Green Economy Journal Issue 54

G R E E N 

Economy 

journal 

ISSUE 54 | 2022 

STRATEGIC 

ALLIANCES 

A win-win for oil and gas 

14 

TARGETING 

COULD HYDROGEN 

SAVE SA’S 

ECONOMY? 

30 

THE 

TRANSITION 

44 

PLASTIC 

DEMAND 

GROWS

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G R E E N 


journal 

EDITOR: 

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Alexis Knipe 

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Alexis Knipe 


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Melanie Taylor 

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FA Print 

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REG NUMBER: 2005/003854/07 

VAT NUMBER: 4750243448 

PUBLICATION DATE: September 2022 

PUBLISHER’S NOTE 

Dear Reader, 

The slow pace of the roll-out of infrastructure in the energy sector has 

played a key role in precipitating the heightened crisis. 

Eskom has taken two years to enter contracts for the supply of 

833MWh of battery energy storage, eventually signed on 29 July this 

year, and the Department of Mineral Resources and Energy is due 

to publish the long-awaited 513MW Battery Energy Storage RFP by 

30 September 2022. 

This week, Eskom is asking NERSA to approve R16.9-billion for diesel 

to fire the Open Cycle Gas Turbine (OCGP) plants for the upcoming 

financial year. How much of this wasteful spending year-on-year could 

have been avoided had Eskom been able to acquire these battery 

projects on schedule, along with untold generation capacity of wind 

and solar, part of which would also have offset the diesel spending? 

One must commend the efforts of the presidency in trying to speed 

things up, while sadly now being hamstrung by local strikes and 

international supply chain challenges. 

Nevertheless, and as the country limps from one infrastructure crisis 

to the next, consumers and businesses are moving at pace to become 

more self-reliant for energy, water and waste services, catching up, as 

it were, to security and education as services one simply can no longer 

expect government to deliver. 

This trend to self-sufficiency, as it happens, is perfectly in line with a 

move to more sustainable living and operating, and so therein lies the 

silver lining, that by the time we are through this energy crisis, we will 

have undergone a paradigm shift the likes of which could not possibility 

have been imagined in South Africa. 

Strength to you, 

Publisher 

www.greeneconomy.media 

All Rights Reserved. No part of this publication may be reproduced or transmitted in any way or 

in any form without the prior written permission of the Publisher. The opinions expressed herein 

are not necessarily those of the Publisher or the Editor. All editorial and advertising contributions 

are accepted on the understanding that the contributor either owns or has obtained all necessary 

copyrights and permissions. The Publisher does not endorse any claims made in the publication 

by or on behalf of any organisations or products. Please address any concerns in this regard to 

the Publisher. 

EDITOR’S NOTE 

In the move towards green economies, it’s become apparent that there’s 

a need to not only introduce new emission reduction technologies 

and green energy sources, but also to adopt new practices that allow 

our existing infrastructure to be repurposed, and which bolster other 

green energy generation models. 

Considering that South Africa has one of the highest renewable 

energy generation potentials in the world and with existing 

infrastructure in place, the opportunities exist. Given that South Africa 

is the world’s largest producer of platinum, there is an opportunity for 

it to be a leading manufacturer of underlying technology. 

Establishing widescale pipeline distribution is key to enabling a 

high-penetration hydrogen economy. Again, this presents an exciting 

opportunity in terms of infrastructure development. Could hydrogen 

be the future of our economic success? (Page 14). 

We aim to transition to a green economy, combining economic 

development, social progress and environmental preservation. Both 

the economy and society remain, however, highly unsustainable. 

Targeting the transition to an inclusive green economy therefore 

signifies a massive shift, commanding a new model of development 

(page 30). 

There are global initiatives to move towards renewable energy 

sources and public consciousness of sustainability is increasing. As 

such, there is opportunity for new PV technologies to enter the mix 

(page 36 and 40). To combat the impact of plastic on environment, 

the industry is transitioning towards a circular economy (page 44). 

Increasing agriculture to feed the growing world population is a key 

sustainability challenge too (page 50). 

Enjoy this issue! 

Alexis Knipe 

Editor 

5

1012344 


G R E E N 

journal 

CONTENTS 

9 NEWS AND SNIPPETS 

14 ENERGY 

Could hydrogen be the future of SA’s 

economic success? 

18 OIL & GAS 

Strategic Alliances 

22 Growing SA’s economy: Petroleum Agency 

South Africa 

24 WASTE 

SRK Consulting: high standards of waste 

management in Angola’s oil sector 

27 ENERGY 

Loadshedding and the rising petrol price 

29 SKILLS DEVELOPMENT 

NCPC-SA developing green skills 

30 SPECIAL REPORT 

Targeting the transition 

33 WASTE 

Bemical and the 11-million elephants 

34 ENERGY 

NMISA saves energy for SA 

36 The future is bright for perovskite PV 

40 Going beyond silicon’s limitations 

43 WASTE 

A successful event for Plastics SA 

44 Plastic demand grows 

47 PRODUCT 

SA’s advanced PET strapping solution 

48 MOBILITY 

A rolling start for EV manufacturing plans 

50 AGRICULTURE 

Building resilience of African farming 

systems 

09 30 44 

THAT’S SUSTAINABILITY, FIRST. 

As the first to introduce a CO 2 

rating system across all products, AfriSam 

became the first cement manufacturer to achieve a 33% reduction in 

CO 2 

emissions since 1990. It’s just one of the firsts we’re proud to have 

laid the foundations for since starting our sustainability journey over 

three decades ago. As the industry’s leaders in sustainability, putting 

sustainability first has been, and always will be, second nature to us. 

READ REPORT 

THOUGHT [ECO]NOMY 

greeneconomy/report recycle 

To access the full report in our Thought [ECO]nomy report 

boxes: Click on the READ REPORT wording or image in the 

box and you will gain access to the original report. Turn to the 

page numbers (example below) for key takeouts of the report. 

key 

02 

key 

key 

takeouts 

takeouts 

takeouts 

of the 

of the 

of the 

report 

report 

report 

01 03 

www.afrisam.com 

Creating Concrete Possibilities 

7

NEWS & SNIPPETS 

CABINET ON ENERGY 

Cabinet conveys regret that intermittent loadshedding is happening 

at the time when government is vigorously engaged with the 

interventions announced by President Ramaphosa in July 2022 to 

overcome the surmountable energy crisis facing the country. 

Public Enterprises Minister Pravin Gordhan recently presented 

a briefing on the capacity of Eskom and a progress report from the 

Technical Committee of the National Energy Crisis Committee. 

Cabinet is still deliberating on these reports and following further 

interventions, announcements will be made. 

Meanwhile, Cabinet remains committed to resolving the issue of 

energy security in the country and welcomes the concerted efforts 

being made by government and stakeholders to find a permanent 

solution to end loadshedding. 

POWER STATION TO BE RECYCLED 

The Komati Power Station is a coal-fired plant that started 

operating in the 1960s, and finally is being shut for good. Eskom’s 

plan, part of the just energy transition (JET), is to repower 

Komati with renewable energy, and repurpose it into a training 

facility for Eskom employees and the surrounding community to 

be able to operate renewable energy facilities, and as a factory 

for the assembling of containerised solar microgrids. 

There are 600 employees at the Komati Power Station in 

Mpumalanga – 200 permanent staff, 200 contractors and 200 ERI 

Eskom road tech industry contractors. 

Mandy Rambharos, GM of 

the Just Energy Transition 

programme at Eskom, at 

the signing ceremony for 

the development of the 

power station, said they are 

not retrenching any of the 

full-time Eskom employees 

– they will be reskilled and 

redeployed at the training 

facility. 

Eskom is partnering with the South African Renewable Energy 

Technology Centre (Saretec), which will run the training, and the 

Global Energy Alliance for People and Planet (Geapp), which is 

providing the funding of $2-million over the next two years. 

The goal is to train 500 workers, some of them existing Eskom 

workers and some community members in Mpumalanga. Saretec 

will educate, reskill and upskill Eskom Komati Power Station staff 

and qualifying beneficiaries from the surrounding communities. 

The power station will be repowered with 150MW of solar, 

70MW of wind and 150MW of batteries, which will most likely be 

built under an EPC (engineering, procurement and construction) 

contract, because it requires a high skill level. 

SAVE THE RHINO 

South Africa’s commitment to ensure the protection of its black 

and white rhino populations is clear from the partnerships 

that have been created over the years and the resulting 

collaboration, to conserve the species, says the Minister of 

Forestry, Fisheries and the Environment, Barbara Creecy. The 

proportion of rhino on private land has grown from about 

30% in 2012 to about 60% at present, complemented by antipoaching 

successes. 

The Department of Forestry, Fisheries and the Environment has 

recognised the significant progress made on security, biological 

management and responsive legislation with some critical 

milestones remaining outstanding, most notably on community 

empowerment, demand management and Cabinet approval of 

the National Strategy to Combat Wildlife trafficking. 

In terms of the country’s overall rhino conservation plan, the 

private sector is playing an increasing role in South Africa and the 

rest of Africa. At present, the private sector is conserving about 

60% of South Africa’s national herd. Therefore, government takes 

building partnerships and relationships of utmost importance in 

the conservation of this iconic species. 

Over the last year conservation and anti-poaching efforts 

have intensified countrywide as a joint effort is made by the 

collaborative initiatives of state-owned conservation areas, 

government and private landowners to reduce the poaching of 

rhino in South Africa. 

Information collected and communication flows through the 

Environmental Enforcement Fusion Centre (EEFC) continues to 

support the teams at both a tactical level and strategic level in 

both the private and public sector. 

From a biological management point of view, the department 

in partnership with the Rhino Management Group and all relevant 

stakeholders are in the process of revising the Biodiversity 

Management Plans for rhinos. 

An additional important measure of recent success in the 

management of the rhino meta-population has been the 

successful translocation of 27 rhino from South Africa to the 

Zinave National Park in Mozambique. 

9

NEWS & SNIPPETS 

PRIVATE SECTOR REQUIRED 

Minister Senzo Mchunu says there is a need to increase private 

sector involvement in water services to achieve the 2030 

Sustainable Development Goals (SDG). 

The minister spoke at the International Water Association World 

Water Congress in Denmark, in September. This year, the summit 

focused on Innovative Funding for SDGs and Climate Change. 

In his speech, Minister Mchunu indicated that some of the 

challenges that hinder achieving the SDGs are the way municipalities 

run water and sanitation services. Minister Mchunu explained 

that municipal water supply is supposed to be managed as a selfsustaining 

business, with maintenance, operation and refurbishment 

costs covered by revenue from the sale of water. 

“In many municipalities, water and sanitation services are in a poor 

state and deteriorating,” said Minister Mchunu. “And the percentage 

of the population with access to reliable and safe water and sanitation 

services is declining. 

“Causes include weak governance and corruption, poor billing and 

revenue collection, poor asset management, operations management, 

maintenance and a lack of recruitment of people with the required 

qualifications and experience.” 

The minister said where there is a constraint in the municipalities 

in terms of finance and expertise, there is substantial expertise in the 

private sector and banks and pension funds. 

“However, private sector involvement in municipal water and 

sanitation services is considerably low compared to other middleincome 

countries. The reason for this is a lack of capacity in 

municipalities to take bankable projects to the market, coupled 

with a Public Private Partnership (PPP) regulatory framework, which 

means it takes eight to 12 years to facilitate a PPP. 

“In this context, we are doing two key things, a) Putting in place 

public-private collaboration agreements with industries, such as the 

mines and agriculture, for joint funding of infrastructure projects. 

This agreement will simultaneously provide bulk water to industry 

and reticulated water to communities, and b) putting in place a Water 

Partnerships Office (WPO) to assist municipalities [on how] to contract 

for PPP and independent water producers (IWPs),” he elaborated. 

The WPO is a ringfenced entity in the Development Bank of 

Southern Africa, and the work of such a WPO will be assisted by 

the PPP regulatory framework currently being finalised by the 

National Treasury. 

Minister Mchunu concluded by assuring all relevant stakeholders 

that South Africa is keen to learn from the experience of other 

countries as it embarks on this journey. 

THE ALL-NEW 

COROLLA 

CROSS 

CANNABIS MASTER PLAN 

The wheels of change are rolling and the North West Department 

of Agriculture and Rural Development stands firm on ensuring the 

Cannabis Master Plan finds space in agriculture transformation 

in the province. This follows the Department hosting the hybrid 

Cannabis Lekgotla at the North West University in September. The 

first of its kind in the North West Province, the gathering met its 

objective of discussing the rollout of the National Cannabis Master 

Plan and engaging on the economic purpose of commercialisation 

and development of the herb. 

MEC Desbo Mohono in her opening remarks said that the 

department provides a stark reminder that every avenue to 

create employment and fight poverty must be pursued, allowing 

businesses to grow, emerge and thrive, while also using the 

capabilities of the state to create a conducive environment 

for farmers. Mohono said, “This is hands on deck indeed and a 

dream come true for people of the North West province, for they 

too deserve to benefit from the value chain of this herb. As the 

government, we always appreciate the direct, considered and 

constructive approach that higher institutions of learning take in 

responding to the challenges facing our country. That is why we 

saw it fit as the North West Department of Agriculture and Rural 

Development to rope in North West University, in particular, 

looking at their research output, which is amongst the best in the 

entire country.” 

In conclusion, MEC Mohono said the Lekgotla unlocked many 

opportunities through commissions and the education drive. “In 

going forward, we will march to our traditional leaders as the 

department in forging a partnership and making sure that our 

people in communal land are not left behind by the train of this 

economic hub. The department will also set aside a certain amount 

of money in making sure that we train our farmers fully about how 

to be experts in this field. This will be done through roping in 

experts that we have met in this Lekgotla because we do not want 

to take a ride with our people’s time,” explained Mme Mohono. 

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10

ENERGY 

ENERGY 

COULD HYDROGEN BE 

THE FUTURE OF SA’S 

ECONOMIC SUCCESS? 

If so, how do we get there? 

Novel hydrogen technologies bring new challenges to environmental assessment practitioners, 

developers, investors, lenders and regulators as the risks and impacts associated with hydrogen 

production, and specifically green hydrogen, requires further research. 

BY CLIFFE DEKKER HOFMEYR 

The production of hydrogen presents unique environmental 

challenges because it is a water-intensive process that not only 

requires large volumes of water, but also high-quality treated 

water. The desalination of sea water is considered a viable water 

resource option for hydrogen production and offers an opportunity 

not only for further infrastructure development but possible 

opportunity to mitigate South Africa’s water shortages. 

