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Larger-than-life mural pays tribute to South Africa’s Bokke

#SpringbokMuralBellville #betterbellvilletogether

Last week, a colossal mural of the Springboks was unveiled on the Park Central Lifestyle building along Blanckenberg Street, Bellville, as part of the City of Cape Town’s better. bellville. together. initiative. This larger-than-life artwork of our rugby heroes marks a significant moment not only for the local community but for the entire nation – a symbol of unity and pride that highlights the profound importance of the Springboks in South Africa, particularly following their recent triumph at the World Cup.

The better. bellville. together. initiative is a city-funded placemaking initiative, which launched in February 2023, and is proving to be a successful catalyst for economic growth in the Bellville CBD. Rooted in the belief that public art is a dynamic force for cultural expression, community engagement, and economic development, the initiative aims to revitalise the region, making it cleaner, and safer for those who live, work, learn and visit Bellville.

Left to Right: Alderman James Vos, George Comitis – Building Owner, Warren Hewitt – GTP CEO, INFRONT: Left Alex Jongens – Project Manager and Right Diana Tinkerbell, mural artist #SpringbokMuralBellville #betterbellvilletogethe

The initiative has made remarkable strides over the past year, but none as breathtaking as the Springbok mural. “The Bokke holds a special place in the hearts of our community,” says Alex Jongens, the project lead for better. bellville. together. “This mural serves as a vibrant symbol of our collective pride and unity, honouring the legacy of the Springboks and we invite everyone to join us in celebrating this milestone. Let’s come together to witness the power of art to unite and inspire.”

Bokke on Blanckenberg

The Springbok mural, the largest yet in Bellville, is a testament to the power of public art to inspire and uplift. The local community are greeted by an awe-inspiring display that encapsulates the pride, resilience, and unity of South Africans, and the mural not only celebrates the sporting prowess of the Springbok legends but also pays homage to Bellville’s identity, intertwining with the fabric of the local community.

For Diana Tinkerbell, the visionary artist behind the mural, this project represents a profound connection to the community. “Creating this mural has been an incredible journey,” she says. “It’s more than just paint on a wall; it’s a dialogue with the people, a reflection of our shared values and aspirations.”

The grand unveiling marks a historic moment for Bellville, celebrating its rich spirit and boundless creativity. George Comitis from Park Central Lifestyle, the building owner, emphasises the importance of conveying meaningful messages through art. “Each mural tells a story, capturing the essence of South Africa’s diverse culture and heritage,” he explains. “We are proud to be part of the vibrant tapestry of Bellville’s landscape.”

Snap a pic with the Bokke

Residents, business owners, and visitors to Bellville are encouraged to be a part of the excitement by posting their photos of the mural on social media using #springbokmuralbellville and #betterbellvilletogether.

Together, we can transform our city into a canvas of dreams!

For more information about better. bellville. together. visit www.bettertogether.africa and follow us @betterbellvilletogether.


North West Business Summit & Expo 2024

The North West Business Summit & Expo, taking place 27-28 March 2024 at Rustenburg Civic Centre, is a prestigious event that brings together professionals and entrepreneurs from various sectors across the region.

The summit aims to provide valuable insights and knowledge exchange by hosting panels on a wide range of topics pertaining to mining, markets, entrepreneurship, sponsorship, and more.

We will cover diverse topics during the panel discussion. It is through engaging discussions like these that we can foster growth, innovation and collaboration within our business community. 

The North West Business Summit & Expo is geared to connect township and village entrepreneurs with opportunities, resources, information, training and development, finance and markets from corporate South Africa and the Public Sector.

Brought to you by North West Business Expo and our Host City of Rustenburg, Powered by FASA: Franchise Association of Southern Africa and broadcasted by North West Television.

#northwestbusiness #northwestbusinesssummitandexpo #nwbse2024

Retail distribution in an energy-limited world

The SPAR Group's South Rand Distribution Centre has an impressive array of solar panels.

Recent extended stage 4 to 6 power outages have once again emphasised the need for broader solutions that will enable businesses not only to endure, but also prosper during the current energy challenges.

The SPAR Group is actively investing in power initiatives to reduce reliance on Eskom and promote sustainable strategies. However, achieving complete independence from the grid will demand continuous innovation to fill the gaps where solar energy cannot.

Significant progress has been made in expanding the solar capabilities at all six of our Distribution Centres (DCs).

Solly Engelbrecht, National Logistics Executive at The SPAR Group

However, considering we service SPAR stores nationwide and across borders, our goal of transitioning all six DCs to operate entirely off the grid will require continuous innovation to find ways to supplement our current solar rollout. Solar energy alone cannot sufficiently sustain the uninterrupted, 24-hour operation that is essential for our refrigeration units, storage centres and other critical equipment.

Our South Rand DC, for instance, was the first to move away from its sole reliance on Eskom for electricity. Installation of solar panels at both our perishables and dry-goods warehouses has already resulted in a very significant ongoing reduction in energy usage from Eskom.

This is a clear example of why sustainability is good for South Africa in the long term and just how beneficial the change can be for the sector and for society.

The high cost of lithium batteries and the lack of sufficient wind power around our built-up DC has meant we needed to think out of the box. For instance, we are considering investing in a smaller bank of generators and gas power, rather than the traditional large, standby, diesel generator. We are also investigating alternative wind generation options.

