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New Development Bank key to progress in developing countries

Location: News

New Development Bank key to progress in developing countries

Minister of Finance Enoch Godongwana has called for visible thought leadership on how the New Development Bank (NDB) can play a more catalytic role in the achievement of Sustainable Development Goals (SDGs) in developing and emerging markets.

The SDGs are a universal call to action to end poverty, protect the planet, and ensure that by 2030 all people enjoy peace and prosperity.

“The Bank must be unwavering in its commitment to the SDGs as it remains the most relevant benchmark for the development priorities of developing countries. Therefore, as we grow and strengthen the NDB as an institution, we must not lose sight of its developmental mandate. 

“There is a need to address global challenges such as geopolitical challenges, which impacts multilateralism, escalating climate stresses, widening economic and social divides, and challenges we face at a national level. 

“This includes poverty, inequality, and unemployment that continue to plague our societies,” Godongwana said on Friday. The Minister was addressing the NDB Annual meeting in Cape Town.

The Minister noted the significant progress that has been made by the Bank since being operational.

“[However], we must recognise that there is still much work to be done. As the 2030 Agenda draws near, increased momentum towards achieving the SDGs is imperative. This is a critical time for global development partners to come together and convey a strong message on the broad development agenda,” he said.

The Minister said progress on the SDGs will require targeted investment. 

“Access to concessional development finance for developing countries is imperative to ensure accelerated progress in addressing development challenges and achieving inclusive growth that creates economic opportunities for all.

“In addition, there is a need for sizeable increases and greater stability in the flow of private capital investments. The NDB can play an essential role in mobilising private investment and ensuring it flows where it is needed most.

“The Bank must implement innovative financing instruments to crowd-in private sector participation. This should be accompanied by technology transfer and capacity building support as multidimensional enablers to accelerate the implementation of the SDGs, especially in key areas such as renewable energy, infrastructure development, digital access and job creation,” Godongwana said.

He said investment in infrastructure is central to the achievement of the development goals. 

“Infrastructure is an enormous economic multiplier, providing dividends for an economy long after the infrastructure has been built. We believe that the NDB’s activities in developing and emerging markets will assist in addressing the large infrastructure financing gap that has been impeding economic growth and development, particularly in Africa. 

“In this slow growth environment, where fiscal and monetary policy is limited, public and private role players need to collaborate to support growth.

“To this end, we look to the NDB to provide solutions aimed at de-risking infrastructure projects through its financial instruments to attract private capital,” the Minister said.

This will support infrastructure projects and provide technical assistance in designing innovative funding models and institutional arrangements that could accelerate infrastructure investments at a country-level.

“However, if the Bank is to continue advancing the interests of the developing world and address challenges such as renewable energy, infrastructure development, digital access and job creation then NDB must make a concerted effort to speed-up disbursements of approved projects.

“As more African countries become members of the NDB we believe that the Bank can play a very instrumental role in the provision of infrastructure and addressing its infrastructure deficit,” he said. -SAnews.gov.za

nosihle
Fri, 08/30/2024 - 11:44

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Read moreNew Development Bank key to progress in developing countries

Government places the transfer of land to women under the spotlight

Location: News

Government places the transfer of land to women under the spotlight

Minister in the Presidency responsible for Women, Youth and Persons with Disabilities, Sindisiwe Chikunga, has committed the department to prioritise the transfer of land, wealth and income earning ability to organised women.

Addressing the Mpumalanga Provincial Legislature Women’s Parliament on the Economic and Social Empowerment of Women on Friday, Chikunga said the historic treatment of women as minors who are incapable of owning property, continues to reproduce itself today through landlessness and its related disadvantages.

“Through integrated farming value-chain cooperatives as well as a cooperative banking institution, we are determined to see to it that women take ownership and control of land for productive and commercial purposes.

“We will ensure that women and youth have access to land for agricultural purposes and related economic activities. Land is wealth, wealth that has income earning potential,” Chikunga said.

During the Opening of Parliament Address (OPA) last month, President Cyril Ramaphosa announced massive plans to ramp up a green manufacturing sector over the next five years and mentioned Mpumalanga as a priority.

Chikunga said the department will ensure that women are at the centre and do not remain in the margins of these projects.

Emerging Industrialists Accelerator Programs

The Minister said the department has conceptualised a series of Emerging Industrialists Accelerator Programs and intends to rally all relevant stakeholders, particularly state-owned entities (SOEs), and industry associations behind their implementation.

“These programs will target emerging women industrialists in key sectors, including energy security, the maritime, defence and aerospace industries, and agriculture, among others. The recent Sola Mamas initiative will be scaled up and strengthened to reach more women.

“Participating emerging industrialists will work alongside experienced industry associations, receiving support from ideation through to product development, financing, market access, and commercialization pathways,” she explained.

Emerging Industrialists Fund

To support these initiatives, the Minister said the department will advocate for the establishment of an Emerging Industrialists Fund, dedicated to supporting beneficiation and transforming young people’s ideas into productive economic activities.

The Minister emphasised that while investment must come from both the public and private sectors, the state must take the lead as the investor of first resort.

“For example, the tourism industry in Mpumalanga has limitless potential. We need to channel our young women to this industry, not just as employees but owners and operators of tourism infrastructure.”

Enrolment of National Youth Service recruits

Chikunga also announced that work is underway to ensure that the first round of the National Youth Service (NYS) recruits are enrolled before the end of the financial year.

“A minimum of 50% of the beneficiaries of this program will be women, including unemployed graduates and those who have completed Grade 12 but are currently sitting at home. Here in Mpumalanga, we must make sure that the youth of this province, particularly rural youth and those in farming communities, are not left behind.”

Launched by Deputy President Paul Mashatile in May this year, the South African National Defence Force (SANDF)-led NYS is a special project that will be piloted and implemented in the country’s poorest districts, where most youngsters are unemployed.

READ | Mashatile launches SANDF-led youth initiative to create jobs, entrepreneurship

The project is targeting no less than 125 000 youth in its first year of rollout.

Chikunga said through this programme, the department will be rallying industry associations, including SOEs, universities, the Council for Scientific and Industrial Research (CSIR), and participating sister departments behind a nationally coordinated and de-siloed effort to combat youth unemployment.

“We will be training emerging industrialists in the design, manufacturing, piloting and applications of Unmanned Aerial Vehicles (UAVs/drones) from small drones used to inspect borders, to large fixed-wing UAVs applied in mining, construction, oil and gas and related fields,” Chikunga said. – SAnews.gov.za 

GabiK
Fri, 08/30/2024 - 14:33

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Read moreGovernment places the transfer of land to women under the spotlight

Transnet, NDB sign agreement to improve SA freight logistics

Location: News

Transnet, NDB sign agreement to improve SA freight logistics

Transnet has signed a R5 billion loan agreement with the New Development Bank (NDB) in support of the public entity’s improvement and modernisation efforts in freight rail.

The agreement was signed during the NDB’s ninth annual meeting held in Cape Town this week.

Transnet Group Chief Executive, Michelle Phillips, said: “This investment is important for Transnet, as we accelerate implementation of the Recovery Plan and economic reforms. 

“The modernisation programme will enhance our operational capabilities and contribution to the growth and competitiveness of the economy. We are grateful for NDB’s support and look forward to a successful collaboration”.

NDB President Dilma Rousseff said the bank is “delighted to partner with Transnet in this transformative initiative”. 

“This loan underscores NDB’s commitment to supporting sustainable development and economic growth in South Africa. By modernising the freight rail sector, we aim to facilitate more efficient logistics operations that will benefit the entire region and align with our goal of investing in a sustainable future,” Rousseff said.

The freight rail and logistics company explained in a statement that the agreement is aimed an enhancing efficiency and capacity for freight rail systems.

READ | Government working 'urgently' to resolve logistics challenges

“The improvement and modernisation of freight rail sector program includes rail network infrastructure renewal, locomotive overhauls, and wagon fleet renewal. 

