Green Economy Journal Issue 62

G R E E N 

Economy 

journal 

ISSUE 62 | 2024 

Africa 

UNDERMINED 

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28 

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42 

THE MOBILITY 

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PUBLISHER’S NOTE 

Dear Reader, 

I feel a renewed sense of urgency among businesses to move 

forward on projects, and the mining sector is at the forefront. 

It could be viewed simply as a business community resigned to 

their “new” circumstances (read 2023 loadshedding disaster) and 

galvanised to press ahead with their strategies regardless. 

This is very positive from a green economy standpoint, and from 

an energy standpoint in particular as a meaningful percentage of 

investments which fall within this sub-set of the economy. 

Another positive development is the inclusion of energy 

storage-related capex within the definitions under S12 of the Tax 

Act, a source of consternation and in some cases delay on the 

part of those looking to invest in hybrid energy projects. Kudos to 

government should this development materialise. 

At the grid scale, South Africa is about to become a global leader 

in energy storage with two rounds of World Bank-funded Eskomprocured 

projects starting to reach Commercial Operation Date, 

RMIPPPP projects long stranded due to price shifts now closing, 

and the launch of the second round of the DMRE ESIPPPP having 

been released. Several GWhs of battery energy storage will soon 

come on stream, materially improving security and supply quality. 

We will be present at all leading sector events including the 

Mining Indaba, Solar Power Africa, Africa’s Green Economy 

Summit and the Africa Energy Indaba, to track and write about 

these developments, and we look forward to meeting with you 

and other leaders in the green economy! 

Publisher 

EDITOR’S NOTE 

Hi All, 

Welcome to this issue of the Green Economy Journal. 

African countries have expressed their collective desire not 

to be locked into historical patterns of the international division 

of labour as producers and exporters of unprocessed minerals. 

Thus, the AU is engaged in the process of concluding an African 

Critical Minerals Strategy to promote more value-added and 

developmental benefits from the continent’s critical minerals. 

This transition will see pressure to phase down fossil fuel mining 

and extraction on the one hand and a dramatic increase in the 

range of critical minerals required for green and digital 

technologies (page 8). 

The elements of sustainability must be embedded into each 

mine’s core operations – depending on the type of mine, the 

mining phase as well as the geographic and social environment. A 

comprehensive, balanced approach to sustainability considers the 

company’s larger strategic focus and priority areas as well as the 

need to adapt quickly and locally as focus and priorities change 

over time (page 16). 

In the energy sector, developers are eager to deliver and have 

set aggressive targets for new capacity installment. However, 

a paradigm shift across market conditions, grid availability, 

land use, labour shortage and supply chain disruptions is 

putting these goals at risk. Achieving the next level of renewable 

penetration requires the next evolutionary step in project 

development: hybrid projects – combining multiple technologies 

in one site, such as wind and solar, or either one with battery 

storage (page 28). 

Read about these and other fascinating issues in edition 62 of 

the Green Economy Journal. 

See you at the events! 

Alexis Knipe 

Editor 

G R E E N 


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PUBLICATION DATE: February 2024 

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All Rights Reserved. No part of this publication may be reproduced or transmitted in any way or 

in any form without the prior written permission of the Publisher. The opinions expressed herein 

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journal 

CONTENTS 

4 NEWS & SNIPPETS 

MINERALS 

8 Making the most of Africa’s critical minerals in Just 

Transition 

MINING 

14 Getting the most from your social and labour plans 

16 Building a sustainability framework 

20 Vezinhlanhla Mining servicing the mining industry 

22 Putting heads together to solve mining headaches 

WATER 

25 Re-Solve your water issues 

26 South Africa’s mining water update 

ENERGY 

28 Hybrid projects: a value engine for renewable energy 

developers 

36 Getting the best return on your solar PV investment 

39 Air Products celebrating the transition 

MOBILITY 

42 Rapid shift to renewable energy vital for EV transition 

46 Masslift raises the bar 

THOUGHT LEADERSHIP 

48 The green economy/built environment nexus 

SOCIETY 

55 Aquamation: an eco-friendly burial alternative 

WASTE 

56 Technology trends driving sustainable polymers 

for a circular economy 

SKILLS 

59 Higher education institutions must take the sustainability 

lead in 2024 

READ REPORT 

THOUGHT [ECO]NOMY 

greeneconomy/report recycle 

To access the full report in our Thought [ECO]nomy report boxes: 

Click on the READ REPORT wording or image in the box and you will 

gain access to the original report. Turn to the page numbers (example 

below) for key takeouts of the report. 

01 02 03 

key takeouts 

of the report 

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08 

42 

48 

key takeouts 

of the report 

2 

3

NEWS & SNIPPETS 

ROLLING BLACKOUTS WILL BE WITH SA FOR YEARS 

By Georgina Crouth 

The latest Integrated Resource Plan (IRP), gazetted on 4 January by Minister Gwede 

Mantashe reveals that power supply will be constrained for the next six years due to an 

“electricity supply gap”, despite efforts to add new supply to the grid. 

Nuclear power, the plan acknowledges, is an important clean energy source of electricity 

generation because it can complement other clean energy technologies in reducing 

power sector emissions, while also contributing to electricity security as a dispatchable 

power source. 

“There is growing global interest in the deployment of small modular reactors (SMRs). 

Given their smaller footprint, SMRs can be sited in locations not suitable for larger nuclear 

power plants, such as inland regions, along the coast and in remote areas. 

“The flexibility of SMRs enables potential for hybrid energy systems that combine 

nuclear and alternative energy sources, including renewables. SMRs can be deployed 

incrementally… to match increasing nuclear demand.” 

Extending the life of the Koeberg nuclear power station beyond 2024 is critical to retaining 1 860MW of power, which is about 5% of 

Eskom’s total generation capacity. 

In November, Koeberg synchronised Unit 1 to the grid, which it described as “a huge milestone in the generation and operational recovery 

plan”, although Minister Ramokgopa has called outages at six other power stations a “major disappointment”. The government expects more 

solar PV and wind to be added by the private sector after 2027, which is not included in the “emerging” plan. 

The IRP 2023 is up in the air about the energy mix after 2030, saying the system will require a massive new build programme as 

significant capacity will be required in just over a decade from now. It says other than delayed shutdown, these technologies include a 

mix of nuclear, renewables, clean coal and gas, in support of coal reduction commitments. 

Daily Maverick 

SA TO BENEFIT FROM FUND FOR CLEAN ENERGY TRANSITION 

By Siphelele Dludla 

South Africa could get a cash injection to deal with its crippling 

energy crisis, with the country set to be one of the beneficiaries of 

an initiative by global leaders to raise trillions of dollars to 

At the World Economic Forum (WEF) 2024 Annual Meetings 

in Davos in January, more than 20 ministers and CEOs joined 

an alliance to unlock the funding needed for the Global South’s 

clean energy transition. The “Network to Mobilise Clean Energy 

Investment for the Global South” is made up of CEOs and 

government ministers, including from Colombia, Egypt, India, 

Japan, Malaysia, Morocco, Namibia, Nigeria, Norway, Kenya and 

South Africa. Head of the WEF’s Centre for Energy and Materials, 

Roberto Bocca, said accelerating the clean energy transition was 

imperative to address climate emergency, but current investment 

levels remained far below the scale. 

“Unlocking this financing today is not only a key first step towards 

a secure and equitable energy system tomorrow, but represents a 

clear opportunity for businesses, as emerging economies account 

for the lion’s share of the global population,” Bocca said. 

This comes as energy supply shortage was identified as one of 

the top five risks facing South Africa by the latest Executive Opinion 

Survey (EOS) of the WEF. 

The Global Risks Report 2024 also named economic downturn, 

unemployment, state fragility and water-supply shortages as 

challenges as the most likely to pose the biggest threat to South 

Africa in the next two years. 

The long-standing energy deficit in South Africa has forced 

Eskom to implement up to 10 hours a day of rotational power cuts, 

which has crippled business and economic activity as the stateowned 

electricity utility doesn’t have the balance sheet to fund new 

generation projects. 

The WEF also released a report that outlined a framework to 

guide policymakers and business leaders from the energy sector 

towards a just, equitable and inclusive energy transition, particularly 

in developing economies which account for less than one-fifth of 

global clean energy investments. 

Business Report 

Egypt’s Minister of International Co-operation, Rania A Al-Mashat, 

who will co-chair the network that will oversee this, said the overall 

annual investment in clean energy in the Global South needed to 

triple from $770-billion (R14.6-trillion) currently to $2.2-trillion to 

$2.8-trillion by the early 2030s. 

Al-Mashat said that while recent spending had increased, it 

remained concentrated in a few countries and sectors, with over 

90% of investment growth having occurred in advanced economies 

and China since 2021. 

“The network will play a crucial role in bringing together public 

and private players to pinpoint investment needs, breaking down 

barriers, and unlocking practical solutions for a just, equitable and 

sustainable energy transition in the Global South,” Al-Mashat said. 

“This will be a new space for emerging economies to exchange best 

practices and lessons learned, and foster collaboration around value 

chain strategies, regulatory policies and investment mechanisms.” 

Minister of Electricity, Dr Ramokgopa, prior to the WEF, said they 

were working on presenting a compelling case to attract foreign 

investors to plough money into expanding South Africa’s electricity 

transmission network in a bid to deal with the energy crisis. 

South Africa needs about R390-billion to aggressively expand and 

strengthen its transmission grid with about 14 000km of new power 

lines to accommodate renewable energy that is coming online. 

Standard Bank Group CEO Sim Tshabalala, in an interview with 

CNBC Africa on the sidelines of the WEF meetings, pleaded with 

leaders in South Africa and across the continent to make it easier to 

do business in their countries by reducing red tape and liberalising 

their economies. He also urged African countries to reduce the risk 

premium associated with investing on the continent by making 

it easier for goods, people and ideas to flow across the continent, 

implementing fiscal discipline and making it easier to do business. 

The WEF gathering took place against a backdrop of increased 

geopolitical tension, especially in the Middle East, and in a record 

election year with more people than ever being able to head to the 

polls in 2024. 

SCARCITY OF FUNDING IN THE MINING INDUSTRY 

By Rashaad Carrim and Shirleen Ritchie, partners at Webber Wentzel 

Understanding the role of mining companies in the global 

economy is crucial in navigating the many legal and economic 

hurdles to ensure that these companies continue to operate 

responsibly, sustainably and profitably. Accordingly, this sector 

operates in a complex legal landscape, characterised by 

evolving and increasingly stringent regulations, environmental 

considerations and community concerns while at the same time 

having to navigate the ever-present need and often scarcity 

of funding. 

ALTERNATIVE FUNDING OPTIONS 

Investors and third-party funders, such as banks and investment 

funds, are increasingly facing pressure to disinvest from the 

mining industry in favour of “greener” investment options. This is 

specifically present in those mining sectors that are perceived as 

being inescapably linked to fossil fuels (coal companies and the 

like). While there is still a diminishing bucket of investors who 

continue to invest in these entities, the equity and debt capital 

markets have insufficient will or depth to sustain the capital 

expenditure necessary to progress mining operations generally 

and for “out of favour” commodities. Furthermore, banks and 

funding institutions are similarly limiting their exposure to mining 

operations to such an extent that the leveraging options available 

to mining companies are presently few and far between. 

Newer (and in some cases revived) financing options have 

started emerging as viable sources, such as royalty arrangements 

and streaming together with blockchain and crowdfunding 

(particularly for smaller mining companies or projects with a strong 

social impact narrative). These innovative financing mechanisms 

offer greater access, flexibility and benefits to mining companies, 

including balance sheet optimisation, which in turn increases 

the ability to provide investors with real and meaningful returns 

using dividends. 

Royalty and streaming arrangements offer many unique advantages 

to mining companies. Streaming and royalty agreements are contracts 

concluded between the streamer (purchaser) and the mining 

REACTION TO DRAFT IRP 2023 

The draft IRP 2023 makes the case for a fossil-heavy electricity 

generation system on the basis of undisclosed and unsupported 

assumptions that are not replicable. It also does not consider 

the uncompetitive future to which this poorly drafted plan 

would bind the South African economy. 

“This is not only a step back for the Department of Mineral 

Resources and Energy (DMRE) in terms of consultation and clarity 

of work, it is a high-risk pitch for special interests at the cost of the 

citizens’ futures. We can and must do better,” says James Reeler, 

senior manager for Climate Action with WWF South Africa. 

Reeler describes the draft IRP as “not only disappointing, but 

it also seems to fly in the face of all other electricity generation 

models, both national and internationally”. 

“It would appear that the IRP’s conclusions are driven by 

a foregone conclusion that fossil gas and coal are necessary, 

with modelling constraints for different pathways constructed 

to support this. The result is a vision that proposes to increase 

greenhouse gas emissions and the concomitant health impacts 

of our energy system, at massive cost to human health and 

wellbeing,” he says. 

The IRP’s cost assumptions differ significantly from what has 

been seen in the real world, where renewable energy (RE) is 

now the cheapest form of energy that has ever been available. 

Moreover, the unwarranted assertion that large scale renewable 


company (seller) and can be efficiently 

implemented within a short space of time, as 

these arrangements usually do not require 

complex engagements with equity capital 

markets and shareholders. It also often allows 

mining companies to optimise the sale 

of non-core or secondary commodities 

using more competitive pricing. However, 

the allure of these avenues should be Shirleen Ritchie. 

balanced with an acute understanding 

of the regulatory, exchange control and tax 

implications as well as the overall cost of 

funding for the mining companies. 

In addition, many tax jurisdictions will 

tax the receipt of funds earned at corporate 

income tax rates, which would make royalty 

and streaming arrangements prohibitively 

expensive. Coupled with income tax are the 

often-present value-added taxes that need 

to be considered. South African tax laws, for 

example, would tax the receipt at corporate Rashaad Carrim. 

income tax rates but the application 

of certain smoothing provisions that allow the profit associated 

with streaming agree-ments to be recognised over the term of the 

agreement do offer solutions that make this viable. To this end, 

although commercial expediency and ease of implementation may 

be the first attraction, it is critically important to consider the legal 

and tax landscape of the mining company early in the negotiations or 

this will not yield the desired results. 

In this ever-changing world, the mining industry will continue 

to be tested, however, tapping into the power of these previously 

underutilised and novel sources of funding together with the 

guidance of strategic and experienced advisors is fast becoming 

a necessity for large, mid-tier and junior mining houses alike, to 

demonstrate to their stakeholders their continued ability to secure 

the ever-present need for capital and resilience in general. 

builds will necessarily result in large amounts of unserved energy 

is driven more by artificial constraints placed on the model than 

real feasibility assessment. 

The IRP’s near-term reliance on fossil gas to make up a 

shortfall in generation should not be construed to mean that 

exploitation of gas reserves is a viable option for the long term. 

The Intergovernmental Panel on Climate Change (IPCC) and 

International Energy Agency (IEA) are clear that to meet the global 

goal of limiting climate change to near 1.5°C the world cannot 

afford to make use of any additional fossil fuels. 

In addition, a legitimate economic assessment of the impacts 

of a high emissions pathway should also consider the additional 

effects of being unable to export products to key markets, as well 

as the additional climate and human health impacts. Delaying 

the shutdown of coal plants will violate any chance of South 

Africa meeting its international mitigation commitments; the low 

likelihood and very high cost of carbon capture and storage mean 

it is not a reasonable fix for continued operation of coal plants. 

Overall, WWF is extremely concerned that Cabinet has approved 

this document in its current state for public consultation and calls 

for better transparency and rigour in the development of such 

critical planning documents. It strongly urges that DMRE makes 

their assumptions and model workings clear, to enable proper 

assessment of their conclusions. 

4 5


THE TRIPLE THREAT TO AFRICAN MINING INVESTMENTS 

Water availability is a key investment risk to mining in many African 

countries. According to Peter Shepherd, partner and principal 

hydrologist at SRK Consulting, water allocation demands early 

attention and a commitment to meeting stringent compliance 

and best practice requirements. Shepherd highlighted that 

national regulations are often onerous, and any project’s 

motivation for a water use licence needs to be both detailed 

and scientifically sustainable. 

“Many parts of Africa are dry, and competition for water grows 

steadily with development and human migration, as well as climate 

change,” he said. “In southern Africa, for instance, countries like 

South Africa, Namibia and Botswana are increasingly careful about 

how water supply is allocated.” 

Feasibility too late 

Any new mine development therefore needs to establish at a very 

early stage that there are in fact water resources available – and to 

investigate the terms for access to such resources. This is no longer 

an issue that can wait until the pre-feasibility or feasibility stages of 

a project, he emphasised. 

Desalination 

A government decision in Namibia has meant that new mines will 

use desalinated water, for example, which is often piped many 

kilometres to the mine site where it is used. Steps like these are 

important for managing national water resources but do have a 

cost impact on mine development projects. These costs must be 

budgeted for well in advance. 

“Even where there may be groundwater in the vicinity of a project 

in a low-rainfall region – such as 50 to 100 metres under a riverbed 

– the developers may be instructed by water authorities to source 

water from other sources further away,” said Shepherd. 

Settling times 

The actual water demand for each project also needs to be carefully 

analysed, with due regard to the different types of mines. Processing 

of certain minerals is more water-intensive than others, but there 

may be high silt or clay levels that raise water ratios and settling times. 

