Service Issue 90

ISSUE 90

JUN/JUL/AUG 2025

L E A D E R S H I P I N G O V E R N M E N T

FUNDING HEALTH

PUBLIC SERVICE

FOOD SECURITY

INFRASTRUCTURE LIFELINE

PUBLIC SERVICE WITHIN

THE WATER SECTOR

Ramateu Monyokolo, Chairperson of AWSISA

TOWNSHIP ECONOMY

FEATURE: ENERGY ONE STOP SHOP

ERGY

ONE

STOP

s

Accelerating Renewable Energy Development: Milestones Achieved by the Energy

One Stop Shop in 2024

In 2024, the Energy One Stop Shop (EOSS) demonstrated its commitment to overcoming critical hurdles in South Africa's renewable

energy sector. Through collaborative efforts, the EOSS successfully addressed 102 challenges faced by Independent Power Producers

(IPPs) across various Competent Authorities, including the Department of Forestry, Fisheries and the Environment (DFFE), Department

of Agriculture, Land Reform and Rural Development (DALRRD ), Department of Mineral Resources and Energy (DMRE), and others.

Unlocking Energy Potential: Project Milestones

These efforts culminated in 15 renewable energy projects advancing to the Development Pipeline, either at the Financial Close,

Construction or Operational phase. Combined, these projects represent an additional 1001 megawatts (MW) of energy capacity

expected to come online by 2026. Beyond this, the EOSS is actively monitoring 81 additional projects with a total potential of

19,376 MW, showcasing the immense growth potential of South Africa's renewable energy sector.

Pioneering the Single Window Application Portal

A key initiative in 2024 was the significant progress made in developing the Single Window Application Portal (SWAP).

This innovative mechanism is designed to streamline application processes, harmonize interdepartmental systems,

and provide I P Ps with a centralized platform to lodge applications, review statuses, and track progress efficiently.

Through extensive consultations with government departments and entities, the EOSS, in partnership with the International

Finance Corporation (IFC), finalized the Functional Requirements Specification (FRS) for the SWAP. Furthermore, a comprehensive

funding proposal was developed, and the necessary funding is now being sought for the portal's development.

Strengthening Municipal Integration

Recognizing the vital role of municipalities in renewable energy development, the EOSS also initiated efforts to integrate municipal

processes into the SWAP. With support from the Foreign and Commonwealth Development Office (FCDO) through the UK-Pact program,

the second phase of mapping and streamlining these processes has begun. This initiative, undertaken in collaboration with the

South African Local Government Association (SALGA) and the Department of Cooperative Governance and Traditional Affairs

(COGTA), aims to remove bottlenecks at the municipal level. The integration of these processes into the SWAP is expected to be

completed by the end of 2026.

A Pathway to Sustainable Growth

The achievements of the EOSS in 2024 underscore its pivotal role in advancing South Africa's renewable energy agenda.

By addressing systemic challenges and fostering innovation through tools like the SWAP, the EOSS is not only expediting

project development but also laying the groundwork for a more sustainable and energy-secure future.

Energy Project in EOSS Development Pipeline

1001

6

4

5

Financial Close

Projects secured, funding

and contracts

Construction

Projects currently being

built

Operational

Projects currently

generating energy

Megawatts

Total energy capacity of

all projects

81 Tracked

Total of 15 Projects

Trade, Industry and Competition

REPU I BLIC OF SOUTH .AF"AICA

®!!'!!!

Streamlining Energy Applications

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.

2 | Service magazine

funeral services

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• 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

20

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editor’s note

Catalysts for inclusive growth

T“Through public infrastructure we build roads, ports, railways and

airports to enable what we produce as a nation to move efficiently.

Infrastructure development demonstrates stability and great

potential to investors. Infrastructure that is well constructed and

maintained encourages investors to see our country as a great

investment destination. Public infrastructure in water supply,

electricity, schools and health clinics improves living standards and

provides dignity to our people and fosters national unity,” President

Cyril Ramaphosa said in his address at the 2025 Sustainable

Infrastructure Development Symposium South Africa (SIDSSA)

held in May (page 6).

As South Africa’s Government of National Unity (GNU) charts

its course, the spotlight remains on delivery – and few areas are

as urgent or promising as infrastructure. The stark reality is

undeniable: despite years of investment and policy reform, much of

South Africa’s economic infrastructure continues to underperform.

Despite significant challenges, there are grounds for optimism

regarding infrastructure development.

The key lies in accountability: by implementing systematic

changes that hold stakeholders responsible for infrastructure

performance and financial management, South Africa can begin

to realise the potential of its infrastructure investments (page 18).

Public Works and Infrastructure Minister Dean Macpherson says

that it is clear that South Africa does not have an infrastructure

pipeline problem.

Infrastructure SA (ISA) is leading an innovative pilot project

at four municipalities, through the “adopt-a-municipality”

programme, where ISA will play a greater role in the execution of

projects in these test cases. This will help directly address the poor

infrastructure delivery we see on a local government level (page 16).

Water is considered a strategic national resource and is recognised

as a constitutional right in South Africa. Nevertheless, the industry

is experiencing a significant downturn, and our municipalities are

drowning in debt. At the heart of this challenge lies a critical policy

tension: how to ensure sustainable cost recovery while protecting

the poorest from exclusion.

The governance of our water sector is distributed across various

levels of government. The Association of Water and Sanitation

Institutions of South Africa (AWSISA) believes that regulatory

independence is essential for improving water governance in

South Africa and advocates for creating an autonomous water and

sanitation regulatory body (page 10).

In South Africa’s vibrant township economy, small to mediumsized

businesses are flourishing as the adoption of cashless

transactions grows. Beyond providing a layer of financial

transparency for merchants, digital transactions and payment

histories help informal businesses build transactional profiles,

making it easier for them to access financial services. This, in turn,

drives economic growth by supporting local entrepreneurs and

cultivating a safer society (page 28).

Despite significant challenges, there

are grounds for optimism regarding

infrastructure development.

South Africa needs to enhance inclusive opportunities across vital

economic sectors, bridging gaps between public and private entities,

as well as informal and formal markets to stimulate growth. The

GNU’s legacy hinges on its ability to turn South Africa’s impeded

sectors into drivers of inclusive growth.

Enjoy this edition!

Alexis Knipe

Editor

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contents

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IN THIS ISSUE | SERVICE 90 | JUN/JUL/AUG 2025

24

10

28

16

2 ETHOS OF COLLABORATION AND UNITY

Thsebedisano Burial Society offers a range of services

6 SERVE AND DELIVER

News and updates

10 FROM TARIFFS TO TRUST

AWSISA is rethinking cost recovery in pro-poor

water services

16 TURNING SA INTO A CONSTRUCTION SITE

Growing the economy and creating jobs

18 INFRASTRUCTURE IS THE LIFELINE OF GNU

As GNU charts its course, the focus remains on delivery

20 ENTREPRENEURIAL SKILLS DEVELOPMENT

MUST DRIVE JOB CREATION FOR SA YOUTH

Yershen Pillay, CEO, CHIETA, says that this delivers

a multiplier effect

22 THE PROFESSIONALISATION OF THE PUBLIC

SERVICE SECTOR

SA needs a skilled, motivated and capable public

service sector

24 ONE PERSON. ONE GOVERNMENT. ONE TOUCH

The roadmap for the digital transformation of

government has been launched

28 EMPOWERING SA’s TOWNSHIP ECONOMY

SMEs are flourishing as the adoption of cashless

transactions grows

30 FUNDING HEALTH WILL STIMULATE

DEVELOPMENT IN SA

Urgent action to bring about improvements to SA’s

declining state of health systems is needed now

33 IS ESG DEAD?

Why Trump’s exit from SA’s JET is a wake-up call

34 HOW LOCAL LEADERSHIP CAN TRANSFORM

FOOD SYSTEMS

We need to amplify bottom-up community-led

solutions to drive for real food systems transformation

36 GOOD NEWS

Renewables renewing hope

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snippets

SERVE AND DELIVER

PRESIDENT CYRIL RAMAPHOSA: 2025 SIDSSA

Excerpts of the Address by President Cyril Ramaphosa at the 2025 Sustainable

Infrastructure Development Symposium South Africa (SIDSSA), 27 May 2025.

It is important for us to understand the significant role that is played by

infrastructure in the life of a nation, particularly South Africa. This is so because

infrastructure is fundamental to the development of our country. It serves as

the backbone of economic growth and social progress and contributes to the

improvement of the lives of our people.

Through public infrastructure we build roads, ports, railways and airports to

enable what we produce as a nation to move efficiently. Infrastructure development

demonstrates stability and great potential to investors. Infrastructure that is

well constructed and maintained encourages investors to see our country as

a great investment destination. Infrastructure projects create jobs not only in

construction and maintenance but in several related industries as well.

Public infrastructure in water supply, electricity, schools and health clinics

improves living standards and provides dignity to our people and fosters national

unity.Good infrastructure will boost trade and will reduce the cost of doing

business. This is essential as we open to the advent of the African Continental

Free Trade Area. This will enable us to trade with other countries on the continent,

representing a market of 1.3-billion people.

To demonstrate our clear intent, last month Infrastructure South Africa released

the second edition of the Construction Book 2024/2025, which lists around 250

construction projects with an estimated value of more than R238-billion. This is a

new record for public investment in infrastructure.

As the Minister of Finance indicated in the Budget Speech, infrastructure

spending will become the fastest-growing line item in our budget. Public

infrastructure spending over the next three years will exceed the R1-trillion mark.

We are working to mobilise all available capital, both domestic and international,

towards this infrastructure boom. To enhance greater focus on infrastructure we

are implementing reforms to make public-private partnerships easier, faster and

more predictable. Some of the reforms we are focusing on will make it easier for

public-private partnerships under the value of R2-billion to gain approval.

We are implementing the reforms necessary to make it easier for more

construction by reducing regulatory duplication and providing investors with

long-term certainty.

Infrastructure South Africa helps to expedite project approvals and plays a key

role in project preparation and in mobilising financing. The entity has become a

centre of excellence within government.

Under the Infrastructure Development Act, cabinet is empowered to establish

Strategic Integrated Projects (SIPs) that Infrastructure South Africa can fasttrack

through regulatory and approval processes. The capital value of the SIPs

has grown from R340-billion in 2020 to over R1.3-trillion in 2025. This value is

President Cyril Ramaphosa.

bolstered by the huge demand for privately funded projects that only require

expedited regulatory approvals to reach financial close. These projects span

energy, water and sanitation, transport and logistics, digital infrastructure and

human settlements.

In the past financial year, Infrastructure South Africa’s project preparation

fund supported the development of 34 infrastructure projects with an estimated

capital value of R259-billion towards bankability and investment. More than

R600-million has been committed to preparing projects across municipalities

and public entities. Since its inception, the fund has packaged around 26 blended

finance projects across several sectors, with a capital value of approximately

R102-billion.


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SERVE AND DELIVER

LEADERSHIP IN GOVERNMENT

Service: Leadership in Government magazine, now on its 90th edition, has formed

a media partnership with the Chartered Institute of Government Finance and

Risk Officers (CIGFARO). Service is a quarterly publication focusing on matters

of relevance to government, including thought leadership, case studies and best

practice in government. CIGFARO is the recognised professional body for financial

management in the public sector. It promotes the interests of finance and related

professionals in the public sector and protects the interests of the public through

strict enforcement of its Code of Conduct.

CIGFARO was founded in 1929 and is dedicated to establishing and upholding

high standards of professionalism for financial management in the public sector

and to enhance and sustain good governance in public finances. It provides a

framework to collectively enhance and sustain good

financial management and governance in the public

finance sector. Within the statutory framework, the

Institute aims to establish standards for effective and

ethical financial management, governance, advisory

support and capacity building in the public sector.

From the next edition of Service, each issue of the

publication will include CIGFARO content and will be

distributed to delegates at CIGFARO events. Service will

be distributed to the CIGFARO membership and will also

be available at airport lounges throughout South Africa.

CALL FOR REBRANDING OF TVET COLLEGES

Higher Education and Training Deputy Minister, Dr Mimmy Gondwe, has called for

the rebranding of Technical and Vocational Education and Training (TVET) colleges,

to help them realise their full potential.

Gondwe made the call during an Education World Forum (EWF) held recently in

the UK. The deputy minister led the South African delegation from the Department

of Higher Education and Training at the EWF, which was held under the theme,

“From stability to growth; building stronger, better, bolder education together”.

The Education World Forum is the world’s largest annual gathering of education

and skills ministers. The event provides excellent networking and peer learning

opportunities for ministers from around the world to discuss the most pressing

issues in the education space. This year’s Education World Forum explored

a wide spectrum of critical issues surrounding

the development of inclusive, responsive and

resilient education systems that drive equitable

and sustainable socio-economic growth. It also

facilitated reflection on innovative solutions to tackle

today’s pressing global challenges, with a focus on

leveraging technology, public-private partnerships

and international collaboration.

The deputy minister participated in key discussions

and engagements regarding themes, including girls’ education, fostering publicprivate

partnerships to drive innovation in education and promoting vocational

education and skills development as pathways to youth employment and economic

growth. During a parallel session on vocational education and skills development,

Gondwe stressed a need for rebranding TVET and community colleges to make

vocational education the first choice for students.

“In South Africa, TVETs and community colleges are often the second or third

choice for students, and I think this is because universities obtain a lion’s share of

our budget. Many students still wish to enrol at universities instead of technical

colleges and our community colleges.

