Green Economy Journal Issue 40

Economy 

G r e e n 

journal 

Issue 40 

R29.00 incl VAT 

9 772410 645003 

11025 

COVID and ENERGY: Will Covid induced 

economic crisis derail renewables? 

COVID and FOOD: How secure is our food? 

COVID and the ECONOMY: Can sustainable 

infrastructure investment drive the recovery? 

COVID and WASTE: The plight of the waste pickers

THA 11-2020 

Energy efficiency 

in practice works 

SA Industrial Energy Efficiency Project 

Meadow Feeds in the Western Cape, continues to save energy year 

on year through the interventions of the South African Industrial Energy 

Efficiency (IEE) Project. 

This company is a leader in specialised diets and custom feed mixes for the 

poultry, dairy, ostrich and pig industries. The Paarl factory produces some 

360 000 tons per year. It forms part of the Astral Foods group of companies, 

one of the largest integrated poultry producers in South Africa. 

Meadow Feeds achieved significant savings by instilling a culture of energy 

saving in the company through the following behaviour changes: 

• Energy efficiency as a standing agenda item in productivity meetings; 

• Operators received regular training on various elements of the 

production process; 

• The induction programme for new staff includes energy efficiency 

content; and, 

• It is a procurement requirement to buy only energy efficient equipment. 

Energy saving interventions included the replacement of mercury vapour 

lights with LEDs, motion detectors for air-conditioning units, solar hot water, 

the replacement of blow lines with elevators, installation of a borehole water 

filtration system for boilers, heat recovery from air compressors, variable 

speed drives on pelletiser cooler fans and the 250kW grinder 3001 system. 

A significant lesson was how energy could be saved in the feed pelletising 

machines by replacing the dies when energy consumption increased. The 

wear of the dies had a significant effect on the energy consumption of these 

machines. Meadow Feeds was able to make significant capital savings by 

refurbishing the dies, rather than simply replacing them – refurbishing is a 

third of the cost of replacing. 

ENERGY SAVINGS 

3.10% 

Overall energy consumption saved 

412 342 kWh 

Energy saved 

ZAR 346 367 

Money saved 

429.87 tCO2e 

GHG mitigated 

ZAR 309 800 

Investment made 

4 Delegates 

Trained in EnMS 

2 Delegates 

Expert level Training 

To participate in the IEE Project or access some of the free online tools, contact ncpc@csir.co.za 

Download the full case study, and others, at www.ncpc.co.za / www.ieeproject.co.za. 

The IEE Project is implemented by a partnership between the United Nations Industrial Development Organization 

(UNIDO); the National Cleaner Production Centre South Africa (NCPC-SA) on behalf of the Department of Trade, 

Industry and Competition; and the Department of Energy and Mineral Resources and its agency, Sanedi.

Contents 

ISSUE 40 

08 

10 

04 

07 

08 

10 

13 

14 

16 

News & snippets 

Energy 

SAWEA explains new generation capacity and 

how NERSA determinations will provide hope for 

procurement 

International insight 

Global overview and historical hindsight indicates 

a bright outlook for the renewable sector 

Finance 

NCPC-SA says that they have seen the sharpening 

of focus on the implementation of energy 

efficiency in the business landscape over the past 

ten years 

Waste 

Thought leader, Chris Whyte, explains how Covid-19 

has impacted the waste industry, specifically with 

regards to the recycling sector 

Thought leadership 

Wendy Green, agriculture and energy expert, 

expounds on how food security in South Africa is 

faring in the face of Covid-19 

Food security 

The Minister of Agriculture, Land Reform and Rural 

Development and other sectoral leaders share their 

views on how to feed Africa during Covid-19 

18 Construction 

Increase property investment value by adding 

sustainable value. Clay Brick tells you how 

22 

20 

21 

22 

Infrastructure 

Graham Qruickshanks, from GBCSA, explains why 

South Africans should get a certified green home 

rating 

Waste 

PETCO’s pilot recycling programme boosts the 

informal sector and highlights the plight of the 

waste pickers 

Profile 

Boekenhoutskloof Winery share their story and 

philosophy on creating a prodigy of the renaissance 

1

RECYCLE. 

IT MAKES 

OUR WORLD 

GO ROUND. 

Recycling PET plastic bottles creates over 60 000 income 

opportunities every year in South Africa. Many of these are 

reclaimers, who helped divert upwards of 90 000 tonnes 

of PET plastic bottles from landfill in 2018. The used bottles 

they collect are recycled, ensuring that they become 

bottles yet again. This creates yet more jobs in the process, 

contributing positively to our country’s GDP while eliminating 

the chance that they end up harming the environment. 

Recycling ensures that a circular economy is established 

where the value of plastic bottles continues indefinitely. 

Plastic bottles are not trash. 

16 BILLION 

PET plastic bottles 

collected for recycling 

R6.6 BILLION 

injected into South 

Africa’s economy 

68 000 

income opportunities 

created** 

** 2018 specifically 

1905356_FP_E

Dear Reader, 

Once we stop screaming in terror at the immediate question: will 

my business survive C19, we might take a moment to ponder 

the bigger picture question: Is it possible to emerge from the 

greatest global economic crisis in recorded history in a better 

position than we entered it? In other words, can the C19 induced 

economic shutdown and lessons learned from it somehow 

trigger a reset that takes us in a new, more sustainable, more 

crisis-resilient developmental direction? 

As an extension of this conversation, we start to consider the 

impact of the C19 crisis beyond the actual illness and consider 

how the economy and the state will be forced to transform how 

goods and services are delivered to consumers into the future. 

C19 could radically affect policy, and a key to a sustainable 

future is the migration to renewable energy in South Africa. 

How will the crisis affect this trajectory? See insight from global 

management consultancy firm Kearney on page 8. 

In Africa, C19 will have a massive impact on food markets. 

Even before C19, the world was rapidly moving towards a more 

nationalistic sentiment. We asked Wendy Green, an independent 

expert, to shed some light on how these shifts towards greater 

national self-interest, now heightened by the C19 crisis, is 

affecting consumers and agribusinesses in South Africa. Read 

her illuminating thoughts on page 14 and gain further insight 

from Minister of Agriculture, Thokozile Didiza, the UN FAO 

Director-General and the AU Commissioner of Rural Economy 

and Agriculture in their joint article Keeping Africa Fed on page 16. 

Another primary sector is waste management, now reopening 

fully under level 4 lockdown, how has the lockdown affected this 

sector, and what does the future hold? We asked waste sector 

expert Chris Whyte of Use-It for his views, see page 13. 

All sectors have been affected by the Coronavirus media is 

no different. Like many others, our response has been to ramp 

up our digital strategies with the launch of our new brand 

GreenEconomy.Media and website www.greeneconomy.media. 

This website promises to deliver real value to the green economy 

sector as it breaks down the problems, shares the science, 

exposes the innovation, and highlights the solutions to every 

aspect of the green economy. Featuring the stories behind the 

news, thought leadership, research, technology, alternative 

approaches, and a unique buyers guide – giving you the how, 

the why, and the how much! Check it out today! 

In another shot-in-the-arm for GreenEconomy.Media, I take 

this opportunity to announce that green economy professional 

Songo Didiza of Green Building Design Group will take over as 

editor of Green Economy Journal from next edition. Welcome, 

Songo! 

G r e e n 


journal 

Editor-in-Chief: Gordon Brown 

PRODUCTION MANAGER: Alexis Knipe 

LAYOUT AND DESIGN: CDC Design 

GM: MEDIA SALES: Danielle Solomons 

danielle@greeneconomy.media 

PROJECT MANAGER: Munya Jani 

SALES: Vania Reyneke 

Gerard Jeffcote 

PRINTING: FA Print 

WEB: www.greeneconomy.media 

GENERAL ENQUIRIES: info@greeneconomy.media 

ADVERTISING ENQUIRIES: munya@greeneconomy.media 

EDITORIAL PROPOSALS: alexis@greeneconomy.media 

PUBLISHER: Gordon Brown 

gordon@greeneconomy.media 

PHYSICAL ADDRESS: 21 Selous Rd 

Claremont 

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Cape Town 

REG NUMBER: 2005/003854/07 

VAT Number: 4750243448 

ISSN NUMBER: 2410-6453 

PUBLICATION DATE: April 2020 

G r e e n 


journal 

PUBLISHER 

Enjoy your read, 

Issue 40 

R29.00 incl VAT 

11025 

9 772410 645003 

COVID and ENERGY: Will Covid induced 

economic crisis derail renewables? 

COVID and FOOD: How secure is our food? 

COVID and the ECONOMY: Can sustainable 

infrastructure investment drive the recovery? 

