December 2023 Issue of The Green Agenda by thegreenagenda

The

GREEN AGENDA December 2023 | March 2024 • 7

Ndivhuho Raphulu CEO at National Cleaner Production Centre of South Africa (NCPC-SA)

Driving South Africa’s green transition with NCPC-SA

CONTENTS December 2023 | March • 2024 • 7

News

Driving a sustainable South Africa, togetherone green building at a time | ABSA

The JDA also plays a key role in greening of Joburg’s public spaces

SAWEA insights into advocacy for Investment in wind power

Investing in 4IR technology makes business sense for IM&E manufacturers

Driving South Africa’s green transition | NCPC-SA

Distributed Solar is poised to lift South Africa from the depths of its energy deficit, if only we root out those hidden costs

DBSA New and Clean Energy Generation Initiatives

Climate-smart African agribusiness could be world leader

IQ Logistica launches Farmers Friend Enterprise

The Earthshot Prize Innovation Summit

EDITOR’S NOTE GREG PENFOLD How Can We Power Up the Green Economy? “Necessity is the mother of invention,” wrote the philosopher Plato in his Republic. Fast forward some 2500 years and the Republic of South Africa is proving the truth of this proposition every day, and nowhere more so than in the energy sector, where lack of capacity is proving to be the proverbial millstone around the neck of the economy. The ominous comments of Volkswagen international brand boss Thomas Schäfer illustrate the point. On a visit to the country, he cited the costs of mitigating load shedding as one of the most important factors that are dragging South Africa down. "Eventually you have to say, why are we building cars in a less competitive factory somewhere far away from the real market where the consumption is? I'm very worried about it ...We're not in the business of charity." Fortunately, while South Africa may suffer from a scarcity of conventional energy capacity, it enjoys an abundance of innovating talent.The National Cleaner Production Centre South Africa (NCPCSA) is a case in point.As featured in this month’s issue, the NCPC-SA project is driving the just transition towards a low-carbon, sustainable economy through the implementation of resource efficiency and cleaner production (RECP) methodologies that can help industry to cut costs through more efficient energy, water, and waste management. Hosted by the CSIR on behalf of the dtic, NCPC-SA is also helping government to revitalise the nation’s eco-industrial parks as a springboard for sustainable economic development through new market access, technology transfer, localization, and skills development. By helping industry and government projects to develop the resilience and potential to compete in the global economy, NCPC-SA is truly manufacturing investment in South Africa. Read our interview with NCPC-SA CEO Ndivhuho Raphulu for more insights into this inspiring project and find out how your organisation can benefit. Of course, even the most energy-efficient company cannot succeed without a stable energy baseline. Similarly, without a sustainable power supply, the just transition is doomed to fail. This is where forward-thinking green energy investors such as the Development Bank of Southern Africa (DBSA) come in. Specifically, the DBSA’s embedded generation investment programme is targeting energy security in order to ensure the energy generation

and supply that critical industries need to stay competitive and grow. Accredited to the Green Climate Fund, the DBSA’s Embedded Generation Investment Programme (EGIP) is supporting independent power producers operating in South Africa with funding to develop and upscale embedded renewable solar and wind energy generation projects. “Embedded” means these projects address industry-specific energy requirements outside of the REIPP. This funding model is envisaged to create an enabling environment for a programme of continued, bankable renewable energy investments. Not only will this create a thriving market for embedded generation, but it will assist government to achieve its climate goals and facilitate transformation through including local communities and SMMEs. This is precisely the kind of initiative that manufacturer’s such as VW need to remain competitive and sustainable. It can only be hoped that the anticipated success of this market-enabling model will also enable the development of the renewable energy and climate finance sector as a whole. Our feature on the DBSA’s EGIP programme takes a deep dive into the nitty-gritty. For the renewable energy tide to succeed, however, it must lift all boats, starting from the grassroots level. To shift the ordinary person’s perception of the just transition from a glorified lifeboat for vested interests to a true economic Ark capable of ferrying all to an economic promised land, advocacy has to start from the ground up. This is the message of our wind energy feature, in which SAWEA frames the heads of argument in a way that leaves no room for doubt that renewable energy is the key to a sustainable, low-carbon future – with wind energy playing an outsized role in the energy mix. This brave new world cannot be realised, however, without community engagement. Increasingly, it’s becoming clear that sustainable development has to include every sphere of activity. As a result, in addition to these three flagship features, the issue you are reading contains insights and intelligence on vital topics ranging from the future of smart farming to renewable energy investment for African countries, green power financing solutions, and more. The Green Agenda team thanks all our clients for their contribution in advocacy for sustainability. Here’s to the continuation of fruitful partnerships in 2024!

THE GREEN AGENDA TEAM EDITORIAL DIRECTOR Royston Lamond DIRECTOR Thandiswa Mbijane COMMISSIONED WRITER Diana Caelers DESIGN AND LAYOUT Richard Smith ONLINE COORDINATOR Shejali Kandhai CONTACT DETAILS Thandiswa Mbijane • thandi@thegreenagenda.co.za WEB www.thegreenagenda.co.za

NEWS

PRODUCTS • HAPPENINGS • EVENTS

COP28: African Development Bank President invites business leaders to invest in Africa to accelerate decarbonization

investors and delegates from financial and development institutions took part in the session on 2 December, in which senior managers from companies such as DP Word explained their commitment to decarbonization, or the huge investments they were making to develop renewable energies in Africa. Outside the COP, the Norwegian company SCATEC has entered into an agreement with Egypt to develop a 1,000 megawatt photovoltaic system, backed by a 200 MWh battery-based energy storage system. The Bank has committed to supporting this project, which in the long term, will offer the lowest price on the continent for solar systems and battery-based energy storage systems.

The President of the African Development Bank, Akinwumi Adesina, called on African business leaders to take advantage of investment opportunities in Africa and decarbonize their industries more quicky during the COP28 global climate conference in Dubai. “Africa is a very reliable destination for investment,” since the continent has a “dominant position in terms of green metals, the critical metals that will support storage and energy systems,” Dr Adesina said on the third day of the conference. The continent also has a green hydrogen market that is set to increase from around USD 5 billion in 2022 to USD 134 billion in 2032, an electric vehicles market estimated to reach USD 7,000 billion by 2050, and manufacturing capacity for non lithium-ion batteries that is three times less expensive in Africa than in the United States, Poland or China. “We have 11 terawatts of solar energy, 350 gigawatts of hydroelectricity, 110 gigawatts of wind energy and 15 gigawatts of geothermal resources. There is absolutely no reason why we cannot have 100 percent electricity in Africa,” he continued, pointing out that this should be “enough to trigger an energy revolution and transform the continent”. “Now, in order to exploit this potential and accelerate its own transition towards net zero emissions,Africa must increase the pace of its investments in green infrastructure,” said Dr Adesina. He was speaking at a session organized by the United Nations Global Compact and the Africa Business Leaders Coalition (ABLC) on “Driving Accountable and Actionable Climate Solutions in Africa”. Several African business leaders, representatives of multinationals,

“We are working hard when it comes to creating a pipeline of bankable investment projects in the context of the Glasgow Finance Alliance for Net Zero (GFANZ), for which I chair the African network. We are working on carbon markets at the national level and are strengthening the standards for the Africa Carbon Markets Initiative (ACMI),” said Mahmoud Mohieldin, the United Nations Special Envoy on Financing the 2030 Agenda and a climate champion for Egypt. Mr Mohieldin called on businesses to make more space for young people in terms of climate investments. “We are seeing competition rather than collaboration, because there are not many opportunities for young people,” he observed. “That said, I think it is very important to invest more in young people. While we know that it sometimes involves more risk from a commercial perspective, we can also mitigate that risk by making things easier for young people, offering them a helping hand, connecting them to mentors and examining how to offer them opportunities in the system and the value chain,” he said. Dr Adesina said Africa can achieve wealth creation through a green transition. “It is essential that Africa should not be rich in natural resources and then suddenly poor in monetary terms,” said MrAdesina. He said investors had every reason to look at opportunities in Africa, since “in agriculture, (the continent) has 65 percent of all uncultivated agricultural land, 600 million people lack access to electricity and there are 900 million people, women (who) do not have access to their own kitchen. It’s a commercial opportunity,” he stated. Business leaders were reminded that Africa is suffering enormous financial losses due to climate change, although it is only responsible for 3 percent of global CO2 emissions. Losses are estimated at between USD 7 and 15 billion per year. “Africa has no choice. It has to adapt to climate change. It’s the only option we have,” he said.

