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Empowering South Africa’s R750-billion township economy

In South Africa, 73% of point-of-sale transactions are conducted in cash. Photo: Freepik

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. 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 ten 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 can 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.

What needs to be done

However, in order 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 campaigns can help dispel misconceptions about digital payments. Improving financial and digital literacy through training programmes and community outreach is also 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 can help build confidence among users.

Regulatory support and incentives

Creating a supportive regulatory environment for the adoption of digital payments 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.

Collaboration

Finally, promoting collaboration between government, financial institutions, technology providers and community organisations is essential for developing and 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 catch a taxi or a bus to the closest mall to withdraw cash. Now, thanks to the widespread availability of these card payment options at local community stores, residents can purchase goods directly from nearby shops. This not only supports small entrepreneurs but also saves customers money on transportation costs.

Annelene Dippenaar, Chief Business Officer at Shop2Shop.

The convenience of cashless transactions has led to a notable boom in the informal economy. More and 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 cards for transactions, banks are reducing ATM costs and focusing on enhancing the digital payment infrastructure. This shift supports the broader goal of financial inclusion, ensuring that all South Africans can participate in the digital economy.

Seemingly 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.

Although a fully cashless society is not necessarily the end goal, by taking these steps, 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.

About Shop2Shop

The Shop2Shop platform provides accessible end-to-end technology solutions designed to empower entrepreneurs and their stakeholders by facilitating seamless payments. Our mission is to help businesses thrive in the digital economy by removing barriers to growth. From payment devices that accept card payments to free and instant payments between stores and suppliers within the ecosystem. Shop2Shop provides a payment solution that gives customers immediate access to their financial transactions, fostering an inclusive economy connecting major brands and small, informal stores.

Western Cape public servants and municipal officials will convene in May – to learn and collaborate

This important annual event, which is now in its 12th year, enables public and private sector employees to exchange knowledge and develop their skills, to enhance service delivery and address the challenges faced by municipalities. This year’s gathering is particularly significant amid evolving legislative frameworks and critical infrastructure and energy challenges, the organisers state.

The conference is supported by the Western Cape Provincial Treasury and Department of Infrastructure and organised by Smart Procurement World. All public and private sector officials in the region are invited to attend, including municipal managers, chief finance officers, department heads, supply chain and procurement role players, asset managers and local economic development (LED) officials. Government departments, engineers and asset managers will also be in attendance.

The 2025 event’s theme is “Blueprint to Impact: Creating a Legacy of Growth”.

Smart Procurement chief operating officer Debbie Tagg outlines the rationale: “This year, we will explore forward-thinking strategies that address immediate needs while building resilient systems for long-term growth and economic transformation. This not to be missed event provides an essential platform for leaders, experts and stakeholders to unite, exchange knowledge and forge impactful partnerships,” she states.

Disaster management, community empowerment through strategic sourcing, reducing red tape and fostering partnerships for growth are among the topics on the agenda.

The private sector will be represented in corporate sourcing sessions for Western Cape procurement and supply chain professionals. Another value-add this year, according to Tagg, is the Small Business and Supplier event that will be hosted alongside the main procurement conference. “This is a unique platform bringing businesses, corporations and enterprise development stakeholders together, creating an environment for market access and business growth in the region.”

The key sessions on this year’s compelling programme include a discussion entitled “From Challenges to Solutions: Procurement as a Catalyst for Change”, presented by Isac Smith, Deputy Director General: Governance and Asset Management, Western Cape Provincial Government.

Debbie Tagg, Smart Procurement COO

A panel discussion will explore the future of procurement and offer essential skills for thriving in the digital age. “Beyond Compliance: Cultivating a Performance-Driven Procurement Culture” is the title of a presentation by Western Cape Provincial Treasury’s procurement specialist Cindy Lekay.

Embedding sustainability into core procurement strategy is also on the agenda. As consumers demand more ethical choices and ESG regulations tighten, sustainability in procurement has become a strategic imperative. This session unpacks how forward-thinking businesses are moving beyond box-ticking to build resilient, transparent supply chains that deliver both purpose and profit.

To register for the Western Cape Procurement Conference which takes place in Rawsonville, or to find out more, visit the event website, https://smartprocurementworld.com/wc/, or email matshidiso@smartprocurement.net

South Africa’s G20 priorities

South Africa’s G20 presidency follows on the heels of Brazil’s very successful G20 presidency last year and takes place ahead of the G20 presidency of the USA in 2026. As a leading forum for international economic cooperation, the G20 plays an important role in shaping and strengthening global architecture and governance on major international economic issues.

For the first time in its history, the G20 is being hosted on the African continent following the admission of the African Union as a member of the G20. This is a moment of great significance for South Africa, the African continent and the world in that it was in Africa where humans developed the capacity and the impulse for cooperation.

Cooperation has been one of the key markers of human development touching on many aspects of life, from survival and social organisation to technological and cultural progress, which is what the G20 was established for. To foster cooperation to deal with the challenges the world faces. Cooperation: the bedrock of human civilisation. Without cooperation and collaboration – between individuals, groups, peoples and nations – humanity cannot progress.

