Injured Mister Sweet Workers Yet to Be Compensated
Casual worker claims he did not get any training before he got the job
Casual worker claims he did not get any training before he got the job
Treasury publishes operating budgets for municipalities
National Treasury has published on its website the operating and capital budgets of municipalities, as adopted by their respective councils.
“These budgets give an overview of expected revenue and expenditure trends in local government over the next three years, referred to as the 2024/25 Medium Term Revenue and Expenditure Framework (MTREF),” National Treasury said on Wednesday.
The revenue and expenditure numbers are aggregated from the annual budgets that municipal managers are legally required to submit to National Treasury and the relevant Provincial Treasury.
The published information is presented in a variety of ways, including aggregated municipal budget totals for the 2024/25 financial year and over the medium-term period.
In addition, the information is presented per category of municipality and province.
Highlights include:
• The aggregated budgeted revenue for 2024/25 is R652.3 billion, which is expected to increase to R687.2 billion in 2025/26 and R728.7 billion in 2026/27.
• Total municipal expenditure in 2024/25 is estimated to be R649.9 billion, increasing to R682.7 billion in 2025/26 and R720.4 billion in 2026/27. Total expenditure for 2024/25 is 6.2% higher than the adopted budget for 2023/24 financial year.
• It is notable that aggregate municipalities will realise operating deficits on the operating budgets in the 2024/25 financial year, as the total operating expenditure increases at a higher rate than the revenue projections. This is an indication that municipalities are living beyond their means and a first sign of financial challenges. However, the situation is projected to improve in the outer years of the 2024/25 MTREF, as operating surpluses will be realised.
• A net deficit of R2.1 billion is projected in the 2024/25 financial year, after considering revenue from external loans and internally generated funds. This is an improvement compared to a deficit of R9.3 billion in the 2023/24 adjusted budget and will result in a net surplus of R520.4 million in 2025/26 and R4.3 billion in 2026/27.
• The main cost drivers are employee related costs and materials, and bulk purchases, representing 26.9% and 34.5% of the operating expenditure, respectively. Municipalities are experiencing a two-fold impact of the high electricity and water tariff increases; lower sales levels owing to changes in consumption patterns and increased bad debt as a result of affordability pressures.
• Capital expenditure increased by 1.8% to R77.4 billion in 2024/25, compared to the original budget for the 2023/24 financial year. The percentage of capital expenditure to total expenditure is declining over the MTREF period. Capital expenditure represented 12.4% of the total expenditure in 2023/24 and is projected to decrease to 11.9% in 2024/25 and further to 10% in 2026/27.
• Trading services represent 51.5% of the total capital expenditure of R77.4 billion in 2024/25; increases to 51.9% in 2025/26 and to 54.3% in 2026/27.
• The 2024/25 capital expenditure budget reflects a R47.1 billion investment in new infrastructure,which is 60.8% of the total aggregated capital budget. Investment in the renewal and upgrading of existing assets is much lower at R13.3 billion (17.2%) and R17 billion (22%) of the total capital budget respectively.
• Reporting on operational repairs and maintenance figures has been institutionalised as part of Section 71 in-year reporting. Municipalities allocated R33.9 billion to repairs and maintenance of assets in 2024/25. This will increase to R35.6 billion in 2025/26 and to R37.1 billion in 2026/27.
National Treasury publishes Local Government MTREF information on an annual basis.
“Regularly published budget information enables communities to hold their municipal councils to account. The information is also used by National Treasury as the basis for the In-Year Management, Monitoring and Reporting System for Local Government (IYM).
“The Section 71 reports published by National Treasury give an account of actual revenue collection and spending by municipalities, per quarter, against their budgeted figures,” National Treasury said.
All this information feeds into Municipal Money -- the open local government data portal -- which can be accessed as follows: www.municipalmoney.gov.za.
In addition, the Municipal Money time series data can be accessed directly from http://municipaldata.treasury.gov.za.
A new development that facilitates transparency is the GoMuni portal, which can be accessed on https://lg.treasury.gov.za/ibi_apps/signin by clicking on the public access tab. -SAnews.gov.za
nosihle
Thu, 11/07/2024 - 09:17
SIU conducts search and seizure at North West municipality
The Special Investigating Unit has this morning conducted a search and seizure operation at the JB Marks Local Municipality in the North West.
According to the unit, the operation – executed in cooperation with the Hawks and the SA Police Service – was conducted to search for evidence that may assist in an investigation targeting the construction of the N12 flood line canal.
“The search and seizure operation is the SIU’s last resort to access documents needed for the investigation and obtain the necessary documentation for its investigation. Since the proclamation was published on 4 October 2024, the SIU has made multiple attempts to contact the municipality in an effort to access the required documents voluntarily, However, these attempts have gone unanswered.
“This lack of cooperation prompted the SIU to seek the court's assistance in securing a warrant to search and seize pertinent documents and electronic equipment,” the SIU said.
The corruption-busting unit said the operation is conducted not only through a warrant but also in accordance with a Presidential Proclamation, which authorised the unit to “investigate allegations of serious maladministration regarding the procurement of/or contracting for goods, works or services by or on behalf of the municipality” related to the construction of the flood line canal.
Documentation and devices seized include:
“The SIU is empowered by the Special Investigating Units and Special Tribunals Act 74 of 1996 (SIU Act) to subpoena bank statements and cell phone records, search and seize evidence, and interrogate witnesses under oath to thoroughly investigate allegations brought before it.
“The SIU is also empowered to institute a civil action in the High Court or a Special Tribunal to correct any wrongdoing uncovered during investigations caused by acts of corruption, fraud or maladministration.
“In line with the SIU Act, the SIU will refer any evidence pointing to criminal conduct it uncovers to the National Prosecuting Authority for further action,” the SIU said. – SAnews.gov.za
NeoB
Thu, 11/07/2024 - 12:25
Farmers advised to implement weather wise measures
The Department of Agriculture, Land Reform and Rural Development has advised farmers to be on the lookout for daily extreme weather warnings and implement risk-reduction measures.
The department said large parts of the country are currently reporting reasonable to poor veld and livestock conditions, and many dryland farmers have yet to receive sufficient rain before planting.
According to the Seasonal Climate Watch issued by the South African Weather Service (SAWS) on 31 October 2024, predictions indicate above-normal rainfall for most north-eastern summer rainfall regions during the entire summer period.
Some interior regions, however, still indicate below-normal rainfall during the mid- and late-summer seasons.
“These predictions may change if the El Niño–Southern Oscillation (ENSO) predictions become more certain towards a La Niña state and as such, continued monitoring of future seasonal climate watches are advised. Minimum and maximum temperatures are expected to be mostly above normal countrywide for the forecast period.
