Green Economy Journal Issue 61

G R E E N
Economy
journal
ISSUE 61 | 2023/24
Infrastructure &
WAVE
POWER
18 30 36
SKILLS
MOBILITY
BESS

ANNIVERSARY
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CONTENTS
6 NEWS & SNIPPETS
INFRASTRUCTURE
10 It’s a question of scale
SKILLS DEVELOPMENT
18 How to make the grass greener for the other side
22 GREEN Solar Academy
23 Careers in renewable energy
24 Accelerating the integration of youth in renewable energy
25 SA’s engineering skills need infrastructure momentum
RESOURCE EFFICIENCY
26 NCPC-SA assisting SA’s cheese and dairy plants transition
to better water and energy efficiency
EQUIPMENT
28 Keep lifting your business this holiday season with Masslift
MOBILITY
30 The future of EVs
32 Enabling e-micromobility expansion in African cities
STORAGE
36 The beauty of a full charge
ENERGY
40 Virtual wheeling 101
42 Shifting currents
43 SAWEA set to advocate for SA’s wind energy sector
at COP28
44 Menlo Electric on solar products for residential projects
WASTE
46 Plastics SA and the Global Plastic Treaty talks in Kenya
52 Responsible actions today will safeguard tomorrow
CIRCULARITY
48 Waste not, want not
PACKAGING
50 MetPac-SA celebrates resounding success
WATER
56 Water modelling is key to managing SA’s scarce
water resources
58 SA’s year-end water update
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3

PUBLISHER’S NOTE
Dear Reader,
Reading the now annual COP headline: Poor countries that contribute
the least to global emissions but who are most at risk lobby for more
climate adaptation funding. The logic of this line of reasoning cannot
be faulted, but it’s not what COP was originally about, and it’s certainly
not what wealthy countries want it to be about.
Wealthy countries want to work towards a climate mitigation
deal that results in countries like India, South Africa, Brazil, Nigeria,
Indonesia, the Philippines and other leading developing economies
changing course and emerging on a low-carbon trajectory.
That is what the Kyoto Protocol was about and what the Paris
Accord was about. And in my view, it is what COP should continue to
be about.
The loud, boisterous and frankly disruptive voices calling for
compensation led by our own South African delegation are not
constructive. They are being opportunistic, and this constant
banter may undermine the ability of the People to reach any kind of
consensus and thus undermine the global importance of COP.
My proposal – have a separate conference that only discusses
adaptation funding and climate disaster compensation, and ban
these discussions at COP.
Let’s get the ball back in the court and move to the establishment
of a global deal to accelerate the green economy internationally.
Note: a very positive development is coming to the fore of the
plastic crisis within the COP framework. Waste is a tangible, imminent
crisis no one can debate the scientific existence of.
I wish the COP delegates every success in their deliberations!
Yours,
G R E E N
Economy
journal
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EDITOR’S NOTE
Our requirement for energy remains an important topic based on
infrastructural development. Energy security is critical for meeting
objectives with respect to reconstruction and recovery. The transition
will require many new skills currently not prioritised in South Africa
(page 18).
On page 10, Llewellyn van Wyk attests that the causes for the poor
standard of infrastructure services worldwide have more to do with
scale and complexity than funding/skills shortages.
South Africa is experiencing a transformation from monopolistic
electricity provision to decentralised services operating at several
scales. Decentralised grids have contributed to alleviating the
disruptions caused by outages by adding a substantial amount of
solar PV (page 44) and battery energy storage (page 36).
The mini-bus taxi industry is a decentralised, yet significant public
transportation system. Congestion within South African cities is
worsening. E-micromobility provides cost-effective and eco-friendly
urban transportation opportunities, but we need to – once again –
prioritise infrastructure development (page 32).
Electricity wheeling facilitates the integration of renewable energy
into the grid. Virtual wheeling opens opportunities for companies
with low-voltage loads across South Africa to participate in the
market (page 40).
With almost 25-million solar panels in South Africa, and most of
those with a lifespan of 20 years, mass recycling will be required in
about 15 years. We must adopt waste management solutions for
solar, and the batteries used in these systems, now (page 52).
And that’s where circularity steps in (page 48). Round and round
we go.
A happy and green 2024 to you!
Alexis Knipe
Editor
4
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NEWS & SNIPPETS
AFRICA’S GREEN ASSETS EXCHANGE
Africa’s first locally developed online marketplace for trading
environmental assets, the Green Asset Exchange, has launched.
The asset exchange connects buyers and sellers through an online
platform which allows a transparent, trusted and efficient way to
get the best economic value from the green economy.
The launch in South Africa comes after three years of collaboration
between the founders of the Green Asset Exchange and various
market participants, brokers, developers, environmental lawyers
and top carbon registries in the world.
“Several years ago, we identified that the development of green
assets is the greatest mechanism to put an economic value on the
environment,” Green Asset Exchange Founder and MD, Nicholas
Rowley, explains. “At the same time, South Africa brought out its
carbon-tax legislation with one of the most forward-thinking policies
on carbon pricing and inclusion of carbon credits in the world. So,
the time and place is here and now.”
The asset exchange works as a tool to help accelerate the green
economy as it continues its rapid growth and maturation. “Green
assets” – such as carbon credits and renewable energy certificates –
already exist and they have economic value because of their positive
impact on the environment. The producers of these assets want to
get the highest price for them, and buyers want to buy them at the
best price they can get – this is where the Green Asset Exchange
comes in.
“South Africa and Africa has a solid base for growth in the green
economy with established developers and consultants already in
the industry and with growing interest from banks and investment
companies,” explains Rowley.
This is backed up by impressive figures: $7.5-billion was invested in
carbon projects last year and 1 500 new projects have been developed
or registered with the five main global registries since 2020.
The Green Asset Exchange is launching with a diverse asset
portfolio and is calling for more producers and buyers of green assets
to register, along with brokers, consultants and project developers.
www.greenassetexchange.com
TAX AND ESG-RELATED EXPENSES
Candice Meyer Cor Kraamwinkel Margaret Vermaak
Cor Kraamwinkel, Candice Meyer and Margaret Vermaak from
Webber Wentzel, consider ESG-related expenditure from a tax
perspective. In South Africa, ESG considerations permeate our
regulatory law, in our environmental, employment, corporate
and B-BBEE legislation.
Kraamwinkel highlights the practical considerations of ESG
taxation, by expanding on three areas:
1. Tax transparency and disclosure
This is a theme that is more advanced in certain of the first
world countries where there is legislative guidance on how
and what you need to disclose in your financials from a tax
perspective. South Africa is not there yet, but we see corporate
groups moving forward and starting to be early adopters. This
results in ESG impacting on how and what is reported from a
tax perspective, throughout the financials.
2. Ethical tax contributions
The discussion around fair share of tax and whether there is a
duty beyond legislation is ongoing, but ESG now also informs it.
3. Tax treatment of ESG expenditure
This area is the most technical, and it includes some of the
following examples of ESG expenditure by a company or group:
costs incurred for receiving environmental sustainability advice,
calculations of carbon tax credits, or the newly introduced
incentives around renewable energy.
GENERAL PRINCIPLES
There is no dedicated section in the Income Tax Act that deals
specifically with ESG. Instead, general principles apply for
business entities: i) expenses must be incurred for purposes of
trade in the production of income and ii) expenditure must not
be of a capital nature. This also means that the tax deductibility of
ESG-related expenditure will require a case-by-case analysis with
case-specific rules that may allow for a deduction or allowance
in a specific context.
Listen to Kraamwinkel, Meyer and Vermaak unpack the tax
deductibility of ESG-related expenses.
TWO WITS ACADEMICS LEAD GLOBAL CLIMATE WORKING GROUP
The Dean of the Wits Faculty of Science, Prof. Nithaya Chetty, has been appointed as the chair of the International Union
for Pure and Applied Physics (IUAP) Working Group on Physics for Climate Action and Sustainable Development, and
visiting professor Igle Gledhill from the School of Mechanical, Industrial and Aeronautical Engineering is secretary.
These appointments, effective for an initial three-year term, were confirmed during the IUPAP General Assembly in
October 2023 in Geneva. Chetty also serves as the vice-president of the Union responsible for membership and the
global development of physics. Both Chetty and Gledhill are previous presidents of the South African Institute of Physics.
“Issues around climate change are set to grow in the coming years. These challenges are intimately connected with
the need for energy security and sustainability of the environment, and if not addressed will impact negatively on
poverty, inequality, mass migration, and the human condition,” says Chetty. “These are global problems that require a
global effort, and a more focused quest for the green economy.”
TAKE-OUTS: PACKAGING WASTE
Liquid board packaging colloquium hosted by Fibre Circle.
“We are facing a crisis in waste management with fast diminishing
landfill airspace, and we all have a role to play in finding sustainable
solutions that not only divert waste from landfill but create the
much-needed jobs for the South African economy,” says Edith
Leeuta, CEO, Fibre Circle.
Key takeouts:
• Diversion from landfill. Agreement needs to be reached on
how targets are going to be reached and the collaboration
required to achieve set targets.
• Public-private sector partnership is critical to preserve the
environment and so that investment is made to educate all South
Africans. Links between the industry and academic institutions
need to be strengthened. Municipalities must ensure that their
integrated waste management plans enable separation at source
to promote the collection of recyclable materials. Municipalities
must provide consistent services to all citizens in the collections
value chain.
• Infrastructure is a key priority. There has been little or no
investment in infrastructure for several years. Without waste
processing infrastructure, high volumes of different kinds of
waste cannot be processed.
• Investment is problematic. Considerable investment is needed
PEOPLE-PLANET-PROFIT BALANCE
By Siphokazi Kayana and Nomfundo Mkatshwa-Jackson, CMS South Africa
It has become necessary for companies to prioritise sustainability
amidst the threat of climate change. Countries have thus sought
to develop regulations in various fields including environmental
footprint, market/product communication and financial reporting
for companies. Partly because of those regulations, companies are
increasingly being held legally accountable from different angles
with respect to their role in climate change – ESG litigation.
ESG litigation focuses on larger companies with a wide-reaching
footprint and its primary goal is to bring about behavioural change in
companies. Companies are often publicly held accountable through
various media campaigns. It is not just environmental organisations
that are acting as consumers; investors, shareholders and local
communities are increasingly vocal about taking action.
Climate litigation has doubled globally since 2015, bringing the
total number of climate lawsuits to some 2 000 – 25% of which were
initiated between 2020 and 2022.
KEY TRENDS
Infringement of climate law. There is no international binding
convention on business and human rights. In Europe, however, a
great deal of ESG legislation is under preparation, including the
Proposal of the European Commission of 23 February 2022 for a
Directive on Corporate Sustainability Due Diligence. The legislative
process is expected to take a while longer, as such, a final directive
is not likely to enter into force until 2025/2026. The obligations to
be embedded in this directive are, however, already largely part
of existing soft law standards ensuing from previous international
conventions.
Conversely, the regulations formulated by intergovernmental
organisations are integrated into domestic laws, thereby heightening
the potential for sanctions and legal disputes. The integration
of such international regulations into national legislation holds
significant importance, particularly for jurisdictions outside of the
EU, as it directly shapes the trends observed in ESG litigation.
NEWS & SNIPPETS
to improve municipal waste management capabilities. Privatesector
investment is essential.
• Transition to a circular economy needs to be inclusive.
Informal waste pickers need to be integrated into the waste
management system as it becomes more circular.
• Separation at source is critical. Given the various challenges
at municipal landfill sites, households must be persuaded to
separate their waste so that paper and packaging waste is not
contaminated by other waste materials.
• Incentivisation is key. The industry needs to produce ways to
incentivise citizens to play their role, particularly in underprivileged
areas. Incentivisation will also make it more likely that waste
pickers will collect more types of
packaging waste.
• Government has a key role
to play. Government needs
to ensure that compliance
and enforcement are
carried out for those
organisations that
choose to ignore regulations.
Municipal by-laws should
promote separation at source.
Misleading market communication and financial information. The
greening trend entails the inevitable risk that companies advertise
financial instruments and products as greener and more sustainable
than they are. Companies must be aware of the risk of providing
misleading market communication and financial information,
known as “greenwashing”.
Misleading product information may constitute a wrongful
act. The CSRD Directive requires large companies to report on
issues such as carbon emissions and social capital, but also about
the impact that a company has on biodiversity and human rights
violations in the supply chain.
Pollution of, and damage to, the direct environment. Companies
may be held accountable by local communities for polluting or causing
damage to, the direct environment. This can be done through a class
action. Such claims will be based on wrongful acts in combination
with environmental legislation.
Shareholders’ actions. Shareholders are increasingly exercising
their rights for ESG purposes to force the board of directors to act,
for example, their right to place items on the agenda, to speak
or to vote on the appointment or dismissal of directors or their
remuneration policy.
Personal liability of directors. An international trend is that,
in addition to holding the company liable to exert pressure, the
board of directors of a company is also held personally liable for
compliance with the company’s ESG obligations. This relates to (i)
personal involvement/negligence in violated standards; and (ii)
improper climate change policy.
The need for action to protect our planet has prompted intergovernmental
organisations and lawmakers to establish clearer
standards determining the extent to which businesses can impact
the environment while pursuing their operations.
We stand at a crucial point in history, necessitating the
implementation of rules that uphold the values of people, planet
and profit in equal measure.
6 7

NEWS & SNIPPETS
MEETING NET ZERO
South Africa is currently not in a position to inject finances into repairing an environment
ridden with the toxins associated with emissions, says Sune van Niekerk, consultant
and compliance specialist at World Wide Industrial and Systems Engineers.
Businesses should determine where they are on the net-zero emissions map,
so they can identify the gaps between their current and desired states.
“They need to develop strategies and a phased approach is best in terms
of measuring and tracking progress. By breaking up what needs to be done
in phases, the business can achieve small targets which will hopefully
assist them in reaching the bigger goal,” Van Niekerk says.
Given that Net Zero 2050 is a global target, it is important for businesses
to align with international standards. To this end, standardisation principles
developed by the International Organisation for Standardisation (ISO)
will be key:
ISO 14064 [Greenhouse gases] Specifies principles and requirements at the
organisational level for quantification and reporting of greenhouse gas (GHG)
emissions and removals. Details principles and guidelines for GHG projects
for quantification, monitoring and reporting of emission reductions and
removal enhancements. Provides principles, requirements, and guidelines for
conducting GHG information validation and verification.
[ISO 14067 - Greenhouse Gases - Carbon Footprint of Products] Guidelines
for quantifying and reporting the carbon footprint of a product based on life
cycle assessment.
[ISO 14090 - Adaptation to Climate Change] Principles, requirements and
guidelines for climate change adaptation planning.
[ISO 14080 - Greenhouse Gas Management and Related Activities] Guiding principles
for methodologies on environmental management, particularly relating to GHG emissions
and removals.
POLICY: CRUCIAL TO SA’S TRANSITION
By creating a favourable policy environment that supports
investment in green energy, we can accelerate the country’s
transition, writes Shirley Webber, Absa.
Loadshedding has cost the economy almost R1.2-trillion,
according to advocate Tembeka Ngcukaitobi, who is representing
political parties against Eskom. The knock-on effects are taking a
serious toll on employment, food security and community stability.
With government’s decision to remove licensing requirements
for generation projects, interest in green energy solutions soared.
In the first quarter of 2023, private companies registered nearly
2 500MW of renewable energy projects, which amounts to two
stages of loadshedding.
In March 2023, 31 renewable energy projects, amounting to
1 308MW of collective capacity, were approved by NERSA. This
is a notable increase of over 800%, compared to 2021 when 134
projects registered in the entire year.
NERSA indicates that seven wind projects account for the
bulk of new capacity, totalling 1 058.2MW. Government has
also announced plans to procure up to 10 000MW of additional
energy in bid windows 7 and 8 of the REIPPP.
INVESTING IN THE FUTURE
Government should consider progressive regulatory reforms for
renewable energy. This includes creating incentives for private
investment, such as more attractive tax rebates or feed-in tariffs
to drive innovation, reduce the costs of green energy and add
income to the pockets of investors in the country’s renewable
energy infrastructure.
Work can be done to develop local renewable energy industries
by providing training and support for local businesses – ensuring
they can grow from concept phase to commercial viability. By
supporting clean-tech and green initiatives, we can enable them
to contribute more energy to the grid.
SA’S “ENERGY CROSSROAD”
SA is at an energy crossroads, caught between a crisis that is
costing the economy around R204-million a day and a need to
decarbonise the country’s future and achieve this transition in a
just, socially acceptable manner.
“We urgently need to mobilise enormous amounts of money
for humanitarian response, social and economic transition, and
large-scale spending to make cities cooler and more resilient,
and to finance generation as well as distribution capacity,” says
Standard Bank Group CEO, Sim Tshabalala
“We need to make better use of blended finance. Banks and
other private capital providers can lend and invest more when
development finance institutions provide credit guarantees. It is
exciting that this idea is getting traction,” says Tshabalala.
The transition will need to consider the energy mix, context
and security in different countries and regions. The introduction
of renewable energy and gas as transition fuels will require
innovation and changeover finance.
DFFE REACHES A MILESTONE
DFFE is proud to announce the outcome of the allocation of 15-year
fishing rights to small-scale fishers in the Western Cape. The delegated
authority on the Minister’s instruction issued grant of rights letters
to 62 small-scale fishing co-operatives with a total membership of
3 850 declared fishers. This marks the final province where these
rights have been granted for the first time in South Africa’s history.
The Department is in the process of developing a financially viable
basket of species for the small-scale sector. Some of the species
that have been granted to date includes commercial traditional
line-fish species, West Coast rock lobster, seaweed, bait species,
abalone aquaculture ranching sites, net-fish species, white mussels,
oysters and hake handline.
HUAWEI BUILDING BRIDGES FOR BUSINESS GROWTH
HDC.Together HUAWEI MEA Ecosystem Summit soars to new
heights at the Dubai Opera, fostering collaborations across China
and the MEA region. The summit showcased a seamless fusion
of collaboration and innovation. The exclusive event brought
together Huawei Ecosystem partners from China and across the
Middle East and Africa.
Organised in partnership with Dubai Economy and Tourism
(DET) and the Saudi Tourism Authority (STA), the focus of the
summit was on fostering innovation, economic growth and
developments in technology and tourism.
When converging technology and opportunity, HDC.Together
acts as the bridge connecting the MEA region and China, fostering
innovation, partnerships and business exchange across markets.
Eng. Maryam Al Balooshi, Vice Chair and UAE representative of
the Committee of Aviation Environment Protection (CAEP)-ICAO,
said, “In the ever-evolving landscape of technology, Huawei’s
THE PCC ON KOMATI POWER STATION
President Ramaphosa welcomed a report from the Presidential Climate Commission (PCC) to support a just
transition at the decommissioned Komati coal power station in Mpumalanga as an important consolidation of
the perspectives of impacted stakeholders in Steve Tswhete and Emalahleni municipalities.
“The report, which was developed in an inclusive and consultative manner, provides a factual assessment
of the decommissioning process followed at Komati. The report’s recommendations should move us closer to
reclaiming restorative justice to affected workers and communities,” said Ramaphosa
The PCC began interacting with Komati in January 2022 as part of the development of the national Just
Transition Framework. Ramaphosa emphasised the aim is to bring coherence to just transition planning, and to
use the report as a blueprint for ensuring justice in future coal plant decommissioning projects.
NEWS & SNIPPETS
ecosystem stands as a testament to transformative collaboration,
enriching experiences by building bridges for a better future.”
The event outlined a comprehensive 2024 action plan with
24 strategic partners joining the conversation, formalising
commitments to innovation and growth across regions including
the Emirates, Arabian Oud, Jahez and Viu, all of whom expressed
their commitment to these shared goals.
The summit delivered the perfect platform for HUAWEI to
introduce new solutions, underscoring a commitment to connect
with customers, enable brand growth and embrace future
challenges. Ultimately, the annual HDC.Together HUAWEI MEA
Ecosystem Summit highlighted Huawei’s unwavering dedication
to fostering collaboration, innovation and a connected future,
showcasing knowledge sharing and cutting-edge solutions
within Huawei’s thriving ecosystem, while uniting partners from
China and MEA.
MAKE PVC YOUR FIRST
LINE OF DEFENCE
Considering that hospitals rely on PVC to offer
the first line of defence against superbugs and
infections, shouldn’t you use it for your
packaging too?
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8

