Service - Leadership in Government - Issue 76

Service
L E A D E R S H I P I N G O V E R N M E N T
ISSUE 76
MAR-MAY 2021
THE GOLDEN AGE OF TECHNOLOGY
IS COMING. IS YOUR JOB AT RISK?
SPECIAL ECONOMIC ZONES:
SBOOSTING P E C I A L INDUSTRIAL
ECONOMIC
DEVELOPMENT
ZONES:
BOOSTING
INDUSTRIAL
DEVELOPMENT
TACKLING POVERTY
AND INEQUALITY
KNOWLEDGE IS POWER.
EXPERIENCE IS REQUIRED
SHAPING SOUTH AFRICA’S
FOREIGN POLICY
GAS DISCOVERIES WILL
FUEL THE ECONOMY

The CEO
with a c l e a r
vision of the
future
Thabani Msibi, CEO of
3Sixty Client Solutions,
leads an entity that
is part of a diverse
group of companies
with a purpose-driven
culture that cultivates
an environment where
perspectives are
wider and insights
deep-seated.
Therein lies all the
creativity, innovation
and ingenuity needed
to problem-solve in
an ever-changing
environment.
Established in 2010, 3Sixty Client Solutions is a financial services provider registered
with FSCA and CMS, and a client services company comprising of 3Sixty Connect,
3Sixty Loyalty, 3Sixty Insure and 3Sixty Payment Solutions. Positioned to be a onestop
shop that is data-centric and technologically savvy, 3Sixty Client Solutions
continues to evolve by providing solution-based products in the life, short-term, retail
pension and retirement benefits.
Over the past 15 years Msibi has occupied various senior and executive positions at
BIDVest Panalpina Logistics, Compass Group PLC, Tsebo Group, Liberty and 3Sixty
Life and served various boards. This has propelled him to explore business ventures
in Africa and Asia and has successfully set up businesses that operate to this day.
Thabani Msibi, CEO of 3Sixty Client Solutions,
a division of 3Sixty Global Solutions.
Msibi has also ticked all the traditional boxes of career success after achieving:
a Bachelor of Commerce (Acc) from University of Zululand, Honours in Accountancy
from University of KwaZulu-Natal, a Post-Graduate Diploma in Management Practice
from Henley Business School and an MBA from University of KwaZulu-Natal
(Graduate School of Business and Leadership).
In 2018 and 2019 respectively, Msibi was appointed as COO and CEO of 3Sixty Life,
which was a major coup for the inspirational executive, allowing him to achieve his
personal goal of becoming a CEO by the age of 37. The benefit of his age means he
is not tied down in the grip of a bygone era but has the benefit of its wisdom because
of the company he keeps.
Msibi learned about technology and innovation through working with multiple
software systems and is directly involved in developing, reengineering, integration
and data migration. This allows him to develop skills at a rate that exceeds most of
his contemporaries.
CLIENT SOLUTIONS
He is also a founder of MEN TALK, a forum that seeks to empower and build men
of all walks of life. Msibi’s commitment to continuous development of self and others
around him is something he has developed a reputation for. S

contents
S
IN THIS ISSUE | SERVICE, ISSUE 76, MAR-MAY 2021
SERVE AND DELIVER
A round-up of news, snippets and trends
GAS DISCOVERIES WILL FUEL THE ECONOMY
Major steps have been taken in the creation
of a South African gas market
IN THE ZONE: DISTRICTS OF DEVELOPMENT
Service magazine takes a look at each of the
11 Special Economic Zones in South Africa
4
HOW VALUES, INTEREST AND POWER MUST
SHAPE OUR FOREIGN POLICY
South Africa should formulate a foreign
policy that responds to a changing world
8
SA HAS FAILED TO HARNESS
THE DIGITAL REVOLUTION
Developing universally accessible data
and digital public infrastructure
10
THE GOLDEN AGE OF TECH IS COMING
Be warned! There are major socio-economic
challenges ahead
18
TACKLING POVERTY AND INEQUALITY
Do the country’s laws show exactly
how social exclusion is challenged?
22
KNOWLEDGE IS POWER.
EXPERIENCE IS REQUIRED
The 2021 Critical Skills List reveals South
Africa’s skills in shortage
24
26
28
Service magazine | 1

S
editor’s note
Serving the nation
It was in his inaugural address that President Kennedy made his
famous call to service: “Ask not what your country can do for you,
ask what you can do for your country.” Service is defined as the
contribution to the welfare of others (Merriam-Webster Dictionary).
Research shows that serving others results in a stronger sense of
purpose and that we are at our best when we help others.
Martin Luther King said, “Make a career of humanity – and you
will make a greater person of yourself, a greater nation of your
country and a finer world to live in.” Service has the power to bridge
divides and to unite people in meeting our nation’s challenges. By
serving humanity, we serve our nation.
“There is no greater challenge and there is no greater honour
than to be in public service,” says Condoleezza Rice.
In this issue, we look at what the country has done for us, as
we delve into the status of the Special Economic Zones (SEZ)
programme on page 10 – expected to play a substantial role in
supporting the country’s recovery plan. SEZs are at the core of the
reimagined industrial strategy, which is purposefully structured to
stimulate investment.
The SEZs are found in local, district or metropolitan municipalities
and to succeed, municipalities must be a part of their execution. As
such, the local government sector is serving our nation.
Growing global uncertainty regarding pandemics, technology
and climate change, poverty, inequality and insecurity are driving
countries to serve their national interest by revisiting their foreign
policies. Values, interest and power should shape South Africa’s
policy (page 18).
Policy goes some way to tackling poverty and inequality, but more
is needed (page 26). The pandemic has caused a sharp decline in
growth and a significant increase in unemployment. Job creation
relies on the economic growth of a country. The government has
drafted a Critical Skills List containing a list of skills that South
Africa needs to attract to grow our economy and in turn create more
job opportunities for all (page 28). Let’s work with our government
in building a strong nation. Let’s serve South Africa.
All that remains is to leave you with another great issue of Service
and these words from Nelson Mandela: “Whether you change the
linen or stitch up wounds, cook the food or dispense the medicines,
it is in your hands to help build a public service worthy of all those
who gave their lives for the dream of democracy.”
Alexis Knipe
Editor
“There is no greater challenge and there
is no greater honour than to be in public
service.” – Condoleezza Rice
Editor: Alexis Knipe | Publishing director: Chris Whales | Managing director: Clive During | Online editor: Christoff Scholtz | Design: Simon Lewis
Production: Aneeqah Solomon | Ad sales: Venesia Fowler, Tennyson Naidoo, Tahlia Wyngaard, Norman Robson and Tanya Duthie
Administration & accounts: Charlene Steynberg, Kathy Wootton | Distribution & circulation manager: Edward MacDonald | Printing: FA Print
Service magazine is published by Global Africa Network Media (Pty) Ltd | Company Registration No: 2004/004982/07
Directors: Clive During, Chris Whales | Physical address: 28 Main Road, Rondebosch 7700 | Postal: PO Box 292, Newlands 7701
Tel: +27 21 657 6200 | Email: info@gan.co.za | Website: www.gan.co.za
No portion of this book may be reproduced without written consent of the copyright owner. The opinions expressed are not necessarily those of
Service magazine, nor the publisher, none of whom accept liability of any nature arising out of, or in
connection with, the contents of this book. The publishers would like to express thanks to those who
Support this publication by their submission of articles and with their advertising. All rights reserved.
2 | Service magazine

SMME VIRTUAL
ROADSHOW
PRACTICAL AND USEFUL
INFORMATION ON SMALL,
MEDIUM AND MICRO-BUSINESS
IN SOUTH AFRICA.
TO REGISTER:
Visit www.gan.co.za
and then SMME Virtual
Roadshow
ABOUT GLOBAL AFRICA NETWORK
Global Africa Network Media (GAN) is an established
authority on business development in South
Africa’s nine provinces. GAN’s online products
include its well-established B2B portal, www.
globalafricanetwork.com, and its monthly business
and investment e-newsletters, with a reach of over
53 000 subscribers.
Each of the nine titles and the national journal,
South African Business, has been utilised by all
levels of government, parastatals, corporates,
and national and provincial businesses. GAN is a
specialist in small and developing business, and the
company is a trusted partner of business chambers
and other representatives of organised business in
each province.
For information on sponsorship opportunities, email
info@gan.co.za
Since 2014, the SMME Roadshow has supported small
business in South Africa. Following the unprecedented
challenges of 2020, Global Africa Network is relaunching
the SMME Since Roadshow 2014, the SMME in a fully Roadshow virtual, nationwide has supported format. small
business in South Africa. Following the unprecedented
challenges of 2020, Global Africa Network is relaunching
The SMME Virtual Roadshow, brought to you by Global
the SMME Roadshow in a fully virtual, nationwide format.
Africa Network Media with Nemesis Accounting, SME
Warrior and Aurum Wealth Creators, takes the form of
The SMME Virtual Roadshow, brought to you by Global
presentations
Africa Network
and practical
Media with
guidance
Nemesis Accounting,
from thought
SME
leaders Warrior and Since experts and
2014,
Aurum in the their SMME
Wealth fields. Roadshow
Creators,
has
takes
supported
the
small
form of
business in South Africa. Following the unprecedented
presentations
challenges
and
of 2020,
practical
Global Africa
guidance
Network is
from
relaunching
thought
Presentations leaders the and are SMME pre-recorded experts Roadshow in their in for a fully fields. quality virtual, and nationwide convenience format.
and presenters and their teams will be on hand to engage
and interact Presentations
The
with
SMME
delegates. are
Virtual
pre-recorded
Roadshow,
Delegates for
brought
quality will
to
also and
you
be convenience
by Global
able to
Africa Network Media with Nemesis Accounting, SME
network and with presenters
Warrior other and delegates. and
Aurum
their
Wealth
teams
Creators,
will be on
takes
hand
the form
to engage
of
and interact presentations with delegates. and practical Delegates guidance will from also thought be able to
Who network leaders
should with attend? other and experts delegates. in their fields.
SMMEs requiring Presentations support are pre-recorded and guidance for quality on and the convenience following
topics
Who
should
should
and attend: presenters
attend?
and their teams will be on hand to engage
SMMEs and requiring interact with support delegates. and Delegates guidance will on also the be able following to
topics should network with attend: other delegates.
• Access to funding
• Access to Who markets should attend?
• Access
SMMEs
to
requiring
fundingsupport and guidance on the following
• Business • Access revival
topics to should markets attend:
• Training • Business and skills revival development
• Compliance • Training
• Access and regulatory skills
funding
development
• Access to markets
• Technology • Compliance support
• Business
and
revival
regulatory
• Running • Technology • a business
Training support and skills development
• Running • Compliance a business and regulatory
• Technology support
Each of South Africa’s nine provinces will be represented at
• Running a business
the Roadshow, Each of South and Africa’s will showcase nine provinces incentives, will be services represented and at
opportunities the Roadshow, Each available of South and to Africa’s will SMMEs. showcase nine provinces incentives, will be represented services at and
opportunities the Roadshow, available and to will SMMEs. showcase incentives, services and
opportunities available to SMMEs.

