Rugby fans can look forward to an exciting new international competition in 2026, as SANZAAR and Six Nations Rugby team up to reshape the global rugby calendar. The tournament promises to deliver more competitive fixtures, showcasing the sport’s best talent while paving the way for emerging nations to make their mark.
What to expect from the new competition
The competition will feature 12 teams, including the Six Nations sides – England, France, Ireland, Italy, Scotland, and Wales – alongside SANZAAR’s Rugby Championship teams: Argentina, Australia, New Zealand, and South Africa. Two additional spots are expected to go to Japan and Fiji, bringing a fresh dynamic to the mix.
Teams will be split into two groups – one featuring European teams and the other, the rest of the world. Each team will play six fixtures, culminating in a grand final between the top sides from each group.
Matches will be played during the July and November test windows, offering a consistent structure that avoids clashes with other major events like the Rugby World Cup or the British & Irish Lions Tours. While fans wait for the tournament to begin, they can still enjoy exciting rugby fixtures this weekend.
A pathway for emerging nations
After heeding the calls from the rugby world, World Rugby will introduce a second-tier competition, the Challenger Series, which will run alongside the main tournament supporting the sport’s global growth.
This will feature 12 teams from Europe and other regions, such as Georgia, Portugal, Samoa, and the USA, with promotion and relegation set to kick off in 2030. The aim is to give developing rugby nations a chance to compete at the top level, ensuring the sport remains inclusive and more competitive.
Balancing tradition with innovation
While the new tournament looks to the future, traditional rivalries won’t be left behind. Rugby giants, New Zealand and South Africa are planning extended tours to keep their iconic rivalry alive. These tours will start in 2026, however, they may influence the structure of existing tournaments like The Rugby Championship.
The Bigger Picture
This competition is a step towards creating a more cohesive and sustainable international rugby calendar. By bringing in more meaningful matches and upping the stakes, it’s set to expand rugby’s global fanbase and keep the sport thriving. With heavyweights from across the rugby scene backing the idea and a clear focus on progress, this new chapter promises plenty of excitement, fresh opportunities, and a bright future for the game.
Aerial view of East London Industrial Development Zone (ELIDZ) Zone 1A. Credit: ELIDZ
De Beers is a storied name in the history of the growth of the South African economy. So it was a significant event when a major subsidiary, De Beers Sightholder Sales South Africa, relocated all its operations to Johannesburg in 2023. More specifically, to a building in Sky Park in Kempton Park: De Beers is supporting the initiatives of national and provincial government to promote economic growth via Special Economic Zones (SEZs).
The OR Tambo SEZ is located at the OR Tambo International Airport and has among its focus areas the consolidation of all companies operating in South Africa’s mineral beneficiation sector.
De Beers, which has two diamond mines in South Africa, is responsible for the sale of 90% of the world’s diamonds by value.
The National Department of Trade, Industry and Competition (dtic) is the lead agent in the creation of SEZs, which are part of the national Industrial Policy Action Plan (IPAP). SEZs are designed to attract investment, create jobs and boost exports.
Choosing where to position an SEZ is based on many considerations. As Maoto Molefane, Acting Deputy Director General of the Department of Trade, Industry and Competition (dtic) explains, “SEZs are established on the basis of the economic potential of a region. This could either be comparative or competitive advantages and the SEZ programme is used as a sweetener to attract foreign and domestic investors. SEZs are used to accelerate industrialisation through coordinated planning and the development of state-of-the-art infrastructure.”
Molefane believes that SEZs contribute to the attractiveness of SA as an investment destination: “By offering world-class infrastructure, fiscal incentives, a protected environment and an easy-to-navigate business environment using One Stop Shops, SEZs have directly contributed to the country’s attractiveness. The zones have 167 operational investors and almost half of these are FDIs.”
An updated approach to the development of SEZs advocates for integrated multi-use with improved living standards supported by industrial development, commercial spaces, tourism, better schools, entertainment, healthcare and recreational facilities.