“Therefore, I think we need to ensure that TVETs provide future skills that

will contribute to economic growth and job creation, such as robotics, Artificial

Intelligence and coding,” the deputy minister said.

Strengthening public-private partnerships

In another key parallel session on public-private partnerships in education, Gondwe

advocated for the strengthening of public-private partnerships within the higher

education sector to enhance the absorption of students in the economy as

employees or create their own opportunities.

SAnews.gov.za

VODACOM BUSINESS ENHANCES PUBLIC SAFETY

An estimated 1 800 government-issued firearms are lost or stolen every year,

according to the latest reports. If these assets enter the illicit market, they pose

a significant risk to citizen safety. Protecting, monitoring and ensuring the

authorised use of service firearms is critical. In an era where the public

sector increasingly relies on technology to enhance efficiency and

accountability, Vodacom Business provides digital tools to help manage

these important assets. Through Vodacom Business’s Internet of Things

(IoT) solutions, law enforcement and security agencies can ensure a trail

of culpability as firearms move through the system.

As the government embraces digital transformation, the need for advanced,

reliable asset management solutions is increasingly important, particularly in

public safety. Vodacom Business’s IoT technology streamlines record-keeping and

provides real-time insights into the status, location and responsibility of inventory,

such as firearms. By empowering government agencies with the digital tools they

need to improve operations, Vodacom Business is helping build a safer, more

secure environment for law enforcement officers and the communities they serve.

Vodacom Business’s IoT security solution, or “Peacemaker” developed in

partnership with IoT.nxt, is a holistic firearm management system, from tracking

and monitoring weapons to tracing accountability. By tracking items in

real-time, there is continuous visibility of firearms, providing reliable

information on location, status and use, such as gunshots.

By monitoring the usage patterns of firearms, government authorities

can identify trends, improve asset procurement and planning, enhance

patrolling and enable more efficient resource use. The IoT platform

ensures secure connectivity from the device to the management system. The

data is collected and stored in a centralised system, enabling records to be updated

and shared seamlessly on a secure private cloud, increasing the effectiveness of

public sector asset management. Vodacom Business’s IoT solutions also offer

opportunities to track, monitor and have transparency on other critical public

sector assets, such as vehicles, equipment and personnel. Technology enables

agencies to allocate resources effectively and respond more quickly to incidents.

By Siseko Mni, executive head of IoT sales public sector, Vodacom Business

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snippets

SERVE AND DELIVER

THE ROLE OF COMMUNITY TRUSTS

Many mining communities face severe deficits in infrastructure and essential services,

especially in remote areas. Local municipalities are often hampered in their ability

to resolve these challenges – however, the role of municipalities remains critical in

achieving meaningful socio-economic development.

We recognise that mining companies and community trusts cannot – and should

not – take over the role of municipalities, but they have potential to contribute

meaningfully towards building capacity at a local level, promoting inclusion and good

governance and modelling accountability.

Inclusive local governance ensures that all community members and representatives,

including marginalised, vulnerable and under-represented groups, have an equal

opportunity to participate in decision-making processes. This approach promotes

transparency, accountability and responsiveness to the needs of diverse populations

within the community. In inclusive local governance, efforts are made to ensure that

policies, services and resources are accessible to all. It involves the active engagement

of residents, community groups and other stakeholders in shaping decisions that impact

their lives.Three core priorities for community trusts looking to play an effective role:

Effective stakeholder engagement. Structured collaboration with reputable partners

builds strong relationships, which foster mutual trust, create shared ownership of local

initiatives and establish the trust as a reliable local stakeholder.

Building local capacity. Community trusts are well positioned to invest in strengthening

leadership at a local level. This involves developing the capacity of local leaders as well as

providing support to marginalised groups.

Good governance. For community trusts in mining, this means compliance with

regulatory frameworks like the Trust Property Control Act, tax requirements and the

Mining Charter.

Strengthened institutional capacity and inclusive decision-making enable

municipalities to be more functional and responsive to the needs of their communities.

This creates an environment where all stakeholders work together more effectively to

bring about sustainable social impact.

*By Shamiso Chideme, senior client relationship manager, Tshikululu Social Investments

REGULATION 3630

The deadline to professionally register water process controllers by 30 June 2025 is a

critical step towards improving accountability in South Africa’s water sector. Regulation

3630 of the National Water Act mandates that all water and wastewater works be

managed by qualified professionals to ensure compliance – by registering all plant

supervisors at the Water Institute of Southern Africa (WISA).

“Process controllers essentially run the water and wastewater treatment plants

across the country by monitoring, operating and managing all the required processes,”

says Dr Lester Goldman, CEO of WISA. Over the past six decades, their role has significantly

evolved along with the increasing complexity of water purification, and the understanding

that water and wastewater go through some key processes, which need to be monitored

– with many of these now automated. ‘Regulation 3630 clearly states that the supervisor

of every licenced water or wastewater treatment plant in South Africa must now be a

senior process controller and be professionally registered,” adds Dr Goldman.

Municipalities with capacity issues can’t opt out of registering their process controller

or simply register one of their engineers or scientists instead, as either scenario would

make them non-compliant. The reason for specifying “senior process controller” is that

experts in engineering or natural science are highly specialised but don’t necessarily

have the competency to manage the water treatment processes and run the actual

plant itself.

Regulation 3630 will go a long way towards professionalising the 4 000 process

controllers in South Africa. The standardising of their education will produce better

qualified process controllers. It should inspire new entrants into the profession and

encourage continuous upskilling for those already on this career path.

“As the Blue Drop and Green Drop reports show, there is a positive correlation between

the number of trained professionals and performance in the water sector,” says Dr

Goldman, hinting at improvements in water quality and availability for residential and

commercial users.

Setting compulsory national standards for process controllers will strengthen

accountability in the daily operations of South Africa’s water and wastewater treatment

works. This, in turn, should lead to more transparency, better local governance and

ultimately to an improvement in water service delivery.

“Public and private water service institutions need to fast-track training for this

registration, because it’s a crucial investment in the water security of South Africa,”

concludes Goldman.

GAUTENG e-GOV LEADS THE WAY

The Gauteng Department of e-Government (e-Gov) is making public services better

through digital transformation, while also keeping a strong focus on protecting the

environment. The e-Gov is using the latest technology and developing smart energy

solutions, making sure their digital transformation is about being kind to the planet.

One key part of its strategy is to offer shared digital services throughout the

province. Services like Email-as-a-Service, Enterprise Resource Planning (ERP)

systems using SAP and the common Gauteng Provincial Network (GPN) help reduce

unnecessary technology use. This means less energy is consumed and fewer

emissions are produced.

SAP ERP is a software system that helps government departments manage

business functions like finance, HR, procurement and logistics in an integrated way.

The GPN is a high-speed, province-wide IT network that connects government

offices, departments and service points. It allows secure and reliable sharing of data

and digital services, helping to reduce duplication of systems and infrastructure.

Shifting to cloud computing and shared data centres has also played a big role in

lowering the province’s impact on the environment. These centralised centres host

various services in one place, using energy more efficiently and cutting down on the

carbon footprint that comes with scattered IT setups.

On the sustainability hardware front, the department is using solar power to

run some of its CCTV camera networks. This keeps communities safe while using

clean energy.

Looking to the future, e-GOV is exploring more green power solutions for

important projects like CCTV systems, public WiFi and other digital advancements.

By incorporating renewable energy sources, the department wants to create a

reliable system that works even during power outages and supports South Africa’s

green goals.

With each initiative, the Gauteng Department of e-Government demonstrates

that technology and environmental care can work together. Its journey toward

green technology serves as a fantastic example of responsible governance in our

digital world.


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SERVE AND DELIVER

TRANSFORMATION THROUGH COLLABORATION

Digital transformation is reshaping how governments serve their citizens, and the

collaboration between Microsoft and Boxfusion is a powerful example of that shift

in action. Leveraging Boxfusion’s in-depth understanding of public sector needs

and Microsoft’s scalable cloud technologies, the team co-created modern, efficient

solutions tailored for government operations.

From AI-driven chatbots to digitised internal processes, the project helped

eliminate bottlenecks and improve how services are accessed and delivered. This

partnership reflects a growing commitment to innovation in public service where

technology meets impact, and service delivery becomes more citizen-centric, secure

and agile.

BUDGET 3.0: A GROWTH-FOCUSED APPROACH

Finance Minister Enoch Godongwana delivered his much-anticipated Budget 3.0

address in May, with markets eager to learn how national treasury planned to

tackle the revenue shortfall caused by the cancelled VAT hike. With limited room to

increase taxes and little appetite to cut spending,

the budget emphasised promoting

economic growth as the primary

strategy for expanding revenue.

Spending and debt outlook

The combination of the cancelled

VAT hike and a weaker economic

outlook has led to tax revenue

projections being revised downward

by R61.9-billion over the next three

years. To partially offset this, the

government will increase the fuel

levy and strengthen SARS’s capacity

to enhance tax collection. These improved collection efforts could generate an

additional R20-billion to R50-billion in revenue annually.

Non-interest expenditure is expected to grow by an average of 5.4% over the

next three years, reinforcing the minister’s statement that this is not an austerity

budget. However, the country’s debt trajectory is now projected to peak at 77.4% of

GDP in 2025/26 – 1.2 percentage points higher than the estimate made in March.

Revised growth forecasts

Treasury’s trimmed growth forecast for this year, though lacklustre, is substantially

better than the 0.6% achieved in 2024. Growth is expected to accelerate to 1.6% and

1.8% in 2026 and 2027 respectively.

This is not overly exciting given that R1-trillion has been budgeted for in terms

of investment in infrastructure to lift future economic growth. Encouragingly,

according to the Bureau for Economic Research, growth could potentially reach

3.5% by 2029 should the benefits of structural reforms as laid out in Operation

Vulindlela be achieved.

By Reza Hendrickse, Portfolio Manager at PPS Investments

UJ RESEARCH STUDY UNLOCKS MUNICIPALITY POTENTIAL

In a move to address systemic inequalities within South Africa’s municipalities, the

University of Johannesburg’s School of Public Management, in partnership with

Infrastructure South Africa (ISA), has launched a transformative Local Government

Inclusive Growth Index (LGIGI). This index aims to assist local governance by

providing a tangible framework for measuring inclusive growth across all levels

of government.

The LGIGI comes at a time when South African municipalities grapple with

persistent socio-economic challenges, accentuated by stark disparities in wealth

distribution and access to essential services. Professor Daniel Meyer, the study’s

lead researcher, states, “We believe that the index will be a game-changer, enabling

local governments to pinpoint inequalities and implement targeted interventions to

ensure that every citizen benefits from economic progress.”

This index responds to President Ramaphosa’s urgent call for inclusive

economic growth articulated in the 2025 State of the Nation Address. It departs

from traditional economic metrics like GDP, revealing deeper insights into the

socio-economic fabric of municipalities. Prof Meyer highlights, ”By exposing

inequalities hidden by conventional statistics, we provide a crucial lens through

which policymakers can craft strategies aimed at equitable growth and improved

quality of life for all South Africans.

“This index empowers local authorities to engage with their communities,

understand specific disparities and tailor their responses effectively.” By focusing on

essential metrics such as poverty levels, income inequality, employment rates and

access to healthcare and education, the LGIGI positions inclusivity at the forefront

of municipal governance.

Aligned with the United Nations’ Sustainable Development Goals, particularly

those aiming to reduce inequality and promote decent work, the LGIGI represents

a significant leap forward in fostering socially equitable economic development

in South Africa. This new measurement tool is poised to facilitate vital dialogues

among community leaders, policymakers and citizens, ultimately cultivating trust

and cooperation in the journey towards a more inclusive South Africa.


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water

From tariffs to trust: rethinking cost

recovery in pro-poor water services

The Association of Water and Sanitation Institutions of South Africa explores how trust, transparency and tailored tariff

structures can help reimagine cost recovery in pro-poor water services, drawing on lessons from Kenya, Brazil and South

Africa’s own uneven track record.

Opinion piece by Ramateu Monyokolo, Chairperson of the Rand Water Board and Chairperson of the Association of Water

and Sanitation Institutions of South Africa

water

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WWater is considered a strategic national resource and is recognised

as a constitutional right in South Africa. Nevertheless, the

industry is experiencing a significant downturn. South Africa’s

municipalities are drowning in debt. Non-revenue water

averages 47% and consumer trust in public service delivery is

eroding. Billions are owed to water boards, and the culture of

non-payment continues to erode the foundations of water service

delivery. At the heart of this challenge lies a critical policy tension:

how to ensure sustainable cost recovery while protecting the

poorest from exclusion.

The governance of South Africa’s water sector is distributed

across various levels of government, with regulatory

responsibilities shared among the Department of Water and

Sanitation, municipalities, provincial departments, and the

treasury. This results in overextension, disparities, and variations

in standards enforcement. The current Water Services Authority

(WSA) model allows politically governed municipalities to act as

service providers, blurring lines of accountability.

As chairperson of the Association of Water and Sanitation

Institutions of South Africa (AWSISA), I believe these challenges

point to the absence of a strong, independent regulatory

framework that enforces standards, regulates tariffs, and protects

consumers and service providers. Regulatory independence is

a foundational prerequisite for restoring South Africa’s water

governance. Establishing an autonomous water and sanitation

regulatory body in South Africa is imperative.

Rebuilding trust will require

political will and consistent

institutional behaviour.