“Recycling of water is always important, and this process usually 

includes the settling out of suspended solids before water can 

be re-used,” he said. “Longer settling times need to be taken into 

account in designing the necessary infrastructure.” 

He notes that many mines struggle with the silting up of water 

storage facilities over time; the lining of pollution control dams with 

geo-membranes in recent decades makes it risky to dig out silt using 

mechanical equipment. This has resulted in greater efforts to restrict 

the inflow of silt at source, through features such as silt traps – from 

which the sediment can be more easily removed. 

Resilience 

Rainfall patterns are changing; even where the annual rainfall 

remains similar, there are more exaggerated peaks and troughs – 

heavy downpours followed by long periods of little rain, for instance. 

Mines have always needed to manage water levels through and 

between rainy seasons, but it is becoming more challenging. Return 

water dams and settlement ponds need to retain as much water as 

possible for the dry periods, while still having capacity to absorb 

extra water during the rainy season. Variations to historical rainfall 

patterns means that extra capacity is needing to be designed into 

this infrastructure. 

African mines face water scarcity, changing rainfall patterns and strict 

regulations, making water management vital for sustainable investment. 

Water quality 

“Mining with less water also requires better containment strategies 

for water of poor quality,” he said. “Recycling and re-use inevitably 

concentrates the level of salts and metals, and mines then need 

to isolate this water so that it can be either chemically treated or 

removed from site altogether as a hazardous liquid.” 

Shepherd emphasised that a mine’s water management strategy 

is increasingly part of its social licence to mine, as any use of 

this scarce resource must be seen to be equitable. Engagement 

with local authorities and communities is crucial in this respect, 

allowing new water infrastructure to be developed collaboratively. 

Especially where water is being transported long distances to the 

mine, additional distribution networks to local communities can be 

planned and implemented. 

SA’S R1.5-TRILLION TRANSITION PLAN 

DFFE Minister launched South Africa’s Just Energy Transition Investment Plan (JET IP) for the period 2023 to 

2027 at COP28 late last year. The plan charts the path South Africa will follow to achieve low-carbon but resilient 

economic growth, which demands a transition from fossil fuels, such as coal, largely mined in Mpumalanga, to 

fuel Eskom’s power stations. 

The JET IP is premised on South Africa’s National Development Plan 2030. It focuses on tackling the country’s systemic challenges of 

poverty, inequality and unemployment. It also sees an opportunity for the country to drive green industrial development, innovation 

and economic diversification. The governments of France, Germany, the UK, the US and the EU collectively known as the International 

Partners Group (IPG), have contributed R128-billion (US$8.5-billion) to the overall R1.5-trillion presented in this JET IP. South Africa has 

committed to reducing its emissions to within a range of 420-350 megatons of carbon dioxide equivalent (MtCO2-eq) by 2030. According 

to the JET IP, the priority sectors identified for investment include electricity, new EVs and green hydrogen. 

In the next five years, R711.4-billion will be needed in the electricity sector, R128.1-billion for EVs, green hydrogen (R319-billion), skills 

development (R2.7-billion) and municipal capacity (R319.1-billion). 

The report warns that South Africa faces an economic risk because of the degree of carbon emission embedded in its commodities 

and products. 

UNTAPPED GREEN INVESTMENT OPPORTUNITIES IN AFRICA 


KPMG recently released a report detailing nearly $250-billion untapped green investment opportunities in areas such as solar, 

wind and hydrogen. As it stands, Africa will need $277-billion annually between 2020 and 2030 to reach its Paris Agreement 

targets and implement its Nationally Determined Contributions, to contribute to limiting global warming to 1.5°C, according to 

the Climate Policy Initiative. It currently only receives $29.5-billion in annual climate finance, revealing the significant inflows of 

both public and private finances required from domestic and international sources. 

The report Climate Investing in Africa reveals that, as Africa fast approaches an anticipated 

period of economic prosperity, and as a home to mineral and resource rich land, there is 

an obvious yet untapped investment opportunity for private sector financiers. 

Despite its abundant renewable energy resources and vast non-arable land, Africa 

currently receives only 3% of global renewable energy investment, a stark contrast 

to the continent hosting 20% of the world’s population. The whitepaper details 

why private sector investment will therefore be vital to close the electricity gap in 

Africa and help decarbonise industries and economies, to support the region in a 

just transition. Other key findings include: 

• Unlocking Africa’s wind potential. If Africa were to exploit all of its wind 

resources for renewable energy generation, it could easily bridge the current 

energy provision gap on the continent. There is ample opportunity for greater 

investment and impactful infrastructure, with the International Finance Corporation 

estimating that Africa’s wind potential is so substantial that it could meet electricity 

demand 250 times over. 

• Underinvestment in solar. Underinvestment has resulted in inadequate infrastructure and high costs in the solar sector. Africa’s 

current solar potential is estimated to be over 1 000 times the current solar power electricity generation capacity, yet it has only 

been systematically deployed in a handful of countries. 

• The power of green hydrogen. Should existing commitments to reduce emissions be met by governments globally, it is 

projected that demand for green hydrogen projects will increase dramatically. Africa’s possession of copious renewable energy 

resources and vast arable land positions the continent uniquely well to produce green hydrogen and catalyse the broader process 

of industrialisation on the continent. 

SUPPLYING INDUSTRIAL AND 

SPECIALTY GAS PRODUCTS TO THE 

SOUTHERN AFRICAN REGION 

www.airproducts.co.za 

6

MINERALS 

MINERALS 

Making 

the most of 

African countries need to strategise about how to position themselves to make the most of 

their natural endowments of several minerals that are critical to the ongoing green and digital 

transition underway in the global economy. 

BY NIMROD ZALK* 

Countries that have achieved high levels and rapid gains 

in levels of income have done so by transforming their 

economic structure from low-productivity agriculture and 

petty services to agricultural modernisation and manufacturing. 

However, the fossil fuel-based energy powering this transition has 

generated greenhouse gas emissions that are driving potentially 

catastrophic climate change. 

High-income North Atlantic economies are responsible for the 

bulk of the stock of CO2 and other greenhouse gas emissions in the 

atmosphere, followed by late industrialising powerhouses China 

and India. 

While Africa has contributed the least to CO2 emissions, around 

4%, it is projected to suffer the most adversely from the impact of 

climate change particularly through rising temperatures and increasing 

frequency of extreme weather events such as droughts and floods. 

China is the leading processer of a range of critical minerals including 

rare earths, cobalt, lithium, copper and nickel. This is partly due to the 

significant and growing presence of Chinese mines on the continent 

but even more because of the industrial capacity built up in China 

to process critical minerals into industrial-grade concentrates and in 

turn into green and digital products. These include electric vehicles 

(EVs) and EV batteries, solar photovoltaic panels and wind turbines, 

semiconductors and digital devices. 

A combination of economic and geopolitical factors is driving 

dramatic structural change in the global economy. At the forefront 

is the shift to various low-carbon energy and transport technologies 

and the digitalisation of production and consumption. 

This transition is driven by a combination of factors. 

First, the necessary response to climate change. 

Second, the EU’s push for greater energy security in the wake of 

Russia’s invasion of Ukraine. 

8 

AFRICA’S CRITICAL 

MINERALS 

in just transition 

Third is the belated recognition and desire to catch up by the 

US and EU with the technological and industrial lead established 

by China in green and digital technologies. This is reflected by the 

introduction of large-scale subsidy, trade and regulatory measures 

notably the US’s Inflation Reduction Act (IRA) and the EU’s Green 

Deal Industrial Plan. 

In this context, the US and EU’s push for greater control over green 

and digital supply chains has unleashed a “race” to secure the supply 

of various critical minerals and associated strategies including the 

US’s Critical Minerals and Materials and the EU’s European Critical 

Raw Materials Act. 

AFRICA’S AUTONOMY 

Not surprisingly, African countries have expressed their collective 

desire not to be locked into historical patterns of the international 

division of labour as producers and exporters of unprocessed 

minerals. Thus, the AU is engaged in the process of concluding an 

African Critical Minerals Strategy to promote more value-added 

and developmental benefits from the continent’s critical minerals. 

This transition will see pressure to phase down fossil fuel mining 

and extraction on the one hand and a dramatic increase in the range 

of critical minerals required for green and digital technologies. The 

battery minerals required for EVs and energy storage include lithium, 

nickel, cobalt, manganese and graphite; rare earth metals and 

elements; as well as copper and aluminium required for electricity 

transmission and in EVs. 

Electric vehicles require over 200kg of minerals compared to less 

than 50kg for internal combustion (ICE) vehicles. Wind and solar 

photovoltaic technologies are also much more mineral-intensive 

than nuclear, coal and gas. 

Demand for battery-related and renewables and electricity 

Article courtesy Daily Maverick 

transmission-related minerals will increase by orders of magnitude. 

For instance, by 2040 lithium demand is projected to increase by 

between 13 and 42 times current levels, cobalt by six to 21 times 

and copper by between 1.7 and 2.7 times. 

Several African countries have substantial endowments of critical 

minerals and Africa has significant proven reserves of several critical 

battery minerals, including: 

• Platinum Group Metals (PGMs): 92% (90% of which are in 

South Africa and 2% in Zimbabwe) 

• Cobalt: 53% (51% of which are in DR Congo followed by 

Madagascar, Morocco and South Africa) 

• Manganese: 45% (40% of which are in South Africa, followed 

by Gabon and Ghana) 

• Chromite: 35% 

• Bauxite: 25% 

• Graphite: 21% (Madagascar: 8.1%, Mozambique: 7.8% and 

Tanzania: 5.3%) 

• Vanadium: 16% accounted for by South Africa 

• Copper: 6% (Zambia and DR Congo) 

These proven reserves are likely to be an underestimate due to low 

levels of mining exploration activity. 

However, limited processing of critical minerals to refined or 

concentrated stage takes place on the continent, with the notable 

exception of PGMs and manganese in South Africa. Aluminium is 

produced in South Africa and Mozambique from imported bauxite. 

However, there are pockets of existing and emerging critical mineralrelated 

activity. 

South Africa has significant capabilities related to the interface 

of hydrogen and platinum. This includes fuel cell pilot projects and 

a nascent green hydrogen strategy. Lithium-ion batteries are also 

assembled in South Africa, from imported cells. 

In Southern Africa, South Africa could well position itself as a leading 

processor of critical minerals mined in the sub-region, building on 

historical capabilities developed around its mining industry. 

In North Africa, Morocco is emerging as a significant player in critical 

minerals as mounting barriers to Chinese exports and investment 

in the US and EU loom. Morocco has taken advantage of its free 

trade agreements with both the US and EU, as well as its proximity 

Aluminium. Graphite. Nickel. 

Copper. 

Cobalt. 

South Africa could 

well position 

itself as a leading 

processor 

of critical minerals. 

9

MINERALS 

MINERALS 

to the EU. China’s CNGR has announced a $2-billion investment with 

Moroccan conglomerate Al Mada in a cathode materials plant to 

supply both the US and EU battery markets. South Korea’s LG Chem 

and China’s Huayou have announced plans to build a lithium refinery 

and cathode materials plant in Morocco. 

POLICY OPTIONS 

What policy options should African countries consider to capture 

more of the gains from their critical minerals endowments? 

One way African countries can give expression to their insistence 

that value should be added to the continent is to leverage their long 

history of non-alignment that emerged over the Cold War period. 

This implies a foreign policy orientation that does not reflexively 

support one or other dominant economic and geo-political power 

but aims to secure the most developmental benefits from whomever 

a country engages with based on “strategic non-alignment”. Morocco 

is navigating the US/EU and Chinese geopolitics adeptly. 

Mining policy can be strengthened on several fronts. 

African development banks have 

an important role to play. 

READ REPORT 



THE ROLE OF CRITICAL MINERALS IN CLEAN ENERGY TRANSITIONS | World Energy 

Outlook Special Report | International Energy Agency | [March 2022] 

A concerted effort to reach the goals of the Paris Agreement would mean a quadrupling of mineral 

requirements for clean energy technologies by 2040. An even faster transition, to hit net-zero globally 

by 2050, would require six times more mineral inputs in 2040 than today. Which sectors do these 

increases come from? 

Wind takes the lead, bolstered by material-intensive offshore wind. Solar PV follows closely, due 

to the sheer volume of capacity that is added. Hydropower, biomass and nuclear make only minor 

contributions given their comparatively low mineral requirements. In other sectors, the rapid growth 

of hydrogen as an energy carrier underpins major growth in demand for nickel and zirconium 

for electrolysers and platinum-group metals for fuel cells. Demand trajectories are subject to large 

technology and policy uncertainties. 

The largest source of demand variability comes from uncertainty around the stringency of climate 

policies. The big question for suppliers is whether the world is heading for a scenario consistent with 

the Paris Agreement. Policymakers have a crucial role in narrowing this uncertainty by making clear 

their ambitions and turning targets into actions. This will be vital to reduce investment risks and ensure 

adequate flow of capital to new projects. 

23 175 193 

The state 

of play 

116 

Reliable supply 

of minerals 

Focus on 

recycling 

Mineral 

development and 

climate change 

Greater public support for geological data collection is needed. So 

too is encouragement of exploration for the “smart” minerals needed 

for the green and digital transitions. Strengthened capabilities are 

needed to identify feasible yet ambitious conditions for value-addition 

and the negotiation and contracting related to these conditions. 

A spectrum of conditions is possible. At one end, countries can 

place restrictions on exports of unprocessed minerals. 

It is critical, however, to recognise that control of minerals themselves 

is not a sufficient condition for the development of downstream 

industries and needs to be accompanied by measures to foster 

industrial capabilities, with the level of capabilities needed rising 

further down the value chain. Holding lithium deposits for instance 

is by no means sufficient to ensure the investments and capabilities 

necessary to produce batteries for EVs. 

One “softer” approach is to “test the market” through the 

introduction of “developmental auctions” for mining rights. Rather 

than aiming to secure the highest price, issuance of a mining right 

would be granted to the bidder that provides the most substantial 

developmental package in terms of value-addition and labour, 

social and environmental commitments. 

Industrial, innovation and skills policies are required to support 

the development of capabilities required by both foreign and 

domestic firms. African development banks have an important role 

to play, not only in providing finance but in supporting de-risking 

of emerging sectors and value chains linked to critical minerals 

and informing government policy. While several African countries 

are experiencing debt distress, well-designed fiscal policy can also 

contribute. For instance, tax incentives supporting entirely new 

economic activities will have no adverse impact on existing budget 

deficits and if, and when, they become profitable will increasingly 

contribute to the tax base. 

African countries have much to gain by strategically navigating the 

geopolitical and economic “race” for critical minerals. This requires the 

development of strategies that are rigorous, ambitious yet realistic. 

Significant learnings can be derived from the strategies adopted by 

other developing countries. This includes not only Asian countries 

such as Indonesia but also African ones like Morocco. 

Keliber lithium project. 

Rustenburg Sibanye Gold. 

*Dr Nimrod Zalk is chief research officer: climate and economic development at the University of Cape Town’s Nelson Mandela School of Public Governance. 

READ REPORT 

READ REPORT 





GEOPOLITICS OF CRITICAL MINERALS IN RENEWABLE ENERGY SUPPLY CHAINS | 

The African Climate Foundation | [2022] 

In this policy brief, the African Climate Foundation has stressed how three main factors will determine 

the potential developmental outcomes of critical minerals industry development in Africa. Governments 

across Africa must recognise the strategic value of these critical minerals for domestic and regional 

industrialisation, but also the fact that transnational companies and industrialised countries are 

exercising their geopolitical influence and power to control critical minerals. 

The exploitation of these critical minerals, in both upstream and downstream industries, are scale- and 

capital-intensive investments requiring significant organisational and technological capabilities. Without 

developing some of these capabilities, the value from critical minerals will remain captured by major 

international players. 

APPROACH PAPER TOWARDS PREPARATION OF AN AFRICAN GREEN MINERALS 

STRATEGY | African Development Bank Group | African Natural Resources Management and 

Investment Centre | [December 2022] 

To formulate a strategy that is grounded in the prevailing circumstances of African countries and 

informed by local, regional and global conditions, this approach paper has been prepared by the 

African Development Bank and its partners [the African Minerals Development Centre, the African 

Legal Support Facility, the UN Economic Commission for Africa and the UN Development Programme] 

as a precursor study for a fully-fledged African Green Mineral Strategy (AGMS) which will follow. The 

strategy is intended to augment the existing body of mineral development policies with a focus on the 

opportunities created by African green minerals. 

The vision for the strategy is to guide Africa to purposefully exploit the continent’s green mineral resources 

for industrialisation and to assert control over its destiny to create an African presence in emerging green 

technologies. Four pillars support the strategy to deliver this vision: 

1. Advancing mineral development by increasing geological knowledge, conducting feasibility studies 

to attract investment, establishing the infrastructure to create an enabling environment and aligning 

mineral resource management with the African Mining Vision. 

2. Developing people and technology capabilities by identifying the skills needed to capitalise on 

opportunities and building the institutions ready to generate them. 

3. Building key value chains to achieve resource-based industrialisation and access wider regional and 

continental markets through the African Continental Free Trade Area. The case is made for establishing 

battery and EV value chains as a priority, starting with two- and three-wheeled vehicles. 

4. Promoting mineral stewardship to responsibly guide the environmental, social and governance aspects 

of green minerals, together with increasing material reuse and recycling. 