“Considering the seasonal forecast, farmers are advised to approach the season with vigilance and follow the weather and climate forecasts regularly to make informed decisions and wait for sufficient moisture before planting. Drought-tolerant cultivars should be prioritised in areas that have constantly been experiencing dry conditions,” the department said in a statement.
The department also advised farmers in regions that are in a reasonable condition to prepare in line with the expected conditions, in line with the seasonal forecast. However, the department warned against expanding planting land unnecessarily.
“Moreover, farmers should consider short-season cultivars. Farmers should also note that rainfall distribution continues to remain a challenge. Therefore, not all north-eastern areas of the country might receive the anticipated above-normal rainfall that is well distributed,” the department explained.
Farmers are also advised to put measures in place for pests and diseases associated with wet and hot conditions, as “above-normal rainfall and high temperatures are anticipated, especially in the north-eastern parts of the country”.
Farmers using irrigation have been urged to comply with water restrictions in their areas, and continually conserve resources in accordance with the Conservation of Agricultural Resources Act (CARA), 1983 (Act No. 43 of 1983).
The department further urged farmers to keep livestock in balance with the carrying capacity of the veld and provided with additional feed, including relevant licks.
“Livestock should be provided with enough water points on the farm, as well as shelter during bad weather conditions,” the department said.
Fire belts
The department further noted veld fires in several provinces, which resulted in damage to grazing land and infrastructure, and livestock fatalities.
“Winter rainfall areas are drying out, increasing favourable conditions for veld fires. Therefore, the creation and maintenance of fire belts should be prioritised as well as adherence to veld fire warnings.
“Episodes of heatwaves have occurred, as well as localised flooding and remain likely for the remainder of summer. Preventive measures should be in place and farmers are encouraged to implement strategies provided in the early-warning information issued.”
The department said it will continue to monitor the seasonal forecasts and provide updates when necessary.
“In addition, the department will partner with all relevant stakeholders to continue raising awareness in the sector and capacitate farmers on understanding, interpretation and utilisation of early-warning information for disaster risk mitigation and response.” – SAnews.gov.za
GabiK
Thu, 11/07/2024 - 13:31
Africa-focused biogas company (B)energy re-launched BiogasUnite, a digital platform designed to boost the use of biogas for clean cooking in Africa, during a technical workshop at African Energy Week: Invest in African Energies 2024 on Tuesday.
Katrin Puetz, Founder and Managing Director of (B)energy, said the company is seeking £780,000 from African and global investors to fund the adoption of BiogasUnite across the continent. Currently under trial in Uganda, the platform will provide a streamlined approach to connecting biogas consumers, technicians and energy stakeholders, according to Puetz.
The initiative targets the repair of approximately 175,000 biogas cooking systems currently out of service due to maintenance challenges.
(B)energy established partnerships for the platform with fifteen organizations in countries such as Nigeria, Sierra Leone, Benin, Ghana, Mali, South Africa, Zimbabwe, Kenya and Mozambique
“Around 200,000 biogas cooking systems were installed in Africa since 2012, yet nearly 60% are now non-functional due to inadequate maintenance,” Puetz explained.
The platform, enabled with a smart meter and app, provides users with direct access to technicians for stove maintenance, while enabling business owners to rent and monetize their cooking stoves, reducing the previously high upfront costs that hindered biogas adoption and scalability, according to Puetz.
“Fifteen years ago, about 700 million people lacked access to clean cooking, and this number has since grown to nearly a billion,” stated Puetz, adding “The African Energy Chamber, with its extensive data and connections across the African energy sector, would be an ideal partner.”
She said having governments as partners will help with job creation and drive sustainability of the oil and gas industry.
Distributed by APO Group on behalf of African Energy Chamber.
Municipalities urged to prioritise damaged infrastructure
Water and Sanitation Deputy Minister, Sello Seitlholo, has called on municipalities with dysfunctional wastewater treatment works (WWTW) to prioritise infrastructure as a matter of urgency.
Seitlholo made the call during his visit to uMhlathuzana, Umhlanga and Phoenix Wastewater Treatment Works in the eThekwini Metropolitan Municipality, KwaZulu-Natal.
Seitlholo visited the wastewater treatment works on Wednesday to assess progress made to repair infrastructure damaged by floods over two years ago.
EThekwini Municipality entered into a bulk wastewater operation and maintenance contract with uMngeni-uThukela Water and as part of the agreement, the water board is responsible for the operation and maintenance of 10 of the municipality’s wastewater treatment works.
The WWTWs included in the contract account for 90% of the sewage managed by the municipality.
During the visit, Seitlholo said it was good to see that eThekwini Municipality has realised that through working with uMngeni-uThukela Water, they will be able to resuscitate, operate and maintain their infrastructure.
“While the infrastructure itself is not 100% operational, I am happy that uMngeni-uThukela Water, as part of their Service Level Agreement (SLA) with eThekwini Municipality, has been able to begin the work, particularly in Umhlanga, where 50% of the plant is operational after it was completely decommissioned after the floods,” Seitlholo said.
The Deputy Minister said during the engagements with both the municipality and the water board in eThekwini, he picked up huge concerns regarding the country’s sanitation.
He said sanitation is not being "taken seriously", particularly in the context of wastewater resources.
Seitlholo urged South Africans to realise that the country’s water security is hampered by the pollution happening in water resources.
“We cannot have quality raw water abstracted from our rivers that are deeply polluted because the value chain suggests that the more polluted the raw water, the more it costs to treat it.
"We have to be able to be conscious about this reality, its economic impact and the damage this has on the livelihoods of the people, farmers and businesses.
“I’m making a call to all South Africans that pollution has to come to an end. Municipalities with dysfunctional wastewater treatment works must prioritise their infrastructure as a matter of urgency,” Seitlholo said.
The Deputy Minister said he will continue to raise awareness in all provinces and ensure that everyone takes responsibility and stops pollution. – SAnews.gov.za
GabiK
Thu, 11/07/2024 - 14:27
As Africa continues to expand its energy infrastructure on a continent where energy poverty remains the reality for millions of its population, addressing the challenges of energy efficiency and demand side management become increasingly crucial. There is a pressing need to optimize energy consumption and promote sustainable development across the continent.
During a panel discussion sponsored by the South African National Energy Development Institute (SANEDI), South Africa's successful history of promoting energy efficiency in the country through the implementation of its National Energy Efficiency Strategy was highlighted.
Ngoanathari Maja, Programme Manager for Energy Efficiency in Public Buildings & Infrastructure Programmes at the SANEDI set the tone of the discussion as the panel moderator. Panelists included Professor Sampson Mamphweli, General Manager at the Department of Science and Innovation and Energy Secretariat at SANEDI; Stalin Ndlovu, Acting General Manager of Energy Efficiency and Demand Side Management at SANEDI; Nqobile Ngcobo, Energy Performance Certificates Program Lead at SANEDI and Salifou Camara, Deputy National Director of Energy at the Ministry of Energy, Hydraulics and Hydrocarbons in Guinea-Conakry.