S
snippets
SERVE AND DELIVER
MINISTER BARBARA CREECY LAUNCHES
NATIONALLY DETERMINED CONTRIBUTION
The Minister of Forestry, Fisheries and the Environment launched South
Africa’s updated draft Nationally Determined Contribution (NDC). The
NDC, South Africa’s climate change response, was approved by Cabinet
in March 2021 to be released for public comment.
It is South Africa’s commitment in terms of United Nations Framework
Convention on Climate Change (UNFCCC) and its Paris Agreement to
contribute to the global climate change effort. The UNFCCC has found
that the current global effort is not sufficient to
avoid dangerous climate change, and all countries
agree that more needs to be done, faster.
The updated mitigation NDC proposes a
significant reduction in greenhouse gas (GHG)
emissions target ranges up to 2030, with
the 2025 target range allowing time to fully
implement the national mitigation system,
including those elements contained in the
Climate Change Bill. It will also allow space for
the implementation of IRP 2019 and other key
policies and measures, as well as the national
recovery from Covid-19.
Minister Barbara Creecy
EMPOWERMENT CAPITAL CLOSES R200M
IN START-UP DEALS
Empowerment Capital and its investment funds – Andzani Ventures,
Imvelo Ventures and Thuthuka Nathi Ventures – placed a total of
R162-million into 13 South African start-ups between July 2019 and
February 2021. All the Empowerment Capital funds promote
commercial investments into the SMME sector and are conducted in
the true spirit of transformation, empowerment and nation-building.
The company has pioneered mutually beneficial long-term equity
investments in the SMME sector as a form of sustainable and
impactful enterprise and supplier development with its corporate
partners Sappi, Capitec Bank, Shoprite Checkers and others.
“We looked for investees with strong leadership
teams that offered our corporate partners attractive
investment opportunities which we believe are able to
drive inclusive growth in the South African economy
through solutions that address the current challenges
faced by consumers and society,” said Anton Baumann,
Executive Director at Empowerment Capital.
“If you are aligned to long-term growth of our
economy and nation-building, there should be no
question of your ability to generate substantial returns on
your capital. We believe that the venture capital market
in South Africa will be led by corporates offering market
access in an all-inclusive manner, thereby achieving a
combination of commercial returns and social impact
which is our purpose as a company,” said Baumann.
CENSUS ON MUNICIPALITIES: GOOD AND BAD NEWS
The Statistics South Africa (StatsSA) 2019 non-financial census on
municipalities (NFCM) report, which highlights that more people are
gaining access to basic service delivery, has been welcomed by the
South African Local Government Association (SALGA).
The NFCM, which measures selected aspects of
service delivery, including water, electricity, solid
waste management, sewerage and sanitation,
has shown that local government in South Africa
is making meaningful progress in delivering basic
services to the communities they serve.
The report has shown that municipal bucket toilet
use continues to decline, and municipalities are
providing more water, sanitation, waste removal,
and electricity services. As the national voice of
local government in South Africa, SALGA is pleased
to have observed that there has been a steady
decline in the number of bucket toilets supplied by
municipalities, from about 81 057 in 2015 to about 42 434
in 2019. This represents a 47.6% decrease.
In terms of basic services, the number of consumer units receiving the
four basic services (water, electricity, sewage and sanitation and solid
waste management) has gone up from 2018 to 2019. For the period under
review, the highest percentage increase was recorded in the provision
of sewerage and sanitation (7.6%), followed by solid waste management
(5.8%), water (5.2%) and electricity (4.2%).
SALGA also calls for the greater inclusion
of women in local government. The report’s
examination of the municipal workforce, on
gender representation across various levels
of management, shows that gender inequality
persists in the sector.
The report revealed that in 2019, 254 of South
Africa’s 257 municipalities had a sitting mayor.
Of these, 90 (35%) were female and 164 (65%) were
male. In addition, 71% of section 56 managers
were male and only 29% were female.
This paints a worrisome picture, and it indicates
that the participation of women in local government
decision-making on an equal footing to men, is still a long way off. Greater
efforts have to be made in order for women to play a full and active role in
the sector and local government, because of its proximity to the daily lives
of people, must be at the forefront of that task.
4 | Service magazine

snippets
S
SCIENCE AND INNOVATION INVESTS IN MARITIME
The Department of Science and Innovation has invested R18.9-million in the
development of two nanosatellites, towards increased maritime domain awareness
in South Africa. It is the first such initiative for the country to provide communication
services to the maritime industry. The funding was channelled through the
Technology Innovation Agency (TIA), an entity of the DSI, to the Cape Peninsula
University of Technology (CPUT). The university has demonstrated advanced
technological capabilities in the country’s space industry.
South Africa needs a more strategic approach to ensure optimal surveillance
of the waters off its coast, as well as shipping movements within the country’s
exclusive economic zone. In the South African context, the space industry
ecosystem – including supporting space engineering programmes, human capacity
development, infrastructure investments and technological innovations – is part of
the high-end infrastructure sectors that are critical to economic recovery.
SA TOP-NOTCH ENGENDER DIVERSITY
South Africa has the most gender diverse parliament
with a gender representation of 44% female MPs.
The gender quota system, in place in its early form
since 1994, undoubtedly helped by a forward-thinking
attitude towards gender diversity, explains why South
Africa takes the lead in the public sector.
% Female government representation by country
South Africa 44%
Spain 42%
Australia 38%
France 37%
UK 34%
Germany 33%
Singapore 30%
US 27%
India 14%
GOVERNMENT’S PLAN TO SAVE SA
National Treasury has published its updated Operation Vulindlela plan, detailing the
government’s strategy to boost the economy. Operation Vulindlela is a joint initiative of
the Presidency and National Treasury through which ministers, departments and entities
implement structural reforms. Operation Vulindlela and the Department of Mineral
Resources and Energy are working to establish additional generation capacity to reduce
the risk of loadshedding and enable economic growth. The unit is focusing on the delivery
of broadband and fibre infrastructure to low-income neighbourhoods.
Operation Vulindlela is working with the Departments of Transport and Public
Enterprises as well as Transnet to ensure that corporatisation of the National Ports
Authority is implemented in a manner that protects Transnet’s financial position and
operational performance. Reducing costs and improving the efficiency of South Africa’s
ports is seen as crucial to the competitiveness of our exports and the overall functioning
of the economy.
Another area of focus is to implement the commercial separation of operations and
rail infrastructure, which will enable third-party access to the freight rail network. South
Africa’s approach to critical skills and general work visas should be designed to attract
the skills that are needed for the economy to grow. In addition to the publication of a
revised critical skills list, Operation Vulindlela is supporting a comprehensive review of the
framework for issuing work permits.
WESTERN CAPE ECONOMIC DEVELOPMENT
WELCOMES RMIPPPP ANNOUNCEMENT
The Western Cape Department of Economic
Development applauds the announcement made
by the Minister of Mineral Resources and Energy,
Gwede Mantashe, of the preferred bidders for
the Risk Mitigation IPP Procurement Programme
(RMIPPPP) and the release of Renewable Energy IPP
Procurement Programme (REIPPPP) Bid Window 5.
The opening of REIPPPP Bid Window 5 will
allow 2 600MW of wind and solar to be procured
and, together with subsequent bid windows, will
be a critical step in South Africa’s energy
transition towards a greener energy future.
The opening of Bid Window 5 will give rise
to further investment in green economy
infrastructure, including in the Green
Tech focused Atlantis Special Economic Zone,
which will boost job creation and economic
growth in the Western Cape.
Service magazine | 5

S
technology
Sanitising light technology:
Busting the myths
Workplace hygiene has always been important, and in the age of Covid-19 the world is paying
more attention to what we lay our hands on – and what we may be transporting on them. It’s
been a bumper year for germicidal soaps, sprays and sanitisers, as homes and workplaces
do their utmost to prevent the virus from spreading into their communities. It’s also no
surprise that other, more innovative ways of disinfection are popping up more and more.
You may have seen UV light being used as a sanitiser even before the
pandemic – perhaps being used to clean tools or as part of a cellphonesanitising
gadget. You’ve also probably been told that UV rays of
the type generated by the sun and tanning beds can be dangerous,
damaging our DNA and prematurely ageing our skin and eyes.
So, it’s too dangerous to use on people, right?
Not at all. What’s important to remember is that not all wavelengths of
UV light are created equal. The sun emits a wide range of ultraviolet
wavelengths, including those we know to be damaging to our health.
UVC is among these, but unlike UVA and UVB rays, UVC light is
prevented from reaching the earth by our ozone layer, which acts to
filter it out. Filtered far-UVC light is considered safe for humans, as its
wavelengths of 222nm are too short to penetrate human skin or eyes.
If it is so safe, how do we know it’s still effective against Covid-19?
UVC is also known as germicidal UV and includes wavelengths from
200-280nm. This form of UV sterilisation has been in use for decades
in applications such as water treatment and surface disinfection. The
great news is that filtered far-UVC falls into this spectrum and is
therefore both extremely effective against pathogens and harmless to
humans. Research released by the US Food & Drug Administration
suggests that filtered far-UVC effectively destroys the outer protein
of airborne coronaviruses without the same risk of skin damage that
typical UV light poses.
Surely there are other side-effects of being under filtered far-UVC light
for extended periods?
Though it’s often associated with a trademark purple glow, UV light,
including filtered far-UVC, is invisible to the human eye, and won’t
bother employees in the workplace. As we’ve already mentioned, this
wavelength cannot penetrate further than the very outer surface of
the skin and eyes, with extensive testing proving it safe for regular use
in sanitising a wide variety of traffic-heavy locations.
It’s probably expensive to run, right?
Generating filtered far-UVC light is essentially very similar to how any
other fluorescent bulbs work and are equally economical. Fluorescent
bulbs produce less heat than incandescent bulbs and are therefore
much more energy efficient – up to six times more efficient, in fact.
Is it safe for animals?
Absolutely! This technology has been confirmed as harmless to
animals and is even being used to control the spread of Covid-19 in
hygiene-intensive animal environments like vets and more.
The bottom line
No matter how carefully we may sanitise our hands or clean our
surfaces, the new normal we all face as a civilisation is going to require
some serious innovation to make many of our public spaces safe again
– not only from Covid-19, but influenza, airborne fungi, and other
pathogens we encounter on a daily basis.
In places where constant spritzing and spraying are simply not
possible, filtered far-UVC sanitising light technology is showing
amazing promise as a highly effective and non-invasive alternative
that may help us get back to normal much sooner. S
6 | Service magazine

Brings you ground-breaking
human safe FAR UVC
sanitation technology.
Proven to kill all pathogens incl COVID-19.
Our connect and forget technology with
motion sensors ensures easy installation and
minimal maintenance.
Together with the two primary methods for
minimising exposure to airborne diseases
(including COVID-19) – wearing a mask and
social distancing, far-UVC has been proven to
effectively sanitise air and indoor surfaces.
Autonomous, continuous sanitation at the
point of contamination!
Brings you ground-b
human safe FAR UVC
sanitation technolog
Proven to kill all pathogens incl C
Our connect and forget technolog
motion sensors ensures easy ins
minimal maintenance.
Together with the two primary me
minimising exposure to airborne
(including COVID-19) – wearing a
For more information on FAR UVC AFRICA and this immediately available and highly cost-effective social distancing, solution. far-UVC has be
Please visit www.faruvcafrica.com or contact: 082 578 3755
effectively sanitise air and indoor
Autonomous, continuous sanitati

S
oil and gas
Gas discoveries
will fuel the
economy
Recent gas discoveries off the coasts of
Mozambique and South Africa stand to make
the benefits of the Oceans Economy very
real for the coastal province’s residents.
The Oceans Economy is part of the nationally-driven Operation
Phakisa, a focused, goal-oriented jump-starting of a specific economic
sector. Operation Phakisa intends creating a million jobs by 2033 and
injecting R177-billion into the national GDP.
Major steps have been taken in the creation of a South African
gas market with two major discoveries off the South African coast
near Mossel Bay. Says the CEO of Petroleum Agency SA, Dr Phindile
Masangane, “The recent discovery by Total and its JV partners in
Block 11B/12B (Brulpadda) is the first giant step in that direction.”
Odfjell’s Deepsea Stavanger semi-submersible oil rig relocated from
Norway to South Africa in June 2020 to start exploratory drilling at
the Brulpadda site. Having found good quantities of light oil and gas
condensate at Brulpadda, the team returned in October to drill at
another site called Luiperd – and found even more gas reserves.
With this find, Total and its partners acquired important data on
the Paddavissie fairway, which will help to progress development
studies and to engage with South African authorities regarding the
possible conditions of gas commercialisation.
PASA plays an important role in developing
South Africa’s gas market by attracting qualified
and competent companies to explore for gas.
Western Cape Finance and Economic Opportunities MEC David
Maynier welcomed the announcement, confirming that the drilling
campaign could see up to R1.5-billion invested in the economy.
“This includes a number of initiatives to create opportunities for
employment and skills development in the local economy in South
Africa,” Maynier said.
The detection of the large gas volumes has the potential to ease the
country’s security of supply concerns. Early reports suggest that Luiperd
might have gas reserves twice as plentiful as the earlier discovery,
although they are similar in terms of the liquids’ gas mix.
8 | Service magazine

