Service Issue 81

Service magazine addresses key issues related to government leadership and service delivery in South Africa.

Service magazine addresses key issues related to government leadership and service delivery in South Africa.


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ISSUE <strong>81</strong><br />

DEC/JAN/FEB 2022/3<br />

L E A D E R S H I P I N G O V E R N M E N T<br />











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social challenges can be tackled and addressed.<br />

At BCX, we have the expertise, product and service<br />

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challenges in order to create exceptional service<br />

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Visit www.bcx.co.za for more.<br />

Our most important customer, is yours.<br />


S<br />

editor’s note<br />

Servicing SA’s<br />

socio-economic development<br />

When it comes to the development of Africa, the decisions facing the<br />

continent’s leaders today are of historical significance.<br />

More than anything else, energy systems are the very fabric of<br />

Wbusiness and society. Countries across Africa want to make good<br />

on their objective of building huge amounts of new generation<br />

capacity to get ahead on vast increases in energy demand and set<br />

the continent on the path of growth it deserves. Africa knows where<br />

it needs to go. The big question is how. And more specifically: what<br />

is the most cost-effective energy mix that can be built to deliver all<br />

the new electricity capacity that is needed? (Page 8)<br />

South Africa will have to clear some tough socio-economic hurdles<br />

to achieve a just transition away from fossil fuels. These hurdles will<br />

be overcome by a combination of reallocating capital from areas<br />

with high fossil fuel exposure towards renewables and ongoing<br />

engagements with listed companies on their transition plans (page 10).<br />

A major issue affecting existing investors is the current public<br />

negativity towards any activity related to oil and gas exploration.<br />

Together with the Department of Mineral Resources and Energy,<br />

PASA is doing its utmost to educate the public of the many potential<br />

benefits that exploitation of indigenous oil and gas resources could<br />

bring. There is currently a major series of engagement initiatives<br />

underway to achieve this (page 6).<br />

Undoubtedly, one of the major challenges in the development of<br />

Africa – a continent with a population of approximately 65% young<br />

people – is youth unemployment. Alarmingly, it is estimated that<br />

50% of the youth in Africa will be economically inactive by 2025.<br />

Furthermore, the vocational system in South Africa suffers from<br />

insufficient relationships with business, leaving training institutes<br />

ill-equipped to meet employers’ skill requirements and young<br />

people largely either underexposed or not exposed at all to quality<br />

career guidance that would allow them to transition into the world<br />

of work (page 20).<br />

And nearly every government in the world knows it needs to go<br />

digital – to automate processes, support service delivery, become<br />

more efficient and improve citizens’ lives. The complexity of these<br />

IT environments is expensive to manage and with governments<br />

under significant pressure to cut costs, funding for transformation<br />

programmes is limited. Within that massive spending there is a<br />

tremendous opportunity for governments to acquire the necessary<br />

IT infrastructure services more affordably and with better<br />

performance (page 14).<br />

The country has made significant progress since 1996 in<br />

expanding basic water supply services, especially within the<br />

vulnerable areas. But inequality in access to basic services is still a<br />

reality. Progress with water supply and sanitation service delivery has<br />

been slow and, in some instances, it’s deteriorating. Water is a critical<br />

resource. Its provision should be seen as an enabler that facilitates<br />

socio-economic development (page 22).<br />

It seems South Africa needs a handful of enablers to set it on the<br />

path of growth it deserves. <strong>Service</strong> seems to be a significant enabler.<br />

The big question is how.<br />

Alexis Knipe<br />

Editor<br />

Editor: Alexis Knipe | Publishing director: Chris Whales | Managing director: Clive During | Online editor: Christoff Scholtz | Design: Brent Meder<br />

Production: Yonella Ngaba | Ad sales: Venesia Fowler, Tennyson Naidoo, Graeme February, Tahlia Wyngaard and Vanessa Wallace<br />

Administration & accounts: Charlene Steynberg, Kathy Wootton | Distribution & circulation manager: Edward MacDonald | Printing: FA Print<br />

<strong>Service</strong> magazine is published by Global Africa Network Media (Pty) Ltd | Company Registration No: 2004/004982/07<br />

Directors: Clive During, Chris Whales | Physical address: 28 Main Road, Rondebosch 7700<br />

Postal: PO Box 292, Newlands 7701 | Tel: +27 21 657 6200 | Email: info@gan.co.za | Website: www.gan.co.za<br />

No portion of this book may be reproduced without written consent of the copyright owner. The opinions expressed are not necessarily those of<br />

<strong>Service</strong> 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<br />

publishers would like to express thanks to those who Support this publication by their submission of articles and with their advertising. All rights reserved.<br />

Member of the Audit Bureau<br />

of Circulations<br />

2 | <strong>Service</strong> magazine

contents<br />

S<br />

IN THIS ISSUE | SERVICE <strong>81</strong> | JANUARY/FEBRUARY/MARCH 2023<br />


A round-up of news, snippets and trends<br />



PASA is licensing exploration in pursuit of<br />

energy security<br />



Africa should adopt renewable energy on a<br />

massive scale<br />

4<br />



The role of capital allocation in climate<br />

change<br />

6<br />

8<br />


A pillar of digital government<br />

10<br />


For Africa’s youth<br />


After years of progress<br />

14<br />


IS ON THE UP<br />

And so is plastic recycling<br />

20<br />


A rapid influx of community recycling<br />

projects is welcome<br />

22<br />


Decreasing Africa’s landfills<br />

24<br />


By partnering with municipalities<br />

26<br />

27 28<br />

<strong>Service</strong> magazine | 3

S<br />

snippets<br />



President Ramaphosa has welcomed the 1.6% growth in Gross<br />

Domestic Product (GDP) recorded in the third quarter of 2022 as<br />

an encouraging indication that the Economic Reconstruction and<br />

Recovery Plan is bearing fruit. The agriculture, finance, transport<br />

and manufacturing industries were the main drivers of growth on the<br />

supply side of the economy. The demand side of the economy was<br />

lifted by a rise in exports and government consumption.<br />

Real GDP, measured by production, was R1.161-billion in the<br />

third quarter, which is above the previous peak of R1.152-billion<br />

recorded in the fourth quarter of 2018. For Quarter 3, the official<br />

unemployment rate had decreased by one percentage point<br />

compared with Quarter 2. About 204 000 more people had been<br />

employed in Quarter 3 compared to the previous three months.<br />

Ramaphosa said: “Given the condition of our economy, we have no<br />

room to be complacent, but we do have room to acknowledge that<br />

our economic recovery is in progress.”<br />


To protect locals from the ongoing impacts of loadshedding, the City<br />

of Cape Town recently issued a tender that will establish third-party<br />

aggregators who will reward customers for reducing their power usage<br />

when the grid is constrained.<br />

“In principle, this sounds great, but whether it will work or not comes<br />

down to the detail,” says Roger Hislop, energy management systems<br />

executive at CBI:Electric. His first concern is how numerous loads<br />

scattered across thousands of locations will be turned off. “The<br />

technology exists but has not yet been tested in widespread deployment.<br />

The back-end management systems will need to be more complex.”<br />

He points out that the City of Cape Town will need to check their numbers<br />

on the supply side against those produced by the aggregators with the<br />

thousands of load control devices under its management. “Essentially,<br />

what this means is that quite a lot of work will need to go into exactly<br />

how the data is captured and how the incentives are paid out to ensure<br />

that the model is economically viable. Most municipalities in South Africa<br />

derive a substantial amount of their revenue from the markup they make<br />

on the electricity they<br />

resell from Eskom. The City<br />

of Cape Town will be faced<br />

with a double whammy –<br />

they’ll make less money<br />

from the electricity they<br />

sell, and they’ll also be<br />

paying out discretionary<br />

loadshedding incentives.”<br />


The massive population increase in South Africa over the past decades and<br />

failing water infrastructure have compounded the current water crisis in<br />

the country, says Hans van Kamp, CEO of Kampwater, a Stellenbosch-based<br />

water treatment supplier.<br />

“Water supply systems and the distribution networks are high on<br />

maintenance. In Gqeberha, it is estimated that 40% of the municipal water<br />

is lost due to leaking pipes. In the rest of the country, large amounts of<br />

treated drinkable water is lost daily because of the thousands of leaks that<br />

characterise South Africa’s water piping system.<br />

“A major part of the maintenance budget should be spent on the<br />

infrastructure, the current pipework network. However, most<br />

municipalities are struggling to keep up and prevent the system from<br />

collapsing. There are some exceptions but not many,” says Van Kamp.<br />

“In 1994, Cape Town had 2.384-million residents and water usage of<br />

roughly 300 megalitres per day (MLD). This year, there are 4.760-million<br />

people in the same area and water usage of 769 MLD. That is more than a<br />

100% increase in 28 years with a system that did not grow at the same<br />

rate to provide for this increase,” says Van Kamp.<br />

He says if all the new dams identified by the government are built as<br />

promised, it will help to alleviate the pressure. These include the dam<br />

on the Mzimvubu River (Eastern Cape), the expansion of the Clanwilliam<br />

Dam (Western Cape), Nwamitwa and Tzaneen dams (Limpopo),<br />

Hazelmere Dam (KwaZulu-Natal) and Polihali Dam (Lesotho), which will<br />

provide water to Gauteng. But, says Van Kamp, for at least the next six<br />

years, water supply will get tighter.<br />

“People need to know that there is going to be a squeeze on water<br />

supply. This information is essential if communities and households are<br />

to play their part. People will not change their behaviour unless they are<br />

told what is happening and how to avoid a crisis,” says Van Kamp.<br />

4 | <strong>Service</strong> magazine

snippets<br />

S<br />



Craig Kesson, PwC South Africa advisory partner and cities leader, says:<br />

“Resolving the energy shortfall requires a collective effort across private<br />