COVID and WASTE: The plight of the waste pickers 

Green Economy Journal 

is audited by ABC 

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3

News & Snippets 

Solar industry calls on president 

The Chairperson of SAPVIA, Wido Schnabel, 

has written an open letter to President Cyril 

Ramaphosa, in which it calls on him to remove 

limitations to private power generation. He writes: 

“As an industry, we support both the state-run 

utility model and the integration of Distributed 

Generation methodologies, although the latter 

delivers electricity at a faster rate with no cost 

to the Government. The Distributed Generation 

approach provides additional capacity to the grid, 

promotes broad-based participation in the energy 

sector, and aligns with the tenets of a just energy 

transition. In fact, the Distributed Generation 

space plays a strategic role in balancing the 

country’s sustainable development needs with 

employment security. 

To assess the potential of the sector to create 

jobs, we partnered with the Council for Scientific 

and Industrial Research (CSIR). According to our 

study, there are approximately 400 SMMEs (and 

growing) in the Distributed Generation space with 

the potential to create more than 100 000 jobs 

over the next 10 years. Unfortunately, the growth 

of the Distributed Generation market has been 

stymied by three factors linked to Schedule 2 of the 

Electricity Regulation Act (ERA). These problematic 

amendments came into effect in 2017. 

There are three main issues: 

• The Integrated Resource Plan (IRP) does 

not explicitly spell out the allocation for 

Distributed Generation projects over the next 

4 years. Without a clear allocation, the energy 

regulator does not have a clear mandate to 

grant licenses to entities wanting to generate 

electricity outside of the proposed state 

procurement process. 

• Schedule 2 imposes a 1MW threshold for 

licensing exemption, which makes the development 

of projects up to 10MW impractical 

for small and medium sized businesses. 

• Projects with a generating capacity of just 

over 1MW must endure the same onerous 

application process as large-scale projects. 

Both require a public participation process 

and hearings on a per project basis… 

“…The limitations imposed by Schedule 2 of the 

ERA are weighing heavily on our industry at a 

time when the country is in the midst of a crisis. 

Nevertheless, we are confident that by working 

together with the Government, we will be able to 

power the economy back to life. This is precisely 

why we are calling for an urgent meeting with 

your administration to plot a way forward. 

Mr President, we urge you to consider the 

following proposals: 

• Lift the licensing exemption threshold from 

1MW to 10MW. 

• Make it a requirement for projects to 

register with the regulator by submitting 

an independent certificate of compliance 

against which the allocation to embedded 

generation can be measured, and ensure that 

the database of installed megawatts is public 

and updated. 

• Ensure there are clear guidelines on how to 

obtain a generation license for projects above 

10MW in size. 

• Ensure that NERSA has the resources and 

capacity to process applications timeously and 

efficiently. 

Mr President, we need urgent interventions from 

your government to drive growth in the energy 

sector. The Solar PV Industry stands with you to fight 

the COVID-19 pandemic and commits to positively 

participate in the recovery of the economy. As an 

industry we’ll continue to engage with you so that 

we can get our economy moving again.” 

Construction: An essential service? 

Construction industry suppliers are calling for government leaders to add construction to the list of 

essential businesses. According to a joint statement from the Clay Brick Association of Southern Africa 

(CBASA) and Aggregate and Sand Producers Association of Southern Africa (ASPASA), Government 

at all levels should treat the construction industry and the work it performs as vital and essential 

to the critical industries that must remain in operation. 

In many countries including Canada and most US States, construction 

has been designated an essential service. 

SAWEA 

welcomes 

new IPPO 

head 

The South African Wind Energy Association 

(SAWEA) has welcomed the appointment 

of Tshifhiwa Bernard Magoro, as the new 

head of the Independent Power Producers 

Office (IPPO). The Association trusts that the 

country’s Renewable Energy Independent 

Power Producer Procurement Programme 

(REI4P) will be well led and directed by 

Magoro. 

4

News & Snippets 

Lockdown halts water use 

licence applications 

The clock has essentially been stopped on water 

use licence (WUL) application timeframes until 

South Africa’s lockdown comes to an end. 

According to Jacky Burke, principal scientist 

at SRK Consulting, the lockdown has meant that 

the Department of Water and Sanitation cannot 

work on applications submitted. In water use 

license (WUL) applications, there are usually 

strict timeframes within which applicants must 

complete each stage of the licence application. 

The department has stated that applicants 

will be credited with the time lost due to the 

lockdown, so they will still have the time to 

complete the work required, said Burke. 

“While this means that applications and 

projects will invariably be delayed, the 

Department is trying to ensure that the 

stipulated time allowed for each phase of the 

application still applies to applications,” she said. 

Eskom issues curtailment notice 

to wind farms 

Despite government issuing an official notice in 

March 2020, classifying electricity production, 

supply and maintenance as essential services, 

Eskom is proposing to curtail operational wind 

farms citing reduced demand concerning 

Covid-19, claiming Force Majeure. 

This comes as a surprise to the 22 operational 

wind farms, who have a combined installed 

capacity of 1980MWs, as the power utility failed 

to alert or warn the IPPs of such action, before 

issuing the notices. 

“It is concerning that wind energy power 

producers have not been allowed to engage 

on this matter with Eskom, despite both Eskom 

and Government confirming that operational 

IPPs are an essential service. The industry 

Jacky Burke, 

principal 

scientist at SRK 

Consulting 

She noted that the Department of Environmental 

Affairs had issued similar notification 

advising that timeframes were also being 

extended for official processes including 

environmental licencing, public participation, 

appeals and reporting. 

The notification stipulates that any authorisations 

and exemp-tions expiring during 

this timeframe will be regarded as extended. 

will be approaching Eskom intending to 

find a constructive resolution that does 

not prejudice the country nor the power 

producers,” explained Ntombifuthi Ntuli, CEO 

of SAWEA. 

The industry is seeking legal counsel on 

whether the reduced electricity demand as 

a result of Covid-19 does constitute Force 

Majeure as some experts deem reduced 

demand as a normal system event, which 

would therefore not imply a Force Majeure 

event. Additionally, experts raise the point 

that South Africa is not currently facing a 

structural oversupply and the fact that Eskom 

is still struggling to keep the system stable, 

despite a shift in demand patterns. 

Plastics industry 

supports waste 

pickers 

South Africa waste pickers play a substantial role 

in the country’s waste management industry. 

With the country in a national lockdown, 

these waste reclaimers unexpectedly found 

themselves unable to put food on the table since 

economic activity has been limited to essential 

food and health products or services only. 

Plastics|SA, the plastics PROs, the other 

packaging PROs and Packaging SA rallied 

together to donate funds when the request 

was made by Packaging SA. Working in 

close partnership with the Department of 

Environment, Forestry and Fisheries (DEFF) 

and in support of the members of the two 

associations representing the waste pickers, 

ie the South African Waste Pickers Association 

(SAWPA), African Reclaimers Organisation (ARO), 

a total amount of R785 000 was collected within 

a matter of days. 

These funds will now be used to purchase 

electronic food vouchers that will be sent to 

the collectors who are on the DEFF database 

via cellphones and can be redeemed at major 

supermarket retailers. 

For more information or to donate funds, please 

email payments@fibrecircle.co.za 

5

OPINION 

New generation capacity 

NERSA determinations 

provide hope for procurement 

BY BEN BRIMBLE, SAWEA 

Following the approval of the Integrated Resource Plan in 2019, 

Section 34 of the Electricity Regulation Act requires that the 

Minister of Mineral Resources and Energy determines what 

capacity will be procured when and from what technology to give effect 

to the IRP. The Energy Regulator (NERSA) is then required to concur 

with the Minister on his determination, but not before they go through 

a public participation process. 

NERSA has officially launched the public-participation process by 

releasing the two consultation papers for public comment. The wind 

sector sees this as significant progress, as it brings us a step closer to the 

procurement of new generation capacity that the country desperately 

needs. It is a great opportunity to use this lockdown period to progress 

the public participation process so that when the economy gets back on 

track (and energy demand rises again), the government will be ready to 

commence with procurement. 

The first consultation process for 2 000MW suggests that an expedited 

process could be concluded within 60 days from the date of submission, 

approximately in July. For the second consultation paper (6 800MW), the 

process includes public participation for up to 120 days (six months). It is 

currently unclear whether the lockdown will impact on these timelines, 

however, NERSA has indicated that any public meetings that are required 

as part of the public participation process could be held over video 

conference. Should the lockdown result in delays, it is hoped that NERSA 

will look to make up the time further into the concurrence process. 

The wind industry is of the view that the determinations should allow 

for sufficient allocation for energy procurement by government and by 

the private sector, in line with the Minister’s announcement to allow the 

private sector to procure their energy from independent energy producers. 

With specific regards to emergency procurement, we believe that 

renewable/wind energy should not be excluded from the emergency 

procurement process as it is cost-competitive and can be quickly deployed. 

The South African electricity supply crisis is critical and procurement 

should be expedited wherever possible so that new capacity can be 

brought online to alleviate this crisis. 

The government should not be fixated on plant size restrictions because 

process restrictions will automatically exclude plants that are either too 

small or too big. Energy producers should be free in the choice of energy 

technology they bid as long as aspects like dispatchability, environmental 

as well as health and safety requirements are met. 

