiatives to enable South Africa to compete successfully on the global stage.

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the dti is breaking new ground for the future of industrial growth Industrial Development Zones (IDZs) These zones were developed to attract investment and increase exports and the competitiveness of South African products. IDZs are attractive because of their close proximity to an airport or port, good basic infrastructure, and duty-free imports of production-related raw materials and inputs. There are currently five operating IDZs in South Africa. 1) Coega IDZ, is the largest in Southern Africa: • Has attracted investment in the agro-processing, automotive, aquaculture, energy, metals logistics and business process services sectors; and • Has advanced socio-economic development in the Eastern Cape region through skills development, technology transfer and job creation. 2) Richards Bay IDZ, is tailored for manufacturing and storage of minerals and products to boost beneficiation, investment and the development of skills and employment: • Has a well-established network of shipments, tax- and duty-free incentives; and • Aims to encourage international competitiveness and the attraction of export-oriented manufacturing investment. 3) East London IDZ: • Offers growth-oriented companies a specialised manufacturing platform, innovative industrial and business solutions, and access to new markets and strategic industry networks. 4) Saldanha Bay IDZ: • Serves as the primary oil, gas and marine repair engineering and logistics services complex; and • Services the needs of the upstream oil exploration industry and production service companies. 5) Dube Trade Port, which is a portal between KwaZulu-Natal and the world: • The only facility in Africa that brings together an international airport, cargo terminal, warehousing, offices, a retail sector, hotels and an agricultural area

Government streamlining economic growth engines towards industrialisation, regional development and employment creation Special Economic Zones (SEZs) Major achievements have been recorded with the existing IDZs, but there have also been challenges that have meant they have not reached optimal performance. To this end, the Department of Trade and Industry (the dti) has devised regulations that will see the country’s IDZs transformed into new SEZs. These zones will include free ports, free trade zones and sector development zones. SEZs are intended to bring mainstream economic activity to poor and isolated parts of South Africa by leveraging the commercial potential of particular regions. In particular, SEZs offer a more investor-friendly business environment and are regarded as vehicles to attract foreign investment, create employment opportunities and introduce advanced technology.

Benefits of operating within an SEZ A number of incentives will be available to ensure SEZs’ growth, revenue generation, creation of jobs, and the attraction of foreign direct investment and international competitiveness:

• • • • •

15% Corporate Tax Building Allowance Employment Incentive Customs Controlled Area 12i Tax Allowance

For more information, contact 0861 843 384 or visit www.thedti.gov.za

towards full-scale industrialisation and inclusive growth

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CHAPTER SIX BU S I N E S S , T R A D E A N D I N D U S T RY

THE NDP AND THE TRANSFORMATION OF OUR ECONOMY An interview with the Minister of Trade and Industry, Rob Davies by Ryland Fisher

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“The NDP deals with all aspects of society and government. Everyone has a part to play – with government playing a critical, leading role. Everyone’s contribution is crucial if the NDP is going to be implemented successfully. There is consensus on this issue.” Davies said the NDP talked about the diversification of the South African economy which needed to be seen in conjunction with the Medium-Term Strategic Framework (MTSF) that guides the work of government, in line with Vision 2030. “The NDP and MTSF build on some of the existing work in government and, in our case, the Industrial Policy Action Plan. “There’s a line of sight between the work that we are doing and where we need to end up. We inherited from apartheid an economy that had been incorporated into the global division of labour to produce and export primary products, particularly gold, with a gold mining industry that had already passed its peak in the 1970s. Since that period, it has been expelling labour from the industry, first into neighbouring countries, then back into the then South African Bantustan areas and, when influx control collapsed, into the cities.

“When we came to office in 1994 there was a major change in the world with the phenomenon called globalisation. There were new trade laws and liberalisation which undercut much of the highly protected and inward-focused industrial economy that existed. We faced a very serious set of challenges. “In the early years we adapted to that and we attempted to use trade liberalisation as a tool to support more competitiveness in industries and to carve out a bit more space for South African products in export markets. “For some of the quarters in the period from 1994, there was growth of 5% but this was in a minority. Now we have to make structural changes. We cannot occupy that kind of place in the global division of labour. We have to move up the value chain. “Countries that are successful, except for very small economies or ones with small populations or ones with huge resources like oil, have all passed through a stage of value addition, including manufacturing. More than 60% of oil trade is now in intermediate products. “The worst place where you can be in the global division of labour is where we were

“The real problems facing African countries are much more linked to infrastructure deficits and the lack of economic diversification.”

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Trade and Industr y Minister, Rob Davies, who is at the hear t of the transfor mation of South Africa’s economy, believes that it is impor tant for South Africans to acknowledge their problems and that they have a plan, in the NDP, to deal with them.

we now have a black industrialist strategy. It should have its own programme and its own support mechanisms.” This strategy would be driven by the Department of Trade and Industry, said Davies, but would have the support of the BEE Advisory Council which reports to the President. “We have bodies which set standards and there are a number of them. They have historically been very much in the shadows, but we’ve actually identified that they have a critical role to play. We have been trying to get South African products into export markets, where standards are increasingly becoming the issue, at the same time as blocking out of the South African market unsafe and substandard products which create unfair competition to local manufacturing. “We have other agencies which deal with consumer protection. For instance, when you buy a paraffin stove and it falls over, the flame is supposed to go out, but with the substandard ones when the fuel spills the flame does not go out. This is a major cause of fires in low-income communities and informal settlements. We have been trying to ensure consumer protection by keeping out substandard products. historically. This is why we have to support re-industrialisation. Through industrial development, we can move up the value chain. Our trade policy stance is informed by that fundamental reality of industrial development. “We are focusing on regional integration, not to prioritise institutional arrangements that deepen integration within existing communities but rather to broaden integration across the regional communities with the eventual destination of a continental free trade area, whilst recognising that tariff arrangements are not going to crack it on their own. “The real problems facing African countries are much more linked to infrastructure deficits and the lack of economic diversification. We need to cooperate to promote broader industrialisation across the continent to address infrastructure backlogs. This is the work that we’ve been doing and it fits into the MTSF which is supposed to be a line of sight to the NDP.”

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Davies said that most of the agencies under his department are crucial for the implementation of the NDP. “Industrial financing is one of the key challenges. When we started launching our Industrial Policy Action Plans we found that most of the credit that was extended in South Africa was linked to the growth path that we had been on and which depended on things like commodity super cycles which passed their peak in 2011 – and was consumption driven. “Most of the credit extension was to support consumption and not to support any kind of productive activities. “The National Empowerment Fund, which now sits under us, has increasingly been moving towards supporting empowerment in the real economy. We’ve been seeking to promote a shift in the focus of empowerment from small deals where black people become minorities, where we don’t change anything structurally, to focusing on empowering people to play an important and leading role in the real economy. This is why

“We have agencies which deal with regulated industries such as liquor, gambling and the lotteries. The real thing here is to continuously improve the performance in these areas and also address the challenges that they pose. We must realise the opportunities but also limit the negative social impacts. “We have agencies that deal with company registration, such as the Companies Intellectual Property Commission – and here we have been making a serious effort with the new Companies Act to make it much easier to register a company, using new ICT technologies. It is no longer a difficult process to start a company. “We have Export Credit Insurance which is a political risk insurance and supports the Company Act. A number of our agencies in the department and divisions deal with trade promotion and investment promotion and they’re sitting on a steadily increasing pipeline in investments in the productive sectors of the South African economy.

Davies believes that government is trying to improve its communication of the work it is doing on a continuous basis. “Our focus is on Industrial Policy Action Plans which we’ve launched. We launch them in April every year and they cover the financial year in question and the two outer years. They are the finer set of actions that have to be carried out by different government departments and agencies. “We launched these at the time when the global economic crisis had a major effect on the South African economy. We had lost a million jobs, with 200 000 of those in manufacturing. Manufacturing is about 12% of the GDP which means that we lost proportionately more jobs in manufacturing. We stared in the face the very, very real prospect of serious deindustrialisation in this country, but instead we saw a substantial number of investments, of about R25-billion, in the automotive sector. “We’ve seen original equipment manufacturers investing here, including minibus taxi manufacturers, from places such as China and Korea. We have seen a significant and substantial stabilisation of the clothing industry. We changed the incentive and moved it away from the previous model which was duty credit certificates which were being traded to retailers, and which led to a flood of imports. We turned that into a competitiveness-based incentive. “We have also introduced localisation in the clothing industry; one clothing factory we went to was making uniforms for SAA.

“In the metal industries, we have also seen localisation. For instance, all the busses that were used in the 2010 Soccer World Cup were fully bought but now the bus bodies for the rapid bus transport systems are being manufactured in South Africa. “We’ve introduced localisation requirements and we’ve seen big contracts for locomotives and wagons going to partnerships that involve a degree of localisation. We have the largest renewable energy programme on the African continent that is generating the manufacture of wind towers photovoltaic cells. “We’ve seen television manufacturing companies coming here and we’ve grown industries like the film industry – for which we have quadrupled our support in the last five years with the film incentive. Major international films are now being filmed here because of our incentive programme and the quality of our destination. We have also been supporting the Cape Town Film Studio, through a government programme and we’ve seen that making a major impact in the film industry. “We have made an impact in business process services and in the pharmaceutical space. We have carefully managed our industrial policy. If we design it well and resource it properly, it will make a difference, but we are not yet at that stage of leading a new growth path based on productive and value-added sectors. That is the challenge now in South Africa.” Davies agrees that power outages could impact on the implementation of the NDP. “The power situation is one of the binding constraints at the moment on manufacturing. We acknowledge the problem and government is giving priority attention to that. We have short-, medium- and long-term plans to deal with it. It is not acceptable to have so many unplanned outages. “There is a need to generate more electricity and there is a need to address transmission lines. We are not the line department that deals with all of these although we are represented in the war room. Our voice in the war room is to ensure that due cognisance is taken of the needs of the productive sector and that we make sure that industry is accommodated as far as possible.

“It is vital. It is not just a question of keeping the lights on in households, it’s the question of ensuring that there’s adequate power supply to support the industrial development diversification in the economy.” A lack of skills is another issue that could potentially derail the National Development Plan, believes Davies. “The skills issue is a fundamental long-term one which is why there’s a lot of attention on training and skills development. We are not a line department, but we have invested in a number of skills development programmes, supporting generic skills as well as our own skills inside the department because this is the major challenge.“ Davies believes that, while the NDP’s employment targets are ambitious, the targets on inequality are quite modest. “We need to take into account the recent Oxfam study, which was released just before the World Economic Forum, which said that the top one percent in the world have as much wealth as everybody else combined. “The trend line is increasing to concentrate wealth in the hands of that one percent and this is being driven by a number of factors including some of the technological changes that are happening, and the digitisation process. If you transpose that onto an economy like South Africa’s you see it’s easy for those trends to take root and to sharply divide our society. “Working to uplift the poor is an important part of it but we are going to have to address the other side. There is a discussion happening around things like base erosion and profit shifting which is also a global phenomenon. This is where multinational companies understate the tax that they should be paying, or understate the earnings and shift the profits offshore to different places, restructure their tax affairs and don’t make their contributions. This is something that’s recognised internationally and we are victims of this as well. “We are going to have to bite some bullets. We need to have discussions at some point about where the contribution of the wealthy is in all of this. And how the wealthy work with poor people in our country.”

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“You can set up business without any real hassles here but most investors want to know about the regulatory regimes and what they have to do and also what centres and support programmes are in place. “Trade Investment South Africa has a network of foreign representatives and has managed substantial investments in recent years. We have another division that deals with trade negotiations where our focus has been on African regional integration but we are inevitably drawn into other things. At the moment the renewal of the African Growth and Opportunity Act is the issue on the table but earlier on it was the negotiation of the economic partnership agreement with the European Union.”

THE NATIONAL DEVELOPMENT AGENCY LAYING FOUNDATIONS FOR PROMOTION OF THE NDP The National Development Agency (NDA) is a Schedule 3 Public Entity that reports to Parliament through the Minister of the Department of Social Development. It was established in terms of the National Development Agency (Act No. 108 of 1998). It was created as an agency that would work very closely with Civil Society Organisations (CSO) in pursuing development goals and addressing issues of poverty. The democratic government recognised the fact that, for CSOs to work effectively in communities, they needed resources – and therefore the NDA was created to contribute towards poverty eradication by allocating grant funding to CSOs so that they can implement development programmes in communities. But it was also created as a way of ensuring that those civil society organisations have the institutional capacity to undertake the work that they are supposed to be doing.

Beyond the two primary objectives – the Agency also has a secondary objective – to consult and share best practices that would come out of the work that is done with key stakeholders in the development sector. The NDA’s programmes include early childhood development (ECD), income generation, food security and capacity building. With ECD, the agency facilitates funding and training, and through the income generation projects, it supports those that are unemployed, particularly the youth and women. The food security programme assists children and poor families through the various projects for income generation – and through capacity building, the Agency capacitates civil society organisations. These four critical programmes enable the NDA to build the voiceof

These four critical programes enable the NDA to build the voice of the poor – all of which aligns exactly with what the NDP and Vision 2030 want to achieve. In line with its mandate, all grants made to civil society organisations have a primary objective of building the institutional capacity of targeted organisations so as to ensure that CSOs are able to deliver services to disadvantaged communities. The emphasis on capacity building is informed by a need to ensure sustainability of CSOs. The NDA believes that the role of civil society organisations is critical in making Vision 2030 a reality as it cannot simply be a government initiative alone. Since 2013, following the National NPO Summit recommendations, the NDA has trained over 5 000 civil society organisations to enable them to implement development programmes, comply with NPO legislation and account for funds that they receive from donors. Amongst the Agency’s major successes is the implementation of Early Childhood Development services and the impact this has had on the lives of children and communities in targeted areas. This has been possible through, among other things, the provision of Mobile Early Childhood Services. This innovative approach has enabled the Agency to increase ECD coverage and reach with a particular focus on informal settlements and rural areas. The National Development Plan (2011:274) research findings, released by the National Planning Commission indicated that well planned and targeted early childhood development initiatives can be a costeffective way of ensuring that all children have a childhood that is free of factors that impede their physical and cognitive development. To encourage excellence in the ECD sector, the NDA introduced early childhood development awards aimed at promoting best practice amongst practitioners and key role players in the sector to ensure that interventions contribute towards breaking the cycle of intergenerational poverty.

For more information, please visit: www.nda.org.za or call +27 11 0185 500. You can follow us on the following platforms: • Facebook: National Development Agency – NDA • Twitter: @nda_rsa • Instagram: @nda_rsa

The slogan of the NDA is ‘Unlocking Potential’ and with energetic, passionate and committed development specialists, the agency is certainly living up to this.

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GOVERNMENT NEEDS TO TAKE BUSINESS INTO ITS CONFIDENCE

An interview with business icon, Christo Wiese by Ryland Fisher

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Christo Wiese is one of the richest people in South Africa, but he remains humble and does not hesitate to share the reasons behind his success. At heart, he remains positive about South Africa and its future. “I remain very positive. But, I also accept that we are going through a very, very difficult patch,” said the controlling shareholder of Shoprite Holdings Limited and Chairman of Pepkor in an interview conducted in March 2015. “In terms of building the rainbow nation, we seem to have gone backwards in the past few years. So, yes, there are things at the moment which appear to be worrying signs. However, I believe that this is only part and parcel of us creating the new South Africa that we all believed had arrived in 1990. It is temporary. It’s not unusual for a society in transition such as ours to go through these problems, but that does not detract from the essential potential of South Africa, provided we all as South Africans can take hands and once again commit ourselves to the belief that we will sink or swim together.” Wiese, who spent many years as Chairman of the Industrial Development Corporation, said that the biggest problem facing South Africa today is that in many respects,

we are stuck in a time warp. “We have this wonderful Constitution. We have a wonderful plan on the table, the National Development Plan, that in my view sets out very clearly what we need to do in order to be a winning nation. It states very clearly that we should professionalise our civil service. We should get the best people in to do the job, whether they are pink, yellow, white, black, it doesn’t matter. We’re a country that has to compete in a very competitive world. We have to use the best talent that is available, to the benefit of everybody. Secondly, something that is hugely frustrating and that is also touched on in the National Development Plan and it’s not a uniquely South African problem, is over-bureaucratisation. I just don’t know how a young entrepreneur today manages to start a business.” Wiese said he believed the NDP to be a realistic document. “It’s very realistic. There’s an old saying in Ireland that if you don’t know where you’re headed, it doesn’t really matter which route you take. We know where we should be heading and the NDP gives clear beacons and guidelines – I’ve touched on one or two of them, but there are many others and I don’t think it’s unrealistic. It’s perfectly achievable, but we then have to have the political will and we

“The NDP will create a country that starts achieving its true potential.” V I S I O N 2 0 3 0, OUR F UTURE OUR P L AN | 1 1 7

INTERVIEW | CHRISTO WIESE

Christo Wiese (BA, LLB, DCom (h.c.), CA (SA) is an independent Non-executive Director at Steinhoff Inter national Holdings and Non-executive Chair man of Invicta Holdings; he is also Chair man of Pepkor and controlling shareholder of Shoprite Holdings Limited, Africa’s largest retailer. He recently was awarded an honorar y doctorate for his contribution to the South African economy.

have to have the clear understanding among all South Africans that we must take hands and work towards a common goal. If we do this, then there’s nothing unrealistic about it.” The slow movement on the NDP could be attributed to a range of factors, according to Wiese. “One of the factors that I have referred to is this over-bureaucratisation and cadre deployment. This makes me think of the old saying, ‘there’s poison in the pot’. South Africa keeps on getting terrible press, because every day or every week there’s some scandal of somebody that had cooked his credentials to get a top job, some highranking official that is accused of fraud or corruption. “It is just shocking and I ask myself how is it possible that we keep having apparently so many people appointed into positions which

11 8 | VISION 2030, O UR FUT URE O UR PLA N

within a year or two, are found to have done something that makes them unsuitable for the job? How is that possible? “South Africa has an abundance of talented people across all societies. Why must somebody always be picked that has some bad baggage? I just don’t get it. What is the picture that goes out there? “Like in the apartheid days, the Nats always complained that the press was biased and it gave only one side of the picture, today we are saying the same. There’s always an element of truth, but at the same time that we have all these problems, there are also good things happening in South Africa.” Wiese feels that business and government must learn to trust each other. “Fortunately nowadays we can talk about business and no longer about white

business. But business and government do not seem to trust each other. They don’t seem to engage robustly albeit behind closed doors. We need to sit around a table and say that we, as businesspeople, have an understanding of the political realities out there. This country has a past and we understand it. We have challenges but let’s just look at them and tell you what we need to do in order to make business in this country flourish to the benefit of all. That sort of interaction is indispensable. We cannot do without it in this country.” Wiese said, within his businesses, they were contributing to the NDP by creating jobs. “Our group’s first commitment to making the National Development Plan work is through creating employment opportunities, which we do at the rate of 10 000 to 15 000 new employment opportunities per year, every year. That’s the first thing, because without

“We can overcome them in a short time by simply saying the state alone cannot, should not, deal with this problem. Let’s get private sector participants in. That has started to happen in all fairness, but not in a dramatic way, where you say ‘That’s it, we are now going to give out licences or tenders’.” Wiese says that, if properly implemented, the NDP will provide a better life for the majority of South Africans.

“I remain very

positive. But, I also accept that we are going through a very, very difficult patch.” jobs you can’t do all the other things, you’re not going to get off the ground. “The first thing is to create employment opportunities. The second one is create opportunities for people to grow. Thirdly, we have social responsibility programmes supporting schools, supporting education, etc. These are all, regrettably, drops in the ocean, but they are all very valuable drops in the ocean. I also believe that business people should speak out the way I’m now attempting to do without shouting at people or insulting people. That’s not the point. We should simply say ‘Guys, let’s forget our differences, surely there are more things on which we agree than there are on which we disagree’.” Wiese believes that the business environment in South Africa is sufficiently free for our country to realise the vision of the NDP.

“I would certainly not define the environment in South Africa as unfriendly for business. But it is in many respects unhelpful. It is just too bureaucratised.” Wiese agreed his companies, especially Shoprite, were doing well on the continent, but said they could have done better. “We would by now already have done much more if we did not have these restrictions on work visas. How can you go and start a business in a country if you can’t bring expertise? A business doesn’t work only because you bring money. You’ve got to bring in expertise, particularly where that expertise does not exist.” Wiese avers that power outages will have a huge impact on the success or otherwise of the NDP. “It has a huge impact in practical terms. It has a much greater impact on potential investment.”

“The NDP will create a country that starts achieving its true potential. That’s what the Plan is designed to do. The Plan is not designed to make us a China, although I can’t see any reason why we cannot achieve this. That’s not the purpose of the Plan. The purpose of the Plan here is to deal with our huge unemployment problem, growing our economy dramatically, so that everybody can benefit from it.” At the age of 73, Wiese said he had no plans to slow down any time soon. “I have no intention of slowing down. We’ve got good businesses, we are solid South Africans, we try to contribute our bit and that will carry on.”

V I S I O N 2 0 3 0, OUR F UTURE OUR P L AN | 1 1 9

INTERVIEW | CHRISTO WIESE

However, he believes these problems can be overcome.

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MISSION

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RICHARDS BAY INDUSTRIAL DEVELOPMENT ZONE The Richards Bay Industrial Development Zone (RBIDZ) is a purpose-built and secure industrial estate on the North-Eastern South African coast, linked to the international deep-water port of Richards Bay. It is tailored for the manufacturing of goods and production of services to boost beneficiation, investment, economic growth and the development of skills and employment. The RBIDZ, which is deemed to be a Special Economic Zone (SEZ), aims to encourage international competitiveness through world-class infrastructure as well as tax, VAT and duty-free incentives to qualifying entities. It is a legally registered entity currently funded by the Department of Trade and Industry and Department of Economic Development and Tourism. The Zone is a brownfield development, neighbouring an already existing industrial area comprising a total of 216 hectares of land, with future potential of more than 1 000 hectares. Like all other Free Trade Zones, Export Processing Zones, Special Economic Zones or Industrial Development Zones all over the world, the RBIDZ strategy is to cluster smaller, downstream manufacturing businesses around the existing major industries already based in the city, as well as attract other small-medium industrial operations. The RBIDZ seeks to provide a significant contribution to the country’s economic growth through creation of employment opportunities, upgrading skills, technology transfer, deepening economic empowerment of Historically Disadvantaged Individuals (HDIs) and the broadening of South Africa’s basket of export products.

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Safety and Sustainability

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CHAPTER SEVEN TRANSPORT

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â&#x20AC;&#x153;The challenges remain but the overall picture has improved over the past decade, with new initiatives and improvements in individual modes of public transport and road infrastructure.â&#x20AC;? 12 4 | VISION 2030, O UR FUT URE O UR PLA N

NATIONAL DEVELOPMENT PLAN Philip Harrison1 Founding member of the National Planning Commission Transport is the mainstay of modern life and the foundation of the economy at all scales. Without it, the logistics of everyday activities and economic enterprise would be impossible. Innovations in transport have allowed activities to happen in different places, enabling space-based specialisation and the resultant mass advances in output and employment since the time of the Industrial Revolution.

THE MAINSTAY OF MODERN LIFE

It is nearly impossible to overestimate the importance of transport systems and yet transport systems also pose a threat to modern society. Transport systems damage the natural environment, contributing significantly to threats of climate change. If they are not properly planned, managed and maintained, they also become congested, unsafe, and inaccessible to the poor or physically challenged. We cannot avoid a serious discussion about the benefits and threats of transport as it relates to the movement of people and goods across all geographical scales (from the neighbourhood to the global).

THE CROSS-CUTTER IN THE NATIONAL DEVELOPMENT PLAN

For the National Development Plan (NDP), mobility is one of the key dimensions of human capability. Although transportation is addressed in detail in Chapter Four of the NDP (which deals with economic infrastructure), it features in almost all chapters of the Plan. It is a concern in relation to the economy, environmental

sustainability, spatial transformation, global connectivity, state capability, social cohesion and health. Transportation is truly a cross-cutter rather than a sector-based concern.

TRANSPORT AND ECONOMIC STRATEGY (NDP CHAPTER THREE)

Transport is an economic activity in its own right2 and, as the NPC Diagnostic noted, it has been one of the fastest growing sectors in South Africa since the end of apartheid. However, transport is also an enabler of growth in all other sectors, and here the assessment is mixed. South Africa has an extensive and sophisticated transportation system and this helped strengthen national competitiveness but there are also inefficiencies in the infrastructure which raise the cost, and reduce the ease, of doing business. A particular concern is the transport demands of the minerals sector with inefficiencies in this area stifling the potential of the sector to drive economic development nationally. Chapter Three of the NDP argues that investments which lower the real cost

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TRANSPORT IN THE

of transport services are among the key infrastructural interventions needed to improve the business environment. Others relate to the availability and cost of energy and the quality of telecommunications. Chapter Three goes beyond our national boundaries, arguing for the importance of transnational transport3 infrastructure and

logistics networks in realising the economic benefits of regional integration. The detail of how this should be done is dealt with in Chapter Four (NDP), discussed below. Importantly, Chapter Three is not only concerned with the rate of economic growth but with the social inclusiveness of growth. The chapter argues that “reducing the cost of living for the poor is essential for achieving a social floor and enhancing people’s lives and their opportunities to effectively participate in society and the economy” (NDP, p. 18). It points out that the three main cost drivers for poor households in South Africa are food, energy and transport. It commits South Africa to “establish effective, safe and affordable public transport” by 2030 and argues that investment in public transport is one of the “direct and immediate measures to attack poverty” (NDP, p. 18). Transport is also identified in the chapter as one of the “key components of a decent standard of living” together with elements such as jobs, nutrition, health care, housing, safety and a clean environment (NDP p. 38)

TRANSPORT AND ECONOMIC INFRASTRUCTURE (CHAPTER FOUR)

This is the chapter where transport is dealt with most directly and extensively. Transport – together with energy, water and

12 6 | VISION 2030, O UR FUT URE O UR PLA N

telecommunications – is a key element of the network of economic infrastructure that is necessary to support the medium-to-longterm economic objectives of the country.4 To

function optimally, South Africa needs reliable, economical and smooth-flowing corridors linking its various modes of transport (road, rail, air, sea ports and pipelines). The NPC Diagnostic pointed out however, that inefficiencies in the movement of goods and people continue to impose considerable costs on the economy. The NDP argued that “in effect, South Africa has missed a generation of capital investment in roads, rail, ports, electricity, water, sanitation, public transport and housing” (p. 44). Identified problems include the following: • T here are serious system limitations on key logistics corridors for the export of coal, iron ore and manganese5 • P ort productivity is substandard relative to our international competitors • O nly around 11% of freight is carried by rail despite the clear advantages of rail in the transportation of bulk commodities • T here has been almost 30 years of underinvestment in passenger rail • T here are significant backlogs in the maintenance of South Africa’s extensive road network6 In response to these logistical challenges the NDP prioritises interventions such as: developing the Durban-Gauteng freight corridor including the dug-out port at Durban; a new coal line to unlock coal deposits in the Waterberg; upgrading the coal line to Richards Bay; the extensive renewal of the commuter rail fleet; and intelligent traffic signalling along logistics networks.

However, the NDP goes beyond support for these key projects in calling for “integrated, holistic, long term perspective on all transport networks with decisions made in the context of growth priorities and considerations such as environmental impact, inclusivity, and the need for access” (p. 184). It calls, for example, for an integrated approach to strengthening and optimising South Africa’s key freight corridors, with the DurbanGauteng freight corridor being priority number one. It accepts that there is a need for further capital investments but it also emphasises the many other factors that must be addressed. There is, for example, a need for significant advances in the cost and efficiency of port operations; the effective maintenance of existing infrastructure; healthy competition between service providers; alignment between national, provincial and local priorities; greater inter-modal flexibility (especially between road and rail); more attention to the maritime sector; and a stronger link between energy and transport planning. The chapter also accepts the need to look beyond the transport sector in addressing mobility. We do, for example, need to pay more attention to the role of spatial planning in establishing where people live and work. If we properly locate and plan settlements into the future, the demands on transport networks will be significantly reduced. We also need to understand the importance of behavioural change. The way we think about transport really does matter and so issues of communication may be as important as technological changes and capital investments.

TRANSPORT AND ENVIRONMENTAL SUSTAINABILITY

In South Africa, transport accounts for around 28% of all energy used, making it the second largest consumer of energy after manufacturing. Transport also contributes around 13% of South Africa’s greenhouse gas emissions.7 This may be considerably less than the more than 80% from the energy sector, but it is nevertheless significant. More worrying, transport is one of the few sectors where levels of emission are still rising. Fortunately however, there are many interventions which could help reduce the direct and indirect effects of transport

on the natural environment including, for example, a modal shift to public transport, greater use of rail for freight, the use of biofuels, increased efficiency of motor vehicle engines, use of electric and hybrid vehicles and non-motorised transport. Particular attention is given in the NDP (and especially in Chapter Four) to the parallel shift towards public transport and to the use of hybrid and electric vehicles in the private market. Attention is given to both the technical8 and attitudinal shifts that would allow this to happen. The NDP does however point to a potential contradiction in the use of hybrid and electric vehicles in a country where over 90% of electricity produced is coal-based. This emphasises again the need to link transport and energy planning in the desired transition to a low-carbon economy. The real impact, argues the plan, will be realised when both the transport and the energy sector are decarbonised.

TRANSPORT AND SPATIAL TRANSFORMATIONS (CHAPTER EIGHT)

One of the dismal legacies of apartheid is the extreme form of spatial fragmentation in the urban and rural areas of South Africa. Large numbers of poor people dependent on public transport live far from jobs and services, posing a severe challenge for access. In Gauteng, for example, one in four workers spend more than an hour travelling to work. There is a powerful rationale for investment in public transport as a form of redress and as a means to bring poor households into the mainstream of the economy. The NDP gives strong emphasis to the need for “effective, safe and affordable public transport.” There are major challenges to be addressed before this goal will be

achieved. Over the past three decades or so, the share of commuter rail and busses of total commuter trips has dropped drastically, despite being heavily subsidised by the state. As the NPC Diagnostic explains, South Africa’s bus fleets are in urgent need of modernisation and little progress has been made nationally in improving and adjusting bus routes to respond to changing patterns of settlement.9 BRT may offer a relatively cost-efficient addition to the various modes of public transportation, but these systems are still in their early stages of development. There have been decades of underinvestment in commuter rail and massive expenditure is needed to modernise the existing network10 although the Passenger Rail Agency of South Africa (PRASA) is now investing heavily in new rolling stock. In Gauteng a new rapid rail system is enticing a segment of the middle class to leave their private motor vehicles at home. The minibus taxi industry has emerged as an enormously important mode of transportation, gaining consistently in modal share. The industry is well suited to South Africa to the complex spatial form of South Africa’s cities and has done well without the subsidies provided to other modes. However, as the Diagnostic observes, there is an urgent need for greater stability and safety in the industry, and interventions such as the Taxi Recapitalisation Programme have been slow in achieving their objectives. The most energy efficient form of transport is Non-Motorised Transport (NMT) but South African urban centres are lagging far behind comparable towns and cities internationally with the needs of pedestrians often ignored; and negative attitudes towards cyclists persisting. Nevertheless, there is some progress as Cape Town and Johannesburg have introduced new cycling infrastructure.

In all these modes of public transport there are “captive customers” who cannot afford the option of a private motor vehicle and the need for inclusiveness and equity requires us to improve the reach and quality of transport for this group. There is however also the need to win custom from those who have options and this does require a system that has the coverage, frequency, safety and cost that competes with the benefits of a private vehicle. Improved public transport will hopefully, over time, reduce the massive dependence of South Africa’s urban middle class on the private motor car and reduce levels of congestion on our roads.11 This may however be a long-term project as the continued growth of the middle class may continue to increase the numbers of private cars on the roads even as public transport improves. The NDP notes that, even with greatly expanded public transport, city dwellers will use cars and transport authorities will need to plan and invest in road and transport infrastructure, including in new technologies that will help optimise traffic flow. The challenges remain but the overall picture has improved over the past decade, with new initiatives and improvements in individual modes of public transport, and road infrastructure. However, challenges remain in relation to individual modes of transport and the now critical need to integrate effectively across these modes. The NDP ranks among the top national investment priorities “public transport infrastructure and systems, including the renewal of the commuter rail fleet, supported by enhanced links with road-based services” (p. 48). While we must get our systems of public transport right, we also need to resolve the underlying problem of spatial

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“The way we think about transport really does matter and so issues of communication may be as important as technological changes and capital investments.”

disjuncture; we can arguably do this

by integrating land use planning with transport planning. Chapter Eight argues that, over time, we should restructure human settlements by intensifying activity around transport networks. This could happen at all geographic scales – in both rural and urban areas. Chapter Eight refers to transnational development corridors which tie South Africa into a sub-regional economy and where accelerated settlement and economic growth is evident. There are also national corridors including the logistics hub connecting Gauteng with the Port of Durban which the chapter argues should receive priority attention as a “national competitiveness corridor.” There is a strong economic and social rationale for strengthening this link between growth and logistics. Research conducted for the NPC indicates residential and economic densification along transport routes in the rural parts of South Africa. People are relocating from isolated rural homes to settle at transport nodes and this concentration of people provides opportunities for economies of scale for public transport and for the provision of other forms of infrastructure and services. The NDP proposes that, given limited resources, subsidised services in rural areas be limited to these places.

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For urban areas, ideas of Transit-Oriented Development (TOD) suggests ways in which concentrations of the poor should be spatially linked into the mainstream of city life through investments in transport infrastructure that provide the supporting backbone for connecting corridors of development. TOD requires compact, mixed-use developments within walking distance of transit stops. This form of economic and residential intensification will increase physical access to the benefits of city life, but will also reduce the environmental footprint of the city, improve the efficiency of infrastructure and promote economic vitality. An example of this approach is Johannesburg’s Corridors of Freedom which aims at spatial transformation by linking future urban densification to investment in Rea Vaya, a Bus Rapid Transit system.

To realise the potential of transport networks in reshaping South Africa’s towns and cities we need to complement ambitious investment in public transport, and new efforts to coordinate between modes of transport, with strong measures to prevent further development of housing in marginal areas and direct new development to transit corridors.

TRANSPORT AND THE CAPABLE DEVELOPMENTAL STATE (CHAPTER THIRTEEN) Chapter Thirteen is concerned with building “a state that is capable of playing a developmental and transformative role” (NDP, p. 407). In relation to transport, this means a state that is able to deliver both the required economic infrastructure and the transportation services which fulfil a basic need for all.

For economic infrastructure, the key issue is the role and functioning of State-Owned Enterprises (SOE). South Africa’s extensive network of rail, freight, port and pipeline assets is largely owned and operated by state-owned Transnet, while the equally extensive network of national roads falls under the South African National Roads Agency Limited (SANRAL). Chapter Thirteen pays careful attention to the role and functioning of SOEs. There are important issues to address in relation to the relationship between shareholder ministries and SOEs and the role of regulators; but also in relation to the alignment between the activities of SOEs and the developmental objectives described in the NDP. The NDP accepts, for example, that there are areas where independent operators are best able to meet transport needs, and that there is a strong argument

The key concern in relation to public transport is institutional fragmentation. Within Gauteng, for example: the commuter rail network is the responsibility of PRASA, a national SOE; the rapid transit railway is run as a partnership between provincial government and a private consortium; the minibus taxi industry is privately run, straddling formal and informal sectors, but is regulated by the national Department of Transport; bus services are provided by a mix of private and municipally-owned companies; while the new BRT systems were established by municipal government and are run by operating companies which include taxi operators as shareholders. The National Land Transport Act, 2009, made provision for integrated planning and operations at a metropolitan or regional scale, across modes of transport and administrative boundaries but little progress has been made towards this goal. The institutional linkage between housing, land use planning and transport, is also weak – with the NDP arguing that South Africa’s large cities should be given greater powers in these areas to promote integrated metropolitan development. In the final analysis, we require a fully integrated system of public transport which provides the user with a seamless experience. This notes the NDP is still a long way from being realised but is critical to the success of Vision 2030.

TRANSPORT AND SOCIAL COHESION (CHAPTER FIFTEEN)

Chapter Fifteen identifies transport as a factor in efforts to unite and build the nation. It explains that the combination of poor transport networks and spatial fragmentation makes the sharing of geographical space across race and class divides extremely difficult. It also banishes the poor to distant townships where work prospects are poor and where quality services are few. Transforming society must, therefore, include improving public transformation and reversing apartheid geography. If this is achieved, South Africans will at least be physically enabled to break out of their immediate communities and share common experiences.

TRANSPORT IN OTHER CHAPTERS

The dimensions discussed above far from exhaust the significance of transport in the NDP. Chapter Six on the inclusive rural economy highlights the importance of transport in food security (through enabling the food value chain). It also indicates how dependent rural towns are on scheduled public transport, and therefore how negative it is when transport networks by-pass lower order towns. Chapter Seven on positioning South Africa in the world indicates how important communications and transportation networks are in maintaining national competitiveness and how dependent regional trade is on continued investment in cross-border networks.12 Chapter Ten on promoting health makes the link between urban design and

physical well-being while Chapter Eleven on social protection argues that affordable public transport will strengthen social security and the social wage. As the NDP notes, South Africa is a transport intensive economy and its economic growth prospects are sensitive to the efficiency, cost and quality of transport network and services. Transport is also a critical element of the everyday experience of all who live in South Africa, and accessible transport services remain a daily challenge for many. The decades of underinvestment in transport networks have fortunately ended. Since 2006, investment in public transport networks has increased at 15% per annum with important advances in BRT, the Gauteng rapid rail and the refurbishment of passenger rail fleet. Some of this investment was prompted by the 2010 FIFA World Cup and so it is important to sustain the momentum. However, it is not all about capital investment. It is necessary, for example, to protect existing investments through ongoing maintenance. It is also critical to deal with the non-physical aspects of access to mobility such as operational efficiency, the integration of transport planning and operations, links to land use planning and the behavioural elements. Rather than dealing with transport as a sector with a chapter of its own, the NDP considers transport to be a cross-cutter that relates to multiple developmental themes and concerns. To achieve Vision 2030 in relation to transport we will need to mobilise energy and skills across a range of social actors and sectors.

END NOTES 1 - Philip Harrison is the South African Research Chair in Spatial Analysis and City Planning hosted by the School of Architecture and Planning at the University of the Witwatersrand. He was also a member of South Africa’s first National Planning Commission (2010-15).

7 - Over 90% of these emissions are from road-based vehicles using diesel and petroleum.

2 - As an indication of the size of this sector, in 2009, South Africa’s logistics industry handled 1 530 million tons of freight over 363 billion ton-kilometres, at a total cost of R 323-billion.

9 - The bus industry received operating subsidies of around R3.7-billion in 2010/11 but its share of public transportation has declined significantly over the past decades.

3 - The Diagnostic report pointed out that, in 2005/06, transport accounted for 20.8% of total annual household consumption expenditure in urban areas, compared to 19.9% nationally and 15.3% in rural areas.

10 - Passenger trips on commuter rail dropped dramatically from 707.5 million trips in 1981 to only 398.4 million in 1992, gradually recovering to 646.3 million in 2008.

4 - The chapter also recognises however that this economic infrastructure is a precondition for providing basic services and therefore also supports social objectives.

11 - IBM’s 2010 Commuter Pain Survey, which analysed traffic patterns in twenty major cities internationally, rated Johannesburg as one of the most congested cities.

5 - A major problem is the underutilisation of the coal terminal at Richards Bay as investment in rail capacity has not kept pace with port expansion.

12 - It does however also indicate that physical networks are a necessary but not sufficient condition for regional trade. For example, a good road cannot facilitate trade if there are delays and inefficiencies at border posts.