THOUGHT LEADERSHIP
INFRASTRUCTURE
It’s a question of scale
efficiency and reduction of travel demand is at the core of the compact
city’s conceptualisation.
Yao, notes in the study that the compact city concept can provide
twofold contributions to higher land efficiency namely, it reduces
low-efficiency consumption of land resources while, simultaneously,
promoting agglomeration economies by encouraging high-density
development. Yao found that higher population density and compact
urban form are beneficial to the urban economic efficiencies of large
cities. However, Yao proposed “tailor-made policy suggestions regarding
compactness and economic efficiencies for cities of different sizes”
which concurs with the finding made in earlier pieces for strategic
investment decision-making.
Westerink found that “compact cities excelled in efficient land
consumption, more flexible land use patterns, cost efficiency of
development and maintenance [the emphasis is mine], and reduced
reliance on fossil fuels and motor vehicles.” Numerous other researchers
have come to the same conclusion, including Dempsey (2010), Kain
et al (2022) and Ghisleni (2022).
Marcotullio introduced wastewater treatment as one of the essential
conditions. Marcotullio argues that a further innovation required
to enhance the sustainability of compact cities is the adoption of
sustainable systems, which include “infrastructure to naturally process
sewage waste, grey water and storm runoff on site”. This reference to
natural processes begins to address the application of nature-based
solutions (NbS) in development to, inter alia, deal with climate change
adaption and mitigation.
THOUGHT LEADERSHIP
NATURE-BASED SOLUTIONS
The International Union for Conservation of Nature (IUCN)
promotes nature-based solutions that leverage nature and the
power of healthy ecosystems to protect, optimise infrastructure
[the emphasis is mine], and safeguard a stable and biodiverse
future. It is the optimisation of infrastructure specifically that is
of interest to this think piece. It notes that nature-based solutions
can help cities realise an emerging opportunity to reimagine the
built environment, and by extension, our civilisation.
Nature-based solutions are defined as the sustainable
management and use of natural features and processes to tackle
socio-environmental issues. The European Union’s definition of
nature-based solutions states that nature-based these solutions are
inspired and supported by nature, are cost-effective, simultaneously
provide environmental, social and economic benefits and help
build resilience. Such solutions bring more, and more diverse,
nature and natural features and processes into cities, landscapes
and seascapes, through locally adapted, resource-efficient and
systematic interventions.
South African households and
businesses have installed 4 400MW of
rooftop solar PV, an increase from 983MW
in March 2022 to 4 412MW in June 2023.
Previously*, I asserted that the underlying causes for the poor standard and performance of
infrastructure services worldwide had more to do with scale and complexity than funding or
skills shortages, which are contributory albeit secondary causes. This raises a need for further
investigation of compact cities and decentralised management approaches.
BY LLEWELLYN VAN WYK, B. ARCH; MSC (APPLIED), URBAN ANALYST
I
argued, based on a limited case study of three countries, that
scale – both physical and financial – would appear to be the
primary issue and that it required a compact infrastructure
network coupled to strategic decision-making in terms of scale,
complexity and location.
From the albeit limited evidence shown in that think piece, a
correlation was drawn between population density, GDP per capita and
global infrastructure ranking. I noted that more research is required
to make a definitive statement on this hypothesis. Nonetheless,
compactness and strategic investment decision-making are key factors
in Taiwan and Singapore’s success. This raises issues that need to be
investigated regarding the original proposition. One of these is the
compact city and the other is the use of innovative engineering
and decentralised management approaches. The latter speaks to
microgrids and distributed grids.
THE COMPACT CITY
The compact city, despite the recent press attention given to comparable
ideas such as the 10-minute or 15-minute city, is not a new concept.
The term was first invented by Dantzig and Saaty in 1973 in their
publication Compact City: Plan for a Liveable Urban Environment (WH
Freeman, San Francisco) although credit should also go to Jane Jacobs
and her book The Death and Life of Great American Cities (1961). Jacobs
identified four essential conditions for urban renewal namely, mixed
uses, small walkable blocks, mingling of building ages and types as
well as a denser concentration of people.
Similarly related concepts include smart growth although critics,
such as Kaid, argue that it differs in principle since it suggests that
growth is necessary and good; new urbanism; green urbanism, with
its 15 core principles as set out by Lehmann; and eco-districts. Central
to all these concepts is the notion of a compact city.
A compact city as originally promoted is one that is predicated
on relatively high residential density, mixed land uses, an efficient
public transport system and, critically, the ability to walk to most
destinations of choice.
Notably absent from these conditions was the provision of
infrastructure apart from transport and personal mobility. Infrastructure
only emerged as an essential condition when the focus of compact
cities began to include self-sustainability, meaning that the city
has access to all the services it needs within the community. Apart
from the typically included services such as stores, employment and
service providers, it began to include infrastructure services previously
provided at a regional, provincial and national level. These are typically
energy generation, waste disposal and processing as well as smallscale
agricultural production such as community gardens and/or
vertical gardening. Lehmann extended these essential conditions
by including water infrastructure. Still absent was sanitation.
From an infrastructure development perspective, the argument
made for compact cities is that they are more sustainable than the
conventional model of urban sprawl as they reduce car dependency
and require less and cheaper per capita infrastructure provision. As
noted by improving land efficiency through improvements of resource
10 11

THOUGHT LEADERSHIP
THOUGHT LEADERSHIP
The IUCN proposes NbS as an umbrella concept with covering
various categories: the category of interest to this think piece is the
infrastructure-related category which includes natural infrastructure
and green infrastructure.
NbS is classified into types (see figure 1) with Type 3: Design and
Management of New Ecosystems being the category that includes
greening cities, greening buildings and artificial ecosystems.
Figure 1: Types of nature-based solutions. By Hilde Eggermont –
received from the original article author, CC BY-SA 4.0.
The use of mangroves along coastlines is one of the more readily
identified nature-based solutions. However, green roofs or walls are
also deemed to be NbS as they can moderate the impact of high
temperatures, capture storm water, abate pollution and act as carbon
sinks while simultaneously enhancing biodiversity. In this capacity,
NbS can bring together established eco-based approaches, such as
ecosystem services, green-blue infrastructure, ecological engineering,
ecosystem-based management and natural capital .
The World Water Development Report 2018 by UN-Water notes
that NbS is particularly helpful in enhancing water availability and
improving water quality by, inter alia, the use of natural wetlands and
constructed wetlands to treat wastewater.
More specifically, the following solutions are of benefit to infrastructure:
blue-green roofs; ecological sanitation; hydroelectricity; hydropower;
marine energy; rainwater harvesting; rainwater tank; tidal power and
wave power.
Green infrastructure is considered a sub-set of NbS. It is also included
in standards such as the Standard for Sustainable and Resilient
Infrastructure (SuRe). It can also include low-carbon infrastructure
such as renewable energy infrastructure and public transportation
The bigger question is whether
decentralised infrastructure can solve
the ongoing decline in infrastructure
services and assets.
In 2021, the [mini-bus taxi]
industry transported about
16.5-million passengers a day.
The use of mangroves along coastlines is one of the more
readily identified nature-based solutions.
systems. In concert with green infrastructure is the idea of green-blue
infrastructure which includes sustainable urban drainage systems
(SUDS) for managing urban stormwater systems.
Green infrastructure has been found to reduce project costs: in a
2012 study focusing on 479 green infrastructure projects across the US,
44% of green infrastructure costs were reduced. The most notable cost
savings related to reduced stormwater runoff and decreased heating
and cooling costs , . Green-blue infrastructure projects completed in the
City of Philadelphia in the US reduced their stormwater infrastructure
costs from $6-billion to $1.2-billion over a 25-year period.
DECENTRALISED SOLUTIONS
A decentralised physical infrastructure network refers to a network
of physical devises or resources distributed across various locations
and operated in a decentralised manner. Unlike traditional centralised
infrastructure networks, where a single entity or organisation controls
and manages resources, decentralised networks aim to distribute
control and decision-making authority among multiple participants.
Decentralisation at this level entails a shift from monopolistic silos
to a federated structure operating at several scales. Decentralisation
also means ensuring real control of the user’s own resources either
at the individual or collective level.
South Africa is currently experiencing, because of Eskom’s failures,
such a transformation from monopolistic electricity service provision
to decentralised services operating at several scales. It can be argued
that this would have happened anyway, but it has been accelerated
by the critical power shortages experienced by consumers.
Decentralised grids – residential and commercial – have contributed
to alleviating the disruptions caused by outages by adding a significant
amount of rooftop solar PV and battery energy storage. Data from
Eskom and Professor Anton Eberhard revealed that South African
households and businesses have installed 4 400MW of rooftop solar
PV, an increase from 983MW in March 2022 to 4 412MW in June 2023.
This 349% increase in solar rooftop PV significantly reduced the residual
load that Eskom needs to meet during the day.
In truth, decentralisation of infrastructure services in South Africa
began many decades ago with the emergence of the mini-bus taxi
industry, again a result of monopolistic service delivery failure, just
like Eskom. This decentralised transport system is a significant part of
the country’s public transportation system, transporting about 69%
of South Africa’s commuters. In 2021, the industry transported about
16.5-million passengers a day. By way of context, Gautrain ridership
is about 55 000 passengers per day.
The bigger question is whether decentralised infrastructure can solve
the ongoing decline in infrastructure services and assets. Decentralised
infrastructure shifts functions and responsibilities towards entities
distributed across various locations and scales. A specific concept
associated with decentralisation of services is that these systems are
scalable, modular and can be geographically distributed in proximity
to customers without big networks and grids. In addition, suppliers
can perform distribution, maintenance and repair services as well as
additional services. This approach can address challenges associated
with traditional centralised networks such as cost, risk and scale as
well as lowering barriers to access and participation.
12 13

THOUGHT LEADERSHIP
Battery energy
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The major benefit of decentralised infrastructure is that there is no
single point of failure – as so alarmingly demonstrated by the Eskom
scenario. This not only applies to service delivery inadequacies but
the impacts of climate-related extreme weather events as well.
Big, centralised power plants also lose between 8% to15% of the
power generated between the power plant and consumers: this can
vary substantially depending the specifics of the power grid and
the distance between the power station and the consumer. These
transmission losses are avoided in decentralised plants.
THE NET-ZERO MOVEMENT
Zia Qureshi, a former director of development economics at the World
Bank and a non-resident fellow at the Brookings Institution, noted that
“as it stands, more than 80% of the world’s primary energy supply and
more than two-thirds of its electricity are derived from fossil fuels.
Infrastructure alone accounts for around 60% of global greenhouse
gas emissions. If the world follows the same old approaches in building
new infrastructure, it will lock in polluting, resource-intensive and
unsustainable pathways to growth”.
A core driver of decentralised grids is the concept of net-zero: net-zero
refers to a balance between used and generated resources. While this
concept is most often used in the context of energy, increasingly other
resources are coming into focus. Day Zero in Cape Town in 2017/18
is a vivid reminder that all the resources we use face exhaustion at
some REFERENCES point: we are a finite world.
Decentralised Benfield, K. 2011. infrastructure “The Country’s Most will Ambitious operate Smart Growth at its Project”. most The efficient Atlantic. when
resources consumed and generated are in balance. With careful
and strategic design, net-zero energy, water, sanitation, waste and
biodiversity (net-zero +5) are within reach.
QUO VADIS INFRASTRUCTURE DESIGN
In the first urban areas.” of the In Environmental think-pieces Science published & Policy, 77:15-24. in this journal on this topic
the question was asked about the future direction of infrastructure
investment and design.
14
Lehmann, S., 2010. “Green Urbanism: Formulating a Series of Holistic Principles.” S.A.P.I.EN.S. 3 (2).
We are a finite world.
Qureshi posed an enticing proposition when he argued that “both
infrastructure investment and climate action are urgently needed.
With the right approach, we can achieve both goals simultaneously,
building a more prosperous and sustainable future”. He further argued
that “shifting to renewable energies and sustainable infrastructure can
help to mitigate greenhouse gas emissions while enhancing countries’
resilience to climate change. If climate risks are factored in investment
decisions, renewable energies, cleaner transport, efficient water
systems and smarter, more resilient cities will emerge as the best bets”.
The proposition challenges one to consider what “the right approach”
may be. Through this series on infrastructure, I have constructed an
argument for might it be. I suggest that the “right approach” contains
at least four core strategies:
1) Compact cities excel in efficient land consumption, more flexible
land use patterns, cost efficiency of development and maintenance
and reduced reliance on fossil fuels and motor vehicles.
2) Nature-based solutions leverage nature and the power of healthy
ecosystems to protect and optimise infrastructure and safeguard
a stable and biodiverse future.
3) Decentralised grids. A specific concept associated with
decentralisation of services is that these systems are scalable,
modular and can be geographically distributed in proximity to
customers without big networks and grids.
4) Net zero. Decentralised infrastructure will operate at optimum
efficiency when resources consumed and generated are in balance.
Li, L., & Yu, Y., 2016. “Planning low carbon communities: Why is a self-sustaining energy management system indispensable?” In Energy Sources, Part B: Economics, Planning, and Policy. 11 (4): 371-376.
Yao, Y., Pan, H., Cui, X., & Wang, Z., 2022. “Do compact cities have higher efficiencies of agglomeration economies? A dynamic panel model with compactness indicators.” In Land Use Policy, 115: 106005.
With this approach, we can achieve both goals of infrastructure
investment and climate action simultaneously, building a more
prosperous and sustainable future.
Westerink, J., Haase, D., Bauer, A., Ravetz, J., Jarrige, F., & Aalbers, C., 2013. “Dealing with Sustainability Trade-Offs of the Compact City in Peri-Urban Planning Across European City Regions.” In European
Planning Studies, 21 (4): 473-497.
Marcotullio, P. 2017. Towards sustainable cities: East Asian, North American, and European perspectives in managing urban regions. New York: Routledge.
Raymond, C., Frantzeskaki, N., Kabisch, N., Berry, P., Breil, M., Nita, M., Geneletti, D., & Calfapietra, C. 2017. “A framework for assessing and implementing the co-benefits of nature-based solutions in
Berg, N., 2012. “Green Infrastructure Could Save Cities Billions”. Bloomberg.com. New York: Bloomberg LP.
US EPA, 2015. “The Economics of Green Infrastructure”. Washington, D.C.: U.S. Environmental Protection Agency (EPA). 2015-11-02.
Green, J., 2013. “The New Philadelphia Story is About Green Infrastructure”. The Dirt. Washington, DC: American Society of Landscape Architects (ASLA).
Neethling, B. 2023. “Eskom is on the right track.”
* For previous infrastructure thought leadership articles written by Llewellyn van Wyk, visit www.greeneconomy.media and read our digital version of Green Economy Journal issues 57, 58, 59 and 60.
Research and Markets, 2020. “2020 Report on South Africa’s Minibus Taxi, Bus Services and Metered Taxi Industry.” Dublin: Research And Markets.
Ibid.
Centre for Public Impact, 2016. “South Africa’s Gautrain: rail travel from Pretoria to Johannesburg.”
CHNT undated. “How much power loss in transmission lines.”
Qureshi, Z., 2016. “Infrastructure for a Sustainable Future.”
Ibid.
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Development Partner – Southern Africa

A Nightmare in the Making
The Untold Consequences of
Neglecting Sustainability in
South Africa
In a world not so distant from our grasp, South Africa,
a nation once celebrated for its abundant resources
and flourishing industries, now lies in desolation.
This remarkable land, once synonymous with
economic promise and resource wealth, has become
a victim of environmental decay, merciless corporate
exploitation, and the relentless tide of societal
upheaval. The nation’s former glory has given way to
a haunting tableau of ruins and despair, where the
echoes of its past achievements have been silenced
by the dark forces of decay and exploitation, casting
a shadow over its once-vibrant future...
The Economic Abyss
As the gap between the wealthy elite and the impoverished
masses grew wider, the economy continued to unravel.
Unemployment and inequality reached unprecedented heights,
plunging the majority of citizens into a vortex of destitution. The
absence of crucial anti-corruption and business continuity
management systems left the nation susceptible to rampant
bribery and economic instability.
Political Turmoil
Political turmoil gripped the nation, with rival factions vying for
control. Corruption ran rampant, and infighting paralysed the
government, rendering it impotent in the face of mounting crises.
The lack of ethical standards led to a culture of exploitation and
dishonesty, further weakening the nation’s leadership.
Social Unrest
Amidst the gloom, social unrest swelled. Without adequate access
to healthcare, education, and basic services, communities turned
into cauldrons of desperation. The absence of comprehensive
sustainability reports and assurance processes left the people’s
cries for help unanswered, threatening to tear the social fabric
asunder.
Environmental Desolation
Environmental degradation spiraled out of control, as natural
resources were depleted, and ecological disasters became the
norm. South Africa’s once-stunning landscapes became barren
wastelands, as the lack of sustainability practices and material
stewardship standards left the nation helpless in the face of
ecological collapse.
Exodus
As the situation worsened, a mass exodus of South Africans
seeking refuge abroad became inevitable. This brain drain sapped
the nation of its brightest minds and most talented individuals,
leaving it even more vulnerable and destitute. The absence of
ethical practices in the steel industry allowed rampant
environmental destruction to persist.
This narrative offers a haunting glimpse of what a nation’s
future may become when crucial standards are neglected,
serving as a solemn reminder of the dire consequences
associated with the abandonment of essential reforms.
However, within this darkness, there is a shared hope for a
better future...
Embracing Essential Sustainability
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visit our website at www.dqsglobal.com

