Green Economy Journal Issue 63

G R E E N
Economy
journal
ISSUE 63 | 2024
Ecological
ECONOMICS
& INFRASTRUCTURE DEVELOPMENT
10 34 48
FINANCE
CIRCULARITY
SKILLS

Introduction to Invest SA
Value Proposition of the EOSS
Energy One Stop Shop
Background of the EOSS
The Energy One Stop Shop (EOSS), which was officially launched by Trade, Industry and Competition Minister, Ebrahim
Patel, in July 2023 aims to assist energy project developers by expediting and unblocking bottlenecks experienced with
authorisations and permits.
The EOSS is part of the priority action plan of the Energy Mitigation Strategy and is a collaborative effort intended to
contribute to resolving the energy crisis and provide much needed administrative guidance and support to developers
to provide energy security in the country.
Role of EOSS
• Act as a conduit between developers and authorisation competent authorities.
• Reduce administrative challenges encountered by energy project developers.
• Provide a single window application entry and facilitation process for energy projects.
• Shorten timeframes for project approvals by expediting, fast tracking and removing blockages.
Contact Details:
Email: info@enegyoss.gov.za | Telephone: 012 394 9599 | Website: www.energyoss.gov.za
Streamlined application process
Conduit between developers
and departments
Technical support and advisory
services
Linkage with private sector
and Industry Associations
Unlocking and unblocking
of bottlenecks
Escalation mechanism
Advocacy
• Online registration of energy projects on EOSS Portal
• Facilitation of unblocking and unlocking of applications
• Redirecting applications to relevant competent authorities
• Coordination of consultations and engagements between developers
and relevant departments
• Support to developers and departments in alleviating
capacity challenges
• Provide technical advisory services to developers
• A key source of relevant energy application authorisations to developers
• Engagements between Industry Associations, developers and departments
• Link between private and public sector
• Pursue and resolve challenges that new and existing
developers are encountering with their application
authorisations
• Escalating challenges that are not being resolved at
regional and national and levels
• Assist developers and Industry Associations tackle policy, legal and
regulatory elements that retard energy project developments
Energy One Stop Shop
Streamlining Energy Applications

Strive for Net Zero
while saving money at the same time!
Rooftop, solar carports, ground-mounted solar, and agrivoltaics represent the best-value energy
available to the energy customer in South Africa.
Blue Sky Energy is an expert in the design, procurement and construction of such plants.
Battery energy storage installations provide access to solar energy daily during peak hours when the
sun is not shining and enable users to bridge their primary energy needs through grid interruptions.
While the levelised cost of hybrid solar and battery storage installations is significantly greater than
solar PV only, appropriately sized solutions can be commercially feasible.
Would you like to know if your property or business can achieve energy security at the same cost
or less than what you are paying currently?
Did you know that Section
12B of the Tax Act allows for
the accelerated depreciation
of your power generation capex,
resulting in a 27.5% saving on
your project installation?
Agrivoltaics and
Solar Carports
Blue Sky Energy works
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suppliers to offer a range
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Have you considered
putting your spare space
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CONTACT THE EXPERTS AT BLUE SKY ENERGY RIGHT NOW!

PUBLISHER’S NOTE
Dear Reader,
As we all know, there has been a proliferation in the sale of
solar and battery solutions in South Africa across all sectors,
driven by loadshedding. But what of the business case for these
applications and solutions? In other words, is the investment
worth it?
For commercial solar PV, the answer is an unequivocal yes.
The payback period, excluding the s12B tax incentive, allows
accelerated depreciation of 120% of capex in year one and is
in the region of three to five years. Not bad for a system with a
25-year lifespan.
The battery energy storage business case depends on several
factors: the cost of shutting down operations and/or the cost
of running diesel generators. An offset against the cost of
running diesel gensets alone will result in a payback period in
the region of two to three years. Not bad for a system with a 10
to 15-year lifespan.
For most businesses, therefore, solar PV and battery
investments are feasible, and in many cases, simply an excellent
business decision.
Enjoy your read,
Publisher
EDITOR’S NOTE
At SIDSSA 2024, President Cyril Ramaphosa announced that
South Africa needs R4.8-trillion to achieve its infrastructure
goals by 2030. SIDSSA has been pivotal in driving public-private
investment for strategic infrastructure projects (page 22). As
project preparation is key to developing a viable project pipeline,
government has made interventions to provide a predictable
funding regime and consolidate expertise in developing
bankable projects.
However, participants active in the South African National
Infrastructure Plan need to examine their investment model
against the key factors involved in ecological economics. Failure
to do so will result in investment continuing its harmful impact
on natural, social and constructed ecosystems (page 26).
Urban Analyst, Llewellyn van Wyk, says that infrastructure
development is reductive: the exchange of goods and services
between itself and the natural and social ecosystems weakens
biological and sociological functionality over time. The
exchange flow is one-dimensional (from the resource base
to the resource consumer), and the benefits of that resource
use are unequally distributed among population groups and
prejudicial to future generations.
Van Wyk attests the claim that “infrastructure investment is
key to the future of cities” is invalid if that investment is out of
line with ecological economics.
As the global population expands, so too does the demand
for reliable and renewable energy sources. A solution to this
growing demand lies in creating strategic interconnections
that allow for increased electricity trade. Energy transmission
infrastructure projects are notoriously high-risk and capitalintensive.
Read about the $1.3-billion regional transmission
infrastructure financing facility on page 18.
On page 34, we speak to Professor Linda Godfrey, principal
scientist at CSIR, who is helping to inform the transition to a
more circular South African economy.
Alexis Knipe
Editor
G R E E N
Economy
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PUBLICATION DATE: April 2024
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G R E E N
Economy
journal
CONTENTS
6 NEWS & SNIPPETS
FINANCE
10 South Africa’s carbon market starving with an
insatiable demand
12 Impact investment providing capital to address
the world’s most pressing challenges
14 Maximise your company’s renewable energy coverage
with Discovery Green
16 Beyond green: sustainable finance vs green loans
18 Climate Fund Managers and the $1.3-billion regional
transmission infrastructure financing facility
INFRASTRUCTURE
22 Sustainable Infrastructure Development in South
Africa (SIDSSA 2024)
26 Infrastructure development within the context
of ecological economics
32 Masslift is powered by purpose
CIRCULARITY
34 Green Economy Journal interviews Professor Linda
Godfrey, principal scientist at CSIR
39 Just USE-IT
41 Patricia Schröder from Circular Energy says to give
it back
42 Closing the loop
WATER
46 SRK Consulting on how the EU directive on ESG water
will impact SA firms
SKILLS
48 Renewable professionals get ahead of the curve on
AI adoption
51 EWSETA introduces specialised training for renewable
energy and water management
52 Leading transformation in the energy sector
55 Empowering tomorrow’s workforce
56 CHIETA plans to grow the hydrogen economy
by offering specialised skills
ENERGY
58 Powering progress in the hydrogen sector
60 SA’s largest renewable energy plant gets the go-ahead
62 Enabling the Just Transition with CCUS
MINING
64 The importance of critical minerals should not condone
their extraction at all costs
66 Servicing the mining industry
12
18
26
60
4
5

NEWS & SNIPPETS
IRP 2023: SAPVIA HELPS SHAPE SA’S ENERGY FUTURE
SAPVIA has made a comprehensive submission to the Department of Mineral Resources and Energy
(DMRE) on SA’s new Integrated Resource Plan (the IRP 2023).
“SAPVIA commends the DMRE for their work on the IRP. We support its overarching purpose of
ensuring electricity security while balancing other key objectives like decarbonisation,” says Dr
Rethabile Melamu the CEO of SAPVIA. SAPVIA appreciates the IRP 2023’s two-horizon approach, which
splits focus between addressing the immediate crisis and mapping out a long-term plan. However, the
industry association’s submission highlights several areas where the draft IRP could be strengthened.
The suggestions centre around:
• Ensuring stronger alignment with key related policies and plans, such as the ERA Amendment Bill,
Transmission Development Plan, and the South African Renewable Energy Masterplan.
• Providing greater transparency in modelling assumptions and updating technology costs to
reflect real-world data.
• Clarifying the role and scale of private sector generation, as current allocations appearunderstated.
• Accounting for future technology advancements and cost reductions in battery energy storage.
• Detailing the costs and timelines of emission retrofit
• Decommissioning scenarios for coal plants.
“To address these issues, SAPVIA recommends accelerating solar PV deployment, significantly raising the distributed generation allocation,
investing in transmission infrastructure and reforming the IRP process to be more consultative, transparent and responsive to market
realities,” she adds. Acknowledging the ongoing role of fossil fuels in SA’s proposed technology-agnostic supply mix, the submission
also emphasises the need to fully consider and articulate the growing economic risks of a carbon-intensive power system in the IRP,
as SA balances energy security and decarbonisation imperatives.
“SAPVIA remains committed to working with the DMRE and other stakeholders to shape a dynamic, fit-for-purpose energy plan for SA,”
Melamu concludes. “We are confident that renewable energy can power SA’s energy transition while supporting economic growth and
social development.”
GROUNDBREAKING WHEELING PROJECTS
Norton Rose Fulbright SA is pleased to announce its role in
advising Pele Green Energy on the landmark Southern Africa
first-mover wheeling projects with Anglo-American and EDF
as co-shareholders. These pioneering projects involve Anglo-
American mines, smelters and refineries as off-takers, with a
combined capacity of 520MW. The transaction represents a
pioneering development in the market, showcasing a unique
trading platform and off-take structure. It offers an exceptional
opportunity to efficiently allocate energy from the projects to
off-takers while providing portfolio benefits and risk mitigation.
JUST USE-IT
SAPVIA CEO Dr Melamu.
LARGE-SCALE COMMERCIAL RENEWABLE ENERGY DEAL IN SA
Enel Green Power and Qatar Investment Authority, through their jointly controlled entity, Enel
Green Power RSA, have concluded three long-term Power Purchase Agreements (PPAs) with Air
Liquide and Sasol SA to supply 330MW of renewable energy to Sasol’s Secunda site, where Air
Liquide operates the world’s largest oxygen production facility. This makes Enel Green Power
RSA one of the first renewable energy companies to conclude a set of large-scale wind PPAs in SA
for the Commercial and Industrial (C&I) market. The power will be generated by three joint
venture-owned wind projects located in Eastern Cape and are expected to be operational by 2026
(see page 60). This 330MW cluster complements the existing platform of over 730MW already in
operation and is expected to result in an annual production of more than 1 100GWh.
PRIVATE POWER MAIN POWER
Mainstream Renewable Power has reached financial closure
on 20-year PPAs for a 97.5MW solar PV farm in the Free State
with Sasol and Air Liquide. Construction will start this year
and power generated will be delivered via the national grid
to Sasol and Air Liquide’s operations in Secunda, with
energy production to go online in 2025. Mainstream’s GM,
Hein Reyneke, says private PPAs are crucial to unlocking the
country’s energy constraints. Private off-take agreements
enable significant quantities of energy to be delivered quickly,
reducing companies’ exposure to rising energy costs.
USE-IT NPO has emerged as a beacon of environmental change by pioneering waste beneficiation and recycling practices. Founded to divert
waste from landfills and boost job creation USE-IT’s innovative approach has yielded significant successes over five years. By harnessing
cutting-edge technologies, it has turned waste into valuable resources, fostering sustainable business models and SMME development.
Strategic partnerships with local stakeholders facilitate efficient collection and processing of recyclables. Notable successes include the
growth of SMMEs like Owethu Sewing, Home Decor, and Educational Toy Project. Moreover, USE-IT’s commitment to innovation extended
to township economies, notably through projects like Green KEY Brick, catalysing environmental change both locally and internationally.
Community engagement initiatives, including educational programmes and partnerships with waste pickers, underscore USE-IT’s
dedication to social impact. Collaborative efforts with schools further promote recycling awareness among the youth.
As a testament to its commitment, USE-IT continues to advocate for environmental stewardship and economic empowerment. With
gratitude to supporters like the eThekwini Municipality, USE-IT’s vision persists: to transform waste into opportunity and lead the charge
towards a greener future in KZN townships.
LANDMARK WIND-HYDRO-SOLAR PPA
Growthpoint Properties has entered into a milestone PPA with Etana
Energy for 195GWh of renewable energy a year, representing 32% of
its total current annual electricity consumption.
In 2023, Growthpoint signed a PPA with licenced electricity
trader Etana Energy to wheel electricity to its commercial
property buildings in several jurisdictions nationwide.
The deal has set in motion South Africa’s first multijurisdiction,
multi-building, multi-source renewable energy
wheeling arrangement and will enable Growthpoint’s tenants
to access green energy and reduce their carbon footprint.
Through this agreement, Etana will cover 70% of the power
consumed by Growthpoint’s participating buildings, and in
some buildings, Growthpoint will provide its tenants with the
ability to purchase 100% renewable energy.
Growthpoint has exclusive rights to purchase all of the roughly
30GWh that will be generated annually by a 5MW hydroelectric
power plant developed, owned and operated by Serengeti Energy.
The project is situated within the Lesotho Highlands Water Scheme
(LHWS), which provides the added benefit of effectively generating
24/7 baseload power. Growthpoint has also shown some interest
in investing in the power plant by signing a MoU with Serengeti
Energy. Serengeti Energy owns and manages renewable energy
projects of up to 50MW (mainly hydro) in sub-Saharan Africa and
currently operates nine plants in five countries.
Initially targeted for South Africa’s REIPPPP, Serengeti’s focus
for this hydro plant shifted, and it advanced the project for
the C&I sectors. The project is well-placed to capitalise on the
LHWS Phase 2 future expansion. The hydroelectric power plant
has reached financial close and is currently under construction.
The commercial operation’s date is expected to be 1 July 2025,
when it will supply its first electricity to Growthpoint, wheeled
via the Eskom grid and traded through Etana. Thereafter, the
commissioning of wind and additional solar production from
Etana’s portfolio of renewable energy projects connected to
the national electricity grid will commence.
Estienne de Klerk, SA CEO of Growthpoint Properties.
CASH FOR POWER
NEWS & SNIPPETS
UTILITY-SCALE SOLAR DEVELOPMENT
Teraco’s JB2 facility in Isando.
Teraco, vendor-neutral data centre provider, has secured its first grid
capacity allocation from Eskom and will commence construction of
a 120MW utility-scale solar PV energy facility in the Free State. The
allocation from Eskom enables Teraco to connect its solar facility to
the national electrical grid. The power generated will be wheeled
across Eskom and municipal power networks to Teraco’s facilities
across South Africa.
“This will be a unique approach in Africa since Teraco will not only
own its data centre facilities but also a significant renewable energy
source with which to power them, creating a sustainable energy
path to support growth,” says Jan Hnizdo, CEO at Teraco. When fully
operational, the solar plant is expected to produce over 338 000MWh
annually.
Teraco has partnered with JUWI Renewable Energies South Africa
and Subsolar to develop the solar PV plant. In a first for Teraco, a
green loan has been raised to finance construction of the plant.
KIMBERLY-CLARK’S ROOFTOP SOLAR PV
Kimberly-Clark has signed a long-term PPA with Energy Partners,
which will include the installation of a 2.2MW rooftop system
at Kimberly-Clark’s Epping facility, making it one of the largest
rooftop solar PV systems in Cape Town. The system is expected
to produce 3 478MWh of energy per year, saving more than
3 130 tons of carbon dioxide emissions each year. Construction
of the system, which will include 4 000 solar panels, will begin
shortly. The system is expected to produce its first clean energy
in the second half of this year.
Courtesy Daily Maverick [by Neesa Moodley]
A newly launched scheme from the City of Cape Town allows residents to further leverage the benefits
of their solar power systems, selling excess generated energy back to the city for cash instead of credits
against municipal bills.
“The improvements in the cost-effectiveness, efficiency and reliability of solar technology in the past
decade have been nothing short of remarkable. As we continue to experience a high adoption of solar
from customers across the country, we’re excited to elevate those in the City of Cape Town’s experience by
facilitating access to the new payback surplus power scheme,” says Andrew Middleton, CEO and co-founder
of GoSolr, the company that facilitates the ability to feed in excess energy for all Cape Town customers.
Through the “Cash for Power” programme the city intends to source as much excess solar energy as available
from businesses and residential properties to feed back into the city’s grid.
GoSolr, South Africa’s largest subscription-based residential solar provider, offers residents the ability to install solar without any initial
capital outlay or investment beyond a month-to-month fee, democratising access to solar power.
www.gosolr.co.za
6 7

FINANCE
South Africa’s carbon market
STARVING,
with an
COAS listings
(million CTOs/year)
COAS stockpile
(million CTOs/year)
COAS retirements
(million CTOs/year)
FINANCE
INSATIABLE DEMAND
Figure 1. The flow of CTOs through COAS over time.
Startling insights into the supply and demand dynamics of South Africa’s expanding
carbon market were recently revealed in The Brundtland South African Carbon Market
Analysis. These include the stockpiling of carbon tax offsets, a significant supplydemand
gap extending to 2043, and the need for increased carbon credit generation
at a significant scale.
BY BRUNDTLAND CONSULTING
on the energy and industrial sectors, as they will aim to reduce
their emissions by 5% to 10% through using CTOs. The demand
projection also considers the implication of South Africa’s Nationally
Determined Contribution (NDC) and assumes a linear trajectory to
net-zero emissions in 2050.
This illustrates that there is a need for increased carbon credit
generation at a significant scale. It is crucial to acknowledge that
engaging in projects that generate carbon credits can be challenging,
considering the expertise required for project implementation,
the complexity to measure and verify emission reductions and the
regulatory compliance requirements. Further, the eligibility criteria
for carbon credits under the South African Carbon Tax is restrictive, for
example, excluding activities that had received an energy efficiency
allowance under section 12L of the Income Tax Act.
At the leading edge
The supply and demand dynamics of South Africa’s expanding carbon
market will affect many local companies as they face increasing
carbon taxes and tougher competition for the already-tight supply
of CTOs that will be in ever-greater demand.
CTO supply-demand gap (million CTOs/year)
To curb its future greenhouse gas (GHG) emissions, South
Africa applies – among others – a combination of carbon
tax and carbon market policies. These essential tools for
combatting climate change motivate organisations to reduce
their GHG emissions to avoid paying higher taxes and incentivise
investment in cleaner technologies and practises.
Introduced in 2019, South Africa’s Carbon Tax Act covers 90% of
local GHG emissions and includes an offset allowance to offset 5%
to 10% of taxable emissions. This increased the local demand for
carbon credits and boosted the local carbon market, in which the
listing, transfer and retirement of eligible carbon credits as carbon
tax offsets (CTOs) is facilitated by the Carbon Offset Administration
System (COAS).
The recent Brundtland South African Carbon Market Analysis
investigated the movement of carbon credits as CTOs across the
COAS registry between 2019 and 2022 and revealed important
insights into the supply and demand dynamics of our expanding
local carbon market.
Increased CTO stockpiling
Almost none of the CTOs currently listed in the COAS will expire.
Instead, their value increases each year due to annual carbon tax rate
hikes, which – as per the amended Carbon Tax Regulations – increases
from R159 for the 2023 tax period to R462 for the 2030 tax period.
As such, holders of CTOs are likely to sell or retire these only later,
when it is more financially attractive. Brundtland’s analysis shows
that a significant number of CTOs are being stockpiled in the COAS
registry. In fact, CTOs retired on COAS decreased by 52% in 2023
(at the end of the 2022 tax filing season), as holding onto the CTOs
may be more lucrative.
In addition, the listing of new CTOs dropped by 29%. A potential
factor in reduced listing activity may be the stockpiling of carbon
credits on the registry of the issuing carbon standard. These
changes have led to a more than doubling of the stockpile, as
shown in Figure 1.
CTOs from some project types are only eligible until the end
of the 2025 tax period, end of phase 1 (extended). These CTOs
constitute a lower share of listings in 2023 compared to 2022.
The largest share of CTOs in the stockpile are eligible for use after
2025. This will enable companies who have accumulated CTOs to
capitalise on the substantial tax rate increase of 30% which occurs
from 2025 to 2026.
Supply-demand deficit
Analysis further shows that the criteria for post-2025 eligible CTOs
significantly limit the supply, advancing the gap between supply
and demand. Currently, several projects generate pre-2025 eligible
CTOs, however, few projects are generating post-2025 eligible CTOs.
Although it is expected that this group of CTOs will increase, this
supply is only additional to a subset of currently eligible projects,
resulting in the dip in supply seen in 2026 in the graph on next page.
Brundtland’s analysis further revealed a continuous supply-demand
gap for CTOs, extending at least until 2043. The cumulative deficit
amounts to approximately 143.5-million CTOs for the period 2023
to 2050, also illustrated in the graph below.
Demand for carbon credit generation
The demand for CTOs is expected to increase between 2026 and
2035, primarily driven by higher demand from the energy sector.
The projected demand analysis considers the effect of carbon tax
WATCH VIDEO
Mind the Gap, a deficit of 143.5-million CTOs across the various tax phases.
THOUGHT [ECO]NOMY
greeneconomy/report recycle
THE SOUTH AFRICAN CARBON TAX EXPLAINED |
Brundtland Consulting
10 11