8 - For example, the design networks, tariff structures and smart metering.

6 - A total of 20% of the paved road network is presently classified as being in poor or very poor condition.

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for public-private partnerships in the development of South Africa’s major logistics corridors but insists that this should happen within the context of stronger long-term planning and sectorbased regulation.

C O M PA N Y P R O F I L E | P R A S A

COMPANYOVERVIEW

COMPANYDETAILS

PRASA was established in terms of Section 22 of the Legal Succession to the South African Transport Services Act of 1989 as amended in 2008. It is a public entity wholly-owned by Government and reports to the Minister of Transport. The legal mandate directs PRASA to deliver commuter rail services in the metropolitan areas of South Africa, long-distance (intercity) rail and bus services within, to and from the borders of the Republic of South Africa. This mandate is implemented in consultation with and under the guidance of the Minister of Transport.

Company Secretary: Lindikaya Zide Group CFO: Hunadi Manyatsa Group Chief Strategy Officer: Sipho Sithole

COREBUSINESS PRASA has identified the following in delivering public value as the key strategic drivers that will ensure its pole position in public transport: • Improving accessibility and connectivity to marginalised communities • Providing affordable and subsidised transport solutions to the passengers • S upporting economic growth and development through the provision of access to major employment areas • Public employment programmes • Special programme for the unemployed • Supporting the main economic development nodes

Physical address: Prasa House, 1040 Burnett Street, Hatfield, Pretoria Postal address: Private Bag x101, Braamfontein, 2017 Telephone number: +27 12 748 7000 Email address: lzide@prasa.com Website: www.prasa.com

FASTFACTS • Owns 2 228 km of rail track

VALUESSTATEMENT The history of under-investment has prompted PRASA to embark on a vigorous modernisation journey which seeks to revive rail as the backbone of public transport, by expanding its networks and services which include new rail expansion, upgrading and modernisation of existing infrastructure and stations, as well as rail technology advancements.

VISION

• 585 train stations countrywide

• T otal fleet: 1 311 motor coaches and 3 424 trailer coaches • M etrorail: 525 million passenger trips per annum

To be the leader in passenger transport solutions.

MISSION To become a modern public entity capable of delivering high quality passenger services on a sustainable basis by 2018.

• M LPS: 1 082 million passengers per annum • A utopax: 3 157 million passengers per annum (553 buses)

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TRANSPORTING SOUTH AFRICA The main objective and main business of PRASA is to ensure that, at the request of the Department of Transport, rail commuter services are provided within, to and from the Republic; to provide, in accordance with the Department of Transport, long haul passenger rail and bus services within, to and from the Republic in terms of the principles set out in section four of the National Land Transport Transition Act, 2000 (Act No. 22 of 2000). The second objective and secondary business of PRASA is to generate income from the exploitation of assets acquired by it, which include real estate and property portfolio. A further requirement is that, in carrying out its objectives and business, PRASA shall have due regard for key Government, social, economic and transport imperatives and policy objectives.

COMPANY MISSION AND VISION

Mission: To become a modern public entity capable of delivering high quality passenger services on a sustainable basis by 2018. Vision: To be the leader in passenger transport solutions.

COMPANY HISTORY

In 1910, as a consequence of the formation of the Union of South Africa, all railway services in South Africa were merged into the South African Railways and Harbours. The reclassification and renumbering of the rolling stock of the three constituent railways was implemented on 1 January 1912. The South African Railways and Harbours was later renamed the South African Transport Services (SATS). On 1 April 1990, Transnet was created to take over most of the operations of the SATS, with the exception of commuter rail which was transferred to the newly formed South African Rail Commuter Corporation (SARCC). The SARCC owned commuter rail-related assets, including stations and surrounding land, infrastructure and rolling stock, while the services were operated by Metrorail. Initially Metrorail was an operating unit of Spoornet, Transnet’s rail subsidiary; in 1996 it became a separate business unit of Transnet. Long-distance passenger rail services, meanwhile, were operated by Spoornet (now Transnet Freight Rail) under the name Shosholoza Meyl.

PRASA’S EVOLUTION

PRASA has had to overcome various challenges whilst tackling new ones. Since its inception and building on the strategic initiatives of its predecessor, the SARCC, PRASA has embarked on a systematic and sustained programme of redressing some of the legacy programmes arising out of decades of under-investment in public transport infrastructure and services. This programme has been rolled out in three phases: • 2 007 – 2010: Stabilisation of commuter rail • 2 011 – 2014: A focus away from refurbishment to replacement • 2015 – 2018: Growth and expansion Decades of under-investment prompted PRASA to embark on a vigorous modernisation journey which sought to revive rail, as the backbone of public transport, by expanding its networks and services. These include new rail expansion, upgrading and modernisation of existing infrastructure and stations, as well as rail technology advancements. Since 2009, PRASA has succeeded in constructing a modern train system and building a business of the future, whilst beginning to reverse decades of underinvestment. The organisation is geared in position as the backbone of public transport and a mode of choice. Notwithstanding the successes in arresting the decline in and sustaining train services around the country, as

well as advances in modernising and investing in new capacity; there are still challenges that face PRASA. The existing obsolete rail system is unable to deliver train services that are reliable and predictable, yet the costs associated with the operations and maintenance of this system are disproportionately high.

PRASA’S FUTURE

PRASA’s understanding of the changing preferences of commuters, passengers and users of its facilities and maintaining relevance in a market that is becoming more competitive is crucial if the organisation is to continue taking leadership in passenger transport solutions and becoming a modern public entity that delivers public value and high quality passenger services in the most reliable, efficient, safe and secure environment. For PRASA to continue being a leader in passenger transport solutions, rolling out a train system of the future, running an integrated rail network, unlocking the value of its assets and offering integrated yet differentiated customer services is essential in the organisation’s value proposition: • • • • •

Delivery of frequent rural transport Localisation and industrialisation Women in Rail (WIR) Energy regeneration C ontributing to emissions reduction and cleaner cities • Social corporate investment

Physical address: Prasa House, 1040 Burnett Street, Hatfield, Pretoria | Postal address: Private Bag x101, Braamfontein, 2017 | Telephone number: +27 12 748 7000 | Email address: lzide@prasa.com | Website: www.prasa.com

PRASA

PRASA PASSENGER RAIL AGENCY OF SOUTH AFRICA What is the vision and mission of PRASA? Vision: To be the leader in passenger transpor t solutions. Mission: To become a moder n public entity capable of delivering high quality passenger services on a sustainable basis by 2018. How important do you believe the NDP is in securing South Africa’s future? The NDP sets a common focus for action for all sectors within South African society in the fight against the triple challenges of unemployment, poverty and inequality by utilising a multi-dimensional framework to drive a cycle of development with an integrated approach where progress in one area supports and advances others. One of the key pillars of the NDP is investment in public transport infrastructure to benefit low-income households by facilitating improved access to economic opportunities, 134 | VISION 2 03 0, O UR FUT URE O UR PLA N

social spaces and services. What are some of the major projects that PRASA has earmarked for investment in this regard? In implementing the NDP imperatives, PRASA is involved in the development and deployment of the total transport network which helps improve transport efficiency and accessibility while reducing the overall environmental, social and economic costs. PRASA contributes to the NDP by ensuring that rail network expansions and services are informed by spatial development frameworks which balance location of jobs and human settlements. In this regard, development and deployment of commuter rail are based on demand patterns and spatial plans and by bridging geographic distances with the provision of affordable commuter and passenger travel. The NDP has identified establishing reliable, safe and affordable public transport as an objective. How is PRASA contributing to this goal? PRASA’s main focus is improving accessibility and connectivity to marginalised communities through the provision of affordable and subsidised transport solutions to the passengers.

One of the foci of the NDP is “transport alternatives that support minimised environmental harm”. How is PRASA contributing to green transport initiatives? As an environmentally friendly organisation and a responsible state entity, PRASA ensures the reduction of greenhouse gas emissions and approaches stations and commercialisation projects with the aim of zero emissions on buildings by 2030. In addition, PRASA also addresses the clean environment as well as safety and security of its passengers in its stations and transport carriers of rail and bus. PRASA’s energy regeneration ensures there will be 31% energy savings from new trains, 20% energy regeneration and the rebuilding of 20 energy efficient stations. What do you think it will take for the NDP to be a success in South Africa? This will take a collective commitment by all players in advancing the developmental stage agenda underpinned by strong leadership, effective government and active citizenry.

INTERVIEW | PRASA

“ P R A S A’s e n e r g y re g e n e r a t i o n e n s u re s t h e re w i l l be 31% energy s a v i n g s f ro m n e w trains, 20% energy re g e n e r a t i o n a n d re b u i l d i n g o f 2 0 e n e r g y e ff i c i e n t stations.” PRASA is expected to spend R170-billion over the next 10 years on a fleet of modern trains. Please unpack this in terms of the impact this will have on public transport in South Africa. Reversing decades of under-investment in public transport remains the focus of PRASA’s transport solutions in the next 10 years and these include, amongst others: • Creation of a world-class metro service • I nvestment in signalling and telecommunications systems • P rocurement of new locomotives for long distance and metro services • Station and depot modernisation • R ail line expansions and introduction of new services • M anufacturing of 600 new and modern trains (3 600 coaches) • B uilding of a manufacturing plant for the production of new trains • General overhaul of train coaches • R evitalisation of the rail engineering industry • T raining of 19 000 South African technicians, engineers and artisans • Introduction of regional services • Delivering public value What is are some of PRASA’s greatest achievements to date? • R eversing decades of underinvestment in rail infrastructure and systems • Constructing a modern train system • Building a business of the future • Increasing asset value • Introducing new technologies

What can we expect from PRASA over the next 15 years in the lead up to 2030? PRASA’s main focus in the next 15 years will be ensuring that rail becomes the backbone of public transport and a mode of choice, through: • P roviding cutting edge public transport solutions • Creating a modern public entity • Rolling out a train system of the future • Delivering public value • Running an integrated rail network • O ffering integrated, differentiated customer-centric solutions • Unlocking the value of assets

More importantly, understanding the changing preferences of commuters, passengers and the users of PRASA facilities will always inform PRASA’s public transport solutions and value offering.

COMPANYDETAILS Physical address: Prasa House, 1040 Burnett Street, Hatfield, Pretoria General queries: Phone: 012 748 7000 Email address: lzide@prasa.com Website: www.prasa.com

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CHAPTER EIGHT G LO BA L I C O N S

SOUTH

AFRICAâ&#x20AC;&#x2122;S G L O B A L

I C O N S

South Africa has taken significant strides in business, entertainment, sport, ICT, science, technology and health, with each sector boasting South African leaders recognised on a global scale. Vision 2030 looks at some of the countryâ&#x20AC;&#x2122;s most successful icons, inspiring a nation to strive for excellence leading up to 2030.

ABDULLAH IBRAHIM

HUGH MASEKELA

LEBO MORAKE

E N T E R T A I N M E N T By Jocelyn Stiebel

ABDULLAH IBRAHIM

HUGH MASEKELA

Ibrahim relocated to Europe in the 1960s where he was approached by Duke Ellington, world renowned pianist and jazz musician, after hearing him play and orchestrated a recording session for Ibrahim and the band he was playing with at the time. He and his partner moved to New York shortly afterwards where he played at the Newport Jazz Festival before touring the country.

Among other highlights in his career he performed on stage with U2 during one of their biggest ever world tours, as well as performed for Her Majesty The Queen during a New Year’s Eve celebration in 2012.

Born in Cape Town in 1934, Ibrahim grew up listening to traditional African, jazz and religious music – all strong influences on the music he would in time create. His first musical lesson was the piano in 1941, before becoming a professional musician eight years later. Formerly called Adolph Johannes Brand before converting to Islam, Ibrahim formed part of the group that recorded the first ever Jazz LP by black South African musicians.

Ibrahim returned to South Africa in the 1990s and has since performed with numerous symphony orchestras, including one that honoured Nelson Mandela as President in 1994. Ibrahim was the initiator of the Cape Town Jazz Orchestra and continues to perform all over the world today.

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Masekela is a world renowned jazz musician, who has entertained audiences all over the globe and is arguably one of Africa’s most important musicians. His music has conquered international charts, including topping The Rolling Stone’s Jumping Jack Flash with his ‘Grazing in the Grass’. His famous song ‘Bring Him Back Home’ became the anthem for Nelson Mandela’s world tour after his release from prison.

Masekela was born in Witbank in 1939 and was presented with his first trumpet by Father Trevor Huddleston, a well-respected champion in the fight for equal human rights. He left South Africa for New York where he enrolled in the Manhattan School of Music and immersed himself in New York’s Jazz scene. Despite the American influences, Masekela stayed true to his African roots, keeping his signature AfroJazz tone and naming his debut album ‘Trumpet Africaine’.

LEBO MORAKE

Morake was born in Soweto in 1964, during the height of apartheid and entered into the music industry at the age of nine when he dropped out of school to perform in night clubs in and around Soweto. He released his first recorded song a few years later when he was approached by a music producer who watched him perform at one of the town’s popular nightclubs. He later relocated to Lesotho – living in exile – and earned a modest living entertaining tourists at the Victoria Hotel. Morake was approached by a US ambassador who helped him gain acceptance into the Duke Ellington School of Music in Washington D.C. where he studied for three years before moving to Los Angeles to further pursue his career. Morake is most famous for his musical contributions in ‘The Lion King’, which became a global success; ‘The Circle of Life’ won the 1995 Grammy Award for the best instrumental arrangement with accompanying vocal. Morake’s contributions were included in the Broadway stage production of ‘The Lion King’ and furtheried his international success by receiving a Tony nomination.

JOHNNY CLEGG

Clegg is one of South Africa’s most celebrated musicians and equal rights activists. Through his blend of English lyrics and Zulu structure and melody, Clegg’s music spoke to a nation that was in turmoil in the 1970s. Clegg was brought up in Zimbabwe and immigrated to South Africa when he was seven years old and his mother married a South African journalist. His step-father was a crime journalist and Clegg often accompanied him to townships where he witnessed first-hand the struggle of black South Africans. This, coupled with his mother’s jazz and cabaret background, had a deep influence on Clegg’s cultural views and upbringing. While lecturing Anthropology at the University of Witwatersrand, Clegg was signed up to music producer Hilton Rosenthal’s label. Throughout the 1970s and 80s, Clegg and his band grew in popularity through their tours of USA, Canada, Germany and Scandinavia, eventually recording two platinum and five gold albums. Today, Clegg’s music is a favourite of South Africans.He performed at the Nelson Mandela’s 46664 Aids Awareness Concerts; he contributed to the movie adaption of ‘Jock of the Bushveld’ with one of his most celebrated songs ‘Great Heart’ and has won various national and international awards throughout his career.

PRETTY YENDE

SIBONGILE KHUMALO

PRETTY YENDE

SIBONGILE KHUMALO

Having been exposed to the beauty of opera singing, she abandoned her desire to become an accountant and decided to focus instead on her singing – despite her choir teacher advising otherwise. Yende went on to study at the University of Cape Town’s South African College of Music, after which she entered numerous competitions.

Khumalo studied a Bachelor of Arts in Music at the University of Zululand and qualified with an Honour’s in History of Music from the University of Witwatersrand. From the age of 24, Khumalo entered into South Africa’s professional music scene, heading the Federate Union of Black Art’s (FUBA) musical division. She added to her list of qualifications a postgraduate Diploma in Management which equipped her for her role as Chairman of the National Arts Festival in Grahamstown.

Yende is an internationally acclaimed opera singer, performing on stages in New York, Los Angeles, London and Milan. She was born in Mpumalanga in 1985 in the small timber-growing town of Piet Retief. Opera was not a part of Yende’s life; she had never heard such music until she was watching television with her family one evening and heard opera in the background of an advert.

Yende first gained international attention when she became the first artist in history to win first prize in every category of the acclaimed Belvedere Competition in Germany. She completed her training at Teatro alla Scala in Milan before making her 2010 La Scala debut. Since then, Yende has received standing ovations for her performances at the Metropolitan Opera as Adèle in Rossini’s ‘Le Comte Ory’ and at the National Theatre in Riga, Latvia as Micaela in Bizet’s ‘Carmen’.

Described as South Africa’s first lady of song, Khumalo was born in Orlando West, Soweto and raised by her mother, a nurse and her father, a music professor and historian whose passion for a broad range of music inspired her to pursue her own career as a musician.

Khumalo has performed on stages the world over. Her big break came when she won the Standard Bank Young Artist Award for Music in 1993, which marked her as a woman to watch in the music scene. She has toured the US with Hugh Masekela; appeared as a soloist with South African symphony orchestras; and played leading roles in various stage opera productions in Oslo, Norway. Since then, she has been bestowed with a Lifetime Achievement Award by the Naledi Theatre Awards and identified as one of 100 World Class South Africans by City Press.

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JOHNNY CLEGG

CHRISTO WIESE

MARK SHUTTLEWORTH

ELON MUSK

B U S I N E S S By Fiona Wakelin

BRAIT

Brait is an investment holding company whose shares are listed on the JSE and the MTF Market of the Luxembourg Stock Exchange. Brait’s portfolio mostly comprises holdings in privately owned businesses operating in a range of industries. In November 2014 Brait sold its stake in Pepkor* to Steinhoff for R26.4-billion – a deal in which Christo Wiese played a key role; in April 2015 Brait bought an 80% share in Virgin Active for R12.3-billion and then, for R14.1-billion, acquired a 90% stake in New Look, the UK’s second largest retailer of women’s clothing with over 800 stores in Europe, China, North Africa, the Middle East and Asia. This comes ahead of a 50-store launch of Pep&Co, a discount fashion chain targeting mothers and children, which Christo Wiese and former Asda CEO Andy Bond are embarking on. *Pepkor was founded in 1965 and operates retail stores in Africa, Australia and Eastern Europe with about 63% of its revenue coming from South Africa. The company operates 12 retail brands and employs more than 32 000 people in 16 countries. Christo Wiese, founder of Pepkor, owns 35% of Brait.

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MARK SHUTTLEWORTH

Born in Welkom in Free State in 1973, Mark Shuttleworth founded Thawte, an Internet commerce security company in 1996 while studying finance and IT at the University of Cape Town. Verisign bought Thawte for US$575-million in 1999. In 2000 he founded HBD, an investment company and created the Shuttleworth Foundation – “funding people who are unafraid to re-imagine the world and the way we live in it.” He spent a year training (including seven months in Star City Russia) to be a crewmember of Soyuz mission TM34 and in 2002 was the first African in space. In 2004 he founded Canonical Ltd to support free software – particularly the Ubuntu operating system. Shuttleworth currently lives on the Isle of Man.

ELON MUSK

Elon Musk – born in Pretoria in 1971 is the founder of PayPal a money transfer service for Web consumers, Telsa Motors which builds electric cars, SpaceX the first private company to launch a rocket into space and Solar City, a photovoltaic products and services company. He became a multimillionaire at the age of 28 and in 2002 made $165-million in ebay stock when ebay bought PayPal for $1.5-billion. Interviewed on TED Talks, Musk spoke about how crucial solar energy is for the future of the world and humanity: “Sustainable energy is the biggest problem we have to solve this century. We are running out of hydro carbons. We need to find sustainable means of generating electricity. The primary means of power generation will be solar – indirect fusion; the world is already almost entirely powered by a fusion generator in the sky…solar will beat everything including natural gas – otherwise we are in big trouble.”

KOOS BEKKER

The fourth richest man in South Africa, according to the Forbes list, Koos Bekker, ran Naspers for 17 years. He stepped down as CEO in February 2014 and then, after spending a year lecturing at universities around the world, in April 2015 took on the position of chair of the Naspers board. Bekker transformed Naspers into a media powerhouse, with investments in China, India, Russia and elsewhere, including stakes in China’s Internet giant Tencent Holdings and Russia’s Internet Mail. He led the team that created M-Net in the 80s, helped found MTN in the 90s and while heading up Naspers he elected not to take a salary in return for share options.

SAB

Founded in 1895, the South African Breweries (SAB) is the South African subsidiary and historical birthplace of SABMiller one of the world’s largest brewers by volume with more than 200 brands and brewing interests and distribution agreements in 75 countries across six continents. The company operates seven breweries and 40 depots in South Africa with an annual brewing capacity of 3.1 billion litres. SAB’s soft drinks division is Amalgamated Beverage Industries (ABI), one of the largest producers and distributors of CocaCola brands in the southern hemisphere. With five state-ofthe-art manufacturing plants in South Africa, ABI accounts for approximately 60% of Coca-Cola’s sales in South Africa. SAB employs nearly 9 400 people and 355 000 full-time jobs in South Africa can be directly or indirectly traced back to the production of SAB’s products.

OLD MUTUAL

SAB BREWERY

Founded in 1845 in South Africa, Old Mutual is an international savings, insurance and banking group and is now a FTSE100 listed company. The group has expanded through organic growth and strategic acquisitions and since 1999 has been listed on the London and Johannesburg stock exchanges. It operates through market-leading international and local brands including Old Mutual, Nedbank and Mutual & Federal throughout Africa and in the UK and US and focuses on investments, asset management and financial services. As a group, Old Mutual is governed by the EU solvency regulations and local businesses are governed by the regulatory bodies of the country in which they operate. At 31 December 2013, they had an FGD surplus of £2.1-billion and liquidity of £1.3-billion. For the year ended 31 December 2013, Old Mutual reported adjusted operating profits before tax of £1.6-billion (on an IFRS basis) and funds under management from core operations of £294-billion. References: Inventors.about.com TED talks www.forbes.com/profile/koos-bekker www.fin24.com/ www.sab.co.za

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KOOS BEKKER

SKA

SATELLITE

S C I E N C E

A N D

T E C H N O L O G Y

By Fiona Wakelin

THE SQUARE KILOMETRE ARRAY

“The AVN and SKA projects are very exciting. They can make a significant contribution to help Africa enter the trillion dollar global knowledge economy.” – SKA SA project director, Bernie Fanaroff The Square Kilometre Array (SKA) will be the world’s largest radio telescope, with a square kilometre (one million square metres) of collecting area. Using thousands of radio telescopes, in three unique configurations, astronomers will be able to monitor and survey the entire sky thousands of times faster than any system currently in existence. Located in Africa and in Australia, it will exceed the image resolution quality of the Hubble Space Telescope by 50 times, whilst also having the ability to image huge areas of sky in parallel. With a range of other large telescopes being built and launched into space over the coming decades, the SKA will perfectly augment, complement and lead the way in scientific discovery. South Africa has already demonstrated its excellence in science and engineering skills by designing and building the MeerKAT telescope – as a pathfinder to the SKA. The MeerKAT radio telescope, being built 90 km outside Carnarvon in Northern Cape, is a precursor to the Square Kilometre Array telescope and will be integrated into the mid-frequency component of SKA Phase 1. The first seven dishes, KAT-7, are complete and have already

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produced their first pictures; more than 500 international astronomers and 58 from Africa

have submitted proposals to work with MeerKAT once it is complete. Bernie Fanaroff, retired Director of SKA project received the Mapungubwe silver award for his contribution to astronomy and dedication in raising South Africa’s international stature as a world-class research destination, particularly in securing the majority of the SKA project for Africa.

SOUTH AFRICA’S SPACE PROGRAMME

South Africa is an active participant in the international space arena. South African space professionals participate in numerous specialist and political forums, such as the United Nations Committee on the Peaceful Uses of Outer Space. South Africa is one of the co-chairs of the Group on Earth Observations (GEO) and was the 2007 chair of the Committee on Earth Observation Satellites (CEOS). The country started its space programme in the 1980s with the aim of developing an Earth observation satellite and launcher. Satellite integration and testing facilities were built at Grabouw in Western Cape and the launch facility was established at Arniston, on the Cape South coast. This programme was, however, discontinued in 1994, before any satellites were launched. In February 1999 South Africa’s first satellite, Sunsat-1, a 64-kg microsatellite, which had

been built by staff and students at the University of Stellenbosch, was launched by NASA. It operated successfully for two years in low orbit, taking numerous multispectral images at 15 metre GSD of Earth. The team that built the satellite established the SunSpace company to develop and market some of the microsatellite technologies that had been pioneered with Sunsat-1. In 2005 the Department of Science and Technology initiated a three-year satellite programme. Managed by the University of Stellenbosch, with SunSpace as the contractor appointed to provide the satellite; it was designed, built and tested in South Africa by more than 40 local companies. Sumbandila (meaning ‘Pathfinder’ in Tshivenda) was launched in September 2009 and operated until mid-2011, producing over 1100 highquality images of Earth. However, the principal legacy of the Sumbandila mission was the human capital development in all the scientific, technical, policy and regulatory aspects of conducting a space activity. In July 2013 the capabilities and intellectual property of SunSpace were transferred to Denel Dynamics, with the creation of a new entity in the Denel Group, Spaceteq. In September of that year Spaceteq was inducted into the International Astronautical Federation (IAF) at the 64th annual International Astronautical Congress in Beijing.

LEE BURGER – MR AUSTROLOPOTHICUS SEDIBA

Professor Lee Burger has been participating in, and leading, expeditions into Africa, and around the world, since the 1990s and up until this year was most renowned for discovering, in 2008, the fossil remains of Austrolopothicus sediba (a possible ancestor of Homo erectus) in the Malapa hills – part of the Cradle of Humankind World Heritage site, north of Johannesburg. Prof Burger’s son Matthew picked up the 1.980 million year old clavicle whilst walking with his father in the dolomitic hills. Then on 10 September 2015, Prof Burger introduced Homo naledi, a new species of human relative discovered in a cave now named “Chamber of Stars” – and described by National Geographic as “ one of the greatest fossil discoveries of the past half century”. “The search for early humans is the search for OUR origins, and that in and of itself is inspiring. The fossils of our earliest ancestors are, in addition, probably the rarest soughtafter objects on Earth and thus the search for them is an addictive and seductive thing as every single piece you find is an invaluable contribution to our present understanding. But it’s not just the adventure and rarity that inspires me, it’s also the fact that I think that understanding humankind’s origins, and the formative processes that make our species the way we are is truly important. Humans are perhaps the most influential species to ever evolve on this planet and we literally hold the future of this planet’s environment in our hands. By understanding our past – where we come from, why we behave the way we do – we can better understand our place on this planet and perhaps become more sensitive to humankind’s place in nature,” – Lee Burger, National Geographic. References: www.ska.ac.za www.spacelab.uct.ac.za Profleeburger.com National Geographic.com

Prof Lee Berger – reader in Human Evolution and the Public Understanding of Science at the Institute for Human Evolution, School of GeoScience at Wits University is also adjunct professor in the Department of Anthropology at the University of Arkansas.

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LEE BURGER

I N F O R M A T I O N A N D C O M M U N I C A T I O N T E C H N O L O G Y By Candice Land

CAT SCAN

Computed tomography, more frequently known as a CT or CAT scan, is a medical procedure used for the diagnosis of various conditions. The CAT scan generates three-dimensional images for an accurate and detailed diagnosis. The images can be viewed on a computer monitor, printed on film or transferred to a CD. CAT scans are able to take images of internal organs, bones, soft tissue and blood vessels in far greater detail than the traditional X-ray. The device can be used to diagnose cancer, cardiovascular disease, infectious disease, trauma and musculoskeletal disorders. South African-born physicist Allan Cormack, together with British engineer Godfrey Hounsfield, invented the CAT scan in 1972. They were later awarded the Nobel Peace Prize for their contributions to medicine and science in 1979. The first clinical CAT scan was installed between 1974 and 1976. Initially, they were dedicated only to head imaging, but soon systems with larger patient openings to fit the whole body were in use by 1976. Since its invention, the CAT scan has made noteworthy strides in speed, patient comfort and resolution. Today, more anatomy can be scanned in less time. The benefits of the CAT scan are multiple. The scan is painless, noninvasive and highly accurate. The images are able to obtain pictures of tissue, bones and blood vessels at the same time. The examinations are fast and simple â&#x20AC;&#x201C; in emergency cases they can reveal internal injuries that can help save lives. Many other medical machines, such as the magnetic resonance imaging (MRI), are sensitive to human movement and are affected by the implantation of other medical devices. The CAT scan is not as sensitive to motion and is unaffected by previous implantations of medical devices in the patient. No radiation remains in the patientâ&#x20AC;&#x2122;s body after the CAT scan and it does not result in immediate side effects.

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CYBERTRACKER

From its Kalahari origin in 1998, CyberTracker software was developed, enabling expert non-literate trackers to record complex, geo-referenced observations on animal behaviour all over the world. Involving scientists and local communities in key areas of biodiversity, CyberTracker combines indigenous knowledge with state of the art computer and satellite technology. Today, it is used by indigenous communities, national parks, scientific research, citizen science, environmental education, forestry and farming, social and health surveys, crime prevention and disaster relief organisations. CyberTracker has won multiple awards and recognition – including the Rolex Award for Enterprise, The Wildlife Society SETWG Award in 2011 and has featured in BBC News as one of South Africa’s top inventions. The vision is that smartphone users all over the world will use the CyberTracker to capture daily observations and stream the data to reflecting visual changes in the global ecosystem which can be viewed in real time.

QUIET CELLULAR ANTENNA

References: www.radiologyinfo.org/en/info.cfm?pg=bodyct www.imaginis.com/ct-scan/brief-history-of-ct www.cybertracker.org/background/our-story mybroadband.co.za/news/cellular/37130-quiet-cellularantenna-technology-for-ska.html

mybroadband.co.za/news/general/99208-great-southafrican-inventions.html

The Square Kilometre Array (SKA) is 50 to 100 times more sensitive than any previously built telescope. One of the most important conditions for the project’s success is maintaining the silence of radio emissions. The invention of cellular antenna technology reduces the ‘noisy’ emissions from cellular base. In 2006, two South African Vodacom employees, Gordon Mayhew-Ridgers and Paul van Jaarsveld, developed the antenna to avoid compromising the SKA research whilst still meeting the need for mobile services in the Karoo. After many successful trials, it has been concluded that the radio frequency (RF) signal levels have been reduced significantly from the SKA core site, whilst still retaining much of the original Global System for Mobile communication (GSM) coverage. The antenna was created with phased array-principles that block the RF transmissions along a single direction. The antenna is patented by Vodacom and has since performed extremely well.

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S P O R T By Candice Land LUCAS RADEBE

LUCAS RADEBE

Lucas Radebe’s fame grew from being a national sporting icon to a global one. Born in 1969 in Soweto during the apartheid era, Radebe defied all odds and developed his football career to peak as captain for an English Premier League team. Starting from humble beginnings, Radebe joined the Diepkloof Wolf Wanderers to play in matches against other township teams. During this time, he squared up against other young players such as Doctor Khumalo, who he would one day play alongside in the national team. Radebe shone as a defender and was recommended to Kaizer Chiefs. He was faced with the decision of continuing to study or committing to a future in football. Kaizer Motaung, Chief’s owner, refused to take no for an answer and so at the age of 20, Lucas became a devoted professional footballer. Radebe began playing for the national side, Bafana Bafana in 1992. Two years later he moved abroad to Yorkshire, England where he played for the next 11 years for Leeds United and adopted the nickname ‘The Chief’. During this time in England, Radebe captained the team in 1998 and in

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the same year Radebe returned to South Africa to lead the national soccer team in the World Cup. Under Radebe’s leadership, Leeds United made significant strides coming fourth in the Premiership in the 1998/99 season and third the following season. After recovering from recurring knee and ankle injuries, Radebe was ready to lead the South African team in the World Cup a second time in 2002. He is South Africa’s most capped football player. In 2010, the Professional Footballers’ Association awarded him with the Special Merit award, placing him alongside other football legends such as Pele and Sir Alex Ferguson. In 2000, he received the Fair Play Award from Fédération Internationale de Football Association (FIFA for his role in fighting racism in soccer. In a recent list published by The Daily Telegraph, Radebe was named as one of the Premier League’s 100 greatest ever players. Although retired from professional football, Radebe is currently an ambassador for the English Football Association and Ambassador for SOS Children’s Villages.

HASHIM AMLA

Amla was born in Durban in 1983. He is a right handed batsman and right arm medium bowler; and the first South African of Indian descent to reach the national squad, becoming captain of the side in 2014.

ERNIE ELS

When he was 21, Amla was appointed captain of his local team – the Nashua Dolphins. His talent was noticed immediately and it was not long before he was leading the South African Under-19 side at the 2002 World Cup. He made his test debut against India in 2004. After a slight set-back in his cricketing performance, Amla made a comeback in a match against New Zealand when he scored 149 runs. He continued to make noteworthy strides in his run-rate and was the fastest player to make 5 000 in One Day Internationals (ODI) in just 101 innings. Amla was titled South African Cricketer of the year in 2006 and in 2013 he was named Wisden cricketer of the year. The International Cricket Council (ICC) currently ranks him as the third best ODI batsman in the world with a rating of 828 and holds third position in batting for test series. Admired for his concentration and deep focus skills, Amla’s career is only expected to go from strength to strength.

ERNIE ELS CHAD LE CLOS

Theodore Ernest ‘Ernie’ Els is a South African golfer and former World Number One. His tall physical stature and fluid golf swing earned him the affectionate nickname ‘the big easy’. Els’s wins started from a young age – in 1984 he won the World Junior Golf Championships in the boy’s 13 to 14 division; and in 1986 won the South African Boys Championship and Amateur Championship. Els has 70 victories since turning professional in 1989, four of which are major championships: The U.S. Open in 1994 in Oakmont; the Congressional in 1997; the Open Championship in 2002 at Muirfield and in 2012 at Royal Lytham and St Annes, in addition to holding a record for Seven World Match Play titles.

Els is currently ranked 86th in the world and has extended his sporting career to include viticulture, on his wine farm based in Stellenbosch and ambassador work. Golf is incorporated in this passion with monthly chipping competitions and the opportunity to host the venue for corporate functions. Golfing courses created by Ernie Els Design hold the principles of sustainable development and sound environmental practice and have won multiple prestigious awards. Els for Autism Foundation is another initiative established in 2009 by Ernie Els and his wife, Liezel, due to the impact that the disorder has on their son.

CHAD LE CLOS

Chad Le Clos is a young South African swimming star who was titled the world’s best swimmer in 2014 by the International Swimming Federation (FINA). Le Clos was also awarded the SA Sports Award for Sportsman of the year in 2014 and set a new world record in the 100 metre butterfly event at the FINA World Short-Course Swimming Championships. The 23-year-old swimmer holds the title for champion as an Olympic, World and Commonwealth platform. Although his focus is butterfly, Le Clos has made global swimming history in the medley races, too. He began competing in swimming at the age of 10. By the time he matriculated in 2010 from Westville Boys’ High School in Durban, he had won the Daily News SPAR Sports Person of the Year in which the top school-sportsmen are nominated. He had also won five medals at the Youth Olympic Games and the Commonwealth Games. In early 2014, Le Clos became the first man to be titled FINA’s Swimming World Cup series winner for the third time, collecting 27 gold medals along the way. He also became the first swimmer ever to go unbeaten throughout a World Cup series. Le Clos’ victories are strongly associated with his passion for the sport.

When Els underwent reconstructive knee surgery in 2005, his career took a slight knock, yet he continued to win titles and

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defeat the world’s top players.

HASHIM AMLA

FRANCOIS PIENAAR

Pienaar studied law at the Rand Afrikaans University after winning an athletic scholarship to the institution. His provincial debut was for the Transvaal province in 1989 and he was selected for the South African squad in 1993. Pienaar was appointed as Springbok captain and flanker from his first test match and held the position until his last. In 1994, Pienaar was voted international rugby player of the year by Rugby World Magazine. The highlight of Pienaar’s career was the 1995 Rugby World Cup when he captained South Africa’s national rugby side to victory. South Africa was a newly democratic country and President Nelson Mandela viewed rugby as a means to unite South Africans in a post-apartheid state. South Africa was initially only seeded 9th and viewed as the under dogs of the tournament when they beat the defending champions, Australia. This win was crucial in the imagery for the new post-apartheid South Africa. The image of Pienaar

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receiving the Webb Ellis Cup from Nelson Mandela who was sporting a Springbok jersey with Pienaar’s playing number became iconic in South Africa and the rest of the world. In his acceptance speech, the trophy was dedicated to South Africa’s nation of 43 million. The film ‘Invictus’ (2009) serves to focus on the miracle story of the 1995 Rugby World Cup. Pienaar has a number of rugby awards and honours. He was voted Rugby Personality of the Year by Britain’s Rugby Union Writers’ Club and Newsmaker of the Year in South Africa (1995). In 2000 Pienaar was awarded an honorary doctorate degree from the University of Hertfordshire in Great Britain. He was voted 50th in the Top 100 Great South Africans and was inducted into the International Rugby Hall of fame in 2005 and the World Rugby Hall of Fame in 2011.

NATALIE DU TOIT

Natalie du Toit, born in Cape Town in 1984, is a global swimming icon and a Paralympics and Commonwealth Games gold-medallist. In 2008, Du Toit competed at the Summer Olympics in Beijing and was the first female amputee to qualify for the Summer Olympic Games. Du Toit was placed 16th in the 10 km Marathon swim, only 1:22.2 minutes behind the winner. Du Toit finished her secondary education at Reddam House and went on to balance her swimming career with a Bachelor of Science degree from the University of Cape town, majoring in genetics and physiology. Du Toitâ&#x20AC;&#x2122;s swimming career started at the age of 14 when she started competing internationally, swimming at the 1998 Commonwealth Games in Kuala Lumpur. In 2001, her left leg was amputated after she got hit by a car whilst riding to school on her scooter. The accident only inspired her to follow her swimming dreams with more motivation. She was back in the water, swimming and training for the 2002 Commonwealth Games three months before she began walking again. She excels in butterfly, backstroke, freestyle and breastroke without a prosthetic limb. She won the multi-disability 50 metre and 100 metre freestyle at the Commonwealth Games in 2002 and left a mark in sporting history when she qualified for the 800 metre able-bodied freestyle final. At the closing of the 2002 Manchester Commonwealth Games, she was awarded the first David Dixon Award for Outstanding Athlete of the Games. In 2003, Du Toit won gold in the 800 metre freestyle event at the All-Africa Games against able-bodied swimmers. At the Athens Paralympics in 2004, she won one silver and five gold medals and carried the flag at the 2008 Summer Olympics opening ceremony in Beijing â&#x20AC;&#x201C; the first disabled athlete to have this honour in an ablebodied Olympics. Du Toit was voted 48th in the Top 100 Great South Africans in 2004 by the South African Broadcasting Corporation (SABC) and in 2010 she won the Laureus World Sportsperson of the Year with a Disability award for breaking the barrier between disabled and able-bodied sport. Although retiring from swimming after racing at the 2012 London Paralympic Games, she still encourages people as a motivational public speaker, inspiring youth to follow their dreams. In addition to swimming, Du Toit has devoted her life to charity and the children of South Africa.

References: www.cricbuzz.com/profiles/314/hashim-amla crickethighlights.com www.relianceiccrankings.com

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NATALIE DU TOIT

STATE INFORMATION TECHNOLOGY AGENCY THE DRIVING FORCE BEHIND THE IMPLEMENTATION OF E-GOVERNMENT SERVICES The State Information and Technology Agency (SITA) is concluding its aggressive transformation phase to better enable the Agency to render an efficient and value added Information and Communications Technology (ICT) service to the public sector in a secure, cost effective and integrated manner, thereby contributing to improved service delivery and citizen convenience. The medium-term goal of the SITA leadership was to stabilise and build sustainability within the organisation which would then allow for growth and productivity. Technology and the need for ICT solutions that drive delivery is a key goal for government. In his budget speech, Minister Siyabonga Cwele pronounced that SITA will make a significant number of public services available online. Therefore SITA remains the driving force behind the implementation of e-government services. The Agency is committed to using the best ICT solutions to build state capacity which will advance the developmental agenda as envisaged by the National Development Plan (NDP) 2030. The government has outlined its key priorities and the NDP will be the vehicle through which delivery is achieved. SITA will play a pivotal role in the successful roll out of the NDP as technology becomes the go-to tool in improving service delivery and bringing meaningful change to the lives of South Africans. In this drive to bridge the digital divide and ensure government modernisation, SITA has a roadmap that includes: â&#x20AC;˘ The e-government gateway solution architecture which is a platform for government departments to send messages to citizens, including electronic forms through text (sms and mms), email and fax. Citizens will also be able to complete government forms online and return them to the relevant department for immediate assistance. â&#x20AC;˘ An e-disclosure system, which allows senior management of the public service to declare electronically their business interests, is ready to be rolled out for

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government consumption. The system will be linked to others which will make it proactive rather than punitive.