oil and gas
S
Opportunities for gas lie in the
realisation of South Africa’s National
Development Plan (NDP) and the
Integrated Resource Plan (IRP).
The exploration drilling is in deep waters similar to where the
gigantic Mozambique Rovuma Basin gas discoveries were made
in 2010. The drilling campaign has long-term benefits to South
Africa which include introducing frontier deep-water exploration
drilling, building confidence and potentially shifting petroleum
exploration activities to private international oil companies
(IOCs), de-risking deep-water acreage which is believed to be
prospective for large oil and gas resources.
There is potential for gas to be sent by undersea pipeline
to Mossel Bay and to support the country’s switch from coal.
“Further development of the discovery is highly dependent on
the success of this drilling,” comments Dr Masangane. “Possible
development could see condensate being piped to the PetroSA
facility in Mossel Bay,” she adds, “but these decisions are
ultimately up to the operator, Total and its partners.”
Africa Energy holds a 4.9% effective interest in the Exploration
Right for Block 11B/12B. The company owns 49% of the shares
in Main Street 1549 Proprietary Limited, which has a 10%
participating interest in the block. Total as operator holds a 45%
participating interest in Block 11B/12B, while Qatar Petroleum
(25%) and CNRI (20%) are the other participants. S
Follow PASA on Twitter – @sa_petroleum.
PROFILE: PETROLEUM AGENCY SA
Petroleum Agency SA has successfully attracted major explorers to
South Africa and facilitated the acquisition of many new large seismic
surveys and some exploratory drilling, through a period affected by legislative
issues and a major oil price crash. The company has grown from an organisation
of about 25 staff members to 85 today and is held in extremely high regard by the local
and international oil and gas industry that it serves.
PASA evaluates, promotes and regulates oil and gas exploration and production
activities in South Africa and archives all relevant geotechnical data. The Agency acts
as an advisor to the government and carries out special projects at the request of the
Minister of Mineral Resources and Energy.
South Africa’s energy mix is changing to include more gas through importing
liquefied natural gas (LNG), using shale gas if reserves prove commercial, and developing
infrastructure for the import of LNG. The Agency is actively involved in shaping the new
stand-alone upstream legislation and in guiding government with its decisions regarding
the possible exploration for shale gas.
PASA plays an important role in developing South Africa’s gas market by attracting
qualified and competent companies to explore for gas. Another major focus is increasing
the inclusion of historically disadvantaged South African-owned entities in the upstream.
Currently, natural gas supplies just 3% of South Africa’s primary energy. A significant
challenge facing the development of a major gas market is the dominance of coal.
Opportunities for gas lie in the realisation of South Africa’s National Development Plan
(NDP) and the Integrated Resource Plan (IRP).
“PASA’s challenge is to ensure that both international and local energy companies see
this value proposition with South Africa and choose our country. In this low oil and gas
price environment, companies are inclined to cut back on capital investments and we
need to partner with them to sustain the momentum,” says Dr Masangane.
71 SOUTH AFRICAN BUSINESS 2019
PASA’S NEW CEO
Dr Phindile Masangane was appointed as
the CEO of the South African upstream
oil and gas regulatory authority,
Petroleum Agency South Africa, in May
2020. Before then, Dr Masangane was
an executive at the South African stateowned
energy company, CEF (SOC) Ltd,
which is the holding company of PASA.
Dr Masangane was responsible for
clean, renewable and alternative energy
projects. In partnership with private
companies, she led the development
of energy projects including the deal
structuring, project economic modelling
and financing on behalf of the CEF Group
of Companies. Her responsibilities also
included supporting the national
government in developing energy policy
and regulations for diversifying the
country’s energy mix.
In 2019, Dr Masangane was Head
of Strategy for the CEF Group of
Companies where she led the
development of the group’s long-term
strategic plan, Vision 2040+ as well as
the group’s gas strategy.
From 2010 to 2013, Dr Masangane
was a partner and director at KPMG,
responsible for the Energy Advisory
Division. She successfully led the capital
raising of $2-billion for hydro and coal
power plants expansion programmes
of the Zimbabwean power utility,
ZESA/ZPC.
An alumnus of three universities,
Dr Masangane has a BSc (mathematics
and chemistry) from the University of
Swaziland, a PhD in Chemistry from
Imperial College, London and an MBA
from the University of the Witwatersrand.
Dr Phindile Masangane,
CEO of PASA
Service

S
economy
In the zone:
districts of
development
Building the Coega IDZ (1998 to 2005)
The Special Economic Zone programme
is a mechanism used by the government
to attract foreign direct and domestic
investments, integrate local firms into global
value chains, increase exports, develop
local industrial capabilities, accelerate the
beneficiation of natural resource endowments,
fast-track the development of the country’s
lagging regions and create decent jobs.
Special Economic Zones (SEZs) are defined as
geographically designated areas of a country that are
set aside for specifically targeted economic activities
and supported through specific arrangements and
systems that are often different from those that apply
to the rest of the country.
Our SEZs, which are informed by the South African
government’s National Development Plan and Industrial
Policy Action Plan, are strategic instruments to deepen
industrialisation. They do this by encouraging the
beneficiation of available resources and offering a
range of advantages to enterprises through incentives
and services that are supported by national, provincial
and local governments.
Incentives include tax breaks from the South
African Revenue Service, subsidised interest rates
from the Industrial Development Corporation,
subsidies for employees earning below a certain
level, training grants from the Department of Trade,
Industry and Competition (dtic) and discounts from
national electricity utility Eskom. The SEZ is also a
customs-controlled area. The SEZs are located in a
municipality and for the SEZ programme to succeed,
municipalities must be part of the planning, design
and implementation of these spatial development
catalysts. The local government sector is, therefore, an
important stakeholder in the drive to build sustainable
and successful SEZs.
To date, there are 11 approved SEZs in seven
provinces; the latest one is Tshwane Automotive SEZ,
launched by President Cyril Ramaphosa in 2019.
Coega and Dube TradePort SEZs are at the forefront
of sustaining growth in investment attraction. The
SEZ programme has attracted 234 investors with an
estimated value of over R61-billion.
There are five additional proposals that the dtic is
surveying in partnership with provinces. They include
the Bojanala SEZ (North West Province); Namakwa
SEZ (Northern Cape); Vaal SEZ (Gauteng); Tubatse SEZ
(Limpopo) and Wild Coast SEZ (Eastern Cape).
___ __
“With the introduction
of a much broader
SEZ programme, more
areas of strategic
economic potential can
be leveraged to attract
foreign direct investment.
The most pertinent
outcome envisaged by
the SEZ programme is
the expansion of the
manufacturing sector and
the creation of additional
industrial hubs to regionally
diversify the national
industrial base.”
Dr Rob Davies, Minister
of Trade and Industry
of South Africa from
2009 to 2019. No. 34968
Government Gazette,
23 January 2012
“The Special Economic Zones programme is expected to play a significant role in
supporting the implementation of the country’s economic and recovery plan. This is
since the SEZ programme is at the core of the reimagined industrial strategy, which
is purposefully structured to stimulate local and foreign direct investments.
The SEZs are also going to play an important role in the African Continental Free
Trade Area as we position our country to become a vibrant manufacturing hub of
the African continent.
“It is only through cooperation at national, provincial and local government levels
that we can successfully build an inclusive economy. Inter-governmental relations,
both horizontally and vertically, are important in us achieving the set objectives of
the reimagined industrial strategy. The efforts of pursuing a coordinated framework
through the district development model approach has presented an opportunity for the
creation of a balance ecosystem for an integrated development.”
Deputy Minister of Trade, Industry and Competition, Fikile Majola on SEZs,
16 March 2021
“Our President has directed us to work as one government focusing
on rolling out a new integrated Khawuleza district-based approach
to address our service delivery and local economic development
challenges. The district development model is designed to turn plans
into action because we have listened to our people’s concerns about
lack of implementation. The district development model means that all
departments throughout the three spheres of government, all entities
and agencies must have one plan and one budget to drive government’s
priorities. The President has been clear with us, government must
move away from working in silos to a collective and coordinated
approach. Inclusive economic growth remains vital. It is therefore
imperative to find ways to align the SEZ programme with other key
government programmes.”
Deputy Minister of Trade, Industry and Competition, Fikile Majola on
SEZs Policy and Strategy Dialogue, 25 February 2021
10 | Service magazine

economy
S
___ __
TARGET SECTORS
• Automotive
• Renewable energy
• Agri-processing
• Aquaculture
• Chemical engineering
• Pharmaceutical
• Copper and steel
• Business Process
Outsourcing
COEGA SEZ (EASTERN CAPE)
The Coega SEZ, located in the Nelson Mandela Bay
Metropolitan Municipality, is South Africa’s foremost
investment hotspot for industries with a global
perspective. South Africa’s Industrial Policy Action
Plan (IPAP) has included the Coega SEZ in the drive to
increase manufacturing production and beneficiation
in our country.
Developed and managed by the Coega Development
Corporation (CDC), this multi-billion-rand project
aims to drive local and foreign investments in exportoriented
industries – positioning South Africa as the hub
of Southern African trade. The SEZ was deliberately
established near Port of Ngqura, a deep-water port that
provides a vital conduit for our value-added products to
the world and African continent.
“Transnet has committed to invest in the East London Port to grow volumes and expand the
capacity of the port. They will deepen and widen the entrance channel to accommodate larger
vessels. This will enable the port to support the city’s positioning as a manufacturing hub
anchored by a strong automotive sector. This commitment will cater for the continuous growth
of export volumes by Mercedes-Benz SA in the next three years.
“We welcome the R16-billion investment by Ford in South Africa. Transnet will invest in the
extension and the upgrade of the SouthCor rail corridor, which will realise the high logistics rail
corridor for the movement of goods between Gauteng and Nelson Mandela Bay. Working with
Transnet we are going to turn the Port of Port Elizabeth into a mixed-use precinct anchored
by the waterfront development. By the end of December 2021, the Manganese terminal will be
relocated to the Port of Ngqura. Transnet will also initiate a process to identify a cargo owning
equity partner for the Transnet Port Terminals at Ngqura to drive the trans-shipment strategy
on volume uplift from Asia, specifically China.
“Our province has already initiated consultations with the secretariat of the AfCFTA to
ensure that the competitive advantages which our province has in the agricultural sector,
automotive sector and the Oceans Economy are fully integrated into the African economy.”
State of the Province Address by Premier Lubabalo Mabuyane on 23 February 2021
One of the most consequential investments for this
SEZ is that of Chinese automotive manufacturer Beijing
International Automotive Corporation (BAIC). The total
investment by BAIC was R11-billion and significantly
added to the province’s already strong reputation for
excellence in the automotive sector.
The Eastern Cape Provincial Government has
identified agriculture as an economic growth sector
with large-scale investment potential which could
contribute significantly to economic diversification and
job creation. The CDC has also planned for the
The Dedisa substation
development of a R2-billion aqua-farming facility, which
will focus on the commercial cultivation of marine
animals and plants.
Over a century of expertise in mining has made
South Africa the world’s leading producer of a range
of minerals and metals. Coega SEZ with its strategic
logistics linkages provides an ideal platform to
beneficiate these metal resources. A particular focus of
the Coega SEZ is to ensure greater local processing of
South Africa’s abundant natural resources.
Coega has a mix of wind farm investment projects
planned with an overall capacity of 183MW, a 12MW
photovaltic solar farm and bioenergy projects in the
pipeline. The CDC and various organs, including
DoE, Eskom and CEF, have conducted extensive
preliminary work to advance the readiness of Coega to
locate a gas-to-power project. The project entails the
generation of over 2500MW electricity and the value
to the regional economy of the project is approximately
R25-billion. Coega is home to the Dedisa substation,
which is vital infrastructure for injecting large amounts
of power into the grid.
“We have done considerable work on the Gas-to-Power
Programme to host additional gas-driven power generation
of between 1000 and 3000MW. We will host the first
infrastructure site for the importation of Liquefied Natural Gas
(LNG). The Coega Development Corporation has signed a
Joint Development Agreement with Central Energy Fund and
Transnet that will anchor this project.
“The construction of this infrastructure will catalyse the
development of a gas industry in the province and energyintensive
investments. We envisage a network of pipelines
from the existing Dedisa power plant to other major industrial
areas and new gas-to-power plants that will be built when the
Department of Mineral Resources and Energy invites bidders
for the construction of new gas-to-power plants.
“We are looking at other domestic gas opportunities
beyond the LNG. We all are aware of the discovery of natural
gas and condensate through the Brulpadda and Luiperd wells
by the Total-led consortium that holds a licence for a site that
is located near Mossel Bay. We are positioning Coega as the
natural location for the critical off-take projects that will be
needed to unlock the development of the offshore projects,
and thus use this domestic gas-for-power generation and
gas-based industrialisation. This is the critical next phase of
the work to develop the gas hub at Coega.”
State of the Eastern Cape Province Address by Premier
Lubabalo Mabuyane on 23 February 2021
The sod-turning ceremony of
BAIC Automobile SA in 2016
Service magazine | 11