FINANCE
FINANCE
IMPACT INVESTMENT
providing capital to address the
world’s most pressing challenges
Green Economy Journal speaks to Mike Adsetts, CIO at Momentum
Investments, about impact investment, the strategy that generates
positive, measurable social and environmental impact while also achieving
acceptable financial returns.
How does impact investing work?
A common starting point for implementing impact investing in
practice is the United Nations’ Sustainable Development Goals
(SDGs). The member states of the United Nations adopted the
17 SDGs with 169 targets in 2015 as part of the 2030 Agenda for
Sustainable Development. These goals form part of an extensive
globally coordinated action plan to end poverty and reduce
inequality, while also protecting the planet, tackling climate
change and spurring economic growth. The goals recognise that
social and environmental issues affect everyone and thus apply
to every country, irrespective of their “developed” or “developing”
economic status. Sustainable development embodies the idea of
doing well by doing good.
Impact investing includes profit as one of its main objectives, so
while there is a commitment to social and environmental impact,
investors still earn a market rate of return.
What are the benefits of impact investment?
Impact investments should form part of your investment portfolio
because of the following benefits:
Diversification benefits. The investments are more likely to be
unlisted, private market assets, so they won’t move in tandem with
public market assets. Risk and return drivers are also different to
Mike Adsetts, Chief
Investment Officer,
Momentum Investments.
public market assets. Assets in regulated industries provide stable
cashflows even through times of economic weakness.
Alternate sources of return. There would typically be an illiquidity
premium embedded into these assets, which a holder would be able
to access over the long term. Additional returns to equity holders
through balance sheet refinancing is also a common occurrence
in infrastructure projects.
Inflation hedge. Revenues generated by underlying investments
are adjusted by an inflation factor, which benefits investors. In
addition, concession agreements and other off-take agreements
are long-term, meaning greater cash flow certainty.
Demonstrable positive impact and financial returns. This
investment would provide a physical infrastructure that would be
of economic utility. There would be measurable outputs from each
project in terms of positive societal impact.
Why integrate ESG factors into investing?
We define responsible investing (RI) as an investment process
that includes ESG factors into our process. Issues like increasing
regulation, the growing need for risk mitigation and a heightened
social conscience can be addressed by integrating ESG factors
into our investment process. We acknowledge that we are
in a privileged position to act as fiduciary to our clients and
stakeholders. We consider the ESG risk of our investments to be
relevant to the performance of the overall objective – across all
asset classes, sectors, markets and through time.
This is an approach to investment that explicitly acknowledges
the relevance to the investor of ESG factors and of the long-term
health and stability of the market. It recognises that the generation
of long-term sustainable returns is dependent on stable, wellfunctioning
and well-governed social, environmental and economic
systems. We ensure ESG integration through various governance
structures within our business.
How do ESG factors impact a company’s value?
Each of the factors can affect companies in different ways and can
be integrated into an evaluation approach. For example, carbon
emissions can be measured and potential carbon tax liabilities
factored into a company valuation.
Other factors are nuanced and may require a more judgemental
approach. Governance risks and the red flags around them need
to be considered. The famous example here is Steinhoff and how
the governance failures led to a dramatic destruction of value.
The hardest ones to quantify tend to be social factors and once
again a qualitative impact perspective can be considered.
How should investors approach responsible investing?
Investors can do research on the investment managers to see if
they uphold the principles of RI. At Momentum Investments, we:
Advocate. We participate in market-related industry events and
serve on the responsible investing committee of the industry body
the Association of Savings and Investments South Africa (ASISA).
Report on progress. We show investors that we take our duty to
act in their best interests to heart by publishing our poxy history,
our stewardship report, and our responsible investment and climate
change investment policies, among others.
Seek disclosure. We have a register that shows how we engage
with companies that we invest in to keep them accountable.
Are active owners. We use our influence to help maintain a
well-governed corporate South Africa.
Integrate ESG. We have a responsible investing committee that
serves as an oversight function of responsible investing practices
across the investment team. We follow an integrated ESG approach
across all our asset classes.
Have integrity. We keep to and observe all rules and regulations
which seek to uphold the principles of responsible investment.
Sustainable development embodies
the idea of doing well by doing good.
How do investors assess impact?
By incorporating social and environmental targets into their
investment strategies, investors can align their impact objectives
to the SDGs and track their contribution towards achieving these
goals. Using metrics that reflect their effect on specific SDGs,
investors can address how they are contributing to a sustainable
and equitable future.
What are the key barriers and opportunities in impact investing
in South Africa?
There is a huge need for impact investing with considerations like
levels of liquidity, deal availability and size, and role players involved
needed to be considered. There is still a lot of work that needs to
happen to increase trust levels between the public and private
sectors with Public Private Partnerships (PPPs) still not finding
significant traction. All of this has resulted in relatively limited deals.
When these barriers are overcome, there will be increasing
opportunities in energy, logistics and water infrastructure.
ESG GOVERNANCE AND ORGANISATION
Chief sustainability officers from some of the world’s largest
companies were interviewed for KPMG’s global survey on ESG
governance and organisation, to gain a deeper understanding
of how companies are structuring their set-up and teams for
sustainability and responding to a wave of new regulation and
increased pressure for transparency on ESG. Almost all respondents
reported high ambitions for ESG in their organisations, with half
now viewing sustainability as a strategic issue that is embedded
in core business operations. With ESG covering a wide area of
societal and governance issues, the challenge for many businesses
can be deciding what to prioritise. Decarbonisation and the race
to net zero were the topics most often included in their corporate
ESG strategy, with diversity, equality and inclusion and human
rights in the value chain as the next most-mentioned theme.
Who leads on ESG?
The question now facing many business leaders is who should
make the ultimate decision on ESG as it increasingly becomes
embedded in a company’s fabric. The CEO is responsible for
sustainability in almost half of the organisations surveyed, with a
dedicated chief sustainability officer as the second most popular
option. The remaining respondents revealed a wide variety of
roles taking charge of ESG – from head of supply chain and
manufacturing to the chief risk officer.
Rising regulation
Reporting on ESG has generally been a voluntary exercise. Still,
some jurisdictions are in the process of making it compulsory, most
significantly the EU through its Corporate Sustainability Reporting
Directive (CSRD). Nearly half of the researched organisations plan
to report under CSRD for the 2024 financial year, with nearly a
fifth more planning to do so in 2025.
Nearly three-quarters of organisations in this research have
six or fewer full-time equivalent staff working on non-financial
reporting, and more than half have three or fewer. Just over half
expected to see an increase in this number, with the remainder
anticipating numbers to stay the same.
Just under half of the organisations in this research have ESG
topics in their core corporate key performance indicators (KPIs),
with more than a quarter including them in management-level
performance reviews.
Almost half of the organisations interviewed produce internal
indicators every quarter and several use monthly reporting
for certain measures. Annual is the most common frequency
for external reporting used by more than three-quarters of
organisations, with the remaining respondents doing so quarterly.
ESG KPIs are used in calculating executive pay in most of the
organisations researched, with just over half using these for
short-term and two-fifths for long-term incentives. Just under
half have between 16% and 25% of variable executive pay linked
to ESG indicators.
12 13

ENERGY
MAXIMISING
COVERAGE
In the past 18 months, South African businesses have installed over 3GW of rooftop capacity
alone, which has relieved some pressure from the national grid. However, as they try to replace
more of Eskom electricity with renewable power, many businesses are targeting short-term
wins at the expense of sacrificing significant long-term value.
BY DISCOVERY GREEN
renewable energy
A strategic imperative for South African businesses
DISCOVERY GREEN
A renewable energy platform for business
ENERGY
The Discovery Green Renewable Energy Platform draws together a wide range of businesses
and their energy consumption profiles at scale and connects with leading renewable energy
providers that have been successful in large-scale private sector development and government
programmes. By doing so, the platform has the benefit of diversification and economies of scale,
in bringing you clean energy. The Journal speaks to Andre Nepgen, Head of Discovery Green.
supporting the development of private electricity generation in
South Africa and lessening the impact of loadshedding over time.
Discovery Green recently analysed over 200 business
consumption profiles and 30 renewable energy generation
sites, which have revealed insights into the popularity of
solar and the need for a diversified approach to renewable energy
procurement among South African businesses.
It’s clear that the growing awareness of the possibility of wheeling
from utility-scale solar generation plants, has boosted investment
to the sector. Solar has become an attractive proposition because
it offers a cost-effective solution to replace roughly 50% of many
businesses’ current grid-drawn electricity. However, many businesses
are falling into a trap that makes their transition to clean electricity
more expensive than it should be.
The Head of Discovery Green, Andre Nepgen, believes that
businesses could be paying less for their renewable energy
procurement through a more strategic approach, which is sorely
needed especially because South Africa grapples with a historically
low-energy availability factor.
WASTED GENERATION
The biggest insight from Discovery Green’s data is that businesses
often reach a tipping point of wasted generation after installing
approximately 50% of their total energy needs in solar capacity.
This is caused by a common mismatch between solar generation
profiles and business consumption patterns. Because renewable
energy is paid for at the point of generation and not at the point of
consumption, this mismatch leads to significant wasted generation
and cost implications when businesses try to push their renewable
energy capacity beyond this 50% threshold.
“A mismatch of renewable energy generation and consumption
occurs because businesses typically consume 40% of their energy
during standard hours, usually daytime weekdays; 45% during offpeak
hours, usually nighttime or low-usage weekends; and 15%
during peak hours, usually rush hour mornings and early evenings.
On the other hand, solar generation typically results in 60% of energy
being produced during standard hours, 22% during off-peak hours
and 18% during peak hours,” explains Nepgen.
The low level of coverage offered by solar energy in isolation is
not the only factor a business must consider. Once the business has
covered 50% of its consumption profile with solar capacity, its leftover
consumption pattern shifts dramatically. Instead of using electricity
mostly around off-peak and standard hours, only around 15% of its
consumption is standard, 10% is during peak time, and a staggering
75% is consumed during off-peak hours. No renewable energy
generation technology can match this profile without the business
having to pay an exorbitant premium for wasted generation. So, to
cover this remaining 50% of its energy requirement with renewable
energy becomes economically prohibitive.
“The usual advice given to businesses is that they should consider
using batteries to store excess solar energy and redistribute it
during the evening off-peak periods. But the economic outlay for
implementing that significantly exceeds the cost of traditional utility
power from Eskom,” says Nepgen.
“Our view is that battery storage is a more economically viable
alternative to diesel in high loadshedding scenarios, but not to
regular electricity usage. Green hydrogen is similarly expensive.
Wind generation presents a comparable economic challenge, as it
can only cover approximately 65% of the needs of a business before
energy wastage occurs. Additionally, South Africa lacks a liquid
market for renewable energy, further complicating the procurement
of renewable energy to offset shortfalls,” adds Nepgen. The
consequence is that any business that wants to convert its energy
consumption to 100% renewable energy, currently does so by
paying a premium due to an untenable amount of wasted energy.
“This is a quintessential example of winning the battle but
losing the war. Given that renewable energy is clean, can already
be produced at a rate cheaper than conventional grid sources, and
can even be contracted for at a stable long-term price in real terms,
there is a clear alternative way forward,” says Nepgen.
Discovery Green’s proposed solution is simple yet profound:
diversification. By collaborating with industries with different
consumption patterns, Discovery Green has created a consumption
portfolio that optimises businesses’ energy usage. For instance,
a manufacturing company that halts operations during summer
holidays could partner with the hotel industry, which experiences
increased demand during this period, to utilise its excess energy.
“This approach not only reduces costs, but also enhances
competitiveness and sustainability. By combining different
industries and their consumption profiles, we have found that
a portfolio can achieve a much higher percentage of renewable
energy coverage for everyone without generating wasted energy.
The data shows that if one industry alone could only reach 50%
of renewable energy coverage, a portfolio of three could reach
75%, and the more industries added, the higher this number
becomes,” says Nepgen. The law of large numbers also helps as the
overall volatility of a portfolio decreases. A diversified platform
can absorb more randomness in consumption.
Nepgen argues that embracing a diversified portfolio approach
to renewable energy procurement can unlock the potential for
higher renewable energy percentages, benefiting both individual
companies and the economy.
Andre Nepgen, Head of Discovery Green.
Please provide an overview of Discovery Green.
Discovery Green is a renewable energy platform that brings
together scale, expertise, actuarial modelling and sophisticated
systems to make it simple and affordable for businesses to run on
renewable energy.
How is Discovery Green revolutionising renewable energy in
South Africa?
Every business consumes electricity differently, both in terms of the
amount of consumption (MWh or kWh) and time of consumption
(peak, off-peak or standard). For most businesses, a renewable power
plant will generate too much electricity during certain times and
not enough during others. This creates a mismatch between the
generation and consumption of renewable energy, which in turn,
reduces the affordability and efficiency. A consequence of this is
having to pay for renewable energy that is not being consumed, or
not consuming enough, thereby missing out on potential savings
and emission reductions. There is a fine balance here that requires
diversification, scale and sophisticated modelling.
Discovery Green is the only platform that provides companies
with a 90% or more replacement of their expensive, dirty electricity
with affordable, clean, wheeled energy as a standard offering.
What is Discovery Green’s objective?
We help businesses meet their decarbonisation goals and provide
savings and certainty to the cost of electricity. In doing so, we are
Please give an overview of your products.
We have developed two products aimed at addressing the two
potential needs of any business. The first, the Green Saver, finds the
highest point on the Energy Frontier and maximises the financial
savings and emission reductions for businesses. The second, the
Green Guarantee, allows businesses to fully run on renewable
energy and reduce their emissions.
What is renewable energy wheeling?
Renewable energy wheeling involves the purchase of privately
generated electricity connected to the national grid. Large, utilityscale
renewable power plants are constructed in areas of the
country with attractive wind and solar resources. The renewable
energy that is generated is fed into the national grid at the point of
generation and the business (or “off-taker”) enters into a purchasing
agreement with the private power generator to be credited for the
consumption of this power.
We help businesses meet their
decarbonisation goals and provide savings
and certainty to the cost of electricity.
How does wheeling reduce a company’s emissions?
Wheeling of renewable energy will reduce a business’s scope 2
emissions. For most non-industrial businesses, scope 2 emissions
account for most greenhouse gas emissions. Wheeling of renewable
energy is often the most effective way to achieve carbon neutrality.
Why should businesses maximise renewable energy coverage?
When choosing low renewable energy coverage, renewable energy
suppliers may wish to wheel cheap solar power to businesses during
standard periods. This may set businesses up to pay higher tariffs
for renewable energy in future when coverage levels are increased,
to begin offsetting a skewed residual consumption profile.
There is a financial benefit to maximising coverage of renewable
energy now as opposed to filling up demand in incremental
steps. Delays in maximising renewable energy coverage means
businesses would do without the full potential savings available
from renewable energy wheeling.
There are also limited renewable energy plant sites available with
the ability to connect to the national grid. The unpredictability of
future grid availability may lead to uncertainty in future renewable
energy prices.
14 15

FINANCE
FINANCE
BEYOND GREEN
ESG-linked financing is a hot topic in the finance arena. What
does it mean for you? To begin, let’s define “ESG”. “ESG” is
an umbrella term encompassing three broad spheres –
environmental aspects, social causes and governance issues.
These three spheres are often considered mutually exclusive,
but this is frequently not the case, and they can each be much
broader than they first appear.
A great practical example of the interlinked nature of ESG
is a renewable energy project. There are obvious potential
environmental benefits to the construction and operation of a
renewable energy project. When you look closer, however, it is
easy to see how the implementation of that project can have farreaching
social implications for the immediate local community
and broader society – job creation, contributing to relieving
the energy crisis and income generation, to name a few – while
the manner of implementation, quantifying and reporting on
performance, as well as ensuring compliance with the relevant
regulatory regimes falls firmly within the “governance” sphere.
Businesses tend to focus on the environmental aspects, as these
are easiest to identify and quantify, but the social and governance
Sustainable finance vs green loans
A holistic approach to ESG-linked funding can unlock additional funding benefits for businesses.
Understanding the various elements in the ESG umbrella and the interplay between them,
coupled with determining the right funding instrument and type of funding arrangement,
appropriate metrics, reporting obligations and intervals is key to this.
BY NATASHA PATHER, PARTNER, WEBBER WENTZEL
Sustainable financing is typically a
better fit for larger corporates.
aspects can be equally important levers when negotiating your
funding arrangements. The interplay between these aspects is key
to unlocking value in funding arrangements.
FORMS OF FUNDING IN SA
In the South African market, we generally see two types of ESGlinked
funding made available to corporate borrowers – sustainable
financing and use of proceeds financing (also sometimes known
as green loans or social loans). Here are a few high-level risks and
benefits of each and when they might be suitable for your business:
Sustainable financing
Sustainable financing is a type of funding that allows borrowers
to measure their performance against a set of predetermined
key performance indicators (KPIs). Depending on the level of
performance achieved against those KPIs, the borrower can obtain a
financial benefit, such as a margin reduction or access to additional
funding for which that borrower may otherwise not be eligible.
A failure to perform against one or more KPIs can sometimes also
result in a margin ratchet, which was not the case in the early days
of sustainable financing. Depending on the number of KPIs and
level of performance with individual KPIs and the margin ratchet
or reduction may be structured on a tiered basis.
Naturally, this arrangement requires detailed and accurate
information to be delivered timeously to and verified by the
funders. Suitable KPIs are usually determined with reference to the
nature and extent of the business of the borrower or its group, its
operational requirements and what is achievable and sustainable,
without compromising on the business’ product.
This type of funding typically takes the form of a loan instrument,
rather than a bond, commercial paper or other securities, as the
number of funders is generally limited (and thus the borrower is
more easily able to manage these information requirements with a
smaller pool of funders).
Depending on the nature of the business of the borrower, its
creditworthiness and various other factors, other financial institutions
may also not be able to participate in the instrument, which would
limit uptake in the broader market.
Sustainable financing is typically a better fit for larger corporates
who already have their own corporate social responsibility
programmes geared towards one or more ESG objectives and
have the relevant information and verification systems and
relationships in place, as well as the requisite financial resources
to implement these.
Funders may be willing to accept pre-existing KPIs determined by
the borrower where it can be shown that adequate consideration
and objective assessment has gone into determining these KPIs,
however, they may wish to set their own KPI targets or verify that
the proposed targets are sufficiently ambitious.
In the UK and European markets, there appears to be an emerging
trend of requiring more aggressive KPI targets, both upfront and
year-on-year, to avoid allegations of greenwashing. The basis for
these allegations within the funding space specifically seems to be
that the funders’ intervention has not caused the “good behaviour”
for which both these corporates and funders are being rewarded
through financial incentives. We may see a similar trend for more
aggressive KPI targets in future in the South African market and
perhaps more punitive margin ratchets and structuring.
The benefits of a sustainable financing arrangement are that a
borrower can:
• Save on its interest costs (and often in circumstances where it is
already complying or aligning with its own internal objectives)
• Potentially access additional funding that it may otherwise
not be eligible to access
The risks are that:
• Failure to comply could result in an increased interest cost
• If the KPI targets are not set at appropriate levels, one could
potentially face allegations of greenwashing
Use of proceeds financing
Use of proceeds financing focuses on the purpose against which
the proceeds are applied. This funding arrangement can be either
a loan (or similar instrument) or a security, such as bonds, notes or
other commercial paper. Listed bonds and notes tend to largely
be limited to the use of proceeds financing due to many of the
factors mentioned above.
This type of funding is appropriate where it is possible to link the
purpose to which the funding will be applied to an ESG-linked cause.
This purpose could take various forms, such as a once-off expenditure,
for example, the installation of a solar-powered system, a multi-stage
project, such as the construction of a greenfields development; or
a brownfields expansion, or even a longer-term, ongoing initiative
such as a housing or education development programme.
We initially saw several “green bonds” or “green loans” (also
known as sustainability-linked funding instruments) where the
proceeds were used to fund an environmentally friendly or climatebased
initiative. There has been a recent rise in the number of
social funding instruments (targeting, for example, housing or
employment initiatives), “blue” funding instruments (targeting
ocean-based initiatives) and sustainability funding instruments
(which combine characteristics of green and social instruments).
A benefit of this type of funding is that it can be more accessible for
a broader range of borrowers or issuers, ranging from governments,
project companies and big corporates to smaller enterprises looking
to fund an ESG-linked purpose. There are even products available
now to individuals who are looking to fund alternative energy
sources for their homes. In addition, access to the listed and unlisted
bond market may provide additional funding opportunities for a
range of borrowers.
It is a key requirement for the borrower or issuer to disclose how
the proceeds are applied for this type of funding. This may include
a report on initial expenditure and subsequent reporting on the
actual and anticipated impact of the funded initiative.
There are similar risks and benefits for this type of funding –
namely, a potential margin ratchet for non-compliance, on the one
hand, and a margin reduction and/or access to additional funding
on the other. Greenwashing also remains a risk if, for example, the
purpose to which the loan proceeds are applied does not actually
benefit, or even indirectly support an initiative that actively harms
the relevant cause.
Additional bond market considerations may also apply if the
funding instrument is a debt security. These include, on the one
hand, access to a different, potentially broader pool of funders
(each with their own internal investment criteria) and the ability
to determine the pricing of the instruments up front. On the other
hand, the listed bond space is also subject to additional regulatory
requirements, which may impose further reporting obligations and
pose other regulatory pitfalls.
There are even products available
now to individuals who are looking to fund
alternative energy sources for their homes.
16 17