SKILLS DEVELOPMENT
SKILLS DEVELOPMENT
How to make the
GRASS
GREENER
for the other side
South Africa’s diverse skills development needs require a well-coordinated, inclusive and
integrated post-school system. Green Economy Journal looks at the skills that are needed for
and after the Just Transition.
Sector skills plans for energy, water, metals, engineering and related services.
The National Plan for Post-School Education and Training
(NPPSET), which derives its mandate from the White Paper for
Post-School Education and Training (WPPSET), is a roadmap to
2030 for the development of post-education and training. The plan
acknowledges that we do not have adequate education opportunities
for school leavers (on completion of grade 12 or earlier). Central
to the plan is the recognition that post-school opportunities are
needed outside the higher education sub-system.
METALS AND ENGINEERING
In January 2022, the metals and engineering sector outlook was positive.
Policy developments to improve business operation conditions in SA
include the steel masterplan. Coupled with this policy, the automotive
sector will see increased investments in production, resulting in growth
potential for the stainless-steel sector. It is imperative to increase
confidence in the sector’s outlook through efforts to reduce corruption
and ensure implementation of the reimagined industrial plan which
incorporates reconstruction and recovery efforts by government.
The positive outlook is hampered by the Russia/Ukraine conflict,
which has had negative consequences in terms of inflation on food
and commodities, particularly the increased fuel price. Loadshedding
and energy constraints have further negatively impacted the sector.
AUTOMOTIVE SECTOR
The automotive sector contributes 4.9% to the GDP derived from
manufacturing and retail, and accounts for 26.7% of SA’s manufacturing
output, with almost 16% of exports. According to the National
Association of Automobile Manufacturers SA, the sector slowed in
the fourth quarter of 2021.
New vehicle sales increased 0.8%, much lower than the 3.5%
experienced in the fourth quarter of 2020. Vehicle production reflected
a decline of 16.5% compared to the production in the same quarter
of 2020. Vehicle exports declined by 21.3%. These results came on the
back of several domestic disruptions including civil unrest in July 2021,
a cyberattack on Transnet, a three-week strike in the metals sector and
lockdown restrictions. The Russia/Ukraine conflict hampered global
supply chains due to Europe’s strategic position in the auto ecosystem.
The depressed outlook was short-lived as new vehicle sales and
exports rose in February 2022, indicating traction in sector recovery.
In February 2022, new car sales rose by 18.4% and exports rose by
12.3%. Electric and hybrid vehicle sales increased in January 2022 (216
vehicles were sold versus 34 in January 2021). These trends bode well
for the manufacturing sector. Despite the KZN flooding in April 2022,
the sector’s sales remained robust, and the sector saw increases in
production and exports.
PLASTICS SECTOR
The plastics sector accounted for around 60 000 jobs and exported
converted 1.8-million tons of polymer into products in 2018. The sector
has a multiplier potential of 3.7% for each job created and 3.5% for
each rand invested. As part of government’s reimagined industrial
policy, a plastics industry masterplan has been developed to ensure
the industry’s growth trajectory.
Key objectives are to reduce the trade deficit to less than 10% of
the total value of the industry by 2035, maintain or improve the tons
pe employee which equated to 30 tons per formal job in 2018, reduce
visible amounts of plastic litter in the environment and increase
recycling rates to 60%.
Realising the masterplan’s aspirational vision requires institutional
coordination and regulatory intervention. Even though the sector
has been earmarked as a priority, expedience in investment and
political will is required to boost the industry’s economic trajectory.
Plastics SA states, “The negative impacts of a national economy
that has not grown at any meaningful rate for over a decade, losses
suffered because of the industrial action taken by striking workers,
a weakening rand/dollar exchange rate, competing against cheap
imports; high electricity costs and unreliable supply have forced
many of our manufacturers and recyclers to lose the fight for survival.
Some companies have had to dramatically scale down operations,
while others have had to close their doors permanently.”
ENVIRONMENTAL SUSTAINABILITY
The notion of the green and circular economy as it relates to climate
change and environmental sustainability tends to drive business
processes and skills required to meet these. Internationally, there is
a big push for net-zero carbon emissions by 2050.
There will be an ever-increasing demand for clean technologies and
energy solutions will become important for mer sectors and energysavvy
consumers. New solar-powered products and efficient fuel cells
are a significant input into the future of all citizens – the transport
industry will move to cleaner engines and autonomous vehicles;
this will require infrastructure and support for localised production.
A concern among stakeholders is the lack of clear training intercessions
and talent development in line with the opportunities presented by
green economies.
The merSETA’s research in green skills is being driven by the private
sector on topics that are related specifically to their business environment.
There needs to be a concerted effort to raise new opportunities for
occupations in spaces such as waste management, renewable energy
and the circular economy.
Design for the environment, critical thinking and problem-solving
are crucial skills raised by stakeholders in this area as well as the
need to embark on producing green products and processes. The
Global Eco-Industrial Parks Revitalisation Programme was launched
in SA in 2020 (partnership between the DTIC, NCPC-SA and UNIDO).
Eco-industrial parks are hubs in which businesses cooperate with
each other and the local community to reduce waste, share resources
and achieve sustainable development. This model of collaboration
to ensure that businesses work with the design of the environment
provides a blueprint for further collaboration in the manufacturing
sector. merSETA should implement research in this area to understand
the skills required.
RECOVERY PLAN
The Economic Reconstruction and Recovery Plan (ERRP) sets out
to stimulate equitable and inclusive economic growth in SA, which
requires a substantial structural change to enable development. The
goal is for SA to realise massive mobilisation of resources and efforts
in economic activities that would place the economy on a sustainable
recovery trajectory.
Addressing issues that have hindered the progress of the local
economy such as sustained low levels of investment and growth,
downgrades, including those of state-owned enterprises (SOEs),
increasing associated costs of borrowing, revenue leakages and
maladministration of state funds, increasing budget deficit and a
rising stock of debt requires an effort in implementation of the ERRP.
Aggressive infrastructure investment; employment-orientated
strategic localisation, reindustrialisation and export promotion;
energy security; tourism recovery and growth; gender equality
and economic inclusion of youth; green economy, mass public
employment and macro-economic interventions; as well as food
security have been emphasised in the ERRP. Green industrialisation
will support energy, water, electricity supply and food security.
Infrastructure investment
is a vital driver of the future
growth of our economy.
18 19

SKILLS DEVELOPMENT
SKILLS DEVELOPMENT
Design for the
environment,
critical thinking
and problemsolving
are
crucial skills.
ENERGY
SA’s requirement for energy remains an important topic based on
much-needed infrastructural reconstruction and development.
Despite the many challenges faced by SA from a resource point of
view, it still holds true that the energy sector has seen an increase
in the percentage of households connected to mains power supply
over the years.
Conventional thermal power is the dominant source of energy
for the foreseeable future. Deemed as a basic requirement for the
sustainability, stability and growth of the economy, the ERRP posits
energy security as critical for meeting objectives with respect to
reconstruction and recovery.
Energy demand has by far exceeded supply, as can be seen with
the ongoing power shortages across the country. Enhancement and
diversification of the current infrastructure must be geared towards
the reliability of energy supply.
Given our current heavy reliance on coal for electricity generation as
well as liquid fuel production, the energy transition will require many
new skills in areas currently not prioritised in SA. The transition brings
many risks and significant opportunities since it impacts all sectors in
all countries and is of critical importance to SA.
The move away from coal to lower carbon-based technologies will
inevitably impact communities that are dependent on the existing
infrastructure. By ensuring that the transition is “just”, the process
must actively drive opportunities for social upliftment. The transition
covers decarbonisation, digitisation, decentralisation and deregulation.
It is imperative that former plans are not abandoned by government.
Renewables must be a central focus for the long term which supports
a sustainable energy future, since diversification of the energy mix
remains a priority as expressed in the Integrated IRP which encourages
new entrants and capacity in the energy space.
Green economy mediations are envisaged to support energy security,
which will in turn foster cleaner energy transitions, create new green
jobs and support industries.
Liquefied Natural Gas is one of the cleanest fossil fuels available and
the gas-to-power energy solution will become a major contributor to
the national power grid while offering a cheaper alternative to diesel.
Increased capacity in any form will require an intensified supply of
the most appropriate skills in response to significant energy needs.
Partnering with respective constituencies must remain a priority for
the EWSETA in ensuring the provision of skills in responding to new
sectoral developments and related opportunities. The EWSETA must
continue to produce the required competencies and knowledge
through education and training to inspire a generation geared towards
sustainable, effective, efficient and green long-term solutions.
The energy transition will require
many new skills in areas currently
not prioritised in SA.
WATER ACCESS AND SANITATION
Between 2002 and 2019, household access to water in the dwelling
increased from 4.5-million to 7.7-million. Significantly more houses
had access in 2019 than 18 years ago. Through the continued efforts
of government, support agencies and stakeholders, households with
access to improved sanitation increased by 20.4% between 2002 and
2019 (from 61.7% to 82.1%). Achievements owed to the installation
of pit toilets with ventilation pipes.
Without water engagement, SA will continue to face serious water
threats that will compromise long-term human and environmental
health. Supply and quality of water are determined by dominant factors
such as demand and use; however, the freshwater cycle boundary is
strongly affected by climate change. It is projected that SA will have a
water deficit of 17% by 2030 and physical water scarcity by 2025 based
on current usage trends and the aggravating effects of climate change.
In February 2021, Ramaphosa announced an intention to establish
the National Water Resources Infrastructure Agency, which has been in
the making for years and will oversee the development of the systems
that are crucial for SA’s water security. This will include operations of the
existing dams and main transmission pipelines that are currently run by
the Department of Water and Sanitation (DWS); as well as of specialist
infrastructure such as treatment of acid mine drainage currently operated
by DWS and the Trans Caledon Tunnel Authority (TCTA).
The agency will ensure funding for the construction of water systems
upon which large water users such as metro municipalities, public
utilities and big companies are dependent. This approach is aimed
at averting maladministration and irregular expenditure of resources
identified for this purpose. The agency will streamline procurement and
recruitment using processes already proven by the TCTA, especially for
hiring and retention of much-needed specialists and new graduates.
The National Water Act (NWA) and the Water Services Act of 1997
provide a framework for sustainable water resource management while
enabling improved service delivery. The National Water and Sanitation
Masterplan sets out priorities to be addressed by the water sector until
2030, which includes measurable outcomes such as responsibilities,
time frames and associated estimated costs. Examples of these priorities
include building a water-secure future based on five key objectives
that define a “new normal” for water and sanitation management in SA:
a. Resilient and fit-for-use water supply. Rethinking how our cities,
provinces and country must become resilient depends on the
ability to conceptualise and implement a water-sensitive urban
design. This will create jobs and prompt the need for new skills.
b. Universal water and sanitation provision. Achieve 100%
sustainable sanitation and reliable water supply provision by 2030.
c. Equitable sharing and allocation of water resources. Access
for all while maintaining a reliable supply of clean, potable water
remains paramount for government planning and management
activities based on limited water resources in the country.
d. Effective infrastructure management, operation and maintenance.
Planning for, developing and maintaining water infrastructure is
a basic requirement in realising effective operations across the
water sector.
e. Reduction in future water demand. The curbing of water demand
will require reliable water infrastructure to support reduced need
for supply through reuse, recycling and reduction of wastage. The
national capacity to operate, maintain and manage water supply
and sanitation services requires urgent attention.
Vital actions include implementing a long-term plan for the
turnaround of water supply and sanitation services; planning for
effective disaster management; revisiting levels of service for water
supply and sanitation against issues of affordability; investigating
alternative service delivery models such as build, operate, train
and transfer; management contracts and concessions; providing
The right to access sufficient water is
accorded to everyone: water is a basic
human right for all.
direct water services development planning support to WSAs;
and implementing provincial water services delivery masterplans.
Determining the right skills, knowledge and expertise required to
respond to the desperate need for a resilient water infrastructure in
SA will require mutual collaboration across all government spheres,
the EWSETA and related stakeholders.
SUSTAINABLE INFRASTRUCTURE
The Sustainable Infrastructure Development Symposium (SIDSSA)
brings together critical role-players in the infrastructure investment
space that are galvanised around a critical goal of accelerating an
infrastructure-led economic recovery plan. Infrastructure investment is
a vital driver of the future growth of our economy. Providing superior
quality infrastructure allows an economy to be more efficient, improves
productivity and raises long-term growth and living standards. SA
requires the right kind of infrastructure investment that will not only
contribute to higher long-term development but should address spatial
disparities, transform the economy and create much-needed jobs.
SIDSSA is a platform to explore partnerships between the public
and private sectors and investment opportunities in infrastructure. The
symposium is intended to shape the conversations about regulatory
reforms, innovative funding models and investing in infrastructure for
shared prosperity. SIDSSA will help government identify regulatory
impediments before final, costly decisions are made.
A well-coordinated and institutionalised infrastructure delivery
mechanism involving the public and private sectors will ensure we
support projects that can leverage private sector funding.
HYDROGEN FUEL CELLS ECONOMY
SA’s Hydrogen Valley will identify concrete project opportunities to
kickstart SA’s hydrogen activities in promising hubs. The proposed
hydrogen valley will stretch approximately 835km from Anglo-
American’s Mogalakwena PGM mine in Limpopo, along the industrial
corridor to Johannesburg and Durban.
The aim is to boost economic growth and job creation, drive the
development of new industries, increase value-add to SA’s platinum
reserves and reduce our carbon footprint.
The DSI is leading the process of developing a hydrogen society
roadmap that sets out a vision for an inclusive SA hydrogen society to
enable the development of a compact between government, industry,
labour and communities.
EWSETA has embarked on a partnership to facilitate skills
development and quality provision guidance in terms of hydrogen
fuel cell technology.
OPERATION PHAKISA
Launched in 2014 by government, Operation Phakisa was positioned
to unlock various energy options, and designed to boost economic
growth and create jobs in the context of the NDP. The Department
of Mineral Resources intends to replace the production of 80%
of SA’s oil and gas imports. Several national and international
companies have expressed interest in investing in SA drilling. Gas
condensate found in 2019 and 20202 near Mossel Bay presents
opportunities for the EWSETA to develop skills and capacity
within this sector.
*This article is an excerpt from both the merSETA and EWSETA sector skills plans.
20 21

SKILLS DEVELOPMENT
SKILLS DEVELOPMENT
CAREERS IN RENEWABLE ENERGY
THE WIND INDUSTRY INTERNSHIP PROGRAMME
Following the successful launch of Wind Industry Internship
Programme in January 2022, which placed 15 interns within SAWEA
member organisations for a year-long internship, the programme
expanded its efforts in 2023, providing over 20 interns with realworld
experience, some of whom have already transitioned into
permanent positions.
It is clear to see the value of this industry internship, as it helps
to bridge the gap between academic knowledge and tangible
application. The mentorship they receive through the Wind Industry
Internship Programme (WIIP) is unprecedented.
The WIIP continues to offer invaluable hands-on experience to
dedicated South African students aspiring to build careers in the
renewable energy sector. Its primary objective is to provide recent
graduates and those currently enrolled in graduate programmes with
a unique opportunity to gain practical work experience aligned with
their educational backgrounds and interests, while immersing them
in work related to sustainable energy.
GREEN
Recognising the immense potential of the renewable energy
sector in Namibia, the Renewable Energy Industry Association
of Namibia (REIAoN) has taken proactive steps to ensure
that the country’s workforce is ready for the impending green
energy boom.
REIAoN is partnering with GREEN Solar Academy to equip their
members with the knowledge and skills necessary to excel in the
solar industry. The GREEN Solar Academy courses in Namibia cover
the entire spectrum of solar technology, encompassing aspects such
as design, installation, maintenance and financing. This collaboration
will not only enhance the capabilities of Namibian installers but will
also contribute to the growth of the country’s green energy sector.
Namibia is a country with relatively low industrialisation. Green
hydrogen, says James Mnyupe, economic advisor to the president of
Namibia, could potentially allow the country to leapfrog the carbonheavy
stage of industrialisation and go straight to a low-carbon
industry, emerging as an international energy player able to establish
lucrative foreign markets.
Mnyupe explained in mid- 2023 that “the project is so large and so
significant, that it actually enables other industries to flourish… it’s a
22
REIAoN partners with
SOLAR ACADEMY
to train members
harbinger of prosperity for the rest of the country.”
A sophisticated capital market in Namibia allows for the construction
of various financial instruments that allow for the deployment of
blended financing; this helps lower the cost of capital required for
the construction of these projects and makes Namibia an attractive
place to consider building green hydrogen assets.
Call for professional PV installers
And when those green hydrogen assets are PV solar systems, there is
going to be a huge call for professionals to undertake the installation.
Filling the skills and knowledge gaps of service providers will be the
key to unlocking the full potential for investment in PV in Namibia,
and this partnership has opened the doors to world-class training and
empowering individuals with the expertise required to contribute to
a sustainable energy future.
For more information on the Renewable Energy Industry Association
of Namibia (REIAoN) and GREEN Solar Academy Namibia, please visit
the following links:
REIAoN Website
GREEN Solar Academy Namibia
“The highlights of this programme are numerous, from the opportunity
to work alongside industry experts to gain hands-on experience in the
renewable energy industry, and attending informative industry events
that are shaping the future of our planet. I have not only expanded
my knowledge but also built a strong professional network that will
last a lifetime,” says Lorata Boihang, an intern on the SAWEA team.
FOCUS AREAS
The wind industry encompasses a wide array of skills across its value
chain, with specific emphasis on the following broad skill areas:
• Engineering
• Natural Sciences and Mathematics
• Administration and Management
• Social Sciences/Humanities
• Information Technology
Funded primarily by the Energy and Water Sector Education Training
Authority (EWSETA), in partnership with SAWEA, WIIP plays a crucial
role in developing the renewable energy workforce of the future.
SAWEA foresees an increasing demand for professionals across
diverse sectors, such as manufacturing, logistics, finance, construction
and operations, as more renewable energy projects go live through
the REIPPP bid windows and private offtake initiatives. These roles
encompass a wide spectrum of functions, including professional and
business services and sales.
Key prerequisites for these positions include qualifications in
engineering, project management, project development as well as
proficiency in environmental authorisations, among other essential
skills. Already, several companies in the renewable energy sector have
initiated employment drives generating direct job opportunities and
contributing to the sector’s growth.
Kangnas Wind Farm.
2023 Management Development Programme participants.
RENEWABLE SECTOR LEADERSHIP PROGRAMME
The 2023 Management Development Programme for Women in
Renewable Energy’s inaugural intake of 20 women is driving sector
diversity to equip future leaders of South Africa’s energy landscape.
“The global energy transition is not only an opportunity to change
the energy sector but to also expand economic opportunities for
women, and this calls for streamlined development. Hence, the
renewable energy industry’s Gender Diversity Working Group’s key
objective is to pioneer the sustainable development of women, equip
them with the relevant skills, increase their confidence to become
effective employees, decision-makers and entrepreneurs and advance
to leadership positions in the sector,” explains Nomfundo Mbijekana,
chair of the SAWEA and SAPVIA Gender Diversity Working Group.
Research underpins this drive for increased diversity, in fact, around
32% of women are employed in the wind industry globally, with far
fewer being represented in STEM jobs, compared to administrative
positions, as reported by the International Renewable Energy
Agency, 2020.
Candidates have reported on the value of the content, opportunities
for both career and personal development and the importance of
peer collaboration that will no doubt benefit the advancement of the
industry, which is critical at this time in the country’s rapidly evolving
energy landscape.
In alignment with the requirements of SAWEA and SAPVIA, the
content-rich programme was tailored for the industry by Wits Business
School. It offers depth – a challenging and comprehensive experience
that will contribute to the growth of the sector. The aim of the course is
to equip women, who are currently in lower and middle management
in the sector with the skills necessary to accelerate their growth and
development into senior and executive positions (for technical and
non-technical positions).
“It is encouraging that feedback from participants suggests that the
content is necessary for their growth in the industry, which is in line
with the mandate of addressing gender diversity matters within the
renewable energy industry, to ensure sector gender diversity objectives
are met. This includes improving gender representation and reducing
barriers to entry and progression that adversely affect women. The
structure of the content is proving to encourage new ways of thinking
and strategising which the candidates may not have been exposed to
before,” says Morongoa Ramaboa, chief communications officer at SAWEA.
The Management Development Programme is fully endorsed and
co-funded by the EWSETA, as well as industry, showing commitment
to working together.
23

