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Navigating the Fiscal Pathways:

Insights into South Africa's 2024 Budget and Its Trajectory.

Dr. Chris Blair CEO of 21st Century weighs in…

“In the unfolding narrative of South Africa's economic landscape, the 2024 budget speech by Finance Minister Enoch Godongwana stands as a pivotal chapter, articulating a fiscal strategy meticulously designed to navigate the tumultuous waters of economic uncertainty without resorting to the imposition of onerous tax burdens. By electing to leverage the nation's Gold & Foreign Exchange Contingency Reserve Account for significant funding, the strategy underscores a commitment to fiscal prudence whilst eschewing major tax hikes, a move that notably sustains the VAT, wealth tax, and levies on fuel and the Road Accident Fund at their current levels for an unprecedented third consecutive year.

“This budget, with its tempered optimism, projects a gradual ascension in economic growth, from a modest 0.6% in 2023 to an anticipated 1.8% by 2026, alongside a promising reduction in consumer price inflation. The government's fiscal blueprint envisages the attainment of a primary budget surplus, underpinned by strategic tax adjustments aimed at mitigating fiscal pressures, including the adoption of a global minimum corporate tax of at least 15% and fostering incentives for the burgeoning electric vehicle sector.

“Yet, the essential question arises – what ramifications does this budget hold for the typical South African? The multifaceted implications of the budget reveal a tapestry of impacts. On one hand, the restraint of significant tax increments offers a semblance of relief amidst prevailing economic fluctuations, while on the other, the strategic utilisation of reserve funds to augment public sector wages in critical services heralds a reinforced allegiance to social expenditure.

“Delving deeper into the individual impacts, the decision to maintain the current VAT rate alongside unchanged wealth tax and levies directly influences the cost of goods and services, thereby stabilising consumer expenses. However, the absence of adjustments in personal income tax tables to counter inflationary pressures ominously looms as a potential detriment to disposable incomes, heralding the phenomenon of "bracket creep" and the consequent erosion of real disposable income.

“Reflecting upon the past decade and the economic odyssey traversed by South Africa, one is induced to contemplate the alignment of current fiscal policies with the visionary scenarios postulated by the esteemed Clem Sunter. The scenarios – the "High Road" of inclusive growth and social cohesion, the "Low Road" of economic decline and societal discord, and the "Toll Road" of gradual progress amidst challenges – serve as a framework to evaluate South Africa's fiscal and economic trajectory.

“In the kaleidoscope of these scenarios, it appears South Africa's journey somewhat mirrors the "Toll Road", navigating through economic challenges and societal upheavals with a cautious optimism. The 2024 budget, in its essence, strives towards the "High Road", aiming to cultivate economic stability without the imposition of burdensome taxes. Yet, the spectre of sustainability concerns, particularly the reliance on reserve funds and the potential for fiscal shocks, casts a shadow of uncertainty, suggesting that the journey ahead remains fraught with challenges.

“As we consider the future, the essence of South Africa's economic narrative hinges on the delicate balance between growth, fiscal responsibility, and social investment. In this intricate dance of policy and progress, the vision for a prosperous trajectory remains within grasp, contingent upon the adept navigation of the fiscal and economic pathways laid out by visionary leaders and policymakers.”

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This article is based on research conducted by 21st Century, one of the largest remuneration consultancies in Africa. Please contact us at This email address is being protected from spambots. You need JavaScript enabled to view it. for any further information.

Written by:

Dr Chris Blair, CEO of 21st Century, This email address is being protected from spambots. You need JavaScript enabled to view it.; B.Sc. Chem. Eng., MBA – Leadership & Sustainability, PhD – Organisation, Work and Technology

About 21st Century:

21st Century, a level 2 BBBEE company, is one of the largest Business and People Solutions consultancies in Africa, specialising in sustainable business solutions and underpinned by exceptional Analytics and Research capabilities, with a team of more than 60 skilled specialists, servicing over 1700 clients – including non-profit organisations, unlisted companies, government, parastatals and over two-thirds of the companies listed on the JSE. 21st Century offers bespoke business and strategy planning services, operating model and organisational design, creative reward practice modelling and market data, change, stakeholder and culture management, training courses and comprehensive human capital and talent plans. 21st Century continues to offer solutions via a combination of virtual channels and on-site presence. 

21st Century has 5 business areas, focussing on: Remuneration and Reward; Organisational Design; Change Management; People & Talent and Analytics.

21st Century has both national and international capabilities. We offer full-spectrum Human Capital services to sub-Saharan Africa & Middle East clients, and as the African representative of the GECN group (www.gecn.com)  have access to expertise on every continent around the world.

For more information visit: www.21century.co.za or contact us at (011) 447 0306
Or contact Craig Raath Executive Director at This email address is being protected from spambots. You need JavaScript enabled to view it. 

Issued By: The Lime Envelope
On Behalf Of: 21st Century
For Media Information: Bronwyn Levy
Telephone: 076 078 1723
E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

AI in the context of contract analysis and management refers to the use of machine learning and natural language processing technologies to automate and improve various aspects of contracts, transforming the way contracts are analysed, managed, and enforced.