FINANCE
Climate Fund Managers
and the $1.3-BILLION
REGIONAL TRANSMISSION
INFRASTRUCTURE
financing facility
Blended finance gives institutional investors access to impact outcomes that suit their risk
appetites while enabling emerging economies to access the financial resources required to
support their transition. It is a critical component of the global climate solution. We speak to
Kevin Anderson, head of strategic initiatives, CFM.
as relevant in-country transmission infrastructure required for
regional electricity trading to enable SAPP members to increase
and improve trading volumes, alleviate congestion on the existing
network, incorporate new and green regional power generation
resources, improve reliability and create adequate redundancy in the
system. It is estimated that interconnection across SAPP via strategic
transmission corridors can save the SADC region circa $37-billion to
$42-billion in Net Present Value (NPV) by 2040.
What is RTIFF’s objective?
The fund’s vision is to fulfil the mandate as prescribed by SAPP and
its SADC members to manage RTIFF, a $1.3-billion target facility
focused on improving strategic interconnection and cross-border
energy transmission in the Southern Africa region.
The facility will improve energy transmission within and between
the 16 SADC member states and other power pools, generating longterm
energy supply security and the resulting increased economic
benefits correlated to higher electrification levels. It will promote
climate resilience and adaptation by including sustainable energy
sources and replacing fossil-based sources. A key idea of RTIFF is to
encourage the adoption of renewables and the most efficient use
of hydro resources, thus driving the energy transition.
What are the current challenges of cross-border energy transmission
in Southern Africa?
The process of providing sustainable power to a region can be
broken down into three primary activities: generation, transmission
and distribution. While generation typically gets the lion’s share of
the world’s attention, one cannot underestimate the importance
of delivering that power to the people who need it, wherever they
may be. Limited transmission and distribution infrastructure within
and between countries is the biggest challenge in the region. The
development of interconnectors between SADC member countries
is crucial for moving power from energy-rich countries to those that
cannot meet the demand for affordable, reliable, clean energy or
those that have a mandate to decarbonise.
What is the biggest barrier facing developers of energy transmission
infrastructure projects?
As the global population grows, so too does the demand for
sustainable, reliable and renewable sources of energy. However,
when it comes to the production of power, not all countries are
created equal, and the solution to this growing demand lies in
establishing strategic interconnections that allow for increased
electricity trade. Energy transmission infrastructure projects are
notoriously high-risk and capital-intensive, making them challenging
to fund independently through sovereign capital alone.
FINANCE
How does RTIFF address these challenges?
RTIFF’s blended finance model overcomes this by utilising public
capital to balance risk and enable private capital to enter. The
facility will improve energy transmission within and between the
16 SADC member states and with other power pools, generating
long-term energy supply security, economic growth and climate
resilience through the inclusion of sustainable energy sources.
Why is RTIFF so significant?
This facility will accelerate the development of strategic
interconnections and integrated transmission infrastructure
across Southern Africa by providing stakeholders with access to
the financing they desperately need. RTIFF will provide power
companies and project developers working to tackle transmission
issues with access to patient capital and development expertise
to establish strategic interconnections that allow for increased
electricity trade.
Please outline the fund life of RTIFF.
The facility, which launches with $20-million in commitments from
SAPP, targets a first close of $500-million in 2025 to be raised from
public and private sector investors locally and internationally and
a final close of $1.3-billion within 24 months. The facility will have
a fund life of up to 20 to 25 years.
Which projects will RTIFF prioritise?
Detailed due diligence is underway to identify suitable projects. So
far, we have identified eight high-priority transmission projects for
RTIFF. More details regarding the due diligence and findings will be
shared in due course.
How will RTIFF work?
The two funds (development and construction) within RTIFF will
each require a dedicated fundraising initiative initially targeting
donor funders (such as governments, DFIs and philanthropy funders).
Parallel to this, the fund will also engage regional and international
commercial and institutional capital providers.
THE SOUTHERN AFRICAN POWER POOL
The SAPP is an interregional organisation, a cooperation of 12
Southern African countries represented by their national power
utilities and some private utilities under the auspices of the SADC.
SAPP members; Angola, Botswana, Democratic Republic of the
Congo, Eswatini, Lesotho, Mozambique, Malawi, Namibia, South
Africa, Tanzania, Zambia and Zimbabwe, have created a common
power grid between their countries. The SAPP operates a competitive
electricity market in the SADC region. The SAPP’s main role is to
ensure that the countries develop power solutions in collaboration.
This involves sharing resources; therefore, transmission is key. There
is no energy transition without transmission.
Please provide an overview of Climate Fund Managers (CFM).
CFM is a leading climate-centric blended finance fund manager.
Established in 2015, CFM is a joint venture between the Dutch
entrepreneurial development bank, FMO, and Sanlam InfraWorks,
part of the Sanlam Group of South Africa. Our purpose is to end the
climate crisis. We do this by raising and deploying climate finance
funds in partnership at scale and at pace. Our focus is the emerging
markets (Africa, Asia and Latin America) where communities and the
environment are most vulnerable to, and impacted by, climate change.
CFM currently manages two circa [US]$1-billion blended finance
equity infrastructure funds focused on climate change mitigation and
adaptation in the emerging markets: (1) Climate Investor One focused
on renewable energy and (2) Climate Investor Two focused on water,
sanitation and ocean infrastructure. We are currently implementing
further blended finance initiatives in the green hydrogen and energy
transition sectors, the GAIA loan fund focusing on financing climate
mitigation and adaptation projects across the Global South, power
transmission with a specific focus on green grids and in the future,
a resilient cities-focused fund.
Please tell us about the Regional Transmission Infrastructure
Financing Facility (RTIFF).
The Regional Transmission Infrastructure Financing Facility (RTIFF)
is a unique partnership between the Southern Africa Development
Community (SADC) countries, the Southern Africa Power Pool (SAPP)
and CFM and is the incarnation of the SDG 17: partnerships.
RTIFF will mobilise the substantial investment capital required
to invest in new cross-border transmission infrastructure as well
There is no energy
transition without
transmission.
18 19

FINANCE
Our purpose
is to end the
climate crisis.
Why is interconnection across SAPP via strategic transmission
corridors so important?
Electrification is vital for economic development and for building
thriving communities. To quantify the potential economic benefits:
SAPP has identified eight high-priority transmission projects for RTIFF,
currently in the due diligence phase, which will bring estimated
economic benefits of $4.3-billion in NPV.
Please expand on the necessity of investing in transmission grids.
There is a deep need to mobilise blended finance at scale and speed
to enable the rollout of additional grid infrastructure in the region.
The lack of investment in grid infrastructure is one of the reasons for
ongoing blackouts in many parts of Southern Africa. With 180-million
people living in the region exposed to ongoing power disruptions,
universal access to reliable electricity will improve people’s health,
safety, financial inclusion and economic activities. If we don’t invest
in grids today, we will face gridlock tomorrow. This is even more
pressing from an energy transition perspective as the world needs
to embrace green electrons on the grid.
What can mobilising blended finance at scale do for the power
sectors in Africa?
It’s a game-changer. It removes the barriers that prevent energy
infrastructure projects from getting off the ground, converting plans
into reality, creating tangible resource assets and viable solutions to
the energy challenges experienced by millions of people in Africa
daily. With public capital absorbing the risk, private capital can step
in to set projects in motion.
How will RTIFF’s fund architecture be structured?
CFM has applied its standard blended finance fund architecture and
design in creating RTIFF. RTIFF will comprise a $100-million target
“Development Fund” to provide concessional capital and development
expertise, including support on viability studies, legal and financial
structuring, planning and ESG compliance; and a $1.2-billion target
“Construction Fund” that will make direct investments through
the provision of construction finance and value-add expertise for
project builds.
Kevin Anderson, Head of Strategic Initiatives, Climate Fund Managers.
READ REPORT
THOUGHT [ECO]NOMY
greeneconomy/report recycle
Unlocking Smart
Grid Opportunities
in Emerging Markets
and Developing
Economies
UNLOCKING SMART GRID OPPORTUNITIES IN EMERGING MARKETS AND
DEVELOPING COUNTRIES | International Energy Agency | [Revised version, February 2024]
The clean energy transition requires a fundamental transformation of power systems, including much
higher levels of digitalisation at scale across all grid domains, from generation to transmission and
distribution to end-use. Strong policy attention is required to scale up investments in smarter and
more resilient grids in emerging and developing economies where electricity consumption is set to
grow at a rapid rate while also providing greater levels of electricity access.
Investments in smarter and more resilient grids will be necessary to accommodate the greater
deployment of renewable energy and enhance energy security. Digital technologies designed for power
systems are instrumental in unlocking essential system services required to integrate high shares of
variable renewable energy. They can also provide solutions to leverage data flows, connectivity and
management across the whole electricity system. To unlock these digital opportunities, adequate
planning, investment and policy action are needed. This report guides energy policymakers on ways to
enable and drive investments in smart and resilient electricity grids. It also gives suggestions on how to
start creating an environment that supports the effective use of innovative digital technologies within the
electricity sector. It draws on examples and case studies to show the wide range of digital opportunities and
solutions that can help governments implement efficient and smart power systems.
20

INFRASTRUCTURE
SUSTAINABLE
INFRASTRUCTURE
DEVELOPMENT
in South Africa
Representing a total investment value of R2.1-billion, the country’s
first LNG import terminal at Richards Bay aims to import between
one-million and five-million tons of LNG per annum. The Durban
Container Terminal Pier 1’s capacity will be expanded to 3.6-million
20-foot equivalent units (TEUs) through the construction of seven
additional deep-water berths and storage space. A new berth (A100)
for liquid bulk will be constructed to handle imported LNG at the
Port of East London. Serving as the main liquid fuels supply hub of
Nelson Mandela Bay and surrounding areas, the project represents
a R2.2-billion investment.
Project Ukuvuzelela is a transnational, high-capacity rail corridor
for automotive volumes that involves upgrading the rail line from
Gauteng to the Eastern Cape and will serve to take pressure off the
KwaZulu-Natal corridor and the Port of Durban as the sole port for
imports and exports in the area. The overarching target is to have
bi-directional rail transportation of a minimum of 150 000 fully-built
units per year by 2026.
Government will launch an infrastructure strategy aimed at
refurbishing 104 health facilities throughout South Africa,
valued at R1-billion. Meanwhile, the Department of Public Works
and Infrastructure has laid out plans to improve educationrelated
infrastructure.
THE 12 INFRASTRUCTURE PRIORITIES
• LNG Import Terminal; KwaZulu-Natal
• Durban Container Terminal Pier 1; KwaZulu-Natal
• Berth A100 for Liquid Bulk; Eastern Cape
• Ukuvuselela; National
• Refurbishment of Health Facilities; National
• Schools Project; National
• Eskom Mossel Bay Gas; Western Cape
• Eskom Tubatse Pumped Hydro Storage; Limpopo
• Rooiwal Phase 2 Wastewater; Gauteng
• Amathole Water Bulk Supply Augmentation; Eastern Cape
• Nkhomazi SEZ; Mpumalanga
• Namakwa SEZ; Northern Cape
INFRASTRUCTURE
Infrastructure should be a
flywheel of our country’s
economic recovery.
SIDSSA brings together critical role-players in the infrastructure investment space who
are galvanised around a key goal of accelerating an infrastructure-led economic recovery
plan for South Africa.
In his keynote address at the 2024 Sustainable Infrastructure
Development Symposium of South Africa (SIDSSA),
President Ramaphosa announced that South Africa needs
R4.8-trillion to achieve its infrastructure goals by 2030
(R1.6-trillion in public sector infrastructure investment and
R3.2-trillion from the private sector).
Platforms such as SIDSSA, in tandem with the establishment
of Infrastructure South Africa (ISA) in 2020, have been pivotal for
driving public-private investment in strategic projects.
ISA has unblocked a total of R25-billion worth of projects in the
renewable energy space using the Infrastructure Development Act
to fast-track government authorisations.
“We have been able to unlock more than 195 licenses, permits
and approvals within 47 projects alone. South Africa established
the Infrastructure Fund to unlock more private investment in the
infrastructure pipeline using a variety of blended financing tools.
So far, 13 mega blended finance projects or programmes have
been approved to date,” Minister of Public Works and Infrastructure,
Sihle Zikalala, revealed. “Infrastructure should be a flywheel of our
country’s economic recovery.”
The operationalisation of the Infrastructure Fund has seen a steady
growth in the portfolio of blended finance projects that use small
fiscal allocations to de-risk public infrastructure projects and raise
finance in debt capital markets. Blended finance projects, which
leverage private-sector financing, are also growing steadily. In 2024,
11 such projects, with a total investment value of R45-billion, are
expected to reach financial close.
As project preparation is key to developing a viable project
pipeline, government has made interventions to provide a predictable
funding regime and consolidate expertise in developing bankable
projects through ISA. ISA is re-orientating project preparation to
enable export sectors, manufacturing and the green economy
and projects that contribute to inclusivity by broadening the
participation of local content. This approach is being applied
to the top 12 priority projects that fall under South Africa’s
2024/2025 infrastructure pipeline to drive public and private sectorled
development.
“We will be able to enhance an integrated planning and proper
procurement process important for infrastructure development in
South Africa,” stated President Ramaphosa.
In a bid to combat South Africa’s ongoing energy crisis, the country’s
state-owned oil company, PetroSA, announced plans in March 2023 to
build a network of gas-fired power plants in Mossel Bay. Furthermore,
Eskom’s proposal to build a Tubatse Pumped Hydro Storage project
with a generation capacity of 1.5GW received the green light from
the Department of Mineral Resources and Energy in 2022.
Phase 2 of the Rooiwal Wastewater Treatment Works will involve
upgrading the plant’s treatment capacity by 80-million litres per day
of wastewater, coupled with the desilting of sludge at the Leeukraal
dam. The proposed Amathole Water Bulk Supply Augmentation
Programme targets the improvement of water resource availability
and is set to gazette progress on the municipalities’ water scheme
project and infrastructure upgrades.
22 23

INFRASTRUCTURE
Multi-billion-dollar Special Economic Zones (SEZs) in the
municipalities of Nkomazi and Namakwa are expected to significantly
stimulate economic activity, industrial development, trade and
job creation in Mpumalanga and Northern Cape, respectively. The
Nkomazi SEZ aims to stimulate primary agricultural production and
agro-processing, while the Namakwa SEZ seeks to drive economic
growth in one of South Africa’s most mineral-rich areas.
INVESTMENT GAP
According to Mameetse Masemola, acting head of ISA, $5.7-trillion
is required to close the infrastructure investment gap in South Africa
by 2050. “Our mandate is to close the infrastructure investment
gap. Our work is to ensure projects are viable and bankable while
ensuring alignment with the Infrastructure Development Act. We are
also prioritising private-public partnerships, and at the same time,
working with authorising departments to unblock project rollout
bottlenecks” said Masemola.
Among the Strategic Integrated Projects (SIPs), the energy
portfolio has the biggest project pipeline, covering transmission,
gas, renewables and green hydrogen and comprising more than
100 projects amounting to R240-billion. The green hydrogen
programme, estimated at R300-billion and including 14 projects,
is an important part of the country’s just transition. Almost 95% of
projects deployed have been private sector-led, including renewable
energy projects developed under South Africa’s Renewable
Independent Power Producer Programme (REIPPP), Embedded
Generation Programme and Just Energy Transition Programme.
Of the energy sector projects, 25 are under construction under
Bid Window 5 of REIPPP, with five having reached financial close.
INFRASTRUCTURE PLANS
Commenting on ISA’s current and future project pipeline, Masemola
stated that the agency has secured R600-million from the South
The main aim of SIDDSA is to facilitate alignment with the objectives
of the Sustainable Development Goals (SDGs) and South Africa’s
National Development Plan (NDP) as well as to ensure access to
greater economical sources of sustainable funding.
African Treasury to fund projects with a high GDP impact over the next
three years and which have not attracted funding in previous years.
“We have mobilised R25-billion through the National Treasury,
which we will use to raise over R70-billion from the private
sector to fund infrastructure projects. We are ready to engage
with investors to fund water, human settlement, logistics and
energy projects,” added Mohale Rakgate, head of the South Africa
Infrastructure Fund.
The project pipeline is presented to potential investors by the
Development Bank of Southern Africa (DBSA) and similar institutions,
who get the projects off the ground and ensure that the infrastructure
is developed.
Through the work that has been done in transforming the
infrastructure landscape, the total value of the country’s SIPs has
grown from R340-billion in 2020 to R540-billion now. South Africa’s
Deputy President Mashatile announced that the country currently
has R233-billion worth of infrastructure projects in construction,
with R170-billion worth in the procurement phase and 18 projects
valued at R10-billion have been completed.
Tel: 087 897 2720 | 076 099 7150
Email: ramaja@adoforcesa.co.za
Website: www.adoforceSA.co.za
21 Dennis Pooley Street,
New East End, Bloemfontein 9301
MISSION
To see ourselves becoming the key
pioneers of the concept of reasonable
designing and constructing for our
time and the future, thus becoming the
leader in the electrical contracting field.
OUR VISION
Visionary
To promote designing and constructing
approaches that allow the participation
of stakeholders and leading them to
their future.
Inspirational
To be part of the dream of our clients
and other stakeholders and inspire them
to achieve more.
Leadership
To be strategic partners to our clients
in the planning and constructing the
roadmap to achieving their endeavours.
Lucas Ramaja Dingaan
Director
Project preparation
is key to developing a
viable project pipeline.
SIDSSA 2024 was organised by the Investment and Infrastructure
Office under the Presidency, in collaboration with the Association
of African Exhibition Organisers. The National African Federation
for the Building Industry joins as an association partner, while
the DBSA is the official sponsor of the event.
24

THOUGHT LEADERSHIP
THOUGHT LEADERSHIP
INFRASTRUCTURE
DEVELOPMENT
within the
context of
ECOLOGICAL
ECONOMICS
Key aspects of ecological economics that have a bearing on
infrastructure development could be stated as follows:
1. Nature-centred perspective. Ecological economics
treats the economy as a subsystem of Earth’s larger ecosystem.
It argues that the human economy is embedded in nature, and
economic processes are biological, physical and chemical processes
and transformation. 1 It recognises that human activities have a
significant ecological footprint, impacting natural resources
and generating waste.
Cities account for 80% of global GDP and will host 75% of the
world’s population by 2050. 2 Between now and 2030, 1.5-million
people are expected to arrive in urban areas every week. 3 Climate
change is one of the indirect impacts of urbanisation and accounts
for 11% to 16% of global biodiversity loss. 4 Without substantial
transformation of the paradigm of urban development, urban
expansion equates to increased greenhouse gas emissions, more
climate change impacts and increased biodiversity loss.
2. Limits and opportunities. Unlike traditional economics, ecological
economics acknowledges the limits of economic growth and the
opportunities for sustainable development. It emphasises the
importance of scale, distribution as well as the role of natural and
social externalities. 5
Business as usual is no longer an option – 44% of global GDP
in cities is estimated to be at risk of disruption from nature loss. 6
Between 1990 and 2015, the urban population increased an average of
1.9 times; in the same period, the urban footprint increased an
average 2.5 times. 7 Not surprisingly, urban areas are responsible for
over 75% of global carbon emissions. 8
3. Intergenerational equity. Issues related to intergenerational
equity, irreversibility of environmental change, and uncertainty
of long-term outcomes guide ecological economic analysis and
valuation. 9 Climate action failure, extreme weather and biodiversity
loss have been ranked as the top three risks humanity will face in
the next 10 years. 10 More than 1.4-billion people living in the world’s
largest urban centres are at high or extreme risk of environmental
disaster. 11 These impacts, resulting from actions of this and past
generations, will lock in impacts on many future generations.
4. Normative approach. Ecological economists challenge
mainstream economic approaches, such as cost-benefit analysis,
by asserting that economics is inherently normative (prescriptive)
rather than purely descriptive. They propose alternative methods,
such as positional analysis, which incorporates time and justice
considerations. ,12,13
Positional analysis is much like a traditional SWOT analysis where
the strengths, weaknesses, opportunities and threats associated
with a particular action are assessed. It provides a more structured
approach to understanding the current context and making informed
decisions to achieve desired outcomes. This will involve gathering
data, conducting assessments and identifying key factors influencing
the situation. More crucially, it will evaluate impacts across a wider
canvas of issues including the natural and social environments, over
much longer time frames, and determine who the beneficiaries will
be and who stands to lose.
A classic example of how this is not done is the conventional
approach to road building. A traditional cost-benefit analysis will
look at the cost of the road versus the benefits to the users and
to the local economy. It will not include in its assessment the
impact of the road on the natural environment (beyond a very
narrowly frames environmental impact study) and the concomitant
immediate biodiversity loss, the ongoing biodiversity loss from
emissions associated with transport and the impact of the road on
areas it cuts across. Roads also act as social barriers in many ways,
including physical barriers; cutting off access to resources; creating a
divide in access to transportation; raising safety concerns as well as
creating psychological barriers influencing perceptions of belonging
and identity.
5. Shared perspectives. Ecological economics shares common
ground with fields like feminist economics, emphasising
sustainability, justice and care values. 14 It also includes a concept
known as eco socialism which refers to the relationship between
capital and ecology. 15 Whereas eco socialism places more value
on the “commons” by emphasises the need for a fundamental
restructuring of society to achieve a more equitable distribution
of wealth and resources while ensuring the protection of the
environment, typical infrastructure investment is more narrowly
focused on the benefits to the investor. A highly visible example of
this is the minimal contribution new buildings make to adjoining
properties and the public realm.
Ecological economics focuses on the connection between humans and the natural environment
(their actual life-support system) and, unlike mainstream economics which often prioritises
efficiency and growth, it focuses on sustainability, development and the interplay between
economic processes and physical reality.
BY LLEWELLYN VAN WYK, B. ARCH; MSC (APPLIED), URBAN ANALYST
The development and maintenance
of the constructed ecosystem
(infrastructure) is reductive.
26 27