Localisation is among the key approaches that should be adopted to ensure a reliable power supply.

Additionally, we have invested in LED lighting throughout all DCs for a further energy consumption reduction and in our KwaZulu-Natal perishables DC, these LEDs are linked to an intelligent-lighting-management system. This system, which can be monitored and activated remotely, senses movement in each aisle and adjusts the brightness of the light levels accordingly. If no movement is detected, the lights dims significantly. This has resulted in a significant reduction in energy use for lighting.

LED lighting is helping to reduce energy use at SPAR Distribution Centres.
LED lighting is helping to reduce energy use at SPAR Distribution Centres.

Biomass potential

Biomass energy generation will also provide increasingly powerful solutions. We see potential scope for biomass to be added to wind and other energy sources as fuel for the generation of electricity.

At The SPAR Group, we firmly believe that more localised power generation presents a realistic avenue for achieving enduring sustainability.

With regard to recycling, we currently collect outer-plastic packaging, cardboard, paper and other recyclable materials from SPAR stores and transport them to our DCs, where they are sorted, weighed and compacted in separate processes. The plastic is recycled and repurposed into various items like bin bags, while the cardboard also undergoes recycling for use in packaging materials.

Through this recycling effort, we reduce the materials sent to landfills, consequently lessening our carbon footprint.

Ensuring that the expansion of the retail industry incorporates sustainable practices is vitally important. Sustainability is not merely beneficial for society and business; it has become indispensable for the retail sector’s future.

Working to discover solutions that alleviate the mounting pressure on the South African power grid and significantly reduce our carbon footprint will remain a key focus of commitment for The SPAR Group. We are championing sustainable behaviour and practices across all facets of our operations and the strides we’re making at our DCs will set a trajectory toward a greener, more sustainable future for all. 


About the SPAR Group

The SPAR Group Ltd is a warehousing and distribution business listed on the Johannesburg Stock Exchange (JSE) in the Food and Drug Retailers sector. The group owns the SPAR retail brand and supports a network of independent retailers who trade under our brand through our distribution centres.

SPAR forms part of SPAR International, which is present in 44 countries and has 240 distribution centres that serve 13-million customers every day. The SPAR Group Ltd, headquartered in Durban, South Africa, is present in nine countries, has 10 distribution centres and serves 3 768 retail members through 14 store formats every day. 


Polokwane International Airport is soaring to destined glory

Polokwane International Airport (PIA), based in Polokwane, the capital city of Limpopo Province, is a gateway to the SADC region, a pillar of safe air travel that promotes convenient connectivity of the province to other major transport hubs.

PIA is managed by Gateway Airports Authority Limited (GAAL) under the chairmanship of Mr Victor Xaba. The shareholder, the MEC of the Limpopo Department of Transport and Community Safety, in 2021 embarked on a robust recruitment process to appoint a competent board to address leadership instability and improve governance.

Mokgadi Matli, CEO, GAAL

The board members have brought to the entity a combination of skills in aviation, engineering, finance, legal and human resources which will be critical to ensuring the success of GAAL.

Turnaround strategy

The board developed a turnaround strategy that is intended to achieve financial and operational sustainability and expand the operating model. The goal is to implement the full mandate of GAAL, which includes managing all of the airports that fall under the control of the entity.

The strategy is embraced by the Provincial Government and funding has been approved to implement improvements and revenue-generation projects. To ensure the successful implementation of the strategy, critical vacancies have been filled, including CEO and CFO.

Optimising human capital has yielded results and improvements are evident as GAAL managed to address the South African Civil Aviation Authority (SACAA) safety findings and continues to retain a Category 7 operating licence. The audit outcome has improved and there is a steady increase in revenue due to increases in flight and passenger movement. Current rental tenants have been retained and the occupancy rate for the airport has increased. New rentals have led to a 25% revenue increase.

Turnaround strategy at a glance:
  • Appoint competent board
  • Fill vacancies
  • Ensure financial sustainability
  • Expand operations
  • Implement the full mandate of GAAL
  • Pursue cargo facility potential
  • Generate more revenue
  • Attract investors
  • Potential investors

GAAL has identified opportunities for investment and strategic partnerships on revenue-generating projects. The Limpopo Investment Conference 2023 has unlocked engagements with potential investors. PIA is strategically situated at the heart of Limpopo, which makes it the ideal location for the provincial logistics hub, thus establishment of cargo services is at the pulse of the turnaround.

Other investment opportunities include resuscitation of the fuel farm, repurposing of old aircrafts into a restaurant, refurbishment and operating PR Mphephu Airport, cold storage facilities, conference facilities, rental of offices, advertising space and hangars.

The steady and consistent improvements that are already visible at the airport, coupled with the plans that are in the turnaround strategy is an assurance that PIA, GAAL other airports under its mandate are soaring to their destined glory.

Contact details:

  • Polokwane International Airport, Gateway Drive, Polokwane
  • Tel: +27 15 288 0122
  • Website: www.gaal.co.za

A catalyst for South Africa’s economic development

Minerals Council South Africa CEO Mzila Mthenjane
How have your first months in office been?

I completed my “First100 days” at the end of November 2023 with, among other things, board approval of our strategic goals and a budget for the following year. I was pleased with the outcome. The transition was seamless given the extensive support that I received from my predecessor (he really helped me a lot in the process before I formally took over on 21 August 2023), the board, management team and family.