SAWEA supports the inclusion of battery storage technology in the 

Determination. Despite the emergency nature of the procurement, tariffs 

should still be market related and competitive. We see this process as 

an opportunity to fast-track the commitments to have an independent 

system operator that would procure energy from all generators on a fair 

and equitable basis, without prejudice. 

Once NERSA provides concurrence to the Determinations, it will give 

effect to the IRP 2019, thereby setting the wind industry up for 6 800MW 

procurement over a three-year period from 2022 to 2024. This will enable 

the wind industry to contribute to rebuilding the economy in terms of 

quickly bringing electricity onto the grid, attracting investment and 

creating jobs. 

* Ben Brimble is the Policy & Markets Working Group Chair at the South African Wind 

Energy Association (SAWEA) 

Background 

The South African Wind Energy Association (SAWEA) has co-ordinated 

a consolidated wind industry response to the two consultation papers, 

published last month by the National Energy Regulator of South Africa 

(NERSA), for two separate Ministerial Determinations submitted by 

Mineral Resources and Energy Minister, Gwede Mantashe. The first 

consultation paper deals with the Minister’s Section 34 Determination 

aimed at closing the immediate supply gap of 2 000MW, as identified 

in the IRP 2019 for the years 2019 to 2022. The second deals with the 

specific generation technologies outlined in the IRP 2019, which is 

normal power procurement that will constitute further rounds of the 

REI4P (6 800MW). 

7


The outlook for 

renewable energy 

is still bright 

BY PRASHAEN REDDY, SANEA 

After the coronavirus mayhem, governments, corporations and associations globally 

will have to draw the right conclusions to protect us from any future outbreaks. The 

renewables sector will need to get back on track toward a green and sustainable economy. 

The magnitude of the impact of Covid-19 on projects, developers, utilities, and equipment 

manufacturers is still unclear, but the medium-term fundamentals are optimistic. 

In Spain, as in most European countries, the outlook for renewables 

before the global pandemic was strong. Sector reform had 

alleviated pressure on public budgets despite raising concerns 

among investors about the country’s legal security for investment. 

The economics of renewable energy technologies, especially wind and 

solar, had achieved levelized cost of energy (LCOE) competitiveness 

comparable with conventional sources. And money was flowing 

back into renewable projects, supported by low Capex, low-interest 

rates, and growing future power price curves—creating an appetite 

from commercial and corporate off-takers for power purchase 

agreements (PPAs). 

Although the Covid-19 crisis hasn’t peaked yet, the impact on the 

renewables sector is already evident in project delays and other longlasting 

impacts: 

Lockdowns, transit limitations, and labour issues in Asia, Europe, and 

the United States are impacting production from original equipment 

manufacturers, including leading European wind players. Delays in 

administrative approvals, bottlenecks in port facilities, and issues in 

construction and commissioning can also be expected. Developers are 

discounting two-to-three-month delays on projects to be commissioned 

in the next 18 months. 

The pandemic is affecting power consumption patterns, reducing the 

share of industrial and commercial segments and flattening domestic 

curves. This economic downturn will trim demand, impacting the market’s 

renewable capacity needs, reducing the utilisation of the least-economic 

power plants, and more importantly, beating down price curves – on top 

of the wholesale price erosion created by wind and solar during peak 

production hours. 

8


The price of oil has plummeted to an 18-year low (Brent at $26.23 and 

WTI at $22.46 on March 18), and the carbon cost lost 33% in mid-March 

to €16 per metric ton. Although commitments for the green energy 

transition are firm, low prices for oil and carbon will remove incentives and 

delay final investment decisions. 

The challenges ahead for renewable energy players remain largely the 

same, although this crisis will put to the test their skills, their resilience, and 

their depth of pockets. 

In our long journey to a decarbonised society and meeting 2030 

objectives, this crisis could be more than a hiccup. With solid fundamentals 

and strong market momentum, the renewables sector can be confident 

that targets will eventually be achieved. But some players will struggle 

financially and face liquidity issues along the way. Isolating the virus 

promptly will not only save human lives but also help reduce economic 

distress and put our sector back on track. 

Heeding history’s lessons 

When you’re in the middle of a crisis, it’s easy to overestimate the shortterm 

impact while overlooking the potential long-term outcome. This is 

certainly true now amid the Covid-19 pandemic – a once-in-a-lifetime 

event but one that is quite similar to four other events that have occurred 

over the past century. 

Each crisis—the 1918 flu pandemic, the Great Depression, World 

War II, and the Great Recession—was marked by a period of economic 

contraction, an uptick in mortality (especially during pandemics and 

wartime), and swift destruction of value. We already see all three of these 

occurring in our current crisis. 

The past offers four lessons for how to put our best 

foot forward: 

1. Take big, bold, fast action. 

2. Balance any efforts to reduce costs with ingenuity and 

innovation. 

3. Prepare to serve tomorrow’s consumer, not yesterday’s. 

4. Use emerging technologies to soften the blow of disruption. 

3 key factors will determine the profitability of South 

Africa’s renewable sector against the impact of the 

coronavirus: 

1. Building portfolios around privileged assets with solid 

renewable resource and straightforward access to the power 

grid and prioritise efforts on the projects that have the 

greatest chances to progress economically. 

2. Adapting organisations to promote agile execution, with 

modular plant designs and layouts, strong permitting 

capabilities in key markets, and PPA expertise to speed up 

agreements with off-taker and project financing. 

3. Developing tool kits to flexibly cope with renewable 

intermittency and its impact on revenues, both on the 

demand side (access to market, ability to profile production 

curves, and price segmentation) and on the supply side 

(smart storage solutions and asset pooling). 

when strong measures were taken early on. The speed element cannot be 

overemphasised. Many of these situations saw successful responses within 

their first 100 days. Conversely, dithering leads to destruction, as clearly 

evidenced by the 10 000 deaths in an ‘open for business’ Philadelphia in the 

1918 flu pandemic and Hoover’s tepid responses to the Great Depression. 

During a global crisis, forward-thinking companies make shrewd 

investments. Rather than cutting costs and shying away from investing, 

those that have weathered the storms of the past focused on improving 

their operational efficiency, which in turn lowered their costs. They also 

put their limited resources to work in creative new ways. Forward-thinking 

investments in marketing, R&D, and even new assets can lead to growth. 

Looking to the future, keep in mind that tomorrow’s consumer may 

well be very different from the one we have become accustomed to as 

global crises tend to reshape behaviours and lead to the creation of 

new industries. Success will come to those that capitalise on these new 

behaviours by shifting their business models and creating consumerfocused 

programs to meet them where they are rather than where the 

company wants them to be. 

The importance of these lessons cannot be overstated as any missteps 

will be extremely costly. The 1918 flu spread rapidly because many people 

refused to quarantine despite the cries of public health experts. And 

during the Great Depression, US President Herbert Hoover’s laissez-faire 

approach after Black Tuesday sent the economy into a freefall. Stronger 

short-term responses during World War II and the Great Recession suggest 

leaders learned from history. 

And now, after more than a decade of economic expansion, the Covid- 

19 pandemic has swiftly decimated the employment ranks as most of the 

United States is under stay-at-home orders that have closed many nonessential 

businesses. In a three-week period ending on April 10, more US 

jobs were lost than in all of the Great Recession. 

While we cannot be certain about the long-term impact, the recovery 

could take some time because of the debt that households, businesses, 

and government bodies alike are taking on. Many supply chains will need 

to be reinvented to create the flexibility needed to respond to future 

calamities. One winner seems to be e-commerce, which has seen nearly 

a doubling of retail transaction volumes year over year in the first month 

of this emergency as people seek the sort of touchless transactions that 

brick-and-mortar retailers have yet to master. 

Unprecedented times such as these call for big, bold, and immediate 

action. In each crisis discussed above, the worst outcomes were avoided 

The challenges ahead for renewable energy 

players remain largely the same, although 

this crisis will put to the test their skills, their 

resilience, and their depth of pockets. 

Finally, emerging technologies can soften the blow of disruption. During 

a global crisis, many supply chains and even the means of production 

are upended—as we are now seeing in consumer products and retail. 

Ensuring business continuity requires launching new technologies and 

digital tools to reinvent supply chains—creating a whole new normal. 

*Prashaen Reddy, Principal at Kearney and is on the board of the South Africa National 

Energy Association (SANEA). Kearney is a global consulting partnership in more than 

40 countries. www.kearney.com 

9

Finance 

Sharpen your 

financial 

focus 

BY MILISHA PILAY, NCPC-SA 

Fortified by steeply rising electricity prices, stricter environmental regulations and taxes 

as well as energy insecurity, the decision of businesses in South Africa to become more 

energy efficient has become somewhat of a revolutionary one. 

The National Cleaner Production Centre South Africa’s (NCPC-SA) 

Industrial Energy Efficiency (IEE) Project has inadvertently seen a 

perceptible sharpening of focus amongst companies with regards 

to the implementation of energy efficiency (EE), in the last decade. 