National government also promotes investments through tax legislation. The SEZ Tax Incentive was introduced into the Income Tax Act to promote investment, growth and job creation in the South African manufacturing sector and the development of designated regions.
SEZ incentives enable businesses located at OR Tambo SEZ to reinvest their savings into areas like green technologies. Image credit: GGDA
The taxpayer must be a “qualifying company” to be able to qualify for this incentive. Qualifying companies can benefit from the following preferential benefits: a preferential corporate income tax rate of 15%; an accelerated depreciation allowance of 10% on cost of any new and unused buildings or improvement owned by the qualifying company.
Gauteng plans
In Gauteng, the Gauteng Growth and Development Agency (GGDA) is the driver of the SEZ programme, which will result in each of the province’s district or metropolitan municipalities hosting an SEZ. Each of those zones will emphasise the strengths of that area, so for example logistics is another OR Tambo speciality, given its proximity to the airport. The existing concentration of large manufacturing enterprises within the Ekurhuleni Metropolitan Municipality makes that sector another obvious target, with the Jewellery Manufacturing Precinct (JMP) a good example of that convergence.
The province’s SEZs are at different stages of development. The OR Tambo SEZ is a good example of advanced progress. Together with De Beers, a gold refinery has been established in the JMP, it has become the home of bodies such as the South African Diamonds and Precious Metals Regulator, Belgian company Pluczenik has launched its facilities and more than a dozen SMMEs are active in the precinct. The other component of Precinct 1 of the SEZ is devoted to fruit and vegetable processing of In2Food, which has on of the largest refrigeration plants in the world.
Phase 1 of the development of the Tshwane Automotive Special Economic Zone (TASEZ) was launched in November 2019 with Ford Motor Company’s operations at its core, and the SEZ has grown in stature ever since. Initial government investment of R3.9-billion has been more than matched by Ford and its suppliers.
Ford itself made a capital investment of R15.8-billion in pursuit of increased production while suppliers have invested more than R5.6-billion. This has led to 3 291 jobs being created within the zone, with more than 65% of the workforce sourced from surrounding townships. Of these jobs, 39% were filled by women and 59% by youth.
The AIDC manages the Automotive Supplier Park (ASP) in Rosslyn, Pretoria. Credit: GGDA
Three district municipalities across the south of Gauteng will host the Vaal Special Economic Zone (Vaal SEZ) which will have multiple sectors represented and be located at multiple sites. The area already has many industrial assets and infrastructure and is well served by transport routes.
Among the targeted sectors are agro-processing, logistics, the low-carbon economy, light manufacturing and the Blue Economy, which seeks to take advantage of the Vaal River. The GGDA has established a subsidiary to run the process of establishing the SEZ.
Plans for a West Rand SEZ are in place with three sectors being targeted: agro-processing, including new market facilities and exploring the growth of the cannabis sector; bus and automotive manufacturing linked to the existing plant of the Busmark company (the Chamdor Automotive Hub is already functioning); and renewable energy – a large solar plant is to be built by six contractors on land donated by mining company Sibanye-Stillwater.
The West Rand is well connected in terms of transport links via the N12 and N14 highways, it is near to Lanseria Airport and it has significant tourism assets, including the Magliesberg mountain range and the Cradle of Humankind.
The Tshwane Automotive Special Economic Zone has attracted multiple investors, which in turn has created hundreds of jobs. Credit: TASEZ
As South Africa faces the challenges of sustainable development, the mining sector must lead with responsibility. Dust-A-Side (DAS), a leader in dust control and erosion management, exemplifies this through robust Environmental, Social, and Governance (ESG) initiatives, creating lasting value while shaping a sustainable mining future.
Environmental: conservation through innovation
Water conservation
In arid mining regions, water conservation is essential. DAS’s dust-suppression technologies save millions of litres annually, reducing reliance on traditional water-intensive methods. In one project, DAS cut a client’s water usage by 90%, from 23-billion litres to just 662-million litres. This approach mitigates water scarcity while lowering costs.