10 11

MINERALS 

Mining is critical to our 

GREENER FUTURE 

Extract of speaking notes for Nolitha Fakude, president of Minerals Council South Africa, at the 

African Critical Minerals Summit in August 2023. 

“We must heed the lessons of the past and not be 

just a supplier of raw minerals. Through strategic 

partnerships and investments, we must leverage our 

minerals endowment to attract new industries and businesses into 

the continent, creating jobs, encouraging skilled employment, the 

creation of wealth and a better life for all our citizens. Africa has 

any number of industrial minerals that must be used to improve 

our infrastructure such as rail, roads, ports, water reticulation and 

electricity transmission. These infrastructural requirements not 

only create a local market for our minerals, but they’ll underpin 

our economic growth. 

Productive agriculture through the smart use of fertilisers made 

with the phosphates we have is another example of the important 

minerals we have, and which will be critical for our future. 

South Africa is rich in platinum group metals which are essential in 

the establishment of a green hydrogen economy. Work has started 

in the Minerals Council and in the Energy Council with their member 

companies to determine the role the mining industry can play in the 

green hydrogen economy and how it can best use the clean source 

of energy to decarbonise its operations. 

Research, development and innovation into new technologies 

and the best use of our mineral endowment must be encouraged. 

This needs partnerships between the government, academia and 

the private sector to pool our intellectual capital through incentives, 

subsidies and support. We cannot afford to be left behind or start late 

in the global race for a greener future or smarter uses of our minerals. 

We must heed the lessons 

of the past. 

The decline in South Africa’s share of global exploration spending 

is dramatic, falling to less than 1%, as can be seen in the past three 

years, from more than 5% in 2004. This is extremely worrying for 

the mining industry, its future, the jobs we have, the communities 

that could benefit and the fiscus. Every ounce or ton taken out of 

the ground must be replaced through exploration otherwise the 

industry will eventually cease. South Africa must not be left behind. 

Unlocking exploration is a game changer. We must address some of 

the underlying causes for the decline in exploration. 

Of importance is that we have a functional, transparent, off-the-shelf 

cadastral system that is loaded with geological maps and reduces 

human intervention and corruption to a minimum. South Africa is 

lagging the world in the digital management of its minerals, and we 

must have a proven system as soon as possible. Secondly, the backlog 

of more than 5 000 mining, prospecting and permit applications 

in the DMRE has been a long-standing blockage to investments in 

exploration and mining project developments. 

Investors making long-term decisions about where to put their 

money demand a stable, predictable regulatory environment with 

the minimum of red tape and bureaucratic delays. We note the 

DMRE has started a review of the Mineral and Petroleum Resources 

Development Act to amend the Act. The Minerals Council will interact 

closely with the regulator to ensure South Africa has the best possible 

regulations that will attract investment, stimulate job creation and 

encourage inclusive, sustainable economic growth in the sector. 

The Minerals Council and the DMRE are working together on tax 

incentive proposals for National Treasury to consider implementing 

to encourage investment in exploration. 

The Minerals Council through Business for South Africa is working 

closely with organised business in the three partnerships with the 

Presidency and various ministries to address logistics, energy and 

crime and corruption. Business sees these three issues as the key 

issues that are constraining the economy and contributing to negative 

perceptions about South Africa as an investment destination. While it 

is still early in the process, we are encouraged by the response from 

the government to the partnerships. Business is willing to play its 

part as a partner, with its resources and skills, to address these three 

areas along with the relevant ministries and state-owned entities. 

We have seen significant structural reforms in the energy sector 

so far, with the private sector playing an important role in the 

development and installation of renewable energy sources. Private 

sector participation in rail and ports will unlock the bottlenecks that 

are costing the economy billions of rands in lost exports and imports. 

The private sector stands ready to engage the government on its 

critical minerals strategy, with investor-friendly policies and decisions 

around the definition of critical minerals and understanding the 

market forces driving current and future demand for these minerals. 

Further, South Africa must leverage its partnerships with the rest 

of the African continent to identify synergies that will benefit every 

one of us. 

South Africa’s mineral deposits tend to lie inland and far from ports 

and industrial hubs. The need for efficient and productive railways 

cannot be understated when it comes to the movement of bulk 

minerals. It is cheaper and more environmentally friendly than road 

transport, which destroys the country’s roads and causes enormous 

disruptions to communities and other road users. Our ports serve 

both the Indian and Atlantic oceans, giving us access to markets in 

the east, west and north. 

The development of an electricity transmission network as well as 

investments in renewable energy sources, particularly in the remote 

parts of our country are equally as important.” 

12

MINING 

Getting the most from 

SOCIAL and 

LABOUR PLANS 

Darryll Kilian, SRK Consulting. 

South African mining companies are spending substantial sums on their Social and Labour Plans. 

As a tool for improving the positive impacts of mining in South Africa, the plans developed 

and executed by mines have not produced optimal outcomes – but the industry is continually 

improving its approach and understanding. 

Communities often have limited 

input into SLP 

planning and implementation. 

“Some researchers have warned that, in taking municipal IDPs 

into account, mines should not limit themselves to consultation 

with the municipality – as a replacement for direct community 

engagement,” he says. “Communities often do not have meaningful 

influence over what goes into the IDP, and the IDP has to aggregate 

the full range of local interests – including local business and wellresourced 

segments of the community.” 

In contrast, SLPs are aimed specifically at developing poorer 

and marginalised segments of the community. Kilian highlights 

that the decline in basic service delivery by many municipalities is 

making this task more onerous. 

“The SLP is a condition of each operation’s mining right, so mines 

have tended to embark on their SLPs and related projects on their 

own – trying to make the best use of their own limited resources,” 

says Kilian. “Over time, it is becoming clearer that this approach is 

not optimal in delivering the positive impacts that stakeholders 

are looking for.” 

Services eroding 

“As infrastructure and services have often eroded in mining areas, 

a mine-by-mine response is becoming increasingly ineffective,” he 

explains. “Rather than focusing SLPs only on immediate mining 

communities, there is now a need for collaboration across wider 

mining regions.” 

Kilian notes that large mining companies for whom SRK has 

conducted or reviewed SLPs have already begun considering 

this broader level of planning and cooperation. The linking up is 

necessary not just between mines, but between mining companies 

and well-resourced partners like international development finance 

institutions and donors. 

“Where multiple mines can pool their ideas, strategies and resources, 

they can consider approaching development agencies to make more 

MINING 

significant investments in key infrastructure that may have a benefit 

over a much larger area,” he says. “While this widens the focus of 

each mine’s SLP, these larger interventions will still have a direct 

and positive impact on the mine’s local community.” 

Partnerships 

Mines would still dedicate their committed funds to local communities, 

says Kilian, but there was scope for mining companies to include 

partnerships with regional and international development agencies 

in their SLPs. 

For instance, if a large funder was wanting to work with government 

on upgrading wastewater treatment facilities across the country, 

mines could make a valuable contribution in their areas through 

their SLPs. 

This approach could also have the advantage of being more 

proactive and addressing root causes of social and economic 

challenges – rather than just their symptoms. Where failing water 

treatment plants could lead to disease, for example, added local 

resources may end up being diverted to health facilities. 

Scalable roll-out 

Kilian emphasises the importance of scalability in the roll-out of basic 

services and infrastructure – which is possible with larger investment 

but difficult for mines to achieve on their own. Partnerships are 

therefore increasingly vital in addressing the host of growing issues 

around mines, many arising from unemployment, poverty and lack 

of basic services. 

“Mines often feel overwhelmed by the myriad demands that are 

faced in local communities, all of which are worthy of response,” 

explains Kilian. “However, it is clear that – with the best will in 

the world – the resources of individual mines are not sufficient 

by themselves.” 

He points to the possibilities associated with collaboration 

around the water resources pumped to surface by many mines. 

By taking a water stewardship approach and working together 

with government, community and funding stakeholders, a group 

of mines in the same catchment area could develop exciting water 

projects at scale. 

BY SRK CONSULTING 

Mandated by the Mineral and Petroleum Resources 

Development Act, Social and Labour Plans (SLPs) aim to 

promote employment, advance community welfare, help 

transform the mining industry and contribute to developing the 

areas where mines operate. According to SRK Consulting partner 

and principal consultant, Darryll Kilian, one of the shortfalls is 

that communities often have limited input into SLP planning 

and implementation. 

“It is certainly the case that more consultation is required in 

the formulation and implementation of SLPs,” argues Kilian. “Such 

engagement can help to open up opportunities and consolidate 

buy-in for when projects are finally rolled out.” 

Effective engagement 

Recent research has shown that community feedback highlights how 

little involvement respondents have in the SLP planning process, 

with lack of public participation being a key opportunity for further 

optimisation in the mineral benefits system. 

With little influence on the content of an SLP, mining communities 

often express reservations about whether SLP projects really target 

their needs, he says. Responding to this means applying various 

interventions which include more awareness raising and greater 

efforts to engage a wider audience. There is a concern that mines 

often consult with only a narrow range of local interests – such as 

traditional leaders and politically connected individuals. 

A detailed process of stakeholder mapping has proved to be 

valuable in establishing a strong starting point for community 

engagement and consultation. It is also important to maintain 

community involvement throughout the SLP life cycle. 

Integrated Development Plans 

It is accepted that SLPs should align with the local municipality’s 

Integrated Development Plan (IDP), to enhance the momentum of 

government efforts on the ground. At the same time, IDPs focus on 

a wider range of concerns than SLPs – such as attracting investors 

and building the local economy. 

South African mining companies invest significantly in SLPs, seeking to enhance the positive impact of mining activities. 

14 

15

MINING 

MINING 

Anglo American 

Sustainability must 

become a part of the 

day-to-day job. 

Building a 

SUSTAINABILITY 

We are often asked if it is possible to create a sustainability agenda for each mine owned by 

a company. Our answer is yes, but only if the mining company simplifies its approach and 

communicates to staff and stakeholders about why and how to act. 

BY KEARNEY CONSULTING 

The elements of sustainability must be embedded into each 

mine’s core operations – depending on the type of mine, the 

mining phase as well as the geographic and social environment. 

A comprehensive, balanced approach to sustainability considers 

the company’s larger strategic focus and priority areas as well 

as the need to adapt quickly and locally as focus and priorities 

change over time. 

There are three “must haves” in a sustainability framework: 1) it 

must be applied consistently across the organisation regardless 

of geography or mine type, 2) it must encompass the full array 

of activities for addressing sustainability issues, including timing, 

execution and governance, and 3) it must sustain and enhance the 

competitiveness of the mining company’s portfolio of operations. 

A well-designed sustainability framework not only improves 

framework 

operational performance and creates more sustainable operations, it 

also has the potential to improve profitability. Creating the framework 

begins by identifying the anticipated impact achieved through 

sustainability (economic, social and environmental) and defining 

the what, when, how and who of sustainable mining (see figure 1). 

1. What mining processes have the most significant environmental 

and social impact? 

Leading mining companies focus on the processes that are most 

important in terms of sustainability and most closely linked to 

operational performance. This helps focus activities and scarce 

resources. As with most undertakings, the first step is to conduct a 

baseline analysis of the mining process to gain a better understanding 

of the company’s current consumption and environmental impact. 


Kearney Analysis 

Framework for sustainable mining 

Figure 1. The “what, who, when and how” of sustainability in mining. 

A good analysis assesses existing regulations, operations, energy 

mix, social impact and sustainability practices. It is important to 

assess performance at all mining phases – exploration, operations, 

closure and post-closure – and within all subcategories (see figure 

2). The grey shaded areas in figure 2 highlight where a mine’s impact 

is most significant. The subcategories are then adapted depending 

on the specific environmental circumstances of the area. 

Energy-related pollution is easy to assess using metering tools to 

gauge the local energy mix, but analysing a mine’s social impact is 

often more difficult as it relies on people filling out questionnaires, 

Exploration Operations Closure Post-closure 

Figure 2. The impact of processes and activities across mining operations. 

Above: Berm monitoring at Kumba Iron Ore’s Kolomela mine. 

Main picture: Tamaga Lodge is one of three biodiversity conservation areas 

on the western side of Sishen mine. These areas were originally livestock 

farms and are being carefully restored to their natural state. 

Celebrate and communicate 

the small quick wins. 

which are based on subjective opinions. We recommend going a 

step further and using tools to determine areas most important for 

a region and individual mines. 

2. When – at what phase in the mining process – do sustainability 

initiatives have the biggest impact on a mine’s life cycle? 

The earlier a strategy and game plan are defined; the more likely 

sustainability (linked to operational performance) will be successfully 

integrated into all aspects of planning and operations. In this way, a 

negative impact within a mining phase can be mitigated. For example, 

figure 3 illustrates an impact assessment on water, evaluating acidity, 

heavy metals, chemical processing, sedimentation and quantities at 

all four phases. Two potential mitigation points are highlighted in 

the operations phase and at post-closure. 

The most significant steps are taken when a mine is in the initial 

stages of design, when it is still possible to mitigate a potential 

negative impact before it happens, and when relatively simple 

measures can drive sustainable operations, improve operational 

opportunities and cut costs (see figure 4). Measures implemented 

at a later phase will be far more costly. 

3. How does a mining company avoid a negative social or 

environmental impact? 

A select set of priority initiatives is available to identify and address 

negative social or environmental impacts across the various mining 

phases. We use the following hierarchy to assess a potential impact 

(see figure 5): 

• Avoid an unacceptable impact by considering a different 

project location, sitting, scale, layout, technology or phase or 

ultimately by cancelling development 

• Minimise a largely unacceptable impact by considering the 

same options used to avoid an impact 

16 17

MINING 

MINING 


Figure 3. Impact assessment on water. 

• Rehabilitate an unavoidable impact or one that has already 

occurred by existing operations 

• Offset a remaining or unavoidable impact by considering 

compensation and investment options 

A good mitigation strategy is both evolutionary, deploying time-tested, 

proven best practices (doing things differently) and revolutionary, 

bringing in “blue-sky thinking” to set new environmental and social 

standards. In some cases, this means a change in execution and 

planning. In other cases, investments are required to achieve a 

significant impact. 

Although there are no standard guidelines or initiatives that will 

work for all mines around the world, many global mining companies 

are improving performance by sharing more ideas, initiatives and 

activities across operating regions. 

4. Who should be on the sustainability team, and what is the 

best way for team members to work together? 

All successful sustainability agendas have two things in common: 

they are products of a high-quality implementation within the 

company, and they are run by a dedicated team of professionals. 

Everyone collaborates to create win-win situations. 

All team members have roles to play. Governments, communities 

and municipalities establish the rules of the game and balance 

requirements (such as operating licenses) against the company’s 

sustainability agenda and the financial impact. Companies help 

determine and shape these requirements to ensure they are neither 

onerous nor lead to inefficient ways of working. All members work 

together to stipulate requirements and wishes, which are then 

discussed jointly to achieve optimal outcomes. These discussions 

often lead to subsidising specific initiatives or technologies that 

create a sustainability impact or they may lead to additional skills 

and jobs. Also, companies can commit to specific programmes with 

other organisations, both local and regional, in priority areas that 

have an environmental or social impact. Governments and NGOs 

might come back in to connect the dots between companies to 

compel larger programmes with a larger impact. 

We are often asked how underperforming mines can raise their 

sustainability game. One way is to join forces with NGOs in social and 

environmental partnerships. NGOs provide expertise and credibility 

and often better connectivity to communities. They can help mines 

achieve a larger community impact 

Execute a sustainability programme 

Sustainability requires a structured, comprehensive and organisationwide 

effort. This is not the time to cut corners or struggle with 

decisions about sustainability initiatives versus other priorities. The 

urgency of operations catches up with firms that are interested in 

making a difference. When discussing sustainability with mining 

companies, we generally recommend the following guidelines to 

achieve an immediate impact and a longer-term growth advantage: 

1. Own the initiative from the top down 

Ownership from the board level down must be the driving force 

behind any sustainability initiative. Mandate the programme 

and provide guidelines for dealing with trade-offs. Manage a 

sustainability programme the same way you manage other large 

change efforts and integrate it within the overall strategy and 

performance management of the company. It is important to 

report results using well-established and widely accepted reporting 

standards and to ensure that a wide stakeholder group is actively 

involved in the effort. 

2. Organise for success by embedding, not imposing 

Embed a small team at the centre of the organisation to drive 

and consolidate all sustainability efforts. Create a framework and 

guidelines to track and prioritise across the project portfolio. 

Share updates often and identify experts who are linked to senior 

management. Connect sustainability team members to reporting 

and communications processes and involve them in significant 

developments and decision-making. Focus on weaving sustainability 

into the operations function. 

Embed activities at the mines throughout all levels of the organisation 

with clear roles and responsibilities. Sustainability must become a 

part of the day-to-day job, rather than a separate function that has no 

power to drive and implement changes. Discuss sustainability during 

meetings with key stakeholders. Build awareness and capabilities 

from the top down to workers on the shop floor. Empower supervisors 

to foster the desired culture and set the right examples. Clear 

communication with the operators in the mine is essential. 

3. Measure and “incentivise” 

Define a sustainability key performance indicator (KPI) tree with 

cascading SMART KPIs linked to operations. The tree addresses the 

framework categories and uses clear definitions to make sense at 

all levels of the organisation and across businesses. Think outside 

the box by, for example, deploying tools such as community surveys 

and defining incentive structures that tie sustainability KPIs to other 

areas such as profitability, output and other financial goals to make 

them relevant. Tying 10% of total incentives to sustainability does 

not keep sustainability top of mind. It is far better to monitor and 

measure sustainability-driven operational KPIs structurally based 

on defined intervals and clear ways of measuring. 