THOUGHT LEADERSHIP
THOUGHT LEADERSHIP
Llewellyn van Wyk
I previously referenced the work of ecological economists Malte
Faber and Robert Costanza, particularly the emphasis they placed
on its focus on nature, justice and time. They stressed issues of
intergenerational equity, irreversibility of environmental change,
uncertainty of long-term outcomes and sustainable development
guiding ecological economic analysis and valuation.
Robert Costanza argues that cities can be understood as complex
and emergent social-ecological-technological systems (SETS) where
social includes issues such as culture, economics and governance;
ecological embraces climate and the biophysical and technological
includes engineered and built environment dimensions. 16 The
authors of the cited paper provide insights on transdisciplinary
approaches for developing transformation strategies for complex
urban systems and related enablers from local-to-national scales.
Of importance to this think piece is the context sketched by the
authors of what transformation may mean in an urban context:
they state “transformation means the changes needed to address
a significant gap between longer-term societal aspirations and the
current status, typically requiring simultaneous change across multiple
interdependent urban sub-systems (for example, across land use,
transport, energy and environmental systems to achieve interlinked
outcomes); and enablers refers to the underpinning urban capacities
necessary to support multiple such transformation”. 17
In a study done in 1996, Costanza emphasised the need to bridge
the gap between human activities and ecological systems, advocating
for an integrated approach to economics and environmental science. 18
This was followed up in 1997 with a study co-authored by Constanza
and others which quantified the economic value of ecosystem
services and highlighted their importance for human well-being. 19
Constanza’s categorisation of SETS correlates well with the human
ecological model I have included (Figure 1). In mainstream economics
the three core components would typically be described as natural,
social and infrastructure capital, akin to an asset. However, the
ecological lens requires that they be understood as ecosystems –
intricate communities where life and environment coexist, shaping
our planet’s diversity and balance.
Ecologists show great interest in the transition zones between
biomes as it is here that a unique environment is created. Similarly,
it is within the interstitial spaces (transition zones) between the
natural, social and constructed ecosystems that the challenges of
infrastructure development come into sharp focus. It is possible to
view these interstitial spaces through several lenses: for purposes
of this think piece, I am using the exchange of goods and services
between the ecosystems.
Figure 1 identifies three interstitial spaces: natural/constructed,
natural/social and constructed/social.
Not surprisingly, urban areas are
responsible for over 75% of global
carbon emissions.
1. Natural/constructed interstitial zone. The development
and maintenance of the constructed ecosystem is dependent on
resources drawn down from the natural ecosystem. This includes
materials such as cement, metals, sand, timber, clay, aggregate, among
others. Apart from timber, most of these resources are finite and are
accessed through extractive processes. The conversion of these raw
materials into finished products is a second layer of resource use
(energy). Consequentially the ecological footprint is significant
and multifaceted. The extractive industries contribute to climate
change through greenhouse gas emissions which affect weather
patterns, ecosystems and extreme weather-related events.
Activities associated with extractive industries often lead to
habitat destruction and irreversible environmental change. The
extractive industries release pollutants into water bodies, affecting
aquatic life and human health for generations to come. Extractive
activities rely on significant water resources for mining and other
extractive processes. Mining, quarrying, and deforestation disturb
soil structures, leading to erosion and reduced soil fertility. Often
the ecological impacts fall disproportionately on adjacent local
populations (often poorer communities) and impacts on future
generations to come.
In addition, the expansion of the constructed ecosystem through
infrastructure construction (buildings, roads and related infrastructure)
into natural ecosystems depletes that biologically productive area
of that ecosystem by reducing biodiversity and ecological function.
Some progressive countries are recognising this relationship and
are introducing mechanisms to change it: England is launching
a biodiversity credit scheme that will require all new road and
housebuilding projects to benefit nature, rather than damage it.
The “nature market”, called biodiversity net gain (BNG), requires all
new building projects to achieve a 10% net gain in biodiversity or
habitat, either on the site or somewhere else. 20
2. Natural/social interstitial zone. This zone provides all the
ecological goods and services that all living species on the planet
rely on, including clean air, fresh water, food, fibre, biomass, genetic
resources, biodiversity maintenance, decomposition of wastes, soil
and vegetation generation and renewal, pollination of crops and
natural vegetation, groundwater recharge through wetlands, seed
dispersal, greenhouse gas mitigation, medicines as well as cultural and
spiritual value, to name a few. The impact of extractive activities and
the operation of the constructed ecosystem depletes and degrades
natural resources thereby undermining the ability of ecosystems to
provide effective ecological goods and services.
3. Constructed/social ecosystems interstitial zone. As with
ecological goods and services, infrastructure provides goods and
services to communities. However, this is often uneven: according to
Statistics South Africa (January 2022) in South Africa approximately
23% of households do not have access to piped water in their
Figure 1. Ecological economics within the context of
infrastructure development.
28 29

THOUGHT LEADERSHIP
THOUGHT LEADERSHIP
dwellings. As of the most recent data, 2.2-million households
in South Africa live in informal dwellings. Approximately 37% of
South Africa households do not have access to a flush toilet inside
their dwellings. Not surprisingly, this burden falls exclusively
on the poor.
CONCLUSION
On almost all counts the current infrastructure paradigm is diametrically
opposed to the key factors of ecological economics.
The development and maintenance of the constructed ecosystem
(infrastructure) is reductive, ie the exchange of goods and services
between itself and the natural and social ecosystems diminishes
biological and sociological functionality over time. Every metre of
road, wall, pipe, cable and all other constructions requires resources
derived from the natural ecosystem for construction and maintenance
thereby reducing the resource quantity and quality, as does every
litre of fuel or water consumed. The exchange is also unequitable:
the flow is one-dimensional (from the resource base to the resource
consumer), and benefits of that resource use is unequally divided
among population groups and prejudicial to future generations.
The often-repeated claim that “infrastructure investment is key to
the future of cities” is not defensible if that investment is out of line
with ecological economics: so too, is the call for “infrastructure based
on quality-cost-selection” – it is so much more than this.
It is of critical importance that decisionmakers and participants
active in the South African National Infrastructure Plan stop and
review their investment paradigm against the key factors involved
in ecological economics. Failure to do so will unquestionably result
in investment continuing its damaging influence on natural, social
and constructed ecosystems.
Cities account for 80%
of global GDP and will
host 75% of the world’s
population by 2050.
REFERENCES
1 Nelson, A., & Coffey, B., 2019. “What is ‘ecological economics’ and why do we need to talk about it?” The Conversation, November 5, 2019.
2 WEF 2022. BiodiverCities by 2030: Transforming Cities’ Relationship with Nature. World Economic Forum in collaboration with Arup and AlphaBeta.
3 Ibid.
4 Ibid.
5 Constanza, R., 2010. “What is ecological economics?” Yale Insights, May 11, 2010.
6 WEF 2022. BiodiverCities by 2030: Transforming Cities’ Relationship with Nature. World Economic Forum in collaboration with Arup and AphaBeta.
7 Ibid.
8 Ibid.
9 Malte Faber. 2008. “How to be an ecological economist.” Ecological Economics 66(1):1-7.
10 WEF 2022. BiodiverCities by 2030: Transforming Cities’ Relationship with Nature. World Economic Forum in collaboration with Arup and AlphaBeta.
11 Ibid.
12 Mattson L. 1975. “Book Review: Positional Analysis for Decision-Making and Planning by Peter Soderbaum.” The Swedish Journal of Economics.
13 Soderbaum, P. 2008. “Understanding Sustainability Economics.” Earthscan, London. ISBN 978-1-84407-627-7. pp.109-110, 113-117.
14 Aslaksen, I.; Bragstad, T.; Ås, B., 2014. “Feminist Economics as Vision for a Sustainable Future”. In Bjørnholt, Margunn; McKay, Ailsa (eds.). Counting on Marilyn Waring: New Advances in Feminist Economics.
Demeter Press/Brunswick Books. pp. 21-36.
15 Erald, K., April 2021. “The Physics of Capitalism”, Sustainable Human Development, The Jus Semper Global Alliance.
16 Webb, R., O’Donnell, T., Auty, K., Bai, X., Barnett, G., Costanza, R., et al, 2023. “Enabling urban systems transformation: co-developing national and local strategies.” Urban Transformations, (2023) 5:5.
17 Ibid.
18 Constanzs, R., 1996. “Ecological economics: reintegrating the study of humans and nature.” Ecological Applications 6:978-990.
19 Constanza et al., 1997. “The value of the world’s ecosystem services and natural capital.” Nature 387:253-260.
20 Weston, P., 2024. “England brings in biodiversity rules to force builders to compensate for loss of nature.” Downloaded: February 13, 2024.
30 31

MOBILITY
POWERED BY PURPOSE
Masslift electrifies sustainability
standards with Mitsubishi’s
Counterbalance Electric Forklift
At Masslift Africa, our commitment goes beyond
just business – we are driven by a sense of
purpose. With the Mitsububishi Counterbalance
Electric Forklift, we are not just revolutionising
operations; we are electrifying sustainability
standards in the industry.
We serve our customers across various industries with
innovative solutions while prioritising social corporate
investments (SCI). Alongside our focus on health and safety,
we ensure that our products not only benefit our customers but
also the environment. One such environmentally friendly solution
is the Mitsubishi Counterbalance Electric Forklift, a testament to
our dedication to sustainability.
What sets the Counterbalance Electric apart
The Mitsubishi Counterbalance Electric Forklift distinguishes itself
in the market with a range of advanced features geared towards
sustainability and efficiency. Users benefit from reduced downtime,
less maintenance, and more power, ensuring maximum productivity
and reliability in their material handling operations.
ECO-mode features
At the core of Masslift’s commitment to sustainability lies the
ECO-mode embedded in the Mitsubishi Counterbalance Electric
Forklift. This isn’t just a feature; it’s a game changer. The ECO-mode
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The ECO-mode button becomes your conductor’s baton,
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Lithium-ion batteries
Masslift’s Mitsubishi Counterbalance Electric Forklift is equipped
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Key features
Low centre of gravity. The Mitsubishi Counterbalance Electric
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Auto torque up and wide visibility. With features such as auto torque
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increasing productivity while reducing the risk of accidents.
The Mitsubishi Counterbalance
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Safety cruise and travel hydraulic interlock. Safety features like
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“The Mitsubishi Counterbalance Electric Forklift represents a significant
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Website: www.mittsubishiforklifts.co.za
32

CIRCULARITY
CIRCULARITY
THE CIRCULAR
ECONOMY
A different kind of
development path for Africa
Professor Linda Godfrey is strengthening the evidence base to inform the transition to a more
circular South African economy. She will be a keynote speaker at the ISWA2024 World Congress
on 16-18 March at CTICC, Cape Town. Green Economy Journal met up with the professor.
What are the biggest challenges facing the waste sector in
South Africa?
The waste sector is a very broad sector, encompassing the
management of many different waste streams, from municipal
waste which includes paper and packaging waste, and food and
garden waste, to industrial waste streams such as agri- and agroprocessing
waste, to hazardous waste streams, such as healthcare
risk waste.
Municipal waste is the most “visible” of the waste streams as
we see it every day as consumers and residents. Having worked
in the South African waste sector for near on 30 years, I have had
the opportunity to see how this sector has changed, how it has
stayed the same, and in some instances, how it has deteriorated.
We face a significant municipal waste problem across our cities
and towns in South Africa: the increase in illegal dumping and
littering, failure in waste collection in many towns, failure to roll out
separation at source systems across all metropolitan municipalities,
secondary cities and large towns as well as non-compliance in
the operation of many of our waste disposal facilities. According
to latest General Household Survey by StatsSA, “the percentage
of households whose refuse was removed at least once per week
dipped below 60% for the first time since 2008. This decline was
accompanied by an increase in the percentage of households
that reported using their own refuse dumps”.
However, the difference in waste collection services between
urban and rural areas is dramatic, with only around 12% of
households in rural areas receiving a regular weekly waste
collection service. It’s not surprising then that this results in
increased uncontrolled dumping and open burning of waste. The
intentional burning of waste appears to have become a regular
management practice for many of our municipalities as a way to
manage their waste, causing significant air pollution and potential
human health issues for workers and local communities.
We’ll be discussing this issue in much greater detail at the
upcoming ISWA2024 Conference in Cape Town. It will be the
first time this international waste conference will be held on the
African continent.
There is also good news from the waste sector. We are seeing
the adoption of alternative waste treatment technologies, albeit
slower than we’d like given the fact that the waste hierarchy has
been embedded in South African policy since 1999. But because
South Africa is about 20 to 30 years behind the global north in
the management of waste, we have the opportunity to drop
technologies into South Africa quickly, with a focus on technology
localisation and adaptation – if we have the right enabling
environment, appropriate policy and enforcement of that policy
on both the public and private waste sectors.
We’re also seeing innovative new technologies emerge out
of our universities and science councils. This has been a strong
focus of the Department of Science and Innovation through the
national Waste Research, Development and Innovation (RDI)
Roadmap; to support the diversion of waste away from landfill
towards value-adding opportunities, including prevention of waste
and the optimised extraction of value from reuse, recycling and
recovery, to create social, economic and environmental benefit.
You led the compilation of the Waste RDI Roadmap for South
Africa (2015-2025). What was the roadmap’s objective? Did it
meet its objective? What happens after 2025?
Over the last nine years of implementation, the Waste RDI Roadmap
has funded near on 60 research grant projects which has built much
needed skills for the sector and has produced invaluable evidence
PROFESSOR LINDA GODFREY
Professor Linda Godfrey is a principal scientist at the CSIR and
an Extraordinary Professor at North-West University, South Africa. She
holds a PhD in Engineering. Professor Godfrey has provided strategic
input to a number of local, regional and international waste and circular
economy initiatives for the United Nations, European Union, World Bank,
South African government, business and
academia. She lectures internationally on
solid waste management and the circular
economy in the context of developing
countries. She has published extensively
in the field.
Professor Godfrey is a keynote speaker
at the ISWA2024 World Congress in Cape
Town. The topic of her presentation is
“What will it take to fix South Africa’s
broken waste management system?”
South Africa has 18 critical and
strategic minerals, five of which have
less than 50 years of economically
viable mining remaining.
34 35

CIRCULARITY
10 Recyclables You Should Be Keeping Out Of Your Bin For Recycling Collectors
The informal recycling sector has experienced substantial growth over the years.
Waste is not waste if it has value: value for people, the economy, and the
environment.
Covering significant distances on foot every day,
collectors weave through suburbs, cities and
communities to retrieve ‘waste’ in return for cash.
Recycling ensures that valuable materials are diverted
away from landfills, which are rapidly reaching
capacity. These materials are sorted and sent to
recycling mills and factories for conversion into usable
and commercially viable products.
Recycling collectors do not take all
recyclables
Several recyclables are like gold for waste collectors,
but unfortunately just because it’s recyclable or
recycled in South Africa, does not mean a waste
collector will take it. They will only take items for which
they will earn money, and they will not take items that
they cannot sell or which are too heavy to pull over
long distances.
With a bit of kindness and thought about your own
refuse habits, you can make their work a little quicker
and easier.
Keeping recyclable paper clean and dry is
paramount. As a raw material that can be used in
new paper products, it should not be
contaminated by wet and rotting food waste,
liquids or pet waste.
10
RECYCLABLE ITEMS
TO KEEP ASIDE FOR
RECYCLING COLLECTORS
1. Brown cardboard boxes
2. Food packaging such as cereal,
Pizza and take-away boxes
(Remove food residue)
3. Grocery delivery bags and
Take-away bags
4. Used office paper
5. Plastic milk bottles
6. PET soft drink bottles –
Various sizes
7. Fabric softener bottles
8. Milk and juice cartons
9. Aluminium
Soft drink cans
10. Food cans
to guide and inform the sector, and innovative technologies, many
of which are now being further developed or implemented together
with private sector partners.
For example, we’re seeing really interesting and beneficial
research out of the Council for Scientific and Industrial Research’s
(CSIR) Biorefinery Industry Development Facility (BIDF) on the
recovery of high-value products from forestry, pulp and paper
sector waste streams. These technologies have the potential to
reduce the environmental burden on industries and to unlock
new enterprises.
The Waste RDI Roadmap, as a strategic document to guide
the investment and direction in waste research, development
and innovation in South Africa, comes to an end now in 2025.
But we won’t stop what we’re doing. There’s still so much work
to be done in this space. Instead, the activities of the Waste RDI
Roadmap are being incorporated into the Department of Science
and Innovation’s new Science, Technology and Innovation for a
Circular Economy (STI4CE) Strategy. This new strategy is currently
being finalised in response to government’s new STI Decadal Plan
(2022-2032) which recognises the circular economy as a growth
opportunity for South Africa.
Because most of the Waste RDI Roadmap research is publicly
funded, the outputs are made available on the Waste RDI Roadmap
website for everyone to access. We hope that business will engage
with this research, and with our research community, to use this
evidence and to adopt these technology solutions into their business
practices, thereby uplifting the entire sector.
What does the circular economy mean for South Africa as a
developing country?
This concept of a circular economy – to design out pollution and
waste, to keep products and materials in use and to regenerate
natural systems – has gained a lot of traction globally and locally
over the past five or so years. There is still, unfortunately, this
misnomer that the circular economy is just about waste, or worse
still, that it’s a synonym for recycling.
Waste is a logical entry point into the circular economy, a “low
hanging” fruit in terms of implementing circular solutions, but there
is so much more to the circular economy than that. The circular
economy is really about sustainable resource management. I would
go so far as to say that the circular economy is about national
The circular economy is about
national resource-security in support
of socio-economic development.
resource-security in support of socio-economic development –
through sustainable resource utilisation. This is why transitioning
to a more circular economy is no longer a nice-to-have, but an
economic, social and environmental imperative for every country.
Research by the CSIR has shown that resource scarcity is a driver
for South Africa to transition to a more circular economy. We’ve
seen the impacts of energy insecurity on the national economy,
and water insecurity on regional and local economies. Available
information suggests that South Africa has 18 critical and strategic
minerals, five of which have less than 50 years of economically
viable mining remaining, assuming no new reserves are found.
And unfortunately, more than 90% of these minerals are exported
leaving us with little ability to recover them at end of product life and
reintroduce these resources back into the South African economy.
Materials insecurity, particularly for non-renewable resources,
is therefore a reality for South Africa, as it is for all countries. I
believe though, that the circular economy also presents significant
opportunities for South Africa and Africa – a different kind of growth
path for the continent – a more sustainable, low-carbon, efficient
and sufficient growth path that meets the needs of all, and with it
the potential to create significant jobs. And that’s incredibly exciting.
How does waste-to-energy fit into a circular economy?
This question really depends on how you define waste-to-energy
(WtE). It’s a very broad term which encompasses many technology
solutions, from landfill gas recovery to low temperature bio-WtE
technologies such as anaerobic digestion or biogas recovery, to
high-temperature thermal-WtE technologies such as incineration,
pyrolysis and gasification. I do believe that bio-WtE technologies like
biogas recovery from organic waste streams such as food, garden
or agricultural waste is integral to a circular economy.
However, thermal-WtE technologies are really about the
destruction of waste streams, the destruction of resources,
either because they are not technically or economically reusable
or recyclable (design flaw), or because we have failed to put the
Golden rules for recycling
Separate recyclables
And food/wet waste.
1. 3.
Get a bin, box or
bucket for your
recyclables.
Recycling containers
don’t need to be
fancy or expensive.
2. 4.
5.
Keep paper recyclables
clean and dry.
Give plastic, glass and
cans a light rinse if
needed, using dirty dish
water.
Get the family involved
and make sure everyone
knows what is recyclable.
Putting People, Paper And
The Planet At The Centre
Of The Circular Economy.
www.fibrecircle.co.za | 011 593 3144
37

