Infrastructure
development in South Africa - a look specifically at the preparations for the
2010 World Cup and how this has catapulted the country into another phase of
its development
By
Danny Jordaan
President
of the South African Football Association
Since
South Africa successfully hosted the 2010 FIFA Soccer World Cup to great global
acclaim, there has been a much greater recognition of the power of sport to act
as a catalyst for infrastructure development, and to provide a mechanism to
encourage greater social mobilization.
According to the 2010 FIFA World Cup Country Report which was published
at the end of last year, the tangible benefits and the legacy of organizing and
hosting major global sporting events can be substantial and long-lasting to the
host country. For example, in preparation for the Soccer World Cup in
2010, South Africa’s strategic investment in the infrastructure development
required to host the tournament was around US$ 3 billion, including roads,
airports, ports, stadia and telecommunication, etc. The approximately US$ 1.1 billion investment
in building and upgrading ten FIFA 2010 stadia alone created not only a range
of world-class sporting facilities, but also generated approximately 66 000 new
construction jobs, and R7.4 billion in wages, with R2.2 billion going to
low-income households. Much needed
investment in upgrading transportation infrastructure was South Africa’s
biggest World Cup cost, with US$ 1.3 billion dedicated to improving road, rail
and air links in the country, with a further US$ 392 million spent on improving
the country’s main ports of entry. This
type of investment has shown that it has the potential to tangibly contribute
to reducing poverty and unemployment levels in the country for the long
term. As a result of this initial
investment in world class infrastructure, South Africa now has an unprecedented
range of sporting stadia and facilities that can rival the world’s best, and
also attract the most prestigious sporting events to the country, with this year’s
awarding of the 2013 Africa Cup of Nations tournament to South Africa being a
testament to this fact.
South
Africa’s hosting of the 2010 Soccer World Cup and its ultimate success and
achievements, acted as a powerful catalyst for infrastructural change and
further major investment programmes to take place. Earlier this year, Government announced its
intention over the next three years to invest a further R827 billion in the
building of new infrastructure and the upgrading of existing infrastructure.
The
country’s ambitious National Infrastructure Plan has introduced the national
and central coordination of the building of dams, roads, bridges, power
stations, schools, hospitals, two new universities and other infrastructure
that will change the landscape of the country and have a profound impact on the
lives of its citizens. 18 major
strategic infrastructure projects have been identified as priorities under the
new National Infrastructure Plan, especially those directed at the 23 poorest
districts in the country, ensuring the provision of water, electricity and
sanitation, positively changing the lives of approximately 19 million
people. Similarly, the planned programme
of investment in the construction of ports, roads, railway systems and electricity
plants will also contribute to faster economic growth in the country, making it
more competitive in the global marketplace.
Infrastructure development has been
identified as a pivotal means of attaining an industrialised economy and
achieving economic growth and transformation. It is a key priority if South
Africa is to achieve its desired and essential growth potential over the next
few years. It is a key pillar of both
the country’s National Development Plan and its New Growth Path and provides a
mechanism to support economic transformation, national growth and essential job
creation in the country at a pivotal time in the country’s economic
history. If the South African
Government is to successfully lay a new foundation for growth, provide decent
work for all its citizens, and enhance the prosperity of the country overall,
then this type of infrastructure development is essential.
Last year, South Africa’s Cabinet
established the Presidential Infrastructure Coordinating Commission (PICC) as a
practical response to the challenge of facilitating fast-tracked government-led
infrastructure investment to achieve maximum impact. Its mandate is to plan and coordinate the
National Infrastructure Plan, supported by the necessary political will needed
to synergise infrastructure planning and implementation across all spheres of
Government, state agencies and social partners. 18 Strategic Infrastructure
Projects (SIPs) have been identified, each of which has five core functions: to
unlock opportunity, transform the economic landscape, create new jobs,
strengthen the delivery of basic services and support the integration of
African economies. These projects look to make an impact and achieve impressive
goals through initiatives such as greening the economy, boosting energy
security, promoting integrated municipal infrastructure investment,
facilitating integrated urban development, accelerating skills development,
investing in rural development and enabling regional integration.
Ultimately, The National
Infrastructure Plan aims to transform the structure of the South African
economy into a more employment-friendly, equitable and inclusive environment
that has the potential to create real opportunities for every South African
citizen to share in the country’s growth and development. If the country is to build sustainable
economic resilience in the face of continuing global economic challenges, then
the development of quality, affordable infrastructure could definitely hold one
of the keys to benefitting the country’s citizens in their day-to-day
lives. Raised economic productivity and
expansion provides an opportunity for those previously marginalised households
and communities to take advantage of new opportunities. In turn, this helps to
build social capital, raise living standards and provide access to essential
services such as electricity, piped water, housing and reliable, affordable
transport systems. Implementation of the National Infrastructure Plan will
strengthen domestic demand for local capital goods industries, services and
products which will in turn support manufacturing growth in the country and
create more job and skills development opportunities. Leveraging job creation,
skills development and localisation of infrastructure development will empower
South Africans to help build a more equitable society.
