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A collaborative approach to achieve inclusive

growth, inspire confidence and create jobs
6 June 2023
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Pivoting towards practical collaboration between government and business

South Africa is at a crucial turning point with load shedding, the collapse of the freight logistics system
and increasing levels of violent crime impacting negatively on public and market confidence.
Discussions have been ongoing bilaterally since early 2022 to develop ways of working to develop a
“new consensus.”
Business has agreed to mobilise support in areas where there is already agreement and where
practical collaboration is needed to accelerate progress.
This will enable a greater focus on key issues which pose an immediate threat to the economy, while
discussions on a broader compact continue.
The focus is on decisive action and interventions with significant impact, and which add up to a
coherent strategy to place the country on a clear path of recovery.
Rather than new policy commitments, this collaboration will support the implementation of
government’s existing plans – e.g. the Energy Action Plan announced by the President in July 2022.
Strong collaboration with business will help to rebuild our economy, restore confidence and
demonstrate a united front.
 We face multiple crises, which require urgent action to rebuild the economy and
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restore confidence
Priority Work underway Ongoing challenges Support required
• Energy Action Plan announced by the • Stage 6 load shedding costing the
President in July 2022, with five priority economy > R1 billion per day and
End load interventions. causing significant job losses.
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shedding and • National Energy Crisis Committee • Continued volatility in the performance
achieve energy (NECOM) established to coordinate the of Eskom’s existing fleet.
security plan, overseen by the Minister in the • Delays in procurement of new
Presidency for Electricity. generation capacity. Given the scale of
the challenge,
• National Rail Policy adopted by Cabinet additional capacity
• 5% of GDP lost economic growth due to
in April 2022.
Improve the • Freight Logistics Roadmap being
rail underperformance in 2022 and support is
efficiency of the • Losses of ~R50 billion to minerals
2 developed by Operation Vulindlela,
sector alone in 2022.
urgently required to
freight logistics DOT, DPE and National Treasury.
• Continued decline in volumes accelerate
• National Logistics Crisis Committee
system (NLCC) being established to coordinate
transported threatening economic implementation of
growth and Transnet’s sustainability. these plans and
implementation of the roadmap.
drive additional
• Economic Infrastructure Task Teams • Rising crime rates caused in part by interventions
(EITTs) established to address cable deteriorating justice system
Reduce violent theft and other crimes. performance
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crime and • Energy Safety and Security Priority • Commercial crime rose by 19.9% y/y in
protect economic Committee established to investigate Jan-Mar 2023
infrastructure criminal activity in Eskom. • Impact on societal and investor
• Ongoing collaboration between NPA confidence (Business Confidence Index
and Hawks to take forward state score of 38/100)
capture investigations.
 Proposed structure for collaboration
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Energy Transport & Logistics Crime & Corruption

Chair DG in the Presidency
Government

Members DGs of relevant departments/agencies

Secretariat Operation Vulindlela + officials from relevant departments NATJOINTS

National Energy Crisis Committee National Logistics Crisis Joint Initiative to Fight Crime and
Working interface

Business (NECOM) Committee (NLCC) Corruption (JICC)

participates
directly in
relevant work
streams for Workstreams Workstreams Workstreams
identified
priorities
Business

Senior executive James MacKay (Happy Khambule) Ian Bird (Juanita Maree/Khulekani Mathe) Deon Annandale/Nash Lutchman

CEO sponsors Nolitha Fakude Fleetwood Grobler Mxolisi Mgojo Andrew Kirby Neal Froneman Jannie Durand

Platform(s) Business Against Crime

Communications (cross-cutting)
 Proposed structures for coordination and accountability
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Meeting every six weeks to

brief the President and
Ministers on progress and Meeting with President, Ministers and business leaders
escalate key decisions which
cannot be resolved at JSOC

Joint Strategic Operations Committee (JSOC)

Secretariat
DG in the Presidency (chair)
B4SA Steerco:
• DG of Mineral Resources and Energy
Fortnightly meeting to • Martin Kingston
• DG of Public Enterprises
assess progress, determine • Adrian Gore
• DG of Transport
priorities and provide • Busi Mavuso
• DG of State Security
strategic direction at a • Cas Coovadia
• National Commissioner of Police
senior level • Lisa Klein
• GCEs of Eskom and Transnet
CEO sponsors
Operation Vulindlela
Senior executives
NATJOINTS