Overall, it has been a “no-regret” and I remain extremely excited about the role and the prospects for the industry and the country. From a governance perspective, we have a board of directors selected from the members and five Office Bearers consisting of the President and four Deputies who are selected from the board.

What are your goals as CEO?

Firstly, my vision considers where we are as a country and the role that I believe the mining industry can play. As a primary industry, I maintain that it can be a catalyst for South Africa’s economic development, treated with intentionality to instil change and progress. We have a country that needs significant infrastructure development, not only in current terms relating to Eskom and Transnet, but beyond that in terms of road infrastructure, human settlements, communication and the need to connect our cities through all modes of mobility. That is going to need materials which mining is best positioned to provide.

I have a vision of growth in mining output across several commodities, which can really transform South Africa in terms of the economy and social progress to a modern, culturally diverse and naturally beautiful country. At the same time, given the imperative for an energy transition, mining has an important role to enable the country to transition to a low-carbon future.

Firstly, in terms of the production of the minerals required for light and resilient materials and green technologies. More importantly, in terms of the “Just Energy Transition”, the economic stimulus from mining will provide economic opportunities that create the foundation for a transition to a better life. It’s an industry that I am very passionate about in terms of the positive social, economic and environmental impact that it can have on the lives of South Africans.

Going beyond extraction?

Absolutely, it is more than just about digging holes in the ground. It really is carrying the soul of people and transporting to a new future.

What will tell us that a Just Energy Transition is in fact occurring?

That expression, “Just Energy Transition”, requires elaboration. From an energy perspective, a Just Energy Transition first and foremost considers the fact that our current energy systems are largely based on coal. More than 75% of our electricity is coal-based and that remains a valuable energy and economic resource for South Africa. The whole value chain of electricity generation from coal mining to coal burning cannot be immediately abandoned. The potential negative impact of rapidly reducing coal inputs without consideration of the social and economic impact, would be unjust.

…it is more than just about digging holes in the ground. It really is carrying the soul of people and transporting to a new future.

How we adopt and adapt to new energy systems is important and a Just Transition would be occurring where we plan for continued (albeit declining rate of) use of coal but at the same time, we also plan to install renewables much more aggressively than we’re doing currently. In terms of generation capacity, we must be clear on what is viable and what is not. What are the possibilities of renewables? We should be ambitious and bold in terms of our renewable energy goals across a range of technologies, considering the constraints in terms of grid-scale storage, transmission limitations, sentiments towards nuclear energy and the pace of regulatory changes towards further democratisation of electricity management.

The second part on the Just Transition is to look at the social aspect, ie how the shift in energy technologies is going to cause a shift to new skills and capabilities as well as livelihoods. We should not abandon people in current employment and in locations where coal-based mining and energy activities are based. We need to apply our minds to the social setting where coal is and how that is going to change (and needs to change). What are the alternative livelihoods? What are the new economic opportunities that we can create and invest in that will sustain livelihoods?

Are you still engaged in the work of the Impact Catalyst?

I have been Chairman of the Impact Catalyst for the past three years. The entity was created from the vision and anticipation of livelihoods beyond mining. Mines are transitionary by nature. What alternative economic opportunities can be developed when the mineral resource has been exhausted? This consideration must start while the current mines are functioning and generating a source of revenue to invest in future economies. In addition, future mine sites must be developed in a manner that will have minimum impact on livelihoods compared to today.

Is there within the Minerals Council a desk dealing with the Just Energy Transition?

The Just Energy Transition is multi-faceted and it can never be located in one place, so each one of us, in different ways contributes to the conversation and activities related to the JET. One of our senior executives is a commissioner on the Presidential Climate Commission.

What is the potential for South Africa to help the world transition to a lower-carbon future?

The significance of South Africa’s mining industry to the domestic and global socio-economic setting remains unquestionable. It starts with the role it can play in terms of economic development and transition.

Some of the basic materials that we are already mining, such as iron ore and manganese for input into steel production, as well as limestone for cement and various other materials remain critical to ensuring that we are able to build that foundation for ongoing development and economic success. On top of that, there is a huge technology drive to explore and develop green minerals. South Africa also is endowed with minerals that are critical to a low-carbon future. Manganese is one of those. With the development of battery technology, it will grow in its importance. (Light) Steel is fundamental to infrastructure, and infrastructure that is adaptable to a low-carbon future and a future where we must adapt to higher temperatures.

South Africa is well-endowed with large vanadium resources and reserves, which are also important in battery technology. And of course, we have the platinum group metals (PGMs). In addition to applications for auto catalysts and jewellery, PGMs will play an important role in the development of hydrogen as an energy source. These are just some of the mineral commodities that South Africa is going to be contributing to this pool of green metals.

I assume you welcome Bushveld Energy working on vanadium redox flow batteries in East London?

That’s the kind of innovation we need.

Where else should we be looking for innovation?

There’s lots of work being done looking at hydrogen as a source of energy. Partnerships include PGM suppliers, Sasol, development capital providers such as the IDC and domestic and offshore hydrogen technology developers. I am looking forward to what will come out of that.

Do you see partnerships as key?