“This program is expected to restore freight rail volumes in South Africa, improving operational performance and reliability, and contributing to a sustainable future,” Transnet said. – SAnews.gov.za

NeoB
Fri, 08/30/2024 - 12:24

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Read moreTransnet, NDB sign agreement to improve SA freight logistics

Universities Need to Apply More Scrutiny When Appointing Vice Chancellors and Council Members

Location: News

Republic of South Africa: The Parliament
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The Portfolio Committee on Higher Education and Training has called upon universities to apply greater scrutiny when appointing vice chancellors and council members and should ensure that appointees have a high regard for ethics. The committee was briefed today on progress made by the Vaal University of Technology (VUT) and Mangosuthu University of Technology (MUT) in dealing with various administrative challenges.

The briefing concerning the state of affairs at Vaal University of Technology now that it is no longer under administration, while the Mangosuthu University of Technology is still under administration. The committee welcomed the progress made by VUT in appointing a vice chancellor and chancellor, however, it remains concerned about the continued high number of vacant positions at senior management level, especially the post of registrar.

The committee expressed concerns about the state of affairs in student residences, which has forced many students to opt for private accommodation. This is causing the university to lose out on much-needed revenue. The committee further called upon VUT to report contractors who do not finish infrastructure development projects to the Department of Higher Education and Training (DHET) so that these contractors are blacklisted from any further involvement in projects in the post-school education sector. The committee further resolved that the university should consider using the services of the Independent Electoral Commission for their Student Representative Council elections and that these elections should be held manually.

Meanwhile at the Mangosuthu University of Technology, the committee welcomed the appointment of Professor Nokuthula Sibiya as the first female vice chancellor in the university's 45-year history. The committee further welcomed assurances that the remaining senior posts at MUT will be filled by the end of September.

The DHET told the committee that recent suspensions at MUT indicate a culture of victimisation, however the administrator seems to be on course in turning the institution around.

The committee chairperson, Mr Tebogo Letsie, said: “We need to move away from a period of independent assessors and it can't be that predominantly black-run institutions are the ones that always fall under administration.”

Mr Letsie said the committee plans to have a meeting with the National Student Financial Aid Scheme, with a focus on student accommodation challenges to find solutions to improve the services offered to students.

Distributed by APO Group on behalf of Republic of South Africa: The Parliament.

Read moreUniversities Need to Apply More Scrutiny When Appointing Vice Chancellors and Council Members

Call to place young people in critical infrastructure projects

Location: News

Call to place young people in critical infrastructure projects

Minister in the Presidency responsible for Women, Youth and Persons with Disabilities, Sindisiwe Chikunga, has emphasised that every project, from ideation to implementation, must include the upskilling, reskilling, and placement of young people, through emerging industrialist apprenticeships.

Chikunga was speaking at the National Youth Development Agency (NYDA) and the Presidential Youth Employment Intervention (PYEI) learning event on youth unemployment crisis and gender equity.

“The country is currently facing a situation where serious infrastructure projects, from small harbours development, rail, road, and rural bridge construction to human settlements projects, water sanitation projects, and energy, are in [the] pipeline. It is about time that we insist that no labour is imported for these projects while unemployed graduates are sitting at home,” Chikunga said at Thursday’s event.

Putting in place sustainable interventions

Chikunga underscored a need for strategies to cultivate all of the country’s resources in a coherent and purposeful effort and put forward interventions that can be sustained into the future.

The Minister argued that South Africa cannot have youth hopping from one learnership to another, and from one internship to another.

She emphasised the need for an emerging industrialist programme that reaches every corner of the country.

“These interventions should, in line with our DDM (District Development Model), be implemented at national, provincial and local levels by government, parastatals, organisations within civil society and the private sector working within the framework of reconstruction and development.

“In order to respond in a more purposeful way, we are called upon to transcend traditional boundaries and do away with siloed interventions and adopt a more integrated and coordinated approach,” Chikunga said at the gathering held in Sandton, Johannesburg.

According to the Minister,  a lack of industrial dynamism, youth unemployment, the high cost of living, economic inactivity, violent crime, and a lack of social cohesion, are all multidimensional challenges that require what economists refer to as a “Mission-Oriented Approach” to development.

“We are required to set ambitious goals; foster creative public-private collaborations; approach the state as a patient investor-of first resort; and develop dynamic capabilities to adapt and steer the mission as it evolves.

“The NYDA, for example, must be transformed into a capability that is able to gather market and economic intelligence about the future of industry and work; identify emerging strategic opportunities; measure (cross sectoral) impact of policies; enhance our ability to spot risks/opportunities; increase our ability to anticipate and adapt; and support new agents of systemic socio-economic change.”

Research capability 

She also challenged the NYDA to have a well-resourced research capability that is able to provide situational awareness.

“[The NYDA] must address the questions such as: in light of the youth question, where are we, where should we be going, and what is likely to get in our way [both threats and opportunities], as we navigate to that collectively desired destination.

“What adjustments, if any, do we need to make to deal with the threats and make the most of opportunities? Through knowledge management, we must be able to anticipate, respond, and navigate uncertainties and potential crises,” Chikunga said.

In efforts to attract manufacturing, promote beneficiation and drive industrialisation, Chikunga stressed a need to ensure that women and youth have access to land for agricultural purposes and related value chains. She also stressed the need for an emerging industrialist fund to turn young people’s ideas and innovation into productive economic activities.

She also spoke of a need to engage with all unemployed graduates, listening to their experiences, understanding their needs, and working with them to pursue sustainable opportunities; as well as a need for a cap on the minerals that leave as unprocessed rocks.

‘We need to leverage public procurement to provide off-take for youth and women owned business. We can only do this if we leverage our convening powers as government,” Chikunga said. – SAnews.gov.za
 
 

GabiK
Thu, 08/29/2024 - 13:52

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Government remains committed to establishing Sovereign Wealth Fund

Location: News

Government remains committed to establishing Sovereign Wealth Fund

President Cyril Ramaphosa says government remains committed to creating a Sovereign Wealth Fund which will benefit future generations, however, the conditions do not currently exist to establish an immediate one.

The President was responding to questions for oral reply in the National Assembly in Parliament, Cape Town on Thursday. This was his first such session under the Government of National Unity.

Member of Parliament Joseph Maswanganyi asked President Ramaphosa how government will develop the Sovereign Wealth Fund and ensure that its development benefits the majority of the people of the Republic.

“We are committed to create a Sovereign Wealth Fund and we believe that the architecture that we are putting together now will be able to assist us in building a Sovereign Wealth Fund. This we will be doing for future generations because it takes quite a while to build a facility like a Sovereign World Fund.

“While conditions do not currently exist for the immediate establishment of a Sovereign Wealth Fund, this is an objective which we should continue to work towards. Such a fund could help to ensure that the national wealth of our country is effectively used to support economic and social development for years to come,” the President said.

On whether the fund will benefit the majority of the people of South Africa, President Ramaphosa said the fund is meant to achieve precisely that purpose.

“The Sovereign Wealth Fund should be seen as a contributor to economic development and as a vehicle through which the state can invest money that is in surplus and can be utilised for various economic projects. It could be specific economic sectors that it focuses on and could also be funding, or surplus money utilised to invest in other countries and companies.

“The fund in my view is the way to go and we now have better architectural opportunity to be able to do so rather than just to continue talking about it without knowing exactly how it will source money and how it will be structured. 

“Setting up a Sovereign Wealth Fund is a project we will work on as we improve our state-owned enterprises (SOEs),” the President said.

Explaining how the Sovereign Wealth Fund will work, he said they are by nature often used by many countries across the world to harness national resources for economic as well as for social development. 

He added that they are often used to preserve and to grow a country's wealth for the benefit of future generations. 

A document published in December of 2021 by the National Treasury described some of the features of a Sovereign Wealth Fund, saying that such a fund is often a state-owned company that would accumulate resources for capital investment through a dedicated revenue instrument or instruments.

“It will then invest these resources in different asset classes. Countries with Sovereign Wealth Funds - there is quite a number of them around the world - often maintain surpluses in their current accounts and balance sheets or balances, this provides the fiscal space to establish a Sovereign Wealth Fund.

