S editor’s note
S editor’s note Servicing SA’s socio-economic development When it comes to the development of Africa, the decisions facing the continent’s leaders today are of historical significance. More than anything else, energy systems are the very fabric of Wbusiness and society. Countries across Africa want to make good on their objective of building huge amounts of new generation capacity to get ahead on vast increases in energy demand and set the continent on the path of growth it deserves. Africa knows where it needs to go. The big question is how. And more specifically: what is the most cost-effective energy mix that can be built to deliver all the new electricity capacity that is needed? (Page 8) South Africa will have to clear some tough socio-economic hurdles to achieve a just transition away from fossil fuels. These hurdles will be overcome by a combination of reallocating capital from areas with high fossil fuel exposure towards renewables and ongoing engagements with listed companies on their transition plans (page 10). A major issue affecting existing investors is the current public negativity towards any activity related to oil and gas exploration. Together with the Department of Mineral Resources and Energy, PASA is doing its utmost to educate the public of the many potential benefits that exploitation of indigenous oil and gas resources could bring. There is currently a major series of engagement initiatives underway to achieve this (page 6). Undoubtedly, one of the major challenges in the development of Africa – a continent with a population of approximately 65% young people – is youth unemployment. Alarmingly, it is estimated that 50% of the youth in Africa will be economically inactive by 2025. Furthermore, the vocational system in South Africa suffers from insufficient relationships with business, leaving training institutes ill-equipped to meet employers’ skill requirements and young people largely either underexposed or not exposed at all to quality career guidance that would allow them to transition into the world of work (page 20). And nearly every government in the world knows it needs to go digital – to automate processes, support service delivery, become more efficient and improve citizens’ lives. The complexity of these IT environments is expensive to manage and with governments under significant pressure to cut costs, funding for transformation programmes is limited. Within that massive spending there is a tremendous opportunity for governments to acquire the necessary IT infrastructure services more affordably and with better performance (page 14). The country has made significant progress since 1996 in expanding basic water supply services, especially within the vulnerable areas. But inequality in access to basic services is still a reality. Progress with water supply and sanitation service delivery has been slow and, in some instances, it’s deteriorating. Water is a critical resource. Its provision should be seen as an enabler that facilitates socio-economic development (page 22). It seems South Africa needs a handful of enablers to set it on the path of growth it deserves. Service seems to be a significant enabler. The big question is how. Alexis Knipe Editor Editor: Alexis Knipe | Publishing director: Chris Whales | Managing director: Clive During | Online editor: Christoff Scholtz | Design: Brent Meder Production: Yonella Ngaba | Ad sales: Venesia Fowler, Tennyson Naidoo, Graeme February, Tahlia Wyngaard and Vanessa Wallace Administration & accounts: Charlene Steynberg, Kathy Wootton | Distribution & circulation manager: Edward MacDonald | Printing: FA Print Service magazine is published by Global Africa Network Media (Pty) Ltd | Company Registration No: 2004/004982/07 Directors: Clive During, Chris Whales | Physical address: 28 Main Road, Rondebosch 7700 Postal: PO Box 292, Newlands 7701 | Tel: +27 21 657 6200 | Email: info@gan.co.za | Website: www.gan.co.za No portion of this book may be reproduced without written consent of the copyright owner. The opinions expressed are not necessarily those of Service magazine, nor the publisher, none of whom accept liability of any nature arising out of, or in connection with, the contents of this book. The publishers would like to express thanks to those who Support this publication by their submission of articles and with their advertising. All rights reserved. Member of the Audit Bureau of Circulations 2 | Service magazine
contents S IN THIS ISSUE | SERVICE 81 | JANUARY/FEBRUARY/MARCH 2023 SERVE AND DELIVER A round-up of news, snippets and trends SA CAN ACHIEVE ENERGY SECURITY PASA is licensing exploration in pursuit of energy security AFRICA’S ENERGY FUTURE AT A CROSSROAD Africa should adopt renewable energy on a massive scale 4 CAPITAL ALLOCATORS FOR CLIMATE CHANGE The role of capital allocation in climate change 6 8 IT INFRASTRUCTURE A pillar of digital government 10 PATHWAYS INTO THE ECONOMY For Africa’s youth BASIC WATER SERVICES IN DECAY After years of progress 14 WASTE SECTOR INCOME IS ON THE UP And so is plastic recycling 20 PACKA-CHING KA-CHING KA-CHING A rapid influx of community recycling projects is welcome 22 A GREENER FUTURE Decreasing Africa’s landfills 24 PETCO IS MAKING A DIFFERENCE By partnering with municipalities 26 27 28 Service magazine | 3