• Enterprise content management (ECM) which is a dynamic solution to architecture for government. This transversal system seeks to address more directly the root of some of the findings by the auditor-general that link key government weaknesses to poor document management and a lack of accountability.

Identification System (HANIS) which are the custodian systems of the identities of citizens, residents and visitors to the country. SITA enables the banks to verify the authenticity of Identity Documents of South Africans on the NPR through the government network. SITA hosts the systems that pay salaries of public servants and government suppliers and there has never been an instant when salaries or suppliers have not been paid due to systems failure on the part of SITA. SITA migrated the data of the Department of Social Development/ SASSA to the new social services provider without losing a single beneficiary. SITA, in partnership with Neotel, is undertaking the roll out of broadband in Western Cape provincial government that will connect 2 025 public service outlets, including 1 187 schools and 298 medical clinics on high speed networks. SITA has connected more than 7 000 government institutions.

SOCIAL RESPONSIBILITY SITA believes that the correlation between people, business and the community is inseparable and that a company is fundamentally a social structure. In line with its commitment to promoting sustained social and economic development, ongoing support has been provided to the communities in the geographical areas in which SITA operates its business. SITA’s corporate social responsibility programme has continued to

Company History SITA was established in 1999 to consolidate and coordinate the state’s information technology resources in order to achieve cost savings through scale, increase delivery capabilities and enhance interoperability. SITA is committed to leveraging IT as a strategic resource for government, managing the IT procurement and delivery process to ensure that government gets value for money; as well as to support the delivery of e-government services to all citizens. Mission Our mission is to leverage ICT as a strategic resource to enable government to improve service delivery and to meet the challenges faced by a developmental state. This we will do by building a high performing and innovative organisation with the requisite capability, competency and capacity to meet the IT requirements of government, create shareholder value and deliver high levels of customer, employee and community satisfaction. Vision Our vision is to be a high performing ICT service provider of choice for the public sector. SITA: THE BACKBONE OF SOUTH AFRICAN GOVERNMENT • During the 2014 national elections, SITA helped strengthen democracy and supported the integrity of the voters roll by hosting the voters’ data on behalf of the Department of Home Affairs. SITA maintains and supports the National Population Register (NPR) and the Home Affairs National

support those who have been economically marginalised and previously disadvantaged. As modern technology is crucial and is one of the most powerful vehicles through which to drive transformation, the programmes have focused on empowering teachers and learners in secondary schools through ICT.

Contact information: Erasmuskloof (Head Office) Physical Address: 459 Tsitsa Street, Erasmuskloof, Pretoria, 0048 Postal Address: P.O. Box 26100, Monument Park, Pretoria, 0105 Telephone: +27 12 482 3000 Fax: +27 12 367 5151 Website: www.sita.co.za

GLENDA GRAY

H E A L T H C A R E A N D H U M A N I T A R I A N I N I T I A T I V E S By Jocelyn Stiebel

GLENDA GRAY

Gray is a paediatrician and world-renowned scientist in the field of HIV prevention, focusing on the prevention of mother-tochild transmission during pregnancy. She is a research professor of paediatrics at the University of the Witwatersrand and as of April 2014, the President of the South African Medical Research Council. Gray has been bestowed with multiple awards throughout her career including South Africaâ&#x20AC;&#x2122;s highest honour â&#x20AC;&#x201C; the Order of Mapungubwe (Gold) from President Jacob Zuma in 2014. She adds to her list of accolades the Nelson Mandela Health and Human Rights Award; the Outstanding African Scientist Award; the Hero of Medicine Award for her research on HIV treatment in adults and children; as well as a Doctor of Science (honoris causa) from Simon Fraser University, Canada in 2012 for her work in the field of mother-to-child HIV transmission.

OPERATION SMILE SOUTH AFRICA

Operation Smile South Africa (OSSA), founded in 2006, is an independent branch of Operation Smile International. The foundation is based in Cape Town and provides free surgeries to children and adults who suffer from cleft lips and palates throughout South Africa and abroad. Their work has reached Swaziland, Madagascar, Democratic Republic of Congo, Rwanda, Namibia and Malawi, bringing smiles to the faces of over 4 000 people. The organisation receives donations from around the world, with many ordinary people volunteering to raise funds for OSSA through various endeavours. In a fundraising mission, Tertius Venter, a plastic surgeon from South Africa is planning a cycle of up to 8 000 km in the shape of two smiles around the United States of America. He plans to raise awareness about Operation Smile and the work the

foundation does for children the world over. Miles for Smiles is one of the ways in which money is brought to this cause; it aims to raise awareness for the plight of children born with cleft lips and palates. In 2011, extreme athlete David Grier and his support team, completed a challenge set by Miles for Smiles to run the length of India, nonstop, in one attempt. It had never been done before and its accomplishment meant raising funds and creating awareness for Operation Smile. One of the foundations most recent volunteers, Kyle Dohne, set out to paddle a distance of approximately 486km from Maputo, Mozambique to Durban, raising R500 000, all in References: the name of a smile. www.fredhutch.org

www.mrc.ac.za/about/president.htm milesforsmiles.co.za southafrica.operationsmile.org www.sahistory.org.za whoswho.co.za/jerry-coovadia-2890 www.esdconference.com/van-der-merwe www.sun.ac.za www.thenewage.co.za www.giftofthegivers.org

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MAHOMED ‘JERRY’ COOVADIA

Coovadia is internationally recognised for his contribution to the field of HIV and AIDS, specialising in mother-to-child transmission; his most recent research focuses on the transmission of the disease through breast-feeding. Coovadia began his medical studies at the University of Natal, Durban where owing to the restraint of apartheid he moved to Bombay, India in the early 1960s to continue his education. Coovadia obtained his medical qualification in paediatrics upon his return to South Africa, followed by an MSc in immunology from the University of Birmingham, England. Coovadia’s research and contribution to health and democracy in South Africa has led to numerous awards throughout his career. In 1999 President Nelson Mandela honoured him with the Star of South Africa; he received the International Association of Physicians in AIDS and Care Award in 2000; the Heroes in Medicine Award in Toronto, Canada and the Nelson Mandela Award for Health and Human Rights. He is currently the Director of HIV/AIDS Research at Biomed; Director at the Centre for HIV/ AIDS Networking and is a founding member at the Academy of Science of South Africa.

ANDRÉ VAN DER MERWE

Forty-eight years after Chris Barnard put South Africa on the medical map for the world’s first heart transplant, André van der Merwe and his team of surgeons performed the world’s first successful penile transplant, proving South Africa is at the forefront of medical innovation.

ANDRÉ VAN DER MERWE

In South Africa this transplant has particular import due to deaths arising from complications encountered during traditional circumcision. The operation took place in December 2014 using a donor penis for a 21-year-old whose own organ had to be amputated three years earlier. Three months later, the patient had regained full sensation and was fully functional. Van der Merwe is both head of Stellenbosch University’s Division of Urology and associate professor in the Department of Urology at Tygerberg Academic Hospital, Cape Town. His interests lie in renal transplant, laparoscopy and renal stonetreatment; he regularly travels into Africa to teach the basics of laparoscopy and operation techniques.

IMTIAZ ISMAIL SOOLIMAN

Sooliman is the founder and creator of Gift of the Givers, Africa’s largest disaster relief response organisation. He grew up in a family dedicated to helping the poor and vulnerable and is now a world-renowned humanitarian.

IMTIAZ ISMAIL SOOLIMAN

Sooliman qualified as a medical doctor at the Nelson Mandela Medical School in KwaZulu-Natal in 1984 and opened his private practice in Pietermaritzburg, KwaZuluNatal; he closed his business in 1994 to focus solely on Gift of the Givers, which he had registered in 1992. One year later, Sooliman made history by developing the world’s first and, to this day, only containerised mobile hospital. During his years of humanitarian service, Sooliman has received numerous awards for his dedication and generosity to those in need, including being recognised in 2009 as one of the World’s Most Influential Muslims by Georgetown University; he received an International Commendation Award in 2008; the Excellence in Health Care Award from the South African Medical Association in the same year; the Presidential Award for Pakistan Earthquake from Pakistan President, Pervez Musharraf; the Golden Key Award for Meritorious Service; the South African Navy Award for Outstanding Humanitarian Service; and the Occasional Satyagraha Award from the Gandhi Development Trust.

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MAHOMED ‘JERRY’ COOVADIA

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patients and their families were given food at hospitals; medical implants

GIFT OF THE GIVERS

Gift of the Givers is Africa’s largest non-governmental (NGO) disaster response organisation established in 1992, with 91 awards from heads of state recognising its humanitarian contribution. Since its inception, Gift of the Givers has provided untold relief to victims of various disasters throughout the world, including the Malawian floods; the extreme cold experienced in Gaza 2015; Typhoon Haiyan in Philippines and the earthquake in Haiti. The organisation arranges search and rescue teams, medical services, equipment and supplies, vaccines, anti-malarial medication, high energy and protein supplements, food and water for millions of people in 41 countries. When the Nepal earthquakes struck, Gift of the Givers teams provided support to as many people and areas affected by the earthquakes as were accessible. Medical services were offered by way of establishing seven theatres in numerous hospitals; operating on 102 patients; and treating 700 patients for primary healthcare in various mountainous areas. Furthermore,

and disposables were all supplied as free treatment for victims; 825 families in mountainous districts benefited from food parcels and the set-up of 4 000 tents for shelter has commenced, fully funded by the organisation. When foreigners in South Africa were subjected to violent attacks in March and April 2015, Gift of the Givers was on scene within 24 hours distributing food, blankets, sanitary pads, disposable nappies, hygiene packs and a range of other supplies to the affected foreign nationals. A total of R273 490 was spent on the project in April alone. The foundation provides aid to the most vulnerable, including physically and mentally challenged, hearing and sight compromised, orphaned and vulnerable children and child-headed households. To date, the foundation has delivered over R1.2-billion in aid to countries around the world and has 21 projects running covering areas such as health, education, agricultural sustainability, life skills, job creation and entrepreneurship, feeding schemes, sports and culture as well as winter warmth. For information on how you can contribute to the cause of Gift of the Givers

FIRSTS FOR HEALTH IN SOUTH AFRICA • A new breakthrough in skin grafting means South Africans will no longer have to pay a fortune to benefit from the frequently life-saving procedure. Dr Wayne Kleintjes, head of the Adult Burn Unit at Tygerberg Hospital, has developed a new technique using the patient’s own skin to cultivate more. Although the idea itself is not new, its refinement to a simple and biologically safe procedure costing a mere R1 000, is radical. • S outh Africa was put on the medical map by Dr Bob Banieghbal’s revolutionary surgery on a two-year-old at Chris Hani Baragwanath Hospital. Using the latest advancement in surgery – the Socrates tele-mentoring system – Banieghbal was able to perform a complicated procedure while Benno Ure mentored him whilst sitting in his office in Germany. This was the second time in history this was done – and a first in South Africa. • D u Preez van Staden of Stellenbosch University discovered that fynbos soil in Jonkershoek contains a new kind of bacteria that kills the antibioticresistant pathogen causing skin disease to spread in hospitals; the discovery is a breakthrough in scientific research for the country.

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NATIONAL LIBRARY OF SOUTH AFRICA

Knowledge for the nation The National Library of South Africa is a custodian and provider of the nation’s key knowledge resources. We are mandated by the National Library of South Africa Act to collect and preserve published documents and make them accessible. We ensure that knowledge is not lost to posterity and that information is available for research. The National Library’s collections contain a wealth of information, and include rare manuscripts, books published in South Africa, periodicals, government publications, official foreign publications, maps, technical reports, Africana and newspapers. Many of these are available on CD or microfilm, in digital format or on the Internet. Specialised services The National Library renders specialised services to the public and to the Library and Information Services (LIS) sector. Legal Deposit Act In terms of the Legal Deposit Act, 1997 (Act No. 54 of 1997), South African publishers must supply the National Library (as well as other places of legal deposit) with one copy of every book, journal, newspaper or any other document published in South Africa. According to the Act, a document is any object which is intended to store or convey information in textual, graphic, visual, auditory or other intelligible format through any medium. Special collections The National Library of South Africa is a treasure house of Africana and other items which reflect the indigenous and colonial history of the country. These are all available for consultation and research. Information access and reference services The National Library has reference sections in Pretoria and Cape Town for use by researchers, students, the general public, organisations, and government departments. Those who cannot visit the reference rooms personally can direct their reference and research questions to the library by telephone, fax, post or email. Bibliographic services and collections management The Bibliographic Services Programme is the national bibliographic agency, providing leadership to the South African library and information service community. Specialist librarians create national bibliographic

databases providing easy access to and retrieval of South African materials. Its key activities are: • Authority control – made available worldwide • Index to South African periodicals (ISAP) • South African National Bibliography (SANB). Africa as the primary resource and custodian of South Africa’s Documentary Preservation Services Programme Preservation services The National Library is responsible for safeguarding the national documentary heritage. The Preservation Services Programme strives to ensure the long-term availability and accessibility of South African knowledge resources using conservation techniques that include the reformatting of materials. Documents too fragile to be photocopied are reformatted by the National Library’s reprographic services onto photographic film, microfilm or microfiche, or in digital format. Despite new technological developments, microfilm is still central to the preservation strategy, and is used extensively to copy South African newspapers and manuscript material. The National Library of South Africa maintains a comprehensive database of its microfilm and microfiche master copies. National advisory and coordinating services, including participation in national preservation projects, are offered to other libraries and cultural institutions. Services include: • Reprographic services • Digitisation, conservation and restoration • Stack management • Deacidification unit Centre for the Book The Centre for the Book is a specialist unit of the National Library of South Africa. It provides key information about the book-world to all stakeholders by promoting the importance of books, reading, and writing for our national development agenda. Mzansi Libraries On-Line pilot project Mzansi Libraries On-Line pilot project, an initiative of the Department of Arts and Culture and the National Library of South Africa, is geared to

Contact information 228 Proes/Johannes Ramokhoase Street, Private Bag X990 Pretoria, 0001 South Africa Tel: +27 (0) 12 401 9700 Fax: +27 (0) 12 326 7642 Email: info@nlsa.ac.za Website: www.nlsa.ac.za Facebook: NationalLibraryofSA Twitter: @NLSA1 Youtube: https://www.youtube.com/channel/ UCBqKBJUG4uIYFAy658E4vFw Professor MD Rocky Ralebipi - Simela

National Library of South Africa Cape Town campus

provide and enhance ICT services in 27 public libraries across the country – three public libraries per province. This two-year pilot project is funded by the Bill and Melinda Gates Foundation as part of their Global Libraries programme. The project will form the basis of a country grant which will provide ICTs in most public libraries in the country in order to improve and enhance public library and information services country-wide. Community Libraries Conditional Grant The national Department of Arts and Culture (DAC), in collaboration with provincial departments of Arts and Culture, are coordinating the implementation of the community library conditional grant in all the provinces. The DAC is a key stakeholder in the development of library infrastructure and services and the transformation of library facilities in the country. The aim is to enable all communities to gain access to knowledge and information, eliminating illiteracy, eradicating inequality in the sector, promoting social cohesion, and developing an informed and reading nation. The DAC is the custodian of the community library conditional grant. The purpose of the grant is to address specific inequalities in the delivery of public library services to all communities. The Department, in cooperation with the provincial departments of arts and culture, is working to reach certain predetermined targets: • Improved coordination and collaboration between national, provincial and local government on library services • Transformed and equitable library and information services delivered to all rural and urban communities • Improved library infrastructure and services that reflect the specific needs of the communities they serve • Improved staff capacity at urban and rural libraries to respond appropriately to community knowledge and information needs • Improved culture of reading The community library conditional grant was deployed in 2007 with the allocation of R1-billion for a period of three years. An allocation of more than R3-billion will be made available for this purpose in the mediumterm expenditure framework 2015/2016 to 2017/2018. To date, some of the outputs that have been achieved include: • Provinces have built 64 new libraries nationally

Deputy President of South Africa, Cyril Rhamaposa

• Provinces have upgraded 323 libraries nationally • Approximately 1 274 new jobs have been created in public libraries • Internet access is now available in public libraries in all nine provinces. Public libraries have established themselves as important providers of training in computer literacy skills • Subsequently, library hours could be increased in some provinces and closed libraries could be re-opened • Reading facilities for visually impaired readers in public libraries are being prioritised and rolled out in provinces in cooperation with the South African Library for the Blind, in Grahamstown • The Department completed an investigation in 2013 into the cost of implementing the South African Public Library and Information Services Bill. The outcomes of the investigation informed the Department, provinces, and the sector on the needs and the cost to deliver public library and information services in accordance to acceptable national norms and standards • Literacy programmes are presented in all provinces as part of the target to inculcate a culture of reading amongst South Africans ICT for public libraries The DAC and the National Library of South Africa continue to roll out ICT in public libraries to bridge the digital divide through access to the Internet. The Bill and Melinda Gates Foundation has partnered with the South African government by providing funds to the National Library of South Africa for an ICT pilot project of two years that is unfolding in 27 public libraries across the country – three public libraries per province. A country grant will be considered once the pilot project has been concluded. Cooperation with Department of Basic Education The provincial departments of arts and culture, in cooperation with the provincial departments of basic education, have started an initiative to enhance the information resources available to learners by building new libraries close to schools. The purpose of this strategy is to share the role that public libraries and schools play in the education and development of skills in our communities. The roles of the respective departments in the implementation of this strategy must still be outlined.

Minister of Arts and Culture, Nathi Mthethwa

CHAPTER NINE FINANCIAL SERVICES

â&#x20AC;&#x153;To its credit, South Africa has a well-regulated financial services system. But in an increasingly globalised world, it has been unable to steer completely clear of the troubled waters that are often churned up in other parts of the globe.â&#x20AC;? 16 2 | VISION 2030, O UR FUT URE O UR PLA N

FINANCIAL SERVICES IN SOUTH AFRICA By Dougie Oakes In 1999, Finance Minister Trevor Manuel allowed South Africa’s biggest companies to delist from the Johannesburg Stock Exchange. Among those that left to list on the London Stock Exchange were Old Mutual, Didata, Anglo-American, De Beers, SAB Miller and Investec Bank. It was about this time that the South African economy underwent a sea change – with manufacturing and mining being pushed – and then overtaken – by a vibrant, pushy product of globalisation: Financial services.

FINANCIAL SERVICES

In an age in which quick returns on investment had become paramount, the reason for the growth of financial services companies was obvious. Comprising banks, insurance firms, property companies and business operations, the financial services sector was most suited to using globalisation and super-sophisticated technology, to create opportunities for making quick (and relatively trouble-free) profits. In comparing the old, and some would argue, tired, practices of the past, with a set of new realities, it did not take the new captains of the economy long to realise that financial services is not a ‘people-intensive’ sector. They quickly saw that they would need to reinvest only a small proportion of their profits in workers and training – if they so desired.

Shareholders were quick to grasp too that returns on investment in financial services companies were far better than returns offered by the more labour-intensive companies. This resulted in a rush to invest in banks, insurance companies and real estate corporations. Even companies that had previously no connection with this sector began moving into financial services. And yet, many experts, ranging from economists to members of governments, greeted these new developments with a sense of foreboding. Enough evidence began emerging to suggest that what had become a relentless drive for profits, especially among banks, and particularly among banks in the USA, was tainted with worrying examples of outright greed. And it was avarice in the financial services sector that led to one of the world’s biggest economic crises, in 2008...

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THE RISE AND RISE OF

BRICS 5 Deputies Meeting, Department of National Treasury South Africa leading the meeting. Part of the discussions was about the New BRICS Bank. Lungisa Fuzile, Director-General of the National Treasury

AN ERA OF CYBER-CURRENCIES

In some ways, an investing company might have seen the movement of cash almost as a licence to print money, and as an excellent boost to the economy by the receiving country; but in other ways, it could also deliver a devastating blow to that country. It could, for instance, almost instantaneously, lead to a situation where possibly hundreds of millions of dollars could be taken out of the economy of a particular country – and moved elsewhere. This far-too-easy movement of currencies as diverse as the US dollar, the South African rand, the Botswana pula and the Icelandic krona across borders in virtually a click of a computer button, and the impact – both economic and political – that this can have, could have, and, indeed, has had on many developing countries, has long been criticised by some of the world’s foremost economists. The difficulty, especially for developed countries, has revolved around the lack of credible regulations to police the actions of financial institutions, many of which have no inclination to play to any rules. It is an issue that Joseph Stiglitz, the former chief economist of the World Bank, has found disturbing. “It’s one thing to win in a ‘fair’ game,” he wrote in his book, The Price of Inequality. “It’s quite another to be able to write the rules of the game – and to write them in a way that enhances one’s prospects of winning. And it’s even worse if you can choose your own referees.” 16 4 | VISION 2030, O UR FUT URE O UR PLA N

“Governments (referring specifically to the US administration) have been complicit in handing over power they should not really have, to these institutions. When these corporations champion the cause of capital over the rights of workers – and even over political rights, the government lets them have their way,” Stiglitz suggested. But, for a long time, this criticism has had little impact – on either big governments or financial institutions. To its credit, South Africa has a well-regulated financial services system. But in an increasingly globalised world, it has been unable to steer completely clear of the troubled waters that are often churned up in other parts of the globe. And this has seen its manufacturing sector shrink even as its financial sector has expanded.

THE SA TREASURY STEPS IN

In his State of the Nation address in 2011, the South African president, Jacob Zuma, said: “We are pleased with the performance of our financial sector. It has proven to be remarkably resilient in the face of the recent crisis and the global economic meltdown.”

In a policy document entitled, A Safer Financial Sector to Serve South Africa Better, published by the Treasury in the same year, then Finance Minister, Pravin Gordhan, described this sector as being at the heart of the South African economy, and touching the life of every citizen. “Financial services allow people to make daily economic transactions, to save and preserve wealth to meet future aspirations and retirement needs, and to insure against personal disaster,” the Minister said. “At the level of the macro-economy, the financial sector enables economic growth, job creation, the building of vital infrastructure and sustainable development for South Africa and her people,” he added. But, in touching on the consequences of a poorly regulated financial services sector, Gordhan noted: “Although South Africa‘s financial institutions were resilient in the face of the global financial crisis, the indirect impact through job losses was devastating and South Africa lost more than a million jobs.”

“At the level of the macro-economy, the financial sector enables economic growth, job creation, the building of vital infrastructure and sustainable development for South Africa and her people.”

Gordhan warned financial institutions about prejudicing their clients and customers by conducting their businesses in less than ethical ways. He said that this type of behaviour amplified challenges relating to low savings and over-indebtedness.“It undermines steps taken to make the financial sector more accessible to South Africans in order to improve financial inclusion,” he said.

to customers or undermines the integrity of financial markets and confidence in the financial system,” it said.

He added that while South Africa had made progress on market conduct within the current legal framework, these initiatives could be strengthened through structural change. He noted that there were a number of factors that prevented regulators from acting effectively against wrongdoers – and among these were fragmentation, inconsistency and incomplete regulations. These weaknesses led to customers having poor experiences.

Kevin Ling, the chief economist at Stanlib also gave a nod to the good health of the sector: “Well functioning capital markets, where shares and government bonds are issued to raise finance and financial companies, such as banks, make it easier for households, corporations and governments to borrow money for investment purposes,” he wrote in his book, The Missing Piece – Solving South Africa’s Economic Puzzle.

In 2014, the Treasury released another discussion document – ‘Treating Customers Fairly in the Financial Sector: A Draft Market Conduct Policy Framework for South Africa.’ Using refreshingly forthright language, this document stated that financial customers were not being adequately protected in South Africa. “More needs to be done to ensure that the providers of financial products and services treat their customers fairly,” it said.

“Increased investment translates into greater economic output, which means higher incomes that can be invested back into capital markets, or deposited in banks in order to finance even more productive economic activity,” he added.

The Treasury pointed out that the financial services sector had consistently added to the country’s total real annual growth, even in years when the total percentage had declined.

And it listed some examples of what it considered “abuse in the financial sector”. These included “high fees, a multiplicity of incomprehensible charges, the design and sale of inappropriate products, and reckless lending, often paired with disgraceful (and illegal) debt-collection practices.” The Treasury warned that protecting customers and ensuring they were treated fairly by financial institutions was the essence of market conduct policy and law. “Indeed market conduct regulation aims to prevent (and manage when prevention is not successful) the dangers that arise from a financial institution conducting its business in ways that are unfair

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Of course, the sector has also had to deal with bread-and-butter issues.

ARMS

(AUDIT AND RISK MANAGEMENT SOLUTIONS)

ARMS is a dynamic South African auditing firm founded by black professionals with a passion for transformation, professionalism and upliftment of previously disadvantaged persons. The firm focuses on servicing all spheres of government and SMMEs in South Africa. ARMS has established its base of operations in Gauteng, with its Headquarters in Johannesburg. ARMS assists clients with all matters relating to assurance, enterprise wide-risk management and governance. The founders and partners of this firm bring decades of accounting and auditing experience to the business. This group of professionals is leading the company while establishing a reputation of providing high quality professional services.

Nkuli Swana: Executive Chairman

Namhla Gogo: Associate Director

Adv Boreka Motlanthe: Director: Forensic Investigations

Address: St Davids Park, block 9, 1st floor, Parktown | Phone: 011 484 1235 | Fax: 086 6199 887 | info@armsaudit.co.za

The value drivers that ensure we provide consistent high quality service to our clients are: • Client focus • U tilising appropriately skilled staff for each assignment • Rigorous staff selection and development • Innovation • D eveloping in-depth specialised knowledge in each service area

OUR MISSION To provide leading-edge audit, forensic investigation, risk management and accounting services to our clientele.

OUR VISION To be recognised as one of the best professional services firm in our area of focus.

OUR MOTTO Promptly exceed client’s requirements at an affordable cost.

OUR STRATEGIC FOCUS Provide excellent service to South African municipalities, state-owned enterprises, SMMEs and other organisations affording them our best people, services and technologies. We aim to attract and recruit the best professionals to work for us, affording them appropriate support and a culture that respects their innovative ideas and promotes their skills development. We provide the following services: • Advisory and assurance • Internal auditing • Governance and risk management. • Specialised training: MFMA; PFMADc • Special investigations • Taxation • VAT compliance and recovery • GRAP conversion and compliance • Municipal support and services • Performance management systems • Fixed asset registers • SCOA Implementation • Support and training South African organisations are operating in an increasingly challenging and complex environment which is characterised by: • C omplex computerised business systems which demand an array of expensive human capital skills and resources. Most SMME and organisations do not have the necessary resources to meet these demands. • H igh risk and incidence of fraud. The white collar fraud in SA is estimated at R6billion pa. Most organisations suffer substantial financial losses due to fraud and theft. • D earth of appropriate skills and talent in the highly specialised fields of risk management, chartered accountancy and forensic accounting.

• I ncreasing complexity of regulations, accounting and governance standards • M ost SMMEs are in a disadvantageous position due to difficulties they encounter in accessing accounting and auditing services • T he chain of corporate failure both in SA and internationally makes it necessary for organisations to undertake regular reviews of their control environments • I ncreasing pressure on accounting officers and board of directors, to assume responsibility for the financial well-being of their organisations We provide assurance and regulatory reporting services in the following areas: • IFRS Reporting • Accounting New legislative developments and tax laws have a significant impact on a company’s operations, therefore adapting successfully to these changes becomes a critical success factor. • Preparing and filing your annual return • A cquisition, disposal or reorganisation of a company in South Africa • S outh African companies with investments overseas • Withholding rates • A foreign company trading operations in South Africa • Capital Gains Tax • Taxation of Trustee and Estates We can assist by: • Helping you file your annual tax returns • D eveloping an effective tax structure that suits your business model • A dvising you on the changes that affect your business Successful companies use internal audit as their eyes and ears. The evolution of internal audit over the last few decades is phenomenal, as the profession has moved from evaluating compliance with controls, to being consultants to management in the modification of process in the controlled environment.

Corporate failures, coupled with legislative requirements for public reporting on internal control over financial reporting, has increased the need for effective internal audits.

START-UP INTERNAL AUDIT SERVICES • A ssess the quality of your internal audit function in terms of the IIA Standards • Train your internal audit function to keep up with changing demands of the profession • A ssist in auditing complex areas that require specialised skills and knowledge • F acilitate your risk management linkage with internal audit and corporate governance procedures • Public Finance Management Act • Municipal Financial Management Act • Performance auditing We adopt a flexible approach which can be customised and adapted to each organisation’s specific need. We adopt the following risk management methodology: • A ssess our clients current approaches to risk management • D esign the ERM framework in line with their needs • D evelop policy, processes and procedures to support the changes • A ssist them to implement and monitor policies, processes and introduce and monitor controls • Train risk management teams on the best practice approach to risk management One of the key challenges for board/council and management is to determine the risk appetite of the organisation. This will help the organisation determine the appropriate control to manage the risk or whether to accept and live with the risk. Our team of professionals have a wide range of specialised skills that include: • • • • •

Forensic investigation Risk management Project management Financial accounting Procurement and BEE compliance review

GROWING THE TAX BASE AND CUTTING EXPENSES An interview with the Minister of Finance, Nhlanhla Nene by Ryland Fisher

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“Reducing the cost of doing business not only refers to rands and cents, it includes red tape and administrative burdens as well as reducing the cost of living – particularly – for the poor. “In terms of the NDP, this is supposed to be achieved through having a capable state run by a professional public service that knows what it is doing and understands the value of executing plans. “Implementation is a crucial issue. You might have good plans, but if they’re not implemented then they are not worth the paper they are written on. “But it also requires an active citizenry – that is loud and clear in the NDP. This means a citizenry that holds government accountable through its various structures – right up to and including Parliament. “If we’re talking about creating an environment where business thrives, it means that this will create jobs, and add to the economic growth and development. “It is for that reason that rolling out infrastructure is one of the key areas identified by government. Rolling out infrastructure results in this partnership with government, the private sector, labour and civil society all working together.”

Nene said that the NDP was an important blueprint and long-term plan for the country. “In the past our planning was mainly for a five year period. But we now have the NDP which provides a long-term planl for government, taking us to 2030. It helps because whatever we do, we need to align it with our long-term vision. “You will find different departments focus on various outcomes of the NDP – like outcome 4 which talks to the creation of employment and growing the economy. “As the Treasury we participate in executing some of the outcomes – for instance outcome 9, which has to do with local government – but we are also responsible for the allocation of resources in general.” Nene said that ministers took collective responsibility for the decisions they made. “We have the Ministers Committee on the Budget (MinComBud) where we deliberate once we have received the bids from various departments; once we arrive at our decisions we have to take them back to the MinComBud for further discussion to indicate how we arrived at the allocation of resources – the normal economic problem of unlimited wants and limited resources always pertains.

“The implementation of the NDP is not an easy process. But if we have a partnership between government, labour, private sector and the general citizens, we will be better placed to come up with solutions – and it is in the interest of all stakeholders for the NDP to succeed.” V I S I O N 2 0 3 0, OUR F UTURE OUR P L AN | 1 6 9

INTERVIEW | NHLANHLA NENE

“The most impor tant per for mance indicator in ter ms of the National Development Plan would be the creation of an environment in which business thrives”, said Finance Minister Nhlanhla Nene. Interviewed at his office on historic Church Square in Pretoria, Nene said this means that we will have to reduce the cost of doing business.

“In determining the allocation of resources, we need to check whether the bid talks to government’s priorities as set out in the NDP and the department’s previous performance. “Then it comes to the availability of resources – and proper sequencing. If it is not a priority today, it may become a secondary priority once the first step is achieved. “This is why it’s important to have experts in the planning process because they also factor in the issue of price escalation that might come as a result of inflation or the inputs either being imported or manufactured locally. “It’s not only about the affordability, but also whether the plan itself is implementable. We take collective responsibility and it goes through the MinComBud, then to Cabinet and Parliament for final approval.

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“In Parliament we now have the Appropriations Committee which is a very useful instrument in our budgeting process because it is where the evaluation of the performance of the departments lies. They look at the annual reports, at the in-year expenditure patterns of the government departments and the quality of that spending. They see whether we are spending on real issues – if we end up with overspending, the question we always have to ask is whether all the money was spent appropriately, effectively and efficiently.” Nene said the NDP would only be successfully implemented through partnerships. “We should accept that the implementation of the NDP is not an easy process. But if we have a partnership between government, labour, private sector and the general citizens, we will be better placed to come up with solutions – and it is in the interest of all stakeholders for the NDP to succeed.

“With regard to the power outages, we should be looking at increasing our investment in infrastructure, especially energy generation. We are beginning to move in that direction. We are looking at renewable energy and all the elements of making sure that we are able to increase the capacity of energy. “This means that there is an opportunity for the private sector to invest and for general households to reduce their consumption. When there was an abundance in energy, we got into the habit of running our pool pumps for 36 hours, having geysers that don’t switch off and using 60 watt bulbs where only 40 were needed. “All of these considerations are important. We need to work together because we are not going to get this partnership working if we work in silos.

“After meeting together and engaging, we actually have been able to find common ground. We are making process. The Presidential Working Group with business and the engagements of the Presidential Infrastructure Coordinating Committee have shown that we are beginning to converge and are sharing a common interest.” “Key to the success of the NDP,” said Nene, “is growing the tax base and reducing the tax burden.” “Over the past few years we have been able to do two things that would we’d otherwise have not been able to accomplish: growing the tax base while reducing the tax burden. “Improved compliance came as a result of improved systems and administrative mechanisms, educating the taxpayers regarding their responsibility and making the filing of tax returns much easier. At this point, more than 90% of taxpayers file electronically, either from home, work or the (SARS) office. “The improved administrative systems, together with education and reducing and increasing the thresholds, have resulted in a reduction of the tax burden and expanding the tax brackets. “But this happened in an environment where we had an economy that was growing at a particular rate. When the economy slows down, you no longer have the luxury of growing the tax base while reducing the tax burden. We are now in a consolidation phase. People accuse me of having been the first minister to increase taxes in our new democracy – which is not entirely true because I was in Parliament when we introduced Capital Gains Tax.

“I introduced other tax measures that began to deal with the issue of the progressivity of our tax and its redistributive nature. Even though we cannot call it wealth tax, it does look at the ability to pay and increases responsibility and obligation if you are able to do so. “Fiscal consolidation entails two things. The first is that in order to continue growing the tax base, we needed to moderately increase the tax rate on personal income tax. “Second, we need to begin to reduce the rate of growth of expenditure in order to rebuild the fiscal space so that we can focus resources on priorities. When resources are tight, spending is directed at the essentials; in households across the country. You begin to look at savings and redirecting your resources towards the areas that are likely to give you better returns, both economically and socially.” Nene said that many international investors were beginning to see South Africa as an attractive destination for investment. “For international investors, we are a natural entry point into Africa because they say the use of our financial systems assists them in moving into the continent.

environment would mean that it would be easy to do both. “A number of measures have been put in place to try and create an environment conducive for business to employ (new) entrants into the labour market. One of these is the Employment Tax Incentive which we introduced two years ago. We are reviewing it now because we want to see whether it has achieved its intended objectives. “The Department of Trade and Industry has a number of incentives which we are reviewing because an excess of R20-billion per annum goes into incentivising business. “We’ve also introduced special economic zones which are an improvement on the industrial development zones we’ve had in the past. “There is a particular focus on agriculture which has been in decline for some time. There is a re-focus on investing in agriculture because although it is in the primary sector, it has the potential to grow the secondary sector.” Nene said that it was important to consult the community on the implementation of the NDP.

“Our business environment is also very good. The ease of doing business in South Africa has been improving over years, even though there is still more to be done.

“The implementation of the NDP requires a professional public service and an active citizenry, which not only holds government accountable but works together with the

“The prolonged time it takes to be issued with a business licence in South Africa is identified as one of the things that needs to improve; you have to get through a number of stages before a business is licensed. This means our systems are not talking to each other.

“We need a process of taking the NDP to the people in various fora, not just outreach programmes, but with projects and programmes where we create an environment for the participation of the communities in its implementation.

“The labour environment is another issue. Investors see us as having an inflexible labour market – and they have justification. We came from an extremely oppressive labour environment which meant there needed to be measures taken in order to create a conducive one. There is also the perception from business that our labour market is rigid. It is difficult for them to employ and to fire – and a flexible labour

state to ensure implementation.

“If we want people to be aware we need to encourage and implement these programmes. When we talk to people, they should understand that this is their contribution to the implementation of the National Development Plan: It’s their document, their Plan and one which seeks to address their plight.”

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INTERVIEW | NHLANHLA NENE

“I’ve been to a number of meetings of government and the private sector; their discussions convey a sense of cohension between the two. Previously, there has been a level of mistrust between government and the private sector because the private sector doesn’t think government has got their interest at heart and government doesn’t think that the private sector is prepared to promote government’s agenda in a manner that serves the nation.

INTERVIEW WITH: DANIEL MATJILA

Daniel Matjila, Chief Executive Officer

How the PIC is responding to the NDP:

ECONOMY AND EMPLOYMENT

Objectives and actions • D ecrease unemployment through investment in agriculture and agro-processing • M ineral cluster: Improve growth and income distribution • M anufacturing: Promote localisation and diversification • F inance sector: Partnerships to provide project finance • B roaden ownership of assets to historically disadvantaged groups PIC’s alignment to NDP Initiatives Priority Sector Pillar R3-billion has been committed to agriculture, agro-processing industries, mining beneficiation and tourism. Private Equity R5-billion has been committed to investments in financial services and transformation across various sectors. Dinamane R1.5-billion has been committed across all sectors with a focus on SMMEs.

ECONOMIC INFRASTRUCTURE Objectives and actions

• I ncrease electricity capacity and access, including investing in renewables • I ncrease access to clean water • I mprove public transport, ports and rail • C ompetitively priced and widely available broadband • O ptimise coal, shale gas and fuel resources PIC’s alignment to NDP Initiatives R5-billion has been committed towards investments in transport and logistics, ports, rail, telecommunication, water, information, communications technologies and broadband as well as energy and resources infrastructure.

PUBLIC INVESTMENT CORPORATION (PIC) ENVIRONMENTAL SUSTAINABILITY AND RESILIENCE

PIC’s alignment to NDP Initiatives R5-billion has been committed to affordable

• • • •

IMPROVING EDUCATION, TRAINING AND INNOVATION

Objectives and actions

Protect ocean resources Decrease greenhouse gas emissions Reduce volume of waste B etter agricultural technologies and agro-processing

PIC’s alignment to NDP Initiatives R5-billion has been committed towards renewable energy, shale gas, green economy,

housing, education and healthcare.

Objectives and actions • • • •

Improve the quality of education Focus on early childhood development Eradicate school infrastructure backlog Expand higher education system

and recycling.

• Further vocational training

INCLUSIVE RURAL ECONOMY

PIC’s alignment to NDP Initiatives Addressed thorough social infrastructure.

Objectives and actions

• I mprove infrastructure and service delivery in rural economies • H igh agricultural potential land • I mproving small scale and commercial agriculture and link to the markets PIC’s alignment to NDP Initiatives R5-billion was committed towards social infrastructure which aims to improve living standards.

