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Supplier MatchUp – a remedy for SMMEs during the COVID-19 crisis

Small businesses are a critical driver in boosting the South African economy. Smart Procurement’s Supplier MatchUp Sessions recognise this with an initiative geared to link suppliers to buyers. It has been an ongoing feature of the Enterprise and Supplier Development (ESD) Expo for many years and, for the first time, the event was hosted online in May 2020.

“We simply cannot let COVID-19 and the lockdown bring us to our knees, so the Supplier MatchUp sessions are vital in encouraging a dialogue between small businesses and large organisations. They give corporate buyers an opportunity to address suppliers and provide them with important information on how to become a supplier to their organisation,” says Jodi-Lee Rood, Project Director for Smart Procurement, the organisers of the event.

The inaugural online event presented over 40 SMMEs with the opportunity to engage in a Q&A session with big-business buyers.

The supply chain and procurement category managers from PPECB, Pick ‘n Pay, University of Cape Town, Distell and BP covered issues like supplier registration processes, the types of commodities that these businesses are currently looking for (where the opportunities lie for SMMEs),  as well as supplying SMMEs with the details of key Category Managers within their organisations.

All SMMEs who attended the sessions were registered on Smart Procurement World’s SmartXchange platform, a value-add-linkage platform for all Smart Procurement World event attendees.  The platform allows for big business buyers and SMMEs to create an online profile for all-year-round meetings and networking.

Testimonials from SMMEs who attended:

“This was super awesome! We can’t thank you enough and sincerely hope that you plan to arrange more of these. Please don’t stop. You have no idea what a difficulty it is to access potential clients at the right level and this is one of the best initiatives that I have encountered for this year. Thank you very much.” ~ Nisha Maharaj,  Niche Integrated

“Thank you very much for this one-of-a-kind opportunity.” ~ Dipitseng Manamela, Dihlashana Group

“This was a great opportunity to engage with buyers. I attended all the meetings and they were all insightful.” ~ Jabulani Mahlangu Inkwa Investments

“The #LocalIsLoyal Pledge initiative was also launched at the event. This is a movement for procurement and supply chain professionals to pledge their support and commitment to local businesses. We encourage local businesses to get involved by visiting the SmartXchange website – www.smartxchange.org.za,” says Rood.

For more information on the upcoming series of Smart Procurement World events for 2020 please visit www.smartprocurementworld.com

Smart Procurement World’s first online conference a great success

In reaction to the lockdown in South Africa, Smart Procurement World managed the incredible feat of producing the first-ever online Smart Procurement World regional event, in less than two months.

The conference was aimed at bringing critical information on the procurement and supply chain sectors to a variety of private and public sector delegates, as well as representatives from local SMMEs and other neighbouring countries such as Kenya and Tanzania. Held on 19 and 20 May, the event attracted over 160 delegates and was deemed a resounding success by all stakeholders, delegates and sponsors.

Debbie Tagg (COO of event organisers Smart Procurement) said that the keynote address by Andy Potter (Business Development Director, EMEA, Ansarada) – ‘Fixing the Future of Procurement’ – was a clear reinforcement of the key messages for professionals at this time. “Procurement needs to innovate and take advantage of technology to face the rapid change of pace in business, now more than ever. The fact is that good organisations not only need talented people but also ‘smart’ tools to be more productive and to get better results.”

The event, which welcomed Oracle as a Strategic Partner, provided a wealth of information for the delegates through a number of thought-provoking presentations from international and local (South African) speakers.

Dennis Mlambo, a Former Group Supply Chain Exec at Denel gave an insightful and engaging presentation about being a Future Thinker and the way forward for SOEs and how they can perform better.

Rob Van Den Wijngaard, Director of the Financial Shared Services Centre at Leiden University, joined from the Netherlands. He talked about shifting the dial in procurement and redesigning procurement processes to be more end-to-end. “We have seen a shift in procurement over the years and one needs to create a guiding vision and goal plan of where you are now as an organisation and where you want to be. Customer-orientated digital transformation, the optimisation of operations and service delivery, all need to be updated to the new way of working,” Rob Van den Wijngaard.