AI has become an indispensable tool in contract analysis and management, offering significant improvements in efficiency, accuracy, and risk mitigation. While it doesn't replace the human expertise of lawyers and contract managers, AI can complement their skills, allowing them to focus on strategic aspects of their roles.

How AI Improves the Contract Review Process

AI can greatly increase the efficiency of contract review and management in the following ways:

1. Speed and Efficiency: AI can review contracts much faster than a human, processing large volumes of documents in a fraction of the time it would take manually.
   
   
2. Accuracy in Data Extraction: AI algorithms are adept at extracting specific data points from contracts, such as dates, monetary amounts, and party names, with high accuracy.
   
   
3. Consistency: AI provides a consistent approach to contract review, reducing the variability that might arise from multiple human reviewers.
   
   
4. Risk Identification: AI tools can be programmed to identify clauses that are risky or deviate from standard practice, thereby alerting reviewers to potential issues.
   
   
5. Advanced Analytics: AI can analyse contract terms and compare them against a large database of similar contracts, providing valuable insights and benchmarks.

The Risks and Benefits of Using AI for Contract Management

As with any technological tool, benefits and risks go hand in hand.

1. Enhanced Productivity vs. Over-reliance on Technology: While AI automates routine tasks, thereby enhancing productivity, it also risks creating an over-reliance on technology, potentially leading to a skills gap.
   
   
2. Cost Reduction vs. Dependence on Data Quality: AI's ability to reduce costs in contract management is counterbalanced by its dependence on the quality of data that is supplied. Poor or biased data can undermine the accuracy of AI-driven results.
   
   
3. Improved Compliance Monitoring vs. Regulatory Compliance Challenges: AI enhances compliance monitoring but also poses challenges in adhering to diverse and strict regulatory requirements in different jurisdictions.
   
   
4. Strategic Decision-Making vs. Lack of Nuance: AI's data-driven insights for strategic decision-making can be limited by its inability to fully grasp the nuanced subtleties of human language in legal contexts.
   
   
5. Scalability vs. Data Security and Privacy Concerns: The scalability of AI in handling increasing volumes of contracts is juxtaposed with concerns around data security and privacy, especially when dealing with sensitive information.

While AI offers substantial improvements in contract review and management, it is essential to be aware of and actively manage the associated risks. A balanced approach that leverages the strengths of AI while mitigating its weaknesses  is key to successfully integrating AI into contract analysis and management processes.

Caveat Legal

At Caveat Legal, we pride ourselves on our commitment to staying at the forefront of AI research and staying abreast of market trends. We understand the dynamic nature of the AI landscape and the importance of being up-to-date and relevant in our approach. By continuously monitoring the latest developments, we ensure that our clients receive cutting-edge advice and solutions that align with the rapidly evolving field of artificial intelligence. 

Without professional legal guidance, organisations may face potential risks, including regulatory non-compliance, intellectual property disputes, privacy breaches, and ethical concerns. Our AI Law services are designed to address these challenges, enabling you to navigate the intricate legal landscape, mitigate risks, and build a solid foundation for responsible and successful AI integration through the support of existing legislation and guidance via international trends.

We are here to answer your questions, discuss your specific needs, and tailor a comprehensive legal strategy to ensure your AI initiatives thrive while complying with the evolving legal requirements. Take the first step toward harnessing the power of AI while safeguarding your organisation's interests. Reach out to our dedicated AI Law team today. For more information or to contact our team, visit www.caveatlegal.com

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The world is changing, and so are our energy needs. With a growing emphasis on sustainability and renewable energy sources, more homeowners are exploring the possibility of installing solar panels on their properties. Solar power not only reduces your carbon footprint but can also lead to significant long-term savings on electricity bills. However, the upfront cost of purchasing and installing solar panels can be a barrier for many. That’s where rent-to-own solar systems come into play, offering an innovative solution that makes solar energy accessible to a broader audience.

Understanding Rent-to-Own Solar Systems

Rent-to-own solar systems, also known as solar leases or power purchase agreements (PPAs), provide an alternative path to solar adoption. Instead of buying the solar panels outright, homeowners can lease them from a solar provider. Here’s how it works:

1. Installation: A solar company installs the solar panels on your property at little to no upfront cost. They own and maintain the system throughout the lease period. 
2. Lease Payments: You make regular lease payments to the solar provider, usually on a monthly basis. These payments are often lower than your current electricity bill.
3. Energy Production: The solar panels generate electricity, which you can use to power your home. Any excess energy is typically fed back into the grid, earning you credits.
4. Savings: Over time, you can experience significant savings on your energy costs. The exact amount depends on factors like your location, the size of the system, and your energy consumption.

Advantages of Rent-to-Own Solar Systems

1. Cost Savings

One of the primary advantages of rent-to-own solar systems is the potential for immediate cost savings. By switching to solar, you can reduce or eliminate your reliance on traditional electricity sources, which often come with rising costs. With fixed monthly lease payments, you can budget more effectively and avoid the uncertainty of fluctuating utility bills.

2. Accessibility

Rent-to-own arrangements make solar energy accessible to a wider range of homeowners. You don’t need to have a large sum of money saved up for the initial investment, making it a viable option for those who may have been deterred by the high upfront costs of purchasing solar panels.