To achieve this, Dr Adesina invited business leaders to “develop the carbon market in Africa at both the national and regional level, while avoiding a ‘carbon grab’ in African countries comparable to a ‘land grab, which is not a good thing.”

secured of 40%, and the off-take book will be developed during construction to arrive at over-subscription by commercial operation date. Debt funding will be introduced at a point where banks become comfortable with the overall risk profile of each project.

IDC AND ACWA SIGN R20 BILLION JOINT DEVELOPMENT AGREEMENT TO BOOST ENERGY SECURITY IN SOUTH AFRICA

The JDA builds on IDC and ACWA Power’s established relationship and partnership in the 100MW Redstone concentrated solar thermal power (CSP) plant. The plant forms part of the country’s Renewable Independent Power Producer Programme (REIPPP). The pioneering initiative is the first project-financed CSP with molten salt central receiver in the world and one of the largest investments in South Africa under the REIPPP. The Chief Operating Officer of IDC, Joanne Bate, mentioned IDC’s preference to collaborate with proficient international companies with a demonstrated commitment and capability to construct and manage energy projects in South Africa. “The IDC is jointly invested with ACWA Power in the Redstone CSP project that showcases their dedication to transformative practices in the energy sector. Additionally, IDC and ACWA Power share a mutual interest in green hydrogen production, aligning seamlessly with renewable energy generation and facilitating the export of green energy,” she said. This framework agreement, similar to pacts that IDC has signed with other funding partners, is focused on boosting energy security.

Johannesburg – In one of the key developments during the 2023 UN Climate Change Conference (COP 28), South African development funder, the Industrial Development Corporation (IDC), and ACWA Power Company signed a Joint Development Agreement Term Sheet (JDATS). The purpose of the agreement is to increase energy security in South Africa in response to the current power crisis being felt throughout the country.

ACWA Power’s CEO, Marco Arcelli, stated, “Our partnership with the IDC as a partner and funder of the Redstone Project has anchored this latest agreement, enabling ACWA to continue to measurably contribute to energy solutions in South Africa. South Africa remains a key market for ACWA and we are committed to reducing the country’s carbon footprint and driving sustainability”.

Under the agreement, shovel-ready solar PV and wind project sites will either be allocated from the ACWA Power pipeline or jointly procured. The projects will have a capacity of up to 1,000 MW for fast-track implementation. Construction of the projects will commence with equity funding only and will require a total investment of around R20 billion. Each project will be implemented through a separate SPV with the parties, as well as other players, as shareholders. Eskom’s struggle to meet the country’s electricity demands and the ongoing liberalisation of the South African energy regulatory environment offer many opportunities for commercial and industrial customers to either self-generate or procure from an independent power producer. The projects expected through the JDATS will supply multiple customers, each with an offtake of no more than 30% of generation capacity as a risk mitigation measure. Construction will commence with a minimum offtake

NEWS

PRODUCTS • HAPPENINGS • EVENTS

UNLOCKING AFRICA’S AGRICULTURAL POTENTIAL

instance, could pool resources together to obtain sufficient scale to satisfy market opportunities, while leveraging the skill of other players in the value chain. Michael Boakye, agricultural sector lead of Ecobank, spoke about the importance of governments creating a more enabling environment through investments in agriculture, infrastructure and the development of policies, to allow the agricultural industry to grow and take advantage of export opportunities.

For years, people have been talking about Africa’s potential to improve global food security. Various role-players at the Africa Agri Investment Indaba, recently held in Cape Town, talked about how this can be achieved. The high risk involved in primary, and especially smallholder production, was identified as one of the biggest barriers to financing, and in effect the development of Africa’s agricultural potential at the Africa Agri Investment Indaba. The situation was worsened by the impact of the COVID-19 pandemic, which had led to enormous fiscal spending globally and subsequent high inflation that governments were trying to curb with interest rate hikes, Chris Hart, executive chairman of Impact Investment Group South Africa, said during his welcoming address. The situation has increased agricultural production costs and made it more difficult for farmers to repay loans, while the interest rate shocks have also led to the fall of various banks, and made it more expensive and difficult to source resources to finance projects. Simultaneously, food security has come under threat, with shortages of certain food types occurring sporadically even in developed countries, while logistics is being challenged by the green movement, which is leading to various other ramifications in the supply chain. Hart said that everybody was talking about the potential of Africa to improve global food security, but the potential had been there for hundreds of years. The trick, rather, was to find a way to unlock the potential of agriculture in South Africa, he said. Various role-players highlighted how they were overcoming banking and microfinancing challenges in the panel discussions that followed. Hans Bogaard, manager of agribusiness at the Dutch entrepreneurial development bank FMO, spoke about the importance of partnerships to strengthen the value chain in Africa. Farmers, for

Cheyo Mwenechanya, head of agriculture banking at ZANACO, spoke about the way in which technology helped to alleviate risks by disseminating information, improving technical assistance, and enabling role-players to make better informed decisions. Technology, for instance, could improve the resilience of smallholder farmers in the face of climate change by alerting farmers of climate-related risks, giving an indication of essential production practices that should be taken during specific times, such as when to plant and when to spray for specific diseases, and by helping to improve water and fertiliser use efficiency. This message was echoed by Wendy Green, country head of Daystar Power Group South Africa, in the panel discussion that followed. She said technology would become an increasing enabler in the fight against climate change and the development of the carbon credit market. She said that many farmers saw “the bigger picture” to shift from subsistence to commercial farming, but struggled to get there because of policy, financial and other challenges that were holding them back. She also emphasised the importance of linking up with largescale commercial farmers to help unlock their full potential and the market: “Farmers need to surround themselves with mentors and have a research mind-set with which they constantly look for solutions or ways to improve.” In terms of electricity supply problems, Green encouraged agricultural role-players to invest in alternative energy sources to reduce their dependence on Eskom, as she foresaw that energy security would remain an issue for a while. Thomas Meyer, senior investment manager industries and services at DEG South Africa, said that agriculture represented 25% of the gross domestic product in Africa, but only 5% of funding, because of the perceived risks and costs, especially when it came to the financing of smaller-sized projects. Hedwig Siewertsen, head of inclusive finance at AGRA, said that the

industry had to move past the green revolution to more sustainable farming through new technologies, more sustainable cropping and farming practices, the production of more nutritional food and less wastage, to create sustainable, climatesmart food systems. By Glenneis Kriel

Zutari to participate in key discussions at COP28 climate change conference in Dubai A new synthesis report on Global Stocktake elements, published by the UN Climate Change, is expected to take centre stage at the 28th United Nations Climate Change Conference COP28 from 30 November to 12 December, predicts Thapelo Letete, Director: Climate Change at Zutari. Letete will represent the leading consulting engineering and infrastructure advisory practice at an important framework session on climate transparency in developing countries on the final day of COP28.

in is the key ingredient to avoid the tipping point. If that political will does not manifest at Dubai, we will probably never see it happen.” While Africa’s contribution to climate change remains very small at under 4% of global emissions, it is a disproportionately vulnerable region globally. Africa continues to face some of the severest effects from climate change in a decade, from wildfires in Algeria to catastrophic flooding in South and West Africa. Part of the Paris Agreement, the global stocktake is a key means to assess the world’s global response to the climate crisis. COP28 must contend with the realisation that climate action measures to date are inadequate to limit global warming to 1.5°C. Letete says that engineers need to look beyond the traditional approach of a 100-year design scenario when it comes to climate resilient and futureproofed infrastructure. “We need to change the paradigm to acknowledge that what might transpire in the future could potentially be worse than anything we’ve experienced in the past.” Looking at current trends in the climate change space, Letete says a major focus on the finance mechanisms included in the Paris Agreement, such as non-market mechanisms and carbon trading, has resulted in a need for such skills and experience on the ground.

