Service Issue 89

ISSUE 89
MARCH/APRIL/MAY 2025
L E A D E R S H I P I N G O V E R N M E N T
THE DIGITAL DIVIDE
CIRCULAR ECONOMY
WHO IN AFRICA
G20 PRIORITIES
THE ART OF WATER DELIVERY
Sipho Mosai, Group Chief Executive, Rand Water
EARLY CHILDHOOD
DEVELOPMENT

Perfecting the art of water delivery
for future generations
The combination of human demographics and activity has in many global regions transformed water from an abundant
element to a scarce resource.
Water service is dependent on infrastructure availability and an
equilibrium between water demand and the system’s capacity to meet
average and peak demands. South Africa has an arid to semi-arid
climate and below average annual rainfall of 465mm compared to the
global average of 860mm. It is the 40th driest country worldwide. The
average domestic water use is estimated at 218 litres per person per
day, 64 litres higher than the international benchmark of 173 litres.
Gauteng’s consumption is high at 279 litres per day, due to water
leaks in municipal distribution systems. Statistics SA’s growth estimates
further bolster this figure. In turn, the future needs to dictate the
requirements for infrastructure upgrades and refurbishments
upstream and midstream of the value.
The bulk water infrastructure midstream within the value chain is
designed for average water consumption and peak water demands
of a week. If water demand is of typical consumption, then the
system can provide water with relative ease. In most instances, every
household receives water without exception. If peak water usage
exceeds Rand Water’s purifying output, municipal water is drawn
from reservoirs, which dry out quickly because of excessive use. Rand
Water continues to pump at optimum capacity and will deliver to lowlying
areas regardless. Pumping and reservoir filling are impossible
without a steady supply of electricity. If there is no electricity to
operate pumps, reservoirs are depleted, and high-lying areas are left
without water. The final segment of the value chain (downstream)
lies under the purview of municipalities, who draw water from Rand
Water’s reservoirs and distribute it through a system of its own pipes
and reservoirs.
Non-revenue water, notably physical water losses because of
ageing infrastructure, is the greatest impediment in the value chain,
particularly in the downstream. Municipal physical water losses range
between 20% and 30% (1 000 to 1 500 million litres of water a day) at
maximum capacity. In a water-scarce nation, this quantity is enormous.
As water consumers, we must conserve water and change our
behaviour. We should not fill swimming pools and irrigate our lawns
with potable water during periods of extreme heat and loadshedding,
avoiding these will considerably improve water supply for all. Local
municipalities must prioritise non-revenue water, which will aid
wastage reduction by paying for unused water. To maintain water
supply reliability, infrastructure upgrades and refurbishments need
sufficient funding.
In the next five years, Rand Water will invest R30-billion to expand
its network of pipes and reservoirs. As part of this plan, Rand Water
inaugurated a 210-million-litre storage reservoir in 2023.
Revenue generated from paying customers must be ring-fenced for
infrastructure operations, maintenance, renovation and augmentation.
The current structural arrangement should be replaced by new utilities
that will operate the value from abstraction to reticulation. Governance
and funding mechanisms will ensure success.
Special Purpose Vehicle
Rand Water has collaborated with municipalities that are facing
significant financial strain and impacted by non-revenue water. This
spirit of collaboration was evident when Emfuleni Local Municipality
agreed to pilot an innovative water services delivery model known as
the Special Purpose Vehicle (SPV).
The SPV will include shareholders such as Rand Water, the
affected municipality and other third parties willing to invest in
upgrading, refurbishing, operating and maintaining water services
infrastructure. Profits generated by the SPV will be distributed to
investors as dividends, according to the SPV’s dividend policy.
Rand Water has adopted a
strategic vision focused on growth
and sustainability.
Municipalities will contribute to the SPV by transferring their water
services assets, which will be assessed, valued and migrated. The Rand
Water stake will be determined by its capital injection. This entity
will manage its own assets, liabilities, rights and resources, effectively
ringfencing water services under its umbrella.
For day-to-day operations, shareholders will appoint non-executive
directors, who will select the SPV CEO or managing director. The
SPV will have a chief operations officer, chief financial officer, a full
management team and staff. Governance structures such as audit, risk
and investment subcommittees will be established.
Consumers will pay their water bills directly to the SPV, ensuring
that funds are exclusively used for water and sanitation services.
Water and sanitation grants directed to municipal accounts will be
redirected by the municipality into the SPV to maintain liquidity.
Compliance with various acts such as the Public Finance
Management Act, Municipal Finance Management Act, Water Services
Act, National Water Act, Companies Act and Municipal Systems Act
will be ensured. Permissions for transferring municipal assets to the
SPV will be sought from relevant government departments, including
National Treasury, the Department of Water and Sanitation and the
Department of Cooperative Governance. Extensive stakeholders’
consultations and a change management process will be undertaken
before implementation.

This reimagined model promises a more sustainable approach to
managing water services, ensuring better infrastructure and service
delivery for municipalities.
Rand Water successes
Rand Water has adopted a strategic vision focused on growth
and sustainability, aimed at tackling existing water challenges and
enhancing water distribution, managing resources responsibly for
future generations. Rand Water group chief executive, Sipho Mosai’s
focus on maintaining financial health while investing in state-of-the-art
technologies and infrastructure has yielded significant projects such as
the construction of the biggest post-tension reservoir in Vlakfontein,
Ekurhuleni at 210-million litres storage and the biggest purification
plant since the dawn of democracy at 600-million litres a day: Station
5A at Zuikerbosch Water Purification Pant.
Success is evident with a revenue growth of 11.4% to R21.8-billion,
a gross income growth of 15.3% to R7-billion while maintaining a
gross income margin above 30% year-on-year through a dedicated
focus on cost efficiencies. This translates to a solid bottom line with
net-income growth of 29.0% to R4 562-million (2023: R3 536-million)
and a net income margin of 20.9% further boosted by returns on
strategic investments.
Under Mosai’s tenure, immense effort has been made to ensure the
maintenance of a strong financial profile amid the economic challenges
and tough operating environment. He acknowledges that liquidity and
financial risk management remain the cornerstones towards Rand
Water’s financial sustainability. This was underpinned by
the organisation’s ability to successfully redeem the
RW21 bond with a total nominal amount of R1.6-
billion in 2021 and the RW23 bond in 2023 at a
nominal amount of R1.2-billion.
Rand Water’s financial sustainability was
further attested by the issuance of three new
bonds in 2021, in senior and sustainability-linked
notes amounting to R1.7-billion, which attracted
over R4.5-billion in capital market bids – a
solid indication of confidence in Rand Water’s
financial status by the investor community.
The organisation was the first state-owned
company to issue sustainability-linked bonds
in Africa, which were the largest ZARdenominated
sustainability-linked bonds to
be issued then. In 2022, Rand Water won the
Bonds and Loans Africa Awards due to the
THE MAN AT THE HELM OF RAND WATER
Sipho Mosai has been the group chief executive of Rand Water
since 2019. Before that, Mosai was Rand Water’s chief operations
officer for 10 years. Mosai boasts over 20 years’ executive
management and technical experience in bulk and distribution
water operations; water infrastructure planning, maintenance,
refurbishment and upgrade; project management, scientific
services, strategic asset management and sector growth and
development.
Mosai has served as a non-executive and board member
in various institutions, including serving on the Construction
Industry Development Board. He currently serves on the boards
of the Rand Water Foundation and Rand Water Services as a
non-executive director.
Qualifications
• Bachelor of Science
(University of the North)
• Bachelor of Science (Hons)
(University of the North)
• Master of Science
(University of Free State)
• Post Graduate Diploma in
Management
(University of KwaZulu-Natal)
• Master of Business
Administration
(University of
KwaZulu-Natal)
Rand Water Group Chief
Executive, Sipho Mosai.
sustainability-linked bonds. S Service magazine | 1

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editor’s note
Serving growth and development
T“The growth and development of people is the highest calling of
leadership,” said founder of Firestone Tire, Harvey S Firestone.
For the first time in history, the G20 is being hosted in Africa
following the admission of the AU as a G20 member. This is a
moment of great significance for South Africa, the African
continent and the world.
“As we confront the challenges of the 21st century – from
climate change to artificial intelligence – we are again called
upon to harness that most powerful, and that most enduring,
of human attributes: mutually beneficial cooperation and
collaboration,” President Cyril Ramaphosa said in his address
at the World Economic Forum on South Africa’s G20 Priorities.
“One of the greatest impediments to growth, development and
stability is the persistence of inequality within and between
countries.”
It is in the interests of all countries to act with greater urgency
to reduce global emissions – and for industrialised countries to
support the climate actions that poorer countries must take. One
of South Africa’s priorities for its G20 presidency is to mobilise
finance for a just energy transition (page 10).
Temperatures in South Africa are rising faster than the
global average and finding ways to adapt to climate change and
its challenges is urgent. These challenges are compounded by
the disruptions of an energy transition. Our country has high
levels of inequality and unemployment. On page 18, Service
investigates how South Africa should balance the need to cut
carbon emissions while protecting an already vulnerable working
population during the just energy transition.
In his SONA 2025 address, the president noted that technology
could transform the way that government works and committed
to investing in digital public infrastructure to give South Africans
access to government services. “To support growth in digital
services and business process outsourcing, we are investing in
skills development for the industries of the future,” he said.
Technology thought leader, Dr Sylvia Sathekge, says that
the focus on digital skills development and the creation of a
transformation fund to empower innovation must be coupled
with robust digital skills development programmes to empower
citizens to participate in the digital economy. The lack of
progress in broadening the take-up of STEM subjects at schools
and beyond means that we are stifling our capacity (page 32).
The country is facing an ever-widening digital skills gap, a
challenged education system and youth unemployment rates that
threaten to destabilise our future. It’s time to start driving real,
meaningful change. The call to action is clear: the private sector
must step up further and invest more in South Africa’s skills
future (page 34).
The time to act is now. On page 30, Minister of Basic Education,
Siviwe Gwarube, called on the business sector to partner with
government to ensure a brighter future for the entire country.
“The impact of Early Childhood Development on a country’s
GDP, and on further education and skills development, in
particular STEM skills, is unquestionable.”
As American political activist, Ralph Nader, attested, “The
function of leadership is to produce more leaders, not more
followers.”
Yours in service!
Alexis Knipe
Editor
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2 | Service magazine

contents
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IN THIS ISSUE | SERVICE 89 | MAR/APR/MAY 2025
10 24
18
1 PERFECTING THE ART OF WATER DELIVERY
Rand Water’s strategic vision focused on growth
and sustainability
2 AN ETHOS OF COLLABORATION AND UNITY
Tshebedisano Burial Society offers a range of services
6 SERVE AND DELIVER
News and updates
10 SA’S G20 PRIORITIES
Special Address by President Cyril Ramaphosa
13 SA’S COLLECTIVE APPROACH TO
THE G20 PRESIDENCY
A united effort to tackle the global challenges that
impact mankind
14 WHO IN AFRICA: TRUMP’S DECISION TO PULL OUT
Profound implications for Africa
16 SA WELCOMES COP29 OUTCOMES
The outcomes are a significant step in the right direction
18 SA’S BOLD NEW CLIMATE
A hot and troubled world of work
20 SA’S SCARCE WATER NEEDS CAREFUL MANAGEMENT
Smaller, local systems offer benefits
22 WATER INFRASTRUCTURE AND
EQUIPMENT MAINTENANCE
A strategic necessity
23 SECURING SA’S WATER FUTURE
Why skills matter more than ever, by EWSETA
24 THE CIRCULAR ECONOMY’S PROMISE TO
REDUCE LANDFILLS
Consumer demand demands circular economy systems
26 NAVIGATING SUSTAINABLE RECYCLING GROWTH
Polyco’s comprehensive investment strategy
30 THE TIME TO ACT IS NOW
Minister calls on private sector to help early
childhood education
32 BRIDGING THE GREAT DIVIDE
Digital skills development focus
36 GOOD NEWS
Building a brighter future
32
Service magazine | 3