3. Maintenance Included

Solar providers typically handle the maintenance and repairs of the solar panels during the lease period. This means you won’t have to worry about additional costs if the system requires servicing, making it a hassle-free option.

4. Environmental Benefits

By harnessing the power of the sun, you’re reducing your carbon footprint and contributing to a cleaner environment. Solar energy is renewable and sustainable, helping to decrease greenhouse gas emissions and combat climate change.

Is Rent-to-Own Right for You?

While rent-to-own solar systems offer numerous benefits, it’s essential to assess whether this option aligns with your specific circumstances. Here are some factors to consider:

• Location: Your geographical location plays a significant role in the effectiveness of solar panels. Ensure your area receives adequate sunlight to maximize the benefits.
• Financial Situation: Evaluate your current financial situation and determine whether the long-term commitment of a solar lease is feasible for you.
• Energy Consumption: Analyze your energy consumption patterns to assess whether the energy generated by the solar panels will cover your needs.
• Duration: Consider the length of the lease agreement and whether you plan to stay in your current home for that period.

In Conclusion

Rent-to-own solar systems provide an excellent opportunity for homeowners to embrace renewable energy without the substantial upfront costs. These arrangements offer cost savings, accessibility, and environmental benefits. However, it’s essential to conduct thorough research, assess your energy needs, and evaluate the terms of the lease before making a decision. With the right approach, you can harness the power of the sun and take a significant step toward a sustainable and cost-effective energy future.

In the constantly evolving world of smart home technology, two innovations have significantly changed how we interact with our living spaces: smart blinds and smart light switches. These advancements are not just about embracing modernity; they are about enhancing convenience, energy efficiency, and personalising home environments to suit our lifestyles. Let’s delve into how these smart home features are redefining comfort and convenience in our daily lives.

Smart Blinds: Redefining Window Treatments

Smart blinds are a groundbreaking innovation in home automation. These are not your average window coverings; smart blinds offer unparalleled convenience and control over your home’s natural lighting and privacy. With smart blinds, you can adjust the amount of light entering your home with just a tap on your smartphone or through voice commands via smart home assistants like Amazon Alexa or Google Home.

The Convenience Factor

Imagine waking up to gently rising blinds that sync with your alarm, letting in that soft morning light. Or picture adjusting your blinds to close automatically as the sun sets, all without moving an inch from your couch. This level of convenience is not a luxury anymore; it’s a reality with smart blinds.

Energy Efficiency

Smart blinds also contribute significantly to energy efficiency. They can be programmed to open or close based on the time of day, temperature, or even the position of the sun. This automation helps in maintaining a consistent temperature in your home, reducing the reliance on heating and cooling systems, and thus saving on energy bills.

Smart Light Switches: Lighting at Your Fingertips

Moving on from natural light management to artificial lighting, smart light switches are the next big thing in home automation. They replace traditional light switches and offer an enhanced, interactive experience.

Enhanced Control and Customization

With smart light switches, you can control the lighting in your home from anywhere. Whether you’re in bed and forgot to turn off the kitchen lights or away on vacation and want to switch lights on and off periodically for security, smart switches make it possible. They also allow you to create custom lighting scenes for different activities or moods, adding a whole new dimension to your home’s ambiance.

Integration with Home Automation Systems

One of the most significant advantages of smart light switches is their ability to integrate seamlessly with other smart home devices. This integration enables you to create a cohesive, fully automated smart home system. You can program your lights to turn on as your smart blinds open, syncing your home’s lighting with natural light patterns for a more natural wake-up routine.

Conclusion: Embracing a Smarter, More Comfortable Home

In conclusion, smart blinds and smart light switches are not just gadgets; they are essential components of a modern, efficient, and comfortable home. They offer convenience, energy savings, and an enhanced living experience. As we continue to embrace smart home technology, these innovations represent a step towards a future where our homes are not just places we live in but are dynamically integrated into our lifestyles, responding to our needs and preferences seamlessly. The future is smart, and it’s here to make our lives more comfortable and our homes more enjoyable.

Delivering positive climate and societal outcomes through effective risk management

Mining is a historically linear process – we take materials from the earth, make products from them and eventually throw them away as waste. With the intensification of climate change, environmental degradation, pollution – all products of linear economies – the mining industry needs to transition to a circular economy and a more sustainable alternative to make better use of increasingly finite resources demanded by world economies, while minimising the negative impacts to people and planet.

Speaking at a panel session at the Invest Africa Mining Series - Driving Sustainable Development - Circularity & ESG in Mining - Bruce Dettling, Mining Broking Leader at Aon Risk Solutions (UK), believes the South African mining industry is making strides towards a more circular economy (CE), with the focus on environment, social and governance (ESG) underpinning it.

“Long seen as the key contributors to the intensification of climate change, environmental degradation and pollution, the mining industry is now increasingly seen as part of the solution. In reality, the fundamentals of ESG have always underpinned mining’s licence to operate. The circular economy (CE) is based on three principles - eliminate waste and pollution through design, circulate products and materials at their highest value and finally, regenerate nature. A circular economy decouples economic activity from the consumption of finite resources – and at first glance, mining and the circular economy are not seemingly compatible. Yet by adopting CE principles, the sector can embrace the opportunities to reduce costs while mitigating risks. 