4. Aim before shooting 

Choose a starting point and define success from that point onward. 

Most sustainability programmes evolve, so it is important to define 

success early in terms of the focus and what steps to take. A good 

example is optimising energy performance by addressing both the 

bottom line and sustainability: 

• Instill transparency and a baseline of energy consumption and 

emissions across operations with a common definition, such 

as kilowatt hour per ton of rock for processing equipment 

• Integrate sustainability into the planning process to breathe 

energy into the life of mine planning and the new mine 

development process 

• Define roles and responsibilities, and document and measure 

the impact 

• Invest in new technologies with reduced energy intensity or 

better water- or air-cleaning functionalities for the same mine 

output; think in terms of highly efficient fans, battery chargers, 

and pumps (where payback typically occurs in less than one 

year) or ice plants, closed-loop pumping systems, and heat 

pumps (where payback takes longer) 

• Build capabilities throughout the organisation 

• Finally, it’s time to shoot: drive the reductions through thoughtful, 

meticulous execution 

5. Create a flywheel effect 

Like any transformation effort, celebrate and communicate the 

small quick wins to create a sense of achievement that propels the 

organisation toward larger successes. 

Sustainability belongs at the heart of mining operations 

All sustainable mines have certain success factors in common. A welldesigned 

framework ensures that the elements of sustainability are 

addressed and that solutions are embedded into mining operations. 

There should be no difference between operating a mine for efficiency 

and operating for sustainability. 

We believe that mining will grow into a more sustainable industry 

– operating in a community’s best interest while minimising the 

impact on the environment. 


Figure 4. Influence and impact by mining phase. 1 Potential impact - measures can be taken to offset impact and reduce the “cumulative impact”. 

Figure 5. Mitigation of environmental impact. 

18 19

MINING 

MINING 

SERVICING the 

MINING INDUSTRY 

Vezinhlanhla Mining strives to be a leading black-owned, diversified mining company in 

Africa while ensuring participation in the discovery, exploration and beneficiation of Africa’s 

mineral resources. Green Economy Journal speaks to the founder, Prince Vusi. 

Please tell us about Vezinhlanhla Mining. 

Vezinhlanhla Mining is a 100% black-owned mining contractor which 

combines top-notch experience with the versatility and innovation 

required by the mining industry to be sustainable in the long term. 

Vezinhlanhla is an empowered turnkey contractor with capabilities 

across the underground and opencast contract-mining value chain. 

What is your view on sustainability? 

Vezinhlanhla Mining takes this responsibility seriously by embedding 

sustainable practices and environmental, social and governance 

(ESG) principles into every project by using cutting-edge technology, 

conducting thorough environmental assessments and adopting 

eco-friendly materials and execution methods. 

RECLAIMING the RESOURCES 

Vezinhlanhla Mining, a 100% wholly black-owned mining contractor established by Prince 

Vusi, combines leading experience with the versatility and innovation required by mining 

to be sustainable for the long term. 

What is the company’s history? 

As a Vusimuzi Group subsidiary, I established Vezinhlanhla Mining 

in 2017 to focus exclusively on the mining industry. Initially there 

was not much difficulty in establishing and growing the company, 

although we did have some challenges in 2022, but we showed 

immense resilience during the rebuilding phase. 

What is your vision? 

In 2024, our vision is to dominate the industry with my team and 

reinforce our position in the market, not only as a 100% black-owned 

mining contractor, but also as a reliable and competitive independent 

producer, starting with those 0.1% holding stakes. 

If it’s not in mining, it’s not for us. 

Please supply an overview of your offerings. 

Vezinhlanhla is a mining contractor with capabilities across the 

underground and opencast contract-mining value chain. We offer 

the following: 

• Underground and opencast mining 

• Project and facilities management 

• Plant and conveyor maintenance 

• Crushing and screening 

• Engineering and drilling 

• Bulk material transportation and hauling 

We provide extensive services for coal, gold and platinum group 

metals (PGMs) producers. Vezinhlanhla Mining was established 

with the sole purpose of servicing the mining industry – if it’s not 

in mining, it’s not for us. 

Established in 2017 as a mining contractor to service the mining 

industry, Vezinhlanhla is an empowered turnkey contractor 

with capabilities across the underground and opencast contract 

mining value chain. We provide extensive services for coal, gold, 

iron ore, manganese ore, chrome ore, nickel and platinum group 

metals (PGMs) producers. 

Vezinhlanhla undertakes mining operations with miners, roadheaders 

as well as drill and blast applications, enabling our clients to 

outsource according to their unique needs. Our commitment to safety, 

health, quality and environmental management standards means 

we work towards continuous improvements in risk management to 

better deliver project excellence. 

Our black empowerment credentials ensure that our clients benefit 

fully in terms of the mining charter requirement and the contractual 

conditions of key minerals purchasers. 

OUR COMMITMENT 

The empowerment of women, youth and disabled persons should 

be achieved in all aspects of work. Vezinhlanhla has more women 

on board to strengthen the capacity of the business. The company 

will also employ youth to pass on the skills to the next generation as 

Vezinhlanhla grows. Bursary schemes will be introduced for students 

to further their studies. 

Vezinhlanhla has developed a culture where there is no discrimination 

against disabled persons, hence it will seek to find, train and employ 

disabled persons with potential and enthusiasm. 

OUR COMMUNITY DEVELOPMENT PLAN 

Our objective is to train our staff and community. Undergraduates 

from universities and colleges studying engineering, safety or mining 

will be given the opportunity to further their studies in the field at 

Vezinhlanhla Mining. 

OUR BLACK EMPOWERMENT POLICY 

Vezinhlanhla is committed to the broad-based black economic 

empowerment, and it supports the government’s initiative of 

transformation and affirmative action policies and will continue to 

implement such projects where possible. Vezinhlanhla has initiated 

projects whereby materials and equipment are sourced from black 

SMME companies thus to empower one of our own. 

Vezinhlanhla Mining strives to be a leading black-owned, diversified 

mining contractor in Africa while ensuring participation in the 

discovery, exploration and beneficiation of Africa’s mineral resources. 

Our mission is to develop and consolidate a diverse portfolio of 

high-quality assets and services for the benefits of its stakeholders. 

• A 100% wholly black-owned mining contractor 

• Capabilities across the underground and opencast contractmining 

value chain 

• Solely focused on the mining industry 

• Viable partnerships and relations with our clients 

OUR MISSION 

To be a leading black-owned South African company that delivers 

value to all its stakeholders by: 

• understanding the needs of our stakeholders 

• delivering on and exceeding those needs 

• attracting and retaining the best talent 

• focusing on core assets: Pareto Principle 

• focusing on owning and operating our assets 

• embracing diversity 

• ensuring sustainability, growth and good governance 

THE FUTURE 

• Reinforce our position in the market as a reliable and competitive 

independent producer and supplier 

• Grow sales and customer base 

• Vezinhlanhla Mining intends to acquire coal, gold, iron ore, 

manganese ore, chrome ore, nickel and PGM assets to develop 

new projects 

• Power generation is a key area of opportunity – a synergistic 

venture that is now indelibly written into our corporate objectives 

VEZINHLANHLA SERVICES 

• Underground mining | Opencast mining 

• Project management | Facilities management 

• Plant maintenance | Conveyor maintenance 

• Crushing | Screening 

• Engineering | Drilling 

• Bulk material transportation | Hauling 

info@vezinhlanhla.co.za | vezinhlanhla.co.za 

+27(0) 87 550 2087 

Vezinhlanhla mining 

Vezinhlanhla mining 

20 

21

MINING 

MINING 

PUTTING HEADS 

TOGETHER 

to solve 

mining headaches 

A JUST ENERGY TRANSITION 

Dr Nandi Malumbazo, a senior lecturer at the Wits School of Chemical 

and Metallurgical Engineering, stressed the disparity in critical mineral 

identification among nations. “China recognises over 80 minerals 

critical to its economic development, while the UK identifies 34,” 

said Dr Malumbazo. “In contrast, South Africa is lagging in defining 

critical minerals based on its industrialisation efforts.” 

Sietse van der Woude, Minerals Council of South Africa, emphasised 

that coal was identified as a critical mineral in ensuring energy 

security and addressing energy poverty in Africa. “The question is 

now, what does that mean for coal?” asked Van der Woude. “Does it 

mean that all coal mining companies will have to sell their coal to 

the power utility at a much lower price than international prices? Or 

does it mean that we now are going to ban all coal exports because 

it’s now a critical mineral?” 

Both Van der Woude and Malumbazo highlighted that defining 

critical minerals had to revolve around growing the local economy 

and creating jobs. Malumbazo added that while many African 

countries, including South Africa, were primarily involved in mining 

critical minerals, they still lacked downstream value addition. “These 

nations need to integrate into the downstream segment of the critical 

minerals value chain, as it is pivotal for economic growth,” she said. 

Van der Woude advised this needed a closer look. “Instead of 

universally mandating beneficiation, we need to analyse each mineral 

and its value chain individually,” he added. 

Precious metals refinery at Sibanye-Stillwater. 

Building on the new focus areas of research at its DigiMine Laboratory, the Wits Mining Institute 

brought together industry experts at its annual seminar which delved into crucial topics shaping 

the future of mining, such as integrating critical raw minerals for the transition, the evolving 

landscape of circular mining and minerals as well as the growing need for waterless mining. 

WATERLESS MINING TECHNIQUES 

South Africa’s mining industry is undertaking a transformative 

approach to its water usage, including advanced water recycling 

and sustainable dust suppression. Implats corporate water specialist 

Murendeni Makhado explained that waterless mining initiatives aim 

to create closed-loop systems where water is continuously reused 

and recycled. “This reduces the draw from external freshwater 

sources,” said Makhado. 

Sibanye-Stillwater Rustenburg. 


CIRCULAR MINING 

“Our innovative approaches, such as using recycled water and 

transitioning to solar power, not only reduce our carbon footprint 

but also enhance operational efficiency and financial viability,” 

said DRD Gold CEO, Niel Pretorius. “Repurposing redundant mine 

infrastructure and tailings has allowed us to restore the environment 

and positively impact nearby communities, ensuring a sustainable 

legacy for future generations.” DRG Gold has become a waste-neutral 

enterprise, mitigating environmental impact while generating 

substantial economic and social benefits. 

One of the key opportunities he underlined was the extraction 

of value from previously deemed unrecoverable low-grade ores. 

“Through optimising processes, leveraging economies of scale and 

deploying cutting-edge technology we have been able to mine and 

rehabilitate several operations, including tailings dams.” 

University of Cape Town professor, Jenny Broadhurst, noted that 

governments and policymakers play a pivotal role in incentivising 

circular mining practices and creating supportive regulatory 

frameworks. “One of the key barriers to these circularity efforts is 

the existing legislation and regulation. Although there are policies 

at a higher level that should support these initiatives, the reality is 

often the opposite.” 

She also highlighted the importance of collaborative efforts between 

industry and regulators at both local and national levels. “The burden 

should not solely fall on governments; mining companies must work 

with regulators and local governments to create an environment 

where circularity is not just encouraged but enabled.” 

Mzwandile Buthelezi, group head at Implats and chair of the WMI 

Industrial Advisory Board, highlighted the importance of traceability of 

materials, a concept gaining traction among investors. He noted that 

mining companies are working together to define the best methods 

for material traceability – to establish transparency in the supply 

chain. This collaborative approach signifies a shift toward openness 

and accountability, as the industry strives to share information openly 

with communities and investors. 

Klipfontein open-cast mine, Sibanye-Stillwater. 

The power module is lifted into the hydrogen heavy-haul electric truck being assembled at Anglo American Mogalakwena PGMs mine in South Africa. 

22 23

MINING 

Bathopele mine in Rustenburg, Sibanye-Stillwater. 

She further highlighted the role of innovation and technology 

in achieving this goal, such as the need for internal efficiency 

improvements and reducing water losses due to evaporation 

and seepage. 

Professor Craig Sheridan, director of the Centre in Water Research 

and Development, and Professor Thokozani Majozi (executive dean 

of the Faculty of Engineering and Built Environment and active 

researcher in water process engineering) noted that mining has 

a small water abstraction footprint; however, its impact on water 

resources, particularly in terms of environmental contamination, is 

substantial. “Keeping water within the mining processes can mitigate 

environmental contamination,” said Professor Sheridan. 

Makhado added that there was now a shift from internal water 

management to external water stewardship, considering the impact 



FUTURE SMART MINING: THE REALITY | Talesmith 

of mining activities on the entire catchment area, communities, 

municipalities and other industries. 

DIGITAL TECHNOLOGIES 

Sibanye-Stillwater, senior vice president of digital transformation, 

Werner Swanepoel, pointed out that South Africa is not as disconnected 

as is often perceived. 

“We are quick to adopt technological innovations,” said Swanepoel. 

“However, the key challenge lies in ensuring comprehensive end-toend 

connectivity and addressing the issue of cybersecurity, which 

is an integral part of the implementation of new technologies in 

mining. While pushing technological boundaries is crucial, it is 

equally essential to prioritise cybersecurity to safeguard these 

digitalisation efforts.” 

WMI Sibanye-Stillwater DigiMine head, Ahsan Mahboob, stressed 

the role of education, training and knowledge-sharing in shaping the 

future of mining technologies. Mahboob highlighted the intrinsic 

relationship between technology and the people using it. 

This gathering of top minds within the mining sector underscored 

the industry’s collective commitment to finding sustainable solutions 

and fostering collaborative efforts to tackle pressing challenges. The 

discussions not only highlighted the urgency of these issues but also 

showcased the shared dedication of industry leaders, researchers 

and experts in driving positive change 

RE-SOLVE 

your water issues 

Re-Solve Consulting is dedicated to tackling the complex developmental challenges faced by 

South Africa in the realm of water service delivery. The company is committed to preserving 

and saving our water sources through a range of cost-effective solutions. 

Re-Solve’s holistic approach to meeting clients’ needs underpins 

its commitment to making a difference by preserving and 

saving increasingly at-risk water sources. 

Operating countrywide, Re-Solve’s client base includes public 

and private sector entities, municipalities, metros, utilities, research 

organisations, international and local development agencies as well 

as mining and industrial companies. 

The company also collaborates with a network of partners ranging 

from financial institutions to water testing laboratories to ensure 

clients receive the best service and tailored solutions to meet 

their needs. 

Over its 18 years of operation, the company has completed more 

than 200 projects involving the provision of advanced water and 

environmental engineering solutions to resolve issues around water 

service delivery, provision and maintenance of infrastructure, system 

inefficiencies, application of technology, institutional arrangements 

and capacity development. 

Re-Solve’s cost-effective interventions 

have resulted in drastic water savings 

and reduced water losses for its clients. 

Services offered include supply and demand management, project 

planning, contract administration and developmental engineering. 

Re-solve operates according to the highest international standards 

and constantly innovates to ensure clients have access to the most 

advanced technical skills and technology. Re-Solve’s cost-effective 

interventions have resulted in drastic water savings and reduced 

water losses for its clients. 

Re-Solve Consulting is a trusted partner for those seeking innovative 

solutions to the water-related challenges faced by South Africa and 

other sub-Saharan countries. 

Email: info@re-solve.co.za 

Website: www.re-solve.co.za 

WATER 

PROJECTS 

Working across the public and private sectors, Re-Solve has 

completed several major projects, including: 

• Remediation interventions of water and sanitation supply 

at rural schools 

• Undertaken several water loss projects for various municipalities 

• Implemented shared cost and water savings initiative for 

national government departments 

• Water use licence agreement, preliminary dam design and 

environmental impact assessment for a major diamond mine 

• Design and construction of road, stormwater, water and 

sanitation infrastructure for a proposed housing development 

for a national property development group 

• Assessment and installation of bulk water meters and 

management information systems for various municipalities 

• Assessment of unaccounted water programmes for various 

metros. 

WATCH VIDEO 

24 

25

WATER 

WATER 

EUTROPHICATION 

Eutrophication is a phenomenon that has adverse effects on freshwater systems worldwide when caused by the effects of human 

activity. A body of water, such as a dam, is deemed eutrophic when it undergoes high primary production of organic compounds due 

to an overload of nutrients. This over-production of compounds results in algal blooms which may have negative implications for water 

quality. Among other impacts, eutrophication leads to oxygen deficiencies in the system. South Africa has some of the most enriched 

surface water in the world and thus eutrophication presents a major problem. 

The Water Research Commission (WRC), a statutory institution established by an Act of parliament, has been extensively involved in 

eutrophication research since its inception in 1971 and has published many research studies on the topic. 

South Africa’s 

MINING WATER UPDATE 

We are currently facing an onslaught of water shortages and shedding/shifting in our metros 

that we thought would be too large to collapse. Are our mines too large to collapse as their water 

security is threatened? What are the potential solutions as we strive to ignite our economy? 

Mandela Bay has suffered severe water shortages due to drought 

and collapsing water systems causing economic uncertainty and 

high costs for major industries using groundwater that must be 

treated expensively at their cost. 

Business continuity has been severely impacted in these coastal 

metros due purely to inadequate water security provision by local 

government. Only the most resilient water assets will be able to survive 

the climate change onslaught the globe is experiencing. 