SOUTH AFRICA IN THE REGION AND THE WORLD Objectives and actions

• B oost intra-regional trade and implement a regional integration strategy • B uild partnerships across the African continent PIC’s alignment to NDP Initiatives The PIC has signed with various African strategic partners (AFDB, EBID, PTA, IDC, DBSA).

TRANSFORMING HUMAN SETTLEMENTS Objectives and actions

• Better spatial planning • Upgrade all informal settlements

HEALTHCARE FOR ALL

Objectives and actions • Improve life expectancy • Improve primary healthcare • Prevent and reduce the disease burden • Implement National Health Insurance • Build human resources in the health sector PIC’s alignment to NDP Initiatives Addressed thorough social infrastructure.

SOCIAL PROTECTION

Objectives and actions • A ll children should enjoy access to nutrition, healthcare, education, social care and safety • Create opportunities for the unemployed • A ddress the skills deficit in the social welfare sector • M andate retirement savings for all workers, and maintain the government social assistance net PIC’s alignment to NDP Initiatives Addressed thorough social infrastructure.

COMPANYDETAILS Physical address: Block C, Riverwalk Office Park 41, Matroosberg Road Ashlea Gardens Extension 6 Menlo Park, Pretoria, 0081 General queries: Phone: 0827356307 Fax: +27 12 346 3276

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CHAPTER TEN S E RV I C E S

THE NDP MUST LEARN FROM HISTORY An interview with the Minister of Water Affairs and Sanitation, Nomvula Mokonyane by Ryland Fisher

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“I like the preamble of the NDP because it puts people at the centre of this dream we have of 2030 – how we want our country to look. But what we have not been able to do is to explain to people on the ground about what this Plan is. “We should look at the Freedom Charter and how it was everyone’s business. Having worked in the UDF I saw the importance of people taking ownership of a programme. I think we are struggling because of the rigidity of the state. When it comes to issues of people, we need to free it from bureaucracy and partner with civil society. The NDP is not a government programme. It belongs to all South Africans.” Mokonyane said that the provision of clean water was crucial for the people-centred approach of the NDP. “The Department of Water and Sanitation is now assuming that responsibility of having to ensure that when we deal with issues of water and sanitation, we put people at the centre because that’s the primary focus of the NDP.

“The Diagnostic Review highlighted that government was not necessarily being responsive to issues raised by communities. This has influenced how we in the water sector work. “We used to have a predominantly engineering, technicist approach, but with implementing the NDP, the most important thing is to first draw in the participation of our communities and open up opportunities for those who have been disenfranchised. “The Diagnostic Review also spoke about the widening gap between the rich and the poor. On the economic front, we have created new opportunities and new industries; bringing in new technologies to the sector helps the economy to grow. We need to move away from a high dependency on bricks and mortar, for example, in the construction of the dams. We need to look at alternative technology, energy saving and use different systems of provision of the service. “This is also what the NDP requires. When you create new industries, you create

“The fact that for the first time in South Africa there is a National Development Plan, is a major breakthrough and government’s processes of delivery being outcome-based is critical. The fact that no department acts singularly, and we all work in clusters, gives us hope.” V I S I O N 2 0 3 0, OUR F UTURE OUR P L AN | 1 7 5

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For mer Gauteng Premier and current Minister of Water Affairs and Sanitation, Nomvula Mokonyane, believes that suppor ters of the National Development Plan (NDP) need to lear n from histor y in their attempts to popularise the Plan. She believes that we can lear n from how the Freedom Char ter was popularised in the 1950s and how the United Democratic Front worked in the 1980s.

new skills through our own development programmes, such as bursary and training schemes, we are now also building the capacity of the state. “We make sure that we deal with the issues of hygiene, health and safety because the NDP emphasises that, as we roll out infrastructure, there has to be a social impact of the work we do. “When we say water is life and sanitation is dignity, the issue of clean water becomes one of the important things that we are supporting in local authorities. We are building new infrastructure, emphasising the need for operations and maintenance capacity. “Regarding sanitation, If you provide decent, adequate and accessible services, opportunities for crimes against women and children reduce, as well as the possibility of waterborne diseases. “Water resource management becomes important to promote hygiene, to promote

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the quality of life but also to respond to water scarcity. “The NDP talks about an integrated, coordinated and sustainable development approach, so this department actually has a cross-cutting function. We have to relate to human settlement, health, education, and to a plethora of bodies that are crucial for improving the quality of life and moving South Africa forward. “My last issue is about communication and community empowerment. We are investing a lot now in communication, talking about the rights and also the responsibility of citizens. “In the fifth administration we are beginning to unpack our support for local government. This is why we have the Back to Basics approach where we work with municipalities in ensuring that they themselves have the necessary skills required to render the services.

“We’ve done an audit of the capacity of local government, we’ve looked at the financial viability and we are now in a position to say we’ve got 27 priority municipalities that are not able to deal with these responsibilities. Therefore, our support has been beyond monetary. We used to provide the grants and then step back; but as part of the Back to Basics approach we identity where there’s a critical need for intervention to serve our communities, while the municipality provides the capacity for operations and maintenance. “But 20 years down the line we realise that we cannot have a one-size-fits-all approach. If Johannesburg or Cape Town is a water authority, it’s not a given that the Gariep Municipality can also be. You have to look at the revenue base, the skills and the cost of laying out the infrastructure. “One of the things that we’re managing currently is a working relationship that is solution-orientated rather than a stop-gap measure intervention. Previously and problematically, we just put in money without checking whether the money was

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put to good use by local authorities. This is why there is this huge backlog of aged infrastructure and poor maintenance, despite money having gone to local authorities. We are now interacting with conditional grants. This is part of what we are dealing with in partnership with (Cooperative Governance and Traditional Affairs) Minister Pravin Gordhan and (Finance) Minister Nhlanhla Nene.” Mokonyane said that, if the NDP is successful, then access to clean water should no longer be an issue by 2030. “Access to water and sanitation over the years has been a privilege in South Africa and by 2030, this should no longer be the case. What should be important by 2030 is the sustainable availability of these resources. We’ve met the Millennium Development Goals as a country; but every day people complain about water and sanitation because of poor maintenance, aged infrastructure, and rapid urbanisation. “The huge number of informal settlements have a serious bearing on access to clean water and sanitation because they become a moving target. “Water security is also important. We are a water scarce country and many of our sources are trans-boundary. We have not explored other water sources such as recycling and the use of ground water. “By 2030 we should be seen as having contributed towards making sure that there’s water security in our country, not only in terms of availability, but also in protecting the dams and water pipes. “It is the responsibility of everyone to change the regulatory environment. We should change the way we issue the licences; and we must use the licensing process as another opportunity of making the user responsible, especially the private sector. “Acid mine drainage in South Africa is a huge economic threat. It is going to cost us billions in the PWV area. We can’t issue new water licenses to the mines unless we make it their responsibility to deal with water management in their space. At the moment, this is our responsibility.”

Mokonyane said what will impact most negatively on her department, from a government point of view, is if the planning process is not effective and well-managed. “It is a problem if there’s no effective forward planning that we all contribute towards. If we continue to change our priorities and not look at the long term, and if we do not mobilise resources, both private and public, to fund what may help us then we will not realise the objectives of the NDP. “The fact that for the first time in South Africa there is a National Development Plan, is a major breakthrough and government’s processes of delivery being outcome-based is critical. The fact that no department acts singularly, and we all work in clusters, gives us hope. That there are intergovernmental

processes at a high level, such as the Presidential Infrastructure Coordinating Committee, where all the three spheres of government sit together, is also important.” What is of concern to Mokonyane is the commitment from the private sector. “They could do better. They are not investing enough in infrastructure. The private sector assumes that it has to benefit from government’s programmes rather than contributing towards the realisation of the government’s agenda. “This is a problem. There has to be a social pact with the private sector around the gaps between the rich and the poor. In South Africa the state is the largest employer. Creating jobs and promoting entrepreneurship is one of the most crucial focuses of the NDP.”

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DEPARTMENT OF WATER AND SANITATION Our successes in 2014/15

There was particular focus on the improvement of international relations. We were hosted by different nations of the world through participation in conferences; we have also, in turn, hosted nations for conferences such as the Gender, Water and Development Conference and we have sourced the services of the Cuban nationals for deployment in municipalities where we do not have the required technical skills. Through the Echo Schools Programme we have received a United Nations award for Water for Life Best Practice. This has been about innovation in technology in water usage and conservation.

Minister Nomvula Mokonyane As outlined by Minister Nomvula Mokonyane, The Department of Water and Sanitation has done a lot of work in terms of infrastructure development and provision of services to the most remote communities of our country. The plans and budget will go a long way in consolidating efforts to meet the needs of South Africans. It remains the only developmental tool to change the lives of our people.

Working with the MTN Foundation, we have delivered five media classrooms. Two of these media classrooms were given to schools in Limpopo, and two to schools in the Eastern Cape and one to a school in Gauteng. The Department has built strong relations at political and administrative levels, with all nine provinces, in terms of planning and budgeting. We are working with the provinces to develop water and sanitation plans that will inform our broad strategy on the work to be done in the resolution of challenges and backlogs facing the sector. The Department has managed to mobilise the civil society into the water family. In KwaZuluâ&#x20AC;?Natal and Limpopo, traditional leadership has committed and rallied around the programmes we are unfolding. The Premiers and COGTA MECs are championing and supporting our work in the respective provinces. This is reflected in the wide spread of developmental and infrastructural programmes planned throughout the country in this financial year. The Water and Sanitation Summits which the Department has successfully held, introduced new partners and identified new game changers in the provision of water and sanitation services. We established water and sanitation technologies that have never been seen before.

contribution, will be paid a stipend that will contribute to their daily needs. They will be able to put food on the table, take care of medical expenses and other family needs. This budget will contribute to job creation, family stability, water savings, management of ecological degradation and pollution. Further formal academic training in institutions of higher learning and our Learning Academy will be provided through our bursary programme. More candidates who will be identified for studies and graduation will also be absorbed into the various branches of the Department.

Our social and operation base was increased by the involvement of both rural and urban communities, district and local municipalities, academics, technical experts, business people, youth participation and women. We believe through these new technologies in water and sanitation, we will change the lives of the people for the better.

Our focus this financial year

The infrastructure implemented during apartheid discriminated against the rural and poor communities. With this progressive and developmental budget, the Department will change this skewed provision of services. This budget contains resources at hand that will be used to transform the economic situation in the country. The youth, women and those living with disabilities will be considered. The plan is to empower small

businesses and develop them into big businesses of tomorrow. President Jacob Zuma will have launched the first intake in the skills development programme in Nelson Mandela Bay by 18 July 2015 targeting youth trainees. The Department will continue to address the skills shortage through youth development throughout the country and place them in various municipalities as part of job creation. Their skills will assist municipalities to roll out infrastructure development and continue the fight against water leaks. Women will also be targeted through War on Leaks and Adoptâ&#x20AC;?Aâ&#x20AC;?River programmes. It has been our priority as the department to ensure that the water source is well maintained and protected from pollution and ecological degradation. These women, as part of their

Our water conservation strategies will continue to be enhanced through youth participation in programmes such as Eco Schools, Youth Summit Programmes, 2020 Vision Programmes and Young Water Ambassadors. They are awareness and information sharing programmes on water and sanitation management. The management of our water and sanitation will always be about people and for the people. It is with the people working in the Department that we are able to overcome our water and sanitation challenges. Our plan through this budget is to reach out to all communities without discrimination. We believe: water is life and sanitation is dignity. We therefore cannot fail to provide these most essential services to our people.

By 2030, we would have significantly widened our involvement in groundbreaking initiatives that make a big change in the lives of ordinary South Africans.

KEEPING SOUTH AFRICA ON TRACK

An interview with founding partners Metja Ledwaba and Lungile Mazwai from Ledwaba Mazwai Attorneys

Based in Nieuw Muckleneuk, Pretoria, Ledwaba Mazwai is one of South Africa’s first black commercial law firms, established in the mid nineties.They spoke to us about excellence as a daily habit, overcoming obstacles and their views on the National Development Plan. What is your company’s vision and mission? Ledwaba Mazwai was established in 1996 in pursuit of the ideal to build a successful black commercial law firm. Today, our firm has become a symbol of pride, excellence and the capabilities of black legal practitioners as a collective. Our vision is to be an exemplary initiative, which provides opportunity for black lawyers to be exposed to and showcase their skills in areas of law that they were historically marginalized from practicing. We want to be a leading dynamic law firm providing services of consistent high professional standards to commercial, corporate, institutional and public sector clients.

What do you consider to be the driving principles behind Ledwaba Mazwai? We always say, ‘You become what you repeatedly do.’ As a team, we believe that excellence should be a daily habit and we encourage each other to apply this mantra. We are determined to help our clients to achieve their visions and goals, particularly in challenging legal and commercial transactions, projects or initiatives. To achieve this, we know that we must have the courage to make a change and provide new perspective of the application of the law. It also helps to have a good track record – this has always been the primary reason for new work coming to us and also for old clients returning to us.

What has been your greatest challenge thus far? Our greatest challenge was making a breakthrough in providing commercial legal services to corporate and institutional clients, when we started our firm. While we have made significant inroads in establishing Ledwaba Mazwai as one of the leading law firms in the fields of law that we practice in, there is still a significant challenge in getting business from the private sector in our areas of practice. Another great challenge has been securing the required human resource capital to support the legal services we aim to provide. Our first inclination was to get external resources to quickly begin building a team. We soon realised that we were doing so without having established a solid core team and values which would guide the growth of an emerging business. As a result, we came to appreciate the value and benefit of organic growth and focused on good training of young lawyers to develop a core team. We expose our teams to significant work and responsibilities to client from a very early stage of their joining the firm. Our work is not distributed purely on seniority but on readiness of the person concerned to assume such responsibility. It provides great opportunity to grow based on readiness irrespective of the level at which a person is within the firm.

Today, our firm is a firm of choice for promising young lawyers who have grown from the culture and ethos of Ledwaba Mazwai.

What do you see as your greatest success? The transformation wave does not seem to provide significant opportunities for firms like ours in the private sector space. Fortunately, we have developed an excellent track record in providing legal services to corporate, institutional, public sector and Government in the areas of law in which we practice. We have developed a solid practice in general commercial law, commercial litigation, labour law, tax, administrative and constitutional law and have become one of the leading law firms in major infrastructure projects. Left to Right: Lungile Mazwai and Metja Ledwaba Founding Partners

Ledwaba Mazwai Attorneys has developed templates for and advising in the BBBEE, Local Content and Skills Development in major infrastructure and other procurement programmes for Public Sector. We have assisted in the development and taking to market of major projects for Government, in relation to restructuring of state-owned enterprises,

For us, this means contributing to an economy and a country that symbolises everything we stand for as a firm â&#x20AC;&#x201C; with excellence being a daily habit we are overcoming our troubled past by working together and achieving success against all odds and expectations.

Public Private Partnerships, Independent Power Producer projects and other infrastructure development projects, including services provided to government departments locally and in the SADC regions. We have also attained a good standing and reputation with professional service providers in other professional disciplines, with whom we worked on major projects for our ability to successfully interface financial, technical and legal matters pertaining to the projects at hand.

On your website it states that your company â&#x20AC;&#x2DC;fills the gap which exists in the market place in respect of the development of skills to the previously disadvantaged in the commercial law sectorâ&#x20AC;&#x2122;. How do you do that? In our participation in major commercial transaction and infrastructure project work, we always boast teams of highly skilled lawyers to represent our clients, who have accepted our team for the proficient legal advice that Ledwaba Mazwai has become known for.

We have and continue to represent the aspiration and pride of black lawyers in the fields of law that we represent, and it is interesting that when we work with other established law firms either on the same side or on opposite sides, you barely come across involvement of black lawyers in their teams, which goes to show the extent to which our firm provides significant opportunity to breach the gap.

What does the National Development Plan mean for Ledwaba Mazwai? As we all know, the NDP aims to eliminate poverty and reduce inequality by 2030 through uniting South Africans. The only way to achieve this is to use the energies of its citizens wisely, grow an inclusive economy, build capabilities and to enhance the aptitude of the state and leaders to solve complex problems together.

In doing so, we would have grown the lives and prosperity of our staff and contributed significantly to the legal profession particularly in the advancement of those who have been previously marginalised by the racial practices of the past.

What role can your firm play in a practical manner to ensure that the NDP is implemented? As a firm, we are proud to be making a difference in line with the National Development Plan by creating opportunities for the next generation of black lawyers â&#x20AC;&#x201C; opportunities that were hard to come by when we started our own careers. After all, Ledwaba Mazwai was established to provide opportunity for black legal practitioners to grow their skills as lawyers in areas of law in which they have generally been marginalised from.

In your opinion, how can ordinary people get involved in making the NDP a reality? If every person and business can just work hard to create opportunities for others, that would be half the battle won. We need more big thinkers and very importantly, big doers. As a firm, we have had to create our own opportunities where they did not exist and work hard to establish ourselves when the odds were against us. We hope that young South Africans will learn from our story and have the courage to pursue their goals, despite the odds.

What is your vision for the country for the year 2030? By the year 2030, we would have significantly grown the practice of Ledwaba Mazwai, the diversity of its areas of practice and number of practitioners in the firm. By 2030, we would also have significantly widened our involvement in groundbreaking initiatives (such as the Gautrain Rapid Rail Project), as well as contributing to the wisdom of our leaders in their pursuit to improve change in the lives of ordinary South Africans.

Changing the Game Known for their pioneering spirit and forward-thinking approach, founding partners of Ledwaba Mazwai Attorneys, Metja Ledwaba and Lungile Mazwai, have succeeded with their big picture approach and commitment to excellence. Ledwaba Mazwai resonates with the National Development Plan for 2030 by challenging issues of inequality and in doing so have succeeded in their vision to create one of South Africaâ&#x20AC;&#x2122;s first successful black commercial law firms, established in 1996. As pioneers in structuring and advising on Economic Development achievements for Government and public sector institutions, Ledwaba Mazwai focuses on rendering legal services to commercial, corporate and Government institutions in restructuring, general and commercial law, mergers and acquisitions, aviation, litigation, property and conveyancing, competition, insurance, finance and tax, mining and mineral areas of law.

Whilst the National Development Plan for 2030 strives to meet enabling milestones of lowering the cost of living for the poor, providing adequate healthcare and creating sustainable employment and economic growth for previously disadvantaged youth; Ledwaba Mazwai is proud to be involved in projects such as the Gautrain Rapid Rail, structuring economic development for the Passenger Rail Agency of South Africa, ongoing development for the National Department of Health as well as advising on the procurement of independent power producers as part of the Governmentâ&#x20AC;&#x2122;s IPP programme to produce and supply energy to the people of South Africa.

With a solid belief in making excellence a daily habit, the role that Ledwaba Mazwai Attorneys play in South Africaâ&#x20AC;&#x2122;s future is bound to be a positive one for many decades to come and a showcase for what can be achieved by black legal practitioners in the area of commercial law. For more information on Ledwaba Mazwai Attorneys, contact +27 12 346 7313 or e-mail mlm@law.co.za

“The introduction of e-government can no longer be delayed in three areas: education, primary healthcare and in safety and security – where a repository of electronic records on criminals and suspects is needed.ˮ 18 4 | VISION 2030, O UR FUT URE O UR PLA N

CULTURE IN SOUTH AFRICA? By Stephen Timm A smarter and leaner public sector that is more attentive to citizens needs is vital if South Africa is to make serious inroads in poverty and unemployment.

SOME OF THE ISSUES

Despite the dramatic expansion of basic services such as water, electricity, education, housing and social security, the Presidency admits in its 20-year review of the government’s progress since 1994, that access to quality services remains uneven. In clinics and at home affairs offices, long queues are still too common, while as recently as 2012 learners had to wait months for the delivery of textbooks. Added to this, many contractors continue to go unpaid, with the government in many cases failing to honour its commitment to pay suppliers within 30 days upon receipt of invoice. The 2014 General Household Survey reveals that in some instances dissatisfaction with certain services – such as the quality of water and electricity supply – has increased among South Africans. When it came to its performance on government efficiency, South Africa slipped in Global Business School IMD’s World Competitiveness Rankings for this measure – from 29th to 40th out of 61 countries between 2012 and this year.

Citizens are becoming impatient and with it service delivery protests have grown – from less than 20 protests a year in 2004, to over 160 by 2012, to 218 in 2014, according to Municipal IQ. In many cases the implementation of e-government solutions could help solve some of these problems.

E-GOVERNMENT SOLUTIONS AND CHALLENGES

In his budget vote speech in May 2015, Minister in the Presidency Jeff Radebe, said it was unacceptable that in some instances citizens have to wait for more than four hours to be served. He noted that citizens have called for the introduction of online systems, to cut the long queues. While e-government solutions can reduce the cost of accessing services and improve turnaround times, they can also help the government to cut costs by streamlining administrative processes. With the economy having stagnated and with the public sector wage bill having swelled by more than 80% over the last decade, better IT solutions are becoming more necessary than ever before.

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HOW DOES ONE DEVELOP A SERVICE

“Luci Abrahams, Director of Wits University’s Link Centre, singles out the example of the SA Revenue Service’s (SARS) successful e-filing system, which is now used by the majority of taxpayers.” But the country performs poorly when

it comes to e-government. The UN’s e-Government Development Index reveals that South Africa’s e-government ranking has been on a steady decline over the past decade – from position 45 in 2003 to a ranking of 93 out of 193. Comparable emerging countries China, Malaysia and Brazil have only slipped marginally. Last year South Africa was ranked below several other African countries, including Egypt, Mauritius and Tunisia as well as all its BRICS partners, bar India (ranked 118). Top ranked is Korea, followed by Australia and Singapore. South Africa has faced a number of e-government challenges. In June Parliament heard that after a decade the government’s electronic docketing and electronic criminal records system is still not in place, with the state having spent over R6-billion so far on the project. In addition, the State Information Technology Agency (SITA), which is mandated to deliver internet services on behalf of departments, has been beset by mismanagement as recently as 2009. Since 2010 the Agency has been undergoing a turnaround strategy. Principally, confusion remains over who in government is responsible for driving e-government. The Financial and Fiscal Commission in May 2015 called for the department responsible for devising and finalising the e-government 18 6 | VISION 2030, O UR FUT URE O UR PLA N

policy to be identified. The commission

noted that while the ICT policy process is the responsibility of the Department of Telecommunications and Postal Services, the Department of Public Service and Administration, through the Public Administration Management Act, regulates the use of ICT in government. In addition, communication policy and strategy is the responsibility of the Department of Communication. Fanie Cloete, Extraordinary Professor at the School of Public Leadership at Stellenbosch University, said that the absence of a concerted e-government drive is a major strategic weakness in government. “The biggest problem is digital literacy both inside the public service and outside, with no one championing improvement,” he says. As a solution, the government could make better use of the Centre for Public Service Innovation (CPSI), which was set up in 2001 to identify and nurture truly innovative ideas – and then replicate them across the civil service. The Centre is credited with assisting in the development of a track-andtrace solution for the Department of Home Affairs and it runs an annual Public Sector Innovation Awards. Among those honoured in last year’s awards were the IEC for its election web application. Luci Abrahams, Director of Wits University’s Link Centre, singles out the example of the

SA Revenue Service’s (SARS) successful e-filing system, which is now used by the

majority of taxpayers. She says its success came about because the agency put a lot of effort into marketing the initiative and provided guidance to staff and tax payers on how to use the system. “It’s all about leadership,” she notes. She says the introduction of e-government can no longer be delayed in three areas: education, primary healthcare and in safety and security – where a repository of electronic records on criminals and suspects is needed. The Department of Health, for example, adopted an e-health strategy in 2013; but Abrahams says most clinics continue to rely on a paper-based system, meaning patients often sit in queues for hours. While freeing up nurses to focus more on assisting patients, an electronic filing system could also hold other benefits by, for example, allowing researchers to create a platform for big data analysis of TB or HIV-Aids data. In some cases, such as with municipalities which had established online information systems for accessing billing information, services have been discontinued rather than having been continuously improved. Arthur Goldstuck of research firm World Wide Worx says there are only pockets of well performing departments and agencies when it comes to implementing e-government.

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“There is no championing of e-government at cabinet level. You’ll hear individual ministers occasionally talk about the benefits of technology or the Internet, but there’s no on-the-ground commitment to it.”

THE NDP – PRIORITISING SKILLS AHEAD OF PARTY MEMBERSHIP

In a report earlier this year the Boston Consulting Group noted that South Africa has no shortage of policy analysis “but rather of policy implementation which, in turn, hangs on the quality of leadership.” Kedibone Phago, Professor and Head of Department of a postgraduate programme

at the Turfloop Graduate School of Leadership, University of Limpopo, identifies cadre deployment as a key factor for problems experienced in the current public service. “In some cases, the South African government’s focus has been on cadre deployment – which has not focused on skills, but on the notion of political party loyalty.” He says this has largely created a system which has allowed political party problems to permeate the public sector. “The lower you get to the different spheres of government, the more negative and intensive this notion has become. For example, municipalities are the hardest

hit by the cadre deployment system which has not focused on skills, qualifications or experience.” In a bid to prioritise skills ahead of party membership, the National Development Plan (NDP) suggests that a selection panel convened by the Chair of the Public Service Commission (PSC) be used for senior positions. The Administrative Head of the Public Service (a position proposed by NDP but which has not yet come into effect) would then draw up a shortlist of suitable candidates for senior posts, from which the political principal would then select a candidate. This allows independent oversight to ensure that

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candidates are suitably qualified, while also ensuring that the final selection is compatible with the priorities of the political principal. The Commission’s Director-General Richard Levin says that policy discussions have not yet crystalised to the point that a decision had been taken to implement the initiative. He says the assumption is that such a system would deliver more suitable incumbents to the government. But he stresses that it will demand a big change in how government currently recruits public servants as political heads would have their powers curtailed. “South Africa, unlike governments in other countries, has an open recruitment system, where anyone can enter the public sector without having necessarily had experience within the sector.” He says that this was necessary after 1994 to ensure racial transformation of the public sector, adding that the NDP measure is an attempt to go “halfway back.”

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THE NATIONAL SCHOOL OF GOVERNMENT

Another initiative – the National School of Government, which replaced the Public Administration Leadership and Management Academy (PALAMA) in 2013 – could also help improve the public sector. Mandisa Tshikwatamba, the School’s deputy director general of Corporate Management, says that the new school has adopted a much more proactive stance to training public servants than its predecessor PALAMA. Courses are now developed with the distinct aim of increasing public sector performance at national, local and provincial level. Local government currently has its own separate school, but discussions are under way with the SA Local Government Association (SALGA) and the Department of Cooperative Governance and Traditional Affairs on how to work with the National School of Government. The focus will be on instilling continuous leadership in the public sector and to meet

certain requirements – some public servants may be assessed on certain competencies before they can apply for a promotion. Newly recruited public servants must now undergo an induction programme, developed by the School, while those involved in frontline offices must also complete a special training programme. Both were started in 2013. In 2014/15 about 5 000 public servants were trained in the eight-day frontline service delivery programme, while a further 16 000 passed through the first of five modules of the induction training programme. Tshikwatamba says the frontline delivery training focuses on certain areas such as defining good and bad service delivery, dealing with difficult customers, identifying customer needs and queue management. It also includes training on emotional intelligence. The induction programme is in place in national and provincial departments and includes five modules, each running for five days. New inductees have two years to complete the course; however Tshikwatamba said that at present the school has only been focusing on the first module which

receive a 2014 Florence Nightingale Award for Excellence in Nursing, from a list of 2 000 nominations from 335 hospitals around the country. She believes in going the extra mile.

“I sometimes tell them that I run a public clinic like a private one,” says Ndlovu, who adds that the awards have motivated her further – she is now writing a book about how to best deal with rape victims.

LEADING FROM THE FRONT

“When there is a challenge or when the police are experiencing a challenge, as I’m the manager, they can call me at any time on any given day – I will attend to the problems as quickly as possible.”

“People are looking up to me,” says Ndlovu.

Perhaps South Africa’s public sector needs more leaders like Duduzile Ndlovu, the operations manager at the Thuthuzela Care Centre at Port Shepstone Regional Hospital. Her centre has helped local police to achieve a conviction rate of between 65% and 90% for rape cases. Such a conviction rate is almost unheard of in South Africa. Last year Ndlovu, who provides expert witness in the courtroom, was the winner of the best frontline public service employee of the year at the Department of Public Service and Administration’s second Annual National Batho Pele Excellence Awards. It’s the fifth award in just a year for Ndlovu, a qualified clinical forensic practitioner who oversees a team of eight nurses. Last year she became one of six South African nurses to

She says motivating her staff and acting as an example for others is essential to her centre’s success rate. Recently she instituted a nurse of the month – drawn from the nurse who gets the best positive feedback from patients for that month. A laminated photo of the respective nurse is then put up in the centre.

South Africans are looking to those in the public sector to move the country forward. A more concerted e-government drive will help. But good leadership is key.

“I sometimes tell them that I run a public clinic like a private one.”

She now receives calls from across the country from other health workers in search of her secret to managing her clinic and jokes that she no longer has a life because of her dedication to her work.

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covers issues such as the Constitution, the structure of government, the policy of employment and labour law, probation details, supply chain rules and case studies around the expectation of citizens.

CHAPTER ELEVEN LO CA L G OV E R N M E N T

FREE STATE PROVINCIAL GOVERNMENT As part of the processes to implement the National Development Plan, the Free State province started with the process of developing the Free State Growth and Development Strategy Implementation Plan aligned with the NDP. Shaping the contents of the Plan are systematic indicators and targets meant to bring into focus the priorities that should inform departmental strategic and annual performance plans. The Plan will infuse the Medium Term Strategic Framework (MTSF) priorities and serve as the basis to guide the work of the clusters. This draft Plan will be discussed with the NPC Secretariat before completion and ultimate implementation.

Free State province. A draft NDP Free State Pilot Action Plan was developed and will be thoroughly discussed with the NPC Secretariat before finalisation and eventual implementation. Of utmost importance for the province has been the identification, packaging and implementation of major catalyst projects based on provincial potential set in the NDP and FSGDS and most importantly, giving a provincial perspective of some Strategic Infrastructure Projects (SIPs). These will be the anchors to drive growth and development. The NDP Schema for spatial targeting identifies the following areas of potential as pivotal for the province:

•

Launch of the Xhariep Fish Hatchery and inspection of the Gariep Dam Water levels

The province has also put together the NDP, FSGDS and IDP Alignment Guide; and the NDP, FSGDS, Strategic Plans and APP Alignment Guide – currently all draft documents. These guides will serve as instruments of mutual reinforcement of policy actions across government; they will detail the national, provincial and local government imperatives and their spatial growth and development application; and how they should inform integrated planning. More practically, the provincial Performance Monitoring and Evaluation, together with the Planning Unit, have been involved in a process to aid departments with the alignment of their strategic and annual performance plan with the MTSF and more importantly, the NDP and the FSGDS. This process follows an analysis to determine the alignment of departmental strategic and annual performance plans with, particularly, the MTSF by the Performance Monitoring and Evaluation unit.

GAUTENG-FREE STATE-KZN – SIP 2 The Gauteng-Free State-KZN Corridor will serve as a logistics hub for the country. Fo r t h e p r o v i n c e , t hi s M a l u ti - a - Ph o fu n g Sp e ci a l E c o n o m i c Z o n e c o m p r i s e s t h e H a r r i sm i th Ga te w a y a n d Tsh i a m e I n d u s t r i a l D e v e l o p m e n t a r e a . A f u n d i n g a p p l i ca ti o n fo r a n i n f r a s t r u c t u r e a m o u n t o f R 6 . 5 - b i l l i o n h a s b e e n m a d e . To e n su r e s p e e d y i m p l e m e n t a t i o n o f t h i s s e g me n t o f SIP2 , d e d i ca te d sta ff m e m b e r s w i l l b e e m p l o y e d b y t h e e n d o f th i s fi n a n ci a l ye a r.

•

THE N8 CORRIDOR AS A STRATEGIC TRANS-NATIONAL DEVELOPMENT CORRIDOR The process to develop the Mangaung Airport Development Node as part of the N8 development corridor is well underway. This project entails the servicing and release of 2 000 hectares of prime land with anchor developments. A total of 350 people have gained employment so far and it is envisaged that by the end of the site servicing phase, 11 000 people will have been employed. The full value of the Node is estimated at R100-billion.

Programmes or pilot projects where implementation of NDP proposals has commenced Based on the FSGDS, Pillar 6 – Good Governance (Chapter 13 & 14 of the NDP) was identified as the most critical for the

Community computer lab at Makholokoeng Agri-village near Harrismith

Contact details Free State Provincial Government Communication Services Telephone: 051 4054628 Email: hlaselanews@fspremier.gov.za

Address: 2nd floor, O.R Tambo House, Cnr St Andrew & Markgraaf Streets, Bloemfontein Website: www.freestateonline.fs.gov.za

“Of utmost importance for the province has been the identification, packaging and implementation of major catalyst projects based on provincial potential set in the NDP and FSGDS” • THE GREEN ECONOMIC ZONE

The process to create the Xhariep Solar Park, a 600-megawatt plant and solar panel, with the support of the Koreans, are ongoing. In addition, as a part of SIP 8 to considerably invest in the green economy, the bio-fuel project at Bothaville will soon be launched.

•

RESOURCE CRITICAL AREAS IN THE GOLDFIELDS REGION The FSGDS acknowledges the mining potential that still exists in the goldfields region of Matjhabeng. There is significant potential for coal mining in Matjhabeng, Nala, Moqhaka, Ngwathe and Metsimaholo. This also includes salt mining potential in Masilonyana, Tswelopele, Tokologo and Letsemeng and clay fields in Moqhaka, Ngwathe and Metsimaholo. Investors will be encouraged to explore these and other small scale mining opportunities in the province.

•

WATER RESOURCE AREAS Various Water Resource Interventions throughout the Free State are included in SIP 18 of the PICC and are in the process of being implemented through the national Department of Water Affairs. The province has done exceptionally well in eradicating most of the historic backlogs in basic water supply infrastructure. Key projects completed during previous years include the bulk water supply to Edenville, the QwaQwa areas including Kestell, Tshiame and Mokgolokweng, Paul Roux as well as Jagersfontein and Fauresmth

The face of the revamped Seisa Ramabodu Stadium

Identify any challenges that may negatively affect the implementation of the NDP in the province The successful realisation of the objectives contained in the NDP and FSGDS are largely predicated on a strong planning institutional architecture. Drawing from other provinces’ experiences, a strong Free State macro planning component and its sub-functional areas of research, policy and strategic infrastructure project planning should be created to vigorously embed the planning function. Planning capacity should be built throughout government departments not only to institutionalise the planning function but also to build evidence based planning culture. Drawing from international experiences, formal macro and sector specific academic planning programmes should be introduced.

Bridge at Diyatalawa Agri-village near Harrismith

A permanent Provincial Planning and Budgeting Committee should be created to intertwine the budgeting process with development imperatives as reflected in the NDP and FSGDS. Not only will this foster cohesion through collective action, but also pool resources based on a shared development agenda.

‘The strength and expansion of our economy lies on the growth of our people through e n s u r i n g j o b c r e a t i o n , e d u c a t i o n , s e c u r i t y, g o o d r o a d s , p u b l i c i n f r a s t r u c t u r e a n d holistic nurturing” - Premier Magashule

â&#x20AC;&#x153;Local govenment is particularly central in directly mobilising and engaging citizens to be active in their own development and therefore needs to build institutional capacity.â&#x20AC;? 19 4 | VISION 2030, O UR FUT URE O UR PLA N

Pascal Moloi

Founding member of the National Planning Commission

The National Development Plan (NDP) has been accepted and adopted as a roadmap for South Africa over the next 20 years. The vision and plan for 2030 has four broad objectives. It provides overarching goals to be achieved; calls for consensus on key obstacles and specific actions to be taken; provides a common framework for detailed planning; and creates the basis for making choices about how best to use limited resources. Central to the Plan is the creation of an environment where all South Africans enjoy a decent standard of living and have access to:

and efficient. Sections 152 and 153 of the Constitution set out the key objectives and developmental duties for local government in South Africa.

• Housing, water, sanitation and energy • P ublic transportation health and education • Safety and social protection • Employment • Leisure and recreation • Clean environments • Nutritious food

The National Planning Commission took stock of these sections of the Constitution, as well as the Local Government White Paper of 1998 and in particular focused on the key challenges preventing local government from playing its role, which in turn impacts on its ability to be accountable, responsive, effective and efficient:

Local government is critical in ensuring that these basic elements of a decent standard of living are met. To achieve this, local government – working with its people, various parliaments, business, labour and other development partners – needs to be responsive, accountable, effective and efficient. It is particularly central in directly mobilising and engaging citizens to be active in their own development and therefore needs to build institutional capacity. This requires strong leaders who will inspire confidence and trust in all residents. The notion of a developmental state directs us to unpack what is required for local government to be responsive, accountable, effective

• T he need for more integrated cooperative governance • A review of the role and future of provinces • A differentiated local government model • An enabling governance framework • A long-term approach to building capacity • S trengthening ward committees as part of community participation • Strengthening the legislatures • M anaging the relationship with political structures and parties This chapter will further interrogate these challenges.

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ENSURINGA RESPONSIVE, A C C O U N T A B L E , EFFECTIVE A N D EFFICIENT L O C A L GOVERNMENT S Y S T E M

THE NEED FOR MORE INTEGRATED COOPERATIVE GOVERNANCE

The NDP identifies the need to take a proactive approach to improving relations between national, provincial and local government. The state needs to recognise the discrepancies in capacity, particularly at municipal level and devolve greater responsibilities where capacity exists, while building capacity in other areas. Where capacity is more limited, particularly in many rural areas, municipalities should be allowed to focus on their core functions and not burdened with extra responsibilities. A more pragmatic fit between roles and capacity will only partly resolve challenges in the intergovernmental system. It is inevitable however, that there will be disagreements about how responsibilities should be divided and national government would need to intervene when necessary to mediate disputes.

REVIEW OF THE ROLE AND FUTURE OF PROVINCES

The future and role of provinces is a critical developmental question. From the perspective of a developmental state and effective local government, a review of the dual purpose of a province and the capacity of a municipality will always be necessary. A number of local government practitioners have argued that we need to have a strong national government, a coordinating provincial administration and

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strong local government in a unitary state dispensation. The section below will deal with differentiation. It is possible at this stage to argue a case for (in the mediumterm) strong Gauteng, Ethekwini and Cape Town City states. City-states combine both current provincial and municipal functions and competencies. Examples include Addis Ababa in Ethiopia, Tokyo and New York. Over time, regions such a Rustenburg, Msunduzi, Mbombela, Polokwane, Nelson Mandela Bay, Buffalo City and Mangaung could be considered. The review of the role of provinces will have to be considered as the effort to build capacity at local government level to direct development and national priorities increases.

A DIFFERENTIATED LOCAL GOVERNMENT MODEL

A differentiated model is necessary. The current one-size-fits-all approach to dealing with local government fails to appreciate natural and organic growth enjoyed (or suffered) by different regions. The rate of urbanisation and migration to major economic centres requires different responses. The devolution of key functions directly related to a decent standard of living needs to be considered in a comprehensive and progressive fashion. Deliberate compliance and capacity assessments based on agreed competencies and conditions should be ongoing. Devolution is increasingly becoming necessary in

built environments. Efforts by National Treasury, Cogta, Human Settlements and the Presidency must be encouraged. The City Support Programme run by Treasury, the Integrated Urban Development Framework coordinated by Cogta and the draft Human Settlements White Paper being developed by the department, are some of the policy initiatives aimed at redressing the apartheid spatial distortion. Their arguments build on Chapter 8 of the NDP, which deals with the challenge of transforming human settlements and the national space economy. The Presidency will need to define how planning can and should be institutionalised to give effect to a more responsive, coordinated and integrated system of government that will ensure collective approaches to the delivery and monitoring of social, economic and basic service at local government in general, and particularly, in urban centres.