“There is a growing body of evidence that emphasises ESG’s critical role in ensuring resilience, long-term success, and superior investment returns. We also see that an ESG focus translates into better risk management and outcomes, which means greater insurance capacity and better rates. The early adopters of ESG principles are seeing the benefits of de-risking their operations,” says Dettling.

“From a Social and Governance perspective, mining companies also see the benefits that come with better employee relations, talent retention, community relations, and reduced violent strikes/riots. The industry is also in desperate need of top talent to help take it forward in the energy transition – and attracting and retaining such talent hinges significantly on the operationalising of ESG,” he adds.

What does ESG mean from an insurance and risk management perspective for miners?

While the insurance market will continue to provide coverage solutions and capacity for miners making the transition to cleaner, greener operations, acknowledging that transition will take time, the writing is however on the wall.  ESG is in sharp focus in the underwriting community.

In 2015 the insurance market first became impacted by thermal coal policies when most of the European insurers signed up to the Paris Accords, triggering a harsh decline in capacity as most global insurers were swift to exit the coal sector. What was initially anticipated to be a gradual withdrawal turned into an immediate disruption, with reduced capacity and rates that increased exponentially. 

Eric Anderson, Aon’s President, presenting on this issue in Bermuda, articulated it best when he said that carbon-intensive businesses need support from the insurance sector to transition, rather than being abandoned. “In order to decarbonise, we need massive investments in new technology and new resources, both public and private. That capital will require protection, so walking away from carbon-intensive businesses in the short term, with no plan to transition, will leave a power generation void, particularly in developing countries. It will also strand that workforce and leave them without family-sustaining wages.” Andersen explained that none of the private, public and social sectors can get to net-zero without the help of the others. He identified a need to collectively create the conditions that leverage the talent and creativity of the best scientists, engineers, technologists and inventors, and which provide the opportunity to create a financial return. “This combination will require a market to measure, price and transfer risk.”

South Africa’s Mining Sector Embraces ESG

Bruce Dettling adds that more needs to be done to recognise the important progress made by South Africa’s mining sector on the ESG front – take up of renewable energy is one example.  “There’s no escaping the energy intensiveness of mining with a traditional reliance on diesel and grid electricity bringing elevated levels of carbon emissions. South Africa’s constrained grid supply and load shedding has seen a rapid transition to renewable energy sources, including solar and wind energy, helping to regenerate natural systems and reduce emissions.

“Another key consideration is that the energy transition will put pressure on the demand for Africa’s mineral wealth, and vast volumes of copper, lithium, cobalt, platinum, and manganese will be needed – increasing the number of mines is not going to be sufficient to provide the critical minerals that the world needs. Energy transition minerals are now centre stage in the mining and metals industry, bringing new revenue opportunities for the industry, creating jobs and helping to diversify coal-dependent economies.”

Dettling also points to innovation in the reprocessing of tailings dams. “Technology has increased the level of recovery that can be taken from the waste dumps. There is massive room to reduce water usage in tailings by recycling, reusing, concentrating and reclaiming. Solutions like dry stacking to dewater mine tailings also eliminate the risk of tailings dam failures – a key consideration in any mining risk management programme and of critical importance to local communities. The devastating Brumadinho tailings dam disaster in Brazil in 2019 is a case in point. The dam collapse firmly threw the spotlight on how mining companies manage and monitor tailings storage facilities and significant innovation is going into de-risking them,” says Dettling.

Managing Risk in a Complex, Interlinked Environment

Transitioning to cleaner technologies, embracing renewable energy and adopting sustainable practices are imperative, but will take time and also carry significant risk.  Mining companies must maintain effective, whole-enterprise risk management practices that consider expanding ESG expectations and reflect the industry’s rapidly rising and complex insurance needs.

Working with Aon brings global experience and expertise, helping to optimise strategic risk-taking and risk-management activities across every facet of the mining operations, with immediate access to many of the leading mining insurers across the globe.

Aon’s role is to support mining businesses to make better decisions around every aspect of their insurance and risk management programmes, ensuring that they are effective and harmonised to reduce the cost of risk, to satisfy a breadth of regulatory requirements and ensure that no aspect of coverage is overlooked.

The energy transition is not an overnight process and will take years to achieve. During this time, it’s crucial that carbon-intensive mining businesses are able to effectively demonstrate all their ESG initiatives to ensure that their efforts are recognised by insurance carriers. This is where Aon’s expertise and global market reach can help change an Insurer’s viewpoint by demonstrating real value from an underwriting perspective.

“The mining businesses that embrace ESG as strategic investments, rather than cost centres, will realise the benefits in terms of their sustainability, insurability, lower risks and operating costs and ultimately, competitive advantage. The reality is that the availability of any finance and investment depends heavily on the insurance solutions available. This can be the deal breaker in the event that adequate risk transfer capacity is not available due to a less than favourable risk rating based on poor ESG fundamentals,” says Dettling.

“We understand that the miners of the future are expected to provide many different types of value, including social and environmental, and that this involves not only mitigating the negative impacts of their operations, but actively creating positive ones too,” concludes Dettling.