SKILLS DEVELOPMENT
ACCELERATING
the integration of
YOUTH
in the renewables sector
SA’s engineering skills need
INFRASTRUCTURE
Consistent infrastructure investment over
decades is the key to South Africa developing
and maintaining a solid foundation of in-country
engineering expertise.
SKILLS DEVELOPMENT
MOMENTUM
Initiated and hosted by South African Wind Energy Association
(SAWEA) and South African Photovoltaic Association (SAPVIA),
the inauguaral “Generation Renew” event recently took place.
Key conversations were driven by industry stakeholders covering
four imperatives, designed to provide valuable guidance for youth
looking to thrive in the renewable energy industry and contribute
to a sustainable future. These areas include mentorship, youth
taking initiative in entrepreneurship, finding one’s unique place
in the industry and conducting informed research to stay ahead.
Included on the panel were Sanele Zulu, MD, Green Youth Network;
Celiwe Mabaso, senior social performance manager, BTE Renewables;
De Wet Taljaard, technical specialist, SAPVIA; Nandipa Tshuma, energy
consultant, Sinani Energy; Mandilakhe Qavane, solar solutions
engineer, Changing Visions of Energy; and Mathage Mathunyane,
portfolio manager, Lombard Insurance.
Mabaso opened the conversation around challenges experienced
when emerging as a young professional into the renewable energy
space. She also addressed the barriers to entry, in particular, gender
disparities, and how youth are impacted by the lack of knowledge
regarding employment opportunities.
Celiwe Mabaso, Senior Social Performance Manager, BTE Renewables.
24
Recognising the importance of integrating SA’s youth
to achieve a sustainable renewable energy future.
BY BTE RENEWABLES
What are the opportunities within the area of ESG?
Celiwe Mabaso: ESG is vast and looks at various areas to ensure
the sustainability of the business. I focused on the “S” (social)
which is my area of expertise and the “E” (environmental), which
is an area of interest. As a social performance practitioner, one has
to have a knack for communications and the ability to develop
strategies for growth; both these skills require practice and
continuous reading and research skills.
I am a Bachelor of Commerce, marketing graduate and I have
found that my learning in economics and strategy development
has come in handy in my day-to-day job as it requires a lot of
data and trend analysis to determine the problems and develop
possible solutions in the form of programmes.
The “E” is an area that is closely linked to my work and one of the
main areas that BTE Renewables is known for through our Shut-
Down-on-Demand programme. Environmental management is a
key component for renewable energy projects, from development
to plant end of life.
Why it is important to give youth access to industry knowledge
at this stage in the country’s energy transition?
As we work towards a more sustainable and greener future, it is
important to develop the skills that are required to help meet
our decarbonisation targets. We have many students and soonto-be
students who are looking for more exciting opportunities
and I believe renewable energy is an important industry that will
continue to evolve and provide meaningful employment.
What do you believe is one of the biggest barriers to entry
for the youth now, and how is the industry assisting them in
overcoming this challenge?
A lack of understanding and availability of information about the
sector and the opportunities available is the biggest barrier. For
those seeking STEM-related jobs, limited access to quality STEM
learning in high school and sometimes even primary school leads
to them being excluded by non-qualification.
I believe renewable energy is an important
industry that will continue to evolve.
BY SRK CONSULTING
The role of consulting engineers is essential in maintaining
standards of excellence in project planning and execution,
according to SRK Consulting managing director Andrew
van Zyl. These professionals deliver highly specialised technical
and strategic services to various industries, providing input that
underpins project quality and ensures clients – whether in the
private or public sector – receive value for money.
UPWARD TRAJECTORY
“It, is really only a sustained and upward trajectory of broader
economic growth that will secure South Africa’s vital skills base in
the consulting engineering sector,” he says. “It is becoming an urgent
necessity that public sector spending on infrastructure rises and
stabilises; this will support the creation of a firmer foundation for
the country to maintain and further develop its expertise among
consulting engineers.” The quality of the consulting engineering
industry in any country relies on the steady growth of experience
across multiple disciplines over decades, not just years.
“Here in South Africa, we have been struggling to generate
and retain these skills,” Van Zyl notes. “Many specialisations are in
high demand internationally, so we are also competing with other
countries for these scarce skills.”
HIGHS AND LOWS
The mining sector is by its nature cyclical, and this creates regular
fluctuations in the demand for specialised consulting engineering
input. This often makes it challenging for companies to retain and
foster the expertise required by mines, especially during commodity
price slumps. It is therefore important that other sectors of the
economy are also vibrant to help temper the highs and lows of the
commodity cycle.
“Buoyant commodity prices in recent years have kept consulting
engineers very busy – with considerable scarcity in some disciplines,”
he says. “However, the construction and infrastructure sector remain
subdued, and this has depressed the demand for important skills
that the infrastructure sector will need in the long term.”
Returning to the vital role that consulting engineers play in both
the public and private sectors, he adds that these experienced
professionals provide independent advice on how to plan and
implement quality engineering solutions for a modern economy.
NURTURING BEST MINDS
“The disciplines for these solutions take decades to nurture, and
invariably demand some of the best students the educational
system can generate,” Van Zyl explains. “We need to be cultivating
these skills and interests among the country’s best students, which
means supporting students and mentoring graduates.”
He highlights that, in practice, this could only be successfully
accomplished in a growing economy that can make full use of this
expertise, and where careers can be built. “It should be remembered
that consulting engineers really drive the implementation of
global best practice in a range of sectors that must compete on
the international stage,” he says. “Only by keeping up with these
global benchmarks can South Africa’s economy remain competitive
and aligned with the expectations of investors and regulators.”
EVOLVING MANDATE
The mandate of consulting engineers is also evolving. Today, it is
necessary not only for engineering structures to be technically
sound, cost-effective and safe, they must also be environmentally
and socially responsible. These latter aspects of projects are now an
essential requirement for businesses to operate globally.
“This approach also ensures that economic development occurs
within a sustainable and responsible framework – including complying
with legal regulations and other compliance requirements. By
applying these factors, consulting engineers contribute to building
an inclusive and job-creating economy; at the same time, they help
ensure that business is transparent and predictable – which are
important considerations for investors.”
SRK has built its expertise in the ESG field, including issues like
climate change resilience, water stewardship and decarbonisation.
The consulting engineering field has also embraced the opportunities
offered by digital technologies, with SRK investing in its data
science capabilities to enhance the application of scientific and
engineering skills. Van Zyl notes that the consulting engineering
sector is resilient, and despite years of underspending in public
infrastructure, South Africa still retains a high level of skill and
capability that in many respects compared well globally.
Not only must engineering structures be technically sound, cost-effective
and safe, they must also be environmentally and socially responsible.
25

RESOURCE EFFICIENCY
Invest in
Industrial Efficiency
• Long term sustainability through resource savings
Assisting South African
• Economic growth
• Environmental compliance
• Contributes to social development
National Cleaner
Production Centre
South Africa
CHEESE AND DAIRY PLANTS
transition to better water and energy efficiency practices
THA 23-2023
Services include:
Green skills development
Industry and sector knowledge sharing
Company technical support
A national industrial
support programme that
partners with industry to
drive the transition towards
a green economy and
save money.
Contact us for a free assessment
www.ncpc.co.za
ncpc@csir.co.za
Funded by the dtic, hosted by the CSIR
The recently released report, Resource Efficiency for the
Cheese and Yoghurt Dairy Sector in South Africa, provides
insights and recommendations for companies engaged in
agricultural processing transition to better water and energy
efficiency practices.
The South African cheese and yoghurt dairy sector is a major water
user, utilising an estimated 8.7-million kilolitres of water each year.
The report identifies several energy and water opportunities for
cheese and dairy plants and outlines practical measures to improve
resource efficiency.
The report was developed as part of a resource efficiency
benchmarking study for the South African cheese and yoghurt
dairy sector that was conducted by the International Federation
Corporation (IFC), in partnership with the National Cleaner Production
Centre South Africa (NCPC-SA) and the Swiss State Secretariat for
Economic Affairs (SECO).
“The South African dairy sector has an opportunity through the
adoption of both efficiency and sustainable technologies to significantly
reduce its environmental impact, specifically pertaining to resource
utilisation and carbon footprint,” explains Lindani Ncwane, NCPC-SA
senior project manager.
The study benchmarked the water and energy usage of six dairies
across the country against local and international best practices. Two
large dairies were from the Eastern Cape and have a variety of products
including cheese, an additional two medium-sized cheese factories
were also from the same region. The final two, one medium-sized
with a variety of products including yoghurt and milk, and the other,
a small cheese factory, were from the Western Cape.
The report provides the cheese and yoghurt dairy industry with
practical examples that can be implemented to address water losses,
educate employees on water management, and ultimately, save
plants money.
“A dairy plant could reduce its water consumption by over 40% by
implementing a number of water efficiencies measures and a further
20% by implementing recycling and re-use measures,” reiterates
Ncwane. The potential savings if South African cheese and yoghurt
dairy plants would implement resource efficiency practices across
the board amount to:
• Water consumption could be reduced by up to 69%, resulting in
savings of six-million kilolitres nationally per annum with savings
of around R138-million and R200-million annually.
• Electrical energy consumption could be reduced by 25% to 50%,
resulting in savings of 200 000MWh to 400 000MWh per annum with
a cost saving of around R250-million to R500-million per annum.
• Fuel consumption could be reduced by up to 30% and a 50% reduction
in GHG emissions of fossil fuels (assuming a 50% uptake in a switch
in fuels) which would result in a R180-million saving per annum.
Ncwane encourages the South African cheese and yoghurt dairy
industry to download copies of the report so, “They will learn and be
able to identify opportunity areas for savings within their factories.”
Report copies can be downloaded from the NCPC-SA website
(www.ncpc.co.za).
The NCPC-SA is a national industry support programme managed
by the Council for Scientific and Industrial Research (CSIR) on behalf of
the Department of Trade, Industry and Competition (the dtic). The
NCPC-SA’s mandate is to support the transition of South African industrial
and selected commercial sectors to a low-carbon, green economy.
27

EQUIPMENT
LIFTING
Keep
your business
this holiday season with Masslift:
forklift rentals and expert technician support
The holiday season is upon us, and while certain industries
quieten down, other businesses experience their most
demanding times during the festive period. Whether dealing
with increased inventory, higher production demands or a
surge in customer orders, having a reliable forklift partner
can make all the difference.
Masslift Africa is your standout choice to ensure your
operations run seamlessly during the festive season and
beyond. Focusing strongly on rentals and the support
of our dedicated technicians, Masslift is your key to a successful
holiday season.
Forklift rentals: unmatched flexibility
Masslift Africa has built a reputation for offering a comprehensive
range of forklift rental options customised to cater to your specific
needs. What truly sets us apart is our commitment to being there
for you, even during the festive season, a service not offered by all
our competitors.
Our availability extends throughout the year, and in those exceptional
cases, when we close from December 22 to January 8, we partner with
a call centre to manage breakdowns over the festive period. They swiftly
dispatch standby technicians to assist you with your rental forklifts.
Short-term rentals
When your rental requirements are short and sweet, our short-term
rental options offer the ideal solution. You can rent our forklifts for
a day, a week or even an extended period, all at competitive rates.
Long-term rentals
For more extended solutions, Masslift’s long-term rental agreements
are the answer. These flexible options span one to 10 years, allowing
you to align your rental periods with your business needs. We
can even customise rental periods to match your unique operational
requirements.
With our extensive fleet of forklifts at your disposal, our team
is ready to assist you in selecting the perfect forklift to meet your
holiday season operational needs. We understand the importance of
keeping your operations efficient and productive. Our commitment
to excellent service is reflected in our guaranteed four-hour response
time during regular working hours. However, we always aim to exceed
that benchmark by addressing breakdowns even more swiftly.
Expert technicians: your 24/7 support
During the holiday season, operational demands are relentless.
Unexpected technical issues can disrupt your workflow at the most
inconvenient times. This is where Masslift’s expert technicians come
to the rescue. Our team of skilled technicians is available around
the clock, ensuring your equipment runs at peak performance and
minimising downtime.
At Masslift Africa, we specialise in repairing and maintaining all
types of forklifts, including diesel, electric and warehouse forklifts.
We have made service a priority and culture at Masslift Africa.
Your success is our priority
The holiday season can be a pivotal time for many businesses, and
we’re committed to ensuring that you have the support you need,
precisely when you need it. Masslift Africa stands by your side,
assisting during the busiest time of the year. If you’re navigating
a surge in demand, managing fluctuating workloads or dealing
with seasonal variations in your equipment requirements, Masslift’s
holiday support is your dependable partner. We offer flexible rental
terms and round-the-clock technical assistance, allowing you to
adapt to changing conditions and seize opportunities, making us
the standout choice for your business.
Make the right choice for your business
As you prepare for the holiday season, make the choice that will
empower your business to navigate and thrive during this pivotal
time of year. Masslift Africa is more than just a service provider;
we’re your trusted partner offering forklift rentals specifically
designed to put your business at the forefront, especially during the
holiday season – the busiest and most challenging time of the year
for many enterprises.
Partnering with Masslift Africa is a strategic decision, resulting
in seamless and profitable operations. We’re not just here to meet
your needs; we’re here to exceed your expectations. Whether it’s
short-term rentals for quick demand surges or long-term agreements
that provide stability, we have the solutions you need to thrive
during the holiday season. Our 24/7 technician support ensures your
equipment runs at peak performance, minimising downtime, and
allowing your business to remain in constant motion.
Contact us today to discuss how we can tailor our services precisely
to your unique holiday season needs and see the difference Masslift
Africa can make for your business.
29

MOBILITY
MOBILITY
One of the key issues Tesla had initially, was not with the core vehicle
technology but the scaling up and quality control of manufacturing
cars in large numbers, something that traditional automakers tend
to do very well. This will be a big part of why these tech companies
have often partnered with traditional automakers or other large
manufacturers with experience. This sort of approach could see
another key shift in how the automotive market is structured, with
traditional OEMs manufacturing the vehicle and tech companies
providing the software and integration. The benefit for the end user
would be a well-built vehicle that integrates seamlessly with all their
other electronic devices.
IDTechEx
THE FUTURE OF EVs
Evolution of the automotive industry and
electrification beyond cars
2023 has proven another momentous year for the electric vehicle market. Growth in 2023 was
hampered by the poor performance of plug-in hybrids in Europe. However, even with less
aggressive growth than in previous years, many will agree that EVs are the future, especially
for the passenger car market. So, what else can be learned about the future of electrification?
BY IDTechEx
While the electric vehicle (EV) has become an everyday term
that the public is now aware of, there are still certainly
large technological and market trends occurring in the
automotive market. Beyond this, many other vehicle segments are
seeing electrification take off; these include various vehicles on the
road (vans, trucks, buses, two-wheelers, three-wheelers, microcars,
etc), but also off-road segments like construction vehicles and trains.
It isn’t just vehicles on land either, with marine sectors and aerial
vehicles like air taxis gaining increased interest and market traction.
Each vehicle category is at a different stage of electrification and has
its own technology and market demands depending on technical
feasibility, consumer acceptance, government policy and several
other factors.
Electric vehicle sales and battery demand to 2026.
IDTechEx predicts a moderate two-fold increase in the yearly sales
of EVs across all the segments mentioned above by 2034; this is partly
due to the sales of electric two- and three-wheelers already stagnating
in some major markets. However, the battery demand increased by
over 7.7 times in the same period, driven by the car market, but with
the other segments making a significant contribution.
Technology companies becoming automotive suppliers
Tesla is undoubtedly a leader in the EV space, and it has changed the
way that many think about the car as a product. The sales process is
more akin to purchasing any other consumer electronics product than
what is typically thought of when buying a car. In addition to this, the
ownership is taking that form too; many EVs now offer over-the-air
updates to keep a car’s systems up to date, whereas, for example,
many traditional automakers would have had to do this during a
service and have been known to require hefty fees to update satellite
navigation maps, something that is becoming standard to update for
free remotely. Several vehicles now come with features that can be
purchased or subscribed to later.
With this transition to cars looking more like a mobile phone than
a traditional car, major technology companies have taken an interest
in the car market and, rather than supplying small components, are
looking at providing the whole car.
Huawei was an early example of this approach and started selling its
SERES SF5 in China in 2021. After many years of exhibiting automotiverelated
technology, Sony has entered a partnership with Honda to
provide vehicles with production scheduled for 2026. Other examples
that have announced projects include Xiaomi, Baidu (a joint venture
with Geely), Foxconn, and others. Apple scaled back a fully autonomous
car project, but rumours continue on an electric car project.
EVCIPA (China), EAFO (Europe), AFDC (US). Compiled by IDTechEx.
Charging infrastructure growth required to meet EV demand
The global EV charging infrastructure market is growing steadily.
There were 2.7-million public charging points worldwide in 2022.
Nearly 960k chargers were installed globally in that same year. It is
estimated that 222-million chargers will be needed by 2034 to support
the growing global EV fleet and that the cumulative global investment
in global charging infrastructure will exceed US$123-billion by 2034
(hardware cost alone).
There is undoubtedly a huge push to build global public DC fast
charging networks. China is leading the race with 1.797-million total
public chargers deployed, taking ~70% of the global market share.
The US government is providing more than $5-billion in funding and
incentives to build a coast-to-coast fast charging network under The
National Electric Vehicle Infrastructure (NEVI) Formula Program. The
Alternative Fuels Infrastructure Regulation (AFIR) in the EU is similarly
driving the growth of public charger installations by mandating a
station every 60km along highways. DC fast chargers are forecasted
to exhibit a higher growth rate in the coming decade, although AC
chargers will dominate by unit volume in terms of deployment.
Global charging infrastructure installations. Data shown as
of April 2023.
The global EV charging network remains fragmented, with many
charge point operators battling for market share across regions. Leading
automakers recently adopted Tesla’s North American Charging Standard
(NACS) charging connector for their US models. Tesla operates the
largest global public DC charging network, and in North America NACS
outnumbers combined charging standard (CCS) two to one, which
explains the switch to Tesla’s standard. Furthermore, the network is
more reliable and has 20% to 70% lower deployment costs than their
competitors due to in-house design and manufacturing of components.
From a technical standpoint, Tesla’s connector is lightweight, supports
both AC and DC through shared pins, and can support higher amperage
due to immersion-cooled cables. Cars and EV supply equipment
supporting CCS in the US will make up less than 50% market share by
the end of the decade, although it will remain the dominant standard
across the EU and UK regions.
*Authors: Dr James Edmondson, principal technology analyst, and Shazan Siddiqi, senior technology analyst, IDTechEx.
30
31