Mamphweli discussed how energy efficiency and demand side management measures had a significant impact on South Africa's energy availability when the country experienced its first period of loadshedding in 2008. The measures implemented by Eskom, SANEDI and the private sector managed to contain loadshedding at the time.
“Through energy efficiency and demand side management measures you can save a lot of energy that can be distributed to those who do not have access to energy,” he said.
Mamphweli added that although South Africa has the National Energy Efficiency Strategy, the country's draft Integrated Resource Plan 2023, which provides a roadmap for meeting South Africa's forecasted electricity demand, does not make provision for this. It is important for energy efficiency and demand side management to feature in the country's long-term energy planning, he said.
To meet the country's future energy needs, Ndlovu reiterated the importance of resource efficiency on both the energy supply side and energy demand side, noting that countries must optimize their energy use.
Also drawing on the topic of resource efficiency, Ngcobo said that we can only start expanding electrification on the continent once we consume energy efficiently.
Maja raised the concern that despite the strides made towards improving energy efficiency in South Africa, there is not enough uptake of energy efficiency and demand side management measures in Africa.
In response to this, Mamphweli highlighted the various stumbling blocks in Africa, including funding, skills, and awareness of energy efficiency. “Selling the idea of energy efficiency takes time for people to buy into,” he said.
Camara provided insight on the barriers faced in adopting energy efficiency measures in Guinea-Conakry, noting that consumers simply buy appliances that are not energy efficient.
“We need [to] raise awareness among consumers to improve the country's energy efficiency as our population needs to better understand how to better save and use energy, to ensure sufficient energy for all,” he said.
In line with this, Mamphweli called for action against using Africa as a dumping ground for energy inefficient technologies, emphasizing the need for behavioral changes towards using existing and proven energy saving technologies in Africa at both a household and commercial level.
Ngcobo addressed the importance of viewing energy efficiency as the first step in managing demand. “There is no point in increasing energy supply when we are unable to effectively manage what we are using on the end user side,” she said.
The panel discussion formed part of African Energy Week (AEW): Invest in African Energies' ‘Powering Africa Summit'. The summit aims to advance investment, technology, and innovation to harness Africa's renewable and non-renewable energy mix and optimize the continent's power generation and distribution capabilities to improve energy access and meet the rising power needs of Africa's rapidly expanding populations.
Set to reach 2.5 billion people by 2050, Africa is home to the world's fastest-growing population. The continent's crude oil and gas resources, combined with its vast solar and hydropower resources represent the pathway to improving energy access and rising power demands.
SANEDI is a Bronze Sponsor of the AEW: Invest in African Energies 2024 conference, which is being held in Cape Town this week.
Distributed by APO Group on behalf of African Energy Chamber.
Investing in tech key to improving life for people with disabilities
Women, Youth and Persons with Disabilities Deputy Minister, Mmapaseka Steve Letsike, has emphasised the need to invest in the promotion of new technologies and the advancement of assistive technologies to improve the quality life for people with disabilities.
“We must invest in research and development of affordable and accessible technologies that aid communication, mobility and access to information,” Letsike said.
Letsike made the call at the Information and Communication Technologies (ICT) symposium in Umgababa, south of Durban, as part of the build-up to the District Development Model (DDM) Presidential Imbizo that will take place on Friday.
Collaboration between government, private enterprises, academic institutions and organisation of and for people with disabilities, can foster innovation in the ICT field, ensuring that people with disabilities can benefit from the rapid pace of technological progress, the Deputy Minister said.
“This includes promoting digital accessibility and ensuring that emerging technologies, such as artificial intelligence and automation, are designed with inclusivity in mind. Our emphasis is on a fundamental shift in how we view persons with disabilities, away from the individual medical perspective, to a human rights and developmental perspective.
“It is with this understanding in mind that we affirm supporting autonomy and independent living by promoting policies that enable access to community-based services, personal assistance, and affordable, adaptable housing,” Letsike said.
The Deputy Minister noted ICT's significant contribution to the advancement of disability rights, offering tools that enhance accessibility, inclusion and independence for individuals with disabilities.
Letsike maintained that ICT is not just "a set of tools", but a bridge to a more inclusive, accessible and fair world for people with disabilities.
“By supporting accessible technology, promoting inclusive policies, and advocating for the rights of all, we can continue to break down barriers and build a society that truly values each individual’s unique abilities,” she said.
Reformed social protection scheme
Letsike highlighted the need for a reformed social protection scheme to provide financial support, which will allow individuals with disabilities to live independently, make personal decisions about their care and avoid institutionalisation, where possible.
“This also entails removing barriers to education and employment, enabling persons with disabilities to contribute to society in ways that promote self-sufficiency and empowerment.
"We must remember that human rights are universal principles that protect every individual’s dignity, freedom and equality. They are not privileges or special considerations but inherent to every person simply because they are human,” Letsike said.
Disability Rights Awareness Month
The symposium coincided with Disability Rights Awareness Month (DRAM), observed from 3 November to 3 December.
Held under the theme, “Celebrating 30 Years of Democracy: Creating a Disability-Inclusive Society for a Better Quality of Life and Protection of the Rights of Persons with Disabilities”, this year’s DRAM reflects on government’s commitment to creating a barrier-free society, where people with disabilities are full and active participants in the country’s economy and society at large.
Each week of DRAM is linked to national strategic priorities and the White Paper on the Rights of Persons with Disabilities.
During week one of DRAM, focus will be on growing an economy aligned with the empowerment of persons with disabilities. Week two advocates for the inclusion of every child with a disability. Week three builds a working government with a progressive disability rights agenda, and week four focuses on creating safer communities for persons with disabilities.
“We hope that each one of us, in our respective corners where we operate, will do our bit toward raising awareness on the rights of persons with disabilities during this period,” Letsike said. - SAnews.gov.za
GabiK
Thu, 11/07/2024 - 15:12
Private power and Independent Power Producer (IPP) investments are pivotal for Africa's energy future if it is to improve energy access and end energy poverty on the continent. The procurement of new, often renewable sources of energy, is a way for countries to improve energy supply but also meet transition goals.
During a panel discussion titled ‘Maintaining the Momentum for Private Power Provision' that formed part of African Energy Week (AEW): Invest in African Energies 2024 ‘Powering Africa Summit' South Africa's IPP procurement program was highlighted as a benchmark on how to successfully develop private, independent power generation capacity in Africa, which is challenged by a lack of generation capacity, aging power plants and poorly run state-owned utilities and a lack of affordable capital.
Bernard Magoro, Head of South Africa's Independent Power Producers Office said that although the country has overcome the challenge of loadshedding, it needs to decommission 15-20 GW of coal-fired power by 2035, half of which will be replaced by renewables which requires between four and five times the baseload capacity that you are replacing.