As we confront the challenges of the 21st century – from climate change to pandemics, from poverty to terrorism, from migration to artificial intelligence – we are again called upon to harness that most powerful, and that most enduring, of human attributes: mutually beneficial cooperation and collaboration. This is a time of rising geopolitical tensions, unilateralism, nationalism, protectionism, isolationism, rising debt levels affecting poor countries in the world and a declining sense of common purpose. Yet, this is a moment when we should be standing together as a global community to resolve the problems that confront humanity by ending the wars and conflicts that are causing such hardship and misery to many people around the world.

Cooperation has been one of the key markers of human development.

We are called upon by the exigency of the moment to act together with greater urgency to halt the destruction of our planet. This is a moment when we should harness the abundant resources we collectively possess and the remarkable technologies that human ingenuity has produced to overcome poverty and inequality, unemployment, especially youth unemployment and the abuse of women, once and for all.

Thirty-three years ago, the founding president of democratic South Africa, Nelson Mandela, spoke here at Davos. He said, “Our interdependence, bringing us together into a common global home, across the oceans and the continents, demands that we all combine to launch a global offensive for development, prosperity and human survival.”

In pursuit of this objective – and in giving effect to the mission of the G20 – South Africa will focus its G20 presidency on three themes: solidarity, equality and sustainable development.

It is South Africa’s firm view that these themes can best be taken forward through the collective actions of institutions like the G20 and various multilateral institutions of the world, especially the United Nations (UN), the WTO and global financial institutions which should be reformed and be more representative and responsive to the needs of the citizens of the world.

We will seek to get the G20 to focus more on how we can enhance solidarity through collective efforts to ensure that in the pursuit of progress for all, no person and no country is left behind. The rights and freedoms of one people cannot be separated from the rights and freedoms of all peoples. This is the foundation on which solidarity is built. One of the greatest impediments to growth, development and stability is the persistence of inequality within and between countries. The pursuit of the UN Sustainable Development Goal on reducing inequality is as much of an economic imperative as it is a social imperative.

As the G20, we need deliberate and coordinated efforts to focus on inclusive growth based on responsive trade and investment to grow the incomes of poor nations and the poorest in society and to ensure equal access to opportunities, especially for women and young people. For nations to flourish, equality and prosperity must be available to everyone – regardless of gender, race, religious beliefs or economic status.

In addition to huge gaps in economic capabilities and levels of human development, countries of the Global South face a lack of predictable financing for development and climate change, high levels of debt and vulnerability to pandemics.

Debt sustainability for low-income countries is one of the four priorities of South Africa’s G20 presidency. In the world we inhabit today, the pursuit of equality and the practice of solidarity cannot be separated from sustainable development. We need to meet the needs of the present without compromising the ability of future generations to meet their own needs.

It is in the interests of all countries to act with greater urgency to reduce global emissions – and for industrialised countries to support the climate actions that poorer countries must necessarily take in line with and support decisions of UN climate change summits. Another of South Africa’s priorities for its G20 presidency is to mobilise finance for a just energy transition.

We will seek agreement on increasing the quality and quantity of climate finance flows to developing economies as agreed at various UN climate change summits. We will continue to call on global financial institutions on the redirection of Special Drawing Rights, which are left unused. It is simply not fair that over 60% of Special Drawing Rights go to a handful of wealthy countries. These Drawing Rights should be redirected to enable countries in Africa and other parts of the Global South to realise their developmental aspirations – to enable them to invest in infrastructure, in industrial development, in education and training and in healthcare.

We need to leverage private capital and use innovative forms of finance and taxation to raise additional resources for sustainable development. Global finance institutions should derisk and support more financing for emerging and developing economies. We need to support country initiatives aimed at addressing climate change, such as the Just Energy Transition Partnership that South Africa has entered with several countries of the Global North.

As we accelerate the transition to low-carbon economies in a manner that is just and inclusive, we must recognise the damage that climate change has already wrought. And will continue to wreak. Considering this, South Africa has made the strengthening of disaster resilience as another of the priorities of its G20 presidency.

The increasing rate of climate-induced natural disasters is affecting countries that can least afford the costs of recovery and rebuilding. To address this, special financing and insurance mechanisms must be made available to scale up funding for post-disaster reconstruction. Since the dawn of the industrial age, the benefits to humanity of economic growth have been achieved at the cost of environmental destruction. If we are to survive and thrive as humanity, we must change this. We must pursue development pathways that reconcile growth with urgent climate action.

Another of South Africa’s priorities for its G20 presidency is to harness critical minerals for inclusive growth and development. We need a G20 framework on green industrialisation and investments to ensure progress towards a grand bargain that promotes value addition to critical minerals close to the source of extraction.

Another of South Africa’s priorities for its G20 presidency is to harness critical minerals for inclusive growth and development.

We also need the development of low-carbon manufacturing value chains which can support decarbonisation and industrial development. There is a need to promote beneficiation and local value addition of resources at source resulting in an additive rather than an extractive relationship. As minerals extraction accelerates to match the needs of the energy transition, the countries and local communities endowed with these resources must be the ones to benefit the most.