funeral services
An ethos of collaboration
and unity
Established in 1998, Tshebedisano Burial Society is a 100% black female-owned business in Soweto.
The Burial Society caters for all offering a range of services.
Where does the name Tshebedisano come from?
The name “Tshebedisano” means “working together” in Sesotho. It
reflects the company’s core mission of reaching out to communities,
providing support, and making life easier for families during their
most difficult times. The ethos of collaboration and unity is evident
in the services Tshebedisano Funerals offers, ensuring families can
focus on grieving while the company handles all funeral preparations
with professionalism and compassion.
We offer exhumations, cremations, tombstones and other funeral
services for the public as well. In addition to the services that we
provide, we also offer add-ons like voucher cards that we load
money on for our clients to buy groceries with. Our other services
include grave closures, décor at the home and cemetery, flowers and
repatriation (if people move into other regions, we have a prepaid
plan for repatriation). We offer catering services and the after-tears
setup (when guests get together after the funeral). We also offer
photography, live streaming and videography and we offer a portrait
of the deceased that is painted by an artist.
How does one go about starting a funeral business?
First, you have to be a registered company, and you must register to
be a financial services provider with the Financial Sector Conduct
Authority (FSCA).
Please share your achievements as a business.
I am self-taught in business and technology. I’ve implemented
innovative structures that remain effective today. I’ve transitioned
from renting a space to owning and building a dedicated facility for
the business. I’ve improved services and expanded offerings, attracting
clients from diverse backgrounds, including celebrities and prominent
figures not only that but I’ve proudly created numerous employment
opportunities within the community, empowering local individuals to
advance in their careers. My recent accolades are as follows:
• I was recognised in the United States for contributions to
the funeral industry in 2011 and in the same year, I was
recognised as the Businesswoman of Soweto.
• Received an international leadership award in New Orleans
in 2013.
• I was fortunate to accept an award on behalf of the
Archbishop Desmond Tutu in New Orleans.
• I’ve won multiple business awards through Rocci and FNB,
securing silver, bronze and gold in one day.
• The most recent achievement was being honored with the
African Excellence Award from the UK in August 2024 for
community service.
Please outline your funeral policy.
The funeral policy serves as a payment plan underwritten by an
insurer. Key features include flexible usage of cover. Clients may
choose to bury with Tshebedisano Funerals or another provider. If the
client chooses another funeral parlour, they receive the insured cover
amount as a payout and for funerals conducted by Tshebedisano, the
cover amount translates into comprehensive services.
What advice would you give other people entering the burial
society business?
Tshebedisano Funerals is committed to ensuring that every
client, regardless of their financial status, receives a dignified and
meaningful funeral. We prioritise compassion, ensuring that clients
facing financial hardships can rest assured their loved ones will be
honoured with care and respect.
• If you are in the funeral industry, I recommend that you always
be transparent and honest with your clients.
• Provide clear guidance and deliver on promises.
• Approach every funeral with dedication and ensure it leaves a
lasting impression.
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funeral services
S
• Treating every client with equal care, regardless of how much
they can afford.
• Build long-term relationships by providing exceptional service
because loyal clients will spread the word, reducing the need
for extensive marketing.
• Be willing to assist those in need, even if it means making sacrifices.
• Believe in helping disadvantaged clients often creates goodwill
that multiplies over time.
• Lastly, it’s the need to always be innovative, avoid imitating
competitors; instead, focus on what matters most to your
clients. Stay innovative and adapt your services to meet the
evolving needs of the community.
What sets you apart from other funeral parlours?
There are four key factors that set us apart:
Collaboration and partnership. Tshebedisano Funerals doesn’t just
provide a service — we work closely with families, ensuring every
aspect of the process is tailored to their needs.
Luxurious and personalised experiences. The company goes
beyond basic services, offering luxurious touches that bring comfort
and dignity to families during difficult times.
Compassionate approach. The emphasis on assisting financially
struggling clients reflects a deep commitment to the community.
Unwavering dedication. Each
funeral is handled with the utmost
care, ensuring the company leaves
a lasting positive mark on every
family it serves.
Business will come
flowing your
way if you service
people with passion
and loyalty.
By combining integrity, empathy
and innovation, Tshebedisano
Burial Society has built a legacy of
trust and excellence in the funeral
industry. S
Pamela Motlhabi, Director,
Tshebedisano Burial Society.
27
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snippets
SERVE AND DELIVER
CABINET APPROVES MTDP AND NCSF
Cabinet has approved the Medium-Term Development Plan (MTDP) for the period
2024-2029, which outlines key priorities for the 7th administration.
The MTDP builds on the National Development Plan, the Statement of Intent of
the Government of National Unity and the consensus reached during the Cabinet
Lekgotla held on 29 January 2025.
Additionally, the MTDP incorporates the three strategic priorities outlined
by President Cyril Ramaphosa in his Opening of Parliament Adress on
18 July 2024.
“The plan guides government’s initiatives to create a more inclusive country
that lives up to the commitments of the Government of National Unity.
“It aims, among others, to ensure inclusive economic growth, reduce
unemployment, poverty and the rising cost of living as well as to ensure a
capable, developmental and ethical state,” Cabinet said in a statement.
National Communication Strategy Framework
Cabinet has also approved the National Communication Strategy Framework (NCSF)
for the period 2024-2029 for implementation across all spheres of government.
The NCSF forms part of the ongoing work to consolidate and enhance
government-wide communication system, in support of the implementation of the
MTDP 2024-2029 as envisaged in the Government Communication Policy, approved
by Cabinet in 2018 which is currently under review.
The NCSF responds to the expectation that government communication must
be coherent, improve public trust and investor confidence, foster unity and social
cohesion and mobilise citizens’ participation. This encourages South Africans
to use information to improve their lives and take advantage of socioeconomic
opportunities to contribute to the development of our country.
SAnews.gov.za
SA’S AI REVOLUTION IS HERE – BUT ARE WE SECURE?
AI is not just changing how businesses operate – it’s transforming the cyberthreat
landscape at an unprecedented pace. Cybercriminals are already
exploiting AI to automate deepfake attacks, craft hyper-realistic phishing scams
and weaponise malware. The question isn’t whether South African businesses
will be targeted – it’s when and how prepared they will be when it happens. As AI
adoption accelerates, our digital core – the essential technology infrastructure
underpinning business operations – must be fortified. If we fail to secure it, we
risk compromising customer data, disrupting supply chains, and eroding trust
in South Africa’s digital economy.
This is no longer a theoretical risk. South Africa’s
businesses, financial institutions and government
systems are at increasing risk of AI-driven attacks.
A reactionary approach to cybersecurity is no
longer sufficient – we must embed security into
every AI-powered system from the ground up. Just
as cybercriminals are using AI to attack, businesses
must use AI to defend. AI-driven security tools can
detect, analyse and neutralise threats in real time,
outpacing traditional threat-detection methods.
Machine-learning models can identify anomalies, stopping breaches before
they escalate. A zero-trust security model, which verifies every user, device
and AI-driven process before granting access, must become the new standard.
Organisations must continuously authenticate and validate all users, even those
inside the network.
AI systems rely on vast amounts of sensitive data, making robust data
governance essential. This means securing cloud environments, enforcing
strict encryption standards and ensuring compliance with global and local data
protection regulations such as South Africa’s Protection of Personal Information
Act (POPIA). AI systems must be evaluated for vulnerabilities before deployment.
Businesses must adopt a framework for AI model risk management, ensuring
that AI-generated outputs are accurate, unbiased and resistant to manipulation.
AI security audits should become standard practice.
South Africa’s digital economy is at an inflection point. If we fail to secure
our AI infrastructure, we won’t just lose data – we’ll lose trust, competitivenes,
and economic momentum. South Africa has an opportunity to lead in AI-driven
transformation, but only if security is a non-negotiable part of that journey. We
must act decisively, investing in AI-driven cybersecurity solutions, regulatory
frameworks and a culture of cyber resilience.
REFORMING PUBLIC SECTOR BOARD APPOINTMENTS
In this year’s SONA, Ramaphosa spoke of building a state with “leaders who are
prepared to serve our people with complete dedication, and public servants
who are ethical, skilled and properly qualified”. He added, “To achieve these
objectives we are strengthening the role of the Public Service Commission in
the appointment of the key people who direct the affairs of our state such as
directors-general, deputy directors-general, chief executive officers of SOEs
and board members and other senior positions.”
However, this approach is unlikely to bring the desired improvements in
leadership and governance, because the Ministers will still have the power to
make board appointments, which historically has seemed to be according to
political lines and patronage. To ensure that SOE board members are indeed
“ethical, skilled and properly qualified”, the Institute of Directors South Africa
(IoDSA) strongly recommends thorough due diligence in the appointment
process, in line with the principles of King IV. “King IV advocates for a
competency-based approach to board
composition, ensuring that directors
collectively have the knowledge, skills,
experience and personal qualities
necessary for effective governance and
oversight,” says Parmi Natesan, CEO of
IoDSA. “Furthermore, the IoDSA’s formal
chartered director and certified director
designations provide a framework for
directors to acquire and demonstrate
the specialist skills, experience and
integrity needed to discharge their duties
with mastery, in line with its Director
Competency Framework.”
Parmi Natesan,
CEO of IoDSA.
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snippets
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SERVE AND DELIVER
A SOLUTION TO SA’S LAND REFORM CHALLENGES?
The Expropriation Act, recently signed into law by President Cyril
Ramaphosa, has sparked mixed reactions across the country. The
objective of the Act, as explained in its preamble, is to give effect to
the constitutional promise of land reform; a promise which, over 30
years post the Constitution’s adoption, has not really materialised.
Section 25 of the Constitution prescribes in section 25(1) that
no-one may be deprived of property, except in terms of a law of
general application (a law that applies to everyone equally), and any
such law may not authorise the arbitrary deprivation of property.
Section 25(2) permits the expropriation of property for a public
purpose or interest, and section 25(4) clarifies that “public interest”
includes the country’s commitment to land reform.
Section 25(3) provides for the payment of just and equitable
compensation in the event of expropriation, “reflecting an equitable
balance between the public interest and the interests of those
affected”. Section 25(3) also prescribes the circumstances to be
considered when determining just and equitable compensation.
These include the current use of the property, the history of the
property’s acquisition, the market value, the extent of state support
in the acquisition and improvement of the property and the
purpose of the expropriation. This provision is mirrored in the Act to
determine just and equitable compensation.
The Act provides for nil compensation when it is just and
equitable. This aligns with the Constitution, as Section 25 does not
prescribe what just and equitable compensation ought to be but
rather provides guidance for its determination. It is conceivable
that in appropriate circumstances, compensation could be nil.
Fortunately, the Act does provide guidance to determine when nil
compensation may be justifiable.
The Minister of Public Works has the authority to expropriate on
behalf of other organs of state, upon the request of the minister
responsible for that organ of state. Ostensibly then, the Land Claims
Commission, responsible for overseeing land claims, may request
through the Minister of Rural Development and Land Reform, the
expropriation of land. If circumstances permit, this could be for nil
compensation. The implementation of this is at the discretion of
the Minister of Public Works. It may have been preferable for the
expropriation power to reside with the Minister of Rural Development
and Land Reform.
By Ayanda Khumalo, Partner & Nkosinathi Thema, Senior Associate
at Webber Wentzel.
2025 BUDGET SPEECH – DELAYS
The 2025 National Budget delay underscores the political complexity of aligning
fiscal priorities within the coalition and represents a critical test for the
Government of National Unity’s (GNU) cohesion.
Given South Africa’s economic and fiscal constraints, the budget’s stance on
tax policy, infrastructure investment, and state-owned entity (SOE) support carries
significant implications for investors and economic stability.
Since the Medium-Term Budget Policy Statement (MTBPS) in October 2024, both
external and domestic conditions have evolved.
External factors. With the potential return of President Trump’s policy agenda in
the US, possible tariffs and policy shifts could impact South Africa’s trade partners
(China, Europe), affecting capital flows and currency stability. The increased risk
premium on South African assets is a concern.
Domestic factors. Inflation remains benign, supporting real disposable income,
while GDP growth expectations are cautious, with National Treasury projecting 1.7%
for 2025. Although business confidence has improved marginally, infrastructure
execution continues to pose challenges. Fiscal affordability rulings impact social
relief measures, with pressure to extend the Social Relief of Distress (SRD) grant.
The debate over targeting a primary surplus as a fiscal anchor persists.
KEY ISSUES
Revised public private partnerships (PPP) framework. The consolidation of
infrastructure financing entities and regulatory amendments.
Consumer spending trends. The impact of the two-pot pension system.
Government borrowing for infrastructure. Potential increases in debt issuance.
SRD Grant. The likelihood of an extension given fiscal constraints.
Transnet, Eskom and municipalities. Key challenges.
Revenue and expenditure projections. Government spending priorities.
Fixed investment/GDP ratio. Monitoring shifts in infrastructure investment.
SOE SUPPORT
Government has reiterated its commitment to targeted SOE interventions rather
than blanket bailouts. Specific considerations include:
Eskom. Allocations for transmission expansion.
Transnet. General liquidity support and investment in freight corridor upgrades.
Municipalities. Conditional grant reforms aimed at improving financial
sustainability, with a focus on revenue collection and private-sector participation
in service delivery.
INFRASTRUCTURE INVESTMENT
Government has prioritised investment in key sectors:
Water sector. Allocations for infrastructure, including funding for non-revenue
water projects in key metros.
Renewable energy and storage. Investments to accelerate South Africa’s energy
transition initiatives.
By Conway Williams, Head of Credit, Prescient Investment Management
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snippets
SERVE AND DELIVER
SUMMIT ADDRESSES MUNICIPAL CHALLENGES
The Department of Local Government (DLG) hosted an important Shared Services
Summit, which brought together municipal leaders and experts from across
the province and national level to discuss solutions for the challenges faced
by municipalities. The department has been working to develop Shared Service
models that will help municipalities improve their service
delivery. By sharing resources and expertise, municipalities can
deliver better services while reducing costs. This initiative has
already led to better compliance and improved service delivery
in various districts.
With tight budgets and limited resources, many municipalities
are increasingly turning to shared services as a solution to do
more with less. The summit provided a valuable opportunity to
explore how these shared services can be used more effectively
and on a larger scale to improve local service delivery.
“The Shared Services Summit is a chance for municipalities to come together,
share ideas and collaborate on how to work better together to serve their
communities,” said Dr Sandra Greyling, chief director: municipal performance
monitoring and support at the Department of Local Government. “Our goal is to
help municipalities save money, improve efficiency and
deliver the services that communities need in a more
cost-effective way.”
Merle Green, Shared Service project manager said
that the summit focused on how municipalities can
standardise, consolidate and enhance services so
that they are more accessible to a wider range of
municipalities, even with limited budgets. Shared services
can help municipalities save money, work more efficiently
and offer better services to their communities.
PARTNERING IS THE WAY FORWARD FOR SA
South Africa is grappling with major challenges such as unreliable water and
electricity supply and ageing infrastructure, resulting in some municipalities falling
short on service delivery and being placed under administration. The impact of
these challenges on the economy has been profound, stifling growth, hampering
investment and exacerbating inequality.
Public-Private Partnerships (PPPs) must be encouraged to help government fasttrack
its goals of creating robust infrastructure and first-class service delivery. One
of the benefits that PPPs offer government is the ability to access private funding
quickly due to the relative lack of bureaucracy in terms of allocating investments.
PPPs unlock funding for local municipalities as an increasing number of private
sector companies become involved in the municipalities where they operate.
PPPs must also involve civil society. One of the major shifts that happened with
the advent of democracy 30 years ago is that everything related to infrastructure
development has been left to government, with civil society choosing not to get involved.
B20 HIGHLIGHTS NEED FOR DIGITAL ECONOMY SKILLS
Leading professionals at the Business 20
(B20) summit, the official G20 dialogue
forum with the global business community,
recently outlined how South Africa can
achieve a future-ready economy.
Sanlam CEO Paul Hanratty spoke about
how the education and employment
task force was addressing the change
that technology had brought to the job
environment. “We have to look at the
interventions that need to take place,”
said Hanratty. One of these interventions,
he suggested, was bringing down the cost
of data.
Hanratty pointed out that while countries such as Japan, China and South
Korea faced declining populations, Africa and South Africa were seeing strong
population growth.
“At the end of the day, it’s about economics, and when the costs reduce far
enough. If you think about AI, there is nothing new about AI today that we were
not doing 20 or 30 years ago. What has changed is the cost of data storage and
the CPU processing. We’ve got to make people resilient. And it starts right at the
beginning, early childhood, giving people the right foundations, because the world
changes so quickly,” noted Hanratty.
Focus points
Toyota CEO, Andrew Kirby, reflected that South
Africa was “becoming weak in science and maths.
We need a lot more support for robotics and
technology education, especially on the continent.”
Key takeaways on how the B20’s industrialisation
and innovation task force can help, include:
• Creating an environment that stimulates research,
development and entrepreneurship, especially
around green technology.
• Focusing on developing policies and regulations
that enable access to capital and financing for
entrepreneurs and innovators.
•Advocating investments in Stem (science, technology, engineering and
maths) education and skills development to build a pipeline of talent for
industrialisation.
• Promoting initiatives that support women and underrepresented groups
in entrepreneurship.
• Fostering collaboration between industry, academia and government to drive
research, development and commercialisation of new technologies.
• Addressing barriers that hinder inclusive participation in activities.
By Neesa Moodley
Courtesy of Daily Maverick
8 | Service magazine

