Engineering News - 8 June 2022 by Schalk Burger 

Read online at Engineering News

Engineering News - 2 June 2022 by Tasneem Bulbulia 

Read online at Engineering News

For more about the Webinar see: Upacking the Green Economy Ecosystem: Business Development Support Services for Local Green Entrepreneurs

Presentations

Contextual financial analysis for driving sustainable finance reforms for micro and small enterprises in South Africa (Elize Hattingh, Researcher TIPS; Kiara Muthusamy, Intern TIPS; Ntombiyesibini Phumelal, Intern TIPS)

Climate finance landscape: Overview of funding activities in South Africa (Jack Radmore, Energy Programme manager and Climate Finance Lead, GreenCape)

Lessons learned from the Green Outcomes Fund (Mandy Jayakody, Project manager, Green Outcomes Fund, Bertha Centre)

Overview of sefa 2022 (Letlatsa Lehana, Head Khula Credit Guarantee and representative for the Small Enterprise Finance Agency

Media

Finance gaps for local green entrepreneurs need to be addressed (Darren Parker, Engineering News - 20 July 2022)

Background

The COVID-19 pandemic and associated policy responses have disrupted economies and societies worldwide, increasing poverty, inequality and unemployment. Governments have responded through (often large) policy packages aimed at cushioning negative impacts on households and businesses, and reigniting the economy. Furthermore, strong calls for a 'better, fairer and greener' recovery have led many governments to commit additional resources towards the transition to a green economy. Green recovery efforts and a just transition to an inclusive green and inclusive economy offer an opportunity to develop and implement a shared vision of resilience and sustainability. Yet questions remain about the inclusivity and green credentials of recovery packages. South Africa is no exception and such debates are vivid in the country.

Small, medium and micro enterprises (SMMEs) are not only viewed as being critical for economic development and job creation but have the potential to be vital economic players to drive inclusive and sustainable development in low- and middle-income countries. Local Green Entrepreneurs (LGEs) are viewed as key adopters of radical environmental innovations (often neglected by established firms) in the production and manufacturing of environmental goods, services and technologies. Given their role as testing grounds for green innovations, which many established firms view as high-risk, LGEs have the agility to accelerate access to new markets and play a catalytic role in the diffusion and uptake of green innovations. Such enterprises can play a substantial role in developing inclusive pathways to sustainability and are at the forefront of climate responses and innovations (both adaptation and mitigation) and environmental sustainability.

Within this context, this webinar aims to unpack issues on access to inclusive finance for LGEs in South Africa. The workshop aims to influence national policymakers and sustainable finance stakeholders, including donors, and discuss crucial issues related to access to finance. Signature policy issues include the following: sectoral challenges; a lack of risk appetite from funders for early-stage finance; limited access to financial services; financial ecosystem challenges; narrow fit for purpose "green industry" financial products; and a draft SMME and Cooperative Finance Policy that is silent on how it plans to support SMEs in green industries.

Agenda

11:00 - 11:10 Welcome and introduction

Muhammed Patel, Senior Economist, Trade & Industrial Policy Strategies (TIPS)

11:10-12:20 Key inputs

Unpacking signature issues on inclusive finance for local green entrepreneurs in South Africa - Elize Hattingh, Researcher, Trade & Industrial Policy Strategies (TIPS)

Climate finance landscape: Overview of funding activities in South Africa - Jack Radmore, Energy Programme manager and Climate Finance Lead, GreenCape

Lessons learned from the Green Outcomes Fund - Mandy Jayakody, Project manager, Green Outcomes Fund, Bertha Centre

Overview of the Innovation Fund - ​Letlatsa Lehana, Head: Khula Credit Guarantee (SOC) Ltd and representative for the Small Enterprise Finance Agency (SOC) Ltd.

12:20 - 12:50 Discussion and Q&A

12:50 - 13:00 Wrap up

About the Speakers

Mandy Jayakody is contracted to the Green Outcomes Fund, a pioneering outcomes-based funding facility, promoting the uptake of SMME development in the Green Economy. Mandy has worked on projects in South Africa, Rwanda, Mozambique, Swaziland, Abu Dhabi, Saudi Arabia and the UK. She was recently appointed to serve on the council of the NHBRC. In 2018 at the African Construction Awards she was awarded "Young Entrepreneur Rising Star". Mandy was also a finalist in the 2018 Standard Bank Top Women Awards (Infrastructure category). She is a doctoral candidate researching Impact Investment in Affordable Housing.

Jack-Vincent Radmore is the Energy Programme Manager and Climate Finance Lead at GreenCape. Jack has a background in business sciences, finance and sustainable development. He specialises in innovation management, informal settlement upgrading and innovative finance. In his current role, Jack is responsible for the strategic direction of GreenCape's energy and climate finance activities in South Africa. Jack joined the Green Economic Development Agency, GreenCape, in 2014, and through his leadership, hard work and dedication to the field, he now manages GreenCape's renewable energy and climate finance work. As Programme Manager, Jack is responsible for managing all related activities in South Africa and has also led GreenCape's previous work in Kenya and Ghana.