The unsustainable status quo

Municipal debt to water boards in South Africa has soared

past R28-billion. Many residential and institutional water users

either cannot or will not pay municipalities. The current system

penalises honest payers, undermines service reliability and

traps municipalities in a fiscal death spiral. Despite the

constitutional obligation to provide basic water services, the

financial underpinnings of this mandate are collapsing in the

hands of municipalities.

Non-payment is often symptomatic of poor-quality services

delivered by municipalities, eroding public trust. The trust

deficit between citizens and local government is amplified by

frequent service interruptions, billing disputes and a perception

that payments do not result in improvements. Fraud, corruption

and the presence of underqualified municipal officials only

deepen this divide.

Additionally, municipalities receive various infrastructure grants

from the national treasury to maintain and expand infrastructure

in anticipation of population growth. However, billions of rand


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water

ABOUT AWSISA – AWSISA STRATEGIC FOCUS

AWSISA was established in 2023 by the Water Boards

and Catchment Management Agencies, Water Research

Commission (WRC) and the Trans-Caledon Tunnel Authority

(TCTA) in South Africa.

AWSISA’s primary purpose is

To contribute to capacity building and professionalisation

of the water and sanitation sector through training and skills

development and special interventions to address key

challenges facing water and sanitation institutions and the

water services authorities.

To be the voice of water and sanitation institutions

through advocating best practices and influencing policy

and legislative developments.

To undertake and promote research, development, and

innovation in the water and sanitation sector, through

partnerships with research and academic institutions.

To foster and promote intra- and global strategic

partnerships and investments to leverage resources to

support water and sanitation institutions for sustainable

service delivery.

AWSISA’s strategic objectives closely align with

national priorities. It promotes integrated water resources

management (IWRM), enhances infrastructure development,

and improves service delivery across urban and rural areas.

It pursues the interests of water and sanitation institutions

across the value chain by providing an advisory role to the

sector on all matters from an IWRM perspective.

In executing its business strategy, AWSISA will forge

strategic partnerships locally, regionally, and globally and

will further collaborate on matters aimed at transforming

the investment outlook for water security and sustainable

sanitation.

AWSISA is a value-driven organisation that empowers its

members through advocacy, innovation, policy influence,

research development and capacity-building programmes.

OBJECTIVES – AWSISA has the following objectives:

Local government support

Supporting and participating in national strategic programs

Offering input in legislative and policy formulation

Fostering the sustainability of water and sanitation institutions

Leading innovation, research and development program

Promoting interventions to address water quality and pollution

Advocating for the building of climate-resilient water systems

Supporting interventions to strengthen governance and administration

in the sector.

are returned to the fiscus annually due to municipalities’ failure

to implement these grants effectively. This inefficiency feeds

a broader narrative of mistrust, both in grant allocation and

service delivery.

Cross-subsidisation and targeted subsidies

One approach has been to implement indigency policies and

lifeline tariffs. While the principle of cross-subsidisation, which

involves charging higher-income users more to support lowincome

consumers, is theoretically sound, its execution often

lacks effectiveness. Targeted subsidies often suffer from

misallocation due to outdated databases, political interference or

administrative inefficiencies.

Trust is the

cornerstone of

any sustainable

payment regime.


A reformed approach requires credible indigency registers,

geospatial targeting and institutional insulation from political

interference. Crucially, the indigent register ensures equitable

delivery and enables the national treasury to allocate evidencebased,

equitable shares and other grants to municipalities.

Behavioural economics and tariff design

Traditional tariff structures often assume rational economic

behaviour, but trust and perceived fairness drive willingness to

pay. Insights from behavioural economics suggest that simple,

transparent pricing and visible service improvements incentivise

better payment behaviour.

Several countries with comparable developmental contexts

have established independent regulators. Examples include the

National Water Supply and Sanitation Council (NWASCO) in

Zambia, which uses licensing administration and performance

reporting to enhance efficiency, the Entidade Reguladora dos

Serviços de Águas e Resíduos (ERSAR) in Portugal, which monitors

quality, pricing, and planning within a transparent and consultative

framework, and the Water Services Regulation Authority (Ofwat)

in the UK, known for its approach to tariff review.

In Kenya’s Embu County, pre-paid meters and community

scorecards have improved cost recovery and user satisfaction.

Brazil’s Sanear Programme embedded social norms and service

Water governance in South

Africa demands a shift from

decentralised discretion to

institutional integrity.

visibility into its tariff strategy, yielding higher collection rates in

low-income areas.

Inclusive, participatory cost models

Trust is the cornerstone of any sustainable payment regime.

Community engagement – through participatory budgeting, water

forums and user committees – can help co-design cost models

that communities believe in. In eThekwini, South Africa’s early

success with pro-poor water delivery was driven by transparent

communication, credible enforcement and ongoing dialogue with

community structures. Rebuilding trust will require political will

and consistent institutional behaviour.

Regulating the tariff value chain

There is a lack of consistent and transparent oversight regarding

tariff setting across the entire water value chain. The Department

of Water and Sanitation (DWS) sets its own tariffs without any

external regulatory oversight. In contrast, water boards adhere to

an extensive consultative process that involves municipalities, the

South African Local Government Association (SALGA), National

Treasury, and DWS.

Municipalities determine their tariffs independently, lacking

oversight or regulatory standards. The national parliament’s

role in tariff determination is ambiguous due to the absence

of a guiding legal framework. This fragmented system leads

to inconsistent pricing, institutional mistrust and inefficient

service delivery. Additionally, unilateral high tariff increases by

municipalities, without oversight or justification, often conceal

underlying inefficiencies and fragmented capacity gaps.

Groundwater solutions for informal settlements

Infrastructure and service challenges are especially severe in

informal and low-income peri-urban areas. One of the most

immediate solutions is to expand groundwater access through

boreholes and related technologies. These interventions reduce


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water

the need for costly infrastructure investments and can deliver

potable water without the traditional systems’ heavy purification

and distribution costs.

Tariffs in these areas can also be lower, reflecting the reduced

operational burden and promoting affordability. Addressing the

Simple, transparent pricing

and visible service

improvements incentivise better

payment behaviour.

COLLABORATION AND MEMBERSHIP

AWSISA collaborates with its members to achieve its

strategic objectives. This initiative encompasses the

eradication of water source pollution in partnership

with Catchment Management Agencies. Additionally, it

advocates for universal access to potable water and decent

sanitation in conjunction with water boards.

The organisation engages in innovative research

advocacy and development alongside the Water Research

Commission, water board research institutes and

institutions of higher learning, both locally and globally.

needs of informal settlements with innovative, cost-effective

solutions will be critical to closing the trust deficit and extending

dignified water access to all.

From tariffs to trust

Reforming cost recovery in water services to serve impoverished

communities is not solely a technical or financial task but a

crucial governance requirement. A trust-based, equity-sensitive

approach that integrates behavioural insights, community voices,

targeted support and regulatory consistency is more likely to yield

sustainable outcomes.

The time has come to move from punitive enforcement toward

participatory partnership. AWSISA will continue advocating for

regulatory frameworks and funding models that advance equity

and sustainability.

The case for an independent regulator becomes even more

urgent when seen through the lens of cost recovery: predictable

policy, credible enforcement and institutional fairness are vital to

restore trust in the water sector. An independent regulator would

provide technical continuity and depoliticised oversight, ensuring

a consistent application of water laws and performance standards.

Ensuring equitable access to water and decent sanitation

requires a paradigm shift in the delivery model. Water governance

in South Africa demands a shift from decentralised discretion to

institutional integrity. AWSISA proposes a partnership between

municipalities, water boards, and the private sector through

a special purpose vehicle (SPV). This aims to establish future

utilities, ensuring water security. S


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S

AWSISA welcomes

Operation Vulindlela II

Ramateu Monyokolo, chairperson of Rand Water and of

AWSISA, has been nominated by African Union members

as a potential candidate to succeed the current UN

Special Rapporteur on the Human Rights to Safe Drinking

Water and Sanitation, whose mandate expires in 2026.

Monyokolo’s nomination is based on his role and support

for justice, human rights and public service within the

water sector. The current Rapporteur is from Brazil.

AWSISA acknowledges President Cyril Ramaphosa’s launch of

Operation Vulindlela Phase II as a timely and necessary intervention

to reverse the tide of municipal dysfunction and infrastructure

collapse in South Africa.

The country faces an undisputed crisis: municipalities are distressed

financially and some are deemed dysfunctional. This is no longer

a governance issue; it threatens water security, economic growth,

public health and national stability. The second phase of Operation

Vulindlela, emphasising structural reform, professionalisation and a

new utility model for municipal service delivery, resonates strongly

with AWSISA’s long-standing policy positions.

Operation Vulindlela II aligns with AWSISA’s vision of:

(1) A modern, professional and accountable water sector.

(2) Implementing a utility model (special purpose vehicle).

(3) The professionalisation of local government.

(4) Integration of dependable electricity systems (electricity reliability

and the water-energy nexus).

(5) Reform of municipal financing.

(6) Direct settlement of municipal debt using equitable share

allocations.

Operation Vulindlela II represent a genuine opportunity to break

the cycle of infrastructure decay and declining services. While

Operation Vulindlela II presents a bold framework, AWSISA urges

the government to ensure that implementation is:

(1) Legally binding. Principles of ringfencing and accountability

must be legislated, not left to voluntary adoption.

(2) Coordinated with sector institutions. Water boards, Catchment

Management Agencies (CMAs) and other water institutions

must be central to reform planning.

(3) Community-focused. All reforms must include community

consultation, especially on pricing, service quality and access.

(4) Integrated with climate resilience. Infrastructure planning

must consider water scarcity, droughts and the impacts of

climate change.

TOWARDS SUSTAINABLE WATER AND SANITATION SERVICES

AWSISA is thrilled to host the Africa and Global South Water and Sanitation Dialogue. With the theme “Towards Sustainable Water

and Sanitation Services”, this milestone event will convene an unparalleled gathering of stakeholders across the water and sanitation

value chain. Attendees will include water boards, Catchment Management Agencies (CMAs), academic and research institutions,

municipalities, civil society organisations, investors, international water forums and associations, government officials, embassies,

suppliers, manufacturers and other key players driving innovation and change in the sector.

With South Africa assuming the G20 chairpersonship in 2025, AWSISA is seizing this unique opportunity to spotlight the critical

role of sustainable water and sanitation systems in tackling regional and global challenges. This conference will be a pivotal platform

for shaping policies, advancing technical knowledge and fostering impactful partnerships.

WHERE: Emperors Palace, Kempton Park, Gauteng

WHEN: 9-12 November 2025


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infrastructure

Turning South Africa into

a construction site: growing

the economy and creating jobs

Excerpts from the Keynote Address by Public Works and Infrastructure Minister Dean Macpherson at the

Public Works and Infrastructure Summit, 1 April 2025.

South Africa is known to have great plans, but often lacks the

follow-through required. Today, we are bringing an end to that

reputation. Today, we are taking a concrete step to show people that

they can judge our progress not through our words, but through

our actions.

It is an all-too-common story that in South African towns and

cities, infrastructure projects lay abandoned and half complete. In

too many places, infrastructure is in a state of decay, with water and

electricity interruptions a daily reality. Infrastructure budgets and

grants remain unspent, while poor planning leads to dysfunctional

buildings. And the state has proven itself unable to complete projects

on time and within budget.

Global research has shown that where infrastructure spending

is increased by 1% of GDP, the economy grows by an additional

1.5%. And in an environment such as South Africa, where we have

battled near stagnant economic growth and unacceptable high levels

of unemployment, that economic growth is what we desperately

need. Because a growing economy is the essential ingredient for

job creation. Additionally, the success or failure of infrastructure in

our towns and cities holds the key to our economic growth and job

creation projects.

The complexity of our infrastructure

challenges demands a united front.

When trains fail, water pipes burst or roads are closed, it is our

economy that suffers leading to unnecessary job losses. The City of

Johannesburg knows this all too well. This is why the Government

of National Unity has made it its number one priority to grow the

economy and to create jobs.

In the nine months since I have been in office, we have

worked tirelessly to reform the Department of Public Works and

Infrastructure to become the economic delivery unit. It remains my

goal to turn the Department into a highly effective vehicle which can

drive our infrastructure agenda. And, indeed, we are turning a new

leaf in the Department after many years of neglect and decay.

The Department is becoming a serious player in achieving South

Africa’s developmental goals. Over the past few months, we have

strengthened the Department through the filling of key vacancies

and introduction of a new accountability mechanism. This year, we

also launched a skills audit within the Department to ensure we have

the skills necessary to execute our mandate.

During the second meeting of the Minister and Members of

the Executive Council (MINMEC) responsible for Public Works

and Infrastructure from across the country, we also learned of the

slow pace of delisting of non-performing or corruption-accused

suppliers. Only one company has been delisted from supplying to

the Department since 2002. This is unacceptable and needs to be

urgently addressed if we want to reverse the culture of impunity.

This is why we have started working to reform our blacklisting policy

which will ensure that contractors who underperform or engage in

unethical practices will no longer have the privilege of working on

public projects.

The Construction Industry Development Board has also been

tasked to get ahead of underperforming contractors and blacklist

them without delay, and to ensure that they are unable to gain any

tenders from any sphere or entity of the State. Within the months

ahead, the pace at which companies are delisted should be rapidly

increased, with over 40 companies facing blacklisting.

We are transforming Infrastructure South Africa (ISA) into the

central point for all major infrastructure projects in South Africa.