Sustainable waste management
DAS follows strict environmental protocols, repurposing non-conforming materials and partnering with certified waste-management firms. With an Environmental Management System certification, DAS minimises environmental impact while enhancing operational efficiency.
Social: uplifting communities
Advancing women in mining
DAS actively promotes gender equity, with two women-owned franchises and female leadership across departments. This inclusivity drives innovation and improves company performance.
Education investments
Through its Ga-Tshaba Tlakana Primary School Upliftment Programme, DAS enhances learning environments with clean water, playgrounds and infrastructure. Additionally, it invests over R1-million annually in bursaries for students in engineering, healthcare and law, fostering South Africa’s future workforce.
Community infrastructure
DAS applies its road stabilisation expertise to improve rural connectivity, delivering projects across regions from Ghana to South Africa’s Northern Cape. Closer to home, DAS repaired potholes and provided water relief during Bethal’s water crisis, showcasing its dedication to community well-being.
Governance: integrity at the core
Strong governance underpins DAS’s ESG practices, with board-level oversight ensuring alignment with the highest standards of accountability. Policies on diversity, anti-corruption and stakeholder engagement ensure that DAS creates long-term value and positive societal impact.
Leading by example
Dust-A-Side demonstrates how mining can address societal and environmental challenges while driving progress. By conserving water, empowering women, investing in education and strengthening governance, DAS sets a standard for sustainable mining.
Contact
Menlyn Piazza 2nd Floor, Cnr Glen Manor and Louis Avenue, Menlyn, Pretoria, South Africa
Servicing: Africa, Australia, South America | Phone: +27 12 648 8900 | Fax: +27 12 665 3456 | Website: www.dustaside.com
The annual two-day Women & Leadership in Engineering, Infrastructure and Innovation Conference hosted by Pinpoint Stewards, with the aim to develop, unite and empower more women in these sectors will be returning for its 4th year on 12 & 13 March, in Johannesburg.
“The Department of Basic Education have reported that fewer students attempt the vital subjects relating to STEM fields and that this can impact the economic growth of SA. Combined with the dire statistics that only 13% of STEM graduates in South Africa are women it is clear that change is needed and fast,” says Sudhira Sewsunker, Owner, Pinpoint Stewards, a women-owned conference company who aims to profile more women in STEM and also elevate women and the impact they have and will be making on SA’s business growth projections.
The keynote address at the conference will be delivered by Tertuis Simmers, Provincial Minister of Infrastructure, Western Cape, who have also partnered with the conference in support of women and current opportunities available within infrastructure. Also adding his voice to the platform of speakers is MD, Transport and Greater Africa, Vishaal Lutchman from Zutari.
Some of this year’s speakers include:
Dr Gugu Moche
Dr Gugu Moche, Group Exec: Digital Transformation and Acting DCEO – Research, Innovation, Impact Support and Advancement (RIISA), National Research Foundation, who will be addressing, unconscious bias in the workplace that affect women’s career trajectory or leadership opportunities. Dr Moche’s accolades include serving in academic management positions both locally and internationally before joining the NRF. She obtained a PhD in Pure Mathematics from Howard University in Washington DC, focusing on Topological Semigroups, and is a member of the SA Mathematical Society as well as the American Mathematical Society.
Some of the academic positions she has held include lecturing in the Department of Mathematical Sciences in the College of Science, Engineering and Technology at the University of South Africa and the Departments of Electrical Engineering and Computer Science at Catholic University in Washington DC, etc.
Natasha Ramkirpal
Natasha Ramkirpal, Group Lead – Water Security Optimization, Coca Cola Beverages Africa, will focus on, building inclusive innovation ecosystems using the power of women in diverse teams. Natasha is an experienced sustainability leader with a visionary approach and an extensive background in process engineering within the beverage manufacturing sector.
In her 15+ years of hands-on industry experience she has combined strategic acumen, technical proficiency, and innovation management to enhance operational efficiency and sustainability efforts within her area, with proven expertise in optimizing manufacturing processes.