AN ENABLING GOVERNANCE FRAMEWORK

Local government needs to shift towards developing a more enabling framework that focuses on developing systems. This could include operational guidelines for routine tasks and staffing frameworks for different municipal functions, so that municipalities can tailor their capacitybuilding strategies and staffing budgets to their core functions. Such guidelines could also provide an accountability mechanism to

The current back to basic approach driven by the Minister of Cooperative Governance and Traditional Affairs is an important intervention. The programme is built on five pillars: 1. P ut people and their concerns first and ensure constant contact with communities through effective public participation platforms. 2. C reate conditions for decent living by consistently delivering municipal services to the right quality and standard. This includes planning for and delivery of infrastructure and amenities, maintenance and upkeep, including the requisite budgeting to do this and ensuring that there are no failures in services, and where there are, restore services with urgency. 3. B e well governed and demonstrate good governance and administration, this includes cutting wastage, spending public funds prudently, hiring competent staff and ensuring transparency and accountability. 4. E nsure sound financial management and accounting, and prudently manage resources so as to sustainably deliver services and bring development to communities. 5. B uild and maintain sound institutional and administrative capabilities, administered and managed by dedicated and skilled personnel at all levels.

A LONG-TERM APPROACH TO BUILDING CAPACITY

Capacity building in most municipalities has become an event occasioned by the cyclic requirement of the incumbent administrations. The pattern has been routinised to cover the preparation of medium-term five year integrated development plans, the development of annual reviews and the production of annual plans or Service Delivery Budget Implementation Plans (SDBIPs)

and the consideration of adhoc and/or exigency requirements in between. The activities have been centralised to a few functionaries in the development planning, engineering and finance departments with the support of consultants and the offices of municipal managers. Very few municipalities have long-term plans spanning more than the five years.

were crowded out. Second, the contestation for roles and positions in the committees became an extension of contestation in the ruling party structures, particularly in its wards. Third, the agenda was restricted to electoral wards and were not able to take a precinct content, which is supposed to be the basic block of a spatial development framework.

The ability to develop long-term credible and comprehensive infrastructure and investment plans supported by funding and human capital resourcing models remain a challenge. The result is often under investment in repairs and maintenance of key assets and the absence of human resource succession planning.

A shift in the direction of precinct and planning for that transcend ward boundaries is necessary. Such committees have to reflect a balance between government programmes and community initiatives and be allowed to be platforms for accountability and engagement with ordinary people between elections.

The NDP suggests making local government an employer of choice and attractive to young people. There is however little attention given to planning and brokering commitments from sector departments and state entities in such a manner that the municipal delivery networks are sustained and maintained over long periods. Water, housing, electricity and transportation remain key areas of disconnect in the capability to plan, coordinate and sustain delivery at a local space. Local government is therefore challenged in the first instance to build capacity to broker cooperation; secondly, to have a long-term view of the capacity requirements; and thirdly, to mobilise and sustain the required resources.

STRENGTHENING THE LEGISLATURES

STRENGTHENING WARD COMMITTEES AS PART OF COMMUNITY PARTICIPATION

It is conceivable, as our democracy and our development agenda matures, that separation between these two arms of the state can be effected at local levels. Progressive mayors have often, to the surprise of their audiences, made calls for ward councillors to see their primary roles as being the representatives of their communities and not representatives of the mayors and executives, in the manner they approach debates in council chambers and deal with community grievances. The experiment by the ruling party, to have ward council candidates nominated by the communities before being endorsed by the party, should be encouraged. The party will be challenged to perfect the approach in the forthcoming elections. The next logical step would be for citizens to directly nominate mayors.

A strong characteristic and requirement of a developmental local government is its ability to be responsive and allow its citizenry to take proactive steps in determining their own future. The introduction of the ward committee system was a step in ensuring that this happens. There have however, been three challenges with the system. First, the ward committee system became a space where government invited communities to engage. The agenda therefore became determined by government. The committees degenerated into an extension of the townâ&#x20AC;&#x2122;s political and administrative agendas. The rudimentary and organic community initiatives that did not coincide with municipal programmes

At local government level there is no clear separation between the legislative and executive functions as both reside with the municipal council, which can delegate executive functions to an executive mayor or executive committee. The lack of a clear dividing line between the executive and the legislature is a common feature of the local government systems in many countries. However, it will be important for councils to develop a clearer understanding of these different roles and how they can best be managed in order to ensure that the oversight mechanism is not undermined.

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make it easier to identify where resources are being misallocated or processes mismanaged. This should be accompanied by strengthened national and provincial support and oversight for local government.

MANAGING THE RELATIONSHIP WITH POLITICAL STRUCTURES AND PARTIES

There will always be a strained relationship between political parties and local government. National political interests will always play themselves out at a local level irrespective of what party is in power. The challenge that local government faces relates to how this interphase is managed. The weakest points of interaction relate to the procurement of goods and services (the awarding of tenders) and human resource appointments. Attempts at the national level to centralise certain types and amounts of procurement should be carefully considered if this is to be applied at local government. Pressures faced by individual municipalities differ. Municipalities are also multi-sectoral institutions and have to be careful in centralising, for instance, the engineering department in the same way as a community development section. There have been attempts to regulate as opposed to firmly dealing with misdemeanours. The Systems Amendment Act is a classic example of where there has been a failure to deal with recruitment challenges. Regulations alone cannot deal with a political problem of undue political interference of parties in recruitment and procurement. There are sufficient, sometimes over sufficient, checks and balances and delegations for managers to manage without interference. They need protection by government political executives from political parties.

CONCLUSIONS

Fifteen years ago, in 2000, South Africa held its first fully democratic local government elections. Despite the problems and challenges faced over the years, the system will require very little tweaking from the view of the Constitution over the short to medium term. This suggests that the original architecture of the system was sound. There is room to amend legislation to address some of the challenges suggested in this paper and the NDP. To name a few areas where policy

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rethinking is required the following is suggested: • C onsideration of tightening the provisions of the Intergovernmental Framework Act to ensure compliance and sanctions for non-compliance. Such consideration should not be confined to moderating the relations between District Governments and Locals but be extended to relations with national government sectors and SOEs. • B uild strong governance and institutional models to ensure sustained capacity to lead and manage systems, processes and human capital. • I nstitutionalise central planning to align government planning and cement the municipal integrated plan as the basic element for National Planning. • R eview the composition, jurisdiction and mandates of ward committees and transform them into local committees that reflect precinct developments and people-centered agendas. • I dentify and recruit competent men and women to be employed at senior and critical positions at local government and insulate them from undue political interference. • M ake local government a career of choice for young graduates. • S peed up consideration to table amendments to the Structure Act to create single authority municipalities – the so-called ‘non-metro category A municipalities’. • A llow for greater and more deliberate capacitation of performing municipalities to increasingly and progressively devolve and assign provincial functions. • I nclude as part of the review of provinces, the relative relationships with the regions of eThekwini, Cape Town and the entire province of Gauteng. This may require more than just legislative amendments. • B uild on the experiments carried out in the metros to legislate for more separation of the legislature and executive functions in councils.

CHAPTER TWELVE E D U CAT I O N

“Attainment in basic education has increased, but the quality of education is still a major challenge.ˮ

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Marcus Balintulo Founding member of the National Planning Commission

and Percy Moleke

Education, broadly conceptualised, is identified as a key priority and driver of the National Development Plan objectives. The extent to which all sectors, private and public can create the educational infrastructure needed to support a thriving economy, adopt a shared commitment to increase the value placed on education and improve the educational programmes and outcomes at each level, will determine the success and sustainability of our development. Thus the NDP conceptualises education broadly, starting at foundation phase â&#x20AC;&#x201C; or early childhood development â&#x20AC;&#x201C; (ECD) to research and development (R&D). It argues for a focus on growing the capacity (quantity) and improving quality at all levels, as well as improving coherence between different players, institutional types and between these and the labour market.

THE CHALLENGE

Availability of high-level skills in the country is critical to drive economic growth and development. Availability of skills in turn is largely dependent on significant improvements in the quality of schooling outcomes and a more equitable distribution in learning opportunities. As reflected in the recently published 20 Year Review of Government, significant progress has been made in education. There is however a general agreement amongst all in society that our education system is performing below

its potential. There is also agreement that the problems are evident in the entire educationskills pipeline, from ECD to basic education to post-school to the labour market. There have been a number of initiatives to try and address some of these challenges, but learning outcomes have not improved. The outputs at each level of the education system and the quality of these outputs are mostly low and poor. The country is not getting adequate returns for the substantial investment in education.

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E D U CAT I O N A N D SKILLS DEVELOPMENT

Efforts to ensure increased access to quality early childhood development services have been slow and varied. Consequently, this very important phase of education and skill development is lagging behind and is marred with a myriad of conceptual and implementation challenges. Attainment in basic education has increased, but the quality of education is still a major challenge. Consequently education outcomes are far below par. Completion of secondary school education is still very low, with many learners dropping out of school after the compulsory phase, constraining the participation in vocational and higher education.

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THE EDUCATION SYSTEM IS NOT MEETING SKILLS NEEDS

The size and shape of the education and training system is undesirable for a country faced with challenges of youth unemployment and skills shortages.

STUDENTS START SCHOOL

FINISH SCHOOL

GRADUATE UNIVERSITY/FET

•1 .2 million start Grade 1

• 534 000 reach year 12 • 348 000 pass NSC •1 21 000 achieve Bachelor passes

•1 60 000 public university graduates •1 420 doctoral graduates •O nly 35% of FET students obtain qualifications

*Estimates done by Bhorat et al, 2015 based on the NIDS data.

There is an urgent need to expand the system and improve quality. Expansion is however not just about making room for ever-higher numbers. These numbers must be directed in the right areas of study, to the appropriate kind of institution and towards a sensible mix of the various levels within the post-school sector. One of the urgent priorities is to resolve the structural and systemic issues. There needs to be a clearly understood identity of each institution in the post-school system. At the end of elementary school, students must know what options are available to them and what the purpose is of each institution. They must be able to move between colleges and universities, between different universities, between schools and postschool institutions and between educational provision and the world of work. To change our post-school shape and size, the vocational education sector must be significantly expanded. The expansion should be progressive and follow the improvements in quality and success. Improved quality will instil confidence in the college sector and attract learners. The NDP proposes that the priority with this sector should be to strengthen it and fix the issues related to quality teaching and learning as well as improving its performance, i.e. increasing the success rate as well as the relevance of its programmes in industry – thus the employability of its graduates. This includes developing good governance standards and improving administration of colleges as well as adopting quality assurance measures, especially relating to curricula and training.

According to Gewer (2010: 16), colleges are facing a credibility crisis with industry to the extent that employees are better off trained in the workplace than VCET colleges. This underscores the need for colleges to reconsider their role with a view to improve their education and training offerings for the benefit of their stakeholders. The report further points out, correctly so, that partnerships lack the backing of strong public policy, regulatory frameworks and incentive schemes which are the foundations for establishing a partnership culture in vocational education and training. The university sector equally needs expansion. The NDP recognises that high quality knowledge production cannot be fully realised with a low student participation rate of 17%. Similarly in the current elite higher education system, participation rates cannot significantly improve for the previously disadvantaged. The Plan recommends that the participation rate be increased to over 30% and that enrolments in the university sector, including private universities sector, be increased from 950 000 in 2010 to more than 1.62 million in 2030, a 70% increase. Concurrent with the national attention towards expansion it is also necessary to ensure that quality and excellence are sustained and continuously upgraded in all the institutions. While larger numbers of students now have access, the graduation rates are poor and dropout rates are high, infrastructure at some institutions requires substantial investment, academic staff has limited qualifications and is not being replenished – and serious issues of race, class and gender remain. Underperformance of students will not change spontaneously. The NDP further proposes that graduation rates should increase to more than 25%. Achieving a 25% graduation rate will require an increase in the number of graduates from the combined total of 167 469 for private and public higher education institutions to a combined total of 425 000 by 2030.

FIXING THE EDUCATION PIPELINE

Decisive action needs to be taken in key aspects of the educational process – and at key points of the educational ‘pipeline’ to facilitate positive change in outcomes. The expectations and responsibilities placed upon the post-school sector should be understood in the context of its inputs. The poor performance of the South African basic education system – in combination with socio-economic background and other co-factors – places a greater burden on the post-school sector as it prepares young people for their various transitions and provides a skilled workforce in the economy. Most of the shortcomings in education can be traced back to poor preparation at foundation level. This consequently trickles down (or up) in the schooling system. Learner achievement data for South Africa suggest that particularly large inequalities are evident as early as the third grade and that the school system is not succeeding in closing such gaps thereafter, emphasising the importance of early educational interventions. As argued in the NDP and by other researchers (Branson et al. 2012), putting more resources into education is not the solution. Fixing a few basic things that could bring about improvements independent of socio-economic context will go a long way in improving educational outcomes. This does not mean additional resources are not important.

IMPROVING MEASURES OF PERFORMANCE ACROSS THE SYSTEM

In the absence of good quality data and information, most analysts use the NSC results to gauge, to some extent, the performance of the public schooling system. South Africa now has Annual National Assessments, which also represents a point of measure of the performance of the education system although they do not get as much publicity and analysis as the NSC results.

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The vocational education sector is also performing below par, not producing enough artisans and technicians and other desperately needed middle level skills. In addition, participation rates in higher education have not increased substantially despite increases in enrolments. The enrolments in critical subjects such as mathematics and science in schools is still very low. Consequently enrolments in areas such as engineering, science and computing are also low in higher education.

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At a macro level, the results of all these tests do confirm the two system narrative. Most of the poor performing schools (and thus their learners) are from poor schools, while the best performers are from the wealthy schools. The problem with this narrative is that it does not recognise the poor ‘good’ schools and the improvements that are being made by some of these poor schools. As a result, there is failure to recognise that there is some improvement in the public schooling system, that whilst it is not perfect, the poor part of the system does contribute significantly to the pool of NSC graduates and this is not only with respect to ordinary passes; but as the Minister of Basic Education reiterated in her speech when announcing 2014 NSC results, most of learners who got distinctions in the 2014 NSC results were from the poor schools. It is not impossible to have different measure points of performance in the system. Learners in each grade write exams at least twice a year, but these are not made public and only end with the learners and parents. Districts (at least most of these) collate these results and have a good sense of performance at the schools. With the NSC results it is impossible to understand and identify consistent patterns of performance over time and across the school. To some extent they tell us a bit about the school improvement interventions emphasised by schools and provinces at Grade 12. It is also difficult to know which of the interventions introduced by the DBE over time works and under which circumstances. Thus we don’t know what it will take to bring dramatic improvement in performance in education for different contexts.

THE IMPORTANCE OF EFFECTIVE ADMINISTRATION

At the centre of improving performance in education is the department’s internal capacity to implement education plans as well as establishing a culture of adherence to, and enforcement of, the minimum standards set in the system. Policy reforms and proposed interventions must be accompanied by clarity of purpose and capacity

for execution. Execution capacity must extend across the system and into all the schools. Just like teachers, administrators require continuous professional development in order to reconstruct new practices in light of new expectations about teaching and learning. Even with strong leaders and teachers in every school, instruction will not change without rigorous standards or clear expectations around teaching and learning.

CONCLUSION

The current debates around the need to dismantle colonialism’s assumptions in respect of our University curricula (captured cogently by Shay in Mail and Guardian) are very important in the current post-merger context. The texture and effectiveness of the higher education system’s contribution towards building a just and prosperous democratic society is still in question, given some of the unresolved inherited inequalities that continue to militate against an open and equal opportunity structure. At another level the question of the relationship between education and polity and economy is equally critical as some of the challenges in education can only be resolved through political and other interventions. In other words, the solutions to some of the challenges lie outside of the education sector itself. Or differently put, the problems of education emanate in large measure from the wider society and the education system may in tum reinforce and perpetuate these in the way it functions – for example, the problem of students from poor families going to poor schools and universities. Hence the promise and potency of the NDP in identifying education as a key concern for society as a whole that should transcend narrow sectional interests, however defined. References: Branson, N. and Zuze, L. 2012. Education, the great equaliser: Improving access to quality education. In “Children and Inequality: Closing the Gap: Part 2” Gewer, A. 2010. “Improving quality and expanding the further education and training college system to meet the need for an inclusive growth path”. Report for DBSA. Shay, S. 2015. “Dismantle Colonialism’s Assumptions.” Mail & Guardian, June 19 to 25 p 33

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Then there are the other international tests such as TIMMS, SACMEQ, PIRLS, which SA participates in and they also provide some data points that help gauge performance of the system and tend to be widely used and quoted.

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Education, Training and Development Practices Education, Training and Development Practices Sector Education and Training Authority Sector Education and Training Authority

ETDP the NDP NDP2030 2030goals goals ETDPSETA’s SETA’sshared shared vision vision towards towards the Introduction Introduction

DevelopmentStrategy StrategyforforSouth South Africa 2010-2030. Development Africa 2010-2030. Implement the the Sector SectorSkills SkillsPlan Planbybyestablishing establishing •• Implement Learning Place Skills Learning Programmes, Programmes,approving approvingWork Work Place Skills Plans from employers, Plans and andAnnual AnnualTraining TrainingReports Reports from employers, allocating thethe New SETA allocating grants grantsininaccordance accordancewith with New SETA Grants No.No. 35940) Grants Regulations Regulations(Government (GovernmentNotice Notice 35940) came into effect in December 2012. came into effect in December 2012.

Education,Training Training and and Development Development Practices Practices TheTheEducation, Sector Education and TrainingAuthority Authority(ETDP (ETDP SETA) SETA) was was Sector Education and Training established in March 2000 and re-established in November established in March 2000 and re-established in November 2010 2011 – 2016 terms theSkills SkillsDevelopment Development Act Act 2010 for for 2011 – 2016 in in terms ofofthe of 1998) amended).ItsItsmandate mandateisisto: to: (No.(No. 97 97 of 1998) (as(as amended). Promoteand andfacilitate facilitateskills skills development development in in the the • •Promote Education, Training and Development (ETD) sector for Education, Training and Development (ETD) sector for the benefit of employers, workers and employees to the benefit of employers, workers and employees to enable our people to participate actively in the South enable our people to participate actively in the South African economy. African economy.

•

Develop the (ETD) Sector Skills Plan (SSP) as guided

Develop (ETD) Sector Skills Plan (SSP) as guided by thethe 2015 SSP framework and requirements of the by Department the 2015 SSPofframework and requirements of the Higher Education and Training (DHET) Department Higher Education and Training (DHET) as well as of other legislative imperatives including the as well as other legislative imperatives including the National Development Plan (NDP), White Paper for National Development (NDP), White PaperPath for Post School Education Plan and Training, New Growth Post School Education Training, New Growth Path Framework, Nationaland Skills Accord, Green Economy Framework, NationalDevelopment Skills Accord,Accord, Green Economy Accord, Youth National Skills Development Strategy III,Accord, Human Resource Accord, Youth Development National Skills Development Strategy III, Human Resource

Contact Details

The Goals The ETDP ETDPSETA’s SETA’sStrategic StrategicOriented Oriented Goals

Fax: (011) 453 0695 Tel: info@etdpseta.org.za (011) 372 3300 Fax:www.etdpseta.org.za (011) 453 0695

info@etdpseta.org.za www.etdpseta.org.za

In inc Ph de su tea pe

Th me

In the implementation of its mandate, the SETA is guided In the implementation of its mandate, the SETA is guided by the strategic oriented goals which clearly articulate the by the strategic oriented goals which clearly articulate the organisation’s statements of intent. The goals are broken organisation’s statements of intent. The goals are broken down into six programmes for implementation purposes. downprogrammes into six programmes for implementation The are; Development of a credible purposes. sector The programmes are; Development of a credible sector skills plan; Quality teaching and learning in schools, TVET skills plan; teaching public and learning in schools, TVET Colleges andQuality HEIs; Improving service delivery in the Colleges andAccess HEIs; Improving public into service in the ETD sector; and progression highdelivery level skills ETD support sector; Access andexperiential progressiontraining; into high level skills and of work Supporting and constituencies support of work experiential training; Supporting ETD for skills development and Enhancing ETD constituencies for skills and organisational management anddevelopment administration forEnhancing quality service delivery.management and administration for quality organisational

service delivery.

Anti Corruption Hotline Number: 0800 204 937

Anti Corruption Hotline Number: 0800 204 937 Contact Details Head Office Eastern Cape Free State Gauteng Tel: (011) 372 3300 Head Office

Th co an tea TV to

Tel: (043) 726 8314 Eastern Cape

Tel: (051) Free State430 5072

Tel: (043) 726 8314

Tel: (051) 430 5072 Fax: (051) 430 5080

Fax: (051) 430 5080

Tel: (011) 403 1301/2/3/6 Gauteng Fax: (086) 614 8781

Tel: (011) 403 1301/2/3/6 Fax: (086) 614 8781

KwaZulu-Natal

Lim

Tel:KwaZulu-Natal (031) 304 5930/2 Fax: (031) 301 9313

Tel Fax

Tel: (031) 304 5930/2 Fax: (031) 301 9313

ng lls rs, TA 40)

The SETA’s Contribution towards the realisation Contribution towards the realisation of The NDPSETA’s Vision 2030 of NDP Vision 2030 In line with the NDP the ETDP SETA has strived to ensure that line development with the NDP the ETDP SETA has to to ensure that its In skills programmes arestrived aligned support skills development are aligned to support theitsbroader educationalprogrammes goals in order to be responsive broader educational goals in order to be responsive to the economic development within South Africa and the to economic development within South Africa and the following programmes have been implemented: following programmes have been implemented: The teacher development programme is designed to The teacher development programme is designed to contribute towards improving the quality of teaching contribute towards improving the quality of teaching andand learning in in thethe ETD learning ETDSector Sectorbybybuilding buildingthe the capacity capacity of of teachers in primary and secondary schools, lecturers in teachers in primary and secondary schools, lecturers in TVET Colleges and Higher TVET Colleges and HigherEducation EducationInstitutions, Institutions, for for them them to improve teaching and learning outcomes. to improve teaching and learning outcomes. In primary and secondary schools, In primary and secondary schools,the thecurrent currentinterventions interventions include; thethe training ofof under-qualified include; training under-qualifiedGrade GradeR/Foundation R/Foundation Phase teachers who Phase teachers whohave haveenrolled enrolledfor foraadiploma diploma or or B.Ed B.Ed degree; training Grade8-12 8-12teachers teacherswho whoteach teach various various degree; training of of Grade subjects contentand andpedagogy. pedagogy.The Themajority majority of of these these subjects onon content teachers located schoolsand anddistricts districtsthat thatare are underunderteachers areare located in in schools performing those subjects. performing in in those subjects. youth developmentprogrammes programmesare areaaproactive proactive social social TheThe youth development mechanism for managing change in the economy and mechanism for managing change in the economy and

ed he en es. or ET he lls ng ng ity

Chairperson - Ms. Shirley Mabusela

Limpopo Tel: (015) 295 9303 Limpopo Fax: (015) 295 9301 Tel: (015) 295 9303 Fax: (015) 295 9301

Mpumalanga Tel: (087) 700 8113 Mpumalanga Fax: (013) 752 2917 Tel: (087) 700 8113 Fax: (013) 752 2917

society. The aim of these programmes is to empower young society. The aim ofto these is to empower young people with skills workprogrammes with communities in implementing people with skills to work withas communities in implementing community based projects well as getting employment. community based projects as well as getting employment. Interventions for youth development have assisted with Interventions for youthindevelopment youth unemployment the followinghave ways:assisted with youth unemployment in the following ways: • The SETA has made the largest contribution towards • The SETA has made the largest contribution towards professionalisation of career development as a professionalisation of career development as a profession of choice for the unemployed youth profession of choice for the unemployed youth graduates. We have placed 200 career development graduates. We have placed 200 career development offices for training across all 50 TVET colleges. offices for training across all 50 TVET colleges. TheSETA SETAisiscurrently currentlyimplementing implementing learnerships in all •• The learnerships in all nineprovinces. provinces. nine The SETA SETAhas hasincreased increasedthe thenumber number students •• The of of students andand graduates’ exposure exposuretotothe theworld worldof ofwork work through graduates’ through the placement placementofof526 526graduates/students graduates/students work the in in work experiential learning learningininprevious previousyears. years. Work place experiential Work place exposure increases increases opportunities opportunitiesforforunemployed unemployed exposure graduates graduatestotoget getemployment employment •• Over thethe ETDP Over and and above abovethe thestated statedinterventions, interventions, ETDP SETA SETA continues continues toto improve improvethe thequality qualityof ofskills skills development include artisan developmentprogrammes programmesand andthese these include artisan development, internships, in-service training development, internships, in-service trainingandand skills skillsdevelopment developmentprogrammes. programmes.

The ETDP SETA shares The ETDP SETA shares the vision of the National the vision of the National Development Plan (NDP) and Development Plan (NDP) and will work endlessly towards will work endlessly towards ensuring that Chapter 9 ensuring that Chapter 9 of the plan ‘Improving of the planTraining ‘Improving Education, and Education, Training and Innovation’ indeed becomes Innovation’ becomes a reality forindeed the people of a reality for the people of South Africa. South Africa. The revolution continues. The revolution continues.

CEO - Ms.

Nombulelo Sesi Nxesi

CEO - Ms.

Nombulelo Sesi Nxesi

Northern Cape

North West

Western Cape

Tel: (053) 832 Northern Cape0051 / 2 Fax: (053) 832 0047 Tel: (053) 832 0051 / 2 Fax: (053) 832 0047

Tel: (018) 294 5280 North West Fax: (018) 294 5719 Tel: (018) 294 5280 Fax: (018) 294 5719

Tel:Western (021) 946 4022 Cape Fax: (021) 946 404 Tel: (021) 946 4022 Fax: (021) 946 404

The merSETA

and the supply of skills to its sector The stock of skills available to the metals, automotive, tyre and plastics manufacturing sectors includes the group of people that are currently employed in addition to those currently unemployed but available for work. The sector has suffered as a result of the economic recession and various factors that have constrained growth and profitability. According to data collected from March 2009 through March 2014, the manufacturing sector shed jobs at an average rate of 5.45%. The Adcorp Employment Index, released in June 2014, indicated that despite legislation intended to reduce the use of temporary workers or labour broking there still seems to be an increase in the outsourcing of temporary blue collar workers â&#x20AC;&#x201C; a growing trend across various industries. In the manufacturing sector, outsourced blue collar labour accounts for 33.6% of the total workforce. With regard to the supply of new skills to the sector, there has been substantial growth in the numbers of new graduates from tertiary education institutions in engineering fields most relevant to the merSETA sectors between 2001 and 2011. Output from all fields has increased substantially over the ten-year period, although a slight decrease in output was reported in all fields except chemical engineering in 2010. The average annual increase was greatest in industrial engineering (16.6%), followed by mechanical engineering (11.4%), chemical engineering (10.5%), metallurgical engineering (8.7%), and electrical engineering (4.7%).

The output from general education and training (GET) is important for the

artisans in the sector and another 33 480 learners successfully completed

merSETA sector in two key ways: first, the supply of adequate numbers

their learnerships, surpassing its targets.

of graduates with good quality mathematics and physical science passes acting as a feeder for the development of sufficient numbers of engineers

Challenges faced by merSETA within the current performance

and technologists at Higher Education and Training (HET) levels, and

environment

artisans at Technical and Vocational Education and Training (TVET) levels; and second the education levels (and thus the training potential) of the

The implementation of the merSETA’s skills development priorities are

general workforce who enter the sector without previous training. In both

linked to a range of interrelated strategic issues that arise from a sector

these areas the quality of the output from GET is of concern. While the new

by sector analysis. If all government-support programmes yield the

skills contribution of the TVET sector has traditionally been very limited,

targeted growth in employment, the implications for the demand of new

government’s determined focus on increasing both the quality and quantity

skills for each sector will be vast – necessitating funding far beyond what

of output from TVET colleges means that this sector is likely to play an

is available through the current levy system.

increasingly important role in skills development of the merSETA sector. This demands innovative methods by the merSETA to raise funds through If merSETA companies are to reach national employment equity targets

strategic partnerships and to improve the efficiency of spending on

for the proportional employment of People with Disabilities, it will be

training. Simultaneously, there will be increased demand on the education

important for the merSETA to encourage new sector-focused skills

and training sector which will require extensive capacity-building in order

development among potential disabled employees, as well as re-training

to improve both quantitative and qualitative outputs. However, in light

and accommodation strategies in order to support the retention of

of the current economic context, there are concerns that these new job

employees who become disabled.

targets may not be met due to industry arguing that skills development should be linked predominantly to real and current demand instead of the

The merSETA’s contribution to skills development is comprehensive,

(potentially inaccurate) forecasted targets set outside the sector.

spanning both the development of new skills for the sector as well as the development of skills in the existing workforce. The development of

Seeking clarity regarding these issues with the relevant government and

management and supervisory skills is ongoing; this group of employees

industry associations is a priority for merSETA in the coming period, going

needs to provide the sector with critical leadership and direction.

hand in hand with its focus on the development of an LMIP system and

Employees in merSETA companies have completed a total of 3 451

research capacity.

skills programmes over the 2012/13 financial year. This dropped to 1 300 completions in the 2013/14 financial year due to budgetary constraints. A

Overshadowing this is the awareness that the merSETA is entering the

total of 2 277 workers completed AET programmes in the same period. The

final year of its legislated lifespan and the expectation of broad changes

Foundational Learning Competence (FLC) qualification – a requirement for

to the SETA landscape and skills development system, coupled with

attaining an occupational qualification at National Qualification Framework

imminent work on the development of NSDS IV. The consensus is that

(NQF) levels three and four – will provide additional information on the

the immediate strategic focus needs to be on consolidation, rather than

potential availability of skills for the merSETA sector.

expansion; on evaluation of impact and refinement of current strategy, rather than development of new strategy; and on preparation for the

A substantial 189 751 people at merSETA companies benefited from

transition, including administrative and governance arrangements, and

attending short courses in 2013/14. However, the importance of the

the positioning of the merSETA and its sector stakeholders for the new

provision of experiential training for 2 009 individuals with technical

NSDS period.

qualifications and the support for Continuous Professional Development (CPD) for 27 256 individuals, cannot be underestimated.

CONTACT DETAILS

The merSETA’s major focus for new skills development centres on the 63 159 people on apprenticeships and more than 57 626 learners on

merSETA House, 95 7th Ave, Cnr Rustenburg Road , Melville, Johannesburg

learnerships. In the same period a total of 36 826 apprentices qualified as

Tel: 010 219 3000 / 086 163 7738

sector’s artisans. Since its inception, the merSETA has registered over

Fax: 086 673 0017 WWW

www.merseta.org.za merSETA Social

@mersetasocial

WE MUST BE FUTURISTIC IN OUR THINKING An interview with the Minister of Science and Technology, Naledi Pandor by Ryland Fisher

21 0 | VISION 2030, O UR FUT URE O UR PLA N

“The NDP has been a great help to the Department of Science and Technology as the national system of innovation: for the first time there is a long-term vision for South Africa,” said Science and Technology Minister Naledi Pandor in an interview at her office in Cape Town. “Science is an area that does not deliver results immediately. It requires sustained investment over time to make the greatest contribution to society. The adoption of a long-term plan for South Africa is an important affirmation for us regarding the role research, development and innovation can play in our country.” Pandor said the NDP confirmed that evidence-based policy making was critical. “This strengthens our armour and the work that many researchers do to provide government with evidence-based policy advice. “The NDP has a good section dealing with innovation and stresses that by 2030, South Africa should be a society that uses innovative approaches to resolve its challenges. “Our mandate through the NDP is to ensure that we build a robust national system of innovation, support our research institutions and encourage private sector investment, as well as continued upward growth in research funding by the public sector.

“The most challenging mandate set for us by the NDP is that we have to ensure that we scale up the enterprise through leveraging all available opportunities – local, public, private and international – to produce 6 000 PhDs a year. That’s the big mandate. Our challenge is that the level of investment of resources, as well as the ability of the system to supervise the vast number of post graduates, is still inadequate. We have accepted this as a target which we will pursue. “At the moment we’re producing close to 3 000 PhDs and currently our Medium Term Expenditure Framework doesn’t quite cover the funding needed to reach 6 000. “We would need to vastly improve our funding of post graduate students and it would have to be at the Master’s as well as PhD and Honours level, in order for us to build the pool of youth we need. “We’re working on a strategy for expansion at the moment. We’re looking at what has happened in the last three years, what kind of numbers at which we are looking, what financing was linked to those numbers and what we should develop as our projected strategy to take to Treasury in order to up the resources and the numbers we can possibly support.” Pandor said they had been working with the private sector on this project.

“Our mandate through the NDP is to ensure that we build a robust national system of innovation, support our research institutions and encourage private sector investment, as well as continued upward growth in research funding by the public sector.” V I S I O N 2 0 3 0, OUR F UTURE OUR P L AN | 2 1 1

I N T E R V I E W | N A L E D I PA N D O R

The Depar tment of Science and Technology aims to produce 6 000 PhDs a year in line with the vision of the National Development Plan.

“Every partnership we have includes a human capital development component. A number of private sector companies do have PhD programmes, but not enough. We are engaging on a regular basis with the private sector to encourage them to expand their support for senior post graduate students, including PhDs, but also we are worried about the absorption of PhDs into the private sector. “Very few private sector companies employ more than ten PhDs. In order to understand what is happening we’ve just agreed that we’re going to commission a study which will take us beyond recording the numbers of students who have been supported and graduated; we will look at what is going on more closely after graduation. “Working with the National Research Foundation, we will implement the study so that we understand what we’re dealing with in greater depth. The biggest absorbers of PhDs are your pharmaceutical firms, as well as SASOL and Eskom in the engineering field; but we need to understand the terrain much better than we do at the moment.” Pandor said the PHD programme sought to embrace all disciplines. “We’re focusing on all disciplines because those at the PhD level have the capability to produce new knowledge which is critical either in the social sciences, the humanities or natural and other sciences.” She said that the media often did not pick up on reports about progress made with regard to the NDP. “For example, we’ve published the new outcomes that were identified when the new government came into office in May 2014, after the July Legotla – all of which were drawn from the NDP. Different clusters have been given responsibility for implementing the outcomes. Those clusters have to report every quarter to Cabinet. “Our reports are scrutinised by the Monitoring and Evaluation Department in the Presidency

21 2 | VISION 2030, O UR FUT URE O UR PLA N

and after Cabinet has adopted the reports they’re published on the government’s website for public scrutiny. In addition, after each quarterly report, we hold media briefings per cluster. We try and do all that we can; but if you have a media briefing and there’s a current popular story, it tends to focus on that and not on the actual work that we’ve come to report on. “One of the mandates from the NDP is to increase youth employment. My department has expanded its internship programme which absorbed Masters and PhDs into various agencies and entities of the department. “We’re responding to the need for every government department to address youth unemployment because we have some young people who have studied in a range of disciplines, have post graduate qualifications but have never worked before. “We addressed this issue by having opportunities for unemployed graduates working with the private sector to develop an internship programme through what we call our Technology Top 100 firms which all agree that they will absorb young people. It’s been amazing to see what experience young people are able to acquire when given the opportunity.” Pandor said her department had a role to play in combating poverty and inequality, as identified in the NDP. “One of the areas we support is the research platform. A major area is the disease burden of HIV and tuberculosis. This has been a strong focus area in investing our research funding. Another has been child mortality as well as maternal mortality. We’ve invested in research in this area but more particularly look at how we can support women in poor conditions, especially in the rural areas, with better treatment to avoid death during childbirth – a common fatality due to excessive bleeding. “We’ve been trying to look at whether we can develop better delivery systems and drugs that support clotting to prevent excessive bleeding during childbirth. We’ve been

working with scientists to see whether there are drugs that can be delivered by health workers at primary health care sites in rural communities. “We’ve also invested in research in diseases that are prevalent in Africa. We have a team working on a tool for the quick diagnosis of Ebola. We’ve also implemented, with the Medical Research Foundation, a multi-million rand research programme on the Ebola virus. We are trying to understand the diseases of the most vulnerable in our society and develop high technology responses. “Added to that would be support that we give to departments such as Basic Education where we’ve been trying to see whether, through the CSIR’s team that works on nutrition, we can develop nutritious products to accompany the school feeding schemes. We need products that would have fortified minerals and vitamins so that children’s nutrition status can be improved in schools. “Some of the diets that have been developed for the school feeding scheme have contributed to obesity rather than assisting us with improving the nutrition status of children. We’re looking at fortified fruit juice and candy bars which have reduced sugar but more vitamins. We’re also looking at whether there are indigenous foods that should be in the school diet programme. Nutritional support, especially among children, is a strong focus area. “Next would be any indigenous knowledge systems. Again, we’re working with communities that have certain herbal remedies that are in use in our traditional communities but are not in the popular domain in pharmaceuticals. “We’re working with the private sector to see how, with communities, we could exploit these remedies to help us address our health problems. We have two candidate drugs under consideration by science platforms that we’ve created. One is addressing HIV/ Aids and the immune status of HIV-positive patients.

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action plan are successful. We must create more small and medium-sized businesses, improve employment levels and generate more revenue for the country so that we have the resources to implement what is needed. “Community support is important. There is talk about radical economic transformation. The NDP is radical and achieving its ambitions will be a fantastic achievement by South Africans. “We have to be more vocal in communicating the NDP as our instrument for radical economic transformation. It means we’re more capable in terms of skill; it means we’re technologically advanced, using the best technologies available and it would mean that people are occupied and generating resources for themselves.” Pandor said it was important to take the NDP into communities. “The National Planning Commission, led by Trevor Manuel, went into communities and asked what they want to see in a future South Africa.This has been incorporated into the vision off the NDP.

“A second drug that’s being looked at is for the treatment of tuberculosis which comes from herbs that are used by traditional healers and that have been found to be effective by researchers at the University of Pretoria and University of Stellenbosch. We’re looking to develop them for use in the commercial health space. Poor communities would benefit because something which is being used by traditional healers is going to be exploited in larger amounts. The community will have ownership and would be a shareholder in whatever benefits will accrue from commercialisation. “This has been done even with respect to teas made from local South African products, such as Rooibos. We also have cosmetic products for skin and hair. Communities are joint shareholders in all these initiatives and work either with the

2 14 | VISION 2 030, O UR FUT URE O UR PLA N

plants or in businesses established as a result of these developments.” Pandor said the major obstacle to the implementation of the NDP has been to bed it down in government. “We have to institutionalise it. That’s very important and will ensure that we strengthen implementation by all government departments.

“The National Planning Commission will continue to exist and hopefully will serve as a monitoring and support entity for implementing the NDP. To achieve the ambitious targets of the NDP, we’re going to need a bigger national budget and more public resources. “We have to ensure that our strategies of business formation and our industrial policy

“The NDP’s vision of the people of South Africa was an act of citizenry. We have to be very careful that in pursuing these strategies we don’t exclude the community of South Africa. Otherwise we will go back to a de-activated citizenry – that doesn’t play a role in shaping its destiny. “It is my responsibility to enter institutions of higher learning and explain to young people what the aspiration is for the knowledge economy and for future knowledge workers. More bursaries will be available to pursue Honours, Masters and PhDs. Striving for this will ensure a generation of knowledge for a new South Africa; they’ll be the innovators and at the heart of creating a South Africa that aligns with the image of Vision 2030. “We need to move from talking NDP to Vision 2030. This is what I use in my department. I refer to the NDP, but more often than not I say that we must talk about Vision 2030. We must be futuristic in the way we think about the work we’re doing.”