The conclusion of the first bid window for project preparation valued

at R180-million attracted 220 bids valued at R1.23-trillion. It is thus

clear that South Africa does not have an infrastructure pipeline

problem. At the 2025 Sustainable Infrastructure Development

Symposium, we look forward to announcing the winning bids for

this window.

ISA is leading an innovative pilot project at four municipalities,

through the “adopt-a-municipality” programme, where ISA will play

a greater role in planning, execution and delivery of projects in these

test cases. This will help directly address the poor infrastructure

delivery we see on a local government level. We all know that it is at

the local government level where public infrastructure failures are

felt first-hand.

To improve our infrastructure delivery, the Council for the

Built Environment (CBE) has a major role to play. CBE, under the

leadership of Dr Msizi Myeza, has proven itself more than capable

of helping professionalise the industry to ensure that projects are

delivered on time and within budget.

One of the key areas the CBE can help to improve the state’s

functioning is with the Infrastructure Audit Programme. The

programme represents a game-changer for the Department of Public

Works and Infrastructure to ensure that there is always compliance

and optimal resource utilisation.

Over the years, the state has become overly reliant on external

consultants. Many government agencies depend heavily on


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external expertise, which has led to high costs and

inefficiencies. While consultants play a role, it is

imperative that we build internal capacity within the

Department and our entities to reduce this reliance

and ensure sustainable project delivery. To address

these challenges, we are launching the Infrastructure

Audit Programme. This is a strategic initiative that will

help strengthen internal auditing capacity within the

Department and our Property Management Trading

Entity. The primary objectives of the Infrastructure Audit

Programme are to:

• Ensure compliance, risk mitigation and

optimal resource utilisation.

• Address gaps in project execution, including

planning, design and procurement.

• Align our efforts with the National

Development Plan to ensure that infrastructure

investments contribute to economic growth

and job creation.

This programme will introduce built environment

professionals into the auditing process, providing

technical expertise in key disciplines such as construction

management, quantity surveying, engineering and

property valuation.

The first phase of implementation, which began

in 2024, has already deployed 15 practitioners – a

dynamic mix of graduates and registered professionals

– who are now actively working on high-risk areas such

as immovable asset management, lease agreements

and facilities maintenance.

By developing internal capacity, we create jobs for

young professionals and reduce reliance on external

consultants, strengthening infrastructure delivery

while empowering our people.

The success of this initiative depends on

collaboration between government entities,

professional councils and the private sector. We must

work together to strengthen governance frameworks,

share best practices and innovate in infrastructure

project monitoring and reporting.

The Department is becoming a

serious player in

achieving South Africa’s

developmental goals.

To truly redefine public works, we must embrace

a new approach – one that sees collaborative

partnerships between the public and private sectors

as central to our success. There’s no-one quite like the

private sector to lead the charge on new interventions

with infrastructure delivery. We know that the

government cannot do it alone.

The complexity of our infrastructure challenges

demands a united front, where capability, innovation

and accountability are shared. Together, we can turn

South Africa into a construction site – a place where

every infrastructure project lays the foundation for

future growth and opportunity.

Together, we can build South Africa. S


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infrastructure

Infrastructure is

the lifeline of GNU

As South Africa’s Government of National Unity charts its course despite

challenges, the spotlight remains on delivery – and few areas are as urgent

or promising as infrastructure.

By Emeka Umeche, Ntiyiso Consulting Group

The stark reality is undeniable: despite years of investment and

policy reform, much of South Africa’s economic infrastructure

continues to underperform. As President Cyril Ramaphosa candidly

acknowledged in his State of the Nation address this year, “In many

cities and towns across the country, roads are not maintained, water

and electricity supply are often disrupted, refuse is not collected and

sewage runs in the streets.” These challenges are evident in three

key sectors:

Energy infrastructure. Eskom has shown modest improvements

but continues to grapple with significant operational challenges. A

report by the Council for Scientific and Industrial Research shows

that loadshedding cost the South African economy approximately

R2.9-trillion in 2023. While loadshedding has become less frequent,

“load reduction” continues to affect previously disadvantaged

communities disproportionately, widening existing inequality gaps.

Water infrastructure. The Department of Water and Sanitation

has reported alarming water losses in municipalities, averaging

41% due to theft, leaks and bad management. The breakdown in

water infrastructure requires a fundamentally different approach

to energy challenges, given that water is a finite resource in an

already water-stressed country. The economic ramifications of water

shortages are particularly severe, with some municipalities unable

to support industrial expansion due to insufficient supply capacity.

Logistics infrastructure. Transnet’s rail network remains critically

underutilised. In its annual report for 2023/24, the parastatal

admits that it “has faced several challenges that have threatened the

sustainability of the organisation and compromised the efficiency

of its operations”.

Loadshedding cost the

South African economy approximately

R2.9-trillion in 2023.

The report states that “these challenges were further compounded

by locomotive shortages and their unreliability due to wear and

tear, critical equipment breakdowns, ongoing security incidents and

infrastructure challenges”.

Perhaps most concerning is South Africa’s ports performance. The

World Bank’s Container Port Performance Index 2023 placed Cape Town

as the worst performer globally while Durban – Africa’s busiest

container terminal – is ranked 398 out of 405 ports assessed.

Ntiyiso Consulting Group suggests these strategic approaches for

immediate impact:

1. Asset management optimisation

The fastest path to meaningful impact lies not in new construction

but in smarter management of existing assets. Across all sectors

– water, energy, roads and rail – hundreds of billions of rands’

worth of infrastructure operates far below optimal capacity. Rather

than defaulting to new builds, priority must shift to extracting

maximum value from existing infrastructure. Adopting a totalcost-of-ownership

mindset – where infrastructure is valued not just

by construction cost but long-term performance – can significantly

improve return on investment.

If the Government of National Unity (GNU) is looking for quick

wins, this is where to begin.

2. Economic impact-driven project selection

Infrastructure earmarked for development must go beyond concrete

and compliance. Every project should be assessed for its economic

impact – not just in terms of job creation, but in how it contributes

to GDP, poverty alleviation, local industry growth and long-term

value chains. South Africa already has the necessary frameworks.

They include Infrastructure South Africa’s project preparation

methodologies and the Development Bank’s economic impact

assessment tools. What’s required now is the consistent application

of these tools.

The objective must be prioritising catalytic infrastructure:

projects that unlock potential across multiple sectors and create

economic momentum in previously overlooked municipalities. This

is how we shift from infrastructure as expenditure to infrastructure

as investment.

3. Municipal capacity-building

No infrastructure strategy, however well-conceived, will succeed

without capable implementing institutions – particularly at municipal

level. Local governments serve as the ultimate custodians of water,


infrastructure

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capital while diversifying the energy mix. These models show that

when public-private partnerships are structured with clarity and

accountability, they can deliver real, lasting results.

Despite budget constraints, the

infrastructure gap can be overcome.

electricity, sanitation and road networks. Yet many municipalities

face critical shortages of technical skills, systems and governance

frameworks to manage these assets effectively. Simple technology

and data-driven interventions could yield immediate improvements

in municipal infrastructure management, addressing an existential

threat in the water sector.

Strengthening municipal capacity through targeted interventions

is possible. In one local municipality, for example, its wastewater

treatment works were successfully restarted after several years of

inactivity, demonstrating how providing technical support can truly

improve infrastructure.

4. Private sector partnerships

Despite budget constraints, the infrastructure gap can be overcome.

The private sector has demonstrated what is achievable when

provided with the right frameworks. The Sembcorp Siza Water

Concession – a contract aligned with public-private partnership

strategic goals that supports the Ilembe District Municipality in

fulfilling service delivery – exemplifies this potential. The initiative

ensures that the communities it serves have access to clean, safe and

adequate water supplies. Siza Water has outperformed many public

utilities in terms of service delivery and affordability, reducing water

loss rates to less than 15%, significantly below the national average

of over 40%.

Similarly, South Africa’s Renewable Energy Independent Power

Producer Procurement Programme has attracted billions in private

Reimagining infrastructure governance

A truly transformative approach to infrastructure management

would involve treating each major infrastructure component as

an independent business entity. This would require establishing

separate entities with dedicated balance sheets and governance

structures, operationally distinct from municipalities.

Such entities would feature professional management teams

and independent boards, directly accountable for performance

metrics and required to deliver dividends to their shareholders (the

municipalities). This model would introduce private sector discipline

to infrastructure management while reducing opportunities for

wasteful expenditure and improper procurement.

The structure would also improve accountability and attract

private investment by providing greater confidence that revenues

would be properly managed. Addressing procurement shortcomings

and providing targeted support to municipalities would further

reduce financial leakages.

Despite significant challenges, there are grounds for optimism

regarding infrastructure development. With focused interventions,

South Africa could achieve GDP growth beyond the 3% target. The

key lies in accountability: by implementing systematic changes that

hold stakeholders responsible for infrastructure performance

and financial management, South Africa can begin to realise the

potential of its infrastructure investments.

The GNU’s legacy will largely be determined by its ability to

translate infrastructure vision into tangible implementation –

transforming South Africa’s infrastructure from a constraint to a

catalyst for inclusive growth. S

*Emeka Umeche is an associate partner and a certified project manager at

Ntiyiso Consulting Group.


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skills development

Entrepreneurial skills development

drives job creation for SA youth

Experience garnered by CHIETA has reinforced the belief that entrepreneurship is one of the most powerful tools for driving job

creation among our nation’s youth.

By Yershen Pillay*

EExperience garnered by the Chemical Industries Education and

Training Authority (CHIETA) has invested R30-million in small

business growth. CHIETA has also partnered with 200 cooperatives,

including African Alabaster, a beauty products manufacturer in the

King Cetshwayo District in northern KwaZulu-Natal, to train local

aspiring entrepreneurs in soap and beauty product making, especially

targeting women and youth. Some candidates are suppliers for local

B&Bs and intend to supply national chain stores. There is high demand

for this training programme as it addresses the bridge between

poverty and unemployment, not forgetting the possibility of job

creation opportunities.

Another project of CHIETA’s is the Smart Food Card programme, which

has been rolled out successfully in various communities. For example,

Nare Noko Buthane, a resident from Hospital View in Tembisa who has

been unemployed for 10 years, started a local catering business with

resident Lorraine Ribisi. Many lives have been changed through this initiative.

We must commit to building a powerful

generation of young entrepreneurs who

drive economic transformation.

According to Stats SA, South Africa’s youth unemployment rate remained

alarmingly high, at 45.5% in the third quarter of 2023, so urgent and decisive

interventions are needed. There is no single solution to this crisis but one

fundamental pillar must be comprehensive skills development for aspiring

young entrepreneurs. We need a structured approach to nurturing business

skills, providing access to capital and ensuring market linkages for youthdriven

enterprises.

BRIDGING THE GAP

The Organisation for Economic Cooperation and Development (OECD) has

highlighted the global disconnect between young people’s entrepreneurial

aspirations and their actual participation in business ownership. According

to the OECD, while 45% of young people express a preference for

entrepreneurship over employment, only 8% of those aged between 18 and

30 years are actively managing a business. This untapped entrepreneurial

potential is a challenge CHIETA is addressing through Vision 2025, a

strategy to support 2 000 SMMEs and 200 startups by 2025 through skills

development, funding and business incubation. By 2023, CHIETA had

already supported over 1 000 entrepreneurs, providing them with the skills

and resources necessary for business success. Our strategy ensures that we are

not just training job seekers but producing job creators who will contribute to

a thriving economy.

CHIETA expanded its entrepreneurial support programmes in 2024,

with several new initiatives designed to foster business sustainability, digital

innovation and green economy growth:


Green economy and sustainability entrepreneurship programme

With South Africa’s focus on clean energy and sustainability, CHIETA

supports entrepreneurs in green hydrogen, waste management and renewable

energy, including:

• Funding for green startups in the chemical and renewable energy sectors.

• Skills development in sustainability and green hydrogen technologies.

• Market access support through industry partnerships.

Smart Skills Centres for digital entrepreneurs

In line with the Fourth Industrial Revolution (4IR), CHIETA has launched

Smart Skills Centres, offering:

• Training in AI, automation and digital business management.

• Experience with robotics, smart manufacturing and data analytics.

• Support for SMMEs integrating technology into their businesses.

Funding and mentorship for entrepreneurs over 40

Addressing barriers faced by mid-career entrepreneurs, CHIETA offers:

• Seed funding for professionals transitioning into business ownership.

• Business mentorship to ensure sustainable growth.

Student debt relief for entrepreneurs

One of the biggest obstacles young entrepreneurs face is student debt, which

limits their ability to invest in their businesses. CHIETA provides:

• Financial relief to graduates who are launching startups.

• Business mentorship and financial planning training.

Support for retrenched workers

In response to rising job losses, CHIETA is helping retrenched workers

transition into self-employment through:

• Entrepreneurship training and reskilling initiatives.

• Funding to start small businesses in key industries.

For the 2024/25 financial year, CHIETA has allocated R300-million to subsidise

SMMEs through entrepreneurial training, business incubation, learnerships,

bursaries and funding programmes. This investment will help offset the

non-entrepreneurial culture in South Africa and instil a strong business

mindset among youth. CHIETA’s efforts create a lasting impact. An impact

study in 2023 showed that 80% of SMMEs supported by CHIETA reported

business growth - over 1 200 jobs have been created within the last three years.