She is broadly skilled in developing water security strategies internationally and implementing advanced sustainability initiatives. She is currently leading this space for Coca-Beverages Africa navigating the challenges of water scarcity across 11 African nations. She is well qualified holding a BSc in Chemical Engineering, and MEng in technology and innovation management and a BCom in Management (supply chain focused). She has ambitions of completing a PhD in Technology and Innovation Management, focusing on integrating academic research to pioneer progressive industry practices.
She currently serves as an Exco board member for the Manufacturing Circle, by helping to drive sustainable practices within the manufacturing sector across South Africa.
Nosihle Dlamini
Nosihle Dlamini, Senior Manager, Toyota Motor Manufacturing South Africa, will tackle, imposter syndrome looking at women leaders trying to be all to ALL. Nosihle is a passionate, conscientious, and results-oriented leader with over 13 years’ experience in the manufacturing sector. She currently serves as VP of the TWIMS alumni Board.
She has received awards as a finalist for inclusive leadership and positive role model in 2023, part of the 2023 cohort of the KZN top businesswomen as well as in finalist in the 2024 Desmond and Leah Tutu foundation leading for humanity global program as Finalist on the 2024 Transunion rising star.
Celeste Le Roux
Celeste Le Roux, Founder & CEO, React Group, will deconstruct believing in your abilities and keep fostering self-confidence to make significant contributions to your career. Among Celeste’s accomplishments, she is a multiple ERWIC (Empowerment & Recognition of Woman in Construction) award winner of CIDB (Construction Industry Development Board) Standard Bank Top Woman Entrepreneur South Africa National Woman in Business.
Monique Schmidt
Monique Schmidt, Implementation Coordinator Engineering & Capex., ABinBev, will spotlight, building a strong support network by connecting with fellow female engineering innovators, mentors, & allies, and how to gain invaluable guidance and encouragement throughout your career path. Monique is the first female implementation coordinator for ABInBev Africa Zone. Over delivering volume by 20% on one of the key strategic priorities for ABInBev in 2024 and assisted in launching a Women in Engineering program.
Other speakers joining the panel include: Retang Sandra Maphothoma, Technologist-Highways, AECOM, Zandile Pule, Snr Manager: Asset Optimisation, Strategy and Systems Global, Goldfields and Nosihle Dlamini, Senior Manager, Toyota Motor Manufacturing South Africa.
Your support of the Women & Leadership in Engineering, Infrastructure and Innovation Conference indirectly supports young professionals. Pinpoint Stewards sponsors 20 post-graduate students to attend each year to find a mentor or job shadow opportunity at the two-day conference.
Priority registrations discounts apply before end January or host a table to show your support for women empowerment.
Crypto-assets without bank adoption and regulation could drive financial instability, market manipulation, illegal activities and financial crime, amongst others.
The biggest risk to take is to do nothing
If you are dealing with risk, anti-money laundering, compliance and regulation and want to improve your understanding of the impact of crypto currencies on financial institutions, then attending the Crypto Assets Regulation & Compliance Conference will prepare you to play a meaningful role in the adoption of crypto assets as a financial product.
The event featuring over 30 expert speakers on crypto regulation and compliance, is taking place on 12 & 13 March 2025 at the Indaba Hotel in Fourways, Johannesburg.
This 2 day conference, organised by Trade Conferences International, does not focus on the technical aspects of crypto, but rather highlights the opportunities, challenges and pitfall on the way to crypto asset adoption.
Some of the topics to be addressed
Overview of the fintech landscape in South Africa
Blockchain technology and the mainstream adoption of crypto currency
AML/CFT regulation of Crypto Assets – (covering the developments since 2014 – and where we are now)
Regulation of crypto assets in S.A
Risk & compliance framework for digital assets
Crypto compliance and AML toolbox – what is it… who is it for… and why do we need it?