MOBILITY
MOBILITY
ENABLING
E-MICROMOBILITY
expansion in African cities
The merits of low-cost tactical cycling lanes
Africa will account for 86% of urban population growth in the next 40 years. This unprecedented
pace of urbanisation brings unique challenges and opportunities for micromobility solutions
best suited to bolstering African cities’ expansion efforts.
A white paper for the Rosebank e-Micromobility Pilot Project by CityConsolidator Africa and Mobility Centre for Africa | [September 2023]*
Already, congestion within South African cities is becoming
more pronounced. Cape Town and Johannesburg are at the
top of the list with motor vehicle drivers in both cities losing
60 hours to 80 hours in traffic every year. It is imperative for us
to effectively address the pressures placed on our environment,
economy and society at large as a result. E-micromobility,
encompassing electric bicycles and scooters, has garnered notable
attention for its potential to provide cost-effective, efficient
and eco-friendly transportation choices suitable for formal and
informal economy participants residing within urban landscapes.
To fully harness the advantages offered by e-micromobility, while
ensuring widespread adoption across different demographics of
society, it is essential to prioritise infrastructure development
aligned with such goals.
Tactical cycling lanes emerge as a concept (figures 1 and 2). There
are several benefits of deploying affordable yet effective tactical
cycling lanes tailored towards supporting economic growth efforts
and scaling up prospects pertaining to e-micromobility within African
cities. Effective tactical cycling lanes:
1. Increase safety by preventing road fatalities.
2. Lower transport costs for people by reducing car dependence
with a safe, affordable alternative to driving – a key benefit for
youthful African countries with high unemployment rates.
3. Save cities money through fewer healthcare costs from traffic
accidents; less congestion and unproductive time spent in
traffic; and a decrease in air pollution and emissions that
contribute to climate change.
4. Create jobs and economic opportunities in related industries like
waste recycling, manufacturing, tourism, shared micromobility,
goods delivery and street vending, etc.
5. Facilitate more frugal futures by enabling less car ownership
or the avoidance of ownership altogether.
Axil Maas, 2023 Axil Maas, 2023
Axil Maas, 2023
Figure 2. Future depiction of Kommetjie Road for Safe Passage 02 between Masiphumelele and Fish Hoek to make it safer for both cyclists and pedestrians
by extending the pavement and using tactical cycling lanes.
Figure 3. Current depiction of a non-motorised transport (NMT) route from Langa to Athlone, part of Safe Passage 01, Langa to the CBD where it is dirty,
unsafe and dilapidated with few activations.
Axil Maas, 2023
Figure 4. Future depiction of an NMT route from Langa to Athlone, part of Safe Passage 01, Langa to the CBD, where there is safety through lighting,
maintenance and activations like a soccer field.
Figure 1. Current depiction of Kommetjie Road for Safe Passage between Masiphumelele and Fish Hoek that is unsafe for both cyclists and pedestrians.
32
33

ITDP
MOBILITY
LAST-MILE DELIVERIES
Last-mile deliveries occupy a crucial role in urban logistics by facilitating
the transportation of goods from central distribution centres to their
final destinations. However, relying solely on motorised vehicles is
costly, limits accessibility and contributes to traffic congestion and
greenhouse gas emissions.
Tactical cycling lanes create safe and efficient last-mile delivery
options by separating micromobility devices (including NMT) from
larger vehicles travelling at high speeds and pedestrians walking
slowly (figure 4). Investing in these lanes brings about reduced
travel times for last-mile deliveries using e-bikes as it facilitates
more deliveries to be accomplished almost matching, and in certain
circumstances surpassing, those delivered by motorised vehicles.
E-bikes navigate congested areas better than larger vehicles.
Currently, in Cape Town and Johannesburg, last-mile deliveries
are made mostly by motorised vehicles with an average speed of
20km per hour. This speed is the same as most bicycles in cities,
while e-bicycles are on average limited to 25km per hour in
cities. By implementing dedicated lanes that are connected and
protected at intersections, last-mile delivery companies like Green
Riders in Cape Town can, along with other NMT users, overcome
traffic congestion and bolster decarbonisation in the land-use and
transportation sectors.
The city of Chennai, India, spent the last seven years implementing
dedicated bicycle lanes which have successfully benefited the
local last-mile delivery economy. It started with small policies and
tactical cycling lanes in 2014 and remained dedicated to this effort,
even by increasing its tactical lanes investment in 2020. Chennai
served as an example for other cities, such as Pune, which later
planned to transform 300km of streets into new bicycle lanes. Since
2020, over 100 cities in India have developed their own cycling
programme following the Cycles4Change Challenge set by the
national government.
Figure 5. Before and after tactical lanes in Chennai, India.
Furthermore, tactical cycling lanes support endeavours toward
sustainability by promoting eco-friendly practices. E-micromobility
devices emit fewer emissions than traditional motorised vehicles,
aligning with sustainability goals and reducing the carbon footprint
of a city while mitigating the consequences of climate change.
Operation costs are reduced, particularly for businesses engaged
in last-mile delivery, which is one of the main drivers for African cities
adopting the lane infrastructure. E-micromobility vehicles are more
economical to purchase and maintain compared to motorised vehicles.
They require less fuel, entail lower maintenance expenses and do not
subject companies to costs related to parking or congestion charges.
Such cost advantages enable delivery companies, particularly SMEs,
to operate more competitively by improving profit margins while
creating youth-focused, green and local jobs.
AFFORDABILITY AND EFFECTIVENESS
On average, building a kilometre of urban highway costs the same
as building 150km of bicycle paths and 10 000km of tactical cycling
lanes. Cape Town, which has an insignificant NMT budget and
outdated approach to cycling facilities, is ripe for innovation in
mobility planning. Unlike large-scale infrastructure projects that
demand extensive financial investments and lengthy implementation
periods, tactical cycling lanes can be quickly executed at a fraction of
the cost. The affordability stems from their adaptable nature, created
using temporary materials like paint, bollards, kerbs and signage.
The cost-effective approach allows cities to pilot and test cycling
infrastructure before committing to permanent installations. By
observing user feedback and usage patterns, adjustments can be
made to ensure optimal efficiency. Tactical cycling lanes can also
be implemented incrementally starting with key corridors before
expanding as demand increases.
That is exactly how South America’s Bogotá, Columbia, could
expand its bicycle network of over 80km to the already existing
550km in just a few hours. They used temporary materials that
they could easily move, allowing them to test other locations.
They tried three different locations within three days. This phased
and agile approach reduces the initial investment required while
immediately benefiting e-micromobility users. It enables cities
to allocate resources efficiently by focusing on areas with the
highest demand and significant impact on last-mile deliveries and
movement of people.
The effectiveness of tactical cycling infrastructure lies in its ability
to create a connected network of dedicated lanes for e-micromobility.
Strategic planning ensures seamless connectivity between crucial
destinations such as residential areas, commercial districts and
transportation hubs. The comprehensive network encourages
the adoption of e-micromobility by providing safe and efficient
routes throughout journeys. In addition, these lanes maximise
their effectiveness by repurposing underutilised road space or
reallocating lanes from motorised vehicles. This optimisation
minimises conflicts between different road users without requiring
extensive construction or disrupting traffic flow.
The city of Jakarta, Indonesia, is a great example. During the
pandemic, temporary bicycle lanes were implemented and modified
to be the most effectively used. The result was an increase of
50% to 500% of cyclists. The city is now focused on using shared
e-micromobility for first/last mile solutions to attract more people.
In this example, the scalability of tactical cycling infrastructure
is worth noting. As the demand for e-micromobility increases
alongside last-mile deliveries, cities can expand the network of
cycling lanes accordingly.
Protected intersections are usually forgotten in cycling lane design.
Despite the radical increase in separated cycling lanes in the last
decade globally, unprotected cycling intersections are enough to
discourage cycling. Intersections that include slip lanes are widespread
across major African cities with wide-turning radii for cars creating
very unsafe spaces for cyclists and pedestrians alike.
In the City of Melbourne, research indicates a stark contrast in
cyclist confidence levels based on intersection protection. Only
16% of riders report feeling confident cycling through unprotected
intersections, compared to a significant 73% who feel secure with
protected intersections. This disparity is more evident when comparing
confidence levels associated with protected lanes versus merely
painted lanes: 22% versus the low 16% for intersections, respectively.
Rather than new infrastructure projects that can be expensive,
time-consuming and potentially divisive, tactical urbanism
deploys quick, often temporary, solutions to test and refine urban
interventions. In the context of intersection redesign, tactical cycling
lanes offer flexible, incremental ways to redesign an intersection
in several forms.
Figure 6. Example of a tactical intersection to protect both cyclists
and pedestrians.
The scalability of tactical cycling lanes extends beyond physicality
by incorporating smart technologies and data-driven solutions to
enhance user experience and optimise operational efficiency. By
utilising real-time data on e-micromobility usage patterns, cities
can strategically place charging stations, identify areas with high
demand and plan future infrastructure developments accordingly.
PUBLIC-PRIVATE PARTNERSHIPS
Public-private partnerships present a new opportunity to build muchneeded
infrastructure for the economy. It is clear from research that
safe and dedicated cycling lanes have a catalytic role to play but the
question then becomes how do we build this tactical intervention
in the background of a collapsing state?
Tactical cycling lanes that are cheaper, experimental and effective
allow for the private sector through the Safe Passage Programme
to make big changes to South African roads. An example of such is
*Written by Roland Postma and Brice de Meester
MOBILITY
a partnership between the Suppliers Development Initiative (SDI)
Micro-Enterprise Trust and Young Urbanists NPC, which seeks to
empower the micro-economy through fleet partners like Green
Riders by creating safe infrastructure for them to access markets.
The Safe Passage Programme, with its focus on connecting informal
and formal areas, is in the process of putting down more than 800
tactical bollards in Cape Town on existing cycling lanes to make it
safer for green riders and the public.
The City of Cape Town’s Department of Urban Mobility approved
the assessment in early 2023 and construction is set to take place
during the latter parts of 2023 with the funds being secured through
the SDI Micro-Enterprise Trust. This is only phase 01 of the first Safe
Passage that will look to complete a safe route between Langa and
the CBD of Cape Town (Figures 2 and 4 refer).
Other planned Safe Passages include Masiphumelele to Fish Hoek,
Cape Town and Mamelodi to Pretoria East with CityConsolidator
Africa. Masiphumelele to Fish Hoek is another big opportunity where
more than 20% of the residents of the township are cyclists, while
the primary mode is taxis, followed by walking.
Mamelodi to Pretoria East also showcases a considerable healthy
portion of the population using cycling to get to work in both areas,
research has shown cyclists from these areas cite unsafe infrastructure
followed by crime as being the biggest barriers in their commute.
Both areas can be used for fleet partners like Green Riders and other
companies to train and hire local youth when the implementation
of safe cycling lanes commences.
African cities confront unique challenges driven by rapid
urbanisation. This necessitates proactive strategies to address the
associated strains on society and the economy. E-micromobility
presents a low-hanging fruit solution to Africa’s transportation
challenges fully unlocking its potential hinges on aligning
infrastructure development with these goals. Tactical cycling
lanes come to the fore as pivotal catalysts for this expansion.
By fostering the growth of tactical cycling infrastructure,
policymakers, transport engineers and urban planners can create
an interconnected network of efficient routes. This urbanism
approach combined with resources sourced through public-private
partnerships reduces the financial burden and enables cities to
respond swiftly to evolving needs. By investing in infrastructure
and harnessing the potential of e-micromobility, African cities
can pave the way toward an enduring, and all-encompassing
urban transportation system.
E-micromobility presents a lowhanging
fruit solution to Africa’s
urban transportation challenges.
REFERENCES
Germán A. Carvajal, Olga L. Sarmiento, Andrés L. Medaglia, Sergio Cabrales, Daniel A. Rodríguez, D. Alex Quistberg, Segundo López. 2020. Bicycle safety in Bogotá: A seven-year analysis of bicyclists’ collisions
and fatalities. Accident Analysis & Prevention. 144: 1 – 12.
Pishue, B. and Brainard, A. 2023. 2023 INRIX “Return to Office” Report.
Rosas-Satizábal, D. and Rodriguez-Valencia, A. 2019. Factors and policies explaining the emergence of the bicycle commuter in Bogotá. Case Studies on Transport Policy. 7 (1): 138-149.
Schleinitz, K., Petzoldt, T., Franke-Bartholdt, L., Krems, J.F., & Gehlert, T. 2017. The German Naturalistic Cycling Study – Comparing cycling speed of riders of different e-bikes and conventional bicycles. Safety
Science. 92: 290 - 297.
https://africa.itdp.org/actionable-steps-towards-reclaiming-streets-in-africa/
http://e-micromobility.africa/our-approach/
https://www.fiafoundation.org/media/xmwls4t2/cc-protected-oct201022.pdf
https://nacto.org/publication/dont-give-up-at-the-intersection/
https://repository.up.ac.za/bitstream/handle/2263/14739/Bechstien_Cycling%282010%29.pdf?sequence=1
https://www.bikeutah.org/tactical-urbanism
https://www.itdp.org/publication/economics-of-cycling/
https://www.esi-africa.com/news/a-need-for-a-just-energy-transition-that-uses-e-mobility/
https://www.iol.co.za/news/environment/pics-empowering-youth-and-transforming-last-mile-delivery-in-south-africa-39c9413a-0823-41ed-8740-543843d3d107
https://www.itdp.in/some-paint-few-brushes-kids-young-old-sringeri-mutt-roads-tale-of-transformation/
https://www.itdp.org/wp-content/uploads/2021/09/CyclingisBoomingST33092021.pdf
https://www.news24.com/citypress/business/npc-government-incapable-of-implementing-ndp-20230917
https://www.weforum.org/agenda/2020/08/a-vision-for-post-pandemic-mobility-in-african-cities/
34 35

STORAGE
STORAGE
CEA, BofA, Benchmark Mineral; Kearney analysis
The automotive industry’s dominance in lithium-ion
battery demand strains supply and impacts prices.
OEM reactions (vehicle withdrawals) to material
shortages can positively impact supply and prices.
The recovery of lithium prices eases the situation,
reducing short-term risks, but prices remain high.
Uncertain price development and forecaste increases
from 2025 onward create long-term price risk.
Figure 1. Lithium’s cost influences battery prices significantly, and although prices have partially recovered, future trends remain uncertain. 1Lithium
carbonate equivalent: battery grade lithium. 2Lithium-iron-phosphate.
FULL CHARGE
How energy companies can power up against supply chain
risks in battery energy storage systems.
It’s a gut response of our modern era: the assurance we feel from an icon lit with green bars,
telling us a battery is fully charged. Wouldn’t it be great if industries dependent on battery
energy storage systems saw that icon light up regularly to indicate a steady, reliable supply of
lithium and other essential raw materials?
BY KEARNEY CONSULTING*
Lithium-ion batteries are currently the dominant storage
technology for the automotive industry, utilities and renewables
developers. Yet key ingredients pose risks to the battery storage
supply chain, the most daunting of which influence cost, supply
and ESG matters.
Global disruptors ranging from volatile geopolitics and inflation to
technological acceleration are reshaping supply, causing shortages
36
The beauty of a
that have become fundamental business issues. For industries in
the renewable energy sector, risks to the battery energy storage systems
(BESS) supply chain and its need for raw materials can turn from orange
to red quickly, jeopardising considerable value. But there are ways to
proactively reduce the risks to ensure a secure and sustainable battery
supply. It’s a matter of understanding the risks and then adopting
strategies for mitigating them in the short and longer term.
Article courtesy of Kearney Consulting
Lithium-ion batteries have become the technology of choice for battery
energy storage due to their high energy density, long cycle life, fast
charging and widespread availability. These advantages have created
a huge demand for them. The automotive industry, which accounts
for 80% of demand, and electric vehicle makers are the hungriest,
followed by renewable-focused energy companies and the needs
of vital energy infrastructure and the military.
The strain has impacted prices, supply and issues surrounding ESG
for materials including lithium, graphite, nickel and cobalt. Kearney’s
research indicates that the price of lithium has risen 500% from 2020
to 2023. As global demand for the material grows, the compound
annual growth rate (CAGR) for lithium-ion batteries could go up by
33% in the next three years, and by 2030, lithium demand could see
another 400% increase.
We believe a comprehensive approach to the entire battery
supply chain is needed to address the rising risks. Among concerns
voiced by renewable-energy developers is their dependency on China,
which accounts for 75% of battery manufacturing, an oligopolistic
sellers’ market, the auto industry’s dominance over demand, raw
materials shortages, further price volatility and failure to comply with
ESG expectations.
The price for lithium has risen
500% from 2020 to 2023.
Achieving supply
chain control doesn’t
happen overnight.
THE THREE LEADING RISKS
Cost risk. Lithium prices have fluctuated a great deal recently, having
rocketed upward by a factor of 15 from 2021 to 2022 (figure 1). They
have recovered, but we see them remaining at a high level, creating
long-term price risk. This is significant because lithium comprises
approximately 40% of battery cell costs, and passing on the rising
expense is difficult, especially for utilities.
Supply risk. The supply chains for raw materials are complex, long
and span multiple continents, often reaching across South America,
China and Europe. China, for example, controls the refinement of most
of the world’s raw materials for batteries (including 70% of the needed
graphite). Its dominance comes in part from the cost advantages the
country enjoys, along with vertical integration. However, the risk here
is political. If global demand outweighs supply, the country could
prioritise Chinese companies, with political tensions leading to an
embargo for battery manufacturers beyond its borders.
Chronic lithium supply shortages are already emerging. If the
desire for EVs continues to rise, demand could overwhelm mining
companies’ ability to extract enough lithium to keep pace. Conversely,
inflation and slowing demand for new EVs could ease the need
for lithium. However, we believe the forecasted supply shortage
and China’s control over the supply chain will pose significant
risks (figure 2).
37

