Service Issue 85

ISSUE 85
MAR/APR/MAY 2024
L E A D E R S H I P I N G O V E R N M E N T
STATE OF THE NATION
STATE OF OUR WATER
STATE OF GOVERNANCE
SERVING OUR MINING
AND ENERGY SECTOR
Pinagare Mogodi, CEO,
Matsapa-A-Botshelo Group
THE PLASTIC PACT
LIMPOPO PROVINCE

education
The crucial role of postgraduate
education in governance
and management
In the dynamic landscape of governance and management, pursuing postgraduate education is a pivotal gateway to
capacitating the public and other sectors. As societies evolve and global challenges become increasingly complex, the
need for well-equipped leaders in these fields becomes more evident.
S
By Kemantha Govender
T
The Wits School of Governance offers postgraduate diplomas in
Management, Master of Management and PhD studies. Our students
are taught by academics who offer a diversity of experience and a
broad range of sectoral focus including:
• Health, social security, humanitarian assistance, higher education
and governance
• Socio-economic and development research
• Anti-poverty, civic education and good governance programmes
• Monitoring systems and programme evaluation
• Unemployment, vulnerability, economic empowerment and the
green economy
• Public policy, African security, international relations, foreign and
security policy
Our students learn leadership development by honing essential skills
such as critical thinking, strategic planning and effective decisionmaking.
They are exposed to real-world case studies, enabling them
to analyse and synthesise information to create sustainable solutions.
A Wits School of Governance (WSG) alumnus and current security
student, Brigadier General Molefi Hlalele, said that he was taught
by some WSG academics who have been in the field and understand
operational challenges.
“This makes learning robust and fascinating. We can also debate
and explain to the academics who may not have been on the field
We host public events with dynamic speakers on current and
pertinent issues.
The governance and management landscape is continually
evolving, influenced by technological advancements, geopolitical
shifts and socio-economic changes. The WSG has the Tayarisha
Initiative, which focuses on digital governance. It is a hub for
teaching, research, policy dialogue and outreach on the challenges
and opportunities presented by digitisation in the public sector,
society and industry in Africa. In October 2024, the School and the
National Department of Public Service and Administration will host
the International Conference on Theory and Practice of Electronic
Governance (ICEGOV), under the theme, “Trust and Ethical Digital
Governance for the World We Want”.
Investing in postgraduate education becomes not only a
personal endeavour but a societal imperative for progress and
sustainable development.
“We produce internationally competitive and locally relevant
scholarship on governance and related fields. You will leave Wits
School feeling a bit tired but empowered and proud. You will get
to know yourself better because our scholarship is a life-altering
experience. As a student, you will gain and create new knowledge.
Still, you will also need to develop soft skills to work in groups
and to manage time and yourself,” said Wits School of Governance
Academic Director, Kambidima Wotela. S
Investing in postgraduate education is a societal
imperative for progress and
sustainable development.
the realities of our work so that there is a balance between academic
knowledge and practicalities.
“We grow our research skills and understand the importance of
feasibility studies. We are used to working on an operation level but
here at Wits we learn the other side of what we do, which puts us in
a position to do consulting work,” added Hlalele.
Our students also benefit from engaging with a diverse cohort of
experienced professionals. Collaborating with peers from different
backgrounds and fields of work fosters a rich exchange of ideas,
experiences and perspectives. These networks extend beyond
the classroom, providing a foundation for future collaborations,
partnerships and a global community of like-minded professionals.
Associate Professor Kambidima Wotela, Academic Director at
the Wits School of Governance.

S
contents
GOVERNANCE AND
MANAGEMENT
The crucial role of postgraduate
education, by Wits School of
Governance
IN THIS ISSUE | SERVICE 85 | MARCH/APRIL/MAY 2024
SERVE AND DELIVER
News and updates
INDUSTRY RESPONSE
The plastics industry responds to
SONA 2024
MAKE THINGS HAPPEN
Service speaks to CEO of the Matsapa-
A-Botshelo Group, Pinagare Mogodi
1
4
8
10
SONA 2024
By President Cyril Ramaphosa
NOT JUST ANOTHER BRICK IN
THE WALL
Azola Mayekiso, CEO of the NHFC,
speaks to Service
MUNICIPAL SUPPORT
The current state of local government
in South Africa
INCLUSIVE AGRICULTURE
The Spar Group helping to alleviate
poverty
16 18 20
BUYING LOCAL
Buying local can boost our
economies
24
FOR BETTER OR WORSE
The beneficiation of minerals is back
on the African agenda
26
IN PURSUIT OF QUALITY
Mpumalanga Valve Services is a pumps
and valves specialist in South Africa
THE SA PLASTIC PACT
By Minister of Forestry, Fisheries and
the Environment, Barbara Creecy
THE BLUE ECONOMY
A wealth of business opportunities
28
THE QUALITY OF SA’s WATER
The Blue, Green and No Drop reports
30
TELECOMMUNICATIONS
DEVELOPMENT
Needed for SA’s economic growth
32
BRIDGING THE DIGITAL DIVIDE
Service speaks to Yershen Pillay, CEO
of CHIETA
34
THE PORTAL TO AFRICA
Limpopo Province is a thriving hub of
innovationand investment
36
GOOD NEWS
Head and shoulders above: Cape Town
39
40
2 | Service magazine
44
48

editor’s note
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The State of the Nation
I
In his 2024 State of the Nation Address, President Cyril Rhamaphosa
reminded us of the words of Former President Nelson Mandela,
who said that after climbing a great hill, one only finds that there
are many more hills to climb. He said, “I have taken a moment here
to rest, to steal a view of the glorious vista that surrounds me, to look
back on the distance I have come.
“But I can rest only for a moment, for with freedom comes
responsibilities, and I dare not linger, for my long walk is not yet ended.”
While we have come far, we have a long way still to go.
Government has laid a foundation for growth through far-reaching
economic reforms, an ambitious investment drive and an infrastructure
programme that is starting to yield results. Companies continue
to invest, thousands of hectares of farmland are being planted, new
factories are being opened and production is being expanded.
Ramaphosa attests that government is on track to resolve the most
important constraints on economic growth by stabilising our energy
supply and fixing our logistics system. As these obstacles are removed,
the true potential of our economy will be unleashed (page 16).
In the past year, we have witnessed a truly commendable
transformation within our municipalities. The latest evaluation of local
governance, in the form of the State of Local Government Report, reflects
a substantial improvement in the overall condition of municipalities
nationwide (page 20).
The Department of Water and Sanitation recently released its 2023
Blue Drop Report, which provides an assessment of drinking water
quality, and the No Drop Report, which focuses on water losses and
non-revenue water in all municipalities in the country, as well as the
While we have come far, we have a long way
still to go.
Green Drop Progress Assessment Report to provide an update on
the performance of wastewater management systems at municipal
level (page 36).
Minerals beneficiation is back on the South African and wider
African mining agenda. While the goal of adding value to mineral
resources is laudable, it is a farce if it is hindered by power and logistics
problems (page 28).
Matsapa-A-Botshelo Group is set to become one of the largest coal
exporters in South Africa. Its vision extends beyond mere business
success; it encompasses a commitment to creating lasting opportunities,
driving economic growth and fostering positive change. Service
magazine interviews CEO, Pinagare Mogodi on page 10.
Minister Barbara Creecy reports that through the South African
Plastics Pact and other forms of government action, our country is
making progress in addressing plastic pollution (page 32).
On page 40, Service speaks to Yershen Pillay, CEO of the Chemical
Industries Education and Training Authority, about building an
innovative and employable workforce for South Africa.
Enjoy this issue.
Alexis Knipe
Editor
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Service magazine | 3

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snippets
SERVE AND DELIVER
2024 GENERAL ELECTIONS
President Cyril Ramaphosa has under section 49(2) of the Constitution of
the Republic of South Africa, read with section 17 of the Electoral Act of
1998, determined 29 May 2024, as the date for the 2024 General National
and Provincial elections.
The president has also in line with section 17(2) of the Electoral Act 73
of 1998, consulted with the Independent Electoral Commission (IEC) on the
election date. Furthermore, the president convened a meeting with all nine
Provincial Premiers and the IEC to discuss the state of readiness for the
general elections.
The 2024 elections coincide with South Africa’s celebration of 30 years
of freedom and democracy. Therefore, Ramaphosa calls on all eligible
voters to fully participate in this important and historic milestone of our
democratic calendar.
“Beyond the fulfilment of our constitutional obligation, these upcoming
elections are also a celebration of our democratic journey and a determination
of the future that we all desire. I call on all South Africans to exercise their
democratic right to vote and for those who will be campaigning to do so
peacefully, within the full observance of the law. We also urge unregistered
voters to use the online registration platform to register,” said Ramaphosa.
POOR GOVERNANCE IMPACTS SERVICE DELIVERY
In his SONA speech, Ramaphosa correctly identified governance failure as a
reason for the poor performance of many South African municipalities. Poor
governance may lie at the heart of the failure of service delivery – to turn
that around, you need to appoint the right people in leadership positions, says
Professor Parmi Natesan, CEO, IoDSA.
“The president indicated that moves are afoot to professionalise the civil
service which, if they bear fruit, will go a long way to solving the service
delivery crisis we are facing,” she says.
King IV urges councils to ensure they have access to “professional
independent guidance on corporate governance and its legal duties” and
that they appoint competent municipal managers. Specialised and in-depth
governance expertise is required to ensure that any entity’s authority fulfils
its primary aim of ensuring the organisation operates ethically.
Principle 7 of King IV states: The governing body should comprise the appropriate
balance of knowledge, skills, experience, diversity and independence for it to
discharge its governance role and responsibilities objectively and effectively.
In its “Consolidated General Report on Local Government Audit Outcomes:
MFMA 2021-22”, the Auditor-General shows how ineffective governance lies
at the heart of municipal dysfunction. It leads to defective financial reporting
and a lack of accountability. The Auditor-General has frequently noted that
municipal audit committees lack the skills needed to oversee the council’s
finances properly.
Inefficient use of information technology is also cited as a problem.
Given technology’s role in promoting efficiency and cost-effectiveness,
its governance has become a key agenda item for governing bodies,
including councils.
“One of the key problems faced by the public sector is the appointment
of unqualified individuals. The state must adopt best practices and appoint
individuals who are fit and proper to serve, but who also have the right level
of skills, including proper governance knowledge,” Professor Natesan says.
The IoDSA has constantly warned that appointments made on political or
other improper grounds are the root cause of the challenges hamstringing
the state at all levels.
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SERVE AND DELIVER
LET US MAKE SA GREAT
In 1994, we had a dream of forging a new nation. We imagined a country
that worked for everyone and offered people a chance to live their dreams.
Together we have built a new society from the ashes of a system that sought
to entrench racial and economic discrimination and oppression.
The dream of 1994 lives on in the determination of South Africans to build
a better tomorrow and in the change brought about by the work of successive
administrations since 1994.
The milestone of 30 years of freedom, which we celebrate this year, is an
opportune moment to reflect on our past and how far we have come.
Today, citizens have access to improved healthcare, and we continue to
work towards the implementation of universal healthcare for all. We have
succeeded in ensuring a healthier population.
Enrolment for children of compulsory school-going ages increased from
51% in 1994 to well over 90% at present. In universities, it has increased
from 494 356 in 1994 to over one-million now, edging closer to the NDP
target of 1.6-million enrolments by 2030.
The number of people in employment has doubled from about eight-million
in 1994 to over 16.7-million now.
Despite these notable advances, there is still much more work to be
done. Poverty, unemployment and inequality still define the lives of millions
of our people.
As we seek to rebuild and overcome these challenges, we will need the
help and support of all South Africans. Our history since 1994 has shown that
we are at our strongest when we are united and focus on a common goal.
Former President Nelson Mandela once said, “Sometimes it falls upon a
generation to be great. You can be that great generation. Let your greatness
blossom.” The success of our country rests in our hands and by working
together and harnessing our collective strengths we can become the
generation that seeks to address our past in a manner that builds our future.
As government, we are aware that we lost much during the state capture era
but having emerged from one of the lowest moments in the post-democratic
era, we now have a chance to rebuild our nation, while also ensuring that we
address the weaknesses and vulnerabilities in our system.
We have embarked on a new path defined by a fierce determination that
we build back better and stronger and ensure that we leave no-one behind.
However, we cannot do it alone; we need the help of individuals and
communities to drive the change we want to see. In isolation, single actions
might seem insignificant but they are key in driving social and societal change,
and when multiplied across communities they can morph into an unstoppable
force for change.
By Gill Price, Director: Communication Resource Centre, Government
Communication and Information System
CLIMATE CHANGE FUND TO BE ESTABLISHED
Government is expected to establish a Climate Change Response Fund to address
the devastating effects of the phenomenon on vulnerable areas in South Africa.
“This will bring together all spheres of government and the private sector in a
collaborative effort to build our resilience and respond to the impacts of climate
change,” President Cyril Ramaphosa said.
Ramaphosa explained that furthermore, through reforms, government is
positioning the economy for “future growth in a world shaped by climate change
and a revolution in green technologies”.
“In the last three years, our country has seen an increase in extreme
weather events, often with disastrous consequences. This is why we are
implementing a just energy transition, not only to reduce carbon emissions
and fight climate change
but to create growth and
jobs for our people.
“We will undertake
this transition at a pace,
scale and cost that our
country can afford and in
a manner that ensures
energy security.
“With our abundance of solar, wind and mineral resources, we are going to
create thousands of jobs in renewable energy, green hydrogen, green steel,
electric vehicles and other green products.”
Electric vehicle manufacturing
The president highlighted that green hydrogen and electric vehicle manufacturing
are receiving particular attention.
“We are going to set up a Special Economic Zone (SEZ) in the Boegoebaai
port to drive investment in green energy. There is a great deal of interest from
the private sector to participate in the boom that will be generated from green
hydrogen energy projects.
“We have decided to support electric vehicle manufacturing in South Africa to
grow our automotive sector, which provides good jobs to thousands of workers.
We have decided to give special focus to regions like Mpumalanga to enable
the creation of new industries, new economic opportunities and sustainable jobs.
“In the past year, we have increased the financing pledges for our Just
Energy Transition Investment Plan from around R170-billion to almost
R240-billion,” he said.
SAnews.gov.za
Service magazine | 5

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SERVE AND DELIVER
HOME AFFAIRS CREATES ONE-STOP SHOP FOR BUSINESS APPLICATIONS
The Department of Home Affairs has created a one-stop shop for business more easily. This will happen while we continue to observe and respect existing
applications to give effect to the recommendations of its visa reform initiative. immigration laws,” said Home Affairs Minister, Dr Aaron Motsoaledi.
The one-stop shop, known as the Trusted Employer Scheme, was created The TES brings the Department of Trade, Industry and Competition, the
with the view to streamlining the visa regime and a speedy processing of visa Department of Employment and Labour and the Department of Home Affairs
applications. To qualify for membership, an employer, investor or business under a single system to finalise applications for companies that apply for
needs to demonstrate that it has the financial strength to employ a foreign critical skills through the TES.
national, that it runs training programmes for South African citizens and that All local applications will be processed through the Corporate Accounts
it is a good corporate citizen.
Unit which was established in February 2010 to facilitate work visa
It is one of the latest developments in the review and streamlining of applications for large companies and corporations. Applications submitted
South Africa’s visa regime to attract skills for the South African economy abroad will also be expedited due to the reduced requirements.
and to promote tourism.
“With the Trusted Employer Scheme (TES), the 22 weeks average visa
process will be reduced to an average of 20 days thereby making it easier for
employers to plan their recruitment and on-board expats into local operations
within a shorter time. This is one scheme that will allow South Africa to attract
skills and manage immigration, particularly in the processing of applications
for senior executives, technical personnel, corporate employees and investors
MORE FORMAL HOUSING FOR NORTH WEST PROVINCE
The North West Province has experienced unprecedented levels of
development in the last 30 years, with the number of households increasing
from 591 145 in 1996 to over 1.14-million in 2022.
When delivering the State of the Province Address, Acting Premier Nono
Maloyi revealed that this depicts an upward trend of 88% of formal housing
in the province.
Since 2019, the provincial government has built over 19 000 houses. In
2023 alone over 2 700 were handed over to beneficiaries. Acting Premier
Maloyi maintains the focus will now be centred on eradicating mud houses.
“R198-million has been allocated to eradicate 1 356 mud houses in the
province, with 579 of these units already delivered,” he said.
Furthermore, efforts to eradicate mud houses have been strengthened by
the Memorandum of Understanding (MoU) between the provincial government
and the Chinese National Import and Export Corporation to build gas-toelectricity
power stations in the province.
The Chinese have committed to investing further resources to assist in
eradicating mud houses in the province by building 500 houses every year,
for the duration of the project. The project is expected to create a minimum
of over 10 000 jobs.
Providing an update on the Deelpan Floods intervention programme, Acting
Premier Maloyi announced that the provincial government has cleared all the
hurdles that delayed the project and that 104 houses will be completed by
the end of March 2024.
A further 317 houses will be built following the donation of land by Kgosi
Kogodi Molete of Bakolobeng and his Traditional Council.
In addition, the provincial government will be launching the R2.6-billion
N14 mixed development project in Ventersdorp. This development will see
the installation of bulk services for 4 000 sites and create over 600 jobs for
local people through the construction of Breaking New Ground, social housing
and bonded stock.
Acting Premier Maloyi added that the provincial government will continue
to ramp up the title deeds restoration programme by handing over title deeds
to rightful owners. To date, 6 283 title deeds have been handed over to
beneficiaries across the province.
DRIVING AGENDA 2063
Our future as South Africa is intrinsically linked to Africa’s stability, unity and
prosperity. Let us embrace and partner with our fellow Africans residing in South
Africa and elsewhere on the continent. Together we can work towards a stable
continent to ensure prosperity for our region and the rest of Africa.
In realising the goals of Agenda 2063, we can transform the nations of the
continent into democratic, peaceful and innovative powerhouses that will aim to
be global players in the next 50 years.
One of the flagship projects of Agenda 2063, which harnesses the combined
strength of the continent is the acceleration of the implementation of the
African Continental Free Trade Area (AfCFTA). The AfCFTA makes doing business
in the continent easier and presents an unprecedented opportunity for African
countries to diversify their exports, attract foreign direct investment and grow
their economies. It holds the potential to boost intra-African trade by over 50%
and can inject $450-billion worth of investments into the African economy.
South Africa is a strong supporter of the free trade area which has the potential
to act as a catalyst to South African economic growth and bolster the country
in addressing its triple challenges of poverty, unemployment and inequality.
Our entrepreneurs, including medium to small businesses, will benefit through
the free trade area. It is in our national interest to grow the South African
economy by creating jobs, providing basic services and ensuring equal access
to opportunities.
South Africa remains committed to Africa’s advancement and as the most
industrialised economy on the continent, we are actively working to facilitate
intra-Africa trade, enhance skills development, foreign direct investment and
international cooperation.
Dr Ntombifuthi Nala is Director: Research, Government Communication and
Information System
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NYLON LINE SAVINGS
FUEL EFFICIENT
TIME SAVINGS