We will use this G20 to champion the use of critical minerals – through a programme of green industrialisation – as an engine for growth and development in Africa and the rest of the Global South. As this will be the first G20 summit held in Africa, it is a valuable platform to demonstrate Africa’s promise. Many agree that Africa is the next frontier of global growth and productivity.

The African continent has an unrivalled natural resource endowment with the youngest population of all continents.

Africa continues to be an expanding market for goods and services. The African Continental Free Trade Area (AfCFTA) has the potential to change the economic and social fortunes of the continent. We will seek G20 support for the AfCFTA Adjustment Fund that will enhance inclusive growth, sustainability and regional integration.

We will look to consolidate various G20 initiatives related to Africa into a flagship agreement for cooperation focused on implementation of investments in productive sectors in Africa in areas such as infrastructure. An infrastructure revolution is propelling Africa’s growth.

We seek investments in the development of skills for Africa’s youth and the economic empowerment of its women. In the health sector we would want the G20 to support the production of pharmaceutical products such as therapeutics and vaccines to deal with pandemics. The digitisation of the continent to enhance trade and development is a key enabler. Through its G20 presidency, South Africa is well-positioned to advance global cooperation and build partnerships for growth and development. South Africa has a rich history of inclusive dialogue and common action.

The rights and freedoms of one people cannot be separated from the rights and freedoms of all peoples.

Over the last few years, the South African government has been working closely with social partners in business and in labour to address key national challenges and drive inclusive growth. This cooperative culture and approach were taken to a higher level with the establishment of the Government of National Unity (GNU) following the elections held in May 2024. The GNU, made up of 10 political parties, has been vital to stability and inclusive governance, and has contributed to greater interest among investors in South Africa’s economic prospects.

The seeds of human progress were sown in Africa. In Africa, the earliest forms of cooperation were forged and developed. As the leaders of the G20 return to Africa, we make a call that we all harness these essential capabilities that will make us take action to build a better and fairer world.

Acting together, we should build an inclusive, just and equal world in which all may prosper, leaving no one and no country behind.

SAICE highlights repercussions of inaction on South Africa’s water infrastructure crisis

  • South Africa’s water infrastructure is deteriorating, with the Department of Water and Sanitation estimating the country needs to spend over R90 billion a year over the next decade to repair and upgrade existing infrastructure, a clear indicator of the scale of the problem.
  • The SAICE Water Division comments that “over 40% of the proportion of water produced and supplied for more than 80% of the country, is lost due to insufficiently maintained infrastructure resulting in high non-revenue water (NRW) due to leaks, commercial losses such as meter under-readings or theft”.
  • The government has secured R23-billion for seven large water infrastructure projects, recognising the urgency of the situation, but SAICE water experts say this is just a drop in the ocean for what is genuinely needed to stem South Africa’s water crises.

South Africa stands at a critical juncture in its infrastructure development, with water infrastructure at the forefront of this challenge. Water security is the foundation of economic stability and growth. Without reliable access to clean and affordable water, industries falter, agriculture suffers, communities struggle and investors reconsider investment in South Africa. From Nelson Mandela Bay and Komani in the Eastern Cape to the unfolding water shortages in Johannesburg, Gauteng, millions of South Africans are grappling with dry taps, unreliable supply, and deteriorating infrastructure.

For millions living in poverty, unreliable access to clean water is not just an inconvenience. It poses a daily threat to health, livelihoods, and survival, not to mention revoking the constitutional human right to water, as enshrined as a fundamental human right in South Africa (supported by both the Constitution of 1996 and the Water Services Act 108 of 1997). Water insecurity has a ripple effect, with a potential of slowing the economy, disrupting education, worsening food shortages and undermining the country’s overall stability.

Despite the R156.3-billion being committed towards water and sanitation in the recent 2025 budget speech, it is understandable that water engineering experts from the South African Institution of Civil Engineering (SAICE) are justifiably concerned that the municipalities might lack the engineering expertise among other things to use these grants efficiently.

As Water month in South Africa has come and gone, with the celebrated World Water Day on 22 March 2025, we are keenly reminded of the harsh reality that South Africa is a water-scarce country, relying on only about half of the global average rainfall to replenish our surface water sources.

So, what is the cost of inaction in terms of water security for South Africa?

The country’s water infrastructure crisis has been exacerbated by rapid population growth and urbanization, climate change, inefficient water management, poorly maintained infrastructure, and unequal distribution of water resources. Inadequate investment in water infrastructure – specifically underfunding of operations and maintenance – along with increasing water resource scarcity, have emerged as further major challenges. Solving them is not just an environmental necessity but an economic imperative. The fact is, without adequate water security, our economy will contract.

Despite the R156.3-billion being committed towards water and sanitation in the recent 2025 budget speech, it is understandable that water engineering experts from the South African Institution of Civil Engineering (SAICE) are justifiably concerned that the municipalities might lack the engineering expertise among other things to use these grants efficiently.

“In the absence of proper planning, feasibility studies and suitable technically driven procurement, such grants may be misspent or even unspent whether on upgrading, renewal or new infrastructure,” comments Wynand Dreyer, Chair of the SAICE Advocacy Committee.