snippets
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VAT RATE INCREASE
The 2025 Budget tabled by Finance Minister
Enoch Godongwana (12 March 2025) saw the
2% VAT increase proposed in February
2025 replaced by two consecutive 0.5%
increases, bringing the VAT rate to 16% in
the 2026/2027 financial year. The first 0.5%
will be effective from 1 May 2025. Why the
government has opted for a staggered
increase is up for debate. Beyond the clear
need to raise revenue, it may be to ensure
consumer behaviour is not too adversely
affected by the increase in VAT, with 0.5%
making less of an impact financially on
consumers, versus 1%.
It could also be a negotiating position
given the political resistance any increase
in VAT is likely to face, with a single 0.5%
increase possibly where all parties may
land in exchange for concessions.
SUBJECTED SUPPLIES
Specific time of supply rules apply to, inter
alia, supplies between connected persons
(such as a group of companies), credit
agreements subject to the National Credit
Act, rental agreements, constructionrelated
supplies of goods/services, the
progressive or periodic supply of goods,
instalment credit agreements, fringe
benefits and leasehold improvements. All
these special time of supply rules must be
considered in conjunction with the special
rules that apply when VAT is increased
(or decreased).
Section 67A of the VAT Act provides
that in these circumstances, the “old”
rate of 15% will continue to apply to the
goods/services performed prior to 1 May
2025, notwithstanding that those
supplies are in terms of section 9 deemed
to take place after 1 May 2025. Section
67A requires a “fair and reasonable
apportionment” of the consideration for
the supply that straddles the increase
date. This rule applies specifically to
rental agreements, periodic or progressive
supplies and construction-related supplies
of goods/services.
EXISTING AGREEMENTS
The VAT that a vendor is required to
account for on its supplies (output tax) is
recoverable from the recipients of those
supplies if there is a contractual right
to recover such VAT. There is no general
legislative right of recovery, except
where there is a change in the rate of
VAT or fraud or misrepresentation by the
recipient. However, section 67 of the VAT
Act provides that where the rate of VAT
is increased (or decreased) in respect of
a supply of goods/services in relation to
which “any agreement is entered into by
the acceptance of an offer made before
the tax was increased”, the vendor may
recover such additional tax “as an addition
to the amount payable by the recipient
to the vendor”. The vendor may not rely
on the provisions of section 67 if there
is a written agreement to the contrary,
that is, the written agreement specifically
provides that the vendor may not recover
any increase in the VAT rate.
BAD DEBTS
A vendor can claim VAT relief where a debt
relating to a taxable supply in respect
of which the vendor has accounted for
output tax is treated as “irrecoverable”.
The vendor may have accounted for VAT
at 15% in respect of a supply that was made
before 1 May 2025, but the consideration
for the supply is now regarded as
“irrecoverable”. In terms of section
22(1) of the VAT Act the vendor may
only claim relief based on the VAT
rate that applied to that supply (15%).
ZERO-RATED LIST EXPANDS
As part of the government’s measures to
cushion low-income households from the
worst effects of a 2025/2026 VAT increase,
more items have been added to the zerorated
list. By expanding the zero-items
basket, government is forgoing R2-billion in
revenue plus the estimated R23-billion VAT
revenue in relation to the existing zerorated
items.
SONA 2025 IN NUMBERS
ECONOMY AND INFRASTRUCTURE
Five - years for the implementation of the Medium-Term
Development Plan.
Three - government strategic priorities to be advanced by the
Medium-Term Development Plan.
Over 3% - the level of economic growth that government aims
to lift to create the virtuous cycle of investment, growth and jobs.
R100-billion - expected from local and international financial investors.
More than R940-billion - money that government will spend on infrastructure
over the next three years.
R375-billion - money to be spent by state-owned companies on infrastructure.
Nearly R38-billion - value of 12 blended finance projects approved through
the Infrastructure Fund last year.
WATER
R23-billion - money secured by the Infrastructure Fund for seven large water
infrastructure projects.
ENERGY
Over 13-billion - US dollars pledged by the international community to the Just
Energy Transition.
BUSINESS FUNDING AND JOB CREATION
R20-billion - value of a transformation fund a year over the next five years
that will fund black-owned and small business enterprises.
Over 10 000 - persons with disabilities to be empowered by the National Skills
Fund Disabilities Programme.
Almost 2.2-million - work and livelihood opportunities created by the
Presidential Employment Stimulus.
Over 80 000 – jobs created by the Social Employment Fund in 2025.
More than 12 000 - participants supported by the Social Employment Fund to
enter entrepreneurial activities.
TOURISM
Close to 9-million – tourists who visited South Africa last year.
YOUTH EMPOWERMENT
235 000 – work opportunities secured by young people during the past year
through the National Pathway Management Network, which is underpinned by
the SAYouth.mobi platform.
Some 4.5-million – young people registered on the SAYouth.mobi platform.
SOCIAL ASSISTANCE
More than 28-million – people who receive social grants.
More than 10.5-million – learners who go to public schools where they do not
have to pay fees.
Over 900 000 – students who received funding to study at universities and
colleges in 2024.
HOUSING
300 000 – serviced stands to be provided to qualifying beneficiaries to enable
housing development.
RAIL TRANSPORT
More than 80% – passenger rail corridors that have been returned to service.
Over the next five years – period during which government will restore the
Passenger Rail Agency of South Africa’s signalling system.
VISION
Next 30 years – period of a vision for the country to be defined by all South
Africans coming together in the National Dialogue.
Service magazine | 9

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g20
President Cyril Ramaphosa:
South Africa’s G20 priorities
Special address by President Cyril Ramaphosa at the World Economic Forum on South Africa’s
G20 priorities, Davos-Klosters, Switzerland, 21 January 2025.
SSouth Africa’s G20 presidency follows on the heels of Brazil’s very
successful G20 presidency last year and takes place ahead of the G20
presidency of the USA in 2026. As a leading forum for international
economic cooperation, the G20 plays an important role in shaping
and strengthening global architecture and governance on major
international economic issues.
For the first time in its history, the G20 is being hosted on the
African continent following the admission of the African Union
as a member of the G20. This is a moment of great significance
for South Africa, the African continent and the world in that it was
in Africa where humans developed the capacity and the impulse
for cooperation.
Cooperation has been one of the key markers of human
development touching on many aspects of life, from survival and
social organisation to technological and cultural progress, which is
what the G20 was established for. To foster cooperation to deal with
the challenges the world faces. Cooperation: the bedrock of human
civilisation. Without cooperation and collaboration – between
individuals, groups, peoples and nations – humanity cannot progress.
As we confront the challenges of the 21st century – from climate
change to pandemics, from poverty to terrorism, from migration to
artificial intelligence – we are again called upon to harness that most
powerful, and that most enduring, of human attributes: mutually
beneficial cooperation and collaboration. This is a time of rising
geopolitical tensions, unilateralism, nationalism, protectionism,
isolationism, rising debt levels affecting poor countries in the world
and a declining sense of common purpose. Yet, this is a moment when
we should be standing together as a global community to resolve the
problems that confront humanity by ending the wars and conflicts
that are causing such hardship and misery
to many people around the world.
We are called upon by the exigency of
the moment to act together with greater
urgency to halt the destruction of our
planet. This is a moment when we should harness the abundant
resources we collectively possess and the remarkable technologies
that human ingenuity has produced to overcome poverty and
inequality, unemployment, especially youth unemployment and the
abuse of women, once and for all.
Thirty-three years ago, the founding president of democratic
South Africa, Nelson Mandela, spoke here at Davos. He said,
“Our interdependence, bringing us together into a common global
home, across the oceans and the continents, demands that we all
combine to launch a global offensive for development, prosperity
and human survival.”
In pursuit of this objective – and in giving effect to the mission of
the G20 – South Africa will focus its G20 presidency on three themes:
solidarity, equality and sustainable development.
It is South Africa’s firm view that these themes can best be taken
forward through the collective actions of institutions like the G20 and
various multilateral institutions of the world, especially the United
Nations (UN), the WTO and global financial institutions which should
be reformed and be more representative and responsive to the needs
of the citizens of the world.
We will seek to get the G20 to focus more on how we can enhance
solidarity through collective efforts to ensure that in the pursuit
of progress for all, no person and no country is left behind. The
rights and freedoms of one people cannot be separated from the
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S
rights and freedoms of all peoples. This is the foundation on which
solidarity is built. One of the greatest impediments to growth,
development and stability is the persistence of inequality within and
between countries. The pursuit of the UN Sustainable Development
Goal on reducing inequality is as much of an economic imperative
as it is a social imperative.
As the G20, we need deliberate and coordinated efforts to focus
on inclusive growth based on responsive trade and investment to
grow the incomes of poor nations and the poorest in society and
to ensure equal access to opportunities, especially for women and
young people. For nations to flourish, equality and prosperity must
be available to everyone – regardless of gender, race, religious beliefs
or economic status.
In addition to huge gaps in economic capabilities and levels of
human development, countries of the Global South face a lack of
predictable financing for development and climate change, high
levels of debt and vulnerability to pandemics.
Debt sustainability for low-income countries is one of the four
priorities of South Africa’s G20 presidency. In the world we inhabit
today, the pursuit of equality and the practice of solidarity cannot
be separated from sustainable development. We need to meet the
needs of the present without compromising the ability of future
generations to meet their own needs.
It is in the interests of all countries to act with greater urgency to
reduce global emissions – and for industrialised countries to support
the climate actions that poorer countries must necessarily take in line
with and support decisions of UN climate change summits. Another
of South Africa’s priorities for its G20 presidency is to mobilise
finance for a just energy transition.
We will seek agreement on increasing the quality and quantity of
climate finance flows to developing economies as agreed at various
UN climate change summits. We will continue to call on global
financial institutions on the redirection of Special Drawing Rights,
which are left unused. It is simply not fair that over 60% of Special
Drawing Rights go to a handful of wealthy countries. These Drawing
Rights should be redirected to enable countries in Africa and other
parts of the Global South to realise their developmental aspirations –
to enable them to invest in infrastructure, in industrial development,
in education and training and in healthcare.
We need to leverage private capital and use innovative forms of
finance and taxation to raise additional resources for sustainable
development. Global finance institutions should derisk and support
more financing for emerging and developing economies. We need
to support country initiatives aimed at addressing climate change,
such as the Just Energy Transition Partnership that South Africa has
entered with several countries of the Global North.
As we accelerate the transition to low-carbon economies in a
manner that is just and inclusive, we must recognise the damage
that climate change has already wrought. And will continue to
wreak. Considering this, South Africa has made the strengthening of
disaster resilience as another of the priorities of its G20 presidency.
The increasing rate of climate-induced natural disasters is affecting
countries that can least afford the costs of recovery and rebuilding.
To address this, special financing and insurance mechanisms must be
made available to scale up funding for post-disaster reconstruction.
Since the dawn of the industrial age, the benefits to humanity of
economic growth have been achieved at the cost of environmental
destruction. If we are to survive and thrive as humanity, we must
change this. We must pursue development pathways that reconcile
growth with urgent climate action.
Another of South Africa’s priorities for its G20 presidency is to
harness critical minerals for inclusive growth and development. We
need a G20 framework on green industrialisation and investments
to ensure progress towards a grand bargain that promotes value
addition to critical minerals close to the source of extraction.
We also need the development of low-carbon manufacturing
value chains which can support decarbonisation and industrial
development. There is a need to promote beneficiation and local
value addition of resources at source resulting in an additive rather
than an extractive relationship. As minerals extraction accelerates to
match the needs of the energy transition, the countries and local
Cooperation has been
one of the key markers
of human development.
communities endowed with these resources must be the
ones to benefit the most.
We will use this G20 to champion the use of critical
minerals – through a programme of green industrialisation
– as an engine for growth and development in Africa and
the rest of the Global South. As this will be
the first G20 summit held in Africa, it is a
valuable platform to demonstrate Africa’s
Service magazine | 11