S
economy
RICHARDS BAY IDZ (KWAZULU-NATAL)
Richards Bay Industrial Development Zone (RBIDZ)
is owned solely by the KwaZulu-Natal government,
reporting to the Department of Economic Development,
Tourism and Environmental Affairs through an
accounting authority that is appointed by the MEC.
The government’s strategic support
programme called Operation Phakisa has
set a target to grow the Ocean Economy’s
GDP contribution to R177bn by 2033.
The international seaport of Richards Bay is tailored
for manufacturing and storage of minerals and
products to boost beneficiation, investment, economic
growth and, most importantly, the development of
skills and employment. First-world infrastructure
allows for the full exploitation of the area’s natural and
strategic advantages. Through the excellent industrial
infrastructure, well-established network of shipments,
tax and duty-free incentives, RBIDZ aims to encourage
international competitiveness and the attraction
of export-orientated manufacturing investment.
The government’s strategic support programme called
Operation Phakisa has set a target to grow the Ocean
Economy’s GDP contribution to R177bn by 2033. South
Africa has eight major ports including two of the world’s
top container ports and two of the world’s biggest dry
bulk ports. Richards Bay port is one of the most strategic
anchorages for the country’s economic growth.
South Africa is perfectly located to serve all major
oil fields in West and East Africa. Five of the country’s
“The RBIDZ is pleased to announce that construction of the R1.3-billion edible oils plant by
Wilmar has started. The project is expected to inject much-needed employment in the King
Cetshwayo District and should be completed by the fourth quarter, 2022. The RBIDZ has
appointed a contractor for Phase 1 of the R4.5-billion titanium dioxide plant. This phase will
be operational by the fourth quarter, 2021 and Phase 2 construction will commence in January
2022 (40 000 tons per annum plant).
“The RBIDZ will launch two investor projects expected to commence construction in the
second and third quarters of 2021. The two plants are for an industrial paints manufacturer
and a chemical producer with a collective value of over R1.1-billion.”
Address by Premier Sihle Zikalala: KwaZulu-Natal State of the Province, 26 February 2021
major ports provide world-class oil rig and drillship
repair, refurbishment and maintenance services at
highly competitive rates.
Aquaculture presents an attractive
opportunity to reduce import
dependency and to ensure a sustainable
supply of fish and seafood products to
South African consumers. The farming
of freshwater species is concentrated in
Limpopo, the Mpumalanga Lowveld
and Northern KwaZulu-Natal. RBIDZ
has been earmarked as one of the
aquaculture development zones.
Agricultural production is most
dominant in KwaZulu-Natal and
includes sugar cane, fresh produce,
field crop and livestock production as
well as forest plantations.
RBIDZ is seeking investors to set up techno parks in
RBIDZ so that South Africans can benefit from new
ideas and technologies. Techno parks provide valuable
insights and intellectual resources from which the other
sectors situated in RBIDZ can benefit immensely.
There are exciting investment opportunities that lie
within the RBIDZ renewable energy sector.
SALDANHA BAY IDZ (WESTERN CAPE)
The Saldanha Bay Industrial Development Zone SOC Ltd
(SBIDZ) is the first SEZ to be located within a port and is
the only sector-specific SEZ in South Africa catering to the
energy and maritime industries. The Saldanha Bay Industrial
Development Zone Licencing Company SOC Ltd (SBIDZ-LC)
was formally awarded an Operator’s Licence in 2013.
Its location at the southernmost tip of Africa, in the largest
and deepest (23m draught) natural port in the southern
hemisphere means that it is the perfect place to accommodate
and service a wide range of vessels. It is ideally situated to
service East and West African sea traffic, providing a linkage
point for both African and international markets.
It is envisioned that this IDZ will serve as the primary oil,
gas and marine repair engineering and logistics services
complex in Africa, servicing the needs of the upstream oil
exploration industry and production service companies
operating in the oil and gas fields off Sub-Saharan Africa.
“SBIDZ has to date attracted over R21-billion worth of investments. SBIDZ has also signed
eight new investment agreements with operational companies in the maritime, oil and gas
sectors. These investments will lead to permanent and sustainable jobs that the country
needs to create for its citizens.
“The development of the zone will also have to align and integrate with the entire area of
Saldanha and West Coast region to achieve real projects that benefit all.”
Trade, Industry and Competition Deputy Minister, Fikile Majola, 28 February 2021
12 | Service magazine

economy
S
Aerial map of the East London Industrial Development Zone
EAST LONDON IDZ (EASTERN CAPE)
The ELIDZ is a state-owned corporation set up
by government through the South African IDZ
Programme (now SEZs Programme) to develop,
operate and maintain modern infrastructure and to
attract strategic investments for the region. ELIDZ is
owned by the provincial government, the Department
of Economic Development Environmental Affairs and Tourism, and the Buffalo City
Metropolitan Municipality. It is funded by the dtic and the Department of Economic
Development Environmental Affairs and Tourism.
Established in 2003, as part of the South African government initiative to improve
industrial competitiveness and economic growth in the country, the zone has become a
prime industrial park in South Africa, renowned for its customised solutions for various
industries including automotive, agro-processing and aquaculture.
The ELIDZ is one of the first IDZs in South Africa to be operational and represents
an ideal choice for the location of exported manufacturing and processing. Its location
provides investors with connections to major markets, locally and across the globe.
Service magazine | 13

S
economy
DUBE TRADEPORT SEZ (KWAZULU-NATAL)
Designed to enhance the country’s manufacturing
and export capabilities and attract foreign direct
investment, Dube TradePort SEZ (DTP SEZ) has
grown to become one of the top 10 investment
opportunities in South Africa.
As a long-term freight and passenger logistics
hub, DTP SEZ, found 30km north of Durban,
is rapidly emerging as a vital global supply link
and trade centre for KwaZulu-Natal. Strategically
located surrounding King Shaka International
Airport, the district includes:
• Dube TradeZone: fully-serviced industrial
precinct
The Dube TradePort masterplan
• Dube Cargo Terminal: State-of-the-art cargo-handling depot
• Dube AgriZone: Advanced agricultural area that provides
world-class facilities for propagating, growing, packing and
distributing high-value perishables and horticultural products
through an efficient supply chain
• Dube City: 12-hectare premium business and hospitality division
• Dube iConnect: Cutting-edge telecommunications platform
and cloud service provider.
Greenhouses at Dube AgriZone
Solar panels at Dube AgriZone
___ __
Aerial view of Dube TradeZone
14 | Service magazine
TARGET SECTORS
• Aerospace and
aviation-linked
manufacturing
• Agriculture and
agro-processing
• Electronics
manufacturing
• Medical production
and distribution
• Clothing and textiles
• Automotive
component
manufacturing

economy
S
ATLANTIS SEZ (WESTERN CAPE)
The Atlantis SEZ (ASEZ) is part of the City of Cape
Town’s initiative taken in 2011 to establish a GreenTech
manufacturing hub in Atlantis, in response to the Department
of Energy’s Renewable Energy Independent Power Producer
Procurement Programme (REIPPPP). Localisation of
manufacturing and the
resultant job creation is one of
the key priorities of government
through the REIPPPP. Situated
on the West Coast, 40km from
Cape Town, ASEZ capitalises
on the province’s already
booming renewable energy
and green technology sector
(wind turbines, solar panels,
insulation, biofuels, electric
vehicles, recycling and green
building materials).
“Dube TradePort will be implementing an expansive strategic
plan over the next five years focused on its core mandate to
drive localisation of manufacturing within its own zones, as
well as fast-tracking the development of the Durban Aerotropolis
and the Automotive Supplier Park in the south of Durban.
“The Durban Aerotropolis Masterplan has also begun
to stimulate private-sector investment into the broader
Aerotropolis region. Cedarpoint Trading has begun construction
of the Whetstone Business Park on the R102 adjacent to Dube
TradePort. Phase 1 has an investment value of R2-billion
and comprises 33ha of industrial land. This creates excellent
complementary investment to Dube TradePort and supports a
wider range of companies entering the Aerotropolis area. The
park will be built in three phases over a total of 70ha.
“In the south of Durban, Dube TradePort has been
working hard on unlocking an Automotive Supplier Park to
support the localisation of automotive suppliers to create
3 000 direct jobs. Recently, an initiative was undertaken
with Transnet to accelerate the first phase of the project
to meet the requirements of Toyota within their planned
production programme.
“A portion of the old Durban International Airport site is
currently being technically evaluated to be utilised as a
Phase 1A location for the first wave of approximately
R1.5-billion of investment. This initiative will ensure that
KwaZulu-Natal maintains its competitive position within the
automotive industry. The first phase will be followed by the
larger development of the Illovo site for a wide range of industries.”
Address by Premier Sihle Zikalala, KwaZulu-Natal
State of the Province, 26 February 2021
OR TAMBO INTERNATIONAL
AIRPORT IDZ (GAUTENG)
The OR Tambo International
Airport (ORTIA) IDZ officially
opened in March 2019. It aims
to develop land around the
airport to stimulate economic
development using the IDZ
mechanism. ORTIA supports the
beneficiation of precious metals
and minerals sector, with a focus
on light, high-margin, exportoriented
manufacturing of South
African precious and semi-precious
metals. The multi-site development
at ORTIA consists of several
industry-specific precincts and will
be developed in phases over a 10-
to 15-year period.
Artist impression of ORTIA
Service magazine | 15

S
economy
NKOMAZI SEZ (MPUMULANGA)
Nkomazi SEZ is in the eastern part of Ehlanzeni District
Municipality of Mpumalanga. It has been formalised
to provide a competitive and highly efficient industrial
cluster that positions itself as the leading location for
agro-processing, and logistics service activities within
South Africa, in response to investor demand.
The abundance of citrus and many other subtropical
fruits as well as nuts and a variety of vegetables are
produced in Mpumalanga. The region is also home to
the largest stock of beef cattle in South Africa and is
responsible for 22% of South Africa’s beef production.
SAPPI’s Ngodwana plant, close to Nelspruit, is a fully integrated Kraft mill producing pulp for its own
consumption as well as newsprint and container board. In 2013, the mill started producing dissolving wood
pulp (specialised cellulose) for global markets that can be exported through Maputo Port.
The geographical position of Nkomazi in relation to the Sub-Saharan countries of East Africa, the
proximity to some of the major mining and agricultural production areas of the country’s northern
provinces and access to good transport infrastructure provides Nkomazi with an advantage as a logistics
and distribution hub.
The Maputo Corridor integrates the regions of Swaziland, southern Mozambique and the industrialised
regions of Mpumalanga, Gauteng and Limpopo. South Africa has developed specialised hubs at Durban,
Richards Bay, Port Elizabeth and Coega that take much of its bulk exports, cars, container traffic and others.
The proximity of Maputo Port to the above regions presents a very cost-effective alternative to South African
ports, while assisting with the overall development and integration of SADC countries.
MUSINA-MAKHADO SEZ (LIMPOPO)
Over the last few years, the Limpopo Provincial
Government has worked hard to get the Musina-
Makhado Special Economic Zone (MMSEZ) off
the ground. MMSEZ is a two-in-one project,
with the South site zone in Makhado and the
North site zone in Musina. The Musina and
Makhado municipalities are strategically
located along the North-South Corridor and in
the vicinity of the second-busiest port of entry,
the Beitbridge border post.
Guided by recent history in development in
Limpopo, particularly the development of the
Medupi Power Plant in Lephalale, MMSEZ
will be used as a catalytic initiative to unlock
various developmental opportunities in Musina
and Makhado.
The MMSEZ SOC has commissioned a
feasibility study for the development of a new
Musina Dam through harvesting annual runoff
flood water in the Limpopo River. The success of
Musina Dam will unlock new opportunities for
economic development in the Vhembe District,
and relieve many communities from ongoing
water shortages. The zone is allotted for light-tomedium
industrial activities, focusing on agroprocessing,
manufacturing and logistics.
MALUTI-A-PHOFUNG SEZ (FREE STATE)
The R4.8-billion, 1 000ha Maluti-a-Phofung SEZ near Harrismith will provide road
and rail logistics and handling facilities for the Gauteng-Durban port corridor and link
it to the Bloemfontein-Cape Town corridor.
The main industries the SEZ will serve are agriculture, agro-processing, automotive
and logistics, and will include container and car terminal facilities. The SEZ will
function as a back-of-port operation to ease congestion at the Durban port and will
provide South African customs functions and facilities
for imported and export goods, including goods
moving into southern African. The primary focus of
the SEZ is to act as a logistics hub to take advantage
of its strategic location on the Durban-Reef corridor
and as a link to the Bloemfontein-Cape Town corridor
It will also provide aggregated bulk rail logistics
for agricultural produce between Bloemfontein and
Harrismith, in the Free State, while bulk freight rail services will extend to Newcastle
in KwaZulu-Natal. The SEZ will incorporate an intermodal rail and road facility, with
specialist transfer infrastructure and associated storage facilities, including cold chain.
Its existing road and rail links position the site ideally to service goods flowing to and
from the Durban port and to bolster the existing logistics networks.
Rail logistics is central to the Maluti-a-Phofung hub’s capabilities. Improving and
using the railway network through the hub will also provide long-term funding for
the maintenance and expansion of the network in KwaZulu-Natal, Free State and
Gauteng. State-owned railway operator Transnet is consequently a key partner in
the Maluti-a-Phofung SEZ project. The SEZ aims to reduce logistics costs and enable
companies to gain efficiencies, grow and expand and, in so doing, help develop the
economies of the provinces.
16 | Service magazine

economy
S
TSHWANE AUTOMOTIVE SEZ (GAUTENG)
Tshwane Automotive SEZ (TASEZ) was initiated by the Ford
Motor Company to help expand its automotive footprint in
South Africa through the attraction of its global suppliers
into the country.
This ambition was further enhanced by the Gauteng
government’s plan of developing a new Automotive City in
Tshwane, and aligns with the SA Automotive Masterplan
2035, which sets targets for us to increase localisation.
TASEZ is the outcome of partnerships between the
Department of Trade, Industry and Competition, the
Gauteng Provincial Government, the City of Tshwane
and the Ford Motor Company of Southern Africa. The
Automotive Industry Development Centre, a subsidiary
company of the Gauteng Growth and Development Agency,
has been tasked to deliver TASEZ on behalf of the Gauteng
Provincial Government.
Artist impression of Tshwane Automotive SEZ
“The progress being made at TASEZ is inspiring. The three spheres
of government are investing R3.3-billion in infrastructure, which has
unlocked R4.3-billion investment by suppliers and a further R15.8-
billion investment announced by Ford Motor Company on 8 February.
This is the biggest foreign direct investment since the 2010 World
Cup. TASEZ will produce over 200 000 vehicles by 2022.
“The success of TASEZ has also created a new momentum
for the development of the Gauteng-Eastern Cape Freight Rail
Corridor, which will be fully operational by 2025. This will facilitate
a swift movement of goods out of the Gauteng City Region SEZs,
industrial parks and agri-parks, including the much higher volumes
of vehicles from Silverton and Rosslyn to the seaports for export.”
Premier David Makhura: Gauteng State of the Province Address, 2021
International trade avenue
“The development of the Tshwane Automotive SEZ will support the expansion of
the incubation centre and contribute more broadly to the development of black
industrialists. This initiative is proof that partnership between government and
the private sector is vital in driving the development agenda of our country.
“This SEZ further aligns with our new district development model, which we
call Khawuleza, meaning to hurry up. It seeks to address service delivery and
economic development challenges through the synchronisation of planning
across all spheres of government, working alongside social partners such as
business and the community. A management company owned by the three
spheres of government, with board members also drawn from business, will be
established to develop and manage this automotive zone.
“We are introducing a new approach in the implementation of SEZs to
enhance their impact. It includes resolving regulatory hurdles that have been
obstacles to investors. Processes such as securing environmental impact
authorisations, water-use licences and the like will be fast-tracked.
“All three spheres of government will be involved with the private sector in
the planning and development of infrastructure.
“Project management units at the Development Ban k of Southern Africa will
assist in accelerating the roll-out of infrastructure, including bulk infrastructure,
factories and warehouses.
“The Industrial Development Corporation will assist with the development
of business cases for SEZs, securing private investors and conducting due
diligence processes on prospective investors.
“The Tshwane Automotive SEZ will be developed under this new approach.
It will be rolled out in a phased manner on the 162 hectares of land provided
by the City of Tshwane.
“The existing material benefits of doing so will be multiplied once the African
Continental Free Trade Area comes into operation – opening new markets for
their goods, products and services.”
President Cyril Ramaphosa: Tshwane Automotive SEZ launch, 5 November 2019
S
Service magazine | 17