The mining sector faces similar challenges and will have to 

inculcate with local government the best global water practices 

to ensure its survival. Will the mining sector afford this? And will 

local government be able to come to the party? 

Water has now become a highly contested resource in South Africa 

due to its general over-allocation for over two decades and the poor 

state of water distribution systems. The fiscus has also come under 

Only the most resilient 

and best-managed 

water assets will be able 

to survive the climate 

change onslaught. 

OPINION PIECE BY BENOÎT LE ROY, SA WATER CHAMBER CEO 

Water is crucial for mining. When gold mining started in 

the late 1800s in South Africa, sophisticated utility-scale 

water services were established, and the then largest 

inter-basin water transfer schemes were set up to secure water 

for the blossoming Witwatersrand. Villages were established in 

the mining areas and semi-independent urban settlements were 

funded, managed and kept going by the mines themselves. 

Other basic services such as transport and waste were also established 

by the mines out of necessity. Mining companies understood over a 

century ago that their operations could only exist with basic services 

such as water and sanitation that were provided by them and they 

did this very successfully for a century or so. 

In the late 1990s as the democratic dispensation rolled out, the new 

demarcation of the country took place and within that process, the 

mining towns became part of local government in all aspects. The 

decline of basic services with notable water shortages came to the 

fore as the new architecture showed its abject flaws. Without water 

security in the mining towns, it becomes impossible to attract and 

retain the required skills leading to significant inefficiencies and the 

marginalisation of mines with over 6 000 abandoned mines registered 

and over 2 000 classified as “high risk” to the public. This has resulted 

in major environmental catastrophes and water pollution. 

The tailings and mine-impacted waters will have to be addressed 

to protect the water reserve that is already heavily eutrophied and 

polluted by dysfunctional sewage systems. The irony is that polluting 

mine-impacted water can be recovered as process and potable water 

with technology deployed over a decade ago by the private sector in 

the coal mining space – with 99% water recoveries. The resultant salts 

are reused as raw materials for the construction industry with other 

offtakes still underutilised, for example, green hydrogen. 

We must start practising a circular economy approach that not only 

addresses the water pollution issues, but also generates new jobs 

while ensuring that precious raw materials are reused and repurposed 

sustainably. So, the technology clearly exists but unfortunately, it’s not a 

government priority as society is not pressurising the issue adequately, 

yet we will be forced to as our future depends on it. 

A relatively new phenomenon affecting our water security has 

made its impact very clear, climate change. The resilience of our 

poorly managed water systems has resulted in many issues with their 

frequency on the rise in South Africa and globally. 

The metro of Ethekwini was ravaged by two floods recently 

destroying its collapsing sewage systems leading to significant 

drops in tourism due to the ongoing river and sea pollution where 

most beaches are continuously polluted. The metro of Nelson 

significant pressure resulting in most programmes identified in the 

2018 Water and Sanitation Masterplan being delayed mostly due to 

insufficient funding from the public sector with shortfalls anywhere 

between R33-billion to R90-billion per annum for the planned period 

of 2010 to 2020. This means that the delays in implementing the 

masterplan will only serve to increase water insecurity, decrease 

investor confidence and increase the competition to access water 

for mining operations and its supply chains. 

The public capacity constraints lend themselves to private sector 

participation as enshrined in the National Infrastructure Plan 2050. 

However, institutional and regulatory strengthening will be required 

to attract this quantum of private investment given our poor track 

record of late. The opportunity for the private sector to chart a new 

water security future with the public sector bodes well for the mining 

industry as collaborative infrastructure programmes will be tailored to 

suit all stakeholders – hopefully, more expediently and transparently. 

In conclusion, water security in South Africa is now a key issue 

with the mining sector that is not excluded as water cuts across all 

industries and requires urgent, collaborative and decisive action to 

arrest the decline and rebuild. 

26 

27

ENERGY 

ENERGY 


Figure 1. Falling prices for renewables make it harder to justify future projects. [Note: Data is for Germany.] 

HYBRID PROJECTS: 

a VALUE ENGINE 

for renewable energy developers 

Renewable energy is entering a new chapter. With the success of utility-scale photovoltaic 

and wind power projects, industry and political leaders are calling for rapidly expanding 

their energy system’s carbon-free generation. 

On the revenue side, the price for renewable power, which covers 

only peak or intermittent demand, is falling well below prices for 

the baseload power provided by fossil-fuel plants. The “duck curve” 

with its oversupply of PV-generated electricity during the day and 

steep price increases in the evening, is no longer unique to sunny 

California and is spreading across Europe. In Germany, we expect 

PV capture rates to decline from today’s 77% to 67% of average 

day-ahead wholesale prices in 2030, resulting in a 10% revenue decline 

for a given PV project (see figure 1). At the same time, subsidy schemes 

for stand-alone projects are being phased out. 

In a nutshell, developers must find smarter ways to increase their 

capacity installations and maintain profitability of their projects. 

THE HYBRID OPPORTUNITY 

An increasingly often-applied strategy to meet these challenges is 

the hybridisation of renewable projects, besides sector coupling 

and virtual power plants. Hybrid projects are defined as onshore 

co-located and co-controlled generation or storage technologies 

(no virtual hybrid plants), mature, readily available technology 

(PV, wind and batteries; not hydrogen, geothermal, floating solar, 

hydropower or pumped storage) and utility-scale projects. 

When thinking about hybrid projects, developers will need to 

answer three questions: 

Strategy: can hybrid projects contribute to our strategic goals? 

Going hybrid is not a strategy, but it must support a strategy. Although 

individual projects still must make financial sense, they should also 

contribute to broader strategic goals. Typical objectives hybrid 

projects can contribute to through their value levers are maximising 

capacity deployment, broadening and diversifying the portfolio or 

raising overall margins. 

When pursuing hybrid projects, developers also need a realistic 

assessment of where they can be successful. Which hybrid combinations 

are mature: storage or not? What kind: PV or wind or both? Greenfield 

or brownfield? That assessment depends on the developer’s capabilities 

and aims in specific technologies, markets and project roles. 

Developers must find smarter ways 

to increase their capacity installations. 

BY KEARNEY CONSULTING* 

Developers are eager to deliver and have set aggressive 

targets for new capacity installment. However, a paradigm 

shift across market conditions, grid availability, land use, 

labour shortage and supply chain disruptions is putting these 

goals at risk. Achieving the next level of renewable penetration 

requires the next evolutionary step in project development: hybrid 

projects – combining multiple technologies in one site, such as 

wind and solar, or either one with battery storage. 

A NEW CHAPTER 

Global renewables are scaling up tremendously with European 

capacity additions growing at 20% CAGR in utility-scale solar and 

8.5% in onshore wind. With encouragement – and pressure – from 

governments, developers are setting bold growth targets – from 

national electric giants to pure-play developers. ENEL Green Power, the 

renewables arm of the big Italian utility, aims to triple its renewable 

capacity; the Portuguese EDPR is adding 50GW; and German RWE is 

adding 35GW, all by 2030. Several large oil and gas companies are 

jumping in as well, with BP considering 50GW of capacity. 

Meeting those goals, however, will require developers to change 

their approach, for business as usual will not be sufficient. Suitable 

sites with high energy yields are becoming scarce, and grid expansion 

is barely keeping up with added generating capacity. Already, a lack 

of grid connections has become the main bottleneck for projects in 

Spain and the Netherlands. Supply chain issues further cloud the 

picture by lengthening lead times and raising costs. Large-scale 

substations now have delivery lead times over three years. Wind 

turbine prices have increased by a third year-over-year. 

28 

29

ENERGY 

ENERGY 


Hybrid project types and maturity 


Value proposition: driver tree and value levers vs standalone cases 

Figure 2. Battery storage hybrids are proven at scale, while multigeneration hybrids show initial larger-scale projects. 1 Defined as indicative share of 

hybrids of planned projects involving main generation technology. 2Due to evaporation reduction for hydro and panel cooling and resulting efficiency 

gains for solar PV. 

Figure 3. Hybridisation of projects can improve project values and accelerate the capacity extension. 1 Value potential in relation to standalone 

business cases (eg what additional value levers does a wind + BESS project have against two standalone projects?) 

Suitable sites with high energy 

yields are becoming scarce. 

Markets: how mature are hybrid projects, and where? 

Hybrid projects are becoming common in Europe and the US. For 

PV, wind and battery, the technology is mature and reliable at scale 

(see figure 2). Governments are increasingly promoting this shift with 

supportive regulations, simplified permitting and subsidies. The US 

grants tax credits for onsite battery electric storage that amounts 

to a 30% to 62% capex subsidy. In Germany’s latest auction, solar 

and battery energy storage system hybrid projects benefited from 

25% higher tariffs compared with standalone PV projects. 

Value proposition: which levers support hybridisation? 

Not every renewable project can or should go hybrid. To assess 

the value, developers need to consider how much the move would 

improve their key target metrics, such as the project’s profitability 

(NPV/MW) and how much additional capacity per year the added 

investment would realise (see figure 3). 

Hybridising a project can boost profitability in multiple ways: by 

achieving higher power purchase agreements (PPAs) through offering 

a more stable generation profile, postponing electricity sales to higherprice 

times and realising regulatory incentives for hybrid projects. Few 

hybrid projects, as currently configured, are big enough to deliver true 

baseload-level electricity in PPAs. But the hybrid combination still 

makes projects far more amenable to what utility and C&I customers 

need now. Both kinds avoid or soften the “duck curve” problem. 

Project value is created by minimising curtailment (increasing 

the total annual production volume) and by achieving a lower 

specific (per MWh) capex through shared grid access. Indeed, a 

hybrid PV + battery project will certainly achieve a higher utilisation 

of its grid connection capex than a standalone PV and standalone 

battery project with separate grid access points. Opex savings 

are also possible, in technical management as well as operations 

and maintenance, but require a critical size of technology types 

and platforms. 

Hybrid projects reduce imbalance costs by minimising forecasting 

errors. A second onsite technology diversifies risks from unpredictable 

weather, while storage irons out unwanted variable generation. Hybrid 

projects may offer lower hurdle rates for experienced developers 

through improved diversification. 

As for capacity addition volume, hybrids enable capacity extensions 

at existing grid access points (circumventing bottlenecks), allowing 

developers to deploy more capacity in shorter time. Hybrids tend to 

take less time to realise than two separate generating sites because 

local stakeholders are known and developers can use their existing 

talent in joint development. Hybridisation can help meet increasing 

regulatory requirements. The hybridisation of renewable energy 

projects thus presents a large value opportunity in both project 

profitability and capacity deployment. 

THE ROAD AHEAD 

While the starting point is different for each developer based on 

the maturity of technology and operations, the steps to a successful 

hybrid project organisation are alike. Organisations should start their 

hybrid projects journey with a view on opportunities, then build 

capabilities and move deliberately toward excellence. 

Phase 1: estimate the potential and set the strategy 

A hybrid strategy starts with assessing how hybrid projects can 

contribute to strategic goals such as maximising generating capacity 

or firming up the portfolio. If there is a role for hybrid projects, projects 

in the pipeline or portfolio are evaluated through a standardised 

quick assessment. This covers, for example, factors such as the local 

grid situation, the regulatory environment or the co-located resource 

potential for PV and wind. 

Finally, some strategic guidelines are set: is the company willing 

to invest in building up capabilities in a new technology such as 

onshore wind because it has hybrid potentials in the portfolio? Or is 

the existing technology focus a core part of competitive advantage? 

Which types of projects, which countries or regions and which value 

chain roles are in scope? 

Phase 2: build capabilities and a track record 

First, select a pilot project with a lower risk profile. This can be a 

smaller or brownfield project requiring repowering or one with clearly 

favourable hybrid economics. Working with partners is a sensible 

strategy for early hybrid projects. This is especially true for projects 

using technologies that the developer has no experience with so 

Hybrids are more than simply 

adding on a second asset. 

far. Using the right risk allocation and project entity structuring (for 

example, around individual technologies) helps manage the cost of 

capital for initial projects as both developers and financiers build a 

track record and get comfortable with hybrid projects. 

Phase 3: optimise operations 

After gaining experience, developers should aim to industrialise 

their hybrid project development. That can mean building out an 

overarching competence centre for hybrids to overcome silos between 

PV and wind development teams or building up differentiated 

capabilities, such as in integrated project techno-economic modelling. 

It means fine-tuning processes for hybrid projects, which might 

struggle with different development timelines of wind and solar 

PV, for example. 

If done in-house, hybrid projects might also mean advancing 

technology and capabilities of trading organisations working with 

hybrid projects to capture as much value as possible. 

Systemic change is happening in global electricity markets: the 

rapidly growing share of renewable energy will cannibalise its 

returns without flexibility, and markets are increasingly incentivising 

flexibility. This will require renewables players to evolve their 

development practices into hybrid projects to ensure value creation 

in their projects. But doing so requires substantial structural, 

technological and operating adjustments. 

Hybrids are more than simply adding on a second asset. To realize 

the true potential of hybrid and address the rising imbalance in 

power capacity, developers will need to do more than pivot to 

hybrid. They’ll need a broad reworking of investments, outlook 

and practices. 

30 31

ENERGY 

Going hybrid is not a strategy, 

but it must support a strategy. 

ENERGISING TOMORROW 

In a significant step towards a resilient future, Scatec ASA has 

officially started producing and supplying electricity to the national 

grid from the three Kenhardt plants in the Northern Cape province. 

The Kenhardt project is positioned to make a notable impact 

on the renewable energy landscape as one of the world’s first 

and largest hybrid solar and battery storage facilities. With 

installed solar capacity of 540MW and battery storage capacity of 

225MW/1 140MWh, the project delivers 150MW of dispatchable 

power from 5am to 9.30pm year-round to the national grid under 

a 20-year PPA with Eskom. 

With a total investment of USD1-billion, the project debt is provided 

by a group of lenders which includes The Standard Bank Group as 

lead arranger and British International Investment. 

“This is more than just a power plant; it’s a testament to the 

limitless potential of integrating solar and battery storage to meet 

the evolving energy needs of today and tomorrow,” says Terje 

Pilskog, CEO of Scatec. 

A hybrid solar and battery storage plant integrates solar and 

battery technologies, overcoming intermittency challenges and 

bolstering grid stability. With the ability to deliver reliable power in 

low or no sunlight, the integrated storage enhances overall reliability. 

Dispatchable power production and the release of stored energy 

during peak demand make these plants ideal for meeting regionwide 

energy needs during high consumption periods. 

LOCAL 

CHALLENGES 

DEMAND LOCAL 

SOLUTIONS 

ACTOM, your local renewable energy project solutions partner. 

Through our innovative turnkey product range and dedicated team of 

experts, we are firmly rooted in our commitment to the growth and 

empowerment of our continent’s sustainability energy needs. 

The Kenhardt plants in the Northern Cape province. 

*Authors: Hanjo Arms, partner, Oskar Schmidt, principal, Jan Weber and Tobias Menzel, Consultants. The authors wish to thank Rebecca Meier and Daniel Handschuh for their contributions to this article. 

32

Strive for Net Zero 

while saving money at the same time! 

Rooftop, solar carports, ground-mounted solar, and agrivoltaics represent the best-value energy 

available to the energy customer in South Africa. 

Blue Sky Energy is an expert in the design, procurement and construction of such plants. 

Battery energy storage installations provide access to solar energy daily during peak hours when the 

sun is not shining and enable users to bridge their primary energy needs through grid interruptions. 

While the levelised cost of hybrid solar and battery storage installations is significantly greater than 

solar PV only, appropriately sized solutions can be commercially feasible. 

Would you like to know if your property or business can achieve energy security at the same cost 

or less than what you are paying currently? 

Did you know that Section 

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such as agrivoltaics and 

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Have you considered 

putting your spare space 

to work? Whether you 

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bring them to life through 

solar PV installations that 

create energy and highvalue 

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tunnels for agriculture. 

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CONTACT THE EXPERTS AT BLUE SKY ENERGY RIGHT NOW!

ENERGY 

Getting the 

best return 

on your 

SOLAR PV 

INVESTMENT 

With the cost of electricity rocketing up beyond R3.50/kWh and increasing exponentially yearon-year, 

getting the best payback on your solar investment should be a key motivator and 

objective. Uncover how to scale your solar PV system to get the very best returns. 

BY TERESA KOK, ONE ENERGY GROUP 

Every kW that you generate from your 

panels is one less that you will need to 

draw (and pay for) from the grid. 

UNDERSTANDING THE LIFETIME COST 

There is a perception that lithium-ion phosphate batteries installed 

as a key component of a hybrid PV system are expensive. This is 

simply not true if one calculates the average cost per kW over the 

life of the battery. The battery energy cost is significantly lower than 

the cost per kW than Eskom or your local council supply costs, and 

massively lower than the cost of a diesel genset KW. 

Consider the following calculation based on a 5kW battery 

costing R30 000: 

• With a Depth of Discharge (DOD) of 80% (ie 80% of usable 

capacity which is a protective mechanism that extends the 

lifespan of your lithium-ion battery) – therefore 4kWh usable 

power per cycle 

• Battery lifespan = 6 000 cycles 

• Total power over life of battery = 6 000 cycles x 4kWh per 

cycle = 24 000kWh 

• Average cost per kWh = R30 000 / 24 000kW = R1.25 per KWh 

Now compare this to the current Eskom residential cost of R3.51 

(Ekurhuleni tariff B). Generator sets run at an insanely high average cost 

of between R6 and R8 per kWh, and need regular maintenance which 

adds to costs. Your strategy should be to cycle the lithium batteries 

and increase the battery capacity to maximise the installed inverter 

and panel array capacity as close to daily electricity consumption as 

possible. With today’s high energy prices and the rapidly reducing 

costs of quality battery storage, more homes and businesses are 

better off looking at greater battery storage capacity. 