STORAGE
STORAGE
Inter Actanalysis, CEA, BofA, Benchmark Mineral; Kearney analysis
Kearney analysis
Figure 3. Industry leaders have defined risk mitigation strategies that address price, volume and ESG risks.
Figure 2. The forecasted lithium supply shortages and China’s control over the supply chain, including dominance in refining, pose significant supply
risks. 1LCE is lithium carbonate equivalent. 2Possible quantities that can be recovered in the future.
What’s more, supply is not easy to influence. Countries and mining
companies can increase production capacity and open new mines,
but this is a slow process, taking years to achieve. Even so, there are
countries and companies looking to build supply chains beyond China,
but it will continue to dominate for the near future.
ESG risk. There is a real risk to reputation related to societal, investor
and governmental expectations for adherence to ESG values and
requirements. This risk extends throughout the BESS value chain
and should be closely monitored and addressed. Lithium mining
and refinement pose a significant environmental impact. Extraction
takes two forms. Brine extraction in lithium mining in South America and
China consumes large amounts of water, which can lead to shortages.
Spodumene extraction done in Australia and China leads to high
CO 2 emissions because it is energy-intensive and uses fossil fuels to
generate high-temperature reactions, contributing to climate change.
Socially, the limited options for audits of labour conditions can have
a serious humanitarian impact. Child and forced labour, for example,
is present in the supply chain for lithium-ion batteries, with recent
reports of such abuse coming out of China affecting Uyghurs in the
Xinjiang region. Labour abuses seem to occur less so for the LFP cells
(lithium-iron-phosphate batteries) commonly used in BESSs, but for
other cell chemistries, such as NMCs (the nickel-manganese-cobalt
batteries used in EVs), labour abuses are a major issue, especially in
the cobalt value chain.
In Australia, indigenous peoples are pushing the government to
recognise violations of their ancestral rights and ability to control
their lands when companies come in to mine for lithium.
Finally, dependence on China has multiple implications for
governance impact. China’s centralised political system could see further
instability that affects the supply chain. So, too, could geopolitical
tensions between China and other nations such as Japan, Taiwan or
the US. Trade tensions could extend their influence, including the
US-China trade war, which has resulted in tariffs on Chinese battery
imports, increasing prices and potentially disrupting supply.
SMART STRATEGIES
Powering up the battery storage supply chain takes a combination
of short- and longer-term strategies that reduce exposure to risks.
Kearney has developed three overarching strategic approaches and
targeted measures for each to mitigate the risks and build stronger
BESS supply chains (figure 3). We focus on areas of the greatest value,
starting with quick wins and progressing to increasingly proactive
steps: 1) demanding and contracting; 2) measuring and auditing;
and 3) strategic actions and counteractions to influence risk.
China’s centralised political system
could see further instability that
affects the supply chain.
DEMANDING AND CONTRACTING
These are the fastest ways to get that battery icon to green. For this
stage, Kearney has developed best practice contractual requirements
such as supply chain protocols and a chain of custody that align with
the latest market standards.
• Standard terms and conditions. Require tier-1 suppliers to sign
off on consistent contractual terms.
• Supply transparency and penalties. We use insights into the supplier
structures of top industry players to achieve tier-1 transparency. The
security of raw material flow is paramount, so we talk to suppliers’
suppliers, all the way back to mining. If tier-1 suppliers fail to hit
their contractual marks, strict penalties kick in. If their raw material
prices rise above agreed-to levels, they absorb the difference.
• Updated pricing mechanism. We look at commercial terms and
pricing mechanisms to make sure they’re in line with market rates.
We can implement standardised pricing agreements that follow
clear rules and automated update cycles.
• ESG contracting. If companies do not already have ESG terms in
their contracts, we make sure they add them. These clauses should
address issues including guarantees that suppliers’ value chains
do not involve forced or child labour.
MEASURING AND AUDITING
We achieve further focus by evaluating risks along the supply chain,
along with ways to reduce them.
• ESG auditing. The ESG audit covers the value chain, including
visits to mines and refineries.
STRATEGIC ACTIONS
This is the stage when companies can influence industry risks and
outcomes proactively. Identify those opportunities through supplierrelated
measures, such as development programmes, ESG audits and
contractual penalties. Look for ways to integrate vertically.
• Demand bundling and supply chain diversification. Companies
increase buying power by bundling suppliers and contracts or even
building buying consortia. They diversify sources by buying from
a variety of suppliers, especially outside China. Energy players, for
example, are aiming to reduce their reliance on Chinese batteries
and augment supply by going to alternate sources. Some plan to
manufacture their energy storage products as well.
• Hedging with derivatives. Companies can address price changes
and secure pricing for lithium or other materials by establishing
in-house hedging.
• Supply chain integration. A company actively integrates into the
value chain, through investments in mines or refineries via equity
or long-term financing. A company secures the right to needed
lithium through a long-term contract that stipulates how lithium is
refined, delivered or used in manufacturing batteries, for example.
First market participants in the automotive industry have achieved a
high degree of vertical integration, from mining and refining lithium
at sites they own outright or through joint ventures to producing
EVs and batteries in factories they own around the world. Among
energy companies, some are using offtake agreements to partner
with suppliers to acquire battery-grade materials for manufacturing
cells, in one case co-locating operations.
THE FUTURE
Achieving supply chain control doesn’t happen overnight, of course.
Not all companies seek thorough vertical integration, but even less
extensive supply chain protection calls for a thoughtful approach.
We suggest companies use a three-step process for profiling and
mitigating the risks affecting BESS supply chains:
1. Develop a detailed risk profile. Achieve a thorough understanding
of internal battery demand, including spend and specifications for
battery types. Map the value chain and stages and look closely at
suppliers and specific risks.
2. Define fit-for-purpose actions for risk mitigation. Outline
procurement mitigation strategies, develop material-specific
risk-reduction approaches and look for ways to reduce risk
beyond procurement.
3. Decide on risk-reduction actions and develop a plan. Prioritise
risk approaches at a high level, draw up business cases and create
a risk mitigation plan.
In our experience, profiling risks and defining actions is a fiveto
six-week process. Overall, steps one through three can take 10 to
12 weeks. By the time a company completes them, it should have
an excellent idea of how far to take execution beyond that period.
In that step, the plan is activated, with monitoring done regularly
to ascertain effectiveness.
The process requires commitment, but the payoffs are many.
Not only can a company reduce its supply chain risks involving lithium
and other raw materials, but it can also enhance the chain’s resilience,
achieve cost savings, improve ESG performance and satisfy stakeholders
– all of which leads to that much-desired green light.
*Authors: Dominik Leisinger, Hanjo Arms, partners, Oskar Schmidt, principal, David Buchmayr, consultant.
38 39

ENERGY
Virtual
WHEELING
Eskom has run a successful pilot of virtual wheeling, which
will enable companies with multiple offtake sites to connect
to generators using Eskom or municipal grids.
40
101BY WEBBER WENTZEL*
WHY
Electricity wheeling mechanisms play a key role in facilitating
the optimal integration of renewable energy resources into the
grid. Wheeling across high and medium-voltage lines has been
the focus of Eskom’s wheeling strategies to date, but the proposed
introduction of virtual wheeling, a new product offering by Eskom,
opens opportunities for companies with multiple smaller and lowvoltage
loads scattered across various geographies in South Africa
to participate in the market.
What is wheeling?
Wheeling is the delivery of energy from a generator of renewable
energy to an end-user (the off-taker or buyer) situated in another area.
This is achieved using Eskom’s existing transmission or distribution
networks, or existing municipal distribution networks.
In South Africa, wheeling arrangements have traditionally been
concluded between larger generators and buyers of electricity
connected at medium and high voltages (higher than 1kV). Under
this approach, there is a direct relationship between the generator
and the buyer. Eskom charges the generator and the buyer for the
use of the Eskom grid and credits the buyer’s bill for the electricity
delivered to the buyer but not supplied by Eskom at the end of
each month.
The traditional wheeling methodology works for larger buyers.
However, it needs to be adapted for two primary reasons. The first is
that the traditional wheeling mechanism is designed to service large
consumers of electricity, typically one generator selling to one or
two buyers. It does not adequately cater for several low to mediumvoltage
consumers. The second reason is that traditional wheeling
has been inaccessible to buyers in most municipal distribution
networks. Many municipalities lack the necessary wheeling protocols,
including use-of-system tariffs, and do not have the infrastructure to
accommodate the necessary billing, metering and data processing
systems for wheeling transactions using both Eskom and municipal
distribution networks to a buyer supplied by the municipality.
To overcome these complexities, in July 2023 Eskom announced
a new product, the virtual wheeling platform.
How will virtual wheeling work?
The virtual wheeling platform connects buyers that have multiple
offtake sites to generators via Eskom or municipal grids. This requires
an automated process to collect, aggregate and report time-of-use
data for energy generated and consumed by generators and buyers in
order to provide a refund to the buyer for wheeled energy delivered
to all of its offtake sites on a consolidated basis.
We have identified three key differences between the traditional
wheeling mechanism currently being implemented and the virtual
wheeling platform introduced by Eskom:
1. Instead of processing a credit to an account for each offtake site
of a buyer for the electricity sold by a private generator, a buyer
must settle its Eskom bill in full and at the end of the month a
single refund will be processed to one account of the buyer.
A consolidation exercise will be undertaken through Eskom’s
virtual wheeling platform to measure the energy produced by
generators and used by buyers. The platform will enable Eskom
to aggregate time-of-use energy generation and consumption
data across multiple distributed offtaker sites for the purpose of
calculating the monthly refund payable to the buyer. In summary,
it will facilitate access to wheeling for low to medium energy
buyers and offtakers with a distributed consumption base.
2. The virtual wheeling platform will be able to aggregate energy
generation and consumption data into Eskom time-of-use periods
(standard, peak and off-peak) in hourly intervals. Traditionally,
energy generation and consumption data has been aggregated
at monthly intervals. Eskom has stated that it is developing an
API interface to generate hourly data which will be used for
calculating refunds.
3. According to Eskom, to participate in virtual wheeling, buyers
will be required to conclude a Virtual Wheeling Agreement and a
back-to-back Virtual Wheeling Platform Agreement with a virtual
wheeling platform vendor, who is appointed by the buyer and
certified by Eskom to inter-operate with Eskom’s systems. This
differs from traditional wheeling, which requires an amendment
to the buyer’s Electricity Supply Agreement and the generator’s
Connection and Use of System Agreement to identify the generator
and the buyer, and to provide for the tariff offset. Under virtual
wheeling, these documents remain in place and are referenced
in the Virtual Wheeling Agreements.
What requirements will the buyer be required to satisfy?
In addition to the Virtual Wheeling Agreements mentioned above,
buyers will be required to establish meter access for Eskom and the
virtual wheeling platform with generators under their existing power
purchase agreements. Meters will need to be linked to the virtual
wheeling platform via Eskom’s meter vendor cloud. The buyer will
be expected to run pre-production verification testing and produce
a report for Eskom’s approval. The report will be required to show
that: (i) each consumption site has a live meter reading over a defined
test period; and (ii) the existing business rules are aligned with
the contracted business rules agreed with Eskom. Once approved,
a production account will be activated and the virtual wheeling
platform will automatically begin producing scheduled monthly
reconciliation reports. These reports will decide the refund to be
paid to the buyer at the end of the month.
When will virtual wheeling be rolled out by Eskom?
In August 2023, Vodacom signed Eskom’s first Virtual Wheeling
Agreement after a successful pilot phase and rigorous testing.
Some of the issues that Eskom is still considering include municipal
wheeling structures, the status of buyers and municipalities in debt
to Eskom, tariff and use of system charges.
While Eskom will continue to offer traditional wheeling as a
product, the addition of a virtual wheeling option has the potential
to accelerate access to alternative energy sources and introduce
much-needed additional capacity into the grid.
GRID ALLOCATION CHANGES THE SOLAR WHEELING GAME
SolarAfrica has announced the successful issuance of an Eskom
budget quote for the company’s utility-scale solar PV project in the
Northern Cape. This is a massive leap towards making wheeled energy
available to South African businesses that couldn’t access it before.
The rules have changed. Eskom recently levelled the playing
field for projects participating in the Renewable Independent
Power Producer Programme (REIPPP) with a “first ready, first served”
approach – giving shovel-ready power generation projects priority
in the queue over the “first come, first served” projects that used
up valuable capacity allocation but weren’t ready to proceed. For
a project to be approved, it must undergo stringent evaluations
before it can obtain a budget quote (BQ), which confirms that the
project has been allocated capacity on the national grid.
As one of the first private-sector providers to receive a BQ since
the new rules were implemented, SolarAfrica worked meticulously
to meet all of Eskom’s strict criteria, the most important of which is
having customers signed up and ready to consume wheeled energy
via Virtual Power Purchase Agreements (VPPA). Vantage Data Centres,
Attacq and NCP Chlorchem have signed up to SolarAfrica’s VPPAs.
“Securing this type of grid capacity for wheeled energy is a gamechanger,”
says David McDonald, CEO of SolarAfrica. “Typically, a vast
majority of grid capacity is already allocated to mega institutions
and large-scale, energy-intensive operations.” McDonald says.
McDonald says: “A precedent has now been set in the sector that
the government acknowledges the role that private enterprises play
*Written by Jason Van Der Poel, partner, and Hannah Milner, candidate attorney, at Webber Wentzel.
Wheeling is the delivery of
energy from a generator
of renewable energy to an
end-user situated
in another area.
ENERGY
THE SHIFT?
The introduction of virtual wheeling will enable buyers with
multiple smaller and low to medium-voltage offtake sites across
various geographies to benefit from wheeling mechanisms. IPPs
will have greater opportunities to sell surplus generation which
may otherwise go to waste.
in advancing sustainable practices and sends a strong signal that
the nation is serious about expediting the transition to renewable
energy. This efficient approach to decision-making not only instils
confidence in investors but also showcases a willingness to adapt
and embrace modern energy solutions.”
In terms of customer confidence, the BQ issuance carries several
compelling reasons for instilling trust. “In light of Eskom’s new rule,
the BQ serves as a stamp of endorsement, reassuring our customers
that we have lived up to the benchmarks we set for ourselves as
a company, as well as the promises we have made to our clients.
We committed to provide power, and now we can live up to that
as we start construction to wheel energy by 2025.”
While wheeling is not an overnight solution to loadshedding,
it will go a long way in relieving power generation pressure off
the state utility. “By partnering with the private sector, Eskom can
also benefit from the infrastructure investment and technological
advances that independent power producers bring to the table.
This means that more and more providers can wheel energy
into the existing grid, minimising disruptions, enhancing the
overall efficiency of the energy system, and promoting the use of
renewables,” McDonald says.
Once completed, the site will allow SolarAfrica to wheel solar
energy generated in De Aar to various commercial and industrial
businesses across South Africa before the company commences
Phase 2.
41

ENERGY
SHIFTING CURRENTS
SA businesses must balance equity
and innovation in the renewable energy surge
Our local energy crisis is playing out against a global backdrop of an accelerated energy
transition, driven by climate and ESG imperatives, trade and supply chain trends, as well as
financial structures.
SAWEA
set to advocate for the nation’s
wind energy sector at COP28
ENERGY
Niveshen Govender, CEO of SAWEA.
BY SCATEC*
These system-wide forces ensure that the option to lean
heavily into our fossil fuel reserves for rapid socio-economic
development is increasingly untenable in the prevailing global
landscape. Moreover, as South Africa grapples with the ongoing
energy crisis, businesses are pivoting to meet the urgent need for
a reliable supply of cheap, clean energy to operate.
Over the last few quarters, it’s become increasingly clear that
renewable energy, especially photovoltaics and battery energy storage
systems (BESS) solutions represent a cheaper, faster alternative to
coal-based options. These technologies are now accepted as part of
a viable trajectory towards a just transition.
Developments in BESS technologies, including the rapidly scaled
production of plant-ready lithium-ion batteries, have been a gamechanger
effectively mitigating the “erratic” nature of first-generation
PV-based tech and rendering renewable energy a price-competitive
viable alternative to fossil fuels. In recent years, we have seen a
cohort of multinationals and local companies looking to unlock the
abundant solar potential in the region to power at utility, commercial,
industrial and residential levels.
With South Africa’s energy transition becoming a matter of high
politics, polarising opinions on governance models have emerged,
in which the debate is often over-simplified to a binary in which coal
is equated with socialist ideals, and renewable energy framed within
the context of privatisation and capitalism. Renewables’ antagonists
have overlooked the immense potential of the industry to ignite
economic prosperity, job creation and collective ownership schemes.
However, given the realities of the current situation in South
Africa, a viable route may lie in nuanced private investment into
key infrastructure, coupled with strategic community investment
by public enterprises. This ensures energy sustainability and the
imperative collective ownership of the renewable energy transition
in the country.
One of the key takeaways from the 2023 Budget Speech was a rallying
cry for investments in renewable energy, at all levels, as a fundamental
commercial decision. This came after a massive investment from the
African Development Bank, which in 2022 committed R2.3-billion in
funding towards solar developments in the Northern Cape. However,
the seventh REIPPP bid window is still in limbo – one of the reasons
*Written by Jan Fourie, executive vice president for Scatec in Sub-Saharan Africa.
42
for this, as we have seen clearly from the sixth round, is the need
to align projects with geographic areas’ expected demand, supply
and regional grid capacity. This is a conundrum we urgently need to
address in South Africa.
Our traditionally resilient grid accommodated fossil fuel-based
electrification, especially via the historic, north-west to south-east
running high voltage transmission pipelines. However, massive
commercial and utility-scale developments are now commonplace,
including the likes of Scatec’s Kenhardt trio of projects, which boasts
a cumulative capacity of 540MW in solar production and 1 140MWh
in battery storage.
These burgeoning renewable projects necessitate an upgrade
to our power transmission infrastructure. We are in the process of
“reversing” the grid’s historic architecture, as we now need to channel
high-voltage energy from the sunshine- and wind-rich south and
western regions to the more populous north-eastern ones – historic
hubs for the fossil fuel industries’ regional activities.
As we move forward with this transition, we should be mindful
of societal implications and work to bring about energy equity.
Therefore, a balanced approach that prioritises both technical efficacy
and social equity is crucial as we navigate these upgrades. We want
to see a renewable energy-enabled grid that serves as a conduit for
shared prosperity.
Launched earlier in 2023, South Africa’s Renewable Energy Masterplan
(SAREM), offers a promising tentative blueprint for diversifying
the country’s energy mix, in which a sizeable chunk of the national
electricity demand is expected to be met via renewable energy by
2030 with solar expected to be a cornerstone. Notably, the plan calls
for community ownership, aiming for social upliftment alongside
technological progress.
Solar power in South Africa is not merely a passage to renewable
energy; it is a promising solution to the prevailing energy crisis,
catalysing a clean energy transition with profound implications for
businesses. Moreover, the embrace of solar energy dovetails with many
businesses’ ESG and CSR objectives, heralding a vibrant landscape
of developments in the solar sector, in turn catalysing economic
rejuvenation, business sustainability and job creation. But we need
to overcome regulatory challenges and grid capacity constraints.
The South African Wind Energy Association proudly announces its accreditation to attend the
United Nations Climate Change Conference, COP28, in the United Arab Emirates.
BY SAWEA
Keen to amplify the voice of the country’s wind energy sector
on a global platform, this is the first time that the association
will actively participate in this conference, seizing a significant
opportunity to advocate for the wind energy sectors role in the
country’s energy mix, while showcasing the achievements and
challenges of the country’s wind energy initiatives.
Niveshen Govender, leading the association’s delegation, emphasises
the importance of the attendance, stating, “The conference’s robust
agenda will provide SAWEA with invaluable insights, aligning its
programmes with international standards while considering the unique
needs of the South African context. Additionally, our presence at the
conference will allow us to share achievements and position South
Africa as an attractive investment destination for renewable energy
infrastructure projects that will assist the country with its energy crisis
and strengthen our role in South Africa’s Climate Change agenda, a
significant priority for our developing nation.”
SAWEA strongly believes that wind power
has a vital role to play, to ensure that
we are back on track to meet our national
and global commitments.
It is two years since South Africa released its nationally determined
contribution under the Paris Agreement, committing to new 2030
emissions reduction targets that shifts the country’s commitments
closer to what is needed globally, to limit warming to 1.5 degrees
Celsius, according to criteria used by Climate Action Tracker.
Furthermore, the association will join the Global Wind Energy
Council in several critical roundtable discussions, further engaging
with energy authorities, policy makers and industry thought leaders
in response to COP28’s campaign focused on tripling renewables by
2030, an ambitious target of 11 000GW of global power capacity.
Dubbed the “Global Stocktake”, this year’s conference focuses
on assessing global progress on the Paris Agreement, a pivotal
benchmark in climate action and will help to unpack South Africa’s
current emission trends. The results are expected to be sub-optimal
and should encourage governments around the world to accelerate
climate action. SAWEA strongly believes that wind power has a vital
role to play, to ensure that we are back on track to meet our national
and global commitments.
The conference will tackle the collective global advancements
towards fulfilling the objectives of the Agreement, with a specific focus
on fostering action support and international cooperation. For the
SAWEA team, this presents a unique opportunity to analyse potential
shifts and adjustments to rectify the current trajectory, delve into
wind infrastructure investment and promote global collaborations.
Additionally, the team will engage in knowledge exchange, skills
development, global policy alignment and collaborative efforts in
wind energy research, among other key areas.
Govender asserts, “Renewable energy, particularly wind energy
continues to lead the energy transition to a low-carbon renewable
energy future by producing 46.4TWh, powering 3.6-million average
households annually in South Africa alone. It is evident that wind
energy offers a clear pathway to achieving necessary emission cuts
swiftly, being a safe, reliable, affordable, widely available, and emissionfree
technology.”
In conclusion, the association reiterates that its delegation looks
forward to COP28’s dialogues, fostering collaborations, and advancing
the adoption of renewable energy technologies on the global stage.
“Engaging with stakeholders globally will fortify our efforts in
promoting and advocating for renewable energy adoption, to help
address climate change challenges,” concludes Govender.
South Africa is a party to both the United Nations Framework
Convention on Climate Change (UNFCCC) and its Kyoto Protocol,
having acceded to the Convention in 1997 and ratified the Kyoto
Protocol in 2002.
43