The future and future success is really going to be about collaborations; we will not reach it alone. I would like to use, as an example, Anglo Platinum and the hydrogen truck that they built. They produce PGMs and require more efficient ways of mining. They brought together partners to collaborate on a solution where it has access to technology that will create a cost, energy and carbon-efficient truck for its mining applications. It hasn’t abandoned its mining to focus on hydrogen.

We are going to see a lot more of that in terms of mining becoming a platform for developing innovative mining solutions without miners necessarily abandoning their core business activities.

Anglo Platinum’s hydrogen truck is the result of collaborations which are likely to increase within the sector in the years ahead. Credit: Anglo American
Anglo Platinum’s hydrogen truck is the result of collaborations which are likely to increase within the sector in the years ahead. Credit: Anglo American
Is South Africa going to be in a position to take advantage of the potential green minerals boom?

That’s a fantastic question. It is really the current challenge now. We need to resolve some key issues in the value chain to ensure that we don’t lose out on the emerging critical minerals commodity boom, again.

One of the biggest challenges is around the legislative environment in enabling investment into exploration. You know about the constraints related to the cadastral system and the slow pace at which exploration and mining permits are being processed. That’s a huge trap of capital that is waiting to be invested for the development of new mines and realisation of enormous value.

From a mine-development capability and skills perspective, the industry is ready and able. Mining is a global business and South Africa has exported many mining skills to international mining destinations. We can attract and return these capabilities to stimulate and grow our industry.

Mining is a global business and South Africa has exported many mining skills to international mining destinations. We can attract and return these capabilities to stimulate and grow our industry.

What is the problem with the cadastral system and are you hopeful that it will be fixed?

Not only hopeful, but it is an imperative that we fix the situation and have an effective system installed. That is the only option.

In terms of the outstanding applications for prospecting and mining, the cadastral system should enable the whole process of application and approval to happen with ease on the part of the potential investor before they invest any money towards exploration drilling and developing a mine. It is an off-the-shelf system which has been installed by many other African countries that are developing their mineral potential. It is quick to install and is user-friendly as we have seen in Namibia, Botswana, Mozambique and Malawi, to name just some of our neighbours.

The Council for Geoscience is remapping South Africa and Petroleum Agency South Africa is searching for new sources of gas; would it help them too?

Exactly. Where there is a desire to find commodities for exploration, whether it is oil or gas or minerals, it is a system that can be applied to all of those commodities.

Are more mining companies going to start generating their own energy?

I take a step back, and see this is an immediate risk management strategy, but for the long term I don’t think it is something that will necessarily become a core part of their business unless the miner abandons mining and then reinvents themselves as a renewable or an energy company. While mining companies must contend with uncertainty of electricity supply from Eskom, they will invest in generating their own electricity for security of supply. Further, the cost of electricity has been increasing and so self-generation plays an additional role of reducing the cost of business. That investment is going to play an important role in maintaining the global cost competitiveness of our mines.

But they won’t be selling into the grid, will they?

They will invest for what they need and there’s a third component in terms of reducing their own carbon emissions because they will be taking less of Eskom’s electricity.

Carbon efficiency will add to their global competitiveness. With time, as electricity generation supply becomes stable, I foresee value-unlocking opportunities emerging where mines have invested in self-generation installations. A lot of these installations could be the basis of new energy companies, where the mining company pays a tariff to get access to that electricity and they get the investment off their balance sheet.

There seems to be quite a bit of foreign interest in the Northern Cape?

The foreign interest is widespread. Vedanta, from a base metals and zinc perspective, has been present in the country for a while and they’re really just consolidating around that asset in the Northern Cape. Given the long-term positive sentiment towards mineral commodities, including zinc, they continue to invest. In terms of other commodities, junior miners are very active, looking for new opportunities and the Northern Cape is one of those areas that still has huge opportunities for further exploration beyond what it is already known in iron ore and manganese.

The Northern Cape is attracting mining investment. Credit: Vedanta Zinc International
The Northern Cape is attracting mining investment. Credit: Vedanta Zinc International
The Minerals Council website references women in mining and several events related to that subject.

Women in Mining is not an event; it is who and the way we are and the way we work. Beyond the context of transformation in South Africa, in mining, our members have invested significant amounts of change effort to increase the participation of women in the workplace across all levels of mining, currently standing at 15% of the mining workforce.

We are led from the top by Ms Nolitha Fakude as the President of the Minerals Council South Africa, which represents members for 90% of the mineral production of South Africa and close to 5% of the formal sector workforce. Large corporate agents of transformation in the mining sector, such as Exxaro Resources and Kumba Iron Ore, are led by women CEOs, Dr Nombasa Tsengwa and Ms Mpumi Zikalala, respectively. So, at the leadership level we are making good progress. The representation and participation goes deeper into various levels of our member organisations. What’s also been pleasing is that as technology improves, the emphasis has been less on (literally) manpower, which has allowed more women to participate at the “mine face” where production takes place.

As an industry we are focused on diversifying the workplace, harnessing the full potential of human capability to maximise value creation and ensuring that everyone who participates in mining thrives economically and socially.

Please tell us about the Mandela Mining Precinct.

The Mandela Mining Precinct is one of our pride and joys. It is a private-public partnership between ourselves and the Department of Science and Innovation through the CSIR. It focusses on how we continue to modernise mining in all respects.