Barloworld’s Sydney Tshibubudze shared COVID-19 business resilience intervention tactics, that addressed cutting costs and managing cash flow, as well as reducing supplier risks.

Smart Procurement’s online platform was also able to facilitate interactive panel and breakaways sessions with robust discussion. These included a range of topics targeted at niche procurement sectors, allowing for discussion time and a huge amount of engagement.

The programme covered everything from Enhancing the Impact of Procurement on Job Creation, Investing in Cloud Solutions and Re-skilling, to Collaborating with partners and even competitors to overcome challenges. Technology could not be overlooked in the COVID-19 crisis, the Technology Zone Panel Discussion was very insightful and demonstrated how different organisations are maximising procurement during this time to mitigate risk. What was highlighted, is that the public sector in South Africa has a lot of work to do to catch up in this area, but there are initiatives underway to do so.

“As the nation went into the lockdown and our economy essentially ground to a halt, the City of Cape Town has been hard at work responding to this crisis. Our focus is on supporting SMMEs, ensuring business retention and even expansion, by taking advantage of the opportunities every crisis presents. By working together, and by supporting SMMEs through initiatives like the Smart Procurement programme we can find ways through this crisis,” said Alderman James Vos, Mayoral Committee Member, City of Cape Town.

For more information on the upcoming series of Smart Procurement World events for 2020 please visit the website at www.smartprocurementworld.com

Manufacturing Matters: What is the future for manufacturing?

Johannesburg, 1 June 2020; Covid-19 is accelerating and reshaping South African and African manufacturing. It’s compounding existing challenges while simultaneously eradicating established practices, subsequently altering the manufacturing world as we know it.

Looking into the future of manufacturing, is an aspect many manufacturing CEOs will be actively exploring, and requires new approaches and new forms of collaboration to increase overall resilience.

In the uncertain world we are currently living in, all businesses want to look into the ‘crystal ball’ to find out, what now, where to next and what will be the impact on business. Unfortunately, no one can rightly predict the future, but a change in thought processes to begin to think like futurists and create strategies to ensure that businesses have more robust plans is vital to overcome the impact of Covid-19.

A 3-part web-series is currently underway hosted by the Manufacturing Indaba and Futureworld. They comprise thought-provoking and progressive sessions that are set to educate and inspire African industrialists to transition from a state of panic and crisis control, to identifying and capitalising on latent, yet consequential opportunities that have the propensity to take manufacturing businesses to unprecedented levels.

The upcoming and second webinar to be hosted will feature:

> Part 2: Future of Manufacturing:

From global to local, closer alignment of value chains, augmenting with tech (IOT, 3d Printing, 4IR, etc), decentralization and new demand.

11h00 – 12h00  :  5 June 2020

> Part 3: How to lead in times of uncertainty:

The human elements of leadership, acting on imperfect information, confronting biases and ensuring we value humanness.

11h00 – 12h00 : 12 June 2020

The 3-part series is live and Part 2 specifically speaks to supporting a change of thinking and to look at the future. Remember the Future is a matter of choice, not chance, so please do join us.

For more information and how to register, go to: https://manufacturingindaba.co.za/webinar/ or chat to us on info@manufacturingindaba.co.za

Top 20 default municipal debt is regretted

The Chartered Institute of Government Finance, Audit and Risk Officers (CIGFARO) continues to support the Public Sector in their endeavours to respond to the COVID-19 pandemic.

The COVID-19 crisis has highlighted electricity tariffs. Andre De Ruyter, Eskom Chief Executive, said: “Eskom sold 46% of its electricity to municipalities, which was then sold to consumers, with mark ups which are as high as 10% to 18%, creating an impression that electricity tariffs were too high.” He further highlighted that 20 municipalities owed Eskom more than R26-billion.

What was not disclosed to the reader is the level of cross subsidisation between municipal customers and Eskom customers and the diverse tariffs charged to municipalities by Eskom. What is also omitted and needs scrutiny is the reluctance of Eskom, as the service provider of a municipal service, to work with Municipalities to collect outstanding Municipal debt in terms of a Service Delivery Agreement.