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waste
Plastics industry responds to President
Ramaphosa’s 2024 State of the Nation Address
The impact of the nation’s challenges is felt by the plastics industry.
Government states that it has taken steps to address the youth
unemployment challenge in the country. Despite this, our
unemployment rate is the highest it has ever been.
“The plastics industry was identified as a priority sector for the
South African economy as it employs 60 000 people. However, the
recent economic downturn, energy crisis and labour challenges are
forcing many plastics manufacturers and recyclers to downscale
their operations and risk the jobs of many workers. Immediate
and drastic measures are needed to protect and restore the entire
manufacturing sector, but especially to revitalise the competitiveness
of the plastics sector,” Anton Hanekom, executive director of Plastics
SA said. He also urged government to extend the RAF fuel rebate
offered to food manufacturers on diesel for generators to include
plastic packaging manufacturers.
“Because we recognise the need for a skilled and trained workforce
that can add value in each sector, we continue to provide cuttingedge,
hands-on training in the latest manufacturing and leadership
techniques that not only address our unemployment crisis but also
help to stimulate economic growth and ensure our competitiveness
on a global stage,” he added.
IMPROVING INFRASTRUCTURE
Plastics play a crucial role in modern infrastructure, offering
versatility and cost-effectiveness in various construction applications.
Explains Hanekom: “In infrastructure projects, plastics are utilised
in numerous forms, including pipes, cables, insulation materials
and roofing membranes. High-density polyethylene (HDPE)
and polyvinyl chloride (PVC) pipes are commonly used for water
distribution and sewage systems due to their corrosion resistance
and longevity. Plastics such as polystyrene and polyurethane are
employed in insulation, enhancing energy efficiency in buildings.
The lightweight nature of plastics facilitates easier transportation
and installation, reducing labour costs and environmental impact.”
The Department of Water and Sanitation aims to enhance water
resource management by initiating infrastructure projects to secure
water supply and diversifying water sources to reduce dependence on
surface water. In addition, government has committed to increasing
the construction of infrastructure through innovative funding
mechanisms. The industry eagerly awaits the commencement of
these infrastructure projects to provide products that will contribute
to cost effectiveness, durability and a low carbon footprint.
“Plastics plays a crucial role in the country’s infrastructure and food
security. However, we need government support and political will
to revitalise the manufacturing sector, support local businesses, and
combat the influx of cheap imports coming into our country and
eroding our markets,” Hanekom urged.
PROTECTING THE ENVIRONMENT
Finding solutions to South Africa’s pollution problem and protecting
the environment continue to be a key focus area for both government
and the plastics industry worldwide. Hanekom reiterated that
plastics have an important role to play in combatting climate change.
“Numerous studies and lifecycle analyses have proven time
and again that when plastics are collected and recycled as part of
a circular economy, they have a smaller environmental footprint
compared to other packaging materials. They can be reused many
times over. Plastics that have a one-time purpose can be recycled into
useful applications with long-term use, for example, water bottles
are recycled into duvets,” he explained.
For this reason, Plastics SA is relentless in its efforts to promote
and educate end-users about recycling, supporting the industry with
the development of end markets and working with local and national
government to improve waste management and collection systems
throughout the country.
Over the last few years, government has had to confront the
effects of climate change, and in this year’s address, the president
highlighted their plans to invest in green energy. He invited the
private sector to participate in the expected boom that will be
generating green hydrogen energy projects.
“Hydrogen is viewed as a promising alternative to fossil fuel, but the
methods used to make it either generate too much carbon dioxide or
are too expensive. It is exciting to note, however, that researchers have
recently found a way to harvest hydrogen from plastic waste using a
low-emissions method that could more than pay for itself and could
provide a win-win solution for us,” Hanekom said.
OTHER GROWTH SECTORS
Numerous other areas of focus and investment were singled out
by the president where plastics have an important role to play. Says
Hanekom: “Whether it is stabilising the country’s energy supply,
fixing logistical problems or boosting electric vehicle manufacturing,
plastics have a role to play in every area”.
It is important to recognise the crucial role that plastics play in
the future of South Africa. With proper waste management and
recycling initiatives, these issues can be effectively mitigated, allowing
for the continued utilisation of plastics in various sectors. The
industry’s willingness to support national objectives underscores the
potential for positive change. However, political will and decisive
action need to align with these efforts to steer the country and
its economy towards growth and prosperity. By addressing plastic
pollution, while harnessing the benefits of plastics responsibly,
South Africa can forge a sustainable path forward for generations
to come. S
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mining and energy
Efforts in life to make things happen
Matsapa-A-Botshelo Group is set to become one of the largest coal exporters in South Africa. Its vision extends beyond
mere business success; it encompasses a commitment to creating lasting opportunities, driving economic growth and
fostering positive change. Service speaks to CEO, Pinagare Mogodi.
Your career shows a trajectory of entrepreneurial achievement.
Please tell us the story behind your success.
My first milestone was born out of necessity during my second
year at university when financial constraints threatened to derail
my education. Unable to rely on external support, I turned to
what I loved: construction, mining and trucking – industries that
were already familiar to me through my family’s business ventures,
spearheaded by my uncle and mentor, Oupa Mphomane.
Witnessing Mphomane’s dedication to hard work and his
commitment to helping others, I aspired to emulate his success and
become a pillar of support for my community. Driven by the desire
to create a better future for myself and those around me, I immersed
myself in the world of construction, mining and trucking. Every
achievement reached was fuelled by the determination to honour
my mentor’s teachings and to build my legacy.
Consistency in achievement stems from a deep-rooted belief in
the value of hard work, integrity and perseverance. Mphomane
instilled in me the importance of earning success through diligence,
rather than simply aspiring to material possessions. His lessons
taught me to appreciate the journey, to never envy others for their
accomplishments and to remain focused on my path.
Please tell us about the MAB Group.
The MAB Group is a dynamic company with a multifaceted
approach to business, specialising in construction, mining and
trucking services. What sets us apart is our unwavering commitment
to creating opportunities and making a positive impact, not only for
ourselves but for everyone deserving of a chance.
The name “MAB” holds significant meaning, representing the
ethos of our company. “Matsapa-A-Botshelo”, which translates to
“efforts in life to make things happen”, encapsulates the determination
and resilience that drive us forward, no matter the challenges we
face. Founded with the sole purpose of helping my mother overcome
her struggles and extending that support to others in need, MAB
embodies the spirit of empowerment and upliftment.
Our journey from humble beginnings to a thriving enterprise
has been a testament to our relentless hustle and dedication to our
mission. What started as a personal endeavour has evolved into a
driven organisation, propelled by a team of professionals with over
60 years of combined experience. Our track record speaks for itself,
with a proven success rate across all divisions and a reputation for
excellence in everything we do.
What was MAB’s initial objective? And going forward?
MAB’s initial objective was deeply personal – to alleviate my
mother’s struggles and extend support to others in need by creating
opportunities for employment and partnership. I am grateful to say
that we have fulfilled this objective, as MAB has become a beacon
of empowerment.
Our objective remains rooted in our commitment to growth and
impact. We aim to expand our influence by becoming a listed company.
By taking this step, we not only solidify our position in the market but
also open new avenues for investment, expansion and collaboration.
Becoming a listed company will enable us to access additional resources,
forge strategic partnerships and further our mission of creating
opportunities and driving positive change in our communities.
Please share some of MAB’s milestones. What do you owe your
company’s success to?
Some of MAB’s latest milestones include successful ventures into
export coal and iron ore, with regular shipments via Panamax to
Capesize vessels each month. Additionally, we are making significant
strides in infrastructure development, including the construction of
new wash plants and involvement in mega-projects in partnership
with government.
Our success can be attributed to several key factors. Our
commitment to integrity has enabled us to build strong partnerships
and earn the trust of our clients and stakeholders. Our dedication
to innovation and continuous improvement has allowed us to adapt
to changing market conditions and seize new opportunities. Our
focus on sustainable growth and social responsibility ensures that
our business practices are both ethical and impactful, contributing
positively to the communities in which we operate.
Our employees are the driving force behind our achievements,
and their expertise, passion and commitment are invaluable assets to
our company. It is the combination of our commitment to excellence,
innovation and sustainability as well as the talent and dedication of
our team that has propelled MAB to its latest milestones and will
continue to drive our success in the future.
Is diversification a means to survive this volatile world or is it
MAB’s key to success?
Diversification plays a pivotal role in MAB’s strategy, serving as
both a means to navigate the volatile world and a key driver of our
success. By diversifying our operations across multiple sectors such
as construction, mining and trucking, as well as expanding into new
ventures like export coal and iron ore, we can mitigate risks and
capitalise on opportunities in various markets.
In today’s rapidly changing business landscape, diversification
provides resilience against economic downturns, industry-specific
challenges and market fluctuations. By spreading our investments
and revenue streams across different industries, we are less vulnerable
to the impacts of any single event or sector downturn. This enables
us to maintain stability and sustain growth even in turbulent times.
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Consistency in achievement stems from a deeprooted
belief in the value of hard work, integrity
and perseverance.
Diversification is not just a defensive strategy for survival; it is also
a proactive approach to unlocking new avenues for success. By
venturing into diverse sectors and exploring new opportunities,
we can leverage our expertise, resources and networks to drive
innovation, expand our market reach and capture emerging trends.
This allows us to stay ahead of the curve, remain competitive and
continuously grow our business.
Please outline MAB’s diversified multiproduct production.
MAB’s diversified multiproduct production locally refers to our
ability to produce multiple commodities within the mining sector.
Specifically, we are engaged in the extraction and production of coal,
iron ore, manganese and chrome. We have operations across various
mining sectors, allowing us to extract, process and supply a diverse
range of minerals. However, our primary focus and major product
within our portfolio is coal. Coal extraction and supply constitute a
significant portion of our business activities, making it a cornerstone
of our operations.
Our diversified approach to mining enables us to capitalise on
opportunities across different commodities, diversify our revenue
streams and mitigate risks associated with market fluctuations or
disruptions in any single sector. By engaging in multiple product
lines, we can leverage our expertise, infrastructure and resources to
optimise production and overall operational efficiency.
Is it the company's strategy to diversify to commodities that
support decarbonisation?
Yes, MAB’s strategy to diversify into commodities such as manganese,
lithium, chrome assets and iron ore aligns with a broader effort to
optimise its product mix and tap into higher-value segments. While
the primary focus remains on traditional commodities like coal, the
investments in these alternative resources reflect a strategic move
towards diversification and positioning the company for future
growth and sustainability.
As the world seeks to transition towards cleaner energy sources,
the demand for minerals and metals used in renewable energy
technologies, energy storage systems and electric vehicles is expected
to surge.
Commodities like manganese and lithium are essential
components in the production of batteries for electric vehicles and
energy storage systems. Chrome is used in various applications,
including in the manufacturing of solar panels and wind turbines.
Additionally, iron ore is a key ingredient in steel production,
which is vital for infrastructure development, including renewable
energy projects.
By diversifying into these commodities, MAB is positioning itself
to capitalise on the growing demand for materials that support
decarbonisation efforts. This strategic move allows the company to
leverage its existing infrastructure, expertise and market presence to
tap into new markets and opportunities.
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mining and energy
How has decarbonisation affected your coal export business?
Our current reach in the global coal market is significant, with our
coal export business playing a vital role in supplying coal to various
international markets. We have established strong partnerships and
distribution channels that allow us to export coal to destinations around
the world, including Asia, Europe and the Americas. Our commitment
to quality, reliability and customer satisfaction has enabled us to build a
solid reputation as a trusted supplier in the global coal market.
Decarbonisation efforts have indeed impacted our coal export
business, as there has been a growing shift towards cleaner energy
sources globally. This transition has led to increased scrutiny and
regulation of coal use, particularly in developed economies, where
governments and industries are setting ambitious targets to reduce
carbon emissions and phase out coal-fired power plants.
We have observed a decline in demand for thermal coal, especially
in regions where decarbonisation policies are stringent. This has
prompted us to adapt our business strategies and diversify our
product portfolio to include higher-value commodities that are less
affected by decarbonisation trends, such as metallurgical coal for
steel production.
We are actively exploring opportunities to invest in renewable
energy projects and transition towards cleaner energy sources
ourselves. While the decarbonisation of the coal market presents
challenges, it also presents opportunities for innovation and
growth in alternative energy sectors. As a responsible corporate
citizen, we are committed to navigating these changes responsibly
while continuing to meet the evolving needs of our customers and
stakeholders in the global energy landscape.
How does regulation such as the EU’s carbon border adjustment
mechanism (CBAM) that penalises carbon-heavy imports,
affect MAB?
Regulation has significant implications for MAB and its operations.
As a company engaged in the export of coal, which is a carbonintensive
product, MAB may face challenges and increased costs
associated with compliance with such regulations.
The implementation of CBAM could lead to additional costs for
MAB, as it may be required to pay carbon taxes or tariffs on its
coal exports to the European Union. These costs could affect the
competitiveness of MAB’s coal exports in the European market,
potentially reducing demand and impacting the company’s revenues.
CBAM may necessitate changes to MAB’s operational practices
and investments in emission-reduction technologies to mitigate the
carbon footprint of its coal exports. This could require significant
investments in cleaner production methods, carbon capture and
storage technologies or renewable energy alternatives, which may
increase operating costs and impact profitability.
To navigate the challenges posed by regulations like CBAM, MAB
may need to adopt a proactive approach by investing in sustainable
practices, improving energy efficiency and diversifying its product
portfolio to include lower-carbon alternatives. Additionally, engaging
in dialogue with regulatory authorities, stakeholders and industry
partners to advocate for equitable treatment and exploring potential
exemptions or incentives may also be essential strategies for MAB to
mitigate the impact of such regulations on its business operations.
BIOGRAPHY
Pinagare Mogodi (“Pina”) is the co-founder and managing
director of MAB. He comes from a family with a long history of
construction, mining and trucking projects in the North West. He
expanded this into a well-established mining and construction
company which now boasts a management team with over 60
years’ collective experience in the industry. Mogodi holds a
bachelor’s degree in accounting and management from Eduvos
(Institute), has completed a project management and Pastel
accounting short course and has a certificate in tactics: strategic
planning and management.
Please discuss your perception of coal’s longevity in South Africa.
Coal has historically played a significant role in South Africa’s energy
landscape, serving as a primary source of electricity generation and
driving economic growth. However, the country is now facing increasing
pressure to transition towards more sustainable energy sources as part
of the Just Energy Transition (JET). Considering this transition, coal’s
longevity in South Africa is likely to be influenced by several factors:
Environmental regulations. Stricter policies aimed at reducing
carbon emissions are expected to impact the future of coal-fired
power generation. Compliance with these regulations may require
significant investments in emissions-reduction technologies or the
gradual phase-out of coal-fired power plants.
Renewable energy expansion. The rapid growth of renewable
energy sources, such as wind and solar, presents an alternative
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SKILLS DEVELOPMENT
MAB is deeply committed to empowering the next generation
of professionals and actively contributes to skills development
through various initiatives, including learnerships and internship
programmes. These programmes are designed to provide valuable
knowledge to young individuals entering the workforce, equipping
them with the expertise needed to succeed in their careers.
The programmes offer participants the opportunity to gain
practical experience in their respective fields, whether it be in
construction, mining, trucking or other areas of our business.
Through mentorship, training and on-the-job learning, MAB strives
to nurture talent and cultivate a skilled workforce for the future.
MAB believes in empowering our employees at all levels with
the necessary skills and knowledge to excel in their roles. This
includes providing ongoing training and development opportunities
for office staff, where the focus is on imparting essential skills
such as document management, tender preparation, company
registration processes and legal compliance.
By investing in skills development, MAB strengthens the overall
capacity and competitiveness of its workforce. The company
is proud to play a role in shaping the future of its industry by
empowering individuals with the tools they need to thrive in the
workplace and make meaningful contributions to society.
to coal for electricity generation. South Africa has abundant
renewable energy resources and investments in renewable energy
infrastructure are increasing contributing to the diversification of
the energy mix.
Economic considerations. The declining cost-competitiveness
of coal relative to renewable energy alternatives, coupled with the
potential for job creation and economic development associated with
renewable energy projects, may further accelerate the transition
away from coal.
Social impacts. The JET seeks to minimise social impacts of
the shift away from coal, particularly on communities and workers
reliant on the coal industry. Efforts to ensure a fair transition
may involve retraining and reskilling programmes, investment in
alternative industries and support for affected communities.
South African taxpayers currently benefit from allowances
which reduce carbon tax liability. However, the second phase of
carbon tax implementation starts in January 2026. What then?
South African taxpayers may experience changes in their carbon
tax liability and the benefits of tax-free allowances. The specifics
of these changes will depend on the details of the second phase
regulations, but some potential implications could include:
Reduced tax-free allowances. It’s possible that the second phase
of carbon tax implementation could entail reductions in taxfree
allowances for carbon emissions. This could result in higher
carbon tax liabilities for businesses and industries exceeding their
allocated allowances.
Increased carbon tax rates. The second phase may introduce
higher carbon tax rates or adjustments to existing rates, aiming
to further incentivise emissions reductions and promote cleaner
energy practices.
Stricter compliance requirements. With the maturation of carbon
tax regulations, the second phase may introduce stricter compliance
requirements and reporting standards for affected entities. This
could involve enhanced monitoring and verification processes to
ensure accurate carbon emissions reporting and taxation.
Expansion of coverage. The coverage of carbon taxation could
be expanded to include additional sectors or activities not previously
subject to carbon tax obligations. This expansion may reflect a broader
commitment to addressing carbon emissions across the economy.
What is your strategy in terms of iron ore?
As higher-grade production of iron ore becomes increasingly valued
due to its compatibility with decarbonisation initiatives, we aim
to position ourselves strategically to capitalise on this trend. This
involves a focus on:
Higher-grade production. We prioritise the production of highergrade
iron ore to meet the growing demand for quality materials
in decarbonisation technologies such as hydrogen production. By
focusing on higher-grade ores, we can command a premium in the
market due to their suitability for green technologies and reduced
environmental impact.
Technology and innovation. We invest in innovative technologies
and processes aimed at enhancing the quality of our iron ore products
while optimising production efficiency. This includes adopting
advanced beneficiation techniques and process improvements to
maximise the yield of higher-grade ores from our operations.
Market diversification. We explore opportunities to diversify
our market reach and customer base, both domestically and
internationally, to capitalise on demand for higher-grade iron ore.
By expanding our market presence, we aim to leverage favourable
pricing dynamics and market conditions to enhance the profitability
of our iron ore operations.
Sustainability considerations. We integrate these considerations
into our iron ore production processes. This includes implementing
responsible mining practices, reducing carbon emissions and
minimising environmental impacts associated with ore extraction
and processing. By adhering to high ESG standards, we aim to
enhance the long-term viability and acceptance of our iron ore
products in the market.
Through targeted investments in technology, market
diversification and sustainability, our goal is to position ourselves as
a leading supplier of high-quality iron ore products that contribute
to the global transition towards a more sustainable future.
Most chrome ore mined in South Africa is exported in raw form
rather than beneficiated domestically. Please share your opinion
of beneficiation?
Beneficiation of chrome ore in South Africa presents a significant
opportunity for economic development. While the country is a
leading producer of chrome ore, most of it is currently exported in
Diversification plays a pivotal role in MAB’s
strategy, serving as both a means to navigate the
volatile world and a key driver of our success.
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mining and energy
raw form, resulting in lost potential for local value creation and job
opportunities. Key points regarding beneficiation in South Africa:
Economic diversification. Investing in chrome ore beneficiation
facilities can help diversify our economy by adding value to its
mineral resources. By processing chrome ore domestically, the
country can unlock additional revenue streams and reduce its
reliance on exporting raw materials.
Job creation. Establishing beneficiation plants and downstream
industries creates employment opportunities across various sectors,
including manufacturing, engineering and logistics. This can
contribute to skills development, particularly in regions where
mining activities are prevalent.
Value addition. Beneficiation adds value to raw materials by
upgrading them into higher-quality products with enhanced
market value. For chrome ore, beneficiation processes can involve
concentration, smelting and refining to produce ferrochrome, which
is used in stainless steel production and other industrial applications.
Industrial development. A robust beneficiation industry fosters
the growth of ancillary sectors such as equipment manufacturing,
technology development and infrastructure investment. This can
stimulate overall industrial development and economic growth.
Export revenue maximisation. While beneficiation may initially
require investment in infrastructure and technology, the longterm
benefits can outweigh the costs. By producing higher-value
products domestically, South Africa can maximise export revenues
and mitigate the risks associated with commodity price fluctuations.
associations, to understand their concerns regarding the potential
implementation of an export tax. Collaboration between government
and industry can help ensure that any tax policy is effectively
implemented and achieves its intended objectives. S
A chrome ore tax could generate billions of rands in revenue for
government. What is your view on this?
Implementing an export tax on chrome ore could have several
implications for the South African chrome industry and the broader
economy, such as:
Price advantage. An export tax would give domestic chrome
producers a price advantage over foreign competitors, particularly
Chinese firms. This could incentivise local beneficiation and value
addition, as domestic producers may find it more profitable to sell
processed or beneficiated chrome products domestically rather than
exporting raw ore.
Revenue generation. A chrome ore export tax has the potential
to generate significant revenue for the South African government.
The revenue generated from such a tax could be directed towards
infrastructure development, social programmes or other priority
areas, contributing to economic growth.
Competitiveness. An export tax could also affect the
competitiveness of South African chrome ore in the global market.
Higher export prices resulting from the tax could make South
African chrome less attractive to international buyers, potentially
leading to decreased demand and market share.
Balancing revenue generation. Policymakers would need to
carefully balance the revenue generation potential of an export
tax with its potential impact on the competitiveness of the chrome
industry. Any tax policy should be designed in a way that minimises
negative effects on industry competitiveness while maximising
revenue generation for government.
Stakeholder views. Policymakers need to consult with industry
stakeholders, including chrome producers, exporters and trade
PINAGARE MOGODI
I am a dreamer who firmly believes in the power of hard work. I
understand that while dreaming is free, achieving those dreams
requires relentless hustle and dedication. I do not believe in
handouts; instead, I advocate for the value of earning one’s success
through diligent effort. Central to my ethos is a deep commitment to
helping others, a trait for which I am known. I prioritise philanthropy
and strive to make a positive impact wherever I can. As a leader, I
am dedicated to nurturing and empowering my team and supporting
their growth and development. I lead by example, adhering to
simple yet profound beliefs that fully honour God.
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Building for a brighter future
Matsapa-A-Botshelo is a general construction and mining group committed to building a
stronger South Africa through a commitment to reliability and high standards.
MMatsapa-A-Botshelo has two main divisions covering coal (domestic
supply and export) as well as construction and trucking. MAB
started as a construction company and then added to its portfolio,
mining and trucking departments in 2016. What started as a humble
building block, has now become a powerful brand that has created
several milestones in its areas of operation.
The MAB Group CEO and executive head of coal operations is
Pinagare Mogodi. The executive chairman is Setene Ketlele, who
brings to the company considerable knowledge of the property
management environment as a property manager and investor, with
experience in arranging financing and administration.
MAB COAL
MAB supplies coal to Eskom (on medium-term contracts) and Kelvin
Power Station (a privately operated facility in Johannesburg) and is
one of South Africa’s largest emerging exporters of thermal coal.
The company’s goal is to produce 36-million tons by 2028. The
biggest proportion of MAB’s current saleable mix is local power-station
coal (36-mpta), followed by export thermal coal (8-mpta) and semisoft
coking coal (1.2-mpta). Products include duff, peas, small nuts and
semi-coke. MAB Coal is strategically positioned for both domestic and
export coal markets, currently exporting to countries such as India,
China, Hong Kong and Israel. The company is exploring opening
offices in India in support of its export operations.
MAB is the most diversified multiproduct producer in terms of
sized product at mine/DMS wash plant level and export product
mix at Richards Bay Multi-Purpose Terminal and Richards Bay
Coal Terminal. Our newest largest contract is a five-year coal
export contract for 150 000 tons with three different clients. Our
strategic partner is Clarksons, one of the world’s biggest shipping
services providers that offers strategic maritime consultancy
and shipping solutions in 23 countries. MAB is in the process of
optimising its product mix to supply higher-value segments and
to customers.
MAB CONSTRUCTION AND TRUCKING
Established in April 2010, with its main priority being to curb the high
rate of unemployment in the metropolitan region of the city of Tshwane,
Matsapa-A-Botshelo is the original building block of the company and
continues to be committed to providing a reliable service in projects,
construction and quality management. MAB has since grown to become
one of the largest black-empowered and diversified construction and
mining companies in South Africa. The company operates facilities
and offices in South Africa and has made mining acquisitions in other
African countries. MAB’s offering spans engineering and construction
activities throughout the built environment.
The trucking division works with a mix of sub-contractors and
trucks working directly under the company.A total of 688 trucks are
working to deliver goods as sub-contractors while 150 leased vehicles
are the sole responsibility of MAB.
MAB’s construction capabilities span a broad range of industries:
building, concrete structure, road and rail, environmental, heavy
industry, mining; water reticulation, housing/township development,
infrastructure and other related projects. Clients include
governments, parastatals and local authorities, major mining houses,
leading industrial and other corporations, financial institutions and
property developers.
Among MAB’s clients are the Rustenburg Local Municipality, the
Kruger National Park and the Moses Kotane District Municipality.
Since 2010, projects to the value of R2.5-billion have been dealt with
efficiently by MAB.
SERVICES
MAB offers the finest quality design, site preparation, cost estimates,
construction, repair and alteration to clients needing large-scale
construction services, whether it is office buildings, warehouses, large
apartment complexes or public works.
• Earthworks
• Civil works
• Refurbishment
• Water systems S
(010) 447 3799
info@m-a-b.co.za
enquiry@m-a-b.co.za
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nation
President Cyril Ramaphosa: 2024
State of the Nation Address
Key takeouts of the 2024 SONA held in February.
AAs government, we have taken steps to address the youth
unemployment challenge. Three years ago, building on the success
of the Expanded Public Works Programme, we launched the
Presidential Employment Stimulus. Through this programme, we
have created more than 1.7-million work and livelihood opportunities.
We have, working together with the National Youth Development
Agency, set up several initiatives to provide opportunities for
young people including the National Youth Service and the Youth
Employment Service.
We have laid a foundation for growth through far-reaching
economic reforms, an ambitious investment drive and an infrastructure
programme that is starting to yield results. Companies continue
to invest, thousands of hectares of farmland are being planted, new
factories are being opened and production is being expanded. We are
on track to resolve the most important constraints on economic growth
by stabilising our energy supply and fixing our logistics system.
As these obstacles are removed, the true potential of our economy
is unleashed.
We set out a clear plan to end loadshedding, which we have been
implementing with a single-minded focus through the National
Energy Crisis Committee. We have delivered on our commitments
to bring substantial new power through private investment onto the
grid, which is already helping to reduce loadshedding.
In 2023, we implemented a major debt relief package, which will
enable Eskom to make investments in maintenance and transmission
infrastructure and ensure its sustainability going forward.
Since we revived our renewable energy programme five years
ago, we have connected more than 2 500 megawatts of solar and
wind power to the grid with three times this amount already in
procurement or construction. Through tax incentives and financial
support, we have more than doubled the amount of rooftop solar
capacity installed across the country in just the past year. We have
implemented sweeping regulatory reforms to enable private
investment in electricity generation, with more than 120 new private
energy projects now in development.
We are going to build more than 14 000km of new transmission
lines to accommodate renewable energy over the coming years. To fasttrack
this process, we will enable private investment in transmission
infrastructure through a variety of innovative investment models.
Last year, we tabled the Electricity Regulation Amendment Bill
to support the restructuring of Eskom and establish a competitive
electricity market. As we undertake these reforms, we are positioning
our economy for future growth in a world shaped by climate change
and a revolution in green technologies.
With our abundance of solar, wind and mineral resources, we
are going to create thousands of jobs in renewable energy, green
hydrogen, green steel, electric vehicles and other green products.
While we have come far, we have a long way
still to go.
The Northern Cape, with its optimal solar conditions, has already
attracted billions of rands in investment. We are going to set up a
Special Economic Zone in the Boegoebaai port to drive investment in
green energy. There is a great deal of interest from the private sector
to participate in the boom that will be generated green hydrogen
energy projects. We have decided to support electric vehicle
manufacturing in South Africa to grow our automotive sector, which
provides good jobs to thousands of workers. We have decided to give
special focus to regions like Mpumalanga to enable the creation of
new industries, new economic opportunities and sustainable jobs.
In the past year, we have increased the financing pledges for our
Just Energy Transition Investment Plan from around R170-billion
to almost R240-billion.
To address the persistent effects of global warming, which
manifest themselves through persistent floods, fires and droughts,
we have decided to establish a Climate Change Response Fund. This
will bring together all spheres of government and the private sector
in a collaborative effort to build our resilience and respond to the
impacts of climate change.
To deal with severe inefficiencies in our freight logistics system,
we are taking action to improve our ports and rail network and
restore them to world-class standards. We have set out a clear
roadmap to stabilise the performance of Transnet and reform our
logistics system. Working closely with business and labour, we have
established dedicated teams to turn around five strategic corridors
that transport goods for export purposes. Transnet has appointed
an international terminal operator to help expand and improve its
largest terminal at the Port of Durban.
We completed the auction of broadband spectrum after more
than a decade of delays, resulting in new investment, lower data
costs and improved network reach and quality. These reforms have
a profound impact on a society in which access to the Internet
has risen dramatically over the last decade. Less than half of
all households had Internet access in 2011, compared to 79% of
households in 2022.
To support growth in the mining sector, we are moving ahead
with the modernisation of our mining rights licensing system and
are launching an exploration fund to support emerging miners and
exploit new mineral deposits.
Black ownership stands at approximately 39% when compared
with 2% in 2004. Investment in infrastructure is gaining momentum.
New and innovative funding mechanisms will be used to increase
construction of infrastructure. The Department of Water and
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President Cyril Ramaphosa at the 2024 State of the Nation Address.
Sanitation aims to enhance water resource management by initiating
infrastructure projects to secure water supply and diversifying water
sources to reduce dependence on surface water. Bulk water projects
are under construction across the country to improve water supply
to millions of residents in villages, towns and cities.
In the past five years, the South African National Roads Agency
Limited, which manages nearly 25 000km of roads, has awarded
more than 1 200 projects to the value of R120-billion. In November
2023, Cabinet approved a framework for high-speed rail, focusing
initially on the Johannesburg to Durban corridor.
Our basic education outcomes are steadily improving across a range
of measures. The latest matric pass rate, at 82.9%, is the highest ever.
The National Health Insurance (NHI) will provide free healthcare
at the point of care for all South Africans, whether in public or
private health facilities. We plan to incrementally implement the
NHI, dealing with issues like health system financing, the health
workforce, medical products, vaccines as well as technologies and
health information systems.
Too many municipalities are failing on governance, financial and
service delivery measures. These constraints affect every aspect of
people’s daily lives. We have started the implementation of several
measures to address this problem by providing support to local
government, including professionalising the civil service and ensuring
that people with the right skills are appointed to key positions.
The Presidency, National Treasury and the Department of
Cooperative Governance and Traditional Affairs are working
together to enhance technical capacity in local government and to
improve planning, coordination and fiscal oversight.
Through the presidential izimbizo that has been held across the
country, we have seen how the District Development Model (DDM)
has brought together all spheres of government and key stakeholders
to address the service delivery challenges in communities. The DDM
has proven to be an effective instrument to enhance cooperative
governance and collaboration. We will continue to broaden and
deepen this process.
Tackling crime and insecurity is a key priority.
We launched the new Border Management Authority in 2023 to
improve the security of our borders and have already stopped over
100 000 people who tried to enter South Africa illegally.
We will use our foreign policy to pursue our development goals.
During our leadership of Brazil, Russia, India, China and South
Africa (BRICS) last year, we witnessed a new chapter for the BRICS
family of countries.
We will build on the progress we have made in establishing the
African Continental Free Trade Area (AfCFTA), which will transform
South Africa’s economy and that of the continent by creating new jobs
and increasing economic participation.
As we mark the 30th anniversary of our freedom, we are reminded
of the words of President Nelson Mandela, who said that after climbing
a great hill, one only finds that there are many more hills to climb.
He said:
“I have taken a moment here to rest, to steal a view of the glorious
vista that surrounds me, to look back on the distance I have come.
“But I can rest only for a moment, for with freedom comes
responsibilities, and I dare not linger, for my long walk is not
yet ended.”
While we have come far, we have a long way still to go.
Like Madiba, we must keep moving, always forward, always
onward, towards the country of our dreams. Always believing that
victory is certain. S
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housing
Not just another brick in the wall
Azola Mayekiso, CEO of the National Housing Finance Corporation, speaks to Service about the importance of establishing
a one-stop shop for all human settlement financing needs.
Azola, in March 2024 it will be your first anniversary as CEO of
the National Housing Finance Corporation (NHFC). Please share
your career trajectory up to this point.
I completed a Bachelor of Business Science degree, an MBA and an
MA. After working for more than 15 years as an investment expert
and fund manager, I devised a turnaround strategy for Vunani’s
asset management business that proved to be a huge success. When I
was seconded into the subsidiary in 2010, it was a R6-billion business,
but by the time I left it had more than doubled with assets under
management to the value of R15-billion.
During the three years after I left Vunani in early 2016, I served
as CEO of Sanlam Investment Management. When you are in these
jobs, they are demanding and, at some point, in order not to lose
yourself, you need to just get yourself completely out of it and do
something completely different, right?
I decided to take a sabbatical of sorts, handing over the reins of
CEO of Sanlam Investment Management in exchange for the chance
to take a bit of a break. To find myself, recharge and get ready for my
next big opportunity.
In March 2020, lockdown threw my plans completely out. I ended
up working for my daughter and being actively involved as one of the
moms in the play school that she attends. Then I got an opportunity
to pursue an entrepreneurial role because I’m quite multifaceted
and I get bored if I don’t occupy my time with many different things.
Soon after, an opportunity to step into the role of CEO of
the National Housing Finance Corporation presented itself
unexpectedly… and it was too good to resist.
What are your objectives for the NHFC?
• Grow the implementation and roll-out of First Home Finance
subsidies to the gap market (households whose monthly incomes
are between R3 501 and R22 000).
• Attract more partnerships for investment purposes in various
forms ranging from private equity to donor funding, thereby
creating more opportunities and social impact.
• Embed a high-performance culture within the NHFC that will
make us more effective as an organisation across the board.
• Drive transformation in the human settlements ecosystem
through our funding activities and provision of technical support
to emerging developers.
• Make improvements to our internal processes such that we use
the right tools to evaluate transactions and adopt adequate risk
mitigation measures to safeguard the sustainability of the business.
Please outline the NHFC’s vision, mission and purpose.
Vision: To be an apex financing partner of choice within the
affordable housing value chain.
Mission: To create an enabling environment where there is access
to housing finance for low-middle income families through strategic
partnerships and promoting the sustainability of the human
settlements ecosystem, using our strategic pillars below:
• To maximise the development impact
• To transform the human settlements sector
• To achieve sustainability
• To contribute beyond what is available or provide that which is
otherwise absent from the market
What is the NHFC’s mandate?
The NHFC’s mandate is to create affordable housing opportunities,
through the provision of affordable housing finance while mobilising
the private sector’s involvement in the facilitation and development
of sustainable human settlements.
How does the NHFC achieve its mandate?
The NHFC achieves its mandate through the implementation of
various programmes, each with its respective strategies through
partnering with our stakeholders and leveraging our resources to
ensure the delivery of our mandate.
As a development finance institution, we have various approaches
to ensure the achievement of our mandate. The NHFC is positioned
as a catalytic partner striving to mobilise the private sector as
partners to be involved in the delivery of affordable housing.
Please provide an overview of the financial services that you offer.
The NHFC financial products and services target a range of housing
structures including:
• Private rental aimed at developing or improving rental
accommodation; including student accommodation.
• Social housing is regulated and facilitated by the NHFC’s sister
company, the Social Housing Regulatory Authority, while the
NHFC provides 10% to 30% of funding as secured debt towards
the project finance required to deliver it.
• Affordable and subsidy housing bridging finance for developers
and contractors operating in the affordable housing and
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housing
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Looking ahead, I am energised by the
possibilities that will be brought about by the
emerging high-performance culture
within the NHFC.
subsidy housing space and have contracts from either public
or private sector entities for building facilities for the benefit
of communities.
• Incremental housing finances micro-lenders who on-lend to end
users who want to build additional living space (house extensions)
or build their houses incrementally.
• First Home Finance (formerly known as FLISP) is a housing subsidy
for first-time home buyers that fall in the gap-market income
bracket. These low to middle income earners are encouraged to
buy or build homes of their choice and affordability. Once granted
a mortgage/loan from their preferred financial institution, they
then apply for the once-off grant from the NHFC.
• Strategic investments encompass capital that is deployed in
strategic partner entities that play in the same market as the
NHFC to extend the scope of the NHFC’s impact. Through
these equity and equity-like instruments, we aim to also support
emerging entrepreneurs in the gap market segment with an
ability to inject the required equity to make the transactions they
bring to us financially viable.
What is the NHFC’s history, including its major milestones?
The NHFC was established by the National Department of Human
Settlements in 1996, with the mandate to finance contractors,
developers and micro-financiers in urban areas and provide access
to finance for housing development.
Three development finance institutions within the human
settlements market consolidated their operations, clients and fund
alliance partners. The 2018 merger saw the Rural Housing Loan
Fund, the National Urban Reconstruction and Housing Agency
and the NHFC, along with their assets and liabilities, embark on
an ambitious journey aimed at the development of the Human
Settlements Development Bank.
The NHFC has facilitated the delivery of more than 800 000
housing units since its inception.
Please discuss the government subsidies that you offer.
Currently, there is only one government subsidy that the NHFC is
implementing which is targeted at the gap market – households and
individuals that are earning between R3 501 and R22 000 per month.
The NHFC acts as an agent of the National Department of Human
Settlements to distribute the First Home Finance grant to qualifying
beneficiaries across South Africa. It is a once-off housing subsidy
targeted at first-time home buyers. These low to middle income earners
are encouraged to buy or build homes of their choice and affordability.
In closing, I am immensely grateful for the trust and support of
the shareholders, dedicated team members, stakeholders and our
esteemed partners. S
Azola Mayekiso, CEO, National Housing Finance Corporation.
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local governance
Municipal support and intervention:
insights into the current state of local
government in South Africa
Takeouts of address made by Minister of Cooperative Governance and Traditional Affairs, Thembisile Nkadimeng, at the
end of 2023.
I
In the past year, we have witnessed a truly commendable
transformation within our municipalities. The latest evaluation
of local governance, in the form of the State of Local Government
Report, reflects a substantial improvement in the overall condition of
municipalities nationwide.
Reflecting on the years before, 2021 painted a varied picture: 64
municipalities were categorised as dysfunctional, 111 at medium
risk, 66 at low risk, and 16 deemed stable. However, in the most
recent assessment for 2022, there’s reason for optimism. While
there has been a marginal increase in the number of dysfunctional
municipalities to 66, the truly remarkable aspect lies in the positive
transformation observed across the other categories.
The number of medium-risk municipalities has slightly
decreased to 107, reflecting focused efforts towards improvement.
Collaborative effort will strengthen our collective
ability to address the intricacies of
local governance.
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Flickr
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local governance
Similarly, the count of low-risk municipalities now stands at 54,
indicating a significant consolidation of stability in these regions.
Most notably, a substantial leap of 30 municipalities now proudly
sits in the stable category, signifying a leap forward in effective
governance and operations.
This progress is due to the collaborative efforts, innovative
strategies and dedication of various stakeholders working towards the
betterment of local governance. It highlights a promising trajectory
for more robust, accountable and responsive local government systems.
This positive trend inspires confidence and underscores the potential
for continued growth and development in our local communities.
CoGTA INTERVENTIONS
Hence, following the principles outlined in Section 154 of the
Constitution, and as a response to the multifaceted challenges that
municipalities face, we have engaged in collaborative efforts with
provinces, the National Treasury, SALGA and various partners to
introduce substantial legislative and policy reforms. These initiatives
aim to empower municipalities in effectively executing their duties
and mandates.
Key reforms and their implications
Municipal Structures Act Review (2021). This comprehensive review
established the groundwork for delineating powers between the
executive and legislative branches of municipal councils. It reinforced
the Code of Conduct for Councillors, recognising the vital role of the
Municipal Public Accounts Committees (MPAC), and introduced the
position of the council whip in all municipalities.
Municipal Systems Act Review (2022). This review reintroduced the
amendments made in 2011 under the Municipal Systems Amendment
Act, which had been nullified by the Constitutional Court in 2019.
Introduction of Municipal Staff Regulations (2021). This initiative
laid a robust foundation to professionalise local government by
setting essential standards. Additionally, there are ongoing efforts to
finalise revised competency assessment batteries, further enhancing
the professionalisation initiatives.
Circular 88 Introduction (2017). CoGTA, in collaboration with
National Treasury, introduced Circular 88 aimed at harmonising
planning and reporting tools using specific municipal performance
indicators. This circular aligns with the Municipal Systems Act (MSA)
and the MFMA requirements, ensuring coherence between planning
and reporting instruments such as the Integrated Development
Plan (IDP), the Service Delivery and Budget Implementation Plan
(SDBIP) and the Annual Report. The current pilot of Circular 88
encompasses all eight metropolitan municipalities, with plans for
broader implementation across all municipalities to streamline
reporting procedures.
CoGTA has set up the Results Management Office to house
experts in various fields (infrastructure, finance, energy and
governance) and provide an additional layer of support, particularly
in dysfunctional municipalities
The minister designated MISA to champion the development
of Infrastructure Asset Management Plans, Schedule 6b, the
deployment of more experts and trainee artisans as well as
supporting the implementation of the CWP programme (particularly
the municipal services aspects).
These reforms reflect a concerted effort to address the challenges
and intricacies faced by local governance structures. They represent
a commitment to enhance the capacity, professionalism and
effectiveness of municipalities in delivering essential services to
our communities.
Forthcoming interventions
Intergovernmental, Monitoring, Support, and Interventions
(IMSI) Bill. This Bill, designed in alignment with constitutional
sections 100(3) and 139(8), aims to provide targeted support to
provinces and municipalities requiring assistance. The Bill sets the
stage for monitoring provinces and municipalities, ensuring their
compliance with executive obligations as dictated by the Constitution
or legislation. It outlines alternative steps for interventions to induce
compliance and grants the power to the national or provincial
executive to appoint administrators in cases of intervention.
“Coalitions Bill”. Proposed amendments to the Municipal
Structures Act are underway. Among the various changes, the
amendments seek to transform municipalities with a mayoral
executive system, wherein no party secures a majority of seats, into
a collective executive system. These changes propose that municipal
office-bearers can only be removed from office after a two-year
tenure or under prescribed grounds. Another significant inclusion
in this Bill is the provision for binding coalition agreements in
municipalities where no single party holds a majority of seats.
General Laws Amendment Bill. This Bill intends to introduce
amendments to multiple pieces of legislation impacting local
governance. The aim is to solidify good practices, address any
regulatory “vacuums” and eradicate or mitigate detrimental
practices. This comprehensive amendment seeks to streamline and
fortify the legal framework governing municipalities, promoting
more effective and transparent governance.
These interventions are strategically designed to address various
critical aspects, ensuring compliance, effective administration and
stronger collaborations within municipalities. As these Bills progress,
we remain committed to engaging stakeholders and refining these
initiatives to foster a more resilient and efficient local government
system for the benefit of all citizens.
NATIONAL INTERVENTIONS
Despite all the support programmes by both national and provincial
governments, some municipalities remained dysfunctional and this has
resulted in them being placed under section 139(7) of the Constitution.
Capacity-building programmes
MISA is actively investing in the upskilling and re-skilling
of municipal officials. Through a comprehensive suite of
capacity-building programmes, MISA is actively shaping a futureready
cadre of professionals. One of MISA’s initiatives is the
implementation of technical short courses in collaboration with
the South African Institution of Civil Engineering (SAICE). These
courses provide invaluable knowledge and skills to municipal
officials, equipping them with the technical expertise necessary for
effective infrastructure management. By fostering partnerships
with industry experts, training programmes remain relevant and
of the highest quality.
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local governance
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More than 6 000 training opportunities have been provided to
municipal officials. These opportunities extend beyond traditional
classroom settings, emphasising a hands-on, practical approach that
aligns with the real-world demands of infrastructure management.
MISA does not stop at empowering existing municipal officials; it
extends its reach to unemployed youth from previously disadvantaged
backgrounds. Bursary opportunities, enable aspiring individuals to
pursue technical disciplines and trades. This initiative contributes to
creating a diverse and skilled talent pool for the future.
The infrastructure-related skills development programmes, such
as learnerships and candidacy plans, further exemplify MISA’s
commitment to nurturing talent. Over 5 000 opportunities have
been provided to unemployed youth, aiming to produce a new cohort
of municipal officials with the necessary technical qualifications.
Collaborations with the Local Government Sector Education and
Training Authority (LGSETA), Technical and Vocational Education
and Training Colleges (TVETs) and universities amplify the impact
of these initiatives.
Infrastructure condition assessments serve as the bedrock for
informed decision-making, influencing capital project planning
and annual maintenance funding allocations as well as ensuring the
structural and functional integrity of assets.
To date, MISA has successfully conducted assessments on the
bulk water and sanitation infrastructure of 117 out of 144 Water
Service Authorities (WSAs). These assessments go beyond being
mere evaluations; they serve as blueprints for future action.
The comprehensive assessment reports, coupled with actionable
recommendations, are not gathering dust on shelves but are actively
being implemented.
These reports play an important role in project identification
and funding prioritisation, shaping the landscape of infrastructure
development. Our commitment to empowering municipalities
extends beyond traditional funding channels. While own funding is
a key component, MISA has successfully engaged the private sector
and leveraged conditional grants such as municipal, water services
and rural bulk infrastructure grants.
CONCLUSION
The State of Local Government Report has been instrumental in
identifying key issues, ranging from governance failures to
outstanding debts and vacancies in critical positions.
We are not oblivious to the fact that challenges faced by the local
government sector are multifaceted, disproportionate and impactful,
but not insurmountable, and we will illustrate the work we are doing
as CoGTA to turn the situation around.
The commitment to fostering resilient, efficient and accountable
local government systems remains solid. We extend our appreciation
to all stakeholders, for their continued engagement and support. The
path ahead may be challenging, but with sustained collaboration and
dedication, we are confident in the potential for continued growth
and development within our local communities.
A collaborative effort will strengthen our collective ability to
address the intricacies of local governance and contribute to the
enhancement of service delivery across municipalities. This will
ensure that strategic conversations move from isolated, departmental
or organisational silos to effective cross-segment collaboration. S
Minister of CoGTA, Thembisile Nkadimeng, Parliament,
Cape Town.
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agriculture
Inclusive agricultural sector
needed to alleviate rural poverty
In South Africa, effective small-scale farming, arguably a means to combat rural poverty, stands as the cornerstone to
establishing new and sustainable agricultural value systems.
By Max Oliva, CEO of The SPAR Group Southern Africa
LLarge commercial farmers dominate the local agricultural and food
system, which limits the participation of smaller producers, creating
a dualistic farming system. Additionally, most major supermarkets
and food manufacturers prefer working with a small number of
larger suppliers who can meet stringent requirements. This leaves
many small rural producers excluded and marginalised since they
cannot meet the quality or consistent volume requirements for large
corporations to consider dealing with them.
Small-scale producers struggle to overcome these limitations,
primarily due to a lack of access to funding, technical and business
support, food safety expertise and compliance as well as the
infrastructure and logistical resources, or capabilities, needed to
enter formal value systems.
Poor farm infrastructure and farm inputs are often the root cause
of inconsistent crop yields and quality. Addressing these intricate
issues necessitates a collaborative approach involving a diverse
range of stakeholders.
these being the corporate sector. The retail industry must play a
central role in helping close gaps in food security and market access.
In The SPAR Group’s own experience, just by including farmers in
a rural hub skills transfer and empowerment concept in 2016, we
are now seeing between 30% to 60% of these farmers’ monthly
output purchased by us and brought to the market (under our
Freshline and Country Value labels) through distribution centres in
key locations. We plan to increase the support from SPAR to 80%
in 2024/25.
While The SPAR Group remains their primary customer, some of
the grade one produce is also sold to aggregators who then on-sell
And this needs to happen now. According to the World Bank, Sub-
Saharan Africa is feeling the brunt of “the perfect storm” – a food,
fuel and fertiliser crisis exacerbated by the war in Ukraine, scarring
effects from the Covid-19 pandemic, soaring inflation, rising debt
and extreme weather.
No priority is more pressing than addressing food insecurity to
safeguard the calorie and nutrition needs of Africa’s one-billion
people and protect their human development. At least one in five
Africans goes to bed hungry and an estimated 140-million people
in Africa face acute food insecurity, according to the “2022 Global
Report on Food Crises 2022 Mid-Year Update”.
As the United Nations astutely observes, climate change does not
respect boundaries, hence African countries and abroad must work
together to build resilience. In South Africa, it is also critical that a
comprehensive church of stakeholders play their role, pivotal among
Max Oliva, CEO, The SPAR Group Southern Africa.
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agriculture
S
security), as well as collaboration with various stakeholders, including
government and industry partners.
Those taking steps in the direction of developing food programmes
must sign up as a signatory to the Consumer Goods Council of South
Africa’s (CGCSA) Voluntary Food Loss and Waste Agreement. I also
see the United Nations’ sustainable development goal of halving per
capita global food waste by 2030 as one that all organisations should
aspire to, and it should be included in their strategic intent. As an
example, The SPAR Group has committed to transparently reporting
on our annual quantities of food waste – to halve this by 2030 – and
to the redistribution of edible, surplus food for human consumption.
Working with Food Forward SA, our redistribution partner, we
ensure food safety is maintained across the redistribution supply chain.
the produce to other food retailers. Many farmers continue to grow
private crops for their communities.
Projects like this are key to improving food security and the health
and well-being of people in rural communities. As our farmers
graduate from the programme over the next three to five years and
move on to farm sustainable and profitable enterprises, they will no
longer require our support – which is the end goal. Plans are underway
to scale up to include additional farmers and products in 2024.
At a time when food security is so critical, this all helps to
guarantee a market for farmers, reduces delivery distances
through strategically located rural hub packaging facilities,
The retail industry must play a
central role in helping close gaps in
food security and market access.
Food waste and loss are unjustifiable, especially when considering
the thousands of South African men, women and children facing
hunger daily. Whenever possible, The SPAR Group donates
surplus, safe food to local charities and community feeding
schemes, and many of our independent SPAR retailers follow suit.
At a practical level, I am pleased to report that The SPAR Group
operates six waste management sites, with three diverting food waste
to composting or animal feed facilities. In KwaZulu-Natal, food
13
waste is processed in BiobiN’s® containment and processing units,
initiating composting to reduce odours, bacteria and pathogens.
In the Western Cape, a specialised waste management company
converts food waste into compost and biogas.
As one of South Africa’s leading consumer brands, we are
committed to making a positive impact and will continue to
support initiatives aimed at driving an inclusive agricultural sector,
maximising food production and ensuring food security. S
cuts transport costs, and benefits the environment by lowering
emissions. But quality assurance goes beyond logistics; it demands
sustainable farming methods. So, any solution to South Africa’s
rural development challenges must include the implementation of
regenerative farming practices and comprehensive training in farm
management and food safety.
Food safety is non-negotiable. In this regard, I believe safety
programmes must be benchmarked against global standards, like
full GLOBALG.A.P certification, and packaging facilities must meet
GFSI Global Markets standards. Again, increased collaboration is the
key ingredient to success in closing gaps and stimulating growth that
is so critical to South Africa’s food sector. This collaboration should
take place among all relevant stakeholders, including farmers,
communities, government bodies, food manufacturers, input
suppliers, wholesalers, retailers, financial institutions and funders.
Another pressing issue within the food supply and retail chain in
South Africa is food waste. Of the approximately 31-million tons of
annual food production, nearly 10-million tons go to waste.
Recognising that most food waste occurs at farms, it is critical
to actively work with producers to reduce these volumes through
internal food buying and sales incentive policies, the buying and
selling of “imperfect” produce (where it makes sense for food
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economy
Buying local is critical to
economic growth
Deputy President Paul Mashatile says buying South African made products and supporting the small businesses which
produce them can lead to a much-needed boost in local economies and stimulate national economic growth.
T“This is because every local transaction has a ripple effect that
extends beyond our comprehension. By purchasing locally produced
food and other goods, consumers support their local economy,
families, communities and promote the culture of entrepreneurship.
“Moreover, supporting local businesses can stimulate the local
economy, since it redirects funds back into the community rather
than into the coffers of ambiguous national chains and corporations,”
he said.
Mashatile highlighted local production’s critical role in the
domestic economy.
“We cannot have economic growth without localisation. [A] study
commissioned by Proudly SA and done by Dr Iraj Abedian’s PAIRS
outfit, confirms the link between localisation and economic growth
and the different steps that the private and public sectors need to
take in this area.
“Some of the most important points in the report are the positive
effects of domestic manufacturing investment on the GDP, fiscal
revenue, real wages and consumer inflation. Moreover, the report
showed that the South African economy could benefit from an
increase of just 10% in investment spending in the manufacturing
sector,” he said.
GOVERNMENT PROCUREMENT
The deputy president highlighted that government has committed
to supporting local businesses.
“Government, during the 2018 Presidential Summit, together
with our social partners, reaffirmed the commitment to localisation.
We need to ensure that we support the investments being made
in the country by improving the uptake of those products and
services that will flow from these investments in new and existing
production plants.
“By encouraging the use of local products in government
contracts, we can create jobs in areas critical to economic growth,
such as manufacturing and agriculture, which have historically been
vital to economic progress. We support local businesses because
they offer the most significant untapped potential for growth and
economic transformation,” Mashatile said.
He assured local producers of government’s dedication to ensuring
that the policy of local procurement is implemented at all levels.
“We are making a concerted effort to ensure that we remind all
procurement authorities and decision-makers in the public sector
of this dynamic. As part of this effort, we ask them to maintain local
content standards in their preferential procurement policies.
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economy
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We cannot have economic growth
without localisation.
Turning to the current electricity challenges facing the country, the
Deputy President laid out government’s ongoing work to address
both issues.
“As we all know, businesses rely on a consistent supply of energy to
run their operations, and the availability of electricity is a significant
element in determining where companies choose to invest.
“To address this issue, the government is investing in reliable
energy infrastructure, such as renewable energy sources, to give
businesses the electricity they need to grow.
“President Cyril Ramaphosa presented solutions in the 2023 State
of the Nation Address. They included declaring a national state of
disaster and creating a ministry within the presidency to accelerate
the implementation of the agreed-upon strategy to reduce and
terminate loadshedding,” he said.
“While the grid’s energy constraints threaten businesses and
regional development, they also present an opportunity. This
pertains to the production of wind turbines, solar panels and other
forms of energy storage, among other things.
“By producing domestically, we may avoid paying import taxes
on similar machinery, and the current energy crisis presents an
opportunity to expand employment opportunities in a field with
significant demand,” he said. S
“If we keep moving in this direction, our economy will reap the
rewards not just in terms of new jobs, but also in terms of new tax
income collected from citizens and the businesses that stand to gain
from increased local procurement by the public and private sectors,”
he added.
Article courtesy of SAnews.gov.za
CHALLENGES
Mashatile acknowledged that organisations still face several
challenges in doing business in the country and that government
is working hard to ensure that regulatory challenges are resolved.
“[Urgent] work is being finalised by government to create an
enabling regulatory framework, attract foreign investment, reduce
red tape and improve the ease of doing business.
“Further, the Red Tape Reduction Team, which resides in the
Office of the President, has made headway in reducing complex
regulations, procedures and processes that impede economic growth
and job creation in important sectors of the economy,” he said.
Deputy President Paul Mashatile.
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mining
For better or worse, the “beneficiation” of
minerals is back on the African agenda
Minerals beneficiation is back on the South African and wider African mining agenda. While the goal of adding value to
mineral resources is laudable, it is a farce if it is hindered by power and logistics problems.
By Ed Stoddard
TThe word “beneficiation” hardly rolls off the tongue, and its usage
is limited. The Oxford English Dictionary says it has “0.09 occurrences
per million words in modern written English”, a rarity which perhaps
explains why I have yet to find a spellcheck that recognises it.
But in South Africa, it is used more frequently, and for better or
worse, it is back on the agenda.
Depending on the source consulted, the term broadly refers to
the process of treating ore to prepare it for smelting. Some take it
further and see it as “adding value” to mineral products beyond the
material that emerges from the smelter.
In South Africa, it has been “beneficiated” to a grade where it
means that rather than exporting platinum group metals (PGMs),
you build catalytic converters here. Or an entire car from scratch.
President Cyril Ramaphosa raised the subject when he delivered
the ANC’s annual 8 January statement in Mbombela, saying
the party’s youth league had made it clear that “we are tired of
being a country that exports all our mineral resources… without
beneficiating them. And they have said, ‘Please let us beneficiate
our minerals’.”
Ramaphosa was providing a summary of the statement, which –
surprisingly – did not use the word “beneficiation”.
“Too many of our natural resources are still exported in raw
form and then imported back into South Africa as manufactured
goods. The jobs and profits involved in manufacturing these goods
are passed on to other countries, yet we need these here in South
Africa,” it reads.
NEW SCRAMBLE FOR AFRICA
We’ve heard this routine before. But it is now being performed on
a stage featuring a new scramble in Africa for the “critical minerals”
and “green metals” needed for the energy
transition. And it has a regional cast.
Finance Minister Enoch Godongwana
said in a brief interview recently that
critical minerals would be high on his
radar at the annual World Economic
Forum in Davos.
The minister said he had
a planned meeting with
his counterparts from the DRC, Zambia and Zimbabwe to discuss a
regional critical minerals strategy.
“We need to cooperate with them in such a manner so that
we, together, influence the direction… in terms of development,”
Godongwana said.
“The use of these minerals must be done in SADC.”
There are merits to this strategy. Africa is the poorest continent
globally a reflection, in part, of the fact that it is also the least
industrialised.Yet the region also boasts fabulous mineral and
hydrocarbon wealth which it has mostly failed to translate into
wider prosperity, a state of affairs dubbed in some circles as the
“resource curse”.
One plausible way to break the spell is to process the extracted
commodities further instead of exporting the raw material and then
using it to build stuff here.
Zimbabwe is blazing a path of sorts and is an example Godongwana
pointed out. Zimbabwe banned the export of raw lithium, a crucial
battery metal for electric vehicles (EVs), in 2022 in a bid to curb artisanal
mining and extract more value. If you want to invest in a Zimbabwean
lithium project, you need to pony up for some processing as well.
SO, HOW’S THAT GOING?
Well, Reuters reported in late 2023 that Zimbabwe earned
$209-million from lithium exports in the first nine months of that
year, nearly triple the previous year’s earnings.
This is because Chinese companies have spent more than
$1-billion during the past two years in Zimbabwe’s lithium space to
develop projects, including some processing.
Zimbabwe is still not quite at the stage where it’s building EVs.
According to Reuters, most of the Chinese companies involved
“have built processing plants… and are shipping lithium concentrates
to China for further processing”.
Still, adding some value presumably creates some jobs while
spurring “industrialisation”.
And the region may be in a position to make “beneficiation” demands
of investors.
MINERALS “SUPER REGION”
Research group Wood Mackenzie recently produced a white paper
exploring the idea of creating a “minerals super region” comprising
Africa, the Middle East, Central Asia and South Asia, saying it
“would make a huge contribution to a successful energy transition”.
It underlined the point that Africa’s potential on this front
was “unrivalled”.
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mining
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Tailings mining, South Africa platinum group metals (PGM).
Article courtesy of Daily Maverick.
Too many of our natural resources are still
exported in raw form and then imported back
into South Africa as manufactured goods.
“In terms of the minerals essential for a successful energy transition,
Africa is a clear global leader. With 79% of global cobalt reserves,
44% of global manganese and 21% of global graphite as well as
sizeable resources of many other minerals including copper and tin,
the continent’s potential is unrivalled,” Wood Mackenzie says.
This gives African governments some leverage to dictate the
terms of investment into the region’s critical minerals at a time when
potentially critical shortages are seen looming.
Wood Mackenzie estimates that “approximately $400-billion in
capital expenditure is required for mining, refining and smelting of
critical minerals by 2030 to bridge the supply-demand gap and limit
global temperature increases to 1.5°C above pre-industrial levels”.
But Africa is constrained by, well, its relative lack of industrial
capacity, making the whole “beneficiation” and “industrialisation”
debate a bit of a chicken-and-egg scenario. Which needs to come first?
“Africa’s undeveloped financial ecosystem, underdeveloped
infrastructure and a reluctance to invest in many African countries,
means that the continent has provided strong headwinds,” Wood
Mackenzie notes.
South Africa, with its relatively developed financial ecosystem
and infrastructure, and its significant reserves of critical minerals
such as manganese, should be the best-placed country in the
region to benefit from any beneficiation drive linked to the
energy transition.
DE-INDUSTRIALISING
But South Africa is de-industrialising and losing its capacity to make
stuff – or to “beneficiate”. The power and logistics crises have forced
the country’s largest steel maker, ArcelorMittal South Africa, to shut
down its long steel operations.
So, the likes of Kumba Iron Ore will see an already small domestic
market for its product evaporate, leaving exports as its only option.
But Kumba has had to curtail production for export because it can’t
move all its product to port by rail in the face of Transnet’s meltdown.
As noted before, policy blunders by the Department of Trade,
Industry and Competition – such as a new preferential pricing
system for scrap, a 20% export duty and a ban on scrap exports –
have also undermined intensive steel operations.
The ANC statement also said: “Our manifesto will outline
industrial policy measures to ensure more of what is consumed by
us is produced by us.”
Yet its policies have led to de-industrialisation, and power and
logistics failures.
You also need to extract minerals before you “beneficiate”, and the
Department of Mineral Resources and Energy can’t seem to finalise
mining rights applications.
At this rate, South Africa in a few years will be lucky if it can
process ore Zimbabwe-style to ship to China for further processing.
And the factory jobs will remain in China. S
Rustenburg, Sibanye-Stillwater.
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mining
In pursuit of quality
Mpumalanga Valve Services supplies compressor valves and related equipment nationally, focusing on the mining, chemical,
fuel and process plant food industries as well as Eskom power stations.
MMpumalanga Valve Services places a high priority on customer
satisfaction and meeting customer requirements. It pays particular
attention to its ability to provide cost-effective and professional
solutions, deliver efficient services and utilise streamlined processes
for managing its customers.
The company has inculcated into its ethos the conviction that topquality
client service and the capacity to deliver to client demands
are non-negotiable and critical to its continued success. To ensure
that clients receive a level of service and delivery that surpasses those
offered by competitive companies, Mpumalanga Valve Services has
adopted a client-centric strategy that embodies the elements that
our clients believe are important to their business. These elements
are service, price and product. The result is a value-adding service.
Even though Mpumalanga Valve Services is a young company
in comparison to its competitors, it has a strong foundation in
its directors who have experience and knowledge in pumps and
valve supply. The strong business acumen of the company ensures
that Mpumalanga Valve Services is a value-adding contributor
to the client value chain. We believe our clients are the experts in
businesses; all we are doing is strengthening their expertise with
quality products and an industry-leading service drive. S
Tel: 060 369 0431
073 794 5070
Address: 13 Hektaar Street, Middelburg, Mpumalanga Province
Email: mpumalangavalveservices@gmail.com
SERVICES
- Strip and access
- Refurbishment of valves
- Repack on glands
- Replacement of gaskets
- Unblocking of lines
- Camera inspection
- Pressure testing
- Assist with plant maintenance on valves
- Standby valve experts on call 24/7
MISSION
- To establish good relationships with our clients and stakeholders
- We provide high-quality services and products
- We promote high standards of customer service
- To create a working environment for our employees that
promotes their growth and development
VISION
To build a successful business that is renowned for quality
services and products. In addition, we envision contributing to
skills transfer and sustainable community development through
employment creation.
SUPPLY
- Valves
- Gaskets
- Packings
- Bolts and nuts
- Metal-flex gaskets
- O-rings
- Viton gaskets
- Mechanical spares
30 | Service magazine