There is no doubt that a strong and
tangible link exists between economic infrastructure investment and GDP growth,
which in turn supports an upswing in employment figures. There is also a strong relationship between
economic infrastructure investment and public sector employment, reflecting the
role of such investments on job creation through construction, maintenance and
the actual operational activities. Increased employment could in turn
contribute to further infrastructure investments indirectly through the
multiplier effects across the economy. Today, as the country takes its place as
the newest member of the BRICS grouping of nations, there has never been a
better time for South Africa to increase its focus and investment in the
country’s infrastructure. In the
long-term, lasting economic benefits can be achieved and, more critically in
the immediate term, much-needed jobs and socio economic opportunities can be
created. Increasing South Africa’s
investment in infrastructure development at this critical juncture would have a
significant and positive economic impact, raising the nation’s economic output,
putting people to work, and enhancing South Africa’s competitiveness and
standing on the global economic stage.
It would mean that the country’s hosting of the Soccer World Cup back in
2010 did indeed leave an infrastructural legacy that today is being fully
leveraged for the socio economic upliftment of generations of South African citizens
to come.
SA auto sector
agrees to 'pull together'
The Department
of Trade and Industry (DTI), vehicle manufacturers and organised labour have
committed to work together to ensure the long-term stability of South Africa's
automotive industry.
During a
meeting with Trade and Industry Minister Rob Davies in Pretoria on Thursday,
key stakeholders agreed to work together to ensure the sustainable
competitiveness of the sector by deepening its value chain and taking steps to
secure long-term stability of supply and productivity.
According to
the DTI, all parties at the meeting endorsed a new initiative by the
department, the Automotive Supply Chain Competitiveness Initiative (ASCCI).
In an
industry-first for South Africa, a national strategy for competitiveness
improvement will be led and implemented through a facilitated steering
committee structure, with committed participation from the major national
stakeholders.
These include
the National Association of Automobile Manufacturers of SA (Naamsa), the
National Association of Automotive Component and Allied Manufacturers (Naacam)
and the National Union of Metalworkers of SA (Numsa).
In a joint
statement with the DTI, the parties agreed that state support - primarily
through the Automotive Production Development Programme (APDP) - had to be
complemented "by continuous improvement and competitiveness gains in the
domestic value chain".
The steering
committee "has already designed a co-ordinating and implementation
blueprint of activities to achieve this. This initial set of activities is
intended to run from now until 2017".
Key focus areas
include supplier operational capabilities, increase localisation and
manufacturing value addition, and other strategic issues affecting local supply
chain competitiveness.
New antenna for SA space ops centre
8 October 2013
The South African National Space Agency
(Sansa) on Friday inaugurated the latest addition to its expanding fleet of
technologically advanced antennae as the country continues to position itself
as one of the world's reliable space nations.
"The new antennae facility consists of
a new 10m Ku-DBS band antenna and an equipment room, outfitted with IOT [in
orbit test] equipment and infrastructure to assist clients to successfully
commission new satellites," Sansa Space Operations MD Raoul Hodges said in
a statement.
The R17-million limited-motion antenna was
inaugurated at Sansa's space operations facility at Hartebeesthoek, about 65
kilometres north-west of Johannesburg.
"We have seen a steady growth in the market
for IOT services, and with the existing KU-DBS facility carrying a high
workload for normal transfer orbit operations, it made sense to develop a
dedicated facility," Hodges said.
According to Sansa, South Africa is in an
ideal position to assist satellite operators with the qualification and
commissioning of their new satellites, as the country has a relatively
radio-quiet environment and a good geographic position.
Since 1984, the Hartebeesthoek facility has
supported more than 450 successful launches, space craft supports and in orbit
tests - the most recent being the launch last month of Nasa's LADEE lunar
probe.
"Space is big business around the
world, and South Africa needs to seize the opportunities we have to capitalise
on the global market," said Phil Mjwara, director-general in the
Department of Science and Technology.
SAinfo reporter
AneshreeNaidoo
When the Witwatersrand Gold Rush began 127 years
ago, it birthed the city of Johannesburg, affectionately known in Zulu as
eGoli, the City of Gold. But years later, as the ground gave up its last golden
nuggets, the abandoned mines have filled up with acidic water that poses a
significant pollution threat to the city's water resources.