It is innovation, not only from a technical perspective but also in terms of how people interact with technology and how technology is used to enhance the capability of people. It is also looking into the future in terms of what are the future needs of society which mining can fulfil. The research done today in order to prepare for the future. And it is led by a woman, Ms Julie Courtnage, I should add.

Any final thoughts on the mining sector today?

In order to get to the position where the mining industry can play the role that we want to play, it is important that we fix the challenges that the mining industry is faced with. We often say that the challenges of Transnet and Eskom present an existential crisis, not only to the mining industry but to the economy of South Africa. The mining industry is playing a role in ensuring that we address these critical areas to remain globally competitive. We are working very closely with government and the rest of South Africa’s business in ensuring that Eskom performs effectively and efficiently in terms of delivery of electricity.

We’re very pleased with the reforms that have been announced to date and we look forward to implementation sooner rather than later. Equally with Transnet, stabilising performance is going to contribute significantly to arresting the decline in mining output that we’ve seen recently and that will provide for confidence and certainty in terms of reinvesting in mining and planning for growth. 

In order to get to the position where the mining industry can play the role that we want to play, it is important that we fix the challenges that the mining industry is faced with.

The reforms do need to be executed with speed and at scale because of the impact that they are going to have on confidence in mining and other sector investment and consequent employment creation. It will generate revenue for the fiscus and the combination of these is a stimulus into the economy which will then begin to see the economy perform well above the current levels of 0.5% of GDP growth, to the national ambition above 6%. Lastly, to inspire confidence and a sense of well-being and safety in the rest of society, we are also playing a big role in eliminating crime and corruption, because that is affecting the whole economy and many aspects of our lives.

The expected outcome is greater security for people, households and business assets and freedom of movement which will provide for thriving livelihoods and economy. Therefore, these three areas remain a critical priority for us to continue to focus on and deliver during this year, which I call “2024 Forward and Upward”.


Biography

Mzila Mthenjane is the CEO of the Minerals Council South Africa, the advocacy and impact group whose members represent 90% of South Africa’s mineral output and employ close to 480 000 people. He was previously the Executive Head for Stakeholder Affairs at Exxaro Resources Limited.

He has more than 30 years’ combined experience in the resources business (gold, platinum and coal) and investment banking (Corporate and Project Finance). He has held various board positions as non-executive director in various entities including Pamodzi Gold Limited, Fraser Alexander, Impact Catalyst, Merafe Resources and the Student Support Programme.

He is the current Chairman of the Board of the Impact Catalyst and is the former Chairman of the Wits University Mining Engineers Association (WUMEA) and the former President of the South African Institute of Mining and Metallurgy (SAIMM).

He holds a BSc degree in Mining Engineering from the University of Witwatersrand (Wits) and has completed various leadership development training programmes. 


Power wheeling: the solution to grid instability

Dejan Kastelic: Vodacom Group Chief Technology Officer
Dejan Kastelic: Vodacom Group Chief Technology Officer

Climate change is arguably one of the biggest challenges which the human race has ever faced. The effects of climate change are visible throughout the world and it is already disproportionally affecting poorer countries. However, richer countries are not the only contributors to climate change and are not solely responsible to solve it.

With South Africa’s grid emissions being some of the highest in the world due to our dependence on fossil-fuel-based power generation, it is clear that our current path to support our insatiable need for energy is not sustainable. Furthermore, research has shown that a stable and abundant supply of energy is the foundation of a flourishing economy.

Yet South Africa is experiencing unprecedented levels of loadshedding in already challenging post-Covid economic environment conditions. In the past four years alone, Vodacom South Africa spent R4.5-billion on backup power solutions and R300-million on diesel for generators. This is a staggering 11% of Vodacom’s total capital expenditure over the period. This highlights just how large a burden has been placed on South Africans, especially for businesses in the SME sector, who need to both maintain operations and remain competitive in their pricing. This is over and above the issue of greenhouse gas emissions.

Vodacom is aiming for 100% renewables electricity sourcing by 2025.

Despite accelerated digitisation in the post-Covid era, South Africa has been regrettably slow in using the transformative power of technology to address perhaps our largest hurdle – the power crisis. For some time, electricity wheeling has been available in South Africa; however, in its traditional form it excluded the majority of the private sector from participating due to structural and administrative limitations. Legacy limitations prevented Eskom from opening wheeling to companies other than the typical large industrial and mining customers. Access to this solution was also limited to Eskom’s customers and those in specific areas, since only a few select municipalities had wheeling frameworks in place.

…there may be a light at the end of the tunnel with the introduction of a new technologically-enabled solution to the market.

Traditional electricity wheeling, with a few exceptions, typically involves a single buyer (a private company), partnering with an Independent Power Producer (IPP) to indirectly supply a single site with power, usually generated from renewable sources. This legacy approach requires the buyer to be indirectly connected to the IPP’s location through existing electrical infrastructure (the grid).

This has several challenges, especially for businesses with complex operating environments. In Vodacom’s case, our desire to participate in wheeling has been hindered by the complexity of our South African operating environment that includes over 15 000 distributed low-voltage sites located across the country within 168 municipalities.

However, there may be a light at the end of the tunnel with the introduction of a new technologically-enabled solution to the market. By reimagining the problem, for just over a year, we worked together to challenge the status quo, co-create, test and iron out the finer details and mechanisms to deliver a solution for which Vodacom finally entered into an official agreement with Eskom, called “virtual wheeling”.