Banking and financial regulation regarding crypto assets
Web3 banking – the next frontier in the financial technology industry
Crypto opportunity and threat to traditional banks
Impact of anti-money laundering on the crypto environment
Crypto crime investigations
CASE STUDY: The story behind the surge in crypto payments at Pick ‘n Pay
Impact of crypto on payments & exchange controls
Threats and opportunities for banks & financial institutions
Similarities in the regulation of hedge funds and digital assets, and what that means for retail and institutional adoption of alternative investments
Since its inception in 1994, the Investing in African Mining Indaba (Mining Indaba) conference has become a pivotal event for mining professionals, investors, and industry leaders looking to capitalise on the vast opportunities in Africa’s mining sector.
With a focus on fostering long-term economic growth and sustainability, the event serves as a premier meeting place for networking, deal-making, and discussions on topics such as technological advancements in mining, sustainable mining practices, and investment opportunities in African mining projects.
As the event continues to grow in size and influence, it remains a crucial platform for shaping the future of mining on the African continent.
As the most prestigious mining investment event on the continent, Mining Indaba attracts industry leaders, government officials, and investors looking to capitalise on Africa’s abundant mineral resources.
The event serves as a platform for showcasing innovation, fostering partnerships, and addressing the challenges facing the mining sector in Africa. Reserve your ticket now to be a part of this dynamic and influential gathering.
In today’s challenging financial landscape, employees and businesses alike face mounting pressures to manage finances effectively. iMasFinance is here to be more than just a financial services provider. As a proud member-owned Co-operative, we are committed to empowering employees of businesses across South Africa, driving financial wellness, and creating lasting value for our business partners.
The power of a Co-operative model
At iMasFinance, every member is not just a customer, they’re an owner. This Co-operative model is the cornerstone of our business. Instead of focusing on external shareholders, we prioritise delivering value back to our members. It’s a business structure designed to inspire trust, foster loyalty, and promote shared success.
When your employees become members of iMasFinance, they aren’t simply accessing financial solutions, they’re gaining ownership in a Co-operative that’s committed to their financial well-being.
Shared success through profit sharing
Success is sweeter when it’s shared. At iMasFinance, we allocate a portion of our annual profit to our members through profit sharing, directly rewarding their loyalty and participation. This not only strengthens your employees’ financial stability but also reinforces the spirit of shared value that defines our cooperative DNA.
The iMasRewards program is a unique, behaviour-based initiative designed to encourage and reward positive financial habits. iMasRewards focuses on inspiring members to take steps that enhance their financial wellness.
Whether it’s saving regularly, repaying loans responsibly, or engaging in financial wellness programs, our rewards system recognises and celebrates members who make sound financial decisions. This approach empowers employees to build sustainable financial habits that lead to long-term success.
Nationwide reach, local impact
With 28 branches nationwide, iMasFinance is wherever your employees need us to be. Our network and digital channels ensure that members have convenient access to our financial services, backed by personalised support and local expertise. No matter where they are, your employees can count on us to deliver meaningful solutions and support when they need it.
Financial wellness for a productive workforce
A financially secure employee is a more focused and productive team member. That’s why we offer comprehensive, tailored financial product solutions to support their unique needs:
Affordable credit (vehicle finance, personal loans, educational loans and pension-backed home loans to fund major life events.)
Comprehensive insurance solutions (Motor and household insurance, Business insurance, Group schemes and Funeral and Life cover for ultimate peace of mind.)
Savings and investment options to secure a prosperous future.
Onsite financial wellness programs designed to educate and empower.
Why partner with iMasFinance?
When you collaborate with iMasFinance, you’re partnering with a Co-operative that shares your commitment to employee well-being. We’re not just here to sell financial products—we’re here to build a brighter future for your workforce and, in turn, your business.
By choosing iMasFinance, you’re aligning with a partner that values ownership, promotes shared success, and prioritises financial wellness for all. Together, we can help your employees feel valued, empowered, and supported in their financial journeys.