One significant by-product associated with desalination, however, is 

the salt-rich effluent (brine) produced during the process, which is then 

discharged into the ocean and this effluent generation will need to be 

weighed up in the impact assessments. 

Building a desalination plant may trigger an environmental 

authorisation (EA) Listed Activity, subject to the production capacity, 

while the discharge of the brine may also trigger coastal water 

discharge permits. The movement to green hydrogen will also 

allow the desalination process to be powered by renewable energy 

from which the hydrogen itself is generated, allowing for a clean 

circular process. 

14 

In the move towards green economies, it has become apparent 

that there is a need to not only introduce new emission reduction 

technologies and “green” energy sources, but also to find solutions 

and adopt new practices that allow our existing infrastructure to be 

repurposed, and which work in parallel with and bolster other green 

energy generation models. 

Considering that South Africa has one of the highest renewable 

energy generation potentials in the world and with existing 

infrastructure in place, the opportunity exists to invest in electrolysis 

technology. This would also support the platinum sector as 

platinum is a required raw material for both fuel cell and electrolyser 

Establishing widescale pipeline 

distribution is key to enabling a highpenetration 

hydrogen economy. 

manufacturing. Given that South Africa holds most of the world’s 

platinum reserves, and is the world’s largest producer of platinum, 

there is an opportunity for it to be a leading contributor in the 

manufacturing of the underlying technology. 

In terms of repurposing, establishing hydrogen production facilities 

at existing mines and coal-fired power stations, for instance, may offer 

the opportunity to treat wastewater and contribute to combatting 

acid mine drainage where treated contaminated water can be used for 

green hydrogen production. 

The use of hydrogen will play a critical role in the transition of the 

transport sector, which currently accounts for more than 20% of global 

carbon emissions. In this regard, hydrogen can be used as fuel for 

long-haul aviation, maritime shipping, certain road vehicles and heavy 

freight transportation. 

Further, hydrogen can be used as an intervention in other industries 

such as steel production and in cement making; it can be used as a 

cleaned-up chemical feedstock in processes such as fertiliser production; 

it can contribute to the flexible dispatch and long-duration storage 

needs of a high-renewables electricity grid; and it can support contextspecific 

decarbonisation requirements. 

A notable practical benefit to green hydrogen usage is that its 

distribution and storage can be linked to that of natural gas, as 

hydrogen can be stored in aboveground tanks and transported in 

gaseous form via pipelines, liquified for shipment, or even converted 

into denser forms such as ammonia. 

Establishing widescale pipeline distribution is key to enabling 

a high-penetration hydrogen economy. In this regard South 

Africa’s establishment of and upgrades to pipeline infrastructure 

remain a priority as pipelines are conducive to hydrogen 

distribution, which can be carried out in a manner like, and 

potentially together with, the existing distribution and use of 

natural gas. Again, this presents an exciting opportunity in terms 

of infrastructure expansion and development. 

ESG AND GREEN FINANCING 

While ESG standards may initially have seemed somewhat abstract, 

ESG is becoming an increasingly tangible custom in corporate society, 

capable of swaying investor appetite and developer innovations 

towards greener and more socially responsible projects. The more 

investment capital is reserved for greener developments, the more 

developers will focus on projects that align accordingly. 

ESG has become the foremost investment consideration and 

financial institutions must weigh up short-term costs (which are often 

extensive) with long-term benefits (that may likely be unquantifiable). 

Institutions need to design and implement ESG strategies that amount 

to the “tools” to practically implement ESG objectives, without which 

the objections may remain nebulous and ineffectual. 

Considering hydrogen’s versatile application and its emissionreducing 

potential, it could form a key component of impactful ESG 

strategies and stimulate investment in hydrogen projects for their ESG 

potential. For example, hydrogen could be incorporated into projects 

with high revenue-generation potential to make them appealing 

targets for impact investing. 

Examples of such projects include algae farming in South Africa’s 

coastal waters, as algae growth produces hydrogen as a (green) 

by-product, or repurposing existing gas transmission infrastructure for 

green hydrogen distribution. 

Another strategy is improved data analysis, as one of the main 

barriers to companies implementing ESG initiatives is the lack of data 

available regarding its (mainly financial) benefit. By improving data 

analysis techniques, companies will be better equipped to introduce 

tailored ESG objectives that also result in financial gains, including 

those involving hydrogen. 

While hydrogen has major potential in terms of technology 

innovation, sustainable repurposing existing infrastructure, job 

creation, economic recovery and overall contribution to reducing GHG 

emissions, the extent of the potential, the cost, and implementation 

constraints all require further investigation. By bettering research 

and investigation into ESG motivated projects such as hydrogen 

technology and development, companies can confidently develop 

and hopefully easily access investment in green hydrogen projects 

that will bolster their ESG ratings that, and not superficially, reflect 

meaningful impacts. 

Considering hydrogen’s versatile 

application and its emission-reducing 

potential, it could form a key component 

of impactful ESG strategies. 

Although the application of ESG criteria appears to primarily 

feature at the investment decision level, it also plays a vital role in any 

company’s day-to-day operations. Offering a competitive advantage, 

ESG observance at business level will naturally also be more attractive 

to ESG-committed investors and lenders. ESG implementation may 

have reputational benefits and risks risk of reputational harm if the ESG 

goals or outcomes are overstated or otherwise misrepresented. 

To tie back to the need to be conscious of the appetite for increased 

civil challenges against the environmental impacts of infrastructure 

development, stakeholders, including environmental and community 

interest groups, are holding investors and corporates accountable, 

scrutinising environmental and social monitoring reports, publicly 

criticising failures to provide transparent disclosures and instituting 

ESG related litigation. 

In South Africa in particular, with its development needs and just 

transition approach, these challenges are likely to arise irrespective of 

the robustness of an ESG-led investment decision. 

Ultimately, in all ESG initiatives there needs to be a balance between 

responsibility and profitability, but there also needs to be a mindset 

shift to where costs are viewed as investments. The introduction of 

green hydrogen production technologies will be extremely capital 

intensive and will not be without challenges and barriers, particularly in 

the context of South Africa’s economic, political and social constraints. 

That notwithstanding, hydrogen presents a major opportunity to 

synergise sustainability and profitability and is therefore perfectly 

aligned with South Africa’s just transition goals. 

This article is an excerpt of the Cliffe Dekker Hofmeyr webinar: Could hydrogen really be the future of SA’s economic success? And if 

so, how do we get there? 

15

ENERGY 

ENERGY 

ZERO-EMISSION FUEL CELL EVs 

The Quantron QHM fuel cell electric vehicle (FCEV) was unveiled at 

IAA Transportation 2022 and the first orders for the vehicle have been 

placed. As a result, Quantron ordered 140 fuel cell engines from Ballard 

Power Systems to secure the supply chain, totalling approximately 

17MW with an option to purchase an additional 50 units. The fuel cell 

modules are expected to be delivered in 2023 and 2024. 

As of September 2021, Quantron and Ballard are engaged in a 

strategic partnership to accelerate the development of heavy-duty 

hydrogen vehicles. Ballard has made a minority equity investment 

in Quantron AG as part of Quantron’s financing round of up to 

50-million euros. 

Quantron QHM FCEV at IAA Transportation. 

(Above) The fuel cell from Ballard Power Systems integrated in the 

Quantron QHM FCEV. (Left) FCmove-XD 120 kW fuel cell from Ballard 

Power Systems. 

The zero-emission fuel cell electric vehicle platforms developed 

by Quantron will integrate Ballard fuel cell products for various truck 

applications in Europe and the US. The company’s initial market focus 

is Germany. In the next step, a total of four FCEV models are planned 

in cooperation with Ballard Power for 2023. 

“We are seeing growing global demand and policy support for 

zero-emission transport as companies strive to reach decarbonisation 

targets. This collaboration accelerates our entry into the European 

truck market and aims to have Quantron’s initial hydrogen-powered, 

zero-emission trucks on the road in the next 18 months,” says Randy 

MacEwen, CEO, Ballard Power Systems. 

Quantron AG 

Shell UK Future Fuels hydrogen refuelling station. 

INNOVATION IN HYDROGEN PRODUCTION 

Boasting some of the world’s best renewable resources, the Africa 

Middle East (AME) region is well-positioned to host gigawatt size 

hydrogen production sites. 

“It is anticipated that the region will drive product platform 

and foundational core technology innovation in the hydrogen 

production and energy storage area,” predicts Alan Zhao, who heads 

up the New Power business for power technology leader Cummins 

in the AME region. 

For the New Power technologies requiring large-scale infrastructure 

buildout, Zhao expects these to follow a similar path as the traditional 

internal combustion engine. The full ecosystem of zero-emission 

technology includes upstream, midstream and downstream. Cummins 

continues to invest in other advanced technology to minimise 

emissions, including fuel-agnostic engines such as hydrogen and 

natural gas engines. 

Looking more broadly at the hydrogen economy, Zhao defines 

this as an ecosystem of products and solutions that commences with 

hydrogen generation, to hydrogen and energy storage to applications 

and business segments enabled by hydrogen. In addition, the 

hydrogen economy also means powering economic activities in a 

decarbonised manner to eliminate carbon emissions. 

The hydrogen economy means viable and thriving economies 

based on the hydrogen ecosystem. “This is a critical component 

to deliver sustainable impact. If it is not viable and thriving, it will 

not last, and therefore not deliver the desired lasting impact,” 

stresses Zhao. 

“I believe strongly in a thriving hydrogen economy, based on 

some successful use cases and strong fundamental business cases 

for certain business segments. Those successes provide positive 

reinforcements to the hydrogen ecosystem. However, it will take 

time to go through the innovation adaption curve, just like any 

great innovation,” acknowledges Zhao. 

“There are likely to be some applications and use cases generating 

a great deal of enthusiasm now that will not pass the harsh reality 

of economic viability, but some will return as thriving applications 

when the ecosystem is ready for it,” he points out. 

Zhao concludes: “Successful energy transition requires massive 

Hydrogen refuelling. 

innovation and collaboration from the entire ecosystem of willing 

partners. Friendly competition is a key ingredient to drive critical 

and continuous improvement towards sustained impact. So, while 

competing to offer the best we can at any given stage of this long 

transition, together we can make it happen.” 

James Cannon James Cannon 

Miquel Gonzalez 

16 

17

OIL & GAS 

OIL & GAS 

KEARNEY’S PURCHASING CHESSBOARD 

1 

Typical approach by procurement has 

revolved around encouraging competition 

among suppliers, creating short-term benefits 

but a lack of long-term relationships. 

High 

Innovation 

breakthrough 

Respecification 

Value chain 

management 

Value 

partnership 

Kearney Analysis 

2 

Many categories risk getting positioned on 

the top left with “hot” markets increasing their 

supply power and buyers not having room 

to manoeuvre. 

Supply 

power 

Risk 

management 

2 3 

Technical 

data mining 

Integrated 

operations 

planning 

Cost 

partnership 

3 

The ideal end goal is to explore shifting the 

category dynamic to the top-right quadrant, 

leverage longer-term supplier relations and 

seek joint advantage with the suppliers, such 

as through strategic alliances. 

Co-sourcing 

Commercial 

data mining 

Tendering 

1 

Supplier 

pricing review 

Photographic Services, Shell International Limited. 

Figure 1. Strategic alliances are a good approach when demand and supply power are high. 

Low 

For example, delivering a well 20% quicker at 20% lower cost 

produces more benefits than simply a few days and dollars saved as 

production accelerates in a now viable project. This benefit grows 

as improved delivery continues over the longer term (three years or 

more) and can make borderline or uneconomical projects attractive 

again. Finally, companies can improve project delivery (completion 

timeframes) by 15% if they team more closely with third parties. 

Demand 

management 

Volume 

bundling 

Globalisation 

Target 

pricing 

Low Demand power High 

Strategic alliances are an 

excellent way to reach the next 

level of performance by working 

differently with suppliers. 

STRATEGIC ALLIANCES 

A win-win for oil and gas operators and suppliers 

Let’s be frank. The oil and gas industry excels at many things but getting operators and suppliers 

to trust each other and work closely for mutual benefit is not one of them. Business cycles drive 

relationships, with the price of oil at their heart. 

WHAT WIN-WIN LOOKS LIKE 

Strategic alliances work best when power is high for both the 

demand (operator) and supply sides. Referring to the Kearney 

Purchasing Chessboard, procurement encourages competition 

among suppliers, leading to short-term benefits rather than longterm 

relationships, as shown in the lower right-hand quadrant of 

Figure 1. 

Many categories risk being positioned at the top left, where hot 

markets increase supply power, limiting buyers’ room to manoeuvre. 

The ideal end-goal with a strategic alliance is to shift the category 

dynamic to the top right by leveraging longer-term supplier 

relationships and seeking joint advantage. 

BY KEARNEY CONSULTING* 

Yet, strategic alliances pose real benefits for oil and gas 

(O&G) companies and partners, especially as they tackle 

new challenges on the road to becoming energy companies 

with new suppliers in areas such as wind turbines, solar panels 

or customer and software solutions. Wouldn’t it be great if their 

relationships were decoupled from oil prices and based on win-win 

outcomes instead? 

There are good reasons to pursue strategic alliances now. For 

operators, 70% to 80% of their cost base lies with suppliers, and there 

is a wealth of value to be found there. Traditional contracting offers 

limited opportunity to uncover additional value, and companies need 

more innovative and collaborative ways to work with the supply chain 

that go beyond reducing costs. 

Most would agree the industry could operate better with fewer 

silos – not to mention an efficient request for proposal (RFP) process. 

Plus, managing suppliers for value could be a competitive edge in an 

increasingly complex and tightening market. 

Strategic alliances are an excellent way to reach the next level of 

performance by working differently with suppliers. We have seen a 

10% to 25% reduction in the total cost of ownership when operators 

and suppliers work collaboratively to fully tackle value and costs. 

We’ve also seen value unlocked in a multiple order of magnitude. 