mining
S
Pump and valve supply specialist
Mpumalanga Valve Services is a pump and valve supply company in South Africa with a focus on the mining sector. Service
speaks to CEO, Tshepo Mabona.
Please tell us about Mpumalanga Valve Services.
Mpumalanga Valve Services started as an idea that manifested itself
into reality. The name is not just a name; it is a symbol of hope to
many of our employees. Behind the name is a group of individuals
who wake up every day and wear their uniform with pride and joy
to make a difference in their lives. To add to that, Mpumalanga Valve
Services is a valve refurbishment company in pursuit of quality and
customer satisfaction.
What is the company’s mission and vision?
To build a successful business that is renowned for quality services
and products. In addition, we envision contributing to skills transfer
and sustainable community development through employment
creation. To provide high-quality services and products. We
promote high standards of customer service. To create a working
environment for our employees that promotes their growth and
skills development.
Please give an overview of your offerings.
My offering is the biggest skill that I possess namely that of
refurbishing valves together with my communication skills and the
systems and processes that I have put in place to make sure that the
company flourishes. However, it’s not only my contribution but also
each and every one who wakes
up every day and puts on their
uniform with pride and joy.
What benefits do you offer
the mining industry?
We offer quality services and
products at reasonably low
prices. We constantly innovate
brilliant ideas to make the
means of production more
efficient. We hire qualified
people to get the job done.
How can Mpumalanga Valve
Services help government?
We are already helping the
government through our CSI
initiatives. We currently assisting
a disability centre in Middelburg
and will be assisting a less
Tshepo Mabona, CEO,
Mpumalanga Valve Services.
privileged school in Doornkop. We push CSI initiatives as much as we
push production on-site. We, as businesses, need to take accountability
and give back to the societies we operate in. We
create employment through our enterprise
development by assisting startup businesses.
The startup business will employ two or more
people. We intend to train TVET students
who want to pursue mechanical engineering
careers. We also offer bursaries to students.
Please discuss the opportunities and
challenges that your sector is
facing currently.
There is a lot of competition in our sector,
which also results in driving prices down
to stay in business. Shortage of highly
skilled and qualified workers. Some of our
competitors use inferior materials during
production, and some of them do not have
the required tools or equipment and as a
result their services are cheaper.
There are opportunities in this sector
especially since we are a BBBEE level one
company but you can’t just sit and hope for
an opportunity, you need to get up and chase
the opportunity. S
Service magazine | 31