The IPP program, which has been running for 14 years, has delivered over 8 GW of capacity, 7.2 GW of renewable energy and 1 GW of open cycle gas turbine capacity, Magoro pointed out. This equates to about 10% of South Africa's energy from IPPs on an annual basis, he added.
The enabling environment that Magoro referred to as “the IPP energy ecosystem” that was created in South Africa to support IPP integration is what has supported the success of the program, the learnings of which he said was being shared with the rest of the African continent.
Panel moderator, Hasnayn Ebrahim, Managing Director of management consultancy Africa International Advisors noted the important aspect of cross-border collaboration, knowledge sharing and capacity support as a potential enabler to advance private power provision in Africa, a sentiment echoed by Mirlan Aldayarov, Infrastructure Program Leader at the World Bank who said the South African Power Pool (SAPP) exists as a good mechanism that can help to leapfrog some of the IPP development challenges in Africa.
This idea was supported by Simphiwe Jantjies, Head of East, Central and West Africa at development finance institute the Development Bank of Southern Africa who said the existence of regional power pools, in addition to liberalizing the energy market can play an important role in extending the role of IPPS in providing power.
“Development finance institutions can…play a meaningful role in the entire project development value chain…pulling the entire financing structure of a project together and ensuring it is bankable,” Jantjies said.
Aldayarov highlighted the pace of reforms to support IPPs in South Africa as “phenomenal” noting that the Bank is involved in long term energy planning, policy and regulatory reforms, energy offtake and supporting the development of a pipeline of bankable projects to create an enabling environment going forward.
In trying to maintain the momentum of the IPP program in South Africa, where there is over 100 GW worth of energy capcity at different readiness stages waiting to be developed, the country is faced with needing to expand the energy grid. “We have run out of grid capacity,” he said.
“Between now and 2032 we need to build 14,000 km of transmission lines,” which Eskom cannot do alone, Mogoro said, noting that the private sector, like the role it is playing in the IPP space, would need to assist in expanding the strained transmission network.
Distributed by APO Group on behalf of African Energy Chamber.
Durban Academy gears up to host UCI Pump Track World Championships
The City of Durban is gearing up to host the prestigious 2024 Velosolutions Union Cycliste Internationale (UCI) Pump Track World Championships Finals, which will take place at the GO!Durban Academy, KwaMashu site, on 9 November 2024.
The event marks the tail end of the 2024 season and is set to bring together the world’s top riders from approximately 20 countries to compete for the World Championship Title.
The first ever to be hosted in a township, the KwaMashu GO!Durban Academy Park was chosen over Cape Town.
Established in 2016, the GO!Durban Cycle Academy features a world-class Velosolutions asphalt pump track right in the heart of KwaMashu.
Velosolutions pump tracks are both playgrounds and training facilities for bikers, skateboarders and scooter riders of all skill levels. Asphalted tracks are hotspots for all kinds of riders, who seek a fun and action-filled sports experience.
EThekwini Transport Authority Acting Head, Nelisiwe Zama, said being chosen to host an event of such magnitude is demonstration of the high standard infrastructure that the GO!Durban Academy has to offer.
“An event of this nature does not only place us on the world map in relation to the cycling sport but has great impact on local tourism, with 60 international riders, accompanied by their teams, and fans staying in Durban. This influx of international visitors will help put Durban on the global tourism map as a 'must visit' destination in South Africa,” Zama said.
The event is also set to benefit youth from townships, as various community-based cycling races will be hosted in the week leading up to the finale.
The top four of the community bike series, including the men and women elite category, will officially qualify for the UCI Pump Track World Championships on Saturday.
“The two winners will receive free hotel accommodation, like all other international winners. The second, third and fourth placed riders will be invited to join the afterparty, rider's briefing, welcome presentation, and will be transported daily from their township to the locations,” Zama said.
Tickets for the UCI Pump Track World Championships finals will be sold at the gate at R50 per person. – SAnews.gov.za
GabiK
Thu, 11/07/2024 - 10:36
SAHPRA encourages citizens to report suspected side effects from medication
The South African Health Products Regulatory Authority (SAHPRA) has encouraged citizens to always report any suspected side effects they may experience from taking medicines, vaccines or using medical devices, to help make medicines safer for everyone.
While humanity benefits greatly from medicines in the treatment of illness and management of certain conditions, SAHPRA said medicines may at times cause side effects.
However, according to the local drug watchdog, the risk of side effects and severe harm can be drastically reduced by taking medicines correctly and following the advice of a healthcare practitioner.
SAHPRA, together with over 90 other medicines and health product regulators, as well as healthcare organisations globally, is participating in the annual MedSafety Week awareness initiative, which takes place between 04 and 10 November 2024.
This year’s theme will focus on the importance of using medicines in the right way to prevent side effects and to report side effects when they do occur.
The awareness is spearheaded by the Uppsala Monitoring Centre under the auspices of the World Health Organisation (WHO) Programme for International Drug Monitoring.
This is a programme that monitors and identifies adverse effects of medicines and vaccines, to reduce risks to patients, and to establish worldwide pharmacovigilance standards and systems.
SAHPRA CEO, Dr Boitumelo Semete-Makokotlela, said that handling and storing as well as taking medicines as directed by a healthcare professional is key in reducing the incidence of adverse reactions.
“Research shows that about half of all side effects are preventable. Patient safety is our top priority and during MedSafety Week, we wish to remind patients to take their medicines as instructed and healthcare professionals to review therapies as well as each patient’s unique health conditions before prescribing or dispensing medicines,” said Semete-Makokotlela.
SAHPRA called upon the South African public and healthcare professionals to use either the MedSafety app or the eReporting portal - both accessible on SAHPRA's website - to report suspected side effects from health products.
According to the watchdog, all reports are assessed and examined to determine the correct steps to protect medicine users in South Africa from harm.
“The purpose is to gain better knowledge about known side effects and to discover new ones. This can result in warnings and changes to how a medicine is used,” the authority explained.
The SAHPRA MedSafety app and eReporting portal can be used for reporting suspected adverse drug reactions from medicines, vaccines, herbal products, biological medicines and any quality issues relating to health products. – SAnews.gov.za
Gabisile
Thu, 11/07/2024 - 13:12
Africa Oil Corp has revealed encouraging exploration results from the EG-18 field in Equatorial Guinea. Chris Johnston, Senior Geoscientist at Africa Oil Corp., presented these findings during a technical workshop at Africa Energy Week: Invest in African Energies 2024.
Highlighting their recent efforts, Johnston explained that the EG-18 field, which Africa Oil operates with an 80% interest, has demonstrated strong reservoir quality. The EG-18 field is part of Africa Oil Corp's strategic offshore exploration in Equatorial Guinea, a region historically rich in hydrocarbons but with limited offshore oil discoveries. "Our main prospect, Jasper, appears highly prospective, with indicators suggesting the presence of oil," Johnston stated.