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About Aon

Aon plc (NYSE: AON) exists to shape decisions for the better — to protect and enrich the lives of people around the world. Our colleagues provide our clients in over 120 countries and sovereignties with advice and solutions that give them the clarity and confidence to make better decisions to protect and grow their business. 

Follow Aon on LinkedIn, X,Facebookand Instagram. Stay up-to-date by visiting the Aon Newsroomand sign up for News Alerts here.

President Ramaphosa's recent address at the 2024 Mining Indaba resonated with many in the industry. His acknowledgement of mining's vital role in South Africa's economy, coupled with outlined efforts to address key challenges, offered a glimmer of hope. However, Webber Wentzel's mining experts believe true progress demands moving beyond words and translating plans into concrete action.

While the government's recognition of critical areas like energy security, liberalisation of the rail sector, regulatory reform and illegal mining is commendable, concerns linger. The pace of implementation remains a pressing issue, with delays serving only to increase risk and harm to the industry and its role players. Delays in finalising the cadastral system, realising energy plans and rail reform create uncertainty and hinder growth. Furthermore, the speech lacked granular details on crucial aspects like timelines, budgets, and private-sector participation models for infrastructure projects. Addressing these concerns is paramount to building trust and attracting much-needed investment.

Bottlenecks within the sector demand more than mere acknowledgement. Initiatives to combat cable theft and improve freight logistics are welcome, but their tangible impact on current operational challenges, particularly on export, requires clearer articulation and demonstrably faster results. The human cost of the just transition cannot be understated. The President rightly mentioned it, but the roadmap needs specific plans for reskilling, social support, and community upliftment in regions like Mpumalanga.

Beyond acknowledging challenges, Webber Wentzel proposes concrete actions for a more impactful approach:

1. Prioritise action over speeches: Eloquent speeches are inspiring, but concrete action speaks volumes. Translating plans into tangible initiatives with clear criteria, deliverables and performance indicators is crucial. A shift from rhetoric to results, with regular progress reports, and open communication channels to hold stakeholders accountable, is necessary.

2. Foster deeper public-private partnerships: Public-private partnerships (PPPs) offer an effective way to expedite infrastructure development. The government should create an environment conducive to PPPs, fostering deeper collaboration with private investors and leveraging their expertise and capital, rather than preventing the realisation of benefits of PPPs to be stalled (or aborted) because of excessive red tape and unnecessary regulatory hurdles.

3. Address regulatory inefficiencies: Streamlining processes, reducing bureaucratic hurdles, and ensuring transparency in licensing and permitting procedures are vital. Delays and red tape stifle investment and innovation. A more agile, transparent and efficient regulatory framework will unlock the sector's true potential.

4. Prioritise community upliftment: Mining communities deserve more than just words of concern. A collaborative effort between the government, mining companies, and NGOs to invest in skills development, infrastructure projects, and sustainable livelihoods in these communities is crucial. This not only uplifts lives but also creates a more stable and secure operating environment for mining companies. The President referred with approval to various Employee Share Schemes established by employers, which ensure employee participation in employer success. However, we have, in the recent past, seen many strikes by the employees who benefit from these schemes, demanding that all available funds be paid to them without delay.

5. Create an attractive investment climate: Fiscal incentives are essential to attract new investment. Tax breaks, streamlined regulations, and fiscal stability can make South Africa a more competitive destination for investors. This will not only create jobs but also diversify the economy and reduce reliance on traditional mining activities. It is also important to create economic opportunities, such as improved rail and port infrastructure that will allow existing tax collections to be maximised.

6. Focus on beneficiation: Exporting raw materials generates limited value. Encouraging value addition within South Africa through incentives for processing and manufacturing, rather than simply exporting raw materials, is imperative. This will create higher-skilled jobs, boost the manufacturing sector, and contribute to a more diversified and resilient economy.

7. Energy Reform: The removal of the licensing threshold for embedded generation and the launch of the renewables, battery storage and gas-independent power producer programmes are to be commended as examples of concrete steps having a positive impact on the mining industry. The industry would benefit from further concrete steps towards transmission and distribution grid expansion, clear grid access rules, standardisation of rules for municipal grid use and an integrated resource plan that embodies the least cost sustainable pathway to energy security in South Africa as a whole.

8. Rail Reform: Government's formulation and approval of the National Rail Policy, the Economic Regulation of Transport Bill and the ratification of the Luxembourg Rail Protocol all should be commended. However, bold and decisive leadership is now vital to accelerate the implementation of the National Rail Policy, specifically concrete actions to liberalise the rail sector by implementing private, third-party access to the rail network, is crucial and is capable of implementation now.

In many of these instances, public and private partnerships are essential to address and implement the suggested actions (noting that PPPs, in the conventional sense, are not a prerequisite to the reforms contemplated in the National Rail Policy). The sector's true potential for inclusive growth, job creation, and sustainable development can be unlocked.

The mining industry must go beyond rhetoric and adopt real action if it is to genuinely fulfil its crucial role in constructing a more promising future for South Africa. It's imperative to put plans into action and write a new chapter in South African mining history—one that is inclusive, innovative, transformative, and growth-orientated—where no one is left behind.