“At present, with our current fiscal position, with substantial current accounts and budget deficits it is currently not the most opportune or favourable time for us to establish the fund, however, there are a number of options that are under consideration,” the President said. 

He emphasised that funding for service delivery remains under pressure, with additional resources required to improve the recruitment of key personnel such as police and teachers. 

He said that the country also needs to increase investment in the maintenance of basic service infrastructure.

“In light of these realities, the most appropriated policy path for us is to use any additional resources at this moment to reduce the debt burden that our country carries and improve the delivery of services. 

Among other questions, the President also briefed Parliament on steps government is taking to encourage private sector investment to improve ports, railways and other infrastructure to drive economic growth. – SAnews.gov.za

 

DikelediM
Thu, 08/29/2024 - 15:25

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Read moreGovernment remains committed to establishing Sovereign Wealth Fund

Government remains committed to establish a Sovereign Wealth Fund

Location: News

Government remains committed to establish a Sovereign Wealth Fund

President Cyril Ramaphosa says government remains committed to creating a Sovereign Wealth Fund which will benefit future generations, however, the conditions do not currently exist to establish an immediate one.

The President was responding to questions for oral reply in the National Assembly in Parliament, Cape Town on Thursday. This was his first such session under the Government of National Unity.

Member of Parliament Joseph Maswanganyi asked President Ramaphosa how government will develop the Sovereign Wealth Fund and ensure that its development benefits the majority of the people of the Republic.

“We are committed to create a Sovereign Wealth Fund and we believe that the architecture that we are putting together now will be able to assist us in building a Sovereign Wealth Fund. This we will be doing for future generations because it takes quite a while to build a facility like a Sovereign World Fund.

“While conditions do not currently exist for the immediate establishment of a Sovereign Wealth Fund, this is an objective which we should continue to work towards. Such a fund could help to ensure that the national wealth of our country is effectively used to support economic and social development for years to come,” the President said.

On whether the fund will benefit the majority of the people of South Africa, President Ramaphosa said the fund is meant to achieve precisely that purpose.

“The Sovereign Wealth Fund should be seen as a contributor to economic development and as a vehicle through which the state can invest money that is in surplus and can be utilised for various economic projects. It could be specific economic sectors that it focuses on and could also be funding, or surplus money utilised to invest in other countries and companies.

“The fund in my view is the way to go and we now have better architectural opportunity to be able to do so rather than just to continue talking about it without knowing exactly how it will source money and how it will be structured. 

“Setting up a Sovereign Wealth Fund is a project we will work on as we improve our state-owned enterprises (SOEs),” the President said.

Explaining how the Sovereign Wealth Fund will work, he said they are by nature often used by many countries across the world to harness national resources for economic as well as for social development. 

He added that they are often used to preserve and to grow a country's wealth for the benefit of future generations. 

A document published in December of 2021 by the National Treasury described some of the features of a Sovereign Wealth Fund, saying that such a fund is often a state-owned company that would accumulate resources for capital investment through a dedicated revenue instrument or instruments.

“It will then invest these resources in different asset classes. Countries with Sovereign Wealth Funds - there is quite a number of them around the world - often maintain surpluses in their current accounts and balance sheets or balances, this provides the fiscal space to establish a Sovereign Wealth Fund.

“At present, with our current fiscal position, with substantial current accounts and budget deficits it is currently not the most opportune or favourable time for us to establish the fund, however, there are a number of options that are under consideration,” the President said. 

He emphasised that funding for service delivery remains under pressure, with additional resources required to improve the recruitment of key personnel such as police and teachers. 

He said that the country also needs to increase investment in the maintenance of basic service infrastructure.

“In light of these realities, the most appropriated policy path for us is to use any additional resources at this moment to reduce the debt burden that our country carries and improve the delivery of services. 

Among other questions, the President also briefed Parliament on steps government is taking to encourage private sector investment to improve ports, railways and other infrastructure to drive economic growth. – SAnews.gov.za

 

DikelediM
Thu, 08/29/2024 - 15:25

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Read moreGovernment remains committed to establish a Sovereign Wealth Fund

Nzimande calls for urgent need to transform South Africa’s science landscape

Location: News

Nzimande calls for urgent need to transform South Africa's science landscape

Science, Technology and Innovation Minister, Professor Blade Nzimande, has called on the National Advisory Council on Innovation (NACI) to convene a summit to discuss transformation within South Africa’s national system of innovation (NSI).

Speaking in Pretoria at the launch of the 2024 Science, Technology and Innovation (STI) Indicators Report, Nzimande said that the summit should bring together stakeholders to address the remaining barriers to achieving a fully transformed innovation system.

Despite the report highlighting increases in the numbers of women and Black academic staff at higher education institutions in South Africa, the Minister said there is still much room for improvement. 

“We must recognise the ongoing challenges in transforming our STI landscape. We need to ensure that our NSI truly reflects the demographics of our nation, particularly in terms of race, class and gender,” he added. 

According to the report, university enrolments in South Africa increased by 12% between 2012 and 2021, with a 41% rise in the number of graduates.

Black African academic staff representation rose to 43%, marking substantial progress in gender and racial equity. 

Meanwhile, scientific publications increased from 3 693 in 2000 to 27 208 in 2022, securing a global share of one percent.

Diversity among authors has also improved significantly, with the percentage of women authors rising from 32% in 2005 to 45% in 2022, and contributions from black academics growing from under 15% to over 52%. 

The Minister said the ongoing transformation of the NSI is about ensuring that the benefit of innovation is shared equitably across society. 

This includes enhancing access to science and technology education for young people from working-class and poor backgrounds to ensure they can become future scientists and innovators. 

However, he said the positive increases in university enrolments and graduates, coupled with the growing representation of women and Black African academic staff, were testament to government’s commitment to building a more equitable and inclusive scientific community.

The National Research Foundation, which celebrated its 25th anniversary last week, said that, among 4 212 rated researchers in South Africa, Black South Africans account for 38%. 

Nzimande believes this was testimony to the commitment to transform the country’s research landscape. 

The STI report, titled ‘Measuring science, technology and innovation to guide their contribution to socio-economic development’, highlights South Africa’s advancements and the challenges that remain. 

Commissioned by NACI, the report provides data and insights that inform policy decisions by government, helping to shape strategies aimed at improving the country’s STI landscape. 

The report reveals that South Africa invested R2.4 billion in national research infrastructure and R1.2 billion in the National Equipment Programme, strengthening research capabilities across the country. 

The nation’s e-Government Development Index improved from 0.49 in 2012 to 0.74 in 2022, with its global ranking jumping from 101 to 65 out of 193 countries, reflecting significant progress in digital inclusion. 

Manufacturing exports increased by 11.7% between 2021 and 2022, with medium and high technology (MHT) exports showing strong growth. 

The sector saw a notable rise in patent filings and publications in emerging technologies, including digitalisation and nanotechnology, indicating a robust commitment to innovation.

The report identified ongoing challenges, including low research and development (R&D) intensity, declining international patent applications, and reduced venture capital investment. 

South Africa’s patenting activity has declined significantly over the past few years. 

Domestic patents granted decreased from 694 in 2019 to 513 in 2022, while patent applications abroad dropped from 1 457 in 2020 to 968 in 2022. 

Additionally, patents granted by the European Patent Office decreased from 80 in 2020 to 38 in 2022. 

However, there was a slight increase in patents granted by the US Patent and Trademark Office, from 125 in 2021 to 150 in 2022. 

“As we move forward, it is imperative that we make targeted and sustainable policy, institutional, and resource interventions to address the challenges identified in the 2024 STI Indicators Report. Our goal is to place science, technology, and innovation at the core of South Africa's national development agenda, the Minister. 

CEO of NACI, Dr Mlungisi Cele, underscored the importance of addressing these challenges with a comprehensive strategy. – SAnews.gov.za
 
 

Gabisile
Wed, 08/28/2024 - 15:23

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Hlabisa outlines vision for strengthened local government

Location: News

Hlabisa outlines vision for strengthened local government

In an address to the National Council of Provinces (NCOP) on Wednesday, Minister of Cooperative Governance and Traditional Affairs, Minister Velenkosini Hlabisa, shared his vision for a robust and resilient local government system. 