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g20
promise. Many agree that Africa is the next frontier of global growth
and productivity. The African continent has an unrivalled natural
resource endowment with the youngest population of all continents.
Africa continues to be an expanding market for goods and
services. The African Continental Free Trade Area (AfCFTA) has the
potential to change the economic and social fortunes of the continent.
We will seek G20 support for the AfCFTA Adjustment Fund that will
enhance inclusive growth, sustainability and regional integration.
We will look to consolidate various G20 initiatives related to
Africa into a flagship agreement for cooperation focused on
implementation of investments in productive sectors in Africa
in areas such as infrastructure. An infrastructure revolution is
propelling Africa’s growth.
We seek investments in the development of skills for Africa’s youth
and the economic empowerment of its women. In the health sector
we would want the G20 to support the production of pharmaceutical
products such as therapeutics and vaccines to deal with pandemics.
The digitisation of the continent to enhance trade and development
is a key enabler. Through its G20 presidency, South Africa is wellpositioned
to advance global cooperation and build partnerships for
growth and development. South Africa has a rich history of inclusive
dialogue and common action.
Over the last few years, the South African government has been
working closely with social partners in business and in labour to
address key national challenges and drive inclusive growth. This
cooperative culture and approach were taken to a higher level with
the establishment of the Government of National Unity (GNU)
following the elections held in May 2024. The GNU, made up of 10
political parties, has been vital to stability and inclusive governance,
and has contributed to greater interest among investors in South
Africa’s economic prospects.
The seeds of human progress were sown in Africa. In Africa, the
earliest forms of cooperation were forged and developed. As the
leaders of the G20 return to Africa, we make a call that we all harness
these essential capabilities that will make us take action to build a
better and fairer world.
Acting together, we should build an inclusive, just and equal world
in which all may prosper, leaving no one and no country behind. S
The rights and freedoms
of one people cannot
be separated from the
rights and freedoms of
all peoples.
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South Africa’s collective approach to
the G20 presidency
The disparity between the haves and have-nots calls for a collaborative approach that brings
everyone together in a united effort to tackle the global challenges that impact all mankind.
OOur country is known to bring people together
towards finding solutions that benefits all. Our
history shows that we are a nation that finds each
other even against insurmountable odds. Not even
the malignant apartheid system could prevent the
unrelenting march of South Africans to democracy,
freedom and reconciliation. We succeeded in
defeating one of history’s most evil systems despite
predictions by some that we would fail.
Since the birth of our democracy in 1994, we
have worked to advance our society and though
there have been challenges, we have faced them
together, secure in the knowledge that South
Africans always find a way. We believe therefore
that we have a lot to offer the nations of the world
as South Africans. Our solutions are rooted in
the spirit of ubuntu, solidarity, peace, equality,
justice and fairness. While these have not
always found traction in a polarised world, it is clear
the world is in search for new ways to deal with
pressing challenges.
Over the course of our G20 presidency, our
country will foster collaboration among G20
members and wider society to address pressing
global issues and find sustainable solutions that
prioritise the wellbeing of all people. Our approach
has therefore inspired our G20 presidency theme of
“Solidarity, Equality, Sustainability”.
We are driving an inclusive approach because we
understand that decisions taken by the G20 have
a direct impact on the lives of all members of the
global community. G20 members together account
for around 85% of global gross domestic product
and 75% of international trade.
As we work together with G20 members and build
partnerships across society, we seek to harness our
collective capabilities towards more rapid, inclusive
and economic growth. Through our joint effort we
can build a more just and equal world as well as avert
the worst effects of climate change.
South Africa will ensure a broad-church approach
in our G20 presidency by expanding dialogues
with international organisations and civil society
so that we can collectively shape how the G20
addresses pertinent issues. We see the participation
of civil society as part of our overall commitment
to work towards a broader and more inclusive
G20 presidency.
In this regard, we will convene engagement groups
of business, labour, civil society, parliamentary bodies,
the judiciary, science bodies, think tanks, audit
institutions, institutions of higher learning and
specific groups for women, youth and the vulnerable.
These groups will undertake their own independent
processes to form opinions on issues that impact
them and wider society.
South Africa also intends to support the creation
of a new engagement group, the Township20, or
TS20. This will highlight the creative, cultural,
financial and innovative capacities of South Africa’s
township economies. We will also follow the
approach of the Brazilian presidency on the G20
Social Forum that brought together representatives
of the existing engagement groups and other
segments of civil society.
South Africa firmly believes that civil society serves
as a bridge between the G20 leaders and the people
who have the greatest interest in their deliberations.
Moreover, their experience and grassroots knowledge
will greatly enrich the G20’s collective discussions and
policy decisions.
The recommendations by engagement groups
will be presented to foreign ministers at the finance
and central bank ministerial meetings. We also
expect their recommendations from their extensive
consultations to be presented to the Leaders’ Summit
in November 2025.
Our approach ensures we take on board different
perspectives, including those which may not be
ideologically aligned to ours, to confer greater
legitimacy to the G20 as an organisation and to the
outcomes of the Leaders’ Summit in 2025. S
*Dr Ntombifuthi Nala is Acting Chief Director: Research
Analysis and Knowledge Services at GCIS.
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health
WHO in Africa:
Trump’s decision to pull out
President Donald Trump’s decision to withdraw the US from the World Health Organization will be keenly felt across the
globe, with profound implications for health in Africa.
I
In the executive order putting the withdrawal process in place,
Trump also paused the transfer of US funds, support and resources
to the World Health Organization (WHO). Trump’s executive order
is his second attempt to pull the US out of the agency. He has also
complained that the US financial contribution to the international
organisation is “onerous”. The biggest impacts will come from the
loss of US funding. The US is by far the WHO’s largest state donor,
contributing approximately 18% of the agency’s total funding.
The WHO’s funding is split into two tranches
There are assessed contributions: countries’ membership fees, to
which all WHO members agree and over which the WHO has full
control. The US accounts for 22%, or US$264-million of these,
for the current 2024/25 budget. The US is yet to pay the WHO its
assessed contributions for 2024 and 2025. Withdrawing from the
organisation without paying these fees would violate US law and
must be challenged in the US courts. Then there are voluntary
contributions: donations by member countries, foundations and
other sources, usually earmarked to that donor’s priorities. The US
contributes 16%, or US$442-million, of all voluntary contributions.
In the case of the US, these priorities include HIV/Aids, polio
eradication and health emergencies.
The US withdrawal from the WHO threatens core health
programmes in Africa. It will weaken the ability of African countries
to respond to health emergencies and could lead to increases in death
and illness on the continent. It will also have broader implications for
leadership and governance in global health.
Core programmes
Trump’s decision to withdraw comes at a time when the WHO’s
health priorities in Africa were already underfunded. Eight of 12
areas were funded less than 50% earlier this year. Twenty-seven
percent of all US funding through the WHO for the African region
goes to polio eradication, 20% supports improved access to quality
essential health services and much of the balance goes to pandemic
preparedness and response. The WHO/US partnership has long
supported the HIV/Aids response in Africa, but the redirection
and reduction in funds could reduce the availability of prevention,
testing and treatment programmes across the continent. This
threatens progress to end Aids by 2030.
The funding gap will also have an impact on programmes
designed to increase access to quality essential health services,
including the prevention and treatment of tuberculosis and malaria
as well as child and maternal health services. If the WHO is forced to
cut back on these services due to a lack of financing, it could lead to
increases in mortality and morbidity in Africa. European countries
filled the financing gap in 2020 when Trump last withheld US
funding from the WHO. But it is unlikely that they will be able to do
so again, as countries across Europe are facing their own geopolitical
and financial challenges.
The WHO’s budget was already thinly spread, and its mandate
keeps growing. Through its new investment round, the WHO raised
US$1.7-billion in pledges, and is expecting another US$2.1-billion
through partnerships and other agreements. Yet even before the US
president’s executive order, this left a funding gap of approximately
US$3.3-billion (47%) for the WHO’s 2025-2028 strategy. If the gap
left by the loss of US funding cannot be filled from other sources, it
will fall to African nations to fund health programmes and services
that are cut, placing a greater strain on governments reckoning with
limited fiscal space.
Weakened response
Trump’s decision comes at a pivotal moment for health in Africa,
which is experiencing major outbreaks. The US has been a key
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Article courtesy of The Conversation
actor supporting WHO-led emergency responses to outbreaks. In
August 2024, the WHO and Africa Centres for Disease Control and
Prevention (Africa CDC) each declared mpox on the continent to
be a public health emergency. The Biden administration delivered
60 000 vaccines, pledged one-million more, and contributed over
US$22-million to support capacity building and vaccination.
But now US health officials have been instructed to immediately
stop working with the WHO, preventing US teams in Africa from
responding to mpox.
Even before these outbreaks, the US supported WHO-led
emergency responses to Covid-19, Ebola and HIV/Aids. The US
withdrawal could lead to increased transmission, sickness and
death in vulnerable regions. Similarly, strong partnership between
the WHO and the US has helped build health system capacities in
Africa for public health emergencies. US experts have supported
nearly half of all WHO joint external evaluation missions to assess
countries’ pandemic preparedness and response capacities under
the International Health Regulations. This is a binding WHO
agreement to help countries prepare for, detect and initially respond
to health emergencies globally.
The US departure from the WHO
will create a leadership vacuum.
The US withdrawal from the WHO risks eroding these efforts,
though it may also accelerate a regionalisation of health security
already underway in Africa, led by the African Union through the
Africa CDC.
Restructuring of governance
The US was instrumental in establishing the WHO and shaping
WHO norms and standards, in particular driving amendments to
the International Health Regulations adopted in June 2024. This
included improved obligations to facilitate the rapid sharing of
information between the WHO and countries. The US has also been
a key figure in ongoing negotiations for a new international treaty, a
Pandemic Agreement. This would create new rights and obligations
to prevent, prepare for and respond to pandemics with elements
that go beyond the International Health Regulations. These include
obligations on the equitable sharing of vaccines.
Trump’s executive order would prevent these instruments from
being implemented or enforced in the US. This would only entrench
inequitable dynamics when the next global health emergency breaks
out, given the concentration of global pharmaceutical companies in
the US. The order also pulls the US out of the Pandemic Agreement
negotiations. This will inevitably create new diplomatic dynamics.
Optimistically, this could provide enhanced opportunities for
African nations to strengthen their position on equity.
The US departure from the WHO will create a leadership vacuum,
ushering in a restructuring of power and alliances for global health.
This vacuum could cede influence on US adversaries, opening the
door to even greater Chinese influence on the African continent.
But it also presents opportunities for greater African leadership in
global health, which could strengthen African self-reliance. Trump
has directed the US to find “credible and transparent” partners to
assume the activities the WHO would have performed. And yet there
is no substitute for the WHO, with its worldwide reach and stature.
For more than 75 years, the WHO has been, and remains, the
only global health organisation with the membership, authority,
expertise and credibility to protect and promote health for the
world’s population. For this reason, the African Union, among scores
of other bodies and leaders, has already urged Trump to reconsider.
It is now time for the global community to stand up for the WHO
and ensure its vital health work in Africa and beyond can thrive. S
* Lawrence O Gostin is university professor, Linda D and Timothy J O’Neill
are professors of global health law, Georgetown University and Alexandra
Finch is senior associate at the O’Neill Institute for National and Global
Health Law and adjunct professor of law at Georgetown University.
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climate
SA welcomes COP29 outcomes
The Minister of Forestry, Fisheries and the Environment, Dr Dion George, has welcomed the outcomes of the United
Nations Framework Convention on Climate Change (UNFCCC) 29th Conference of the Parties (COP29) that was
concluded in November 2024, in Baku, Azerbaijan.
F
Following an intense two weeks of consultations and negotiations,
parties adopted the Baku Climate Unity Pact consisting of a
New Collective Quantified Goal on climate finance, Global
Goal on Adaptation and Sharm el-Sheikh Mitigation Ambition
and Implementation Work Programme as well as the key
decisions on implementing the Paris Agreement’s article
6.2 and 6.4. The adoption of article 6.2 and 6.4 decisions on
carbon markets will allow South Africa and other developing
economy countries to initiate new carbon market projects which
will facilitate investments in green technologies and economic
opportunities.
Going into the negotiations, Minister George, who was also
the leader of the South African delegation, was optimistic that
parties would take meaningful decisions towards quantifying
resources for developing economy countries to meet ambitious
climate targets. “There have been complaints from other
parties about the leadership of the COP29 presidency and that
the decisions were not reached through full consensus. However,
for South Africa, the decisions that were adopted are a win.
While we understand the frustration expressed by some parties,
we do see the outcomes as a significant step in the right direction
as it is more than what we had going into the negotiations and we
can now build on that,” said Minister George.
Regarding the new finance goal, the developed
economy countries have committed to mobilising at least
USD300-billion per year by 2035 for developing economy
countries for climate action. The agreement also provides
signals to private sector and multilateral development banks
to scale up financing to developing economy countries to
USD1.3-trillion per year by 2035.
“The decision underscores the importance of reforming the
multilateral financial architecture, to make it fit-for-purpose
to address the climate crisis. It also calls for scaled up support
for climate action from multilateral financial institutions
through grant-based and concessional financing,” said
Maesela Kekana, chief negotiator, deputy director general for
climate change and air quality management at the Department
of Forestry, Fisheries and the Environment.
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climate
S
The climate financing bid
How much money were African countries aiming to secure?
The African bloc of government leaders went into COP29 with a finance
demand of US$1.3-trillion per year to be provided to developing
countries, including African countries, by developed nations from 2025.
The figure of US$1.3-trillion per year was based on research conducted
by independent experts tasked by the COP26 and COP27 presidencies.
What was achieved?
Developed and developing countries reluctantly agreed to set a new
collective quantified goal on climate finance of at least US$300-billion
per year by 2035 for all developing countries. Developed countries took
the lead to provide and mobilise climate finance from public and private,
bilateral and multilateral finance institutions. The agreement also stated
that other more affluent global south countries such as China, Singapore
and Brazil were encouraged to contribute to this new yearly target.
A second target called on all actors – ranging from governments to
private bankers – to scale up all sources of public and private climate
finance to at least US$1.3-trillion per year by 2035.
What were the major problems for African countries at COP29?
The main issue is that the US$300-billion per year falls far short of
what is required for Africa to begin to cope with climate change and
extreme weather disasters. For example, if inflation were to average
5% per year across the continent over the next 10 years, then by
2035 the US$300-billion per year would only amount to US$175-billion
in today’s terms. It is not clear how much of the US$300-billion per year
will be from interest-free loans or grants that don’t need to be repaid.
Kekana explained that it further underscores the
need to reduce barriers and address disenablers faced
by developing economy countries such as limited fiscal
space, high levels of debts and high cost of capital to
prevent such barriers and disenablers from becoming
conditionalities for access by developing economy
countries to climate finance.
For South Africa, the decisions
that were adopted are a win.
On adaptation, parties are on track to finalise
the work on the adaptation indicators to track
progress in the implementation of the global goal
on adaptation, at COP30 in Brazil in 2025.
The conference also welcomed
the rapid institutionalisation
of the loss and damage fund.
Under the leadership of South
Africa and France, the fund is
expected to disburse funds to
climate vulnerable communities
What needs to happen next?
COP29 established the “road to Belém” initiative, so climate finance
will continue to be discussed at COP30 in Belém, Brazil, in November
2025. African countries need to negotiate better deals with countries
on a state-to-state level and link those negotiations with multilateral
negotiations such as COP30.
For example, the global north is seeking critical energy transition
minerals in Africa through the Minerals Security Partnership. They are
willing to invest billions for access to Africa’s minerals. But they are not
willing to give African countries the climate change adaptation finance
they ask for at COP meetings.
Therefore, Africa should withhold minerals such as copper, lithium
and graphite that are necessary for the energy
transition if finance for climate adaptation is not
forthcoming. This way, the COP events will stop
being talk shops and become the action-based
discussions that are necessary to avert further
climate disaster.
By Kudakwashe Manjonjo, PhD Candidate:
Southern Centre for Inequality Studies, University
of the Witwatersrand.
Article courtesy The Conversation
in mid-2025. S Service magazine | 17