A COLLECTIVE EFFORT

While CHIETA remains focused on endorsing entrepreneurs in the

chemical and manufacturing sectors, the call to action extends to all

industries. South Africa’s economic future depends on fostering a robust

entrepreneurial ecosystem that promotes innovation, competition and

inclusive growth. We must commit to building a powerful generation

of young entrepreneurs who drive economic transformation. The

youth are not just job seekers; they must be empowered to become

job creators. CHIETA’s initiatives offer hope that investment in

entrepreneurship will bring tangible rewards. S

*Yershen Pillay is CEO of the Chemical Industries Education and

Training Authority (CHIETA).

*Yershen Pillay,

CEO of CHIETA.

Management Act (PFMA).

operational standards that govern service providers.

company accreditation.

Contact Details

Email: info@psira.co.za |WhatsApp: 082 803 4329| www.psira.co.za

133 3850|

:086 Centre |Call 5500 337 12 +27 Telephone:

Eco Glades Office Park, Block B, 420 Witch Hazel Avenue,Highveld Pretoria South Africa

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of Section 2 of the Private Security Industry Regulation Act (Act No 56 of 2001). The

terms in 2002 in established (PSiRA) Authority Regulatory Industry Security Private The

the Act. PSiRA is a National Public entity listed under Schedule 3A of the Public Finance

of terms in issued regulations the and Act the from originates PSiRA of mandate strategic

property, and infrastructure, it is vital for clients to understand the regulatory and

people,

safeguarding in role critical increasingly an plays industry security private the As

framework set by the Private Security Industry Regulatory Authority (PSiRA). This includes

regulatory

the with compliant fully are providers service that ensure must Organisations

proper registration, accredited training, firearm competency where applicable, and

The Private Security Industry Regulatory Authority (PSiRA) established in 2002 in terms

The Private Security Industry Regulatory Authority (PSiRA) established in 2002 in terms



strategic mandate of PSiRA originates from the Act and the regulations issued in terms of

strategic mandate of PSiRA originates from the Act and the regulations issued in terms of





As the private security industry plays an increasingly critical role in safeguarding people,

As the private security industry plays an increasingly critical role in safeguarding people,





Organisations must ensure that service providers are fully compliant with the regulatory

Organisations must ensure that service providers are fully compliant with the regulatory







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S

skills development

The professionalisation of the public

service sector

South Africa as a developmental state needs a skilled, motivated and capable public service sector – one that upholds standards

of excellence in service delivery and ethical conduct.

By Ashlee McLachlan

SSkills programmes offered by the Public Service Sector Education

and Training Authority (PSETA) are effective and innovative

learning initiatives that have been purposefully designed to

promote these standards and have a lasting impact on the public

sector. The post-school education and training system (PSET),

which encompasses skills development organisations, is central to

catalysing and bolstering skills development in South Africa.

Various national policies and plans, including the National

Development Plan 2030 (NDP), National Skills Development

Plan, National Professionalisation Framework 2023 and the

Medium-Term Strategic Framework, call for the integration

of PSET institutions in development initiatives as a means of

tackling education shortfalls, unemployment and poverty. The

PSET institutions include the PSETA, one of the 21 SETAs, which

ensures that skills needs experienced by national and provincial

government departments, parliaments, legislatures and other

public entities are met to realise the “capable and developmental

state” envisaged by the NDP.

The PSETA’s mandate is to focus on transversal skills needs –

skills that can be applied to a myriad of work settings – given the

multi-sectoral nature of government departments.

One of the ways in which PSETA addresses skilling requirements

within the public service sector is by providing skills programmes.

Skills programmes are designed to be short (approximately five days)

targeted interventions intended to address a skills or knowledge

gap. These programmes are credit bearing and are typically

offered to public service officials at accredited Skills Development

Providers (SDP). SDPs ensure that the relevant training is done and

is applicable to the public service sector context.

As opposed to longer programmes, skills programmes enable

public service sector officials to close immediate skills gaps and

to acquire skills that will enable them to remain relevant in the

sector over the long term, all without having to be absent from

work for extensive periods. In so doing, the programmes constitute

a response to the Public Service Act (No.103 of 1994), which

urges government departments to train public service officials

continuously in the effort to capacitate the public service sector.

In this context, it commissioned Urban-Econ Development

Economists and Urban-Econ:NIKELA to conduct an impact

assessment study aimed at measuring the effects of the programmes

on employed public service officials. The study revealed that

PSETA’s skills programmes have a marked impact on the skills,

work ethic and behaviour of beneficiaries.

The relevance of skills programmes was an important assessment

criterion for this study, which sought to determine whether the

programmes were accurately targeting the skills needs of the public

The PSETA’s mandate is to focus

on transversal skills needs.

sector. The study surveyed 326 skills programme beneficiaries, of

which 87% indicated that the courses had addressed skills gaps

they were experiencing. The skills taught during the programmes

included those that pertain to improved service delivery, ethical

conduct, change management and conflict resolution.

Nearly all the beneficiaries (98%) indicated that they had found

the programmes to be relevant to the public service sector overall,

enabling them to refresh their knowledge of the Public Service

Code of Conduct and the Batho Pele principles. The public service

sector is woven into most aspects of social and economic life in

South Africa.

To ensure that PSETA programmes are applicable to the full

spectrum of government workers, courses incorporate a focus

on the transversal skills required across departments. Such skills

include those relating to communication, management and

THE EIGHT PRINCIPLES

BATHO PELE: PEOPLE FIRST

Consultation

Service standards

Access

Courtesy

Information

Openness and transparency

Redress

Value for money


skills development

S

problem solving. Encouragingly, a significant share of beneficiaries

(86%) reported that their transversal skills improved because of

the PSETA skills programmes.

Employers and SDPs interviewed for the study said that the

programmes had had a significant impact on the professional

disposition of participants. Beneficiaries were perceived to have

exited the programmes with a new perspective on how to approach

work in the public service sector. Specifically, the programmes were

seen to have reminded them of the importance of high-quality

customer service and upholding ethical principles in all facets of

their work. Employers and SDPs viewed these improvements as

contributing to the professionalisation of the sector.

This understanding was echoed by beneficiaries, many of whom

indicated that the programmes should be made widely available

to public service officials in the push for greater professionalism

through improved quality service delivery skills. An emphasis

was placed on the positive impact these programmes have on the

broader public. Further investment in the skills programmes will

serve to enhance service delivery and build a workforce that can be

proud of its place in the broader society. S

Courtesy of the Department of Public Service and Administration.

CALL FOR ETHICAL GOVERNANCE

The Portfolio Committee on Higher Education has

welcomed the briefing from the Department of

Higher Education and Training (DHET) regarding

the appointments of Sector Education and Training

Authorities (SETAs) board members. The committee has

acknowledged the progress made by some SETAs, such

as achieving clean audit reports, but emphasised that

others still require significant improvements in their

governance systems.

The Minister of Higher Education and Training, Dr

Nobuhle Nkabane, informed the committee that the

Skills Development Act is among the key pieces of

legislation targeted by her department for amendment

in the near future.

According to the DHET, the National Skills Authority

assessed SETA boards to evaluate their effectiveness

in fulfilling their fiduciary responsibilities. The study

revealed that there are 315 board member positions

across all 21 SETAs, with each SETA comprising 15

members as per the standard SETA Constitution. The

DHET also highlighted that board members generally

possess high levels of educational qualifications, which

align with the specific skills and knowledge required for

effective governance within their respective sectors.

Committee chairperson, Tebogo Letsie, said, ‶We

implore the DHET to ensure the appointment of ethical

board members for SETAs. We do not want individuals

who view this as an opportunity to enrich themselves

at the expense of the sector. Instead, they must see

this sector as a vehicle for uplifting young people and

driving meaningful change.″

Letsie added that SETAs must critically review their

annual performance plans to ensure they are not merely

target-driven exercises but are instead informed by the

country’s needs and aligned with the aspirations of

young people.


S

digital transformation

One Person.

One Government. One Touch.

With the newly launched plan of modernising the delivery of essential government services, government aims to ensure that

conducting administrative tasks with the state is easier for citizens.

This will be achieved through the Roadmap for the Digital Transformation of

Government, which sets out a focused plan to modernise the delivery of

government services through investment in digital public infrastructure.

“With this roadmap, we are shifting from the fragmented past towards

a unified, people-first, whole-of-government approach.

“The roadmap is not just a plan to use technology to improve the way

we do things. It is a transformative vision to entirely reform the way that

citizens can interact with government,” Minister of Communications and

Digital Technologies, Solly Malatsi, said.

The roadmap will be implemented as part of Operation Vulindlela

Phase II, as it focuses on implementing reforms in three new areas,

including digital transformation. These crucial digital reforms will enable

all citizens to access seamless government services through a single

trusted platform. This will be driven through improvements in identity

verification, real-time payments and data exchange. Operation Vulindlela

Phase II is a joint initiative between the presidency and national treasury

to accelerate the implementation of structural reforms to enable economic

growth and job creation. The digital transformation roadmap will focus

on four catalytic initiatives:

• A digital identity system will allow South Africans a simple way to

verify themselves and access services remotely.

• A data exchange framework will eradicate the silo effect in

government and allow greater efficiency and coordination in how

it operates.

• A digital payments system

that provides universal access

to secure, low-cost payment

options between government

and citizens.

It is about giving

our people back

their time.

Minister of Communications

and Digital Technologies,

Solly Malatsi.

• A single, zero-rated digital services platform where citizens can

access all government services and information.

“Collectively, these initiatives will help us get closer to achieving our vision

of an inclusive, secure and people-centred digital government. Together,

these initiatives will illustrate to the world what we mean when we say:

One Person. One Government. One Touch.

“At the heart of all of this, is our quest to ensure that citizens’ digital

experience with government services is convenient, cost-effective, reliable

and user-friendly,” the minister said. He went on to explain that the

roadmap for digital transformation is about efficiency in government

and equity for people.

“It is designed to reduce inequality in access to services, and to address

the barriers to opportunity that come with that inequality. It is about

reducing the hidden tax on the poor.

“At a time when connectivity has become such a central part of our

lives, the ease of dealing with government must be the same across our

country,” the minister said. He said the digital transformation roadmap

is not just about what government can do better.

“It is about who government can serve better. It is about giving our

people back their time, so that they can spend it on things that matter

more to them. It is about giving them more access to opportunity, so that

they have a better chance of living up to their full potential. It is about

trust, dignity and doing things better. It is about a more inclusive and

resilient South Africa,” the minister said.

To ensure that all government departments work towards the same

goal, the president has appointed an Inter-Ministerial Committee (IMC),

OPERATION VULINDLELA

Digital transformation is one of the three new reform areas to be

implemented under Phase II of Operation Vulindlela.

To operationalise this new reform area, Cabinet has approved

the Roadmap for the Digital Transformation of Government as a key

pillar of Operation Vulindlela. The roadmap sets out a focused plan

to modernise delivery of government services through investment in

digital public infrastructure.



S

Reformation of transformation

Every day, millions of South Africans rely on the government

for essential public services, whether to access a grant, apply

for an ID, collect a payment or register for school. These

services should be easier to access, more reliable and less

complicated to navigate for the people who depend on them.

TECHNOLOGY TRANSFORMATION

The roadmap gives effect to the digital transformation pillar

of Phase II of Operation Vulindlela, which was launched by

President Cyril Ramaphosa on 7 May 2025. It aims to deliver on

the Government of National Unity’s commitment to inclusive

growth, efficient service delivery and ensuring that government

services are accessible to all South Africans.

A flagship initiative of the 7th Administration, the roadmap is

anchored by the Digital Public Infrastructure (DPI) principles of

delivering integrated public services safely, securely and efficiently.

At its core, the roadmap is about creating a One Person, One

Government, One Touch system – a single, trusted platform that

connects people to services.

The inter-departmental working group, co-chaired by the

Department of Communications and Digital Technologies (DCDT)

and national treasury, will collaborate with government departments

to drive the technical work that will deliver on the initiatives outlined

in the roadmap. These initiatives include the rollout of a digital

identity system to verify identities remotely, the development of a

data exchange framework to streamline government processes, the

introduction of a digital payments system for secure transactions

and a zero-rated digital services platform where citizens can access

government services without incurring data costs. For ordinary South

Africans, this means that tasks like renewing a driver’s licence,

applying for social grants or accessing health records will become

simpler, faster and less costly.

The roadmap is not just about modernising systems; it’s about

reducing the cost of accessing services and ensuring that government

services work as efficiently as the best private sector platforms.

which is chaired by Minister Malatsi. The work of the IMC will be

supported through an inter-departmental working group, responsible

for ensuring integration across all government departments.

“With our collective commitment to agility, collaboration, innovation,

resilience and sustainability, we will use all the tools at our disposal to

ensure success within our target timelines,” the minister said.

In recent years, the government has taken important steps to

improve the quality of and access to services. Digital platforms have

expanded in many areas, making it possible to file taxes, apply for

grants and access some services online. But for too many people, the

experience of accessing public services remains a time-consuming

and expensive exercise.

This is the start of a new chapter in

how the government delivers.

Information is hard to find, processes are often duplicated and

some departments still operate in ways that are incompatible with

the digital age and the evolving expectations of citizens. These

issues affect everyone, but they are most challenging for the poor

and those who reside far from government service centres.

This roadmap is government’s commitment to change this

situation. It sets out a focused plan to modernise how we deliver

services by investing in shared systems, improving coordination and

removing the barriers that make it difficult for people to get what

they need. The roadmap outlines better ways to verify identity,

reduce fraud, share data safely, make and receive payments and

access services through a single trusted platform.

This is the start of a new chapter in how the government delivers.

Its success depends on how we work together to implement

it across departments, spheres of government and the people

we serve. This is an opportunity to deliver services differently.