The reduction in electricity demand over the eight weeks of the National Lockdown, has enabled Eskom to address urgent repairs to address capacity issues.

CIGFARO aims to further the interests of Practitioners in the Financial and related areas by advising institutions, commissions and other bodies and persons on some of the facts at hand. Certainly, the debt by Municipalities is regretted. However, the responsibility and commitment of Eskom to assist Municipalities is imperative in order to ensure every person who can afford to pay are paying for the full basket of municipal services with such payment including the payment of Municipal taxes.

The revenue collection processes by municipalities are complex and, in some instances, very emotional and cumbersome. Rates is the main source of revenue for general municipal expenditure. Utility income is for funding the utility service itself and the related aspects of keeping an efficient service in place. It has proven to be very difficult to collect revenues where the only collection method is rates because of rights enshrined in the Constitution in the Bill of Rights.

The best methodology, acknowledged by National Treasury in the Inter-Ministerial Task Team on Revenue, is the suspension of electricity or the use of electricity provision as a credit control method to collect outstanding debt.

The reluctance of Eskom to comply with National legislation through the signing of Service Level Agreements with municipalities where Eskom is the electricity supplier, either in whole or in part, was raised by the South African Local Government Association (SALGA) in parliament. Even at that level it has not resulted in any positive outcome. Municipalities will be in a better financial position if Eskom complies with section 81 of the Local Government Municipal Systems Act, 32 of 2000, as amended, by signing the required Service Delivery Agreement (SDA) as envisaged.

President of CIGFARO says, “We are always willing to engage stakeholders and work together in building better lives for all.” It is also imperative to ensure that all organs of state work together to ensure a better life for all.

For more information visit the website at: www.cigfaro.co.za – Media Room

Welcoming Alert Level 3 and opening of the construction sector to save jobs

Media release by David Maynier, Western Cape Minister of Finance and Economic Opportunities

We welcome the announcement by President Cyril Ramaphosa last night that the whole of South Africa will be moving to Alert Level 3 from 1 June 2020, and that all economic activity will resume except for certain sectors.

Minister David Maynier

We are particularly glad to hear that the construction sector will be allowed to resume activity under Alert Level 3 as this is critical to saving jobs and the economy in the Western Cape. This sector is already under enormous strain and an estimated 100,000 direct and indirect jobs could be lost due to the impact of Covid-19. And so, we will be working closely with the sector to help them implement the necessary health and safety measures on construction sites ahead of Alert Level 3.

More details on which sectors will not be allowed to open are likely to be confirmed with the release of the Alert Level 3 regulations by the Minister of Cooperative Governance and Traditional affairs, Nkosazana Dlamini-Zuma. As we have with the Alert Level 4 regulations, and in particular for the e-commerce and construction sectors, where we think that further consideration can be made for these sectors to safely open we will make further submissions to national government to do so.

We remain concerned about the tourism sector which is a major contributor to jobs and the economy in the Western Cape, and at present is only looking likely to open under Alert Level 2. This sector has already been hard-hit and could cost the Western Cape around 104 504 direct and indirect jobs in 2020. And so, where we think there are opportunities for tourism to open up safely and responsibly under Alert Level 3 we will request that national government allow this.

We firmly believe that if done responsibly, the economy in the Western Cape can open up while preventing the spread of Covid-19, and we are committed to supporting businesses through this crisis.

To avoid a return to a hard lockdown, it is imperative that every business that is operating now, or which opens under the new alert level, plays by the rules, and implements the necessary health and safety measures as instructed by national government to avoid further negative impacts on their respective sector.

It is just as important that every person returning to the workplace always adheres to the safety guidelines that are put in place by their employer, even when taking a break in a communal area.

If any employee feels that their employer is not following the health guidelines in place to stop the spread of Covid-19, they can report it using this online form: coronavirus.westerncape.gov.za/covid-19-business-safety-complaint-form

Every employer and employee has a responsibility to ensure that our economy stays open in the Western Cape. We all need to stay safe in order to save jobs.

We will all have to pull together, and we will all have to work together, in the coming days, and weeks, and months because, in the end, it is up to all of us to stop the spread of Covid-19 in the Western Cape.