The SAICE Water Division acknowledges the positive strides made by the Department of Water and Sanitation (DWS) in recent years. In his budget speech on 16 July 2024, Honourable David Mahlobo, Deputy Minister of DWS, highlighted that nearly R98 billion has been spent by the department to support municipalities in infrastructure development across 144 Water Service Authorities. This significant commitment to improving water infrastructure is encouraging, and SAICE fully supports these efforts.

However, although there are some encouraging developments, SAICE cautions that there are still serious challenges that need to be overcome. One only has to take a look at recent history: between 2018 and 2022, expenditure at the DWS hovered between R17 billion for all water programmes, including new projects and maintenance. In contrast the budget for the 2023 to 2025 period of R69.3 billion in total failed to make a dent, falling R200 billion short of the necessary target.

“The imperative to fix and renew aged and defective infrastructure cannot be overemphasised. Our statistics on non-revenue water tell a damning story of neglect with over 40% of water produced and supplied to more than 80% of the country, lost due to aging and broken infrastructure as a result of leaks or unaccounted for water due to theft. We desperately need to see these numbers turned around,” emphasises Dreyer.

Environmentally, dysfunctional wastewater treatment plants have played a significant role in untreated, or partially treated, sewage being discharged into the environment, including rivers and oceans. Lack of compliance and monitoring by competent authorities exacerbates the water crises. During minor floods, the impact of the degraded water flow into rivers is huge, with wastewater treatment plants discharges stimulating excessive reed growth, which in turn, alters riverbeds. The result is that instead of there being a 1:50 or 1:100 year chance of floods, developments in areas that were previously far away from the flood zones, now fall within these flood zones, increasing their risk of being flooded.

“This is detrimental to the environment as it pollutes the watercourses from which we abstract our drinking water, adding to the complexity and cost of purification, pollutes our oceans, and is, in turn, hazardous to our health and the seafood we eat. Not to mention exposing the risk of floods to many developments which previously were not at risk,” explains the Water Division.

Turning focus to spatial planning and developments, the increasing demand for inner city accommodation as a result of migration of people to urban areas requires the planning of serviced human settlements in appropriate areas. Engineers need to be involved or at least contribute towards these developments. There is no denying the effect of failure of many municipal governments to maintain and enhance their infrastructure, in the face of increasing demand by growing inner city populations.

“This situation requires holistic project management and implementation setup to ensure the project cycle can be used to contribute to success in restoring aging or collapsed infrastructure, plan better and operate the system properly. If the system is not robust, corruption, theft and vandalism remain the cancer of the system,” notes Segomotso Kelefetswe, SAICE’s advocacy contributor on water infrastructure.

“A sphere of government needs to be encouraged to appoint properly qualified and professionally registered personnel with reputable track record or appoint a panel of experts to support the implementation, training and development with the eye to improve skill (capacity building) and also ability to retain the talent,” adds Kelefetswe.

Public Private Partnerships (PPPs) have the potential to bridge the skills gap but only if the initial project preparation i.e. the feasibility studies and PPP procurement process, is properly done by the municipality, with specialist assistance where required. PPPs hold the promise of leveraging limited government funding to crowd in project finance for bankable projects, along with the PPP Unit and GTAC in National Treasury both providing free advisory support for such initiatives and the DBSA and ISA both indicating their willingness to support project preparation with qualified personnel and seed capital.

Public Private Partnerships (PPPs) have the potential to bridge the skills gap but only if the initial project preparation i.e. the feasibility studies and PPP procurement process, is properly done by the municipality, with specialist assistance where required.

When a PPP is concluded, the procuring state entity has the assurance of efficient construction and a robust contract and budget to maintain the facility for 20 years at least. The cost however has to be covered through the tariff and must be properly considered during feasibility.

Says Dreyer, “SAICE has identified experienced engineering personnel who are willing and able to take on short-term assignments to add capacity to these initiatives and also has wide-ranging learning programmes aimed at up-skilling engineering personnel in metros and municipalities. Many of these programmes are accessible online and through self-study.”

Shares Kelefetswe, “There are entities that have started to put in action a deliberate intention to encourage the public sector to support the government as part of ensuring that planned programmes do get to fruition. The process involves PPP but in a collaborative style as the Private Sector and Public sector co-implement projects at a shared responsibility level, and we use a 50-50% split in terms of overall responsibility inclusive of management, funding contribution, implementation and further processes that even extend to municipal readiness.”

“It would be good to work towards various PPPs in a collaborative manner, allowing the parties to work through a signed agreement to ensure we save time and cost. Secondly, funds allocated to projects in most systems goes towards the projects plus other costs, yet in collaboration setup, the full cost goes to the project as in Rand for Rand and that optimises the amount of money to be spent on the project. Thirdly, institutional arrangement must uphold the public procurement system with transparency, ethics and accountability as key cornerstones,” advises Kelefetswe.

“The optimal solution needs to be held at an institutional level with the amount of money lost or stolen being reduced. That is the only way the funds will get to do what it was originally intended,” adds Kelefetswe.

Looking forward, leadership both nationally and on a municipal level need to be informed and influenced to make the appropriate decisions on policy, budgeting and priorities around water resource management and development, to avert this looming water security crisis.

