14 June 2012
Four-millionth electrification connection
Brief
The four-millionth household electrification connection will symbolically be switched-on by the Minister of Public Enterprises, Mr Malusi Gigaba, in the Eastern Cape’s Mnquma Municipality at the Cerhu Location on 12 June 2012.
Government and Eskom have managed to play an integral role in ensuring that South African households have access to essential and basic services. The achievements made thus far only provide a greater drive towards realising our universal access targets.
The event is a key milestone in our journey to universal access to electricity and highlights achievements made when measured against conditions prior to 1994. In 1994, access to basic amenities were divided along racial lines where black townships and rural areas were without basic infrastructure such as electricity, sanitation, water, transport and healthcare when compared with well-resourced commercial farming areas and suburbs for the white population.
Black poverty was starkly juxtaposed to the country’s white wealth, which drove income inequality to be among the highest in the world. More than 12 million people did not have access to clean drinking water and 21 million people did not have adequate sanitation and refuse removal. Less than half the rural population had safe and accessible water supply and only one person in seven had access to adequate sanitation. Before 1994, housing was in crisis with a backlog of approximately three million houses.
In 1994, only 36% of South African households had access to electricity, leaving over three million households unelectrified. At the time, the majority of South Africans were forced to use inferior and unhealthy fuels such as coal, while rural women were burdened with collecting wood.
From 1994, the first democratically elected government, through the Reconstruction and Development Programme (RDP), began to rectify the history of inequities and socio-economic distress towards advancing human rights through the provision of basic services. In doing so, the RDP targeted to double the number of households that had access to electricity by providing access to electricity for an additional 2,5 million households by the year 2000.
Electricity stimulates economic activity (thus fostering economic growth). It creates employment opportunities and provides basic energy services for households. Electrification has also provided opportunities to create local companies that can assist in implementing electrification projects, development and skilling up local communities and contributing towards employment creation.
The provision of electricity to all South African households is one of the key steps in redressing the social imbalances the apartheid era brought about. However, government’s intent does not end there. The provision of electricity to all is aimed at improving the quality of life of South Africans, especially the marginalised.
The findings from the General Household Survey (GHS), conducted by Statistics South Africa (StatsSA) in July to September 2011, showed that the percentage of South African households that were connected to the main electricity supply increased from 77% in 2002 to 83% in 2011.
However, challenges remain in ensuring that all households have access to electricity (government’s goal for 100% access). According to the Department of Public Enterprises, about 3,4 million households remain without access to electricity. About 20% of this is in the Eastern Cape. Government has allocated more than R3,1 billion this financial year towards reducing the households who remain unelectrified, of which about R500 million is allocated to Eskom to implement in the Eastern Cape.
The electrification of households was achieved under the Integrated National Electrification Programme (INEP), which aims to achieve 94% universal access to electrification of households by the year 2014. This programme is the backbone of the country’s electricity delivery plan for communities who have previously been underserved in terms of grid and non-grid connections. Since the start of the electrification programme in 1991, a total of 4 050 968 homes have been electrified.
The Mnquma Municipality where the switch-on will take place is located in the south-eastern part of the Eastern Cape and falls under the jurisdiction of the Amathole District Municipality (ADM) which is an amalgamation of the former Butterworth, Ngqamakhwe and Centane areas.
The Godidi Substation Strengthening Project (in Mnquma Municipality) has a value of about R40 million and includes a 20-million volt-amperes (MVA) substation that is meant to support 8 000 new household connections in the greater Centane area. So far, 2 659 connections have been made with a further 3 976 planned for the financial year to bring it up to 6 635 connections by the end of the 2012/13 period. The Ngqamakhwe Strengthening Project (with a cost of about R28 million) also includes a 20-MVA substation that is meant to support 10 604 connections in the greater Ngqamakhwe magisterial area. These connections are planned up to 2015.
The Mnquma Local Municipality has a total population of approximately 297 663 people, 99% of whom are Xhosa-speaking. The remaining 1% includes English, Afrikaans, Zulu and Sesotho speakers. The municipality consists of approximately 75 410 households with 54% of the community being female.
Eskom has in the past two years been involved in strengthening the network in and around Butterworth and also in anticipation of future electrification connections in the area. Substations and networks involved in this include the Butterworth, Ngqamakhwe and Godidi substations.
Key Messages | Supporting Statements |
Our aim is electricity for all. |
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Every electricity connection changes lives.