A hot and troubled world of work:
SA’s bold new climate
Increased average temperatures, climate variability and extreme weather events are taking a toll on the environment
and disproportionately affecting the lives and livelihoods of vulnerable communities. This is intensifying challenges in
the world of work.
By Debbie Collier*
WWorking on a warmer planet increases health and safety risks and
affects workers’ well-being and productivity. These risks are a challenge
for employment, labour standards and the creation of decent work.
Temperatures in South Africa are rising faster than the global
average. And finding ways to adapt to climate change and navigate
its challenges is becoming increasingly urgent. These challenges
are compounded by the disruptions of an energy transition. South
Africa also has high levels of inequality and unemployment.
South Africa, one of the largest (CO2) emitters in Africa, has
committed to reducing its emissions with the aim of reaching
net zero emissions by 2050. But how does the country balance
the need to cut carbon emissions while protecting an already
vulnerable working population during the energy transition?
Enabling a just transition is a focus for the constituencies of
the National Economic Development and Labour Council. The
council is South Africa’s national social dialogue institution.
It consists of representatives from the state, organised labour,
organised business and community organisations. The council’s
Labour Market Chamber has been working on how best to
integrate principles of labour and environmental justice. And how
labour laws can be used to support a just energy transition.
The University of the Western Cape’s Centre for Transformative
Regulation of Work, of which I am the director, has supported
the council and its social partners in labour law reform processes.
The aim is to ensure that labour laws and policy are responsive to
the changing world of work and are “fit-for-purpose” in the just
transition era.
Two priorities are to implement the Climate Change Act as
envisaged and to develop labour law to support a just transition.
THE CLIMATE CHANGE ACT
The Climate Change Act 22 of 2024 incorporates the goal of
decent work within a commitment to a just transition. The act,
which will take effect on a date yet to be determined, defines a
just transition as, “a shift towards a low-carbon, climate-resilient
economy and society and ecologically sustainable economies and
societies which contribute toward the creation of decent work for
all, social inclusion and the eradication of poverty”.
The act is ambitious in its scope and leaves no part of society
untouched. It aims to restructure the economy from one dependent
on fossil fuels to a low-carbon economy, at the same time contributing
to decent work and an inclusive society.
New institutional arrangements are envisaged, and existing
institutions are expected to adapt. Relevant state actors must “review
and, if necessary, revise, amend, coordinate and harmonise their
policies, laws, measures, programmes and decisions” to “give effect
to the principles and objects” of the act.
The act provides impetus for change and an opportunity to
revisit the country’s labour law and industrial relations landscape.
LABOUR LAW IN A JUST TRANSITION ERA
South Africa’s labour law promotes both collective bargaining
and employee consultation processes – the “dual channels” for
engagement. However, industrial relations are typically characterised
by adversarial bargaining over wages and economic distribution.
This approach falls short of the nuanced and collaborative processes
needed to navigate a just transition. The first step requires a shift
from familiar, adversarial patterns of engagement. The energy
transition and adaptation to climate change may have significant
implications for job security and employment. These include:
• Using new technologies that affect workplace restructuring.
• Changes in the organisation of work or work methods.
• The discontinuation of operations, either wholly or in part.
The framework for constructive engagement on such
developments includes institutions and mechanisms at workplace,
sector and national levels. Workplace forums are voluntary
institutions introduced in the Labour Relations Act 66 of 1994 to
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labour
S
ensure that workers are consulted and have a voice in decisions
that affect them. Unfortunately, the uptake of workplace forums
has been limited.
Industry and sector institutions include bargaining councils and
the Sector Education and Training Authorities. These should be
developed into spaces for consultation on measures to support
a just transition and coordination of skills development and
industrial policy.
Nationally, Nedlac is the apex social dialogue institution. There’s
also the Presidential Climate Commission which was established
by President Cyril Ramaphosa to oversee and facilitate a just
transition. The commission is regulated by the Climate Change
Act. It plays a critical role in steering just transition policy
processes and building consensus on regulatory developments.
Adaptation to climate change should
be at the forefront of the collective
efforts of all South Africans.
MIND THE GAP
Labour law has limited scope to address environmental
degradation or the concerns of communities. To plug this gap,
programmes that integrate rights, policies and services for workers
and communities affected by the energy transition should be
considered. For example, the framework for social and labour
plans in the mining sector could be augmented to support a just
transition. Labour law functions and mechanisms that support
a just transition may need to be strengthened. Key areas for
improvement include:
• The framework and ecosystem for skills development to prepare
workers for job transitions.
• Occupational health and safety and labour standards for the
protection of workers in conditions of increased heat and
extreme weather events.
• The scope, application and objectives of social security schemes
and social protection for workers affected by the transition to a
low-carbon economy.
Article courtesy of The Conversation
Other steps towards a just transition include:
• Policy coherence and co-ordination at multiple levels, including
all levels of government, businesses, labour and communities.
• Capacitation of local government to support communities and
the creation of decent work.
Environmentally sustainable practices must be a priority in all
workplaces. Consultation and coordinated responses should not
be limited to workplaces, sectors and industries that are directly
affected, such as the coal mining sector.
Adaptation to climate change should be at the forefront of the
collective efforts of all South Africans. Perhaps even more so in
higher education institutions, where the responsibility to educate,
innovate and lead by example is paramount. South Africa’s climate
change law envisages a pathway to social inclusion and decent
work. Its labour laws provide critical tools for the transition. S
*Debbie Collier, Shane Godfrey, Vincent Oniga and Abigail Osiki
co-authored the Nedlac report, Optimising labour law for a just
transition (2024).
Service magazine | 19

S
water
South Africa’s scarce water needs
careful management
South Africa is a water-scarce country, the 30th driest in the world. Using water wisely will become more important as the
population grows and droughts related to climate change increase. Study finds smaller, local systems offer more benefits.
By Saul Ngarava
A
Agricultural economist, Saul Ngarava, studied 1 184 homes in South
Africa’s North West, Northern Cape and Eastern Cape provinces to
see which types of water governance resulted in better water, energy
and food security. He found that the best results were achieved where
water was governed democratically by different types of organisations
working together.
How is water governed in South Africa?
Water governance is driven by the Constitution, which says, “Everyone
has the right to have access to sufficient food and water”, and which
gives different water management responsibilities to different levels
of government.
At one end of the spectrum, national government manages
all water resources. At the other end, local government takes care
of supplying clean water to households and disposing of sewage
and wastewater.
The National Water Act of 1998 is charged with managing
South Africa’s scarce water resources through different local level
institutions. These are catchment management agencies, water user
associations, international engagement bodies and the Water Tribunal.
The Water Services Act of 1997 says how these institutions should
make sure that everyone has access to basic water and sanitation.
Why do governance arrangements matter?
Water supports development and can help with creating jobs and
eliminating poverty. It is essential in national planning and therefore
it is vital that it is managed properly. In South Africa, there are
different water governance arrangements: bottom-up and top-down.
The two I have researched are the water user association and the
catchment partnership.
There are 43 water user associations in South Africa – formal,
top-down associations of individual water users. An example is a
large-scale irrigation scheme that provides water to commercial,
emerging and small-scale farmers and their local towns and
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S
Article courtesy of The Conversation
villages in major agricultural areas. I researched the Vaalharts
Water User Association, which covers the farming areas of Taung
and Magareng, stretching across the North West and Northern
Cape provinces.
Water user associations usually have a lot of infrastructure. This
can include 100km-long irrigation canals and pipelines. They’re
mainly centred on commercial farmers who use this common
irrigation system, and although they deliver water to all homes in
the farming area, they are largely dictated to by farmers.
A catchment partnership is a ground-up, informal voluntary
collaboration between multiple organisations with shared interests.
I researched the Umzimvubu Catchment Partnership in Matatiele
in the Eastern Cape province. It is made up of more than 30
organisations including the local municipality, the non-profit
Environmental Rural Solutions, the provincial forestry department
and the South African National Biodiversity Institute, an academic
research institute.
These organisations work together to build social capital – the
resources linked to a network of relationships. The network is a
convergence of indigenous knowledge, expertise and data aimed
at empowering all the participants to take equal ownership of the
water governance arrangement.
Catchment partnerships usually serve only a smaller area and
everyone who lives within it. They often aim to conserve a river
system and its catchment area so that the water can be used for
local job creation and economic growth. They don’t have as much
expensive water infrastructure and they rely on natural benefits –
water from natural springs, food from wild fruit or fuelwood that
is used for cooking.
Are these arrangements unique to South Africa?
Water user associations and catchment partnerships are not
unique to South Africa. England, Scotland, Tanzania, Nepal and
Indonesia, among others, also have them. In these countries, water
user associations and catchment partnerships have resulted in water
management by a wide range of organisations, and they face many
of the same issues.
What problems can arise in water governance?
Water user associations such as Vaalharts Water User Association
take more time to make decisions. Technical experts in finance,
human resources, engineering and others need to be consulted,
along with subcommittees who add their voices, and even the
government’s Department of Water and Sanitation. This means that
infrastructure maintenance and agreements on how to distribute
water fairly among the farmers, industry, towns and communities
can be slow or not happen at all.
In catchment partnerships such as the Umzimvubu catchment
partnership, grassroots and local organisations aim to work together
to reach consensus. This makes decision-making faster, easier and
more effective. However, they lack funding, mostly because they are
made up of organisations without large funding bases. Sometimes,
their member organisations take care of their own water needs first
before considering the partnership.
Water supports development and
can help with creating jobs and
eliminating poverty.
Water, energy and food security
My research found that the Vaalharts Water User Association
focused solely on water security. But this mainly benefited the
commercial farmers who grow cash crops such as pecan nuts,
lucerne, groundnuts, wheat, citrus and grapes.
My research found that people living in the Umzimvubu
catchment partnership have more water, energy and food
security overall. For example, the households I studied in the
Umzimvubu catchment partnership were able to supplement their
water supply with clean drinking water from a spring that the
catchment partnership had restored and protected. The catchment
partnership also tested the quality of the water and set up tanks to
store it, providing clean, free, drinking water to over 700 people.
A limited amount of water was also available for their livestock.
This improved the food security of homes in the Umzimvubu
catchment partnership area. Free water meant the families had
more money to buy electricity.
The catchment partnership had projects to clear away invasive
trees which drain local water supplies. This helps rejuvenate
the natural grasslands, where livestock graze. This creates more
food security.
What changes do you propose, and why?
The South African government wants to establish more high-level
water governance structures such as water user associations. Based
on my research comparing the Vaalharts Water User Association and
Umzimvubu catchment partnership, this is the wrong approach.
Top-down structures that restrict broad participation, and increase
bureaucracy and corruption, might not be able to provide the water,
energy and food security that South Africa needs. An effective
change would be to disband water user associations and replace
them with catchment partnerships. S
Service magazine | 21