South Africa’s foreign policy makers are facing a substantial challenge. From the advent of
the democratic era in 1994 through to the early 2000s, South Africa was a highly respected
actor in international affairs with a number of impressive accomplishments in the areas
of global governance, peacekeeping and international norm entrepreneurship. However,
since that time, the country’s international standing has declined. The value based and
innovative foreign policy that earned the early post-apartheid South African government
such great international respect has been replaced by a more transactional and tactically
driven approach to international affairs. The country’s position as Africa’s leading economy
and voice in international affairs is increasingly being challenged by other African states.
This book explores how South Africa can develop a foreign policy strategy that is appropriate
to the uncertain times in which we live and that both helps the country address its
overwhelming domestic challenges of poverty, inequality and unemployment and regain
its former high international reputation. The contributors to this book offer analyses and
proposals for developing such a strategy within the context of the country’s constitutional
order and institutional constraints and that addresses the diverse and complex global and
regional aspects of the country’s international relations.
“In this valuable book – which should be on every diplomat’s bookshelf - some of SA’s foremost
experts offer the government frank and compelling advice on how to conduct a much better
foreign policy over the next decade. … The authors challenge Pretoria to muster all the country’s
assets and skills – and not just those of the ruling party – to pursue only the most important
foreign policy goals. And to be guided always by the lodestar of the Constitution.”
Peter Fabricius, Foreign Policy Analyst, former Foreign Affairs Editor at Independent Newspapers.
“In this one-of-a-kind book of twelve chapters by emerging and experienced scholars, the
authors probe into factors shaping South African foreign policy, lessons learned and the future
strategy of the country’s foreign policy in an ever-changing world. A compelling read for policy
makers and scholars.”
Ambassador Prof Iqbal Jhazbhay, University of South Africa, Member of the ANC’s N.E.C. International Relations
Sub-Committee & former SA Ambassador to Eritrea
“This volume deserves to become a go-to classic on South African foreign policy. Its in-depth
analysis will appeal to established experts in this area; its breadth will engage newcomers; its
insights will be useful to scholars and practitioners alike.”
Professor Amrita Narlikar, President, German Institute for Global and Area Studies (GIGA)
“This book offers compelling insights on South Africa’s foreign policy ... These varied pieces
provide textured and critical perspectives that may help open up an avenue to re-imagine
South Africa’s foreign policy afresh in the post-Zuma years. It is a compendium that should
appeal to scholars of international relations, practitioners of foreign policy, and the broader
policy community.”
Professor Mzukiso Qobo, Head, School of Governance, University of the Witwatersrand
“This nuanced and richly detailed volume offers the reader superb analyses of South Africa’s
foreign policy ... The authors’ contributions ... present both theoretical considerations and
specific policy recommendations, which make the book highly useful for both scholars and
policy makers ... Each chapter is thus certain to significantly contribute to promoting the public
debate about South Africa’s place in the world.”
Professor Oliver Stuenkel, Fundação Getulio Vargas (FGV)
ISBN: 978-1-920538-85-9
S
governance
How values,
interests and
power must
shape South
Africa’s
foreign policy
The Covid-19 crisis is one of many indicators
that we live in dangerous and uncertain times.
Others include the international community’s
struggle to respond to technological and
climate change, demographic shifts,
growing poverty and inequality as well as
increased global insecurity. The global
governance arrangements for managing
these changes are no longer fit for purpose.
By Danny Bradlow, SARCHI Professor of
International Development Law and African
Economic Relations, University of Pretoria
Take the decision-making procedures in the UN Security
Council and the International Monetary Fund (IMF).
They do not account for the growing importance
of developing countries. Nor do they meaningfully
accommodate non-state actors such as transnational
corporations and civil society groups.
These changes are pushing countries to reassess how
they use foreign policy to serve their national interests. A
recently published book, Values, Interest and Power: South
African Foreign Policy in Uncertain Times, contributes to
such a reassessment in South Africa. In the book, a group
of South African authors offer suggestions on how the
country can formulate and implement a foreign policy
that responds to a changing global world.
RECOMMENDATIONS
The book concludes with some recommendations
for South Africa’s foreign policy makers. First, foreign
policy should:
• contribute to implementing the domestic economic
and social transformation agenda
• be consistent with the values and governance
arrangements set out in the Constitution
• position South Africa to be a norm entrepreneur
in global affairs. This means pursuing creative and
principled solutions to global issues
• advocate reforms to global governance arrangements
so that they become more responsive to the Pretoria concerns
University Law Press
www.pulp.up.ac.za
of the global South. And become more accountable.
Secondly, we recommend changing the way which
foreign policy is designed. The Presidency should
establish an inter-agency coordinating council that
can formulate a coherent and effective foreign policy.
The Department of International Relations and
Cooperation should then lead implementation.
Our third recommendation is that Parliament and
the Chapter 9 institutions should play a role in foreign
policy making. These institutions support the country’s
constitutional democracy. For example, the Human
Rights Commission could issue an annual report
assessing how effectively the government has used
international relations to advance human rights at
PULP
Values, Interests and Power
South African foreign policy in uncertain times
Edited by
Bradlow and Sidiropoulos
PULP
Values, Interests and Power
South African foreign policy in uncertain times
Edited by
Daniel D. Bradlow and Elizabeth Sidiropoulos
___ __
South Africa is bounded
by two major oceans and
its exclusive economic
zone is bigger than its land
mass. The country needs
a clear strategy to protect
its interests as the Indian
Ocean is now seen as part
of a bigger maritime space
stretching from the Pacific
to the east coast of Africa.
The Conversation. Creative Commons licence
18 | Service magazine

governance
S
Climate change
The country has played an important leadership role
in the global United Nations Framework Convention on
Climate Change negotiations.
To continue playing this role credibly, it should reduce
the inconsistencies between its domestic and global
climate change related policies. It needs to stress in
both arenas the important relationship between climate
change and social justice.
Peace and security
South Africa should draw lessons from its experiences
in African peace-making about how it can help African
regional bodies end conflicts.
We also recommend that the country develops a
maritime strategy. This is important for two reasons.
First, South Africa is bounded by two major oceans. Its
exclusive economic zone is bigger than its land mass.
Second, external actors are becoming increasingly
interested in the Indian Ocean. They see it as part of a
bigger maritime space stretching from the Pacific to the
east coast of Africa. Without such a strategy, it will be
difficult for the country to protect its interests.
home. In addition, there should be an annual meeting
with these bodies to discuss the government’s foreign
policy objectives for the year ahead. This could be run
by the executive through the Presidency or the foreign
relations department.
We recommend that a concerted effort be made to
ensure that foreign service staff have the technical and
language skills to deal with the expanding range of issues
facing the country on the global arena. Equally important,
they should also understand the links between domestic
social and economic transformation and foreign policy.
TOP OF MIND TOPICS
We also make recommendations on specific topics.
Economic development and cooperation
South Africa needs to pay attention to its trade and
economic relations, particularly in Africa. For example,
the new African Continental Free Trade Area should
open important trading and job-creating opportunities.
It will also help develop regional value chains.
We recommend that the government, business, labour
and other stakeholders develop an integrated strategy to
take advantage of these opportunities.
The Presidency should establish an
inter-agency coordinating council
that can formulate a coherent
and effective foreign policy.
The multilateral system
Middle-sized powers like South Africa need a reformed
multilateral system. It should, therefore, continue to be
engaged in the debates on reforming it.
Given resource constraints, it needs to focus on
institutions where reform is feasible. These include the
World Trade Organization, the IMF and the World
Bank. Reforms should focus on creating greater
voice for underrepresented countries, and more
public accountability and transparency. South Africa
should also use its platform in global forums like
the G20 and BRICS to promote issues of concern to
Africa, and to foster greater inter-regional cooperation.
NEED FOR COHERENCE
A foreign policy that looks incoherent – or is merely
reactive – can have both reputational and material costs.
We hope this book contributes to improving the gains
the country can make from its international relations. S
• Elizabeth Sidiropolous, CEO, South African Institute of
International Affairs, contributed to this article.
Service magazine | 19

S
technology
A value net
made with
Foursight
Johannah Masilo Phenya started her career
as an office administrator at HR Collaborate
after graduating. She moved to Pinnacle
Africa as IT sales executive in 2003. Phenya
started Foursight IT Business Solutions in
2006. Service magazine spoke to her
Foursight IT Business Solutions, a woman-owned empowered
company, is built on a set of beliefs and strong vision, derived from
the creation of value net. It is based on interdependencies between
Foursight, as a business entity, as well as manufacturers and
government as a consumer of goods and services, and ultimately,
the broader communities as overall beneficiaries.
Do you agree with the statement that a government’s
intervention in the digital space must be proportional to their
technological capability?
Yes. Data has become a source of wealth and public value, the
lifeline of the digital society. Today, fast-moving and evolving
trends in digital technologies are leading to a radical change in the
citizen expectation.
Please share with us why collaboration across the value chain is
the critical catalyst for improved service delivery.
Technology is wide and vast. The IT space is not static and is
forever evolving. It is important to be abreast of the latest trends as
it affects how we live, work and play. New systems, platforms and
applications are developed almost daily. These changes influence
business in terms of how it should conduct its work and interface
with its clientele. To be abreast of technology and to deliver cuttingedge
solutions, requires good and strong sector partnerships.
What can Foursight IT Business Solutions do for government?
Government is tasked with implementing policies and programmes
that are geared towards creating a better life for all. This statement
is a major driving force towards the creation and existence of
20 | Service magazine

technology
S
Photographer: stillsbytom. MUA: beauty_ by_pru. Hairstylist: Dzigurlz. Dress: bmashilodesigns.
_________
JOHANNAH MASILO PHENYA
Position: Managing Director
Foursight IT Business Solutions. Foursight has
the best breed of technological infrastructure and
cutting-edge business systems, which supports
government's delivery endeavours, and it has grown
over time.
Please discuss the effect of the POPI Act
regarding remote working.
Many companies endeavour to comply with the POPI
Act; however, in the remote working environment,
employees are responsible for ensuring that they
do not violate any of the provisions stipulated in
the current company policies that set expected
behaviour for information protection and
security. Employees are responsible for the safe
and secure handling of all hard-copy records
and information taken off-site, including but not
limited to electronic files.
How should laptops, computers and wireless
technology be protected in a remote working
scenario?
Foursight has a vast range of IT security solutions
for mobile and desktop solutions, enforcing
encryption and the use of secure enclaves, if
possible. Foursight uses solutions that protect
devices and Internet connections from the most
sophisticated attacks while ensuring zero-trust
access to corporate applications.
Please advise on technology solutions for
seamless remote working and discuss the latest
trends in remote technology.
The world as we know it has changed, and so have
businesses worldwide. Users a round the globe are
working remotely and using their mobile phones
and laptops to access corporate applications.
Securing the new 'work from anywhere' hybrid
environment is a leading priority and for a good
reason – organisations’ attack surfaces have never
been wider. According to our recent survey, 71% of
security professionals reported an increase in
security threats and attacks since the start of the
coronavirus outbreaks. This new way of working
led us to a new way of innovating and collaborating
with leading technology security manufactures such
as Checkpoint, IP Granite, Sophos and Fortinet.
A main concern for companies, in terms of remote
working, is security. What advice do you have for
business owners?
Watching how cyber-attacks have evolved in recent
years, companies need solutions that will assist
them to administer such threats. Our solution is
a revolutionary security consumption model that
provides enterprises the complete threat prevention
they need against Gen V attacks. Infinity Total
Protection is the only offering available today
that includes both network security hardware
and software, with fully integrated endpoint,
cloud and mobile protections and zero-day threat
prevention, together with unified management and
24/7 support.
What are the next opportunities and challenges
for Foursight IT?
The biggest challenge is that IT is still one of the
most male-dominated industries; however, women
are pushing the barriers and occupying the space
now, in terms of economic development and
emancipation. Opportunities should not be based
mainly on gender, but the playing field should
be levelled so that everyone with potential can be
given an opportunity to engage and contribute to
the economy and development of the country. S
www.foursightit.co.za
PROFILE: JOHANNAH PHENYA
Professional best achievement?
To be the only woman-owned company in the
consortium for rolling out fibre in Limpopo.
What was the most powerful lesson on your
path to success?
Be your best, setting boundaries and focusing
on one pitch at a time.
How do you define success?
To be able to do my best, I attain success
once I achieve my goals. Success means
achieving a challenging goal.
What has been your most defining
opportunity?
Being a female in the IT security industry
and to be able to deliver best solutions to
government departments.
Biggest influence in career?
My family.