For more information, visit https://saice.org.za

Latest research for a smarter, stronger wine industry

South Africa Wine has just published the 2024 Technical Yearbook, packed with the latest research and practical advice to help our wine industry grow stronger, smarter, and more sustainable.

This annual publication combines work from top researchers, viticulturists, and winemakers, covering everything from new Pinotage clones and bioprotection to managing winery wastewater and dealing with calcium tartrate instability. It turns science into practical, real-world solutions for the vineyard and cellar.

“This book helps our industry stay on the front foot,” says Gerard Martin, who heads up Research, Development, and Innovation at South Africa Wine. “We want to ensure that the best and latest information is shared and used in the field and the winery. That’s how we stay competitive and keep improving.

“Why does this matter? Because knowledge is key. Our industry faces climate change, shifting markets, and rising costs. The Technical Yearbook gives producers the tools to make informed decisions, work more efficiently, and adapt to change.”

This is the second year the Technical Yearbook has been published under the South Africa Wine banner. It’s part of this umbrella body’s ongoing efforts to build a culture of learning and innovation, and to support everyone who works in our industry, from the soil to the bottle.

Download the 2024 Technical Yearbook and previous editions here: https://sawine.co.za/knowledge/technical-yearbooks/

To view the news release in Afrikaans, click here.

The circular economy’s promise to reduce landfills and avert disaster

While the global circular economy market is valued at over R550-billion, as per an analysis by Spherical Insights, South Africa is severely lagging the rest of the world. According to the Council for Scientific and Industrial Research (CSIR), the country has a socioeconomic cycling rate of only 2%, indicating an alarmingly low rate of recycling and reuse of materials throughout the economy. It’s estimated that about 90% of waste ends up at landfills instead of being reintegrated into production processes.

Patricia Schröder, president of the Institute of Waste Management of Southern Africa (IWMSA), warns, “We are stuck in a cycle of managing waste and dealing with overburdened landfill sites. The answer to South Africa’s waste challenges is not waste management, but rather waste minimisation. The most effective way forward is to bring more companies of every size into the circular economy and reduce the amount of waste we dump on our landfills.”

What is the circular economy?

In a perfectly circular economy, all materials are fully utilised through various stages in the production process, with no waste being created. “This is more the ideal, rather than what’s plausibly achievable under real-world conditions. Most materials degrade in quality and, thus, usability over time, and some modern products have many layers of tightly integrated materials that would require large amounts of energy to separate and recycle properly,” explains Schröder. But, she believes, just because something is complex and imperfect doesn’t mean society shouldn’t work to be better every day.

The goal is rather a near-circular economy, which companies can help drive by implementing circular strategies into their operations and encouraging the same throughout their supply chain.

We are stuck in a cycle of managing waste and dealing with overburdened landfill sites. The answer to South Africa’s waste challenges is not waste management, but rather waste minimisation.

IWMSA recommends that businesses minimise waste by, first, reducing the resources needed in the production process and limiting surpluses. Then, use any remaining material in other aspects of the production process. What can’t be reused, needs to be recycled following the correct recycling protocols.

From there, waste management sector participants may be able to reclaim some material to make other products, and waste that can be used as fuel should be utilised to generate electricity. Only after each of these avenues has been exhausted should any remaining waste be sent to a landfill.

To close the production loop and significantly reduce waste, companies can improve product designs to reduce the resources required, extend lifespans, make them easily repairable and improve recyclability. Additional closed-loop recycling systems can be introduced that, for example, chemically break down plastics for reuse in high-quality applications, or recover metals like aluminium and steel for reuse.

Companies also need to make use of biodegradable materials like bioplastics or natural fibres where possible and utilise renewable energy in production and recycling processes to further limit negative impacts on the environment.

Industry trends and challenges

To ultimately achieve an acceptable level of circular economy implementation in South Africa, Schröder lists several critical barriers that urgently need to be overcome in the next few years.

Having grown by over 835 000 people within the space of a year, South Africa’s population exceeded 63-million in July 2024, with life expectancy having risen by nearly 13 years over the past two decades. Larger populations that live longer have significant benefits for the economy but also place considerable strain on resources and create more waste.

According to Schröder, limited funding for essential waste services across the country further compounds the issue, since many areas simply lack the resources to implement modern and efficient disposal methods or to invest in cutting-edge recycling technologies. Moreover, without sufficient funding, municipal collection points often fail to separate recyclable materials efficiently, leaving smaller businesses with limited options and larger companies to pay for expensive private contractors.

Lastly, businesses eager to incorporate secondary raw materials into their production processes discover that the supply of recycled or reclaimed inputs is either unreliable or prohibitively expensive, dampening their willingness to make long-term commitments to sustainable practices.

“While industries are capable and often willing to take on the bulk of the work to drive forward circular economy initiatives, the overall responsibility ultimately rests on everyone’s shoulders. This includes waste management agencies, government, individual municipalities and the everyday person who uses the products. If we want to reach our country’s sustainability goals in the coming years, and avoid a landfill crisis, we need to work together to find a better way forward,” concludes Schröder.