Communications (cross-cutting)

Working interface for

National Energy Crisis National Logistics Crisis Joint Initiative on Crime and
day-to-day collaboration Committee Committee Corruption
on joint activities –
agreeing priorities and NECOM Business NLCC Business Business
NATJOINTS
driving delivery secretariat platform secretariat platform platform
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Work streams with business
Model: Collaboration on the Energy Action Plan participation to date

NATIONAL ENERGY CRISIS COMMITTEE

Work stream 1: Plant Work stream 2: Legal & Work stream 3: New generation Work stream 4: Procurement & Work stream 5: Demand
performance regulatory capacity financing management

Work stream 6: Safety & security Work stream 7: Data & analytics Work stream 8: Communications Work stream 9: Distribution Work stream 10: Transmission

Secretariat

RMF mobilises funding, procures and Business team interacts directly with
donates technical support to NECOM on an NECOM secretariat to facilitate
arms-length/“over-the-wall” basis participation in relevant work streams

Mobilisation of technical support Coordination/support in kind

Proposed areas of collaboration
National Energy Crisis Committee
(NECOM)
Workstreams
Priority
1 2 3 4
projects
OBJECTIVE: END LOAD SHEDDING
Initial focus areas
1. Deploy intervention teams to improve the
performance of identified power stations
(Matla, Kriel, Majuba, Kendal)
2. Diesel supply chain optimization to
increase the load factor of OCGTs
3. Kusile chimney stack replacement
programme (civils design and project
implementation plan review)
4. Support Eskom national campaign to
reduce demand over winter
5. Launch of the Energy One Stop Shop to
accelerate private sector embedded
generation projects
Jointly agree the key 1-5 interventions that are prioritized based on the strategic filter:
• Business can add value (resources and expertise) to help implement
• It can be done in a short-space of time
• The impact is significant
Note: Focus areas will be revised as 6
circumstances require.
National Logistics Crisis Committee Joint Initiative to Fight Crime and
(NLCC) Corruption (JICC)
Workstreams Workstreams
Priority Priority
5 1 2 3 4 5 1 2 3 4 5
projects projects
OBJECTIVE: IMPROVE THE EFFICIENCY OF THE
OBJECTIVE: REDUCE VIOLENT CRIME AND
FREIGHT LOGISTICS SYSTEM
PROTECT ECONOMIC INFRASTRUCTURE
Initial focus areas
Initial focus areas
1. Deploy intervention teams to improve
1. Build capacity of the NPA, Hawks and
operational performance of rail corridors
Investigating Directorate
2. Increase availability of rolling stock
2. Support integrated and coordinated
3. Modernise and upgrade port equipment
intelligence gathering between government
4. Develop a Network Statement and
and business focusing on priority crimes
standard access agreement through
(illegal mining, cable theft, extortion)
industry-wide process
3. Optimise the 10111 help line
5. Finalise a private sector participation
4. Build a capable forensic service
framework for the rail sector
5. Implement a data-driven approach to
6. Deploy intervention teams to improve road
target crime hotspots
transport operations and border transit,
6. Improve service delivery and functioning of
including security and congestion, on the
police stations
N2, N3 and N4
Communications (cross-cutting)
• Develop a clear narrative to boost public and market
confidence in South Africa’s growth potential
• Guide strategic communications on the joint initiative
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National Energy Crisis Committee (NECOM)

Objective

Reduce the severity and frequency of load shedding and achieve energy security
Priorities

1. Deploy intervention teams to improve the performance of identified power stations (Matla, Kriel, Majuba, Kendal)
2. Diesel supply chain optimization to increase the load factor of OCGTs
3. Kusile chimney stack replacement programme (civils design and project implementation plan review)
4. Support Eskom national campaign to reduce demand over winter
5. Launch of the Energy One Stop Shop to accelerate private sector embedded generation projects