and public sectors, including, and especially, by municipalities who play a<br />

fundamental role in the development of sustainable energy strategies. By<br />

playing a key role in resolving the energy supply gap, municipalities will<br />

be able to contribute to local economic development and job creation.”<br />

PwC’s newly released report, The cities’ role in managing the energy<br />

supply challenges, outlines what can be done in the municipal sphere<br />

to help fix the country’s energy shortage, and discusses how these<br />

solutions can have potential revenue benefits for municipalities.<br />


South African municipalities have a constitutional mandate to distribute<br />

electricity to their citizens. They predominantly purchase power directly<br />

from Eskom and distribute and sell power to consumers or reimburse<br />

Eskom for direct distribution to them. The on-sell of electricity is a key<br />

source of revenue for municipalities and has accounted for almost 30%<br />

of municipal revenues in recent years. Without this revenue stream,<br />

which often leaves municipalities with surplus funds, many are not able<br />

to cross-subsidise other debt and expenditure items.<br />

Nasreen Mosam, PwC international development partner, says: “This<br />

culminates in a cycle where the rising cost of electricity leads to rising<br />

prices for consumers, which in turn results in more people being unable<br />

to pay service charges. This further increases costs and reduces revenue<br />

for municipalities, increasing the negative impact on municipal finances,<br />

which means that providing key services such as public security, housing<br />

and maintaining public spaces is also affected.”<br />


“Cities’ energy strategies will play a major role in achieving sustainability<br />

and energy stability in the long run,” Kesson says. “The ideal scenario<br />

would be for municipalities to purchase electricity from different<br />

suppliers in a competitive market at competitive prices, which will allow<br />

for resale at a surplus and transmission at lower cost to consumers.<br />

Efforts are underway to achieve this through the unbundling of Eskom<br />

and opening of the energy market to competition from the private sector.”<br />

PwC’s report outlines seven immediate measures to<br />

help bridge the energy supply gap. These solutions include<br />

municipalities:<br />

• Enabling wheeling of energy generation<br />

• Supporting the installation of microgrids and small-scale embedded<br />

generation<br />

• Supporting the purchase of power from Independent Power Producers<br />

(IPPs)<br />

• Prioritising spending on maintenance of infrastructure.<br />

Mosam says municipal efforts to close the energy supply gap and bring down<br />

energy prices can also set the course for sustainable municipal revenue<br />

sources to finance spending.<br />

Kesson adds: “Ideally, we would see the private sector generate renewable<br />

energy and distribute it more cost-effectively to consumers through<br />

municipalities. Municipalities would have long-term contracts with private<br />

IPPs to purchase renewable electricity at guaranteed prices that are lower<br />

in a competitive market, and municipalities would win because they would<br />

obtain revenue for their role in distribution. Consumers would win because<br />

electricity prices would likely come down in a competitive system. The<br />

lower cost of electricity and higher certainty of supply would contribute to a<br />

virtuous cycle of economic growth, rising property values, customers paying<br />

accounts, employment, and greater socio-economic development outcomes.”<br />

Municipalities need to act now to mitigate supply gaps in the short<br />

run by putting in place the necessary policy frameworks, mobilising<br />

resources that will enable wheeling, and re-entering small and medium<br />

scale generation into the municipal grid. Crucially, municipalities<br />

will need to establish a long-term strategy regarding their own role in<br />

electricity provision going forward. This will include modelling the optimal<br />

mix of different energy sources needed to optimise supply and meet<br />

demand, as well as attracting and retaining strong, capable teams to<br />

accommodate the new skill sets required to operate in this market. This<br />

way, municipalities will be able to retain their role in energy generation<br />

and be part of a sustainable energy solution that works for producers<br />

and consumers.<br />

25 YEARS OF CCMA<br />

The Commission for Conciliation Mediation and Arbitration (CCMA) has saved 171 000 jobs through its dispute resolution initiatives – this as the organisation<br />

celebrates 25 years of its existence. “We are an institution of statutory creation – born out of the belly of South Africa’s Constitution led by the values of the<br />

Constitution – and we live those values,” says executive director Advocate Sello Morajane. Since opening its doors, the CCMA has handled more than 3.7-million<br />

cases. In the process, the CCMA issued more than 547 000 awards and 130 000 of those awards were enforced.<br />

<strong>Service</strong> magazine | 5

S<br />

energy security<br />




Petroleum Agency South Africa is licensing exploration in pursuit of the goal of energy security.<br />

PPetroleum Agency South Africa (PASA) strongly believes that the<br />

development of indigenous hydrocarbons, and especially gas, has a<br />

role to play in building South Africa’s economy and in facilitating a<br />

just transition to new energy sources. A recent report published by<br />

the International Energy Association (IEA) argues against framing<br />

the debate in that way. Both can and should be used, according to<br />

Africa Energy Outlook 2022. A key factor in allowing Africa to continue<br />

to industrialise will be an uptick in the discovery and use of gas. If all<br />

the gas so far discovered in and off Africa was used, the continent’s<br />

share of global emissions would rise by 0.5% to 3.5%.<br />

The enactment of the Upstream Petroleum Resources<br />

Development (UPRD) bill by the South African parliament will<br />

put PASA in a stronger position to attract further investment in<br />

the upstream sector. The Agency is preparing for this by constantly<br />

evaluating prospectivity and preparing for future licensing rounds<br />

and new data acquisition.<br />

The bill will change the main mechanism for granting exploration<br />

licences to an invitation-to-bid or licence-round system, as opposed<br />

to the current direct application method. This will improve PASA’s<br />

ability to manage the allocation of exploration acreage, making it<br />

more accessible, inclusive and equitable. The bill will also improve the<br />

regulator’s ability to control acreage relinquishment. This will improve<br />

the availability of exploration opportunities.<br />

If South Africa can increase its own energy resources and at the<br />

same time expand the type of resources being exploited (for example,<br />

natural gas) so that there is more flexibility in supply, the country will<br />

be able to wean itself off imports and move closer to energy security.<br />

If energy independence or something approaching independence<br />

could be achieved, there would be obvious consequences for stability<br />

and economic growth.<br />

From a legislative and government perspective, there is support for<br />

prospecting for new resources. The Minister of Mineral Resources<br />

and Energy, Gwede Mantashe, has argued that South Africa’s<br />

indigenous oil and gas resources must have a role to play in South<br />

Africa’s future energy mix.In addition, President Cyril Ramaphosa is<br />

paving the way for independent power production is likely to give a<br />

major boost to investment in developing gas discoveries for electricity<br />

generation.<br />


The large Brulpadda and Luiperd discoveries made by TotalEnergies<br />

and their partners in the last few years have opened up a worldclass<br />

hydrocarbon play in the deep ocean off South Africa’s south<br />

coast. These discoveries are extremely encouraging and all evidence<br />

suggests far more potential in the area.<br />

In the first week of September 2022, TotalEnergies applied to PASA<br />

for production rights for most of the area where their prospecting<br />

had been successful.<br />

In addition, the recent successes offshore Namibia are extremely<br />

significant and encouraging for South Africa as the same geological<br />

6 | <strong>Service</strong> magazine<br />

Countries with energy security or independence have an advantage in terms of stability and the potential for economic growth.<br />

Credit: Shutterstock

energy security<br />

S<br />

Renergen, through its subsidiary Tetra4, is the only holder of an onshore petroleum production licence issued by the Department of Mineral<br />