S
waste
The South African Plastic Pact
Opening remarks by Barbara Creecy, Minister of Forestry, Fisheries and the Environment at the South African Plastic Pact
CEO Engagement Breakfast, Cape Town.
T
“The United Nations Environment programme tells us that around
the world, one-million plastic bottles are purchased every minute,
while up to five-trillion plastic bags are used worldwide every year. In
total, half of all plastic produced is designed for single-use purposes
– used just once and then thrown away.
A recent Business Day article said that by 2050 there will be so much
plastic in the sea that its volume will equate to 33-billion elephants!
Plastics including microplastics are now becoming part of the
earth’s fossil record and a marker of the Anthropocene, our current
geological era. They have even given their name to a new marine
microbial habitat called the “plastisphere”.
Globally pressure has increased to secure multilateral efforts on
tackling plastic pollution. In 2022, the Fifth Session of the United
Nations Environment Assembly (UNEA5) decided that a legally
binding instrument should be developed to coordinate global efforts
to end plastic pollution.
Through the South African Plastics Pact and
other forms of government action, our country is
making progress in addressing plastic pollution.
The third session of the Intergovernmental Negotiating Committee
met in 2023 to consider the zero-draft text of this instrument. One
of the key obligatory measures proposed by the zero draft-text of
the legally binding instrument is the reduction of problematic and
avoidable plastic products, including short-lived and single-use
plastic products and products with intentionally added microplastics.
I have been briefed by the South African negotiators that were
in Nairobi (INC-3) that although South Africa and other member
states called for intersessional work to exchange information on
problematic and avoidable plastic products, consensus could not be
reached at the third meeting.
This is disappointing news and reflects the difficult road which lies
ahead for effective action at a global level to combat plastic pollution.
I am, however, pleased to say today that through the South African
Plastics Pact and other forms of government action, our country is
making progress in addressing plastic pollution.
Four and a half years ago when I was appointed to this ministry,
I was lobbied to ban short-lived and single-use plastics. At that time,
I had to weigh up the consequences of this action for the plastics
industry and the likelihood of such a ban being enforceable.
Having weighed up the issues I concluded that a combination of
voluntary approaches to the plastics industry coupled with improved
household and community waste disposal and the creation of
Extended Producer Responsibility (EPR) schemes was a better option.
Through this approach, I am pleased to say that the South African
Plastic Pact has already identified unnecessary and problematic
plastic products and is committed to eliminating unnecessary and
problematic plastics; ensuring that 100% of all plastic packaging
is reusable, recyclable or compostable and that 70% of plastic
packaging is effectively recycled. It is also committed to using 30%
of average post-consumer recycled content in plastic packaging.
From the side of government in 2020 we adopted the National
Waste Management Strategy, which prioritises three strategies:
• Support and strengthen municipal waste management services to
prevent plastic from leaking into the environment.
• Increase waste diversion from landfill through various approaches
including EPR schemes to collect, reuse and recycle plastic waste
to promote a circular economy in the plastic industry.
• Promote public awareness and clean-up campaigns to remove
plastic waste from rivers, wetlands and beaches. Enforcing
compliance is also an area of focus.
In 2020, government also introduced the Extended Producer
Responsibility regulations which called for EPR schemes for plastic
32 | Service magazine