ENERGY
Key considerations when selecting
SOLAR PRODUCTS
RESIDENTIAL
PROJECTS
There are over 350 solar PV module and 1 250 inverter manufacturers worldwide and they all
produce different ranges of products. Put that way, it is daunting to think about finding the
appropriate products to use for your home solar project. Luckily, there is a science to it.
BY MENLO ELECTRIC
for
Identifying the type of project you are embarking on will go a
long way in helping you narrow down your choices, as there
are different considerations for residential, commercial and
industrial or utility-scale projects.
Residential solar is now more affordable than ever with big banks
recently adding solar loans to their portfolios. Now that the financial
part is covered, let’s deep dive into the more technical aspects.
N-TYPE OR P-TYPE SOLAR PV MODULES
When looking to power a home with solar, you will find there is more
to PV panels than meets the eye. Solar cells, the tiny units that make
up a solar panel, come in two main types: N-type and P-type. Each
has its own set of strengths and factors to watch out for.
N-type cells are like the star athletes of solar cells. They are good
at what they do – turning sunlight into electricity – even when the
weather’s not perfect or it is hot outside. They have a long lifespan
too, so they are great if you want something that will keep going
year after year. The downside? They are usually more expensive,
and may not be as available as P-type PV modules.
P-type cells are more common as they have had more research
and development dedicated to them historically. They are easier to
make, which usually means they are cheaper. They are also tougher
and can bend a bit more without breaking. This makes them easier
to install. The trade-off is that they are not as good at converting
sunlight when weather conditions aren’t ideal, for example if it gets
hot or the light isn’t as strong. They might not last quite as long as
the N-types before they start to show their age.
44
72-CELL AND 60-CELL MODULE SIZES
When it comes to outfitting your home with solar panels, it’s like
picking out accessories for a new outfit – you want the perfect
match. With 60-cell and 72-cell options, there is a bit more to
consider than just size and power. It’s also about compatibility with
the inverter, the device that turns the sun’s energy into electricity
for your home.
Think of 60-cell solar panels as the regular-sized chocolate bar –
not too big, not too small, just enough to satisfy. They are designed
to fit snugly on most roofs, avoiding the awkwardness of a panel
that is too large for the space.
These panels produce just the right amount of power that most
residential inverters can handle without breaking a sweat. 60-cell
panels are less likely to result in a waste of any power because the
inverter can use all the energy the panels produce, even when they’re
basking in full sunlight.
Now, the 72-cell modules are like the king-sized chocolate bar.
They are larger and have more cells, which means they can usually
produce more power. But bigger isn’t always better, especially
when it comes to fitting them onto a home-sized roof. These panels
are better suited for places where there is lots of space, like
commercial buildings or ground-mounted solar farms.
You might still say the 72-cell solar panels can produce more
power – that’s a plus, right? Well, not always. The higher power of
72-cell panels is great, but if your inverter isn’t up to it, it’s like trying
to pour a bucket of water into a cup. The excess just spills over. In
solar terms, this means the inverter might “throttle down” the power,
capping that it takes in.
This is why it is best practice to use 60-cell panels for home
installations. They match well with residential inverters, making sure
you get to use all the power they produce. It is about being smart
with your solar – getting all the energy you can without letting any
go to waste.
HYBRID INVERTERS AND BATTERIES
Inverters are like the energy traffic controllers of a system. They
direct current flow and the system to be monitored to ensure things
are running smoothly. These devices aren’t about converting solar
energy, they are about revolutionising how we manage and use that
power in our homes.
Most modern high-voltage hybrid inverters come with all the
essentials already packed in the box. From energy meters to Wi-Fi
dongles and every connector in between, everything you need for
a satisfactory experience is included. Gone are the days of complex
setup procedures. Today’s hybrid inverters are designed for simplicity,
installing one is as straightforward as setting up a new gadget. With
the user-friendly interfaces and clear instructions, getting your solar
system up and running is a breeze.
High-voltage hybrid inverters stand out by operating within a
higher battery voltage range, facilitating more efficient energy
conversion and reducing energy loss during power transfer.
These inverters use insulated gate bipolar transistors (IGBTs).
In contrast, low-voltage hybrid inverters, operating at lower
Inverters are like the energy traffic
controllers of a system.
ENERGY
battery voltage ranges, often depend on traditional transformerbased
technology.
Just as the solar module industry is increasingly leaning towards
the more efficient N-type cells, a similar trend is unfolding in the
world of hybrid inverters. Manufacturers are progressively shifting
their focus towards high-voltage models. High-voltage inverters, with
their higher battery voltage ranges, are akin to N-type cells in that
they both represent the latest advancements in their respective fields.
They bring the benefits of improved energy conversion efficiency,
just as N-type cells enhance solar panel performance. This industry
shift towards high-voltage technology is a clear indicator of the
ongoing pursuit of efficiency and cutting-edge innovation in solar
energy systems.
COST SAVINGS AND WARRANTY
One of the biggest perks of the of the latest batch of high-voltage
hybrid systems is the warranty coverage. Many manufacturers now
offer 10 years warranties on the inverters and batteries, reflecting
the reliability and longevity of these products. More well-established
manufacturers will make sure you are not sure you are left in the
dark for too long though, for example, Sungrow guarantees a
48-hour turnaround time.
The most compelling aspect of HV hybrid inverters and batteries
is their cost-effectiveness. Offering high-end performance without
the premium price tag, these systems are making solar energy
more accessible than ever. FoxESS’s hybrid range has been found to
be up to 20% more affordable that similar setups. It’s about
getting the best of both worlds – quality and affordability in
one package.
There is a lot of extra security that comes from selecting wellestablished
manufacturers, however a lot of them do not sell directly
to an end-user or event installer. To access these top products, it is
best to go through an official distributor, like Menlo Electric, who
imports the products and safely delivers them to the end destination.
Remember, picking solar products isn’t about specs and numbers;
it’s about finding the perfect solar companions that fit a home’s
energy lifestyle.
It is about being smart
with your solar.
45

GLOBAL PLASTICS TREATY
WASTE
talks conclude in Nairobi, Kenya: with key issues unresolved
The recently held International Negotiating Committee on Plastics meetings aimed at crafting a
landmark, legally binding global plastics treaty to combat plastics pollution, with specific reference
to the marine environment, concluded in November 2023, with critical topics left unresolved.
BY PLASTICS SA
Among the key issues left unresolved is the intersessional
work required between the Negotiating Committee on
Plastics (INC3) and the upcoming INC4, scheduled to take
place in April 2024 in Canada. This intersessional work is crucial
for laying the groundwork for more substantive talks at INC4.
INC3 achieved progress by refining the Zero Draft document,
incorporating additional elements necessary to achieve the agreement’s
overarching goal – ending plastic leakage into the environment, with
a particular focus on marine environments. The primary objective is
to establish an equitable and implementable agreement that acts as
a catalyst for plastics circularity, promoting better product design,
reusability and improved waste infrastructure.
Despite this step forward, the negotiations revealed a split between
fossil fuel and resin producers, advocating for design improvements
and recycled materials mandates as well as non-profit groups and
consumer product companies, favouring limits on resin production.
Plastics SA and the Chemical and Allied Industries Association
(CAIA) were active participants in the Nairobi negotiations. Plastics
SA represented the South African plastics industry. They supported
the view held by Global Partners for Plastics Circularity, who
underscored demand-side solutions, such as boosting recycled
content and enhancing waste collection.
Anton Hanekom, executive director of Plastics SA, was part of the
South African delegation who are not supportive of calls made for
a broader treaty, encompassing supply-side solutions like reducing
plastics production and restrictions on “problematic” plastics or
chemicals. “Modern life would be impossible without plastics. It is
short-sighted and irresponsible to push for outright bans without
taking into consideration each country’s socio-economic needs and
unique challenges. It was clear from the emotive talks and appeals
to ban plastics, that many of these advocates are misinformed
about plastics, the ingredients that are used to produce them and
the huge progress we as an industry have made over the last two
decades to create products that are safe, sustainable, responsible
and recyclable.”
Hanekom emphasised the plastics industry’s stance on advocating
for national autonomy when it comes to developing plans to reduce
packaging pollution. He highlighted the need for funding and supportive
policies to unlock waste, especially in regions lacking adequate
infrastructure, as ongoing challenges.
“Nobody likes to see litter in the environment. But the solutions
that we develop to solve this crisis must not end up creating bigger
problems, nor must they end up harming the health and well-being
of our people, the environment or putting thousands of jobs at
risk. However, we are in support of the calls for the development
of chemical management plans, chemical transparency and the
promotion of design for recyclability,” added Deidre Penfold,
executive director of CAIA.
Negotiations concluded with no solid plan, as oil-producing
countries and major plastic manufacturers created ripples of
disagreement. The path forward underscores the complexity of
balancing diverse interests to create an equitable and implementable
global plastics treaty. The unresolved issues underscore the need
for continued collaboration and dedication as the world strives to
address the urgent challenges posed by plastic pollution.
The focus now shifts to the intersessional work and preparations
for INC4, where stakeholders anticipate more robust discussions
and the formulation of concrete steps towards a comprehensive
and impactful global plastics treaty.
For more information, visit www.plasticsinfo.co.za.
47

CIRCULARITY
CIRCULARITY
WASTE NOT,
WANT NOT
The circular economy
makes business sense
The 2023 World Circular Economy Forum conference explored fresh thinking about protecting
nature. Protecting the environment and our future are at the heart of every discussion. So is
capitalism. One thing’s for sure: there’s plenty of money to be made in not wasting resources.
BY GEORGINA CROUTH
Without harvesting collective energies to drive this circular
economy, Sitra (the Finnish Innovation Fund), Nordic
Innovation and partners from around the world say they
fear that within the next five years, biodiversity loss will become
as big a political and economic issue as climate change is today.
Sitra is a public foundation that operates directly under the
supervision of the Finnish parliament. The foundation, which operates
independently with the help of a healthy endowment, has reached
the stage where investments in the circular economy have increased
momentum and the government is wholeheartedly committed to
the project.
At first focused on problems in nature – pollution, the ozone layer,
climate change – Sitra has now redirected its focus to nature loss and
aims to encourage fresh thinking about the use of virgin resources
and reducing the use of such dwindling resources in the system.
Jyrki Katainen, the president of Sitra and former prime minister of
Finland, told delegates at the plenary session that the private and
public sectors have done a significant amount of work to address
climate change.
NEXT STEPS
“We believe that this has paved the way for the next steps, where
nature loss – biodiversity loss – is going to be learnt (experienced)
faster than what was the case with climate change.”
48
Looking at what the world has been doing to address biodiversity loss
in recent decades, the classic answer has been to set up conservation
areas. That might be important, but it is simply not sufficient.
If the world ever reaches the United Nations’ sustainability goals to
protect 30% of our water and land areas, we should question what
happens to the most important issue – the 70% that is not envisaged
to be protected: the built environment, agricultural, forestry and other
areas, he said.
Within the next five
years, biodiversity
loss will become as
big a political and
economic issue
as climate change
is today.
Article courtesy Daily Maverick
It’s for this reason that the attention needs to be shifted to the circular
economy: how the market economy can produce more efficiently, in
harmony with nature.
“Without answering or finding solutions to these questions, we cannot
address biodiversity loss. This is where the circular economy comes
in because it is a significant answer to addressing biodiversity loss.
“The more we reuse resources that have already been extracted,
the less we need to use raw virgin material, which is why businesses
need to be encouraged to change their business model towards
circularity,” said Katainen.
André Küüsvek, the president and CEO of Nordic Investment Bank,
said the bank had run programmes for years on circularity and the
circular economy, to assist companies in adapting their business
models. In their experience, many companies wanted to participate
in the circular economy, but they still lacked the knowledge, insight
and understanding of how it could be done.
“Regulations are important, but a transformation to a sustainable
future and to combat biodiversity loss cannot be done without industry
adapting to this near future.”
Küüsvek said 170 companies had participated in their programme
for companies from all five Nordic countries to develop and implement
a circular business model. It has been published in an open-source
playbook to allow the rest of the world to see what and how it is being
done in Scandinavia.
LINEAR ECONOMY IS FAILING PEOPLE
Valerie Hickey is the global director for environment, natural resources
and the blue economy at the World Bank. She highlighted that we’re
living in a world where primary resources are getting more scarce,
overall goods and services are less affordable, and governments are
in a debt crisis.
“So, circularity is not just a nice-to-have. It’s an absolute must-have
because, at the end of the day, it’s an efficiency and affordability agenda.”
The World Bank, she said, is in the business of ending poverty and
is committed to ending extreme poverty by 2030. But it is desperately
failing at doing that.
“We live in a world today where there are 828-million people who
are going to go to bed hungry tonight. That number was 690-million
people eight years ago. The numbers are getting worse, people are
getting poorer, and our business is failing.”
It’s because the linear economy is failing people and not delivering
for everybody.
“We’re in a doom and gloom loop that we have to get out of, and
that’s the promise of a circular economy…”
As Katainen pointed out, the circular economy is not about charity:
it makes business sense from a purely capitalist perspective.
49

PACKAGING
MetPac-SA celebrates
RESOUNDING SUCCESS
MetPac-SA, a global leader in metal packaging solutions, held its fourth
Annual General Meeting recently. The AGM served as a platform to celebrate
the milestones MetPac-SA has reached in the past year, as well as outline
the association’s goals for the future. Under the visionary leadership
of CEO, Kishan Singh, the organisation has continued to thrive in the
ever-evolving metal packaging industry.
Shaping Tomorrow
Sustainable and Responsible
Metal Packaging Solutions
BY METPAC-SA
Kishan Singh (CEO)
three main objectives of MetPac-SA are to operate as
the appointed PRO on behalf of its members, by taking on
“The
part of its members’ EPR-related obligations and thereby
to ensure its members’ EPR compliance; to reduce waste and improve
recycling and re-use of metal packaging on an industry-wide basis
and finally to be acceptable in form and operation to the relevant
stakeholders, including the South African government and the
metal industry. This year’s AGM was testament to the hard work,
dedication and innovation of our entire MetPac-SA team. We are
immensely proud of what we’ve accomplished and the positive
impact we’ve had on metal in the packaging industry,” Singh said.
He added that the Producer Responsibility Organisation (PRO)
made significant strides in sustainability and environmental responsibility.
It introduced several ground-breaking initiatives to increase the
collection and recycling rates of both aluminium and ferrous (steel)
packaging, minimise waste and promote eco-friendly practices
throughout its supply chain. These efforts have garnered recognition
from industry peers.
“According to the declarations made by our members, more than
53 000 tons of aluminium packaging were placed on the local market
during 2022. During this year, we managed to exceed both the product
design (24%) and recycling targets (30%), and narrowly missed the
collection target (60%) and energy recovery target (32%).”
MetPac-SA created working groups that meet monthly to increase
collection and recycling efforts for the next financial year, is involved
in the development of an ongoing material flow analysis, has signed
NDAs with identified stakeholders (buy-back centres, metal recyclers
and waste-to-energy entities) and is collecting data on material placed
in the market, collected, recycled and waste-to-energy/exported.
Aluminium UBC performance against S18 targets.
“We are confident that we will continue to meet the S18 targets
that have been set for us by government for this year,” Singh said.
“We continue to work closely with our international and local counterparts
as part of the PRO Alliance. Through the latter we are working hard to
finalise a mechanism to register waste pickers on a national database,
negotiating a service fee for waste pickers, driving national pilot studies
and are looking at implementing the EPR online software strategy.”
The association is also supporting various projects around the
country aimed at raising awareness and understanding about the
importance of recycling and making sure metal packaging remains
in the circular economy. These include projects driven by Collect-a-
Can, Packa-Ching, CL Trading, The Metal Recyclers Association, PETCO
and the Plant the Seed foundation. “We have achieved phenomenal
successes with our “Trash 4 Treats” Schools Recycling Project, are
proud to be a sponsor of the IPSA GoldPack Awards and will also be
launching our own metal packaging survey over the next few months”.
“This year’s Annual General Meeting was not just a reflection of
our achievements this past year, but also a clear vision for the future.
We are very excited about the journey that lies ahead. MetPac-SA is
committed to being at the forefront of sustainable packaging solutions,
as our members are dedicated to create metal packaging that are both
functional and environmentally responsible.
“Looking ahead, we believe MetPac-SA is poised for even greater
achievements. Our strategic roadmap includes plans to expand
our global and local presence, forge new partnerships with likeminded
organisations, and continue pioneering advancements in
sustainable packaging technology. These initiatives are in line with
the association’s long-term vision to lead the industry in sustainability
and innovation. With the support of our industry, we will continue
making a positive impact on our planet while delivering exceptional
value to our members.”
For more information about Metpac-SA visit www.metpacsa.org.za
NEW BOARD OF DIRECTORS
The new Board of Directors tasked with leading the PRO in 2024,
as selected by members are:
• Kishan Singh (CEO)
• Mark Helfrich of Nestlé (chairman)
• Nozicelo Ngcobo of CCBA Group (vice-chairman)
• Muhammed Darsot (Dürsots)
• Roxanne Stegen of Hulamin
• Karen-Dawn Koen of the Oceana Group
• Josh Hammann of AB-InBev
• Don MacFarlane of Woolworths
MetPacSA is dedicated to leading the way in creating a sustainable future by focusing on metal
packaging. As the registered Producer Responsibility Organisation (PRO) with the Department
of Forestry, Fisheries, and the Environment, we take our sustainability pledge seriously. Here's
how we're doing our part:
EPR Compliance: We offer our members support by taking on part of their Extended
Producer Responsibility (EPR) related obligations. This ensures compliance with regulatory
requirements and makes things easier for them.
Recycle & Reuse: We aim to reduce waste management and encourage the recycling and
re-use of metal packaging across the industry. This conserves resources and reduces the
environmental impact.
Stakeholder Acceptance: We collaborate with stakeholders, including the South African
Government and the metal industry, to devise solutions that are both sustainable and
acceptable in their form and operation.
50
www.metpacsa.org.za