Africa Oil Corp's exploration campaign includes analyzing basin floor fan prospects of the Cretaceous age. These formations are akin to successful structures the company has explored in Namibia and South Africa. "From our data, we've identified seismic anomalies and Amplitude Versus Offset responses that increase our confidence in a working hydrocarbon system," Johnston elaborated, referencing findings from the recent Jaca-1 well, which indicate oil presence.
Additionally, Johnston emphasized the potential of EG-18 to become a major new hydrocarbon province, akin to the prolific Orange Basin. “The correlation to nearby L2 well data and Direct Hydrocarbon Indicators further supports our belief in the area's potential,” he said.
In Block EG-31, Africa Oil has also identified promising gas-prone prospects, such as the shallow-water Whistler prospect in the Alba fields. Studies, including rock physics analysis, have confirmed gas potential.
Distributed by APO Group on behalf of African Energy Chamber.
Memorial lecture series to honour past and present leaders
The National House of Traditional and Khoisan Leaders (NHTKL), as the custodian of culture and tradition and the anchor of societal moral values, will launch a series of memorial lectures titled ‘Lenaka’.
Lenaka is a Setswana phrase that means "elephant tusk". It is also the name of a ring that symbolises wisdom, strength and protection.
“Historically, the sounding of a horn has been used to summon communities, announce important events and mark moments of transition or unity.
“By invoking the image of the horn, this lecture not only honours the memory of the individual being celebrated but also reinforces the call for collective reflection, wisdom and the continuity of cultural heritage.
“It is a powerful metaphor for gathering people together to share knowledge, uphold traditions and inspire future generations,” the NHTKL explained.
According to the leaders, the Lenaka Memorial Lectures aim to celebrate the heroes and heroines within the traditional leadership landscape, past and present, whose contribution has shaped the course of the institution’s history and the country.
The organisation believes that celebrating the life and legacy of past and present traditional leaders will take the form of a memorial lecture, annually, in the identified community, coupled with the promotion of socio-economic development and service delivery and the social well-being and welfare of communities.
The inaugural Lenaka Memorial Lecture will be dedicated to honouring the life and legacy of Queen Manthatisi of Batlokoa ba Mota, in QwaQwa, Free State, on 14 November 2024.
Queen Manthatisi is revered as a great leader, who ruled the Batlokwa community from 1813 to 1824.
“Although she ascended the throne as a regent for her son after the death of the reigning King, she became a formidable force through her dedication to the community and her bravery in protecting her people from adversaries.”
As a royal child herself, the organisation said she understood the immense responsibility placed on her shoulders when she took over from her husband to lead the Batlokoa people.
“Her father’s community also boasts a history of warriorhood, which shows that bravery and leadership were in her blood. Of course, her ascension to the position of authority was not without contest as she was challenged from within, but she remained resolute in her vision to protect the Batlokoa.”
The NHTKL said it has chosen the month of November aptly because according to the African calendar, this is a month of procreation and giving life.
“This marks the birth of a memorialisation journey, the unearthing of a history untold!”
The Lenaka Memorial Lectures will take place under the ‘Traditional leaders looking back to take the institution forward’ theme.
Building up to the memorial lectures, the NHTKL will work with its partners to promote socioeconomic development in traditional communities.
The objective is to support community initiatives that seek to improve and uplift the social and economic livelihood of community members. – SAnews.gov.za
Gabisile
Thu, 11/07/2024 - 10:37
DCS working to apprehend escaped convict
The Department of Correctional Services (DCS) is working with other law enforcement agencies to re-apprehend an inmate who escaped from the Boksburg Correctional Centre.
The inmate, Martin Jackson, escaped from custody on Wednesday.
“The DCS confirms that an inmate has escaped from Boksburg Correctional Centre. The escape incident occurred on Wednesday, 6 November 2024 under circumstances currently under investigation.
“Correctional Services is working with other law enforcement agencies to locate and apprehend the escapee,” the department said.
Jackson is serving a 20-year sentence for robbery, theft and possession of firearm with ammunition, and has been behind bars since April 2015.
“Correctional Services has mobilised resources and will leave no stone unturned in ensuring that Jackson is rearrested and brought back to justice.
“The public is urged to remain vigilant and we call upon anyone with information on the escapee’s whereabouts to contact the nearest police station or a Correctional facility. Members of the public are also advised not to approach the escapee if spotted, as he may be dangerous,” the department said. – SAnews.gov.za
NeoB
Thu, 11/07/2024 - 11:03
Basic Education works to develop school safety guidelines
Following recent cases of food poisoning among learners, the Department of Basic Education is working with the Department of Health to develop safety guidelines for schools to effectively mitigate the risks of organophosphate pesticide exposure in school environments.
This was announced by the Basic Education Minister Siviwe Gwarube at a media briefing in Cape Town on Wednesday.
Gwarube said that learner safety is her top priority, and that the Department of Basic Education (DBE) is taking the matter seriously.
“In response to these incidents, my department is working with the Department of Health to develop safety guidelines for schools on how best to mitigate the risks of organophosphate pesticides entering school environments.
“These will be aimed at ensuring that communities and vendors near schools are aware of the risks associated with hazardous chemicals, especially those used for pest control purposes. I will ensure that these are finalised as soon as possible,” she explained.
This as the country has experienced a spate of deaths and children falling ill after eating snacks from local spaza shops across the country. Six Soweto children died after they were said to have consumed snacks from a local spaza shop. At a recent media briefing, Health Minister, Dr Aaron Motsoaledi, announced that forensic tests unveiled that the six primary school children were killed by a highly toxic organophosphate called Terbufos.
READ | Death of six Soweto children linked to Terbufos
At the briefing Gwarube highlighted that initial investigations have shown that incidents originated from food items purchased outside of school premises, particularly items tainted with hazardous chemicals such as organophosphates.
READ | Mother and son hospitalised after consuming food from spaza shop
Organophosphate pesticides are highly toxic substances and pose a significant risk, especially to young children. In these cases, it appears that certain foods were contaminated, resulting in serious health consequences for the affected learners.
“I want to urge communities, parents, and vendors to exercise extreme caution when handling, storing, and selling pesticides, particularly those known to contain harmful chemicals. The proper handling of pesticides is not just a matter of regulatory compliance but of ensuring that our children are safe in the environments where they learn, play, and grow,” she said.
The Minister said that she is exploring all possible legal avenues, within a basic education context, to ban these pesticides and insecticides from entering into school environments.
“It is my view that no school should be permitted to store or use these dangerous chemicals on its premises. Our objective is to create a safe learning environment for every child, and we are committed to implementing the necessary steps to make this a reality.”