The Minister participated in the Three Sphere Planning session with the theme: ’Towards an Oversight Agenda for the Seventh Parliament: Delineating Key Oversight Priorities for the NCOP in the Seventh Parliament’.

The session forms part of the NCOP’s objective to promote cooperative governance and intergovernmental relations and ensure that the three spheres of government work together when they fulfil their constitutional functions.

The Minister emphasised local government’s key role in delivering services and as a foundation for democratic governance, social development, and community empowerment.

Highlighting the importance of Sections 152, 153, and 154 of the Constitution, Hlabisa reiterated that municipalities must focus on meeting community needs, promoting economic and social development, and actively engage in national and provincial initiatives.

“He stressed that national and provincial governments have a duty to support municipalities to ensure effective governance and sustainable development,” said the Department of Cooperative Governance and Traditional Affairs  in a statement.

Hlabisa also noted the recent Memorandum of Understanding (MoU) between the South African Local Government Association (SALGA) and the National House of Traditional and Khoisan Leaders.

This partnership aims to strengthen collaboration between traditional leaders and municipal councils, enhancing governance in rural areas.

“This MoU marks a significant step towards better communication and mutual respect between municipal councillors and traditional and Khoi-San leaders,” the Minister said. 

He also presented the State of Local Government Report 2023, noting progress in reducing the number of distressed municipalities and increasing those classified as stable. 

However, he acknowledged that challenges remain, particularly in financial management and infrastructure.

Municipal infrastructure

Turning to municipal infrastructure, Hlabisa acknowledged ongoing challenges and highlighted the support provided by the Municipal Infrastructure Support Agent (MISA). 

Despite the long road network and improvements in electricity access, issues such as deteriorating water and sanitation infrastructure and inadequate waste management persist.

“Support through MISA and increased funding are crucial, but we must also address the underlying issues impacting infrastructure performance.

“Our focus will be [on] improving infrastructure conditions, particularly in distressed municipalities, and integrating climate change adaptation into planning.”

Hlabisa concluded with a call for continued collaboration and commitment to overcoming challenges. 
“Together, we will build a local government system that is resilient, responsive, and capable of meeting the needs of all South Africans,” he said. – SAnews.gov.za 
 

Gabisile
Thu, 08/29/2024 - 10:46

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Tenders issued to appoint independent investigator into Telkom Towers

Location: News

Tenders issued to appoint independent investigator into Telkom Towers

Public Works and Infrastructure Minister Dean Macpherson says his department has issued tenders for the appointment of an independent investigator to, within 60 days following their appointment, provide a detailed report on what went wrong with the Telkom Towers building in Pretoria.

According to Macpherson, the report should detail who is to blame and what will be the best solution moving forward for the Telkom Towers to limit further wastage of taxpayer money.

Earlier this month, the Minister conducted an oversight inspection at the Telkom Towers.

The building was procured to serve as the South African Police headquarters in 2016 to the tune of nearly R700 million. Officials say to date, over R200 million has been spent on renovations and other services but the building remains empty due to lapses.

Addressing the media in Cape Town on Wednesday, Macpherson said in the coming weeks, a tender for a second independent investigation will be released to investigate leases which have been established by the Department of Public Works and Infrastructure to ensure that these leases were completed within the confines of the law and that the state is paying market-related prices for each.

“Shortly after my appointment, we initiated an investigation into an R300 million IT security breach that spans a decade. The investigation builds on the work Deputy Minister Sihle Zikalala started earlier this year when vulnerabilities were discovered in the department’s Information and Technology Systems,” the Minister said.

Macpherson said preliminary reports since the extent of the security breach was found suggest that the amount of money stolen over the period confirms the seriousness of the matter.

He has also authorised the department’s legal services to assist the Special Investigating Unit (SIU) with litigation at the Special Tribunal to recover up to R20 million against Kroucamp Plumbers.  

“This case involves tenders received by Kroucamp Plumbers in 2015 and 2018, where procurement processes were found to be unlawful and unconstitutional. 

“The SIU discovered that payments were made to officials in our department amounting to over R300 000, and these actions are indicative of corruption that we are determined to root out,” the Minister said.

Macpherson said his goal is to make the department play a central role in using public assets for the public good and to help turn South Africa into a construction site which will ignite economic growth and create jobs.

“Over the past eight weeks, I believe we have started to lay the foundation for the work to begin to see cranes in the sky all over South Africa,” Macpherson said.

Central to the department’s strategy for increased infrastructure investment is to see the expansion and the capacitation of Infrastructure South Africa (ISA). 

“We want to ensure that ISA functions as the single point of entry for all priority infrastructure projects, streamlining processes and reducing inefficiencies that have previously hampered project delivery,” Macpherson said.

This will not only improve efficiency but also ensure that the department prioritise projects with the greatest economic and social impact.

“And, this will increase investor confidence in public infrastructure projects, knowing that where Infrastructure South Africa is involved, construction projects are completed on time and within budget. 

“We are accelerating broader budget reforms by collaborating with the National Treasury to streamline the Public-Private Partnership (PPP) process and establish an Infrastructure Fund that reports directly to the National Treasury. 

“We are diversifying funding sources for infrastructure projects by focusing on PPPs, blended finance, and social infrastructure programmes. ISA will work closely with the National Treasury to direct investments toward projects with the highest GDP [gross domestic product] impact and job creation potential,” the Minister said.

The Minister said as the department pushes forward with reforms to ignite infrastructure investment, it was important that the department get its own house in order to ensure that it delivers on the core mandate.

“Accountability and transparency should be at the core of everything we do, while we work to eliminate corruption and abuse in all spheres of our organisation.” – SAnews.gov.za
 

Edwin
Thu, 08/29/2024 - 10:11

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Read moreTenders issued to appoint independent investigator into Telkom Towers

SA groundbreaking study transforms TB treatment policy globally

Location: News

SA groundbreaking study transforms TB treatment policy globally

A groundbreaking initiative, BEAT-Tuberculosis, has become the world’s first programme in the battle against drug-resistant tuberculosis (DR-TB) for all population groups, influencing the international TB treatment policy of the World Health Organisation (WHO).

The principal investigator leading this study, Dr Francesca Conradie, explained that the study’s success in demonstrating the safety and effectiveness of the new short oral regimen in these key populations marks a pivotal step toward a more comprehensive and equitable healthcare strategy for TB.

“The BEAT-Tuberculosis study represents a groundbreaking approach in the fight against tuberculosis, particularly with its inclusive research methodology. 

“By incorporating pregnant women and children into the clinical trials, the study has expanded the understanding of TB treatment’s efficacy and safety across broader demographics,” said Conradie. 

The primary aim was to evaluate the effectiveness and safety of a novel shortened treatment regimen for DR-TB compared with the established standard of care. 

The standard treatment consisted of a regimen of seven drugs administered over a minimum of nine months, in comparison to a regimen of four to five medications, which included newer agents like bedaquiline and delamanid, and was administered over only six months.

The BEAT-Tuberculosis clinical study was conducted at the Clinical HIV Research Unit (CHRU) Isango Lethemba TB Research Unit in the Eastern Cape and KwaZulu-Natal over the past six years. 

The study began in 2019 and despite the formidable challenges posed by COVID-19, over 400 participants were enrolled across study sites in both provinces.  

The study’s other objective was to build research capacity for DR-TB in the Eastern Cape and KwaZulu-Natal, through community engagement and training healthcare personnel in clinical research methodologies for TB treatment.

“This collaborative effort received crucial support from the National and Provincial Departments of Health that provided essential medication and laboratory infrastructure for safety and efficacy assessments,” said Conradie.

The local research study was made possible by the collaboration of the National Department of Health, funded by the United States Agency for International Development (USAID) and executed by the University of the Witwatersrand. 

The results from the study have influenced the WHO policy on the treatment of TB, and at the same time put the Global South centre stage for driving improved treatment for all. 