Unfortunately, the trajectory for the scale-up of EE finance in South 

Africa has not moved with quite the same momentum and this remains a 

significant area of opportunity for the financial sector. 

Despite more and more South African companies (both industrial and 

commercial) converting to a sustainable mindset and at a rate faster than 

ever before, a lack of project finance still consistently ranks as one of the 

key reasons that small-to-medium enterprises do not implement energy 

efficiency projects. 

While several EE technologies are well-established and have shorter 

payback periods where upfront costs can be paid back from energy 

cost savings, there are pipelines of bankable EE projects that remain 

unimplemented even though they may offer compelling economic 

returns. One of the root causes for this gap can be attributed to the lack 

of available financial instruments that are tailored to suit the specific 

characteristics of EE. 

EE projects are unique and the peculiarity of the payback mechanisms 

needs to be well understood so that packages can be developed 

accordingly by financial institutions (FIs). The focal point is not always 

a tangible piece of equipment that is installed and commissioned to 

produce determinate or easily recognisable results. Cost savings can be 

achieved through a wide range of interventions, not all of which are easily 

justifiable as a solar PV project. 

For example, companies may look to install power meters that will enable 

better measurement and management of future energy consumption but 

are challenged to justify this investment without being able to validate 

the savings. Similarly, operational control type interventions that might 

require some investment for process control changes to machinery may 

not fit the banks’ criteria for what is deemed as bankable. 

10

Finance 

Commercial banks in South Africa mostly offer direct loans (both asset 

and non-asset based) as they do not have packages that are structured 

to take into account the inherent nature of EE – the savings from EE 

projects cannot be directly measured with a simple meter because energy 

savings infer the absence of energy use and this introduces a new level of 

complexity to FIs. 

The lack of available financing for EE was recently revealed in a study 

undertaken by the NCPC-SA, where only one of a group of 15 financiers 

(commercial, developmental and governmental) interviewed had 

amongst their offerings a specialised financial package for EE projects. All 

other respondents indicated that if companies borrowed money for any EE 

improvement projects, it was usually off their balance sheet. 

Enterprises in South Africa are fortunate enough to be able to have 

access to other potential sources of finance such as international 

development agencies, governmental, energy services companies and 

original EE equipment suppliers. The three main costs associated with 

energy efficiency projects can be categorised into upfront costs (research 

and development costs including activities such as initial assessment and 

post-project savings measurement) as well as capital costs and operational 

costs (including running and maintenance costs). 

Different finance options can apply to each of the above-mentioned 

three categories and may sometimes be sector-specific (especially in the 

case of government grants) and have important minimum qualifying 

criteria such as Broad-Based Black Economic Empowerment (B-BBEE) 

rating, company size and project size. 

Several guides into the different financing options in South Africa have 

been made available in recent years by the National Business Initiative 

(NBI) and the NCPC-SA. 

Here are some general guidelines and considerations for the implementation 

and financing of energy efficiency projects: 

• Start with understanding the need for EE in the business. Is it a cost 

imperative or is it to build and strengthen the brand? This will help to 

direct the initiative in a more focused manner, assign resources and 

decide on schedules based on timed targets. 

• Build a strong business case for energy efficiency and obtain buy-in 

and commitment from senior decision-makers in the company. 

• Conduct an investment-grade assessment (IGA) using inhouse 

resources or an independent consultant. The IGA forms the 

foundation for the successful implementation and financing of an 

energy efficiency project. The report will detail all assumptions made, 

major calculations of estimated savings and projected costs (with 

supplier quotes) and most importantly, the baseline development 

and M&V methodology to be followed in calculating the actual 

savings. This will include the establishment of an accurate Energy 

Performance Indicator to enhance credibility in measurement and 

verification of actual savings. 

• Consider conducting a cost risk benefit analysis as part of the 

assessment. This will allow the capturing of non-energy benefits 

and identification of potential risks associated with the respective EE 

project/technology so that mitigation measures can be put in place. 

• Use a set of metrics for evaluating the financial feasibility of the 

project as opposed to just a simple payback period and capital 

cost. This can include Net Present Value, Internal Rate of Return and 

Life Cycle Costing (which considers the full cost of owning, 

operating and maintaining a piece of equipment over its lifetime). 

Assess these metrics against what is deemed as acceptable 

business criteria such as the company rate of return and acceptable 

payback period. 

• Assess the available finance options that are appropriate for the EE 

project and subject to the company meeting the minimum required 

criteria. One must ensure that the most updated information for the 

various finance options are obtained as they tend to change from 

time to time and outdated handbooks or guides may not provide the 

most up to date information. 

• In addition to the actual financing component of the project, 

evaluate any additional fiscal opportunities to exploit savings 

benefits such as carbon credits and tax incentives. 

• The application may require the facilitation and assistance of an 

independent accredited auditor or specialist especially in the case 

of carbon offsets and tax incentives (where measurement and 

verification of savings are required). 

• It is important to consider the timeline for the grants and incentives, 

as some can be quite lengthy. The 12L tax incentive, for example, 

requires that a baseline assessment be conducted using energy 

consumption data for 12 months before implementation. Similarly, a 

performance assessment must be conducted using 12 months’ postimplementation 

data. 

• Once a project is implemented, the economic returns have been 

proven to lose half their economic benefits every six months, if 

not maintained. It is therefore important to consider putting in 

place a systemic structure for managing the energy performance 

improvement derived savings in the long-term. This can include 

the implementation of an ISO50001 aligned Energy Management 

System which integrates EE into every functional level of the business 

and will ensure the long-term effectiveness and sustainability of the 

EE projects that savings have been derived from. 

South African companies will inevitably be 

required to adapt to the new business unusual. 

While EE by itself may not be the silver bullet to the growing threat of 

climate change, it is indisputably one of the biggest spheres of opportunity 

for South Africa to significantly reduce its GHG emissions and achieve the 

energy reduction targets committed to in the Paris Agreement. Despite 

the opportunity it offers, mainstreaming and mobilising finance for EE in a 

developing country such as ours, remains a challenge. 

In the wake of the economic destruction left by the global pandemic 

of Covid-19, South African companies of all sizes will find themselves 

hard-pressed to reduce operational costs to protect the livelihoods of 

their stakeholders and employees. EE, being the cleanest and cheapest 

form of energy, provides an invaluable opportunity in this regard as it 

goes straight to the bottom-line to enhance cash flow and profitability of 

a business. While other mechanisms in South Africa offer varied financing 

options, these often have their minimum criteria and may fall short in some 

areas of providing project-based funding that is commercially attractive to 

facilities looking to become more energy efficient. 

There has never been a more opportune time for FIs to become more 

disposed and invested in grasping the complexities of EE projects and 

structure financial packages that are designed to appreciate its nuances. 

South African companies will inevitably be required to adapt to the new 

business unusual and the economic resilience of the country as a whole 

will necessitate a combined strategy of a balance of energy supplydemand 

and the security of energy supply, industry competitiveness 

and environmental protection – all of which are possible through EE. 

Commercial banks, FIs and investors, therefore, have a critical role to play 

in stimulating the economy as South Africa continues on its low-carbon 

journey in a New World order. 

11

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Waste 

It is estimated that the informal sector saves 

municipalities up to R750 million per year in 

landfill costs by diverting recyclable materials. 

The impact of 

Covid-19 

on waste 

streams 

BY CHRIS WHYTE, FOUNDER OF USE-IT 

These are uncertain times. Perhaps no more 

so than for the recycling sector in South 

Africa. While we ponder economic hardships 

across all the economic areas, this sector is 

one of several that will suffer the effects of 

Covid-19 long after the lockdown is over. 

Recycling in South Africa has suffered since before the pandemic, 

with the last six months being particularly difficult, relating to 

supply and demand imbalances, pricing issues, rising logistics 

costs and global influences such as the Chinese market’s abrupt 

withdrawal from the sector (with their National Sword policy that 

closed their doors to imported materials) in January 2018. We started to 

see plummeting prices for recycled commodities in the middle of 2019. 

The recycling sector is largely made up of the formal sector with some 

1800 process agents and manufacturers as well as the informal sector or 

‘pickers’ numbering upwards of 90 000 individuals. With the lockdown that 

came into effect on 27 March 2020, waste management was deemed an 

essential service – recycling was not. 

Many municipalities with effective source separation programmes 

effectively terminated these services stating the negative impacts of the 

virus. Many even stipulated that all recyclables be placed in the same 

black bag as residual waste for the formal waste collection to landfill. The 

immediate impact on the informal collectors was disastrous. Pretty much 

all of these individual pickers live from hand-to-mouth on a daily basis 

– how are they to survive weeks, or months? Even if they were able to 

collect, they would have nobody to sell to, because the formal sector was 

closed as part of the lockdown, and only expected to resume operations 

at 50% capacity by the 1 May as we ease lockdown restrictions. So, will 

we slowly get back to normal conditions? The effective and inconsolable 

answer to this is no. 