This roadmap is a valuable guide. Now we must do the work to

make it happen with improved coordination, greater urgency and

a shared responsibility. S

Foreword in South Africa’s Roadmap for the Digital Transformation of

Government by Cyril Ramaphosa, President of South Africa.

It is about who government

can serve better.

To drive implementation of the roadmap, the presidency is establishing

the Digital Service Unit (DSU) to coordinate this whole-of-government

effort to modernise services. The presidency has appointed South

African tech entrepreneur, Melvyn Lubega, to lead the DSU. Lubega

is a globally recognised technology pioneer, who co-founded Go1 – a

platform used by businesses, non-profit organisations and governments

in more than 60 countries. He has advised governments in Africa, Asia

and Europe on digital transformation programmes. S


S


Global study

reveals trust

of AI remains

a critical

challenge

A global study on trust in Artificial Intelligence (AI)

released recently reveals that more than half of the

people globally are unwilling to trust AI, reflecting

an underlying tension between its obvious benefits

and perceived risks.

TThe Trust, Attitudes and Use of Artificial Intelligence: A global study 2025

led by Professor Nicole Gillespie, chair of trust at Melbourne Business

School at the University of Melbourne and Dr Steve Lockey, research

fellow at Melbourne Business School, in collaboration with KPMG, is the

most comprehensive global study into the public’s

trust, use and attitudes towards AI.

The study surveyed over 48 000 people across

47 countries between November 2024 and January

2025. It found that although 66% of people are

already intentionally using AI with some regularity,

less than half of global respondents are willing to

trust it (46%).

When compared to the last study of 17 countries

conducted prior to the release of ChatGPT in 2022,

it reveals that people have become less trusting and

more worried about AI as adoption has increased.

“The public’s trust of AI technologies and their

safe and secure use is central to sustained acceptance and adoption.

Given the transformative effects of AI on society, work, education and

the economy, bringing the public voice into the conversation has never

been more critical,” Prof Gillespie says.

AI at work

The age of working with AI is here, with three in five (58%) employees

intentionally using AI, and a third (31%) using it weekly or daily. This

high use is delivering a range of benefits, with most employees reporting

increased efficiency, access to information, and innovation. Almost half

(48%) report AI has increased revenue-generating activity. However, the

use of AI at work is also creating complex risks for organisations. Almost

half of employees admit to using AI in ways that contravene company

policies, including uploading sensitive company information into free

public AI tools like ChatGPT.

Many rely on AI output without evaluating accuracy (66%) and are

making mistakes in their work due to AI (56%). What makes these


There is a clear

public demand for

international law and

regulation, and for

industry to partner

with government.

risks challenging to manage is that over half (57%) of employees say

they hide their use of AI and present AI-generated work as their own.

This complacent use could be due to the governance of responsible

AI trailing behind. Only 47% of employees say they have received AI

training, and only 40% say their workplace has

a policy or guidance on generative AI use. It

may also reflect a sense of pressure, with half

concerned about being left behind if they do

not use AI.

“The findings reveal that employees’ use of

AI at work is delivering performance benefits

but also opening up risk from complacent

and non-transparent use. They highlight the

importance of effective governance and training,

and creating a culture of responsible, open and

accountable AI use,” adds Prof Gillespie.

AI in society

Four in five people report personally experiencing or observing the

benefits of AI, including reduced time spent on mundane tasks,

enhanced personalisation, reduced costs and improved accessibility.

However, four in five are also concerned about risks, and two in five

report experiencing negative impacts of AI. These range from a loss of

human interaction and cybersecurity risks through to the proliferation of

misinformation and disinformation, inaccurate outcomes and deskilling.

About 64% of people are concerned that elections are manipulated by

AI-powered bots and AI-generated content.

A total of 70% believe AI regulation is required, yet only 43%

believe existing laws and regulations are adequate. There is a clear

public demand for international law and regulation, and for industry

to partner with government to mitigate these risks. A staggering

87% of respondents also want stronger laws to combat AI-generated

misinformation and expect media and social media companies to

implement stronger fact-checking processes.


S

“The research reveals a tension where people

are experiencing benefits from AI adoption at

work and in society, but also a range of negative

impacts. This is fuelling a public mandate for

stronger regulation and governance of AI, and

a growing need for reassurance that AI systems

are being used in a safe, secure and responsible

way,” continues Prof Gillespie.

KPMG International’s global head of artificial

intelligence, David Rowlands, says the report

highlights opportunities for organisations to

lead the way in providing greater governance

and taking a proactive approach to building

trust with employees, customers and regulators.

“It is without doubt the greatest technology

innovation of a generation, and it is crucial that

AI is grounded in trust, given the fast pace at

which it continues to advance. Organisations

have a clear role to play when it comes to

ensuring that AI is both trustworthy and

trusted. People want assurance over the AI

systems they use, which means AI’s potential

can only be fully realised if people trust the

systems making decisions or assisting in them.

This is why KPMG developed our Trusted AI approach, to make trust

not only tangible but measurable for clients,” says Rowlands.

“The findings reaffirm what we’re witnessing across many African

markets – an openness to innovation and a readiness to harness AI for

real-world impact. Africa is not just adopting AI; it is embracing it with

purpose. Across Africa, citizens and businesses alike are seeing AI as a

lever for socio-economic progress, driving efficiency, accessibility and

innovation across sectors. This higher trust and adoption in emerging

economies is a signal that the global AI narrative must be more inclusive,

recognising that Africa is not on the sidelines, but is in fact helping to

lead the way,” says Marshal Luusa, partner, technology and innovation,

KPMG in Africa.

Emerging economies lead the way

People in emerging economies report higher adoption of AI both at

work and for personal purposes, are more trusting and accepting of

AI, and feel more optimistic and excited about its use, compared to

advanced economies. They also self-report higher levels of AI literacy

(64% vs 46%) and training (50% vs 32%), and importantly, more

benefits from AI (82% vs 65%), compared to people in advanced

economies. In emerging countries, three in five people trust AI systems,

while in advanced countries, only two in five trust them.

“The higher adoption and trust of AI in emerging economies is likely

due to the greater relative benefits and opportunities AI affords people

in these countries and the increasingly important role these technologies

play in economic development,” adds Prof Gillespie

“This report highlights a pivotal moment for Africa in the global

AI journey. While trust in AI remains a global challenge, many African

nations stand out for their optimism, growing adoption and recognition

of AI’s transformative potential, especially in bridging development

gaps in healthcare, education and financial inclusion. However,

increased use must be matched with responsible governance, robust

public-private partnerships, and regionally relevant AI literacy and

regulation. In Africa, we have a unique opportunity to shape an AI

future that is not only innovative but also inclusive and trustworthy,”

concludes Luusa. S

Advancing public sector with digital transformation

Case Study: accelerating digital transformation in civic services through Microsoft and Boxfusion collaboration.

Customer challenge

A key national government department in South Africa, tasked with delivering vital civic

and immigration services, faced growing pressure to modernise. With responsibilities

including identity verification, passport and visa issuance, as well as immigration affairs,

its manual, paper-based processes were impeding efficiency and citizen satisfaction

– especially during peak periods. The department required agile digital solutions to

improve service delivery, streamline internal workflows and enhance accessibility.

How we engaged

Microsoft, in collaboration with Boxfusion, engaged the department as a unified

team – comprising the account team, MEA independent software vendor (ISV) partner

development management (PDM), public sector specialists, global partner solutions

(GPS) ISV and Boxfusion. This integrated approach reinforced the strategic partnership

between Microsoft and Boxfusion and ensured alignment with the department’s broader

digital transformation roadmap.

Our joint solution

Boxfusion, a leading public sector-focused ISV

in South Africa, provided cloud-based digital

transformation solutions powered by Microsoft

Azure. Key solutions included:

• Botsa. An AI chatbot offering 24/7 support

via Microsoft Teams and WhatsApp to automate

internal queries and streamline communication.

• SmartCommittees. A platform to digitally

distribute meeting packs and schedules, reducing

reliance on paper.

• Time & Attendance. A mobile-based system to

monitor employee attendance using geolocation

for verification.

These solutions, fully integrated within

Microsoft’s cloud ecosystem and available via

the Azure marketplace, enhanced productivity,

transparency and governance.

www.boxfusion.io

info@boxfusion.io

S

entrepreneurship

Empowering SA’s township economy

through cashless transactions

In the heart of South Africa’s vibrant township economy, valued at an

estimated R750-billion, a transformative shift is taking place. Small to

medium-sized businesses are flourishing as the adoption of cashless

transactions grows.

D

Despite the widespread availability of banking services, cash remains dominant

and collaboration between private and public stakeholders is essential to

address perceptions, drive down costs and increase the uptake of digital

payment solutions.

According to research by Statista, while eight out of 10 South African adults

have a bank account, 73% of point-of-sale transactions are still conducted in

cash, highlighting the need for a significant push towards digital payments. The

reliance on cash is particularly evident in the bustling township economy, where

more than 1.8-million informal traders operate. This preference is driven by

several factors: the inclusive nature of cash allows everyone to participate in

the economy irrespective of financial status, while physical currency also offers

immediacy and ease of use.

Digital payments enhance safety by reducing the risks associated with cash

while offering greater convenience through faster transactions and 24/7

accessibility. Beyond providing a layer of financial transparency for merchants,

digital transactions and payment histories will now help these informal

businesses build transactional profiles, making it easier for them to access loans

and financial services. This, in turn, can drive economic growth by supporting

local entrepreneurs and cultivating a safer society.

However, to drive the adoption and usage of cashless transactions among

informal businesses, several steps still need to be taken by private and public

sector stakeholders:

Address cost and perception issues. Developing affordable digital payment

solutions and launching education literacy campaigns will help dispel

misconceptions about digital payments. Improving financial and digital literacy

through training programmes and community outreach is essential to ensure

that all segments of the population can benefit from digital payment systems.

Enhance digital infrastructure. Expanding Internet and mobile network

coverage, especially in underserved areas, and modernising payment systems

to support real-time, low-cost transactions will make digital payments more

attractive and accessible. Building trust in digital payments is equally important.

Ensuring robust security measures and promoting transparency in digital

payment fees and processes will build confidence among users.

Regulatory support and incentives. Creating a supportive regulatory

environment for digital payment adoption and providing incentives for

businesses to adopt digital payment methods will encourage the transition to

a cashless society. While the South African Reserve Bank (SARB) is busy with

a digital payments strategy to promote digital payments more broadly across

the country, cost-sensitive consumers in townships will continue to rely on cash

until certain regulatory fees (such as interchange and other bank transaction

fees) are addressed. Promoting collaboration between government, financial

institutions, technology providers and community organisations is essential for

implementing comprehensive digital payment solutions.


GAINING MOMENTUM

Despite the dominance of cash, the transition to digital payments is gaining

momentum for small to micro businesses. Firms like Yoco, Shop2Shop, Flash

and iKhokha are at the forefront of this revolution, providing the tools and

technologies needed to pave the way for a safer, more efficient and inclusive

economic environment.

Traditionally, people living in townships had to take public transport to the

closest mall to withdraw cash. Now, thanks to the widespread availability of

these card payment options at local community stores, residents purchase goods

directly from nearby shops. This not only supports small entrepreneurs but also

saves customers money on transportation costs.

The convenience of cashless transactions has led to a notable boom in the

informal economy. More people in townships and informal areas prefer to

spend small amounts at local shops rather than withdraw large sums of cash.

This trend, accelerated by the Covid-19 pandemic, has made shopping safer

and more convenient, reducing the need to queue at malls and ATMs.

The success of cashless payments has also benefited banks like Capitec and

TymeBank. As more customers use their bank cards for transactions, banks are

reducing ATM costs and focusing on enhancing digital payment infrastructures.

This shift supports the broader goal of financial inclusion, ensuring that all

South Africans participate in the digital economy.

Improving financial and digital literacy

through training programmes and

community outreach is essential.

Ahead of the curve in this cashless transformation is Shop2Shop, whose

innovative solutions and agile methods are making a significant impact on small

businesses in the informal economy. To further support cashless transactions,

firms like Shop2Shop offer digital vouchers which can be used for payments.

Their efforts highlight the potential for a broader transition to a digital society,

which additionally reduces the risks and costs of handling cash.

South Africa can make significant strides towards creating more inclusive

opportunities for small and micro businesses which are the lifeblood of the

economy. Furthermore, it bridges the divide between the informal and formal

market which stimulates economic growth within the country. S

GOING GLOBAL

With cross-border transactions already

accounting for 31.2% of all global online

sales and projected to grow 219% faster than

e-commerce through 2028, the market is

expected to reach $5.06-trillion in sales within

the next three years.

Despite this boom, cross-border trade remains

a largely untapped opportunity for small and

medium-sized enterprises (SMEs). “That is set

to change with e-tailers bold enough to navigate

the global landscape standing a chance to

reap huge benefits in the years to come,” says

Gregory Saffy, managing director for Sub-

Saharan Africa at FedEx.

There are several important practices that

businesses should keep in mind when expanding

outside their home territory, including:

Localising for your target market. To boost

global sales, SMEs must tailor their offering to

local preferences. This includes researching your

chosen market, translating product descriptions

where needed, using local currencies, adjusting

sizing or packaging and aligning messaging with

cultural norms. Localisation builds trust and

relevance, increasing the likelihood of purchase.

Understanding regional buying behaviours and

adapting accordingly helps brands stand out in

competitive foreign markets.

Know your tax and customs obligations.