National Department of Health’s Chief Director of TB Control and Management, Professor Norbert Ndjeka, said that in 2022, an estimated 280 000 people developed TB in South Africa, while 54 000 died from the disease. 

TB remains a threat to global public health and the second leading cause of death in South Africa.

“With this concerning observation in mind, we acknowledge the BEAT Tuberculosis project as an exemplary and concerted effort to advance TB treatment and research capabilities, poised to bring about transformative changes in RR-TB management worldwide. 

“While the study was originally intended to inform local treatment guidelines, the results are now set to benefit patients everywhere.” 

USAID Southern Africa Mission Director, Leslie Marbury, believes that the National Department of Health and his organisation have improved TB patient care worldwide.

Marbury said the organisation celebrates the 400 participants who made this trial possible and brought the world closer to ending TB. 

“We also thank all BEAT Tuberculosis stakeholders, including the National Department of Health, the Eastern Cape and KwaZulu-Natal Health Departments, and local medical facilities, for their dedication and commitment to this globally recognised study,” she added.  

TB symptoms

The most common symptoms of TB are a cough that lasts more than two weeks, weight loss, drenching night sweats and a fever. 

Anyone with these symptoms is urged to go to their local clinic. 

“You will be asked to produce sputum or phlegm which will be tested for TB. If the test is positive, the correct treatment will be started.” – SAnews.go.za

Gabisile
Thu, 08/29/2024 - 10:16

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AEW 2024 to Place Leadership at the Forefront of Africa’s Just Energy Future

Location: News
African Energy Chamber

As the global energy landscape shifts towards sustainability, Africa faces the unique challenge of balancing energy access, economic development and environmental stewardship. At African Energy Week (AEW): Invest in African Energy 2024, the Just Energy Leader Dialogue – sponsored by bp South Africa – will gather industry figures to explore how Africa's leaders can balance competing priorities and harness technology, policies and best practices to overcome energy access challenges.

The dialogue brings together key voices, including CEO of bp South Africa Taelo Mojapelo; Chief Investment Officer at the African Development Bank (AfDB) Wole Lawuyi; and Vice President and Country Manager, Senegal at Kosmos Energy, Khady Ndiaye. Moderated by Vice President at S&P Global, Michael Wynne, the session will explore how African leaders are navigating the complex intersection of social justice, economic growth and environmental sustainability in energy policymaking.

AEW: Invest in African Energy is the platform of choice for project operators, financiers, technology providers and government, and has emerged as the official place to sign deals in African energy. Visit www.AECWeek.com for more information about this exciting event.

African countries are leading the charge toward a just energy transition through a mix of enabling policy and investment promotion activities. Under its Department of Mineral Resources and Energy (DMRE), South Africa has rolled out its Integrated Resource Plan (IRP) outlining the country's strategy for energy diversification. The IRP provides for the accelerated adoption of renewable energy, while recognizing the continued role of coal and gas in national energy security. The DMRE has consistently advocated for a balanced energy approach, ensuring that the transition does not come at the expense of jobs and economic stability.

In Nigeria, the Federal Government has announced $585 billion in energy sector investment opportunities, aligning with the Nigerian Energy Transition plan, which focuses on increasing renewable energy, reducing methane emissions and achieving net-zero goals. Investments include $272 billion toward renewable power and infrastructure, $96 billion toward optimizing oil and gas processes, energy efficiency and carbon capture, $80 billion toward zero-emissions technologies and $2.8 billion toward clean cooking solutions. Nigeria will also host the $5-billion African Energy Bank, established by the African Petroleum Producers Organization (APPO) and African Export-Import Bank and set to accelerate access to capital for oil and gas projects across the continent. The initiative affirms Nigeria's leadership and commitment to ensuring energy security in Africa, as well as improving energy project financing.

Last month, APPO held discussions to help identify transition strategies, focusing on reducing gas flaring, enhancing local content and promoting research and development. Thought leaders like NJ Ayuk, Executive Chairman of the African Energy Chamber and Chief Academic Officer of Maarifa Education Olubayi Olubayi, united to explore pathways to more sustainable energy practices across the continent.

In West Africa, Senegal is also prioritizing the simultaneous development of fossil fuel and renewable resources, striking a balance among other, single resource-centric economies.  The country is set to begin gas production from the Greater Tortue Ahmeyim LNG project later this year, creating opportunities in gas processing, gas-to-power and infrastructure and establishing itself as a key regional energy hub. In 2024, Senegal expanded its focus on renewable energy by launching new initiatives aimed at integrating renewables into its energy mix and aligning with its Just Energy Transition Partnership with France, Germany, the EU, the UK and Canada. High-level international cooperation supports Senegal's goal of universal energy access through a low-carbon energy mix and has established the country as a regional pioneer.

Distributed by APO Group on behalf of African Energy Chamber.

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Enhancing Customer Relations: The Strategic Advantage of 24/7 Answering Services

Location: MyPR

Introduction In an era where customer service can make or break a business, staying accessible to your customers around the clock is not just an advantage—it’s a necessity. A 24/7 answering service allows businesses to achieve this by ensuring they never miss a call, regardless of the time or day. This blog explores the strategic …

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Bara’s burn unit gets a much-needed upgrade

Location: News

Bara's burn unit gets a much-needed upgrade

The upgrading of the Wits Roy McAlpine Burns Unit at Chris Hani Baragwanath Academic Hospital (CHBAH) will go a long way in positioning the facility as one of the leading centres in Africa, focusing on the treatment of burns.

This is according to Gauteng MEC for Health and Wellness, Nomantu Nkomo-Ralehoko, who opened the new extended wing together with Vice-Chancellor and Principal of Wits University, Professor Zeblon Vilakazi, and the Roy McAlpine Foundation.

The additional wing is expected to enhance critical care and specialist training. 

Since its establishment 33 years ago, the burns unit at the hospital has admitted over 30 000 patients and performed more than 40 000 burn-related surgical procedures.

“The opening of this new wing is more than just an expansion of physical space; it represents a crucial step forward in our ability to provide lifesaving world-class care to the hundreds of patients who depend on the public health system. 

“This centre of excellence will go a long way in ensuring that more patients, both adults and children, can be counted among those whose dignity was restored post severe burns,” explained Nkomo-Ralehoko. 

According to the CHBAH Head of Burns Unit, Professor Adelin Muganza, the facility’s expansion includes 12 newly- equipped intensive care unit (ICU) beds and a new operating theatre to reduce delays in surgical procedures - a critical factor in treating severe burns.

The unit also boasts office space, a large outpatient service area ensuring that more patients receive timely follow-up care, and rehabilitation spaces for occupational therapy, physiotherapy, speech therapy, and recreational activities. 

According to Muganza, all these are essential for the holistic recovery of burn victims, including a skin substitute laboratory to improve the training of specialists and patient outcomes through cutting-edge research.

The impact of this expansion is already being felt by patients such as 29-year-old Nontleko Sithole from George Goch in Johannesburg who suffered burns to her body and face. 

She was admitted to the Wits Roy McAlpine Burns Unit earlier this month after a devastating fire at her home, which sadly claimed her grandmother.

“I am impressed and happy with how the hospital treated my wounds and amazed about the progress I am making so far. I never thought I was going to recover so quickly, but now I am positive because of the work done on me by the healthcare workers,” she said. 

Another patient, Bafana Alex Ntombela from Pimville, Soweto, was severely burned after collapsing onto a hotplate stove, causing significant injuries to the lower part of his body. 

“I thought my life was over after seeing how badly I was burned. I underestimated Bara and its staff, but they surprised me with the treatment they gave me. They counselled me, and I have hope that I will recover. The progress of my healing is amazing.”

The facility is set to recruit additional specialists, medical officers, and nurses, further strengthening its capacity to meet the growing healthcare needs of the community.

This milestone underlines the GDoH’s commitment to enhancing healthcare infrastructure and preparing for the National Health Insurance (NHI) by expanding and upgrading facilities to meet the increasing demand for healthcare services.