South Africa Update from the DMRE

On 18 May 2020, South Africa’s Chief Inspector of Mines, David Msiza, with the Department of Mineral Resources and Energy issued guidelines for employers to prepare and implement codes of practice to mitigate and manage the effect of the COVID-19 outbreak on the health and safety of employees and persons in the South African Mining Industry.

The Guideline was issued following an order handed down by the Labour Court on 1 May 2020, in accordance with Section 9 of the Mine Health and Safety Act of 1996. It directs the Chief Inspector of Mines, in consultation with the Mine Health and Safety Council, to develop the Guideline for employers in the mining. The Guideline applies to all mines or parts thereof, employees and contract employees in the South African mining industry that might be exposed to COVID-19 in the performance of their duties.

Legal status of Guideline and COP

The employer is obliged in terms of section 9 (2) of the Mine Health and Safety Act to prepare and implement a COP addressing the COVID-19 viral pandemic. The COP must comply with the Guideline and any instructions issued by the Chief Inspector of Mines in terms of section 9(3) of the MHSA, including relevant regulations and guidelines issued under the Disaster Management Act.

The COP may be used in an investigation to ascertain compliance and to establish whether the COP is effective and fit for purpose. Failure by the employer to prepare or implement a COP in compliance with the Guideline will constitute a criminal offence and a breach of the MHSA.

Preparation of COP

The employer is required to consult with the mine’s health and safety committee and any other affected parties on the preparation, implementation or revision of any COP in terms of Section 9(4) of the MHSA.

Following this consultation process, the Guidelines recommend that the employer appoint a steering committee comprised of competent persons to effectively draft the COP.

Prescribed contents of COP

The Guideline sets out the structure that the COP must follow and the minimum required contents. The following key elements must be addressed in the COP:

  • Risk assessment and review
  • Start-up and on-going procedure for mines
  • COVID-19 management programme
  • Monitoring and reporting
  • Compensation for occupationally acquired COVID-19

The Guideline provides detailed directions on the various issues that each of these elements must address. We highlight some of these directions below.

Risk Assessment

The Guideline requires employers to conduct a risk-based assessment covering all workings at mines. At a minimum, the risk assessment must consider the following:

  • All sources of SARS-CoV-2 infection transmission and the health effects associated with exposure to SARS-CoV-2
  • The nature of the key workplace operations and activities that pose potential risk of SARS-CoV-2 transmission, occupations and the number of employees who are likely to be exposed to and spread SARS-CoV-2
  • The mine’s essential occupations or critical skills that might be impacted by SARS CoV-2 transmission
  • The risk of employees vulnerable to SARS-CoV-2 while at work
  • The control measures in place
  • The de-densification of employees on transport modes and other spaces
  • The additional control measures required to be instituted in order to reduce exposure and the spread of SARS-CoV-2
  • The frequency of any ongoing monitoring to assess the effectiveness of the implemented controls

The mine’s risk assessment methodology must take cognisance of the WHO classification of the risk of SARS-CoV-2 infection into four risk groups set out in the Guideline. These risk groups are classified according to the nature and extent of contact with other people and the general public when working.

Start Up Procedure

Employers must establish a precautionary start-up procedure aligned with the Instruction issued by the Chief Inspector of Mines on the 20 April 2020.

The start-up procedure must include the routine cleaning or disinfection or industrial sanitising of surfaces that employees come into contact with and as determined by the mine’s risk assessment, screening and testing procedures, withdrawal procedures to be used by the mine in the event of a localised COVID-19 outbreak and measures to collaborate with the Department of Health for the prevention and management of COVID-19 for migrant workers at ports of entry.

Mitigation and Management Programme

Employers must develop a policy or integrate COVID-19 management of suspected and positive cases into the mine’s existing policies, COP and standard operating procedures for health and safety.

Employers must ensure that employees returning from areas which are regarded as epicentres of COVID-19 are quarantined for 14 days before they return to work.

For employees presenting signs or symptoms of COVID-19, the mine’s COP and procedure must include: a dedicated 24-hour hotline to reach the mine’s healthcare workers or contracted healthcare services; a procedure to report when an employee is sick or experiencing symptoms of COVID-19; how, where and the duration of isolation will take place for employees suspected of being infected with COVID-19; and the site where employees with suspected COVID-19 infection will be screened, diagnosed and treated.