S
water
Water infrastructure and equipment
maintenance: a strategic necessity
Proper maintenance of infrastructure and equipment is essential to prolong the usable life of these assets. With the right
strategic approach, it also becomes a cost-effective solution.
As municipalities face challenging economic times, they are required
to get more out of their water infrastructure and equipment. By
extending replacement cycles for pumps, filters, mixers and other
components, the costs of replacements are deferred. However,
without regular maintenance, this approach can backfire – leading
to underperformance, breakdowns and eventually, expensive
catastrophic failures that will necessitate replacement.
“With water systems, under-maintenance invites trouble, but
unnecessary scheduled maintenance has its own drawbacks. The key
is to strike a balance that ensures both longevity and cost-efficiency,”
says Chetan Mistry, strategy and marketing manager at Xylem Africa.
This balance is why more private and public water system managers
are turning to preventative maintenance agreements (PMAs).
Poor maintenance practices
guarantee failures and reduce the life
of equipment.
The maintenance conundrum
Water infrastructure and equipment require regular upkeep. For
instance, filters and tanks may need annual inspections, while other
components, though durable for several years, benefit from frequent
checks. General inspections are also critical to discovering emerging
issues such as leaks or component wear.
Despite its importance, maintenance is often seen as a grudge
purchase. It involves costs, disruptions and logistical headaches. Many
site managers adopt an “if it’s not broken don’t fix it” attitude towards
maintenance to avoid these difficulties,which ultimately proves costly.
Poor maintenance practices guarantee failures and reduce the
life of equipment. According to the Water Research Council, annual
maintenance of infrastructure like pipelines or pump stations can
cost less than 1% of their replacement value. By contrast, poor
maintenance can reduce a pump’s lifespan by 30% to 50%. The
cost of failure extends far beyond the direct cost of repair and
replacement of equipment and includes secondary impacts, such as
contamination and service interruptions. Underperforming water
systems pose significant risks, especially in industrial settings. For
example, low water pressure can compromise fire prevention and
failed dewatering systems can endanger fragile areas.
A suitable maintenance strategy needs to be adopted to ensure
cost-effective, reliable operations. The shift away from reactive
maintenance (operate to fail) to condition-based maintenance
provides owners of water infrastructure and pumping equipment an
opportunity to reduce maintenance costs while extending the usable
lifespan of their assets efficiently.
Implementing such systems with limited resources and expertise
can become overwhelming. This is where PMAs stand out.
How PMAs reduce costs and improve reliability
A PMA is a supplier-managed solution that provides structured,
cost-effective maintenance. A well-designed PMA offers numerous
benefits, including:
• Predictable maintenance budgets
• Detailed equipment status reports after each inspection
• Priority service from authorised technicians
• 24-hour emergency response guarantees
• Unlimited telephone support
• Extended warranty protection for equipment
Original equipment manufacturers (OEMs) are uniquely positioned
to deliver high-value PMAs. By auditing a site’s equipment and
tailoring maintenance plans to its budget and scope, OEMs can offer
solutions that meet both operational and financial needs.
PMAs save costs in three key ways:
• Proactive issue resolution. By addressing potential problems
early and using OEM replacement parts, PMAs reduce the
likelihood of failures.
• Fewer site visits. With lower failure rates, inspection intervals are
tailored to the equipment in use and the specific site conditions.
• Access to skilled technicians. PMA clients benefit from expert
technicians who complete tasks efficiently, without incurring
additional costs for critical repairs or advanced workshop services.
“Maintenance is resource-intensive, requiring staff, money and time,”
explains Mistry. “While some tasks can be handled by on-site teams,
they often have competing priorities. Unexpected or critical repairs
can become prohibitively expensive. A PMA alleviates this burden,
providing predictable costs and ensuring equipment up-time.”
Leading OEMs have the expertise and resources to service thirdparty
equipment. This flexibility ensures that all systems on-site
remain productive, allowing staff to focus on other priorities while
managers maintain cost predictability and up-time.
Conclusion
A well-designed preventative maintenance agreement delivers
value by ensuring water infrastructure and equipment remains
reliable and cost-effective. By planning for maintenance rather than
reacting to failures, municipalities can navigate economic challenges
with confidence, extending the life of their assets and avoiding
costly disruptions and service delivery challenges. When it comes to
maintaining water systems, the right PMA ensures equipment keeps
doing its job – efficiently, reliably, and within budget. S
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S
Securing SA’s water future:
Securing SA’s water future:
why skills matter more than ever
South Africa’s water sector faces mounting challenges. Climate change, ageing infrastructure and rising demand are
straining resources. But fixing the problem isn’t just about upgrading infrastructure – it’s about ensuring we have skilled
professionals to manage and sustain it.
The Energy and Water Sector Education and Training Authority
(EWSETA) is committed to developing a skilled workforce to tackle
these issues. Through training programmes, industry partnerships and
regulatory alignment, we aim to close the skills gap and to ensure that
water security is a priority, not a privilege.
Why skills matter in the water sector
South Africa’s National Water and Sanitation Master Plan warns of
a 17% water shortfall by 2030 if urgent action isn’t taken. The issue
extends beyond water availability – it’s about management. Skilled
professionals are essential for water conservation, distribution and
technological advancements to prevent waste and inefficiencies.
Currently, the country loses over R7-billion annually due to leaks and
infrastructure failures. Many municipalities struggle with a shortage
of trained water professionals, and inefficient agricultural water use
exacerbates the problem. Technology, from AI-driven leak detection to
smart water systems, presents solutions, but without trained specialists,
implementation remains a challenge.
Regulation 3630: a roadmap for water security
Government’s Regulation 3630 outlines four key principles for
sustainable water management. EWSETA aligns its skills programmes
with these priorities, ensuring professionals are trained in conservation,
distribution and emerging technologies.
To stay competitive, South Africa must embrace AI-driven solutions
and digital water monitoring. Collaboration between government,
industry and education is crucial to developing a pipeline of skilled
professionals and maintaining workforce capacity.
Business and industry: the case for investment in skills
For industries reliant on water, addressing the skills gap is a necessity.
Well-trained professionals can reduce operational costs and cut
water losses by up to 20%, saving billions. Companies must invest in
AI-driven water management training to remain competitive and fulfil
ESG commitments.
Businesses can partner with EWSETA to develop tailored training
programmes, offer internships and collaborate on water-saving
technologies. These efforts not only benefit companies but also
reinforce South Africa’s position in sustainable water management.
structured apprenticeships are scarce. Additionally, limited research
funding hinders innovative water solutions.
EWSETA is addressing these gaps through initiatives like the
PoVE Water Management Project with Stellenbosch University, which
updates curricula to meet industry needs. Municipal water training
programmes equip TVET graduates with practical skills, while
bursary and apprenticeship schemes create career pathways for young
professionals, especially women in water science and engineering.
Universities and colleges can further strengthen these efforts
by working with EWSETA to develop new qualifications, expand
apprenticeship opportunities and engage in industry-driven research.
Government and municipalities: building capacity
Municipalities play a frontline role in water management but often lack
skilled personnel. Without investment in training, South Africa faces
an escalating water crisis. EWSETA ensures its programmes align with
national policies, including the National Water and Sanitation Master
Plan, which calls for 15 000 more skilled water professionals by 2030.
The National Development Plan prioritises infrastructure
development, while the green economy strategy underscores expertise
in sustainable water solutions. Government can support these goals
by expanding municipal training programmes with EWSETA,
introducing policy incentives for private sector investment in water
skills, and funding research to enhance service delivery.
A call to action: building a water-secure future together
Water security is everyone’s responsibility. The steps we take today in
training and education will determine South Africa’s water future.
Industry leaders must invest in skills development, academia should
collaborate with EWSETA on advanced training and government must
prioritise workforce training.
National Water Month is about more than awareness – it’s about
action. The time to invest in skills is now. S
Universities and TVET colleges: strengthening the talent pipeline
Academia must play a larger role in addressing skills shortages. Digital
water management remains underrepresented in curricula and
Service magazine | 23

S
environment
The circular
economy’s
promise to
reduce landfills
and avert disaster
In a world marred by shortages, rapidly depleting natural
resources and mounting landfill waste, South Africa
could grow increasingly dependent on circular economy
systems soon as companies grapple to satisfy growing
consumer demand.
W
While the global circular economy market is valued at over
R550-billion, as per an analysis by Spherical Insights, South Africa
is severely lagging the rest of the world. According to the Council
for Scientific and Industrial Research (CSIR), the country has a
socioeconomic cycling rate of only 2%, indicating an alarmingly low
rate of recycling and reuse of materials throughout the economy. It’s
estimated that about 90% of waste ends up at landfills instead of being
reintegrated into production processes.
Patricia Schröder, president of the Institute of Waste Management
of Southern Africa (IWMSA), warns, “We are stuck in a cycle of
managing waste and dealing with overburdened landfill sites. The
answer to South Africa’s waste challenges is not waste management, but
rather waste minimisation. The most effective way forward is to bring
more companies of every size into the circular economy and reduce the
amount of waste we dump on our landfills.”
What is the circular economy?
In a perfectly circular economy, all materials are fully utilised through
various stages in the production process, with no waste being created.
“This is more the ideal, rather than what’s plausibly achievable under
real-world conditions. Most materials degrade in quality and, thus,
usability over time, and some modern products have many layers of
tightly integrated materials that would require large amounts of energy
to separate and recycle properly,” explains Schröder. But, she believes,
just because something is complex and imperfect doesn’t mean society
shouldn’t work to be better every day. The goal is rather a near-circular
economy, which companies can help drive by implementing circular
strategies into their operations and encouraging the same throughout
their supply chain.
IWMSA recommends that businesses minimise waste by, first,
reducing the resources needed in the production process and limiting
surpluses. Then, use any remaining material in other aspects of the
production process. What can’t be reused, needs to be recycled following
the correct recycling protocols.
From there, waste management sector participants may be able to
reclaim some material to make other products, and waste that can be
used as fuel should be utilised to generate electricity. Only after each of
these avenues has been exhausted should any remaining waste be sent
to a landfill.
To close the production loop and significantly reduce waste,
companies can improve product designs to reduce the resources
required, extend lifespans, make them easily repairable and improve
recyclability. Additional closed-loop recycling systems can be introduced
that, for example, chemically break down plastics for reuse in highquality
applications, or recover metals like aluminium and steel for reuse.
Companies also need to make use of biodegradable materials like
bioplastics or natural fibres where possible and utilise renewable energy
in production and recycling processes to further limit negative impacts
on the environment.
Industry trends and challenges
To ultimately achieve an acceptable level of circular economy
implementation in South Africa, Schröder lists several critical barriers
that urgently need to be overcome in the next few years.
Having grown by over 835 000 people within the space of a year,
South Africa’s population exceeded 63-million in July 2024, with life
expectancy having risen by nearly 13 years over the past two decades.
Larger populations that live longer have significant benefits for the
economy but also place considerable strain on resources and create
more waste.
According to Schröder, limited funding for essential waste services
across the country further compounds the issue, since many areas simply
lack the resources to implement modern and efficient disposal methods
or to invest in cutting-edge recycling technologies. Moreover, without
sufficient funding, municipal collection points often fail to separate
recyclable materials efficiently, leaving smaller businesses with limited
options and larger companies to pay for expensive private contractors.
Lastly, businesses eager to incorporate secondary raw materials
into their production processes discover that the supply of recycled
or reclaimed inputs is either unreliable or prohibitively expensive,
dampening their willingness to make long-term commitments to
sustainable practices.
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S
Patricia Schröder,
IWMSA President.
“While industries are capable and often willing to take on the bulk
of the work to drive forward circular economy initiatives, the overall
responsibility ultimately rests on everyone’s shoulders. This includes
waste management agencies, government, individual municipalities
and the everyday person who uses the products. If we want to reach
our country’s sustainability goals in the coming years, and avoid a
landfill crisis, we need to work together to find a better way forward,”
concludes Schröder. S
HOW MUNICIPALITIES CAN TURN ORGANIC WASTE INTO A RESOURCE
Up to 40% of all landfilled waste takes up unnecessary space, as it
is both organic and biodegradable. This so-called “organic waste”,
which includes food, garden and agricultural waste, makes up a
significant portion of municipal solid waste in South Africa.
“This is an opportunity that has to be tapped into,” says Mpendulo
Ginindza, past president of the IWMSA. “The correct treatment of
organic waste matters. It protects the climate by reducing methane
emissions from our landfills, reduces waste, recycles organic
materials into valuable compost and creates green jobs.”
National and municipal approaches needed
The government has implemented several initiatives to address the
problem, including the National Environmental Management Waste
Act (NEMWA), which encourages waste diversion from landfills
through recycling, composting and anaerobic digestion.
“Composting is seen as a cost-effective method of organic waste
diversion,” Ginindza explains. “However, municipalities are also
required to develop integrated waste management plans that include
organic waste, but these are often not executed to their full potential.”
“The Western Cape region has a complete organic waste diversion
target of 2027. Since 2022, home composting efforts have increased,
with the City of Cape Town rolling out home composting bins and
raising awareness of the importance of composting.”
Challenges and solutions
According to Ginindza, there is no single challenge that hinders
South African municipalities from implementing large-scale
organic waste diversion programmes.
“Rather, it is a range of issues, including the implementation of the
National Organic Waste Strategy, economic and financial viability,
behavioural change and investment mechanisms,” she explains.
Making a few key changes, however, could support the
transformation of organic waste into resources like compost,
biofuel or energy. “Composting can be performed in a less costly
open window system operating on a floor slab (open) or sheltered
concrete bay (bay composting) with a common set of mechanised
equipment,” she says. “In-vessel composting systems operate in a
tunnel or drum. Anaerobic digestion treatment, in different technical
variants, involves bacterial decomposition of waste in the absence of
oxygen to produce biogas, and mechanical biological treatment often
requires multiple components and processes with varying costs.”
The cost factor of implementing programmes like these can
be tackled by thinking innovatively about partnerships between
municipalities, private sector entities and communities.
“A multi-faceted approach would involve collaboration, incentives
and shared responsibility,” Ginindza explains. “Through publicprivate
partnerships, contracting out services and joint ventures,
municipalities can collaborate with private firms to build composting
facilities, anaerobic digestion or biogas plants using municipal land
and private investment.”
She says in their goal to attract private sector involvement
municipalities can offer incentives that align with sustainability goals.
“Implement tax rebates or reductions for companies that invest in
organic waste recycling infrastructure or offer waste collection and
processing services. Green certifications or public recognition can
be given to companies participating in organic waste management
projects, which can enhance their brand value and corporate social
responsibility reputation.”
*According to an audit by the CSIR.
Service magazine | 25