Let’s build a financially secure future together
Join us in creating a stronger, healthier, and more resilient workforce. Visit www.imasfinance.co.za or contact us at 0861 043 627 to explore how we can bring the iMasFinance difference to your team.
Because when your employees thrive, so does your business.
Gain professional certified PV training aligned with national standards and access industry networks from day one, connecting you with installers, suppliers, and local solar experts to kickstart and grow your solar business with confidence.
5 CPD points and endorsed installation training under the PV GreenCard programme.
Ideal for:
Technically inclined solar newcomers
Electricians and electrical engineers
Installers seeking PV GreenCard certification
GREEN Solar Academy Cape Town 5 Days. R13 500 ex VAT.
President Cyril Ramaphosa remained president of South Africa after the elections of 29 May 2024, but only with the support of a coalition of 10 political parties which has been called a Government of National Unity (GNU).
Representing 70% of the voters who turned out for the election, the new government covers a wide spectrum of political standpoints and crucially contains parties that are committed to the country’s constitution and to the rule of law. In the National Assembly elections for the position of president, Ramaphosa received 86.5% of the votes of Members of Parliament.
The African National Congress (ANC), which was seen as the party of liberation and had been the governing party since the first democratic election of 1994, saw its vote share drop in 2024 to just over 40%, having garnered more than 57% in 2019. While the ANC historically has a socialist orientation, the largest other party in the coalition, the Democratic Alliance (DA), is inclined to argue for minimal government intervention in the economy. As the DA’s website states, “Government must always stand ready to help those who need it, but its primary function is to empower the people to make use of their freedoms, so that they may progress in their own lives.”
Marrying these two views on economics will present some difficulties if the government is to complete its five-year term but early signs are that the focus will be on fixing, maintaining and building infrastructure, the subject of a Special Feature in the 2025 edition of South African Business.
The spirit of cooperation which created the GNU has also been evident in the business community, where an initiative of many of the country’s chief executive officers is supporting state entities in tackling infrastructure problems.
There have been good signs of progress regarding electricity availability, port logjams being cleared and security improvements on important rail links.
Transnet Port Terminals (TPT) hired 200 additional cargo coordinators and port workers to support citrus exports in the 2024 reefer season. Citrus exports account for more than 50% of agricultural exports and contribute R43-billion to South Africa’s GDP. Volumes increased by 10% year-on-year for the first six weeks of the 2024/25 financial year, a year in which TPT will spend R3.9-billion on new equipment.
SME Launch
It is often said that the best engine for job creation is the small, medium and micro-enterprise (SMME) sector. However, the Chartered Institute for Business Accountants (CIBA) states that something like 70% of new businesses do not survive beyond two years.
In another example of diverse organisations working together for an economic goal, CIBA aims to change that metric by teaming up with the South African Chamber of Commerce and Industry (SACCI), the Companies and Intellectual Property Commission (CIPC) and the University of South Africa’s affiliate company, Inhlanyelo Hub.
The joint initiative is called SME Launch and will nurture startups, giving them advice in key areas such as compliance, market access and cash-flow management. As SACCI President Mtho Xulu says, “SME Launch is our way of adopting South Africa’s new businesses, helping them grow into sustainable, thriving contributors to the economy. This partnership ensures new businesses have the guidance they need to succeed, creating long-term value for both SMEs and the nation.”
The first offering of SME Launch was a free webinar, introducing the concept and explaining what is available on the platform.
Global stage
In 2023, South Africa hosted the BRICS Summit. As of 1 December 2024, South Africa will have the presidency of the G20, becoming the third BRICS nation in a row to hold that position after India and Brazil.
The G20 Summit to be held in 2025 will naturally give South Africa a chance to present itself to the world in the best possible light. The event will be held in Johannesburg in the province of Gauteng, the country’s most important economic hub. The city’s infrastructure will need a lot of sprucing up before 19 heads of state and the leaders of the AU and EU visit it. This presents another opportunity for government and business to cooperate for the greater good.