In developing the COP, an employer must consider the training to be provided to employees. The training must include information regarding proper hygiene practices and the use of workplace controls, the Prevention of COVID-19 stigma, the process employees will use to disclose any pre-existing conditions prior to returning to work and the COVID-19 National Hotlines.

Employers must, as far as possible, with employees’ consent and respecting medical confidentiality, be informed through the designated healthcare worker if any employees have pre-existing conditions that make them more susceptible to severe COVID-19. Such employees must only be permitted to work after receiving a certificate of fitness to work from an occupational medical practitioner. If an employee is not permitted to work due to a confirmed pre-existing condition, the employer must arrange for transportation of such employee back to their homes.

Obligations prior to and upon arrival of employees at the mine’s premises

The Guidelines set out detailed information regarding the preparations an employer must undertake before and when employees return to the mine’s premises. These preparations include developing a procedure for the management of the return to work of employees after the lockdown and encompassing the history of COVID-19 in employees’ areas of residence during the lockdown through a questionnaire.

The employer must utilise a risk-based method and a staggered approach to prioritise the return to work of employees. Employers must implement a return to work medical which must include the completion of a questionnaire and the taking of vital signs such as temperature, blood pressure, and glucose assessment for known diabetics.

Employers must establish a procedure for the daily screening of all persons entering and exiting the mine and ensuring that they comply with protective measures while on site. Anyone who fails screening must be denied access and advised to seek medical assistance. The Employer must ensure the availability of medical resources, personnel, equipment, PPE, cleaning and disinfection services, the flu vaccination and prophylaxis for vulnerable employees. Employers must apply de-densification and physical distancing of 1-2 metres and provide the relevant PPE for mass transport and at areas of the mine where close contact may occur.

To classify the risk for the purpose of providing appropriate PPE, each mine must consider the risk classification groups for each job as set out in the Guideline as well as the mine’s specific circumstances within the context of what is reasonably practicable.

Monitoring and Reporting

An employer must appoint a COVID-19 Compliance Officer to provide oversight on the implementation of the Guideline. Each mine must submit a monthly report to the Principal Inspector of Mines.

Access to the Code of Practice and Related Documents

The employer must ensure that the COP and related documents are kept readily available at the mine for examination by any affected person and a copy is provided to a registered trade union with members at the mine or health and safety representatives.

The Guideline sets out comprehensive (and often complex) duties to be addressed by employers in their mandatory COP’s. The Guideline will become effective on 25 May 2020. Employers are therefore advised to immediately commence with the necessary preparations.

The Minerals Council of South Africa has commented: “The guidelines are largely compatible with the Minerals Council’s Standard Operating Procedure and the version of the SOP used as the interim basis of regulation since the judgment. The Minerals Council believes the industry will be comfortable about observance of the guidelines.”

Download the DMRE Guidelines for Code of Practice here.

Nedbank launches a tech-based solution that revolutionises the way South Africans shop and sell

Source: https://web.facebook.com/Nedbank/

19 May 2020 – “Today’s banks have an opportunity and a responsibility, to do far more for their customers than merely provide financial services. Platform ecosystems are the perfect way for them to deliver these comprehensive value propositions that their customers deserve,” says Ciko Thomas, Managing Executive: Retail and Business Banking at Nedbank.

Nedbank’s move to become a ‘digital-first’ financial services provider led to the successful launch of the Nedbank API Marketplace, a first-in-Africa platform aligned to open banking standards which  creates opportunities to disrupt the traditional approach to banking and financial services while laying the groundwork for a truly client-centred, market-orientated and innovation-driven future in the digital world.

“Introducing Avo, the Super App by Nedbank. Created to bring customers and businesses together, accurately matching customer’s lifestyle needs to product and service offerings through powerful artificial intelligence, safe and secure payments, and bank-grade security.” – Fred Swanepoel, Chief Information Officer of Nedbank.