S
waste
Navigating sustainable recycling
growth: Polyco’s comprehensive
investment strategy
Environmental stewardship is paramount, thus Polyco’s objective is to stand as a leader in advancing plastic recycling
and collection in South Africa with the vision of having a continental footprint in the plastic collection and recycling industry.
Polyco implements an innovative mixture of investment
packages that strategically integrates loans, grants, service
fees and incentives. Polyco’s investment strategy addresses the
challenges of packaging waste collection and recycling while
fostering collaboration across the entire value chain. This article
demonstrates how Polyco’s suite of investment strategies ensures
that its members’ materials are collected and recycled, creating a
sustainable circular economy.
Understanding South Africa’s EPR framework
The Extended Producer Responsibility (EPR) regulations were
formally enacted in 2021 and are reshaping the global landscape
of waste management. These regulations place the responsibility
on producers to manage the entire lifecycle of their products,
including post-consumer stage, ensuring that identified materials
are collected and recycled. Polyco, as a Producer Responsibility
Organisation (PRO), plays a pivotal role in helping and working
with its members and stakeholders to meet these obligations.
With a mission to foster sustainable compliance with the EPR
regulations by strategically investing in the plastic packaging
value chain and implementing global best practices in South
Africa, Polyco’s investment strategy aligns seamlessly with the
EPR framework while addressing the unique challenges of South
Africa’s waste management sector.
Capital investment: loans and grants for long-term growth
At the heart of Polyco’s strategy is capital investment, including
interest-free loans and targeted grants, aimed at strengthening
the recycling and collection infrastructure. These funds are
primarily used for the purchase of critical equipment such
as balers, shredders as well as extruders and wash plants,
ensuring that existing waste collection and recycling
businesses have the tools needed to scale their
operations.
26 | Service magazine

waste
S
Interest-free loans come with a four-year repayment period,
offering financial flexibility to established companies with proven
business models and experience in the waste management sector.
These loans are carefully structured to avoid providing any unfair
competitive advantage, thereby maintaining a balanced and
inclusive industry environment, with a special focus on women,
youth and people living with disability as per the EPR regulations.
Grants play a transformative role in shaping the recycling
and collection industry, acting as a lifeline for small businesses
and startups, especially in underserved and marginalised
communities. These invaluable funds ignite opportunity where
it’s needed most, nurturing training, education, innovation and
resilience in places often overlooked. Polyco therefore addresses
the national needs to prioritise enterprise development to foster
diversity and inclusion, creating pathways for women, youth and
persons with disabilities to thrive within the sector.
But the impact doesn’t stop there. Grants also tackle some of
the most pressing challenges in recycling and collection – like
addressing the often-daunting task of managing difficult-torecycle
materials. They empower businesses to innovate and invest
in solutions that would otherwise remain out of reach, turning
complex waste streams into opportunities.
Service fees: supporting operations
Polyco complements its capital investments with service fees
designed to sustain operational activities and incentivise the
collection of problematic materials. Service fees are payments
made to collection and recycling companies based on their output
of collected/recycled products sold to market. These fees aim to
offset operational costs, making it more economically feasible for
companies to continue their vital work.
There are two main types of service fees:
• Operational service fees support existing infrastructure,
ensuring that companies with established systems can maintain
their operations. Although the fee is not substantial, it is provided
to all plastic recyclers and collectors with the aim to make business
more economically feasible and encourage the reporting of data.
• Incentive-based service fees are specifically tailored to
encourage the collection and recycling of low-value or difficultto-recycle
materials, such as thermoformed PET. By targeting
these challenging waste streams, Polyco ensures that these
materials are diverted from landfills and reintroduced into
the circular economy value chains. This approach not only
supports existing businesses but also aligns with EPR objectives
to increase recycling rates for all packaging materials.
Driving innovation and inclusivity
Beyond financial support, Polyco’s strategy prioritises inclusivity
and innovation, essential elements for a thriving recycling sector.
Initiatives such as Packa-Ching integrate citizens, the informal
sector and formal businesses. This recognises the importance of
all stakeholders in the circular economy value chain.
Polyco exemplifies how strategic
funding can drive meaningful change.
By creating opportunities for historically marginalised groups,
Polyco ensures that the circular economy is equitable and inclusive.
Simultaneously, Polyco draws inspiration from global leaders in the
circular economy, adapting best practices to address South Africa’s
unique challenges. By investing in research and development, the
organisation fosters innovation, enabling the sector to address
complex waste streams and improve waste management.

S
waste
Polyco’s investment strategy is built on transparent, inclusive
funding mechanisms that avoid conceding undue advantages
to specific companies. By addressing the diverse needs of the
recycling sector, Polyco ensures South Africa develops and sustains
an effective, thriving collection and recycling ecosystem grounded
in sound business principles.
At the heart of Polyco’s
strategy is capital investment.
Meeting and exceeding EPR targets
Polyco’s purpose-built investment strategy is integral to surpassing
EPR targets. By scaling operations through targeted loans and
grants, sustaining businesses with service fees and incentivising
the recycling of difficult materials, Polyco directly contributes to
higher collection and recycling rates to meet the EPR legislated
targets. This multi-faceted approach ensures that South Africa’s
plastic packaging waste is managed effectively, in line with global
sustainability frameworks.
Building a sustainable future
Polyco’s commitment to transparency, fairness and innovation sets
a benchmark for PROs worldwide. Its investment strategy not only
addresses current waste challenges but also paves the way for a
zero-waste future. By fostering a dynamic recycling and collection
sector, Polyco promotes the development of a circular economy
that benefits businesses, communities and the environment.
Through targeted investments that empower every part of
the recycling and collection value chain, Polyco exemplifies how
strategic funding can drive meaningful change. Its approach
builds a robust waste management sector that grows in capacity,
continues to innovate, and ensures compliance with regulatory
objectives and targets – laying the foundation for a sustainable
waste management sector in South Africa. S
Francois Marais, Executive
Stakeholder and Projects
at Polyco.
Nkopodi Mphahlele,
Polyco’s Environmental
Policy Specialist.
28 | Service magazine

2
35
1
3
19
Packa-Ching buy-back centres
3
Polyco project investments
16
Collectors and recyclers
To date, Polyco has invested more than R300-million into South Africa’s plastics recycling
sector, since inception. Polyco has partnered with over 145 collection and recycling businesses,
supporting the plastics packaging industry’s capacity through growth and service fee volumes
exceeding one-million tons.

S
education
The time to act is now
I
Minister calls on private sector to help ensure that every child has access to early childhood education.
“If Africa is to seize its moment and replicate the success of
economies like China’s, it must start with ensuring that every child,
regardless of their background, has access to quality early childhood
education (ECD).”
Minister of Basic Education, Siviwe Gwarube, speaking at a
recent ECD funders’ breakfast event in support of Bana Pele, a
groundbreaking initiative to transform South Africa’s ECD sector,
made a clarion call for the business sector to join hands with the
government and ensure a brighter future for the entire country.
Bana Pele is a unique South African social compact, in that it
comprises a partnership between the government, the private sector
and non-governmental organisations to address the country’s woeful
ECD situation.
For ECD centres to access state subsidies and support through
the Department of Basic Education’s (DBE) ECD 2030 Strategy,
they must be officially registered. But few are – and Bana Pele
(Setswana for “Children First”) is working to regularise thousands of
unregistered centres. Bana Pele is a three-part initiative comprising
application, compliance and registration.
For Christina Madlala of Asbonge Day Care in Carletonville,
Gauteng, providing facilities, care and learning support to the
children she looks after is a daily struggle – but Bana Pele is helping
to change all that for her.
“We were invited to meet with the social workers who told us about
Bana Pele. It was perfect for us. They said no-one will be left behind,”
says Madlala. She is bronze-registered and must now comply with the
next level of registration – silver – to be eligible for a vital R17-a-day
child subsidy.
“The reality is that only a fraction of ECD centres are formally
registered and adequately resourced, particularly in rural and
underprivileged areas. This deficit in early learning opportunities
threatens to derail our growth potential as a nation and undermines
our ability to prepare our youth for the demands of a changing
world,” said Minister Gwarube at the event hosted by Bana Pele
partners, Oppenheimer Memorial Trust and Investec.
“The private sector holds a unique and powerful position
in shaping the trajectory of our education system. Drawing on
stakeholder theory of value and embedded systems theory, business
does not exist in isolation; it is deeply embedded within the broader
societal ecosystem.
“I call upon all business partners represented here today to take
a bold step forward in supporting ECD through partnerships,
sponsorships and skills development initiatives. The time to act is now
– let us be intentional, strategic and bold in our ambition to create an
education system that equips every child with the tools to succeed.”
Thrive by Five, a three-yearly study initiated in 2021 by the DBE
and partners, shows that around 1.3-million three- to five-year-old
children are not in any form of early learning programme, and of
children who are, only 45% are regarded as on track in terms of
cognitive development; children in the poorest 60% of homes in
particular are falling far behind the standard expected for their age.
Additionally, 5.7% of the children show signs of chronic malnutrition.
(The 2024 study’s results have yet to be released.)
The ECD Census 2021 counted 42 420 ECD centres across South
Africa, at least half of which were unregistered, missing out on DBE
resources and support to ensure children are benefiting from quality
early learning programmes; it is likely that more exist. Bana Pele
aims to register 20 000 ECD programmes across South Africa by
December 2025.
Oppenheimer Memorial Trust CEO, Tracey Webster, stated, “South
Africa is the most unequal and inequitable country in the world. The
Gini coefficient is the highest in the world, sitting at 63 (where 0
denotes perfect equality and 100 perfect inequality). And sadly, this
inequality is reflected in our education system. Simply put, apartheid
is 100% entrenched in our education system. It must end with us,
and it stops today. We must end it.

education
S
Oppenheimer Memorial Trust CEO Tracey Webster, speaking at
the ECD funders’ event.
“The only way we can overcome our horrendous past is to
tackle this systemically. We must fix this problem once and for all
and ensure that every child in South Africa has access to quality
education. What does that mean for the individual child in South
Africa? Realistically, what does this inequality look like? Well, out of
10 children, only three-and-a-half children have access to an early
learning programme.”
Let us be intentional, strategic and
bold in our ambition to create an
education system that equips every
child with the tools to succeed.
Far-sighted private sector entities are stepping into the breach
and supporting Bana Pele with funding, expertise and people – but
more is needed. Funding of up to R150-million is required for two
vital elements.
Firstly, health and safety support packs are needed for an estimated
10 000 ECD programmes to address compliance and safety gaps
and implement childcare activities; these include fire protection,
first aid, childcare essentials and hygiene items. Secondly, many ECD
programmes require infrastructure support of between R30 000 and
R150 000, including safe sanitation and water, safe structures and
adequate environments for children.
So far, Yellowwoods has committed R10-million and the FEM
Education Foundation a further R20-million to Bana Pele, with a
potential R30-million more in the pipeline, leaving a shortfall of up
to R90-million.
Bana Pele’s crucial mass registration drive (MRD) aims at formally
registering such ECD programmes, principally in low-income
communities, which will allow them to unlock government support
to improve their facilities and access the state subsidy for each child
in their care. As many as a million children lack access to this subsidy.
“What makes Bana Pele unprecedented is how the partners are
collaborating,” says Nomsa Muthaphuli, ECD and youth fund manager
at Oppenheimer Memorial Trust. “Where in the past partners were
expected to only support government activities, now we are also
Minister of Basic Education, Siviwe Gwarube.
involved: we are both funders of and participants in creating lasting
transformation in ECD. Representing one of those participants, I see
exactly how important Bana Pele is – and I see how it can, and will,
drive a better, brighter, more prosperous South Africa.”
ECD is vital for unlocking the potential of every South African child
and ensuring a thriving economy, Muthaphuli continues, “Indeed,
Nobel Prize-winning economist James Heckman demonstrated that
the highest rate of economic return for a nation – between 7% and
10% – comes from investment in children’s earliest years.
“The impact of ECD on a country’s gross domestic product, and
on further education and skills development, in particular STEM
skills, is unquestionable.”
Setlogane Manchidi, head of corporate social investment at
Investec South Africa, says, “While our corporate social investment
strategy and associated efforts have, in the main, been focused on
supporting high-school maths and science education as well as the
facilitation of access to quality tertiary education, we recognise the
significance of early childhood education in laying a solid foundation
for future learning.
“We are excited about this partnership, given our belief that when
we give children the best start in life, we contribute towards creating
enduring worth by improving their chances of active economic
inclusion and a better quality of life.”
An innovative financial model has been developed to ensure the
money committed to Bana Pele gets to where it is needed at scale and
in a coordinated way: an independent central infrastructure fund
that is managed on behalf of all the social compact funders by the
Development Bank of Southern Africa (DBSA).
Right now, the fiscus has allocated an additional R539-million per
annum to child subsidies and this pooled fund can ensure that it is
fully allocated.
“Through this incredible initiative, and the strong partnerships
that have been built between the department and partners, we have
significant momentum to achieve the vision of universal access to
quality early learning by 2030,” says Janeli Kotzé, acting director: ECD
at the DBE.
“But for our collaborative approach and our shared vision to be
sustained, at this critical moment and into the future, we need the
private sector more than ever to join us. I appeal to all South African
companies that have not yet done so, to place children first – Bana
Pele – because they are the bedrock of our future.” S
Service magazine | 31