Resources and Energy through PASA. The massive resources of natural gas that Renergen has been working on for the last few years<br />

reached commercial production in October 2022 in the northern Free State.<br />

sedimentary basin continues into South African territory, extending<br />

from the border with Namibia to offshore Cape Town and far out to<br />

sea, comprising an area of over 160 000 square kilometres. Shell holds<br />

exploration acreage in the South African southern sector of the basin<br />

together with partners TotalEnergies and PetroSA. TotalEnergies<br />

holds further acreage in the South Africa sector of the Orange Basin<br />

with partners Sezigyn in ER343 and Impact Africa in ER335. To the<br />

east and north-east of these blocks is ER339 where Eco Atlantic holds<br />

an interest.<br />


A major issue affecting existing investors is the current public<br />

negativity towards any activity related to oil and gas exploration.<br />

Together with the Department of Mineral Resources and Energy<br />

(DMRE), PASA is doing its utmost to educate and inform the public<br />

of the many potential benefits that exploitation of indigenous oil and<br />

gas resources could bring. There is currently a major series of public<br />

consultation and engagement initiatives underway to achieve this.<br />

This included a series of meeting that were held during 2022 and<br />

culminated in a joint DMRE, PASA and Department of Forestry,<br />

Fisheries and the Environment (DFFE) colloquium. At this event,<br />

environmental impact considerations of upstream oil and gas activities<br />

were comprehensively discussed.<br />

In a television interview broadcast from the African Mining<br />

Indaba held in 2022, PASA CEO Dr Phindile Masangane said the<br />

following about seismic surveys, the environment and economic<br />

growth:<br />

We acknowledge that exploration and production of oil and gas<br />

entails risks to our environment but technology has advanced and<br />

South Africa has adopted those technological advancements that<br />

help us to minimise the risk to our environment.<br />

What does this exploration entail? A lot has been said about<br />

seismic surveys in the media. Seismic surveys are actually a<br />

very old technology that has been used and it is now a mature<br />

technology, to make sure that the impact on our marine ecosystem<br />

is minimised.<br />

There is also a big misconception in the public that these seismic<br />

surveys are purely for the oil and gas industry. As there is pushback<br />

on seismic surveys, we must be careful as a country to note that this<br />

technology is used not just for oil and gas. It is actually used to define<br />

our maritime borders and it is used in other countries for offshore<br />

wind technologies.<br />

What do these seismic surveys entail? This is literally the releasing<br />

of pressurised air into our seabed and then we collect the signal as the<br />

sound bounces back into the bottom of the ship. That’s what helps us<br />

to collect data to know where the oil and gas is located underneath<br />

the seabed. In terms of other technologies, for example offshore wind,<br />

they know from the data where to locate the wind turbines on the<br />

seabed because they know what the geological subsurface looks like<br />

and they know which are the points where the wind turbines can be<br />

constructed.<br />

It is a very, very useful technology. The impacts are well known<br />

and there are mitigation measure that can be used to minimise those<br />

impacts. S<br />

<strong>Service</strong> magazine | 7

S<br />

energy<br />

Africa’s energy<br />

future at a crossroad<br />

Africa can adopt renewable energy on a massive scale and save billions along the way.<br />

With Kenneth Engblom, vice president, Wartsila Energy<br />

W<br />

When it comes to building the future of energy in Africa, the<br />

decisions facing the continent’s leaders today are nothing less than<br />

of historical significance. Energy systems are the very fabric of<br />

business and society. Countries across Africa want to make good on<br />

their objective of building huge amounts of new generation capacity<br />

to anticipate vast increases in energy demand and set the continent<br />

on the path of development it deserves.<br />

Africa knows where it needs to go. The big question is how. And<br />

more specifically: what is the most cost-effective energy mix that can<br />

be built to deliver all the new electricity capacity that is needed?<br />


Technologies that are right for Europe based on its existing<br />

infrastructure, population density and natural resources can be<br />

wrong for others. Each region must find its own optimal way to build<br />

its energy system. Many African countries have one important point<br />

in common: maybe more than anywhere else, the models indicate<br />

that the best path to building the most cost-optimal energy system is<br />

to maximise the use of renewable energy.<br />

The cost of renewable energy equipment has decreased very<br />

rapidly in recent years and when this equipment runs on Africa’s<br />

massive solar and wind resources, what you have is a cost per KW/h<br />

produced that beats all other electricity technologies hands-down.<br />

If you add the fact that most electricity grids on the continent<br />

are relatively underdeveloped, favouring renewable energy over<br />

traditional power generation like coal or gas turbine power plants<br />

becomes a no-brainer.<br />

Although relatively ambitious renewable energy targets have been<br />

set by governments across the continent, these do not always go far<br />

enough. Contrary to what some industry and political leaders may<br />

believe, maximising the amount of renewable energy that can be<br />

built in the system is by far the cheapest strategy available, while at<br />

the same time ensuring a stable, reliable network.<br />

In Africa, renewables must become the new baseload. And yes,<br />

renewables are intermittent. But combining them with flexible<br />

power generation capacities will guarantee the stability of the grid<br />

and save billions of dollars along the way.<br />


It would be misguided to consider the intermittency of renewables<br />

as a showstopper. It is not, provided they are paired up with highlyflexible<br />

forms of electricity generation like gas engine power plants.<br />

To maintain a balanced system, flexible back-up and peak power<br />

must be available to ramp up production at the same rate that wind<br />

or solar production fluctuates, but also to match the fluctuating<br />

energy demand within the day. The systems must be able to respond<br />

to huge daily variations in a matter of seconds or minutes.<br />


Highly ambitious renewable energy objectives in Africa are not only<br />

achievable, but they are also the soundest and cheapest strategy for<br />

the successful electrification of the continent. Making smart strategy<br />

decisions will lead to more resilient electricity systems and offer<br />

vastly superior whole-system efficiencies. S<br />

8 | <strong>Service</strong> magazine

energy<br />

S<br />


By Blessing Bongani Sibande, ACTIVATE! Change Drivers<br />

Regardless of the impact, climate change will require reassessing risks, costs and levels<br />

of service as well as the trade-offs among these for providing different services because<br />

the conditions are changing. What this means is that municipalities cannot continue to<br />

maintain the status quo as it may be more expensive in the long term and lead to lower<br />

climate change resilience.<br />

Municipalities should plan to evaluate service delivery planning, day-to-day operations, as<br />

well as the maintenance and replacement of infrastructure with climate change in mind.<br />

Climate considerations in service delivery<br />

• Use climate scenarios to understand how demands on infrastructure will change over time.<br />

• Monitor maintenance and repairs schedules to reflect changing conditions.<br />

• Update levels of service to mirror climate risks, including type, size and scale of services.<br />

• Evaluate changing risks, including the impact of climate change on asset lifespan.<br />

• Monitor and update environmental programmes and service delivery plans as additional<br />

information becomes available.<br />

Blessing Bongani Sibande<br />

• Identify and plan for adapting to new opportunities across services.<br />

• Determine appropriate timing for capital investments for adaptation, leveraging asset replacement and renewal.<br />

• Identify the impact of climate change on natural assets and the services that they provide.<br />

• Rehabilitate or protect natural assets that increase the resilience of service delivery systems.<br />

• Update design parameters to changing conditions.<br />

<strong>Service</strong> magazine | 9

S<br />

energy<br />



The role of capital allocation is one of the single-most vital tools in the world’s climate change response to date.<br />

By Robert Lewenson, head of responsible investment, Old Mutual Investment Group<br />

At COP26, it was announced that South Africa had secured<br />

funding commitments totalling US$8.5-billion from developed<br />

countries to invest towards a just transition to net-zero carbon<br />

emissions. The funding is an opportunity to reset, not only from a<br />

governance perspective, but also to imagine a new reindustrialisation<br />

pathway for the South African economy. Global listed markets have<br />

already seen a big shift away from primary producers of fossil fuels,<br />

which today account for only 2.5% of the MSCI World Index. But<br />

decarbonisation is not as simple as steering portfolio investments<br />

towards listed companies with high ESG ratings.<br />

Yes, investors should start thinking about decarbonising their<br />

investment portfolios; but we must also consider the real-world<br />

infrastructure investments in, for example, renewable energy,<br />

needed to achieve net-zero targets over the next three to four<br />

decades. Support for portfolios that achieve ESG outcomes,<br />

including decarbonisation, is on the rise thanks to growing<br />

evidence that sustainable investing enhances rather than impedes<br />

investment returns. Stewardship will emerge as our biggest impact<br />

in delivering sustainable development outcomes; our North Star is<br />

to achieve impact-aligned sustainable development goals through<br />

our proactive stewardship.<br />

In this context, all stakeholder engagements take place in<br />

cognisance of factors like climate risk, ethical leadership, social<br />

inequality, sound pay as well as social justice and transformation.<br />

South Africa will have to clear some tough socio-economic hurdles<br />

to achieve a just transition away from fossil fuels. These hurdles will<br />

10 | <strong>Service</strong> magazine

energy<br />

S<br />

be overcome by a combination of reallocating capital from areas<br />

with high fossil fuel exposure towards renewables and ongoing<br />

engagements with listed companies on their transition plans.<br />

The country’s main carbon culprits are easily identifiable, offering<br />

clear wins for purposeful policymakers. More than 50% of the<br />

JSE’s carbon intensity links to electricity use which in turn causes<br />

electricity grid emissions from Eskom’s ageing coal-fired power<br />

infrastructure, while much of Sasol’s carbon footprint stems from<br />

its steam reformation hydrogen extraction process.<br />


South Africa is in the top 5% of the world in terms of the quality<br />

of both our solar and wind resources; and modelling has been<br />

done to show that our base load peak demand can be met with<br />

renewable energy. Our private sector developers and funders, in<br />

partnership with the government, already have a solid track record<br />

of bringing solar and wind power projects on stream, quickly. All that<br />

is needed for South Africa to meet its 2050 net-zero emissions target<br />

is to scale our renewables response. S<br />

Dr Nkosazana Dlamini Zuma<br />

Photo ParliamentofRSA<br />

“In charting the path towards an appropriate energy mix and a just energy supply we require more and<br />

not less state. Everywhere in the world, it is the state that drives generation and distribution towards<br />

social goals such as education, rural development, health and recreation. Even in the most capitalist<br />

of countries, it is the state that issues conditional licensing for private generation and distribution,<br />

which is tied to social outcomes. Often it is the local state that takes this licensing responsibility if it<br />

does not produce itself.<br />

The American Public Power Association makes a strong case on how “not-for-profit, communityowned<br />

locally-controlled” utilities provide better services at lower rates than privately-owned utilities<br />

while also providing jobs and revenue for their local communities. It says, “Public power utilities also<br />

deliver more reliable electric service. Outside of major adverse events (eg storms), customers of a<br />

public power utility are likely to be without power for less time – 62 minutes a year, compared to 150<br />

minutes a year for customers of private utilities.”<br />

These municipal and community utilities are important in powering local economic development, as<br />

they can be more responsive to local needs while supporting the local revenue base as well as local<br />

businesses. Of course, our problem with regards to ownership in South Africa is not the private, but<br />

the drive to unjustifiably privatise the already uncompetitive, pricey and monopolistic public entity.<br />