Covid-19 has had a global effect, and this has been complicated by 

politics. The Crude Oil price war initiated between Russia and Saudi Arabia 

on 8 March caused the oil price to crash dramatically from $47 per barrel 

to below $25 per barrel within 2 weeks. This was due to Saudi Arabia’s 

response to Russia’s refusal to reduce oil production to keep prices at a 

moderate level since consumption fell dramatically with the pandemic. 

This did not work for any of the oil-producing countries in OPEC, and they 

collectively agreed to decrease global production by 10% on 9 April. The 

impact of this decision has had little effect with the crude oil price now at 

under $17 per barrel. Quite simply we are reducing global oil production 

by 10% when the global demand has decreased by 25% and so we are 

producing way more oil than we are consuming globally. On 21 April 

global prices dipped below $12 to the barrel and markets in the USA 

dropped to a negative value for the first time in history. These are not 

usual times. 

The impact of global oil price has a direct impact on plastics pricing as it 

is now much cheaper to use virgin plastics than to use recycled polymers. 

As we slowly emerge from lockdown globally, we will retain a low value for 

oil as production will continue to exceed demand. It is estimated that as 

much as 90% of our plastics locally are collected by the pickers who can 

barely survive on their earnings of about R100 per day. Estimates are that 

the value of daily picking will reduce to around R25 per day – nobody can 

survive on that. This will have an immediate and devastating effect on the 

informal sector. The impact on the formal sector will experience a slight 

lag but expected that most of those industries solely reliant on processing 

recycled materials will not survive the next few months if we continue 

business as usual. It is also estimated that the informal sector saves 

municipalities up to R750 million per year in landfill costs by diverting 

recyclable materials (CSIR, 2016) and so this is an additional burden the 

state will have to bear. 

If we stand any chance of the recycling sector emerging from the 

pandemic, then we need to ensure that as a country we collectively pull 

together. Without the proper policies, support and infrastructure from 

the public sector and without appropriate and immediate Extended 

Producer Responsibility (EPR) inputs from the private sector, there is no 

future for recycling in South Africa. The recycling sector can’t survive the 

12-18 months it may take to stabilise global economies and oil prices. Any 

hesitation in how we react to this as a country will see the impacts of waste 

become a much bigger issue than we ever expected possible. 

13

Thought Leadership 

Food security 

in a post-Covid-19 

South Africa 

BY WENDY GREEN 

The outbreak of Covid-19, a natural human tragedy, is a prime example of a black 

swan phenomenon: entirely unexpected, and completely unpredictable. This has had 

immediate impacts on the agriculture value chain, however, the medium- and longterm 

impact and implications are still uncertain. 

Epidemiologists are predicting the possibility of further waves of 

the pandemic across the globe. The disease is spreading quickly 

and will continue to affect significant aspects of both food supply 

and demand for agricultural products. We risk a looming food crisis 

unless measures are taken fast to keep agricultural food supply chains 

alive and to mitigate the pandemic’s impacts across the food system. 

Currently, we are experiencing lockdowns in at least 33 of Africa’s 54 

countries. According to the Food and Agriculture Organisation, about 

one in every five people in Africa, nearly 250 million, already didn’t have 

enough food before the virus outbreak. The World Food Program was 

already feeding millions in Africa, mainly rural people, due to a myriad 

of disasters: natural disasters, armed conflict, government failures, even 

plagues of locusts. The Covid-19 pandemic has added another layer of 

hardship and complexity in terms of pure survival for many. 

In South Africa, to add to the complexity of the matter, the cut in South 

Africa’s credit rating to junk status has contributed to a rapid depreciation 

of the South African Rand. The combined effect of the depreciation, as 

well as the current disruptions in the supply of and demand for food, will 

certainly be the main drivers affecting food availability and food prices for 

the rest of 2020. 

Kenmure Farm, Barkly East, Eastern Cape. 

14

Thought Leadership 

South Africa has a world-class food system, and we are in a reasonably 

good position regarding food security as our exports exceed imports 

by a significant margin. However, we import a substantial share of the 

inputs required to produce this surplus. According to the ITC Trademap, 

2020 our main agricultural and food exports in 2019 included citrus fruit, 

wine, grain, apples, pears, maize and sugar with main imports being rice, 

poultry, wheat, sugar and palm oil. Pre-Covid-19, South Africa imported 

good mostly from China, Thailand, Brazil, Eswatini and Argentina. 

With the current lockdown, the importance of agriculture has certainly 

gained relevance and awareness – food needs to be both available and at 

the right price. In the long term, we can expect major disruptions to trade 

in global food. 

Various elements need to be considered and understood to ensure our 

food availability remains secure: 

Pricing, markets and marketing 

In South Africa, about 40% of all food sold and distributed is through the 

informal markets. This market system is enormous and extremely efficient. 

Fortunately, with quick industry intervention, the government realised 

the importance of such markets and did not close them in the lockdown. 

According to the Bureau for Food and Agricultural Policy, given the 

severe depreciation of the exchange rate, certain products, typically 

those where South Africa is well integrated with global markets, will 

exhibit significant cost-push price increases. This will be exacerbated in 

instances where countries such as Vietnam have put export restrictions on 

commodities such as rice. 

Where there are risks, there are opportunities. 

Already changes in local and global market supply and demand are 

being seen. For example, there is a shortage of garlic; a decrease in demand 

for crops like barley, used for alcohol production; and an increased demand 

for eggs. We must use our data to track and forecast these changes as the 

pandemic changes. As agri-businesses, it is important to keep on top 

of the market changes and be proactive in unlocking new markets and 

investigate alternative ways to market and distribute products. 

Supply chain 

A critical element in maintaining food security is ensuring continuity of 

the logistics and supply chains across all levels – local, provincial, national, 

as well as imports and exports. Jaco Oosthuizen, CEO of the RSA Group, 

the country’s top fresh produce organisation, says that they were most 

concerned about logistics at the ports, yet together with the government, 

these risks are being managed well. Initially, the capacity was reduced to 

about 30%, however, it has now been increased to about 70%. 

South Africa is currently in its peak for fruit exports, exports which could 

be up to R25bn. The industry is working hard to ensure that barriers are 

lifted both at our borders and the destination ports. 

In many instances, supply chains are being shortened and businesses 

are adapting through various forms of new business models, technology 

and innovation. At a more grass-roots level people are more aware of 

growing their own vegetables and buying locally, for example, farms 

such as Boschendal in the Western Cape are delivering vegetable parcels 

directly to customers in surrounding areas. 

Kenmure Farm, Barkly East, Eastern Cape. 

Social impacts 

The health and security of farmers and farmworkers and their ability 

to maintain production levels is a critical consideration, especially in 

industries where seasonal, and often migrant labour is used for harvesting, 

such as the citrus industry. 

There is a direct link between food security and social security. Although 

South Africa’s national food security is good, household food security is 

a risk. Given the impact of the lockdown, many households don’t have 

the financial means to buy food and millions are going to bed hungry. 

Government and many organisations have stepped up to the plate and are 

supporting in terms of food parcels, but there will always be gaps amongst 

communities. The risk is that we will see an increase in social unrest and 

looting, as is already evidenced in various provinces. 

Agricultural investment 

There is a concern about ongoing investment across the agricultural value 

chain both at a local level as well as national and international level. With 

the raised awareness and importance of agriculture as a key element in 

the United Nations Sustainable Development Goals, we would hope to see 

increased investment into agriculture. 

At the farm level, if we see a major reduction in prices, as we have seen 

in the red meat market, farmers could go into further debt in trying to 

prepare for next season or they may not be able to invest for next year’s 

crop, thus exacerbating the food security issue. 

Where there are risks, there are opportunities. There are opportunities 

across the value chain for new products, new markets and new business 

models using innovation and technology, as has been the case in the 

development of the ‘HelloChoice’ online trading platform that links buyers 

and sellers. In cases such as poultry meat and vegetable oil, imports are 

only supplementary to our production, so these industries could have the 

opportunity to expand capacity and replace imported products. 

Although this can be described as a black-swan event, it certainly won’t 

be the last time we are faced with similar situations – whether it is due 

to pandemics, wars or natural disasters. We should use this opportunity 

to reimagine. Reimagine our agricultural businesses, reimagine new 

markets and a new inclusive agricultural system. Farmers are known for 

their resilience, hard work and determination, this pandemic is certainly 

highlighting the crucial role that farmers and the entire agricultural value 

chain play in the country and the economy – no farmers no future! 

We have an opportunity to emerge from this crisis with a more 

sustainable, resilient, robust food system across the country, continent 

and around the globe. 

*Wendy Green is a business advisor and investor across energy and agriculture 

15

FOOD SECURITY 

Covid-19: 

Keeping Africa 

fed as the 

disease bites 

BY QU DONGYU, JOSEFA SACKO 

AND THOKOZILE DIDIZA 

It takes a village to raise a child, Africans like 

to say. But you could just as easily argue the 

opposite: it takes a child to raise a village. 