The signing of this agreement opens significant opportunities within the private sector, giving all businesses a chance to save on costs and achieve their decarbonisation goals.

This solution enables the private sector to actively participate in solving the energy crisis by indirectly funding the development of renewable power, which is added to the national grid, all without impacting Eskom’s weak balance sheet. This is a technological innovation that every business in the country should be actively exploring which, if scaled properly, could significantly reduce or even eliminate loadshedding in South Africa in the next few years.

Electricity pylon with rainbow in background
Virtual wheeling enables multiple power producers to generate power into the grid and wheel to multiple sites for a single buyer. CREDIT: Kirchoff, BrandSA

Virtual wheeling

This Vodacom innovation, which has been co-developed with Eskom, has been dubbed “virtual wheeling”. Unlike traditional wheeling, which (apart from a few exceptions) entailed a one-to-one relationship where a single IPP generates power into the grid and wheels the power to a single site (buyer), virtual wheeling enables multiple IPPs to generate power into the grid and wheel to multiple sites for a single buyer.

The platform that was developed enables a buyer to aggregate all of its consumption into time-of-use periods as a single account which is then matched, in time-of-use, with the aggregated generation by one or more IPPs.

In our case, we will partner with renewable IPPs, who will feed the generated power into the grid. The IPP and our sites will be metered and the metered data will feed into the virtual wheeling platform which we have built using our subsidiary Mezzanine. The Vodacom Energy Management System collects various consumption data points across a period, feeding this information to the Virtual Wheeling Platform. As long as the generation is lower or equal to the aggregated consumption, Vodacom will receive a refund from Eskom.

Importantly, implementing this solution did not require any amendments to existing electricity supply agreements and it does not impact the municipalities in any way.

As a purpose-led company, we believe that it is important to make a positive impact in the societies and environments that we operate in. There is, however, one remaining, unaddressed challenge for virtual wheeling. Eskom only refunds the buyer in virtual wheeling for consumption in municipalities who are in good standing. A mechanism is, therefore, required to “ring-fence” the electricity income in a municipality to provide security for Eskom.

For Vodacom, virtual wheeling is a key step towards achieving our own decarbonisation goals. For the country, it’s one of many steps towards resolving the energy crisis and enabling the migration to sustainable and renewable-energy generation plants. We have estimated that this approach will initially move 30% of our consumption to renewable sources, a significant step towards our goal of 100% renewables electricity sourcing by 2025. Beyond consumer interest, other sectors have come forward with potential complementary solutions which will help to mitigate the existing risks associated with this model.

For Vodacom, virtual wheeling is a key step towards achieving our own decarbonisation goals.

Among these concerns is how Eskom tariff increases over the term of a power-purchase agreement will affect the margin between the rate of the refund (which is currently based on the wholesale electricity pricing system, WEPS, tariff structure) and the cost of energy from the IPPs. Hopefully further testing and investment will sufficiently address any concerns over the commercial sustainability of this approach.

Beyond loadshedding

While opportunities are created with additional renewable power, interim solutions are still required to address the high usage of diesel for power generation. A whole economy for green hydrogen can be created with renewable power and hydrogen as a replacement for diesel combustion is ideal.

This means that purpose-led companies like Vodacom are on the continuous lookout for renewable power and alternative fuels, but most of the solutions have various limitations, which make the application in our industry limited and less attractive. Innovative thinking and contextualised solutions to address these challenges could disrupt the industry, revitalise South Africa’s economy and create a more inclusive future for us all.


Sasol’s partnerships are defining a new direction for the energy giant

Sasol's operations at Secunda in Mpumalanga Province, South Africa. (Credit: Sasol)

A series of international and domestic partnerships that Sasol has signed in recent months illustrate that the company has decided that the energy future must be markedly different to the present. A disruption of the company’s AGM by climate activists and doubts about the company’s carbon-reduction strategy expressed by some big investors have helped bring that awareness to broader public attention.

International chemicals and energy company Sasol has several large plants in the Free State and Mpumalanga (pictured), and is the dominant national player in these sectors. Products manufactured by Sasol include synthetic fuel, petroleum, paraffin, jet fuel, creosote, bitumen, diesel and lubricants. The primary feedstock for synthetic-fuel production is coal. With more than 30 000 employees and a presence in 30 countries, the decisions Sasol makes have a big impact.

Subsidiary company Sasol ecoFT is producing sustainable fuels and chemicals from green hydrogen and sustainable carbon sources via the Power-to-Liquids process and using the Fischer-Tropsch technology (FT) which has helped set the company apart in its field.

In 2010 Sasol flew the world’s first passenger aircraft using fully synthetic jet fuel and it has been investigating solutions ever since. Sasol is part of a consortium based at its Secunda operations called HyShiFT with Linde, Enertrag and HydRegen, a spinoff company from the Department of Chemistry of the University of Oxford. The project aims to invest in about 500MW of renewable energy that will supply a 200MW electrolyser for green hydrogen production, resulting in approximately 45 000 tons a year of sustainable aviation fuel (SAF).

In 2021, agreements were signed with Toyota and the Industrial Development Corporation (IDC) relating to green hydrogen and Sasol joined the Hydrogen Council.