MASUKU SICELO NCAMISO’S STORY OF TRIUMPH OVER ADVERSITY My name is Masuku Sicelo Ncamiso. I am from Swaziland and am pursuing a career in Chartered Accountancy. My father was injured on duty in 2002 at Vaal Reef and was subsequently declared unfit to work. At that time I was completing my high school education and had no idea how I was going to get a tertiary one. My father never gave up trying to source funds for me. He was then referred to JB Marks Education Trust Fund offices where he met an official who gave him the application form. I applied and waited on feedback from JB Marks. I got my reply later in January 2012 and was so happy. I went to my father to share the news and assured him we have achieved our dream and that our lives at home would change for the better. My university life was improved with the introduction of a meal allowance as my father could not afford to send me money to survive. Today, I have my degree and I am grateful to JB Marks; they changed my family’s life, not just mine; and I will stop at nothing to show my appreciation for what JB Marks has done for me. The fund will forever be a part of me. One of the highlights that will remain in my heart and mind forever is the night of the awards ceremony. JB Marks gave me the opportunity to say thank you to my parents for all the support they gave me throughout my studies. I could see only joy in their eyes that night and it was a feeling for which I do not have enough words. I choose to dedicate all awards to my parents and I do not know if I can begin to thank my father enough for all he’s done – the National Union of Mineworkers (NUM) and the family of the JB Marks Trust Fund have enabled me to unlock the door to greatness.

JB MARKS EDUCATION TRUST FUND The JB Marks Education Trust Fund was established by the National Union of Mineworkers (NUM) in 1997, to address the need for black educated graduates entering the mining, energy and construction sectors. Over the last 17 years it has continued unabated to fulfil this need by providing tuition for members of the National Union of Mineworkers and their families, achieving meaningful change and capacity-building through improved education. The Fund has enabled 830 bursars to graduate with mainstream tertiary qualifications (including 15 medical doctors) and disbursed R154-million to over 2 000 beneficiaries, with 700 students still in the pipeline. JB Marks 2014 Awards were held at Emperors Palace on 29th August 2014.

C O N TA C T D E TA I L S 3rd Floor Alris Building, 3 Rissik Street, Johannesburg, 2001 Te l : 0 1 1 4 9 2 0 6 0 1 Fax: 0 1 1 4 9 2 0 9 5 3 Facebook: J - B - M a r k s - E d u c a t i o n Tr u s t - F u n d - A w a r d s Address:

A p p l i c a t i o n s o p e n f r o m 1 s t M a r c h – 1 s t J u l y a n n u a l l y. F o r o n l i n e a p p l i c a t i o n , v i s i t w w w . j b m a r k s e d u t r u s t . c o . z a

INTERVIEW WITH: JAKO MOKGOSI

JB MARKS EDUCATION TRUST FUND Jako Mokgosi, Prinicipal Officer

JB Marks invests in the education and skills development o f S o u t h A f r i c a ’s black graduates who aim to enter into the mining, energy and construction sectors. What is the JB Marks Education Trust Fund? The JB Marks Education Trust Fund was established by the National Union of Mineworkers (NUM) in 1997, to address the need for educated black graduates to enter the mining, energy, and construction sectors. How are candidates chosen to receive a bursary? Selection is based on merits and we consider the following: • G ood results and academic performance

21 6 | VISIO N 2030, O UR FUT URE O UR PL AN

• C ritical fields of study, as identified by HSRC of South Africa • P riority needs cases such as deceased, retrenched, or retired member’s dependants • Gender equality How successful has the trust been in addressing the need for educated black graduates entering the mining, energy, and construction sectors? Over the last 17 years it has continued unabated to fulfil this need by providing tuition for members of the NUM and their families, achieving meaningful change and capacity-building through improved education. What corporate social investment initiatives are the JB Marks Trust involved in? A successful community outreach innovation in 2012, the JB Marks Career Expo, was repeated in mid-2013. The venue was Sekhukhune Further Education & Training College in Burgersfort, Limpopo Province. The event was hosted in partnership with SABC Education, the National Youth Skills Development Programme, Sekhukhune FET College, Tubatsi Municipality and the Sekhukhune Circuit District of the Department of Education.

“ Tr u s t A l u m n i believes that the best form of aid is self-help and has set up mechanisms to assist each annual intake by ensuring mentoring and c o a c h i n g f ro m their peers.” The 2014 JB Marks Career Expo was held in partnership with Northern Cape Department of Education under the Francis Baart District, the National Youth Skills Development Programme, and SABC Education. About 6 000 learners from grades 10 to 12 from Kimberley high schools attended the Expo. What is the JB Marks Trust Alumni? Aligned with its vision: “Empowering protégés to achieve”, the Trust Alumni

believes that the best form of aid is selfhelp and has set up mechanisms to assist each annual intake by ensuring mentoring and coaching from their peers. This led to the establishment of the Core Team, or Graduate Committee, which since 2012 is called the JB Marks Alumni and Associates. JB Marks Alumni has four pillars: 1. Student development 2. Community development 3. Linking the NUM and JB Marks 4. Fundraising What would you list as the JB Trust’s greatest achievement to date? The Fund has enabled 830 bursars to graduate with mainstream tertiary qualifications (including 15 medical doctors) and disbursed R154-million to over 2 000 beneficiaries, with 700 students still in the pipeline. Postgraduate funding The Trust introduced postgraduate studies in 2013 to enable the beneficiaries whose fields of study require postgraduate degrees for qualification. The Trust provides for honours, Masters and PhD. JB Marks Graduate programme A group of 10 selected unemployed beneficiaries was put on a two year Financial Advisers Programme to be certified by FSB, upon completion of the programme. JB Marks Awards An important milestone was reached in 2010 with the inauguration of the JB Marks Awards to recognise the achievements of its graduates and to encourage and motivate its students.

How important is the National Development Plan (NDP) in securing South Africa’s economic future? The NDP is the blueprint of the country’s New Growth Path. It provides a diagnostic on development trends to enable all sectors to plan towards fulfilment of the strategic imperatives. The plan further highlights actions that need to be taken to make the country globally competitive. What will it take for the NDP to be a success in South Africa? A concerted effort is required from all sectors (public and private partnership) to contribute to education and skills development, which in turn contributes to job creation opportunities, entrepreneurship and sustainable communities. What is the JB Trust doing to align itself with the NDP? The JB Marks Education Trust, through its very existence, affords young people who are beneficiaries and members of the National Union of Mineworkers an opportunity to access quality education. It bridges the gap wherein beneficiaries would not have afforded to acquire higher education necessary for a developing country.

How important is education and skills development in ensuring the success of the NDP and securing South Africa’s future? Education and skills development are amongst the three high-level priorities in development. On a continual basis the skills set, informed by development trends in various categories, changes. Thus, quality education and skills development are important in the fight against poverty and unemployment, reducing crime and enhancing economic growth.

COMPANYDETAILS Physical address: 3rd Floor Alris Building, 3 Rissik Street Johannesburg, 2001 General queries: Phone: +27 11 492 0601 Fax: +2711 492 0953

On an annual basis, a desktop analysis is undertaken to determine which skills are required to make South Africa competitive. We conduct education expos in the most vulnerable areas in South Africa for school students to ensure that, as they plan their careers, they are aware of the critical skills required.

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“Over the last 17 years JB Marks has continued unabated to f u l f i l t h i s n e e d b y p ro v i d i n g t u i t i o n f o r m e m b e r s o f t h e N U M and their families, achieving meaningful change and capacityb u i l d i n g t h ro u g h i m p ro v e d e d u c a t i o n . ”

EDUCATION IS KEY TO THE SUCCESS OF THE NDP An interview with the Minister of Basic Education, Angie Motshekga by Ryland Fisher

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In a written reply to questions, Motshekga says the NDP is the “blueprint for what we want to achieve in our country. In education, we are committed to implementing the NDP and have aligned the NDP’s Vision 2030 with the Education Department’s Action Plan 2019: Towards the Realisation of Schooling 2030. The NDP has become part and parcel of all our strategic plans aimed at repositioning the sector for accelerated growth and radical transformation.” Motshekga said education is a societal issue and it is important to get everyone involved to ensurre that education prospers. “Education is perfectly placed to bring people on board with the establishment of the National Education Collaboration Trust (NECT) which pulls big corporates together and consolidates efforts by the private sector to assist in attaining the vision of the NDP. We also have provisions in the Schools Act such as the establishment and role of school governing bodies. “Schools need to be at the centre of communities in order for the NDP to be realised. We have recently gazetted the standards for school principals because we believe that they are both administrators and also the leaders of our schools.” She said one of the critical targets of the NDP is the call to increase the number of learners eligible for Bachelor’s programmes in maths and science by 450 000.

“In this regard, the Council of Education Ministers (CEM) has since approved the mathematics, science and technology (MST) sector plan pronouncing national and provincial targets to increase the number of learners doing mathematics. “We have subsequently issued a directive that schools which were not offering mathematics should, with effect from this year, incrementally offer the subject in Grade 10 as an option between mathematics and mathematical literacy. We are working tirelessly to promote the mathematics and physical science subject choice combination as a way to increase learner participation in pure maths. This will significantly improve learners’ chances of further education and training post-matric. “With the release of the 2014 ANA results, it became evident that the sector needed to craft a strategic response after the results showed that the Grade 9 mathematics performance had an unacceptably low average of 10.7%.” Motshekga said that, after a series of engagements within the sector, the Department has developed a framework for improving learner performance in the senior phase. “We agreed on 27 key activities and introduced the 1+4 Model. This Model is bold and radical; but in practice it is quite simple: all maths teachers receive high level training on Mondays for the content

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INTERVIEW | ANGIE MOTSHEKGA

Education is a fundamental pillar in the process of achieving what has been outlined in the National Development Plan (NDP), says Basic Education Minister Angie Motshekga.

learner support is prioritised to improve success and participation in MST subjects.” Motshekga said the Department has also commissioned a special Big Fast Results Lab on MST to develop a long-term strategy in improving the teacher content knowledge on these subjects. “The MST Lab is expected to develop mechanisms to encourage greater learner participation. It will also finalise a sector plan needed for systematic and increased success rates. “Our second radical intervention is around ICT. At its first lekgotla in 2014, the Council for Education Ministers (CEM) resolved that information and communications technology would be one of the key priorities for the sector to act as an anchor for the radical transformation of basic education. ICT is crucial to improve the quality and efficiency of the system from a number of aspects including administration, e-learning and teacher training. “For the ICT rollout to succeed an interdepartmental approach is required – looking at various issues of connectivity, broadband, devices, electricity and budget, amongst others.”

that they will immediately teach that week. We are confident that this radical step will go a long way in improving mathematics performance in the senior phase.

the MTEF) and the Dinaledi Schools grant (R367-million over the MTEF), which have been consolidated into a single grant to focus on maths, science and technology.

“As part of the review of the implementation of the MST strategy, the Department has completed the review process of the Dinaledi and Technical Secondary Schools conditional grants, which was recommended by a Ministerial Task Team.

“The purpose of the new grant is to strengthen the implementation of the NDP and the Action Plan 2019 by increasing the number of learners taking mathematics, sciences and technology subjects, improving the success rates in the subjects and improving teachers’ capabilities. The grant will achieve its purpose through the provision of support and resources to schools, teachers and learners for the improvement of mathematics, sciences and technology teaching and learning at selected public schools.

“The review has resulted in the introduction of a new maths, science and technology conditional grant. The MST conditional grant for 2015/16 totals R1.1-billion over the 2015 Medium Term Expenditure Framework (MTEF) – R352.2-million in 2015/16, R367.7-million in 2016/17 and R390.7-million in 2017/18. This allocation is taken from the Technical Secondary Schools Recapitalisation Grant (R771.4-million over

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“The grant will also provide ICT resources to schools, ensure teacher training (especially at senior phase) is accelerated, and targeted

Motshekga’s Department is steaming ahead with the implementation of access to, and utilisation of, ICT for teaching and learning. “Together with our local and international partners, we have already convened a preparatory ICT laboratory as part of the Presidential Fast Track Programme known as the Big Fast Result project or Operation Phakisa. “Phakisa is a Sesotho word which means ‘hurry up’. This highlights the urgency with which government wants to deliver on some of the priorities encompassed in the NDP. The President said the methodology was designed to answer fundamental implementation questions and find solutions, as the country tries to address poverty, inequality and unemployment, and other challenges, as outlined in the NDP. “The Operation Phakisa ICT Lab in Education was completed at the end of

“The ICT Lab in Education focused on four main strategic objectives, such as electronic content resource development and distribution; ICT professional development for management, teaching and learning; access to ICT infrastructure; and connectivity.” Motshekga said that, as part of a strategy to build functional teacher centres, the DBE has partnered with the private sector to provide ICT resources to all teacher centres. “Vodacom had provided information and communications technology to 60 teacher centres by February 2015. It is envisaged that a further 20 centres will be fully ICT enabled and compliant by August 2017 and the rest by 2019. In addition, Vodacom established a digital classroom portal to service all teachers and teacher centre managers. They are conducting 54 webinars for Grade 10 to 12 maths and science teachers. “CISCO has committed to installing their CEEDBox solution at all teacher centres by March 2017. This technology allows for bi-directional distance learning. It also includes access to CISCO IT academy training and the international computer driver’s licence course. “Mindset Network has committed to installing their satellite solution in 82 teacher centres, while UNISA has committed to installing 30 laptops, desks, furniture, video conference facilities, unlimited wi-fi, microwave connectivity and call centres in 35 teacher centres. “In conjunction with our partners such as Microsoft, Vodacom, Huawei, Ikando CC, Mindset Trading and the Nelson Mandela Foundation we have launched e-Libraries. The purpose of this project is to use the

established Vodacom ICT resource centres to set up 61 mobile libraries across the country. E-Book readers/kindles will be installed in these libraries and books will be loaded and read at the facilities. This initiative will enable those who don’t have access to reading material to read. Access to reading material is a major challenge in South Africa, with 85% of South Africans not having access to a nearby library. “This is further proof that education has indeed become a societal issue. The Department of Basic Education cannot work in vacuum. We work with, and depend on, the goodwill of thousands of our people as envisioned in the NDP when it talks to strategic partnerships in education. “On 18 July this year, to coincide with the sixth Nelson Mandela International Day, we launched an ambitious project to have 1 000 functional libraries in our schools per annum until 2019. As a start, our target is to provide at least two libraries in each of the nine provinces as a launching pad of this campaign. We have already convened a breakfast meeting with our key stakeholders from both the public sector and private sector to share our plans with them and mobilise monetary and non-monetary resources. “To show support and gratitude for this initiative guided by Madiba’s passion for education and reading, my Department has launched a drive to collect books from all DBE officials. From the collected donations, 67 books will be given to the 18 new ASIDI Libraries as part of the 67 minutes of service to honour Madiba’s legacy. “We have also partnered with the Department of Arts and Culture who have agreed to release about R78-million for the construction of libraries in the financial year alone.” Motshekga said her department was constantly measuring the success of their work, in line with the NDP. “Through the Annual National Assessments and the National Senior Certificate we constantly aim to improve quality and this can be measured not only by the overall numbers but also by the quality of the passes. We have seen an increase in

Bachelor passes. We also benchmark our systems and assessments internationally and participate in a number of international assessments, where we constantly see major improvements.” Motshekga said there was no conflict between the need for children to complete their education and the need for more skilled workers in the economy. “As mentioned previously, one of the initiatives we have introduced is an additional vocational educational pathway aside from the traditional academic stream. Our colleagues in higher education and training have also recently gazetted a policy on the formation of community colleges to address the skills needs of the country.” Asked how she would make sure that teachers embraced the values and goals of the NDP, she said government had been working with all stakeholders in education to convince them to come on board with Vision 2030. “Teachers are no exception and have embraced all the initiatives I have already mentioned through continuous consultation and engagement with the various teacher unions in the sector.” Motshekga said that there were no major

obstacles to the implementation of the NDP. “Through consultation and hard work we have managed to overcome any obstacles encountered thus far. The Big Fast process we have embarked upon is making ICT a reality in education.”

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INTERVIEW | ANGIE MOTSHEKGA

June. In collaboration with the World Bank and the Government Technical Advisory Centre (GTAC) at the Treasury, the Lab brought approximately 250 ICT in education stakeholders together for six intensive weeks with the aim of producing a systematic and detailed rollout plan for the delivery of curriculum through ICT infrastructure to all schools across the nine provinces of South Africa.

CHAPTER THIRTEEN H E A LT H

INTERVIEW | AARON MOTSOALEDI

EXACTLY WHAT WE ENVISAGED FOR HEALTH An interview with the Minister of Health, Aaron Motsoaledi by Ryland Fisher

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When the idea of a National Development Plan was first mooted, Health Minister Aaron Motsoaledi was one of those who opposed it. He thought that a group of non-health professionals would not be able to come up with a plan for health – but he was pleasantly surprised. Interviewed at his office in Cape Town, Motsoaledi said the good thing about the NDP is that at least departments are no longer operating on a hit-and-miss basis: “You work towards a particular direction because you’ve got things to achieve. You have a framework of a plan and I must say, we as the Department of Health, are extremely lucky. “When the National Planning Commission was set up, I was one of the Ministers who argued very strongly that we had to appear in front of that committee to defend our departments or to help design a plan for our departments. That was forbidden. They said that the NPC had to find its way without influence from particular ministers that had no turf to defend. It was a plan for the country not for one ministry. “I was disappointed because I was under the impression that what I thought should happen in health might not be included. This was not because the planners and commissioners are not clever, but because I am in health and therefore know firsthand what is missing. I was pleasantly surprised and quite excited when the Plan came out. It was exactly what we were envisaging for health.” Motsoaledi said it is “extremely important” for the NDP to succeed. “The NDP mentions seven different things for health. In the paragraph where it summarises the issues of health, it says that by 2030 life expectancy must be 79 years. If life expectancy is only 70 years today, then we need to work out what needs to be done to improve this. What is the cause of such a low life expectancy? How can this be reversed? “The NPD goes on to say the generation of under-20s must be HIV/Aids free – that’s

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another huge programme, even on its own. How do you make those born today free of HIV/Aids by the time they are 20? They should not be like the present generation. What do you put in place to make sure that such a thing happens? “Thirdly, it says the infant mortality rate must be less than 20 per 1 000 live births and the child mortality rate must be less than 30 per 1 000 live births. Infant mortality refers to children who die before their first birthday and child mortality means dying before their fifth birthday. What are the causes? What can be done to reverse this? What are the commonalities that cause children’s deaths before they reach their first birthday or their fifth birthday and what can be done to change that? “The NDP then goes on to say the burden of disease must be markedly reduced. In other words, it augments the findings of The Lancet, a famous British medical journal, one of the top four in the world. The Lancet commissioned researchers in South Africa to do a study in 2009 about the burden of disease; there are four highways through which South Africans are marching to their deaths: the first is HIV/Aids and TB; the second is maternal and child mortality; the third is non-communicable diseases – diseases of lifestyle which we share with the whole world – and the fourth is injury, trauma and violence. “They are not saying we must put up mechanisms to cure those diseases. They say we must identify the cause of the burden of disease. How do you do this? What preventative measures do you put in place? “This touches a nerve with me because I’ve been arguing that the South African healthcare system is too curative. We need a preventative healthcare system, the

“The NDP also talks about efficiency, effectiveness and equity. Quality and equity of the healthcare system must be guaranteed and universal health coverage must be available. Universal health coverage is the NHI (National Health Insurance) which is a flagship programme of the Department. “Additionally, the NDP outlines that by 2030 we must have dealt with the ecological factors that cause disease. In layman’s terms, they talk about the social determinants of health. These include clean running water, housing, education and a clean and safe environment,” says Motsoaledi. Motsoaledi says the NHI, which is his department’s flagship programme, will not be realised overnight. “If you look at the NDP – that central part which highlights efficiency, effectiveness, quality and equity – it talks about the NHI. It is generally believed that for the NHI to be achieved in South Africa, two great changes need to happen. The public service must dramatically change in as far as the quality of healthcare is concerned. And the exorbitant prices of private healthcare must be dealt with. These are the two crucial changes required in order for implementation to occur. “At the moment our activity within NHI is exactly that. How do we improve the quality of healthcare in the public service? We’ve already identified the areas and believe in an ideal clinic. What should a clinic look like in South Africa for people to appreciate its quality, efficiency and effectiveness? We’ve tried it in ten clinics around the country. A clinic which every person of any socio-economic group can enter and be satisfied with the service received is the ideal clinic.

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INTERVIEW | AARON MOTSOALEDI

heartbeat of which is primary healthcare – the prevention of diseases and the promotion of health. Additionally, we need a healthcare system that’s at the bottom and refers upwards. This is not happening now. The NDP is saying that we must promote health and prevent diseases. To do this we have to put in place a couple of measures.

“We have subjected the pilot programmes to the President’s Operation Phakiso. Eight streams were identified that would bring quality into any clinic. You can also apply that to a hospital. They include human resources, infrastructure and equipment, procurement or supply chain management and financial management, as well as waiting times.” Motsoaledi said that the World Health Organisation has identified certain building blocks for a good healthcare system and these align with the eight streams his department has identified. “If you go on to the website of the World Health Organisation, it outlines that a health system has got six building blocks. When you look at these building blocks, you will realise that they are more or less the same as what we’ve identified. The first building block is leadership and governance. Second is pharmaceuticals and other commodities which can’t be obtained if there isn’t a good enough procurement and supply chain management system. Third, a health workforce or human resources. Fourth, a healthcare financing system or financial management. Fifth is a health information system and last is a healthcare delivery system.” Motsoaledi said his department has “serious” NDP deliverables, but unfortunately people sometimes do not see it. “The problem in South Africa is that we don’t think about healthcare as keeping people healthy and encouraging an enjoyment in health. Instead, there is the perception that healthcare is disease care and there is a focus on what happens inside the hospital, rather than outside. “In 2009 we introduced the newest vaccines in the country, the Pneumococcal and Rotavirus vaccines. Children who are vaccinated are thus prevented from being sick. However, this is not seen as an advance in this coutry. Rather, medical gains are acknowledged only when a sickness is cured in a hospital. We want to shift the focus to preventative measures. “A study done by the NICH (National Institute of Community Health) has shown that preventative action reduced the incidence of pneumonia by 70%. These children would potentially suffer from pneumonia, go

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to hospital, get put on drips and injected with antibiotics. Seventy percent of that was averted. It also showed that 66% of admissions due to diarrhoea were averted because of the Rotavirus vaccine. This is a huge gain. “Another achievement is the prevention of mother to child transmission of HIV. Just a decade ago, in 2004, 70 000 children in South Africa were born HIV positive. Through prevention of mother to child transmission we’ve reduced that to 6 800. That’s a big gain, but because it doesn’t happen actively inside a hospital, people don’t see it. Children who are born HIV positive are 1 500 times more likely to die in their first six months. You can calculate how many children’s lives were saved. “TB is still a significant problem. The Statistician General calls it the biggest killer in the country. In 2009 we had 70 000 people die of TB. Six years later, we’ve reduced that figure to 40 000. That’s about a 43% drop in deaths, all because of our programmes. “Maternal deaths and deaths under 5 years of age from 2009 have dropped. We’ve decreased the number of women who die during pregnancy and childbirth and the number of children who die before their first birthday.” Motsoaledi said the biggest obstacle in implementing the NDP is human resources. “Rather than just focusing on the number of doctors or nurses, I am talking about the whole spectrum – from top leadership governance, productivity, efficiency to placing the right people in the appropriate jobs. We need well-trained people who know exactly what to do.” Motsoaledi said that the most visible part of his work, in terms of the NDP, would be the NHI. “People are asking me why we don’t tell the public about NHI. I’ve done the first round and discovered that, at the moment, it’s still very abstract and usually people like to see something concrete. “When they see good infrastructure in the clinics with a generator that does not get affected by load-shedding, a water supply system that is not affected by what is

happening in the municipality, where they don’t have to wait for long and where there are friendly nurses, the plan is easier to understand. One of the reasons why the queues are so long is because in 2004 there were 400 000 patients on ARVs; in 2009 that figure grew to 923 000 and today it’s three million. The clinics and the staff are not growing – the number of patients are. I visited the clinics to see just how slow the process is. I discovered that a person can wait for up to five hours in the queue for a file, before being seen by a doctor. To alleviate this problem we have distributed 3 000 computers to 700 clinics where paperless technology can be applied. Instead of a person waiting five hours for a file, it takes only 45 seconds. “It is this tangible difference that people want to see and it links to the NDP’s plan for efficiency and effectiveness,” says Motsoaledi. “Unfortunately, I’m starting to develop this doubt. I’m not usually a pessimistic person but I doubt whether we really are

serious about the NDP. I look at the type of appointments that are being made in provinces. The NDP made it very clear that if we really want South Africa to be successful, we need to have a competent public service. At the moment nobody can convince me that we are moving towards having a competent public service. “I am of course open to being wrong. However I haven’t seen any move or plan to move in that direction. That is the part that concerns me the most about the NDP or even the NHI. For the NHI to function, it needs a higher level of healthcare than what we currently have. There is an annual forum on health issues where they usually ask one question: If there’s one huge impactful action you can take to improve healthcare around the world, what is it? “In South Africa’s situation if you were to ask me what one impactful thing would help to realise the NDP, I would say human resources – quality, not really quantity. Are the right people in the right positions? If we can solve that I can assure you half of the work of NDP is done. My biggest problem is not the direction in which we are heading. It is whether we will be able to get there.”

CHAPTER FOURTEEN SECURITY

THE CHALLENGES OF CREATING A SAFER SOCIETY

An interview with the Minister of Police, Nathi Nhleko by Ryland Fisher

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South Africa will continue to develop a professional police service – in line with the National Development Plan – and it does not matter who is in charge, says Police Minister Nathi Nhleko.

not have long-term plans in place. They normally have five- or ten-year plans. Critics of democratic systems generally pick up this weakness. For South Africa to have a National Development Plan is quite a progressive step.”

Interviewed at his office in Cape Town, Nhleko said that the NDP had identified four areas of importance for the police which would define policing in a democracy.

Nhleko said that one could only have a safer society if one worked with societal structures.

“These areas are demilitarisation, professionalisation, an integrated criminal justice system and community participation in policing affairs. In other words, we must create a safe and secure environment. “It is interesting how the NDP articulates itself on these matters. In the past, police were just police and somewhere on the periphery of society. The NDP places police and policing at the centre of society and social make-up. It is quite an interesting development. “One of the weak points of many countries, and many democracies, is that they do

“This is what we have been driving with vigour over the past few months. Over the past six or seven months we have had over 67 community outreach programmes. “For this outcome to be achieved you need structured community activation. It can’t be an activation just because the Minister happens to be having an imbizo there. You require a sustainable form of a community activity. “Community policing forums, for an example, are critical structures of integration in achieving this particular objective and we are beginning to ask ourselves whether CPFs are capacitated to deal with this particular matter.

“Neighbourhood watches can only be effective and deliver largely on the basis of two particular things. They must enjoy community support and they must work with the police.”

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“I wish for a society where children are children and where they can play freely without looking over their shoulders most of the time. All of us must be in a position to feel safe but the experience of safety itself must begin with how we think around issues in our society. That’s an ideal state of society, because freedom can only be meaningful if all the attending matters around safety and security are addressed.”

“We are also looking at what CPFs mean. Their oversight and the extension of.oversight work much more at a localised level. For that oversight to be effective, we need to know what else we require to deal with their capacity issues. These are critical matters that we are beginning to engage with in view of this particular outcome.” Nhleko said there were many challenges to achieving a safer society. “For an integrated criminal justice system, you require an absolute level of commitment from all role-players be it justice, the police or the army. You require a similar level of coordination from all these role-players. That in itself is a work in progress. “The other issue is, of course, that practical measures also require a capital injection. For instance, we need docket management systems and case management systems. We have to look at how much of an investment in infrastructure we need to inject into this with a view to improving our work. “Demilitarisation, for instance, requires two to three different sorts of processes. We continue to assemble and train our people for alternative methods of crowd control, but equipment is a major challenge. There are all sorts of sophisticated items out there that essentially we have to look into in terms of how they can assist with crowd control and crowd management. “There will never be enough resources for us to be able to do all these things at once. Therefore we are incremental in our approach in phasing ourselves into an ideal state where we are able to look at these alternative methods of policing. “Community involvement, for example, is another area which is challenging because the South African society is such that police must just do their work. That’s the attitude of ordinary citizens. People do not see how they as ordinary citizens can help the police to do their work. There is an element of detachment. That’s a gap that we need to close. It comes back to the image of the police. It’s part of the same challenge that we have to consistently work on, so that people will realise that the police are there to save them and therefore they need to also

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assist them to be able to deliver. We haven’t reached that kind of state within our society. That is a challenge of its own.” Nhleko said there had been mixed successes with community policing forums. “In Alexandria, in Gauteng, for example, you have a system that appears to be working well. You have community patrols but these patrols are conducted with the police. In other words, neighbourhood watches can only be effective and deliver largely on the basis of two particular things. They must enjoy community support and they must work with the police.” Asked whether crime statistics reflected properly on how safe South Africa was, Nhleko said there were different perceptions on this issue. “That’s a very interesting question and I would encourage further discussion on this issue. Essentially what your question is, what are the variables that build this picture of a safe and secure environment? Are crime statistics the only thing that we should depend on? My view is that if you want to deal with that issue, you need to look holistically at all influences and variables. “There is an increasing number of people who are beginning to say they feel safe. That’s a matter of perception really. I’m saying that there are a number of variables, which are interdependent, that one has to look into, to deal with the question of to what extent a family can say that we feel safe and whether we are a safer society. “Your question still remains a contentious issue, not only for South Africa as a country but the globe as a whole. There’s a debate about whether or not this society is less violent than centuries ago. It’s an ongoing debate, but statistics seem to indicate that there’s a downward trend when it comes to issues of violence and how violence defines our society as it stands. So it’s an important part.” Asked why South Africa was such a violent country, Nhleko said: “It’s a complex question and perhaps not so complex. Poverty can be counted as a factor – I don’t dispute it – but this country witnessed a lot of violence before freedom, a lot of which was institutionalised. You had institutions of state that based everything that they did on inflicting pain on the majority of South

Africans. At some point the majority of South Africans had to react to that kind of violence. So you had a brewing violent culture, if I may put it that way. “The other thing that needs research is the impact of the gap between the rich and the poor, and how this informs the pattern of violence. This gap is much wider in South Africa than in countries such as Ghana or Mozambique. “In South Africa, someone will snatch your phone and even if you do not fight back, he will still pull out a gun and fire a shot. We need to understand why this happens. We need political leadership to focus on this issue. Most of the criminal activities in South Africa are accompanied by anger. The question is what informs this anger. A few months ago I visited a farming area around Pretoria because of a crime that was committed there. Two fellows broke into this farm house and found a 90-year-old man on his own. They picked up a television set, decoder, cell phones, small things, but still they were not satisfied so they beat him up. Now the question is: ‘You broke in with the view to steal, and you have already stolen. Why are you still beating up this old man?’ “I’m illustrating a point about some degree of anger somewhere which we need to begin to unpack and work out how to deal with. Another example is when a union is aggrieved by the fact that their members are not getting paid enough. They declare a dispute with the employer, go on strike, withdraw from the workplace and still break things. Then they have a dispute with someone who is crossing the street somewhere, maybe a fellow worker who is not on strike, and they want to beat him up. “That’s the kind of anger that we need to unpack. What exactly are we dealing with? It’s a complex kind of subject as well. It requires a study. The levels and patterns of violence are far too high in our society and they manifest themselves in different ways. Even the question of rape of women and violence against children and the elderly, are manifestations of violence. It has nothing to do with sexual acts or conduct. It has everything to do with violence. We need to unpack what informs this anger. I would hope at some point we are able to confront

Nhleko said he was happy with the work that has been done to change the image of the police force, but there that there is still a lot to do. “I acknowledge and appreciate the fact that we have progressed over the past 20 years but we need to now closely engage with certain circumstances within the police service. It’s possible that we took things for granted at certain points of our development. Policing in a democracy is extremely difficult and it requires a particular set of skills to do that. We have put institutions in place that hold the police to account. If you act in a particular way then you must explain your actions. That’s why we have had the Marikana Commission – it is about accountability. Many people got shot and killed and you must then explain why you did what you did. That’s accountability and this is what we did not have prior to 1994.

the following day. Police officers will investigate crime irrespective of who is the minister or the national police commissioner.” Nhleko said there were many things that he would like to see by the year 2030. “I would like to see the gap between rich and poor reduced; the gap between urban and rural reduced; the gap between men and women reduced. I aspire towards a society that is completely free and that taps into its own potential for development. I wish for a society where children are children and where they can play freely without looking over their shoulders most of the time. All of us must be in a position to feel safe but the experience of safety itself must begin with how we think around issues in our society. That’s an ideal state of society, because freedom can only be meaningful if all the attending matters around safety and security are addressed.”

“For an integrated criminal justice system, you required an absolute level of commitment from all roleplayers be it justice, the police or the army.”

“In certain respects, I’m quite happy with the work that has been done but there’s quite a lot that still has to be covered. We need to look at whether the training of police is in tandem with the Constitution and with the ethos and concept of our democracy.” Nhleko said he had confidence in the leadership of the police, but he also had confidence in ordinary police men and women. “The police service is an institution of professionals. You can’t be a policeman or a policewoman unless you have undergone a particular form of training, which is not simply about how to handle a weapon. There’s the intellectual part that goes with this. You have specialisations for cases of murder and rape and cases which require forensics. I’m quite confident about our operatives on the ground and their various levels of expertise. Forensic experts, bomb disposal experts and detectives continue to do what they have to do. “They will continue to do it irrespective of who is in leadership. It does not matter whether you have me as a Minister today or you have me as a national commissioner

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I N T E R V I E W | N AT H I N H L E K O

this issue and therefore design methods of beginning to deal with it as South Africans.”

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In 2015 the SAPS has come a long way, but still has plans in progress for further improvements to service delivery and quality of access, especially to make police stations their most accessible platform. A programme, called the frontline service delivery being piloted at the moment in more than nine of their stations, before being rolled out to the other 500, focuses on simple things such as the look and feel of stations. Resources will be used on further signage and the reorganisation of police station space. Another focus is ensuring that police stations are seen as service centres for the people; instead of doing service on a printed charter the police should negotiate service charters with communities with focus groups being held to voice the service expectations of communities.

SAPS AS AN EMPLOYER The SAPS aims to be a public service which is a career of choice. Currently, promoting the SAPS seems to be at the bottom of the pile on recruiters’ desks; a revised recruitment approach is being implemented highlighting the benefits and positive aspects of the profession. This strategy will encourage the recruitment of quality people and will ensure that the recruitment in itself screens ideal candidates. Part of their advertising strategy includes full-day lectures for parents and the children, where selfassessments are completed. The SAPS has, over the years, adopted a zero tolerance approach to corruption by building a resilient, anti-corruption system. For the first time there is a department called the Integrity Unit, a structure which is in its advanced stage of completion. It has successfully trained the first 20 ethics officers. The SAPS is also reviving what are called disciplinary trial units to professionalise internal hearings so that disciplinary processes are rigorous and effective.

THE SOUTH AFRICAN POLICE SERVICE The vision of the South African Police Service (SAPS) is to create a safe and secure environment for the people of South Africa. The unit’s mission is to prevent and combat all potential threats to the safety and security of any community, investigate any crimes which threaten that safety and security of any and all communities, ensure offenders are brought to justice and to participate in efforts to address the causes of crime. The SAPS aims to protect everyone’s rights and to be impartial, respectful, open and accountable to the community. The SAPS uses the authority given to it in a responsible way and provides an effective and high-quality service with honesty and integrity; it evaluates its service continuously and makes every effort for improvements; it ensures effective, efficient and economic use of resources and develops the skills of all members through equal opportunity. The SAPS cooperates with all communities, spheres of government and other relevant role-players and ensures that the core business, management and administration of the organisation is coordinated.

CONTACT DETAILS:

Physical address: SAPS Head Office Koedoe Building 236 Pretorius Street Pretoria

Private Bag X94 Pretoria 0001 Telephone number: 012 393 1000

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Exports are seen as one of the drivers for growth, an area where the IDC has historically played a large role, supporting

the creation of jobs in rural areas.

manufacturing and mining companies to increase their role

ForwArd looking

in the global economy. Manufactured export products include

The NDP requires SA to increase its growth levels. The IDC’s

agro, basic metals and automotive.

overarching aim is industrial capacity development, with

environmentAl SuStAinAbility And reSilience In support of the NDP’s focus on sustainability, IDC’s green business unit supports emissions and pollution mitigation. In

employment creation as a key outcome. During the global crisis, the IDC played a countercyclical role by increasing its levels of investment, supporting South Africa’s ability to further develop an industrial base for future growth.

addition, IDC has funded recycling projects that contribute

Its recent results have been positive and, taken over the past

to a greener economy. In terms of funding, the corporation’s

five years, the corporation’s funding approvals increased to a

greatest funding contribution has been in supporting

cumulative total of R58.5bn, a 78% increase from the R33bn

projects participating in government’s renewable energy

approved in the previous five-year period. The value of funds

procurement programme. Over the last three years, IDC

disbursed, the principal indicator of actual investment in the

has approved R13.5-billion in support of the Department of

economy, increased from R20.3bn to R47bn over these two

Energy’s Renewable Energy Independent Power Producers

periods, representing an increase of 132%.

Programme.

“Although 2015 may prove to be another challenging year, we anticipate a successful IDC performance by further contributing to the expansion and diversification of South Africa’s industrial base,” says Qhena.

IDC CEO Geoffrey Qhena: Corporation will continue to support government’s development objectives.

FUELLING SA’S INDUSTRY DEVELOPMENT

The work of the Industrial Development Corporation (IDC)

directly supports the achievement of the NDP goals – acting as a catalyst for local and regional economic growth and

social transformation by funding projects in the productive sectors of the South African economy.

In the last 20 years, the IDC has supported the expansion, diversification and transformation of various economic sectors. The state-owned development finance institution approved funding of R13.8-billion in its 2013/14 financial year, a 5.8% increase from the previous year. IDC chief executive Geoffrey Qhena says the corporation will continue to support government’s development objectives, especially by developing and investing in priority sectors set out in the NDP. “We will support projects that promote localisation, import replacement and ultimately export market development, assisting emerging black industrialists and increasing youth participation in our economy,” says Qhena. ECONOMY AND EMPLOYMENT CREATION The NDP envisages the creation of 11 million jobs by 2030, of which it is estimated IDC will contribute 5% directly through its funding activities. The IDC’s core mandate is the development of industrial capacity by supporting sectors that are closely aligned with the long-term NDP priorities. Exports are seen as one of the drivers for growth, an area where the IDC has historically played a large role, supporting manufacturing and mining companies to increase their role in the global economy. Manufactured export products include agro, basic metals and automotive. ENVIRONMENTAL SUSTAINABILITY AND RESILIENCE In support of the NDP’s focus on sustainability, IDC’s green business unit supports emissions and pollution mitigation. In addition, IDC has funded recycling projects that contribute to a greener economy. In terms of funding, the corporation’s greatest funding contribution has been in supporting projects participating in government’s renewable energy procurement programme. Over the last three years, IDC has approved R13.5-billion in support of the Department of Energy’s Renewable Energy Independent Power Producers Programme.