Even as the unbundling is being planned, it is planned with private owners in mind and not with the most logical and more social justice<br />

prone municipal and community/cooperative models in mind.<br />

We must therefore pay attention to the specific challenges that have not enabled our municipalities and their entities to position<br />

themselves as Independent Power Producers (IPPs). A study recently undertaken by Sustainable Energy Africa, found that only 50% of<br />

our municipalities are equipped with any form of small-scale embedded generation processes. A further 25% do not have the internal<br />

capacity to establish or manage these processes, while the remaining 25% are not in a state to handle any additional responsibilities<br />

owing to governance and financial challenges. Thus, we should not just theorise and speak of the research, but we must find ways to<br />

establish the capacities to develop and maintain the energy infrastructure capabilities of all municipalities.<br />

As we propose communal and municipal ownership, we must maintain certain national norms and standards which will ensure better<br />

education, health, recreational, cultural and economic outcomes. We must remember that ours is a unitary state which functions through<br />

the cooperation of all spheres and entities of government and collective governance. We must maintain reasonable costs and reliability,<br />

which must be observed throughout the country. We must remain cognisant that a sustainable and clean energy transition must be<br />

underpinned by economic justice.”<br />

Dr Nkosazana Dlamini Zuma at the 2022 Association of Municipal Electricity Utilities Convention, 3 October 2022.<br />

<strong>Service</strong> magazine | 11

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technology<br />


pillar of digital government<br />

As governments aim to become more citizen-centric, a strong IT infrastructure<br />