In a world that’s being battered by extreme weather occurrences due to climate change, it seems like heresy to claim that coal still has a place. The fact is that it does, but on condition we can clean up its act.

South Africa’s loadshedding crisis continues to underline the importance of a stable electricity supply to keep the economy moving. At least for now, the controversial term “baseload” in this country indicates electricity generation from coal and, to a lesser extent, some nuclear. Peak demand has always been met by our pumped-storage schemes that store and release water to generate electricity, as well as open-cycle gas turbines that run on diesel. Increasingly, renewable energy options are adding to capacity and displacing some of the coal-generated supply from ageing power stations, but commercial, industrial and manufacturing enterprises cannot function to capacity without a stable supply of reliable, baseload electricity.

“The point is that South Africa, and indeed the world, needs a mix of energy sources,” says Gcobisa Melamane, clean coal research specialist at the South African National Energy Development Institute (SANEDI). “None of the sources and technologies we currently have can meet the needs of economies and societies on their own.”

South Africa’s Integrated Resource Plan, drawn up by the Department of Mineral Resources and Energy (DMRE) in 2019 and currently under review, recognises this fact by placing coal status quo at more than 80% of the energy mix. While that percentage is targeted to decrease by almost half (42%) by 2030, coal is expected to remain the dominant energy source for the foreseeable future. In addition, the coal mining and energy generation industries employ thousands of people, adding a socioeconomic impact to the process of transitioning from one type of energy sources to another.

South Africa is not alone in its reliance on coal. Over the past year, several of the European countries that had previously sworn off coal had to fire up their coal power stations again to deal with the energy shortages that resulted from geopolitical circumstances in the northern hemisphere.

Melamane adds, however, that it’s not business as usual in the coal space. Significant time, effort and resources are being dedicated to developing technologies that will limit the environmental impact of coal-fired electricity generation. “SANEDI is one of the organisations in the country researching technologies that can make the use of fossil fuels cleaner so that we can keep using it in a more responsible manner in South Africa. We still have abundant coal resources and it remains a cheaper source of energy. We need to use it while we have it, which makes cleaner technologies a necessary and worthwhile investment.”

Against this backdrop, SANEDI launched its Cleaner Fossil Fuels & Related Technologies programme in 2021 to develop a roadmap for the country to improve the environmental footprint of its energy mix. 

In terms of fossil fuels, the first phase of the project identified all the technologies that currently exist. In phase two, 18 focal technologies were selected for further study and to understand where and how they are being used globally. In Japan, China and the US, an array of cleaner coal technologies are already in demonstration and even commercial use. The third phase, which kicked off at the end of September this year, is investigating which of the focal technologies are easily adoptable from a grid perspective, taking into account cost of implementation, regulatory compliance and the skills required. The roadmap study is planned to be completed by the end of March 2024 and, once the relevant stakeholders have approved it, South Africa’s roadmap to cleaner fossil fuels will be published.

“Our country is responsible for 2% of global greenhouse gas emissions but that means nothing to people here whose health is impacted by poor air quality,” says Melamane. “Improving human health and living conditions is one of the main drivers of the research we do.”

The focal technologies in SANEDI’s cleaner fossil fuels roadmap include high-efficiency low-emissions (HELE) carbon capture and sequestration, underground coal gasification to produce syngas for power generation with lower levels of greenhouse gases, and equipment to reduce nitrogen and sulphur dioxides and particulate matter in flue-gas emissions. Most of these have been proven capable of reducing harmful emissions by up to 300kgCO2/MWh in international studies. “SANEDI champions collaboration with local and international research organisations to ensure we learn from each other and don’t waste limited resources on redoing work that has already completed elsewhere,” says Melamane. 

For as long as South Africa needs coal to help meet its energy demands, the work to limit its impact on the environment has to continue. We simply cannot afford to satisfy our need for electricity at the expense of the health of humans and the environment.

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Follow SANEDI on social media Facebook: @sanedi.orgTwitter: @sanedi_orgLinkedIn: @sanedi.org

About SANEDI

The South African National Energy Development Institute (SANEDI), established by the Government, directs, monitors and conducts applied energy research to develop innovative, integrated solutions to catalyse growth and prosperity in the green economy. It drives scientific evidence-driven ventures that contribute to youth empowerment, gender equity, environmental sustainability and the 4th Industrial Revolution, within the National Development Plan (NDP), through consultative, sustainable energy projects. For more information, go to www.sanedi.org.za.

Don't be fashionably late to the Real Estate Party. 2024 is poised to be an exciting time for homeowners. The tide is turning, and so is South Africa’s property market.

Like a child taking its first steps with cautious optimism, South Africa is beginning to see signs of growth within its real estate market. This potential is expected to drive positive sentiment, bringing commitment and confidence back to the property market. 

Multi-award-winning real estate company, Byron Thomas Properties, predicts the following significant factors on the horizon for the property market in 2024:

1. Interest rates are on the decline. 

Rising interest rates have resulted in a poor buyer market over the past few years with buyers either only qualifying for lower bonds, or not getting finance at all. The good news is that this is set to turn around over the coming year.

Interest rates are likely to start declining in the coming months and should continue to do so into 2025. This will lead to a marked improvement in consumer sentiment and buyer enthusiasm. South Africa should start seeing more investor buyers coming back into the market as finance will be cheaper allowing for better returns.