Learner safety
Within the DBE’s commitment to fostering a safe and supportive environment for all learners, Gwarube said it was with a heavy heart that she addresses the deeply distressing incident of the rape of five Grade 12 learners in the Eastern Cape.
The incident occurred in Mqhekezweni, outside Mthatha, where the learners from Jongintaba High School were sexually assaulted by two armed intruders last week.
“I want to express my deepest sadness for what these young people have endured. Such acts of violence are abhorrent and utterly unacceptable, particularly during a time when these learners should be focused on their studies and their futures.
“In response to this tragedy, the department has prioritised psychosocial support for the affected learners, ensuring that they have access to counselling and trauma care services. Our priority is to support them in their recovery, giving them the space and assistance they need to heal.”
She added that this incident also highlights the broader need for a more robust approach to safeguarding learners from gender-based violence (GBV) within and outside the school environment.
She emphasised that schools are a space of learning and growth, and that this should be reflected in communities as well.
“It is unacceptable that women and children should feel unsafe in this country, we must act with all urgency to end the scourge of gender-based violence and femicide.
“We are working closely with local law enforcement and community stakeholders to ensure that justice is served for those five learners,” the Minister said. – SAnews.gov.za
DikelediM
Wed, 11/06/2024 - 15:20
SA’s G20 Education Working Group Presidency to focus on skilling young people
South Africa’s G20 Education Working Group Presidency will focus on equipping young people with skills for the Fourth Industrial Revolution.
Basic Education Minister Siviwe Gwarube said this includes training in artificial intelligence (AI) and robotics.
The Minister gave details of her recent visit to Fortaleza, Brazil, where she accepted the handover of the 2025 Presidency of the G20 Education Working Group on behalf of South Africa.
“This is a historic moment for our nation, and it places South Africa at the center of the global education agenda for the coming year. The G20 Education Working Group is a powerful platform for collaboration, bringing together some of the world’s leading economies to address the most pressing issues in education today.
“Under our presidency, we will focus on ‘Educational Professionals for Solidarity, Equality and Sustainable Development," she said at media briefing on Wednesday.
This she added, reflects the country’s commitment to advancing education in a way that supports economic growth, social equity, and a future-ready workforce.
These priorities include quality foundational learning, mutual recognition of qualifications across borders, and the development of educational professionals equipped to meet the needs of a rapidly changing world.
“Each of these areas is critical not only for South Africa but for developing nations around the world, as we all prepare our learners for the challenges and opportunities of an AI-powered future.
“Our presidency will emphasise the importance of preparing our young people with the skills needed for the Fourth Industrial Revolution, including artificial intelligence, large language models, robotics, and other emerging technologies,” Gwarube said.
In an era defined by rapid technological change, Gwarube said it is essential that education systems adapt and evolve to equip learners with relevant, future-ready skills.
Through the G20 platform, she said the sector aims to foster greater international cooperation, allowing them to share best practices, resources, and innovations that support this goal.
“One of the key goals of our presidency will be to advocate for an inclusive and equitable approach to education that reflects the diverse needs of all learners. We will prioritise the voices and perspectives of developing nations, ensuring that the G20 Education Agenda aligns with the aspirations of learners worldwide.
“By addressing the challenges faced by resource-constrained regions, we can create an educational framework that leaves no learner behind. We believe that every young person deserves the chance to succeed in a world that increasingly relies on digital and technological proficiency,” the Minister explained adding that this leadership role is both a responsibility and a tremendous opportunity for South Africa.
“As a country, we are committed to advancing education that is not only accessible but transformative education that empowers individuals, supports communities, and drives sustainable development.
“By taking on this role, we are not only supporting South African learners but contributing to a global movement that prioritizes the growth, safety, and wellbeing of all children,” she said.
As the country steps into the presidency of the G20 Education Working Group, the Minister said: “We are reminded of the immense potential for education to change lives, drive innovation, and build a resilient, future-ready nation.
“I look forward to engaging with our global partners and advancing an agenda that will equip our learners and learners around the world for the demands of tomorrow,” she said.
South Africa will hold the G20 Presidency from 1 December 2024 to 30 November 2025.
READ | Government assigns funding for G20 Summit
The G20 brings together the countries with the largest economies in the world. The Member States meet annually to discuss economic, political and social initiatives. – SAnews.gov.za
DikelediM
Wed, 11/06/2024 - 15:36
The event in Gugulethu marked the start of Disability Rights Awareness Month which runs until 3 December
KZN a hive of activity ahead of Presidential Imbizo
The province of KwaZulu-Natal has been a hive of activity ahead of the District Development Model (DDM) Presidential Imbizo taking place on Friday.
Ministers, Deputy Ministers and provincial government officials have been visiting various communities to check on service delivery deliverables.
Friday’s DDM will be held in conjunction with South Africa’s 30 years of freedom and democracy celebrations.
On Wednesday, Deputy Minister in the Presidency, Kenny Morolong, visited the Old Prison in Pietermaritzburg, the nearby Passenger Rail Agency of South Africa (PRASA) train station and the Nelson Mandela Capture site in Howick.
Addressing locals in Pietermaritzburg, Morolong said that as the country celebrates 30 years of democracy, it is also reminded of its painful past.
“We share our appreciation to those who laid their lives for our democracy. We convey our appreciation to the families of those who laid [down] their lives for democracy. We are reminded of our men who were brave and able to face the then apartheid regime. We are reminded of Nelson Mandela and others who stood firm and face[d] the apartheid regime so we could enjoy our democracy today.”
He emphasised the importance of preserving the Old Prison’s (which has been declared as an official heritage site) history for future generations.
According to Project Gateway, the prison houses “both a National Monument and a museum documenting some of South Africa’s diverse history."
“The Old Prison dates back to Voortrekker times, with more than 160 years of history, including the Colonial times, Apartheid, the Liberation Struggle, the Political Struggle and ultimately to the dawn of democratic South Africa in 1994,” said Project Gateway.
“Today we are a nation proud of its democracy. Today we are proudly celebrating 30 years of democracy. But we should not forget that our democracy did not come cheap. Sacrifices were made to achieve our democracy.
“We are also reminded of those women who were brave who fought for our democracy. We should be proud of our democracy. We should be proud of our government which is taking care of its people,” Morolong said.
Meanwhile, representative of the Ghandi Foundation, David Gangen, spoke passionately about events which led to South Africa’s democracy.
Gangen said what happened to Ghandi was the beginning of South Africa’s democracy.
“So having come to SA to fight a case, [Mahatma Ghandi] was to stay for 21 years, during which time he established the first formal political structure in SA in 1894, the Natal Indian Congress (NIC).
“The NIC celebrates its 130th anniversary this year. It was during this time that he experimented with truth and developed the core tenets of his philosophy in all aspects of life,” Gangen said.
Mayor of Ungungudlovu, Nzi Zuma Nxamalala, said he appreciated the visit by the Deputy Minister.