The facility will also significantly improve burns services not only in Gauteng but also across South Africa and the broader Southern African Development Community region. – SAnews.gov.za

Gabisile
Wed, 08/28/2024 - 10:23

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Eastern Cape government to embark on veldfire damage tour

Location: News

Eastern Cape government to embark on veldfire damage tour

The Eastern Cape Department of Rural Development and Agrarian Reform (DRDAR) will next month embark on an across-province tour to engage with farmer associations affected by the ongoing widespread and uncontrolled wildfires.

The fires are destroying pastures, livestock, agricultural infrastructure and livelihoods in the province.

Addressing the media on Tuesday, Rural Development and Agrarian Reform MEC Nonceba Kontsiwe said the tour would be held to gain an understanding of farmers’ challenges and discuss the department’s strategies.

“We want to better understand their challenges and discuss the strategies we have in place to support them,” she said, adding that the DRDAR would also collaborate with the Departments of Education, Social Development and Health, and other relevant bodies to address food insecurity.

She said currently, 414 000 households in the province face food insecurity due to high food prices, unemployment and underutilised land.

“Past efforts have been fragmented and ineffective. That is why the Office of the Premier is leading a coordinated Provincial Food and Nutrition Security Plan with various departments,” said the MEC.

While the department plans to launch this initiative on World Food Day, on 16 October, the ongoing veldfires pose a significant challenge and are becoming an obstacle to the DRDAR’s efforts.

The latest information indicates the following damage:

  • In Mhlontlo, over 593 hectares of grazing land was destroyed, with 171 sheep and 29 goats lost.
  • In King Sabata Dalindyebo, 900 hectares of grazing land has been burned, resulting in the death of 13 animals.
  • In Amahlathi, over 550 hectares have been destroyed; 1 cow, 1 calf, and 2 goats perished.
  • In Emalahleni, 300 hectares was burned, along with significant property damage, including 235 bales of lucerne.
  • In Intsika Yethu, 58 sheep have been lost to the fires.
  • In Elundini, 4 833 hectares of grazing land was burned, with 8 cattle lost and 26 hectares of maize destroyed.

The MEC said the situation highlights the urgent need for collective action to prevent and control these devastating veldfires.

“We therefore urge all stakeholders to work together to mitigate the impact of these fires and support affected communities,” she said. – SAnews.gov.za

Gabisile
Wed, 08/28/2024 - 12:39

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President Ramaphosa assents law advancing water security for South Africa

Location: News

President Ramaphosa assents law advancing water security for South Africa

President Cyril Ramaphosa has enacted a legislation that will enable South Africa to expand bulk water infrastructure and improve the management of existing water assets to ensure water security over the next decade.

President Ramaphosa assented to the South African National Water Resources Infrastructure Agency SOC Ltd Bill which establishes a new agency that will be responsible for developing and managing national water infrastructure, and will be able to mobilise finance for new projects through innovative models to crowd in private investment.

The new legislation, signed by the President, forms part of reforms in the water sector aimed at increasing investment in the maintenance and construction of water infrastructure and improved water quality.

These reforms are driven by Operation Vulindlela – a joint initiative of the Presidency and National Treasury to accelerate the implementation of structural reforms and support economic recovery.

“The initiative aims to modernise and transform network industries, including electricity, water, transport, and digital communications. The new law flows from a project of the Department of Water and Sanitation to restructure the South African national water resources infrastructure,” the Presidency said in a statement.

The Presidency said over the past few years, there has been an emerging recognition of the need for a stronger public sector in the key area of infrastructure development, effective maintenance, operation, and management of existing infrastructure, and to support social and economic development.

The South African National Water Resources Infrastructure Agency SOC Ltd Act establishes the National Water Resources Infrastructure Agency SOC Limited as a vehicle to achieve the strategic objectives of government to eradicate poverty and to ensure sustainable and equitable development, including promoting the State’s socio-economic and transformation objectives.

The law seeks to address the current fragmentation in water resource management between the Department of Water and Sanitation, the Trans-Caledon Tunnel Authority (TCTA) and the Water Trading Entity, and to establish an agency that is able to raise funds on its own balance sheet to increase investment in water infrastructure.

The Act outlines the establishment of the Agency as a State-owned Company and major public entity. – SAnews.gov.za

GabiK
Wed, 08/28/2024 - 10:22

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The Future of African Hospitality

Location: Business
API Events

Africa's tourism sector is poised for an exciting ascent, and it has the potential to soar if it is propelled by visionary strategies and robust investments that harness the continent's unparalleled tourist allure.

Amid the unprecedented changes of recent years, Africa's tourist appeal is greater than ever. With the right steps, it can offer more top destinations for today's tourists. The API Hospitality & Residences Forum is a pivotal platform for Africa's hospitality industry that is legendary for its dealmaking, networking, and unique insights. It takes place on 19 September 2024 at the Westin Hotel in Cape Town on the first day of the highly anticipated two-day API Summit.

This year's API Summit is themed “Impact”, and industry leaders speaking at the API Hospitality and Residences Forum highlight the key to unlocking the full potential of Africa's tourism sector to foster sustainable growth and enhance the continent's appeal to both travellers and investors includes focused investments, strategic partnerships and robust public sector involvement. The API Hospitality & Residence Forum sets the stage to catalyse and nurture these outcomes.

Bani Haddad, Founder and Managing Director of Aleph Hospitality, the largest independent hotel management company in the Middle East and Africa, will be among the distinguished speakers. "The pandemic had several profound effects on the tourism sector," Haddad reflects. "One of the most noticeable impacts has been the increased desire among travellers for domestic or regional trips, as well as nature-based or less crowded destinations. Africa is uniquely positioned to benefit from these trends.”

Citing the latest Chain Development Pipeline report by W Hospitality, Haddad notes a 20% growth in the number of hotel rooms in Africa since 2020, reaching a total of 92,134 rooms. “This growth indicates that the supply is expanding across the continent to meet the rising demand. We are also witnessing an increase in the quality and branded hotel supply in resort destinations such as Zanzibar and national parks like Serengeti and Mara. The global demand for nature and experiential experiences presents a significant opportunity for Africa, which has much to offer in this regard."

Haddad continues, "Investing in and fostering partnerships within the tourism sector is not just beneficial but essential for unlocking its full potential in Africa.”

Such efforts can lead to comprehensive economic development, job creation, and the promotion of sustainable and inclusive growth. He emphasises that governments, private sector players, and international organisations all have crucial roles in facilitating these investments and partnerships to ensure the tourism sector thrives and significantly contributes to the continent's development.

Echoing this sentiment, Daniel Trappler, Senior Director – Development Sub-Sahara Africa at Radisson Hotel Group (RHG), who will also speak at the event, outlines RHG's strategic plans in the post-COVID landscape. "RHG plans to capitalise on growth opportunities in key value nodes such as Cape Town, Victoria Falls, Zanzibar, and leisure offerings in the coastal and safari segments across Southern and Eastern Africa. Within these nodes lies the opportunity to increase RHG branded supply to meet the obvious growing demand.”

Trappler highlights RHG's eagerness to expand its footprint in Cape Town's 5-star and luxury segments, which have consistently performed above the market average despite higher rates. In Victoria Falls, RHG aims to replicate the success of its Zambezi River's Zambia side, planning to introduce the upscale Radisson brand to Victoria Falls, Zimbabwe.

"We are actively seeking partners to bring our Radisson, Radisson Blu, or Radisson Collection brands to Zanzibar, given RHG's significant presence in Eastern Europe, the largest source market for Zanzibar," Trappler adds.

Since opening its new Radisson Safari Hotel Hoedspruit, RHG has set its sights on replicating the same model within Southern and Eastern Africa, capturing both the foreign market and the regional market, which prefers short travel distances for tourism needs.

“The group is developing resort offerings in various safari and coastal locations, including Masai Mara, Serengeti, the Kenyan coast, Seychelles, Mauritius and the wildlife territories in Namibia and Botswana."