will help them meet the expectations of today’s tech-savvy citizens.<br />

By Kearney Consulting<br />

D<br />

Digital government offers an appealing vision of the future:<br />

citizens communicating with government departments anywhere<br />

and anytime using integrated channels; governments being more<br />

inclusive and responsive to constituents’ needs; departments<br />

collaborating and integrating their services to provide seamless<br />

services to citizens.<br />

And nearly every government in the world knows it needs to go<br />

digital – to automate processes, support service delivery, become<br />

more efficient and improve citizens’ lives. Research suggests<br />

that government leaders recognise that technology improves<br />

synergies among departments, citizens and the private sector. IT<br />

also enhances institutional connections within the government,<br />

increasing transparency and accountability for public services,<br />

and creating stronger social equity and citizen inclusion and<br />

hence sustainable development. 1<br />

To support the digital transition,<br />

many governments have formulated IT<br />

strategies, hired chief technology officers<br />

and developed enterprise systems and<br />

infrastructure. However, a few have thrived<br />

by taking a truly holistic approach to<br />

identifying an overall IT operating model<br />

that guarantees effective IT services for<br />

departments and citizens. The complexity<br />

of these IT environments is expensive<br />

to manage and with governments under<br />

significant pressure to cut costs, funding<br />

for transformation programmes is limited.<br />

Within that massive spending there is a<br />

tremendous opportunity for governments<br />

to acquire the necessary IT infrastructure<br />

services more affordably and with better<br />

performance.<br />

individual departments can make in-house decisions related to their<br />

line-of-business applications while transferring decisions about<br />

commodity IT infrastructure and enterprise applications to a shared<br />

entity (see figure 1).<br />

Note:<br />

Integrated front-end channels give citizens a one-stop shopping<br />

experience whether face-to-face, over the phone, at kiosks, on the<br />

Internet, via mobile devices or with third parties. Centralised portals<br />

provide personalised access to all stakeholders from citizens and<br />

businesses to other governments and non-residents. An integration<br />

hub centralises online systems for authentication, participation,<br />

voting, petitions, content management and business intelligence. It<br />

offers unified registers and databases of information about citizens<br />

and vehicles and has a technical component containing applications<br />

and data for system interoperability. Centralised infrastructure and<br />



All government departments have a<br />

common customer: citizens. But the services<br />

those departments provide and the daily<br />

operational activities they conduct are<br />

different. We advise using an operating<br />

model based on coordination, so that<br />

1. United Nations E-Government Survey<br />

2012: E-Government for the People<br />

LoB app is line of business application. BI is business intelligence.<br />

Credit AT Kearney Analysis<br />

14 | <strong>Service</strong> magazine

technology<br />

S<br />

enterprise applications allow cost optimisation, build scalability, and<br />

increase agility and flexibility for new services.<br />

The result is that citizens get what they have come to expect nearly<br />

everywhere else: technology that functions seamlessly. In the pursuit<br />

of digitisation, choosing the right operating model will be essential<br />

to success.<br />


In today’s world, consumers expect a technological ecosystem rather<br />

than a disconnected set of websites, call centres and offices. In the<br />

private sector, companies have improved the customer experience<br />

with cloud technologies that reduce operating costs and limit the<br />

need for expensive processing centres. At the same time, payper-use<br />

and cost transparency have become crucial non-technical<br />

requirements for IT service consumers in both the public and<br />

private sectors.<br />

Credit: AT Kearney Analysis<br />

Consequently, having the right operating model to enable best-inclass<br />

IT infrastructure services is key. Three elements are vital:<br />

1. Have a central agency oversee it infrastructure and manage<br />

the complex relationships across departments and suppliers<br />

While external market players can more efficiently deliver<br />

commodity IT services, including IT infrastructure and enterprise<br />

applications, a central agency can serve as something of a broker<br />

between individual departments and suppliers (see figure 2). The<br />

agency can lead the consolidation and develop government-wide<br />

standards for IT applications, data sharing and infrastructure,<br />

integrated service management, supplier and contract management<br />

as well as ownership of the integration layer. Without a central<br />

agency, coordinating these activities will be difficult. Governments<br />

would be wise to choose external suppliers for these IT services,<br />

addressing security and privacy concerns with them, and then<br />

giving departments the flexibility to choose the services they want.<br />

Depending on the situation and the mandates the government can<br />

enforce, the central agency takes on various levels of oversight and<br />

value addition. There are three levels of roles central agencies can<br />

take (see figure 3 on next page):<br />

Engager. In the engager role, the central agency manages IT<br />

sourcing processes, negotiates contracts on behalf of departments<br />

and manages vendor relationships. The Netherlands acts as an<br />

engager and has two organisations. The first, GovUnited, enforces<br />

national technology standards, aggregates municipalities’ demands<br />

and leverages economies of scale to source IT services from the<br />

market. Municipalities pay GovUnited for basic services based on<br />

fees tiered to their size. 2 The other, Dimpact, helps municipalities<br />

implement digital products and services, including a multichannel<br />

front- and mid-office solution.<br />

Manager. As manager, the agency takes on several roles,<br />

developing the overall information and communications<br />

technology (ICT) strategy, ensuring compliance with government<br />

standards, maintaining accountability of service<br />

levels with departments through all vendors,<br />

forecasting demand and tracking technology<br />

innovation. Among these three central-agency<br />

models, this one is often the best choice as<br />

it optimises the level of control and value<br />

addition.<br />

Integrator. Integrators ensure that service<br />

management is integrated across vendors and<br />

IT services; it also is accountable for delivering<br />

key services such as security. South Africa’s<br />

State Information Technology Agency plays this<br />

role, providing a mix of mandatory and nonmandatory<br />

services to agencies. While it oversees<br />

IT procurement, elective services include<br />

application development and maintenance,<br />

infrastructure maintenance as well as IT<br />

consulting and training.<br />

2. Guide the transition to the<br />

central agency model<br />

The biggest challenge governments face when<br />

pursuing centralisation is getting buy-in from departments and<br />

agencies, which often fear losing flexibility and control and prefer<br />

to pursue what suits their own needs. Another barrier is many<br />

departments’ lack of funding for a transition, coupled with a<br />

perception by many that new suppliers may cost less initially but will<br />

be more expensive – and harder to leave – in the long term.<br />

Picking the right transition model, based on existing government<br />

structure and an agency’s level of mandate, can help manage these<br />

challenges and ensure the desired level of supplier competition and<br />

department flexibility for provisioning IT infrastructure services.<br />

3. Source infrastructure services by buying market-ready<br />

packages and maintaining supply-side competition<br />

When sourcing IT infrastructure services from the market, consider<br />

the move from two perspectives: the supply side (how the market<br />

provides these services) and the demand side (how departments<br />

consume the services).<br />

1. www.govunited.nl<br />

<strong>Service</strong> magazine | 15

S<br />

technology<br />

Credit: AT Kearney Analysis<br />

Supply. There are three affinities within IT infrastructure services<br />

on the supply side. The first centres on processing and storage for<br />

hosting services, the second on the end-user and the third on the<br />


Keep IoT devices up to date with the latest software and<br />

security patches.<br />

Change default passwords on IoT devices.<br />

Use strong passwords for all devices connected on the<br />

IoT network.<br />

Check the privacy settings of IoT devices to ensure there<br />

are no weak spots.<br />

Activate multi-factor authentication on devices.<br />

network. 3 While hosting services<br />

are self-contained, end-user and network services can be bought in<br />

multiple variants. For example, some elements in the end-user service<br />

tower can be purchased separately for some users, including desktop<br />

offerings (with no custom enterprise applications, including all<br />

licence costs), email (such as Google’s enterprise offering) and office<br />

productivity products (like Office 365). Unified communications<br />

such as Voice-over-Internet-protocol (VoIP) telephony and desktop<br />

integration are specialised services that can be bought separately<br />

from suppliers with a communications pedigree.<br />

3 Processing may include server management, middleware<br />

management as well as security and data centre management.<br />

Storage may include various management forms (a storage area<br />

network, network-attached storage or direct-attached storage)<br />

as well as backup and recovery. End-user may include desktop<br />

management and collaboration (email, video conferencing and<br />

messaging). Network may include local area network, wide area<br />

network or a metropolitan area network management.<br />

16 | <strong>Service</strong> magazine

technology<br />

S<br />

Similarly, network services have a strong affinity for data carriage and<br />

voice services typically bought from telecommunication providers.<br />

Some elements of wide area network services are bought as part<br />

of the data carriage, which may include a managed router, network<br />

monitoring and cross-site network service management.<br />

As mentioned, the typical objective of sourcing IT infrastructure<br />

services is effective service delivery at a reduced cost of ownership.<br />

Encouraging supplier competition is one of the best ways to meet<br />

this goal. In IT infrastructure procurement, there are two ways to<br />

achieve this: by buying standardised services (such as cloud) that<br />

have competition built in or by buying customised services from<br />

multiple suppliers.<br />

Buying standardised services in the cloud (data as a service,<br />

IaaS, PaaS and to an extent, SaaS) opens numerous options. When<br />

demand is strong, suppliers tend to innovate rapidly to compete on<br />

pricing or enhanced services, both of which benefit customers. There<br />

is low entrenchment, so switching suppliers is easier. Comparability<br />

leads to better benchmarking and automatic price adjustment in<br />

the market. However, custom requirements will not be met in many<br />

cases, which could push costs into more expensive areas of the stack<br />

to achieve application remediation.<br />

For non-standard services, where much of the legacy platform<br />

would be, competitiveness is best encouraged through multiple<br />

suppliers in each service tower. Benchmarking can also be used<br />

to manage supplier performance, but effectiveness is limited by<br />

comparability issues in the custom service offering. Obtaining<br />

services from multiple suppliers should be done carefully because<br />

it could lead to lingering problems such as poor service delivery<br />

due to lack of coordination, higher integration, governance and<br />

operational costs.<br />

Demand. On the demand side, the prices for IT infrastructure<br />

services that a central agency publishes may differ from those<br />

available in the market.<br />

This could be because department-facing services are acquired as<br />

part of a bundle or because of a transformation where the agency<br />

owns the financial risk. Departments may also be less interested in<br />

supply-side unit costs and more interested in per-user IT costs and<br />

matching IT costs to business outcomes.<br />

<strong>Service</strong> magazine | 17

S<br />

technology<br />


Today, one of the most pervasive risks is ransomware attacking various<br />

government services, and cities are susceptible to attacks on network<br />

equipment and items. Websites and applications connected to IoT are<br />

at risk of exposure. And targeted attacks on infrastructure facilities are<br />

serious incidents.<br />

From energy and water management, video surveillance and others, IoT is a<br />

core part of enabling smart cities. Efforts around protecting the environment<br />

should encompass every level of the smart city ecosystem.<br />

“Unfortunately, many IoT devices have little or no protection at the software<br />

and infrastructure levels. They are often unsupported and have no updates<br />

from the vendor. Implementing IoT solutions on top of existing legacy<br />

systems, which were once standalone and unconnected, will also create<br />

vulnerable targets for cyberattacks,” says Bethwel Opil, enterprise client<br />

lead at Kaspersky in Africa.<br />

To respond to these IoT security challenges and provide help to companies<br />

and government departments requiring specific cybersecurity protection,<br />

activities on different levels must emerge. Fortunately, there is movement<br />

towards standardising the development and implementation of IoT platforms<br />

to make them more dependable and secure by design.<br />

“Effectively, smart cities can only be successful when all the stakeholders<br />

across specialist IT, business, government and the private sector work<br />

effectively together. No single service provider, government department or<br />

private sector business can try to do everything to deliver the environment<br />

for a smart city to succeed. For example, from a security perspective,<br />

Kaspersky contributes to this process by designing and developing<br />

components, including IoT gateways and other solutions based on the<br />

principles of cyber immunity,” adds Opil.<br />

This cyber immunity approach is a means to create solutions that are<br />

virtually impossible to compromise and that minimise the number of<br />

potential vulnerabilities. For smart cities this means protecting systems for<br />

buildings and public services such as those that enable public administration<br />

managers to control the consumption of water and heat – and much more.<br />

A smart city is a cyber-physical system, meaning both physical safety and<br />

digital security are essential for the smooth operation of city services.<br />

Cybersecurity practices for smart cities should include basic measures,<br />

such as encryption and strict password policies, vulnerability management,<br />

network segmentation and a zero-trust model, as well as firewalls and<br />

dedicated protection for any cloud infrastructures that the smart city’s<br />

systems and applications are connected to. Dedicated IoT security solutions,<br />

such as security gateways, need to be in place to connect IoT devices with<br />

business applications while ensuring the security of the communications and<br />

data transferring through them. In organisations where the IT infrastructure<br />

is connected to smart city objects and systems, endpoint and network<br />

protection with the ability to detect and respond to diverse threats should<br />

be used.<br />

“The harmonious fusion of the digital and physical worlds in a smart city can<br />

significantly improve citizens’ quality of life, increase the efficiency of urban<br />

utilities and strengthen the position of cities in the global digital economy,<br />

making them attractive to investors and contributing to dynamic growth.<br />

However, cybersecurity measures must be considered every step of the<br />

way if such cities of the future are to flourish,” concludes Opil.<br />

This has implications for market packages. All<br />

service unit costs should be attributable to one or more<br />

departments. This is straightforward when there is<br />

one-to-one matching between users and the services<br />

consumed. When platforms are shared or there are<br />

services that underpin other user-facing services, this<br />

clarity is lost. Hence, the packages must ensure some<br />

sort of an allocation of service-tower costs for shared<br />

elements.<br />


After transforming current-state services for IT<br />

infrastructure, the next challenge is articulating<br />

future-state services. Instead of defining these services,<br />

central agencies should focus on articulating high-level<br />

target-state requirements. They highlight the relative<br />

prioritisation of emerging technology trends, as well as<br />

the change in user segments and their needs.<br />

An effective strategy is to focus on target-state<br />

requirements to help suppliers understand the direction<br />

the central agency is headed and to signal a businessoutcomes<br />

focus in delivering IT infrastructure services.<br />

Short-term service needs, such as logical next steps<br />

for current and ongoing projects, should be clearly<br />

articulated. However, these needs should be positioned<br />

as directional, using the breadth of market capabilities<br />

to bring a fresh perspective to the business problems<br />

that these technical solutions are attempting to solve.<br />


Which service elements stay in-house depends on<br />

the approach chosen to ensure effective service<br />

management. There are many models to choose from<br />

based on size, complexity and final accountability for<br />

success.<br />

At one end of the spectrum is the monolithic model<br />

for integrated service management, where one supplier<br />

provides all service towers and is accountable for endto-end<br />

service delivery. The main issue with this model<br />

is supplier entrenchment and lack of competitiveness,<br />

which often leads to higher costs and a possible hostage<br />

situation. A variant of this, the prime subcontractor<br />

model, lowers the risks, but only slightly.<br />

A second model sources integrated service<br />

management through a supplier that is not delivering<br />

services in any of the service towers. This is typically<br />

combined with the help desk tower for a closed-loop<br />

service offering.<br />

The issue here is that the service manager cannot<br />

contractually take accountability for service levels<br />

achieved by the other suppliers because they are not<br />

under its control. Full accountability may be possible<br />

but at a significant price premium.<br />

In a third model, the central agency overseeing IT<br />

infrastructure drives integrated service management<br />

centrally, through the departments, or with a<br />

18 | <strong>Service</strong> magazine

technology<br />

S<br />

combination of both, depending on the department size and<br />

segregation of infrastructure. The central agency holds the supplier<br />

contracts that define service levels expected from each service tower.<br />

The main risk with this model is in execution should the right<br />

people not be in place. While this requires fewer people, staff should<br />

have above-average capabilities in commercial, technical and servicedelivery<br />

roles. If risk appears insurmountable, then the central<br />

agency can use the second model above on a best-efforts basis using<br />

a third-party service manager.<br />


A well-planned agency approach that works effectively within the<br />

government structure and has a clear transition plan can produce<br />

results within a couple of years. Understanding the market by using<br />

collaborative procurement models and competitive service contracts<br />

with vendors should allow for needed flexibility as technology and<br />

the government’s specific technology needs evolve – all with an eye<br />

towards creating a digital government that can serve a municipality<br />

well for years to come. S<br />

<strong>Service</strong> magazine | 19

S<br />

skills development<br />

Pathways into the<br />

economy for Africa’s youth<br />

How investing in the employability of young people remains a powerful lever for creating paths into the economy.<br />