Progress to date Next steps

• RMF has appointed service providers for PMO,
legal, communications, and energy modelling
support to strengthen the NECOM secretariat
• Support teams being mobilised for 4 identified
power stations (Matla, Kriel, Majuba and Kendal)
• Experts deployed to address diesel supply chain
challenges and increase load factor of OCGTs
• Support to be provided to construction of
temporary stack at Kusile Units 1-3
• Finalise terms of reference for support to power
stations and mobilise experts
• Fully integrate business teams into relevant work
streams of NECOM
• Launch One Stop Shop to fast-track approvals for
energy projects
• Roll out winter campaign to promote energy
savings and reduce load shedding
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National Logistics Crisis Committee (NLCC)

Objective

Improve the efficiency of the freight logistics system

Priorities
1. Deploy intervention teams to improve operational performance of strategic multimodal and bulk rail corridors
2. Increase availability of rolling stock
3. Modernise and upgrade equipment at key ports
4. Develop a Network Statement and standard access agreement for third party access through industry-wide process
5. Finalise a private sector participation framework for the rail sector
6. Deploy intervention teams to improve road transport operations and land border transit

Progress to date Next steps

• A working group on logistics has been formed that
includes all of Transnet’s major customers from the
mining, agriculture and other sectors as well as
private sector experts.
• A Terms of Reference has been developed and
agreed for the NLCC, with six focus areas.
• Business has agreed to expand the scope of the RMF
to support the NLCC in addition to the support being
provided to NECOM.
• The Freight Logistics Roadmap is on track to be
finalised by the end of July 2023.
• Formally convene the NLCC, including all key role
players
• Finalise the Freight Logistics Roadmap
• Deploy intervention teams to strategic rail
corridors
• Address urgent security issues on the Northern
and Container Corridors as well as the iron ore
line
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Joint Initiative on Crime and Corruption (JICC)

Objective

Reduce violent crime and protect economic infrastructure

Priorities
1. Build capacity of the NPA, Hawks and Investigating Directorate
2. Support integrated and coordinated response to priority crimes (illegal mining, cable theft, extortion)
3. Optimise the 10111 help line
4. Build a capable forensic service
5. Implement a data-driven approach to target crime hotspots
6. Improve service delivery and functioning of police stations

Progress to date Next steps

• Business Against Crime SA has driven multiple
initiatives to address crime and corruption,
including capacity building in the NPA
• Government is working to implement the
response to the State Capture Inquiry
recommendations, including strengthening the ID
and making it permanent
• Initial focus areas for collaboration have been
identified with the SAPS, DPCI and other key
agencies, with further engagement underway
• Establish and launch the Joint Initiative on Crime
and Corruption (JICC)
• Formalise composition of technical team from
government
• Develop appropriate mechanism for support to
be provided
• Confirm initial focus areas and support required
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Looking ahead: Deepening collaboration on employment & skills

The imperative:
• Addressing the structural constraints on growth – energy, logistics, crime and corruption – will be the key driver of
sustainable job creation in the medium term.
• However, South Africa faces an immediate unemployment crisis with significant social and economic consequences.
• With over 11 million unemployed adults, the response needs to provoke a structural break in labour market
outcomes – not small projects, but system-level impact.
• Addressing unemployment and poverty will improve social and political stability, creating a virtuous cycle that
supports growth.

The opportunity:
• Build on existing collaboration between government and business on initiatives with proven track record of success,
including the Presidential Youth Employment Intervention, the Presidential Employment Stimulus, the Youth
Employment Service and the SME Fund
• Expand and scale these initiatives through wider engagement to drive participation and uptake
• Identify regulatory, policy and other measures to support and grow SMMEs and unlock job creation at scale

Next steps:
• Further engagement over the next six weeks to finalise research underway and agree platform for enhanced
cooperation on the jobs agenda
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Next steps

Next six weeks

Mobilise resources, establish timeframes and commence work

• Deliverables, targets and work plans defined for each priority
• Private sector teams mobilized and integrated into work streams
• Coordination structures (including NLCC and JICC) established

Next three months

Build momentum
• All priority projects fully resourced and in implementation
• Initial results visible (leading indicators)
• Three-month targets achieved: e.g. increasing load factor of OCGTs to curb load shedding over winter

Next six months

Demonstrate results
• Six-month targets achieved: e.g. improvement in performance of identified power stations and rail corridors
• Impact communicated to the public
• Additional priorities identified for further collaboration