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We are ahead of the curve, but there’s still work to be done. |
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Achievements of universal access are testament to both Ggovernment’s and Eskom’s partnership and commitment. |
Government sees the State-Owned Enterprise as playing a very important developmental role in our economy, particularly in creating jobs and training skilled people, and also in stimulating local industry. Key success factors achieved by Eskom during this time period include:
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G20 Summit
Brief:
The 2012 The Group of Twenty (G20) Summit will be held in Los Cabos, Baja California Sur, in Mexico, on the 18 and 19 June 2012. The summit is the seventh meeting of the G-20 Heads of Government.
The G20 is the leading forum for international cooperation on global economic and financial matters. It brings together the world’s major advanced and emerging economies.
The main objective of the G20 is to achieve global economic stability and , sustainable growth, through the promotion of global economic coordination between its members. It also promotes financial regulations to reduce risks and prevent future financial crises.
The summit takes place against the backdrop of a euro zone debt crisis that which is threatening the European monetary union. The developments in Europe have already had a negative impact on global financial markets.
It can be anticipated that problems experienced in Europe will dominate discussions at the summit. This could further overshadow the G20’s commitments to promote shared growth and narrow the development gap of developing nations.
Mexico will encourage the active and vigorous participation of non-members, international organisations, think tanks and the private sector in order to make the G20 dialogue as inclusive, open and transparent as possible.
With this goal in mind, Mexico has established the following priorities:
- economic stabilisation and structural reforms as foundations for growth and employment.
- strengthening the financial system and fostering financial inclusion to promote economic growth.
- improving the international financial architecture in an interconnected world.
- enhancing food security and addressing commodity price volatility.
- promoting sustainable development, green growth and the fight against climate change.
Key Messages | Supporting Statements |
The G20 plays an important role in the global economy.
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Many solutions are to be found in other developing countries.
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The G20 must act decisively on Europe’s debt crisis.
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It is important to contain the risks that come with the liberalisation of financial markets.
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The South African economy continues to remain resilient. |
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Equitable trade can make an indispensable contribution to economic growth, reducing poverty and achieving the millennium development goals (MDGs). |
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The G20 must become more responsive to the needs of the developing regions. |
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Travel and tourism are vehicles for job creation. |
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Rio+20 Conference
Brief
The United Nations (UN) Conference on Sustainable Development, also known as the Rio+20 Conference, will take place from 20 to 22 June 2012 in Rio de Janeiro, Brazil.
Rio+20 is a milestone in a series of major UN conferences, in which the 1992 Earth Summit/UNU Conference on Environment and Development was the centrepiece, putting sustainable development as a top priority on the agenda of the UN and the international community.
Rio+20 will mark the following anniversaries:
- 40 years of the Stockholm Convention (addressed environmental issues)
- 25 years of the Bruntland Report (coined the sustainable development concept)
- 20 years of the United Nations Conference on Environment and Development (UNCED) in Rio, which adopted Agenda 21 (comprehensive blueprint of action in every area in which humans directly affect the environment)
- 10 years of the World Summit on Sustainable Development (WSSD), which adopted the Johannesburg Plan of Implementation (JPOI).
At the 2002 WSSD in Johannesburg, the JPOI was agreed upon which affirmed the UN’s commitment to full implementation of Agenda 21.
The next few months will also lead and inform what will happen at the next 2012 UN Climate Change Conference, COP 18/CMP 8 (the 18th Conference of Parties to the UNFCCC, plus the 8th session of the Conference of the Parties serving as the meeting of the Parties to the Kyoto Protocol) to take place in Qatar from 26 November to 7 December 2012.
Rio+20 has a broader task, but in many ways the focus of the green economy is catalysed by some of the discussions on climate change, and the need to rapidly reduce carbon emissions towards a low-carbon model of development.
The objective of Rio+20 is “to secure renewed political commitment for sustainable development, assess the progress to date and the remaining gaps in the implementation of the outcomes of the major summits on sustainable development, and address new and emerging challenges”.
Rio+20 will focus on two themes:
• a green economy in the context of sustainable development and poverty eradication
• the institutional framework for sustainable development.
More than 120 heads of state have registered to attend Rio+20 and some 50 000 people, including business executives, mayors, representatives of non-governmental organisations (NGOs), youth and indigenous people are expected to participate in both official and informal events during the conference.
Member states of the African Union have submitted a common African Position for Rio+20. African countries are primarily responsible for driving their own sustainable development agenda, and have established and strengthened regional, subregional and national organisations to participate in the development process.
African countries acknowledge and emphasise that the critical foundation for sustainable development lies in good governance, strong and responsive institutions, wealth creation, social equity and equality, poverty eradication and environmental sustainability, as well as sustained progress in the achievement of internationally agreed commitments, including the Millennium Development Goals (MDGs).