S
digital
South Africa has failed to
harness the digital revolution:
how it can fix the problem
Covid-19 has precipitated a migration from physical work spaces to online, digital services supported
by home working. Certain sectors, such as mining and manufacturing, require workers to be physically
present. But others have discovered that virtual platforms are effective substitutes for offices.
By David Richard Walwyn, Professor of Technology Management, and Laurens Cloete, PhD candidate, University of Pretoria
Online, however, requires digital infrastructure and
services in information and communication technology
(ICT). Digital infrastructure is essential to meet the
new demand for virtual services as quickly and cheaply
as possible. On top of this the potential of digital
technologies to support economic growth is apparent.
Many developing countries have comprehensive
national strategies and initiatives to foster data mining,
digital intelligence, e-government and e-commerce.
These include India and China.
Several countries have successfully harnessed the
digital revolution to enable broader socio-economic
development. But South Africa has fallen behind. It
has slid down the International Telecommunications
Union’s Information Society Index. The index measures
countries’ evolution towards becoming information
societies based on three measures: readiness, intensity
and impact. For instance, readiness is measured
through indicators of access and skills. The 2018 index
places South Africa 104th out of 144 countries in terms
of access to fixed broadband, down from 77th in 2002.
So, what’s gone wrong?
The “managed” liberalisation of the incumbent
telecommunications provider, Telkom, has been
ill-fated. The idea was that this would accelerate the
development of the sector and enable affordable access
to communication services. But broadband speeds
are 10% of those in countries such as South Korea
and Singapore.
South Africa has a suitable policy framework and the
skills necessary for digital transformation. But instead
of opening the fixed-line market, the privatisation of
Telkom resulted in a listed company with a protected
monopoly. Together with a weak and ineffectual
regulator, Telkom successfully prevented the licensing
of a second network operator. It also blocked steps
towards healthy competition. This included refusing
to support local loop unbundling and the sharing of
the fixed-line infrastructure.
In a recent policy research paper, the University of
Pretoria set out how the local digital industry can be
stimulated. We address the question: does South Africa
need new instruments, or can traditional policies suffice?
Failures and successes
The 2013 National Broadband Policy, known as
“South Africa Connect”, is seen as a competent guide
for South Africa’s digital development. For instance,
the World Bank’s Broadband Commission for Digital
Development remarked that, “South Africa Connect
provides an excellent example of a policy which focuses
on both supply-side and demand-side considerations.”
But a number of factors have got in the way of
digital transformation. One was the lack of continuity
in the political and administrative leadership of the
national ICT portfolio. Between 2009 and 2018 South
Africa had 11 different ministers responsible for
telecommunications. In the same period, it had only four
presidents. Another was the ill-considered splitting of the
ICT portfolio over two departments under the previous
administration. This caused divergence between
telecommunication, broadcasting and information
technology and hindered the progress of South
Africa Connect.
A third factor was a conflict of interest between the
regulator and the State as the major shareholder of
Telkom. The Department of Communication was the
custodian of the State’s share in the privatised Telkom.
But it was also responsible for the policy and regulatory
environment in which the company operated. And
finally, it is reported that political appointments in
key agencies such as ICASA (the regulator) and the
Universal Service and Access Agency of South Africa
have limited capacity.
Broadband speeds
are 10% of those
in countries such
as South Korea
and Singapore.
22 | Service magazine

digital
S
The Conversation. Creative Commons licence
___ __
The South
African National
Research Network
(SANReN) provides
gigabit per second
networking to
all South African
institutions of higher
learning as well as
science councils
and national
research facilities.
Despite the governance issues, South Africa has
achieved some notable successes. For example, it has
created a world-class research and education network.
The South African National Research Network
(SANReN) provides gigabit per second networking to all
South African institutions of higher learning as well as
science councils and national research facilities.
The model is based on aggregating demand from
similar users and buying long-term high-capacity leased
line or dark fibre network capacity on a competitive basis
from network operators. It combines this with a policy
of always buying bandwidth levels based on future and
unanticipated requirement levels.
This has been key to its success. The network has
been central to the digitalisation of higher education. It
now plays a vital role in the sector’s migration to online
platforms. The graphs below show how the lockdown
disrupted the network’s usual support for Internet traffic,
leading to a massive migration to commercial networks.
What is needed?
The key is to have a policy that is a mixture of supplyand
demand-side interventions. Supply-side measures
reduce costs for firms. Demand-side refers to policies
that stimulate demand. On the supply side, the state
needs to invest in a low-cost, high-speed and universally
accessible data transmission infrastructure. This should
be coupled with support for domestic digital firms and
entrepreneurs through public procurement processes
aimed at improving government services.
Estonia is a good example of how a combination
of policies can enable an advanced digital economy.
On the demand side, the government has ensured
decentralisation, interconnectivity, integrity, open
platform, once-only and transparency. The open
platform principle ensures that any institution can use the
infrastructure. Once-only ensures that users are never
asked to enter the same information twice.
Estonia’s approach resulted in a different architecture
from the US. There the emphasis has been on
personalisation, anonymity, information privatisation
and competitive efficiency. Aspects of the Estonian model
rely on high levels of trust between private individuals
and digital firms. It is also underpinned by an advanced
capable state and a highly skilled workforce. These factors
make it difficult for other countries to replicate.
Way forward
Developing countries need to be highly strategic in the
development of their domestic digital industry. For
example, developed countries like the US are capable of
forcing an agenda on developing countries that permits
the appropriation of local data, allows unrestricted
repatriation of profits and prevents technology transfer.
Another important factor is that a government’s
interventions in the digital space must be proportional
to their technological capability. A capable state can be
intimately involved and direct digital development. But
where there is limited technological capability the focus
should be on creating an enabling environment. An
enabling environment would ensure a level playing field,
create an open market, promote healthy competition and
provide the appropriate regulatory framework.
For South Africa, the focus must be on the
development of universally accessible data and digital
public infrastructure. This should include high-speed
broadband (more than 100 Mbytes per second), and
support for domestic digital firms and entrepreneurs.
This should be done through public procurement
processes aimed at improving government services.
A number of other steps should be taken too. The
first is to develop the skills for data mining and digital
intelligence. The second is to put in place the regulatory
framework to support systems for secure but low-cost
e-transactions. The final step is to prevent the private
appropriation of public data by global corporations. S
David Richard Walwyn is employed by the University of
Pretoria. In 2020, he received funding from the University via
the Scholarship of Teaching and Learning Grant, and through
a publication incentive. He also received funding from the
National Research Foundation as a rated researcher. Some of
this funding has been used to support the research and writing
activities which resulted in this article.
The University of Pretoria provides funding as a partner of
The Conversation AFRICA.
Service magazine | 23

S
digital
Golden age of
tech coming,
but jobs
are at risk
Smart connected machines are set to put
both blue-collar and white-collar workers
out of jobs in large numbers, and this wave
of change will force paradigm shifts in
education, work and society as a whole.
By Sean Culey, business transformation
expert, futurist and author of Transition
Point: From Steam to the Singularity.
Culey, whose book took over five years to research and
covers a number of similar waves of industrialisation
and economic and societal change over the past 1 000
years, says the world is now in a transition point between
the fifth and sixth technological waves.
While some factors have been the same in each wave,
the current wave differs from previous waves in that it
is unlikely to result in new jobs being created for those
who work with their hands, or who carry out routine
rules-based work, he said.
Technologist Johan Steyn notes that the disruptive
change seen emerging in recent years has been
accelerated by the Covid-19 pandemic and may have
impacted the direction of the emerging 4th Industrial
Revolution. Said Culey: “In some respects, we can
expect a golden age of technology as we emerge from
the Covid-19 pandemic. Advances such as artificial
intelligence, robotics and drones have yet to fully emerge
and become fully disruptive. The next 20 years could be
one of the most exciting times in human history.”
“However, there is cause for concern: there are major
social and economic challenges ahead. In previous
waves, there was always an industry emerging that
created employment for lower-skilled workers. This
time, much of the new work will be done by robots
and AI. Strangely, while everyone thinks automation
will affect employment, they never think it will affect
their jobs. We now have machines that replace human
capabilities. They speak, hear, understand, process,
collect, learn and share those learnings amongst
themselves, whereas humans learn individually, so we
are limited in our learning capabilities.”
___ __
There will be a whole
raft of new jobs, but
they will require new
skills – creativity,
entrepreneurship,
insight, investigation
and inquiry. Simply
learning and repeating
facts will have no value
because machines
can do this for us.
24 | Service magazine

digital
S
Culey is of the opinion that Africa, with its growing
young population, could enter the next wave leapfrogging
more developed nations, but could also risk losing ground
as its young people migrated around the world in search of
opportunities. He said: “If we teach our people to compete
against machines, we will be teaching them to lose.
Africa should encourage its young population to learn,
educate themselves, and use telepresence technologies
to reach out for support. The continent needs to build
infrastructure to support the next wave of technologies,
such as roads, traffic lights and rules that enable the use
of autonomous cars, vans and other delivery vehicles.”
Countries should create an aspirational population,
ensure that they provide support and promote inclusivity
while correspondingly limiting their control over people,
encouraging freedom, entrepreneurship and innovation,
he said.
If we teach our people to
compete against machines, we
will be teaching them to lose.
“There will be a whole raft of new jobs, but they
will require new skills – creativity, entrepreneurship,
insight, investigation and inquiry. Simply learning
and repeating facts will have no value because
machines can do this for us. Learning will have to
undergo a paradigm shift, and people will have to
learn more about how to ask the right questions,”
Culey said.
He noted that in previous waves, development had
been the greatest in societies where the individual
was free to innovate and keep the rewards of
their innovations. Attempts to roll back freedoms,
through the constant monitoring and control of
people’s online and real-world activities via tools
such as facial and digital surveillance would likely
undermine progress, he said.
Whether countries should consider a universal basic
income considering the anticipative job disruptions, Culey
said this was a solution whose time may have come. “It
has been proposed as a solution at every wave, including
the first one. During the first Industrial Revolution and
French Revolution, it was suggested that the profits of the
land should be given to each citizen as a citizens’ income,”
he said.
“Every time it comes up, people think it’s a new idea,
but it gets forgotten as new opportunities for mass
employment arise. However, I think it is an idea whose
time has now come since there won’t be new opportunities
for mass employment in the same way as before. The
market for people who only have their physical labour to
sell will dry up.
“During the pandemic, we saw the groundwork being
laid for a higher level of state support as businesses were
forced to close and people could not work, and further
additional support may arise as more industries are
disrupted. The debt that has built up now may never be
repaid, and this may be the catalyst for a new financial
arrangement between the state and its citizens.” S
Service magazine | 25