waste
S
packaging and electrical and electronic equipment among other
prioritised products. This circular economy and EPR initiatives
have resulted in the formation of five registered extended producer
schemes that support plastic waste collection and recycling.
Our EPR regulations aim to influence product design to take
environmental considerations into account and are currently being
implemented for paper, packaging and some single-use products,
lighting, electrical and electronic products.
These efforts have removed 368 600 tons of plastic waste from the
environment and they have supported between 60 000 and 90 000
waste reclaimers and created 7 500 formal jobs.
In 2023, government put a restriction of a minimum of 50%
recycled content as part of the product design measures for plastic
carrier bags. The intention is that by 2027 plastic carrier bags and
black refuse bags should be made from 100% recycled material.
Because we share industry’s concerns regarding the contribution
illegal dumping makes to the leaking of plastics into the environment,
we recently launched the Municipal Cleaning and Greening
programme. This partnership with provinces and municipalities targets
clearing 7 251 illegal dump sites, by creating more than 37 000 work
opportunities under our public works programme.
I am confident that with the acceleration of the cleaning
programme, 100% of the identified hotspots will be cleared by the
middle of 2024.
The workers clean daily and educate their communities on how to
dispose of waste responsibly.
Through the Top 40 programme, government has prioritised
40 municipal landfills for improved compliance through a public/
private partnership model currently championed by Infrastructure
South Africa. Together with CoGTA and National Treasury, we have
revised the Municipal Infrastructure Grant Policy so municipalities
can purchase waste collection and landfill management fleet, also
known as yellow fleet, to improve household collection and improve
landfill management.
Since the initiation of this programme, our department has
processed applications for specialised waste management vehicles
from over 100 municipalities across the country. In the last two years,
we have spent over R164-million to buy 44 waste collection vehicles
and 21 landfill management waste vehicles for 58 municipalities.
As we collectively assess the contributions our voluntary work
has achieved, we will need to evaluate the role of regulation and
enforcement in taking forward our collective effort to reduce plastic
pollution. Our experience in the extended producer schemes is that
the Green Scorpions have an important role to play in targeting free
riders (those trying to benefit without making an effort) and those
refusing to comply.
Going forward we now know that if we do not address problematic
plastic products, they threaten the reputation and hence the future
of all plastic products. Consequently, we will need regulatory
instruments to ensure greater compliance in removing problematic
plastics from our ecosystem and ensure those who have refused to
join the Plastics Pact also comply with the systematic changes we are
trying to implement.
Let me take this opportunity to thank you all for the work we have
done together thus far. Because our journey is long, we will need to
continue together, because together we can lead the change both
people and nature need from us.” S
The Municipal Cleaning and Greening initiative will be
implemented in 14 prioritised municipalities across the nine
provinces through the Department’s EPWP mass employment
in-house model, which allows it to implement and manage
projects using its own staff.This initiative is dedicated to
combating environmental degradation and eliminating litter
and illegal dumping throughout our nation. The programme’s
core focus is to achieve these goals through extensive public
employment, emphasising empowering women, youth and
individuals with disabilities.
Barbara Creecy, Minister of Forestry, Fisheries and
the Environment.
Service magazine | 33