South Africa has burnished its reputation for hosting global events through the FIFA World Cup, the World Conference against Racism, COP17 and various other conferences that have been well run. South Africa has adopted as the theme for its G20 Presidency “Solidarity, Equality and Sustainable Development”.
South Africa on the global stage. When South Africa hosted the BRICS Summit in 2023 SACCI President Mtho Xulu, second right, chaired the Trade and Investment Working Group of the BRICS Business Council.
As President Ramaphosa told a G20 meeting under Brazil’s presidency that with just a short time before the deadline date of the UN 2030 Agenda for Sustainable Development, it would make sense to have a tight focus on the programme of Sustainable Development Goals (SDGs) in all of the years leading up to 2030. According to Ramaphosa, just 12% of SDGs are on target and progress on 50% is “weak and insufficient”.
Energy transformation
South Africa’s energy landscape is changing very quickly. Quite apart from the giant solar farms of the Northern Cape, pictured, and the massive wind turbines going up in the Western Cape and the Eastern Cape, the process of unbundling the national utility, Eskom, has begun. The new National Transmission Company of South Africa is a working entity and wheeling (the idea that an independent power producer can sell energy to a third party while using the national grid) is booming.
An interesting new development on the landscape, literally, of the Mpumalanga Province, is the addition of what will become South Africa’s biggest wind farm. Seriti Green is developing the Ummbila Emonyeni project to supply Seriti’s mines in the area, but the fact that Mpumalanga has several coal-fired power plants that are going to be decommissioned means that there will be spare grid access for renewable producers. The coal plant closures have been pushed back in some cases, but they will close and when they do, the connections they have to the grid will be gold dust.
Giant renewable projects are redefining South Africa’s energy landscape. The 100MW Redstone Solar Thermal Power Project features molten-salt-energy-storage technology in a tower configuration. Credit: SR Energy
The conversation about the global climate crisis has seized the limelight across the world in a way that few other topics have since World War II. The debate in South Africa has its own unique contours, particularly as about 80% of the country’s electricity generation comes from coal. The fact that many people would lose their jobs if coal mines close down is an important factor in calculations, and a key reason why South Africa is at the forefront about the need for a “Just Energy Transition”.
An excellent programme exists to procure the energy that South Africa needs to expand the economy, the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP). In Round Five of the REIPPPP, the cheapest solar generation cost was 37.5c/kWh while the best wind cost was 34.4c/kWh. These represent remarkably low costs.
Following the announcement by the City of Cape Town that residents could get cash for power in late 2022, Versofy Solar received 1 500 enquiries in the month of January and has experienced a surge of orders for rooftop installations since then.
The R130-billion pledged at COP26 by the EU, the US, Germany, France and the UK to assist South Africa’s transition from oil and coal to greener technologies is not straightforward; it comes as a mixture of grants, risk-sharing instruments and concessional finance but it will allow South Africa to fund projects that will help the country to move away from fossil fuels without further stretching Eskom’s precarious finances.
Eskom made a breakthrough in December 2022 when South Korean company Hyonsung Heavy Industries broke ground, signalling the first project in Eskom’s Battery Energy Storage System (BESS) project. The 8MW facility will move to producing an additional 144MW in the second stage of the project. In 2023, a larger project at Worcester, Hex BESS, was launched. Another company that will be involved in Phase 1 of the national rollout of these projects is Chinese company Pinggao.
In Cape Town a Swedish firm has spent $30-million setting up an assembly factory for lithium batteries and Bushveld Energy, a subsidiary of Bushveld Minerals, is producing vanadium battery electrolyte at its factory in East London.
As our seventh administration executive settles into their portfolios, we must remember the hand-in-glove relationship they need to forge in working within and supporting the local government sphere in South Africa.
The national and provincial governments have the challenging task, as required by the Constitution, of supporting approximately 257 municipalities across the country in meeting their mandates.
The current state of the local government sector in South Africa can be characterised as being in a state of crisis. This not only threatens the delivery of essential services but also puts the very fabric of local governance at risk.