ENERGY 

A QUALITY HYBRID INVERTER IS KEY 

The inverter you choose is an important aspect for realising the best 

solar return on investment (ROI) – opt for a reliable hybrid inverter 

with a 10-year warranty. Remember that your solar panels have 

long lifespans of up to 25 to 30 years and require little maintenance, 

while lithium batteries offer lifespans of anything from 6 000 to 

8 000 cycles (16 to 22 years at one cycle per day), so choose a good 

quality inverter that will perform as dependably, for as long. 

One of the key issues with cheaper, “off-grid” inverters is that they 

are unidirectional so the solar power can only address the essential 

services circuits, and savings cannot be made on the higher load 

items that are not on the backup side of the distribution board. 

More sophisticated hybrid inverters are bidirectional, so they allow 

savings both upstream and downstream of the inverter, drawing 

power from both the grid and battery storage in a coordinated 

exercise to maximise the power you use from self-generation, and 

only drawing from the grid when it’s necessary. 

CONVERT TO A SOLAR GEYSER 

An electric geyser typically accounts for 30% to 40% of your monthly 

electricity usage and cost, so this is the most crucial starting point 

to reducing your daily electricity load, and which means you can 

also buy a smaller and more affordable PV solution. On a R3 000 

electricity bill, you’ll save around R880 per month, amortising your 

outlay in just over two years, that’s without even taking annual 

electricity cost increases into account. 

THE SOLAR PAYBACK PERIOD 

The “solar payback period” is the time it takes to recoup your initial 

investment in a solar power system. Most residential systems end 

The proper installation and management of a 

solar PV system is a complex undertaking. 

It all starts by getting a thorough electricity usage and needs 

analysis done to determine the best system design to ensure 

your system can equally generate and supply enough power to 

reduce your grid electricity usage and cost as much as possible. 

MATCH DEMAND WITH SUPPLY 

Proper monitoring and analysis of your electricity usage will reveal 

when your peak electricity demand happens and how much you 

use on various circuits. From here, you can design a system that 

generates what you would normally use from the grid. Monitoring 

shows you which appliances or devices are pulling the biggest 

loads, allowing you to reconsider not only their time and duration of 

usage, but whether there are more energy efficient options to take 

into account. Consider installing a timer on your geyser to manage 

the time slots of when it will draw power for water heating – or 

better still, convert to a solar geyser. 

ADD SOLAR PANELS 

Installing an inverter and battery system for back-up only without 

solar generation capacity (panels) means that you need to use the 

grid to recharge your batteries when the power comes back on. 

So, although you are in no better or worse off position in terms of 

cost of grid electricity, you are also not saving anything on your 

electricity costs. 

By adding solar panels for self-generation, every kW that you 

generate from your panels is one less that you will need to draw (and 

pay for) from the grid. For businesses where your main electricity 

consumption happens during daylight hours, which is also when 

the sun is supplying the bulk of your electricity needs, this is an 

absolute win. When selecting panels, invest in the highest-grade 

monocrystalline panels you can – premium efficiency translates 

directly into better energy output and savings over time. 

If your PV solar array produces more energy than you need, certain 

municipalities allow feeding back into the grid, and the utility pays 

for this excess power generated by your solar panels, essentially 

offsetting what you use from the grid, against what you feed back 

in. However, many feed-in tariffs are not yet at a point where it is 

worth spending money on a larger PV system, and often requires a 

costly upgrade to your electricity meter for your account. For now, 

the most savings you can make is by storing your excess generation 

in a bigger battery bank, and then using your own energy when you 

need it. Your best option is to get as close to 90% or more of your 

electricity usage coming from self-generation. 

ADD BATTERY STORAGE 

There’s every reason to bulk-up on battery storage not only for when 

the grid goes down, but to reduce your usage from the grid as far as 

possible as grid electricity costs soar. Your intelligent hybrid inverter 

will ensure that all the energy generated by your solar panels will 

first go towards powering your property and all the circuits that 

are connected to it, and then diverting any surplus to charge your 

batteries up again so they are ready to carry you through the grid 

outages and when the sun is no longer shining. If you have enough 

battery capacity and your system is programmed correctly, when 

your property starts to draw from the grid when the sun goes down, 

the battery will step in and supply the energy saved in your batteries 

from earlier, instead of you drawing from the grid. 

36 

37

ENERGY 

ENERGY 

Your best option is to get as close 

to 90% or more of your electricity usage 

coming from self-generation. 

up performing as a solid investment, in which you yield a return. The 

payback period length can vary due to differences in peak sunlight, 

solar array size and other factors. Many homeowners report breaking 

even on their investment within five to seven years, but with the 

skyrocketing cost of electricity each year, this payback period is 

coming down all the time. You can calculate the solar payback period 

with the following formula: 

Initial system cost / annual electricity savings = payback period. 

(Break-even) 

ROI FOR YOUR SYSTEM 

Return on investment (ROI) is related to the solar payback period, but 

instead of calculating the time it takes to break even, ROI calculates 

the total amount of money and savings that a PV array will provide 

over its lifetime and the expected utility costs for the same period. 

Consider the following example: On an electricity bill of R2 450 per 

month, which is around 700kWh usage per month (23kWh/day) at a 

tariff of R3.50 per kWh (2023), the system spec and cost looks like this: 

System spec 

• 5kW inverter 

• 10kWh lithium-ion batteries (upscale your batteries for reasons 

explained earlier – its cheaper per kWh than Eskom/council) 

• 4.3kW solar panel array 

Price, fully installed with all materials and COC: R148 000 

This size system will generate between 20kWh to 22kWh per day – 

90%+ of your daily electricity needs. 

On an upfront purchase 

• Based on an 18.65% electricity tariff increase this year and 12.74% 

for the next year and a very conservative 5%/pa thereafter (this 

figure is going to be higher as it does not factor in the increases 

that local councils will add on top of this). 

• Your breakeven point is just over five-and-a-half years based 

on electricity savings. 

• Your ROI is based on a conservative escalation of 5% in electricity 

tariffs from year three. Your cumulative savings on electricity 

costs will be R350 000 after 10 years and R940 000 after 20 years – 

this is a savings multiple of 6.3 on your original investment 

of R148 000. 

On a finance option 

• Based on prime interest rate, with a finance term of 60 months 

with no annual escalation, your monthly repayment cost is 

going to be around R3 580. (Figures may vary based on your 

credit rating and rates applied.) 

• Your savings on your monthly electricity bill is around R2 200 

per month in year one and which then escalates as does the cost 

per kWh of grid electricity – this saving will offset a significant 

portion of the monthly loan repayment. 

• Your system will be fully paid off in five years (60 months) and 

you will own it, and for the rest of the 15 to 20+ years of the 

system’s lifespan, you will be generating your electricity for 

free, with less than a 10% reliance on grid electricity. 

CHOOSE YOUR PARTNER CAREFULLY 

Getting the best return on investment in renewable power, whether 

for your home or your business, will be based on the initial cost 

to install your system, the amount of energy it will produce and 

store, and what this will mean in terms of electricity bill savings, as 

well as the quality and performance of the equipment, installation 

and ongoing management of your system. Enlist the help of a 

renewable energy installer that can fully explain your options 

and show you the calculations. And remember with the right 

set-up from the start, you can expand your system capacity as 

your budget allows and your needs change. 

Work with a credible, qualified and accredited renewable 

energy partner that will be around for back-up, support and 

ongoing consultation over the lifespan of your system – that’s a 

good 20 to 25 years. 

The proper installation and management of a solar PV system 

is a complex undertaking that requires a deep understanding 

and experience of the various technologies on the market that 

are suited to the specific circumstances of every client and site. 

ACCELERATING the 

TRANSITION 

Air Products South Africa, a 50/50 joint venture between Air Products and Chemicals (USA) 

and Remgro, has operated locally since 1969. From the solid foundation of its existing core 

industrial gas business, the company is accelerating the transition to a cleaner energy future. 

Green Economy Journal caught up with the new MD, Charles dos Santos. 

Congratulations on your appointment as MD of Air Products, 

Charles. Please share your career trajectory to this point. 

I studied Chemical Engineering at the University of the Witwatersrand. 

As I had a business interest, I continued to study part-time for a BCom 

at the University of South Africa. I started at Air Products in 1994 in 

the bulk sales department, but soon moved into plants and projects 

business development. I was responsible for securing key growth 

projects that lead to my promotion to departmental manager. After 

many years in that role, I was offered an opportunity to become 

the managing director of a company called The Combustion Group, 

which gave me experience leading an organisation and I learnt 

more about energy (natural gas) and power generation. 

Following on an unexpected retirement, I was offered an opportunity 

to return to Air Products as the general manager of the on-sites 

business unit in 2016. From 1 February 2024, I will be taking over 

as managing director from Rob Richardson, who is retiring. 

Please tell us about Air Products. 

Air Products manufactures and distributes (via pipeline, bulk 

tankers or in cylinders), a variety of industrial and specialty gases 

and supplies related equipment and engineering services to 

customers in industries including steel, petrochemical, mining 

and metal processing, manufacturing, food and beverage, among 

others. Founded in the USA in 1940, Air Products operates in over 

50 countries. Air Products aims to be the safest company to work 

for and strives to provide excellent service to our customers. 

Hydrogen has the potential to be a game-changer in the quest 

for sustainable transportation. Please expand. 

Zero-emission hydrogen fuel cell vehicles can decarbonise heavy 

modes of transport, like buses, trucks, trains and ships. However, 

this will require the commercialisation of economical hydrogenpowered 

vehicles. A 20% reduction in global emissions is possible 

if hydrogen is utilised to decarbonise heavy-duty transport and 

industry. Furthermore, this hydrogen will be produced locally from 

our abundant renewable energy resources, creating jobs locally, 

giving South Africa energy independence and improving our trade 

balance (as it reduces our imports of fossil fuels). 

Air Products is ideally positioned to lead in establishing a 

sustainable hydrogen ecosystem in South Africa. How so? 

We are an experienced, well-established South African hydrogen 

supplier. We have almost 150km of hydrogen pipelines supplying 

existing industrial customers in the Vaal Triangle and Springs. These 

A 20% reduction in global emissions 

is possible if hydrogen is utilised to 

decarbonise heavy-duty transport 

and industry. 

pipelines cross or are located close to major transport routes like 

the N1, N3, N17 and R59. We also have a fleet of hydrogen tube 

trailers and numerous hydrogen cylinders in circulation. 

Being part of Air Products globally, we have access to global 

best practices, technical support and know-how to leapfrog 

development phases and speedily roll-out the tried and tested 

and latest technologies. 

Please discuss the challenges associated with hydrogen refuelling 

infrastructure in South Africa. 

First, hydrogen is currently costly to transport over long distances 

and impractical to store in large quantities. Second, the current 

hydrogen infrastructure is primarily limited to regions around 

Gauteng. Capital intensive distributed hydrogen generation and 

pipeline systems will be more optimal. This would use the existing 

power grid infrastructure to transport renewable power to the 

hydrogen generation sites. Although upgrades are required to the 

South African power grid, these upgrades are needed anyway to 

meet the country’s electricity needs. 

As a starting point, it makes sense to focus on captive fleets (ie 

fleets that come back to base daily or only transport goods on set 

routes around which the infrastructure can be built). 

However, the elephant in the room is how will the South African 

economy be able to afford green hydrogen? The cost of green 

hydrogen will be higher than our traditional fuels. The capital cost 

of fuel cell vehicles is still much higher than diesel vehicles and the 

availability of vehicles is still very limited. The manufacturers do 

not have sufficient capacity yet to meet the needs of the market in 

Europe etc, which are much more attractive bigger markets with 

the appetite and ability to pay the premium for green mobility. So, 

this industry is potentially going to take some time to develop in 

South Africa. 

38 

39

MOBILITY 

MOBILITY 

Rapid shift to 

RENEWABLE ENERGY 

vital for 

EV transition 

“This has been a successful contributor to South Africa’s GDP and 

manufacturing output and employment, and we want it to have a 

sustainable future in South Africa.” 

How would South Africa transition to EVs when it can barely 

keep the lights on? 

Patel says that the pace of South Africa’s transport transition would 

be influenced by several factors, including the fact that the country 

was battling with an energy shortage (he adds that South Africa 

would need to “avoid a sharp rise in energy demand on the grid from 

electric vehicles while the grid capacity is being rebuilt”), its energy 

mix was dominated by coal (which means charging an EV wouldn’t 

be as green as it is in other countries), and it was still in the early 

stages of rolling out charging infrastructure. As a result, the Electric 

Vehicles White Paper argues that the transition to EVs is dependent 

on the national energy mix shifting to renewable energy. 

“If our grid remains coal-based, the climate change value to 

domestic consumers will be lower,” Patel adds. “So, we are backing 

a green dash to try to get greater levels of renewable energy on the 

national grid.” 

PHASE 1. BUILDING PRODUCTION CAPABILITY 

South Africa doesn’t manufacture EVs locally – this not only means 

buying one in South Africa would be expensive (as it would be 

imported), but the local automotive manufacturing industry (which 

serves some 500 000 jobs) is seriously at risk – 66% of South Africa’s 

light vehicle production is exported overseas, with most of those 

cars going to countries that are planning on banning ICEVs soon. 

The first phase of the White Paper focuses on building production 

capability for electric vehicles. 

“We don’t want to be relegated to being only an ICEV producer,” 

Patel says, warning that if the transition to EVs was poorly managed, 

South Africa would have to import EVs, and because it is reliant on 

exports, by 2030 South Africa would have a declining asset base. 

The transition to EVs is 

dependent on the national 

energy mix shifting to 

renewable energy. 

SA’s long-awaited Electric Vehicles White Paper was released at the end of 2023, with Minister 

Patel emphasising that the value of SA’s electric vehicle market will be realised only if our 

national energy mix seriously accelerates our renewable energy capacity. 

The Electric Vehicles White Paper provides the long-term strategy 

for South Africa to transition to electric vehicles, and makes 

the argument for a strong shift to more renewable energy, 

Trade, Industry and Competition Minister Ebrahim Patel says. 

“The grid has to become greener, not only for purposes of 

general climate change and to ensure a wider source of energy, 

but also because the value of the domestic market transitioning to 

electric vehicles (EVs) will only demonstrate itself if the charging 

infrastructure can pull energy that is a lot more renewable than 

currently is the case,” says Patel. 

The Electric Vehicles White Paper, which was approved by the 

Cabinet last year, aims to ensure South Africa becomes part of the 

global shift from internal combustion engine vehicles (ICEVs) to 

new-technology vehicles (which include battery EVs and hybrids). 

South Africa’s transport sector is the second biggest polluter 

after the power industry – accounting for 13% of the country’s 

CO2 emissions, with road transport accounting for 91.2% of these 

transport emissions. 

In addition, South Africa’s automotive manufacturing industry 

is seriously at risk if the country does not transition. The National 

Association of Automobile Manufacturers of South Africa (Naamsa) 

reported that three out of every four vehicles exported were destined 

for the EU and the UK, which have set bans on the sale of new ICEVs 

from 2035. 

“We’ve got to make this transition for climate change purposes. 

But also, for industrial policy purposes,” Patel says. 

Article courtesy Daily Maverick 

Does the grid have the capacity to support EVs? 

MJ Booysen, an engineering professor at Stellenbosch University 

whose research and projects focus on electrifying the transport 

sector, says, “The answer is … it’s a negative number.” 

However, there are private companies that provide off-the-grid 

charging stations. 

As of mid-2023, South Africa had about 350 public EV charging 

stations, and many companies plan to expand. 

Patel says that while off-the-grid charging is part of the solution 

and should be encouraged, “We see it still being useful for early 

adopters and at a modest scale. If you want to move significantly, 

you’re going to have to integrate it into a stable infrastructure that 

can take a high load factor.” 

Patel emphasises that this meant dealing with grid constraints, and 

while this White Paper is not South Africa’s Integrated Resource Plan 

(which lays out the future of the country’s energy mix), it “makes the 

argument for a strong shift to more renewable energy”. 

Mike Mabasa, the CEO of Naamsa, said many original equipment 

manufacturers were looking at technology that recharged the battery 

as the vehicle moved. Some EVs have replaceable batteries, “So you 

drive into a charging station and instead of waiting for two hours to 

have the battery charged, you have it swapped for another.” 

PHASE 2. STIMULATING DEMAND FOR EVS 

Mabasa says, “We are very pleased to note that the White Paper 

takes into account stimulation for demand in Phase 2 … because 

we recognise the fact that the government is managing a number 

of competing – both social and also economic – challenges.” 

South Africa has only about 2 300 EVs among some two-million 

passenger vehicles, which is a far cry from the rest of the world, with 

14% of all cars sold worldwide in 2022 (amounting to 10-million) 

being electric. 

42 

43

MOBILITY 

SA’s automotive manufacturing 

industry is seriously at risk if the 

country does not transition. 

“The world does need to make this change to a greener future. But 

it’s not as simple as it sounds to say, ‘Well, we’ll have a just transition, 

so there’ll be no losers,’” Patel acknowledges. 