Trappler underscores the critical role of investment and public sector involvement. "The contribution of tourism to GDP is evident across the region. National and local governments need to increase their awareness of the sector's potential contribution to GDP. In South Africa, where RHG aims to double its portfolio, we need to see more active interest and contributions from the public sector towards developing hotels and hospitality infrastructure."

He stresses the need for public sector initiatives driving growth in this sector, particularly in South Africa, where the sector is strong but could be a much larger contributor to GDP and employment creation.

The API Hospitality & Residences Forum is a unique pan-African event that brings hospitality-focused leaders and investors together with Africa's leading real estate community. Sponsored by industry giants like Radisson Hotel Group, Marriott Hotels, HTI Consulting, JLL, and Tui Blu, the forum offers an unparalleled platform for doing business in African hospitality.

With over 500 leaders expected to attend the summit, including more than 250 hospitality delegates, in excess of 75 hotel brands, operators and owners, and 35 speakers, the API Hospitality & Residences Forum is the premier gathering of Africa's leading hospitality professions and consultants.

Distributed by APO Group on behalf of API Events.

For any media enquiries or interviews, kindly contact:
Anne Lovell
anne@dmix.com
083 651 7777

Distributed for API Events by Dmix:
API Events
Murray Anderson-Ogle
Email:Murray@apievents.com
Contact: +27 71 890 77 39
Website: www.APIEvents.com

Social Media:
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President Ramaphosa to respond to questions in the National Assembly

Location: News

President Ramaphosa to respond to questions in the National Assembly

President Cyril Ramaphosa will on Thursday afternoon account to the nation on the work of government when he responds to Questions for Oral Reply in the National Assembly in Parliament, Cape Town.

During this session, President Ramaphosa will, among other questions, brief Parliament on steps government is taking to encourage private sector investments to improve ports, railways and other infrastructure to drive economic growth.

“This will also include expansion of access to agricultural markets for small-scale and emerging farmers as productive sectors of the economy.

“The President will reflect on the alignment of South Africa’s foreign policy with the needs of the African continent and steps being taken to ensure that South Africa continues to contribute to promoting African unity and self-determination,” the Presidency said in a statement.

Other international issues such as combating illicit trade in illegal substances will also be addressed.

Furthermore, the President will provide updates on the development and strategic goals of the Sovereign Wealth Fund and progress in building housing for the residents of Alexandra. – SAnews.gov.za

DikelediM
Wed, 08/28/2024 - 09:57

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Scaling up Financing Is Key to Accelerating Africa’s Structural Transformation

Location: News
African Development Bank Group (AfDB)

By Adamon Mukasa and Anthony Simpasa, African Development Bank Group (www.AfDB.org).

Document 1: http://apo-opa.co/4g3EVzM
Document 2: http://apo-opa.co/473xTHm
Document 3: http://apo-opa.co/4gcshPk
Document 4: http://apo-opa.co/4gcsi5Q
Document 5: http://apo-opa.co/471DE8y
Document 6: http://apo-opa.co/4gcskL0
Document 7: http://apo-opa.co/47361TE
Document 8: http://apo-opa.co/4dXk53t

The calls for structural economic transformation in Africa date back to the 1960s when newly independent nations aimed to eliminate poverty through economic diversification, sustained growth, and job creation. This agenda persists today, as Africa continues to face significant developmental challenges.

Pursuing post-independence economic agendas was particularly important because, behind the euphoria (http://apo-opa.co/4dZMCVX) of independence, laid significant developmental challenges in several African countries: unskilled labor force, political and institutional fragilities, poor health conditions, rapid population growth, wide income disparities, and the legacy of colonialism and exclusion from the modern world. The establishment of the Organization of African Unity (OAU) (http://apo-opa.co/4g3EVzM) in 1963 and the African Development Bank (http://apo-opa.co/473xTHm) a year later aimed to tackle these other challenges in a more coordinated and impactful manner. The African Union (http://apo-opa.co/475z3Sz), successor of the OAU, developed Agenda 2063 (http://apo-opa.co/4g3EQMu) in 2013 as a blueprint for turning Africa into the global growth pole and powerhouse of the future.

Africa's Economic Development Paradox

More than sixty years after independence (http://apo-opa.co/3AzLutK), Africa's structural transformation – the shift of workers from lower to higher productivity employment and intra-sectoral productivity growth (http://apo-opa.co/4dQj0KK) – has not progressed as quickly as hoped. Both policymakers and analysts within and outside the continent are genuinely concerned that achieving structural transformation could remain a mirage for many African countries in the absence of bold structural reforms and financing to support implementation of these policies. Why being so pessimistic? Because historical facts tend to support their pessimism. The African Economic Outlook (AEO) 2024 (http://apo-opa.co/4g2RATW) report, released in May by the African Development Bank, reveals that Africa's transformation has been slow and uneven. In countries showing signs of transformation, the process has been characterized by low industrialization and predominantly by employment in low-skill, low-productivity services. The agriculture sector, employing 42% of Africa's workforce, is 60% less productive than the economy-wide average. Consequently, many workers remain trapped in low-productivity, low-wage jobs, unable to escape poverty.

As a result, Africa was the only region of the world where the average real GDP per capita contracted in the 1980s and 1990s, the so-called lost decades (http://apo-opa.co/4fYqm0D).

Africa is off-track in achieving almost all SDG targets by 2030, consistently showing the lowest SDG performance globally since the 2000s (Figure 1). Without intervention, it is predicted that by 2030, nearly 9 out of 10 of the world's extremely poor will be in Africa (http://apo-opa.co/4e2weEn) and under current conditions[1], it could take African countries over a century on average to reach high-income status.

[1] This scenario assumes that real GDP per capita of each African country will grow according to its post-COVID-19 (2022–25) average growth rate as computed by the African Development Bank's Statistics Department.

But Africa is a very large, diverse, heterogeneous, region. Some countries have, over the past four decades preceding the COVID-19 pandemic, experienced episodes of growth accelerations, growth spikes and failed take-offs (http://apo-opa.co/4gcshPk). Cases of consistent good performance include Botswana, Seychelles, and Mauritius, routinely ranked among the top 10 fastest-growing economies globally. African countries have indeed exhibited remarkable resilience amid confounding shocks, and in 2024, 10 countries[1] in Africa are projected to be among the world's top 20 fastest-growing economies, sustaining the trend observed during the past four decades pre-COVID-19.

Importantly, over the past quarter century, thanks to strong economic reforms and macroeconomic stability, enhanced governance, relative peace and improved political environment and, public investments in soft and hard infrastructure, some African countries[2] have managed to transform their economies and recorded economic growth rates above the global average.

The role of finance in fast-tracking Africa's structural transformation

Many factors, both internal and external, could explain the relatively slow progress in structurally transforming African economies. Among them: over-reliance on commodity-led growth (http://apo-opa.co/4fZJTxI), inadequate infrastructure (http://apo-opa.co/4dV5DZE); insufficient pool of skilled workers (http://apo-opa.co/4g49x4g) and low access to affordable finance (http://apo-opa.co/47361D8); weak institutional governance (http://apo-opa.co/4e0O5LG), recurrent conflicts (http://apo-opa.co/4g49rtq), effects of climate change (http://apo-opa.co/3ABuuTU), tightening of global financial conditions (http://apo-opa.co/4fZSFvC) and rising debt vulnerabilities (http://apo-opa.co/4724oWk).

While all these factors are equally important and call for urgent actions from policymakers, financing Africa's transformation (http://apo-opa.co/4fTo1Uy) is a multi-layered overarching challenge that demands special attention and a pragmatic approach to move from billions to trillions. The cost of achieving the SDGs by 2030 in Africa is estimated at about $1.3 trillion (http://apo-opa.co/4gcsi5Q) annually, equivalent to 42% of Africa's 2023 GDP. Infrastructure needs alone are estimated by the African Development Bank at $181-$221 billion per year over 2023-2030.  The climate finance gap is approximately $213.4 billion (http://apo-opa.co/4gcsiTo) annually through 2030.