READ REPORT
READ REPORT
CIRCULARITY
systems in place to divert these resources back into the economy
(an operational flaw). And so, I would say that destroying resources
at end-of-life through thermal-WtE is not part of the circular
economy. We lose the ability to return these resources – whether
it be polymer, nutrients, fibre or metals – back into the economy.
There is certainly a lot of potential to introduce more bio-WtE
facilities into South Africa, given that organic waste (food, garden,
agricultural waste) is the single largest general waste stream
produced in South Africa. It’s also a significant contributor towards
South Africa’s greenhouse gas emissions, because of the aerobic
and anaerobic breakdown of these organic wastes into carbon
dioxide and methane (among others).
Zero organic waste to landfill policy is important in sending the
right signals to the private sector which will move to adopt and
invest in appropriate technologies for South Africa.
We hope that the recent gazetting of the mandatory Extended
Producer Responsibility (EPR) will have the same benefits for South
Africa – increased investment in appropriate technologies to
beneficiate these waste streams locally and keep these resources
(and associated jobs) in the country for as long as possible before
they have to enter into the global market.
38
THOUGHT [ECO]NOMY
greeneconomy/report recycle
A WASTE RESEARCH, DEVELOPMENT AND INNOVATION
ROADMAP FOR SOUTH AFRICA (2015-2025)
Towards a secondary resources economy
Summary report
THOUGHT [ECO]NOMY
greeneconomy/report recycle
ISWA2024 WORLD CONGRESS | WASTE TO WEALTH:
Solutions for a sustainable future | CTICC, Cape
Town | [16-18 September]
“The Institute of Waste Management of Southern Africa (IWMSA)
invites you to join us for the ISWA2024 World Congress taking
place for the first time on African soil. Come and experience
Cape Town, South Africa’s beauty, culture and vibrance. We want
you to be part of the conference’s legacy, where we move Africa,
which is well resourced, from waste to wealth and help us provide
solutions for a sustainable future.” Mpendulo Ginindza, IWMSA
President and ISWA2024 Conference Chair
The ISWA World Congress is the foremost event in the field of
solid waste management. It serves as a global assembly, featuring
elevated plenary sessions, technical site visits and a rich cultural
and social itinerary. Here, waste management professionals,
government officials, industry leaders, policymakers, scientists
and emerging professionals convene, engaging in constructive
dialogues to encourage scientific and technical advancements
in sustainable solid waste management.
A WASTE RESEARCH, DEVELOPMENT AND INNOVATION ROADMAP FOR
SOUTH AFRICA (2015-2025) | Towards a secondary resources economy | Summary report |
Department of Science and Technology | Dr Linda Godfrey, CSIR, and Michael Rivers, Mutualfruit Ltd |
[November 2014]
The Waste Research Development and Innovation (RDI) Roadmap has been developed in support of
strategic national priorities. The successful implementation of this 10-year plan can make a positive
and meaningful contribution towards growing and transforming the South African waste sector.
Developing, strengthening and embedding South Africa’s waste RDI capacity within and between
research and academic institutions as well as industry and government will enable the sector to make
more effective decisions, appropriate technologies and create opportunities for the export of knowhow
into the African continent and beyond. Waste management is also increasingly a shared global
issue. In addition to national priorities, the Waste RDI Roadmap provides significant opportunity for
international collaboration and investment on shared priorities.
SCIENCE, TECHNOLOGY AND INNOVATION DECADEL PLAN 2022-2032 |
Department of Science and Innovation | [2022]
The Decadal Plan sets out the science, technology and innovation (STI) priorities and thematic focus
areas for the next decade to support the achievement of the National Development Plan objectives.
It is premised on advancing a whole-of-government approach (and ultimately a whole-of-society
approach) to innovation in South Africa.
The intention is to optimise synergies among STI-intensive government departments and the
rest of government through joint programming and co-funding for STI priorities, and hence to
ensure policy certainty to maximise the contributions of business, civil society and academia to STI
initiatives and investments.
STI are recognised as core drivers of socio-economic development and improving the lives of citizens.
The national system of innovation is an enabling framework and seeks to harness the diverse aspects of
STI through various institutions that develop, practice or use STI.
Transforming
WASTE INTO WEALTH
in KZN townships The success story of Use-IT NPO
In a world where environmental sustainability is increasingly becoming a priority, businesses
that innovate and champion eco-friendly practices stand out as beacons of change.
BY USE-IT
Among these pioneers is USE-IT NPO, a waste beneficiation
company making waves in the green economy of KwaZulu-
Natal (KZN). Based in Hammarsdale outside Durban,
Use-IT was established as a non-profit organisation to research
and develop waste beneficiation technologies with the aim of
diverting waste from landfill and creating jobs in the green
economy of KZN.
Through our innovative approach to recycling and waste
beneficiation, USE-IT KZN has transformed waste into valuable
resources and exemplified the power of sustainable business
models for SMME development and job creation opportunities. The
successes of the past five years underscore the effectiveness of the
current strategy and set a solid foundation for future growth and
impact in recycling and environmental conservation.
Founded on the belief that every piece of waste holds potential
for a greener future, USE-IT embarked on a mission to revolutionise
the recycling landscape in KZN communities. It remains our shared
objective to nurture entrepreneurs who share our vision of achieving
“zero waste to landfill”. To achieve this we developed cutting-edge
technologies, world-class facilities and sustainable practices to
process and repurpose these materials efficiently.
SMME DEVELOPMENT PROJECTS
USE-IT has forged strategic partnerships with our local SMMEs and
industry stakeholders, creating a robust network that facilitates
the efficient collection, processing and distribution of recyclable
materials. The principal focus at the centre is on green jobs and
skills development.
Over the past three years, we have witnessed rampant growth in
our incubation centre. This growth involves Owethu Sewing that
now exports products to international markets, Home Decor, the
furniture specialist and Educational Toy Project. This collaborative
approach has enhanced our operational efficiency and opened new
avenues for business growth and expansion. We have diligently
reviewed all on-site tenants, partners and incubates to ensure
their compliance with our rules, licenses and strategic SMME
development objectives.
INNOVATION IN WASTE
We strive to foster innovation and focus on township economies
by harnessing waste as a valuable resource. USE-IT takes pride in
the exceptional waste management practices and overall tidiness
Waste has value, just USE-IT.
CIRCULARITY
of our site and communities. Our key success pilot project with
Green KEY Brick served as a catalyst for environmental change
beyond its operational achievements.
USE-IT has partnered on a CSIR-funded project to establish a
demonstration site to produce a full analysis from materials through
to the construction of a 40m 2 house. This will include application
for Agrément certification, making the innovation a certified and
credible green building alternative. In the last year, we witnessed
remarkable progress with the Green KEY Brick project in Zambia
with an off-take of 60 000 houses across 10 regions.
COMMUNITY DEVELOPMENT
Through educational outreach programmes, community partnerships
and corporate collaborations with the Social Employment Fund,
we continue to align with our core mission of reducing waste to
landfill within a circular economy framework, promoting job creation
and entrepreneurship opportunities within the recycling industry.
We have collaborated with our local community waste pickers
who proactively bring us waste in exchange for income. This has
been one of our interventions to create jobs and support livelihoods.
The community project supports part-time work since evidence
shows that this enables complementary livelihood activities and
pathways into entrepreneurial activity.
We are partnering with other businesses to further support
schools in our area through a school recycling programme. USE-IT
contributed to three schools in a local ward in the Mpumalanga
township of Hammarsdale by hosting schools at our facilities.
CONCLUSION
As the world grapples with the challenges of waste management,
USE-IT stands as a shining example through innovation and a
commitment to sustainability in our KZN townships. By revolutionising
waste beneficiation and recycling, USE-IT’s plan is to divert waste from
landfills and be more aggressive in creating economic opportunities
and promoting environmental stewardship.
We thank our long-serving and valued funder, eThekwini
Municipality, for its support throughout our journey. Without your
financial contribution, we would not be where we are. Partner with
USE-IT for social change. Waste has value, just USE-IT.
39

FROM
TO
BURDEN
BENEFIT
LET CIRCULAR ENERGY TAKE THE WEIGHT OFF YOUR
SHOULDERS AND ENSURE YOUR BUSINESS’ EPR COMPLIANCE
GIVE IT BACK
The onus is no longer on your customers to ensure that your products
are diverted from landfills. According to the Extended Producer
Responsibility regulations, the responsibility is yours. Green Economy
Journal speaks to the CEO of Circular Energy, Patricia Schröder.
CIRCULARITY
CEO, Circular Energy, Patricia Schröder.
WHAT DOES THE EXTENDED PRODUCER
RESPONSIBILITY (EPR) REGULATIONS SAY?
Promulgated in 2021 by the Department of Forestry, Fisheries &
Environment (DFFE), the EPR regulations hold you, the producer,
accountable for the entire life cycle of your products, from
conception to post-consumer waste disposal.
CIRCULAR
E N E R G Y
TAKE ACTION!
LET US HELP YOU
If your company imports or manufactures Electrical and
Electronic Equipment, Lighting, Paper and Packaging Products,
Batteries, or Lubricant Oil for sale in South Africa, it must comply
with the 2020 Extended Producer Responsibility (EPR)
Regulations.
HOW CAN WE HELP YOU?
We will provide your company with a
comprehensive solution to manage your EPR
duties.
Simply report your product data to us, and we'll
take care of the rest, by reporting to the DFFE
and managing the recovery and recycling of
your post-consumer waste, among other
requirements. We've got you covered with our
nationwide take-back scheme that focuses on
electronic equipment, batteries, lighting and
lighting equipment, product packaging, as
well as lubricant oil
Don't let non-compliance put your business at risk of
financial and legal consequences. Join Circular Energy
and enjoy the peace of mind that comes with knowing
your EPR compliance is taken care of by the experts.
RESPONSIBLY REDUCING ENVIRONMENTAL IMPACT THROUGHOUT THE ENTIRE PRODUCT LIFECYCLE.
As a PRO, we are approved and registered with the Department of Fisheries, Forestry, and the Environment (DFFE) with the following registration numbers:
Electric and Electronic Equipment – 19/7/6/E/PRO/20211012/006 | Lighting and Lighting Equipment – 19/7/7/L/PRO/20220808/031 | Paper and Packaging – 19/7/5/P/PRO/20220808/032 |
Portable Batteries - 19/7/5/P/PRO/20230428/039 | Lubricant Oil – 19/7/7/L/PRO/20230816/048
Please provide an overview of Circular Energy NPC.
Circular Energy is a non-profit company (NPC) and a Producer
Responsibility Organisation (PRO) registered with the Department
of Forestry, Fisheries and the Environment to operate compliance
schemes under Section 18(1) Extended Producer Responsibility
Regulations (2020) of the National Environmental Management:
Waste Act, 2008 (Act 59 of 2008) (NEMWA). Circular Energy is
registered to provide its services to the following sectors:
• Electric and electronic equipment [19/7/6/E/PRO/20211012/006]
• Lighting and lighting equipment [19/7/7/L/PRO/20220808/031]
• Paper and packaging [19/7/5/P/PRO/20220808/032]
• Portable batteries [19/7/5/P/PRO/20230428/039]
• Lubricant oil [19/7/7/L/PRO/20230816/048]
What does Circular Energy do?
Circular Energy assists its members in terms of their compliance
obligations for their identified products as specified in the
EPR regulations and sector notices. Among other compliance
requirements, Circular Energy manages a nationwide take-back
scheme for the collection, transportation, recovery and recycling
through environmentally sound management principles of its
members’ end-of-life products.
Consumer and corporate behaviour
needs a mind-shift change to be more
active in supporting recycling and
waste reduction initiatives.
Please discuss the importance of diverting e-waste via the correct
channels to the correct facilities.
eWaste is one of many waste streams covered by Circular Energy.
As a holistic viewpoint for all waste streams, diverting waste via the
correct channels to the correct facilities, has the following benefits:
• Diverting waste from overburdened landfills
• Recovery of resources for re-use in secondary markets whether
as products or recovered raw materials
• The hazardous and/or toxic properties of waste products are
managed in an environmentally sound manner at accredited
and licenced waste management facilities, as verified by
Circular Energy across South Africa
• All recovered and recycled products are monitored and
reported with track and trace methods
• The elimination of harm to the environment, communities
and natural ecosystems
• The creation of business opportunities and employment
• Innovation is enabled
• Contributing to skills development
What are the biggest challenges for the sectors in South Africa?
Bad practice in terms of waste management by companies or
individuals that only care about quick financial gains which
results in pollution, environmental degradation and health risks
to communities.
Consumer and corporate behaviour needs a mind-shift change
to be more active in supporting best practice recycling and waste
reduction initiatives.
What gives Circular Energy the edge?
Circular Energy has established a successful nationwide consumer/
household and business collection system for small electric and
electronic waste, household lighting and waste batteries at more
than 600 retail outlets that are collected for environmentally sound
processing and recycling.
The collection request capability on Circular Energy’s website
for businesses and consumers enables a convenient collection
system directly from households and businesses for smaller and
larger items such as fridges and washing machines etc.
This has resulted in the diversion of significant tonnages of electrical
or electronic waste, lighting and battery waste from landfills, and
ensuring best environmental practices for managing these waste
streams. The materials recovered from the recycling processes are used
in secondary markets, thereby supporting circular economy principles.
Additionally, Circular Energy’s corporate differentiators include:
• Operating an EPR system in compliance with rigorous
governance principles:
✓ Transparency
✓ Consensus orientated
✓ Equitable and inclusive
✓ Responsive
✓ Follow the rule of law
✓ Accountability
• Supplying and acquiring the necessary resources and knowledge
to manage every aspect of business performance.
• Respecting the privacy of data subjects under the Protection
of Personal Information Act and Promotion of Access to
Information Act.
• Setting ground rules for all that we do as an organisation
through ethical principles.
• Promoting and putting into practice the concepts of the circular
economy, carbon footprint reduction and minimisation of all
waste types.
• Promoting and supporting best practices for products and
service life cycles.
• Prioritising research, innovation and implementation of
waste. programmes through supporting technology. This is
to reduce the impacts of general and hazardous waste in the
sectors serviced by diversion from landfills.
• Implementing and enhancing systems to recognise, manage
and monitor health, safety and environmental risks throughout
the company’s value chain.
41

CIRCULARITY
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(think water and biomass) but are less prevalent in man-made
systems. Converting fossil fuels and minerals into energy and
materials is a prime example of man-made open-loop processes in
which finished products are discarded or accumulate in unwanted
forms, such as CO 2 emissions.
Exceptions do exist. Notably, 50% to 90% of aluminium is recycled
(depending on the application), and other metals such as steel, copper
and zinc also have recycling rates above 50%. 2 Nevertheless, only 9%
of all human-produced end-of-life materials and energy are recycled.
For plastics, that rate is 20%, with polyethylene terephthalate (PET)
being among the highest at 29% to 58% across the US and Europe,
leaving a significant opportunity on the table for recycling. 3
What is special about plastics, and what are its circular scenarios?
Chemical products, including plastics, have improved the quality
of life for people across the globe over the past century. Useful
properties and versatility combined with low cost have allowed
these products to proliferate and deliver significant benefits
to consumer convenience, industrial processes, logistics and
public health. Unfortunately, these benefits have come with
an environmental cost. Packaging, for example, accounts for at
least a third of plastics usage and presents one of the most acute
challenges for closing the loop.
To understand the potential path to creating a circular value
chain for plastics, it’s helpful to look at other materials that have
similar usage patterns. For example, the aluminium value chain
highlights some of the potential success factors while also revealing
the unique factors that must be addressed for plastics. Historically,
aluminium was mostly used for durable products in construction,
transportation and other heavy industries. Although aluminium
packaging had existed before, it accelerated in the 1960s with the
explosive growth of beverage cans. As aluminium entered the public
consciousness, with it came a call for recycling. The aluminium
recycling process begins with collecting scrap at the point of use
followed by aggregation, melting, purification and remixing with
virgin feedstock (Figure 1).
The main lessons from this closed-loop process include valuation
of the scrap material to incentivise its capture, a mixed mechanical
and chemical recycling value chain, purification technology and
favourable economics that create a cost advantage for using recycled
material rather than virgin feedstock.
Recycling value chains for plastics are less well-established than
those for metals. Single-material circular value chains, which we refer
to as small-loop scenarios, are presently the most common, such
as polyester material in PET bottles. The path forward for greater
circular flows of plastic will involve a combination of plastics-specific
small-loop scenarios and multiple-plastic, large-loop scenarios
(Figure 2).
Closed-loop value chain for aluminium
CLOSING THE LOOP
Man-made open-loop systems are centuries old – converting natural resources into energy
and materials in a linear process of make, use and dispose. These systems fuelled the Industrial
Revolution, which elevated the quality of life and economic condition of people globally. Yet,
these processes generate huge amounts of waste and are now considered unsustainable.
Figure 1. The metals industry has a well-established recycling process.
Potential closed-loop value chains for plastics
BY KEARNEY CONSULTING
Plastics, along with energy, are central to this issue given the
waste and emissions created in the linear systems used for
their production. Images of plastic waste in beautiful natural
ecosystems such as beaches and oceans along with information
about the potential environmental impact have prompted a
growing and emotional public call for action.
Despite the many applications and benefits, including being
versatile, lightweight, cost-effective, safe and clean; plastic materials
– more than $500-billion of global product value – are now more
vulnerable than ever to public and government scrutiny. 1 To
respond, plastics producers and consumer companies are taking
a range of actions, from redesigning their products to reduce how
much plastic they use and opting for renewable sources instead
of fossil-based feedstock to reusing and recycling.
Recycling through viable circular chains has the power to stem
the negative tide and secure the use of plastics. For chemical and
consumer companies on the journey to address the opportunities
and challenges of the circular economy, success will depend on
recognising the unique characteristics of the plastics value chain,
understanding the forces that will drive future models and planning
an appropriate course of action.
What is a circular value chain?
In its simplest form, a circular system has inputs that remain in
the system and are reused rather than expelled as waste. In a
circular economy, the value of products, materials and resources
is maintained in the system for as long as possible, and waste is
minimised. These closed-loop systems are easily found in nature
Figure 2. A circular system for plastics is likely to involve two closed-loop models.
50% to 90% of
aluminium is recycled.
42
43

CIRCULARITY
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Figure 3. Plastics recycling two potential closed-loop models.
The process of “denormalising”
plastic waste will take time and
coordinated effort, but it has begun.
The small-loop scenario would involve many separate
plastic-specific circular value chains, such as one for polyester,
one or many for polyolefins (polyethylene and polypropylene) and
one for polyvinylchloride. This would require collecting plastic waste
and then separating it into district streams based on the material
type for further processing to enable its reuse in the value chain at
near-similar value to its virgin equivalent and at a similar point, for
example as a polymer product.
The large-loop scenario would also involve collecting waste, but
it would involve non-material-specific circular value chains that can
handle multiple types of plastics. This large-loop scenario would
rely to a much greater degree on chemical instead of mechanical
recycling and would return material into the value chain further
upstream as feedstock or monomer.
Both scenarios have distinct characteristics and requirements
(Figure 3). Material companies will need to consider both scenarios
when assessing the opportunities and risks of circular solutions for
their product value chains.
What forces will shape and drive the change?
Aluminium recycling is a useful example of a circular ecosystem for
materials that are highly engineered and processed. To understand
how this process evolved, consider the four forces that have transformed
the materials sector. In his book More from Less, research scientist
Andrew McAfee chronicles how these forces have influenced the
production and consumption of many material value chains in the
US and the UK and led to widespread dematerialisation. Although
plastics recycling hasn’t directly contributed to dematerialisation,
these same four forces are likely to define the shape and rate of
development of a circular chain:
Economic value. In the case of aluminium, the recycled material
was sufficiently valued (relative to virgin feedstock) to attract
funding for the required infrastructure and technology. Capital
markets and companies will continue to be the most effective,
efficient and reliable sources of funding for driving the change.
However, plastics require a significant investment for both
mechanical and chemical recycling as well as the associated logistics
infrastructure for collection and sorting. In addition, plastics require
a substantial amount of coordination of incentives along the value
chain from consumers to collectors to sorters to enable the recycled
product to continue to flow.
Technological progress. Infrared and magnetic technologies to
remove plastic and steel were important capabilities for aluminium
recycling, and the widespread availability of these technologies
certainly accelerated adoption of the process. For plastics, the
advancement of mechanical technology (such as sorting, separation,
cleaning and impurity extraction) and chemical technology (such
as depolymerisation, including enzymatic, cracking and pyrolysis)
will govern the rate and the extent of change.
Public awareness and behaviours. A vital part of consumers
choosing to recycle aluminium was their awareness of its recyclability
and their willingness to separate cans from the rest of their trash.
As a result, 60% to 90% of aluminium cans, depending on the
country, are recovered and recycled. 4 Inspired by the images of
waste, many consumers are now calling for less plastic waste,
but the public must broadly change their behaviours and overcome
their love of disposability. The process of “denormalising” plastic
waste will take time and coordinated effort, but it has begun.
Responsive government. To encourage aluminium recycling,
many regional governments in the US and Europe created a beverage
can deposit, which consumers pay at the point of purchase and
then redeem when they return the can to a designated facility. For
plastics, governments have pushed recycling labelling standards to
REFERENCES
1 Nexant and Grand View Research
Article courtesy of Kearney Consulting. Authors: Andy Walberer, Kish Khemani, partners. Figures 1, 2 and 3 supplied by Kearney Analysis.
distinguish different types of plastics to facilitate separation and
sorting, and some municipal governments have banned single-use
plastic bags. Although these initial responses are helpful, standards
and additional investments are needed, including for recycled
content levels and recycling infrastructure.
What should chemical and consumer companies do?
Public pressure to limit plastic waste is accelerating, creating significant
brand risk for consumer companies and reputational and revenue risk
for chemical companies from demand destruction in high-volume
applications. Individually, companies have already started to respond
with specific initiatives focused on innovation in the chemical recycling
space and efforts to make plastics more recyclable without increasing
the burden on consumers. Collectively, companies have started to
form collaborative alliances and efforts, both industry-wide and with
other players in the value chain to improve collection, sorting, and
recyclate production rates.
Companies that want to take a fresh look can begin by identifying
the opportunities and risks that are emerging in their product value
chains and then considering the scenarios and forces described above
to develop a strategy for how to respond. We suggest action in the
following three areas:
- Understand the risks, exposure and opportunities in their product
value chains and calculate the potential economic impact, both
the upside and the downside, including the reputational impact.
- Monitor the four forces that drive change in the materials sector
and use scenario planning to prepare for either the small-loop
or the large-loop future.
- Collaborate with industry peers, value-chain partners, regulatorysetting
bodies and nongovernmental organisations to ensure
that solutions are scalable and economical, standards can be
established, and public outreach and education are addressed.
Exactly which models will win is uncertain, but what is certain is that
now is the time to proactively prepare and respond.
2 Working Party on Resource Productivity and Waste, Organisation for Economic Co-operation and Development Environment Policy Committee, 26 November 2018
3 Recycling International; Resource Recycling, Inc.
4 International Aluminium Institute via international-aluminium.org
44 45