“What do you do with the more than 100 000 service station 

attendants and mechanics? Because we don’t control technological 

development and it may be then everybody ends up charging the 

cars at home. 

“You have got to be able to navigate with a lot of thought and 

that is really what the White Paper does – and that is why it has 

taken a bit of time to get all of those things on the table to balance 

them carefully.” 

Battery energy 

storage powered 

by renewable energy 

is the future, and it 

is feasible in South 

Africa right now! 

Sodium-sulphur batteries (NAS ® Batteries), 

produced by NGK Insulators Ltd., and 

distributed by BASF, with almost 5 GWh 

of installed capacity worldwide, is the 

perfect choice for large-capacity stationary 

energy storage. 

Dr Norman Lamprecht, the executive manager of trade, research 

and exports for Naamsa, says that one of the inhibitors is the price 

differential between a battery electric vehicle and an ICEV is around 

52%, with no demand side-support in place to address this. 

“In many other countries in the world the governments provide 

an incentive such as cash grants or tax benefits to reduce the price 

gap in order to stimulate sales of EVs,” Lamprecht says. 

The lack of policy incentives from the government has been a big 

reason for South Africa losing the EV race and is one of the reasons 

this White Paper (which was meant to come out in 2021) is such a 

big deal. 

Patel says they expected the price differential to come down in 

the next eight or so years, adding, “It may be quicker. Technology 

always surprises everybody.” 

The cost-benefit assumption of the just transition 

Electrifying South Africa’s transport sector will contribute to the 

country’s global decarbonisation goals. 


ELECTRIC VEHICLES WHITE PAPER | Department of Trade, Industry and Competition (dtic) | 

[November 2023] 

A key characteristic of NAS ® Batteries is the 

long discharge duration (+6 hours), which 

makes the technology ideal for daily cycling 

to convert intermittent power from renewable 

energy into stable on-demand electricity. 

NAS ® Battery is a containerised solution, 

with a design life of 7300 equivalent cycles 

or 20 years, backed with an operations and 

maintenance contract, factory warranties, and 

performance guarantees. 

Superior safety, function and performance are 

made possible by decades of data monitoring 

from multiple operational installations across 

the world. NAS ® Battery track record is 

unmatched by any other manufacturer. 

READ REPORT 


Adoption of EVs has increased globally, driven in part by greater government incentives such as tax breaks 

and targeted subsidies for producers and consumers as well as demand trends. Several regulators have 

also decided to ban the sale of new Internal Combustion Energy (ICE) vehicles within the next 12 years as 

part of their contribution to achieving net zero emissions by 2050, including markets like the EU and UK. 

These global trends will have a significant impact on South Africa and its economy. Not only is South 

Africa the largest automotive manufacturing hub on the African continent, but it is also highly integrated 

into global supply chain that draws components from across the world, including the SADC region, and 

exports the final consumer product to more than 150 countries worldwide. As a larger number of countries 

transition both their consumer and production markets to EVs, the impacts will be significant for South 

African producers. The effective bans on ICE vehicles in key markets like the EU and UK will be profound, as 

they absorb half of South African auto production. 

Allowing the South African automotive industry to decline without the appropriate support is thus not 

an option for government. The automotive industry contributes significantly to the South African economy, 

ranking as the fourth largest in terms of output across all manufacturing sectors and contributing materially 

to export revenues; they account for a significant part of the regional development in provinces like Eastern 

Cape, Gauteng, and KwaZulu-Natal; and the industry creates and sustains large numbers of jobs and 

promotes skills development. 

This White Paper sets out the policy goals and actions which will be taken to support the transition 

towards a broader new energy vehicle production and consumption in South Africa, with an immediate 

focus on EVs. 

Provide for your energy needs from renewable 

energy coupled with a NAS ® Battery. 

Contact us right away for a complimentary 

pre-feasibility modelling exercise to find 

out how a NAS ® Battery solution can 

address your energy challenges! 

info@altum.energy 

www.altum.energy 

Altum Energy: 

BASF NAS ® Battery Storage Business 

Development Partner – Southern Africa 

44

MOBILITY 

Masslift RAISES THE BAR 

with the Mitsubishi Counterbalance 

Electric Forklift 

Masslift proudly presents the Mitsubishi 

Counterbalance Electric Forklift as a symbol 

of innovation and sustainability. As local 

businesses grapple with challenges such as 

power supply interruptions and soaring fuel 

costs, Masslift’s offering emerges as a steadfast 

ally in eco-conscious operational excellence. 

With the arrival of the new year, a heightened awareness of 

the imperative for sustainability permeates every aspect of 

our lives, with businesses, especially in the manufacturing 

and distribution sectors, reassessing their strategies for a more 

sustainable future. The Mitsubishi Counterbalance Electric Forklift 

seamlessly aligns with this ethos, delivering an eco-friendly solution 

that mitigates reliance on conventional fuel-driven alternatives. 

The transition towards electric forklifts is pivotal in curbing carbon 

emissions, harmonising with worldwide endeavours to address climate 

change. Mitsubishi’s commitment to sustainability is evident in every 

aspect of the Counterbalance Electric Forklift, from its purposeful 

design to its core functionality. Spanning a range capacity from 1.0 

ton to 5.5 tons, these forklifts are intricately tailored to meet the 

diverse operational needs of businesses, presenting a versatile and 

sustainable alternative to their traditional counterparts. 

ECO-MODE FEATURES 

The ECO-Mode embedded in the Mitsubishi Counterbalance Electric 

Forklift isn’t just a feature; it’s a game-changer. The ECO-Mode 

optimises forklift performance, syncing speed and power with 

energy conservation, ensuring your operations are eco-conscious. 

The ECO-Mode button becomes your conductor’s baton, leading 

your forklift through a harmonious blend of performance and 

sustainability. Speed and power are at your fingertips, while the 

promise of saving energy ensures that every lift is a step towards 

a greener future. 

LITHIUM-ION BATTERIES 

Loadshedding shouldn’t be a hurdle; it should be an opportunity 

to showcase the resilience of your operations. Masslift’s Mitsubishi 

Counterbalance Electric Forklift is equipped with advanced 

lithium-ion batteries, empowering your forklift to navigate 

power disruptions easily. In a world where power interruptions 

have become a daily challenge, lithium-ion batteries ensure your 

forklift won’t leave you in the dark. The forklift becomes more than 

a machine; it becomes a reliable partner, illuminating the path to 

sustainable material handling. 

and durability, ensuring that your focus remains where it should 

be – on the tasks that truly matter. 

In an era where environmental consciousness is not just advisable 

but imperative, the Mitsubishi Counterbalance Electric Forklift is a 

testament to Masslift’s commitment to its role. If you are worried 

about the longevity of your machine’s battery amid power supply 

disruptions or the escalating fuel cost, this groundbreaking forklift 

positions itself as a pivotal player in the broader global transition 

towards a green economy. 

ADVANCED SAFETY FEATURES 

Masslift’s Mitsubishi Counterbalance Electric Forklift embodies an 

unwavering commitment to sustainability and safety in material 

handling. This forklift prioritises operator and operational well-being, 

integrating cutting-edge safety features that redefine industry norms. 

It incorporates travel, speed, lift and control features, including a 

speed limiter, speed reduction during turns, load-dependent travel 

speed limits and precise control of lift height and tilt speed. The 

pitching control minimises road vibrations, enhancing operator 

comfort, while the Travel Hydraulic Interlock disengages movement 

when the operator isn’t seated, ensuring accountability. 

Navigating the material handling landscape, Masslift focuses on 

innovation, sustainability as well as paramount health and safety. Our 

customer-centric approach is centred on optimising operations. The 

Counterbalance Electric Forklift emphasising sustainability through 

lithium-ion batteries, exemplifies our dedication to forward-thinking 

solutions. Connect with our Masslift sales team, and let’s collaborate 

to maximise your operational efficiency while prioritising your team’s 

unique health and safety needs. 

Phone: 011 786 8524 

Email: sales@mlift.co.za 

Website: https://mitsubishiforklifts.co.za/ 

Linkedin: https://www.linkedin.com/company/masslift-africa 

LESS MAINTENANCE, MORE POWER 

With streamlined drivetrains and minimal moving parts, maintenance 

becomes a worry of the past. No more frequent replacements, no 

more costly tune-ups. Your forklift becomes a symbol of reliability 

46



THE GREEN ECONOMY 

Ecological economics 

Ecological economics is both a transdisciplinary and an interdisciplinary 

field of academic research that addresses the interdependence and 

coevolution of economies and ecosystems (figure 2). More critically, 

it treats the economy as a subsystem of Earth’s larger ecosystem and 

emphasises the preservation of natural capital. 

The constructed 

environment also 

has a role to play in 

a just transition. 

THE 

green economy/ 

built environment 

NEXUS 

The introduction to the Green Economy Journal defines the green economy as one where 

economic activity pursues the reduction of negative environmental and social impacts 

while advancing positive ones. By implication, therefore, the green economy cuts across all 

sectors and value chains: and is characterised by actions, services and projects that advance 

environmental sustainability. 

BY LLEWELLYN VAN WYK, B. ARCH; MSC (APPLIED), URBAN ANALYST 

In a broader sense, an economy is a complex system of interrelated 

extraction, production, distribution, consumption, disposal and 

exchange within those activities that ultimately determines 

how resources are allocated among all the participants (figure 1). 

The term “economy” can denote careful management of available 

resources: in this context, the production, consumption and 

distribution of goods and services should combine to fulfil the 

needs of all those living and operating within the economy while 

supporting the natural environment. 

THE BROWN ECONOMY 

Conventional economic theory 

Conventional economic theory, or orthodox economics, is a broad term 

that refers to the dominant economic theories and models that have 

been widely taught and accepted for many years. These theories form 

the foundation of modern economics and are often based on classical 

economic thought, neoclassical economics and Keynesian economics. 

It is generally held that conventional economic theory is based on 

several assumptions: 

1. Rationality. People make decisions that maximise their self-interest. 

2. Information. People have access to all relevant information and 

can process it efficiently and effectively. 

3. Maximisation. People always aim to maximise wealth and income. 

4. Market efficiency. Markets are efficient, meaning that prices 

reflect all available information and resources are allocated in 

the most efficient manner. 

Figure 2. Ecological economics. (Llewellyn van Wyk, 2023) 

As argued by ecological economists like Malte Michael Faber 

and Robert Costanza, ecological economics is defined by its focus 

on nature, justice and time. Issues of intergenerational equity, the 

irreversibility of environmental change, the uncertainty of long-term 

outcomes and sustainable development guide ecological economic 

analysis and valuation. 

Here it is important to distinguish between “environmental 

economics” and “ecological economics”: ecological economists argue 

that environmental economics applies standard economic thinking to 

the environment unlike ecological economic thinking which integrates 

three interrelated goals namely sustainable scale, fair distribution and 

efficient allocation into its consideration. 

The question of scale – the first interrelated goal – has been 

discussed in previous think-pieces (Green Economy Journal, Issue 

61, 2023/24) Costanza argues that conventional economics does 

not recognise the importance of scale – the fact that we live on a 

finite planet or that the economy, as a subsystem, cannot grow 

indefinitely into this larger, containing system. In short, there are 

biophysical limits. Mainstream economics or the brown economy 

does not recognise those limits, believing that technology can solve 

resource constraint problems. 

The second interrelated goal is distribution. This has many impacts, 

Biophilic design focuses on human adaptations to nature. 

including impacts on social capital and quality of life. The general 

assumption is that the more we have of any one thing the more we 

can spread it around. However, we are fast approaching the point 

where distribution is a concern: we may not always have “more” to 

spread around. 

The third interrelated goal is allocation. The assumption that the 

market is efficient at allocating resources only holds true while 

externalities are excluded. Natural and social externalities are 

clearly demonstrating that they are larger than the externalities 

of what is going on in the market. The desire to build bigger and 

better is cited by Costanza as an example of a social externality: 

using the built environment as a metaphor, various organisations 

and countries attach significant importance to building the tallest 

skyscraper in the world, even if that building’s sewerage must be 

collected by trucks because the bulk sewer system cannot cope 

with the additional demand. 

The green economy therefore emphasises the integration of 

environmental and social considerations into economic policies and 

practices. Key objectives of a green economy include: 

• Environmental sustainability. Prioritising the conservation 

of natural resources, eliminating pollution and neutralising the 

environmental impact of economic activities. 

Figure 1. Conventional economics/linear economy. (Llewellyn van Wyk, 2023) 

These assumptions, however, are now challenged by various branches 

of economics. Some critiques include its assumptions about human 

behaviour, the role of institutions and its ability to address real-world 

complexities and issues such as income inequality, environmental 

sustainability and market failures. As a result, alternative economic 

theories and approaches have gained attention, such as behavioural 

economics, ecological economics and post-Keynesian economics, 

offering different perspectives on economic phenomena. 1 

48 49



Ecological economics 

is defined by its focus 

on nature, justice 

and time. 

The built environment, which refers to the full life cycle (design, 

materials production and distribution, construction, usage and 

demolition) of all infrastructure assets, is directly or indirectly responsible 

for approximately 40% of global CO2 emissions from fuel combustion 

and 25% of overall greenhouse gas (GHG) emissions. To meet net-zero 

emission targets by 2050, various infrastructure sectors will need to 

triple the pace at which they decarbonise compared to the past 30 

years. Several possible decarbonisation pathways across materials, 

design and technology collectively could help mitigate a significant 

portion of overall emissions. 

Within the broader social externalities, the constructed environment 

also has a role to play in a just transition. The impacts of environmental 

degradation tend to fall unequally on vulnerable groups. Policy 

packages for an inclusive green transition should aim at mitigating 

the regressive impact of pricing environmental externalities, investing 

in human capital and upgrading skills to facilitate labour reallocation, 

addressing systemic inequalities with sectoral and place-based policies 

as well as ensuring efficient and responsive governance. 

Ecological economics addresses the 

interdependence and coevolution of 

economies and ecosystems. 

CONCLUSION 

In summary, the green economy and the constructed environment are 

intertwined in a symbiotic relationship where sustainable building and 

construction practices (SBC), energy use as well as urban planning and 

design contribute to environmental stewardship, economic prosperity 

and social well-being. 

This integrated approach is essential for addressing global challenges 

such as climate change and resource depletion. This integration will 

be further explored in subsequent chapters throughout the year. 

• Social inclusion. Ensuring that the benefits of economic activities 

are distributed equitably among different segments of the 

population and that vulnerable groups are not disproportionately 

affected. 

• Resource efficiency. Promoting the sustainable and efficient 

use of resources, including energy, water and raw materials to 

eliminate waste and enhance overall efficiency. 

• Renewable energy. Increasing reliance on renewable energy 

sources such as solar, wind and hydropower to reduce dependence 

on fossil fuels and mitigate climate change. 

• Circular economy. Transitioning to a circular approach to 

production, distribution, consumption and disposal where 

products and materials are reused, recycled or repurposed to 

extend their lifespan and reduce waste. 

• Green jobs. Fostering the creation of employment opportunities 

in sectors that contribute to environmental sustainability, such 

as renewable energy, energy efficiency and conservation. 

• Innovation and technology. Supporting research, development 

and the uptake of technologies that contribute to environmental 

sustainability and improve overall resource efficiencies. 

• Policy integration. Implementing policies that align economic, 

social and environmental goals to create a holistic and sustainable 

approach to development. 

The concept of an ecological economy (green economy) is gaining 

prominence in response to the growing awareness of environmental 

challenges, including climate change, biodiversity loss and resource 

depletion. 

ECOLOGICAL (GREEN) ECONOMICS 

AND THE BUILT ENVIRONMENT 

The green economy and the built environment nexus refer therefore 

to the interconnected relationship between sustainable economic 

practices and the physical structures and spaces in which we live and 

work. Investment in the built environment should consider externalities 

such as carbon emissions and pollution, enhanced energy and resource 

efficiency and the prevention of the loss of biodiversity and ecosystem 

services (replace what is displaced). 

50 51


1012344 

THAT’S SUSTAINABILITY, FIRST. 

As the first to introduce a CO 2 

rating system across all products, AfriSam 

became the first cement manufacturer to achieve a 33% reduction in 

CO 2 

emissions since 1990. It’s just one of the firsts we’re proud to have 

laid the foundations for since starting our sustainability journey over 

three decades ago. As the industry’s leaders in sustainability, putting 

sustainability first has been, and always will be, second nature to us. 

REFERENCES 

1 

Altman, M., 2012. Behavioural Economics for Dummies, 1st edition (3 February 2012). Published by: For Dummies. 

Faber, M., 1996. Ecological Economics: Concepts and Methods. Publisher: Edward Elgar, 1998. 

Constanza, R. 2020. Sustainable Wellbeing Futures: A Research and Action Agenda for Ecological Economics. Edward Elgar, Cheltenham, UK. 

52 

www.afrisam.com 

Creating Concrete Possibilities

SOCIETY 

A gentler, greener 

alternative 

cremation…Aquamation 

AVBOB is proud to offer AVBOB policyholders and non-policyholders a more serene way of seeing off 

AQUAMATION 

An eco-friendly burial alternative 

Going green is an imperative for AVBOB as an evolving business. 

It aligns with the Group’s purpose and helps us contribute to a 

climate-friendly environment. Aquamation is an eco-friendly, 

water-based cremation option with a decreased carbon footprint. 

cycle of life. 