Give a child a school meal. He or she will stay in the classroom and 

learn. Economic pressure on the family will lessen. Over time, 

the combined effect of education and good nutrition in young 

age will ripple through entire communities, fostering healthier, more 

productive societies. Research sponsored by the African Union suggests 

that if nations on the continent were free from child malnutrition, they 

could see their GDP expand by as much as 16%. 

Conversely, close the school. Take away that school meal. The family 

will struggle. The child may suffer from wasting. In the long run, economic 

vitality will dry up. Societies will shrink. The promise of development will 

wither, unfulfilled. 

Like much of the rest of the world, African countries reacted to the 

Covid-19 crisis by shutting down schools, closing businesses and limiting 

population movements. Even in rich countries, such measures entail hard 

choices: in the African context, these are truly agonising. With high levels 

of food insecurity; large informal labour forces; fragile health systems; 

scarce welfare provisions; and little budgetary leeway, African nations – 

many already battling other crises such as Desert Locusts and drought – 

risk mortgaging their future as they seek to protect their people. 

16

FOOD SECURITY 

Qu Dongyu is Director-General of the Food and Agriculture Organisation 

(FAO) of the United Nations 

Josefa Sacko is the African Union Commissioner for Rural Economy 

and Agriculture 

Thokozile Didiza, Minister of Agriculture, Land Reform and Rural 

Development of South Africa and Chair of the African Union Specialised 

Technical Committee on Agriculture 

To avoid irreparable outcomes, Africa’s coronavirus lockdowns need 

rapid and decisive mitigation. Steps to be taken by governments – with 

the support of donors, multilateral institutions, NGOs and the private 

sector – must involve dialling up social protection programmes where 

they exist and rolling them out where they do not. The need is most acute 

in the countryside, yet the cities pose the highest risk to social stability: 

both need urgent attention. Now is the time to hand food or cash directly 

to households. 

The preservation of life and health takes precedence, but food 

production and livelihoods must come a close second. This is why 

agricultural activities must be maintained. Borders should be kept open 

to food and agricultural commodities: Covid-19 must not be allowed to 

undo the painstaking progress we have witnessed in recent years towards 

trade liberalisation. 

Moreover, no effort should be spared in increasing quantity and 

improving the quality of agricultural products. Producing more and 

better entails strengthened capacities. All technical assistance required in 

that context needs to be provided. Shorter supply chains and innovative 

marketing tools to link producer and consumer through e-commerce are 

future-oriented approaches that are needed today. 

Taking all necessary precautions, seeds and planting materials must 

continue to flow to smallholders; animal feed and veterinary care to 

communities reliant on livestock; and aquaculture inputs to fish farmers. 

Agricultural supply chains should be kept alive by any means compatible 

with health safety concerns. Crop calendars need to be performed on 

time, otherwise vital harvests may be lost and planting not feasible, 

further challenging food availability. By the same token, pastoralists – 

major contributors to food security in parts of Africa – should retain access 

to pastures. Emergency strategic food reserves linked to social protection 

programmes should be monitored and replenished. 

To write off this year’s harvests would be catastrophic. Further: if ever 

there was an opportunity to tackle post-harvest losses by stepping up 

investment in storage facilities and refrigeration, this is it. Low energy 

prices, meanwhile, could offer a historic window for mechanisation. 

Economic forecasts for rich countries suggest GDP could plummet by a 

third in the second quarter of the year. No nation has the luxury to shrug 

off such vertiginous slumps. So tight is the margin separating many of 

Africa’s families from hunger, and so tenuous societies’ defences against 

disaster, that any failure to act at dawn may result in tragedy by dusk. 

In this context, African countries should protect, promote and further 

strengthen interregional trade. 

Mindful of the urgency, FAO, AU agriculture ministers and international 

partners met virtually in mid-April and vowed to minimise disruption 

to Africa’s food system even as they work to contain the pandemic. This 

includes keeping the food and farm trade moving across national frontiers; 

and providing direct support to African citizens – preferably, wherever 

possible, in the form of electronic cash or vouchers. The European Union, 

the World Bank and the African Development Bank all pledged billions of 

US dollars to this effort: this includes both fresh and re-purposed funding 

and technical assistance. 

Our determination stems from experience. The Ebola epidemic caused a 

severe drop in food output across the areas where it raged. With Covid-19, 

that distressing precedent may well be outdone. It is not entirely up to us 

to guard against such a fate. But what is up to us, we must do. 

*Qu Dongyu is Director-General of the Food and Agriculture Organisation (FAO) 

of the United Nations; Josefa Sacko is the African Union Commissioner for Rural 

Economy and Agriculture; Thokozile Didiza is the Minister of Agriculture, Land Reform 

and Rural Development of South Africa and Chair of the African Union Specialised 

Technical Committee on Agriculture 

17

CONSTRUCTION 

Sustainability saves: 

and not just the planet 

BY THE CLAY BRICK ASSOCIATION OF SOUTHERN AFRICA 

Ongoing electricity use is a major expense for property owners. By designing energyefficient 

commercial and residential buildings, it is possible to achieve a lifetime of lower 

operating costs. It also reduces reliance on South Africa’s ageing power grid while increasing 

the property’s investment value. 

A 

recently published thermal performance study gives insight into 

the impact of walling materials on operational energy usage. 

The research assessed five different walling materials across 

South Africa’s seven climate zones. 

“This study gives architects the information they need to make informed 

decisions about walling material specifications,” reports Mariana Lamont, 

Executive Director of the Clay Brick Association of Southern Africa (CBASA). 

“Buildings that are designed to be naturally cooler in summer and warmer 

in winter reduce the need for additional air-conditioning and heating.” 

Annual operational energy is the sum of all heating, cooling and 

ventilation electricity costs accumulated over one year. Measurements for 

the study were based on the residents living in reasonable thermal comfort 

which is between 19˚C and 25˚C. 

The research shows that when it comes to energy efficiency, the top 

performer is a ceramic clay brick cavity wall (preferably with insulation). 

Substantial savings can be realised in almost every energy zone by using 

this construction material. 

The worst energy use in all climate zones is the hollow concrete block. 

The empty spaces built into the block together with the low-density 

material allows both heat and cold to penetrate the wall quickly. There is 

minimal protection against extreme temperatures. 

The CBASA website offers free technical manuals and research on clay 

masonry construction for architects and contractors. 

Proposed regulation targets energy-efficiency 

“As the industry watchdog, CBASA lobbies for energy-efficient building 

standards like the new SANS 10400-XA regulations,” informs Nico Mienie, 

the Association’s technical director. 

The updated walling statistics align with key revisions to the National 

Building Regulations to address thermal performance in walls, floors, 

windows and roofs. Specifically, masonry walling will require some type of 

thermal intervention – either a cavity wall (with or without insulation) or a 

composite wall which must have insulation. 

Cavity walls offer add-on benefits to residents and tenants including 

noise reduction and reduced condensation. “The winter rainfall regions of 

South Africa’s southern and western Cape are particularly susceptible to 

condensation,” says Nico. “This is due to the differential between heated 

indoor air and the icy cold outdoor temperatures. No matter how thick 

the wall or what it is made from, condensation will always be a problem if 

there is only a single walling layer or ‘leaf’. 

“Cavity walls are the answer and have been successfully used since 

the 1800s to naturally insulate buildings in cold, wet climates like the UK, 

Europe and Russia,” Nico concludes. 

Annual electricity use in an average 130m 2 home built with different types of 

walling. In cities like Johannesburg and Pretoria, electricity costs can be 

substantially reduced by designing sustainable buildings that take advantage 

of the insulation benefits of cavity walls. 

What is a cavity wall? 

A cavity wall is composed of two 

masonry walls separated by an 

air space or cavity. The result is 

a watertight, energy-efficient 

masonry structure appropriate 

for external load-bearing walls. 

Between the two masonry 

leaves, the cavity must be a 

minimum width of 50mm and 

consistent from the bottom 

of the wall to the top. The 

cavity can be partly filled with 

insulation which is attached 

to the inner leaf. Insulation 

provides additional thermal 

performance. 

Weep holes provide an exit 

point for water condensing in 

the cavity, or if rain enters through gaps in the roof, window frames or 

masonry. 

For further information: www.claybrick.org 

18

SECURE 

SAVE 

SUSTAIN 

STYLE 

environment-friendly 

THE VOICE OF THE CLAY BRICK INDUSTRY 

CLAYBRICK.ORG 

REAL CLAY BRICK! 

Clay brick is your sustainable walling and paving material for the future. Made from 

organic materials, clay brick stays naturally warm in winter and cool in summer. 

Long-lasting and reusable, ceramic clay brick is impervious to fire and lasts a lifetime. 

CBASA represents clay brick & paver manufacturers across Southern Africa - buy local! 