By Nozuko Mzamo, social investment specialist, Tshikululu Social Investments<br />

A<br />

An estimated 1.8-billion youth worldwide will not have the skills<br />

or qualifications required to participate in the workforce by 2030.<br />

As the workplace changes due to the Fourth Industrial Revolution,<br />

there will need to be a shift in how young people are equipped with<br />

the necessary skills and know-how.<br />

In the 2018 Global Business Coalition for Education’s report<br />

on preparing tomorrow’s workforce for the Fourth Industrial<br />

Revolution, it was estimated that across the globe, 260-million<br />

children were out of school and more<br />

than 800-million youth were not on<br />

track to learn the basic skills needed to<br />

enter the workforce by 2030.<br />

The disruption of Covid-19 has<br />

accelerated change and further<br />

exacerbated the existing inequalities<br />

that young people face, making<br />

the attainment of Sustainable<br />

Development Goal 4, “Ensuring<br />

inclusive and equitable quality<br />

education and promoting life-long<br />

learning opportunities for all,” ever<br />

more elusive. The World Bank predicts<br />

that the current global cohort of today’s youth generation, because of<br />

the pandemic, are at risk of losing USD17-trillion in future earnings.<br />

If young people do not develop vastly different skill sets from<br />

previous generations, they will face a growingly uncertain future.<br />

Undoubtedly, one of the major challenges in South Africa’s<br />

development, and the African continent — a continent with<br />

a population of approximately 65% young people — is youth<br />

unemployment. Alarmingly, the African Development Bank has<br />

estimated that 50% of the youth in Africa will be unemployed and<br />

economically inactive by 2025.<br />

According to the Department of Higher Education and Training,<br />

8.8-million people in South Africa aged 15-34 are youth Not in<br />

Education, Employment or Training (NEET). Approximately<br />

5-million are inactive (not looking for work) and 3.8-million are<br />

unemployed (actively seeking employment and available to work).<br />

A total of 52% of the 8.8-million people who are youth NEET<br />

are female. By the end of the first quarter in 2022, 46% of people<br />

between 15 and 34 years of age remained outside of employment,<br />

education and training.<br />

A total of 50% of the youth in<br />

Africa will be unemployed and<br />

economically inactive by 2025.<br />

The higher education system is faced with challenges ranging<br />

from high attrition rates at universities; outdated curricula; low<br />

throughput rates in Technical and Vocational Education and Training<br />

(TVET) institutions; as well as a wide variation in quality and control<br />

within the Sector Education and Training Authorities. Additionally,<br />

the vocational system suffers from insufficient relationships with<br />

business and industry, leaving vocational training institutes illequipped<br />

to meet employers’ skill requirements and young people<br />

largely either underexposed or<br />

not exposed at all to quality career<br />

guidance and work-readiness training<br />

that would allow them to transition<br />

into the world of work.<br />

While concerns abound globally, in<br />

South Africa in particular, the nature<br />

of vocational system quality makes<br />

addressing critical issues exceedingly<br />

challenging. Given this complex<br />

context, what are the opportunities for<br />

social investors to create meaningful<br />

pathways for young people?<br />

Notwithstanding the intricate<br />

challenges in the higher education system and the overall South<br />

African labour market, our research confirms that employability<br />

programmes are a meaningful avenue to the economy for young<br />

people.<br />

The 2022 Global Business Coalition for Education report exploring<br />

the materiality of education highlights the imperative for businesses<br />

to invest in skills and education for the youth to equip them for the<br />

new world of work and help drive economic growth. If education<br />

challenges are left unaddressed, companies will struggle with<br />

developing and retaining the workforce pipeline. This directly<br />

threatens the opportunities available for businesses to enter new<br />

markets and expand to ensure sustainable supply chains are built<br />

and maintained.<br />

Tangible education, development and training positively<br />

drives diversity, equity and inclusion as well as human capital<br />

management metrics. Investing specifically in youth employability<br />

could allow companies to meaningfully tackle the “S” in their ESG<br />

agendas while helping to build a more resilient, inclusive and<br />

sustainable society. S<br />

20 | <strong>Service</strong> magazine

skills development<br />

S<br />


“I recently received the report of the Ministerial Task Team (MTT) on the implications of 4IR to our post-school education and training<br />

(PSET) system. The report provides insights into how the PSET policy-making mechanism can respond to the challenges posed by<br />

rapid shifts in the way we learn, live and conduct our business.<br />

[The report says] our PSET sector must place great emphasis on developing curricula, programmes and courses that are informed by<br />

the demands of the labour market. Being demand-led in this way requires customised initiatives that respond directly to the needs of<br />

groups of similarly focused employers and result in employment or self-employment of the young person.<br />

However, the relevance of PSET programmes cannot be exclusively dictated by the demands of the labour market. There is a need<br />

to equally ensure ongoing curriculum development that prepares students to thrive as the needs of the labour market change and to<br />

become active agents in shaping the future of both South African society and its economy.<br />

I am proud that two of our Sector Education and Training Authorities (SETAs), the Chemical Industries Education and Training Authority<br />

(CHIETA) and the Media, Information and Communication Technologies (MICT) SETA, collaborated with the Freeport Saldanha Bay<br />

Industrial Development Zone and other partners to establish this SMART Skills Centre.<br />

This centre is part of our bigger plan to revolutionise digital skills development in all our nine provinces and to cater for SMME<br />

development. The centre will offer various digital skills development programmes, based on technologies such as blockchain, artificial<br />

intelligence, software development, data science and mobile repairs.<br />

CHIETA forecasts that a minimum of 10 000 unemployed youth from surrounding rural communities will benefit from the centre over the<br />

next five years. CHIETA and its stakeholders will provide various online learning platforms for unemployed youth to start up scalable<br />

data-driven commercial businesses that will provide technological solutions.<br />

As the great Nelson Mandela famously said: “Education is the most powerful weapon which you can use to change the world.” This<br />

state-of-the-art centre is a fulfilment of what Madiba represented.<br />

We agreed that all SETAs must develop partnerships with other institutions within the PSET sector such as TVET, Community<br />

Education Colleges (CET) and the National Skills Fund. Partnerships must also be developed with other government departments<br />

and their agencies.<br />

Through this centre, CHIETA must now further identify and collaborate with both the TVET and CET colleges in the Western Cape. This<br />

will ensure that we rapidly enhance the potential of these colleges to harness open learning to increase access to the PSET learning<br />

opportunities that are closely linked to the needs of the labour market and help to drive growth in local employment.<br />

This principle must be integrated in the concept of this SMART centre and be applied to the two SMART Skills Centres that will be<br />

launched in the current financial year in the Eastern Cape and KwaZulu-Natal.<br />

These centres must ensure that we place our TVET graduates for in-service training, learnerships and internships as President Cyril<br />

Ramaphosa announced during his 2022 State of the Nation Address that the government must place 10 000 unemployed TVET<br />

graduates for in-service training.<br />

In all our project conceptualisation, integrated delivery models that work at district and regional levels and that enable PSET institutions<br />

in common localities to work with each other as well as with public and private enterprises, social structures and the communities they<br />

serve as well as with local, district and provincial government will always ensure that we create articulated, seamless, responsive<br />

development opportunities to the benefit of our economy.”<br />

Address by the Minister of Higher Education, Science and Innovation, Dr Blade Nzimande, at the launch of the CHIETA SMART<br />

Skills Centre, Saldanha Bay, 25 October 2022.<br />

<strong>Service</strong> magazine | 21

S<br />

water<br />

Decay after progress: South<br />

Africa’s basic water supply services<br />

Water is at the heart of health and wellbeing for people and nature. Access to it is a human rights<br />

issue recognised by international declarations and national standards. It is vital for education<br />

and economic productivity. Ultimately, it connects the environment to society.<br />