In recent years, the market has seen many buyers holding off on taking the big step into home ownership, opting to rent instead. With interest rates easing, many hesitant first-time buyers will soon be able to afford to buy their dream homes. This will directly affect demand and negatively affect the pricing of popular sectional title units.

2. Geo-political situation.

With the world in turmoil, South Africa’s socio-economic issues seem like less of a deterrent than before. Emigration and semi-gration have slowed down, and many previous South African homeowners turned expats, are now returning home.

With more businesses requiring employees back to the office, areas situated close to ever-expanding business nodes, as well as in close proximity to top schools both private and public, hospitals, transport routes and major highways will remain in high demand.

New entrants into the job market will have a positive spin-off for investment buyers as demand for rentals should also start to increase, providing decent yields which have not been seen for a few years.

3. Elections are the big talking point.

While the outcome of the upcoming national elections can't be predicted, the results are sure to usher in some critical shifts in power. These will have short-term effects on the property market, and longer-term effects on the South African economy. The upside of this uncertainty? Civil sentiment is quickly shifting towards positive outcomes emanating from political changes.

4. Infrastructure and costs

Suburbs seem to be going through short-term pain for long-term gain, with infrastructure upgrades taking place. New water pipes, sewer lines, potholes repairs, and electrical substations have been, and continue to be installed. While we would all like any form of outage to be a thing of the past, this will unfortunately not happen overnight. 

The private sector also seems to be stepping up, with initiatives such as the 'Pothole Patrols', and improved community security surveillance.

Homeowners have taken power cuts and poor infrastructure into their own hands, installing solar/backup power solutions, boreholes, and water storage tanks including rainwater harvesting, reducing their reliance on municipal services while increasing their use and enjoyment of their homes.

Reducing reliance on the grid has its costs but also has its benefits. This is of course not first prize, but South Africa is not the only country facing infrastructure challenges, the grass may seem greener but there is no utopia anywhere in the world.

5. Stock levels are on the decline.

Looking at market trends from 2015-2017 (the height of the market over the past decade), the property sector experienced a 'sellers’ market' where demand outweighed supply. Currently, stock levels are slowing which bodes well for property prices, with supply subsiding and buyer demand increasing. Interest rates in 2015-2017 were between 9,5% - 10,25% and forecasts indicate that South Africa is heading back towards those levels over the coming years.

There remains much that needs to happen before a complete shift from a ‘buyer’ to a 'sellers' market, but the indications are pointing in this direction which is very good news indeed.

6. Value for money and quality of life.

Property prices are currently at an affordable level, offering great value for money and a lifestyle that is not easily replicated anywhere in the world. Many suburbs have introduced numerous community and security initiatives, making these suburbs safer in turn increasing the desirability. South Africa’s suburbs are also alive with community initiatives and participation, as a move towards more civil-minded community action takes place.

The property cycle always turns. 2024 is expected to bring growth in the property market across both the freehold and sectional title segments. The time to buy is sooner rather than later.

Buyers, it is key to get your ducks in a row by getting pre-qualified for a bond. Get your transfer costs together so that when the right home comes to market you are ready to strike.

For further information please www.byronthomasproperties.co.za 

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Distributed on behalf of Byron Thomas Properties by Angelfish PR.
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ABOUT BYRON THOMAS PROPERTIES 

Established in 2020, Byron Thomas Properties is no new kid on the real estate block. The Multi-Award-Winning Agency is a trailblazing force in real estate and a beacon of innovation rooted in the seasoned expertise of founder Byron Thomas, a top-selling agent with decades of experience.

Byron Thomas Properties is on a mission to redefine the traditionally transactional agent-client relationship, focusing on empowering sellers, fostering transparent and authentic connections, and impacting lives.

Adapting to the evolving post-Covid landscape, our company is dedicated to building dynamic relationships through reliable, knowledgeable agents who go the extra mile, every time. We prioritise service excellence, recognising that today's real estate demands innovative, client-centric solutions.

With a core belief in making a difference, Byron Thomas Properties guides clients through the intricacies of buying and selling, leveraging 70 years of cumulative sales experience. Our commitment to excellence is proven by repeat business, validating our ethos of innovation, integrity, and client-centric success.

By: Luca Ceschinelli, Project Development Manager at Aggreko Africa, Middle East, and Asia 

The mining industry has historically relied on two primary energy sources to power operations - onsite diesel generators and grid electricity. While these traditional approaches provide a baseline of energy, they come with drawbacks with proven limits in resilience and environmental sustainability. 

Onsite Diesel Generators

Diesel generators have been a staple of mining operations for decades. They offer the benefit of being installed onsite, providing reliable power even when grid electricity is interrupted. The fuel can be trucked in and stored, buffering against supply chain disruptions. 

However, diesel comes with downsides. Fuel storage and transportation are hazardous. Diesel prices fluctuate, making long-term operating costs uncertain. Generators require regular maintenance and can unexpectedly break down. Air emissions impact the local environment and health. Overall, complete dependence on diesel for primary power increases risk exposure with notable cost of operations. 