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ocean economy
Ocean innovation and
the blue economy
The world’s oceans and seas, critical in the broader climate change
discussion, also offer a wealth of new, sustainable business opportunities.
T
Torsten Thiele, founder of the Global Ocean Trust, believes Africa
has an opportunity to leapfrog more developed regions in the blue
economy space. The blue economy, defined by the UN as a range
of sustainable and socially equitable economic activities related to
the oceans, seas and coastal areas, offers immense opportunities to
investors, entrepreneurs and communities.
KEY OPPORTUNITIES FOR AFRICA
“In Africa, the opportunity is vast,” Thiele says. “Because there is
less traditional infrastructure in place, there is room to build a
new blue economy, faster. Per dollar invested, the returns to be
achieved in a blue economy are larger in Africa than they are in
more developed countries.”
Thiele says, “Seaweed alone is a great sector, for example. You can
eat it, use it to replace plastic, for biofuel, fertiliser, cosmetics and
more.” The World Bank estimates that 10 emerging global seaweed
markets have a potential growth of up to $11.8-billion by 2030.
Nassim Oulmane, acting director of the technology, climate
change and natural resource management division at the UN
Economic Commission for Africa, believes one of the most
promising opportunities in Africa’s blue economy lies in blue
carbon development and the trade of related credits, particularly
in mangrove, seagrass and tidal marsh ecosystems. He says, “These
ecosystems have a remarkable capacity to sequester carbon and
greenhouse gases, surpassing even tropical forests in efficiency.
The related carbon credits are in high demand across global
markets, offering a significant incentive for increased investment
in ecosystem conservation.”
Oulmane says a notable success story is the “Mikoko Pamoja”
project in Kenya, which exemplifies the potential of blue carbon
initiatives. “These ventures not only combat climate change but also
foster the sustainable livelihoods of local communities, including
youth and women employment and educational opportunities.
Additionally, they contribute to the development of water treatment
facilities, aligning with Africa’s commitments to the Paris Agreement,
the Convention on Biological Diversity (CBD), Sustainable Development
Goals (SDGs), Agenda 2063 and more,” he says.
“Furthermore, innovative approaches that enhance the protection
and conservation of seagrass and mangroves hold substantial promise.
For instance, by increasing seagrass protection, it is estimated that the
world could save 650-million tons of CO2 annually [World Bank].
Similarly, bolstering mangrove conservation efforts could prevent
flooding for six-million people and help countries avoid losses of
productive assets valued at approximately US$24-billion [World Bank].”
However, the degradation of the oceans is such that we need to
accelerate our efforts and move to a much larger scale. That’s why the
Great Blue Wall initiative, led by IUCN and UNECA in partnership
with other actors such as OceanHub Africa, is a real innovation.
This initiative, championed by several coastal African countries,
focuses on cooperation in the fields of the blue economy, ocean
regeneration, maritime safety and the sustainable management of
marine resources in general. It aims to establish a first-of-its-kind
connected network of seascapes to benefit people and nature. The
initiative presents innovative approaches to safeguarding the oceans
while promoting economic development and providing a blue
response to climate change and its negative consequences.
INVESTMENT TO GROW NATURAL CAPITAL
Thiele says guided investment is needed to grow natural capital.
“Instead of building the economy with a capital-intensive approach,
a science-based approach should be taken to build innovative African
startups, which requires less capital and delivers greater returns over
the longer term.”
He notes, “The traditional venture finance model is one of ‘winner
takes it all’ so investors tend to run with ones which have really large
returns. However, project finance is more appropriate for the blue
space, to help build sustainable, solid blue businesses. It is a longerterm
approach, the way we used to build businesses.”
Thiele says financing flows for blue economy projects remain a
hurdle. “Large investors don’t always see the pathways to get the
money to the investments. We need to construct the pathways.” He
notes that the Ocean Risk and Resilience Action Alliance (ORRAA)
drives investment into coastal and ocean natural capital through
finance and insurance products that reduce risk. “The Alliance helps
to develop guarantee facilities and build the support mechanisms.
It’s a very dynamic conversation and it may sound complex to
investors. It’s a constant handholding argument. However, we have
been encouraged to see that large financial institutions are showing
interest – particularly through their sustainability divisions.”
Thiele believes forums such as the Ocean Innovation Africa
Summit offer an important opportunity for multiple sectors across
blue economy value chains to share ideas.
CHALLENGES AND THREATS
“A challenge for ocean-focused networks is they don’t have
connectivity into other sectors. We need collaboration across value
chains, including stakeholders in terrestrial climate, business,
technology and finance. All sectors need to consider the world’s
34 | Service magazine

ocean economy
S
largest under-tapped resource. Even landlocked states are relevant
players in the ocean context because their goods will be shipped by
sea,” Thiele says.
Oulmane highlights several challenges and threats that must be
addressed: “First, there is a considerable capacity gap in unlocking the
potential of blue carbon initiatives. Building the knowledge and skills
necessary for effective conservation and credit trading is essential.
“Secondly, a substantial public-private investment gap exists in the
blue economy sector. The ocean, often viewed as a public good with
inherent risks, requires a shift in perception. Advocacy, awarenessraising
campaigns and training on the opportunities available in the
blue economy are needed to attract private sector investment,” he says.
“A stark disparity in investment is evident when comparing
terrestrial protected areas to marine natural capital investments.
Investment in terrestrial protected areas amounted to about
US$23-billion, while marine natural capital investments were only
US$980-million [UNEP]. To address these challenges, increased
support from the Green Climate Fund for Small Island Developing
States (SIDS) in the Eastern and Southern Africa region is crucial.
Such support can help bridge the investment gap and unlock the
immense potential of Africa’s blue economy.”
INNOVATION IN FUNDING AND POLICY
Oulmane highlights some noteworthy innovations in terms of
financial tools: “Seychelles, Gabon and Cabo Verde have pioneered
debt-for-nature swaps that allocate funds to blue economy and ocean
conservation. These innovative financial mechanisms address both
debt relief and environmental sustainability.”
In addition, Seychelles made history by issuing the world’s first
Sovereign Blue Bond. This innovative financial instrument raises
capital for sustainable fisheries and marine conservation projects
while aligning with the country’s debt management.
He notes: “The Cabo Verde Stock Exchange’s Blu-X initiative
serves as a regional platform for listing and trading sustainable and
inclusive blue financial instruments. Through four bond issuances,
it has attracted domestic, regional and global investments in Cabo
Verde’s blue economy. At the policy level, innovations such as the
Blue Economy Valuation Toolkit and the development of Blue
Economy Satellite Accounts help quantify the economic value of
marine resources and ecosystems. These tools inform sustainable
policymaking and investment decisions.
“These examples showcase the innovative spirit within Africa’s
blue economy sector, where nations are actively exploring novel
financial instruments, collaborative approaches and data-driven
tools to ensure that ocean conservation and economic development
go hand in hand, contributing to a sustainable and resilient future.”
ADDRESSING FRAGMENTED GOVERNANCE
Loreley Picourt, executive director of the Ocean & Climate Platform,
will also be among the international experts travelling to South
Africa for the event.
She says, “One challenge is reconciling blue economy opportunities
with sustainable practices. We need to be realistic, respectful and
mindful of how we manage the ocean while also taking into account
cultural, indigenous and local knowledge and practices. We have an
opportunity to reinvent how we govern, to be inclusive and mindful
of how we share the benefits.
“We have an opportunity to acknowledge that the ocean connects
us all, instead of dividing us. It is not just ecosystems – it’s the blue
lung of the planet. In terms of geopolitics, it also brings us together,”
she says.
She points to the new BBNJ/High Seas Treaty signed by
representatives from over 80 countries, which aims to cover critical
gaps in ocean governance and protect the biodiversity of the High
Seas and deep sea, as a sign of progress. “This is a groundbreaking
treaty – it will address issues of access and equity. It will define who
has access to the wildest place on earth and how the benefits, new
knowledge and resources are equitably shared,” she says.
Picourt notes that governance is a complex field. “We know it is
critical to protect and restore nature, but we also need to develop
sustainable green and grey infrastructure adapted to withstand
extreme weather events. Thus, we need to better understand how the
threat of sea level rise will be integrated into different strategies. The
world is at risk of sea level rise, erosion, floods, drought and other
coastal hazards. We must work on long-term strategies to anticipate
the impacts, rather than just responding to them.” S
Mangroves.
Service magazine | 35

S
water
The quality of South Africa’s water
The Department of Water and Sanitation recently released its 2023 Blue Drop Report, which provides an assessment of
drinking water quality, and the No Drop Report, which focuses on water losses and non-revenue water in all municipalities in
the country, as well as the Green Drop Progress Assessment Report to provide an update on the performance of wastewater
management systems at municipal level.
T
The Blue, Green and No Drop Certification programmes are
aimed at improving municipal drinking water quality, wastewater
management as well as water conservation and demand
management. The reports keep the public and stakeholders
informed and updated with credible data and information about
the state of water and sanitation services in the country. Water
services institutions that achieve excellence in providing such
services are recognised. Owners of the infrastructure are provided
with advice and guidance as to how to improve their water and
sanitation services. The presentation accompanying the reports
outlines the interventions that are being put in place to strengthen
regulation and support to those municipalities struggling to
provide services to national norms and standards.
As the water sector regulator in terms of both the National
Water Act and the Water Services Act, the Department of Water
and Sanitation (DWS) introduced these incentive-based regulation
programmes in 2008. In 2014, DWS stopped the programmes. The
Minister of Water and Sanitation, Senzo Mchunu, reintroduced the
programmes in 2021. In 2022, DWS released a full Green Drop
Report and Blue Drop and No Drop progress reports.
36 | Service magazine

water
S
Fundamental reform is required to arrest and
turn around the decline in municipal water and
sanitation services.
THE 2023 BLUE DROP REPORT
The Blue Drop report is a comprehensive assessment of the state of
all 958 water supply systems (WSS) in each of the 144 water services
authorities (WSA) in the country. For each WSS, assessments are
carried out of the condition of the infrastructure; whether the
required maintenance is being done on the infrastructure; the
infrastructure is operated correctly; proper treatment processes are
followed; proper monitoring and controls are in place and staff have
the necessary skills and qualifications.
Twenty-six water supply systems scored more than 95% and
qualified for the prestigious Blue Drop Certification. In 2014, 44
WSSs were awarded Blue Drop status. This indicates an overall
decline in excellence between 2014 and 2023.
Of the 958 WSSs, 277 (29%) located in 62 WSAs were identified to
be in a critical state of performance. In 2014, 174 WSSs in 33 WSAs
were found to be in a critical state of performance. This indicates
that there has been an overall increase in the number of systems in
a critical state of performance between 2014 and 2023.
Drinking water systems in the major metropolitan areas are
performing well in terms of the Blue Drop key performance areas.
Gauteng has the highest percentage of drinking water systems with
excellent or good performance (62%), followed by the Western Cape
(50%). (The water supply disruptions which have been experienced
in Gauteng in recent months are caused by the demand for treated
water occasionally exceeding the available supply of treated water.)
The Northern Cape has the highest percentage of drinking water
systems with poor or critical performance (87%). This has deteriorated
from 48% in 2014. The percentage of drinking water systems with poor
or critical performance in the Free State has also deteriorated markedly
between 2014 (31%) and 2023 (59%).
Based on water quality tests carried out by municipalities
themselves during the 2021/22 municipal financial year, 54% of
water supply systems achieved excellent or good microbiological water
quality compliance, and 46% achieved poor or bad microbiological
water quality compliance. In 2014, 5% of water supply systems achieved
poor or bad microbiological water quality compliance. This indicates
a severe regression in drinking water quality between 2014 and 2023.
Drinking water quality is good in the major metropolitan areas.
When the tests carried out by a municipality indicate that
drinking water poses a health risk, the municipality is obliged by
law to inform its consumers that the quality of the water that it is
supplying poses a health risk. DWS has sent non-compliance letters
to the municipalities with systems which scored poorly or badly in
terms of drinking water quality in the 2023 Blue Drop Report.
These letters require the municipalities to inform their residents
should they still have poor or bad compliance. The public can
safely consume water from their taps if their municipalities indicate
that the water being provided is being tested and meets the legal
requirements – residents should check with their municipalities if
this is the case. The department provides monthly water quality
data received from municipalities on its Integrated Regulatory
Information System webpage.
The Blue Drop assessment found that 85% of drinking water
systems were in an average or better infrastructure condition.
This indicates that non-infrastructure factors such as a lack of
skilled staff or a lack of proper process controls are as important
as infrastructure conditions, if not more important, as contributors
to poor performance. The assessment found that Gauteng has the
lowest shortfalls of qualified staff and that the Northern Cape has
the highest shortfalls.
THE 2023 NO DROP REPORT
The No Drop Programme assesses the degree to which the drinking
water distribution systems of municipalities supply water efficiently,
without wasting water. Four WSAs scored more than 90% and
qualified for the prestigious No Drop Certification.
The assessment found that national non-revenue water (NRW)
increased from 37% in 2014 to 47% in 2023. This is caused by physical
losses, for example, water leaking out of pipes above or underground,
poorly functioning or non-existent water meters, illegal connections
and poor billing and revenue collection. The international average for
non-revenue water is 30%.
Average per capita water consumption nationally is approximately
218 litres/capita/day compared to the international average of 173 l/c/d.
This is an anomaly given that South Africa is a water-scarce country.
The Minister of Water and Sanitation, Senzo Mchunu.
Service magazine | 37