The financial health of municipalities remains a critical concern that requires immediate and comprehensive reform to prevent further deterioration and to foster sustainable development at the local level.
Municipalities in South Africa face significant financial challenges due to systemic inefficiencies, maladministration and insufficient revenue generation.
The 2023 Auditor-General’s report revealed mixed performances in the local government sector. It found that 33 municipalities had better audit outcomes than in previous financial years, while 29 had worse outcomes. The report also indicated that many municipalities were in financial distress and unable to meet their obligations.
Consequently, some municipalities had experienced waves of service delivery protests, leading to a gradual erosion of public trust in this vital sector of our democratic government.
One of the main challenges facing municipalities is the insufficient revenue base to sustain their operations. A significant factor contributing to this is the poor collection of local taxes and service fees, often due to inefficiencies and a culture of non-payment among residents.
Compounding this issue is the widespread problem of poor billing systems across municipalities and a lack of enforcement mechanisms to ensure that residents, businesses and state agencies pay their debts.
Local governments rely heavily on grants from the national government, but these grants often do not cover all their expenses, resulting in some vital expenditure items being unfunded mandates. This creates a vicious cycle where municipalities lack the funds to improve services, leading to further non-payment and financial strain.
Skills shortage
Another critical issue is the need for more capacity within municipalities. Many local governments suffer from a shortage of skilled personnel, particularly in financial management and planning. This hampers their ability to manage their finances effectively and develop sound economic strategies to support sustainability.
One solution to this problem involves implementing targeted training programmes for local practitioners and councillors. Municipalities must attract skilled professionals to the local government sector to improve financial management.
The seventh administration’s support of the local government sector remains urgent and challenging. The priority involves numerous interventions to improve the revenue collection mechanisms of our municipalities by modernising billing systems, enhancing enforcement measures against defaulting payers and promoting a culture of payment.
Innovative approaches, such as leveraging technology for better tracking and collection of fees, will undoubtedly play a significant role in addressing this revenue collection challenge.
The second critical intervention for the administration should be implementing strong measures to reduce maladministration in our municipalities. This should include increasing transparency and accountability in governance and ensuring inclusive practices in municipal planning and the delivery of essential services to citizens.
It should also involve strengthening the oversight functions of the national and provincial government on the business of local government. At a local level, augmenting support for oversight institutions undoubtedly also involves the empowerment of council oversight bodies such as the municipal public accounts committees in enforcing accountability in how public monies are spent.
Training
The third intervention is to invest in capacity-building mediations that involve training programmes and mentorship networks involving local and international actors, as well as all-of-society partnerships with the private sector and civil society groups that are equally vested in the success of municipal service delivery.
These interventions must equip municipal leaders and officials with the necessary skills to effectively dispatch their duties while empowering the public to understand their rights and recourse in holding their local government accountable without resorting to service delivery protests.
Last, an in-depth review of the local government fiscal framework is needed to ensure that municipalities receive adequate funding to maintain existing infrastructure and build new infrastructure commensurate with their population growth.
Credit: Ingo Stiller, Unsplash
The financial health of municipalities in South Africa is a linchpin for the overall development and stability of the country. Addressing the deep-seated issues plaguing municipal finance is not only essential for improving service delivery and infrastructure, but also for restoring public trust in local governance and, indeed, our democracy itself.
Through enhanced revenue collection, strengthened governance, capacity building and reforms in fiscal relations, South Africa can steer its municipalities towards a path of financial sustainability and effective service delivery.
The success of local government depends on adequate attention and support from the national and provincial governments.
*Lwazi Sikiti is the Policy Research and Advocacy Manager at the South African Cities Network.
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
Cookie
Duration
Description
cookielawinfo-checkbox-analytics
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional
11 months
The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy
11 months
The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Consequently, some municipalities had experienced waves of service delivery protests, leading to a gradual erosion of public trust in this vital sector of our democratic government.
