www . refrigerationandaircon . co . za RACA Journal I July 2024 1
RACA Journal : ISSN 1812-772X
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BUSINESS ’ ROLE IN HELPING SA BACK FROM THE ECONOMIC BRINK
South Africa , by 13 May 2024 , had celebrated 47 consecutive days without load shedding , and there are positive signs of improvement in Transnet ’ s rail and port performance . If all continues to progress smoothly , load shedding could become a thing of the past by the end of 2025 .
This achievement owes much to the collaboration between business and government through the Joint Steering Oversight Committee ( JSOC ). Launched 12 months ago , JSOC was established to rescue South Africa from the brink of economic collapse . At the time of its inception , load shedding was a daily ordeal , and Transnet ’ s rail performance had deteriorated to levels reminiscent of post- World War II .
Despite initial scepticism , a recent JSOC update has provided substance to what some dismissed as mere talk . Over 150 CEOs from the private sector have actively engaged in this initiative , which focuses on three critical areas : energy , transport and logistics , as well as combatting crime and corruption .
• Load shedding has decreased by 61 % during the period from December 2023 to February 2024 compared to the same period in the prior year . Specifically , Stage 4 load shedding has seen an impressive reduction of 80 %.
• South Africa has successfully added six gigawatts ( GW ) of new generation capacity to the grid . This is a significant boost to the country ’ s energy supply .
• The investment pipeline for new power generation has doubled , indicating increased interest and commitment to improving energy infrastructure .
• Requests for proposals ( RFPs ) have been issued for a total of 7.6GW of renewable energy , gas-to-power , and battery storage projects . This move aims to diversify the energy mix and enhance sustainability .
• Eskom has a new CEO , Dan Marokane , at the helm , crucial for addressing energy challenges effectively .
• The establishment of the National Transmission Company of South Africa ( NTCSA ) is a significant step . It will manage Eskom ’ s transmission grid separately , streamlining operations and improving efficiency .
• Eskom ’ s energy available factor has improved and now stands above 55 %. This metric reflects the reliability of energy supply and is essential for economic stability .
These milestones demonstrate progress in addressing energy issues and fostering collaboration between business and government .
Let ’ s delve into the developments in transport and logistics :
• Transnet has appointed Michelle Phillips as the new CEO , and
Russell Baatjies now leads Transnet Freight Rail . Fresh leadership can drive positive changes and efficiency .
• As of March 2024 , there has been a remarkable 36 % reduction in waiting time for vessels to anchor . This improvement enhances port operations and overall maritime efficiency .
• Fewer vessels anchored outside Durban , following a 45 % decrease in the number of vessels anchored outside its harbour . This means quicker turnaround times for ships and smoother cargo handling .
• The National Treasury has granted a R47-billion guarantee for Transnet , subject to specific conditions . This financial backing strengthens Transnet ’ s stability and capacity to invest in critical infrastructure .
• A substantial R700-million investment has been allocated to key rail corridors . Much of this funding is dedicated to enhancing security measures , including the use of drones , aiming to combat cable and equipment theft .
• Transnet has taken a significant step by publishing its draft ‘ Network Statement ’. This document serves as the initial move toward attracting private investment and preparing Transnet for competition by the end of 2024 .
• In 2024 , the decline in freight volumes was halted . The target for the 2024 / 5 year is 193 million tonnes ( Mt ), which is just shy of the 200 – 220Mt needed to support economic recovery . This positive trend bodes well for South Africa ’ s trade and commerce .
CRIME AND CORRUPTION
• Twenty high priority and complex cases identified for prosecution with the National Prosecuting Authority ( NPA ) as part of a strategy to remove SA from the Financial Action Task Force grey list ;
• Crime call centre modernised ;
• NPA Amendment Bill tabled to establish the Investigating Directorate against Corruption and provide for the appointment of anti-corruption investigators ;
• Exodus of skills from the NPA has been arrested and it is being re-staffed ;
• Plans in place to leverage R56-million investment by the South African Banking Risk Information Centre ( SABRIC ) and Banking Association of SA ( BASA ) for the creation of a forensic analysis centre and training for complex cases ; and
• A key target is the reduction of infrastructure crime at Eskom and Transnet , and there is evidence that this is happening .
REFERENCE 1 . Various Business Day and Moneyweb articles RACA
www . refrigerationandaircon . co . za RACA Journal I July 2024 1