Insufficient domestic resources (http://apo-opa.co/471DE8y), compounded by the failure of the global financial architecture (http://apo-opa.co/471zU6K) to mobilize and at scale, affordable finance for sustainable development (http://apo-opa.co/4gcskL0), have led many African countries to resort to commercial borrowing on unfavorable terms. This has resulted in increased debt vulnerabilities. Africa's Public and Publicly Guaranteed external debt has nearly tripled since 2010, reaching $656 billion in 2022, accounting for 22.4% of the continent's GDP and exceeding Africa's public revenue-to-GDP ratio of 20.4%. In 2024, African countries are expected to spend around $74 billion on debt service, up from $17 billion in 2010. Out of the projected debt service, $40 billion is owed to private creditors.

Even more concerning, debt service payments now account for about 11% of the continent's total revenues. High debt service is diverting resources from crucial investments in infrastructure, education, and health – all critical for economic transformation and long-term growth. As of April 2024, 20 African countries[3] (http://apo-opa.co/47361TE) were either in external debt distress or at high risk of external debt distress.

The AEO 2024 report estimates that to accelerate Africa's structural transformation, the continent needs to close an annual financing gap of $402.2 billion (about 13.7% of its projected 2024 GDP) by 2030. Figure 2 shows that transport[4] infrastructure accounts for the largest share of the gap (72.9%), followed by education (10.4%), energy (9.9%), and productivity-enhancing technologies (6.8%). These figures reflect decades of underinvestment in critical areas for development.

The level of financing gap in transport infrastructure reflects the continent's shortfall explained by decades of public underinvestment to upgrade existing road infrastructure or open new roadways, to match the growing population and economic dynamism across the continent. For instance, Africa's median road density is about 12 km per 100 km2, compared with 42.5 km in high-performing developing countries and 136 km in high-income countries. Only about 27% of African roads are paved, far behind the rest of the world (about 49%) and other developing countries (35.4%).

[1] Niger, Senegal, Libya, Côte d'Ivoire, Ethiopia, Rwanda, Benin, Djibouti, Gambia, and Uganda

[2] Algeria, Comoros, Djibouti, Egypt, eSwatini, Lesotho, Libya, Mauritius, Sao Tome and Principe, Senegal, Seychelles, and Tunisia

[3] Burundi, Cameroon, Central African Republic, Chad, Comoros, Congo, Djibouti, Ethiopia, Gambia, Ghana, Guinea-Bissau, Kenya, Malawi, Mozambique, São Tomé and Príncipe, Sierra Leone, South Sudan, Sudan, Zambia, and Zimbabwe

[4] Proxied by roads as road transport is the most frequently used means of transporting goods and people across the continent, carrying at least 80 percent of goods and 90 percent of passengers.

On education, vital for equipping the current and future workforce with the required skillset for structural transformation, African countries' median SDG index score was only 51.5 (out of a maximum of 100) in 2022, while other low-income developing countries reached a median score of 87. In addition, according to World Bank's World Development Indicators (http://apo-opa.co/3AGXw4N), African governments currently spend on average $312 annually per student in primary education, $473 on secondary education, and $2,227 on tertiary education, or about, respectively, 3, 2.3, and 1.1 times lower than high-performing developing countries on  SDG 4. On energy, Africa's median SDG 7 index score was 38.8 in 2022, suggesting that a typical African country was 61.2% further away from achieving the best possible outcome on SDG 7 targets. Despite its vast energy potential, electric power consumption per capita in Africa is still the lowest in the world, estimated at 638.4 kilowatt-hours (kWh) in 2021, versus 2,056 kWh in other developing countries. Due to poor energy infrastructure, over 600 million Africans have no access to electricity http://apo-opa.co/46YZuJT and this is despite progress in recent years[1]. On productivity-enhancing technology and innovation, the continent lags other regions too. This impedes its ability to either innovate and introduce new products, technologies, and/or services that could support its structural transformation. African countries' average Gross Domestic Expenditure on R&D (GERD) represents about 0.4% of their GDP (against about 1% in the rest of the world) and they spend on average $10.7 per capita on GERD (compared to $403.2 per capita in other regions of the world). Furthermore, the continent displays the lowest concentration of researchers in R&D, with an average of 221 researchers per million people, against 742 researchers in other developing countries.

The financing gap varies significantly across countries. The cross-country heterogeneity is mainly explained by differences in current SDG performance related to structural transformation as well as differences in demographics (current and projected population size and composition, land size, and the like) and socioeconomic characteristics (current and projected GDP per capita, and spending on education, infrastructure, and so on). As shown in Figure 3, the estimated annual financing gap represents at least 10 % of 2024's projected GDP in 36 African countries, and in nine of these, at least 50 % of GDP. For such countries, closing the financing gap by 2030 is, therefore, realistically impossible.

[1] For instance, the average share of people with access to electricity increased from about 38 percent in 2000 to about 59 percent in 2022. In 28 African countries, the percent of people with access to electricity has more than doubled between 2000 and 2022, out of which it has increased at least fivefold in 8 countries (Kenya, Lesotho, Mali, Mozambique, Rwanda, Somalia, Tanzania, and Uganda).

Note: COG: Congo; CPV: Cabo Verde; GHA: Ghana; CIV: Cote d'Ivoire; GAB: Gabon; GNQ: Equatorial Guinea; MUS: Mauritius; SYC: Seychelles; ZAF: South Africa. Source: Authors' computation based on the African Economic Outlook (AEO) 2024 database

A more realistic approach would be to allow for a gradual but steady transformation process over a longer period, aligning with the African Union's Agenda 2063. This would enable countries to mobilize more resources domestically and externally, without jeopardizing debt sustainability.

What next?

Scaling up finance to accelerate Africa's structural transformation should be a key priority for policymakers. While implementing structural reforms is crucial for sustainable growth, success depends on the availability, timeliness, and scale of long-term development financing and enhancing spending efficiency. African countries should therefore, inter alia, focus on: i) scaling up investment to build requisite human capital suited to local realities, circumstances, and development priorities; ii) boosting domestic resource mobilization and improving efficiency of public finance management; iii) creating targeted and streamlined incentives to attract private capital for key transformation sectors; and iv) launching ambitious national infrastructure programs with assured positive returns to attract affordable financing.

The international community should reform the global financial architecture (http://apo-opa.co/4dXk53t) to facilitate African countries' access to long-term, concessional development financing at scale, complementing domestic resources.

By addressing these financing challenges and implementing targeted reforms, Africa can accelerate its structural transformation and move closer to achieving its development goals as espouses in Agenda 2063.

Distributed by APO Group on behalf of African Development Bank Group (AfDB).

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What Is a Managed Service Provider?

Location: MyPR

SevenC, a top managed service provider in South Africa, delves into the critical responsibilities and roles of MSPs in the region, highlighting their importance in optimising IT solutions for diverse businesses. Imagine a world where your business operations run smoothly, your IT systems are always up-to-date, and technical hiccups are a thing of the past. …

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Majodina receives preliminary report into Riverlands dam failure

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Majodina receives preliminary report into Riverlands dam failure

Water and Sanitation Minister Pemmy Majodina has received a preliminary report into what led to the failure of three dams located in Riverlands farm in the Swartland Local Municipality.

Majodina granted departmental engineers time to conduct diligent and adequate investigation into what led to the failure of three farm dams located in Riverlands in the Western Cape.

This follows the failure of three farm dams that breached, resulting in flooding that caused severe property and infrastructure damage to the affected area, leading to hundreds of people being provided with humanitarian assistance.

The department said the preliminary report into what led to the failure of the dams has been finalised and handed over to the Minister on Monday, following a two-week investigation.

“Upon studying the report, Minister Majodina will make public the findings thereof in due course,” the department said.

Majodina has commended the team of engineers, led by the Head of Specialist Unit: Dam Safety, Wally Ramokopa, for swift action to avert further disaster in the area, and investigating the cause of the failure of the dams.

READ | Support for Riverlands displaced families continues

While the Department of Water and Sanitation does not own the failed dams, it exercises a regulatory function over all the dams in South Africa. – SAnews.gov.za

GabiK
Tue, 08/27/2024 - 10:59

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Read moreMajodina receives preliminary report into Riverlands dam failure