“Representation at the conference is important for us to be able to inform our clients about some of the latest developments and trends,” comments Letete. As a leader in the Environment, Sustainability, and Governance (ESG) space, he highlights it is vital for Zutari to be part of the debate and dialogue at COP28.

Letete’s unit is divided into three main teams, namely a climate change mitigation team, a climate change adaptation team and a circular economies team. At present, Zutari is involved with numerous climate change projects, ranging from assessing financed Scope 3 emissions for financial sector clients, to conducting climate change risk assessments and developing net zero carbon strategies for cities and countries.

“It sends an important message to our clients and gives them confidence that we are at the forefront of the latest climate change developments, which are automatically incorporated in our cocreated approach to infrastructure development, engineering design, and community empowerment,” notes Letete.

Transition climate risk assessments include considering the impact of a new European law on Carbon Border Adjustment Mechanism that imposes the first-ever carbon border tax in the world, coming into effect in October 2023. It will be applied gradually over the next three years before being implemented fully.

Since the ratification of the ParisAgreement on Climate Change in 2016, Zutari has provided its specialist advisory services to a range of clients in Africa. Under Letete’s team, it has established strategic partnerships in the region and consolidated its expertise in carbon footprint analysis, climate change mitigation, climate risk and vulnerability assessments as well as adaptation to the impacts of climate change.

In South Africa itself, the National Environmental Management Act (NEMA) provides the overarching framework for managing environmental impacts and activities in the country. The Department of Forestry, Fisheries, and the Environment (DFFE) has published a draft national guideline to consider climate change implications in applications for environmental authorisations, atmospheric emission licenses, and waste management licences.

Commenting on South Africa’s commitment to a Just Energy Transition, Letete points out that load-shedding has effectively placed the country’s emissions goals on the back burner. “It is an unfortunate situation, that the country is faced with urgent energy security issues that are delaying the much needed energy transition towards a lower carbon economy.” Letete adds that the outcome of COP28 is likely to determine the tenor of the climate change debate going forward. “I anticipate stimulating, robust, and important discussions. Global political buy-

COP28 is anticipated to attract more than 70 000 participants, from heads of state to government officials, international industry leaders, private sector representatives, academics, experts, and more. It follows in the footsteps of last year’s event at Sharm elSheikh in Egypt, which set a precedent in establishing a loss and damage fund to aid nations particularly vulnerable to the climate crisis, an agreement on a global energy transition, and implementing Africa’s green infrastructure development. 4

Driving a sustainable South Africa, togetherone green building at a �me

In an era of increasing environmental awareness and climate change concerns, the real estate and construc�on industry finds itself at the forefront of sustainability efforts. Embracing green building prac�ces has become an impera�ve as ci�zens and corporates seek to mi�gate their ecological impact and contribute posi�vely towards achieving a Net Zero tomorrow. In 2015, 158 green building cer�fica�ons accredited by the Green Building Council of South Africa (GBCSA) were issued. As we near the close of 2023, this number has exceeded 1000 cer�fica�ons. The cumula�ve total of green buildings cer�fied by GBCSA, amounts

to approximately 14.3 million square meters, which is equivalent to 2043 rugby fields. The impact of these buildings equals to an annual energy saving of 1430 million kilowa�-hours (equivalent to powering 99,306 households) and water conserva�on of 1325 million litres (comparable to fulfilling the drinking water needs of over 1.8 million people for a year). The growing adop�on of green buildings reflects a significant shi� in the industry’s mindset towards responsible resource consump�on and eco-friendly development. Beyond the environmental benefits, green buildings also offer a�rac�ve financial incen�ves through cost efficiencies which are

THE GREEN AGENDA

inherent in sustainable design and opera�on. Investors who are aligning their por�olios with sustainable ini�a�ves are increasingly drawn to the lower building maintenance costs, reduced electricity and water expenditure, and improved occupancy rates. The drive towards a sustainable South Africa further requires a dedicated focus on increasing the delivery of affordable housing. Whilst the real estate sector is making notable efforts in this space, they are faced with a host of macro and micro economic challenges. Among them are a constrained economy, an ongoing energy crisis, rising costs of construc�on and rising interest rates. Addressing the housing needs in South Africa requires investment, commitment, and a will to succeed. Absa is leading the force for good, by incen�vising industry players who can evidence their posi�ve environmental and social impact with innova�ve and beneficial funding solu�ons. One such solu�on is the recently concluded R4.5 billion loan with the Interna�onal Finance Corpora�on (IFC) aimed at suppor�ng green buildings in the country. Through this loan, the IFC has made a Performance-Based Incen�ve (PBI) available to eligible Absa-financed green building transac�ons. Funded by the Market Accelerator for Green Construc�on (MAGC) Program of the UK government’s Department of Energy Security and Net Zero, the PBI will help catalyse the adop�on of green buildings by providing a rebate payment for eligible developers and homeowners to partly offset the incremental greening and cer�fica�on costs �ed to green building construc�on. The incen�ve is available in South Africa and across all product types (residen�al, retail, office and industrial) subject to certain price thresholds with the majority of

INSIGHT

the overall MAGC PBI being allocated to affordable housing transac�ons with an average selling price point of less than R1.4m and an average rental per month of less than R8,300. “IFC is commi�ed to expanding access to green and sustainable affordable housing in South Africa to address climate change and protect the environment " said Kalina Miller, FIG Manager for South Africa. "Our partnership with ABSA will contribute to greater climate change resilience in the country by suppor�ng climate-smart housing solu�ons, par�cularly, in the affordable housing segment." “Our partnership with the IFC facilitates posi�ve environmental and social impact in South Africa, through the delivery of environmentally responsible proper�es with a specific focus on increasing the delivery of quality well-located green affordable homes.” said Amelia Dieperink, Head of Affordable Housing, Commercial Property Finance (CPF) at Absa. “GBCSA is delighted about the IFC’s loan to Absa that is linked to environmental impacts. It is exactly these types of partnerships and financial decision making that we need to drive change at scale, and really divert our na�onal carbon trajectory” says Lisa Reynolds, CEO of the GBCSA. Addi�onally, these funding solu�ons extend to socially sustainable housing projects that cater to lower income groups. Because affordability is such an important factor for a developing country, these financial tools present a promising approach to tackle the housing challenge and advance sustainable living. As the need for climate change ac�on and the demand for affordable housing intensifies, proac�ve involvement by financial ins�tu�ons and industry collabora�on remains paramount to achieving a more sustainable and inclusive future.

The JDA also plays a key role in greening of Joburg’s public spaces through its public environment upgrades. The agency has also taken the lead in a number of park upgrade and crea�on projects across the city.

A PEDESTRIAN CENTERED, FUNCTIONAL RANDBURD CBD ON THE CARDS The vision for a pedestrian centered, func�onal Randburg CBD is on the cards a�er the Johannesburg Development Agency (JDA) completed site establishment for the upgrading of Bram Fischer and Jan Smuts intersec�on. The mobility spines in the Randburg CBD are Bram Fischer, Republic and Jan Smuts which play a cri�cal role in connec�ng Randburg to several other decentralised nodes. The intersec�on of Bram Fischer Drive and Jan Smuts Avenue is a key touchpoint, connec�ng Hill Street to the core of the Civic Triangle and the planned Selkirk Housing at the southern base. The JDA is the infrastructure arm of the City of Johannesburg and will implement the upgrades of Bram

Fischer and Jan Smuts intersec�on as part of the Urban Development Framework (UDF) for the Randburg CBD. The UDF aims to provide a medium to long-term strategic direc�on to ensure integrated and sustainable development, protect and enhance land value, encourage densifica�on, diversifica�on, and intensifica�on, preserve the natural environment and promote pedestrian and NMT ac�vi�es while reducing reliance on cars. The upgrading of Bram Fischer and Jan Smuts intersec�on will enhance pedestrian and vehicle movement, improve the quality of the public environment, and promote the development of a compact, pedestrian-friendly environment.