WATER
EU DIRECTIVE ON ESG
water will impact
Links with European supply chains and financing mean that
South African firms should expect mandatory reporting on their
environmental, social and governance impacts, of which water
stewardship is a key consideration.
BY SRK CONSULTING
South African firms
Fiona Sutton, Principal Scientist,
SRK Consulting
and sustainability strategy, giving details on its sustainability
performance. These reports need to reflect clearly defined leadership
and responsibilities within the company as well as the consistency,
reliability and accuracy of information presented. There is a demand
for increased transparency and for information to be readily available
about supply chain practices and their impacts.
WATER STEWARDSHIP IN ESG
Sutton emphasises that water stewardship is playing an increasing
role in water-related ESG reporting, and points out that the
use of global best practice tools like the International Water
Stewardship Standard from the Alliance for Water Stewardship
(AWS) can support a company in its ESG reporting. “The AWS
Standard is a site-to-catchment scale standard for sites with
major water-using activities to understand their facilities’
water use and impacts,” she says. “It also assists companies in
working collaboratively and transparently with local stakeholders
for sustainable water management within a wider catchment
context.” The AWS Standard is intended to deliver positive outcomes
in the context of a catchment, is built around five steps: gather
and understand; commit and plan; implement; evaluate as well
as communicate and disclose.
FIVE STEPS
The five steps of the AWS Standard directly address water stewardship
but also assist with water-related ESG reporting requirements.
Step 1 requires the site to generate a multitude of reference and
baseline values. These values provide insight into the site and its
context in the catchment, as well as other catchments in relation
to the site’s indirect water use. The site and catchment specific
reference and baseline values data are gathered to set achievable
actions, agreed responsibilities, timeframes and resources – as well
as to guide other initiatives for sustainable water-related impacts.
While this stage is time-consuming, Sutton attests that it is
the most important stage, as it ensures that the site’s future
decisions are based on accurate information about water use
within the catchments. Furthermore, the AWS Standard requires
an assessment of water-related impacts throughout the value
chain, from sourcing and manufacturing processes to the delivery
of services and the use and disposal of products.
Credentialled specialists
“SRK has AWS-credentialled specialists who can support a site
in sourcing the reference and baseline values, depending on
WATER
availability,” says Sutton. “SRK works alongside the site’s own team,
to develop a better understanding of the site’s water context, risks
and mechanisms to manage identified water risks.”
Step 2 requires the site to develop a Water Stewardship Plan (WSP)
which includes targets which will lead to improved performance
related to the five outcomes. These are improved water governance,
sustainable water balance, good water quality, healthy status of
important water-related areas and access to water, sanitation and
hygiene (WASH) for all.
“Each target helps to address shared water challenges and the
WSP is continually updated to ensured continued improvement,”
she adds. “The WSP needs to clarify the mission, vision and goals
of the organisation as it pursues good water stewardship, as well
as the people who are responsible.” She notes that it must include
the process for reporting to regulatory agencies, the ways that the
plan will be measured and monitored, the actions and timeframes
to achieve it, as well as the financial resources to be committed.
Beyond on-site concerns
“A WSP must go beyond on-site water management and regulatory
compliance – to become a catchment-focused agent of positive change,”
she says. “The primary purpose of the WSP is to provide a route that
the organisation will follow as part of its water stewardship journey.”
SRK’s specialists can assist a site in the development of their
WSP, in which they incorporate Steps 3 and 4. Step 3 focuses on
demonstrating that the WSP is being implemented effectively
and details the proposed commitment of the site to the continual
improvement. Step 4 allows for the evaluation of the performance
and progress of the WSP, by assessing its contributions and benefits
to water management, as well as how risk exposure has changed
for the site and its stakeholders. “Evaluation forms the basis of
determining which new actions or approaches are required, while
supporting the principle of continuous improvement,” says Sutton.
Finally, Step 5 provides the communication and disclosure
opportunities for the business to declare its water stewardship
journey to staff as well as to its clients, investors and external
stakeholders. This step also links closely with Step 4, providing
opportunities to communicate the changes and improvements
being made to the business’ water stewardship approach.
“When conducted correctly, a WSP is a powerful input for waterrelated
ESG reporting,” concludes Sutton.
NOT YET MANDATORY
Transparency is about accurate and balanced disclosure; it’s about
testing, learning and changing the plan to adapt to the many variables,
while continually improving. It’s also about acknowledging and
addressing sub-optimal outcomes openly and transparently, and
sharing the lessons learned. While ESG reporting is not yet mandatory
in South Africa, the JSE’s Sustainability Disclosure Guidance is indicative
of a move towards such reporting. This guidance aims to assist South
African companies in navigating the international landscape of
reporting standards.
The European Union’s (EU) Corporate Sustainability Reporting
Directive (CSRD), in effect since 5 January 2023, requires EU
businesses, including qualifying EU subsidiaries of non-EU
companies, to report on the environmental and social impact
of their business activities – as well as on the business impact
of their ESG efforts and initiatives. According to Fiona Sutton,
principal scientist at SRK Consulting, companies subject to the
CSRD will have to report according to European Sustainability
Reporting Standards (ESRS).
“With the interconnectedness of South African companies
to global markets through commodities and capital markets,
companies should expect that ESG reporting will soon be
mandatory and should prepare for this,” says Sutton. “South
African suppliers and customers of scoped-in EU companies may
have expanded data and reporting demands from EU companies
for them to report required ESG information in their value chain.”
STRATEGISING FOR ESG RISK
Investors and stakeholders already expect companies to incorporate
ESG risks and opportunities into their business strategies, operating
models and processes, as well as products and services. “ESG
reporting enables a company to be more transparent about the
risks and opportunities it faces,” she explains. “It is a communication
tool that plays an important role in convincing sceptical observers
that the company’s actions are sincere.”
ESG reporting expresses a company’s integrated corporate
46 47

Infographic
While concerns exist about a lack of human touch, insufficient training
and cybersecurity risks, each challenge that arises presents an even
bigger opportunity for companies.
“AI will create new challenges around data security and ownership,
and questions remain over who owns the outputs. This is an opportunity
for companies to reduce risks by harnessing AI’s predictive capabilities
to boost cyber security,” says Marx.
The renewables industry is at the
cutting edge of AI.
SALARIES AND GLOBAL MOBILITY
Salaries in the renewables sector have rebounded above pre-pandemic
figures, with 51% of professionals reporting a pay increase – a notable
rise from 47% last year. This upward trajectory in compensation aligns
with the accelerating clean energy transition. Moreover, amid the global
push for decarbonisation, companies are increasingly offering overseas
job transfers, now at 58% compared to 52% in 2022.
Continuing a trend identified last year, the report reveals an intense
competition for talent in renewables. Approximately 32% of workers
have been headhunted six or more times, with many receiving offers
from outside the industry. This is reciprocated by 88% of workers
considering job switches, driven by career progression opportunities
and broader industry interest.
AI and the the Future Future of Skills of in Skills the Energy Industry
SKILLS
in Renewable Energy
Personal impact of AI in
the next two years:
51%
of non-hiring
professionals report
a pay rise this year.
78%
say productivity
will increase.
62%
say job satisfaction
will increase.
62%
say career and progression
opportunities will increase.
Top four skills
that are in demand
1
2
3
4
Programming /
software engineering
IT
Machine learning
Cyber security
79%
are open to
relocating for work,
with Europe the top
choice.
32%
of respondents use
artificial intelligence
in their role.
AI and the future of skills in renewable energy.
Top three uses of AI in
the renewables sector
Top four skills
that may be developed
Machine learning
Data science
IT
Automated workflow
and workplace
collaboration tools.
Data analytics to
optimise energy
production.
Customer
engagement.
Critical thinking /
problem solving
GETI, the world’s largest energy recruitment and employment trends report, this year surveyed 11,800 energy professionals and hiring managers in 149 countries.
1
2
3
4
GETI
Renewables professionals
AHEAD OF THE CURVE
on
AI ADOPTION
The recently released eighth annual Global Energy Talent Index, the world’s most established
and comprehensive energy workforce trends report, highlights that the renewable energy
industry is ahead of the curve on AI adoption, highly optimistic for the future and conscious
of developing AI-related skills.
POWER SECTOR
Despite apparent satisfaction with salaries and steady appetite for regional relocation, professionals
are not completely rooted in place: 91% are open to moving roles, the highest of the survey’s
sectors. Furthermore, while most prefer to stay within the power sector (58%), 44% are open
to going elsewhere within the energy industry, and 23% would consider roles in a new sector
altogether. As was the case last year, renewable energy is the sector of choice (cited by 54%),
followed by oil and gas (36%). Beyond energy, 35% would move to the technology sector.
Manufacturing is becoming steadily more attractive, having been selected by 11% in 2022,
16% in 2023 and now 19% in 2024.
The reasons for moving roles mimic those for moving regions: career progression is the
primary motivator (chosen by 27%), though by much less than last year (38%). Interest in the
wider industry is second (15%), and the chance to work with innovative technology takes third
place (12%), eclipsing ESG concerns which plummeted to seventh place this year.
Commenting on the findings, Wenche Kjølås, independent director at several companies, says: “A
picture of fragile stability. Salary growth is good but not spectacular, and though career progression
remains a top concern, professionals seem less convinced they need to make a move than last year
to continue their career trajectory. Yet, openness to moving roles and regions is high, indicating a
sector where professionals are settled but wouldn’t take much prompting to reconsider. As a wellestablished
industry, power professionals are self-assured and have much to offer other sectors.”
Hiring managers should take note: 81% of employees have been approached for another role in
the last year, while over a third (34%) have been approached six times or more. A significant minority
(19%) have received 11 or more approaches, with over one-third of respondents saying more than
half of these approaches came from beyond the power sector.
According to the report, produced by Airswift, 32% of
renewables professionals already use AI – somewhat ahead
of the industry average of 27%. A further 13% are expecting
to adopt AI within six months. Most (87%) renewable energy
professionals express optimism about the future impact of AI,
with many anticipating an uplift in their personal productivity
(78%), improved career progression opportunities (62%) and
increased salaries (49%).
Nearly all respondents to the Global Energy Talent Index (GETI) 2024
report say AI will increase demand for skills, with two-thirds (66%) of
renewables professionals expecting AI to increase pressure on them
personally to acquire new skills. They see the highest demand in technical
areas like IT, programming, software engineering, machine learning
and cybersecurity. When exploring the relationship between potential
skills development opportunities and perceived future demand, initial
findings highlight robotics and cyber security as areas the industry may
need to proactively develop to shore up skills.
The report also found there is a need for soft skills like critical
thinking, problem-solving and creative thinking, which are expected
to increase, highlighting the unique human capabilities that
complement AI technologies.
Janette Marx, CEO of Airswift, says, “By its nature, the renewables
industry is at the cutting edge of AI with many companies exploring
use cases and improving performance that will inspire others to take
the leap. In this fast-paced sector, professionals are unafraid to vote
with their feet to unlock AI-related career progression, job satisfaction
and work-life balance; renewables companies will need to stay on the
front foot with AI to retain talent. In parallel, those professionals who
spend time learning new skills stand to improve their career prospects
by differentiating themselves from other candidates.”
READ REPORT
THOUGHT [ECO]NOMY
The Global Energy
Talent Index Report
2024
greeneconomy/report recycle
THE GLOBAL ENERGY TALENT INDEX 2024 | GETI | Airswift | energyjobline | [2023]
The Global Energy Talent Index (GETI) was launched in 2017 to chart emerging trends across the
global energy workforce. GETI has since drawn on insights from thousands of professionals to create
a comprehensive map of a changing energy landscape.
This year’s report explores how the rise of artificial intelligence (AI) is reshaping everything from job roles
to skills in demand and whether workplace policies and training priorities are keeping up. GETI tracks the
extent of AI adoption, popularity and policy awareness across the industry and anticipates the major risks
and opportunities it presents. This report surveys an industry on the cusp of a technological revolution.
Building on the success of the seven previous volumes, GETI 2024 draws on the views of almost 12 000
energy professionals in 149 different countries. The 55-question survey was open for nine weeks and closed
at the end of October 2023. It aims to provide insights that will help hiring managers and professionals alike
to better understand how AI is changing jobs, and what skills will be most prized in the future.
48 49

SKILLS
EWSETA
SPECIALISED
TRAINING
introduces
for renewable energy
and water management
The Energy and Water Sector Education and Training Authority
(EWSETA) is developing and implementing specialised renewable
energy and water resource management training programmes, in a
bid to align with industry needs and technological advancements.
BY EWSETA
The EWSETA CEO, Mpho Mookapele, engaged with media on
the back of growing research that macroeconomic trends
and technological advancements will continue to disrupt
labour markets worldwide.
The International Energy Agency (IEA) last year revealed that
4.7-million more people were employed in clean energy globally in
2022, than in 2019. Concerns around the “green skills gap”, as it has
become known, have been echoed by a recent report from LinkedIn
which shows that only one in eight employees globally possess one
or more green skills.
“We don’t want to leave South Africa’s young people and workforce
behind; it is important for businesses to share their skills plans
with us, so that we can capacitate learners accordingly. Together
with government and private entities we are collaborating to
fast-track skills development initiatives that seek to upskill and reskill
employees to meet the workforce demands of the changing energy
and water sectors,” says Mookapele.
In the rapidly evolving energy sector, EWSETA currently develops
qualifications that will respond to the gaps in the curriculum. The
skills programmes that will be introduced include wind turbine
operation, biogas installation, microgrid and battery energy storage
operation, solar PV manufacture, design and installation.
Among the courses in the pipeline are water works management,
solar panel installation, wind turbine maintenance, and other green
energy solutions. Mookapele says, “When the sector needs certain
skills, we are committed to working together with industry to
build these capabilities. Ultimately, we exist to ensure industries
are successful. As such we aim to move with agility to ensure that
these programmes and qualifications are concluded and submitted
for registration with the Quality Council for Trades and Occupations
(QCTO) and the South African Qualifications Authority (SAQA).”
Due to the boom in the photovoltaic sector, because of more
people going solar, the SETA is also currently working with industry
to ensure that minimum skills requirements are mandated for
the PV Green Card training. The South African PV Green Card is
EWSETA CEO, Mpho Mookapele.
a quality assurance standard for solar PV installers, and it is
hoped that these minimum requirements will mitigate against
substandard installations.
The EWSETA is looking for partners that will enable retro-fitting
technical workshops for Technical and Vocational Education and
Training (TVET) colleges, to ensure that they are responding to the
tech-developments in the industry.
In the water sector, the EWSETA partners with water boards,
municipalities and private industries to develop water-related
qualifications that aim to address the challenges around clean
drinking water and wastewater treatment plants.
In response to the evolving water landscape, a Water Works
Management National Qualifications Framework 6 (NQF) has
been registered. EWSETA is in the process of developing a
water resource management qualification at NQF level 8 and
a skills programme for water conservation practitioners.
Advances in water treatment processes will necessitate the
development of qualifications that will respond to the future
treatment landscape. These future technologies include biological
water treatment and smart water grids, among others.
“As the world transitions to net zero, the traditional career
landscape is changing, and it is up to all of us to future-proof our
workforce. EWSETA is taking strides to harness the opportunities
that these exciting changes present,” concludes Mookapele.
EWSETA
EWSETA is a skills development authority serving the energy
and water sectors. It is one of 21 Sector Education and Training
Authorities (SETAs) established in South Africa in terms of the
Skills Development Act of 1998 – amended. It plays a crucial
function in ensuring that the National Skills and Development
Strategy is executed within the energy and water sectors.
51

SKILLS
LEADING TRANSFORMATION
in the energy sector
Do you have what it takes to drive transformation in the energy sector? Addressing this
challenge is essential for achieving a sustainable future. Paul Bessems, a seasoned strategist
in sustainable leadership and digital transformation, guides organisations through this shift,
ensuring they remain focused on environmental objectives while adapting to new realities.
Paul Bessems has spent decades developing methods like the
Digital Assembly Line, the Community Model Canvas and the
Double-Stack Strategy. He focuses on practical solutions,
combining his knowledge of technology and sustainability to help
organisations with their sustainability strategies. His approach
is all about simplifying complicated concepts and making them
accessible and actionable for businesses aiming to transition into
greener practices. He is also a tutor at Business School Netherlands
and facilitates workshops on sustainable leadership.
As someone deeply involved in shaping the future of work and
energy, Bessems believes in straightforward, impactful change.
This conversation explores his views on integrating sustainable
practices with digital advances and how effective leadership can
navigate the ongoing shifts in the energy industry.
How do sustainability and digital transformation come together
to solve current energy issues?
With energy transformation, we are fundamentally altering our
approach to energy management and consumption. Through
my initiatives like the Digital Assembly Line, we aim to enhance
efficiency while embedding sustainability deeply within operations.
Integrating new technologies such as IoT, blockchain, smart contacts
and AI helps us not only improve resource utilisation but also
ensures alignment with broader environmental goals, propelling
the energy sector towards a more sustainable future.
What should be the focus for leaders within the energy sector
to ensure effective governance?
Leadership in this sector must transcend short-term targets, aiming
instead for a future where ecological and social responsibilities
are prioritised alongside profitability. This is where the essence of
change leadership becomes critical. It’s about preparing for future
shifts, recognising the broader impacts of energy decisions and
guiding teams toward more sustainable practices through a wellunderstood,
shared vision.
Considering change leadership, how should companies approach
the integration of new energy policies and technologies?
Successful integration starts with a clear understanding and
commitment at all organisational levels. Leaders need to champion
the adoption of new policies and technologies by creating an
inclusive environment where everyone feels part of the journey.
This involves clear communication, continuous education and
feedback mechanisms that allow for adaptability. Encouraging a
culture of innovation and risk-taking is essential, as is recognising
and celebrating progress towards greener energy solutions.
In an ever-changing environment, continuous learning is
inevitable. How does a practical learning approach assist future
leaders in navigating complex issues like energy transformation?
Real-world application is critical, particularly for challenges as
multifaceted as energy transformation. By engaging directly with
52
practical problems and experimenting with solutions, leaders
gain a deeper understanding and are better prepared to make
strategic decisions. This hands-on experience fosters a mindset
of continuous improvement and adaptability, which is essential
in the fast-evolving energy landscape.
With the pace of technological advances, what are the primary
challenges for organisations transitioning within the energy sector?
The primary challenge is navigating the shift from traditional
methods to innovative, sustainable solutions without disrupting
ongoing operations. Effective change leadership is indispensable
here, as it ensures the seamless integration of new more data-driven
operating models and technologies while maintaining stability.
Leaders must manage this delicate balance through strategic
planning, engagement and clear communication to ensure the
entire organisation moves together towards a sustainable future.
What final piece of advice do you have for those navigating
the energy transition?
My key advice is to wholeheartedly embrace change leadership
principles be adaptable, foster collaboration, and commit to
ongoing learning. The energy transition is a collective endeavour;
it thrives on shared knowledge and unified efforts. Leaders
should cultivate an environment that encourages innovation
and embraces the challenges and opportunities presented by
the energy transformation.
The importance of change leadership in driving the energy sector
towards sustainability is clear. Bessems’ strategies provide a clear
pathway for organisations to follow, highlighting the need for
adaptability, collaboration and a forward-thinking approach in
tackling the sector’s complex challenges.
Paul Bessems, Chairman, Weconomics Foundation, CEO, Weconet
Technologies BV and BSN Tutor.
This MBA programme is a
catalyst for both personal and
organisational growth – it was
a game-changer for me and the
teams I lead.
- Gerard Mohamed, Managing Director
at NanoTech Petroleum PTY Ltd
Watch Video
Website: www.bsn.eu
Address: Herenstraat 25, 4116 BK Buren, The Netherlands
Telephone: +31 (0)344-579054 +27 (0)82 688 7399 (WhatsApp)
Email: international@bsn.eu
ARE YOU READY
TO LEAD THE
CHANGE?
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Netherlands’ transformative MBA
programme. Designed for
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At BSN, we believe in learning
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advancing in your career; it’s about
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Join a vibrant community of
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worldwide and embark on a
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a leader who makes a difference.