Article courtesy of Kearney Consulting 

18 

19

OIL & GAS 

Kearney Analysis 

1. Base cost 

- “True” costs (no 

margins based on 

best historic delivery 

achieved) 

1 

2. Risk and 

inefficiencies 

- “True” costs for 

inefficiencies and lost 

time 

- Incurred as cost 

or accrued as 

margin driving 

efficient delivery 

and continuous 

improvement 

Short-term goals 

3. Fixed fee 

- Fixed fee to ensure 

income margin is 

always captured, 

capping downside 

risk for alliance 

members (10% to 25% 

of typical margin) 

Accrual 

mechanism as 

check and balance 

4. Performance 

margin 

- Margin based on 

non-time-related 

performance levers 

(floating mechanisms) 

Agreed “fair” % 

margin for average 

performance 

2 3 4 

Long-term goals 

5. Long-term 

incentives 

- Additional margins 

split members on 

reaching key project 

or yearly milestone(s) 

5 

Key concepts and guiding principles for commercial framework 

Fosters a one-for-all, all-forone 

spirit among partners 

(win or lose together) 

Incentivises the long term 

while still rewarding 

short-term performance 

No scenario in which 

alliance (non-operator) 

members incur a loss 

- Transparency on cost and margin (open book, true cost) 

- Step-change improvement margins are multiple times normal margins (win-win-win) 

- Average performance results in lower-than-average margin (improvement is needed) 

- Balance of long-term and short-term incentives (weighted towards the long term) 

- Incremental improvement >>incremental margin uplift, step-change improvement >> step-change 

margin uplift 

- Accrual mechanism (#2) to incentivise faster delivery, linked to performance margin (#4) as a check and 

balance to ensure outcomes in performance (such as HSE or quality) 

- The upside (and value potential) for suppliers is not capped 

- Suppliers never lose money (floating fixed-fee mechanism to ensure this) 

Figure 2. The commercial framework needs to drive win-win outcomes and the right behaviours. [Note: HSE is health, safety and environment] 

Strategic alliances work best 

when power is high for both the demand 

(operator) and supply sides. 

Having a commercial framework that drives win-win outcomes 

is paramount (see Figure 2). It can incentivise for the long term 

while rewarding short-term performance. It supports step-change 

improvement margins that are multiple times normal margins (a winwin-win) 

while seeking to improve average performance that renders a 

lower-than-average margin. 

BENEFITS OF A WIN-WIN 

• It delivers mutual value from partnerships. C-level heads on the 

operator and supplier sides will both be dedicated to making 

things work. 

• It improves the teams’ productivity by focusing on standardised 

processes, value-added work and a one-team mindset. Both 

parties will ask, “If we were one company, how would we solve 

this problem?” Then, they’d do it. 

• It leverages data tools to develop value opportunities for all parties 

and stress-tests the framework to ensure win-win outcomes. 

• It uses common language and promotes transparency on 

performance and activities. Partners must be willing to have an 

open book with no hidden margins. 

• It creates the potential for end-to-end value optimisation. 

Strategic alliances are dynamic and require continual crosscompany 

alignment and co-development to keep projects moving 

forward at every phase. Having an objective referee oversee the 

coming-together of partners at every phase is essential. At Kearney, 

we have found it very effective to bring all parties together in 

a room for a joint scrum to collectively work the needs and drive 

consensus and alignment on objectives, identifying the value case 

and principles everyone can work toward from the outset. 

A BREAKTHROUGH ALLIANCE 

Strategic alliances can be valuable for a wide range of projects, 

including drilling and well services, offshore wind, operations 

management (such as turn-arounds) and infrastructure. 

IN PLAIN SIGHT 

The opportunity to form strategic alliances in the O&G industry 

has been there for years. Enduring mindsets – and perhaps being 

comfortable doing things the way they’ve always been done – 

have kept companies from exploring the benefits. A tightening 

market may trigger some to collaborate now, but it is also a smart 

move for thinking five to 10 years down the road. Finding partners 

through strategic alliances ensures operators have the help they 

need and presents an opening for shaping what the market looks 

like in the future. 

*Authors: Christian Tapolcai, Partner and James Pearce, Partner, Kearney Consulting 

20

OIL & GAS 

OIL & GAS 

GROWING SA’S ECONOMY 

Petroleum Agency SA 

commercial oil and gas production, leaving it reliant on imports of the 

fuel. Its search for domestic resources has encountered unprecedented 

opposition in recent months by communities and activist groups 

who have successfully blocked exploration activities by companies 

including Shell Plc. 

“As the Petroleum Agency, we acknowledge that South Africa’s 

upstream oil and gas industry has become litigious,” CEO of PASA, 

Phindile Masangane says. “Steps are being taken to enhance the 

guidelines around local consultation, which have been criticised by 

groups in court, while the regulator looks to increase activity.” 

Production from the newly discovered Block 11B/12B could revive 

PetroSA’s Mossel Bay gas-to-liquids plant which ordinarily produces 

45 000 barrels a day but has run out of feedstock. (PetroSA is South 

Africa’s national oil company and is separate from Petroleum Agency 

SA.) South Africa also plans to use the fuel to transition away from coal, 

which is used for South Africa’s electricity generation. 

Most of the coal consumed locally is utilised not as a final energy 

product but as feedstock, primarily for electricity and synthetic fuel 

production; coal supplies about 77% of the total primary energy 

market in South Africa. It is government’s stated objective to diversify 

the energy mix and environmental pressures suggest that at least part 

of this demand be met by a clean source such as natural gas. 

If TotalEnergies meets the requirements, obtains environmental 

authorisation and starts the development, output could potentially 

begin as soon as 2026 says Masangane. 

Eco Atlantic Oil & Gas Ltd and its partners have hired a rig to start 

exploration in Block 2B, which is offshore South Africa. Masangane says 

that processes leading to the activity have been followed properly. 

The demand for energy has surpassed supply and alternative energy 

sources are being sought to deal with the ever-growing demand. 

Petroleum Agency SA, together with the Council for Geoscience 

and the Department of Mineral Resources, is conducting extensive 

studies into South Africa’s potential shale gas resources. Natural gas 

has been discovered off the west coast of South Africa in the Atlantic 

Ocean (Ibhubesi gas field) and off the southern coast in the Indian 

Ocean (F-A, E-m and other fields of the Bredasdorp Basin). Both areas 

have great potential. 

South Africa has also returned its attention to the Karoo, a gas-rich 

semi-desert region of the country where several wells were planned 

almost a decade ago by Shell and other explorers before environmental 

concerns and legal uncertainty saw activity diminish. 

Regulations were published in July 2022 for public comment by the 

environment minister around hydraulic fracking, a drilling technique 

that raised concerns over water use in the Karoo. 

The government will conduct seismic activity by the end of 2022 to 

determine which blocks to license after the rules are finalised, according 

to Masangane. She says that groundwater and geological studies are 

being conducted in the biodiversity-rich areas. 

Other operations of interest include exploration of the deep water 

and ultra-deep water of the southern Orange Basin. There is continued 

interest in the ultra-deep water of the northern sector. The deep water 

of the southern offshore, soon to be tested by Total, holds exciting 

potential for large oil reserves. 

In addition to well-developed air and rail links, South Africa has 

750 000km of roads and over nine-million registered vehicles. South 

Africa thus represents an important world market for petroleum 

products and this market is expanding rapidly. Since over 60% of 

current demand is met by imported crude there is a ready local 

market for any indigenous hydrocarbons that are discovered in 

South Africa. 

Oil and gas remain the most critical of energy resources, and 

Petroleum Agency SA is in full support of those entering the South 

African oil and gas exploration and production industries. The Agency 

is fully committed to ensuring that our government and policymakers 

sustain the sector for the benefit of all involved and will do everything 

in its power to advance the industry. 

Petroleum Agency SA has been designated by the government as the official agency responsible 

for the promotion and regulation of South Africa’s petroleum resources. The Agency regulates and 

monitors exploration and production activities and is the custodian of the national exploration and 

production database for petroleum. 

Petroleum Agency SA (PASA) is South Africa’s state-owned 

company established through a ministerial directive in 1999. 

The Mineral and Petroleum Resources Development Act 

(MPRDA) came into operation in May 2004 and in terms of this Act, the 

Agency received its mandate to operate. The Agency is responsible 

for the promotion and regulation of exploration and development 

of South Africa’s oil and gas resources. The Agency archives all data 

related to oil and gas exploration and develops the local upstream 

industry for the benefit of all South Africans. 

In terms of strategy, the Agency actively seeks out technically 

competent and financially sound clients to whom it markets acreage, 

while ensuring that all prospecting and mining leases are for the longterm 

economic benefit of South Africa. By application of appropriate 

technology, the agency improves the understanding of the commercial 

potential of South Africa’s natural oil and gas resources to attract 

investment, both locally and internationally. 

By facilitating the process of attracting qualified international 

explorers to invest in the oil and gas sector, PASA can further grow 

the South African economy and contribute to the aims of the National 

Development Plan 2030. The plan envisages that by 2030 South Africa 

will have an adequate supply of electricity and liquid fuels to ensure 

that economic activity and welfare are not disrupted, and that at least 

95% of the population will have access to grid or off-grid electricity. 

Both the National Development Plan and the Integrated Resource 

Plan call for natural gas to contribute a far greater percentage to South 

Africa’s primary energy supply mix. 

Previous challenges affecting investment decisions, such as the low 

oil price and the uncertainty introduced by the MPRDA amendment 

bill, are now a thing of the past. The MPRDA amendment bill has been 

withdrawn from parliament. Both President Ramaphosa and Minister 

Matashe have explained oil and gas exploration will be governed by 

separate legislation, and no longer grouped under general mining 

legislation. South Africa is on the brink of major developments in the 

upstream industry and the next few years will be key in determining 

its future energy profile and how oil and gas contribute to the greater 

energy mix. 

There are currently plans for massive gas production off South 

Africa’s coast. South Africa expects TotalEnergies SE to submit a 

production plan to utilise a prolific offshore gas discovery that will form 

a major part of increasing investment in the sector. South Africa lacks 

There is an excellent case to be 

made for investment in South Africa’s 

burgeoning oil and gas exploration 

and production sector. 

CEO OF PETROLEUM AGENCY SA 

Dr Phindile Masangane is arguably one of the best-qualified women in the South African energy sector. She holds a PhD in Chemistry, an MBA 

from Wits Business School and a Bachelor of Science degree. Dr Masangane has overseen the development and commercialisation of all CEF 

Group renewables, alternative and new technology advancements through strategic partnerships with private and public sector entities. She 

has vast experience in developing, deal structuring and financing of renewable energy projects. She has participated in national energy policy 

development, including for biofuels, renewables and the gas programme. 

22 

23

WASTE 

WASTE 

“To ensure a high standard of design, SRK has in the past applied 

the minimum requirements from South Africa’s Department of Water 

and Sanitation. In recent years, Angola also began developing its own 

regulations – especially regarding characterisation of waste – so we 

incorporate these too,” adds Engelsman. 

This developing legal landscape for waste management requires, 

for instance, more detailed investigation of leachable characteristics 

as well as the total concentration of contaminant of concern in the 

waste. Two streams of testing are therefore conducted – one for the 

leachable concentrations and another for total concentrations. Based 

on the outcome of these tests, there are restrictions on what materials 

can enter the landfill. 

“Our extensive experience in waste management in South Africa 

– in the field of tailings dams, for example – equips us very well for 

these projects,” says Engelsman. “Tailings waste has to be classified to 

assess whether a lining is required under the facility – a decision with 

significant cost implications.” 

Unsplash 

Unsplash 

Angolan municipalities face a considerable challenge dealing with waste 

from residents and local businesses. 

High standards of 

waste management 

in Angola’s oil sector 

As Sub-Saharan Africa’s second-largest oil producer, Angola has seen the application of world-class 

waste management standards in its oil and gas sector. 

BY SRK CONSULTING 

SRK Consulting has been involved in landfill design and 

environmental impact assessments in Angola for almost 20 

years, according to Bruce Engelsman, principal engineer at 

SRK Consulting. 

“Most of the waste from the offshore platforms comprises drill 

cuttings, which emanate from many kilometres of off-shore exploration 

drilling,” says Engelsman. “These have to be brought ashore, treated 

and disposed of responsibly, especially to manage the hydrocarbon 

content in this waste stream.” 

A specialist Angolan firm treats these cuttings extracting the oil in 

the cuttings using the latest Danish thermal desorption technology 

before the material can be sent to landfill. There is also hazardous 

waste from offshore and onshore facilities that is incinerated as 

well as general domestic waste which is landfilled. In line with 

best practice and Angolan regulations, emissions emanating from 

treatment are scrubbed and monitored as part of closely managed 

waste disposal. 

Environmental protection principles are in fact embedded in the 

country’s constitution 1 , which highlights that the State “shall promote 

the protection and conservation of natural resources guiding the 

exploitation and use thereof for the benefit of the community as 

a whole”. It also gives all citizens the right to “live in a healthy and 

unpolluted environment” and requires the State to “take the requisite 

measures to protect the environment and national species of flora and 

fauna... and maintain ecological balance”. 

Engelsman explains that Angola has several main service hubs to 

support its oil and gas sector. One is Luanda with its extensive port 

facilities, and the other is in the far north at Soyo – on the Congo River. 

“These sites boast total waste management solutions that use leadingedge 

technology,” he says. “The treated residue is deposited in landfill 

facilities designed by SRK, ensuring that best international practice is 

applied regarding environmental and social impact. The total design 

includes the cells themselves, groundwater monitoring, roads and 

other infrastructure.” 

Angola has several main service hubs to support its oil and gas sector, 

boasting total waste management solutions. 

REFERENCES 

1 https://energycapitalpower.com/angolas-oil-and-gas-industry-can-thrive-alongside-its-rich-biodiversity/ 

2 https://www.unep.org/news-and-stories/story/partnering-strengthen-chemicals-and-waste-management-angola 

To ensure a high standard of 

design, SRK has in the past applied 

the minimum requirements from 

South Africa’s Department of Water 

and Sanitation. 

The Cacuaco facility, with which SRK has been involved for 15 

years, is nearing the end of its life. After closure, operations will 

move to Bengo in the Viana district, on which SRK is currently busy 

with design work. 

“We partner with a local firm of professionals to conduct the 

environmental impact assessments (EIAs), including high-tech work 

such as air emissions modelling,” he adds. “The recommendations from 

the EIAs are then incorporated into our designs.” 

Angolan municipalities also face a considerable challenge dealing 

with waste from residents and local businesses, and SRK has recently 

become involved in feasibility studies in this segment. 

“Cities like Luanda have struggled for many years to manage the 

rapid urbanisation from the war years, when people flocked to cities 

for safety,” Engelsman says. “For instance, Luanda reportedly produces 

some 6 000 tons of solid waste every day, and its infrastructure was not 

developed to cope with such volumes.” 

The country continues to develop its waste management capacity 

with partner agencies. In 2019, the United Nations Environmental 

Programme (UNEP) – through its Chemicals and Waste Management 

Programme – launched an ambitious three-year project 2 in Angola, 

focused on establishing a sustainable and integrated national structure 

to better manage chemicals. The strategy has been coordinated by 

the Angola Ministry of Environment, through a National Chemicals 

Management Unit. This works towards the implementation of the 

project and ensures that Angola can continue to manage chemicals 

and hazardous wastes into the future. 