Aquamation provides families with the choice of a kinder, more respectful process, with substantially more 

of the beloved’s ashes returned to the family. And, for those who are concerned about the environmental 

Aquamation offers… 

A natural biomimicry process, with no emission of harmful greenhouse gases or mercury 

20% to 30% more ash remains returned to the family 

Aquamation: Gentler for your loved one… and our planet. 

For more information contact the following branches: 

AVBOB Funeral Service Pretoria West 

294 Es'kia Mphahlele Drive, Pretoria West, 0183 

(012) 327 0320 

AVBOB Maitland 

451 Voortrekker Road, Maitland, Cape Town, 7405 

(021) 593 8553 

AVBOB launched the first Aquamation facility at its Maitland 

branch in Cape Town in 2019 followed by another facility at 

the Pretoria West branch in 2022, where both are available 

to private clients and policyholders. 

When AVBOB introduced Aquamation in South Africa, the 

organisation considered the rich and diverse range of cultures, 

different religious practices and beliefs, as well as social norms in 

the country. Providing a dignified send-off for loved ones has been 

part of AVBOB’s DNA for over 105 years, and it was central to our 

introduction of this innovation. 

Aquamation helps address the challenges faced with traditional burial: 

• Limited burial space. Municipal cemeteries have been running 

out of burial space in many of the major metropolitan areas in 

South Africa. 

• The burden of upkeep. Cemeteries require upkeep, which places 

the obligation of maintenance on communities. 

While flame-based cremation as a burial alternative doesn’t face 

the abovementioned challenges, it does have an environmental 

downside – its carbon footprint is sizable as it requires the burning 

of substantial amounts of fossil fuels. Cremation is energy intensive 

and causes air pollution, even with the most stringent emission 

regulations. 

Going green 

Aquamation or alkaline hydrolysis, also known as flameless cremation, 

water cremation and bio-cremation, has been in use in various 

applications for many years. AVBOB has, however, been at the forefront 

of developing this innovative and gentle procedure in South Africa. 

“We conducted intense research into Aquamation over the past six 

years, which included visits to facilities in the US and consultations 

with our partners, as well as strategic planning,” says Adriaan Bester, 

AVBOB General Manager: Corporate Affairs. 

The Aquamation process takes four to six hours to complete and 

eliminates the direct emission of greenhouse gases or mercury into 

the environment. It also ensures an energy saving of 90% compared 

to flame-based cremation. In other words, its carbon footprint is only 

a 10th of the carbon footprint of flame cremation. 

At the core of the process is water – a natural and essential part of 

life that makes up approximately 60% of our bodies. The Aquamation 

process uses only about 600 litres of water. This is equivalent to the 

amount of water used by a single household in a day. The process 

renders all chemicals safe upon its completion, and at its end, a benign 

sterile liquid (containing no trace of DNA and RNA) remains, which 

is recycled back into the municipal wastewater system. 

The process 

The body is respectfully laid out in a receptacle that is placed in a 

sterile, stainless-steel chamber. A combination of moderate temperature 

water, alkalinity (not acid), and gentle water flow breaks down the 

soft tissue of the body to its basic building blocks. The alkali used 

in this case is potassium hydroxide salts. 

The bones (calcium) remain, which are powdered and presented 

to the family in an urn in the same manner as with flame-based 

cremation. Families receive 20% to 30% more ashes with Aquamation 

and can either keep or scatter the ashes as per the deceased’s wishes. 

About AVBOB Mutual Society 

The AVBOB Group comprises AVBOB Mutual Assurance Society, which 

provides insurance products, and two subsidiaries – AVBOB Funeral 

Service, which provides funeral services, and AVBOB Industries, 

which manufactures our coffins and funeral ware. 

A society on a mission to create shared value 

Being a mutual society means that AVBOB has no external shareholders 

but instead has members (our policyholders) who receive a share 

of AVBOB’s surplus profits. The foundation of our mutuality is to 

create and share value with our members. As a responsible corporate 

citizen, we proudly live our values for the benefit of our members 

and the communities in which they live, so that generations to 

come will also benefit from our legacy. Our mutual status drives 

our ethos, purpose, and competitive differentiation – it is the core 

of our existence. 

Call Centre: 0861 28 26 21 (24-hour funeral service assistance) 

General email address: info@avbob.co.za 

Complaints email address: complaints@avbob.co.za 

Website: www.avbob.co.za 

55

WASTE 

Technology trends driving 

sustainable polymers for a 

CIRCULAR 

ECONOMY 

Creating a circular economy is an essential sustainability target for governments, brands, 

materials suppliers and the public. Key to pushing these sustainability efforts is the danger 

that growing global plastic consumption poses to the environment. 

BY IDTechEx 

The OECD estimates global plastic consumption to double 

globally by 2050, and this plastic is not only overflowing in 

landfills but a significant portion is mismanaged and leaks 

into the environment. As such, the need for more sustainable 

polymer options has never been more evident, with four major 

groups driving this progression to greater sustainability across 

the polymer industry: governments, retailers or brands, nongovernmental 

organisations (NGOs) or similar activist groups 

and the public. 

Lobbying, investments, pledges, consumer spending habits and 

more all play a role, but it is regulation and how it is monitored and 

enforced that will be the most significant. The Global Plastics Treaty 

negotiations are ongoing, with adoption expected in mid-2025. This 

will change the landscape on an international and country level, 

increasing pressure on public and private stakeholders to act on 

pathways to address plastic pollution. 

Regional and national announcements to curtail plastic usage 

and pollution are also stacking up, with additional bans on singleuse 

plastic being introduced in countries like the UK, Netherlands 

and elsewhere. 

Answering this demand for more sustainable plastics to support 

the circular economy requires innovations from all stakeholders 

in the polymer value chain, from the chemical suppliers to the 

end-users to the recyclers. For polymers, alternative feedstocks 

such as CO2 and other biobased inputs and production processes, 

like white biotechnology, are highlighted to showcase the diverse 

technical approaches to decreasing reliance on fossil fuel resources 

for plastic production. Just as important as the polymer feedstock 

is the application of these more sustainable polymers, especially in 

sectors of high plastic demand like packaging, which accounts for a 

third of annual plastic production. Lastly, the end-of-life recycling of 

these plastics, through both well-established mechanical recycling 

and the more emerging advanced recycling, is critical to establishing 

a truly circular economy. 

Each of these innovative areas has a range of technical challenges, 

as well as challenges affecting economic viability; the success and 

outlook for each will depend on product properties, the “green 

premium”, and the ability to decouple pricing from incumbent raw 

materials, like crude oil. 

BIOBASED FEEDSTOCKS 

Shifting away from petroleum-derived feedstocks for plastic 

production towards biobased feedstocks is of the highest priority 

to make the polymer industry more sustainable. One of the most 

interesting feedstocks is carbon dioxide (CO2); the rise of carbon 

capture and utilisation (CCU) technologies would enable CO2 

captured from industrial point sources or ambient air to be used 

as a carbon source for chemical and polymer production. These 

technologies have the potential to turn polymer production 

from a carbon-polluting industry into a carbon-negative industry 

that helps to decrease the impact of carbon dioxide emissions in 

the atmosphere. 

With governments forcing brands and retailers to have increasing 

amounts of biobased content in their products and bioplastics, 

manufacturers are scaling production rapidly to meet that demand, 

IDTechEx expects the bioplastic industry to grow by 10.1% CAGR 

over the coming decade. Alongside the more straightforward 

replacements to petroleum-derived commodity plastics in the 

bioplastics market are the innovative plastics looking to carve their 

niche, like polyhydroxyalkanoates (PHAs). 

One emerging area that looks to convert such biobased feedstocks 

into commodity chemicals and materials is that of white biotechnology, 

also called industrial biomanufacturing. White biotechnology is 

the industrial production and processing of chemicals, materials 

and energy using living cell factories, like bacteria, yeast and fungi. 

The value proposition of white biotechnology extends beyond its 

use of biobased feedstock, as biomanufacturing processes can use 

less energy, generate less and potentially create biodegradable 

products that are better for the environment. 

While this area isn’t necessarily “new”, with industrial production 

of lactic acid (used to produce biodegradable polymers like 

polylactic acid (PLA)) dating back decades, there is a recent influx 

of technology enablers, namely the tools and techniques offered 

The market potential 

for sustainable 

polymers is massive. 

WASTE 

by synthetic biology, that is making the industrial production 

of commodity chemicals and precursors to plastics much more 

achievable than before. 

SUSTAINABLE PACKAGING 

The application of such sustainable polymers in end markets and 

the unique challenges faced by biobased competitors in these 

markets, like packaging, are also important to understand, as they 

give insight into the growth potential for different sustainable 

polymers. One such end-market is packaging, which is facing the 

brunt of increasing regulations on single-use plastics, prompting 

the growing usage of recycled and biobased plastics to increase 

the sustainability of packaging by brands. 

While this area is seeing significant progress in specific application 

areas like food service, personal care, home care, pet care, etc, there 

are still technical barriers to overcome to achieve 100% biobased 

packaging in most applications. 

CHEMICAL RECYCLING 

Recycling will always be a key part of making a circular plastics 

economy, as it ensures that any carbon captured by using the biobased 

feedstocks stays sequestered. Mechanical recycling in the short and 

medium-term will continue to be the main recycling process, but 

there has been and will continue to be significant industrial activity 

surrounding chemical recycling and dissolution of plastics. 

Advanced recycling addresses many of the shortcomings of 

mechanical recycling, like the degradation of plastic through 

recycling cycles, to produce recycled plastic that approaches the 

quality of virgin plastic. 

OUTLOOK 

The climate benefits of these sustainable solutions make them 

very interesting for future applications, though these technologies 

need to be assessed on a case-by-case basis to determine their 

sustainability benefits and economic viability. Still, the market 

potential for sustainable polymers is massive and has significant 

momentum behind it. As single-use plastic bans and carbon zero 

pledges grow in tandem with plastic consumption, the pressure is 

ever-increasing for materials producers and consumers to transition 

to more sustainable practices. 

READ REPORT 



THE SOUTH AFRICAN PLASTICS PACT ANNUAL REPORT | GreenCape | [2023] 

The South African Plastics Pact is a group of organisations working for a South Africa where plastic is valued, 

kept in circulation in our economy and doesn’t pollute the environment. Through this collaboration, 

Plastics Pacts and National Plastic Action Partnerships (NPAPs) from more than 20 countries are brought 

together to share learnings and best practices helping to accelerate efforts to tackle plastic pollution. 

WRAP, the Ellen Mac Arthur Fund’s Plastics Initiative and the World Economic Forum’s (WEF) Global Plastic 

Action Partnership (GPAP) are collaborating to drive global action towards a circular economy for plastics. 

This knowledge exchange network comes ahead of the incoming international legally binding instrument 

to end plastic pollution. 

WRAP worked with WWF, SAPRO and GreenCape to develop the South African Plastics Pact and since then 

has been providing strategic, technical and financial support to help deliver its targets and scale its impact. 

56 

57

SKILLS 

Higher education 

institutions must take 

THE SUSTAINABILITY 

LEAD 

in 2024 

Environmental and water sustainability are among the most pressing challenges of our 

time. Access to quality water in SA has reached critical levels.* While Government must act 

decisively to turn around this state of affairs, higher education institutions must harness all 

available resources to address this dire situation. 

impacts of climate change, pollution, overexploitation 

and degradation of natural resources threaten the wellbeing 

of current and future generations. To address 

“The 

these issues, we need not only technological innovations but also 

social and cultural transformations that foster a more sustainable 

and equitable world,” says Louise Wiseman, managing director 

at The Independent Institute of Education’s Varsity College, IIE 

MSA and Vega. 

“Higher education institutions (HEIs) have a vital role and duty 

in ensuring environmental and water sustainability. They are the 

places where knowledge is created, disseminated and applied to 

solve real-world problems. They are also the places where future 

leaders, professionals and citizens are educated and empowered 

to take action for a better future,” she adds. 

At IIE MSA, several initiatives have been put in motion to contribute 

to the building of capacity to address water challenges in South Africa. 

59

SKILLS 

Wiseman says HEIs can contribute to environmental and water 

sustainability in various ways, such as: 

• Developing and implementing sustainability policies and 

practices that reduce their environmental footprint and enhance 

their social responsibility. 

• Integrating sustainability education into their curricula, 

pedagogies and assessment methods. This can help students 

develop the competencies, attitudes and values that enable 

them to understand and address the complex and interrelated 

challenges of sustainability. 

• Conducting and supporting research and innovation that advance 

the scientific and technological solutions for environmental 

and water sustainability. 

• Fostering a culture of sustainability among their staff, students 

and alumni. This can include raising awareness, providing 

incentives, organising events and campaigns as well as facilitating 

dialogue and action on sustainability issues. 

“In 2024, we really need to understand that it’s an all-hands-on-deck 

scenario to ensure a sustainable water future in South Africa. We, 

as HEIs, have the potential and the responsibility to be the leaders 

and the catalysts in this regard, by aligning our vision, mission and 

values with the principles and goals of sustainable development, to 

make a positive and lasting difference in our country.” 

IIE MSA offers two water-related IIE postgraduate qualifications to 

address the demand for qualified water professionals: the Postgraduate 

Diploma in Water Management and the Masters in Integrated Water 

Management. These equip professionals with expertise and skills 

in different fields such as catchment management, water-sensitive 

urban design as well as water and sanitation. 

“The programmes take a holistic and interdisciplinary approach 

to managing water to equip students with a broad range of waterrelated 

skills, from project management of water-related infrastructure 

projects to the development of water-related policy, from climate 

change and water quality management to environmental education. 

Our graduates are well rounded because our programmes incorporate 

training in soft skills as well as policy development and analysis,” 

says Linda Downsborough, programme manager for Water and the 

Environment at the IIE MSA’s School of Engineering, Science and Health. 

“Well-educated and trained graduates are essential for the effective 

management of the water system as a whole. This may be through the 

design, delivery and maintenance of water infrastructure. However, 

importantly, there is also a need for the holistic management of 

water resources such as managing water quality in our rivers and 

wetlands in South Africa,” she adds. 

In 2024, we really need to understand that 

it’s an all-hands-on-deckscenario to ensure a 

sustainable water future in South Africa. 

IIE MSA academic and researcher, Vanessa Stippel, says the institution 

is also contributing to policy development, research and innovation 

in the water industry. 

“Higher education institutions are hubs for research and innovation. 

Researchers can work on developing new technologies, materials 

and methodologies for water infrastructure construction, operation 

and maintenance,” says Stippel. 

“We are producing a diverse range of water-related qualifications 

that can ease the skills shortage, but unfortunately there remains a 

shortage of people taking up the qualifications to pursue careers in 

the water industry. We encourage those who are considering their 

future studies to consider a career in this vitally important field – a 

field which will ensure their life’s work amounts to more than just 

a job and an income, but a contribution to society that will last for 

generations to come.” 

* The recently published Blue Drop Report found that almost half of the water in our drinking water systems is not safe for human consumption. The No Drop Report had similar findings with approximately 

47% of municipal water classified as non-revenue water. 

READ REPORT 



THE GREENING WORLD OF WORK | GLOBAL INSIGHTS GREEN JOBS REPORT 2023 | 

Manpower Group | [2023] 

ESG has evolved from a corporate social responsibility and community value-add to a global standard of 

doing business. Growing regulation is also making ESG-focused workforce strategy increasingly important. 

While more than one-third (34%) of the world’s largest companies are now committed to net zero, nearly 

all (93%) will fail to achieve their goals if they don’t at least double the pace of emissions reduction by 2030. 

In a recent survey of US consumers, 75% of Gen Z respondents said sustainability was more important 

than brand when making a purchasing decision, and during a five-year period, average sales of products 

marketed with sustainability claims grew by 28%. In the same period, sales of comparable products with no 

sustainability claims grew by only 20%. A total of 67% of candidates of all ages are more willing to apply for 

jobs, and 68% are willing to accept jobs, with organisations they perceive as environmentally sustainable. 

While ESG strategies are a response to climate change and responsible operations, organisations can also 

clearly see the business opportunity, as the transition toward a more circular economy offers opportunities 

to increase business differentiation, reduce costs, improve brand reputation and drive job creation. 

The global green business transformation is one of the most exciting periods of innovation for the 

workforce since the Industrial Revolution. It will also be driven by growing demand from governments, 

investors, employees and consumers seeking bolder action and transparency to address climate change. 

60

ANNIVERSARY 

1994-2024 

5-8 February 2024 CTICC, Cape Town, South Africa 

Since 1994, Investing in African Mining Indaba has been among the best places for deal sourcing and corporate 

matchmaking for the African mining industry. It serves as the most comprehensive meeting for investment, finance, 

innovation, and transformation to support end-to-end value creation. 

Today, Mining Indaba continues to drive the economic and sustainable development of Africa and the mining sector 

forward. Join us from 5-8 February 2024 to celebrate how far the industry has come and discover what the future holds 

for Africa’s mining industry. 

HIGHLIGHTS OF MINING INDABA 2023 

8100+ 

Attendees 

900+ 

Investors & 

Dealmakers 

500+ 

Mining Companies 

Executives 

60+ 

Heads of State & 

Ministers 

25+ 

Ambassadors & High 

Commissioners 

@miningindaba | #MI24 | miningindaba.com

Green Economy Journal Issue 62

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