Featured image by Miroslav Gecovic from Pixabay

The Big 5 Construct South Africa 2025

Where South Africa’s construction industry meets to do business

Big 5 Construct South Africa creates a perfect environment for manufacturers, distributors, service providers and industry professionals to connect, source products and explore the latest in construction. Network with peers and grow your business in this dynamic environment.

Join us at the Gallagher Convention Centre from 18 – 20 June 2025 to:
  • CONNECT with industry buyers and distributors
  • GAIN direct access to the key stakeholders involved in the upcoming plans and budget allocations
  • ACCESS export opportunities in the rest of Africa
  • GENERATE highly relevant and quality leads from a captive audience
  • BUILD your brand position and establish your organisation as an industry leader

Join us to accelerate your business.

Visit the event website

Securex South Africa 2025 — The ultimate destination for solution-driven security

As the demand for smarter, more resilient security solutions continues to grow, Securex South Africa 2025 is the must-attend event for professionals across the security and risk management sectors. Taking place from 3 to 5 June 2025 at Gallagher Convention Centre, the expo brings together leading security innovators, superior technology, and unmissable live demonstrations.

“Co-located with A-OSH EXPO, Facilities Management Expo, and Firexpo, Securex South Africa offers a 360° view of security, occupational safety & health, facilities management, and fire protection solutions — all in one venue,” says Mark Anderson, Portfolio Director at Specialised Exhibitions — a division of Montgomery Group.

Some examples of the security solutions on display include:

  • The SIMcontrol (Hall 2, Stand C17) platform, which enables seamless, cost-effective management of critical device SIM cards across all major mobile networks, making it ideal for CCTV, alarm systems, access control, and guard tracking devices.
  • Experience the Fog Bandit (Hall 2, Stand A10) in action. Watch as the system engulfs a space in seconds, leaving criminals completely blind and disoriented.
  • ServCraft (Hall 2, Stand F34) business management software is the ideal choice for security installation, repair and maintenance businesses. The company recently launched an industry-first initiative — ServCraft Mastery, an educational platform for security business owners to bring them content, curriculum and coaching to grow their business.
  • The Turnstar (Hall 2, Stand B08) Velocity Raptor is designed to enhance traffic flow and security, offering high-speed operation, to minimise delays for vehicles passing through. The barrier has an optic LED barrier arm for improved visibility, especially in low-light or poor weather conditions.
  • YeboTech (Hall, Stand C13a) specialises in smart key and locking solutions. Unlike traditional mechanical locks, YeboTech’s solutions enhance security by eliminating the risks of lost or duplicated keys, while providing full control over access using the advanced software management platform for remote configuration and monitoring.
  • Amongst other solutions, Hikvision (Hall 2, Stand A01) will showcase its Prime Pass Series speed gates. This new series integrates advanced technologies such as direct Time-of-Flight (dToF) sensors and biometric recognition, combining record acquisition, verification, and control into a single cohesive system to streamline installation and enhance the passing experience.
  • Arteco (Hall 2, Stand D09) is redefining video surveillance with the latest advancements in uSee, its VSaaS solution. The new forensics search engine leverages metadata to instantly locate people, belongings, and vehicles, drastically cutting down search times for faster security responses.
  • iWalkie (Hall 2, Stand B15), part of the RTS Group, specialises in GSM radios for users with more diverse needs. The iWalkie mobile radio features 4G+ network support, GPS tracking, individual calling, duplex calling, panic button and a remote programmable function.
  • PIMA Electronic Systems (Hall 2, Stand D03) offers a comprehensive portfolio of hardwired, hybrid, and wireless alarm systems suitable for residential, commercial, and industrial applications. PIMA offers a cloud-based application for remote monitoring and control, enhancing user convenience and security management.
  • KYR (Hall 2, Stand C22) offers an array of advanced systems, including Hanwha CCTV surveillance, Intercall nurse call systems, Eaton fire alarm systems, FBT public address systems, RBH access control, and Bodet master clock systems.
  • InQuest Forensic Services (Hall 2, Stand C11b) specialises in forensic psychophysiology (polygraphy) as an investigative tool to assist companies and individuals with uncovering the truth in various matters. The company also conducts a range of background checks to support its clients in their pursuit of truth.
  • New Glory (Hall 2, Stand F21) will introduce its tactical anti-ballistic glasses and goggles. Engineered to exceed the US Military MIL-PRF-32432 standards, the eyewear features the exclusive ZeroFog™ Technology, meaning the lenses stay clear even after 30 seconds of hot water exposure, guaranteeing unmatched anti-fog performance.
  • The Docked Drone Solution from 24/7 Drone Force (Hall 2, Stand D14) utilises unmanned aircraft systems (UAS)/drones designed to conduct remote docking station operations. The drone-in-a-box solution takes off, lands, and recharges from a docking station automatically.
  • Avior Labs (Hall 2, Stand F31) will showcase Elevation-G, a next-generation fixed-wing VTOL drone designed for advanced surveillance and security operations. With SilentFly™ technology for covert missions, a dual EO-IR stabilised camera, and real-time video streaming, it delivers high-performance intelligence gathering with exceptional range and endurance. Elevation-G is ideal for defence, security, and critical infrastructure monitoring.
  • Nemtek (Link Node, Stand LN6) will demo its newly enhanced FG7C+ Fence Controller, now with an advanced software upgrade that connects all Nemtek devices, and the Nemtek Connect Portal — a web-based platform for comprehensive site management.