24 

25

ENERGY 

Loadshedding and the rising petrol price 

Practical tips for SMEs to overcome challenges facing the sector 

It’s time to harness renewable energy, 

go off grid, harvest rainwater, and 

ultimately reduce your business’ 

running costs. 

Following two years of lockdown restrictions, South Africa’s 

economic recovery is being thwarted by several adversities on 

both local and global fronts. Locally, several antagonistic forces 

are at play, namely significant fuel price hikes and the ongoing bouts 

of loadshedding, which continue to undermine the stability of the 

energy system and put additional pressure on small and mediumsized 

enterprises (SMEs) in the country. 

This is the opinion of Rene Botha, area manager at South African 

SME financier, Business Partners Limited, who explains that the effects 

of these realities are felt most acutely by small businesses. Within 

this context, SME owners need to focus single-mindedly on finding 

creative ways to circumvent these challenges to maintain a semblance 

of business as usual. 

businesses, especially where factors like food storage need to be 

considered. A good, practical exercise for SME owners would be to add 

up the line-item costs of undergoing a complete shutdown during 

loadshedding versus the initial outlay of a backup power source or the 

cost of going completely green for your building. In most cases, the cost 

saving potential of backup energy or going green justifies the initial 

investment especially with finance that comes with rebates as with the 

Business Partners Limited’s Green Buildings Finance programme. 

THE EFFECTS OF THE FUEL PRICE HIKE 

Hikes in fuel prices affect South African small businesses across several 

sectors. SMEs who deliver or collect goods or transport people as part 

of their business model are directly impacted. Small businesses are 

also affected indirectly when supplier prices escalate to accommodate 

rising fuel prices. From a macroeconomic perspective, fuel hikes can 

drastically reduce consumers’ disposable and spending power, which 

can also have a knock-on effect on an SME’s bottom-line. 

Botha offers the following tips on how small businesses can mitigate 

the effects of the fuel price increase: 

1. Prioritise vehicle maintenance 

Depending on the vehicle being used, there are ways to maintain 

a car to ensure that its fuel consumption remains relatively low. For 

example, tyres that are underinflated have a higher rolling resistance 

on the road, which generates excess friction and increases fuel 

consumption in the long run. Tyre pressure should be checked at least 

once a month, engines need to be serviced frequently and air filters 

should be kept cleaned. 

A SPOTLIGHT ON LOADSHEDDING 

Loadshedding has led to significant revenue losses, with the most 

recent figures presented by technology company, Yoco, suggesting 

that about 30% of small businesses have lost up to 10% of their 

annual revenue due to the onset of loadshedding. There are several 

theories on how much longer loadshedding will continue, with one 

source suggesting that it could persist well into 2025. The consensus, 

however, is that it is a South African reality for which small businesses 

need to prepare. 

Botha offers the following tips for SMEs on how to reduce the effects 

of loadshedding: 

Our Green Buildings Finance Programme provides up to 100% 

property finance ranging from R500 000 to R50 million to established 

entrepreneurs with a viable business who want to invest in green 

buildings and achieve green building certification. We finance the 

purchase, construction, and/or retrofit of buildings if their designs 

are certified under an eligible green building certification. 

Extra benefits: 

The cost of green certification is covered by a non-refundable 

grant of up to R150 000. We offer a rebate of up to 40 percent of 

the capital expenditure needed to green your building and 

achieve green buildings certified status. 

1. Surge protect your property 

With small businesses playing such a crucial role in the subsistence 

of South Africa’s economy, finding innovative ways to mitigate 

loadshedding needs to be a priority. At a minimum, SMEs should have 

preventative measures in place to reduce damage to their property, 

which includes installing surge protection plugs. 

2. Install a backup power source 

Another way to avoid incurring severe revenue losses because of 

loadshedding is to invest in battery-powered backup technologies 

like point-of-sale devices, so that sales can still be processed when the 

electricity is cut off. With the wide variety now available, SMEs should 

be able to find battery-powered solutions that meet their needs. 

Portable nano solutions are relatively cost-effective when compared 

to the potential revenue loss of being completely unable to operate. 

Solar powered backup generators are also viable options for larger 

2. Optimise your travel arrangements 

Technology is a powerful enabler when it comes to finding ways 

to be more fuel-efficient. Navigation apps like Google Maps and 

Waze collate millions of data points to provide users with accurate 

information on traffic capacities and alternative, faster routes. By 

using these apps to avoid peak traffic times, SMEs can reduce their 

fuel input cost. Incremental savings in the short-term can accumulate 

into longer-term savings. 

SMEs that deliver goods can introduce set delivery slots and 

use digital tools to position these slots within hours that roads are 

relatively free of traffic. This can be marketed to customers effectively 

by emphasising how set delivery times will help goods recipients to 

plan their schedules more efficiently. 

Visit Businesspartners.co.za to find out more 

27

SKILLS DEVELOPMENT 

NCPC-SA DEVELOPING GREEN SKILLS 

Globally, there is a resounding push towards a circular economy and just transition. Responding 

to the inevitable change to industry, NCPC-SA hosted a green skills development workshop at the 

5th Biennial Industrial Efficiency Conference. 

BY NCPC-SA 

20 years of 

Industrial Efficiency 

THA 36-2022 

National Cleaner Production Centre 

South Africa 

A national industrial support programme that partners with industry 

to drive the transition towards a green economy and save money. 

Services include: 

Green skills development 

Contact us for a free assessment 

www.ncpc.co.za | ncpc@csir.co.za 

Funded by the dtic, hosted by the CSIR 

Industry and sector knowledge-sharing 

Company technical support 

At the 2019 United Nations Climate Action Summit, 46 

countries committed to support a just ecological transition 

by formulating national plans for a just transition and 

creating decent and green jobs. However, as the just transition 

becomes increasingly prevalent across the globe, the South African 

industry and her youth are left wanting and struggling to, in most 

cases, make the relevant shift. 

To help bridge the gap, the National Cleaner Production Centre 

South Africa (NCPC-SA) workshop reflected on the skills required for a 

just transition, the move to a sustainable economy and the inclusion of 

marginalised sectors or society and industry. 

“A green or environmental transition can actually lead to the 

creation of a lot of jobs if we take the right measures and approaches 

at the level of policies and strategies,” explains Alice Vozza, ILO 

Decent Work Team for Eastern and Southern Africa. Speaking on 

behalf of the International Labour Organisation (ILO), Vozza delivered 

a presentation titled, The Just Transition and Skills for Green Job 

Initiatives in Eastern and Southern Africa. To access the presentation 

visit: www.ncpc.co.za. 

Thought leaders from the GIZ, National Business Initiative and 

the Council for Scientific and Industrial Research (CSIR) joined 

Vozza in reflecting upon their organisations’ programmes on skills 

development and the green economy. The presentations provided 

insight into available opportunities and developments in new skills 

sets and learning platforms that can assist industry to transition to 

efficient ways of doing business. 

As an important catalyst that facilitates the demand and supply 

of skills that support the transitioning towards a circular economy, 

NCPC-SA has, over a 12-year period, offered introductory, end-user 

and expert level training in the fields of: 

• Resource Efficient and Cleaner Production (RECP) 

• Energy Management Systems (EnMS) 

• Energy Management 101 

• Energy Performance Measurement Indicators (EnPMI) 

• Power quality principles 

NCPC-SA has established itself 

as a leader in the green economy 

training field. 

• Water efficiency (under development) 

• Sustainable finance 

• Renewable energy courses 

• Biogas 

• Solar thermal (under development) 

• Energy Systems Optimisation (ESO): 

• Compressed air systems, motor systems, pump systems, steam 

systems, fans systems, and large-scale cooling and industrial 

refrigeration systems. 

NCPC-SA has established itself as a leader in the green economy 

training field. “We have become global players and global leaders 

winning international awards,” celebrates Ndivhuho Raphulu, NCPC-SA 

director. Over the past decade, NCPC-SA has trained more than 8 

646 professionals, and certified 401 experts and 252 local trainers. 

The project registered seven national qualifications framework 

occupational qualifications and created 13 original training courses. 

Held every two years, the Biennial Industrial Efficiency Conference 

has established itself as a benchmark for platforms that equip and 

highlight best practice in South Africa’s circular economy transition. 

Visit www.ncpc.co.za for information on the conference, training 

programme and services.

SPECIAL REPORT 


TARGETING THE TRANSITION 

GREEN ECONOMY POLICY REVIEW 

South Africa aims to transition to an inclusive green economy, combining economic development, 

social progress and environmental preservation. Both the economy and society remain, however, 

highly unsustainable. Targeting the transition to an inclusive green economy therefore signifies a 

massive and disruptive shift, commanding a new model of development. 

Industrial policy is core to this process, notably to ensure a “just 

transition” and manage a balancing act, consisting of maximising 

the benefits of the transition and minimising the risks associated 

with not transitioning; but in line with South Africa’s capabilities 

to minimise the short-term trade-offs and threats. This requires a 

careful alignment of South Africa’s industrial policy with the inclusive 

green economy paradigm to support the country’s green industrial 

development. Ultimately, this requires the shift from industrial policy 

to green industrial policy. 

To inform such a transformation, this report reviews South Africa’s 

industrial policy, from an inclusive green economy lens. It investigates 

the extent to which South Africa’s industrial policy is responding to, if 

not driving, the country’s transition. 

POLICY DESIGN 

Several broad policy documents, such as the National Development 

Plan (NDP), the Innovation Plan and the National Strategy for 

Sustainable Development and Action Plan (NSSD) have called for the 

This report is an excerpt from Green Economy Policy Review of 

South Africa’s Industrial Policy Framework. The policy review 

was compiled by the departments of Forestry, Fisheries and the 

Environment; Trade, Industry and Competition; and Science and 

Innovation and was produced by the United Nations Environment 

Programme in 2020. Lead authors are Gaylor Montmasson-Clair and 

Gillian Chigumira from Trade & Industrial Policy Strategies (TIPS). 

transition to a more sustainable development path in South Africa. 

Such documents mention and support (at least in principle) a green 

industrial transition, but they do not constitute a strategic, coherent, 

green industrial development vision. 

The National Planning Commission (NPC) has embarked on a 

process to develop 2 050 pathways for South Africa which may 

provide the platform to establish the country’s vision for green 

industrial development (and beyond). Despite some “green shoots”, 

South Africa’s industrial policy, historically structured around the 2007 

National Industrial Policy Framework and the rolling Industrial Policy 

Action Plans (IPAPs), has not shaped a green development vision. 

The dti has provided leadership for the development of green 

industries, with building blocks to support renewable energy, resource 

efficiency, the circular economy and e-mobility. In addition, the 

department increasingly focuses on aligning industrial policy with 

environmental objectives. Industrial policy has been core to designing 

and implementing a just transition, leading with the identification 

of vulnerable sectors and stakeholders, the development of resilience 

plans and the Socioeconomic Impact Assessment System (SEIAS). 

Going forward, industrial policy will be structured around the 

development of Master Plans for key industrial value chains, as 

coordinated by the presidency’s Re-imagining our Industrial Strategy 

for Inclusive Growth framework. The presidency’s approach has not, 

however, overtly embraced a green economy lens and focuses on 

traditional sectors and activities. 

National Development Plan | Executive Summary [2011] 

National Strategy for Sustainable Development 

and Action Plan [2011] 

A general coherence seems to emerge, in theory, from national 

policy documents, with renewable energy, energy efficiency, green 

buildings, waste management and sustainable transport arising as key 

focus areas. In practice, several issues lack consensus or clarity. This is 

the case around key technological choices in the energy space. 

From an institutional perspective, the cross-cutting nature of the 

transition to a green industrial development leads to responsibilities 

being scattered among multiple entities. Ultimately, elements of green 

industrial policy are conducted by a wide array of stakeholders, mostly 

with conflicting interests, including all spheres of government. 

Multiple official channels aimed at aligning public policy exist, 

such as the Forum of South African Directors-General, the Economic 

Sectors, Employment and Infrastructure Development (ESEID) cluster, 

ministerial political and technical structures and the Intergovernmental 

Committee on Climate Change. 

Industrial policy has been elevated to the presidency, opening 

the door for a more coordinated approach. A strong push for green 

industrial development from the presidency could effectively require 

the dti and other departments to be more proactive. The Climate 

Change Bill makes provision for additional coordination mechanisms 

at national and provincial levels. 

Beyond the coordination of public action, social dialogue is a 

central aspect of the transition to green industrial development, 

particularly because of its socioeconomic implications. It is historically 

vibrant in South Africa, notably through the National Economic 

Development and Labour Council (Nedlac). The NPC aims to reach 

a social compact through an extensive process of bottom-up 

consultation. Furthermore, the establishment of a Presidential Climate 

Change Coordinating Commission (PCCCC) shows a strong interest 

by all social partners in improving coordination of the (just) transition. 

At the industrial level, the degree of stakeholder engagement 

varies vastly from one industry to the next. In most cases though, 

engagement appears to be more reactive than proactive and 

culminates if issues (or crises) arise. Furthermore, stakeholders often 

do not consider their concerns and proposals to be considered 

meaningfully. The extent to which such engagements are mobilised 

to discuss issues pertaining to the transition to a green industrial 

development also seem to depend on the political agenda. 

The Master Plan approach may provide the adequate platform for 

proactive, forward-looking planning and implementation. At the 

monitoring and evaluation level, the knowledge base necessary for 

evidence-based decision-making and effective implementation of 

a green industrial development agenda, although growing rapidly, 

remains largely incomplete. 

POLICY IMPLEMENTATION 

Mirroring the multitude of strategies and numerous measures that have 

already been implemented in South Africa to foster the transition to 

green industrial development. Altogether, while far-reaching, the 

mix of measures appear to lack coherence and certainty. There is no 

clarity on the role, scope and impact of the mix of measures and the 

interaction of its many components. 

In some cases, like the carbon tax and budgets, the integration 

remains weak. In addition, the mix of measures does not adequately 

capture the diversity of industrial situations vis-à-vis the transition 

and fails to propose tailored solutions. All industrial policy tools 

have, however, been used to some extent to foster the transition. 

Industrial finance directed at the transition has steadily increased 

over the last 10 years. Overall, the energy sector, namely renewable 

energy and energy efficiency, has garnered the most focus, through 

the Renewable Energy Independent Power Producer Procurement 

Programme (REIPPPP) and a series of tax incentives. 

Despite the increasing focus on green industrial finance, material 

gaps remain. They range from policy-related issues (misalignment 

between the industrial and green economy policy frameworks) to 

structural problems (the lack of a funding pool for some segments) to 

skill and capacity issues (the misunderstanding of green economy by 

financiers) to fund design problems (the focus on renewable energy 

and energy efficiency). 