A market for carbon credits has been created.

With the IDC, Sasol aims to develop a green hydrogen market in South Africa, develop policy guidelines, support pilot projects and investigate funding options for the nascent sector. One such project involves investigating the possibilities of developing a Special Economic Zone (SEZ) in the Northern Cape dedicated to the production of green hydrogen. The feasibility studies regarding the Boegoebaai SEZ are ongoing and Sasol is a key player in this potentially transformative project.

Battery storage is increasingly becoming an important part of hybrid projects and a move in November 2023 by the JSE, Africa’s biggest stock market, signalled another landmark on the renewable energy landscape. JSE Ventures has initiated a Voluntary Carbon Market together with US company Xpansiv, with the aim of creating a market for carbon credits.

Generation plans

When big companies start investing in a sector, then it’s clear that that sector should be taken seriously. Resources company Exxaro started investing in renewable energy earlier than most. Rolling blackouts have been a feature of South African life since 2008 and the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) was introduced in 2011 to encourage the private sector to start generating power. Exxaro subsidiary Cennergi’s bid to produce power in the Tsitsikamma area of the Eastern Cape via a 95.3MW wind farm was accepted by the Department of Energy in 2012. Since then, the 134.4MW Amakhala Emoyeni has been built in the Bedford area and Cennergi Services has evolved into a company that builds, manages and operates renewable energy projects that it owns as well managing assets for third parties. It has seven projects in four provinces.

Exxaro’s huge coalmine at Grootgeluk in Limpopo (which supplies Eskom power plants) will be the site of an 84MW solar project and Northam Platinum is building a 10MW solar plant at its Zondereinde smelter. Implats is using natural gas to supply its refinery in Springs. In Phase one of the project 20 Doosan fuel cells are generating 8MW of power. The long-term goal is to generate 22-30MW.

Certain manufacturing companies that have access to biomass that results from the manufacturing process, such as woodchips for Sappi and bagasse in the case of sugar producers such as Tongaat Hulett and Illovo, are in a position to produce their own energy.

However, there are industries where signing offtake agreements with renewable energy producers is the more logical route to take. In fact, even PGM miner Ivanhoe Mines, despite having its own plans to produce solar power, has signed an offtake agreement with Renergen in order to have access to that company’s electricity powered by renewable sources.

Amazon has signed deals to have exclusive rights to renewable power produced from dedicated projects in the Northern Cape. Telecoms market-leader Vodacom has gone beyond the idea of having a single power producer. In a landmark deal brokered in 2023, Vodacom and Eskom have agreed to “virtual wheeling” whereby Vodacom will source power from multiple independent power producers.

Wheeling refers to sending power through the grid. At the moment Eskom is the sole owner and operator of the national grid. The Department of Public Enterprises intends for Eskom to be broken up into separate entities, one of which would be a transmissions company.

The City of Cape Town has initiated a pilot project whereby 15 commercial suppliers can sell electricity to third parties via the city’s grid, a development that will be very closely watched. The chair of the South African Independent Power Producers Association, Tommy Garner, told the Sunday Times, “It is very important for the electricity market in South Africa that you split Eskom into three entities.”


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Rural youth need access to digital technologies

Now, more than ever, the ability of countries, organisations and individuals to participate in the growing digital revolution relies on the acquisition and deployment of digital skills.

South Africa’s National Digital and Future Skills Strategy is clear in its assertion that ongoing technical developments require that South Africa adopts a clear and comprehensive digital and future skills strategy to foster the country’s ability to engage with, compete within and benefit from the emergent digital revolution, also referred to as the Fourth Industrial Revolution (4IR). Government entities, private sector firms and development institutions increasingly rely on digital technologies to drive economic growth, promote social development and provide cultural enrichment.

Legacy skills, and even existing ICT skills, are becoming obsolete, while new digital skills are in short supply. This means that countries seeking to advance the competitiveness of their key economic sectors and public services need to adopt a continual skills upgrade approach, where both ordinary citizens and research specialists acquire and advance their digital skills as part of a broad spectrum of 21st-century skills. The whole of society must become digitally adaptive to ensure digital inclusivity for future generations.

The problem that South Africa faces is that young people living in rural areas face the real risk of being left behind due to the lack of access to 4IR technologies. Research has revealed that access to the Internet, and hence digital learning and 4IR technologies, is less than 1% in rural communities. It is important to break down the social divide between urban and rural communities by ensuring equitable access to education and its outcomes regardless of race, gender or class.

The Ministry of Higher Education, Science and Innovation has urged the various stakeholders in the higher education landscape to collaborate and find ways to ensure that young people in South Africa are capacitated with digital skills to future-proof their career aspirations. CHIETA has paid heed to this call and is working to establish nine SMART skills centres in rural communities across the country.

To date, two SMART skills centres have been opened in the Western and Eastern Cape, the launch of a third is imminent in KwaZulu-Natal and the CHIETA team is working hard to finalise and open six more. By establishing the CHIETA SMART skills centres in rural communities the cost burden associated with transport and data that will ordinarily be placed on poor communities is significantly reduced.

These centres, among other objectives, serve to remind young people living in rural communities that they have an important contribution to make to the future of this country.