WASTE
Responsible
ACTIONS TODAY
will
Solar panel
and battery waste
SAFEGUARD
TOMORROW
Looking back, 2023 will undoubtedly go down in history as the year that South Africa’s
corporate and civil society went solar in a way never seen before. To avoid the crippling effect
of loadshedding, hundreds of thousands of individuals and companies recently opted to invest
in solar panels.
According to a recent BusinessTech report, South Africa’s imports
of solar panels increased thrice from the previous quarter to
an all-time high of R3.6-billion in the first quarter of 2023.
“While this is good news for renewable energy, we also need to
think about the long-term implications that even this ‘green energy’
will have on the environment,” cautions Dr Mark Williams-Wynn, KZN
branch committee member of the Institute of Waste Management of
Southern Africa (IWMSA). “In the coming years, we will have to deal
with the recycling of millions of solar panels and batteries that are
currently being imported into South Africa.”
The challenge: millions of discarded panels and batteries
Williams-Wynn says there’s now an estimate of between 20-million
and 25-million solar panels in the country after the recent influx.
Most have an expected lifespan of about 20 years and according to
Williams-Wynn, South Africa should be ready for mass recycling in
about 10 to 15 years’ time. “That is when we will see thousands of
52
panels having to be replaced with new ones, and when recycling the
old products correctly will become critically important.”
He explains that one of the challenges with solar panel waste is that
they are banned from landfills, as they are potentially hazardous to
both human and environmental health. “We need to adopt alternative
waste management solutions, such as recycling, refurbishing and
repairing, or reusing them in lower-demand applications,” he continues,
adding that emphasis needs to be placed on the waste management
of the batteries used in solar systems as well.
“I believe this to be the bigger challenge,” Williams-Wynn warns.
“The batteries in household solar panels are lithium iron phosphate
batteries, also known as lithium ferrophosphate (LFP) batteries. The
only material in this battery that has some value when recovered is
lithium. The iron and phosphate is of such low value that it’s not really
economically viable to try and recover them.”
Furthermore, the product is highly flammable. “And once that fire
starts, it is self-sustaining,” he warns. “They don’t need oxygen to
burn, and even when smothering burning batteries with foam they
can continue to burn.”
The solution: adherence and power of the customer’s voice
The success or failure of South Africa’s solar waste story will depend
on how responsibly we operate in the here and now, Williams-
Wynn notes.
“The methods for properly disposing of and recycling panels and
batteries are constantly developing and improving – but if we do
nothing now, we could face a catastrophe later.
There is simply not enough adherence to the Extended Producer
Responsibility (EPR) regulations which took effect in 2021 and hold
producers (which includes manufacturers, importers, distributors and
retailers) accountable for the end-of-life management of their products,”
he says. “There are many reasons for this, including expenses, control
READ REPORT
A CALL TO ACTION
The rapid worldwide adoption of technology has undeniably delivered
various advantages. However, it has also ushered in a troubling
increase in the unlawful disposal of electronic waste (e-waste).
This trend not only inflicts damage upon the environment but also
exposes communities to serious health hazards.
The producer responsibility organisation (PRO) Circular Energy is
taking a strong stance against this growing issue and is calling on
government, industries and consumers to collaborate in eradicating
illegal e-waste dumping.
Consumer behaviour crucial
E-wasted, is a complex issue, exacerbated by the hazardous components
within these items. Improper disposal techniques used in illegal
e-waste dumping frequently have negative effects on the environment
and human health.
Patricia Schröder, spokesperson for Circular Energy emphasises
that illegal e-waste dumping has far-reaching implications. “It poses
a threat to the health of communities that are already susceptible.
It also contaminates soil, water and air. To deal with this threat, fast
action is required. For instance, government and businesses can
work together to close regulatory gaps and impose severe fines on
those responsible for illicit e-waste dumping. This will send a clear
message that these actions will not be tolerated.”
THOUGHT [ECO]NOMY
greeneconomy/report recycle
WASTE
One of the challenges with solar panel waste
is that they are banned from landfills.
NATIONAL WASTE MANAGEMENT STRATEGY | Department of Forestry, Fisheries and the
Environment | [2020]
and enforcement, but in the end, the environment suffers – and it will
be everyone’s problem in future.”
According to Williams-Wynn, both the public and solar installers
can change things.
“Customers often don’t realise the collective power that they have.
To ensure that our solar and battery producers are complying with the
EPR regulations, we must all exert pressure on them. If that happens,
South Africa will be equipped and ready when the solar waste wave
strikes in a few years.”
According to Schröder, consumer behaviour also plays a pivotal
role in combating the issue. “Our choices as consumers hold immense
power. By disposing of our electrical and electronic products
responsibly, we can create a shift towards responsible recycling and
discourage illegal dumping.”
Proper disposal
To facilitate responsible disposal, Circular Energy has partnered with
Woolworths to establish drop-off points across the country (a list of
which can be viewed here).
“This initiative aims to make it easier for consumers to dispose of
these items properly,” Schröder explains. “By utilising these drop-off
points, consumers can contribute to responsible waste management
and help prevent the escalation of illegal e-waste dumping.” To
make matters even easier, consumers can also request collection
through Circular Energy’s website, ensuring that responsible disposal
is within everyone’s reach.
“This service empowers consumers to be part of the solution
without compromising convenience,” she concludes. “For instance,
we recently received a call from a concerned citizen, informing us
of illegally dumped fluorescent tubes in a roadside rubbish bin in
Gauteng. Our team responded swiftly to remove these tubes and
recycled them in a responsible manner.”
How a country manages its waste is a fundamental indicator of the extent to which that society is
functional and being managed in a sustainable manner, and the implementation of this strategy must
have a positive impact on the lives of all South Africans through shared socio-economic development.
The National Waste Management Strategy (NWMS) provides government policy and strategic
interventions for the waste sector and is aligned and responsive to the Sustainable Development Goals
(SDGs) of Agenda 2030 adopted by all United Nations member states. It is also aligned and responsive
to South Africa’s National Development Plan: Vision 2030 which is our country’s specific response to,
and integration of the SDGs into our overall socio-economic development plans.
The 2020 strategy has the concept of the circular economy at its centre. The circular economy is
an approach to minimising the environmental impact of economic activity by reusing and recycling
processed materials to minimise: (a) the need to extract raw materials from the environment; and (b)
the need to dispose of waste.
The circular economy is built on innovation and the adoption of new approaches and techniques
in product design, production, packaging and use – industrial symbiosis, for instance, is a way of
preventing waste in industrial production by redirecting waste from one production process to serve
as raw materials for another production process.
The strategy comes at a time when there is growing knowledge and awareness of the environmental
consequences of human activity in relation to the climate and environmental pollution. The widespread
impact of plastic packaging on our coasts, rivers and wetlands is a cause for great concern. – Minister
Barbara Creecy, Minister of Forestry, Fisheries and the Environment
53

WATER
WATER
WATER MODELLING
is key to managing SA’s scarce water resources
Different user groups
are supplied at different
assurances of supply.
The potential impacts of
climate change increase the
uncertainty of designing,
planning and operating dams.
As a water-scarce country, South Africa will need to rely increasingly on the detailed modelling
of water resources to help manage the needs of its population, industries and ecosystem –
as well as to navigate the uncertainty of climate change.
BY SRK CONSULTING
According to SRK Consulting principal hydrologist Kerry
Grimmer, this modelling is vital to the rigorous planning
and careful management of the country’s water resources.
“Long-term water supply is assessed through hydrological
and yield modelling of water resources to secure and maximise
water availability and supply,” says Grimmer. “The yield of a dam,
is defined as the maximum amount of water which it can supply;
yield analyses are essential in developing operating rules for water
supply systems, whether these are independent dams or interconnected
water systems.”
Growing demands from expanding communities and developing
industry needs to be considered when sizing and designing a potential
dam, and complex hydrological systems must be modelled to allow
careful planning and operation. Adding to the complexity of this
process over the past few decades are other crucial aspects to consider
in water resources modelling – to reflect current and future conditions
more accurately, and to protect the environment.
“Reservoirs and water supply systems are generally sized and
operated based on studies which used long-term historical
hydrological data, most notably streamflow and rainfall data,” she
explains. “From these studies, operating rules are developed, which
help dam operators to manage their dams by maximising water
resources, avoiding dam failure and protecting the environment.”
This helps ensure the security of water supply for users, including
domestic and rural consumption, agricultural food production,
energy production and industry to sustain and develop the economy
of the region.
“Different user groups are supplied at different assurances
of supply, and this is often determined in cooperation with the
stakeholders within the area,” continues Grimmer. “For example,
domestic use is supplied at a higher assurance level than agricultural
because it is critical that people have access to water for basic
human consumption.”
56
Other high priority users include strategic users such as energy
generation facilities, international obligations such as transboundary
watercourses and ecological water requirements.
“To allow these users to obtain their water at a higher priority than
other users, operating rules are developed through water resources
modelling,” she says. “This modelling aids in prioritising supply to
different user groups.”
These rules are especially important during times of drought when
water restrictions need to be implemented. During low rainfall or
Kerry Grimmer, Principle Hydrologist, SRK Consulting.
drought periods, dam operators can refer to the existing operating
rules and determine which of their users need to be curtailed and to
what extent – depending on the current level of the dam.
“This means that we can identify specific users of a system who
will be the first to have water restrictions imposed upon them, and to
what extent,” she says. In these analyses, the most important drivers
are long-term historic measurements of rainfall and streamflow.
In hydrological and yield analyses, scientists heavily rely on this
historic data.
Grimmer points out, however, that this data features the natural
spatial and temporal variability for the preceding time period and
does not yet fully incorporate the changes in climate.
“Although climate change has been studied for decades by
researchers, South Africans are beginning to see the effects of climate
change in their own lives,” she says. “We only need to look back over
the past 10 years to see examples of the devastating extremes of
both droughts and floods in South Africa.”
Historic rainfall and streamflow patterns may therefore no longer
accurately reflect the current climate, which causes a greater uncertainty
in predicting future hydrology. Stochastic models are used to analyse
rainfall and streamflow, but they are limited to the base historic data.
“Changes in the hydrological regime include variations in annual
rainfall, rainfall patterns, intensity and distribution, such as seasonal
shifts,” she says. “The cumulative impacts of these changes will
significantly impact streamflow, and subsequently the yield of a
dam or system.”
It is therefore imperative that changes in climate be incorporated
into water resources modelling by assessing various projected
climate scenarios and determining the effect and consequences of
these changes.
“The potential impacts of climate change increase the uncertainty of
designing, planning and operating dams,” explains Grimmer. “A certain
amount of flexibility in operating rules is fundamental in addressing
fluctuating and unpredictable hydrological conditions and reducing
the associated negative implications.”
She also highlights that designs of existing systems may no longer
be optimal in the light of impending hydrological conditions. To
address the expected changes in climate, studies need to be updated
to ensure that these changes are incorporated into system analyses.
“From this, we can project more accurate assessments of river flows
and dam yields,” she adds. “We can also develop strategic responses
and adaptation measures to the potential negative impacts of climate
change, essentially with the goal of ’climate proofing’ our water resources.”
As part of its extensive portfolio of water management work, SRK’s
contribution to water supply projects includes implementing the
results of potential climate change into the system modelling – to
determine changes and possible consequences. In a current study
in Zambia, SRK’s climate change specialists have estimated that the
rainfall in the project area is projected to decrease by approximately
4% in the medium term and up to 22% in the long term, while oneday
flood events will increase. In addition, the relationship between
rainfall and streamflow is not linear.
“This means that if the rainfall decreases by 4%, the corresponding
change in streamflow will be much greater than 4%, as the effect is
amplified,” she adds. “It is crucial to incorporate this new data, which
reflects the changing climate, into our models.”
She notes that another important aspect of water resources
modelling is the development of an approach which will aid in
protecting natural water resources. South Africa needs to meet not
only the demands of people, agriculture and industry, but also the
needs of the ecosystem.
“If we utilise our current water resources to the point that rivers and
dams run dry, that will have catastrophic effects on the biodiversity
of the environment,” says Grimmer. “For this reason, SRK includes
ecological water requirements in our projects to ensure that we
address and protect the environmental integrity of the river system
under analysis.”
Essentially, these are flows which need to remain in the river to
sustain the natural ecosystem of that river, including vegetation,
insects, amphibians and fish. Ecological water requirements are very
specific to each system and must be determined individually for each
river reach or site in a system. It is important to note that these flows
are meant to mimic natural conditions, which includes droughts and
floods, as these are natural events.
“Although ’flooding’ often has negative connotations, some species
of fish will spawn only during flood events, for example,” she explains.
“Flooding also recharges groundwater and wetlands, so it is important
to capture the natural variation within the climate when determining
ecological water requirements.”
“When determining the yield of a dam, the ecological water
requirements represent the water that cannot be abstracted from
the river; these flows must always remain in the river to sustain its
biodiversity and ecological integrity,” she concludes. “This is a delicate
balance between development and economic growth and the protection
of our natural resources, and water resource modelling is a vital tool
in achieving this result.”
57

WATER
South Africa’s year-end
WATER UPDATE
National policy is clear on private funding and increased private
sector funding but still at local government the embracing of this
policy is yet to manifest itself demonstrably. What can be done to
overcome this peculiar yet very crucial issue that is the backbone of
a civilised and thriving society? Three things come to mind:
1. Depoliticise key basic services such as water, electricity
and waste.
2. Civil society and business must start to hold local government
accountable for delivering on its mandate.
3. Incentivise local government to embrace national government
policies such as the National Infrastructure Plan 2050 (NIP 2050)
via conditional grants for example and access to collective funding
instruments available in the market via the Water Partnership
Office (WPO) a vehicle established by government to address
these problems.
An industry workshop was recently held in the Western Cape to
brainstorm ideas on how to better inculcate water security on
the back of the current water crisis. I had the pleasure of being
the first presenter, allowing the scene to be set with the topic
“What government is doing, and what can industry do, to mitigate
increasing threats to South Africa’s water security”.
What is striking is the clear lack of industry leaders’ insight into what
government has done over the past years to smoothen out policies
and establish various solutions. So, the update shared with this
gathering was not only way overdue but necessary to equip industry
with the knowledge of where we are going and what interventions
can be successfully embarked upon to secure dependable water. The
concept of collaborating with government, a founding principal of
the SA Water Chamber, was well-received.
Presentations were made by a large food industry group with
several large processing facilities that require significant volumes
of good quality water to process their products where the local
municipalities had failed to supply the required water. The only
solution in the first processing plant was to secure water rights
WATER
and abstract directly from a river, purify its water for onsite use and
reuse it through an effluent treatment system. This was done by
bypassing the failed Water Service Authority (WSA), which resulted
in the security of water supply and associated jobs at the facility.
The clear loser is the WSA that has lost that water revenue forever
and stands less chance of recovering itself to supply the rest of the
over 100 000 citizens in its supply area.
This is termed Independent Water Provision, as espoused in the
NIP 2050, and like electricity, we see the private sector migrate away
from state services that have collapsed. This will place further strain
on local government’s mandate to provide water for all, including the
growing indigent population consequently, like the Eskom situation.
A metropolitan business chamber demonstrated how public-private
collaboration can unlock economic security. Various basic public
infrastructure assets for water and electricity were “adopted” by private
business to secure the assets and involve the local community in its
security of supply of services. The collaboration between public and
private sector during these crises is encouraging. It bodes well for
our future as we work towards reviving our economy and inculcating
the required water security where growing population and climate
change add existential threats to business as normal.
Infrastructure has a finite life, and
this lifespan is highly dependent on the
judicious management thereof.
On the back of what has been a very problematic year for our
country’s water security, the dire need to reform our practices has
been acknowledged by all stakeholders. New ways of going forward
are being explored, albeit at a very modest pace. We have started to
move in the private sector and will do our best to collaborate with
the pubic sector for a win-win outcome for our country.
2023 has been a topical year for water. On the positive side, the crisis in the South African
water sector has been brought to the fore and is receiving major attention by all spheres of
government and the private sector – increasing the odds of resolution. However, it’s mostly
still “talk shops” and “workshops” as all report.
OPINION PIECE BY BENOÎT LE ROY, SA WATER CHAMBER CEO
In 2018, the Water and Sanitation Masterplan, published by the
South African government, stated that it required R900-billion
between 2020 and 2030 to return to a water secure economy.
On average, R90-billion per annum would have to be spent. Since
then, very little has been published outside the Western Cape on
how this masterplan has been implemented. What we do know is in
the latter part of this year the fiscus is facing serious liquidity issues
and National Treasury has mentioned infrastructure spending curbs.
In 2018, the masterplan mentioned a one-third funding shortfall. It
is probable that this funding gap is now at 100%, which means that
without private sector funding the masterplan will remain dormant.
So, let’s unpack this funding conundrum first.
The funding of urban water and sanitation infrastructure is sourced
from local municipal client revenues and national government grants
where both are under severe strain for various reasons. Local society
has suffered from the severe economic decline and is unable to
pay for water-related services. Stats SA reports that in 2018, 59% of
society did not pay for these services compared to 50.8% in 2009.
Infrastructure has a finite life, and this lifespan is highly dependent
on the judicious management thereof, which we know is not
the case resulting in high levels of failure, not unlike the Eskom
situation. A total of 97% of South Africa’s sewage plants do not
comply to their own Green Drop standards. Sewage plant assets are
not adequately operated and maintained, and non-revenue water
(NRW) has increased from around 30% to 46% in the last decade.
The majority of the NRW quantum are physical losses due to
unmaintained water distribution systems. The higher the NRW
trend the higher the non-payment of services and the higher the
cost to the consumers as NRW is a pure form of inefficiency. One
can logically conclude that water is 46% overpriced as 46% is lost to
system delivery inefficiencies and not the consumer as often alleged.
We are in a spiral towards total water security collapse unless these
services are paid for by all, one way or another.
Secondly, the fiscus is running dry as we all know, and this means
that the state can longer bail out local water asset rejuvenation,
which leaves the private sector as the last and only source of funding.
Water is 46% overpriced
as 46% is lost to system
delivery inefficiencies.
58
59

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