S
economy
Policies go some way
to tackling poverty
and inequality.
But more is needed
South Africa is one of the most unequal societies in the world.
More than 50% of the population live in poverty. Despite notable
gains in poverty reduction post-apartheid, poverty levels have
remained consistently highest among women, black South Africans,
people with disabilities, and those living in rural areas.
By Sophie Plagerson, Senior Research Fellow at the Centre for
Social Development in Africa, University of Johannesburg
The government has committed itself to addressing
poverty, inequality and social exclusion – understood
as disadvantage by gender, race, disability or place.
The mandate is laid out in the Constitution and in the
government’s National Development Plan. The plan was
adopted in September 2012 as a blueprint for eliminating
poverty and significantly reducing inequality by 2030.
But do the country’s laws, policies and strategy
documents show exactly how poverty, inequality and
social exclusion will be tackled?
Under review: How policymakers and legislators
have faced these systemic challenges in drafting their
documents. To answer this question, researchers at
the Centre for Social Development in Africa undertook
an extensive review commissioned by the National
Development Agency.
Under review: 501 legislative, policy and strategy
documents under the Medium Term Strategic
Framework Outcomes, the implementation strategy
of the National Development Plan (2014-2019).
The documents cover education, health, safety and
security, economic growth and employment, skills,
infrastructure, rural development, human settlements,
local government, environment, public service, social
protection, nation-building and social cohesion.
Methodology: Each document was reviewed to
determine the number of references to poverty,
inequality, social exclusion, gender, race, disability,
youth unemployment and spatial inequality. The
references were then analysed on whether they were
generic or specific. The researchers considered whether
the documents showed an understanding of the
issues and looked for solutions. Their findings reveal
that there is at least some engagement with poverty,
inequality and social exclusion in all governmental
sectors. But it is inconsistent. Steps were then identified
that could improve progress.
Findings: More than half of all policy and strategy
documents and 10% of legislative documents
mentioned poverty, inequality, social exclusion, gender,
___ __
References to poverty,
inequality and social
exclusion must explain
how they affect each
law and policy. They
should also offer
strategic interventions.
STATE OF THE SA NATION
“Over the past year, South Africa has experienced a sharp decline
in growth and a significant increase in unemployment. Poverty is
on the rise. Inequality is deepening. In the third quarter of 2020,
our economy was 6% smaller than it was in the last quarter of 2019.
“There were 1.7-million fewer people employed in the third
quarter of 2020 than there were in the first quarter, before the
pandemic struck. Our unemployment rate now stands at a
staggering 30.8%. As a result of the relief measures that we
implemented and the phased reopening of the economy,
we expect to see a strong recovery in employment by
the end of the year. As we worked to contain the spread
of the virus, we also had to take extraordinary measures
to support ordinary South Africans, assist businesses in
26 distress | and Service protect people’s magazine
livelihoods.
“The Social and Economic Relief Package that we introduced in
April last year is the largest intervention of its kind in our history.
It identified measures worth a total of R500-billion – or about 10% of
our gross domestic product – to provide cash directly to the poorest
households, to provide wage support to workers and to provide
various forms of relief to struggling businesses. A total of 18-million
people, or close to one-third of the population, received additional
grant payments through these relief measures.
“It is estimated that this grant lifted more than
five-million people above the food poverty line,
helping to alleviate hunger in a moment of great
crisis. To date, more than R57-billion in wage support
has been paid to over 4.5-million workers through the
special Unemployment Insurance Fund Temporary
Employer-Employee Relief Scheme (TERS).”
President Cyril Ramaphosa, SONA, 2021

The Conversation. Creative Commons licence
“People of South Africa, it is your country
that calls on you to rise.
Let us march forward together to equality,
to growth, to dignity and to recovery.”
race, disability and spatial disparities at least once. The social protection sector
showed the highest average number of references to poverty (58), inequality (70)
and social exclusion (116) in its documents. The public service sector showed
the lowest number of references. There are many more references in policy and
strategy documents than in legislative documents.
More references do not mean deeper engagement with these issues. In some
cases, the issues are not critically analysed. References to poverty, inequality and
social exclusion must explain how they affect each law and policy. They should
also offer strategic interventions.
Some sectors do take this holistic approach to policymaking. In the health
sector, for example, it was found that some policy and strategy documents
examine the connection between poverty, inequality and health outcomes. The
Breast Cancer Control Policy, for instance, identifies transport as a constraint to
accessing health services. It was also found that references to gender and spatial
disparities are most common when addressing social exclusion. But references
to population groups, disability and youth who are not in education or training
are inconsistent across the board.
RESEARCH REMEDIES
• Recognition of poverty, inequality and social exclusion cannot be limited to
policy and strategy documents. It must be reflected in legislative documents.
Laws are binding.
President Ramaphosa, State of the Nation Address, 2021
But do the country’s laws, policies and strategy
documents show exactly how poverty, inequality
and social exclusion will be tackled?
• Policymaking institutions must take ownership of the national mandate. Each
government department must develop solutions. They cannot simply rely on
the National Development Plan to reduce poverty and inequality.
• Government departments could develop a toolkit based on shared good
practice. This would help to translate documents into action. Documents must
be grounded in data, analysis and strategic responses. Drafters must consider
trade-offs and holistic approaches. They must also make strategic use of
flagship programmes and participatory processes.
• Future Medium Term Strategic Framework documents should be based on
goalsetting guidelines for poverty, inequality and social exclusion. This will
achieve greater consistency in targets and indicators.
Laws and policies are only one part of making a real difference in people’s lives.
But they are an important link in the chain of transformation. South Africa’s
policy sectors and government departments can learn from one another to
address poverty and inequality more consistently and effectively.
THE GAP BETWEEN POLICY AND PRACTICE
Policies matter and can make a real difference. But on their own they are
insufficient. They must be implemented. Change happens through stakeholders
and processes. More needs to be done to include poverty, inequality and social
exclusion in all policymaking. S
• Disclosure statement: The research was funded by the National Development
Agency (South Africa).
TACKLING INEQUALITY
AND POVERTY:
A TOUGH TASK AHEAD
FOR GOVERNMENT
The quarterly labour force survey data recently
released by Statistics South Africa (StatsSA) reflects
the challenge faced by government in dealing with
inequality and poverty as the impact of Covid-19
deepens across the major economic sectors.
According to StatsSA, South Africa’s unemployment rate
rose to 32.5% in the fourth quarter of 2020, from 30.8%
in the previous period. This is the highest jobless rate
since quarterly data became available in 2008, amid
the ongoing lockdown aimed at fighting the spread of
the pandemic, which has contributed to the depressed
economic environment.
The labour force participation rate was also higher
in the fourth quarter of 2020 when compared to the
third quarter of 2020 because of these movements,
thus increasing by 2.4 percentage points to 56.6%
as reported.
“Job creation should be a consolidated effort by
both government and the private sector. The repeated
trends of jobs being lost in key demand-driving sectors
of the metals and engineering (M&E) sector, such as
construction, is worrying as it demonstrates lack of
business activity. For unemployment levels to fall,
investment-driven economic recovery is key,” said
SEIFSA Chief Economist Chifipa Mhango.
Mhango remains hopeful that government’s economic
revival plan, which plans to increase infrastructure
spending to unlock R1-trillion in private investment
over the next four years, while also directing R1-billion
towards job creation, will be positive for the M&E
sector. However, he cautioned that its sustainability
remains a concern as it will weigh on fiscal accounts
and Treasury’s consolidation efforts. Mhango expects
the economy to rebound in 2021, as economic activity
gradually recovers amid lockdown easing.
“The contribution of the M&E
sector to overall employment
remains key for the economy.
However, persistent challenges
faced by business in the sector,
such as high electricity costs as
well as disruption in its supply,
rising logistics costs and imports
are likely to weigh negatively on the
industry, thus affecting job creation
in the overall manufacturing
sector,” he concluded, adding
that, “Job creation relies on the
economic growth of the country.”
SEIFSA Chief
Economist,
Chifipa Mhango

S
skills
Knowledge
is power.
Experience
is required
The publishing of the much-awaited draft of
the Critical Skills List has been welcomed by
industries across the country. The list forms
part of a drive to attract critically deemed skills
to underpin efforts to regenerate the economy.
“We will continue to work relentlessly and without pause
to create a more modern, efficient and competitive
economy that is more open to all South Africans.”
PRESIDENT CYRIL RAMAPHOSA, SONA, 2021
Minister of Home Affairs, Dr Aaron Motsoaledi,
published the 2021 Critical Skills List that was developed
through an extensive scientific methodology led by the
Department of Higher Education and Training, through
its Labour Market Intelligence Research Programme.
The primary aim of the list is to identify occupations
that are in shortage and unlikely to be developed
domestically in time to prevent the obstruction of
economic growth potential in the short to medium term.
According to the Critical Skills List Report there are 107
skilled occupations which are in “acute shortage”.
“It is important to note that the list presented as
preliminary in this report covers more occupations
than those that will eventually be included in the final
Critical Skills List (CSL) to be officially gazetted by
the Department of Home Affairs (DHA). The DHA
will narrow this list down further to ensure that all
occupations for which immigration preference is offered
to foreign nationals are those that are ‘most critical’ for
the development of the country,” the report said.
WHAT IS THE CRITICAL SKILLS LIST?
After consultations with the Department of Higher
Education and Training, the Department of Labour,
the Department of Trade, Industry and Competition
and input from businesses in all industries across South
Africa, the Department of Home Affairs issued a list of
skills it deems to be critically needed in South Africa.
The previous list (issued in 2014) was reviewed and
government has now released a new draft list containing
a list of skills South Africa needs to attract, to grow the
economy and in turn create more job opportunities for
all South Africans.
SUPPLY VS DEMAND
The list addresses the shortage in the quantity of
qualified resources available currently or expected in
future (based on the National Development Plan) to fulfil
the positions in relation to the current industry demand
for the skills.
“The fact that our economy’s demand for skills
outweighs the quantity we have available is encouraging
and means that our economy is growing,” explains Jo-lene
Da Silva-Vergottini, immigration specialist at Xpatweb.
“It is important to note that South Africa is not the only
country with a CSL or shortage in terms of the quantity of
skills needed for their growing economy. Many countries
around the world possess a list of skills they deem critical
and use the list to attract the skills they need to supplement
their local resources. These countries include the USA,
Canada, Australia and Britain, to name a few.”
Britain, for example, recently announced favourable
visa conditions for much-needed healthcare workers.
This does not mean that Britain does not have any
qualified healthcare workers, but rather that their
demand for these resources currently outweighs supply.
South Africa has a similar looming crisis with more
than 48% of qualified nurses currently in employment
reaching retirement age in the next 15 years, according
to the South African Nursing Council. Looking at the
annual intake of nurses and the growing trend of nurses
and care workers leaving South Africa to work abroad,
South Africa is not developing and retaining enough
nurses to ensure we meet the demands of the industry.
It is vitally important for all South Africans to
understand what skills our country needs and how we
as South Africans can contribute in a productive way.
28 | Service magazine

skills
S
VACANCY BULLETIN
Actuary
Advertising specialist
Aeronautical engineer
Agricultural farm
manager
Application
development
manager
Architect
Chef
Chief information
officer
Civil engineer
Data scientist
Digital artist
Dockmaster
Draughtsperson
FET college principal
Fraud examiner
General accountant
General medical
practitioner
Geologist
Geophysicist
Hydrologist
ICT project manager
ICT security specialist
ICT systems
analyst
Industrial engineer
Internal auditor
Investment advisor
Manufacturer
Mechanical engineer
Multimedia designer
Network analyst
Quantity surveyor
Registered nurse
Web developer
THE FOREIGN DESK
In today’s sophisticated and highly competitive
economies, countries are competing for
skills to help them stay abreast
of fast-moving technologies
and rapidly changing
business models. A
growing number of
countries are using
their immigration
policies to attract these
skills to their shores.
Multinationals operating
in various geographical areas need to
be able to expedite the transfer of skilled
individuals to their subsidiaries as needed.
Accordingly, the implementation of skills transfer
plans has become vital due to Covid-19 greatly
inhibiting the mobility of foreign skilled workers,
thus ensuring locals receive necessary training on
these skills.
This year, research shows that occupations in
the engineering and ICT sectors remain most in
demand, followed by occupations such as foreign
language speakers, a range of artisans and c-suite
executive-level management.
EMPOWERING PARTNERSHIPS
The CSL shows South Africa’s failure to close the gaps in artisan and engineering
training in the country. Among the skills listed are metal machinist, industrial
machinery mechanic, electrical equipment mechanic, lift mechanic, fitter
and turner and quality controller (manufacturing), industrial engineers and
technologists, as well as civil and mechanical engineers – all artisanal trades and
engineering qualifications that are in shortage in South Africa.
Sumaya Hoosen, human capital and skills development executive at the Steel and
Engineering Industries Federation of Southern Africa (SEIFSA), says the shortage
of artisans, technicians and engineers has been well-documented, with government
revealing, in 2017, that the country had a shortfall of 40 000 artisans. This was
despite the government’s efforts to promote artisanal careers among school leavers
through its Decade of the Artisan campaign launched in 2014.
“More needs to be done to promote engineering and technical vocational
training as a career option, especially among female students,” says Hoosen. She
calls on businesses in the Metals and Engineering (M&E) sector and the wider
manufacturing industry to ramp up their training efforts by deepening their
partnerships with government and funding entities such as the Sector Education
and Training Authorities to train artisans, technicians and engineers.
These endeavours, together with entrepreneurial and SME development, will help
address township and rural development challenges and stimulate job creation. At
present the country produces about 12 000 artisans per year, but this figure could
be higher much sooner if more businesses in the M&E sector support government.
“SEIFSA believes in the power of partnerships to overcome the obstacles facing the
economy. In the context of training and development, we need to work together to
create a pipeline of skilled artisans, technicians and engineers,” concludes Hoosen.
The National Development
Plan aims to create
30 000 artisans
per year by 2030.
Service magazine | 29