The transition also rests on the ability to identify and supply green 

skills. Overall, no central repository of learning opportunities exists 

in the country, hindering the rollout of competencies. South Africa 

does not have a comprehensive, cross-cutting approach to green 

skills development, despite existing initiatives in some universities, 

Sector Education and Training Authorities, and Technical Vocational 

Education and Training colleges. For champions driving the transition, 

a wide spectrum of learning opportunities relevant to a green 

economy already exists in South Africa, such as resource efficiency. 

Regulations have a fundamental impact on the transition and have 

been used with various degrees of success in South Africa. Commandand-control 

regulation, such as licensing for impact assessment, 

pollution prevention or industry waste management plans, is widely 

used in South Africa. However, its implementation remains highly 

imperfect, from the lack of enforcement to the difficulty in obtaining 

some licences. In some cases, it has had a hindering effect on the 

transition by obstructing circular economy initiatives or preventing the 

roll-out of new technologies. 

The Climate Change Bill [2018] 

From a climate change perspective, quantity-based regulations 

around greenhouse gas (GHG) emissions have been implemented 

at national (peak, plateau and decline trajectory), sector (emissions 

targets) and firm (carbon budgets) levels. Price-based instruments 

have been used to change behaviours. The levies on electric filament 

lamps and plastic bags have had a positive impact on consumption, 

while the impact of a carbon tax on new vehicles is more tenuous. A 

carbon tax on GHG emissions has been implemented since 2019. 

Frameworks (the REIPPPP and industrial symbiosis programmes) 

as well as procurement and fiscal rules (such as deductions for 

“green” investments) provide the regulatory settings for certain 

operations and have been used in South Africa. The use of standards 

and targets has shown mixed results. In line with the National Energy 

Efficiency Strategy, fast-rising energy prices have led to a dramatic 

progress in industrial energy efficiency over the last two decades. 

South Africa lags other key industrialised economies in the rollout of 

International Organisation for Standardisation (ISO) standards, such as 

ISO14001 for environmental management and particularly ISO50001 

for energy management. 

30 

31


WASTE 

Local content requirements are a key industrial policy tool 

to develop the manufacturing capability in the country. “Green 

procurement” has yet to be rolled out in South Africa, despite some 

initial investigation. In the meantime, the REIPPPP has been the 

main avenue used to localise green goods. The sound design and 

governance of the programme attracted numerous manufacturers. 

However, implementation issues forced most facilities to close. 

Over and beyond local content requirements, products can be 

earmarked (“designated” in South African terms) by the dti for local 

procurement by public entities. 

Industrial parks support, manage and administer industrial activities 

within a specified area to facilitate socioeconomic benefits for the 

surrounding area, its tenants and the country as whole. They can 

also be eco-industrial parks, bringing multiple economic, social and 

environmental benefits. South Africa hosts a variety of economic 

zones and multiple initiatives are under way to tap into the 

opportunities associated with the transition to a green economy. 

The dti, through the National Cleaner Production Centre (NCPC-SA), 

runs a programme aimed at greening the country’s industrial parks 

through resource efficiency and industrial symbiosis. 

Some industrial development zones and Special Economic 

Zones (SEZs) are engaged in the transition to eco-industrial parks, 

with the East London, Atlantis, Dube Tradeport and Richards Bay 

SEZs leading the way. In addition to initiating the transition to 

eco-industrial parks, some SEZs aim to harness the manufacturing 

opportunities associated with the transition to a green economy 

(Greentech Atlantis, Upington Solar Corridor and Bojanala Platinum 

Valley SEZs). 

Trade policy, as a component of industrial policy, can be used to 

promote the development of green goods and services globally as 

well as domestically. South Africa’s trade balance for green goods 

could be materially improved, notably by promoting imports 

substitution. Imports are roughly double the size of exports. 

RECOMMENDATIONS 

Building on this analysis, recommendations to foster green 

industrial development in South Africa can be formulated. They 

are split into four complementary components: capacity building; 

policy mainstreaming; information/data systems; and transition 

planning. Developing a green industrial policy in South Africa is 

conditioned on building the capability of the State in designing and 

implementing it. 

Green industrial policy is, by definition, cross-cutting, complex 

and challenging of the status quo. Efforts should be directed towards 

building internal capacity on sustainability transitions within the 

departments of the ESEID Cluster. Sustainability issues must notably 

be mainstreamed into all sector divisions of the dti. The use of the 

SEIAS should be further leveraged to improve the understanding of 

cross-cutting issues through the public sector, including politicians. 

The Climate Change Bill [2022] 

Re-Imagining our Industrial Strategy to Boost Inclusion and 

Private Investment [2019] 

A double mainstreaming of sustainability in industrial policy 

and development in environmental policy should take place. This 

should prelude the full alignment of environmental and industrial 

development policies. Sustainability objectives should become 

an integral pillar of South Africa’s industrial policy, including the 

Master Plans. The integration of sustainability into industrial policy 

should ultimately lead to greening the programmes which form 

industrial policy. 

Support to key industrial value chains should be strategic, timebound 

and conditional to green performance improvements. 

Measures incompatible with the transition should be progressively 

phased out. Complementarily, policy and regulatory bottlenecks 

for industries to move towards a sustainable development pathway 

should be identified and unlocked. Measures to stimulate market 

demand, particularly from the private sector, should be prioritised. 

Further collaboration between entities is required on technology 

development and commercialisation to bridge the “valley of death” 

preventing innovation to reach the market. Efforts are required 

to develop the green skill base in the country, through awareness 

raising, establishing professional bodies and the mainstreaming 

of green skills in education programmes. Both capacity building 

and policy mainstreaming interventions, to be successful and longstanding, 

need to rely on up-to-date, accurate data. A just transition 

to green industrial development cannot occur without evidencebased 

policymaking. 

Establishing a central, robust and extensive information base 

should be prioritised. Economic data and information should be 

further disseminated and understood, notably by non-economic 

departments and stakeholders. A one-stop-shop platform dealing 

with the interplay of sustainability and industrial development 

should be established. 

Systems for the co-development of policy (in its broad sense) by 

government, the private sector, labour and communities should be 

established. In addition to all policy interventions aimed at fostering 

South Africa’s sustainability transition, further attention should be paid 

to managing the transition process within a just transition framework. 

A long-term vision aligned with the country’s sustainability objectives 

should be developed. 

Leveraging the Master Plan process, sectoral roadmaps should 

accompany the vision to flesh out the implications for each economic 

activity. The development of sectoral roadmaps should be informed 

by a clear understanding of the risks and opportunities associated 

with the transition. Resilience plans should be systematically crafted 

to ensure a just transition in favour of workers, small businesses and 

low-income communities. Institutionally, due to the far-reaching 

nature of this work, social dialogue and co-development by a set of 

multi-disciplinary stakeholders, under the guidance of the PCCCC, 

should drive this process. 

CONCLUSION 

Vast opportunities exist for aligning industrial development and 

green economy policies in South Africa and embarking on a just 

transition to green industrial development. The current development 

of the Master Plans offers a unique opportunity to initiate the 

transition to green industrial development in the country. Considering 

the transition to a green economy should be a requirement for every 

Master Plan. Such work will provide an impetus to further bridge 

existing knowledge gaps and trigger implementation. 

Rethinking hazardous waste management 

The 11-million elephants in the room 

Research shows that 92.7% of hazardous waste is landfilled in South Africa. That is a staggering 

48-million tons of hazardous waste or the equivalent of 11-million elephants. Eleven-million 

elephants stacked on top of each other would create a tower that is 36 410km high – almost long 

enough to reach around the entire earth. 

According to the South Africa State of Waste Report 2018, 

South Africa generates more than 107.7-million tons of 

waste annually. Of this, 48% or 52-million tons, is classified 

as hazardous waste that may have a detrimental impact on health 

and the environment. A total of 92.7% of this is landfilled every year. 

To compound matters, South Africa’s dumping grounds are filling 

up at an alarming rate with some large sites having less than three 

years of airspace available, says Leon Grobbelaar, the president of 

the Institute of Waste Management of Southern Africa. Engineering 

News has recently reported that Johannesburg, Tshwane and Cape 

Town each have less than 10 years of landfill life left. 

Legislators have identified this as a fundamental issue that needs 

to be resolved, and as such the South Africa Waste Management 

Strategy 2020 states: “Prevent waste, and where waste cannot be 

prevented, ensure 40% of waste is diverted from landfill within five 

years; 55% within 10 years; and at least 70% within 15 years leading 

to zero waste going to landfill”. A tall order, but a crucial one for our 

country and environment. 

Waste that is not taken to landfill poses possible environmental and 

human health risks and disasters – the tragic tailings dam failure in 

Jagersfontein (2022) is an example. In a recent Reuters report, it is noted 

that South Africa has the highest number of high-risk tailings dams (79) 

in the 10 countries that were profiled. Quartz Africa asserts that “there 

are growing calls for the cleaning up of high-risk tailings dams so that 

the waste can be re-processed and used to fill up mined out operations, 

thereby reducing environmental hazards.” Mariette Liefferink from 

Federation for a Sustainable Environment (FSE) warns that in terms of 

ecological risk, the issue of mining waste is widely recognised as second 

only to global warming and stratospheric ozone depletion. 

A high degree of effort is required to mitigate environmental risks 

posed by hazardous waste, no matter where that waste currently 

exists. For this to be achieved requires industry to pursue zero 

Johannesburg, Tshwane and 

Cape Town each have less than 10 years 

of landfill life left. 

waste aggressively with landfill technologies from both sides of the 

buyer-supplier relationship. 

TREATMENT OF HAZARDOUS WASTE 

There are various ways of treating different types of hazardous waste 

including but not limited to biological, physical/chemical, thermal or 

disposal. The type of treatment depends highly on the contaminant 

and the desired result, as not all waste streams are susceptible to 

all treatment methods. Other factors that influence the choice of 

treatment method include the conditions of contamination and 

surroundings, type of remediation required (destruction, separation 

or containment), operational intensity, capital requirements, relative 

costs, reliability of outcome and the time window. 

Treating hazardous waste is by no means an easy feat, and much 

more work is needed to develop solutions for waste streams that 

currently have no treatment options. Combining +50-year-old principles 

with innovative product technology, Bemical delivers solutions to 

hazardous waste streams that are based on the most efficient methods 

in biological and physical/chemical treatment. Waste stream examples 

that have been managed via these treatment methods include 

hydrocarbons, volatile organic compounds (VOC), heavy metals such 

as lead, arsenic and chromium, polycyclic aromatic hydrocarbons (PAH), 

manufactured gas plant waste (including cyanide, naphthalene, total 

petroleum hydrocarbons, arsenic), chromium ore process residual, 

asbestos as well as platinum group metal tailings and sewage. 

Bemical’s leadership team includes a head of technical and project 

operations, an expert with over 20 years of global remediation 

experience, as well as a chief science officer serving as an associate 

professor with a distinguished academic track record in chemical 

and environmental engineering. Bemical has partnered with the 

Department of Engineering at the University of Pretoria to conduct 

further research into industry-leading remediation products to better 

serve the variety of waste streams available. 

Contact Jaco Nel at admin@bemical.com or +27 83 363 0315. 

www.bemical.com 

32 

33

ENERGY 

ENERGY 

NMISA SAVES ENERGY FOR SA 

NMISA services in support of 

energy-saving efforts for the 

South African economy 

Electrical parameters 

• RMS current/voltage 

• Power factor 

• Total harmonic distortion (THD) 

• Luminous efficacy 

Temporal light modulations and artefacts 

• Waveform, frequency, flicker index, percent flicker 

• Short-term flicker index and voltage fluctuation immunity 

• Stroboscopic visibility measure 

• Perceptual modulation 

Photobiological safety 

• Actinic UV and near-UV hazard 

• Blue light hazard 

• Retinal thermal hazard 

• Infrared eye hazard 

• Thermal skin hazard 

UV APPLICATIONS 

UV radiation falls outside the visible part of the electromagnetic 

spectrum. UV-C radiation with wavelengths between 200 nm and 280 nm 

is an important tool in medical applications. It has disinfection 

properties and is used in UV Germicidal Irradiation (UVGI) devices to 

An integrating sphere, which is used to measure the flux of a lamp. 

prevent the spread of infectious diseases via air, water and surfaces but 

also has inherent risks. 

NMISA disseminates traceability to the National Measurement 

Standards, which are linked to the international system of units 

(SI) through calibration of measuring equipment. Traceability to 

SI allows weights and measures in South Africa to be comparable 

to weights and measures in other parts of the world. In the field 

of electromagnetic radiation, it is NMISA’s responsibility to 

maintain the SI unit for luminous intensity (the candela) and to 

perform traceable photometric and radiometric measurements 

and calibrations in support of industry. 

The equipment used for LED measurement and calibration can also be 

used to accurately measure the UV content of lighting products and 

ensure that UVGI devices provide both effective disinfection and a safe 

environment for room occupants. 

UV LEDs have also become an environmentally friendly option to 

replace mercury lamps in certain applications such as curing and 

disinfection. NMISA can provide the measurement of UV LED devices 

to determine their performance and safety, as well as calibration of 

UV radiometers which are used to measure these types of devices in 

the field. 

The science of photometry and radiometry addresses the 

measurement of electromagnetic radiation. Photometry 

concerns the measurement of light (the visible part of the 

electromagnetic spectrum) and measurements consider the 

response of the human eye. Radiometry, relates to the measurement 

of electromagnetic radiation in the wider spectral region ranging 

from the ultraviolet (UV) to the infrared part of the spectrum. 

The measurement and calibration services offered at NMISA are 

categorised according to: 

• Photometry e.g. lux and luminance meter calibrations 

• Properties of detectors e.g. UV radiometer and laser meter calibrations 

• Spectral emission properties of sources e.g. spectral distribution of 

lamps/light emitting diodes (LEDs) 

• Spectral properties of materials e.g. transmittance, absorbance of filters 

• Spectrally integrated measurements for sources e.g. correlated 

colour temperature, colour rendering index of lamps/LEDs 

• Colour and other spectrally integrated measurements of materials 

e.g. gloss, luminance factor 

ENERGY EFFICIENCY 

NMISA develops measurement capabilities for LED products that serve 

as energy-efficient light sources. The move toward LED lighting is 

propelled by its high efficacy which provides savings. To support the local 

lighting industry, accurate LED measurement methods and standards 

must be developed to ensure that the performance and safety of these 

light sources can be assessed correctly. NMISA measures the following 

properties of small to medium-sized (e.g. A-type lamps) LED products: 

Photometric, colorimetric and radiometric parameters 

• Spectral power distribution 

• Spectral radiant/luminous flux 

• Radiant/luminous flux 

• Chromaticity coordinates 

• Correlated colour temperature 

• Colour rendering index 

• Luminous intensity 

• Averaged LED luminous intensity 

• Irradiance/illuminance 

• Radiance/luminance 

• Peak/centroid/dominant wavelength 

• Purity, full width at half maximum (FWHM) 

The National Metrology Institute of South Africa (NMISA) is 

mandated by the Measurement Units and Measurement Standards 

Act, 2006 (Act No. 18 of 2006) to provide for the accuracy and 

international recognition of local measurement results to provide 

for the use of measurement units of the International System of 

Units and certain other measurement units; to provide for the 

designation of national measurement units and standards; to 

provide for the keeping and maintenance of national measurement 

standards and units; and to provide for the establishment and 

functions of the National Metrology Institute. 