Elize Hattingh is a Researcher: Sustainable Growth at TIPS. She has been actively involved in promoting the sustainable development agenda for more than 15 years. She was the Executive Coordinator for Waste to Wing, a Switch Africa Green Project and the Incubation Manager at the South African Renewable Energy Incubator. She also actively supports youth-owned entrepreneurs at Youth Bridge Trust and women-owned entrepreneurs at Future Females Business School with business development support.

Letlatsa Lehana is employed by the Small Enterprise Finance Agency as the Head of Khula Credit Guarantee (SOC) Limited (KCG), a licensed non-life insurer which is a wholly owned subsidiary of sefa.  He has more than 15 years of senior management in finance experience at organisations such as ABSA Bank at Group Finance, Sasol Petroleum Nigeria Limited, Anglo American South Africa Limited, Eurasian Natural Resources Corporation and General Electric. He represents sefa’s interest at the on-going Partial Credit Guarantee study undertaken by the World Bank and National Treasury for the recapitalisation of KCG; he is a member of the European Union Project Steering Committee for the €30 million allocated to sefa under the programme – Employment Promotion through SMME Support Programme for the Republic of South Africa (EPSSP).  He is also a member of sefa SME Lending Committee.

About the facilitators

Gaylor Montmasson-Clair is a Senior Economist at TIPS, where he leads work on Sustainable Growth. He has carried out extensive research on the transition to an inclusive green economy from a developing country perspective, with a focus on policy frameworks, industrial development, just transition and resource security.

Muhammed Patel joined TIPS in 2017. He holds a Masters in Economics from the University of KwaZulu-Natal, where his thesis focused on the relationship between income and health in South Africa. Muhammed's background spans work in industrial development, and competition and regulatory economics. While completing his Master's degree, Muhammed worked as a junior researcher at the School of Development Studies conducting research on the manufacturing sector of eThekwini. He also lectured undergraduate economics students over this time. In 2015, Muhammed joined competition and regulatory consultancy Genesis Analytics, where he spent two years working on competition and regulation cases. Notably, his work focused on the telecommunications and energy sectors.

South Africa had a trade surplus of R93.7 billion in the fourth quarter of 2021, down from R101 billion in the third quarter of 2021. Year-on-year, imports increased by about 17% to R381 billion in the fourth quarter of 2021, while exports increased by about 9% to R475 billion in the same period. Trade, and especially imports, saw a recovery following the early negative impact of the COVID-19 pandemic at the start 2020. Imports reached their highest fourth quarter level since peaking at R389 billion in 2014, and exports also continued their growth trajectory, reaching their highest fourth quarter level in 2021.

This Import Tracker has an overview of the year. See Section 2: Summary of Trends from 2021.

Presentations

Refining and logistics sectors (Dave Wright, Independent Researcher and a Director of the South African National Energy Association)

Petrol stations, workers and a just transition in South Africa (Nokwanda Maseko, TIPS Senior Economist)

Employment opportunities in a biomass supply chain (Farai Chineshe, Bioenergy Analyst, WWF South Africa)

Media

Press release: Some tough conversations needed to address the transition in the liquid fuel value chain

Just transition holds opportunities, but also risks for South Africa's liquid fuel value chain (Engineering News, 8 June - Schalk Burger)

This webinar is part of the Making Sense of Employment in South Africa's Just Energy Transition project. TIPS and the WWF South Africa, with the support of GIZ, are implementing this initiative to support policymaking for South Africa's just transition. This focuses on employment and the relevant challenges and opportunities in the country's just energy transition.

Related research

Research Report: Exploring alternative options for coal truckers in a biomass supply chain (Farai Chireshe and Tjasa Bole-Rentel (WWF South Africa)

Policy Brief: Employment metrics in South Africa’s electricity value chains (Lauren Hermanus, Adapt)

Programme  

Welcome and introduction: Gaylor Montmasson-Clair, TIPS

Presentation of research findings

• Refining & logistics sectors, Dave Wright, Independent Researcher and a Director of the South African National Energy Association (SANEA)
• Petrol stations, workers and a just transition in South Africa, Nokwanda Maseko, Senior Economist, TIPS
• Exploring employment options in a biomass supply chain, Farai Chireshe, Bioenergy Analyst, WWF-SA

Panel discussion

• Shamini Harrington, Vice-President: Climate Change, Sasol and Presidential Climate Commissioner
• Boitumelo Molete, Social Development Policy Coordinator, Congress of South African Trade Unions
• Rod Crompton, Adjunct Professor & Director, Wits Business School, African Energy Leadership Centre

Background 

While there is consensus that South Africa should decarbonise rapidly to meet its climate commitments, in line with a net zero emission pathway by 2050, the impacts of such a low-carbon transition and how it should be mitigated are hotly debated. In South Africa’s fossil fuel dependent economy, these debates have coalesced around the phase-out of coal and the introduction of renewable energy. Yet, the transition will have economy- and society-wide implications. Particularly, the liquid fuel value chain is set to be impacted as transportation is increasingly electrified and the consumption of petroleum products gradually decreases. The implications of the low-carbon transition on the liquid fuel value chain in South Africa remain largely unexplored.