ECONOMIC INFRASTRUCTURE DEVELOPMENT The IDC supports infrastructure development primarily through localisation of inputs. A substantial portion of its funding activity was in direct support of localisation – which plays an integral role in government’s strategy to maximise the benefits of the massive public sector investment in the expansion of upgrading of South Africa’s infrastructure. Not only are these efforts contributing to the manufacturing sector’s revitalisation but they are also reducing the import leakage historically associated with capital expenditure programmes. The IDC has also assisted the Presidential Infrastructure Coordinating Commission in the coordination and integration of the National Infrastructure Plan and its Strategic Integrated Projects, particularly those focusing on the development of Saldanha-Northern Cape Development Corridors and Green Energy in support of the economy. INCLUSIVE RURAL ECONOMY Several of the corporation’s business units including agro-industries, forestry, mining and green-industries have a large impact on the development of rural areas. A large percentage of IDC’s investments are in rural areas. The agro-processing unit has the largest direct impact on the objectives of this part of the plan. By supporting the establishment of agro-processing facilities, the corporation contributes not only to greater value addition in these areas but creates demand for agricultural products and assists with the creation of jobs in rural areas. FORWARD LOOKING The NDP requires SA to increase its growth levels. The IDC’s overarching aim is industrial capacity development, with employment creation as a key outcome. During the global crisis, the IDC played a countercyclical role by increasing its levels of investment, supporting South Africa’s ability to further develop an industrial base for future growth. Its recent results have been positive and, taken over the past five years, the corporation’s funding approvals increased to a cumulative total of R58.5-billion, a 78% increase from the R33-billion approved in the previous five-year period. The value of funds disbursed, the principal indicator of actual investment in the economy, increased from R20.3-billion to R47-billion over these two periods, representing an increase of 132%. “Although 2015 may prove to be another challenging year, we anticipate a successful IDC performance by further contributing to the expansion and diversification of South Africa’s industrial base,” says Qhena.

*First published in the Business Day NDP feature.

Call center +27 860 693 888 | Tel: +27 11 269 3000 | Fax: +27 11 269 3116 or email callcentre@idc.co.za | Address 19 Fredman Drive, Sandown | Postal address PO Box 784055 Sandton, 2146

CHAPTER FIFTEEN C L I M AT E C H A N G E

“This time, the mood is different. Climate-change experts are decidedly more optimistic. They say they have detected a willingness among governments – especially in so-called developed countries – to act with greater urgency and decisiveness.” 23 6 | VISION 2 030, O UR FUT URE O UR PLA N

By Dougie Oakes From November 30 to December 11, 40 000 delegates representing more than190 countries will gather at a conference in Paris, France, to thrash out a response to one of Earth’s most dangerous peacetime threats: out-of-control global warming. It will be the 21st meeting of the Congress of Parties (COP), which falls under the auspices of The United Nations Framework Convention on Climate Change (UNFCCC) – and some observers believe that COP21 will be the most important gathering of the body yet.

In terms of this Protocol, governments were required to cut greenhouse gas emissions by 5% percent by 2012 (compared with 1990 levels). But while developed countries were given targets, developing countries, such as Mexico and South Korea, were not.

Up for discussion and action will be the drawing up of a new plan to keep global warming to below 2˚C.

And there was another snag.

Over the years, COP can reflect on a sad history of agreements painstakingly thrashed out – but quickly broken. The rot had already set in, in Rio de Janeiro in 1992, when UNFCCC bound governments to take action to counter global warming. But like so many United Nations agreements; it did not specify the actions that needed to be taken. The result was a talk-shop filled with hot air and five years of babble, out of which came the Kyoto Protocol.

The Protocol could only come into force if countries representing 55% of global greenhouse gas emissions ratified it. But with the US Congress filled with a powerful pro-big business bloc, this was never going to happen. And so it proved. However this time the mood is different. Climate-change experts are decidedly more optimistic. They say they have detected a willingness among governments – especially in so-called developed countries – to act with greater urgency and decisiveness.

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F E AT U R E | C L I M AT E C H A N G E | D O U G I E O A K E S

THE IMPORTANCE OF THIS YEAR’S UNFCCC COP21 FOR DEVELOPING COUNTRIES

There is another evolving issue that will aid the process, they believe. They are convinced that a telling contribution to the fight against global warming will provide the outgoing US president, Barack Obama, with an opportunity to cement the legacy of his presidency, both at home and abroad – and earn himself a place befitting of a Nobel Peace Prize winner, in world history. There is widespread determination to consider paper promises from countries such as the USA, China, France, Germany, the UK and Russia as worthless if not followed by quick, concrete action. Thus, the form of action taken by developed countries will be carefully watched by a myriad of developing countries. It is no secret that poorer countries have long been bearing the brunt of global warming and greenhouse gas emissions. These countries believe that without the launch of a purposeful plan and buy-in to arrest this trend, the threats to their existence will multiply. One issue that is likely to be hotly debated in Paris is: who will pay for the processes put in place? Poorer countries insist that rich countries should pay (seeing that it is in the rich countries that the greatest quantity of greenhouse gas emissions are produced). The rich countries are not happy about this. In Copenhagen in 2009, $30-billion dollars was pledged to poor countries to ‘fast-start’ the process; the idea behind it being that by 2020 at least $100-billion a year will be provided for this purpose. But then came the most devastating recession since the Great Depression. Although poor countries want this agreement to run beyond 2020, the majority of rich countries, imbued with the message of austerity, have dug in their heels, stating that they refuse to pay these amounts out of their public purses. They insist that most of this funding should be provided by private funders and that organisations such as the World Bank should play a role in getting potential funders to commit to this.

COUNTRIES MOST AT RISK

For a number of years, Verisk Maplecroft, a British-based risk analysis company, has been highlighting those countries most at risk

23 8 | VISION 2 030, O UR FUT URE O UR PLA N

from climate change, in its Climate Change Vulnerability Index. In its 2015 version of the index, the company has Bangladesh – a country with an unfortunate history of flood, famine and pestilence – on top of the list of 10 countries that it considers most at risk. Haiti and the Philippines are the only non-African entries joining Sierra Leone, South Sudan, Nigeria, Chad, Ethiopia, Central African Republic and Eritrea. Mozambique, at 27, also features in the ‘extreme risk’ category. It is no coincidence that agriculture is the main activity in each of the countries regarded as high risk. For instance, up to 85% of the population of Chad and Ethiopia are involved in agriculture. In Eritrea it is 78% and in the Central African Republic and Mozambique, around 75%.The implications of climate change – and with it, the spectre of failed crops – is a devastating prospect for all these countries. As it is, the world has already been given a foretaste of what happens when weather patterns change – especially in countries where intense struggles for resources are already under way. In South Sudan, for example, climate change has had a massive impact on food production which, in turn, has increased already unmanageable poverty. The consequences of unmanageable poverty has been mass migration, humanitarian problems, conflict, widespread atrocities and instability far beyond South Sudan’s borders. And matters are likely to get worse. The United Nations Inter-Panel Group on Climate Change has predicted that, due to climate change, the production of staple crops such as rice, wheat and maize could decline by up to 50% over the next 35 years. It is not only countries on the Verisk Maplecroft Climate Change Vulnerability Index that are at risk. Other regions around the world also face a variety of threats. In the Middle East and North Africa, for instance, more than 33% of the inhabitants of various countries participate in agriculture that relies on rain to feed their crops. Already, changes in temperature and rainfall have threatened food security in these regions. Climate change will multiply that threat to dire proportions.

OTHER THREATS

The normally staid World Bank has also added its voice to the clamour for action in response to climate change. In its response to the debate, it has looked at the consequences that some countries will suffer as a result of temperature increases. If temperatures rise by just 1.5˚C, the Bank has pointed out in a graphic of alarming facts, the resultant melting of glaciers and polar ice will push up sea levels to between 0.2 and 0.5 metres. The consequences will be dire for at least two countries in North Africa: in Morocco, 1.8-million people will be affected by flooding; and if flood protection measures fail in Alexandra, $50-billion worth of damage will ensue. With regard to the Balkans and Russia; the Bank has predicted that a 1.5˚C rise in temperature will lead to the proliferation of mosquitos carrying Dengue Fever; and that a rise of just under 2˚C will result in an increase in methane gas as a result of the melting of permafrost. In pointing out that ‘this doesn’t have to be the future’, the World Bank suggests that governments can take action by: 1. Putting a robust price on carbon 2. Removing fossil fuel subsidies 3. A ccelerating energy efficiency and the use of renewable energy 4. I mplementing climate-smart agriculture 5. Building low-carbon, resilient cities. All these interventions are possible if resource-rich, developed countries such as the USA, China, Germany, France and the UK show a willingness to act. In recent months, there have been encouraging promises from countries such as the USA and China (although these promises have been greeted with some scepticism).

STIRRING INTO ACTION

On March 19 2015, President Obama signed an executive order which, in effect, promised that the US federal government would reduce greenhouse gas emissions by 40% from 2008 levels by 2025.

F E AT U R E | C L I M AT E C H A N G E | D O U G I E O A K E S

To do this, all federal agencies in the US would have to shift to renewable and carbon-free energy sources, the president said. With the federal government being the largest consumer of energy in the US, the effect of the president’s order would be a saving of 26-million metric tons of carbon dioxide, experts estimated. However, this represents only 0.7% of the emission account of the whole of the USA – and to make a real impact, Obama said he was hoping to ‘lead by example’. Observers said the main aim of the executive order was to get the private sector in the US to join in – and to put pressure on other countries to do the same. On 29 June, 2015, China, the world’s largest emitter of carbon dioxide, promised to cut emissions by 60 to 65%, from 2005 levels. It also promised to increase its share of non-fossil fuels as part of its primary energy consumption to approximately 20% by 2030. China’s bouquet of promises also included moves

to increase the use of wind and solar power to about 10% of its primary energy consumption by 2020. The European Union pledged to cut emission of greenhouse gas by 40% by 2030 – this, compared with its 1990 levels.

“Apart from climate change, coal also causes irreparable damage to the environment, people’s health and communities around the world. While the coal industry itself isn’t paying for the damage it causes, the world at large is,” Green Peace said.

AFRICA AND COP21

In terms of a decision taken in 2011 at the Malabo Summit to authorise the Climate for Development in Africa (ClimDev-Africa) Programme, Africa is geared to take up an African Common Position for each session of COP21. But South Africa itself is likely to be strongly criticised both before and after the conference for its determination to use coal in the running of existing and planned power stations. According to environmental action group, Green Peace, a third of all carbon dioxide emissions come from burning coal. “It is used to produce nearly 40% of the world’s power, and hundreds of new coal plants are planned over the next years, if the industry gets its way.

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2014

President Jacob Zuma launches Operation Phakisa

3,900km

Department of Environmental Affairs & DPME leads Phase 1

of coastline & islands

World-class maritime infrastructure Abundant marine life

15,3bn

2,900

labs

designated activities & projects

22,000

Job creation opportunities by 2019

Potential contribution of oceans economy to

GDP

Marine Transport & Manufacturing Dipuo Peters (DOT) Rob Davies (DTI)

Offshore Oil & Gas Exploration Ngoako Ramatlhodi (DMR) Tina Joemat Pettersson (DoE)

Aquaculture

Marine protection Services & Oceans Governance

Senzeni Zokwana (DAFF)

Edna Molewa (DEA)

Thulas Nxesi (DPW)

Nosiviwe Mapisa -Nqakula (DOD)

Lynne Brown (DPE)

Naledi Pandor (DST)

9bn

300mT

barrels estimated offshore reserves

Cargo handling

375 years

environmental affairs planning monitoring and evaluation

Marine Protected Areas in SA Security

estimated equivalent of gas deposits offshore

in range

1,0%

contribution to SA fish supply

Boat & Ship Building

80 Rigs

=½

of global fish supply

• Increased production • Access to markets • Rural development

Research

Sustainability

“ nlocking the economic potential of South Africa’s

Oceans”

C O M PA N Y P R O F I L E | D E A

Minister of Environmental Affairs Edna Molewa

COMPANYOVERVIEW The Department of Environmental Affairs (DEA) is mandated to ensure the protection of the environment and conservation of natural resources, balanced with sustainable development and the equitable distribution of the benefits derived from those resources. In its quest for better use and management of the natural environment, the DEA is guided by its constitutional mandate, as contained in section 24 of the onstitution. The DEA fulfils its mandate through formulating, coordinating and monitoring the implementation of national environmental policies, programmes and legislation. In 2009, President Jacob Zuma announced the establishment of a new DEA, led by Minister Edna Molewa, Deputy Minister Barbara Thomson and Director-General Nosipho Ngcaba.

Deputy Minister Barbara Thomson

COMPANYDETAILS Minister: Edna Molewa Deputy Minister: Barbara Thomson Director-General: Nosipho Ngcaba Environment House, 473 Steve Biko Rd, Cnr Soutpansberg Rd Arcadia, Pretoria, 0083 South Africa Tel: +27 86 111 2468 DEA call centre e-mail: callcentre@environment.gov.za Website: www.environment.gov.za

COREBUSINESS The mandate and core business of the DEA is underpinned by the constitution and all other relevant legislation and policies applicable to the government, including the Batho Pele White Paper. The Department’s programmatic areas constitute the following: • Administration (Chief Operations Officer) • Air quality and climate change • Biodiversity and conservation

FASTFACTS Reporting to the Minister of Environmental Affairs are:

• Chemicals and waste management • Environment programmes (encompassing the expanded Public Works Programmes) • Environmental advisory services • Financial management services • Legal authorisations and compliance • Oceans and coastal research

VALUESSTATEMENT In 2011, the DEA adopted five new values: passion, pro-active, people-centric, integrity and performance. Driven by our passion as custodians and ambassadors of the environment we aim to be proactive and foster innovative thinking and solutions to environmental management premised on a people-centric approach that recognises the centrality of Batho Pele. We put our people first and serve with integrity – an important contribution to our highperformance-driven organisation.

•

S outh African National Parks

•

South African Weather Service

•

outh African National Biodiversity S Institute

•

iSimangaliso Wetland Park Authority

VISION A prosperous and equitable society living in harmony with our natural resources.

MISSION Providing leadership in environmental management, conservation and protection towards sustainability for the benefit of South Africans and the global community. V I S I O N 2 0 3 0, OUR F UTURE OUR P L AN | 2 4 1

ENVIRONMENTAL SUSTAINABILITY: AN EQUITABLE TRANSITION TO A LOW-CARBON ECONOMY

South Africa has a rich endowment of natural resources and mineral deposits which, if responsibly used, can fund the transition to a low-carbon future and a more diverse and inclusive economy. Investment in skills, technology and institutional capacity is critical to support the development of a more sustainable society and the transition to a low-carbon economy.

Carbon-pricing mechanisms that target specific mitigation opportunities need to be implemented. Consumer awareness initiatives and sufficient recycling infrastructure should result in South Africa becoming a zerowaste society. The development of environmentally sustainable green products and services, including renewable energy technologies, will contribute to the creation of jobs in niche markets where South Africa has or can develop a competitive advantage. VISION 2030 By 2030, South Africa’s transition to an environmentally sustainable, climate-change resilient and low-carbon economy will be well under way:

• A daptation strategies in conjunction with national development strategies are implemented, including disaster preparedness, investment in more sustainable technologies and programmes to conserve and rehabilitate ecosystems and biodiversity assets • Investment in consumer awareness, green product design, recycling infrastructure and waste-to-energy projects results in significant strides to becoming a zero-waste society • The development and marketing of niche products and services, coupled with mutually beneficial partnerships with neighbouring countries, creates jobs in domestic manufacturing of renewable energy technologies

• C oordinated planning and investment in infrastructure and services that take into account climate change and other environmental pressures provide South Africans with access to secure housing, clean water and decent sanitation, as well as affordable and safe energy, making communities more resilient to the impacts of climate change and less socio-economically vulnerable

STEPS TOWARDS THE VISION To achieve this vision, South Africa will need clear long-term development strategies to address the challenges of poverty, unemployment and inequality while managing natural endowments in a sustainable manner. Within the increasingly resource and carbon constrained global economy, the challenge is to grow sustainably by building the technological

base for decoupling the economy from natural resource consumption and carbon emissions. These considerations must be central to a national development strategy. BUILDING SUSTAINABLE COMMUNITIES Building sustainable human settlements requires more than bricks and mortar. In taking on its responsibilities for the building of vibrant human settlements, the state must adhere to principles of sustainable development by: • R educing the carbon footprint and economic costs of transport for the urban poor by facilitating access to affordable, safe and convenient public transport and promoting job-creating industries to be located in close proximity to new housing developments • Encouraging a holistic approach to low-cost housing developments that include local recreational facilities, retail opportunities, as well as community, social, and health services • E nsuring compliance with strengthened environmental requirements in building regulations, particularly with respect to energy-efficiency standards and the roll-out of solar water heating RESPONDING EFFECTIVELY TO CLIMATE CHANGE: MITIGATION Over the past few years, South Africa has increasingly stated its ambition to act responsibly to mitigate the effects of climate change. Domestic and international commitments are based on Cabinet’s approval of the peak, plateau and decline emissions trajectory in 2008, which was formalised internationally in South Africa’s Copenhagen Pledge in 2009. RESPONDING EFFECTIVELY TO CLIMATE CHANGE: ADAPTATION South Africa’s capacity to respond to climate change is compromised by factors such as social vulnerability and dispersed and poorly planned development, rather than an inadequate climate-specific policy. South Africa’s primary approach to adapting to climate change is to strengthen the nation’s economic and societal resilience.

This includes ensuring that all sectors of society are more resilient to future impacts of climate-change by: • • • • •

Decreasing poverty and inequality Creating employment Increasing levels of education and promoting skills development Improving health care Maintaining the integrity of ecosystems and the many services that they provide

ENHANCING GOVERNANCE SYSTEMS AND CAPACITY Government will lead the transition to a low-carbon economy which will require investment in governance systems and capacity. In relation to reducing the carbon intensity of the economy, the following institutional arrangements and actions will be important: • E nsuring that climate change is effectively addressed and mainstreamed in every department, under the supervision of the Presidency and National Planning Commission, as an essential component of a broader national development strategy • S trengthening the Department of Environmental Affairs’ capacity to provide mechanisms and oversight for the monitoring, reporting and verification of sectoral carbon emissions • Strengthening and reforming regulation of the energy sector 2015’s AIM: PLANNING, PILOTING AND INVESTING South Africa creates the framework for implementing the transition to an environmentally sustainable, low-carbon economy as a core element of its strategy for sustainable development as proposed in the Plan as a whole. • T he roles and institutional arrangements indicated by the Climate Change Response White Paper have been reviewed and implemented, as appropriate; and processes and systems have been developed to enable their mandate to be delivered • An independent Climate Change Centre, in partnership with academic and other

appropriate institutions, is established by government to support the actions of government, business and civil society • A regulatory framework for land use is in place to assess the environmental and social costs of new developments and ensure the conservation and restoration of protected areas • Strategic environmental assessments are used to reduce regulatory obstacles in environmental impact assessments and provide incentives for green economic activities 2020’s AIM: IMPLEMENTING PROGRAMMES OF SUSTAINABLE DEVELOPMENT AND TARGETING THE EMISSIONS PEAK As socio-economic development begins to make significant inroads into reducing poverty and unemployment, emissions are in the process of peaking: • L and, agriculture and water development strategies have provided the basis for programmes of environmentally sustainable rural regeneration • T he development and marketing of niche products and services is encouraging the domestic manufacture of green technologies • The introduction of carbon pricing has been completed and assessed and proposals have been finalised for its economy-wide extension 2030’s AIM: AN ENVIRONMENTALLY SUSTAINABLE SOCIETY, EXPANDED LOW-CARBON ECONOMY AND REDUCING EMISSIONS South Africa has reduced poverty and unemployment to socially sustainable levels, as emissions reach a plateau. Investment in low-carbon and climate-resilient infrastructure has enabled South Africa to export and profit from its technologies and skills and benefit sectors that deliver enhanced energy, food and water security, new high-quality job opportunities and an improved quality of life. Various incentive frameworks and a suite of comprehensive carbon-pricing policies have catalysed high levels of private investment in mitigation and adaptation activities, as well as generated public resources for reducing emissions.

Address: Environment House, 473 Steve Biko Rd, cnr Soutpansberg Rd Arcadia, Pretoria, 0083, South Africa Tel: +27 86 111 2468 DEA call centre e-mail: callcentre@environment.gov.za Website: www.environment.gov.za

“Commitment towards selfless, excellent and sustainable service to all our communities”

Profile •

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Mission

The socio-economic profile of Amathole reveals that income levels are low with more than 50% of households earning less than R42 000 per annum.

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Ensure access to socio-economic opportunities

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Buildi the capacity of local municipalities within Amathole District Municipality’s area of jurisdiction

A statistical comparison of service delivery between 1996 and 2011 reveals that though there is a great improvement, service delivery is still relatively low in ADM, especially when contrast it to the national average

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Ascribe to a culture of accountability and clean governance

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Sound financial management

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Political and administrative service delivery

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Contribute to the betterment of our communities through a participatory development process.

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Amathole is made up of two former homelands and is rural in nature

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Community services – comprised in the main by government contribute about 42% of all jobs in the ADM, followed by trade (18%), manufacturing (10%) and households (10%)

interface

Amathole District Municipality Telephone: 043 7014000 Address: Waverley Office Park, 3 - 33 Philip Frame, Chiselhurst, 5247 Email: info@amathole.gov.za www.amathole.gov.za

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CHAPTER SIXTEEN W H E R E W E H AV E B E E N A N D W H E R E W E A R E G O I N G

â&#x20AC;&#x153;The development of people and the creation of an environment in which there is an incentive to invest is, in the view of the inaugural Commission, what must underpin transformation.â&#x20AC;? 24 6 | VISION 2030, O UR FUT URE O UR PLA N

COMPREHENSIVE

E CO NO M I C T R A N S F O R M AT I O N AG E N DA Bridgette Gasa Founding member of the National Planning Commission Towards the latter part of its work, the inaugural National Planning Commission (NPC) grappled with how best to outline a comprehensive economic transformation agenda for South Africa. The Commission concluded its work amidst calls for radical economic transformation which were growing stronger; as it were, ideas about the nature of the transformation sought were not keeping pace with the development agenda as espoused by the National Development Plan (NDP).

A need therefore arose for a discussion on what a programme to accelerate economic transformation ought to look like. In reflecting back on the work the Commission covered when it produced the NDP, the humbling recognition is that it would be difficult to purposefully pursue a social compact without fully ‘centering’ redress which can be achieved through economic transformation. The Commission asked itself what models of this form of transformation it had not as yet interrogated. This prompted it to properly reflect on the varied components of what economic transformation effectively means. In this reflection the most obvious subcomponents of economic transformation included: a review of the macro-economic fundamentals pursued; industrialisation; the transformative policies of government and models of economic transformation in a developmental state. And it became apparent that our work would never be fully done were we not to properly flesh out the issues of economic transformation with a

view of providing some useful commentary into the future. The transformation that is envisaged by the inaugural NPC is one in which there is a fairer balance of outcomes – in ownership, production, distribution and consumption (with both racial and gender dimensions) – as well as of opportunities, leading to a more inclusive, participative and cohesive society. In that respect, economic transformation, in its multi-dimensional character, should seek to address the following: • Ownership of economic assets • Access to economic opportunities • I ncome and wealth distribution, as well as access to public goods • The structure of the economy and polity: - Away from extractive sectors and to more inclusive approaches towards more participative, skilled and innovative industries - A way from extraction of super profits towards a more equitable distribution

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IN PURSUIT OF A

- A way from low wage adversarial labour relations to a high wage, inclusive and participatory labour relations system

A useful start to arrive at a more comprehensive economic transformation programme may be to recognise that as much as ‘growth’ will be required to support investments in social and economic infrastructure, economic growth in and of itself is not the panacea. Indeed growth is necessary to enable all citizens to achieve an acceptable standard of living. However, the form and nature of such growth needs to be premised upon less socially and environmentally damaging growth paths. It is important to consider whether the current structure of the South African economy is conducive to the objectives set in the NDP and how this would address the more specific challenges of economic transformation. The development of people and the creation of an environment in which there is an incentive to invest, is in the view of the inaugural Commission, what must underpin transformation. There is a general recognition that on issues of deepening inequalities of society, there is little in the NDP that points to a different path for the SA economy. The Plan requires an average 5% growth which we have not yet been able to achieve consistently as a country. The question is what kind of dislocation must happen to push us in a different direction? Does the small size of the economy not impact on the room we have to change the fundamental structure of the economy? The platform would also help us understand the type of political economy required. Changing the structure of the economy would result in it being more inclusive, sustainable, achieving appropriate sectoral balance with opportunities for all, integrated value chains and less barriers to entry. That, in our view, would help propel us towards this more comprehensive economic transformation programme.

A NEW NARRATIVE REQUIRED

Many years into our democracy, ownership of the economy is still terribly skewed

in favour of the minority groups in South African society. If one were to look at the entire economic structure of the country, it still reflects the sad and unfortunate apartheid and colonial past. Thus, everything in the current narrative of economic transformation is informed by that framework. When people talk about radical economic transformation, the Commission’s view is that they do so from a paradigm of the old framework – and there is a need to break that mould of the old framework and begin to consider a new narrative. That need extends to looking at the factors that must be changed to qualify as radical actions. Otherwise as a country we do not have a chance to ever mobilise around social cohesion and best be able to stimulate and catalyse national conversations on appropriate redress measures.

those different meanings presupposes that there has been deeper thinking on what we mean about economic transformation in all of its details. This alignment some would consider a real test of whether South Africa would be able to promote a more radical and more effective process of economic transformation. There is an agreement on alignment but there is no mobilisation of society and this can only be done by quasi state institutions such as the Planning Commission.

The NDP contains a vision of a transformed society in which all South Africans would enjoy a decent life, live in a healthy environment and be included in activities of the broader society, with a variety of opportunities for all. The challenge was always going to be the manner in which we define a broad path that can get the country there. This broad path needed to address the core objectives of unemployment, poverty and inequality. However, it was always going to be unlikely that simply addressing these objectives and prerequisites alone can satisfy the demand for ‘economic transformation’.

kind of current macro-economic policy choices that have facilitated financialisation in the South African economy have indeed not been fleshed out to a great level of detail, either.

As bold as the NDP is in respect of articulating these objectives, the criticism that the inaugural NPC received is that it lacked the necessary boldness in tackling the facilitatory and nurturing interventions that are required to change the structure of the economy.

WHERE THE COUNTRY GOT STUCK

As a country we have been so focused on micro-economics we missed the opportunity to have a fundamental debate on how the macro-economics shape the ability of the state. Economic transformation, as topical as it appears to be at the moment, does mean different things to different people. Alignment of

The overall discussions around economic transformation, in our view, have fallen short in taking forward a much more nuanced discussion on the structure of the economy, the role of the state, macro-economic policy, de-industrialisation and what are perhaps the big issues of our times: financialisation, which refers to the growing integration of global financial markets. The

The relationship between financialisation and de-industrialisation has not been sufficiently teased out. Furthermore, macro-economic policy discussion in South Africa has been constrained and the analysis and solutions to central economic questions have invariably focused on micro issues. For instance, when people talk about unemployment (i.e. problems of unemployment), they immediately start talking about education and skills and there is very little macro-economic analysis of unemployment. This, in the view of the inaugural Commission, does not mean micro economic issues are unimportant and we shouldn’t find solutions to them – but we should actually be looking at a broad range of macro-economic solutions to our problems as well and considering alternative macro-economic policies. Arguably, a lot of decisions or macro-policy choices were, in the past, taken without adequately understanding the implication of choosing certain options. The choices of the macro policy sides were taken by government, prior to the global financial crisis, without teasing out what ideal

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of income to meet human and social needs

macro-economic policy should shape our economic environment. For instance the lack of discussion around what financialisation of the South African economy means is part of not understanding adequately the implications of South Africa’s macroeconomic choices. A lot of the discussion was framed within this notion of a developmental state; the reality of the matter is that South Africa does not as yet have a fully evolved developmental state. This remains a work in progress. The role of a developmental state is to restructure the economy to shape development to be in line with the aspirations of society. For economic transformation to be realised there is need for a developmental state and for this to happen we have to change the way we think about the nature of capitalism and the role of the state. There is a need to change the relations in society not a transition to socialism, but to move from financialised predatory capitalism towards a social democratic welfare type of capitalism and so become a developmental state that directs industrial development. The state must always play an integral and entrepreneurial role in directing how the economy grows. At the moment there is a somewhat unhealthy fixation on growth and how everything has to lead to economic growth; we need to start thinking about the type of growth we have, where in our economy growth is happening and whether in fact, that type of growth is good for South Africa and the ideals of transformation we have. In thinking about development, we must think about growth in productive assets and capabilities. The inaugural NPC tried to interrogate the concept of growth and as we hand over the baton to the next Commission, we encourage the next Commission to interrogate economic growth more deeply. The outgoing NPC knows where the growing demand is in South Africa and SADC and the question is how the NPC uses this information to support the right kind of enterprises and manage the performance of markets. Manufacturing and industrialisation is not a silver bullet for development but is a key part. Thus, the country needs to have productive sectors but it must be explicitly backed up by an assessment on the character and nature of that industrialisation.

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ECONOMIC TRANSFORMATION IN A DEVELOPMENTAL STATE

South Africa has championed infrastructure development as its contribution to revitalising economic growth not only within the country but also in the region. Our view is that the National Plan should not only be seen as a blueprint but rather also as a tool to encourage a discourse on what next must be done, over and above the effort of government to encourage this further growth. This is important in a democracy. The advantage of the Planning Commission is that the country was presented with an opportunity to think about what we mean by planning, what the model is and how this links to the various activities of departments within the spheres of government. To aspire to be a developmental state we accept that the one we are in is not yet there. By proclaiming to want to be a developmental state does not mean we are one. There is an assumption made to the effect that the state is integral to development. We assume the state is functional. This assumption is dangerous – it is for that reason that the NDP makes the assertions it does and implores South Africa to build a state that is capable of playing a developmental and transformative role. It is by having the public service immersed in the development agenda that, as a country, we can begin to make the strides we so desire to achieve. The pace with which we ensure that stateowned enterprises (SOEs) begin not only to understand their developmental mandate but ensure that there are clear lines of accountability and stable leadership – will indeed be what delivers results. The state does have the key levers through which it can achieve redistributed ownership as it currently owns most of the ‘commanding heights’. The state does have the authority to use the very same key levers to ensure that even as some large tracts of land are privately owned – its owners contribute to addressing the creation of employment targets necessary for the development of SA. Where there are opportunities for transfer of ownership through regulation, all that is required is a look at the circumstances through which it is more appropriate to transfer to public entities as opposed to private owners.

At present there has not been a national dialogue aimed at unpacking what we mean by economic transformation. Even more so, what is meant by radical economic transformation? Radical in South Africa usually means fast, although it can actually mean deep – changing the form of things and not just improving the old form. We must understand the fundamentals of the current economy and create a new fundamental. It is important for the country to establish for itself what the fundamentals it wants to see in SA are, and what it would take to move in that direction.

ON BLACK ECONOMIC EMPOWERMENT AND THE TRANSFORMATIVE POLICIES OF GOVERNMENT Mining initially played a critical role in the development of the South African economy. And the restrictions on capital outflow resulted in the industry diversifying its investments into other industries. The state was able to use its rights and powers to drive the direction of the economy. The kind of economic policies which South Africa has are in favour of mining and finance corporate organisations. There is a way in which BEE has also been structured by those corporations therefore the emerging black elite is limited in respect of how far it can expand to meaningfully exploit the opportunities that exist. The field of power decides what will be implemented and what will not; therefore issues of power must be confronted. There is therefore a legitimate expectation that the state begins to take a serious look at the instruments it has, such as its transformative policies. The state is furthermore expected to not be neutral on the matter of economic transformation and the next NPC ought to encourage the state in this regard. The impatience is building up in our society and we cannot talk about economic transformation in romantic terms or by tweaking BEE legislation and scorecards. Access to markets for entrepreneurs is key. Thus, if one were to look at most of the interventions over the years, most of them have been focused on the supply side though there has been little on the side of demand. The view of the Commission is that government must facilitate and trigger the right kind of behaviour. When we talk of transformation, we are not referring to a

Critics of the NDP have said that BEE has not worked in the way in which it was originally conceptualised and that for us to achieve a fair measure of success, we must try harder to implement the original ideals. The argument which is held by these critics is that current procurement regulations do not create a significant dent in meaningful empowerment. Secondly, pertaining to BEE scorecards, people and organisations are using scorecards as a compliance tool. How do we get SA and corporate SA to see scorecards as more than compliance tools. The

challenge remains on how best to deal with the momentum of transformation and the patience of society. The thesis that says economic transformation must be alienated from the need to deal with the triple challenges of unemployment, inequality and poverty, is a flawed one. In terms of economic transformation, there is no doubt that there is great need for it. Not only did the inaugural NPC spend a great deal of time undertaking a process of finding an expanded definition that begins to articulate what the desired end state should be, it also made proposals on what the comprehensive programme should be and how economic transformation should inform and be central to the work that is pursued by the next Commission – if we are to fully realise the ideals of the national Vision 2030.

“Entrepreneurship depends very much on conditions of the local environment. In an entrepreneurial ecosystem various actors – from universities, incubators, funders to government officials – work together to create a virtuous circle which will boost entrepreneurship.”

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nanny-state approach, but we are saying that government must play a bigger role as an enabler. In addition, economic transformation is not self-serving but an attempt to say that unless we do meaningful and different things, there will be high risk and we would as a country lament the time lost.

â&#x20AC;&#x153;Every family must have an acceptable standard of living within their reach. Not only should there be sufficient economic opportunities, but there must also be a supportive system of social protection and services.â&#x20AC;? 25 2 | VISION 2030, O UR FUT URE O UR PLA N

Miriam Altman

Founding member of the National Planning Commission Achieving full employment, decent work and sustainable livelihoods is the only way to improve living standards and ensure a dignified existence for all in the long run. This will be achieved by expanding the economy to absorb labour and improving the ability of South Africa’s people and institutions to respond to opportunities and challenges These are central tenets of the National Development Plan (NDP). Much has been said about the NDP. It is sometimes invoked or even villified, without any real reference to what is proposed – especially in relation to the economy and employment. The Plan was never meant to be fixed in stone. Instead, it is the general principles and insights that are important to frame an overall vision for application in policy and for action. In this article, I lay out some of the elements that informed our thinking.

AN ASPIRATION

The NDP sets out a goal of full employment by 2030. This would mean official unemployment falls to 6.5% and labour force participation rises from 54% to 65%, requiring an average annual GDP growth rate of 5% and 11 million net new jobs created over a 20-year period. Economic growth must accelerate and become more labour absorbing. Every family must have an acceptable standard of living within their reach. Not only should there be sufficient economic opportunities, but there must also be a supportive system of social protection and services. Achieving this requires

leadership, difficult political choices and effective implementation. We have to rebalance and realign key areas of government policy while reprioritising economic policy. The targets are only unrealistic if we accept the status quo

STRUCTURAL CHALLENGES IN REACHING FULL EMPLOYMENT

Extremely high unemployment is mostly addressed by indirect means. The only direct way of creating employment is through make-work schemes and public employment. Otherwise, employment is created as a result of rising demand for goods and services. This creates a challenge for a framing policy aimed at solving high unemployment, as it is difficult to determine direct causation. There is little doubt that structural change is needed to shift South Africa’s development path.

MINERAL ECONOMIES FACE PARTICULAR CONSTRAINTS

South Africa is a resource-intensive minerals economy. Almost half of exports are categorised as mining and mineralsrelated. At a domestic level, most economic activity happens in the services industry.

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THE NDP’S VISION FOR GROWTH AND EMPLOYMENT

Over four decades our per capita growth has largely stagnated. Some countries that had similar GDP per capita levels in 1975 have powered ahead: South Koreaâ&#x20AC;&#x2122;s GDP per capita rose by a factor of five; while Malaysia and Turkey doubled their GDP per capita. Resource curse: Economic development and employment transitions are never easy to achieve; but the challenge is magnified for minerals economies. These economies often find it difficult to diversify their industrial base and experience slower than average growth and high inequality. For these economies, exchange rates are often linked to commodity prices, resulting in

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volatility and an overvalued currency when resource prices trend upwards, creating a brake on non-commodity exports. Activities that are not traded benefit, such as retail, banking and housing construction; but when the boom is over, goods producers are left weakened. Some firms have adapted to this cycle by switching between local and export markets depending on domestic market conditions and the exchange rate. This enables business survival, but is not conducive to long-term planning and growth. Higher commodity prices buffer the economy and create the appearance of growth, leading governments and companies to become complacent and under-invest in

people and productivity growth. If these pitfalls are consciously avoided and if mineral endowments are used to facilitate mature cluster development, these resources can serve as a springboard for a new wave of industrialisation and services for domestic use and exports. Like many minerals exporters, we did not take advantage of the last commodity boom in this way. Not enough resources have been devoted to industrialisation and diversification in order for SA to break free of its resource curse characteristics. Middle income trap: Many economies that have achieved middle income status struggle to shift further upwards, with South

Shift to services: Job opportunities are increasingly located in the services sector for upper middle income and high income countries, with manufacturing accounting for a smaller share of employment. In minerals economies in particular, the manufacturing sector accounts for fewer jobs than in nonminerals exporters. In this, South Africa is no exception. Most jobs are found in domestic-oriented services (such as retail, personal services, security, domestic work and office cleaning), where productivity and wage growth is lower. Economic growth is often found in tradable sectors, including manufacturing, as they contribute to foreign exchange earnings and productivity growth. This trend may be even more pronounced in sub-Saharan Africa, given our history.

OVERCOMING OUR MINERALS LEGACY

South Africa’s industrial policy needs to address the structural challenges presented by the minerals economy. We need to provide a more competitive base for growth, with better use of our energy and water resources and more investment in transport and telecommunications. Lifting these constraints would have a powerful economywide stimulatory effect and would induce productivity improvements that stimulate employment. As a middle income economy, we cannot compete on cost. Investment in research and development and product development

is essential to our success in shifting the economy upwards. Expanding trade will be an essential ingredient in driving growth, especially if there is a growing share of dynamic products and substantial investment in domestic suppliers.

carbon intensive, draw resources away from labour intensive activities and are not a requirement of high value manufacturing.

Employment growth will come from labour

Nominally, we are an upper-middle-income economy, although as a result of our high inequality, most people do not have the experience of living in a middle income country.

intensive goods and services like hospitality, retail, business and social services. These jobs tend to be low paid and precarious. As a result, social protection assumes greater importance in improving quality of life and access to social mobility. This should be linked to the worker and not the workplace. In a context where job changing is common, our towns and cities must be responsive to changing locations of work with available rental stock and good, affordable public transport systems. Labour-matching services, transition support and easy access to retraining are critical to improve the chances of securing continuous work. Many people are low paid, relative to the cost of living. It is essential that we reduce the cost of food, transport, education, health and other basic services.

LEVERAGE MINERALS FOR UPSTREAM INDUSTRIALISATION

Industrial policy has focused on minerals beneficiation, or downstream production. However, very few minerals economies succeed meaningfully in these sectors, as a result of the exchange rate, domestic pricing and capabilities. We should put more emphasis on inputs industries, where we have or had capabilities and where our own companies stimulate demand. These inputs industries can be significant export opportunities. We advocate significant investment in upstream manufacturing and services linked to commodities. SA was a global leader in mining inputs such as equipment, engineering and chemicals; but this advantage has slipped away, as has our capability. There are contradictions that need to be resolved: we are losing ground in global markets for initial stage beneficiation (such as smelting). It is not strategic to sell raw material, with a vast price difference in chrome ore versus ferrochrome. However, these sectors are highly energy intensive,

ADDRESS STRUCTURAL CHALLENGES SPECIFIC TO SOUTH AFRICA

South Africa faces some specific structural challenges, such as high levels of inequality, poor circulation of goods and services, limited energy and water resources, deteriorating labour relations, access to markets and our distance from major global markets. Currently, the state of education, health and safety is not conducive to human development and it is virtually impossible for us to grow sustainably without greater investment in this area. Although the corporate landscape of SA has changed remarkably since 1994, it remains highly concentrated. This poses a barrier to business entry and expansion in key markets, which is critical to employment creation. We have to address anti-competitive behaviour, promote business entry and ensure that policies promote opportunities. Government can help reduce racial patterns of ownership of wealth and income, through procurement, licensing and other forms of economic rents, as can corporate procurement programmes. Marked disparity between urban and rural areas and within urban areas, has led to greater inequality and fewer opportunities for economic growth at a local level. In our favour, we have a growing lower middle class, scientific capability and institutions, fiscal resources and capabilities in dynamic sectors that are experiencing global growth. We are located in a high growth region and have a high enrolment in education. If properly managed, our strong minerals base could fuel growth.