By Anja du Plessis*<br />

TThe most recent statistics (2020) show a general global trend<br />

of positive progress in access to water. The proportion of<br />

the global population using safely managed drinking water<br />

services increased from 70.2% in 2015 to 74.3% in 2020. But despite<br />

this progress, in 2020, two-billion people still lacked safely managed<br />

drinking water. The Sub-Saharan African region has the largest<br />

numbers, with 387-million people without access to basic drinking<br />

water services. Current coverage of access to regulated drinking<br />

water is estimated at only 54% of the region’s population.<br />

In South Africa, the right to water is enshrined in the Constitution.<br />

Before the country’s transition to democracy in 1994, government<br />

policies were focused on the advancement of the white minority.<br />

The development of the country’s water<br />

resources did not consider improving the<br />

position of the mostly black, poor majority.<br />

South Africa has made significant<br />

progress since then in expanding water<br />

services, especially within the disadvantaged,<br />

vulnerable communities and rural areas.<br />

But inequality in access to basic services is<br />

still a reality. Progress with water supply and<br />

sanitation service delivery has been slow and<br />

in some instances, it’s deteriorating.<br />

Water is a critical resource. Its provision<br />

should be seen as an enabler that<br />

facilitates socioeconomic development.<br />

Water infrastructure needs to be suitably<br />

maintained – and upgraded – to ensure<br />

water access and reliable supply to guarantee<br />

water security.<br />

development, improving the quantity and the quality of water supply<br />

to citizens. This created a comprehensive legislative framework for<br />

the provision of water and sanitation services.<br />

Progress was subsequently made by advancing and extending<br />

water supply to rural areas and previously under-serviced areas.<br />

During the first decade of democracy, an estimated 13.4-million<br />

more people had access to basic water supply services.<br />


South Africa’s water situation has since deteriorated. The reliability<br />

of water services and infrastructure – as shown by frequent water<br />

supply interruptions – has been on a downward trend. It’s important<br />


In 1994, about 14-million people (35%)<br />

in South Africa didn’t have basic water<br />

supply services. The minimum standard<br />

of these services is defined as clean, piped<br />

water delivered within 200 metres of a<br />

household at a minimum flow rate of 10<br />

litres per minute, for 300 days a year, with<br />

any interruption not lasting longer than two<br />

days at a time.<br />

The government adopted various policies<br />

and programmes aimed at sustainable water<br />

Water infrastructure delivered versus vs water supply in 2021.<br />

Credit: National Integrated Water Information System.<br />

22 | <strong>Service</strong> magazine

water<br />

S<br />

South Africa is facing the<br />

stark reality of a third of all its<br />

water infrastructure not being<br />

fully operational.<br />

Article courtesy The Conversation<br />

to note that even when communities have access to water through<br />

infrastructure, this does not guarantee the delivery of basic water<br />

supply services.<br />

The number of households with access to clean water grew<br />

from 67% in 1993 to an estimated 85% in 2015 and 96% in 2018.<br />

However, the portion of households with reliable and safe water<br />

supply services — such as having clean water sources not too far<br />

from their household — decreased by 64% in 2018.<br />

The deterioration of the country’s water infrastructure<br />

and actual delivery of reliable and safe water supply can be<br />

attributed to under-investment in infrastructure maintenance and<br />

delays in the renewal of old infrastructure. Other contributing<br />

factors include limited budgets, poor revenue management by<br />

local municipalities, misappropriation of funds, lack of capacity or<br />

necessary technical skills related to water services and sanitation<br />

operation and maintenance.<br />

South Africa is facing the stark reality of a third of all its<br />

water infrastructure not being fully operational, which is against<br />

the global trend of making positive progress. In addition, the<br />

government’s planned budget to rebuild deteriorated water<br />

infrastructure is already R333-billion short of the estimated R898-<br />

billion said to be required by the National Water and Sanitation<br />

Master Plan published in 2018.<br />


Based on my research in integrated water resource management,<br />

I propose that South Africa takes some of the following steps<br />

to avoid a major water crisis and improve water security. These<br />

recommendations are also in the country’s National Water<br />

Security Framework:<br />

• Address inefficient water use and wastage.<br />

• Investigate the possible impacts of climate change and what effect<br />

these may have on the country’s water resources.<br />

• Invest in infrastructure maintenance.<br />

• Correct inadequate management systems and record-keeping.<br />

• Develop and implement an institutional and regulatory<br />

framework and ensure compliance thereof.<br />

• Work on minimising the current skills deficit. The capacity of key<br />

national government departments and municipalities needs to be<br />

evaluated in an objective manner.<br />

South Africa must move away from simply constructing water<br />

supply systems to ensuring that the basic levels of service are<br />

provided to all. S<br />

* Anya du Plessis is an associate professor and research specialist in integrated<br />

water resource management at the University of South Africa.<br />

<strong>Service</strong> magazine | 23

S<br />

waste<br />

Waste sector<br />

income is on the up<br />

More than 40 local, district and metropolitan municipalities countrywide have seen the socioeconomic<br />

benefits of strategic waste management for their communities thanks to successful<br />

partnerships with South Africa’s leading plastic producer responsibility organisation PETCO.<br />

OOne such drive involves the Zonda Insila Programme (ZIP) which<br />

was launched in Breyton in 2019 with only four projects and now<br />

boasts 14 projects supporting 240 community members spanning<br />

the Nkangala, Gert Sibande and Ehlanzeni district municipalities<br />

in Mpumalanga.<br />

“With the level of interest shown and the growing number of<br />

informal waste pickers, there is no doubt that ZIP is encouraging<br />

more and more young people to shift their thinking towards waste<br />

as a form of potential income generation. To say waste is trash is<br />

outdated,” says ZIP coordinator Linah Duduzile Ndala.<br />

For the past 17 years, South Africa’s most experienced plastic<br />

producer responsibility organisation (PRO), PETCO, together with<br />

its members, has been engaging with municipalities on sustainability<br />

programmes to improve effective waste management and recycling<br />

rates. Key among municipal waste management priorities is<br />

the diversion of waste that has value from landfills, as well as<br />

accommodating waste pickers in the recycling value chain.<br />

“Waste is not trash, it is economy,” Ndala continues. “The role of<br />

stakeholders like municipalities, PETCO and the province is very<br />

important because they need to take the lead.”<br />

PETCO’s role in such municipal waste management partnership<br />

projects comes in the form of equipment provision and infrastructure<br />

support for waste pickers and buy-back centres – with the goal of<br />

incorporating waste pickers in the formal recycling sector – as well<br />

as training and skills development for municipal employees involved<br />

in waste management.<br />

“Currently, there are very few municipal separation-at-source<br />

collection systems, so we work with interested municipalities to<br />

establish collection projects and expand PET collection into new<br />

areas,” says PETCO CEO Cheri Scholtz. “We help grow sustainable<br />

businesses and sponsor infrastructure and equipment to unlock<br />

collections and improve the quantity and quality of post-consumer<br />

PET collected,” she says.<br />

Another successful drive has seen the Drakenstein Municipality<br />

reaping the rewards of a recycling programme launched four years<br />

ago at the Wellington Landfill Site, with several success stories<br />

emanating from it. According to Thys Serfontein, senior manager:<br />

solid waste and landfill management at Drakenstein Municipality,<br />

PETCO had been “amazingly supportive of this project right from<br />

the start and still are today”.<br />

Drakenstein Municipality has been one of the first municipalities<br />

to successfully complete the “integration of waste pickers into<br />

the formal waste industry at municipal level – one of national<br />

government’s focus areas,” Serfontein says.<br />

“As soon as our Material Recovery Facility and Refuse Transfer<br />

Station are fully functional in 2022/23, these wastepreneurs will be<br />

accommodated. They will be able to increase their production and<br />

it will also mean that approximately 50 tons less material will reach<br />

the landfill site,” says Serfontein.<br />

Zonda Insila Programme Coordinator, Linah Duduzile Ndala.<br />

24 | <strong>Service</strong> magazine

waste<br />

S<br />

To say waste is trash<br />

is outdated.<br />

metres of municipal landfill space.<br />

A further R1.2-billion was injected<br />

into the economy from the sale of<br />

recycled materials.”<br />

Scholtz adds: “The impact of<br />

partnerships on the recycling value<br />

chain cannot be underestimated, and<br />

collaboration is critical to ensuring<br />

that change can be implemented at a<br />

national scale.”<br />

Plans are currently underway<br />

to assist a further 21 sustainability<br />

projects with equipment, branding<br />

and accredited training. S<br />

PETCO CEO Cheri Scholtz says waste<br />

pickers “play an important role in<br />

diverting waste from landfill and will<br />

play an increasingly valuable role in<br />

municipal waste collection systems and<br />

rolling out kerbside projects”.<br />

“Their integration advances<br />

South Africa’s priorities such as<br />

job creation, poverty alleviation,<br />

environmental protection and economic<br />

transformation,” Scholtz says, adding<br />

that PETCO’s experience in working<br />

with the entire PET value chain made<br />

it qualified to assist municipalities with<br />

sustainability efforts.<br />

“In the past year alone, PETCO and<br />

our partners ensured that 90 402 tons<br />

of post-consumer PET, which equates<br />

to 2.1-billion bottles, was collected<br />

for recycling, saving 560 495 cubic<br />

<strong>Service</strong> magazine | 25

S<br />

waste<br />



South Africa’s waste management and recycling sector has welcomed a rapid influx of innovative<br />

community recycling projects in response to the country’s need to divert waste from landfill.<br />