EMPLOYMENT
Change the game.
Create a more sustainable
future through youth jobs.
Sponsor critical youth jobs.
Empower communities.
Create lasting impact.
Join the movement of over 1,680 trailblazing businesses
changing the game by integrating YES into their ESG/SDG
strategies.
Say YES today and gain B-BBEE levels.
To find out more contact
corporatesupport@yes4youth.co.za
YES 20240307GE
EMPOWERING TOMORROW’S
WORKFORCE Integrating YES into ESG strategies
In an era defined by rapidly evolving social, environmental and economic challenges, sustainable
development has become more than just a buzzword, it is a guiding principle shaping the
future of work and society at large.
BY YOUTH EMPLOYMENT SERVICE
Among the myriad initiatives aimed at fostering sustainability,
the Youth Employment Service (YES) stands out as a beacon of
hope, bridging the gap between young talent and meaningful
employment opportunities. Through navigating the complexities
of a changing world, integrating YES into environmental, social
and governance (ESG) strategies emerges not only as a moral
imperative but also as a strategic necessity for building a more
resilient and inclusive workforce.
At its core, ESG embodies a holistic approach to business and
societal progress, emphasising the interconnectedness of
environmental stewardship, social equity and transparent
governance. While traditionally associated with corporate
sustainability strategies, the relevance of ESG extends far beyond
boardrooms, permeating various facets of socio-economic
development. Youth employment, in particular, presents a
compelling arena for ESG integration, as it intersects with issues
ranging from climate action and community engagement to ethical
labour practices.
Understanding the crucial role of ESG and SDGs
ESG strategies have become more and more important for
investors and customers alike. The advent of ESG investment
indices such as FTSE Russell, RobecoSAM, MSCI and others has
shown that those buying both stocks and/or products care about
a business’ external environmental and socio-economic impact, as
well as internal governance structures that affect people, planet
and processes.
YES can be seamlessly integrated into a business’ ESG and
Sustainable Development Goal (SDG) strategies and impact
the areas that mean the most to your business by creating critical
youth jobs. If we can build and maintain this, our youth can inherit
a South Africa that we can be proud of and that works for all.
The 17 SDGs have been adopted globally by both countries
and companies, recognising that collaboration and partnerships
are indispensable for their achievement. What sets the SDGs apart
is their holistic approach, acknowledging the interconnectedness
between goals. Reducing poverty means improving education and
must also go hand-in-hand with other strategies such as improving
climate change and working to preserve our oceans and forestry.
Driving corporate ESG alignment and social responsibility
A company’s sustainability and ethical impact can be measured
by the degree to which they align with these goals as well as
the ESG criteria used to assess a company’s practices related
to promoting social mobility of youth (especially those from
historically disadvantaged communities), human rights, labour
standards, community involvement, customer satisfaction and
overall impact on society.
YES has a proven track record of creating meaningful, measurable
impact for country company and youth. Since inception, over
135 913 work experiences have already been created for youth,
injecting R7.4-billion back into the economy directly through youth
wallets, with no government funding.
As the largest private sector led job creation initiative in South
Africa, YES has a direct impact on SDG 8: “Promote sustained,
inclusive and sustainable economic growth, full and productive
employment and decent work for all”. Working towards this goal
will mitigate poverty and hunger, and improve living standards. By
working towards transformation and socioeconomic development,
YES drives economic and gender equality, support for quality
education, innovation and entrepreneurship.
What is YES?
The Youth Employment Service (YES) is the highest impact private
sector youth employment programme in South Africa, affecting
broad-based change across sectors, provinces and the country.
As a private sector-led initiative, YES addresses the country’s youth
unemployment crisis by empowering businesses to create jobs for
our unemployed youth. We’re youth-focused and business-led.
Integrating with YES for improved impact
The YES turnkey solution works with 26 YES-vetted host partners
across South Africa to place youth. If a corporate cannot place
youth in their own organisation, they have the option to place
youth with our host partners. The YES host partners are non-profit
organisations working in high-impact sector communities, which
means youth do not have to travel far for work and they can play
an important part in building their own communities.
Historically, host partners have been focused on high-impact
sectors like healthcare and education, but YES is also incorporating
future-facing sectors with high absorption. Many YES jobs are being
created in sunrise industries that position South Africa for the future
by creating sustainable jobs at scale. These are industries that will
help South Africa leapfrog up the world rankings of key sectors
such as digital and technology, tourism, global business services,
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Creating youth jobs in sectors that build economic, social and
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In exchange for sponsoring critical youth jobs, businesses can
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Join the movement and co-create a sustainable future that works.
Find out more at yes4youth.co.za.
55

SKILLS
Lead Sponsor
CHIETA
plans to GROW THE
HYDROGEN ECONOMY
South Africans will have opportunities for specialised training that
will equip them with skills for the changing world of work, the Fourth
Industrial Revolution and the rapidly growing hydrogen economy.
BY CHIETA
by offering specialised skills
Yershen Pillay, CEO, CHIETA.
11 April 2024 | Country Club Johannesburg, Auckland Park & Online
Resources 4 Africa is pleased to announce the 4th edition of its annual Hydrogen Economy Discussion,
which brings together all the key players, including government, mining companies, OEMs, investors, industry
associations, hydrogen project developers, equipment suppliers, infrastructure providers and independent
advisers, to debate the potential of the green hydrogen economy and its implications and opportunities for Africa.
This year discussions will focus on:
The Chemical Industries Training and Education Authority
(CHIETA) will be registering new qualifications on green
hydrogen and offering specialised skills programmes
relevant to growing the green hydrogen economy. This will
include short hydrogen safety, storage and project management
skills programmes. Existing qualifications will be augmented
with specialised modules for training more gas, electrochemical
and electrolysis engineers,” says Yershen Pillay, CEO, CHIETA.
“Africa can establish itself as a key supplier of green hydrogen
and its derivatives, with the specific export products directly
linked to geographical locations and existing industries (eg Sasol
in South Africa). For this to take place, as CHIETA, we are ready to
roll out the relevant skills required to ensure the country takes
its place in driving the skills critical for the success of the green
economy,” Pillay says.
South Africa can produce and export green energy, however,
there has been minimal movement until now on preparing
individuals with the tools to take part in the sector.
Citing the heavy demand for digital skills, Pillay said the
chemicals sector, as an example, would require experts in petroleum
and base chemicals proficient as information security analysts,
data analysts and scientists, digital transformation specialists,
big data specialists, lab analysers/technologists, sample takers,
plant operators and material handlers. Therefore, the traditional
roles of machine operator, quality assessor, quality inspector
and lab analyst could make way for new skills and competencies,
resulting in redundancies in mostly manual labour jobs.
Reskilling and preparing for jobs of the future via CHIETA is pivotal
to ensuring people take up opportunities brought on by change.
Regarding the glass sub-sector as another example, Pillay
forecasts new and emerging occupations, with roles for environmental
specialists, process specialists, and e-learning developers, leaving
inspection and package roles obsolete.
“CHIETA’s new initiatives on green hydrogen have positioned it
as an innovation leader in the sector, a reason behind the drive to
push skills development”, says Pillay, in furthering the transition
towards sustainable development in the chemical industry. This is
crucial for addressing environmental concerns and offers various
economic, social and competitive advantages.
To this end, CHIETA is implementing comprehensive strategies
integrating skill development, green technology and rural
development strategies to achieve sustainable growth. These
strategies encourage rural development, utilisation of the potential
of green hydrogen and implementation of blended learning
initiatives, which can result in positive changes that benefit
the industry.
“CHIETA continues to support technological advancements and
long-term growth in the chemicals sector through funding skill
development initiatives,” he adds.
Explaining the critical research findings from the CHIETA study,
Pillay reveals that there are mixed perceptions on the state
of readiness for South Africa to adopt green hydrogen. Three
significant concerns around the adoption of green hydrogen in
South Africa: the technology required, the skills needed and the
economic viability of hydrogen as an energy source.
Unpacking emerging job opportunities that could become
available in green hydrogen, he provided a list of roles, including
hydrogen fuel cell technicians, hydrogen power plant installation,
operation and management, policy analysts, pipefitters, hydrogen
sales and marketing consultants, hydrogen fuel transporters,
hydrogen vehicle electricians, power system electricians, storage
specialists and hydrogen systems safety analysts, among others.
There is a key demand for hydrogen worldwide, hence the need
to ensure that the skills pipeline is urgently strengthened.
As a trusted partner in skills development and training for
the chemical sector, CHIETA funds the industry for the various
occupational programmes as well as certain TVET sector and
higher education programmes. In this regard, CHIETA is guided
by its well-researched Sector Skills Plan that documents the
hard-to-fill skills and positions within the sector.
• The global outlook for green hydrogen supply and demand
• The reality of green hydrogen in South Africa and further afield
• Local, regional, continental and international collaboration initiatives
• Meeting the challenges of hydrogen production, distribution and storage
• Green hydrogen as a demand driver for PGMs
• Investment opportunities in green hydrogen
• And much more….
Lead Sponsor
Hydrogen Economy Discussion 2024 is proudly sponsored by:
Mining Industry Partner
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56
The organisers retain the right to amend the programme, content, timings and speakers. © Resources For Africa Investment Conferences (PTY) Limited

ENERGY
ENERGY
POWERING PROGRESS
R300-billion green hydrogen revolution
A convergence of interests between Japan and Southern Africa presents a unique opportunity
for economic expansion by seizing the initiative to play a prominent role in defining the
global hydrogen economy.
A hydrogen economy may fuel development in SA
Some in Southern Africa’s energy sector, including Namibia and South Africa, are exploring
the potential benefits of embracing a hydrogen economy, primarily driven by green hydrogen.
BY TSHILIDZI MARWALA
Wang et al., doi: 10.1038/s41467-023-35973-8
BY SANEDI
The inability to beneficiate its natural resources has hamstrung
Africa’s development for decades South Africa is determined
to not err again in its transition to a new energy era.
“It is an opportunity we cannot afford to waste,” says the head of
the Department of Science and Innovation’s (DSI) energy secretariat
at the South African National Energy Development Institute
(SANEDI), Professor Sampson Mamphweli, who is instrumental in
shaping a partnership between the South African and Japanese
governments that aims to advance the application of hydrogen
technology worldwide. Hydrogen-related engagements between
the countries started four years ago when Japan first expressed an
interest in buying green hydrogen from South Africa. A memorandum
of cooperation was signed between South Africa and Japan in
November 2023 when a South African delegation led by Minister
Blade Nzimande travelled to Japan. Since then, much progress has
been made in implementing the provisions of the agreement, with
local companies Hive Energy and Sasol having signed agreements
with Japanese investors.
At the University of Cape Town, researchers presented the
technologies they have developed to the Japanese delegation,
focusing on membrane electrode assemblies (MEAs) that Japanese
companies want to use at an industrial scale. Manufactured using
The proton exchange membrane fuel cell domain generated by Wang
et al. a) 2D and b) 3D rendering of the segmented membrane electrode
assembly with artificially overlayed flow channels.
one of the PGMs available in South Africa, MEAs are at the heart
of hydrogen fuel cell and electrolyser applications.
South Africa’s hydrogen society roadmap was approved by
Cabinet in 2021. It consolidated the different strategies related
to the hydrogen economy that had been developed by various
government departments. Under the auspices of the Department of
Science and Technology, the roadmap identified catalytic projects
crucial to realising the country’s hydrogen ambitions.
One such project entails hydrogen corridors for hydrogen-fuelled
trucks carrying freight from Limpopo to Gauteng and from Gauteng
to KwaZulu-Natal, with support infrastructure such as hydrogenproduction
hubs and science centres.
Hydrogen is a clean and renewable
energy source, but it requires plenty
of energy to produce.
Another is the Boegoebaai Green Hydrogen Special Economic
Zone in the Northern Cape in which Sasol will be an anchor
development partner, along with the Northern Cape Development
Agency, Transnet Ports Authority and the Port of Rotterdam in the
Netherlands. The project involves the development of a deep-water
port and associated infrastructure for the export of green hydrogen
to Europe. The CSIR is currently conducting the feasibility studies.
“Collaboration with Japan is invaluable in helping us understand
what is required to stimulate the hydrogen economy,” says Prof
Mamphweli. “Our goal is to develop a value chain that starts with
the mining of PGMs and ends with established industries that
supply technology and products for local use and export. We want
to build the hydrogen sector on local beneficiation of our PGMs.”
Green hydrogen production will also alleviate South Africa’s gridenergy
shortage. The energy needed to run hydrogen systems are
mostly consumed at night, leaving it available during the day to
supplement grid electricity. The Nelson Mandela Bay Municipality
has entered into an agreement with Hive Energy to buy some of
its green energy.
Another catalytic project is where Eskom is working with the DSI
and the SANEDI energy secretariat to develop a green hydrogen
facility at its Rosherville research centre in Gauteng.
“The multibillion-rand foreign direct investment – as much as
R300-billion in the next three to five years – will not only transform
the green energy sector, but our country in its entirety in ways
we might not even fully grasp yet,” concludes Prof Mamphweli.
Article courtesy Daily Maverick
Green hydrogen can be produced by electrolysing water into
hydrogen and oxygen using energy from green sources like
the sun, water and wind. When hydrogen fuel is burned,
it turns into water instead of carbon dioxide, as happens when
fossil fuel is burned. Of value in the move towards a sustainable
energy system, green hydrogen can be used in hard-to-decarbonise
areas like heavy industry and transportation.
The abundant sunlight and Platinum Group Metals (PGMs) in
Southern Africa necessary for producing green hydrogen offer the
region a comparative economic advantage. Most of South Africa
has more than 2 500 hours of sunshine per year. The average daily
amount of sunlight is between 4.56.5kWh/m 2 and 6.5kWh/m 2 . The
average yearly 24-hour solar radiation in South Africa is 220W/m 2 ,
which is higher than in many parts of the US (about150 W/m 2 )
and the EU (about 100W/m 2 ).
Catalysts speed up the process at the anode, where water is
oxidised to make oxygen and protons, and at the cathode, where
protons make hydrogen. Anode catalysts are usually made of
iridium or ruthenium oxide, while cathode catalysts are made of
platinum, which are all PGMs. South Africa produces between 80%
and 85% of the world’s iridium and 75% of the world’s platinum.
Namibia is also taking advantage of this opportunity, and in May
2023, it reached an agreement with Hyphen Hydrogen Energy on
a deal worth $10-billion.
Hydrogen is a flexible form of energy that can be used in many
ways. Fuel cells that run on hydrogen mix hydrogen and oxygen
to generate electricity, heat and water. These fuel cells are used
in cars, power plants, cell phones and computers. In an internal
combustion engine, hydrogen is burned like petrol, producing only
water vapour instead of carbon dioxide from petrol.
Hydrogen is an energy storage medium. Electrolysis, which is the
process that uses electricity to separate water into hydrogen and
oxygen, can use excess electricity from sources like hydropower
plants, the wind or the sun to generate hydrogen that can be
stored and used when there is a greater electricity demand or
when renewable energy sources are not producing as much energy.
Also, hydrogen can be used to provide heat and can be mixed
with natural gas to lower the amount of carbon dioxide released
by heating systems.
Hydrogen is a clean and renewable energy source, but it requires
plenty of energy to produce, especially when natural gas or other
fossil fuels are used. If produced from renewable energy sources,
hydrogen can be a stable energy source. Electrolysis has an efficiency
between 60% and 70%. But the efficiency of the process depends
on the technology and power source that is used.
Japan and Southern Africa have distinct socioeconomic and
geographical characteristics and have shown interest in the
hydrogen economy. Highly industrialised Japan has led the world
Hydrogen is an energy storage medium.
in developing and applying hydrogen technology. Several factors
influence Japan’s interest in hydrogen as a primary energy source.
Due to its limited domestic energy resources, Japan relies heavily on
imported fossil fuels. This reliance makes Japan vulnerable to global
energy market fluctuations. Additionally, Japan is committed to
reducing its greenhouse gas emissions to become carbon neutral
by 2050. The hydrogen economy offers a means to achieve its goals.
Japan’s plan for hydrogen includes producing, storing, transporting
and using it. Significant investments have been made in research
and development, infrastructure and public-private partnerships.
In addition, Japan has advanced fuel cell technology, with Toyota
leading the way in hydrogen fuel cell vehicles. The high cost of
producing hydrogen, especially green hydrogen through electrolysis,
is one of the biggest challenges. Another is that there is no good
network for distributing hydrogen.
As home to 70% of the world’s deposits of PGMs, South Africa holds
the keys to the development of large-scale hydrogen technology.
STRIKE WHILE THE IRON IS HOT
Given its abundant natural resources and developing economies,
Southern Africa presents different opportunities. Countries like
South Africa have already initiated research into the hydrogen
economy to resolve energy security, and stimulate economic growth.
Southern Africa could be a significant exporter of green hydrogen
because it has plenty of green energy sources and is strategically
located. However, the region faces significant obstacles. At this point,
there is a shortage of hydrogen production, storage and distribution
infrastructure. In addition, the Southern African region is hindered
by the high initial investment required for hydrogen technologies.
Although Japan and Southern Africa are at different phases of
economic development, these countries recognise the potential
of the hydrogen economy. Japan is well-positioned to dominate
hydrogen utilisation, especially in the transportation and residential
sectors, due to its advanced technology and industrial capacity.
Southern Africa has the potential to become a significant participant
in the production of green hydrogen due to the abundance of the
necessary resources. This convergence of interests presents a unique
opportunity for mutual cooperation and economic expansion.
Japan and Southern Africa can play a prominent role in defining
the global hydrogen economy through strategic cooperation and
a shared commitment to a sustainable future.
Professor Marwala is the seventh rector of the UN University and UN under Secretary-General.
58
59

ENERGY
SA’s largest private renewable energy plant gets
GO-AHEAD
Featuring three 110MW wind farms, the Impofu project marks a significant contribution to
South Africa’s renewable energy landscape, underscored by a landmark achievement – the
longest privately permitted powerline for any renewable energy project in South Africa.
ENERGY
2013, we’ve signed up 87 separate parcels of land for
the powerline and spent years negotiating with farmers
“Since
to lease land on which to build wind turbines. In total,
the wind farms’ 57 turbines will extend across 12 pieces of land
– with significant benefits for landowners and local agricultural
output,” says Jadon Schmidt, business development manager at
Red Cap Energy, and project manager of the Impofu project since
its inception.
Red Cap, a renewable energy developer, worked closely with
landowners to plot the position of each wind turbine, managing
expectations and leveraging local in-depth knowledge of the
landscape. “The whole process has been pretty smooth. I had a good
idea of where I didn’t want roadways to go, to make sure I didn’t end
up with unusable pieces of land. Besides that, I made suggestions
about where it would and wouldn’t work to put up the turbines, for
example, if an area was too wet or difficult to access,” says Vernon
Basson, owner of Vergaderingskraal, who has leased land for the
Impofu project.
The turbines will be constructed with locally made concrete towers.
Once complete, the development will supply 330MW of renewable
energy to Sasol South Africa’s Secunda site, where French-based
industrial gas supplier Air Liquide operates the largest oxygen
production site globally. In partnership with multinational renewable
energy corporation Enel Green Power, the R9-billion project was
subject to an extensive environmental impact assessment and public
engagement process.
Red Cap faced several challenges during development, including
the discovery of a Marshall Eagle nest in the area a year and a
half into the impact assessment process. Collaborating with local
environmental organisations, the placement of certain turbines had
Existing wind farm in Kouga, Eastern Cape.
to be reviewed to ensure the protection of the endangered bird. The
powerline was also rerouted and redesigned on numerous occasions,
to accommodate objections from a small portion of landowners.
“The relationships we’ve established with everyone involved have
been critical to the success of the project and overcoming obstacles.
We are so grateful to the landowners, who had to be incredibly
patient and flexible during the planning process. Then there’s the
host of environmental specialists, who helped us ensure that we’ve
made the best decisions for all animals and people who depend on
the land,” says Schmidt.
“The extra income from the turbines is going to help us keep our
livestock healthy and deal with drought during the summer. We
are going to use this opportunity to grow and expand our farming
interests,” says Xolile Peter Lamani, chairperson of the Reebok Rant
Worker’s Trust – which owns a dairy farm near Oyster Bay that has
leased land for the wind farm.
Red Cap Energy is a leading local developer in renewable energy,
with a depth of experience developing wind farms. To date, Red Cap
Energy has developed 191MW of installed wind power and has 1.5GW
of wind power fully permitted, with an additional 2GW in various
stages of development.
Jadon Schmidt, business development manager at Red Cap Energy, and
project manager of the Impofu project since its inception.
Vernon Basson, owner of Vergaderingskraal, who has leased land for the
Impofu project.
Impofu’s wind farm site.
Wind farm in Kouga, Eastern Cape.
FACT BOX
• Three 110MW Impofu wind farms in Kouga, Eastern Cape.
• Estimated total energy output of 1 200GW per hour.
• In total, the development will comprise 57 turbines.
• Blade length measured at 81.5m, with a total diameter of 163m.
• Turbines to be constructed with locally made concrete towers,
at 120m hub height.
Xolile Peter Lamani, chairperson of the Reebok Rant Worker’s Trust – which
owns a dairy farm near Oyster Bay that has leased land for the wind farm.
60 61