Every country has unique import duties,

including VAT rules and customs requirements,

and it is important to research these thoroughly.

Transparency around duties and delivery

timelines prevents customer dissatisfaction.

Staying compliant also enhances credibility and

paves the way for further global growth.

Offer multiple payment options. International

buyers are more likely to complete a purchase

when they have access to secure payment

methods. Integrating reputable payment

platforms that enable transactions in multiple

currencies and across borders will improve

conversion rates.


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healthcare

Funding health will stimulate

development in SA

Urgent action and investment to bring about improvements to South Africa’s declining state of health and health

systems are needed now. But tragically, this is not happening.

By Mark Heywood*

For more than a decade, health reform has been paralysed by the

polarisation between those who believe “NHI must die” and those

for whom it’s “NHI or die”. We need a change of mindset now.

Significantly increased spending on health will also bring about

economic benefits.

More than 20 years ago, the World Health Organization (WHO)

established a Commission on Macroeconomics and Health, whose

members included South Africa’s then Director-General of Health,

Dr Ayanda Ntsaluba. The Commission marshalled substantial

evidence and in its final report made an argument that not only

is good health important for human dignity and human rights, it’s

also important for economic growth and development.

In its recommendations, the WHO pointed out that “the role

of health in economic growth has been greatly underestimated”,

calculating that “each 10% improvement in life expectancy is

associated with an increase in economic growth of 0.3% to 0.4%

per year, other growth factors being equal”.

In the first decade of the 2000s, in keeping with the WHO’s

findings, South African health spending grew significantly.

For example, nearly 100 000 more people were employed in the

health system.

But despite the WHO’s insights – and South Africa’s active

involvement in drawing them up – post the 2008/09 financial

crisis and in the face of fears about rising debt-to-GDP, in 2012

the South African government commenced a decade-long period

of imposing fiscal austerity on public services, including the public

health system. For 15 years, per capita expenditure on public health

has been steadily declining. The cash crunch was exacerbated by

state capture, endemic corruption and maladministration. It

brought about a deepening inequality between the private and

public health systems.

Budgetary trends in health spending and their impact on health

services have been documented in excellent research led by the

Public Economy Project (PEP) at

Wits University. It is often noted that

South Africa spends a relatively large

8.5% of its GDP on health (close to

R600-billion per annum), albeit

inefficiently and unequally. In an

April 2023 report prepared for the

Presidential Health Summit’s Pillar

6, the PEP argues that:

Minister of Finance,

Enoch Godongwana.

“At 8% [of GDP], the argument that South Africa spends enough

on healthcare is valid on a macro level but lacks credibility at the

level of public sector spending which sits at only -4% of GDP in

South Africa (which needs to support 84% of the population’s

healthcare needs). A review of the allocation to health across

the public sector board is recommended.” Numbers talk, but the

chronic underfunding is also plain to see in deteriorating health

infrastructure, a shortage of critical cadres of health workers

(our doctor to patient ratio is 0.31/1 000 in the public sector)

and diminishing capacity to manage and treat a mushrooming of

preventable diseases (non-communicable diseases or NCDs).

In a radio interview on the day of his 2025/26 budget speech,

Finance Minister Enoch Godongwana admitted that:

“We have been [giving] budget cuts for a number of years, and

they’ve not achieved the desired outcome. We’ve not achieved

fiscal consolidation.”

The role of health in economic growth

has been greatly underestimated.

In the budget speech itself, Godongwana said that “deferring

the funding [of health and education] further would compromise


healthcare

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the government’s ability to meet its constitutional obligations

to the people”. [My emphasis] Among other things, this was the

justification for an unusual R28.9-billion addition to the health

budget “mainly to keep 9 300 healthcare workers in our hospitals

and clinics”.

From loadshedding to life-shedding

But how did we get here?

Over the past few years, people in South Africa have reluctantly

accustomed themselves to loadshedding. However, there’s a lesson

in the underlying causes of the Eskom crisis for the health system

as well. It is a simple one: that long-term underinvestment in any

social infrastructure leads to its eventual collapse. Underinvestment

in health systems carries with it direct economic costs (a decline in

productivity and GDP), and – at the point when the system collapses

– necessitates much higher expenditure than would have originally

been necessary to rescue the system. The same rule applies to both

the physical and human infrastructure of South Africa’s large

public health system.

Professor Alex van den Heever, chair of Social Security Systems

Administration and Management Studies at the University of the

Witwatersrand, says, “We have been underfunding maintenance for

roughly two decades” and that now, “An entirely new framework for

asset maintenance is needed.

“South Africa probably only spends around 1.3% of the public

health system’s asset value on maintenance, when it should be 5%.

Much of what we do spend is irregular (subject to corruption). The

current allocations for maintenance are insufficient to maintain

the assets, resulting in more rapid depreciation and increased costs

down the line,” Prof Van den Heever claims.

But the problem of underfunding extends way beyond asset

maintenance. When public health is mismanaged, it is equally a

destroyer of social capital and value. A few examples should serve

to illustrate this point. Disease and ill-health have an impact on the

productivity of the employed.

It is estimated by health economists at Investec that treatable

mental illness alone costs the economy more than R150-billion

per year “as a result of lost days of work on account of illness,

‘presenteeism’ (working longer hours), and in extreme cases,

premature mortality”.

Similarly, although spending on basic education is the thirdlargest

chunk of the Budget, a significant part of this investment is

lost by the cost of poor monitoring of infant and young child health

and child malnutrition. The result is an epidemic level of stunting,

which affects 27.4% of children by the age of five and, among other

things, impairs future cognitive ability.

According to David Harrison, executive director of the DG

Murray Trust, which focuses on child health and wellbeing, stunting

costs at least 1% of GDP, that is R72-billion per annum. Harrison

points to peer-reviewed research, including by the World Bank, to

justify this figure.

There’s a lesson in the underlying

causes of the Eskom crisis for the

health system as well.

If you add to these examples the destruction of human and

capital resources in the health sector through poor stewarding and

insufficient funding we can understand why, when a sudden crisis

such as the Covid-19 pandemic forces the neglect of health systems

to the surface, it costs significantly more to repair infrastructure

than it does to maintain it properly in the first place. Prevention is

better than cure in fiscal care as much as it is in healthcare.

Breaking the vicious cycle of poverty and ill-health

The vicious cycle looks like this: poverty and inequality are a

determinant of poor health, and the costs of poor health borne by

poor families become a cause of further and deepening poverty

and dependence on the state. The failure of any government in the

past 30 years to plan forward and invest proactively in health and


S

healthcare

health systems in South Africa has undoubtedly contributed to what

the WHO has termed as our country’s unique “quadruple burden

of disease”. These are:

• Simultaneous epidemics of communicable diseases such as HIV

and TB.

• Non-communicable diseases such as cancers, diabetes and

mental illness.

• Poor maternal and child health.

• Injury-related disorders, linked to driving, violent crime and

substance (especially alcohol) abuse.

Apart from their impact on people’s dignity and opportunity, these

diseases also lead to ever-escalating and unmanageable costs on the

public health system. Ultimately, what happens is not just triaging

at the point of healthcare by health professionals but triaging

by Treasury bureaucrats who decide whole programmes for

healthcare and treatment that can be afforded – and that cannot.

In this way, the vicious spiral into a worsening health crisis

continues unbroken.

The cost of ill-health versus the cost of health

These are just some of the reasons why, within the Government

of National Unity’s (GNU) three stated priorities of “driv[ing]

inclusive growth and job creation, reducing poverty and building

a capable and an ethical state”, concrete programmes to urgently

improve health and access to healthcare services should be given

much greater priority.

The termination of billions of rands of funding for HIV, TB and

health systems by the Trump administration will exacerbate the

health crisis.

Thanks to activism and international funding, there has been

sufficient funding for HIV prevention and treatment for more

than a decade. It has shown the successes that can be achieved with

sufficient resources. But the same cannot be said for mental health,

diabetes, cancers and effective health promotion programmes.

This is yet another reason why 2025 is an opportune time for a

radical rethink about both the quantum of the health budget, where

funding is targeted, and the efficiency and honesty of government

departments that spend it.

The PEP, at the end of its analysis, made a set of recommendations

that included:

“Public policy on funding and staffing levels should reflect the

needs of the health system, and the norms and standards established

by national health policy.

“The moratorium on filling posts in the public health sector

should be lifted. Priority should be given to critical services and

ensuring that statutory requirements for internship and community

service are met and resourced. A second priority is upskilling and

formalising the employment status of community health workers.

“Budget allocations for essential goods and services (medicines,

medical products, medical equipment and machinery, etc) should

be sufficient for the need.”

It is promising that in the 2025/26 Budget, the Treasury broke

with a decade of austerity and increased the health budget. But

it’s not enough. A R28-billion additional allocation, when provincial

health departments sit with R22-billion in accruals “for services

already provided” and when there are many areas of the health

system that are crumbling, leaves healthcare services way behind

the curve.

Prevention is better than cure in fiscal

care as much as it is in healthcare.

The National Treasury would do well to carry out and cost a needs

assessment across the health system to quantify what resources are

really needed to stabilise health over the next 10 years.

The bottom line is that unless the government begins to take

health and the healthcare system more seriously, catastrophe awaits.

There is a need for much greater political prioritisation of health by

the GNU and the Treasury. However, what this article has tried to

show is that the imperative to do this now is not just a human rights

one, but an economic one. S

* Mark Heywood is Adjunct Professor at the Nelson Mandela School.

Article courtesy of Daily Maverick


energy

Is ESG dead? Why Trump’s exit from

SA’s JET is a wake-up call for business

The recent withdrawal of the United States from South Africa’s Just Energy Transition partnership is another stark reminder that

sustainability cannot rest on the shifting sands of political will.

By Energy Partners*

S

Launched in 2021, the Just Energy Transition

(JET) is a multi-billion-dollar initiative aimed at

helping coal-dependent emerging economies

transition towards cleaner energies. America’s

withdrawal has reduced South Africa’s total

international JET pledges from $13.8-billion

to $12.8-billion – a significant setback for the

country’s energy transition ambitions.

This decision, however, should not have

come as a shock given American president

Donald Trump’s well-documented scepticism

towards climate change and environmental,

social and governance (ESG) initiatives. His

first presidency saw the US withdraw from the

Paris Climate Agreement and roll back more

than 100 environmental regulations. Now, in

Trump’s second term, global ESG momentum

is once again under threat – a trend that is

expected to intensify.

But is ESG dead? Not quite. Instead, it’s

evolving. The era of surface-level sustainability

commitments is ending, making way for a

more pragmatic, commercially led approach to

climate action.

South Africa’s energy landscape is a case in point. Years of policy

uncertainty and an over-reliance on government-led interventions

have left the country vulnerable to energy insecurity. The withdrawal

of US funding from the JET partnership reinforces what should

have been clear from the outset: businesses must drive their own

sustainability strategies, independent of fluctuating political agendas.

This shift is already taking shape. Large commercial and industrial

energy users are increasingly investing in onsite renewable energy

solutions, energy efficiency measures and alternative financing

strategies that align with ESG principles – not for political reasons,

but because it makes financial and operational sense. The return on

investment from renewable energy is tangible, with solar PV, battery

storage and energy efficiency upgrades delivering long-term cost

savings and resilience against grid instability.

The risks of waiting

For businesses, the real risk is inaction. South Africa’s ongoing

energy crisis makes it clear that waiting for policy certainty is not

an option. In his recent address at the 2025 Africa Energy Indaba,

Electricity and Energy Minister Dr Kgosientsho Ramokgopa warned

that public finance alone will never be sufficient to meet the colossal

investment requirements of the climate transition. Businesses that

hesitate risk higher energy costs, supply chain

disruptions and exposure to carbon taxes as

global markets tighten regulations.

Instead, forward-thinking businesses are

securing their energy future through proactive

strategies. Onsite generation, power purchase

agreements (PPAs) and sustainability-linked

financing are becoming core components of

corporate energy strategies. This shift towards

decentralised energy solutions is no longer

about ticking ESG boxes; it is about ensuring

long-term competitiveness and resilience.

The next phase of sustainability

With the narrative around ESG rapidly

shifting from regulatory compliance to

strategic necessity, the real question is not

whether ESG is dead, but whether businesses

are ready to embrace sustainability as a driver

of long-term growth.

This requires a new mindset: first, turning

to face the challenges head-on, seeing the

issues as the world sees them rather than

solely through the lens of corporate interests. Then, developing a

clear point of view on what needs to happen and how businesses

can play a role in driving change. Finally, acting with both vision and

practicality, striving to make a tangible difference.

Political shifts in the US, European Union or even South Africa

will continue creating uncertainty in carbon markets, financing

and regulations. However, companies that build their energy

strategies around commercial viability and measurable societal

and environmental impact, rather than government incentives, will

remain ahead of the curve.

Forward-thinking businesses are

securing their energy future through

proactive strategies.

The key takeaway is clear: waiting for stable global climate policies

is not a strategy, and inaction will only allow disruption to have its

way. Industrial and commercial businesses must act now to secure

their energy future. S

*Written by Mila Vicquery, GM of sustainability at Energy Partners.


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food security

How local leadership

can transform

food systems

By uniting grassroots movements, civil society, farmer leaders and indigenous

peoples ahead of COP30, we can amplify bottom-up, community-led solutions

and drive real food systems transformation.

By Global Alliance for the Future of Food*

E

Early indications suggest that the Conference of the Parties (COP)

30 will focus on implementation – which, in practice, refers primarily

to the climate plans developed by national governments, known as

Nationally Determined Contributions (NDCs), and the delivery of

finance to implement them.