The term “Super App” refers to a multitude of apps aggregated into one. This means that customers and businesses can manage their daily lives through one app, breaking through the digital clutter on mobile. As Nedbank continues to test the market, they have filed eight provisional patents relating to the Avo platform – a great feat for platform innovation in Africa.

Due to the launch to 30 000 staff members in the midst of the COVID-19 National Lockdown, Nedbank was driven to reposition the Super App’s offering to not only be level-5-compliant but create a trusted lockdown companion for their staff.

Our plans had to pivot from a physical-activation-led launch, to a purely digital and essential-needs-based approach.

The beta version of Avo has been delivering essential goods, providing home entertainment and connecting home service providers across provinces. These are just a few of Avo’s proudest feats as we move into the next stage of the launch plan.

To date, Avo has reached the milestone of over 5 000 customers registered and 170 registered Home Repair and Services merchants. With requests flying in daily, Avo may just be the platform small businesses need to survive during the National Lockdown period.

What’s next for Avo?

The Avo beta release to Nedbank Money App users has begun. This will see the phased release of Avo to Nedbank clients, to allow for further enhancements before full public launch. The beta will allow Nedbank Money App users to use a two-click process to sign up seamlessly onto Avo, and allow this Super App to empower the way they do life.

“For us at Nedbank, that capacity to add massive value to every aspect of a person’s life or business is what makes a platform ecosystem really worthwhile,” Thomas concludes, “and this new digital engagement platform is a massive next step for us on this journey to be more than a bank, but rather through leveraging our digital leadership to be a creator, facilitator and enabler of real and lasting value.”

Feedback requested on your experience in applying for business support programmes

The Covid-19 pandemic and associated lockdown measures are placing an enormous strain on our economy and on our business community. In a bid to provide a degree of economic relieve, national government launched a suite of business support programmes, targeting various sectors and segments of the economy (please see the list below).

For those who have submitted an application (or a few), we would like to hear from you about your experience in submitting the application.

Below you will find a list of 10 business support programmes, along with links to a feedback survey for each programme on the list. If you have made an application to one or more of the programmes listed below, please would you be so kind as to complete the survey/s for those respective programmes.

Your feedback will be invaluable in helping us identify and sort out any issues.

These links will remain active until Friday, 22nd May 2020 – however we encourage your completion as soon as is possible.

C19 Business Support Feedback Surveys:

  1. UIF-Temporary Employee / Employer Relief Scheme (TERS) 
  2. Black Business Funding Solutions
  3. Agriculture Disaster Support
  4. Manufacturing Competitiveness Enhancement Program
  5. Business Growth and Resilience
  6. Industrial Development Corporation
  7. SMME Debt Relief
  8. Tourism Relief
  9. Spazashops and General Dealers Support Scheme
  10. Youth Micro Enterprise Relief Fund

 

Property Rates Petition – OUTA

The current economic situation which the country is experiencing is not only impacting on private households and or businesses, but it also has a direct impact on government and especially local government.

There are 3 types of Municipalities established in terms of the Constitution: category A (metropolitan municipalities), B (local municipalities) and C (district municipalities). Approximately 80% of Revenue generated by category A and B municipalities are from ‘own sources’ meaning this income is generated from local economies.

Any impact on the local economy will have a direct impact on the ability of the Municipality to generate the required revenue to fund services to the local communities. According to the second quarter financial information released by National Treasury, local government and specifically Metropolitan municipalities and secondary cities and towns are in dire need of revenue to fund services. At the end of this period (31 December 2019) there were already signs of financial distress.

Any pressure to reduce taxes in the local government sphere will have a further impact on the ability of Local Government to deliver non-tariff funded services. This same sphere is, to a large extent, also required to put in place processes and procedures required to minimise the spread of the Corona Virus Disease. This is an unfunded task that has been thrust on the local government sphere and which should be funded (or refunded) from the National Disaster Management Fund.

When an organization like OUTA canvasses support for an initiative to reduce property taxes, cognisance must be taken of the consequential reduction in the level of services that the municipality can provide. Reductions in income will also have an impact on the staff complement and, potentially, retrenchment could be imminent, further reducing the level of services provided.