While not a traditional oil producer, South Africa has an important liquid fuel value chain. It ranges from coal- and gas-to-liquid production, to import terminals and refineries, to transportation and retail services. The drive to reduce greenhouse gas emissions, heightened environmental standards (particularly for fuels), and technological evolutions (especially in transportation) are set to deeply impact the value chain. The impact on the unique circumstances in the South African liquid fuel value chain are unclear. South Africa is a net importer of liquid fuel but does have material production from coal and gas. At the same time, fuel standards lag significantly global standards and local refineries are small in size by international metrics. Global developments are set to lead to the restructuring and closure of facilities, with impacts throughout the value chain. In contrast, the domestic industry could be a major player in the production of so-called "powerfuels" or "green fuels", leveraging strong renewable energy potential, a large sustainable biomass resource base and expertise in the Fischer-Tropsch process. Mostly capital intensive to date, the industry does employ a noteworthy number of people, particularly at the retail stage (i.e. petrol stations). Future development could create meaningful employment in the value chain. Within this context, understanding what a "just transition" of the liquid fuel industry in South Africa could look like remains to be investigated.

About the facilitator 

Gaylor Montmasson-Clair is a Senior Economist at TIPS. He leads TIPS's work on Sustainable Growth. Gaylor is also a Research Associate at the University of Johannesburg’s Centre for Competition, Regulation and Economic Development (CCRED). Gaylor has been working on green economy issues for more than a decade and has carried out extensive research on the transition to an inclusive green economy from a developing country perspective, with a focus on policy frameworks, industrial development, just transition and resource security.

About the presenters and panellists 

Nokwanda Maseko is a Senior Economist at TIPS. She was previously a Budget Analyst at National Treasury and an Assistant Director at the Economic Development Department (EDD) focused on industrial policy.

Farai Chireshe is a bioenergy analyst at WWF-SA. He is a seasoned chemical engineer and renewable energy expert with a focus on technology advancement, environmental sustainability, and climate change mitigation and adaptation. He is an expert on sustainable aviation fuels (SAF).

Dave Wright is an independent consultant focusing on energy matters with oil and gas as a particular interest, since he retired from Engen Petroleum after over two decades at the company. He is on the Board of South African National Energy Association (SANEA), as a Director. He was SANEA’s Secretary General from 2012 to 2018. He is also an Adjunct Professor at the University of Cape Town.

Shamini Harrington is a seasoned climate change expert who has a Master’s Degree in Environmental Science with a specialisation in climate change management. She began her career as a researcher at the CSIR, before moving into a corporate environment. At Sasol she is the Vice President for Climate Change where she leads a diverse team focusing on reducing emissions, transforming operations and shifting the company’s portfolio. In December 2020 she was appointed as a Presidential Climate Commissioner. For five years she negotiated international climate change policy, as the first business representative on South Africa’s negotiating team at the United Nations Framework Convention on Climate Change. She was previously Co-Chair of the National Business Institute’s Environment Committee and Chair of the South African Petroleum Industry Association’s Climate Change Committee. She is the current BUSA Environment and Just Transition Committees Chair, representing business at NEDLAC. 

Rod Crompton is a Visiting Professor at the Wits Business School at the University of Witwatersrand, where he established the African Energy Leadership Centre. He was a full-time board member at the National Energy Regulator of South Africa (NERSA) for 11 years and was Deputy Director General at the Department of Minerals and Energy where he was responsible for hydrocarbons and energy planning for eight years. He is also a Non-Executive Director at Eskom.

Boitumelo Molete is the Social Development Policy Coordinator, within the Policy Unit of the Congress of South African Trade Unions (COSATU). Prior to that, she was a Research Project Assistant at the National Labour and Economic Development Institute (NALEDI).

For further information contact Rozale@tips.org.za

In the fourth quarter of 2021, South Africa’s merchandise exports continued on their upward trend, recording a 7.6%  year-on-year increase, amounting to R466 billion. However, quarterly growth was marginal, with a 0.8% increase from Q3 2021. Imports also markedly increased by 17.8% year-on-year, amounting to R381 billion in Q4 2021 and, on a quarterly basis, imports  increased by 5.6% from Q3 2021. A higher increase in imports than exports in Q4 2021 resulted in South Africa recording a slightly lower trade surplus of R85.3 billion, down from R102 billion in Q3 2021. In US dollar terms, South Africa’s exports increased by 14.6% year-on-year, amounting to US$30 billion in Q4 2021, while declining by 3.9% from Q3 2021. Imports also increased by 25.5% year-on-year, amounting to US$24.7 billion in Q4 2021 and marginally increased by 0.7% from Q3 2021.

Fin24 - 9 May 2022 by Carol Paton

Read online at Fin24

Or read as a PDF

Business Day - 9 May 2022 by Neva Makgetla (TIPS Senior Economist)

Read online at Business Day

Or read as a PDF