The upgrades will include a raised pedestrian crossing from the market to Hill Street Mall, introducing traffic calming measures such as paved intersec�ons and highligh�ng pedestrian crossing points. The upgrades will also incorporate street furniture elements such as feature ligh�ng, bins, benches, and bollards and introduce so� landscaping. The Randburg CBD clocktower upgrade is on the cards as part of the scope. The current structure will be cladded to give it a modern look. The clocktower will feature coloured ligh�ng with the new enclosed sec�on to draw a�en�on at night. The JDA also plays a key role in greening of Joburg’s public spaces through its public environment upgrades. The agency has also taken the lead in a number of park upgrade and crea�on projects across the city.

The upgrading of Bram Fischer and Jan Smuts intersec�on will also see several trees and greenery implemented as part of the landscaping design. “The cataly�c interven�ons of the Bram Fischer and Jan Smuts intersec�on upgrades will see the CBD turn into a high-quality environment and enhanced pedestrian experience, featuring wider sidewalks, pedestrian ligh�ng, landscape, trees, and natural elements,” said ac�ng CEO Siyabonga Genu. The JDA’s objec�ve is to deliver this public infrastructure project using labour-intensive methods with the aim of job crea�on and income genera�on through an Expanded Public Works Programme (EPWP) approach. Johannesburg Development Agency For more informa�on: • www.jda.org.za

FOREWORD

SAWEA insights into advocacy for Investment in wind power

Niveshen Govender Chief Executive Officer at SAWEA

Through advocacy, the wind energy industry in South Africa has witnessed the investment of over 89.6 billion Rands in wind infrastructure and created over 25 000 employment opportunities (full time jobs per year); proving to be a leading generation technology over the past decade. The South African Wind Energy Association (SAWEA), as the industry representative, has been at the forefront of advocating for the sector to attract potential investors, as well as influencing the regulatory environment in South Africa by contributing to policies that advance a fertile market. Wind energy continues to lead the energy transition to a low-carbon renewable energy future by contributing 46.4TWh being generated, powering 3.6 million average households annually. In the wake of increasing global environmental concerns, and South Africa’s climate change

commitment through our nationally determined contribution, there is now a greater need to diversify our national energy portfolio. With South Africa being viewed as the gateway to Africa, we have seen an increase in alliance partnerships with other African countries for knowledge exchange purposes. SAWEA continues to be a point of reference for the greater African market through our efforts as part of the Global Wind Energy Council (GWEC). As part of our advocacy approach, we are able to attract investment for wind infrastructure by viewing regional developments and opportunities holistically. South Africa hosts a significant proportion of the Continent's installed wind capacity, and even here in this leading market, wind energy has only scratched the surface of its potential as a solution for energy security, and driver of the country's economic growth.

Why Advocacy needs to start at grassroot level Garnering support from affected and interested parties is the first step of advocacy. Community engagement forms an integral part of explaining the benefits of wind energy, understanding concerns, and sharing opportunities to foster a sense of ownership. By involving community members in the decision-making process, organisations or wind farms can build trust, create local employment opportunities, and forge mutually beneficial partnerships. It is critical to ensure that engagement is continuous throughout the bid, construction and/or operational phases of a project. In support of this, SAWEA has developed an Economic Development Working Group to prioritise community beneficiation through structured programmes focused on socio-economic development, community-based infrastructure improvement, skills development, and enterprise development.

the growth and development of wind energy projects. A just energy transition should be exactly that – just; a conscious choice and regular practice of what is right or equitable. Advocacy has the power to ensure that South Africa witnesses a seamless transition to a more renewable integrated grid, as well as pave the way for increased investment and adoption of wind energy projects. Advocacy should be used as a tool to foster collaborations and resolve sector challenges for an affordable and secure energy future, benefiting both the environment and society as a whole.

Through these interventions, we are able to demonstrate our commitment towards a just transition in the literal and figurative sense. This kind of inclusion not only ensures the success of individual projects but also contributes to a broader social acceptance of wind energy investment amplifying advocacy efforts.

Utilising advocacy as a policy change catalyse and investment attraction mechanism

Wesley Ciskei Base Pour

Policy changes driven by advocacy can attract investment, drive innovation, and accelerate the deployment of wind energy infrastructure. Advocacy efforts have the power to shape favourable policies and regulations that facilitate wind energy investment. SAWEA has played an active role in governments efforts to address the country’s energy security concerns by contributing towards key policies/legislation such as the Electricity Regulation Amendment Bill [B23-2023], commenting on the SAREM Revised Draft, Cape Vulture Protocol and Environmental Authorisation Amendments and providing input to NECOM representatives for Interim Grid Capacity Allocation Rules to mention a few. By advocating for supportive legislation, streamlined permit processes, dynamic compliance, and reporting frameworks, as well as incentives, we are able to create an enabling environment for

Endalweni

Investing in 4IR technology makes business sense for IM&E manufacturers By Johan du Toit, Strategic Sales Executive for SYSPRO Africa manufacturing in South Africa is ‘selectively automated and connected’, with no manufacturers reporting to be fully automated or having plans to be fully automated within the next five years. However, there are many benefits to introducing more advanced IM&E technology. Modern manufacturing is increasingly automated and technology-driven, and is progressively relying on the application of advanced technologies and systems. There are many capabilities that digital technologies offer to manufacturers, including the ability to increase quality, flexibility, performance, and overall competitiveness. On the converse, outdated machinery and systems can cause business challenges such as inaccurate supply chain and inventory forecasting, disconnected legacy systems, and premature failure of machinery.

Investing in manufacturing technologies reaps benefits Change is hard. And it’s both difficult and costly when you’re updating or upgrading machinery and processes that have been adequately completing the necessary tasks for a long time. However, being a late adopter doesn’t come with advantages that outweigh the downside of delaying adoption. By automating and speeding up the processes that would otherwise require manual inputs, manufacturers increase productivity and efficiency, which in turn reduces operating costs by saving energy, materials and expenses. The pace of technology change keeps accelerating, not just in the manufacturing sector, but across industry sectors globally. Machines are faster, more powerful and more sophisticated than ever, and this trend shows no signs of easing off. However, for many reasons, South African industrial equipment and machinery (IM&E) manufacturers have been slow to adopt some of the latest technology, relying instead on old models. In doing so, they run the risk of falling behind their regional and global counterparts.

The implementation of innovative technologies can improve the way manufacturing businesses operate. These technologies can increase the efficiency of business systems and processes, streamline relationships with suppliers and customers, and increase the speed, flexibility and efficiency of production processes. Combine this with modern ERP systems that use technology such as AI to analyse the data generated from IM&E IIoT sensors and devices, and the business advantages grow.

In a country where manual labour is affordable and widely available, it may seem logical to stick with machinery and equipment that is driven by manual processes, even though they may already be outdated elsewhere in the world. In fact, a PwC report into South African manufacturers readiness for Industry 4.0 technology found that investment in 4IR is very low, with most businesses engaged in it investing less than R10 million in digital transformation, and 16% of respondents indicating that no investment in 4IR had been made at all. The study also found that

IM&E can offer manufacturers many direct benefits in terms of increased productivity, efficiency, product quality, innovation and competitiveness, and particularly so for manufacturers who are still in the early phases of digital adoption. However, to maximise the benefits of modern IM&E technology, manufacturers need to implement ERP software that can help them manage their operations more effectively to expand knowledge integration, visibility across the entire manufacturing process and supply chain, and boost integrated knowledge through shared platforms.