The local government sphere, and CIGFARO in particular, have an appreciation for the difficulty suffered by property owners to keep their commitments up to date. However, as a sphere of government, municipalities have an obligation to collect all their revenue which is due and must abide by national legislation. Current legislation requires that all revenue must be collected, and any reductions, rebates or exemptions must be in accordance with approved Policies, accounted for in the municipal budget as income foregone where necessary and can only be allowed taking into consideration the sustainability of the Municipality.

CIGFARO is therefore highly concerned about this initiative to further reduce the revenues of Municipalities and the potential severe consequences to local communities. CIGFARO calls OUTA to engage with CIGFARO on this matter, together with COGTA, the National Government Department responsible for the Municipal Property Rates Act legislation quoted in the OUTA petition.

COGTA is also the custodian of the Disaster Management legislation and can advise on the Municipal Disaster Relief Grant that has been made available and the items that it is funding related to the national COVID-19 disaster declared.

For more information, contact CIGFARO: www.cigfaro.co.za

Engineering the future responsibly

There is a direct link between the stability of an economy and ongoing development—and currently the local construction and property industries are undeniably experiencing a lull due to reduced expenditure by government on large-scale infrastructure projects as well as uncertainty in the private sector investment markets.

In fact, findings in a survey from Timetric highlight that growth in the industry forecasted between 2017 and 2021 is expected to be more moderate than the review period for 2012 to 2016. However, there is room for optimism.

Despite the current economic climate – linked to fluctuations in global markets and further exacerbated by policy changes and political uncertainty locally – there are domestic and international investors and developers who continue to forge ahead with projects across South Africa, as they see the great potential and value here. Furthermore, building for sustainability has become the main driver for most investors and developers.

We expect this trend to continue well into the future as government, businesses and citizens, grow increasingly socially conscious to the importance of resilience and the need to safeguard and manage critical resources in a more sustainable fashion.

For instance, each time the country has intermittently experienced load shedding – and particularly since 2008 – this continues to increase social awareness on the importance of secure power, and sparks interest among developers to investigate solar-powered rooftop or onsite solutions that could self-power their buildings in the event of grid power interruptions.

Likewise, the water shortages – and water restrictions as a result – that many areas across the country have faced in the last 24 months have created a sense of urgency to look at more efficient water management solutions within buildings. This has also opened up opportunities to capture and use rainwater, or to safely recycle and reuse grey water, to meet their essential operational and living needs.

Johan Piekaar, Regional Director, WSP, Structures, Africa

It’s no surprise then, that this rising social consciousness, coupled with continuous and growing pressure being placed on the “built” space to address inadequate energy resources, carbon reduction targets and tightening building energy efficiency standards continues to drive sustainable building trends in South Africa. In fact, building for sustainability and climate change mitigation has become integral in the design and construction of buildings in the country.

The philosophy of building for sustainability is being led by responsible engineering (do what we can without costing too much – show return on investment value) and responsible building (driving this through the supply/value chain). Volatility in both the cost and availability of power and water resource, for example, is influencing a mindset change.

Added to this, if we look at the whole lifecycle design of a building; architects, consulting engineers and sustainability consultant teams are constantly coming up with alternative and environmentally suitable building, designs to offset the impact of the building on its immediate environment.

The philosophy of building for sustainability is being led by responsible engineering and responsible building.

Therefore, in the long term, not only are sustainable building design adoptions financially beneficial due to reduced energy consumption, but the use of renewable and more sustainable energy resources also has the propensity to reduce the carbon emissions associated to these buildings and provide increased resilience to uncertain service delivery.

These are all significant value adds to the customer/tenant – and what benefits the customer also benefits the developer/owner – as savvier customers are also realising the benefits of being more “green” and offsetting as much of their energy and water consumption as possible given the many benefits of doing so.

The rising social consciousness agenda is having a significant influence on the economic case for developments to be built for sustainability, which can then assist in increasing their marketability. What is then key is for investors, developers and their consultants and contractors to aspire to, is to incorporate “climate responsiveness” and “designing within constraint” concepts when developing buildings in order to ensure that these buildings remain resilient and sustainable in an unpredictable future context.

Featured image: iStock

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