HOW TO GET IN TOUCH WITH NMISA ONLINE 

Website: www.nmisa.org 

Online Shop: https://store.nmisa.org/ 

Facebook: National Metrology Institute of South Africa 

Twitter: @NMISouthAfrica 

Instagram: @nmisouthafrica 

LinkedIn: National Metrology Institute of South Africa (NMISA) 

YouTube: National Metrology Institute of South Africa NMISA 

For a detailed list of accredited measurement and calibration 

services, refer to the Photometry and Radiometry 

Laboratory’s South African National Accreditation System 

(SANAS) scope of accreditation. The laboratory also offers 

custom and non-accredited services, which may be discussed 

upon request. To learn more about these services contact 

pr@nmisa.org or +27 12 947 2782/2800 

34 

35

ENERGY 

ENERGY 

THE FUTURE IS BRIGHT 

FOR PEROVSKITE PV 

Perovskite PV is an exciting new solar power technology. In 2009, the first report of a 

perovskite solar cell was published with an efficiency of just 3.9%. Given the novelty of the 

technology, the rapid gains in efficiency are impressive; however, high efficiency is not the 

only promising attribute. 

BY DR ISABEL AL-DHAHIR 

CUBE3D Graphic 

Additionally, perovskite PV does not use toxic or rare materials and the 

manufacturing is well-suited to scalable solution-based deposition 

methods. This gives perovskite PV an edge over the existing dominant 

thin film alternatives such as cadmium telluride (CdTe) and copper 

indium gallium selenide (CIGS), which suffer from expensive synthesis 

and material scarcity. 

Despite the demonstration of high efficiency perovskite solar 

cells, commercial adoption is limited by concerns over long-term 

stability. Perovskites are well-known to degrade following exposure 

to environmental factors such as heat, air, humidity and UV light. 

Encapsulation techniques and material engineering are crucial to 

prevent degradation of the perovskite film – solving these high-value 

problems is a compelling commercial opportunity. 

EMERGING APPLICATIONS 

Perovskite PV is very versatile. It is used in mainstream applications 

such as in solar farms and rooftops. Since the weight of a perovskite 

module is at least 90% lighter than a silicon module, it is particularly 

well-suited to novel applications as well such as vertical building 

integration and structures with low weight tolerance. These are 

applications that mainstream silicon-based PV is not compatible with 

and therefore provide a niche opportunity for perovskite PV. 

Flexible solar modules are another exciting recent development 

in photovoltaics. Thin film perovskite PV is naturally cut out for 

flexible designs. Conformality allows for greater practicality and 

aesthetic control when integrating into building façades as well as 

electronic devices. 

Internet of Things (IoT) devices promise to enable a world of smart, 

connected objects, with their number expected to rapidly accelerate 

to billions by 2030. However, small electronic devices typically rely on 

batteries that require frequent recharging or replacement every few 

years, leading to high material as well as unwanted waste. Powering 

Perovskite PV can provide 

similarly high-power density as 

silicon PV at lower cost. 

IDTechEx 

IoT devices in a cheap, sustainable fashion is crucial to achieve the 

promised vision of a connected world. Small, low-cost thin film solar 

cells, optimised to work with diffuse indoor light, solve to this dilemma. 

Employing low-cost PV powered devices with lifespans of 10 years 

could be far more economical. There is already very early-stage 

commercialisation of self-powered electronics using organic PV. This 

market is still very small and there is plenty of room for new entrants. 

Perovskite PV promises higher efficiencies and simpler synthesis than 

organics, and potentially longer lifespans. 

INDOOR ENERGY HARVESTING 

A connected world comes with the burden of batteries and unsightly 

extensive wiring. As more technologies are adopted into homes and 

businesses, the chaotic clutter of wires and the dwindling count of 

nearby power sockets become an increasing nuisance. 

The use of batteries is an environmentally unfriendly solution and 

replacing them on a mass scale every three to four years is expensive 

and labour intensive. The integration of a thin film solar module 

within smoke alarms, motion sensors, smaller electronic displays and 

other gadgets means that there is no need for batteries or external 

wiring and so the device can be placed anywhere that has sufficient 

light exposure. 

Perovskite PV provides similarly high-power density as silicon PV at 

a lower cost, a fraction of the weight and with a simpler manufacturing 

process. Perovskite solar cells can maintain relatively high efficiencies 

even under low intensity or diffuse light, making them compatible to 

both indoor and outdoor energy harvesting. 

This is a key advantage over the conventional silicon technology 

that suffers poor efficiencies under indoor light. Since the perovskite 

material applies like an ink, the solar cells are very lightweight, flexible 

and unobtrusive. They can easily be integrated into small electronic 

devices and used to power them directly. 

The silicon photovoltaic (PV) market is accelerating every year. 

There are global initiatives to move towards renewable 

energy sources and public consciousness of sustainability 

is increasing. As such there is plenty of opportunity for new PV 

technologies to enter the mix and meet gaps in demand. 

Perovskites refer to a family of materials with a specific material 

structure. Those used in photovoltaics have a unique combination 

of electronic and optical properties that are extremely well-suited to 

this application. Perovskite PV is not expected to imminently replace 

silicon PV as the dominant technology; however, there is substantial 

motivation for its adoption. 

Perovskite PV can provide similarly high-power density as silicon 

PV at lower cost, a fraction of the weight, and with a simpler 

manufacturing process. It can also be combined with silicon to 

create tandem cell architectures that can surpass the efficiency 

limits of single junction solar cells. Several companies are working 

on developing single junction perovskite and tandem PV, some of 

which have pilot lines and trials in progress with plans to launch 

commercially within the next year or two. 

Janak Thapa and Dr Armi Tiihonen 

EFFICIENCY GAINS 

Perovskite PV research took off in 2009. Since then, research into 

the field has catapulted. Record efficiencies are already on par with 

those of silicon PV, a technology with decades of research behind it. 

(Above) Perovskite photovoltaics can be utilised in either a thin film (left) or 

tandem perovskite-on-silicon architecture, targeting applications such as 

indoor energy harvesting or rooftop PV respectively. (Top image) Perovskite 

photovoltaics in the background with individual perovskite crystals shown 

as the colourful units. 

(Above) Perovskite PV could be a cost-effective method to power everyday 

electronics. (Left) Researchers have developed a new way to test longlasting 

perovskite formulations that could be used for solar cells. The highthroughput 

automated degradation test system monitors the breakdown of 

the material through its changes in colour as it darkens. 

36 

37

ENERGY 

ACUVIM II SERIES 

POWER & ENERGY METERS 

Ken Richardson 

Solar cells made of perovskite have great promise, in part because they can easily be made on flexible substrates, like this experimental cell. 

COST TRUMPS EFFICIENCY 

For a lot of household and consumer electronics, high power is not a 

strict requirement. For example, powering headphones, sensors, and 

lights does not require state-of-the-art solar technology. Solar cells 

with an efficiency of 10% to 15% could be sufficient to operate most 

small and portable electronics. 

Durability is another typically important criterion that can be 

relaxed since many electronics are intended for short-term use, with 

consumers frequently updating their devices for newer models. The 

need for 25-year lifespans, as is typical for rooftop solar panels, is no 

longer the standard to measure by. 

The key metric for the successful deployment of solar cells in 

consumer and retail electronics is cost. Given the increasingly high 

volume of consumer and retail electronics, energy solutions need to 

be economical. Additionally, solar technology will be competing with 

well-established and relatively inexpensive batteries. Solar could move 

into a competitive position with batteries if it were to demonstrate 

lower costs and greater practicality. 

OUTLOOK 

The future appears optimistic for perovskite PV, since the technology 

has advanced much more rapidly than any other photovoltaic 

technology. Unlike CdTe and CIGS active layers, perovskites do not 

require rare or expensive raw materials. The synthesis is straight- 

forward, and deposition can be carried out without the need for a 

vacuum or high temperatures. 

The possibility of creating flexible devices also opens new 

applications that mainstream silicon PV cannot target due to their 

bulk, weight and rigidity. Despite the promising advantages, concerns 

surrounding the lifespan of perovskite solar cells remain at the forefront 

of the discussion. 

Perovskite PV is not expected to 

imminently replace silicon PV as the 

dominant technology; however, 

there is substantial motivation 

for its adoption. 

ROUTE TO COMMERCIALISATION 

Resolving perovskite PV stability issues is challenging, with 

many strategies bringing performance trade-offs or extra costs. 

Nevertheless, the field has come a long way in its understanding 

of degradation mechanisms and substantial progress has been 

made. Advancements in stabilising perovskite cells have helped to 

transition the technology from academia to industry. 

Smarter. Faster. Better. 

The Updated Acuvim II Series 

The Acuvim II Series Multifunction Power Meter has been updated to include 

even more features for power monitoring, metering, and power quality ananlysis. 

Engineered for ease-of-integration, it can be customized to fit any industrial or 

commercial application. 

For crucial applications where high precision accuracy is required, the Acuvim II is 

rated ANSI C12.20 Class 0.1 and IEC 62053-22 Class 0.1s making it the best choice 

for utility, distribution, or other industrial applications. 

+27 (0) 87 802 6136 

38 

The article is an excerpt from the IDTechEx report Perovskite Photovoltaics 2023-2033. 

marketing@accuenergy.com 

Castle Walk Corporate Park, 

Block B, Cnr. Nossob & Swakop Street, 

Erasmuskloof, Pretoria, 0181 South Africa 

ISO 9001:2015 

Certified 

www.accuenergy.com

ENERGY 

ENERGY 

IDTechEx 

Thin film PV could enable ubiquitous solar powered 

technology. New applications of thin film applications 

include building integrated PV where the panels are 

attached to the sides of buildings (right). 

GOING BEYOND 

SILICON’S LIMITATIONS 

The rise of thin film photovoltaics 

In the shadows of a silicon-dominated field, other photovoltaic technologies have been edging 

closer to the spotlight. Emerging photovoltaic applications, such as indoor energy harvesting 

and building integrated photovoltaic, have specific requirements that will enable “thin film” 

alternatives to flourish. 

BY IDTechEx 

CIGS technology, on the other hand, has been plagued by 

commercial failures, with the largest manufacturer having exited 

the market in June 2022. It is expected that CIGS will be surpassed 

in the coming years by perovskite PV – a very young and exciting 

technology that has shown remarkable efficiency gains in just a few 

years, with record efficiencies already on par with those of silicon 

PV, a technology with decades of research behind it. Perovskite PV 

is well-suited to both outdoor high power density applications as well 

as indoor energy harvesting and powering small electronics. 

Organic PV and dye-sensitised solar cells are contenders that are 

commercial on a small scale in both outdoor and indoor applications. 

Given their short lifespans of five years, organic and dye-sensitised solar 

cells are better suited to powering short-term use electronics rather than 

large area outdoor energy harvesting units that are expected to last >15 

years. For this reason, the application range is limited. 

OUTLOOK 

Decarbonisation of global energy sources is being catapulted 

forward as both nations and industries race to achieve net zero. 

While silicon PV is affordable to consumers and delivers high 

efficiencies, its application range is limited by its weight, size and 

rigidity, as well as a complicated manufacturing process. Thin film 

alternatives present numerous advantages to overcome these 

limitations and cater to emerging applications such as buildingintegrated 

PV and indoor energy harvesting. 

The Massachusetts Institute of Technology team have achieved the thinnest 

and lightest complete solar cells ever made, they say. To demonstrate just 

how thin and lightweight the cells are, the researchers draped a working cell 

on top of a soap bubble, without popping the bubble. 

Thin film photovoltaic (PV) can deliver several unique advantages 

such as lighter weight, better indoor light conversion efficiency, 

simpler manufacturing and potentially lower costs than 

conventional silicon PV. A particularly exciting opportunity is the 

role of thin film photovoltaics in powering Internet of Things devices 

– a market expected to reach billions following the increasing 

smartification of home and retail electronics. 

EMERGING MARKETS 

Thin film PV is expected to gain traction in the coming years, with the 

market set to grow to US$6.1-billion by 2033. Substantial strides have 

been made within the thin film sector, with efficiencies increasing and 

manufacturing processes becoming cheaper and more streamlined. 

New applications are being developed that conventional silicon 

PV is not suitable for due to its rigidity, bulk and weight. These 

applications include building integrated PV where the panels are 

attached to the sides of buildings. Some types of thin film PV can 

be made semi-transparent and very lightweight, which makes 

them less aesthetically obtrusive and ideally suited to deployment 

on windows. 

Other emerging applications belong to the self-powered electronics 

and IoT sector, which is expected to grow substantially in the coming 

years as “smart” electronics become more prevalent. Lightweight thin 

film minimodules can be used to power such devices and could serve 

as a cheaper and more long-lasting alternative to batteries. 

What will dominate the thin film market? 

Currently, the thin film market is dominated by cadmium telluride 

(CdTe), followed in second place by copper indium gallium selenide 

(CIGS). CdTe is best known in the USA, where it is used for 40% of 

all utility-scale PV power. Despite concerns over the use of the scarce 

element tellurium, the CdTe market is expected to keep its position 

following strong investment and the creation of recycling initiatives 

that are at present already operative. 

A particularly exciting opportunity 

is the role of thin film photovoltaics in 

powering Internet of Things devices. 

This article is an excerpt from the research report BEYOND SILICON: THIN FILM PHOTOVOLTAICS 2023-2033 | IDTechEx | [2022] 

Joel Jean and Anna Osherov 

40 

41

WASTE 

A SUCCESSFUL CLEAN-UP 

AND RECYCLE SA WEEK 2022 

South Africans can celebrate another successful Clean-Up and Recycle Week as thousands of 

kilograms of waste were removed from our natural spaces. 

(Top left) Underwater clean-up diver Mia Vorster of ScubaXcursion collects waste at Scottsburgh (Fern Reef). (Top right) Beach clean-up at Scottsburgh. 