But South African academics and scientists have been hard at work
on solutions to tackle the corrosive mining by-product, and one has
successfully applied for, and received, a United States patent for an acid mine
water treatment process.
A world-leading scientific process
Professor JannieMaree, Rand Water chair in water
utilisation in Tshwane University of Technology's Faculty of Science, says
the magnesium-barium-hydroxide (MBO) process, which removes metals and sulphate
from mine water, offered South Africa a technically sound and cost-effective
solution for the acid mine water problem.
Acid mine drainage is highly acidic water, usually containing high
concentrations of metals, sulphides and salts from mining. This acid runoff
also dissolves heavy metals such as copper, lead and mercury into ground or
surface water, threatening the health of rivers by disrupting aquatic
organisms' growth and reproduction. Further problems include the acidic runoff
corroding infrastructure like bridges. Most importantly though, the drainage
pollutes groundwater, which contributes to the drinking water supply. In a
water-poor country like South Africa this poses a significant problem.
So much so that in his 2012 State of the Nation address
South Africa's President Zuma said that R248-million was to be invested over
the next two years to deal with acid mine drainage on the Witwatersrand, an
extensively mined area in the Greater Johannesburg Metropolitan Area in the
province of Gauteng.
Gold mining began in 1886 on the Witwatersrand, which stretches
50km from Krugersdorp to the west, to Boksburg to the east. From the 1950s
mines across the region started closing down and the last remaining operational
mine, East Rand Propriety Mines in Boksburg, closed its operations in 2008.
During the mining period, there was infrastructure in place to
pump water out of the mines. But as they closed down, the underground voids
created from mining operations have filled up as the pumps have ceased.
Accumulated water has also flowed into adjacent mines, filling up the entire
void.
Laboratory success, real world application
Maree said removing metals and sulphate with the MBO process could
produce water that contained levels low enough to be acceptable as drinking
water. "This was provided the levels of sodium and chloride in the treated
water was low."
He added that the "patented process was used with great
success at laboratory level", where water from coal and gold mines was
used. The success of the process success was recorded in Tshwane University of
Technology (TUT) postgraduate student HangwiBologo's master's dissertation.
Maree describes the income-generating side to the process, saying
"the saleable products from the process would be sulphur, calcium
carbonate and the treated water. Depending on the water quality other saleable
compounds could be metals and magnesium hydroxide."
He adds: "SA imports its sulphur. Sulphuric acid is produced
from sulphur which is an important raw material in the manufacturing of
fertiliser."
Acid drainage filtration
Another academic working on, among others, the acid mine drainage
problem, Professor Sunny Iyuke of the University
of the Witwatersrand School of Chemical and Metallurgical
Engineering, has, with the help of PhD students, developed a membrane to
separate waste from water. The membrane has applications across industry, water
purification and even medicine.
According to Iyuke the membrane (similar to a household water
filter) could be used to catch water waste from mines before it entered drains
or the water table.
Forum to tackle SA competitiveness
Over 200
high-level representatives of government, business, labour, civil society and
academia will gather in Midrand on 5 November for the inaugural Competitiveness
Forum hosted by Brand South Africa.
Deputy
President KgalemaMotlanthe and Ministers in the Presidency Collins Chabane and
Trevor Manuel will address the forum, which will bring together a cross-section
of stakeholders to deliberate on what competitiveness is and why South Africa
needs to be competitive.
A critical
part of the discussion, Brand South Africa said on Wednesday, would be how the
nation's competitiveness can contribute to the implementation of the National
Development Plan (NDP).
A policy
blueprint for eliminating poverty and reducing inequality in South Africa by
2030, the NDP - also referred to as Vision 2030 - identifies the key
constraints to faster growth and presents a roadmap to a more inclusive economy
that will address the country's socio-economic imbalances.
"The
discussion around competitiveness is one that many developing countries have
had, and international best practice has shown that national growth and
development can only be achieved when all citizens participate in driving this
agenda," Brand South Africa said in a statement. "South Africa needs
all our people to be committed to Vision 2030."
South
Africa dropped one place in the World Economic Forum's (WEF's) latest Global
Competitiveness Index, ranking 53rd out of 148 countries surveyed while placing
second in Africa, second among the BRICS economies, and third overall for
financial market development.
Petrus
de Kock, the research manager at Brand South Africa, said earlier this month
that the South African Competitiveness Forum would be "very much a
consultative forum - this is a key platform for us to share knowledge and
experience, but also to work together to build a stronger reputation and a
competitive country to position internationally".