R<br />

Recognised for its successful and easily replicable model,<br />

Polyco’s Packa-Ching project recently won the Conscientious Spirit<br />

Award at the 25th WasteCon. “The drive for sustainability in our<br />

waste management sector has largely been determined by keeping<br />

waste streams out of landfill and economically repurposing materials,<br />

realising the environmental and social benefits of recycling,” says<br />

Patricia Pillay, CEO of Polyco.<br />

“Our Packa-Ching project has been successful in this by<br />

bringing an enterprise-operated mobile recycling service to many<br />

communities across our country. Through this project we are<br />

uplifting communities and keeping recyclable packaging waste,<br />

including plastic, paper, glass and cans out of the environment<br />

and landfill.”<br />

Since the launch of Polyco’s Packa-Ching project in 2017, more<br />

than 7.2-million kilograms of waste has been diverted from landfill<br />

with more than R6.4-million earned by community members, in<br />

exchange for their recyclables.<br />

“Through our partnerships with Sasol and the Shoprite Group,<br />

we have managed to successfully roll out 10 mobile Packa-Ching<br />

units across six provinces. Our newest, in Nelspruit, launched in<br />

October 2022 and is driven by local waste entrepreneurs, I-WASTE.<br />

“With Packa-Ching, we have been working with small business<br />

owners and entrepreneurs within the waste sector, empowering them<br />

with resources to scale up their businesses within the communities in<br />

which they operate,” says Pillay.<br />

“A mobile recycling truck and trailer is a great solution to bring a<br />

‘recycling drop-off’ site to a wider community. We have seen that this<br />

has been quickly adopted, with community members bringing their<br />

recyclables to be weighed in and exchanged for an instant payment<br />

made via a cashless eWallet solution to their cell phone.”<br />

Hosted by the Institute of Waste Management of Southern<br />

Africa (IWMSA), WasteCon is the country’s flagship waste<br />

management conference and awards event. The biannual event<br />

is a premier showcase of the best practices and solutions for<br />

sustainable waste management. The Conscientious Spirit Award is<br />

given to the organisation, project or person that has demonstrated<br />

conscientiousness in a project or service beyond normal ethical<br />

behaviour in pursuit of the IWMSA’s goals. Some of these goals<br />

include improving waste management standards, training, and<br />

awareness creation on waste management, and promoting the value<br />

of waste as a resource.<br />

“We are so honoured that our work with Packa-Ching has been<br />

recognised with this award. It’s the perfect end to what has been a<br />

great year,” says Pillay. “We would like to make special mention to<br />

our sponsors, the Shoprite Group as well as Sasol for the continued<br />

support and for helping to make Packa-Ching the success it is today.<br />

“We’ve seen the positive impact of this programme on various<br />

local communities – both for the employees and those generating an<br />

income from recyclables. Not only does it promote removing waste<br />

from our communities and recycling it, but it also makes recycling<br />

more accessible,” adds Sanjeev Raghubir, the Shoprite Group’s<br />

sustainability manager. S<br />

To find out more, visit www.packaching.co.za.<br />

26 | <strong>Service</strong> magazine

waste<br />

S<br />



There is concern that the country is on the verge of an environmental crisis because landfills<br />

are rapidly filling up and illegal dumping sites are popping up in communities.<br />

Illegal dumping sites are a threat to the environment and the<br />

Iwellbeing of communities. More than 90% of waste generated<br />

in Africa is disposed of at uncontrolled dumpsites and landfills,<br />

often with associated open burning, causing a need for waste<br />

management. Refuse is often seen as a cumbersome issue and many<br />

businesses avoid taking responsibility for their waste.<br />

As Africa’s urban growth spiked by 3.55% per annum over<br />

the last two decades – a trend expected to continue well into<br />

the future – the problem has only become more acute. Africa’s<br />

waste generation is expected to reach 244-million tons per year<br />

by 2025. This conundrum is a concern that Mafiso Xulu, the<br />

founder of MFT Waste Solutions, is addressing through his waste<br />

management business. Xulu helps companies reuse and repurpose<br />

their waste to avoid it ending up in landfills. Businesses operating<br />

in South Africa are legally required to comply with national<br />

standards of waste management which stipulate that they must take<br />

responsibility for their waste to avoid being prosecuted.<br />

Entrepreneurs like Xulu are entering the waste management<br />

sector to make a meaningful impact. Getting the business up-andrunning<br />

was not easy for Xulu. He initially struggled to secure a<br />

warehouse to operate from due to financial difficulties. Thereafter,<br />

he had to ensure that the warehouse met health and safety<br />

requirements and he also had to purchase expensive machinery.<br />

“Once I met all the legal requirements, I was able to start<br />

working with big companies like Unilever. We help Unilever to keep<br />

hazardous waste out of landfills by treating their waste or crushing<br />

it before returning it to the company to reuse,” he says.<br />



With the 244-million tons of<br />

waste predicted to be produced<br />

in Africa within the next decade,<br />

this creates an opportunity for<br />

waste to be collected, reused and<br />

recycled and jobs can be created.<br />

“I currently employ over 60<br />

people and 37 of them are from<br />

the Tembisa Self-Help Association<br />

of the Disabled (T-SHAD) that<br />

I work closely with,” he says<br />

proudly. As the fight against<br />

waste intensifies, there will be<br />

plenty of business opportunities<br />

that can lead to economic growth<br />

and job creation. Xulu adds that<br />

there is always work to be done in<br />

the waste sector. There is a need<br />

for more businesses to work in<br />

unserved areas where there are<br />

illegal dumping sites.<br />

Mafiso Xulu, the founder of<br />

MFT Waste Solutions.<br />

“I don’t mind getting my hands dirty because I am passionate<br />

about eradicating landfills and helping companies and communities<br />

repurpose their waste,” he says. The growth strategy for MFT Waste<br />

Solutions is to collaborate with global companies that are reducing<br />

marine litter and pollution.<br />

Xulu is excited about the future and is proud that his business is<br />

creating jobs and positively contributing towards reducing pollution. S<br />

There is always work to be<br />

done in the waste sector.<br />

<strong>Service</strong> magazine | 27

S<br />

waste<br />

PETCO partners with<br />

municipalities to make a difference<br />

More than 40 local, district and provincial municipalities countrywide have seen the socio-economic<br />

benefits of strategic waste management for their communities thanks to successful partnerships<br />

with South Africa’s leading plastic producer responsibility organisation PETCO.<br />

For the past 17 years, PETCO has been engaging with municipalities<br />

towards the shared goal of effective waste management and recycling.<br />

Key among municipal waste management priorities is the<br />

integration of waste pickers into the formal sector. The informal<br />

collectors operating in the country play an important role in<br />

municipal waste collection systems and in diverting waste from<br />

landfill. Their integration advances government priorities such<br />

as job creation, poverty alleviation, environmental protection and<br />

economic transformation.<br />

PETCO’s experience in working with the entire polyethylene<br />

terephthalate (PET) value chain makes it eminently qualified to<br />

assist municipalities with sustainability efforts. In the past year alone,<br />

PETCO and partners ensured that 90 402 tons of post-consumer<br />

PET, which equates to 2.1-billion bottles, was collected for recycling,<br />

saving 560 495 cubic metres of municipal landfill space. A further<br />

R1.2-billion was injected into the national economy from the sale of<br />

recycled materials.<br />

Municipalities are, by law, required to develop integrated<br />

waste management plans (IWMP) to drive implementation of<br />

the National Waste Management Strategy. Although legislation<br />

requiring producer responsibility organisations to co-operate with<br />

municipalities came into effect in November 2021, PETCO had been<br />

doing so since 2008.<br />

The impact of partnerships<br />

on the recycling value chain<br />

cannot be underestimated.<br />

“Currently, there are very<br />

few municipal separation-atsource<br />

collection systems, so<br />

we work with municipalities<br />

to establish kerbside collection<br />

projects and expand PET collection into new areas,” says PETCO<br />

collections and training project manager Belinda Booker.<br />

In addition, PETCO provides skills development training<br />

and mentorship for waste pickers registered with participating<br />

municipalities. “This year so far, we have conducted 28 basic training<br />

workshops for 1 357 collectors in eight provinces, and a further three<br />

accredited business training workshops,” says Booker.<br />

“We help them to grow sustainable businesses, and sponsor<br />

infrastructure and equipment to unlock collections and improve the<br />

quantity and quality of post-consumer polyethylene terephthalate<br />

collected,” she explains.<br />

Msinga Local Municipality in northern KwaZulu-Natal, which<br />

covers two towns and six traditional authority areas, is one recent<br />

example where PETCO is assisting with waste picker integration.<br />

The municipality has registered 138 street- and landfillbased<br />

waste pickers and provided them with a material<br />

recovery facility within the landfill site to operate and store<br />

their recyclable materials. The municipality collects 15 tons of<br />

PET each month and sells it to buy-back centres in Greytown<br />

and Pietermaritzburg.<br />

PETCO recently presented a basic recycling workshop<br />

for waste pickers in conjunction with Dannhauser Local<br />

Municipality and sponsored an H15 baling machine and 25<br />

bulk storage bags alongside polymer producer Safripol.<br />

“The impact of partnerships on the recycling value chain<br />

cannot be underestimated and collaboration is critical to<br />

ensuring that change can be implemented at a national scale,”<br />

says Booker.<br />

Plans are currently underway to assist a further 21 pilot<br />

projects in the City of Cape Town with equipment, branding<br />

and accredited training. S<br />

To collaborate with PETCO, please contact Belinda Booker:<br />

belinda.booker@petco.co.za<br />

38 <strong>Service</strong> magazine<br />

28 | <strong>Service</strong> magazine




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