According to Douw Steyn, sustainability director at Plastics 

SA, literally hundreds of clean-up events took place around 

South Africa to keep our environment clean, with many 

more initiatives continuing to take place over the coming weeks. 

“Clean-Up and Recycle Week 2022 was action-packed and it was 

wonderful to see the large number of volunteers signing up for cleanups 

at beaches, rivers and streams and in communities around the 

country. Our sincere gratitude goes out to all the coordinators who 

worked tirelessly to ensure that everything ran smoothly on the 

day; the many sponsors who contributed either financially or with 

products to this year’s clean-up efforts, and every South African 

who willingly gave of their time and energy to make a difference, by 

removing visible litter from the environment,” he says. 

Highlights of this year’s Clean-Up & Recycle SA Week included 

River Clean-Up Day, which took place on 14 September, National 

Recycling Day, which took place on 16 September, as well as 

International Coastal Clean-Up and World Clean-up Days both falling 

on 17 September. These incredible days united over 180 countries 

across the world for a cleaner planet as volunteers and organisations 

took to cleaning every space imaginable – including divers who 

went deep-sea litter hunting. 

Douw especially thanked Plastics SA’s sustainability manager, John 

Kieser, who has been the Cape Province’s coordinator and one of the 

founder members of the South African International Coastal Clean-Up 

for the past 27 years. 

Plastics SA’s work is not finished yet, as the completed audit sheets 

now need to be compiled, processed and analysed to produce a final 

report about South Africa’s participation in this year’s events, as well 

as a snapshot of the waste found on our beaches and waterways. 

“We want to encourage communities to continue with their 

Shark dissection at Scottburgh beach cleanup by Steven Mabugana 

(AquaAmazing) educating about marine pollution. 

Hundreds of clean-up events 

took place around South Africa to keep 

our environment clean. 

efforts to keep their communities clean. Every South African can 

make a difference every day by picking up litter and ensuring that 

they recycle. Small, consistent efforts make a huge difference if 

everybody does it. Together we can turn the tide on litter in our 

country,” Douw concludes. 

43

WASTE 

WASTE 

PLASTIC DEMAND GROWS 

BIOPLASTICS 2023-2033: TECHNOLOGY, MARKET, PLAYERS 

AND FORECASTS 

Plastic demand continues to grow even as 

we become increasingly aware of the threat 

that plastics pose to our environment. Global 

consumption of plastics will double by 2050. To 

combat the impact of plastic on environment 

and climate change, the industry is transitioning 

towards a circular economy. 

BY ANDY KO, IDTechEx 

Yet, even if all the plastic produced every year was 100% 

recycled, there would still be a need for virgin feedstock to 

meet growing consumption. Bioplastics – plastics which are 

synthesised from biobased feedstocks – can replace incumbent 

fossil-based plastics here. Given their biobased origin, these plastics 

are a lower carbon footprint and sustainable option to incumbent 

fossil-based plastics. 

The bioplastics industry began decades ago, but during the 2010s 

the industry fell deep into the valley of death, indicated by a string of 

bankruptcies and business repositioning away from the space. This 

slump was driven by recoil from bullish initial investment in the space, 

and a significant bottleneck when it came to scaling production to 

commercial level. Furthermore, the high relative cost of bioplastics 

compared with a substantial drop in the price of Brent crude made 

bioplastics poor competition against conventional plastics, reinforcing 

the decline. 

Technology readiness level of bioplastics by types. 

A bioplastic is a plastic made from plant resources, such as corn, wheat 

or algae. 

IDTechEx 

However, recent changes have turned the tide in the bioplastics 

industry, revitalising its growth mode. Foremost, there has been a 

shift towards sustainability demand from brand-owners themselves. 

This is driven from both sides: by consumer pull that continues to 

strengthen, and by legislation changes (plus anticipation for future 

changes) towards sustainability – such as single-use fossil-based 

plastics bans. The cornerstone COP26 conference, supported by the 

IPCC report, fuelled brand-owner commitments to decarbonisation, 

too. This surplus demand is pushing manufacturers to expand their 

capacities faster, with many brand-owners forming partnerships to 

accelerate the scaling-up process. 

Many companies are beginning to overcome the commercial 

scale bottleneck and as technology develops bioplastics are being 

produced for lower costs. Additionally, consumers are more willing 

now to pay the premium for sustainable bioplastics. Overall, these 

factors are driving bioplastics towards being more affordable and 

competitive against conventional plastics. This is supported by a 

spike in Brent crude prices recently, which make bioplastics a more 

attractive alternative. 

DROP-IN DISRUPTORS 

A major factor for bioplastic adoption to disrupt the plastics industry 

is the drop-in materials. These are biobased feedstocks or building 

blocks that can be a direct substitute for incumbent feedstocks. 

By substituting with drop-ins, manufacturers can easily facilitate 

the transition from fossil to biobased. The same processes can be 

used, rather than establishing entirely new plants, and end-product 

properties are unchanged. 

This also means that the well-established end-of-life options of 

incumbent plastic products can be used, particularly recycling 

streams which massively improve the sustainability of a plastic 

product. Using drop-ins, the biobased material can be traced 

with chain-of-custody models like mass balance, which create 

transparency and trust throughout the value chain regarding 

sustainable material origins and processes. Overall, the plastics 

market will more readily adopt drop-in bioplastics which have a 

strong advantage over other bioplastics. 

CHALLENGES FOR BIOPLASTICS 

Yet, there are still many challenges for several bioplastic types to 

overcome. To be truly sustainable and become part of the circular 

economy, bioplastics must be designed for end-of-life processing. 

For example, polylactide (PLA), the most widely produced 100% 

biobased plastic material can be industrially composted, however 

this provides no value to the compost so there are few off-takers 

in the industry. Meanwhile, recycling PLA, unlike drop-in biobased 

polyethylene terephthalate (PET), requires dedicated infrastructure 

that is uncommon and very expensive to adopt. Instead, most PLA is 

mismanaged or goes to landfill. 

The largest groups of plastics worldwide, polypropylene (PP) and 

polythene (PE), remain without a major bioplastic solution. Bionaphtha 

is used to make biobased PP and polyphenylene ether (PPE), 

but synthesis of bio-naphtha from bio-alcohols and oxygenates is 

inefficient (because of waste oxygen in the process). Furthermore, 

this puts chemical manufacturers into competition for feedstock 

with biofuel and bioenergy. On the other hand, bio-naphtha can be 

made from plant oils, however these raw materials suffer from price 

fluctuations resulting from geopolitical instability. 

Younger bioplastic types that are still in demonstration or 

pilot scale show promising properties. However, they have yet to 

develop a significant range of applications, critical to developing 

demand for the materials. Companies in these niches need to form 

partnerships with brand-owners and formulators to expand their 

application portfolios. 

ORDER REPORT 



This article is an excerpt from the research report 

BIOPLASTICS 2023-2033: TECHNOLOGY, MARKET, 

PLAYERS AND FORECASTS | IDTechEx | [2022] 

As bioplastic materials transition from being a “nice-to-have” to 

materials with a very strong, viable business case, manufacturers 

are racing to keep up with demand. Brand-owners, striving to hit 

their decarbonisation targets by taking the initiative to transition to 

bioplastics, are generating a stronger brand-owner pull than ever 

before. This demand is further exacerbated by legislators around the 

world, who are cutting down on fossil-based plastic use with single-use 

plastic bans. 

Together, these major factors are pressurising players across the 

bioplastics industry to commercialise their materials and ramp up 

production. With all this activity, IDTechEx forecasts global annual 

bioplastics production capacity to grow at a CAGR of 10.1% over the 

next ten years. 

IDTechEx’s report evaluates the technologies and trends that bring 

more sustainable biobased materials to the plastic industry. 

44 

45

PRODUCT 

PRO-TEN STRAP 

South Africa’s advanced 

PET STRAPPING SOLUTION 

Did you know that using PRO-10 STRAP can assist your company’s sustainability goals, while also 

lowering your environmental carbon footprint? 

Excellent tensile 

properties 

TECHNICALLY 

ADVANCED PET 

STRAP AVAILABLE 

NATIONWIDE AND 

GLOBALLY 

Extrupet is one of South Africa’s largest contemporary recycling 

operation, dedicated to the recycling of post-consumer 

polyethylene terephthalate (PET) bottles. Since its establishment 

in 2000, Extrupet has grown to become one of the most respected 

names in the recycling industry. 

The company currently recycles over four-million PET bottles per 

day and successfully supplies high-quality recycled products to a few 

blue-chip manufacturers who understand the need for a sustainable 

solution to the issue of PET waste. 

PRO-10 STRAP is an exceptional product with which to secure 

loads during transit. Its extraordinary tensile strength, tenacity and 

high elasticity ensures that the load remains tightly bound even if the 

package shrinks after being strapped. 

PRO-10 STRAP is manufactured in South Africa at a state-of-the-art 

facility using a SIMA production line made in Italy and used globally 

by the world’s leading strap manufacturers. Ensuring high-quality 

products is what the company excels in. 

46 

PRO-10 STRAP is made from remarkably high-quality PET raw 

materials. The manufacturing facility conforms with ISO 9001:2015 

International Standards. This, combined with world-class European 

technology, ensures that PRO-10 STRAP delivers both reliable and 

outstanding physical and mechanical properties to ensure your 

load’s stability from dispatch to delivery, giving you complete peace 

of mind. Extrupet’s inhouse laboratory uses world-class testing 

equipment to ensure consistent high-quality products. 

As Extrupet is continually looking for ways to reduce the 

environmental impact of its products and work towards a sustainable 

circular economy model, PRO-10 STRAP is fully recyclable. 

Postconsumer PRO-10 STRAPs can be collected and recycled by 

arrangement. 

PRO-10 STRAP is locally manufactured, from locally sourced 

recycled PET bottles and can be locally recycled after use. This focus 

on localisation leads to several commercial and cost benefits, such as: 

- Lowered lead times 

- Reduced minimum order quantities 

- Decreased risk of exposure to port and shipping delays 

- Local technical assistance and product development 

- Supporting a proudly South African company 

The strapping is available in all standard sizes, with the option of 

tailormade product development, which makes PRO-10 STRAP 

extremely versatile. It can be used in a variety of applications – from 

securing light loads to heavy industrial loads. PRO-10 STRAP can even 

be used to replace steel strapping in certain applications, making it 

safer and more cost-effective. 

Technical support is available to all PRO-10 STRAP customers 

nationwide. 

Nastasja Berning 083 627 3331 

Caitlyn Muller 062 991 0683 

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www.pro10strap.co.za 

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Tel: +27 11 865 8360 / +27 83 627 3331 / +27 84 631 9139 

Email: sales@pro10strap.co.za / nastasja@pro10strap.co.za

MOBILITY 

MOBILITY 

A ROLLING START 

for EV manufacturing plans 

South Africa is at risk of losing export markets as major trade partners ditch gas-guzzlers. Our 

biggest markets are banning imports and sales of ICE vehicles within less than eight years and yet 

South Africa has hardly started producing new energy vehicles. 

BY GEORGINA CROUTH 

They’re dirty and soon no one will want them. Traditional 

internal combustion engines (ICEs) are being phased out in 

South Africa’s biggest markets – Britain and the EU – and if the 

local automotive sector does not switch gears from ICE production 

to new energy vehicles (NEVs), it might as well close up shop. 

Britain and the EU have set aggressive targets to phase out 

ICE vehicles: by 2030 neither will allow sales and imports of such 

vehicles and they are planning to introduce heavy carbon taxes 

on imports. 

That’s less than eight years away and South Africa’s motor industry 

has not rolled a single electric vehicle (EV) off the factory floor, and only 

a few manufacturers, including Toyota, Mercedes-Benz and BMW, are 

producing hybrids, which are classified as NEVs. 

The motor industry’s anxiety over the issue has been stepping up 

for years, as it raised concerns that the market for ICEs was getting 

progressively smaller while the government’s promised EV roadmap to 

speed up sales and production progressed at a snail’s pace. 

In 2021, the dtic published the Green Paper on Advancement of 

New Energy Vehicles (NEVs), after extensive industry consultations 

and with an undertaking to issue a White Paper by the end of the year. 

The Green Paper explores levels of support and infrastructure 

investment needed to encourage electric vehicle uptake, within the 

context of wider economic recovery efforts through market stimulus 

and supply chain support measures. 

It looks at an investment and tax system to build a resilient raw 

material supply chain to support the country’s efforts to be a global 

player in NEV manufacturing as well as how to retain preferential 

access to major trading partners to allow the country to maintain 

global competitiveness and foster innovation. 

There’s still no White Paper [at time of going to print]. 

48 

But the Automotive Business Council, also known as Naamsa, is 

bullish about developments after Trade, Industry and Competition 

Minister Ebrahim Patel released details of a “working document” at 

the Presidential Climate Commission, making a “compelling” case 

for South Africa’s shift to NEVs. Patel insists the NEV roadmap is 

taking shape. 

This is significant because the current market for NEVs in South 

Africa is almost non-existent due to lack of demand – mainly because 

of the eye-watering cost of these vehicles, which are imported for the 

premium market. Also, there are plans for carbon taxes on imports. 

Patel reportedly told the commission: “We have not closed our eyes 

to the other options; we have looked at them and have concluded that 

it would be in South Africa’s best interest to move to EVs.” 

Finance Minister Enoch Godongwana met the automotive sector to 

discuss the Treasury’s approach to NEV production. 

There is a huge tax burden on all new vehicles produced in South 

Africa – in total, the Treasury lumps 42% in taxes on every vehicle sold, 

including 15% VAT, ad valorem tax (because vehicles are deemed to be 

luxury items) and carbon emissions taxes. 

Patel recognised the need for a support framework. Not creating 

it would put a lot of the GDP at risk. He said the government intended 

to go for a production-led model, rather than a consumption led 

strategy advocated by some stakeholders, whereby growth in domestic 

demand, supported by lower tariff barriers, triggers investment. 

Mike Mabasa, CEO at Naamsa said not releasing the White Paper 

created significant uncertainty in the market. But Naamsa is aware 

that government officials have been working behind the scenes on 

options and, based on the discussion and feedback, the organisation 

and others are comfortable that the department will “get us to the 

finish line”. 

Article courtesy of Daily Maverick 

READ REPORT 

There is a huge tax burden on all new 

vehicles produced in South Africa. 

“We are hopeful that before the end of this year South Africa will 

certainly be able to announce very firmly the direction we are taking.” 

URGENCY 

Motoring expert Mark Smyth says, though there has been delay, there 

is now a realisation that something needs to be done urgently. Time 

is of the essence. South Africa’s biggest markets have already decided 

to ban imports of ICE vehicles within less than eight years and the 

average lifecycle of a new model car is between five and seven years 

in terms of development time. 