At the opening of the first SMART skills centre in Saldanha Bay in October 2022, Minister of Higher Education, Science and Innovation, Dr Blade Nzimande, said: “This SMART skills centre is a monumental step towards South Africa’s digital skills development not only to meet the demands of the 4IR, but also to accelerate local innovation and enterprise capabilities, which will drive job creation and economic growth.”

CHIETA’s SMART skills centres are designed to be a game-changer in terms of skills development and training. The centres will give rural communities access to free data and Wi-Fi services, basic digital skills, and 4IR-related training. In addition, various technology-based programmes will be linked to the centre, as well as a multitude of skills programmes and e-learning initiatives.

The Chemical Industries Education and Training Authority, CHIETA, is establishing SMART Skills Centres around the country to boost training in digital skills. Credit: CHIETA

Budding entrepreneurs and SMMEs specifically will benefit from the skills development opportunities and communication technology available at the centres. The goal is to provide a minimum of 2 000 SMMEs by 2025 with some kind of service or support to build job-creating, sustainable enterprises in the long run.

The SMART skills centre concept dovetails with the skills development efforts of the Department of Higher Education and Training (DHET), that is mandated to promote and monitor the national skills development strategy. The Department is also responsible for developing and implementing appropriate legislation and policies for a sustained quality and accessible post-school education and training system.

In 2020, Dr Blade Nzimande, articulated a vision for SMART skills centres to be established in all parts of the country to usher in a new era of skills development and training that would be located within rural communities and able to offer digitised training programmes for rural masses. CHIETA remains committed to being a part of this digital skills revolution.

Yershen Pillay, CEO of the Chemical Industries Education & Training Authority (CHIETA).

Debt Collection in the Digital Age Conference attracts leading industry players

The upcoming Debt Collection in the Digital Age Conference 2024, scheduled to take place on 12 & 13 March 2024 at the Indaba Hotel in Fourways, Johannesburg, is gearing up to be the industry’s highlight event.

TCI is proud to announce that Euphoria Telecom has joined the Debt Collection in the Digital Conference as gold sponsor. Euphoria is joining other sponsors such as bronze sponsor SearchWorks, exhibitors Datanamix, pay@ & Hyhpen Technologies, and associate Genii Analytics.

The organisers are delighted to announce that an impressive line-up of key players in the field has already secured their spots for this exclusive event. Among the notable companies already registered are:

The conference is witnessing an increasing number of registrations and a surge of interest from industry leaders and professionals.

Key innovations to be addressed at the conference

20+ speakers will tackle the following crucial topics pertaining to debt collection:

digital transformation | data analytics | speech analytics | machine learning | robotic process automation | chat-bots | artificial intelligence | interaction intelligence | social media integration

The Debt Collection in the Digital Age Conference promises a rich and immersive experience, featuring thought-provoking sessions, interactive discussions, and unparalleled networking opportunities. Attendees can expect to gain valuable insights into navigating the digital landscape, leveraging AI, and adopting cutting-edge technologies to enhance debt collection practices.

Join Trade Conferences International at this pivotal event, where industry experts and thought leaders converge to shape the future of debt collection.

For registration and more information, please visit www.tci-sa.co.za

Glencore Coal’s ongoing support empowers matriculants

The investment in education, especially in programmes that focus on developing and improving on important subjects such as mathematics and science are crucial for empowering the youth and enriching communities to inspire progress. In areas where resources may be limited, investing in education becomes even more essential as it can break the cycle of poverty and open doors to a brighter future for learners.

Glencore Coal, a key supporter of educational initiatives, has demonstrated its commitment to fostering progress for South Africa’s youth and communities. The company’s generous donations include 20 laptops and 10 smartphones at the Nkangala Mayoral Awards and 25 tablets to top learners at select host schools, amplifying access to digital resources and fostering academic excellence.

The matric class of 2023’s accomplishment is not an isolated incident; rather, it is the result of coordinated efforts, which included the innovative Ligbron eLearning program which has seen remarkable strides in the improvement of Mathematics and Science pass rates respectively, empowering students across 16 schools supported by Glencore Coal.

“We are proud of the Matric class of 2023, they have done exceptionally well. To have such incredible results through the Ligbron programme – it is a simple yet powerful reminder of the positive effects of investing in education can have on the youth from the communities we operate in. This is how we are progressing together with communities and other stakeholders to implement corporate social investment plans that focus on education and, in particular, mathematics and science.” remarked a Khomotjo Mashiane, Community Manager at Glencore Coal.

The Ligbron e-Learning System, is an instrumental programme used to connect schools nationwide by facilitating live-streamed Mathematics and Science lessons. This innovative approach has transcended geographical barriers, providing equal opportunities for students regardless of their location.

In Mathematics, 12 out of 16 schools saw increased pass rates, with seven schools showing improvements exceeding 20% from the previous year. Moreover, six schools achieved pass rates above 80%, indicating notable gains in mathematical proficiency.

In Science, 13 out of 16 schools experienced higher pass rates from 2022 to 2023. Notably, six schools exhibited improvements of over 20% compared to the preceding year, while 13 schools attained pass rates surpassing 80%, illustrating a shared commitment to scientific excellence.

The collective efforts of educators, students, and Glencore Coal reflect a shared commitment to advancing educational excellence and nurturing the leaders of tomorrow.

As we celebrate these monumental achievements, the journey towards a brighter future for all continues.