Action-packed visitor attractions

Anderson says that visitors can experience live demonstrations, expert-led competitions, and interactive showcases throughout the event:

    • SAIDSA Techman Competition — Watch South Africa’s top security technicians go head-to-head as they battle for top honours in this high-stakes skills contest.
    • K9 Demonstrations — See highly trained security dogs in action as they showcase their expertise in detection, patrol, and protection techniques.
    • Drone Demonstration Area — Get up close with the latest in aerial security surveillance as drones take centre stage, demonstrating their capabilities in perimeter monitoring and rapid response.
    • OSPA Awards — The Outstanding Security Performance Awards (OSPAs) recognise excellence across the security industry, celebrating businesses and individuals who go above and beyond in safeguarding people and assets.

“And we mustn’t overlook the free-to-attend Securex Seminar Theatre, in partnership with SMART Security Solutions. Knowledge is power, and the seminar sessions deliver expert insights into the latest security trends, technologies, and challenges,” says Anderson.

Some of the topics visitors can look forward to include:
  • The real impact of AI on security.
  • Remote monitoring with AI.
  • Perimeter security for 2025.
  • The new CCTV draft law.
  • Cybersecurity.
  • Local innovation in security.
  • Access control & visitor management.
  • The future of guarding.
  • Reasons to use a registered security company and service provider.

Industry body endorsement

“Securex South Africa is proudly supported by leading industry bodies, reinforcing its status as the region’s premier security event. We have developed long and lasting relationships with respected industry bodies that represent the individuals and organisations that come to Securex South Africa for their security solutions,” Anderson points out.

These include American Society for Industrial Security — South African Chapter (ASIS International), Electronic Security Distributors Association (ESDA), Fire Protection Association of Southern Africa (FPASA), National Bargaining Council — Private Security Sector, Outstanding Security Performance Awards (OSPA), Private Security Industry Regulation Act (PSiRA), South African Intruder Detection Services Association (SAIDSA), and South African Security Association (SASA).

Entry into Securex South Africa and the co-located shows is free. To find out more about Securex South Africa, and to pre-register, visit the expo’s website at https://securex.co.za/

Organisations wishing to exhibit at Securex South Africa 2025 can contact the Securex South Africa team on zelda.jordaan@montgomerygroup.com or johan.vanheerden@montgomerygroup.com to book a space or capitalise on a sponsorship opportunity.

See some of the Securex South Africa 2024 highlights

Your invitation to the Lesedi La Afrika Endowment Fund Annual Fundraising Gala Dinner

Your invitation to make a lasting impact starts at SPU

Join us for an unforgettable evening as Sol Plaatje University (SPU) will host its Annual Lesedi La Afrika Fundraising Gala Dinner, on Friday, 16 May 2025 in Kimberley. We invite you to support this fundraising initiative by becoming a corporate sponsor or buying a table through which you can negotiate marketing rights at the event and engage in discussions about a long-term partnership with the University.

SPU seeks to rally support from friends and supporters of SPU, under the inspiring theme of “Sustaining the Future.” All funds raised will directly contribute to scholarships, social impact projects, infrastructure development, and human capital support. This endowment fund will allow the University to set a solid foundation and endow an exceptional institution for future generations.

Corporate and Table Sponsorship Options:

  • CORPORATE SPONSOR: R150 000
    Two front row tables for twenty (20) guests and premier brand placement
  • GALA DINNER TABLE(S): R20 000
    One table for ten (10) guests and branding recognition in the event programme
  • SEAT(S): R2 000
    A seat for an individual guest

Corporate Sponsorship Benefits:

1. Brand Exposure: Your organisation will receive extensive brand exposure through our various promotional channels, including but not limited to our website, social media platforms, newsletters, and event collateral. This exposure will help increase your brand visibility and awareness amongst our growing student body, staff, partners, and alumni network.

2. Reach: You will have the opportunity to directly reach our target audience, including influential players in the higher education sector, and diverse university stakeholders. This will provide a platform to showcase your products/services to a highly engaged and relevant audience.

3. Networking Opportunities: Your company will have exclusive access to networking opportunities with our students, staff, and alumni. This will enable you to build valuable relationships and explore potential recruitment prospects.

Next Steps

We would be delighted to discuss this sponsorship and branding opportunities further and provide more information. Kindly let us know your preferred mode of communication and availability. We can schedule a meeting at your convenience.

For the Lesedi La Afrika Annual Fundraising Gala Dinner enquiries, contact Ms Tshepisho Sebeela: tshepisho.sebeela@spu.ac.za.

We look forward to working together and creating a successful partnership that will positively impact our institutions and enable SPU to change lives and enable brighter futures for all.

Skills Development at the heart of employees’ abilities to adapt to evolving demands in the workplace 

Air Products’ Learning and Development Manager, Zodwa Tomile, is the driving force behind the development of employees and adhering to industry legislation. 