Data has tremendous value for businesses The phrase ‘data is the new oil’ has become somewhat of a cliché, but that doesn't detract from the validity of the statement. One of the main benefits of embracing IM&E technology is that by using smart sensors, data analytics and machine learning, manufacturers can scrutinise and optimise the operation of their machines, equipment and systems in real-time. Predictive analytics can flag potential issues and the resultant predictive maintenance can avoid costly unscheduled downtime. Data analytics can also help keep manufacturers abreast of changing trends and buying patterns, helping manufacturers to adapt to changing market needs and conditions. This is where having the right ERP system in place is invaluable. By implementing advanced ERP technologies, manufacturers can harness the power of automation to reduce wastage and costs, improving productivity and increasing communication across the business. With improved information sharing also comes greater communication between departments, reducing instances of duplicated work across the business. This means employees have more time to focus on revenue-generating tasks rather than managing daily business activities. Data-led decision-making helps managers monitor performance, identify problems and optimise solutions using real-time data and reporting tools. An ERP system should supply end-to-end supply chain visibility, with data-led insights providing accurate price forecasting, strong financial controls and the ability to fully trace and implement warranties on goods. IM&E manufacturers have their own unique challenges, and this is where using an ERP system that is specifically designed for IM&E manufacturing avoids unnecessary and cumbersome workarounds. IM&E ERP systems address the specific challenges in the sector, such as an integrated Management Execution System to manage scheduling work orders, track time and materials, record output, measure KPIs and more. A fit-for-purpose ERP system will also support inbound and outbound logistics, accurately forecast inventory to avoid stock outages and unplanned downtime, and provide a full tracing and recall feature. A flexible and agile planning and scheduling capability allows for labour and machine efficiency and scheduling accuracy. While it may feel daunting, investing in the latest technology will help South African manufacturers keep up with their customers and support growth, allowing them to seize their opportunities, and in doing so, ultimately boosting profits.

COVER STORY

Ndivhuho Raphulu CEO at NCPC-SA

Leadership in sustainable economic transformation with NCPC-SA The National Cleaner Production Centre South Africa (NCPC-SA) is a national programme of government mandated to promote the implementation of resource efficiency and cleaner production (RECP) methodologies capable of assisting industry to reduce costs through reduced energy, water and materials usage, and more efficient waste management.The programme is hosted by the CSIR on behalf of the Department of Trade, Industry and Competition (the dtic). According to Director Ndivhuho Raphulu, the programme’s current priority is to facilitate the transition of South African industry to a low-carbon, climate-resilient, green, circular, and sustainable economy. “The NCPC-SA’s current strategic projects cut across all priority economic sectors. This follows from the thematic simplification of our activities such as projects on industrial water efficiency, energy efficiency, industry waste management and circular economy, industry green skills development and capacity building, and collaboration with other regional bodies and organizations (African NCPC organizations) supported by UNEP and UNIDO.”

levels.The programme manages projects in collaboration with all provinces, DFFE, and the Department of Water and Sanitation, and provides support to municipalities where industrial parks are located as well as provincial economic development agencies that own industrial parks such as MEGA, GEDA, LEDA, FDC, ECDC, and TiKZN. Raphulu is particularly enthusiastic about NCPC-SA’s industrial park revitalisation project. “I believe that the work we are doing on industrial park revitalization with the dtic and UNIDO is going to be used to benchmark and set standards for eco-industrial parks globally. We have started developing and setting up new measures of how to classify industrial parks. The data we are gathering will be relevant to the DFFE’s environmental policy guide, the dtic’s design, and provincial agencies’ efforts to resource and manage the parks as catalysts for regional economic development. We have also achieved good milestones in collaborating with National Treasury to ensure that our work is relevant to the department’s city support programme and economic revitalization project.”

Funding and support Through the dtic and the Department of Forest, Fisheries and Environment (DFFE), the NCPC-SA enjoys access to global SCP/ RECP (resource efficient and cleaner production) funding and technical support. Integration with the CSIR enables the programme to deliver on funding commitments and provide locally driven technical support to industry and government in line with funders’ expectations. the dtic defines the programme’s mandate and provides 100% funding for the NCPC-SA as part of the dtic’s green industry chief directorate industry support programme. In turn, the NCPC-SA provides support to Government at all

Just transition and industrial transformation The just energy transition is central to the new economic model of sustainability, says Raphulu. “Given the challenges with global warming, market access due to transition economic standards, and technological changes, no industrialist or country ignore the importance of facilitating a just transition to a climate-resilient, low-carbon economy. The transition is at the heart of new market access, technology transfer, localization, and development. Our country is starting to see an increase in the number of projects in this sphere, mostly due to independent power producers (IPPs) and challenges with load shedding.

“For a developing nation like South Africa, a just energy transition is a good vehicle to stimulate and foster investments in new technology and economic activities. This in turn allows us to enter and in most cases lead new economic sectors such as green hydrogen, where there is opportunity for the country to become a global leader.”

How do companies benefit? The NCPC-SA actively helps companies to achieve production efficiency and product competitiveness through free company audits and energy management system implementations. Companies’ products become competitive because they meet international standards or market-specific standards. “We have companies that have gained new markets by implementing RECP recommendations. We also have industrial symbiosis projects that aim to encourage recycling, re-use, and reduction of waste. Industry is beginning to show increased in using materials from other companies’ waste streams as raw materials. This lowers the cost of production and helps the company providing the raw material to achieve producer pays responsibilities.”

Green skills development and training The majority of the constraints towards implementing a sustainable just transition are skills and capacity building, says Raphulu. “For example, we still see many IPPs spend a great deal of money bringing technology and critical skills into the country from foreign institutions. Our role is to facilitate the transfer and management of these skills in the country.”

The NCPC-SA has developed training on two levels: 1) Basic and awareness training level and 2.) Competent and expert level training. Now in virtual format, both levels have been developed according to SAQA and QCTO policy standards to ensure that academic institutions can integrate and use them. “When we started, 100% of our experts and technical teams were made up of professionals from outside the country. Thanks to efforts to develop our training, we now have over 12 000 expert South Africans who are available for UN organizations and our sister NCPCs in Africa, Asia, EU and Latin America.”

NCPC-SA in currently in discussions with higher education institutions to adopt and use the programme’s training to facilitate the extension of skills and capacity-building programmes to the market and broader economy.

Empowering the manufacturing industry to participate in the green economy The National Cleaner Production Centre South Africa supports Industry through: Sector knowledge-sharing Company technical support Green skills development

Our services Green skills development The NCPC-SA offers training courses designed to offer a comprehensive learning pathway for introductory, end-user and expert level courses in RECP and other green fields.

Company technical support • The Industrial Water Efficiency project promotes the transformation of industrial water use practices in South Africa to reduce water consumption and improve industrial water effluent quality.

• Through the Industrial Energy Efficiency, the NCPC-SA has supported industry with the adoption of Energy Management Systems aligned with the ISO 50001 and Energy Systems Optimisation approach. • The Industrial Symbiosis Programme provides opportunities for synergies between companies that HAVE under- or unutilised resources with other companies who WANT them. • The Eco-Industrial Parks Programme promotes the greening of industrial parks by improving resource productivity, economic, environmental, and social performances of businesses.

Find out more about the NCPC-SA: www.ncpc.co.za | ncpc@csir.co.za

THA 27-2023

Twitter: @NCPC_SA | LinkedIn & Facebook: @National Cleaner Production Centre of South Africa

Distributed Solar is poised to lift South Africa from the depths of its energy deficit, if only we root out those hidden costs By: Jay Lurie, Head of Investments, Odyssey Energy Solutions Given the precipitous decline in the cost of solar installation over the past decade, we ponder: why are South Africans regularly experiencing Stage 6 load shedding? Why has solar not yet scaled at the pace needed to keep up with energy demand?