S
skills
MIND THE [GLOBAL] GAP
There is a growing concern among many South Africans that skilled
people are leaving the country in droves, choosing to relocate to
New Zealand, Canada, the UK, Australia and Mauritius, to name
a few. Any discussion about emigration numbers is complicated by
the fact that there is no official bureau in South Africa that collects
emigration data. Resources from StatsSA,
the United Nations International Migrant
Stock database, and national statistics
offices of foreign nations, however, suggest
that upwards of 23 000 people per year are
emigrating from South Africa.
“People who are emigrating are often
skilled and experienced, which is why
they can find work abroad. Therefore, it
Visas for foreign nationals listed on the CSL
are typically processed two to six months faster.
This puts companies who urgently need to replace
scarce workers not on the list at a disadvantage.
is important to be reminded that skills are globally sourced for the
economic benefit of those countries and South Africa must compete
for scarce skills,” Marisa Jacobs, Director at Xpatweb.
Xpatweb has carried out a Critical Skills Survey for the past
five years, providing reliable data on the needs of South African
businesses. As a result, it was the only private sector organisation
invited to present its findings before the Departments involved in
compiling the draft list.
FOREIGN LANGUAGES: CRITIQUE
Foreign language speakers, a role featured in the previous CSL, has
been omitted from the current draft list.
“Foreign language employees are more valuable than the language
they speak and are critical to job creation inside South Africa’s
borders,” says Marisa Jacobs, Xpatweb. This skill appears high on
the company’s Critical Skills Survey results.
Export industry
Mary-Ann McCormick, HR Director at Indian Ocean Export
Company (IOEC), says foreign language workers are essential
to cementing strong business relationships in the firm’s Frenchspeaking
market abroad.
The company’s business development managers and export
coordinators must be fluent in the language to a degree not found
in South Africa. “If we are able to source them, they usually don’t
have the skillset or experience we demand for the quality of service
we must deliver,” she says.
Foreign language workers not only communicate complex
information fluently but bring with them international experience
and an understanding of the unique traits and expectations of
IOEC’s target market.
McCormick reports that the company previously tried outsourcing
these functions to agents in the destination regions but assuring
service quality from a distance proved impossible. “For our model to
work, our business development managers and export coordinators
must be located in-house,” she says.
Contact centres
Organisations outsourcing their foreign market support function
to contact centre operators typically insist that high-quality foreign
language consultants be available to their customers. Contact centre
services include telephone, chat and email support, as well as website
translation and marketing programmes aimed at nominated countries.
“These activities require in-depth knowledge of the specific
country, its customs, traditions, preferences, nuances and more,”
says Sharon Haigh, CEO of Contact Centre Management Group
(CCMG), a professional body representing over 2 000 South African
contact centres. “Merely being able to speak the language without
this knowledge has proven insufficient for our members’ needs,”
she says.
According to Haigh, the 15% of foreign speakers typically
employed at local contact centres ensures those companies can
provide jobs to the 85% of local workers who support them. In
addition, South Africa has been voted the world’s second most
attractive business process outsourcing (BPO) destination for three
years running. It can improve this standing by focusing on authentic
foreign language support.
Tourism
Few South African business leaders missed Finance Minister
Mboweni’s 2021 Budget Speech in which he called for a focus on
job-creating sectors, specifically tourism. Leaders in the tourism
field have long complained that a lack of competent foreign language
speakers is hurting the industry, especially during peak season.
Travellers with money to spend would rather frequent regions where
their native tongue is represented.
The Department of Tourism has acknowledged this need by
offering a two-month course in Mandarin to local tour guides.
However, one cannot learn a language effectively in two months and
guides make up a small part of the overall business and marketing
drive to attract tourists in the first place.
Jacobs agrees: “Tourism is a major contributor to the South
African economy and native foreign language speakers are strongly
linked to growth in that sector.” She adds that preliminary results
from Xpatweb’s 2020/21 Critical Skills Survey reveal a significant
increase in demand for this role among participants, jumping from
6% last year to 16% in 2021.
30 | Service magazine

skills
S
Left: Alderman James Vos, Mayoral Committee Member for
Economic Opportunities and Asset Management, City of Cape Town
(L) and Mushfiq Hopkins, General Manager of iContact Cape Town.
iCONTACT IN CAPE TOWN
iContact, a leading BPO provider, officially launched its new Cape
Town operation in Paarden Eiland earlier this year. The investment
into Cape Town’s burgeoning BPO sector is a strategic development
for iContact, which specialises in inbound and outbound customer
service and sales, financial services support, customer retention and
loyalty management, lead generation and back-office fulfilment
predominantly for international business clients based in the US,
UK, Europe and Australia.
iContact is part of the Alefbet Holdings group which owns
numerous collections and customer service BPO providers and
employs some 1 500 full-time employees across its operations in Cape
Town and Johannesburg.
The launch event was attended by Minister David Maynier,
Western Cape Provincial Minister of Finance and Economic
Opportunities, and Alderman James Vos, Mayoral Committee
Member for Economic Opportunities and Asset Management, City
of Cape Town. Cape BPO, the City of Cape Town and the Western
Cape’s strategic business partner responsible for the growth and
development of the BPO industry in the region, BPESA, and the
Department of Trade, Industry and Competition (dtic) were also on
hand to welcome the investment into Cape Town’s BPO industry,
which created almost 3 000 new jobs in 2020 despite the challenges
posed by the Covid-19 pandemic.
“Having our operations geographically placed between Cape
Town and Johannesburg presents a real win for our client base
across diverse industry sectors, and a distinct competitive advantage
for our business,” says Clinton Cohen, CEO of iContact BPO.
“The combination of our strategic locations, advanced business
intelligence tools, data analytics capabilities, skilled leadership and
large, educated skills pool with strong English language proficiency
present our customers with an unrivalled value proposition.”
From an impact sourcing perspective, the growth of Cape Town’s
BPO sector is also particularly good news for youth employment, an
area where some 50% of young South Africans are unemployed. The
BPO sector provides a crucial lifeline for thousands of people, notably
previously disadvantaged and disabled young South Africans – who
find meaningful and stable employment in this growing industry.
“Across our business, impact sourcing is a strategic imperative for
us. A key attraction for setting up our operations in Cape Town is the
tremendous collaboration that takes place between the public and
private sectors to firstly attract overseas companies and investment
to our shores by offering an exceptionally strong and efficient BPO
sector, and secondly, the ability to create jobs and build careers for
marginalised youth in the region through impact sourcing. Cape
Town’s BPO sector has much to offer international businesses in this
regard, with a very favourable exchange rate.
“South Africa is an incredibly attractive option for outsourcing
at a time when businesses across the globe are under enormous
cost pressures due to the Covid-19 pandemic. South Africa is
currently the third-largest offshore location for UK and Australian
organisations to onshore service delivery, along with a comparable –
if not better – quality of service, cultural affinity and great work ethic
of our people. It’s a win-win all round,” concludes Cohen.
A key attraction for setting up our operations in
Cape Town is the tremendous collaboration that
takes place between the public and private sectors.
According to Minister Maynier: “The opening of the iContact
offices in Cape Town today is a welcome boost for the BPO sector in
the Western Cape and demonstrates that the BPO sector is an ‘island
of hope’ as it is one of only two sectors that created jobs in the Western
Cape last year. Importantly also, the BPO sector is creating jobs for
young people in the Western Cape and this is why we are working
to create an enabling environment for this sector to grow. In this
financial year, we allocated R30-million to provide stipends to 1 000
new BPO agents for on-the-job training
in call centres in the Western Cape.
Not only have these funds provided
opportunities for young people, but also
alleviated skills shortages and ensured
we remain globally competitive in the
BPO sector in the Western Cape.”
Clayton Williams, CEO Designate at
Cape BPO adds: “We welcome iContact
to the Western Cape and look forward
to celebrating your success and have no
doubt that you will contribute to creating
many employment opportunities for
our unemployed youth. As Cape BPO,
we will walk this journey with you as
your partner and want to thank our
partners at the City of Cape Town and
the Western Cape Government for their
respective contributions to the growth
and sustainability of our sector.”
• For more information visit
www.icontactbpo.co.za
Minister David Maynier,
Western Cape Provincial
Minister of Finance and
Economic Opportunities.
Service magazine | 31

S
skills
IT’S A WRAP: Private sector is pivotal
Stable demand for plastics in diverse industries should
place plastics manufacturers in good stead but increasing
global competition and a shortage of qualified skills make
them ill-equipped to respond. Plastic product machine
operators are on the list of skills that are lacking in South
Africa. 1 This includes machine operators for plastic
cable-making, plastic compounding and reclamation,
plastics fabricators or welders, plastics production,
reinforced plastics and composite trade’s workers.
“These skills are not difficult to learn. However, most
schools are not geared to prepare people for trades
work. Yes, there are trade schools but for many South
Africans these are not accessible due to location and
financial circumstances.
“Although there is strong effort from government
with its Fit for Jobs initiative, it is not pervasive enough
to reach learners in townships. What this means is that
young people who could have an interest and talent are
not being exposed to trade subjects and are unaware of
career prospects in these fields,” says Deon Oberholzer,
director at ProudAfrique Human Capital.
The local plastics manufacturing industry is grappling
with a shortage of qualified skills as processes, materials
and production become more sophisticated. The need
to address the skills gap is pertinent enough that the
Tshwane University of Technology (TUT) introduced a
new degree, the Bachelor of Engineering Technology in
Materials Engineering in Polymer Technology, in 2019.
However, stats from 2018 suggest that around 140 000
grade 12 students complete the matriculation examination
with a bachelor’s pass, and of these, only about 50 000
students pass mathematics with a score higher than 50%. 1
This means the supply of students who can potentially
access university and science-based TVET programmes
is minor compared to the skills demand.
Oberholzer says plastics manufacturing companies
have a role to play in equipping people with the relevant
training and practical skills. Work-based programmes
that focus on developing practical skills and knowledge
in the field would help to address the skills gap and help
companies to participate more effectively in the plastics
manufacturing and injection moulding industry.
Although there is strong effort from government
with its Fit for Jobs initiative, it is not pervasive
enough to reach learners in townships.
“Apprentice programmes provide good entry-level
education as well as crucial on-the-job training and
experience. For companies, workplace-based learnership
programmes are an effective way to build the skills
and competencies they need to remain competitive.”
Gideon Potgieter from Resolution Circle agrees:
“There is a critical need to provide integrated,
service-learning opportunities to drive skills
development in the ever-changing field of
engineering and related technologies.”
ProudAfrique Human Capital and Resolution
Circle, a training hub part of the University of
Johannesburg, are collaborating to deliver focused
workplace based learnership programmes for
the plastics manufacturing, CNC and injection
moulding industries.
These programmes are recognised as
Category B skills programmes in the learning
matrix of the amended BEE Codes, which allows
for the salaries of participants to be recognised
as part of the Skills Development Expenditure and
companies can improve their BEE rating. Companies
are also eligible for tax rebates.
For example, an organisation with a R40-million
turnover budget receives R270 000 over three years
for training three people. They can claim from SARS
under Section 128 for R160 000 in tax relief. Multiplied
by 28%, which is the company tax they would get back,
would see them receiving an additional R44 800.
The company would score 15 BEE points for
employing black learners. Higher points can be
achieved for employing black females, people with
disabilities and for employing them permanently once
their training is complete.
Oberholzer concludes: “The bottom line is that
companies have an important role to play in addressing
the skills gap in the plastics manufacturing industry
and it does not have to break the bank if they offer
recognised work-based learnership programmes
that allow them to apply for subsidies and claim
tax rebates.” S
___ __
Reference:
1. Force, T. (2018, 02 22).
Which skills are lacking
in South Africa. Retrieved
from training force: https://
www.trainingforce.co.za/
power-education-turningobstacles-opportunities-2/
32 | Service magazine

announcement
small business
S
The Foundation of Economic
Recovery and Sustainability
Following the unprecedented challenges of 2020, SMMEs will be the crucial drivers
of economic recovery
SMME VIRTUAL ROADSHOW
The SMME Roadshow, supporting developing businesses since 2014, is being relaunched
by Global Africa Network in a virtual format in 2021.
• Focus Hubs will cover key topics covered including:
• Access to funding
• Access to markets
• Covid-19 relief
• Training and skills development
• Compliance and regulatory
• Business and technology support
WHY A VIRTUAL EVENT?
· Increased flexibility and access
· Greater opportunity for interaction
· Monitoring and recording
of attendance and interaction
Regional Hubs will provide provincially-specific support and information
Virtual rooms allow organisations to present their offerings to the SMME community.
The SMME Virtual Roadshow will be an important
driver of economic growth and job creation
Contact info@gan.co.za for further information on participation (for SMMEs)
and sponsorship opportunities (for organisations providing support to SMMEs)

SHAPING THE MOBILITY
OF THE FUTURE
ROAD MOBILITY
SERVICES
Tolling interoperability
solution
Free-Flow /
Electronic Tolling
solutions
Charge-Over-
Distance
solutions
Speed monitoring
and enforcement
Easytrip® solutions
Working closely with its
partners, Egis develops
and operates innovative
solutions to:
• Optimise traffic flows, while
reducing journey times and
improve road safety;
• Strenghten the integration of
complex transport networks
in our cities, by increasing
operational efficiencies,
maintenance standards and a
range of value-added services
to commuters.
URBAN MOBILITY
SERVICES
Rush Hour
Avoidance
Program
On-street Parking
Management and
Enforcement
Multi-modal Public
Transport solutions
and integration
Smart
Parking
www.egis-southafrica.co.za
Follow Egis on:
Egis Operation South Africa (Pty) Ltd
Nelson Mandela Square, West Tower, 2nd Floor
Sandton, 2196
Email: contact@egis-southafrica.co.za
Egis -SIE20_190 - © iStockphoto.com / Blue Planet Studio / Rawpixel