ENERGY
ENABLING THE
JUST TRANSITION
Carbon Capture, Utilisation and Storage:
a scientific intervention seeking to
mitigate CO2 emissions
The economic impact of coal across South African communities cannot be underestimated,
particularly when such an impact is investigated once coal has been fully discontinued. Close
to a quarter of a million workers are employed in the coal industry, hence any discontinuation
of this fossil fuel cannot be spoken of without considering the socio-economic impact.
BY THE COUNCIL FOR GEOSCIENCE
The obvious reality is that climate change has become an urgent
agenda item, globally. The urgency has been necessitated by
the entire world in civil society, private and public sectors
as solutions are sought on how to address climate change. South
Africa, like the rest of the world, is keen to play a leading role as
we seek lasting solutions that protect our environment and reduce
greenhouse carbon emissions. That’s a journey.
The Council for Geoscience (CGS), with over 111 years of geoscience
knowledge and experience, continues to be fully committed to
finding new technologies that will enhance environmentally
friendly energy sources. Sustainable solutions are needed though.
One of these, currently considered globally as one of the most key
solutions, is Carbon Capture, Utilisation and Storage (CCUS). The
CGS has embarked on a scientific intervention of CCUS that will see
the sustenance of South Africa’s energy and national development
needs, while equally contributing positively towards the transition
from a high to a low-carbon economy.
Globally, hydrocarbons like coal and oil have been largely
depended on. South Africa is no exception. It is 30 years since
the United Nations Framework Convention on Climate Change
(UNFCCC) was initiated and most member states are signatories.
The UNFCCC called on members to act in the interest of their
citizenry and humanity at large.
Scientists, appreciative of the role played by coal, have identified
the problem and admit how complicated it is. It is not an easy solve.
Solutions must be found as we move to a low-carbon economy
and science must form the basis of such.
One of these solutions is CCUS. This is a solution inspired, among
many other benefits, with the identification of carbon dioxide (CO 2)
as a greenhouse gas that has become central to global warming.
Advances in CCUS technology globally, including in countries like
the United States, Norway and Canada have proven the technology to
be a feasible alternative to reducing CO 2 emissions through utilisation
and underground storage in suitable geological formations. Once
underground, the CO 2 interacts with the geological environment
and mineralises, which reduces the risks associated with leakage.
CCUS’ intention is to capture CO 2 from the source such as the
fired-power plants and transport it to carefully selected geological
sites for permanent storage, which is supported by an extensive
monitoring, pre, during and post injection and storage.
The CGS has recently commenced with geological characterisation
of an identified potential site in Leandra, Govan Mbeki Local
Municipality in Mpumalanga, where consultations with a myriad
of stakeholders from three government spheres, through to local
traditional leaders, communities, environmental non-government
organisations (NGOs) and farmers to local business have borne fruit,
mostly with the long-term goal of seeing the community benefit
from this development. The Govan Mbeki Local Municipality has
contributed a piece of land for this research to be implemented.
The identified site has taken into consideration all factors such as
location, geology, socio-economic and technological aspects to
make a pilot feasible, thus a site proximal to CO 2 emitters.
Mpumalanga is South Africa’s coal capital, making the province
an energy hub. Hence, the current coal plants cannot be merely
decommissioned without taking into cognisance the implications
of such an action.
The two-pronged approach then sees the CGS being on the drive to
make South Africans aware of the CCUS technology. The technology
is encouraging, though we need to be mindful that it may take time
before we see the commercial benefits and return on investment.
The models that have worked in countries such as the United States,
cannot be readily assumed to also work in South Africa. Hence, the
CGS and other scientists are investing time and effort in extensive
techno feasibility studies and technological disruptions, particularly
adaptable to sites in South Africa, both on and offshore.
South Africa has pledged to cut CO 2 emissions by 50% by 2030,
which is six years from now. Acknowledging the significance and
abundance of coal, it is crucial to explore practical approaches to
meet this goal and effectively address emissions stemming from
hydrocarbons like coal to enable the country to transition justly to
a low greenhouse gas economic development trajectory in conjunction
with other energy sources such as renewables and nuclear.
The truth about coal is that it is affordable. There are enough coal
companies in South Africa employing tens of thousands, albeit financing
development of coal projects has become increasingly challenging
whilst the financing institutions investigate how best to contribute
towards the reduction of greenhouse emissions. Technologies need
to be applied on how best to use coal as we transition towards a low
carbon economy. The big question is whether this just transition can
be done sustainably, justly and justifiably?
Once we have figured this reduction intervention, such a breakthrough
will not only benefit Eskom, communities and business, it will go a
long way in the commitment we have made when it comes to CO 2
emissions. As Eskom unbundles into three divisions, we do hope
these would be synced to address this long-standing problem as
Eskom continues to operationally rely on coal.
The technology associated with CCUS is centrally developed as
an economic contributor that aims to do better and contribute
generously towards the country’s gross domestic product. In this
regard, the South African government assigned the CGS as an
implementing agent for the CCUS research in partnership with the
World Bank. The CGS has further developed a network of private
business partnerships that span the Development Bank of Southern
Africa, Sasol and Exxaro, while others are still in the pipeline for
finalisation. With such partners, this intervention is guaranteed to
benefit from collective wisdom, resource crowding and accelerated
implementation of ideas and technological applications.
The CCUS project has underlined how pivotal South Africa’s
commitment to reducing greenhouse gas emissions is. The project
directly responds to government’s call that innovative solutions are
sought for a transition to a low-carbon economy.
It’s a question that cannot be brushed aside, one that a project such
as CCUS aims to answer as it undertakes to be part of the solution.
The Govan Mbeki Local Municipality has contributed a piece of land for CCUS research to be implemented.
ENERGY
Solutions must be found as we
move to a low-carbon economy and science
must form the basis of such.
While the journey of this project can be traced back to Leandra, the
ultimate benefit will be enjoyed by the entire country. Moreover, it
has been proven from other parts of the world that CCUS could be
a viable option – our aim though, is to not only copy from the work
that’s already begun in other parts of the world, but we endeavour
to deliver a project that takes into account our diverse geology,
unique environment and overall technical excellence of our South
African institutions.
62 63

MINERALS
MINERALS
The importance of
CRITICAL
MINERALS
should not condone
their extraction
at all costs
Shortages in critical
minerals mean
a delayed
energy transition.
The energy transition depends on so-called “battery” or
“critical” minerals to be successful – minerals which must
be mined or recycled. Smartphones, superconductor chips,
renewable energy technologies and even the defence industry all
rely heavily upon critical minerals. Demand for these minerals is
set to triple by 2030. However, the uncomfortable reality is that
the supply of these metals is simply not there, and their extraction
carries huge social and ecological risks. This problem affects us all.
WHAT ARE CRITICAL MINERALS?
There is no universal consensus on what critical minerals are. Various
countries and bodies such as the International Energy Agency or
the World Bank have different lists and the contents of these lists
do not remain static.
For instance, the United States has two lists: the US Geological
Survey Critical Minerals List which contains 50 individual minerals
and the Department of Energy Critical Materials for Energy List,
which adds energy materials like copper and silicon. The European
Union has a list of 34 critical raw materials.
The term “critical mineral” is technically a misnomer as most of the
elements on these lists are metals and not minerals. However, there
are broad areas of agreement: most lists include battery metals such
as lithium, nickel, cobalt and copper as well as rare earth elements
and platinum group metals. Other common elements are the alloys
of steel, such as chromium, manganese and zinc.
All these elements are crucial to the energy transition. Battery
metals power electric vehicles (EVs) and storage batteries, steel and
rare earth elements are imperative for wind turbines and copper is
essential for power grids. Simply put, shortages in critical minerals
mean a delayed energy transition and worsening climate impacts.
Global warming is real and climate change
is worsening day by day with raging forest
fires, unseasonably warm winters and flooding
disasters taking place across the world.
Meanwhile, the carbon-zero transition required
to move away from such a dire future is hampered
by a key weakness – critical minerals.
BY ELIZABETH STEYN
Article courtesy The Conversation
Yet EVs are only as “clean” as the electricity grid that feeds them.
They are only as “green” as their component parts. The batteries require
nickel, which could well have come from a mine in the Philippines
that legally dumps its tailings (toxic waste) in oceans. And, the vital
cobalt can’t be separated from the human miseries of mining in the
Democratic Republic of the Congo, a mining industry referred to as
“a new form of slavery, a subterranean slavery”.
WHY ARE THEY PROBLEMATIC?
Critical minerals are often found in deposits that are highly concentrated
geographically, and China is a dominant force in their processing
and supply. This means that geopolitical tensions can make it harder
to secure critical mineral supply chains.
A December 2023 World Economic Forum White Paper maps
ecosystem risks arising from a lack of supply in critical minerals. Its
conclusions are clear. Not only does a delayed energy transition await
us at the end of the road, but the signposts along the way indicate
that these risks are already playing out.
For instance, political risks identified include conflict over resources,
increasing resource nationalism and increasing trade fragmentation.
Among the economic risks are market volatility and uncertainty, as
well as stockpiling of critical minerals. Socio-environmental risks
comprise an increase in exploitative and illegal mining and a higher
demand on ecosystems, while technological risks point to cascading
renewable technology shortages.
THE IMPACTS OF CRITICAL MINERALS MINING
When considering the implications of minerals shortages, it may
be tempting to justify critical minerals mining at all costs, however,
this is a dangerous fallacy. The social and environmental impacts
of poorly mined critical minerals are dire.
These range from lithium’s water intensity in the fragile landscapes
of the Chilean Atacama desert to the toxic processes inherent in the
processing of the rare earth elements whose use is ubiquitous in
smart technology and wind turbines. Diminishing ore grades mean
ever bigger tailings dams, and climate change makes them more
prone to accidents.
Elizabeth Steyn is an assistant professor of law at the Faculty of Law, University of Calgary.
For indigenous communities, critical minerals hold both promise
and peril. Studies have shown that critical minerals are often heavily
concentrated on indigenous lands. For them, the question arises
whether this will open the door to indigenous economic development
or if it will constitute yet another instance of displacement and
ecological destruction on their doorstep.
The importance of independent standards authorities such as the
Initiative for Responsible Mining Assurance (IRMA) cannot be
overemphasised. In contrast to industry standards such as Towards
Sustainable Mining, IRMA represents multiple stakeholder views.
These include communities, employees, investors and mines.
Mining is by its very nature a highly energy intensive process.
While it is expensive and technically complex to retrofit existing
mines for electrification purposes, new mines should be designed
with carbon neutrality in mind. Of course, this can be particularly
difficult in places that are experiencing infrastructure challenges,
such as limited renewable or low carbon energy options.
Greenfield mining is not the sole solution to the critical minerals’
conundrum. Urban mining (extraction from electronic waste) can play
an important role. It’s also important to design products manufactured
from critical minerals with recycling and repurposing in mind.
By investing in research and development, we can find substitutes
to the most problematic minerals, whether the underlying issues are
geopolitical constraints, toxicity or human rights abuses.
EVs are only as “clean” as the
electricity grid that feeds them.
THE BOTTOM LINE
At the end of the day, we need responsible mining practices that
will enable us to obtain the minerals required to make the energy
transition work. However, we must do so in a way that is just and
equitable towards both people and the planet.
This goal is a race against time, requiring both innovation and
a never-ending vigilance against a lowering of standards to meet
short-term needs – a vigilance which we all must work to maintain.
64 65

MINING
MINING
SERVICING the
MINING INDUSTRY
Vezinhlanhla Mining strives to be a leading black-owned, diversified mining company in
Africa while ensuring participation in the discovery, exploration and beneficiation of Africa’s
mineral resources. Green Economy Journal speaks to the founder, Prince Vusi.
Please tell us about Vezinhlanhla Mining.
Vezinhlanhla Mining is a 100% black-owned mining contractor which
combines top-notch experience with the versatility and innovation
required by the mining industry to be sustainable in the long term.
Vezinhlanhla is an empowered turnkey contractor with capabilities
across the underground and opencast contract-mining value chain.
What is your view on sustainability?
Vezinhlanhla Mining takes this responsibility seriously by embedding
sustainable practices and environmental, social and governance
(ESG) principles into every project by using cutting-edge technology,
conducting thorough environmental assessments and adopting
eco-friendly materials and execution methods.
RECLAIMING the RESOURCES
Vezinhlanhla Mining, a 100% wholly black-owned mining contractor established by Prince
Vusi, combines leading experience with the versatility and innovation required by mining
to be sustainable for the long term.
What is the company’s history?
As a Vusimuzi Group subsidiary, I established Vezinhlanhla Mining
in 2017 to focus exclusively on the mining industry. Initially there
was not much difficulty in establishing and growing the company,
although we did have some challenges in 2022, but we showed
immense resilience during the rebuilding phase.
What is your vision?
In 2024, our vision is to dominate the industry with my team and
reinforce our position in the market, not only as a 100% black-owned
mining contractor, but also as a reliable and competitive independent
producer, starting with those 0.1% holding stakes.
If it’s not in mining, it’s not for us.
Please supply an overview of your offerings.
Vezinhlanhla is a mining contractor with capabilities across the
underground and opencast contract-mining value chain. We offer
the following:
• Underground and opencast mining
• Project and facilities management
• Plant and conveyor maintenance
• Crushing and screening
• Engineering and drilling
• Bulk material transportation and hauling
We provide extensive services for coal, gold and platinum group
metals (PGMs) producers. Vezinhlanhla Mining was established
with the sole purpose of servicing the mining industry – if it’s not
in mining, it’s not for us.
Established in 2017 as a mining contractor to service the mining
industry, Vezinhlanhla is an empowered turnkey contractor
with capabilities across the underground and opencast contract
mining value chain. We provide extensive services for coal, gold,
iron ore, manganese ore, chrome ore, nickel and platinum group
metals (PGMs) producers.
Vezinhlanhla undertakes mining operations with miners, roadheaders
as well as drill and blast applications, enabling our clients to
outsource according to their unique needs. Our commitment to safety,
health, quality and environmental management standards means
we work towards continuous improvements in risk management to
better deliver project excellence.
Our black empowerment credentials ensure that our clients benefit
fully in terms of the mining charter requirement and the contractual
conditions of key minerals purchasers.
OUR COMMITMENT
The empowerment of women, youth and disabled persons should
be achieved in all aspects of work. Vezinhlanhla has more women
on board to strengthen the capacity of the business. The company
will also employ youth to pass on the skills to the next generation as
Vezinhlanhla grows. Bursary schemes will be introduced for students
to further their studies.
Vezinhlanhla has developed a culture where there is no discrimination
against disabled persons, hence it will seek to find, train and employ
disabled persons with potential and enthusiasm.
OUR COMMUNITY DEVELOPMENT PLAN
Our objective is to train our staff and community. Undergraduates
from universities and colleges studying engineering, safety or mining
will be given the opportunity to further their studies in the field at
Vezinhlanhla Mining.
OUR BLACK EMPOWERMENT POLICY
Vezinhlanhla is committed to the broad-based black economic
empowerment, and it supports the government’s initiative of
transformation and affirmative action policies and will continue to
implement such projects where possible. Vezinhlanhla has initiated
projects whereby materials and equipment are sourced from black
SMME companies thus to empower one of our own.
Vezinhlanhla Mining strives to be a leading black-owned, diversified
mining contractor in Africa while ensuring participation in the
discovery, exploration and beneficiation of Africa’s mineral resources.
Our mission is to develop and consolidate a diverse portfolio of
high-quality assets and services for the benefits of its stakeholders.
• A 100% wholly black-owned mining contractor
• Capabilities across the underground and opencast contractmining
value chain
• Solely focused on the mining industry
• Viable partnerships and relations with our clients
OUR MISSION
To be a leading black-owned South African company that delivers
value to all its stakeholders by:
• understanding the needs of our stakeholders
• delivering on and exceeding those needs
• attracting and retaining the best talent
• focusing on core assets: Pareto Principle
• focusing on owning and operating our assets
• embracing diversity
• ensuring sustainability, growth and good governance
THE FUTURE
• Reinforce our position in the market as a reliable and competitive
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Guests Stumble Upon
Archaeological Find:
Guests Stumble Upon
Archaeological Find:
STONE STONE AGE AGE POTTERY POTTERY
Under the guidance of Waseefa Dhansay, Heritage Western Cape’s Assistant Director of Professional
Services, and following an initial inspection of the site and surrounds, the team carefully retrieved the pot,
along with associated lithics from the immediate area, as these help to provide context for the Khoekhoe
pot and further insights into the site’s collective narrative. Once the pot was safely secured, the team went
on to comb the surrounds for any further signs of the Khoekhoen and were rewarded with a rock art site
just a few metres away, containing handprints, likely made using traditional ochre-based pigment.
The initial investigation revealed that the pot is an
amphora-shaped vessel with a restricted neck, a
curved and pointed base, and two intact horizontally
pierced ears, identifying it as a functional vessel.
The pot is considered to be in exceptional condition,
and remarkably intact, apart from one minor hole
and significant hairline fractures that have formed
over time.
Believed to have been used as a cooking pot, that
would have been placed and balanced directly on
the coals of a firepit, as evidenced by the charring on
the bottom, Heritage Western Cape advised against
carbon-dating the artefact as the process would
potentially damage the pot, and said that, given
past studies in the Cederberg region, the artefacts
found likely range between 500 to 8000 years old.
A Once-in-a-Lifetime A Discovery at Kagga Kamma Nature Reserve
The numerous rock art sites dotted across the Kagga They soon stumbled upon an incredible discovery: a
The numerous rock art sites dotted across the Kagga They soon stumbled upon an incredible discovery: a
Kamma Nature Reserve landscape provide vivid Khoi ceramic pot, believed to be from the Late
Kamma Nature Reserve landscape provide vivid Khoi ceramic pot, believed to be from the Late
evidence of the lives, worldview, and fascinating social Stone Age period, and lauded as an exceptionally
evidence of the lives, worldview, and fascinating social Stone Age period, and lauded as an exceptionally
and spiritual beliefs of the Stone Age hunter-gatherers – good archaeological find. The pot was found in the
and spiritual beliefs of the Stone Age hunter-gatherers – good archaeological find. The pot was found in the
the San – and the Khoekhoe-speaking herders – the shelter of a rock outcrop, where it had remained
the San – and the Khoekhoe-speaking herders – the shelter of a rock outcrop, where it had remained
Khoi who inhabited, and ranged in, the area for relatively protected from the elements, along with
Khoi – who inhabited, and ranged in, the area for relatively protected from the elements, along with
thousands and hundreds of years, respectively.
numerous scattered stone tool deposits, ostrich
thousands and hundreds of years, respectively.
numerous
eggshell fragments,
scattered
and
stone
faunal
tool
remains.
deposits, ostrich
In addition to the rock art, remnants of their livelihoods eggshell fragments, and faunal remains.
In addition and experiences to the rock can art, still remnants be found of their today, livelihoods scattered On their return to the Main Lodge, Elizma and Ivan
and across experiences the Reserve, can in still the be form found of relics today, such scattered as stone On immediately their return notified to the management Main Lodge, of Elizma the find, and and Ivan
across tools the and Reserve, ostrich eggshell in the form fragments. of relics However, such as the stone most immediately so the process notified of having management the discovery of the validated, find, and
tools recent, and ostrich and by eggshell far the most fragments. exciting However, archaeological the most and so through the process the proper of having channels, the began. discovery The validated, Kagga
recent, cultural and treasure by far the found most at exciting Kagga Kamma, archaeological was that and of a through Kamma Team the proper reached channels, out to Heritage began. The Western Kagga
cultural nearly treasure intact Stone found Age at Kagga Khoekhoe Kamma, clay pot, was which that of was a Kamma Cape with Team photographic reached images out to of Heritage the pot in Western situ,
nearly found intact by guests Stone while Age Khoekhoe out hiking clay and exploring pot, which on was the Cape requesting with photographic their input. Based images on of the pot evidence in situ,
found Reserve. by guests while out hiking and exploring on the requesting presented, Heritage their input. Western Based Cape on dispatched the evidence a
Reserve.
presented,
team to Kagga
Heritage
Kamma
Western
Nature Reserve.
Cape dispatched a
On a particularly balmy day, Elizma Bester and Ivan
team to Kagga Kamma Nature Reserve.
van Niekerk, guests staying at Kagga Kamma
On a particularly balmy day, Elizma Bester and Ivan
Nature Reserve, ventured out on a hiking trail to
van Niekerk, guests staying at Kagga Kamma
explore.
Nature Reserve, ventured out on a hiking trail to
explore.
The pot will remain at Kagga Kamma Nature
Reserve, and form part of a display, along with other
artefacts, to provide guests with additional insights
into the intriguing San and Khoi cultures, during
related heritage tours and experiences
The paintings and engravings, found on cave walls and rock faces, and other archaeological traces, depict
fascinating stories of the San and Khoi people who first walked these ancient lands. Honouring and
preserving the heritage of these first peoples, imprinted upon and intrinsic to Kagga Kamma Nature
Reserve, is deeply rooted in Kagga Kamma’s ongoing mission to safe-guard and appropriately share this
special and unique environment with guests. Kagga Kamma continues to pay homage to the rich cultural
history of the Reserve and the greater Cederberg area, through the preservation of the Rock Art sites and
archaeological finds; and by sharing the incredible insights they provide into the rich and multifaceted lives
and habits of the San and Khoi; and delving into their stories and beliefs with others, through educational
experiences that inspire and connect people of today with our soulful heritage of the past.
www.kaggakamma.co.za