Smyth says most manufacturers have already invested in new 

plants, with other plants coming remarkably close to ending their 

tenure and being at risk if they fail to switch quickly. 

The industry has become reliant on ICE and South Africa has been 

able to supply raw materials such as platinum catalytic converters used 



Changing 

the VAT 

in petrol and diesel vehicles, but it has none of the 

raw materials that are required for switching to 

electric vehicles. 

The manufacturers have invested significant 

amounts of money and resources in creating new 

facilities for EVs to be able to meet the demand, says 

Smyth, but there are already shortages worldwide, 

including chips and wiring harnesses from Ukraine. 

It is furthermore uncertain whether the South 

African government will stump up financial support. 

The automotive sector is a critical pillar of the South 

African economy – one of the country’s largest 

economic sectors by revenue with 4.3% to GDP 

(2.4% manufacturing and 1.9% retail). It accounts 

for 17.3% of manufacturing output and 18.1% of 

total exports. A total of 298 020 vehicles, worth 

R138.3-billion, and R69.2-billion in automotive parts, 

were exported in 2021. 

At least 110 000 people are directly employed in the sector and the 

livelihoods of more than half-a-million more people depend on it. In 

October last year, Mabasa warned that by 2030 40% of all vehicle sales 

in Europe may be EVs, and that his association believes the number 

could increase to 80% by 2040. 

“It is clear that we cannot ignore EVs if we want to continue doing 

business with Europe. It will have a huge impact on the country if we 

lose R201-billion in export earnings a year. 

“We don’t want our main export markets to say that they are no 

longer interested in ICEs because of their emission targets, and that 

they are taking their business elsewhere. We need to remain relevant. 

“The change in our industry is going to be driven by how we 

redefine mobility, the convergence of connectivity, electrification and 

changing customer needs – not just for our local consumption needs, 

but for other markets around the world as well.” 

HARNESSING ELECTRIC VEHICLES FOR INDUSTRIAL DEVELOPMENT IN SOUTH AFRICA 

| Tips Research Report for Department of Trade, Industry and Competition | National 

Association of Automobile Manufacturers of South Africa | [2020] 

The world of mobility is rapidly evolving worldwide. Technological developments are notably 

enabling the diversification of drivetrains, away from traditional internal combustion engines 

towards electric and other alternative motors. 

While EVs still account for a marginal share of global vehicle sales, the shift is evident in leading markets. 

All forecasts point to an exponential growth of EVs in the coming decades. Heightened environmental 

regulations, linked to climate change mitigation and air quality improvement, have initiated the transition 

to cleaner forms of transportation. 

Policy impetus, such as support programmes and tight environmental targets, are now driving the 

market globally. In addition, favourable economics, which see EVs being increasingly cheaper to own than 

petroleum-based cars over their lifetime, and consumer experience, linked to the connectivity, reactivity 

and usage experience of the vehicles, are supporting the transformation. 

South Africa lags behind this global trend. EVs remain extremely marginal, be it from an offer, demand 

or manufacturing perspective. As heralded by government and industry alike, it is, however, the ambition 

of the country to rapidly enter this space. While a coherent policy environment is lacking, the country’s 

Green Transport Strategy sets out government’s vision to radically grow the uptake of EVs in South Africa. 

As with every transition, the emergence of EVs brings disruptions, calling for the need to adequately 

manage the transition. In the short term, this requires supporting the development of the sector, both from 

a market development and manufacturing perspective, through a coherent policy framework consistent 

with South Africa’s domestic context. 

45 50 109 115 138 

Public 

transport 

Value 

chains 

Battery 

production 

Mineral 

beneficiation 

49

AGRICULTURE 

AGRICULTURE 

Opportunities for 

BUILDING RESILIENCE OF AFRICAN 

FARMING SYSTEMS 

Increasing agricultural production to feed the growing world population is a key sustainability 

challenge and one that is most crucial for Sub-Saharan Africa where most of the expected rise in 

world population by 2050 will occur. It is estimated that agricultural production will need to rise 

by between 60% and 80% to meet the projected rise in food demand. 

92% of forest cover lost in Africa between 2001 and 2015 was due 

to agricultural expansion by smallholder farmers, compared to about 

51% loss in forest cover at the global level during that period. 

It has been projected that an additional 430-million hectares will be 

cleared for food production in SSA by 2060 with dire environmental 

and biodiversity costs. Agriculture-led habitat loss is responsible 

for about 80% of all threatened terrestrial birds and mammals. The 

Intergovernmental Science-Policy Platform on Biodiversity and 

Ecosystem Services (IPBES) estimates that 25% of plants and animals 

assessed, or about one-million species, are threatened with extinction 

and that agriculture expansion is the most common form of land 

use change. 

Much of the agricultural system in SSA is characterised by low-input 

and low-technology production, rainfed production, many small and 

declining farm sizes as well as underdeveloped infrastructure and 

markets, which interact in many ways to hamper significant yield 

improvement. This trend must be reversed to build resilience. Building 

the resilience of African farming systems is closely associated with 

shifting from extensification to intensification mainly by increasing 

crop yields including on previously fallowed land. 

Changing climatic conditions will 

necessitate a change in cropping 

patterns across the continent. 

CHALLENGES TO RESILIENT FARMING 

The sustainability of African farming systems is limited by several 

factors. The main ones, many of which are related to farmer behaviour, 

include: acute land scarcity; degradation of land; variable weather 

conditions; and challenges in creating an enabling policy environment 

that encourages private investment in food systems. 

Increasing rural population 

Africa’s rural population is projected to increase by 305-million to 

reach 810-million by 2050. A decade ago, the population density 

on the continent averaged 117 persons/km 2 of cropland with the 

average at 172 persons/km 2 in areas of high density. Almost 74% of 

the rural population in SSA is clustered in densely populated areas 

operating on 20% of arable land that receives good rainfall. 

The projected increase in rural population poses two important 

challenges. First, it implies mounting pressure on cropland and 

increasing land fragmentation. Second, given the land pressures, 

agricultural growth will have to rely on intensification as the longterm 

sustainable path. 

Yet, evidence indicates that at very high levels of population 

density, the positive relationship of agricultural growth with 

Boserupian land intensification breaks down. This implies that 

yield improvements on existing land will need to be based on 

sustainable intensification practices for agricultural growth. 

BOSERUPIAN LAND INTENSIFICATION 

Economist Ester Boserup’s theory of agricultural intensification 

explains how human populations continue to grow despite visible 

environmental limits. Boserup posits that humans adopt more 

industrious technologies as they continue to grow. She argues 

that when people need to sustain themselves, they do whatever is 

necessary to survive. 

The rising food demand in Africa can be met by any combination 

of the following pathways: (1) increased importation of food; 

(2) increased agricultural output due to expansion of area 

under food production; (3) reducing food waste and loss, which 

currently accounts for about 30% of agricultural output; and/or 

(4) producing a greater quantity of agricultural output on existing 

farmland, ie a productivity-led approach to agricultural growth. 

Sub-Saharan Africa (SSA) has achieved the highest rate of growth 

in agricultural production value of any region in the world since 2000, 

expanding by 4.3% per year in inflation-adjusted US dollars between 

2000 and 2018, roughly double that of the prior three decades. 

The world average over the same period was 2.7% per year. Roughly 

75% of SSA’s crop production growth came from the expansion of 

area under cultivation and only 25% from improvements in crop yield. 

The region’s average cereal grain yield at the start of the 21st Century 

was about 1t/ha (ton per hectare), while yields averaged 3t/ha in Latin 

America and South and Southeast Asia, 5t/ha in China and more than 

10t/ha in North America, Europe and Japan. 

The main biophysical reason for SSA's poor results were due to the 

depletion of soil fertility on smallholder farms because they could 

not replenish the nutrients removed by harvest with enough mineral 

fertilisers and organic inputs. Empirical evidence from on-farm 

experiments suggests that cereal yields in SSA can increase 3t/ha 

using current widely available technologies. By 2019, SSA’s average 

cereal yields increased to about 1.5t/ha, indicating that there is scope 

for significant further improvements in yields. 

Due to environmental concerns including biodiversity conservation 

and destruction of natural vegetation, continued reliance on area 

expansion as the main source of agricultural growth is not a viable 

option. In some communities, all potential farmland is already under 

cultivation, meaning an increasing population will further limit access 

to quality land for the youth, potentially triggering social conflicts. 

Cropland expansion is a major cause of deforestation, which 

engenders climate variability by raising temperatures. For example, 

in Zambia, smallholder cropland expansion accounts for about 60% 

of the 250 000 hectares of forest lost annually. It is estimated that 

Cropland expansion is a major 

cause of deforestation, which 

engenders climate variability 

by raising temperatures. 

50 

51

AGRICULTURE 

Land degradation 

Land degradation constitutes the loss of production capacity due to 

reduction in soil fertility and the loss of biodiversity. Africa is the second 

most affected by land degradation after Asia, with some 73% of land 

(10.5-million km 2 ) in dry areas degraded. About 157.2-million people 

(38% of rural population) in SSA were living off degraded agricultural 

land by 2010, up from 32% in 2000. 

With rising land pressures in SSA, there is risk of accelerated 

degradation of existing arable agricultural land and population 

encroachment onto degraded lands that are unsuitable for 

agricultural production. Loss of soil fertility is a major source of 

land degradation that has significantly affected crop yields in SSA. 

Soils in SSA have undergone nutrient depletion over the years, 

rendering them less fertile for agriculture and thus jeopardising 

the region’s food security. 

Roughly 10% to 40% of smallholder fields in a wide range of countries 

and conditions across Africa have been found to be non-responsive 

to inorganic fertiliser applications. Mounting evidence indicates that 

smallholder resource constraints and soil fertility deficiencies need 

to be addressed holistically for smallholders to achieve a higher yield 

response to inorganic fertilisers and to increase the profitability and 

demand for fertilisers. 

A more holistic approach to increasing soil fertility that includes 

increased mineral fertiliser use as well as other organic nutrient 

resources will improve efficiencies and profitability of fertiliser use 

in SSA. 

Climate change 

Climate change is one of the most important challenges to the 

resilience of agriculture globally. This is more so in developing countries 

that have limited resources to mitigate the effects of climate shocks. 

In Africa, rising temperatures and increased rainfall variability have 

been observed in the past and predicted into the future with negative 

implications for agricultural production. 

Changing climatic conditions will necessitate a change in cropping 

patterns across the continent. It is estimated that by 2050, SSA will 

experience a decrease in the yield of a range of staple crops, specifically 

for maize (22%); millet (17%); sorghum (17%); groundnuts (18%); 

and cassava (8%). These predictions paint a picture of high-level 

Agriculture-led habitat loss is 

responsible for about 80% of all threatened 

terrestrial birds and mammals. 

vulnerability for a large section of SSA’s smallholder farmers who are 

dependent on rainfed agricultural production with low levels of inputs 

and limited access to basic services such as improved infrastructure 

and information. 

Human pandemics 

Covid-19 put a further strain on Africa’s agricultural sector, which was 

already under pressure from other challenges. Given that about 70% 

of the African population is engaged in agriculture, the outbreak of 

this pandemic threatened production systems that are predominantly 

labour-intensive. Restrictions on movement contributed to increased 

food losses for highly perishable agricultural products. The situation 

was worsened by limited investments in cold chain systems and 

value addition. Transport restrictions resulted in logistical challenges 

including scaling down of international shipments, which impacted 

supply chains of farm inputs such as seed, pesticides, fertiliser and 

other agrochemicals. This increased the prices of inputs especially in 

countries that depend on imports. 

The devastating effects of Covid-19 revealed the limited capacity 

of African farming systems to cope with pandemics and associated 

economic shocks. This suggests a need for building resilience to such 

shocks at the primary level of the food systems. 

BUILDING RESILIENCE 

Improved farming practices that help restore and maintain soil heath 

and raise productivity are necessary for building resilience. Although 

the exact mix of practices will differ spatially, climate-smart agriculture 

– broadly defined as farming practices that aim to raise productivity 

and household income, build adaptation capacity and resilience to 

climate change as well as reduce greenhouse gas – is considered an 

integral component. 

Battery energy 

storage powered 

by renewable energy 

is the future, and it 

is feasible in South 

Africa right now! 

Sodium-sulphur batteries (NAS ® Batteries), 

produced by NGK Insulators Ltd., and 

distributed by BASF, with almost 5 GWh 

of installed capacity worldwide, is the 

perfect choice for large-capacity stationary 

energy storage. 

A key characteristic of NAS ® Batteries is the 

long discharge duration (+6 hours), which 

makes the technology ideal for daily cycling 

to convert intermittent power from renewable 

energy into stable on-demand electricity. 

NAS ® Battery is a containerised solution, 

with a design life of 7.300 equivalent cycles 

or 20 years, backed with an operations and 

maintenance contract, factory warranties, and 

performance guarantees. 

Superior safety, function and performance are 

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READ REPORT 



This article is an excerpt from the Africa Agriculture Status Report A DECADE OF ACTION: 

BUILDING SUSTAINABLE AND RESILIENT FOOD SYSTEMS IN AFRICA | Alliance for a 

Green Revolution in Africa (AGRA) | [2021] 

If we do not transform our food systems, we will hardly attain the Sustainable Development Goals 

(SDGs), particularly ending hunger. In this decade, Africa will need to chart clear pathways and 

identify concrete actions that can build sustainable and resilient food systems. 

Food systems that can deliver sufficient and nutritious food to feed the 256-million food insecure people 

on the continent. Food systems that are environmentally sustainable and can reverse the trend in deforestation 

and soil degradation. Food systems that create dignified jobs and shared prosperity for African youth now 

entering the labor market at a rate of 11-million per year with only 25% getting employed. 

*Authors: Regis Chikowo, Plant Soil Microbial Sciences, Michigan State University; John Olwande, Tegemeo Institute, Egerton University; Maria Wanzala, African Fertilizer and Agribusiness Partnership (AFAP); 

Mary Lubungu, Indaba Agricultural Policy Research Institute (IAPRI); Hambulo Ngoma, International Maize and Wheat Improvement Center (CIMMYT); Pedro Sanchez, University of Florida. 

Contact us right away for a complimentary 

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out how a NAS ® Battery solution can 

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info@altum.energy 

www.altum.energy 

Altum Energy: 

BASF NAS ® Battery Storage Business 

Development Partner – Southern Africa 

52

ENQUIRIES 

Contact Alexis Knipe: alexis@greeneconomy.media 

www.greeneconomy.media

Green Economy Journal Issue 54

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