Localisation for Africa
The Pump Cluster
Eskom’ s Henk Langenhoven presented the State Owned Company’ s( SOC’ s) Supplier Development and Localisation Strategy, highlighting specific opportunities for the pump industry.
This strategy was developed in the context of Government’ s national policies on industrial growth and development( National Development Plan, IPAP, CSDP and B-BBEE).
The scale of Eskom’ s current spend and the anticipated spend over the next 5-10 years has highlighted the role that Eskom can play in terms of a number of opportunities:
The size of Eskom’ s operations and expansion presents an opportunity to drive socioeconomic development. The long-term view of the company’ s procurement spend allows them to identify areas where they can directly stimulate economic growth in a sustainable way. Clarification of Eskom’ s role in implementing the energy mix requirements of the IRP will enable them to bring critical mass to bear on industrialisation and localisation opportunities resulting from the IRP.
Pumps has been identified by Eskom as one of its strategic commodities through which to leverage future demand to promote the objectives of its Supplier Development and Localisation programme.
While the South African estimated pump demand has historically been 0.8 % in the last three years, Eskom’ s estimated future pump demand is to be 11 % of South Africa’ s forecasted future pump demand.
Current Market Situation Locally based subsidiaries of foreign multinational companies dominate the South African and Eskom pump market. An analysis of the South African Pump market indicates that the country has both current and potential local capability to manufacture, assemble and refurbish pumps for various end user sectors.
Several skills have been identified for development in consultation with Eskom’ s skills programmes and the national scarce skills list Pumps SD & L Strategy.
The aim of the SD & L strategy is to develop a local pump industry with a full value chain offering, which conforms to South Africa’ s transformation agenda.
The objective for the development of a pumps SD & L strategy is to identify opportunities and guide efforts to leverage future spend in order to:
Enhance local content among Eskom’ s pump supplier base. Develop existing local suppliers to improve competitiveness and develop capacity to export. Contribute towards the development of scarce skills for Eskom and national requirements. Make a contribution to job retention and creation.
Specific opportunities for pumps and related parts in Eskom:
Eskom procures new pumps, spare parts and pump maintenance services for new and existing plants. New pumps are procured in the context of new build programmes as part of procured packages and / or turnkey solutions( installation). In addition, pump replacement projects are undertaken( major maintenance – pumps overhaul beyond refurbishment). The following are examples of pumps used:
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