The
programme is jam-packed, with a plenary session to be opened by Motlanthe,
followed by five breakaway sessions. Taking a workshop-style format, these
sessions will highlight the country's reputational and competitive strengths
and weaknesses. "We are looking at how we can fix problems and ways we can
make the national brand even stronger," De Kock said.
Other
speakers at the forum will include Brand South Africa chairperson Chichi
Maponya, Brand South Africa CEO Miller Matola, and senior representatives from
the business sector.
Finance Minister outlines
challenges of rapidly changing world at BRICS Innovation conference.
By John Battersby.
South Africa and the developing and
high-growth economies needed to find a balance between being connected and
being competitive in a rapidly changing and increasingly interconnected world.
Finance Minister Pravin Gordhan said at a BRICS innovation conference in London
this week.
Minister Gordhan was a keynote
speaker at the innovaBRICS conference in London which was sponsored by Brand
South Africa and the trans-Atlantic law firm Hogan Lovells.
He said that the point had been
passed where the developed nations of the world were able to decouple from the
developing and high-growth economies of BRICS when the latter were not
performing well and the developing economies no longer had the option of
decoupling from the developed nations when they were not performing well as was
the case at present.
"We are all in this together
and need to resolve the challenges jointly," the Minister said.
He said that there was no country
in the world that could say it was not challenged in its domestic and
international environment by what was going on in the global economy.
"But that does not mean
catastrophe," Gordhan said. "It means that we need to become more
dynamic and more responsive to the new realities."
Dealing with the challenges in the
mining industry in South Africa on other developing economies reliant on
resource sales. the Minister said that the mining cycle would recover although
it would not return to a super-cycle as had been the case in the past decade.
He said that South Africa offered
investors major opportunities in financial services, infrastructure financing
and delivery and in manufacturing. The challenges were to achieve more
inclusive growth and a better education system.
Gordhan was among speakers from
China, Brazil, India and Russia at a conference attended by more than 200
delegates from 32 countries.
Mr Zhou Xiaoming, Minister
Counsellor Economic and Commercial in the Chinese Embassy in the UK, said that
the BRICS had come a long way since Goldman Sachs' Jim O'Neil had coined the
term in 2001 and that the group had undergone a major transformation which even
O'Neil might not have imagined.
The academic concept of BRICS has
been turned into an organisation and has become increasingly institutionalised
with an annual summit, he said. It had become more action-oriented and turned
into a decision-making body.
He said that more flesh was added
to the bones of BRICS when the leaders decided in Durban earlier this year to
create a BRICS development bank and set aside a contingent reserve currently
standing at $100-bn.
Mr Zhou said that the influence of
BRICS was being in political, economic, scientific and technological fields and
it had become the most important forum for dialogue and co-operation among the
emerging nations.
He said that BRICS was made up of
diverse nations with different interests but they had more in common that
divided them and diversity was not a barrier to greater co-operation.
"The BRICS countries share a
common dream: to better the lives of their people and to bring about a more
equitable economic order," Mr Zhou said.
He said China had been and remained
a champion and a driver of the BRICS.
"We believe that deepening the
partnerships among BRICS countries will not only benefit their individual and
collective economies but will also contribute world peace and the global
economy," he said.
He said that over the past decade,
China's trade with other BRICS countries had grown by 11.5 times compared to a
mere doubling of China's trade with the rest of the world.
"China is currently the
biggest two-way trading partner for Brazil, Russia and South Africa and China's
investment in these countries had grown from almost nil ten years ago to over
$50-bn," he said.
He said the current challenge to
BRICS economies were more of a temporary than long-term nature. If the BRICS
countries pressed ahead with economic restructuring and reform they would
remain some of the most dynamic economies in the world.
Professor Marcus Troyjo, director
of BRICLab at Columbia University, said that at the current rate of 7% growth
China would become the world's largest economy in 2023. That would be the
biggest event in the global economy since 1871 when the United States overtook
Britain as the world's largest economy.
He said that the world economy had
moved from a period of intense globalisation to one of de-globalisation which
was about each country pursuing its own interests. It was now moving into a
period of re-globalisation which would present new challenges for the
developing economies and they would need to adjust to the new reality.
Brazilian ambassador to the UK,
Roberto Jaguaribe, said that Brazil had welcomed South Africa joining the group
and filling a clear gap in its ranks with no representation of Africa.
He said the BRICS group was an
effective forum for promoting global growth and for driving political
association and it provided a dynamic platform for convergence and
complementarity.
* Brand South Africa was the lead
partner of the innovaBRICS conference.
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