Grid Electricity

Many mines supplement onsite diesel with grid electricity imported from public utilities. Grid power provides affordable energy without capital investment. However, grid infrastructure is vulnerable. Severe weather, wildfires, cyber-attacks, and other grid disruptions can suddenly leave mines without power. Lead times for utilities to restore service may extend for weeks. Grid reliance alone is an energy risk. 

While diesel and grid power enable baseline operations, they fall short of providing true energy resilience and offering environmentally friendly power for modern mining needs. Their limitations have spurred interest in renewable energy to redefine mining operations.

Leveraging the knowledge and experience in delivering projects on a global scale, Aggreko offers energy services that are customised on the specific mining needs, with a proven track record in delivering energy solutions that are resilient and support your mine’s energy transition journey.  

As South Africa looks set for a continuation of an unprecedented level of power outages, many parts of the country are also facing looming threats of water shortages and a major input in electricity generation. Matthew Hall, Chief of Products at Rectron outlines the importance of investing in commercial alternative energy solutions.

Increasing extreme weather events due to greenhouse gas emissions from human activity is pushing humanity to a state of crisis, from which many communities may never recover. According to the latest data from the World Bank, South Africa emits 6,7 metric tonnes of carbon per capita each year, compared to 4,3 as the global average. As some of the biggest emitters, private sector industries have a key role in going green and reduce the country’s overall carbon footprint.

As far back as 2018, the Union of Concerned Scientists predicted even more frequent and intense heat waves, all the way through to 2100. Already, we are seeing a variety of climate change related to extreme weather, including devastating storms, droughts, and floods.  

To ensure society’s climate change resilience, nations and organisations are working to transition to a more sustainable energy source. Unlike finite fossil fuels, renewable resources such as solar and wind are abundant and can be harnessed for long-term energy needs, and with significantly less water usage.

The continuous advancement in renewable energy technology has driven innovation in renewable resources, enhancing efficiencies and making these technologies more affordable. With the expected rise in electric vehicles (EVs), organisations that have greater control of the power supply can confidently invest in charging infrastructure to enhance the viability of mass EV uptake.

However, according to the African Energy Chamber’s (AEC) ‘State of African Energy 2023 Q1 Report’, Africa currently contributes only around 2% of global solar photovoltaic (PV) energy and 1% of global wind energy.

Without mass scale renewable energy, Africa will continue to need fossil fuels to achieve its energy goals during the next decade and beyond, which means a reliance on the oil price and Western fuel companies.

A 2023 African Development Bank (AFDB) report stated that the continent has near limitless renewable energy resources, such as wind, solar and Hydro. These, the report states, have the potential to sustainability provide electricity to the 600 million Africans who are currently deprived of it.

This affordable energy resource, its costs driven further down by more accessible technology, has the potential to unlock massive opportunities in manufacturing and beneficiation of resources.

Over time, investments in solar panels or wind turbines can lead to significantly lower energy bills, lowering the cost of people’s lifestyles, as well as the cost of doing business.

In late August 2023, the e Land Bank and Department of Agriculture, Land Reform and Rural Development (DALRRD), launched a R1,2 billion blended finance fund geared towards financing alternative energy solutions, with a focus on energy intensive agricultural activities, such as irrigation, intensive agricultural production systems and on-farm cold chain related activities.

Rather than rely on fluctuating oil prices, which further drive inflation, nations can achieve energy independence and security by making solar, wind, hydro and other renewable resources a bigger part of their energy mix across sectors.

Government, in an effort to drive the development of sustainable solutions and support the adoption of renewable energy, have provided a range of incentives and policies, like tax credits, subsidies, and other financial benefits.

Various sustainability-led African financing products from the Development Bank of South Africa (DBSA), as well as the large commercial banks, have emerged to support renewable energy projects across the continent.

In addition to cost savings, innovation in renewable resources will drive industrial activity, job creation and skills development. According to the National Cleaner Production Centre, South Africa’s (NCPC-SA) annual report for the 2021/2022 period, 39 training events for green skills development. These expert level courses, in partnership with relevant technical and accreditation authorities, trained 484 candidates in a variety of disciplines across the manufacturing, engineering and related fields.

As existing traditional energy companies retrofit their equipment to be more energy efficient and reduce emissions, emerging renewable industries will stimulate economic growth in manufacturing, installation, and maintenance.

Community engagement in local renewable energy initiatives will also ensure that growth directly benefits a broad base of people, and not just large corporations.

AFDB sees alternative energy as a key to unlocking minerals procession. For instance, 80% of African cobalt is refined in China, while price of raw gold is determined by the amount of gold that is refined.

Only a reliable base load of cheap energy can fuel the industrial development needed to establish the required scale of refining capability on the continent, maximising the economic benefit of the continent’s abundant natural resources.

In one of the most significant renewable technologies acquisitions this year, Rectron partnered with Huawei in taking delivery of Africa’s first 1MW battery. Huawei FusionSolar’s LUNA2000-1.0MWH1H1 MW energy storage solution has been installed at Rectron’s head offices in Midrand in an integrated solar system.

As a leading smart device and ICT infrastructure provider, Rectron will be walking the path to reduced emissions and independence for organisations looking for a reliable energy generation and storage solution at scale.