Air Products has implemented numerous programmes over the years to strengthen the company’s Skills Development efforts and to ensure the growth of employees and diversity in the workplace. As a leader in the industrial gas industry, Air Products, like many other businesses in South Africa strive to contribute towards the growth and development of their employees, but more importantly, the South African workforce as a whole. Skills Development no longer only impacts individual businesses, the impact on the economy as a whole is evident.

At the heart of Skills Development, the team who oversees this portfolio ensures compliance to legislation, navigates the company through the complex landscape of Skills Development and ensures that the relevant deadlines are met.

According to Zodwa Tomile, Learning and Development Manager at Air Products, Skills Development plays a critical role in gaining, improving, and expanding the abilities of employees which can be done as formal, informal and on-the-job training. There are numerous advantages of enabling employees to improve their skills set, as it equips them to adapt to changes in the work environment, improves their employability, assists them to achieve their professional goals and it contributes to the overall performance and success of the organization.

Skills Development, a key element within the Human Resources (HR) portfolio

Skills Development plays a pivotal role in HR, specifically within Air Products, as it ensures that the skills and knowledge required by employees are in place. Most importantly, it looks at the trends in the industry / sector in terms of scarce and critical skills, sourcing and implementing relevant interventions. Tomile explains that the industrial gas industry is specialised and technical, which requires a workforce with specific skills sets. It is important to equip the employees with the knowledge and relevant skills they require to function optimally in their roles. Furthermore, Skills Development assists in creating and strengthening a talent pool within the company.

There are numerous advantages of enabling employees to improve their skills set, as it equips them to adapt to changes in the work environment, improves their employability, assists them to achieve their professional goals and it contributes to the overall performance and success of the organization.

Tomile, who joined Air Products in 2016, explains that she has worked tirelessly to change the status quo and the company has experienced positive outcomes as a result, due to the support and buy-in from all internal stakeholders. She further mentions that learners and programme participants are the heart of all the training interventions that they implement.

Unpacking Skills Development and legislation

Organisations within all industries are required to compile and submit the Workplace Skills Plan (WSP) / Annual Training Report (ATR) to their respective Sector Education and Training Authority (SETAs). This information is consolidated into the Sector Skills Report, which in turn informs the National Skills Plan. The National Skills Plan determines the skills needs for the country and issues a directive to relevant institutions for implementation.

Skills Development is underpinned by a number of South African regulations such as the Skills Development Act, Skills Development Levies Act, Employment Equity Act and BBBEE Act to mention a few.

However, as an industrial gas manufacturing organisation, Air Products is affiliated to the Chemical Industries Training Authority (CHIETA) Sector Education Training Authority (SETA). CHIETA plays an important role in identifying the skills needs and gaps within the chemical industry and partnering with the industry in addressing those skills/training needs.

The manufacturing industry is constantly evolving, and there is a definite shift from manual assembly lines or techniques towards more technologically advanced automated processes.  In order to be sustainable as an organisation, it is crucial that companies invest in developing its most important resources, the employees.

Skills Development in action at Air Products

Tomile further describes that she compiles and submits the Workplace Skills Plan (WSP) and Annual Training Report (ATR) to the primary SETA, the Chemical Education and Training Authority (CHIETA) on an annual basis. This report informs the SETA on which training was implemented in the previous year as well as the training planned for the current year. This information is then incorporated into the Sector Skills Plan which determines the priority of skills for the chemical industry which in turn informs the national skills needs (National Skills Plan).

Commenting on the challenges of Skills Development, Tomile comments: “There has been a shift in the Skills Development landscape that came into effect on 1 July 2024. This has brought many changes and challenges in the field, with most, historical qualifications being replaced by QCTO Occupational Qualifications. The introduction of Occupational Qualifications aims to align the learning programmes to the occupations in the workplace, in accordance with the Organising Framework for Occupations (OFO) Codes, which is basically a skills-based classification system for jobs in South Africa.”

Even though there are several challenges with regards to Skills Development, Tomile highlights that Air Products has success stories to share. The implementation of Recognition of Prior Learning (RPL) in technical and non-technical fields has yielded the desired results as employees who participated in various learning programmes attained Certificates of Competence and Red Seal Certificates. Through these programmes, the unemployed youth are now permanent employees within Air Products and their Skills Development Absorption Partners. Over the years, they have also partnered with various Skills Development Providers to implement programmes for unemployed learners with disabilities and placed over 80% in permanent employment. Through these initiatives, individuals have not only obtained certificates or qualifications, but there has also been a significant improvement in their self-confidence, increased employment opportunities, and subsequently, improved livelihoods.

Tomile concludes: “As a leader in the industrial gas industry, it is imperative that Air Products, as an organisation ensures compliance to legislation, but more importantly, that we create opportunities for our employees to improve their skills and knowledge in order to excel and contribute to the future success of the company. My axiom is changing lives, one at time, through Skills Development. In the words of J.P. Morgan, the first step toward getting somewhere is to decide that you are not going to stay where you are.”

For more information on Air Products, visit www.airproducts.co.za.

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