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water
To reduce non-revenue water, municipalities need to improve
operation and maintenance of their infrastructure; repair
leaks; improve metering, billing, revenue collection and debtor
management; improve pressure management; and engage in
community education and awareness; among other measures.
THE GREEN DROP PROGRESS ASSESSMENT REPORT
The Green Drop Progress Assessment report focuses on wastewater
treatment works (WWTWs). It found that 64% of WWTW are at
high or critical risk of discharging partially treated or untreated
water into rivers and the environment. The number of WWTWs in
the high- and critical-risk categories has increased since 2013. This
has negative environmental implications and poses risks to human
health, for example, cholera outbreaks are normally associated with
wastewater pollution of water resources.
CONCLUSION
The Blue and No Drop Reports indicate that there has been a
decline in drinking water quality and an increase in non-revenue
water since the last reports were issued in 2014. The Green Drop
Progress Assessment Report also indicates a deterioration in the
performance of municipal wastewater treatment systems.
DWS has requested WSA with water or wastewater systems in
a critical state to submit detailed corrective action plans to DWS
and are offered support to produce these plans. The minister and
deputy ministers of Water and Sanitation spend most of their
time crisscrossing the country visiting those municipalities with
severe challenges with water and sanitation services, and DWS
and Water Boards are supporting many of the municipalities to
implement improvement plans agreed to by the ministry and
municipal leadership.
DWS works with CoGTA, the Municipal Infrastructure Support
Agency, the Department of Human Settlements and National
Treasury to provide support to the worst-performing municipalities,
including allocating infrastructure grants worth more than
R20-billion per annum to municipalities, providing technical and
engineering support and assistance, capacity building and training,
as well as financial management advice and support.
However, despite all the support being provided to municipalities,
the drop reports indicate that water services continue to decline and
that fundamental reform is required to arrest and turn around the
decline in municipal water and sanitation services. In this regard,
DWS has recently gazetted the Water Services Amendment Bill for
public comment. The Water Services Act distinguishes between the
roles of Water Services Authority (WSA) and Water Services Provider
(WSP) in municipalities.
The WSA is the part of the municipality that is responsible for
ensuring that water services are provided according to national
norms and standards and the WSP is the part of the municipality
which is responsible for providing the service. The Bill introduces
a compulsory operating licence system for WSPs, to be managed by
DWS as the national regulator. This will enable WSAs to ensure that
WSPs have minimum competency, capability and performance levels
in future.
The national reports and detailed provincial reports are available
for download on www.dws.gov.za. S
38 | Service magazine