Jay Lurie

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South Africa faces a unique energy challenge to “catch-up” on years of under-investment in centralized power where businesses and households are eager to unshackle themselves from 10-12 hours of daily scheduled blackouts (i.e. load shedding) and sick of the expensive and dirty whirring diesel gensets. While not a panacea for the energy deficit on its own (additional variable power inherently requires proper evacuation and grid build-out), a confluence of six factors contribute to positive momentum in the market for private renewable energy and specifically decentralized, or distributed, solutions: i) Cost parity (or better) of renewables vis-a-vis fossil fueled power, which is manifested as well in increasing grid prices ii) Load shedding effects on the economy: the energy deficit of an estimated 6 GW is causing not only households and businesses to feel a sense of urgency, but also those that have a stake in their prosperity, such as the local banks scrutinizing heightened credit risk due to higher costs and lower revenues for business. The banks have collectively prioritized capital deployment in renewable energy solutions for their clients; iii) Quick to build: compared to coal-fired power stations, utility-scale renewable projects can reduce construction time by several years; and what would be 1-2 years construction time for a utility-scale solar or wind project could be reduced to a matter of weeks or months for smaller-scale distributed solar projects; iv) Deregulation and policy incentives: After years of industry red tape, the government’s sequential market liberalization moves first capped unlicensed private, “self-generation” to 100MW in 2021 and then removed the cap outright in 2022. The market is actively responding to this opportunity with an influx of local and

foreign capital entering the onsite and offsite (i.e. wheeling) sector. Recent expansion of the Section 12-B tax allowance to businesses and households is already generating a new class of finance providers for solar that may emulate the explosion of the “tax equity” investment market in the US over the last decade. v) Decarbonization goals: Major mining and other international companies must meet emissions reductions targets to appease their shareholders and financiers that largely adhere to IFC’s Performance Standards. Such international companies, like Amazon Web Services, are among the first offtakers for wheeling projects that have come online in South Africa; and finally vi) Market innovation: The entry of energy traders creating more volume on the South Africa Power Pool to allow both generators and offtakers grid sale/purchase alternatives, vertically integrated private utilities, multi-offtaker subscriber organizations, and (I would be remiss to leave out) tech providers that facilitate capital flows through data analytics, built for the sector are contributing to an ecosystem that in the words of one local financier is “ snow-balling.” Back to the cost paradigm. While it is true that hard costs have declined enough for solar to be at or below parity in cost to traditional sources of energy in many countries across the world, including in South Africa, small-scale projects have considerably higher costs in proportion to project size. Solar companies active in such projects tend to operate with smaller balance sheets and on tight margins to ensure the end-user benefits from a cheaper and more reliable source of power than the grid offers. As we describe in more detail, the higher unit cost of smaller projects manifests itself in both “hard” and “soft” costs. Hard costs (i.e. the classic balance sheet term of Property, Plant, and Equipment) are higher for smaller companies that have limited leverage with large OEMs and inability to avail of bulk discount pricing. Soft costs include: i) development: planning, design, engineering, and permitting where there are indeed

THE GREEN AGENDA THOUGHT LEADERSHIP

economies of scale for larger projects; ii) financing: technical, legal, and financial due diligence can sometimes be more complicated and costly if combining multiple projects into one transaction, or simply too expensive for a single project if assessing unit costs; and iii) monitoring: it can be time-intensive and cumbersome to monitor a large book of small assets as compared to site management of one large asset. At Odyssey, we’ve built a tech product that aims to bring efficiencies to both the hard and soft costs of distributed renewable energy projects, starting from Planning / Finance Origination to Procurement, to Due Diligence, and finally to Asset Management. Planning / Finance Origination (Soft Costs) Odyssey’s digital tools are a free resource for project developers to design systems, estimate load, aggregate groups of small projects into a single portfolio, and input key variables to build a standardized portfolio financial model that can be easily shared with one or more finance providers that are currently utilizing Odyssey’s platform to expedite their pipeline management. Equipment Procurement (Hard Costs) In addition to the economies of scale that larger projects (and hence larger procurement orders) bring, they also are higher in the priority queue for delivery. Additionally, onerous import requirements make it hard for small companies to order directly from OEMs, so they often have to access equipment via distributors, adding to the cost. Borrowing from the playbook of our recent successful launch of Odyssey Procure in Nigeria, we’ve built out a team and started operations in South Africa where we have attained customs certification and have local stock available. Thanks to Odyssey’s USD balance sheet financing, we also offer some relief to the working capital burden borne by installers by requiring a lower up-front deposit (10-15%) vis-a-vis typical market conditions. Working with local financing partners in each jurisdiction where Odyssey Procure is operational, we are able to offer an end-to-end (order-to-delivery and delivery-to-installation) short-term financing solution, reducing the working capital burden for solar companies and helping them develop projects faster and at scale.

Due Diligence (Soft Costs) Odyssey’s built-for-purpose data room and analytics functions allow financiers to easily review large quantums of data and information in an organized single application. Financiers may review single site data, portfolio metrics vis-a-vis industry benchmarks, track project milestones, and score installers based on past performance. While not always the full due diligence requirement, the Odyssey tools can break down an otherwise insurmountable hurdle of high due diligence budgets relative to project size. Moreover, the ability to synthesize multiple site data into one package reduces that cost % (DD budget / transaction size) by providing a mechanism to combine multiple and sometimes dozens of projects into a single transaction. Asset Management (Soft Costs) As solar companies with multiple distributed projects scale, they need a way to easily visualize their systems and diagnose any issues that stunt maximum productivity. Odyssey’s remote monitoring and control hardware and software immediately notifies the operator of any issues with their system and can even take action automatically, for example, if a battery is getting too hot, the system can reduce the load, bringing the battery back to a safe temperature. Useful as this data is for operators, it is equally useful for financiers eager to review energy production, consumption, payments, and cash flow metrics with data coming straight from the assets.And with such data transparency, financiers are able to reduce costly and timeintensive third-party data verification exercises, ultimately making it easier to execute a financing and monitor it on an ongoing basis. In conclusion By rightsizing disproportionately high soft and hard costs of distributed solar, the sector may yet achieve the growth it needs to overcome South Africa’s energy deficit over the coming decade and in so doing continue to attract outside investment. Odyssey’s tools and services are actively supporting project developers, installers, financiers, and end-customers to overcome barriers and scale project implementation in an effort to improve economic prosperity and livelihoods.

DBSA continues to create new and clean energy generation initiatives in and for local communities

Since the announcement of the Embedded

In line with DBSA’s mandate of developing local

Generation Investment Programme (EGIP) in 2021, the DBSA is pleased to announce the

communities, the key objective of this program is to promote infrastructure development in a Just

approval of approximately ZAR 8 billion worth of development investments in the EGIP.

Transition manner. By encouraging embedded generation projects, we are not only contributing

The Embedded Generation Investment Programme is not just investment in energy

to a more resilient energy infrastructure but also creating opportunities for growth in social and economic development in line with a sustainable

infrastructure; it’s a commitment to a sustainable and energy-efficient future. This initiative aims

path trajectory.

to foster the growth of embedded generation projects, bringing clean, reliable, and decentralized

Some of the key facts of the EGIP at DBSA include:

energy solutions to communities and the South African grid.

BUILDING PARTNERSHIPS We believe that collaboration is key to success. The Embedded Generation Investment Programme is open to partnerships with local and international lenders, innovators, entrepreneurs, and communities passionate about reforms in the energy sector. Together, we can achieve a sustainable future. INVESTING IN INNOVATION The future belongs to those who innovate. Through this program, we are actively seeking and supporting innovative projects that push the boundaries of embedded generation technologies. Ground-breaking ideas could be the next big leap towards a cleaner and more sustainable energy future.

As we move towards a greener tomorrow, the EGIP is significant in harnessing the power of renewable resources. From solar to wind, the Embedded Generation Investment Programme is set to diversify our energy landscape, reducing our carbon footprint and promoting a cleaner environment.