“As we do in our work, we keep on reflecting back to remind ourselves of our past. We appreciate being part of the celebrations [of] our democracy,” Nxamalala said.
On Tuesday, the Deputy Minister and a delegation visited the Open Gate Special School, a school with special educational needs for the disabled.
The visit to the school coincides with the commemoration of Disability Rights Awareness Month (DRAM) which is observed from 3 November to 3 December 2024.
The Deputy Minister also visited households that benefitted from Set-Top-Box installations and mobilised qualifying community members to apply for the set top boxes.
President Cyril Ramaphosa is expected to lead the second DDM Presidential Imbizo under the Government of National Unity (GNU), in Umgababa, at the Umnini Sportsfield in Ward 98 on Friday.
Cabinet adopted the DDM in August 2019.
The DDM is an integrated planning model for cooperative governance which seeks to be a new integrated, district-based, service delivery approach aimed at fast-tracking service delivery. It also seeks to ensure that municipalities are adequately supported and resourced to carry out their mandate. – SAnews.gov.za
Edwin
Wed, 11/06/2024 - 15:51
The investment platform under scrutiny since April has had its license suspended
Africa's abundant energy potential, coupled with Europe's ambitious production and import goals, have resulted in the development of a burgeoning global green hydrogen economy. Africa currently has 125 GW of hydrogen capacity with major contributors including Egypt, Mauritania, South Africa, Morocco, Namibia and Kenya – a group of nations that form part of the Africa Green Hydrogen Alliance group.
A dedicated panel session titled, Hydrogen Summit: Unleashing the African Green Hydrogen Revolution, at this year's African Energy Week: Invest in African Energies 2024 conference explored the significant role that hydrogen plays in the future of African energy. The panel noted that the EU market represents the largest commercial opportunity for hydrogen projects on the continent, with international collaboration being highlighted as a key strategy towards driving the sector forward.
“We need to see more countries establish key terms to create a platform for knowledge sharing,” stated Africa Green Hydrogen Alliance liaison Joyce Kabui, adding, “The support here depends on the scale of collaboration in the green hydrogen space.”
Mauritania has emerged as one of the world's top green hydrogen investment destinations. The country has effectively captured 1.5% of the global hydrogen market with 3 of its major hydrogen developments – the 30 GW AMAN development, 35 GW Megaton Moon project and 10 GW Project Nour development by renewable energy developer Chariot Energy Group, which collectively contribute to the country's objective of producing 12.5 million tons of green hydrogen annually by 2035.
“In Mauritania, we've managed to prove renewable resources and understand energy profiles available from natural resources to supply the value chain,” stated CWP Global Vice President of Project Development Africa, Margaret Mutschler, adding, “We've conducted environmental studies and baseline studies in countries like Mauritania that is relevant in other countries as well.”
Meanwhile, South Africa's government has recognized green hydrogen as a key aspect of the country's just energy transition. It has introduced the Hydrogen Society Roadmap to serve as the industry's framework to facilitate large-scale investments in the sector.
“If you look at hydrogen as a source, it's underpinned by the hydrogen roadmap that the government has begun to drive,” stated General Manager of Energy Projects at South Africa's state-owned Central Energy Fund, Sifiso Msabala. “There is a focus on hydrogen in this country and we understand the issues that are inhibiting progress. We know that South Africa is a great country to contribute to the global hydrogen industry.”
Louis Andzouono, Head of Database Department at the Republic of the Congo's state-owned Société National des Pétroles du Congo (SNPC), expressed his country's commitment to driving a sustainable green hydrogen sector. The parastatal company received authorization from the government last year to explore the development of a green hydrogen market in the country.
“The SNPC is confident that its promotion of green hydrogen will succeed and thrive,” Andzouono stated, adding, “We assume the missions and projects of the state will guarantee a serene future for the Congolese people through structure and eco-friendly projects.”
The panelists noted that supportive policies and international collaboration will bolster Africa's green hydrogen economy, potentially attracting investments and improving resource capacity.
Distributed by APO Group on behalf of African Energy Chamber.
Mashatile chairs inaugural meeting of newly appointed Human Resource Development Council
Deputy President Paul Mashatile has stressed the importance of reigniting efforts to drive human resource development initiatives, so as to urgently tackle the three critical challenges of unemployment, poverty and inequality.
The Deputy President was speaking as the Chairperson of the Human Resource Development Council (HRDC), where he led the inaugural meeting of the newly appointed council on Tuesday.
The newly appointed HRDC members include representatives from government, organised labour, organised business, as well as civil society.
According to the Deputy President’s office, the council’s main strategic mandate is to advise government on initiatives to develop the necessary skills to meet labour market demands over the next five years, ending in 2029.
“We look forward to your invaluable contribution and are convinced that your unique talents, abilities, and experiences will further assist to re-energise efforts to realise the strategic goals of the HRDC,” Mashatile said.
The meeting received presentations on the reconceptualised HRD Strategy and the Master Skills Plan, which will anchor policy documents for all human resource development interventions in the country.
The plan outlines four strategic, outcome-oriented goals. These include enhancing early learning and educational outcomes, as well as increasing the employability of youth, who are not engaged in education, employment, or training (NEET).
The plan also highlights the need to enhance the responsiveness of the Post-School Education and Training (PSET) system to skill demands and improve governance, leadership and management within the public sector.
In addition, the meeting received updates on the establishment of the Just Energy Skills Forum, which is aimed at contributing to the transformation of the energy landscape in the country, in line with the dictates of climate change.
This follows the commitment made by government to launch the Just Energy Transition (JET) Investment Plan 2023-2027 in 2022, where President Cyril Ramaphosa mandated the Presidential Climate Commission to engage with various key stakeholders in developing common approaches for South Africa.
A key element for the implementation of the JET Skills Portfolio is the establishment of a National Skills Advisory Forum, which is planned to be launched at the 5th HRDC Summit scheduled to take place this month.
The 5th HRDC Summit will bring together civil society groups, government, labour and business to deliberate on critical skills challenges facing the country.
The summit’s theme will focus on developing the emotional, intellectual and technical capabilities needed to succeed. The gathering will also touch on the reconceptualised HRD Strategy and the Master Skills Plan, as well as the launch of the JET National Skills Advisory Forum.
The summit will also discuss building foundations for learning and skills for a transformed economy, as well as building a capable State.
The HRDC is a national, multi-stakeholder advisory body chaired by the Deputy President and managed by the Ministry of Higher Education and Training.
The HRDC was established in 2010 to facilitate conditions that promote the optimal participation of all stakeholders in the planning, stewardship, monitoring and evaluation of HRD activities in the country.