SOCIAL AND LABOUR POLICY TO BE SHAPED TO SERVE CHANGING LABOUR MARKET CONDITIONS Most jobs will arise in services sectors; but these jobs are often precarious, temporary and poorly organised. Labour market matching can ensure contiguous

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Korea as one of the few exceptions. The average annual GDP growth rate for upper middle income countries was 3.6% between 1994 and 2008, the same as for South Africa. Middle income economies struggle to compete in labour-intensive sectors, as the cost structure is higher than for a low income economy. In order to move from middle to high income, countries must build companies with great products and processes, brands and/or distribution networks and encourage a culture of innovation. South Korea’s real competitive advantage came from its capabilities and products; but Malaysia, also a middle income country, was unable to realise the same ambition as it relied on multi-national investments that did not lead to substantial technology spillovers.

employment opportunities and provide access to social insurance, UIF and other benefits. Instead, labour market regulation has shifted in the opposite direction in order to ensure that workers on long-term temporary contracts are recognised as permanent and receiving fair and equal treatment. This may instead reduce the number of people employed and could make workers more vulnerable as there is no agency representing their interests.

MOVING TOWARDS FULL EMPLOYMENT

1. Increasing the supply of skilled labour The annual supply of highly skilled labour needs to double by 2018. Currently, the number of people who receive tertiary education and training increases by 1% per annum, or about 175 000 people. The availability of highly skilled workers enables firms to hire a complement of skilled and unskilled labour. This is currently a binding constraint. Either tertiary education institutions should dramatically expand their capacity, or â&#x20AC;&#x201C; additionally â&#x20AC;&#x201C; skilled labour must be actively attracted to SA from other countries. Our research showed that doubling the availability of high skill labour would double the employment impact of any other intervention. 2. Addressing macro-economic constraints The rate of investment to GDP needs to rise from 17% to 30% by 2030, fueled by a gradually expanding pool of domestic savings as well as foreign capital. Public sector capital investment should rise to 7% of GDP, consistent with 25 6 | VISION 2030, O UR FUT URE O UR PLA N

ratios during high growth phases of other countries. The macro-economic platform needs to be enabling and offer stability, with efforts to buffer producers from a volatile currency and improvements in the quality of public spending. Creating this enabling foundation is necessary, but not sufficient to guarantee growth and employment. The right incentives and support are also needed to take advantage of global, regional and domestic opportunities. 3. Strengthening labour market institutions The labour regime needs to be more conducive to employment growth. This requires significant commitment by the state, private sector and organised labour to improve human resource management and strengthen institutions aimed at dispute resolution and collective bargaining. The Department of Labour needs to strengthen its capability to enforce health and safety regulations and ensure adherence to sector minimum wages and standards for unorganised labour. 4. Expanding South Africaâ&#x20AC;&#x2122;s share of global goods and service markets By diversifying trade, we can reduce the strong link to commodity cycles and associated volatility in the exchange rate and earnings. This will cushion the economy from economic shocks, with sufficient reserves and fiscal space. In turn, a more stable environment for domestic-oriented firms, which create the majority of employment, will emerge. Moreover, stability in exports reduces the risk of a foreign debt trap, protecting

critical public spending programmes. We would secure larger foreign exchange earnings, enabling us to purchase inputs for further industrialisation and infrastructure investments. It would improve productivity and economic growth throughout the economy. Significantly, we could create up to 15% of new jobs directly as well as indirect employment by promoting linkages in domestic industries. In this we need to give more attention to areas of competitive advantage in inputs industries and in key service sectors. This also requires stronger economic and diplomatic support to exporters and South African investors. We need to build great South African companies. 5. Playing a greater role in regional development As the most developed economy, South Africa can stimulate growth in the region. Our own growth in part depends on this, but currently we do not play this leadership role. South African companies will be encouraged to participate in regional infrastructure projects but also in integrating regional supply chains to promote industrialisation. As a result, we can expect exports to rise, with a growing portion of non-mineral manufactures and services. A greater proportion of exports will be directed to emerging markets. Opportunities for increased trade and bilateral investment in Africa will develop. Offshore business services will be attracted from the UK, USA and India, fueling site developments

7. Promoting small business Some 90% of jobs will be created in small and expanding firms. The economy needs to be more enabling of business entry and expansion, with an eye to credit and market access. By 2030 the share of small and medium-sized firms in output must grow substantially. Public and private sector procurement programmes can improve access to opportunities for SMMEs. A simple commitment to timeous payment – in 15 or 30 days – would make a significant contribution to small business survival and growth.

6. Promoting employment in labour absorbing industries National resource allocation must support productive sectors with competitive advantage. To promote employment, these activities should have the following characteristics: a competitive advantage, global growth potential; and either direct or indirect job potential on a significant scale through linkages in the domestic economy. Promoting backward linkage industries into mining, back office IT-enabled services, or tourism would be consistent with this policy. The promotion of smelting in the 1990s however, contradicts these principles. Several high growth economies have benefited from growing trade in services – such as South Korea, Malaysia, India and the Philippines. SA’s rate of growth in service trade is about half what they have achieved. Examples of competitive niches for SA include construction, tourism, retail and IT-enabled services. Specifically, the plan proposes a target of 700 000 jobs created in IT-enabled services. While services are thought of as non-tradable, in fact there is evidence and potential to trade almost any service activity. It is a policy choice. To succeed, we need stronger economic diplomatic relations into key markets, development finance support, significant and targeted human resource development,

8. Promoting innovation While more resources have been directed towards innovation and R&D, programmes are still too small and unfocused to properly diversify South Africa’s economy. Much innovation comes from small business; but this sector has not received the support it needs. We need to ask whether investments in R&D and innovation are seen as complementary to or competing with poverty alleviation initiatives. The principles of the NDP are that innovation can drive job creation and reduce poverty. We will have to compete globally on the basis of our leading products and processes. 9. Agriculture While agriculture usually shrinks as economies develop, in SA there is still potential for job growth. Economic participation in rural areas is low and the percentage of rural employment in agriculture is very low by global standards. Rural employment could grow with reformed land tenure, support to farmers, expanded social services, higher agricultural output, mining social investment and tourism. 10. Public employment Government can be an important employer, especially in peri-urban and rural areas. But the current grading structure pushes departments to focus their resources on professionals and front line staff, who often don’t have sufficient support from porters, clerks and similar roles. They are then less able to perform their core function and there are fewer opportunities for semi-skilled and unskilled workers to access work, benefits

and labour representation. This is a highly contentious issue that needs to be addressed. Public employment programmes, like Community Works, are an essential element of any employment strategy. Up to two million opportunities should be created annually, mostly through community based services. These opportunities will be needed over the entire period. The NDP argues that public employment schemes should absorb two million workers in any one year. When economic growth is slow, the scale of these programmes needs to be larger; but in these times, the available fiscal resources are less. 11. Stronger institutions, better accountability South Africa has to be capable of implementing programmes and policies effectively and consistently, at least in the most critical priority areas. Accountability, combating corruption and professionalising the public service are critical. Stronger oversight of public entities is essential. South Africa will move beyond promises and targets and into implementation and real change. There must be a change in mind-set across all sectors of society – public, private and civil society.

OUR COMBINED RESPONSIBILITIES

Looking ahead, now that the term of the first National Planning Commission has come to an end; I believe there are some areas that really need to be driven harder for us to achieve the goals of the NDP. First and foremost is building a shared and authentic vision that the nation can coalesce around. The plan does offer a vision; but far more needs to be done to gain on-the-ground engagement so that community voices are heard. To be authentic, stakeholders must be able to participate in its coming to fruition. Second, is to implement proposals in respect of governance, accountability and the strength of institutions, with special focus on energy, transport, water, labour relations and education.

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supportive trade arrangements, targeted innovation funds; and competitive telecommunications services. More than 70% of the jobs will be created in domesticoriented activities and in the services sector.

R E P O R T O N V I S I O N 2 0 3 0 SUMMIT by Fiona Wakelin

At Emperors Palace on 17 and 18 June 2015, senior members of government â&#x20AC;&#x201C; led by Minister in the Presidency, Jeff Radebe â&#x20AC;&#x201C; met with leaders of business and civil society to focus on what South Africans can do to make the National Development Plan a reality. This was the first time that a gathering of this nature had taken place where government, business and civil society representatives convened in such numbers to talk about the implementation of the NDP. This seminal Summit, endorsed by the National Planning Commission, unpacked the NDP from both public and private perspectives, with Minister Jeff Radebe giving the keynote address.

U N PA C K I N G T H E N AT I O N A L D E V E L O P M E N T P L A N F R O M P U B L I C A N D P R I VAT E P E R S P E C T I V E S

F E AT U R E | R E P O R T O N V I S I O N 2 0 3 0 S U M M I T

V I S I O N 2 0 3 0 SUMMIT TIME FOR JOINT ACTION ON NDP

Topco Media associate publisher and editor Ryland Fisher opened the Summit: “It is time for us to move the NDP from being a plan to being something that gets implemented. There are clear deliverables in the NDP and those deliverables can become more of a reality if government and the private sector work together to achieve them.” – Ryland Fisher Topco Media CEO Ralf Fletcher welcomed the delegates, the speakers and the dignitaries.

PRASA’s then-CEO Tsepho Montana spoke on delivering public value – an NDP imperative – and outlined the strides that have been made in the rail transport sector.

IN HIS OFFICIAL OPENING KEYNOTE ADDRESS, HONOURABLE MINISTER IN THE PRESIDENCY, JEFF RADEBE

thanked Topco Media and congratulated them on working together with the National Planning Commission Secretariat to make the Summit a reality. He emphasised that the National Development Plan affirmed the correctness of the government’s decision to invest in the expansion and maintenance of economic infrastructure – by the end of 2014 government had spent R1-trillion in developing the much needed infrastructure in sectors such as energy, water, sanitation, rail, road-based public transport and hospital revitalisation, among others. “The National Development Plan calls on all South Africans to be part of a virtuous circle where working together means understanding that we are each playing an important role in the development of this country.”

“It calls on us to take measures to reduce income inequality and raise the income share of the bottom 40% income earners. This requires all of us to discuss and reach an agreement on the kind of economic order we want and the trade-offs and sacrifices we require to achieve it.” – Minister Jeff Radebe

THE MINISTER’S SPEECH WAS FOLLOWED BY AN EXTENDED QUESTION AND ANSWER SESSION

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PANELLISTS: • • • •

Khulekani Mathe, Secretary of the NPC B lessing Manale, Executive Head: Public Affairs & Mayoral Spokesperson, City of Tshwane Tsepho “Lucky” Montana, Group CEO, PRASA Tsietsi Mokhele, CEO, SAMSA

Ryland Fisher, Commander Tsietsi Mokhele, Tsepho Lucky Montana, Khulekani Mathe, Blessing Manale

THE FAST TRACK NETWORKING SESSION WAS A HUGE SUCCESS giving all delegates the opportunity to make connections, discuss initiatives, exchange business cards and establish networks.

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Ryland Fisher then chaired an interactive panel discussion on how all South Africans can contribute to making the NDP a reality.

THE AFTERNOON OF DAY 1 WAS A HIVE OF ACTIVITY WITH FIVE OPTIONS FOR ATTENDANCE OF BREAKAWAY SESSIONS ACROSS FIVE SECTORS: HEALTHCARE, LOCAL GOVERNMENT, TRANSPORT, FOOD SECURITY AND MANUFACTURING.

DAY 1 - 1 7 J U N E - B R E A K AWAY S E S S I O N S HEALTHCARE Topic: Improved access to quality healthcare by low income earners Session Sponsor: Sechaba

LOCAL GOVERNMENT TOPIC: Procurement laws, supply chain and municipal tender processes Session sponsor: MNS Attorneys

TRANSPORT Topic: Delivering public value: Rail as the backbone of public transport Session sponsor: PRASA

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Key takeaway messages from the healthcare breakaway session 1. A standardised and simplified online database is key. 2. T he PFMA and MFMA need to be revised as a matter of urgency to limit the tender process to 30 days. 3. T he e-tendering system should be structured to offer bidders real-time results on compliance. 4. Tender processing, skills developments and tender process audits must allow yearly re-certification to ensure that compliance standards are maintained.

Key takeaway messages from the local government breakaway session 1. A standardised and simplified online database is key. 2. T he PFMA and MFMA need to be revised as a matter of urgency to limit the tender process to 30 days. 3. T he e-tendering system should be structured to offer bidders real-time results on compliance. 4. Tender processing, skills developments and tender process audits must allow yearly re-certification to ensure that compliance standards are maintained.

Key takeaway messages from the transport breakaway session 1. I n order to encourage people to use trains, a sophisticated feeder system will have to be implemented, which will take time. 2. A ll modes of transport must be embraced in the new structure. 3. P ublic transport should be seen as a means to making a difference in the publicâ&#x20AC;&#x2122;s lives rather than as a profitable organisation. 4. A n integrated transport system is crucial. Non-motorised, more environmentally sustainable transport should also be taken into account.

Topic: Creating public/private partnerships to improve food security in South Africa Session Sponsor: Tiger Brands

MANUFACTURING Topic: Best Practice â&#x20AC;&#x201C; Tools in manufacturing competitiveness: The case of Workplace Challenge Session sponsor: Productivity SA

Key takeaway messages from the food security breakaway session 1. F ood security means that all people at all times have physical and economic access to adequate amounts of nutritious, safe foods which are produced in an environmentally sustainable and socially just manner; and that people are able to make informed decisions about their food choices. 2. T ime must be spent with communities to gain an understanding of social issues. 3. E ducation and access to information is required across the board. 4. G lobal food broking undermines sustainability.

Key takeaway messages from the manufacturing breakaway session 1. S outh Africa does not have generic problems. South Africa has market efficiencies, market size and reasonably good infrastructure. The three requirements that are essential to be linked for a highly productive manufacturing sector are training, industry and innovation. 2. E leven FET Colleges have been acquired from DHET by industry and dedicated to be used as pilot sites to produce skills that are required by industry. 3. T he first maritime university campus will be opened in the latter half of 2015 which will serve as a centre of excellence, bringing together diverse faculties. 4. I n 2015 a job summit will be held, sponsored by the Department of Labour and the International Labour Organisation.

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FOOD SECURITY

DAY 2 - 1 8 J U N E REGISTRATION AND REFRESHMENTS – Sponsored by Civilian Secretariat of Police

Stephen Hanival, chief economist dti (on behalf of Mzwandile Masina, Deputy Minister of the Department of Trade and Industry) delivered the opening keynote address titled: The importance of fixing the economy in order to realise the vision of the NDP. The talk focused on four key themes: what is wrong with the economy; the trust deficit between government and the private sector; industrialisation; and local procurement – and concluded with a to-do list for the economy • A focus on agriculture • Reindustrialisation • Public infrastructure • Oceans economy • Electricity

Stephen Hanival

ALICE PUOANE Acting CEO, Brand SA spoke about the importance of the NDP initiatives for the youth of the country. “The Plan envisions a South Africa where everyone feels free yet bound to others; where everyone embraces their full potential; a country where opportunity is determined not by birth, but by ability, education and hard work.”

XOLANI QUBEKA Secretary General, Black Business Council presented a PowerPoint presentation: Placing SMMEs at the epicentre of Economic Growth and Economic Development, which looked at BEE, SMMEs, the NDP and unpacked the Wal-Mart Foreign Direct Investment case study. “Economic transformation means directing new opportunities and investments towards the marginalised to drive the acceleration of a new middle class. This requires a deliberate distribution of new opportunities to new entrants and fostering new wealth creation.”

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RIAH PHIYEGA

TOM MOYANE

National Police Commissioner, SAPS, unpacked the strategies within SAPS to professionalise the police service and ensure the establishment of effective community outreach programmes.

Commissioner, SARS, spoke on how we can make the NDP a reality. In terms of building a capable and developmental state, SARS has adopted a strategic shift from an isolated departmental view of efficiency to a ‘whole of government’ view, which sees SARS assisting in the enhancement of value chain activities to build a chain of institutional respectability in pursuit of service delivery excellence.

“The police service is a wellresourced professional institution staffed with highly skilled officers who value their work, serve the community, safeguard lives and property without discrimination, protect the peaceful marches against violence and respect the rights of all to equality and justice.”

“SARS is committed to continuous support of governmental efforts to increase employment opportunities, improve conditions for small businesses and help improve government performance.”

Session sponsor: Procter & Gamble

Key takeaway messages from the education and skills development breakaway session 1. P arents should be more involved in their childrenâ&#x20AC;&#x2122;s schools, should assist in fundraising efforts and school maintenance. 2. C ollaboration between the various stakeholders is key. 3. The quality of education is a concern. 4. S tudents are trained in TVET colleges and not absorbed by industry. This indicates a mismatch between the skills that are required and the skills that are provided by the education system.

AGRICULTURE AND RURAL DEVELOPMENT

Key takeaway messages from the agriculture and rural development breakaway session

Topic: Unlocking Agriculture and Rural Development through partnerships

Agriculture offers opportunities for manufacturing and labour. The NDP sought opportunities targeting and exploiting these prospects in Chapter 6 of the NDP. It was decided that focus must be given to:

Session Sponsor: Tongaat Hulett

SECURITY Topic: Ensuring that South Africans are, and feel, safe Session Sponsor: SAPS

1. A shift from large to small-scale farming, in aid of bigger opportunities requiring support in the country. 2. A griculture as a business falls through the cracks because of non-streamlined links to a variety of stakeholders such as the Department of Agriculture and Rural Development, the Department of Trade and Industry and the Department of Economic Development, as all have an agricultural portfolio. 3. Water and irrigation: Area planning allows efficiency in the use of water. 4. Financing is a huge challenge.

Key takeaway messages from the security breakaway session 1. 2. 3. 4. 5. 6. 7. 8. 9.

Safety audits must be done in all communities. All schools should have learner safety plans. The police service must be de-militarised. T here needs to be increased community participation in crime prevention and safety initiatives. T he National Rural Safety Strategy Plan must be implemented in high risk areas involving all role players and stakeholders. S afe places must be secured for inner city youth. A judiciary-led independent court administration must be developed. C lear criteria for appointment of judges must be put in place. C ompulsory community service must be extended to all law graduates.

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EDUCATION AND SKILLS DEVELOPMENT

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GOVERNMENT’S INVESTMENT IN INFRASTRUCTURE DEVELOPMENT TO GROW THE ECONOMY: “Since 2009, we have been allocating more than R800-billion in the rolling MediumTerm Expenditure Framework (MTEF) towards infrastructure.” – Minister Jeff Radebe, speaking on “Our future, our plan”.

THE IMPORTANCE OF INDUSTRIALISATION FOR SOUTH AFRICA’S FUTURE GROWTH: “There is no viable alternative for South Africa other than the investment in industrialisation – we cannot depend on the mining sector and commodity prices for economic growth – we need to build the manufacturing (secondary) and agriculture (primary) sectors.” – Stephen Hanival (chief economist: Economic Research and Policy Coordination, office of the Director General, dti), speaking on “The importance of fixing the economy”.

THE SUCCESS OF THE NDP DEPENDS ON PUBLIC/PRIVATE PARTNERSHIPS: “If we work together we can certainly achieve far greater success. It is important that even if we are unhappy about something that the government has done or failed to do in our view, we should still work together, understanding that we are building a future many times better than the present.” – Minister Jeff Radebe, speaking on “Our future, our plan”.

BUILDING A DEVELOPMENTAL STATE: “The NDP is an integral part of developing a developmental state – it provides a blueprint of the society we would like to achieve, but does not provide all the answers – we need appropriate fiscal and labour policies for it to happen.” – Tsepho “Lucky” Montana (group CEO, PRASA), speaking on “Delivering public value – an NDP imperative”.

TAKING SMMES TO THE EPI-CENTRE OF ECONOMIC GROWTH AND DEVELOPMENT: “The business objectives of Vision 2030 are to create and develop 3 000 sustainable businesses and create 50 000 new jobs… economic transformation means focusing on new opportunities and investing significantly in the marginalised to drive the acceleration of a new middle class and foster new wealth creation.” – Xolani Qubeka (Secretary General, Black Business Council).

SOUTH AFRICA IN AFRICA: “This Summit takes place hot on the heels of the African Union Heads of State Summit which discussed a number of programmes to propel the continent towards the goals set out in the continental blueprint, Agenda 2063. Central to the actions needed to advance towards Agenda 2063 is to significantly increase investment in connective and energy infrastructure to enable the growth of the economies of the continent through greater industrialisation.” – Minister Jeff Radebe, speaking on “Our future, our plan”.

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KEY THEMES OF THE SUMMIT

ON 17 SEPTEMBER 2015

PRESIDENT ZUMA

ANNOUNCED THE NEW MEMBERS OF THE

NATIONAL PLANNING COMMISSION President Jacob Zuma is pleased to announce the appointment of new members of the National Planning Commission in the Depar tment of Planning, Monitoring and Evaluation, for a period of five years.

THE PRESIDENT HAS APPOINTED THE FOLLOWING MEMBERS:

1. MR JEFFREY THAMSANQA RADEBE

Minister in the Presidency for Planning, Monitoring and Evaluation as Chairperson.

NEW HEAD FOR NPC SECRETARIAT The President has appointed Tshediso Matona as the new Head of the National Planning Commission Secretariat in the Department of Planning, Monitoring and Evaluation. Mr Matona has nearly 10 years of experience in trade policy practice and holds degrees in Economics from the Universities of Cape Town (South Africa) and East Anglia (UK); and certificates in Trade Law and Management in Government from Maastricht University (Netherlands) and Harvard University’s JF Kennedy School of Government (USA).

2. PROFESSOR MALEGAPURU WILLIAM MAKGOBA

3. DR MIRIAM ALTMAN

4. M S SUSAN MURIEL BROUCKAERT

Higher Education and Health

Economics

Local Government

Professor Makgoba is the former Vice-Chancellor and Principal of the University of KwaZulu-Natal

Dr Altman is the Head of Strategy at Telkom (SOC) Ltd.

(SUE BANNISTER)

Ms Bannister is a partner at City Insight Pty Ltd.

and an internationally recognised molecular immunologist.

5. DR NTUTHUKO MELUSI BHENGU

6. MR THEMBA THOMAS CYRIL DLAMINI

7. MS TESSA DOOMS

Public Health

Development Economics

Youth Development

Dr Bhengu has been a medical practitioner and

Mr Dlamini is the Managing Director of the Black

Ms Dooms is a Director at Youth Lab.

anaesthetist since 1991.

Management Forum.

8. MR FRANK KENNAN DUTTON

9. MS TASNEEM ESSOP

10. P ROFESSOR MOHAMMAD KARAAN

Policing and Investigations

Environmental Affairs

Agriculture and Food Security

Mr Dutton is an International Policing and

Ms Tasneem Essop is the Head of Strategy

Professor Karaan is the Dean of the Faculty of

Investigations expert and provides expertise on a

and Advocacy for the International World Wide

Agri-Sciences at the University of Stellenbosch.

consultancy basis internationally as well as locally.

Fund for Nature’s Global Climate and Energy Initiative. She is the Head of Delegation at the United Nations Framework Convention on Climate Change sessions.

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12. M R JOHANNES PETRUS LANDMAN

13. DR VUYOKAZI FELICITY MAHLATI

Business

Scenario Planning

Development Planning

Mr Landman is the founder of JP Landman

Dr Mahlati is a public policy and

and Associates. His focus areas are political

development planning specialist.

Ms Kweyama is the Chief Executive Officer of Business Unity South Africa (BUSA).

economy, labour, demography and social capital.

14. A DVOCATE LEKOLOTA ABRAM MAKUA

15. MR ELIAS MASILELA

16. D R EDMUND THAMSANQA MAZWAI

Labour Law

Economic Policy and Analysis

Communication and Small Business

Advocate Makua was admitted as advocate in 2009 and is a member of the

Mr Masilela is a Non-executive Chairperson of DNA Economics.

Development Dr Mazwai is a resident executive at the Wits Business School and serves on the Black

Johannesburg Society of Advocates and

Business Council (BBC).

Polokwane Society of Advocates. 17. MS POPPY AUDREY MOCUMI

18. P ROFESSOR KHOLEKA CONSTANCE MOLOI

19. DR PULANE ELSIE MOLOKWANE

Disability Sector

Higher Education and Training

Science and Technology

Ms Mocumi is the National Chairperson of the

Professor Moloi is Professor of Education at the

Dr Molokwane is the founder and Managing

Disabled People of South Africa (DPSA).

Vaal University of Technology.

Director of POB Environmental Solutions.

20. MS CHRISTINA NOMDO

21. MR THANYANI RAMATSEA

22. MR DENNIS JABULANI SITHOLE

Children’s Rights

Infrastructure Development

Arts, Culture and Heritage

Ms Nomdo is the leader of Resources Aimed

Mr Ramatsea is a Technical Director at MJT

at the Prevention of Child Abuse and Neglect

Consulting Engineers.

Mr Sithole is a former lecturer in history at the University of KwaZulu-Natal, Pietermaritzburg campus and the former KwaZulu-Natal.

(RAPCAN).

Provincial Coordinator of the Liberation Heritage Route for the National Heritage Council (NHC).

23. PROFESSOR VIVIENNE TAYLOR

24. MR JARRAD GREGORY WRIGHT

25. D R WELCOME SIPHAMANDLA ZONDI

Social Development

Energy

International Relations and Foreign Policy

Professor Taylor currently teaches social

Mr Wright is a Senior Consultant and Acting

Dr Zondi is the director of the Institute for

policy, development planning and social and

Regional Manager at Energy Exemplar

Global Dialogue (IGD).

economic development in the Department

(Africa) Pty Ltd.

of Social Development at the University of Cape Town. The mandate of the new commission will include, among others, the following responsibilities: • T o promote and advance the implementation of the National Development Plan across different sectors of society • T o undertake detailed planning in a selected number of sectors to be determined from time to time • T o conduct regular engagements with various sectors of society on all matters pertaining to the long-term development of the country • T o facilitate stakeholder engagements aimed at forging a social

compact towards more effective implementation of the National Development Plan • T o take a cross-cutting view, undertake research into long-term trends, analyse implementation of short to medium term plans with a view to recommend improvements to Government as well as produce reports to inform policy and planning • T o contribute to development of international partnerships and networks on national planning

T h e P re s i d e n t h a s c o n g r a t u l a t e d a l l t h e n e w m e m b e r s . “ We l o o k f o r w a rd t o w o r k i n g w i t h t h e m t o t a k e t h i s i m p o r t a n t p ro c e s s f o r w a rd o f i m p l e m e n t i n g t h e N D P a n d a l s o e x p l o r i n g n e w a v e n u e s f o r s o c i o e c o n o m i c d e v e l o p m e n t i n o u r c o u n t r y a s w e i m p l e m e n t t h e N D P. ” – T h e P re s i d e n c y V I S I O N 2 0 3 0, OUR F UTURE OUR P L AN | 2 6 9

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11. M S KHANYISILE THANDIWE KWEYAMA

BU S I N E SS CA R D S Amathole District Municipality

ABSA Maria Ramos

Chief Executive Of ficer 7th Floor B a r c l a y s To w e r s W e s t 1 5 Tr o y e S t r e e t Johannesburg Te l : ( + 2 7 1 1 ) 3 5 0 4 0 0 0 Email: absa@absa.co.za W e b s i t e : w w w. a b s a . c o . z a

Arms Audit

C l l r N o m a s i k i z i Ko n z a

Emmanuel Njamma

Wa v e r l e y O f f i c e P a r k 3 3 3 P h i l i p F ra m e Chiselhurst 5247 Te l : 0 4 3 7 0 1 4 0 0 0 E m a i l : i n f o @ a m a t h o l e . g o v. z a We b s i t e : w w w. a m a t h o l e . g o v. z a

St Davids Park Block 9 1st Floor Parktown Te l : ( + 2 7 1 1 ) 4 8 4 1 2 3 5 Email: info@armsaudit.co.za W e b s i t e : w w w. a r m s a u d i t . c o . z a

Executive Mayor

Buffalo City Municipality

Chief Executive Of ficer

College of Cape Town L o u i s v a n N i e ke r k

Alfred Mtsi

Principal & Chief Executive Of ficer

Executive Mayor

334 Albert Road Salt River C a p e To w n Te l : 0 8 6 0 1 0 3 6 8 2 E ma il: in fo @ c c t .e d u .z a We b s ite :w w w.c c t .e d u .z a

The Mayor’s Of fice City Hall O x f o rd S t re e t East London Te l : 0 4 3 7 0 5 1 7 4 9 E m a i l : c u s t o m e r c a r e @ b u f f a l o c i t y. g o v. z a We b s i t e : w w w. b u f f a l o c i t y m e t r o . g o v. z a

Conlog Solutions

Department of Environmental Affairs D u d l ey M i l l e r

Edna Molewa

G e n e ra l M a n a g e r

Minis ter

270 Felix Dlamini Road Overpor t Durban KwaZulu-N atal, 4001 Te l : ( + 2 7 3 1 ) 2 6 8 1 1 1 1 Email:info@conlog.co.za We b s i t e : w w w. c o n l o g . c o . z a

Env iro n men t H o use 473 S teve Biko Arc a dia Preto ria 0083 Te l : 0 8 6 1 1 1 2 4 6 8 E m a i l : c a l l c e n t r e @ e n v i r o n m e n t . g o v. z a W e b s i t e : w w w. e n v i r o n m e n t . g o v. z a

Department of Trade and Industry

Department of Public Works Th u las Nxe s i

Rob Davies

Depar tment o f Pub l i c Wor ks 256, Madiba Sre et P re t o r i a 001 Te l : ( + 2 7 1 2 ) 4 0 6 1 0 0 0 We b s i t e : w w w. p u b l i c w o r k s . g o v. z a

The dti 7 7 Mein tj ies S treet Sunnyside Preto ria Gauteng, 0002 Te l : 0 8 6 1 8 4 3 3 8 4 E m a i l : c o n t a c t u s @ t h e d t i . g o v. z a W e b s i t e : w w w. t h e d t i . g o v. z a

Minis ter

Department of Water and Sanitation

ECSA C y r i l Vu ya n i G a m e d e

N o m v u l a M o ko n ya n e Minis ter

1 8 5 F ra n c i s B a a r d S t r e e t P re t o r i a Te l : ( + 2 7 1 2 ) 3 3 6 8 3 8 7 We b s i t e : w w w. d w a . g o v. z a

Presiden t

1 s t F l o o r, W a t e r v i e w C o r n e r B u i l d i n g 2 E r n e s t O p p e n h e i m e r Av e n u e Bruma Lake Of fice Park, Bruma,Johannesburg, 2198 Te l : ( + 2 7 ) 1 1 6 0 7 9 5 0 0 Email: engineer@ecsa.co.za W e b s i t e : w w w. e c s a . c o . z a

Nombulelo Nxesi

S i p h o N ko s i

Chief Executive Of ficer

24 Johnson Road,

Roger Dyason Road Pretoria Wes t 0183 Te l : ( + 2 7 1 2 ) 3 0 7 5 0 0 0 W e b s i t e : w w w. e x x a r o . c o m

River woods Of fice Park, B e d f o rd v i e w, J o h a n n e s b u r g Te l : ( + 2 7 1 1 ) 3 7 2 3 3 0 0 Email: info@etdpseta.org.za We b s i t e : w w w. e t d p s e t a . o r g . z a

Free State Office of the Premier

General Cable

G e o f f r ey Q h e n

Gary Bateman

Chief Executive Of ficer

4 t h f l o o r, L e b o h a n g B u i l d i n g C n r S t A n d re w & M a r kg r a a f S t r e e t s Bloemfontein Te l : ( + 2 7 5 1 ) 4 0 5 5 9 4 2 E m a i l : p re m i e r @ f s p re m i e r. g o v. z a We b s i t e : w w w. p re m i e r. f s . g o v. z a

Industrial Development Corporation

55 An gus Cresc en t Lo n gmea dow Business Es tate Johannesburg 1610 Te l : ( + 2 7 1 1 ) 4 5 7 8 0 0 0 Em a il: in fo @gen era lc a ble.c o m W e b s i t e : w w w. g e n e r a l c a b l e . c o m

JB Marks Education Trust J a ko M o kg o s i

Gary Bateman

Principal Officer

Chief Executive Of ficer

4th Floor Alris Building 3 R i s s ik S treet Johannesburg, 2001 Te l : ( + 2 7 1 1 ) 4 9 2 0 6 0 1 Email: Jako@jbmarksedutrus t.co.za W e b s i t e : w w w. j b m a r k s e d u t r u s t . c o . z a

1 9 F re d m a n D r i v e Sandown 1610 Te l : 0 8 6 0 6 9 3 8 8 8 E m a i l : c a l l c e n t re @ i d c . c o . z a We b s i t e : w w w. i d c . c o . z a

Kwa-Zulu Natal Office of the Premier

Ledwaba Mazwai Attorneys Metja Ledwaba & Lungile Mazwai

Dr Maruma Ramasia Chief Executive Of ficer

Founding Par tners

1 s t F l o o r, B l o c k G Pinmill Farm 1 6 4 Ka t h e r i n e S t re e t Sandton 2148 Te l : 0 8 6 0 0 0 2 1 0 8 Websi te: w w w.kzn prem i e r. go. za

Limpopo Office of the Premier

Ledwaba Mazwai Building 141 Bosh o f f S treet Nieuw Muckleneuk, Pretoria Te l : + 2 7 1 2 3 4 6 7 3 1 3 G e n e r a l e m a i l : m l m @ l a w. c o . z a W e b s i t e : w w w. l e d w a b a m a z w a i . c o . z a

Lion of Africa

Ch u pu S tanley Mat h abat h a

Fred Rober tson

4 0 H a n s Va n R e n s b u r g S t Polokwane 0700 Te l : ( + 2 7 1 5 ) 2 8 7 6 0 0 0 We b s i t e : w w w. l i m p o p o . g o v. z a

1 s t F l o o r, B l o c k D T he Bo uleva rd Of fic e Pa rk Se ar l e S treet Wood s to c k C a p e To w n , 7 9 2 5 Te l : ( + 2 7 2 1 ) 4 6 1 8 2 3 3 Email: info@lionlife.co.za W e b s i t e : w w w. l i o n l i f e . c o . z a

P re m i e r

MerSeta

Principal Officer

NDA Dr Raymond Patel

Chief Executive Of ficer m e r S E TA H o u s e 9 5 7 t h Av e n u e , C n r R u s t e n b u r g R o a d Melville Johannesburg Te l : ( + 2 7 1 1 ) 2 1 9 3 0 0 0 Email: merseta@thehotline.co.za We b s i t e : w w w. m e r s e t a . o r g . z a

Vu ye l w a N h l a p o

Chief Executive Of ficer 26 We l l i n gto n Ro a d, Parktown 2193 Email: info@nda.org.za W e b s i t e : w w w. n d a . o r g . z a

BUSINESS CARDS

Exxaro

ETDP Seta

National Lotteries Board

National Library of SA Prof Rocky MD Ralebipi-Simela

Thabang Charlotte Mampane

228 Johannes Ramokhoas e ( Proe s ) S t re et P re t o r i a 0001 Te l : ( + 2 7 1 2 ) 4 0 1 9 7 0 0 Email: infodesk@nlsa.ac.za We b s i t e : w w w. n l s a . a c . z a

Bl oc k D, H a tfield G a rden s 333 G ro sven o r S treet Hatfield Preto ria , 0 0 8 3 Te l : ( + 2 7 1 2 ) 4 3 2 1 3 0 0 Email:nldtf@nlcsa.org.za W e b s i t e : w w w. n l c s a . o r g . z a

CEO and N ational Librar i an

Chief Executive Of ficer

Public Investment Corporation

PRASA

Dr Daniel Matjila

Umjantshi House

Chief Executive Of ficer

3 0 Wo l m a ra n s S t r e e t B ra a m f o n t e i n , J o h a n n e s b u r g Phone: (+27 11) 773 1700 We b s i t e : w w w. p r a s a . c o m / c r e s Email:communi q uĂŠ @ p ras a. com

Block C , River walk Of fice Park 41 Matro o sberg Ro a d (cor ner G a r sfo n tein a n d Ma tro o sberg roads ), Ash lea G a rden s Exten sio n 6 . Me nl o Pa rk, Preto ria 001 Te l : ( + 2 7 1 2 ) 7 4 2 3 4 0 0 E m a i l : i n f o @ p i c . g o v. z a W e b s i t e : w w w. p i c . g o v. z a

Richards Bay Industrial Development Zone

SAMSA

Pumi Motsoahae

Tsietsi Mokhele

150 A Pioneer Road C a p t a i n s Wa l k B u i l d i n g , Tu z i G a z i Wa t e r f ro n t R i c h a rd s B a y, 3 9 0 0 Te l : 0 3 5 7 8 8 0 5 7 1 / 3 / 4 0 2 1 6 8 3 2 4 2 5 Emai l : i nfo@rbi d z.c o. za Websi te: w w w.rbi d z. c o. za

146 Lunnon Road Cnr Jan Shoba and Lunnon Road Hi l l cres t 0183 Te l : ( + 2 7 1 2 ) 3 6 6 2 6 0 0 W e b s i t e : w w w. s a m s a . o r g . z a

Chief Executive Of ficer

Sasol LTD

SITA David Constable

Chief Executive Of ficer and Pre s i de nt

Dr Setumo Mohapi

Chief Executive Of ficer

1 S t u rd e e Av e n u e Rosebank Johannesburg 2196 Te l : ( + 2 7 1 1 ) 4 4 1 3 1 1 1 We b s i t e : w w w. s a s o l . c o . z a

South African Police Service

18 5 Fra n c is B a a rd S treet, P reto ria 0001 Te l : ( + 2 7 1 2 ) 3 3 6 8 3 8 7 W e b s i t e : w w w. s i t a . o r g . z a

Toyota SA

N a t h i N h l e ko

Dr Johan van Zyl

SAPS Head Office Ko e d o e B u i l d i n g 2 3 6 P re t o r i o u s S t r e e t P re t o r i a 001 Te l : ( + 2 7 1 2 ) 3 9 3 1 0 0 0 We b s i t e : w w w. s a p s . g o v. z a

S t a n d 1, E a s t e r n S e r v i c e R o a d Wesc o Pa rk Sandton 2012 Te l : ( + 2 7 1 1 ) 8 0 9 9 1 1 1 W e b s i t e : w w w. t o y o t a . c o . z a

Minis ter of Police

Tulen Industries

Chief Executive Of ficer

UIF Vu yo N k w a l i

Chief Executive Of ficer 209 Ashwood Mews Parklands Main Rd Parklands Email: tulenwaks@gmail.com C a p e To w n Te l : ( + 2 7 2 1 ) 5 5 6 9 1 7 2 Email: info@tulen.co.za We b s i t e : w w w. t u l e n . c o . z a

B o a s S e r u we Commissioner

Laboria House 215 Fra n c is B a a rd S treet Preto ria 0083 Te l : ( + 2 7 1 2 ) 3 0 9 4 0 0 0 W e b s i t e : w w w. l a b o u r. g o v. z a

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