Free technical and construction guides for clay bricks & pavers at www.claybrick.org 

Promoting Inclusive Sustainable Practices in the South African Clay Brick Sector 

Switch Africa Green 

is funded by the 

European Union

INFRASTRUCTURE 

Why South Africans should get a 

certified green rating 

for their home 

BY GRAHAME QRUICKSHANKS, GBCSA 

What uses 27% of the energy produced in South Africa, 

generates 44% of municipal waste and buys 60% of water and 

sanitation sales? The South African household. 

The GBCSA seeks to reduce the environmental footprint of 

every local household. This bold ambition is remarkably viable, 

especially considering the significant costs of energy, water and 

waste, and the cash savings available through their efficient utilisation. 

The ‘Green Home Rating System for existing buildings’ will look to shift 

South Africa’s homes to align with the UN SDGs and the South African 

National Development Plan (NDP), by creating a common language on 

sustainability in homes to incentivise change at a household level and 

through the supply chain. 

Informed by research stretching the length and breadth of South Africa, 

the GBCSA has created a tool suitable for its households. However, the 

question remains, why would a person get a certified green rating for their 

home, if the savings and efficiencies of solar power or rainwater harvesting 

equipment are the same with or without a certified green rating? The Sow 

and Reap Consortium of industry experts were appointed by the GBCSA to 

complete this rating tool and answer these types of questions. 

Gap in the market 

To assist in assessing the market, the experts localised various SDs 

relevant to South African households and termed them ‘sustainable 

living indicators’. They are water efficiency and security; energy efficiency 

and security; recycling and waste reduction; fresh air; access to fresh 

food; comfortable temperatures; good daylight; responsible materials; 

transport; accessible safe, communities; internet accessibility; affordability 

and access to nature and biodiversity. 

The study results show various factors that help or hinder sustainable 

living and interrogate the market gap for a green home rating tool among 

the products and services supply chain and the real estate sector. These 

informed recommendations for the tool including, the requirement of 

making the rating process a personal one for individual households; 

South African’s high priority towards health and wellbeing; and how 

sustainability indicators can address social challenges. 

Baseline assessment 

Gathered data helped inform the current state and performance of local 

homes to both ensure alignment with targeted impact reduction goals in 

each sector and to identify best practice. 

It became necessary to rate assets and performance separately and 

know exactly what should be measured, and how. Instead of measuring 

litres per second of fresh air or luminosity levels of daylight, the team 

found that simplified survey-type questions can be drawn from bestpractice 

standards to sufficiently assess the home. 

Tool scoping 

Using these lessons, a framework was developed as the basis for the green 

home rating tool, and this informed a scoresheet focusing on utilities, 

health and community to address three spheres within the household: 

behaviour; performance (measuring water, energy and waste); and asset 

improvements (such as insulation). 

As it is likely that a formal certification may only be considered when a 

home is bought or sold, it became important to offer a ‘self-assess’ option 

for those looking to understand and improve the sustainability of their 

home. By individually working through the scoresheet and seeing areas to 

improve households will learn how to better reduce their environmental 

footprint. To formally certify their home, individuals can ask an auditor to 

verify the claims made in the scoresheet questionnaire. 

Market in the gap 

The business case for the rating system is also important and it is 

suggested that a partner and co-branding networks are suitable to pair 

with the GBCSA to make the required impact in the residential sector. The 

marketable ‘green home’ certificate is aimed primarily at the rental and 

ownership transaction stage of homes. 

Private and public sector relevance 

For both private and public sector stakeholders, a clear framework for 

sustainability in homes creates a common language and roadmap. 

Planning, monitoring and forecasting are improved through access to data 

and trends from tens of thousands of households on performance, demand 

and uptake of sustainability in homes. Furthermore, strong marketing 

opportunities exist with access to incentivised, aware householders as well 

as brand association opportunities. 

What’s next? 

The ‘Green Home Rating System for existing buildings’ will look to shift 

South Africa’s homes to align with the UN SDGs and the NDP, by creating 

a common language on sustainability in homes to incentivise change at a 

household level and through the supply chain. 

It is envisaged that the GBCSA would be the operator of the tool, which 

has been developed through funding from the GIZ, and a proposed 

system launch date has been set for 2021. 

To find out more contact the GBCSA: info@gbcsa.org.za or call 

+27 21 486 7900. 

* Grahame Qruickshanks, Green Building Council South Africa Managing Executive: 

Market Engagement 

20

WASTE 

Unique recycling 

programme: 

a boost for BY PETCO 

informal sector 

A recycling programme in Johannesburg is delivering broad-scale results – boosting the 

city’s recycling rates and the number of households which actively recycle, while also 

creating much-needed income opportunities in the informal sector. 

Supported by organisations*, including the national body for 

PET plastic bottle recycling, PETCO, and the African Reclaimers 

Organisation (ARO), work on a pilot programme titled Building an 

Inclusive Circular Economy: Recycling with Reclaimers in Johannesburg 

began in earnest in mid-2019. 

The pilot kickstarted in Auckland Park and Brixton – with more 

areas expected to follow suit on the back of the project’s success. The 

relationship-building initiative follows in the wake of reclaimers’ reports 

that they are often harassed, ignored and misunderstood by residents. 

It began with a survey** of 50 reclaimers participating in the pilot in 

Brixton and Auckland Park to identify the working standards of the city’s 

informal recycling collectors – called ‘reclaimers’ for their work to reclaim 

the value of items which would otherwise end up in landfills. 

Before the survey, PETCO donated 100 000 clear plastic recycling 

collection bags – made from 100% recycled content – to ARO members to 

distribute to residents in their collection areas. 

Among the findings, the survey – which formed part of a baseline study 

– noted that 66% of the reclaimers said that providing households with 

clear plastic bags for recyclables increased the number of agreements they 

had with residents to save recyclable materials for them. 

Further solidifying the reclaimer-resident relationship was a donation 

earlier in March this year of 400 recycling wheelie bins by Safripol – a 

manufacturer of high-density polyethylene, polyethylene terephthalate 

and polypropylene plastic – which reclaimers in Bordeaux handed over 

to residents there. 

“These reclaimers are entrepreneurs and extremely proud of the 

work they do,” said Belinda Booker, PETCO’s collections and training 

project manager. “They are up at 3am and walk long distances to collect 

recyclables. Not having to scratch through bags of general waste means 

they can collect more and earn more, with dignity.” 

A resident, Angela Schaerer, who has been mobilising members of 

the Bordeaux South Residents Association, said many fellow residents 

were not actively separating materials or recycling materials before the 

partnership with the reclaimers was established. 

“Now we have an easy way to do this while supporting industrious 

people who help our environment,” said Schaerer, adding that information 

about the programme was shared via WhatsApp, pamphlets and email 

newsletters and residents were seeing the benefits of a cleaner suburb 

thanks to the initiative. 

“Previously, residents tended to ignore or harass reclaimers. Now people 

greet reclaimers, separate materials for them, provide refreshments, and 

take time to learn more about their work and their personal stories.” 

* The pilot project is being conducted in the Johannesburg suburbs of Brixton and Auckland Park. It is the joint initiative of the African Reclaimers Organisation 

(ARO), Unilever, and the University of the Witwatersrand, with additional support and sponsorship from PETCO, POLYCO, The Glass Recycling Company, Fibre 

Circle, Packaging South Africa, Auckland Park Residents Association, and the Brixton Community Forum. 

** The survey formed part of a baseline study, undertaken from June to November 2019 by Social Survey Africa, looked to establish measures of impact for the 

pilot project which aims to test a new approach to reclaimer integration and separating recyclables at a household level, in which reclaimers are responsible for 

providing a separation service and are paid for doing so. 

FACT BOX: 

Wits University academic Dr Melanie Samson, who has researched waste, reclaimers and recycling for almost two decades, notes that the 

pilot programme is significant for two reasons: 

• It is the first project in South Africa that is developing a mechanism to integrate individual reclaimers. As the majority of reclaimers 

do not want to join cooperatives and according to CSIR 92% of waste cooperatives in South Africa fail, we must find other ways to 

integrate reclaimers. 

• It is the first project in South Africa to pilot paying reclaimers for the collection service that they provide. 

“The baseline study demonstrated that residents are open to working collaboratively with reclaimers to increase separation-at-source 

and improving working conditions for reclaimers. Separation rates can be increased, and separation of plastic bottles can be increased,” 

Samson concludes. 

21

Profile 

Boekenhoutskloof 

prodigy of the renaissance 

BY EMILE JOUBERT 

The South African wine industry may be the oldest outside Europe, with the first Cape wine 

made as far back as 1659. But it is widely assumed that the country’s true potential only 

began coming to the fore in the 1990s as South Africa was re-admitted into the global wine 

world with the advent of democracy in our country. 

During this time of vigorous optimism, the local wine industry 

underwent a renaissance. Vineyard plantings changed from 

traditional grape varieties to those aligned with the demands of 

international wine drinkers, of which there were becoming ever-more. 

New parcels of land, which had never seen a vine before, were identified 

for their viticulture potential and duly planted to vineyards, thus 

opening up the country’s treasure trove of sites geographically suited 

for wine farming. Winemaking styles shifted to fruit-driven finesse and 

accessibility. Older wineries were rejuvenated and new players entered 

the local industry with a sense of energy and optimism. 