S
digital skills
Bridging the great divide
Thought leaders urge skills
development focus, following SONA
The Institute of Information Technology Professionals South Africa (IITPSA) and Professional CIOs (Pr.CIOs) have welcomed
the emphasis on digital technology in Ramaphosa’s SONA, but have called for more focus on digital skills development.
IBy IITPSA
In his address, the president noted that technology could transform
the way that government works and committed to investing in digital
public infrastructure to give South Africans access to government
services. “To support growth in digital services and business process
outsourcing, we are investing in skills development for the industries
of the future,” he said.
PRACTICAL APPLICATIONS
IITPSA Pr.CIO and founder and CEO of eTSHADI Consulting
Services, Dr Sylvia Sathekge, says, “Beyond simply acknowledging its
importance, the address outlines concrete initiatives where technology
plays a central role: from streamlining government services through
digital infrastructure and identity programmes, to modernising key
sectors like mining and healthcare with digital platforms and analytics.
“The commitment to harnessing technology to improve
infrastructure (rail systems) and boost related sectors like tourism
signals a welcome shift towards practical application. As a technology
thought leader and digital transformation specialist, I find this
integrated approach encouraging, particularly the focus on digital
skills development and the creation of a transformation fund to
empower innovation. Crucially, this must be coupled with robust digital
skills development programmes to empower citizens to participate in
the digital economy. Furthermore, as we embrace these technologies,
cybersecurity must be a paramount concern, requiring proactive
strategies and investment to safeguard our digital infrastructure
and data. However, the success of these ambitious plans will depend
heavily on robust governance and oversight, as rightly emphasised in
the address, to ensure responsible implementation and maximise the
benefits for all South Africans.”
“It is important that we look, not only at investment in skills
development in respect of new talent entry and new industries in the
South African digital economy, but also the need to cross-skill/upskill/
reskill some of the existing talent already active in the economy – this
includes the basic digital skills needed to use digital tools to execute
simple daily tasks,” adds IITPSA CEO, Tony Parry.
“Government needs to recognise that long-term economic growth
requires mass employment opportunities for young people as they
leave the education environment. Employment does not necessarily
mean becoming a staff member of an enterprise – it can include selfemployment
as an entrepreneur using the technologies of the 2020s.
The lack of meaningful progress in broadening the take-up of STEM
subjects at schools and beyond means that we are stifling our capacity
32 | Service magazine

digital skills
S
to feed South Africans into the skills pipeline that the president’s
technology-based projects will desperately require,” IITPSA Fellow,
Adrian Schofield, notes.
AN AI-ENABLED GOVERNMENT
Bryan Baxter, member of the IITPSA Cyber Security Special Interest
Group (SIGCyber), says, “AI can help to digitise government services,
create jobs and drive economic growth. It can streamline public
services, making it easier and faster for citizens to access key services.
This includes applying for permits, managing digital identities or
interacting with the government online. This would enable greater
efficiency and a more responsive public sector. Reskilling and upskilling
the government workforce will be critical. The government should
invest in AI training programmes and digital skills development.
“Just as technology innovation provides new opportunities, it also
has risks. All new technologies should be implemented securely.
Cyber criminals are also exploiting AI. They will be actively looking to
take advantage of potential vulnerabilities in any new governmental
services. Robust cybersecurity defences will be critical to ensure
the resilience of a digitised government and to protect citizens’
confidential data,” he explains.
AI can help to digitise
government services, create
jobs and drive economic growth.
THE ROLE OF WOMEN
Thenzie Stewart, chair of the IITPSA’s Women in IT (WIIT) Chapter,
says, “The alarming decline in mathematics and science performance,
particularly among young women, remains a critical concern. This
decline threatens the pipeline of women entering STEM careers,
leaving them at a disadvantage in the digital economy. Additionally, the
lack of awareness surrounding data protection laws further exposes
females to risks in both career opportunities and digital safety. To close
this gap, we must invest in STEM education, promote digital literacy
and create safer online spaces for women, ensuring they are equipped
to lead and innovate in the tech-driven future.
“Collaboration between the government and organisations like
WIIT can play a crucial role in developing targeted programmes
that encourage and support women in STEM careers. This includes
funding scholarships, facilitating mentorship opportunities and
launching awareness campaigns to inspire young women.” S
SONA 2025:
skills development
Excerpts from the State of the Nation Address by
President Ramaphosa, February 2025.
The most sustainable way to build an economy is to
equip people with the skills to drive it. Our aim is to
create a more conducive environment for attracting
skills and enabling companies to invest in South Africa.
We will be strengthening the connection between the
skills we develop and the skills the workplace needs, to
ensure we capacitate people with relevant skills to enter
the job market with confidence.
EMPOWERING YOUNG PEOPLE
Our new approach to skills development links skills
training directly to the demand in the economy.
This year, the National Skills Fund will provide
R800-million to develop skills in the digital and
technology sector through an innovative model that
links payment for training to employment outcomes.
The pay-for-performance initiative has enabled
4 500 young people to access workplace experience
in line with the Presidential Youth Employment
Intervention programme which seeks to develop an
agile workforce.
WORK OPPORTUNITIES
The Youth Employment Service (YES) programme
is a business-led collaboration that was established
together with private sector partners. It was introduced
to stimulate job creation and create one-million quality
work experiences for unemployed black youth. The
YES programme has to date created over 86 500 work
experiences for young people. We will be increasing
the value and expanding the criteria for participation in
the Employment Tax Incentive to encourage companies
to hire new work seekers. The changes will also make it
easier for small businesses to hire young people.
TVET COLLEGES
We launched the zero-rated South African Youth
mobi platform, which provides pathways for youths to
employment, learning and youth enterprise. To date,
over 3.3-million young people have registered on the
platform and more than 894 877 have been placed in
learning opportunities.
DIGITAL WORK ACCELERATOR
We are on track to implement the Global Business
Services Master plan and the Digital Work Accelerator
to drive job creation in the digital and tech sector. It is
aimed at upskilling young people.
Service magazine | 33

S
digital skills
How the private sector can lead SA’s skills revolution
The country is facing an ever-widening digital skills gap, a challenged education system and youth unemployment rates that
threaten to destabilise our future. It’s time to start driving real, meaningful change.
By Accenture Africa*
SSouth Africa, I believe, is at a talent and innovation tipping point.
If we don’t act now, we risk falling even further behind in the global
race for competitive advantage. The truth is that we have lagged in
areas where we could have been at the forefront of technology in the
past. Each missed chance has costly implications.
The call to action is clear: the private sector must step up
further and invest more in South Africa’s skills future. Government
initiatives, while necessary and laudable, are not enough. We need
a business-driven approach to accelerate the development of our
digital workforce, fix our education system and create opportunities
for our youth – particularly young women.
As a leader in tech innovation, Accenture is well-positioned
to shed light on the depth of these issues, particularly the digital
skills gap in STEM. Despite global advancements, South Africa’s
digital competencies lag significantly: it ranks 84 th out of 135 in the
Wiley Digital Skills Gap Index. The slow progression can largely be
attributed to a lack of adequate education, socioeconomic disparities
and the “brain drain”, where highly skilled professionals emigrate in
pursuit of better opportunities.
To address the skills gap, we must first tackle the educational
crisis that fuels it. South Africa’s education system has consistently
ranked among the worst globally. The 2019 Trends in International
Mathematics and Science Study placed South Africa near the bottom
in performance for primary and secondary education. More
alarmingly, a 2021 study revealed that 81% of South African Grade
4 students cannot read for meaning, the same figure as in 2011,
erasing a decade of slow progress.
Without a strong foundation in basic education, students cannot
transition successfully into higher education fields that are critical to
closing the skills gap, particularly in STEM disciplines.
The gender disparity in employment reflects broader systemic
barriers for women, who are often hindered by social factors that
prevent them from pursuing educational and career advancement.
In response, there is an urgent need for programmes and initiatives
that prioritise skills development and employment for young
women. These initiatives should aim to rectify this gender gap and
uplift those who are most vulnerable in the job market.
An innovative approach would be to establish new universities
specifically focused on producing graduates in high-demand STEM
fields. South Africa’s slow progress in building academic capacity,
particularly in STEM disciplines, underscores the need for such
structural changes. The Oliver Tambo University of Science and
34 | Service magazine

digital skills
S
Technology, for example, is one proposal that holds significant
promise for increasing STEM talent in South Africa. Alongside the
establishment of such institutions, the private sector can contribute
through scholarships, mentorships and other funding models that
ensure talented students are not barred from education due to
financial constraints.
Mentorship programmes are
crucial. Thought leaders urge skills
development focus, following SONA.
South African businesses must prioritise creating conducive
working environments that retain top talent. To retain talent,
companies need to provide fair compensation, a supportive working
environment and opportunities for growth.
Partnerships between the public and private sectors are essential.
NGOs and tech hubs, such as WeThinkCode, GirlCode and
youth@WORK, are making headway in addressing critical
skills shortages and should be leveraged for greater impact.
South Africa’s well-established tech ecosystem, primarily in
Johannesburg, Cape Town and Durban, provides an ideal foundation
for such initiatives.
Moreover, mentorship programmes are crucial. South Africa
boasts exceptional leaders in the tech industry who can
guide the next generation. Organisations should
adopt mentorship as a core component of their
talent development strategy.
Finally, a digital platform that connects job seekers
with mentors and employers could revolutionise the
job market. Such a platform could use AI to match
candidates with opportunities based on their skills
and experiences, streamlining the job search
process and ensuring that young talent is
adequately matched with industry needs.
By leveraging partnerships and
investing in education and mentorship,
we can cultivate a thriving workforce
prepared for the demands of the
Fourth Industrial Revolution. S
*Written by Ntsako Baloyi, senior
manager within the technology business
at Accenture Africa.
Ntsako Baloyi, Accenture Africa.
CLOSING THE DIVIDE
Delivering affordable, high-quality Internet access to South
African communities across the income spectrum.
Albert Oosthuysen, CEO, Net Nine Nine pilots open access
WiFi project in Swaneville Kagiso.
Infinite Partners, a South African-based private equity fund manager and
the Public Investment Corporation (PIC) have announced the acquisition
of a strategic interest in three fibre network operators: Net Nine Nine,
Evotel and LinkLayer. These businesses have been consolidated into a
single holding company, Fibre Holdco, dedicated to expanding reliable
and affordable fibre connectivity primarily to historically underserved
communities, including townships and rural mining towns across South
Africa.
THE OPERATORS
Net Nine Nine. Founded in 2020, Net Nine Nine is a fast-growing
fibre network operator providing high-quality Internet connectivity to
lower-income households nationally. The business has pioneered fibre
network expansion into townships by offering unlimited, reliable and
cost-effective bandwidth.
Evotel. By focusing on middle-income suburbs, secondary cities, rural
areas and mining towns and areas typically overlooked by major fibre
operators, Evotel ensures uninterrupted, premium Internet access in
regions where connectivity is a vital enabler of education, e-commerce
and economic activity.
LinkLayer. LinkLayer provides dependable fibre connectivity and
high-quality Internet to households in the KwaZulu-Natal region.
The acquisition is set to create a powerful platform for collaboration
and will drive greater impact, enabling the expansion offibre access to
communities across the income spectrum, supporting the development of
infrastructure in areas where digital connectivity has lingered.
Fibre Holdco will focus on expanding access to broadband services
to over 1.5-million homes in South Africa, targeting underserved lower
to middle-income residential markets. This effort will also bolster local
economies by engaging SMMEs for network building, maintenance and
sales efforts. S
Edward Pitsi,
CEO and Naomi
Nethengwe,
founding team
member and
principal at
Infinite Partners.
Service magazine | 35

S
good news
Building a brighter future
In a significant step towards bridging the digital divide in rural South Africa, CHIETA and the Karoo Hoogland Municipality
have signed an MoU to establish a state-of-the-art Smart Skills Centre in Fraserburg, Northern Cape.
TThis groundbreaking partnership will bring cutting-edge digital
courses and skills development programmes to Fraserburg and
surrounding communities, equipping residents with the expertise
needed to thrive in an increasingly technology-driven world.
The Smart Skills Centre, set to launch in late 2025, is poised to
empower local youth and community members with skills for
future employment opportunities.
“The signing of the Memorandum of Understanding (MoU)
in January 2025 marks a crucial milestone in the Chemical
Industries Education and Training Authority’s (CHIETA) efforts
to expand digital education to underserved areas,” said Yershen
Pillay, CEO of CHIETA. “The Fraserburg Smart Skills Centre will
provide the communities of Fraserburg, Sutherland and Williston
with access to essential digital skills training over the next five
years, ensuring no-one in this rural community is left behind in
the digital revolution.”
Expanding the national smart skills network
Fraserburg’s Smart Skills Centre will join CHIETA’s growing
network of innovative training hubs, becoming the ninth Smart
Skills Centre established since October 2022. This expanding
network includes centres in:
• Saldanha Bay (Western Cape)
• Eastern Cape
• KwaZulu-Natal
• Mpumalanga
• North West
• Modjadjiskloof (Limpopo)
• Gauteng (Not yet launched)
• Free State (Not yet launched)
“With the addition of Fraserburg, we are addressing the disparities
in skills development across rural South Africa,” Pillay added. “This
centre will build on the success of our previous initiatives, offering
digital literacy, technical training and industry-relevant skills that
enhance employability and promote economic growth.”
Fostering sustainability through partnerships
CHIETA is committed to ensuring the centre’s long-term
sustainability by collaborating with stakeholders and partners
aligned with its vision for inclusive skills development.
Organisations will have the opportunity to apply for discretionary
grants to introduce additional training programmes tailored to
community needs.
“This Smart Skills Centre is a cornerstone of our broader
mission to drive socio-economic growth in rural areas,” Pillay
explained. “Through today’s partnership with the Karoo Hoogland
Municipality, we are creating a foundation for Fraserburg’s
residents and surrounding communities to thrive in the fastchanging
global economy.”
Looking ahead
The MoU will remain in effect for five years. During this time,
CHIETA and its partners will continuously evaluate and adapt
the centre’s programmes to align with the demands of Industry
4.0 and the green economy.
“This collaboration is about more than just skills development,”
Pillay concluded. “It’s about providing meaningful opportunities
and a brighter future for the communities in the Karoo Hoogland
Municipality. Together, we are building a more digitally inclusive
and sustainable South Africa.” S
36 | Service magazine