As well as raising ambition on food systems in NDCs, it is

crucial that we use COP30 as an opportunity to explore synergies

for food and agriculture across other global frameworks and

processes, including National Biodiversity Strategy and Action Plans

(NBSAPs) under the UN Convention on Biological Diversity (CBD),

and the Riyadh Action Agenda (RAA) launched at the 1994 United

Nations Convention to Combat Desertification (UNCCD) COP16.

2024 was recently confirmed as the warmest year on record,

offering us a preview of what’s in store for our rapidly heating

planet. Meanwhile, the impacts of the climate crisis are devastating

communities worldwide, with extreme weather worsening hunger,

displacement and instability. In Southern Africa, prolonged drought

has left 27-million food insecure, while floods and droughts across

the Sahel and South Sudan push more into crisis. Many of these

disasters, compounded by climate change, remain overlooked.

Food systems are responsible for one-third of global greenhouse

gas (GHG) emissions and small-scale food producers, particularly

women, are on the frontlines of climate disasters. Transforming

how we produce, distribute and consume food is critical for the

health of our planet and people. This requires a transition away

from our dependence on industrial fossil fuel-driven agriculture,

towards agroecological food systems that support biodiversity,

communities and our economy.

Not only is this possible – it is already happening in thousands

of communities around the world, led by those on the frontlines

of the climate crisis. Monicah Yator, founder of the Indigenous

Women and Girls Initiative in Kenya, is one such leader showing

how upskilling farmers in her community on agroecology

and environmental feminism promotes resilience and food

sovereignty, while addressing the interconnected challenges of

climate change, food insecurity and gender inequality.

On a global scale, however, progress is at risk of stalling. 2024 was

the year of three COPs, with intergovernmental negotiations under

each of the three Rio Conventions (biodiversity, climate change and

desertification) taking place back-to-back. While food systems were

not a direct focus of negotiations, there were several outcomes that


food security

S

support food systems transformation –

in particular the decision to prioritise

the conservation and restoration of

grasslands and rangelands adopted by

COP16 to the UNCCD.

Several challenges stand in the

way of ambitious climate and nature

agreements and the multilateral

process, particularly with rising nationalism

and climate scepticism.

There is reason to

be optimistic.

The first international climate conference to

be hosted in the Amazon offers an opportunity

to show regional leadership under the Brazilian

presidency and it is only by understanding the

opportunities and implications that we can

make the UN Climate Change Conference

(UNFCCC) COP30 in Belém a success.

A COP of implementation

Essential to advancing climate action

and food systems transformation is

securing the necessary finance. The New

Collective Quantified Goal on Climate

Finance (NCQG) agreed at COP29 was

disappointing, and the CBD and UNCCD

COPs also failed to deliver on the dollars

needed. New research unveiled during COP29 also revealed that

the two biggest global climate funds are failing to get finance to

grassroots farmer organisations where it would have the most impact.

Analysis by the Global Alliance for the Future of Food found

that despite the overall increase in climate finance between 2017

and 2022 (from USD321-billion to USD640-billion), sustainable

food systems – practices based on agroecological and regenerative

approaches – received only 1.5% of public climate funding.

The cost of transforming our food systems is by far outweighed by

the financial burden of our current system, and it is critical that we

increase funding that is genuinely transformative, long-term and flexible

– and thus able to adapt to the ever-changing conditions on the ground.

We must ramp up financial support for indigenous peoples and

local communities, recognising that their deep-rooted knowledge is

key to turning global climate commitments into real-world impact.

Climate solutions are inherently place-based. What works in one

region may not work in another, making locally led expertise essential

for implementation. Yet, without meaningful investment and direct

funding, even the most ambitious policies risk falling flat. As the

first climate COP in the Amazon, COP30 is a pivotal moment to

back locally driven solutions – led by frontline food producers, land

stewards and advocates – to drive the lasting, systemic change our planet

urgently needs.

The Amazon COP

Despite holding the key to transforming international agreements into

action, food producers on the frontlines of the climate crisis – an

estimated 600-million small-scale farmers worldwide – receive just

0.3% of international climate finance. Not only do they produce

approximately one-third of the world’s food, many small-scale

farmers, fishers and food producers have a critical understanding of

agroecological and organic farming, fisheries and agroforestry, and

are often key voices in holding governments and private sector

stakeholders accountable.

Karina David is a Brazilian agroforestry organic farmer. As well

as facilitating courses, consultancies and lectures on agroforestry

and organic farming in her own region, she has participated in

international dialogues, including the climate and biodiversity COPs,

using her perspective and expertise to advocate for farmers and food

systems on a global scale. Meaningfully incorporating the demands of

local experts like David will be key to securing fair, context-specific

outcomes at COP30.

What’s next?

The success of COP30 rests on whether policymakers will listen to the

demands and the solutions from those on the frontlines of the climate

and ecological breakdown.

There is reason to be optimistic. Despite the challenges of the

Group of 20 (G20), Brazil’s leadership recently delivered several key

outcomes, including the Global Alliance Against Hunger and Poverty,

launched during the Brazilian G20 presidency last year. Despite the

importance of COP processes, they are only a small part of food and

biodiversity advocacy for frontline leaders, many of who carry out

community mobilisation work in their local communities and regions

year-round as food producers, researchers, community trainers

and food justice advocates. It is only by ceding power to grassroots

and local movements that we can strengthen civic mobilisation in

global processes – closing the much-needed global-local loop for

implementation. S

*Written by Ruchi Tripathi, climate and nature director, and Matheus Alves

Zanella, senior advisor, Global Fora, Global Alliance for the Future of Food.

Climate solutions are

inherently place-based.


S

good news

First-of-its-kind solar project to

power Swartland Municipality

This pioneering project marks a significant step forward in South Africa’s renewable energy landscape, with far-reaching benefits

for both the local community and the national grid.

SSustainable Power Solutions (SPS), in partnership with Darling

Green Country Estate and TouchPoint Energy, has successfully

commissioned a 1MW solar plant in the town of Darling, within the

Swartland Municipality.

The 1MW solar plant, which came onstream on 10 March 2025,

will supply clean, sustainable energy to the newly developed Darling

Green Country Estate, powered by the recently established green

energy provider, Darling Green Utility. A portion of the surplus

energy generated by the plant will be sold to Swartland Municipality

under a three-year Power Purchase Agreement (PPA).

The Darling Green Solar project uniquely offers estate residents

“guided meter power”, protecting them from loadshedding during

stages 1 and 2. This initiative aims to provide a more affordable

and reliable electricity solution, ensuring a stable power supply at

all times.

The project has

created significant job

opportunities.

The project has created significant short-term job opportunities,

benefiting the local economy, with more jobs expected to be created

in the medium term. Long-term plans involve expanding the grid

from the solar farm to supply power to the entire town of Darling, a

model that could be applied to other towns in South Africa.

Francois van Themaat, managing director (large projects) at SPS,

and Klaus-Gustav Göbel, founding shareholder of Darling Green

Country Estate, expressed their enthusiasm for the project, stating:

“We are proud to have commissioned this pioneering initiative in

South Africa. We extend our gratitude to Swartland Municipality

for their forward-thinking approach to renewable energy and their

invaluable support in bringing this project to life.”

Beyond its environmental impact, this initiative is creating

numerous job opportunities and fostering economic growth within

the Darling community. S

Furthermore, plans are underway for the

development of an additional 5MW solar farm

adjacent to the existing 1MW plant. Darling Green

Solar has secured approval to access the Eskom

grid in Darling, allowing for the wheeling of 5MW

of power to customers connected to the Eskom

grid in other parts of the country. Currently in its

final design stage and undergoing Eskom’s approval

process, the 5MW project is expected to be

commissioned by mid-2026. SPS, in collaboration

with Darling Green Utility, will oversee the

distribution of this renewable energy.

The SPS and DGCE teams with the mayor of Swartland Municipality.


good news

S

Limpopo communities to get paid

for electronic waste

Limpopo residents will be able to dispose of their electronic waste at a recycling facility and get paid for it. This as government

launched the e-Waste Recycling Pilot Project initiative in Limpopo, which will allow residents to dispose of their electronic waste

at a recycling facility and get paid for it by the Producer Responsibility Organisations who are part of the project.

T“The increasing number of electronic devices being used without a

proper system for disposal has led to the accumulation of waste that

harms our environment and contaminates water and soil. Today’s

launch of the e-Waste Recycling Pilot Project is our response to

this growing crisis,” Deputy Minister of Forestry, Fisheries and the

Environment, Bernice Swarts, said at the launch of the pilot project

in the Thulamela Local Municipality. Three Producer Responsibility

Organisations (PROs) will participate as part of the initiative.

“The PROs will set up and welcome community members as they

bring their e-waste. The e-waste will then be weighed, the weight

recorded and the person’s details logged.

“An incentive will be paid out via cell phone based on a rand/

kilogram where a minimum ranging from R1/kilogram can be paid

based on the weight and type of item. Payments will be done in the

form of EFT and MTN MoMo,” the Deputy Minister said.

Courtesy of SAnews.gov.za

South Africa generates over 360 000

tons of e-waste annually.

The initiative was launched in partnership with the Department of

Forestry, Fisheries and the Environment (DFFE), Thulamela Local

Municipality, Vhembe District Municipality, industry and the PROs.

“The goal of this pilot project is to test and implement a sustainable

system for recycling of e-waste in Thulamela Local Municipality.

Through this collaboration, we aim to not only manage and dispose

of e-waste responsibly but also raise awareness among communities

about the importance of recycling and the dangers of improper

e-waste disposal.

“The success of this project relies heavily on the participation of

the local community. By providing households with easy access to

collection or drop off points, recycling facilities and offering guidance

on how to properly separate and dispose of their old electronic devices,

we aim to change the way residents think about their waste.

“The wheelie bins provided by the Department will serve as

dedicated receptacles for collecting e-waste, ensuring that it is separated

from general household waste and directed to specialised recycling

channels. This process will prevent toxic substances from leaching into

the soil and water, protecting both our environment and our health,”

Swarts said.

Managing e-waste

According to the Deputy Minister, South Africa generates over 360 000

tons of e-waste annually and only 10% of this is properly managed. The

rest ends up in landfills, or worse, is illegally dumped, posing serious

risks to the ecosystems.

“Our waste laws do not allow the disposal of e-waste to landfills. This

is done with the intention of diverting this waste stream from landfill

for recycling purposes.

“As part of our efforts to address this growing e-waste problem, South

Africa has implemented the Extended Producer Responsibility (EPR)

legislation for the electrical and electronic equipment sector since

November 2021 which compels the producers of electronic products

to take-back and ensure proper recycling thereof,” she said.

As part of the National Waste Management Strategy 2020, South

Africa has committed to reducing waste sent to landfills, increasing

recycling rates and promoting a circular economy.

“The EPR regulations, which place responsibility for end-of-life

products on producers, are key to this vision. By encouraging industry

involvement in waste management, we are ensuring that those who

create waste are also part of the solution.

“In the coming months, we will monitor the progress of this pilot

project to ensure that it meets its objectives. This includes tracking

the volume of e-waste collected, the effectiveness of the community

awareness campaigns, and the number of local jobs

created through the project.

“Our goal is to ensure that this pilot project

becomes a success story and a model that can be

replicated across other municipalities in Limpopo

and beyond,” Swarts said. S

Deputy Minister of Forestry, Fisheries and

the Environment, Bernice Swarts.

Created by karenzavil

from Noun Project

PSETA:

empowering a capable and

innovative public sector workforce

The Public Service Sector Education and Training Authority (PSETA) plays a pivotal role in transforming South Africa’s public

service by developing a skilled, ethical and professional workforce. As outlined in its 2025-2030 Strategic Plan, PSETA

is committed to being the heart of skills development for a developmental state.

VISION AND MISSION

PSETA’s vision is to be “the heart of developing a skilled, capable and innovative public sector workforce”. Its mission is

centred on facilitating effective and ethical public service delivery through research, occupational qualifications, learning

programmes and strategic partnerships.

The 2025-2030 strategy aligns with the National Skills Development Plan

and focuses on:

• Enhancing institutional capabilities

• Delivering quality learning interventions

• Producing credible labour market research

• Expanding the public service skills pipeline

FLAGSHIP PARTNERSHIPS

Future Skills for Public Servants in partnership with Tshwane University of Technology

(TUT) Institute of the Future of Work.

Cadet Programme with the Department of Home Affairs.

Digital Entrepreneurship with the National Electronic Media Institute of South Africa

(Nemisa).

Youth Disability Learnerships with the National Youth Development Agency (NYDA)

and KwaZulu-Natal Department of Social Development.

Public Service Skills Audit Toolkit with the Department of Public Service and

Administration.

These initiatives reflect the Public Service Sector Education and Training

Authority’s drive to be innovative, inclusive and impact-oriented.

LOOKING AHEAD

PSETA is poised to embrace AI, data analytics and lifelong learning to elevate

public service delivery. With a strong focus on sustainability, responsiveness

and transformation, the Authority continues to advance its mission to

empower the sector’s greatest resource: its people.

Tel: (012) 423-5700

Email:communications@pseta.org.za

www.pseta.org.za

“We are not just

building skills. We are

building the future of

public service.”

- Bontle Lerumo, CEO, PSETA

Service Issue 90

Transform your PDFs into Flipbooks and boost your revenue!

Delete template?

Save as template ?