For more information contact the team at the Project Finance Unit: Lungile Tom Acting Head, Project Finance Development Bank of Southern Africa dbsa@dbsa.org www.dbsa.org/sectors/energy

Lungile Tom Acting Head, Project Finance at the DBSA 14

Standard Bank South Africa Leads In Sustainable Finance And Renewable Energy Investment By Pooja Chandak

Standard Bank South Africa is making significant strides in its commitment to sustainable finance and renewable energy initiatives, solidifying its position as one of the country’s largest investors in green energy. This underscores Standard Bank’s dedication to supporting renewable energy efforts. Since launching its climate policy in March 2022, Standard Bank has been ahead of its target to raise between R250 billion to R300 billion for sustainable finance by the end of 2026. In 2022, the bank exceeded its goal, executing 29 sustainable finance transactions worth R55 billion. The bank’s 2023 run rate is also higher compared to the same period last year, indicating progress towards this year’s R50 billion mobilization target. Lungisa Fuzile, Standard Bank South Africa CEO, emphasized that the bank is committed to achieving net-zero carbon emissions from its own operations by 2040 and from its portfolio of financed emissions by 2050, aligning with the Paris Agreement. In the first half of 2023, Standard Bank mobilized R28 billion for sustainable finance, bringing the cumulative amount since FY22 to R83 billion.

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In 2022, Standard Bank financed R5 in renewable energy for every R1 lent to non-renewable power, demonstrating a strong commitment to renewable energy financing. The bank also provided R30 billion in financing for new renewable energy power plants, contributing to its cumulative financing efforts since FY22. Standard Bank has emerged as the leading renewable investor in the country, showcasing its dedication to sustainable development and a just energy transition for the continent. Standard Bank’s Corporate and Investment Banking division is on track to exceed its renewable investment targets. It exceeded its R40 billion 2022 goal by executing 29 sustainable finance transactions worth R55 billion as it ramped up origination efforts to support clients in achieving climate and sustainability goals. The bank also funded and committed under REIPPP and RMIPPP, totalling R52.5 billion or 3GW. On decentralised energy projects, three have reached financial close already, totalling 370MW under construction with a pipeline of 1GW reaching

financial close within 6 months and another 2-3GW pipeline still under discussion. Standard Bank has disbursed funds to individuals in South Africa for installing solar solutions or purchasing ‘green-aligned’ homes. By the end of 2023, it aims to provide up to R1.2 billion in financing for these initiatives. Through its LookSee home efficiency digital platform, Standard Bank has installed over R60 million worth of Home Solar systems for customers, experiencing 350% growth year-on-year. This initiative has resulted in significant savings for South African homeowners, with an estimated annual savings of almost R14 million. To ease the demand on the grid and promote energy efficiency, Standard Bank and LookSee have installed over 3700 solar panels on homes, offsetting over 5,000 tons of CO2. The bank has disbursed over R1.1 billion to support solar solutions providers and facilitate access to renewable energy for its SME clients. As a result of these efforts, clients have installed 656 renewable energy systems generating 192 MW of power from green sources. Standard Bank is also the first bank to participate in the Energy Bounce-Back Loan Guarantee Scheme, offering affordable solar loans to both personal and business clients. Simone Cooper, Standard Bank Head of Business and Commercial Banking SA, noted the growing appetite for solar energy alternative solutions, especially among small businesses. Standard Bank South Africa is proud to support its customers in transitioning to sustainable energy solutions, reducing carbon emissions, and promoting a greener future for South Africa.

Climate-smart African agribusiness could be world leader

Africa can be a world leader in food system transformation that also alleviates poverty and protects the environment, but it will take collaborative and co-ordinated work, argue Angela Churie Kallhauge, Exec Vice-President, Environmental Defense Fund, Ishmael Sunga, CEO, Southern African Confederation of Agricultural Unions and Serah Makka, Exec Director, ONE Africa. When a continent with 65% of the world’s arable land struggles to feed its 1.4bn people, we know something is wrong and that the African and global food systems need a rethink. The pressing need to fashion a more productive, transparent, equitable food system – and reduce poverty and the far-reaching effects of climate change – requires us to urgently forge alliances among diverse stakeholders and sectors. In this case, our collective efforts, spanning agriculture, poverty alleviation and the environment, form a

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powerful force to drive lasting change and support thriving communities. Together, we are dedicated to strengthening the continent’s food producers to cultivate a more resilient and sustainable food system. Africa can lead a global movement toward food system transformation – but challenges like extreme climate impacts, limited access to resources, and power imbalances thwart its effort. The role of agriculture in poverty alleviation is indisputable – it impacts employment, GDP, food security and countless livelihoods. To harness this potential, we need a holistic food systems approach that transforms lives while confronting the climate crisis. With global support, Africa can build a food system that enhances food security, prosperity, and ecological equilibrium. A significant asset on this journey is Africa’s youth,

comprising nearly 60% of the continent’s population. By empowering young farmers through training, entrepreneurship, and technology, Africa can tap into their potential for innovative, climate-sensitive agriculture. These young leaders are already making strides in sustainable agriculture, but they require support to flourish. With secure land rights, financial backing, and proper training, Africa can unleash the full potential of its agripreneurs, securing a sustainable agricultural future. Urbanisation, often seen as a challenge, can be turned into an opportunity. As cities grow, so does the demand for locally produced food. Connecting farmers and agribusinesses to urban markets can create thriving agricultural value chains benefiting both producers and consumers. Research-driven practices Investing in agricultural research and technology is paramount. Innovation, digital solutions, and research-driven practices can optimise productivity, resource efficiency, and market insights. This includes precision agriculture, improved seeds, water management, pest control, climate-smart strategies, and supportive policies. Research, adapted to local contexts, plays a pivotal role in refining and disseminating these strategies, enhancing productivity, sustainability and resilience. Furthermore, climate-resilient agricultural practices are essential. Blending indigenous knowledge with modern technologies can optimise productivity while reducing the environmental footprint. Africa’s journey toward agricultural leadership requires support from

the global community. International organisations can provide funding, expertise, and knowledge exchange to promote sustainable agriculture and climate resilience. Collaboration is the cornerstone of success. Through collective action, Africa can tap into its unity and address complex issues more effectively. Organisations like ONE.org, the Environmental Defense Fund (EDF), and the Southern African Confederation of Agricultural Unions (SACAU) actively collaborate to advocate for policy changes, knowledge-sharing, and support for sustainable and resilient food systems. Policy reforms are imperative to create an enabling environment for agricultural development. Governments must incentivise climatesmart practices, support value addition, and promote sustainable investments. The Comprehensive Africa Agriculture Development Programme (CAADP), for example, offers a roadmap for policy reforms, coordination, and transparent resource allocation. Despite challenges, Africa’s agricultural potential is boundless. To overcome obstacles, we must attract financing, harness the innovative spirit of the youth, promote climate-resistant practices, invest in research and technology, and collaborate across sectors. Climate change is a defining factor in Africa’s ability to feed itself and the world. It demands investments in infrastructure, innovation, and a new generation of climate-sensitive farmers and agripreneurs. This journey requires multi-sector partnerships and collaborative efforts, fuelled by various forms of funding, from philanthropy to commercial investments. Africa’s future, in fact the world’s future, marked by sustainability, inclusivity, and prosperity, is within reach, and it beckons us to act now.