One of the council’s key responsibilities is to build the HRD base required to ensure a prosperous and inclusive South African society and economy, focusing on the development of strategy. – SAnews.gov.za
Gabisile
Wed, 11/06/2024 - 10:48
Arts and creative industries can drive behavioural change
The arts and creative industries hold the unique power to build empathy and drive behavioural change, says Deputy Minister in the Presidency responsible for Women, Youth and Persons with Disabilities, Mmapaseka Steve Letsike.
Letsike was speaking at a stakeholder engagement on the empowerment of women, youth and people with disabilities held at The Playhouse Company in Durban on Tuesday.
Held under the theme: “Addressing social ills through the creative industry”, the stakeholder engagement addressed the creative industry as a vehicle to highlight the impact of violence against people with disabilities, sex workers, lesbian, gay, bisexual, transgender, queer/questioning, and intersex (LGBTQI) individuals, and women and children, among others.
The engagement demonstrated other opportunities available to address gender-based violence and femicide (GBVF) in the communities through sports, arts and culture.
In her address, Letsike said the arts and creative industries hold the unique power to influence social consciousness, build empathy and drive behavioural change.
“Music, theatre, visual arts and storytelling can reach the hearts and minds of audiences, raising awareness and influencing behaviour in ways that traditional methods sometimes fall short of achieving.
"The creative industry also plays a vital role in educational prevention and intervention by using different art forms as vehicles for teaching respect, empathy, and non-violence,” Lestsike said.
Letsike said producing artworks that convey the harsh realities of discrimination and creating powerful theatre productions that depict stories of resilience, the arts can foster crucial conversations around what it means to be a healthy society and nation.
She said the arts can shift societal mindsets and challenge outdated norms that perpetuate violence and discrimination against women, girls and LGBTQIA+ people.
“In this way, the industry becomes not just observers but active participants in reshaping the narrative of our nation. Further, the wide reach of the creative arts fraternity offers long-term, comprehensive, adaptable, context-specific, and holistic approaches to prevention that target all people living in South Africa through its messaging,” Letsike said.
The Deputy Minister underscored the need for citizens to adopt an all-of-society approach, where every individual, community and institution takes an active role toward addressing the country’s social challenges.
She said every South African must understand that ending social challenges is a national obligation for all.
“This is the message that must be carried far and wide by the cultural and creative industries,” the Deputy Minister said.
Letsike encouraged every individual in the industry to continue their “astounding” work that touches the hearts and minds of the nation, and has the potential to turn the tide against violence directed at women, children, LGBTQIA+ people and people with disabilities, and eliminate the social acceptance of all forms of discrimination.
Continues to address GBVF
Letsike said government continues with efforts toward addressing GBVF through the implementation of the National Strategic Plan (NSP) on GBVF.
“The NSP represents our unified, multi-sectoral approach to addressing this scourge across all levels of society. We have also launched the National Comprehensive GBVF Prevention Strategy, which broadens the scope of our interventions and places particular focus on preventive measures to stop GBVF before it starts.
“To date, these frameworks have led to the establishment of improved survivor support services, enhanced legal frameworks, and strengthened partnerships with civil society and the private sector.
"We continue to work closely with our partners, including community organisations and faith-based groups to ensure that our interventions reach every corner of society,” the Deputy Minister said.
The event was held as a build-up to the District Development Model Presidential Imbizo that will take place on Friday, where President Cyril Ramaphosa will assess service delivery and engage with the people at Umnini Sports Field in Umgababa, south of Durban. – SAnews.gov.za
GabiK
Wed, 11/06/2024 - 11:27
A panel of experts at Africa Energy Week (AEW): Invest in African Energies 2024 emphasized the critical importance of stakeholder engagement and legal considerations in farm-in and farm-out agreements during a workshop titled, ‘Mastering Energy Investment Transactions in Africa'.
Moderated by Zion Adeoye, CEO and Managing Partner of CLG on Monday at the AEW: Invest in African Energies 2024 pre-conference session, the panellists shared insights into essential contractual arrangements in the oil and gas industry for facilitating exploration and development activities and allowing companies to share resources, risks and expertise.
Speaking during a Mastering Energy Investment transaction in Africa: a critical guide for general counsel masterclass, Jude Kearney, managing partner of Asafo & Co noted that there were several critical factors that played a role in allowing for meaningful engagement in farm-in farm-out agreements. “There are literally a thousand considerations a farmor or farmee must make before entering a transaction, but they must realize that they are not alone in their decision-making.”
“It is crucial to engage with local stakeholders – government, prospective service providers, potential employees – early to understand the market dynamics and expectations. This includes assessing local content requirements and corporate social responsibility expectations. The government is your ultimate stakeholder, as they hold the authority to approve or deny transactions,” Kearny added.
Participants underscored the necessity of thorough legal due diligence before entering negotiations. This includes understanding local laws, tax obligations and regulatory requirements to avoid potential pitfalls. Grace Yella, CLG director for tax and legal in Cameroon, emphasised starting with due diligence to lobby for favourable responses from government administrations.
Kearny concurred, “Consider policies that exist in some of the countries, such as Nigeria and South Africa, which have very strong local content regulations. If you are not aware of these regulations, and have not considered them, then your contract is not perfect,” he added.
CLG Equatorial Guinea managing partner Manuel Oliveira agreed, adding that meeting these regulations were no longer a box-ticking exercise. “Local content is critical for these transactions, there are obligations regarding training local people and to give opportunities to local entities to participate in the economy,” he said, adding that local advisors were also able to navigate the complexities of legislation of this nature.
Tax considerations were also a focal point of the discussion. Daoudou Mohammad, Congo director of CLG, noted that understanding tax obligations is crucial, especially as regulations can change rapidly. Engaging tax consultants early could ensure compliance and identify potential exemptions.
As case study, Mohammad cited the oil and gas taxation decree in the Republic of the Congo having undergone several revisions, which significantly impacts how companies approach their investments and compliance strategies. In 2001, a decree was issued that provided tax exemptions for oil and gas activities, which were included in the terms and conditions of various contracts.
However, subsequent changes in government policy led to the issuance of a new decree that made these activities taxable. This shift raised concerns among investors about the stability and predictability of the regulatory environment. The decree was later suspended following constructive dialogue between government officials and tax operatives, indicating a willingness to find a compromise between government revenue needs and the interests of oil and gas entities.
Similarly, changes in Ghana's oil and gas laws that affected previously favourable tax terms have also changed. “The new Production Sharing Contract focuses more on tax implications than legal terms, highlighting the need for tax experts to be involved in negotiations to avoid unexpected costs,” said Onyeka Ojogbo, CLG deputy managing partner.
“This evolving nature of tax regulations necessitates that companies remain vigilant about compliance to avoid unexpected liabilities, especially given that VAT is now applicable to oil and gas companies, although some activities may still be exempt,” concluded Mohammad.
Distributed by APO Group on behalf of African Energy Chamber.
Luvuyo Vimba died after a clash with police