The Minister of Water and Environmental Affairs, Ms Edna Molewa, will lead the South African delegation to Rio+20. Negotiations will take place in regional blocs. The Minister of Sustainable Development, Forestry Economy and the Environment from the Republic of Congo, Mr Henri Djombo, will be the coordinator of Africa’s common position for Rio+20. South Africa will also align itself with the G77 developing states. The Rio+20 Secretariat is headed by Conference Secretary-General, Sha Zukang.
Key Messages | Supporting Statements |
From Durban to Rio – building on the success of COP17. |
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Rio+20 must accelerate political commitment towards the implementation of sustainable development goals. |
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Sustainable development remains an overarching objective with the “green economy” as one of the critical tools towards achieving it. |
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We are committed to a green economy growth path which will protect the environment and create jobs. |
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Africa will be the worst-affected continent by climate change. |
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Rio+20 must focus on delivering the Means of Implementation. |
Government calls on the developed countries to fulfil previous commitments and pledges to help Africa’s efforts in achieving sustainable development:
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Highlights
Education
Seven million learners to write Annual National Assessments (ANAs)
More than seven million learners in Grades 1 to 6 and Grade 9 are to write this year's ANA. The Department of Basic Education has prioritised the ANAs, which put the literacy and numeracy skills of the county's young learners to the test. According to the department, the purpose of the assessments is to establish an objective national benchmark by which to measure literacy and numeracy achievement levels.
Economic boost
Gauteng to prioritise small business
The MEC of Economic Development of the Gauteng Provincial Government (GPG), Ms Qedani Mahlangu, has confirmed that the GPG has allocated more than R112 million to the province's Small Business Development Agency as part of a new strategy to support more entrants into the economy. With close to 3 000 cooperatives assisted with R14 million, about 96% of the approvals for financial support on the Micro-Finance Fund went to women-owned enterprises. More than R8, 3 million was approved for cooperatives in the field of agriculture and production.
Trade and Industry
Report outlines South Africa’s industrial growth opportunities
The Oxford Business Group (OBG) Report on South Africa reflects that the country offers long-term growth prospects despite the challenges it faces. The Minister of Trade and Industry, Dr Rob Davies, said the central message contained in the report is that South Africa offered significant and serious long-term growth and development potential despite the challenges experienced at present. The report articulates a clear message that South Africa is open for business and that the country has great potential to attract investment.
Skills development for youth
Big businesses collaborate to provide formal employment for disadvantaged youths
On 5 June 2012, a group of 50 previously unemployed youth in Cape Town began a three-month career and personal transformation programme that will result in formal employment in the corporate world. These young people are the first Cape Town group to embark on the work readiness bridging programme of Harambee, a national youth employment accelerator that will tackle our country's employment crisis by securing guaranteed employment in local businesses for over 10 000 people aged 18 to 24 over the next two years.
Science and Technology
Gauteng industries well positioned to participate in SKA project
The MEC of Economic Development of the GPG, MEC Ms Qedani Mahlangu, said that Gauteng was “ideally” placed to capture some of the benefits of the R1,5-billion international Square Kilometre Array (SKA) radio telescope projects, which South Africa and Australia will share. The MEC emphasised that there were also opportunities for provincial businesses to participate in the intense data capture and use that could define the next growth phase for new industries.
Economy
World Competitiveness Report 2012 results
The World Competitiveness Yearbook (WCY) 2012 was published by Switzerland’s Institute of Management Development. South Africa has moved two notches and is now rated 50 among the 59 countries that were surveyed. In 2011, the country was rated 52. The WCY rankings measure how well countries use, among other things, their economic and human resources to increase their prosperity.
Energy
MEC hails renewable energy hub for province
The KwaZulu-Natal Provincial Government, along with Durban Municipality, have teamed up with leading international renewable energy institutions to create an R11,2-billion renewable energy hub project due to be completed by 2020. Private investors have committed R400 million to the project during 2011/12. Some R3,8 billion will be invested in 2012 to 2016, while the second phase was expected to attract R5 billion of investment from 2016 to 2020.
United States (US) oil sanctions against Iran
South Africa has been added to the list of countries exempt from the US oil sanctions against Iran. The USA will from 28 June penalise foreign financial institutions over transactions with Iran’s central bank, which handles sales of the country’s key exports.
Skills development
Varsity’s Software Centre a first in South Africa
The first Software Centre of Excellence opened at the University of Stellenbosch (US) to help tackle the shortage of skilled computer specialists in the country. The US and IBM are collaborating to help meet the shortage of computer science skills in the country. The joint initiative will provide equipment and training resources to postgraduate computer science students, helping them develop much-needed technical skills for highly skilled computer scientists.