The name Boekenhoutskloof has become synonymous with this 

dynamic chapter in the South African wine industry. From modest 

beginnings 25 years ago on an old farm tucked away in the corner of 

the Franschhoek mountains, Boekenhoutskloof has become a visionary 

enterprise as well as a winery committed to a fundamental principle: 

offering consumers around the world a diverse array of exceptional quality 

wines representing the fingerprints of some of South Africa’s most unique 

and revered regions. 

Marc Kent, Technical Director, made the first wines under the Boekenhoutskloof 

label in 1996 following the purchase of the property in 1994. 

Photos by Boekenhoutskloof Winery 

22

Profile 

Marc Kent 

The maiden production was a modest one comprising just 6 000 bottles 

of Cabernet Sauvignon. Current bottlings are pegged at approximately 

7-million bottles, with the original Boekenhoutskloof label now representing 

one of seven brands housed in a prolific South African wine business. 

The primary winery is still set in that beautiful, pristine corner of 

Franschhoek, but Marc and his team have expanded to other areas of 

the Cape winelands. They now own properties in other terroir-expressive 

regions such as the Swartland, Stellenbosch and the Upper Hemel-en- 

Aarde Valley near Hermanus, which has allowed Boekenhoutskloof to 

capture the country’s exciting geographical diversity throughout its 

substantial and varied offering of brands and wines. 

If there is one thing Boekenhoutskloof has shown in this period of 

stratospheric growth, it is the ability to provide a golden thread of premier 

quality throughout its portfolio of diverse brands at various price points. 

This was once again underscored in 2020 when Boekenhoutskloof was 

presented the Editor’s Award: Winery of the Year by leading South African 

wine publication Platter’s Wine Guide, an accolade often synonymous with 

small-scale operations. (Boekenhoutskloof also won this award in 2012.) 

Marc, who brought in the first modest eight tons of grapes for 

Boekenhoutskloof’s maiden 1996 vintage, today oversees a formidable 

team of winemakers and viticulturists. And the founding values still drive 

his involvement. 

“Growth of scale is never going to compromise quality,” says Marc, who 

has the final say in the flavour-profile and structure of each vintage of each 

wine before bottling. “We have a saying that the true quality of the wine 

lies in the second half of the bottle – that’s where customer satisfaction is 

proven. And this is what we consistently strive towards providing.” 

It is this proven customer satisfaction that has led to the success of each 

room in Boekenhoutskloof’s home of brands. The first Boekenhoutslooflabelled 

wines were Cabernet Sauvignon, Semillon and Syrah, the latter 

quickly becoming a cult wine on the South African landscape. However, 

Marc showed an appetite to build the business and convinced his partners 

that there was more to offer than one label. This came in 1997 in the 

form of Porcupine Ridge, bottling single-cultivars including Cabernet 

Sauvignon, Merlot and Sauvignon Blanc, under a more modern lifestyle 

label at modest pricing. 

Having an especial love for the wines of France’s Rhône Valley, where 

Syrah’s perfumed sumptuous-savoury profile drives an array of blended 

wines, Marc oversaw the launch of The Wolftrap blended wines in 2002. 

All the Boekenhoutskloof wines have their own story, taste and appeal. 

But if there is one that can lay to claim to have grabbed the imagination 

as few other South African brands have done, it is The Chocolate Block. 

This began as a blended red Marc made in 2002, which included Syrah 

and other southern French varieties, namely Grenache and Cinsault. These 

23

Profile 

together with some Cabernet Sauvignon to add firmness and presence, 

along with the white variety Viognier, for a perfume element. 

Besides the polished, fruit-forward structure wrapped in a cloak of 

discernible elegance, the wine came in a clean and sophisticated white 

label with distinctive black lettering. As well as depicting the number of 

barrels of The Chocolate Block made in that first year of 2002, namely 15. 

It is one of the few wines truly regarded as an instant success in the 

market. The resonation of the name and refined packaging, together 

with the multi-layered red wine complexity, led to The Chocolate Block 

becoming one of South Africa’s leading premium wine brands. That 

initial 15 barrel-offering has grown to 2 236 barrels made for the current 

2018 vintage. 

Adding to its gravitas and paramount to its continued success is that 

The Chocolate Block is now exclusively crafted from grapes grown in the 

Swartland wine region to the north-west of Cape Town. The constant 

pursuit of quality by which Boekenhoutskloof is guided, resulted in 

the investment in two farms: Porseleinberg in 2009 and Goldmine in 

2014. These providing Marc and his team access to 150 hectares of 

highly esteemed, predominantly Swartland Syrah vineyards. The name 

Porseleinberg is seen on another of Boekenhoutskloof’s successes, namely 

the limited-release Porseleinberg Syrah which is grown and made by 

vigneron Callie Louw. Since its debut 2010 vintage, this wine has been 

sought-after at the premier level of both local and international markets. 

Also in 2009, Boekenhoutskloof purchased Helderberg Winery in 

Stellenbosch, an established co-operative cellar with a history dating back 

to 1906. Besides giving access to premier Stellenbosch fruit, Helderberg 

Winery offers Boekenhoutskloof a second production facility. Not only 

does it serve as the central logistics point for the overall operation, but the 

winery also provides an essential environment for greater quality control. 

More recent developments in the Boekenhoutskloof story include Cap 

Maritime. This brand was established with the 2017 vintage and is committed 

to making Pinot Noir and Chardonnay wines from vineyards in the Upper 

Hemel-en-Aarde Valley, a cool-climate maritime wine region in which these 

Burgundian varieties excel. 2019 saw the introduction of the visually-striking 

Vinologist range of red and white wines, aimed at the growing fashionconscious 

consumer embracing wine as synonymous with their lifestyle. 

The scope of the Boekenhoutskloof enterprise would not be possible 

without certain overriding principles embedded within the ethos of all 

those involved. 

“When we started, I was adamant about not adjusting the chemistry 

of the wines through acidification or altering the pH-levels,” says Marc. 

“There was a natural element in wine I’m convinced added to the quality 

of the final product. I felt that way as a young winemaker starting 

Boekenhoutskloof in 1996, and I feel that way now. And always will, no 

matter what the next chapter is.” 

Just as the wine philosophy centres 

on wines showing the power of the New World 

with the elegance of the Old, so too is Marc’s 

view on the source of the final product. 

Gottfried Mocke 

An interesting fact concerns eggs. Not the vast egg-shaped vessels that 

are today so widely used to ferment and age wine, but the shelled ones 

from chickens. 

“We fine each barrel of wine with two free-range egg-whites,” says Marc. 

“Some may see it as an ode to the way wines were made centuries ago, 

but we believe it is a natural path to the quality and integrity of the 

final product.” 

Expertise in winemaking is prevalent on Boekenhoutskloof. Marc 

was named Diner’s Club Winemaker of the Year in 2007, while his chief 

winemaker Gottfried Mocke won the same accolade in 2006. Both are 

members of the prestigious Cape Winemakers Guild. 

The winemakers are very aware that it all begins in the vineyard. “The 14 

hectares of vines on the original Boekenhoutskloof farm in Franschhoek 

are farmed organically,” says Marc, “which can be tricky seeing that the 

farm lies in the second wettest region of South Africa with an average 

annual rainfall of 2 500mm. But we are committed, as I truly believe the 

quality of the grapes shows in the wines.” 

Marc says the effects of respecting the relationship with the environment 

are seen not only in the characteristic of the wines. “Over the past 15 

years, we have experienced a tremendous increase in the natural life on 

Boekenhoutskloof. Cape leopard, otters and raptors, including fish eagle, 

are now more active in the surrounds than ever. The forests, including 

the Cape beechwood (boekenhout) are pristine. As winemakers, we are 

custodians of something far wider than our vines and wines, and respect 

for one adds to the appreciation of the other.” 

Just as the wine philosophy centres on wines showing the power 

of the New World with the elegance of the Old, so too is Marc’s view on 

the source of the final product. “No matter where Boekenhoutskloof has 

invested in properties – Franschhoek, the Swartland, Stellenbosch, Upper 

Hemel-en-Aarde Valley – our commitment is to leave the lands in a better 

way than we found them. It means farming with minimal intervention and 

respect for the environment, which is non-negotiable. As a wine producer, 

you are at one with nature.” 

24

Stand Out with 

Sustained Savings 

Become more competitive 

by lowering costs through 

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usage and waste management 

Steps to realising resource savings: 

Step 1 | Asses 

Allow the NCPC-SA to assess your company’s resource 

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Step 2 | Sign up 

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THA 05-2020 

Pretoria: +27 12 841 3772 

Email: ncpc@csir.co.za 

Website: www.ncpc.co.za 

The NCPC-SA is a national programme that 

promotes the uptake and implementation of 

resource efficient and cleaner production (RECP).

Green Economy Journal Issue 40

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