telecommunications
S
South Africa’s economic growth
requires a holistic approach to
telecommunications development
Following the SONA, where President Ramaphosa briefly spoke about telecommunications, several key points emerged.
These included the provision for additional spectrum, emphasising the importance of Internet connectivity infrastructure
development, addressing challenges such as loadshedding and the imperative of alleviating unemployment.
By Praveen Govender, Chief Sales and Marketing Officer at DFA, a subsidiary of Maziv
A
A comprehensive strategy is needed to harness the full potential
of telecommunications in driving economic growth and societal
progress. The principal takeaway is the need for a holistic view of
technologies as not competing but complementary, and that can
collectively serve the people and stimulate economic growth. With
the rollout of 5G and the imminent arrival of low-orbit, low-latency
satellite broadband, there is even more opportunity for the creation
of innovative products and solutions, leveraging the strengths and
price benefits of fit-for-purpose technologies.
SPECTRUM
The provision of additional spectrum for telecommunications has
been a priority, and Maziv is glad to see that this has continued
with the plans to auction off more high-frequency spectrum. The
spectrum availability will allow more flexibility for mobile operators
and licensed Wireless Internet Service Providers (WISPs) to fasttrack
Internet coverage to underserved regions of the country.
This should be viewed in tandem with the pending move to shut
down 2G and 3G services. We predict this will significantly impact
many South Africans who use feature phones as their primary (or
only) connectivity device. We support the decision to delay this action
while we gather more data and roll out additional infrastructure to
ensure that we don’t leave anyone behind.
Current estimates indicate that about 60% of South Africans still
use 3G devices, and about 4% are on 2G devices (based on 2022 data
from research company Omdia). This means that potentially just
under 36-million people could be affected by the change.
We recommend an approach that ensures that the loss of legacy
services is substituted with accessible alternatives. For example, while
2G devices are not likely to be Wi-Fi enabled, at least some 3G devices
will be able to make use of Wi-Fi delivered over fibre, fixed-mobile or
satellite. This consideration is crucial. The revised dates for switching off
2G and 3G, between June 2025 and December 2027, will allow for more
robust discussion while also protecting the secondary industries related
to these legacy devices, such as device resellers and repairs and secondhand
markets so that we preserve indirect micro-economies and jobs.
LOADSHEDDING
The sustained and increased loadshedding has had a devastating
effect on the telecommunications industry, necessitating the rapid
deployment of power solutions to maintain consistent services.
This includes a combination of generators, inverters and batteries,
significantly increasing operating costs for infrastructure operators.
These costs will inevitably be passed on to resellers and service
providers, and ultimately to consumers.
Market analysts predict a surge in mobile data prices, driven by
the rollout and maintenance of power backup solutions, along with
the increasing trend of theft and vandalism. This reinforces the
importance of offering complementary technologies to consumers,
allowing them to tailor their use according to their needs and
budget. For example, fibre to the home remains the cheapest
solution for high-speed, high-volume broadband consumption.
However, consumers should also have access to broadband while not
at a fixed location, where they need it. We must allow technologies to
complement each other, at accessible price points, for this to happen.
The provision of reliable, affordable power solutions to service
providers is also key to allowing the consumer to have affordable
access to multiple broadband options.
UNEMPLOYMENT
Although there was a slight decrease in unemployment reported
by the president from 45.3% to 43.4%, these numbers remain
concerning. There is no doubt that we need to address this. As Maziv,
one of our imperatives is the rollout of connectivity infrastructure to
enable businesses and stimulate underperforming local economies
to promote job creation. Large-scale digitalisation is likely to help
many small businesses become more professional and involved in the
broader national and global economy.
We predict that accelerated growth in the telecommunications
sector, strategic partnerships and rapid deployment could potentially
create and protect thousands of jobs. Government’s support and
participation in the telecommunications industry are critical. S
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skills development
Bridging the digital divide
CHIETA is a sector education and training authority that accelerates skills development in the chemical industries sector
and ensures that skills needs are identified and addressed. Service speaks to Yershen Pillay, CEO of CHIETA, about building
an innovative and employable workforce for South Africa.
What is the Chemical Industries Education and Training Authority’s
(CHIETA) mandate?
CHIETA is a statutory body that was established by the Skills
Development Act in 1998. CHIETA’s role in the sector is to facilitate
skills development as well as to ensure that skills needs are identified
and addressed through various training initiatives in the chemical
and manufacturing industries.
As a trusted partner in skills development and training for the
chemical sector, CHIETA funds the industry for various occupational
programmes as well as certain Technical Vocational Education and
Training (TVET) sector and higher education programmes.
Our mission is to facilitate skills development, education and
training through innovative solutions for sustainable livelihoods.
How do you empower South Africa’s youth?
CHIETA offers learnerships and other youth programmes
to unemployed youth to promote employability in line with
government policy as per the National Skills Development Strategy
(NSDS III) objectives.
CHIETA has entered into partnerships with various parties to
drive innovation, skills development and training in Africa. Our role
includes sourcing corporate entrepreneurs in the chemicals sector
to upskill them and identifying programmes linked to the Fourth
Industrial Revolution (4IR). The impact of this is that it will help
provide youth with skills to combat unemployment.
We offer a wide range of discretionary and mandatory grant
funding directed towards women, youth and people living with
disabilities.
Numerous bursaries flow into learning support and programmes
for retrenched employees, a fundamental way CHIETA supports the
Economic Reconstruction and Recovery Plan (ERRP).
Through its various programmes, including the upcoming
discretionary grant funding windows and working with corporations,
CHIETA provides potential opportunities for 615 internships, 1 085
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skills development
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We want to impact 100 000
livelihoods by 2025.
learnerships, 1 395 skills programmes and 1 285 TVET students for
Work Integrated Learning.
CHIETA offers unique training programmes providing practical skills
for matric graduates’ employability. Please tell us more.
CHIETA offers graduates or students looking for workplace
experience, work exposure or work-integrated opportunities in
the chemical sector. It also has iniatives such as work readiness and
job preparedness programmes, entrepreneurship development
programmes, mentorship and market access programmes to
support employability.
Please provide an overview of the learnerships and apprenticeships
that you offer.
CHIETA will also continue to support fundamental skills focus areas
including artisan training, learnerships, work-integrated learning
and coherent skills training programmes (also known as partqualifications)
that allow for immediate job mobility while leaving
the door open for candidates to further enhance their learning to
obtain the remaining parts of the qualification incrementally using
the lifelong learning principle.
The apprentice career fields include boilermaker, draughtsman,
electrician, fitter and turner, industrial machinery mechanic, instrument
mechanic, millwright occupational instructor, refrigeration mechanic,
rigger, truck driver and welder.
Learnerships are directly related to occupations in the various
fields of science, engineering and business.
Talk to us about CHIETA’s industry collaboration.
The organisation has adopted a partnership mode informed by
the four strategic pillars: innovation, collaboration, digitisation,
and transformation. The strategic value of this approach is the
contribution of these partnerships towards consolidating the
organisational capacity to deliver stakeholder value and achieve the
desired social impact.
TVET college sector partnerships and Community Education &
Training College (CET) partnerships play a critical role in the supply
of skills:
Coded Welding (pilot project) with TVET colleges. A pilot
project on blended learning to explore e-learning using the Coded
Welding Skills Programme to curb youth unemployment, improve
livelihoods and support economic development. The lessons and
best practices would be shared towards the implementation of
e-learning in the chemical sector.
Sefako Makgatho Health Sciences University. CHIETA
funded Sefako Makgatho Health Sciences University to partner
with pharmaceutical companies to offer work-integrated learning
for undergraduate students who are studying pharmaceuticalrelated
qualifications.
Trade unions in the chemical sector. Reskilling of the chemical
industry’s retrenched workers.
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skills development
CHIETA/CHEMIN Innovation Hub. The
programme supports entrepreneurs in
developing ideas into profitable businesses
through incubation programmes.
CHIETA /UJ Multi-SETA Project. Grow
collaboration among SETAs (envisioned
partnership with EWSETA, ETDPSETA,
Services SETA, AgriSETA and INSETA).
The collaboration with the other SETAs for
cross-sectoral SMME development will enable
competitiveness and increased productivity of
SMMEs participating in this programme for
them to survive in the ever-changing business
environment. These SMMEs will be the catalyst
of job creation and economic growth.
CXI African Strategic Projects and Youth
Media Movement. The digital skills gained
from these projects will provide the youth with
an opportunity to enter occupations in high
demand and contribute significantly to the
digital revolution and economy in South Africa.
China Europe International Business
School (CEIBS). Support for corporate
entrepreneurs within the chemical sector to
grow the economy.
Smart Skills Centres in all nine provinces.
CHIETA/MICT SETA/INSETA. Partnering
on strategic projects that are aligned with the
organisations’ mandates and will contribute to:
• Economic empowerment
• Youth employability
• Food security
• Entrepreneurship and business support
• Digitisation and 4IR
The SETAs are partnering to identify the priority research areas
and conduct research to support the CHIETA, INSETA and MICT
sector skills plans.
CHIETA uses innovation in its training initiatives. How?
We not only use and encourage the support of e-learning and
blended learning methods as we forge ahead, but it is imperative
to strengthen our existing partnerships with both the private and
public sectors. Concomitantly, we must cement new and lasting
partnerships that will allow us to put the chemical industry on
the fast track to adopting 4IR and to continue to innovate in our
quest to eliminate poverty, reduce inequality and spur the economic
development of the country.
We aspire to be a fully digitised, innovation-driven SETA that is
not just about skills development, but about sustainable livelihoods
and improving the quality of life. We want to support the end-to-end
value chain of sustainable livelihoods.
We conduct virtual reality-based training and the use of AI in
education and training. We want to impact 100 000 livelihoods by 2025.
What is CHIETA’s perspective on tackling unemployment?
We can improve the agility of educational and training institutions.
When the economy needs new skills, how fast can the country’s
training providers react?
An essential pillar of CHIETA’s vision is to overcome the difficulty
that many communities in South Africa, predominantly in rural
areas, have in accessing digital skills and opportunities. Therefore,
bridging the digital divide is crucial if the country is to address the
challenges around skills.
The impact of upskilling people in 4IR-linked programmes is that
it will help provide youth with skills to combat unemployment.
What are some of CHIETA’s success stories that illustrate the
tangible impact of your initiatives?
CHIETA received a clean audit, met 100% of its targets and grew
levy income year-on-year from R592-million to R621-million.
CHIETA is determined to continue making a difference and
working on the hydrogen economy for which it has gained a growing
reputation as a leader in the green economy.
We take comfort from the fact that we are putting resources
behind dozens of young girls interested in science – at least 217 last
year – with positive results to boot.
The Eastern Cape Department of Education recognised hardworking
matriculant Liyabona Ncanywa as one of the province’s top
achievers in the 2023 national senior certificate examinations. CHIETA
assisted her with tuition and school fees through its science, technology,
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skills development
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Bridging the digital divide is crucial if the
country is to address the challenges around skills.
engineering and mathematics (STEM) fund that supports 1 000
learners nationwide.
Please discuss CHIETA’s role in addressing high unemployment
rates among the Class of 2023.
In the past year, CHIETA supported the Economic Reconstruction
and Recovery Programme of the government through three
programme initiatives, namely:
• Occupationally directed programmes
• The STEM programme to grow the number of women and
people with disabilities entering the chemical industry
• Support programmes for cooperatives, SMMEs, non-government
organisations and community-based organisations in both rural
and urban areas
training we don’t want to train for the sake of training and contribute
to employment. Our broader goal is to improve the quality of life
by focusing on sustainable livelihoods. We focus on reskilling and
upskilling people to ensure they can have sustainable livelihoods. As
industries like ours and others digitalise, we see a demand for what
one could call cross-over skills, skills that are as valuable in mining or
retail as they are to our industry, which means that we must broaden
how we interpret our remit. S
These have yielded positive strides and evidence of success since
inception.
CHIETA’s role in the implementation of an innovation, skills
development and training programme in Africa, includes sourcing
corporate entrepreneurs in the chemical sector to upskill them and
identifying 4IR-linked programmes.
One major programme launched during 2023 is the Smart Skills
Centres, in which rural learners are taught digital skills to keep
abreast with artificial intelligence developments. CHIETA intends
to establish these centres in all nine provinces.
Another project that stands out is the AlgoAtWork Robotics
Academy in Richards Bay, in which children are taught essential
skills for an AI-driven workplace in the future.
How do we start building an innovative and employable workforce
for South Africa?
We can improve the agility of educational and training institutions.
As an innovation leader in education, skills development and
Yershen Pillay, the Chief Executive Officer of CHIETA.
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provincial focus
Limpopo Province: the portal
to Africa
Limpopo Province is the cultural calabash of South Africa, boasting three national parks, lush forests and amazing flora and
fauna where the Big Five can be seen roaming. The province is a melting pot of diverse cultures and different traditions and
a thriving hub of innovation, mineral wealth and investment.
PROVINCIAL OVERVIEW
Limpopo Premier Chupu Stanley Mathabatha reports on successful infrastructure projects and invites investors to participate
in growing the regional economy.
T
The Provincial Socioeconomic Recovery Plan is anchored in our
intention to promote the industrialisation of the province through
mega-projects in the agricultural, manufacturing and tourism sectors.
Over the next five to 10 years, we expect more than 48 000 jobs to
be created as investments and interventions are ramped up to a total
projected amount of R170-billion. We are committed to the Musina-
Makhado and Fetakgomo-Tubatse Special Economic Zones (SEZs),
each of which will attract different types of investors.
More than 6 000 jobs will be created with the implementation of
the Industrial Parks Revitalisation Programme in all five provincial
districts. The Critical Infrastructure Programme has approved
R49.9-million for refurbishing Seshego Industrial Park.
Central to these recovery efforts is positioning Limpopo as an
investment destination of choice for domestic and foreign investors.
This will enhance the much-needed creation of employment,
particularly for young people.
Several projects point to the priority that we have allocated to
the Limpopo e-Government Strategy Implementation Plan. Fibre
The municipalities of the Limpopo Province.
and satellite technologies have been employed to connect more than
50 sites to the network. The provincial government’s first projects
to digitise administration will be in the healthcare, education and
transport sectors.
Through the Musina-Makhado SEZ (MMSEZ), we aim to be a
leading producer of energy through the production of coking coal
found in huge reserves in Musina. We are ready to move with speed
in the implementation of this project. At the Fetakgomo Tubatse
SEZ, several investors, such as Mintek, have committed to take sites.
MAIN LANGUAGES
Sesotho, Xitsonga and Tshivenda. English is widely used in
business and government.
REGIONAL OVERVIEW
By John Young
In Polokwane, construction of the 488-bed Limpopo Central
Hospital, which National Treasury approved plans for, has started
and will become one of South Africa’s five
academic hospitals.
In the Sekhukhune District, at GaMalekane,
Steelpoort, a long-awaited multi-lane steel
bridge will replace the old single-lane one.
In the north of the province, several tourism
projects have been launched in the last 18
months with a few more in the pipeline.
Eight mining companies in the Eastern-
Limb Cluster in the Fetakgomo-Tubatse Local
Municipality have contributed to constructing a
new road bridge at the intersection of the D2219
and R555. Roads Agency Limpopo is managing
the project for which R127-million has been
budgeted. A total of 12 partnerships between
the Limpopo provincial government and various
mining houses has a value of R1.1-billion.
In the Lephalale region, Exxaro has partnered
with government to operate a satellite office in
support of small business.
Another investment being made in the
Limpopo mining sector is the expansion
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provincial focus
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Olifants River flows through the Kruger National Park from
west to east roughly half way up the game reserve.
project at Northam Platinum’s Metallurgical Complex which has
linked increased volumes with better and cleaner environmental
efficiencies.
Kruger National Park, Mapungubwe in the north and Marakele in
the Waterberg are run by South African National Parks (SANParks)
and attract large numbers of tourists every year. The combined
land area of Limpopo’s national, provincial and private reserves is
3.6-million hectares. The provincial government has committed to
enhancing the value of Limpopo’s two UNESCO World Heritage
Sites, Makapans Valley and Mapungubwe. This is a priority
programme in the National Tourism Sector Strategy. The Waterberg
Biosphere Reserve is a UNESCO-protected site. Some nature
reserves will be commercialised using private-public partnerships,
starting with Masebe, Rust de Winter and Lekgalameetse. The
Limpopo Department of Economic Development, Environment and
Tourism is responsible for 53 provincial nature reserves.
links the province to Botswana to the west and Mpumalanga to
the east.
- Most of South Africa’s major logistics operators have established
hubs in Polokwane and Musina.
- Limpopo has a sophisticated rail network which Transnet Freight
Rail aims to expand, primarily to haul the province’s vast reserves
of coal away to the coast at Richards Bay.
- The province is home to the University of Venda and the
University of Limpopo as well as seven TVET colleges. The
Turfloop Graduate School of Business is in Polokwane.
- The Polokwane International Airport, almost equidistant from
Johannesburg, Botswana, Zambia, Zimbabwe and Mozambique,
has been refurbished to position itself as a cargo hub for the region.
AGRICULTURE
Tomato producer, ZZ2, has entered the avocado category to diversify
its product range. A joint venture between ZZ2, Mission Produce and
Criterion Africa Partners will see more than 1 000ha of avocado
orchards developed.
The National Empowerment Fund will support Lebowakgomo
Abattoir, a provincial government poultry project, in the amount
of R32-million, to assist small-scale farmers and broiler producers.
Farmer production support units provide clusters of services,
including livestock auction facilities, mechanisation services and
training centres for farmers in Sekhukhune (grain and cotton);
Mopani (vegetables); Waterberg (red meat) and Capricorn (potatoes).
Since the initiation of Koba-Tlala Production Brigade Project
in 2022/23, the South African Defence Force has procured over
R1-million worth of fresh produce from the farmers involved. An
additional 32 collection points have been established to allow smallscale
farmers near military centres to sell their products.
Cotton growing is experiencing a renewal in the province. The
provincial government’s programme for revitalising irrigation schemes
is helping. In Ephraim Mogale Municipality, 345 hectares of cotton
have been planted which will benefit 74 local small-scale farmers.
The contribution of Limpopo agriculture to national agriculture is
7.6% although its contribution to provincial GDP is just 2.3%. Agroprocessing
has enormous potential to expand in every subsector.
GEOGRAPHY
- Polokwane is the capital of Limpopo.
- The province’s 125 754km 2 covers 10% of South Africa’s land
mass and is home to about 10% of the country’s population.
- The N1 highway which plays a vital role in the nation’s logistics
sector passes through Limpopo from the south to the border
town of Musina and on to Zimbabwe and its neighbours in the
Southern African Development Community. The N11 highway
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provincial focus
Limpopo’s fruits and vegetables form an important part of South
Africa’s export basket. In response to this demand and the potential
of the Chinese market, almost 1 000ha per year of new land is being
planted with avocados and another 1 000ha with macadamias.
Limpopo grows three-quarters of South Africa’s mangoes and
two-thirds of its tomatoes. The Waterberg District produces large
quantities of red meat while Capricorn has potatoes in abundance,
and Vhembe in the north specialises in citrus and subtropical fruits.
The world’s largest avocado grower, Westfalia, part of the Hans
Merensky Group, produces significant quantities of mango, litchi,
citrus and macadamia and has three agri-processing plants in the
province. Greenway Farms supplies about 45% of the fresh-market
carrots consumed in Southern Africa under the Rugani brand.
VKB Milling has eight silos and 29 retail outlets in Limpopo.
ENERGY
The province that has huge reserves of coal is paying serious
attention to renewable energy. Provincial and municipal bodies are
encouraged to promote energy-production projects.
The draft 2023/24 Integrated Development Plan of the Waterberg
District Municipality refers to the Nalane Green Solar Energy
Project, which is implementing its R5-billion investment plan.
Samancor intends to build a 60MW solar PV plant to help power
its Tubatse ferrochrome smelter complex in the Sekhukhune District
Municipality. A battery energy storage system will form part of the
energy installation.
Ivanhoe Mines is building its own 5MW solar plant and has
signed an offtake agreement with Renergen to access the electricity
generated by that company’s gas and solar plant in the Free State.
Both SEZs in Limpopo are entering the green hydrogen market.
MMSEZ has also signed an agreement with a Chinese company
for the first phase of a project that will supply 1 000MW of solar
power to support the SEZ’s metallurgical complex. The two local
municipalities in the area have been allocated R147-million by
provincial government for infrastructure upgrades, including
electricity. The Fetakgomo-Tubatse SEZ also has intentions of
attracting green power.
A public-private planning exercise, the Impact Catalyst, is working
on focus areas that include biofuels and intends to prepare the
province for the emergence of new sectors such as renewable energy.
Exxaro’s coal mine at Grootgeluk (which supplies Eskom power
plants) will be the site of an 84MW solar project and Northam
Platinum is building a 10MW solar plant at its Zondereinde smelter.
At Northam’s Eland Mine, a PV solar project serves the dual
purpose of keeping engines cool in the car park while producing
energy from PV panels. The solar farm will generate approximately
1 800MWh of power yearly (4% of annual electricity demand).
The concentrator of the Mogalakwena mine run by Anglo
American Platinum (Amplats) relies on a constant electricity supply.
Implats uses natural gas to supply its refinery in Springs. In Phase
One of the project, 20 Doosan fuel cells generate 8MW of power.
The long-term goal is to generate 30MW.
MINING
The region’s soils are rich in PGMs, coal, copper, diamonds, gold, iron
ore, nickel, rare earth minerals and tin. The province contributes 4%
of coal mining nationally, but within the next three decades, it will
likely supply about half of South Africa’s coal.
Waterberg coalfield is estimated to contain about 75-billion tons of
coal. Exxaro’s two coal mines in the Waterberg represent three-billion
tons of measured coal resources and 1.8-billion tons of indicated coal
resources. This is where Exxaro operates its giant Grootegeluk Mine.
Nine plants serve a 4km-long and 120m-deep opencast mine on a 1
200ha site. Originally intended to supply the nearby power plants,
Exxaro is now eyeing the export trade with Ethiopia, Egypt and
Pakistan as potential markets.
Mineral beneficiation is a key component of the MMSEZ and coal
is needed for manufacturing steel. The Fetakgomo-Tubatse SEZ will
focus on the beneficiation of PGMs, magnetite, vanadium and chrome.
Palabora Copper, a subsidiary of Palabora Mining Company,
produces about 45 000 tons of copper annually, most of which is sold
domestically. It runs a smelter and a refinery and mines magnetite,
vermiculite, sulphuric acid and nickel sulphate.
Venetia Mine.
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provincial focus
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LIMPOPO’S ASSETS
Largest diamond mine in South Africa: De Beers Venetia Mine
Biggest copper mine in South Africa: Palabora Mining Company
Vastest open-pit platinum mine in South Africa: Anglo
America’s Mogalakwena and the biggest vermiculite mine in
the world.
The province has 41% of South Africa’s PGMs, 90% of South
Africa’s red-granite resources and approximately 50% of the
country’s coal reserves. Antimony, a highly strategic mineral
found in large quantities in China, is another major asset. The
province has projected a total investment from mining of
R36.3-billion in the period to 2025.
is invested in a project where the equity partner, Sedibelo, is
assembling R1-billion to upgrade resources.
African Rainbow Minerals (ARM) purchased the Bokoni PGM
mine for R3.5-billion. Bokoni is located near ARM’s Modikwa and
Two Rivers PGM mines and gives the ARM more palladium to mine.
Glencore (with a 79.5% stake) and Merafe Resources jointly
own chrome mines on the Eastern Limb of the Bushveld Igneous
Complex (Helena, Magareng and Thorncliffe), the Lion smelter
complex near Steelpoort and the Lydenburg smelter.
WATER
The Department of Water and Sanitation has undertaken several
large infrastructure projects in Limpopo, including the raising of the
Tzaneen Dam wall, Olifants River Water Resources Development,
bulk water supply for the MMSEZ and the Nandoni Water Treatment
Works. Supplying water for the MMSEZ is a critical issue in an area
where that resource is not plentiful.
Limpopo’s rivers are threatened by the damaging effects of the
mining industry, power stations, chemicals used in agriculture and
sewage treatment in catchment areas. Opportunities exist in this
sector for innovative solutions.
The water and sanitation services branch of Polokwane
Municipality operates five water-purification plants and three
sewage-purification plants.
Polokwane provides water to the residents of the rural areas
of Mothapo, Mothiba and Makotopong. The Capricorn District
Municipality funds a water-testing laboratory on the University of
Limpopo campus.
Phase 2B of the multi-year Olifants River Water Resources
Development Project is under discussion by project manager, Trans-
Caledon Tunnel Authority (TCTA), which is looking at funding
options with the Development Bank of Southern Africa. The project
will entail building a 70km pipeline from Flag Boshielo Dam to
Pruisen near Mokopane and would improve water supplies for
mines and domestic users. S
Implats smelter.
De Beers Group started production at its Venetia Mine in 2023. The
$2.3-billion conversion of the diamond mine to an underground
one began in 2012 and will extend the life of the mine to 2045 or
beyond. The mechanised underground operation will deliver up to
seven-million tons of kimberlite ore per year to produce four-million
carats of diamonds. Construction of the mine, which employs 4 300
local people, is now 70% complete.
Langpan Mine, which reportedly has a chrome and PGM reserve
statement of 2.17-million tons and a valuation of R851-million, has a
processing plant which forms chrome concentrate from the ore. The
by-product has a high concentration of PGMs.
The R1.2-billion Sefateng chrome mine under development in
the Sekhukhune District created 350 jobs during the construction
phase and will provide long-term employment for 600 people once
production begins.
Corridor Mining Resources, wholly owned by the provincial
government through the Limpopo Economic Development Agency,
Premier of Limpopo, Stanley Mathabatha.
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good news
Head and shoulders above:
Cape Town’s success could become
a key issue in 2024 elections
The apparent contrast between the level of services in Cape Town and the collapse of services in other metros could become
a big political issue ahead of the polls.
By Stephen Grootes
W
With all of the recent movements at the local government level
and the proximity of the national and provincial elections, certain
parties may now want to start campaigning on their track records
in councils. This issue is likely to resonate strongly with voters – it is
entirely rational to assess a party’s suitability for national office based
on its record in local government.
At the same time, the situation in many councils is now so bad
that many voters will feel completely disillusioned with most of our
parties. Except for the situation in the City of Cape Town.
In press release after press release, the City of Cape Town is
making progress.
Last year, it announced it would be buying electricity from
residents with rooftop solar installations, to add to its current
mechanisms that stave off two stages of loadshedding.
Residents in middle-class areas talk about how well their city works
– there are anecdotes about power lines being repaired within hours,
and potholes are a foreign concept.
Some mention huge construction projects, a sign that investors
believe the city has a strong future. There are also some indications
that it is getting a bigger share of foreign direct investment than
other areas. As some companies are leaving Durban, money is
flowing to Cape Town.
To listen to them is to hear a story of a city with infrastructure that
works, an African city which is, in fact, world class.
Success leads to success, so if your infrastructure
works, you will get more investment.
However, assessing the quality of life for a particular person or
family in a particular area can be perilous.
The commentariat in South Africa is usually focused on the
middle-class life experience because that is the water in which it
swims. And given our racialised inequality, it may be harder to
conduct an objective assessment than in other societies. Simply put,
in South Africa, your individual circumstances may matter much
more than where you live.
The more important question may be whether life for people in
Khayelitsha is better than it is for people in Diepsloot. And even
here, comparisons are very difficult.
ROLLING BLACKOUTS, LIFE EXPECTANCY AND CRIME
For example, it is true that people in all areas of Cape Town suffer
less loadshedding than in other cities and are probably likely to
experience it even less in the future if its plans to procure power
from independent power producers are successful. It should be
mentioned that a part of its success here is simply down to luck,
as the DA cannot claim responsibility for the construction of the
Steenbras hydro pump station in the 1970s.
This is an obvious difference which can be objectively assessed.
But there are also other data which can be used. For example,
Statistics South Africa has confirmed that life expectancy in the
Western Cape is higher than it is in other provinces.
If it is true that Cape Town is doing better on important metrics
than other councils, this will likely continue for some time.
There will be much to ask about why it is that Cape Town is
making progress.
Those in its middle classes may point to its administration and the
fact that it’s been run by the DA for 16 years. They may also suggest
that the DA simply governs more effectively than the ANC or any
other parties.
Those in other parts of the city may disagree; they may point
to the eviction policy followed by the city and suggest it is simply
effective in keeping poor people away from the suburbs.
But the fact that there has been consistency and stability in the
city must matter. If you are confident of governing in an area for a
48 | Service magazine

good news
S
decade, you can make plans that will take 10 years to complete. The
official who drew up a 10-year plan for a project would know they
are likely to be there when it is finished.
And for the moment, there is no serious opposition to the DA
there — it won more than 58% of the vote in the 2021 local elections.
The next biggest party was the ANC with just under 19%.
Article courtesy of Daily Maverick
SUCCESS LEADS TO SUCCESS
Over time, this will start to have an important effect: success leads to
success, so if your infrastructure works, you will get more investment,
and more investment leads to better performance overall, which
yields yet more investment.
This can create momentum and allow a city to “pull ahead” of
other areas in a troubled country.
Meanwhile, other metros appear destined for a future of
mismanagement, corruption and decay.
The lack of investment in infrastructure over many years
is now having an impact on all other metros – one can feel vital
infrastructure in our big metros has reached a tipping point and is
on the verge of collapse.
There is also likely to be more instability in those metros over the
next few years. In the short term, several may be about to change
mayors again. But in the longer term, likely, voters will not give any
single party a clear majority.
This could lead to a long period of political instability and make
the already sharp difference between Cape Town and everyone else
even more obvious.
And yet, what is clear is that the kitchen table issues around local
government are receiving much more attention than in the past. S
Service magazine | 49

THE NHFC PROVIDES END-TO-END SOLUTIONS WHICH ADDRESS HUMAN
THE SETTLEMENTS NHFC PROVIDES FUNDING END-TO-END & DELIVERY SOLUTIONS NEEDS, BY WHICH PROVIDING ADDRESS VARIOUS HUMAN FUNDING
SETTLEMENTS INSTRUMENTS FUNDING & SERVICES & DELIVERY TO SUIT SPECIFIC NEEDS, BY REQUIRED PROVIDING INTERVENTIONS.
VARIOUS FUNDING
INSTRUMENTS & SERVICES TO SUIT SPECIFIC REQUIRED INTERVENTIONS.
The funding instruments can be segmented into two categories being
development/project finance and funding through retail intermediaries to the
The funding instruments can be segmented into two categories being
following type of entities:
development/project finance and funding through retail intermediaries to the
following
Social
type
Housing
of entities:
Institutions (SH ls)
Other Delivery Agents (ODAs)
Social Housing Institutions (SH ls)
Developers
Other Delivery Agents (ODAs)
Contractors
Developers
Micro Finance Institutions (MFls)
Contractors
Co-operative Finance Institutions (CFls), Community Based Organisations (CBOs)
Micro
and
Finance
Housing
Institutions
Co-operatives
(MFls)
Co-operative Finance Institutions (CFls), Community Based Organisations (CBOs)
We provide Project Management services to assist Municipalities.
and Housing Co-operatives
We provide Project Management services to assist Municipalities.
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