Written by New African 28

IQ Logistica launches Farmers Friend Enterprise A farm management solution by IQ Logistica is now available in South Africa for enterprises to manage their agriculture business portfolios from the comfort of a desk

David Jeromin, Director of Business Development at IQ Logistica

IQ Logistica is a South African-founded technology company that is working to create, action, and execute the business of Agriculture in innovative, forward-thinking ways as a drive to support African Agriculture, modernise farming operational practices and create a sustainable, successful environment for the sector to thrive. In 2022, IQ Logistica launched Farmers Friend, a new mobile application for farmers and their critical, dayto-day operations.The app is designed to help farmers manage all aspects of their farming operations from their phone, tablet, or laptop while literally in the field. Farmers can easily upload, access, and view all of their operational data through the app, which allows them to develop better stakeholder relationships, optimise their yields and ultimately minimise costs, and wastage and mitigate risks. As a continuation of their drive for innovation, In November 2023 IQ Logistica announced the launch of their new farm management application tool for

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businesses, Farmers Friend Enterprise. The application aims to offer farming aggregators, financiers, insurers, and product distributors a mirrored experience to Farmers Friend, on an enterprise scale, allowing them to manage their farming operations and portfolios all from one access point. Farmers Friend Enterprise is a transformative solution to bridge the gap between the existing application for farmers on the ground, and their financiers, by integrating individual farm data points into one, centralised space for the Enterprise-user. Here they’ll be able to observe all farming activities, data, and financials to be able to effectively manage their business portfolio, react to risk and maximise opportunities, identified to them live. The application utilises the best-in-practice tech solutions to support a full line-of-sight into all farm activities across all sites, including but not limited to satellite tracking of soil moisture, critical environmental analytics, NDVI, and weather patterns,

all presented visually on individualised farm mapping images with applied hotspots and corroborating data visuals and then rolled-up into one, cohesive overview. Furthermore, the app considers almost all daily farm functionality, inputs, and key cost-reduction needs, allowing businesses to flag issues and respond to them and the people on the ground in real time. “We have seen how Farmers Friend supports the farmer in his day-to-day activities, assisting him or her to input all key metrics to better track the critical details to make a farming operation financially successful,” says David Jeromin, Director of Business Development at IQ Logistica and Farmers Friend. “now, we can effectively offer enterprises the same critical information, across multiple farming operations, all in one place for them to manage their financial portfolio and essentially, farm from anywhere.” Additional Features and benefits of Farmers Friend Enterprise include, but are not limited to; ● Key business insights to ensure the human element is managed and course-corrected timeously ● Minimise overall costs by having one point of information consolidation, allowing the reduction of wastage, such as physical calling for marketers who can now react immediately

and make use of algorithmic information to know when to reach out to farmers in the field ● Critical time saving between information sourcing and submissions for financing ● Monitoring that allows for the Farmers Friend algorithms to frame specific comparisons to better predict outcomes, react to seasonal risks, and develop advisement for future seasons Farmer Friend Enterprise is available immediately. For more information on Farmers Friend and Farmers Friend Enterprise, visit www.iqlogistica.com About Farmers Friend: Farmers Friend, created by IQ Logistica, is a cloud-based application that allows its enterprise customers and farmers to connect and transact more efficiently. IQ Logistica brings the ecosystem closer to the farmer and their partners by directly linking them with each other, along with IQ Logistica’s growing suite of products and services including Agnovate Insurance, the Farmer Finance Desk, and Guano Plus.The result is a frictionless environment to monitor, mitigate risk, and create more profitable farmers in a digital environment.

The Earthshot Prize Innovation Summit in partnership with Bloomberg Philanthropies

Marking Climate Week in New York, and with the 78th session of the United Nations General Assembly as its backdrop, Bloomberg Philanthropies and The Earthshot Prize hosted the second annual Earthshot Prize Innovation Summit, aimed to accelerate the investments needed to scale the cutting-edge solutions developed by The Earthshot Prize Winners and Finalists. Founded by HRH Prince William, The Earthshot Prize is a catalytic global environment challenge to unleash urgent optimism & action by discovering, accelerating, awarding, spotlighting & scaling solutions to repair & regenerate the planet. The Innovation Summit revealed this year’s 15 Finalists and introduced their groundbreaking climate and environmental solutions to repair our planet this decade. To help drive meaningful change, the Summit convened the new and previous Earthshot Prize Finalists and Winners with forward-thinking business leaders, philanthropists, and governments already working to regenerate the planet. This summit challenged each of us to do our part in accelerating progress to repair our planet this decade, and to collaborate on commitments and engagements to drive our ambitious global climate agenda.

WITH THE DEVELOPMENT OF A NEW WAY TO BUILD AND RECYCLE VITAL LITHIUM-ION BATTERIES, GRST‘S SOLUTION OFFERS A PATHWAY TO MAKE THE ELECTRIC CARS OF THE FUTURE EVEN CLEANER. The electric vehicle market is growing fast and is projected to soar as governments and consumers move away from vehicles that run on planet-warming fossil fuels. The International Energy Agency predicts there will be at least 125 million electric vehicles worldwide by 2030. Mass adoption will be essential if the world is to cut pollution in cities and meet its climate targets. Unsurprisingly, demand for batteries is expected to increase 30% each year until 2030. A greater need for batteries to power more of these vehicles means increased demand for metals like lithium, a finite resource whose extraction has raised ecological and human rights issues. The lithium mining required to meet the demand takes a heavy toll. Trees are often cut down to make room for mines, while chemicals used in the process can poison waterways. In some countries, worker protections for miners are limited, raising human rights concerns. Meanwhile, millions of tonnes of batteries are expected to be decommissioned over the coming decades, creating hazardous waste. Enter GRST, a cleaner, safer and cheaper way to make and recycle lithium-ion batteries.

S4S TECHNOLOGIES’ SOLAR-POWERED DRYERS AND PROCESSING EQUIPMENT COMBATS FOOD WASTE, ENABLING SMALL-HOLD FARMERS TO PRESERVE CROPS AND TURN PRODUCE THAT MIGHT OTHERWISE GO TO WASTE INTO VALUABLE PRODUCTS. Much of India’s rural population relies on smallholder farming for their income and livelihoods. But every year about 30% of agricultural produce is wasted before it leaves the farms. This is because bumper crops and price fluctuations often force farmers to leave unsellable crops rotting in the fields. These wasted crops squander the precious energy and water used to grow them, demand additional resources for their disposal and cause income losses for small farmers, which can deepen rural poverty and exacerbate inequality.

GLOBAL NON-PROFIT ORGANISATION WILDAID SCALES MARINE ENFORCEMENT TO END ILLEGAL FISHING AND STRENGTHEN OCEAN CONSERVATION. Meeting the global ‘30 by 30’ target of safeguarding 30% of oceans by 2030 is crucial to protecting our environment and will not occur without effective enforcement of Marine Protected Areas (MPAs). However, nearly 60% of these MPAs have been unable to fully protect the ecosystems under their control due to enforcement challenges. WildAid is leading a bold initiative to ensure these zones and the sustainable fisheries within them deliver on their conservation promise. Oceans cover more than 70% of the planet and are home to an enormous range of biodiversity. They also support many millions of people who rely upon fishing for their livelihoods. However, unsustainable overfishing threatens both ocean life and the people who rely on it, and $23 billion is lost annually to illegal, unreported and unregulated fishing. Due to a dramatic increase in unsustainable fishing over the past half century, the UN estimates one-third of the world’s fisheries have been pushed beyond their biological limits. Faced with disaster, governments have taken steps to protect marine ecosystems by promoting sustainable fishing and designating 15,000 special zones — MPAs — where human activity is strictly regulated. If these regulations are followed, scientists predict critical ocean life within the MPAs would be restored.And while these MPAs cover only 8 percent of oceans, they mark an important start. Without enforcement of these protected areas, however, many countries lack the resources required to achieve real conservation impact.

BOOMITRA ARE REMOVING EMISSIONS AND BOOSTING FARMER PROFITS BY INCENTIVISING SOIL RESTORATION AND THE ADOPTION OF REGENERATIVE AGRICULTURE THROUGH A VERIFIED CARBON-CREDIT MARKETPLACE. We rely on farmers and farmland to grow the crops we need to live. But a short- term mindset, land mismanagement and the compounding impacts of climate change have degraded the Earth’s soil. Since 1750, burning fossil fuels has increased planet-warming CO2 in our atmosphere by 50%. At the same time, irresponsible farming practices and feeding a growing population have degraded our land and impacted its ability to store carbon, meaning there’s yet more carbon in the air. As more carbon enters the atmosphere, warming and aridification grow more vicious. The result: land unable to feed the world’s population, which continues to grow. In 2017,Aadith Moorthy from Karnataka was passing through an Indian village when he came across a funeral procession mourning the death of a farmer who, left destitute after a crop failure, had taken his own life.This emotional moment sparked questions in Aadith’s mind. Could modern technology restore these lands and, in turn, improve the lives of its farmers? Moorthy subsequently founded Boomitra to provide hope for struggling farmers the world over.

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