A highly engaging and interactive 2023 Joburg Indaba took place 4–5 October 2023, resulting in many constructive conversations, writes Shaun Vorster, business development head of sectors at Mazars in South Africa.
Shaun Vorster, business development head of sectors at Mazars in South Africa. Image supplied by Mazars in South Africa
The consensus of the Indaba was that though there are many challenges facing South African mining, the various stakeholders are without doubt on the right track – talking, collaborating and partnering as a strategic way to achieve sustainability for the sector, the country and the continent.
Indeed, there were no-holds-barred, robust but constructive discussions at the Indaba, interrogating the critical issues affecting all roleplayers.
For instance, the South African mining sector has long been plagued by challenges such as crime and corruption, and energy and transport constraints. Recently three government-business collaborative workstreams were established to address all three, with each reporting positive progress.
Collaborative efforts between the South African government and the mining industry aim to address these crucial challenges and enable sustainable growth in the mining sector. Committees like the Joint Initiative to Fight Crime and Corruption (JICC), the National Logistics Crisis Committee (NLCC) and National Energy Crisis Committee (NECOM), all government-led, are leading initiatives to tackle the logistics, crime, corruption and energy crises.
These recent developments all suggest a promising shift in the government’s approach and its willingness to collaborate with the business sector to address these issues. In addition, while foreign Fixed Direct Investment is always welcome – all the capital required is also available locally.
The JICC comprises senior representatives from law enforcement agencies and businesses with the goal of removing obstacles to inclusive economic growth and job creation. To streamline the partnership between government and business, an independent structure called Business Against Crime South Africa (BACSA) has been established.
We commend the government’s constructive engagement with business and acknowledging the intellectual capacity and leverage that the private sector has in making a difference. For the first time, there is a sense that the government is actively allowing business to contribute to the national interest, and the private sector will reciprocate in the national interest. At the moment, what South Africa needs is not more long-term action plans, but quick wins from tangible actions capable of making a significant impact.
There is far more support and collaboration from entities such as the South African Police Service (SAPS), the NPA and Hawks. The involvement of these entities, along with the presidency’s drive to combat crime and corruption, has created a
sense of unity and purpose between government and business – albeit not as visible as the improvements in energy and transport.
Among the more visible government-led initiatives, the NLCC is focusing on addressing the rail, port and road crises that hamper growth and job creation. Adopting a two-pronged approach, the committee aims to provide urgent interventions while implementing a reform agenda with long-term implications. The immediate focus includes opening rail and port networks. To ensure effective co-ordination and response, a joint strategic operations committee has been established between the NLCC and the private sector.
One of the pertinent panel discussions weighing in on how government and business are collaborating to find solutions to make South Africa more investable. Image supplied by African Mning, incorporating Mining Mirror
Furthermore, NECOM is responsible for overseeing the implementation of the Energy Action Plan, addressing the energy crisis faced by South Africa. In January 2023, NECOM released a six-month progress update, which outlined key interventions. These include fixing Eskom, enabling private investment in generation capacity, and accelerating procurement from renewable energy, gas and battery storage.
Environmental, social and governance (ESG) was a further burning issue at the Indaba and one with enormous applicability for South Africa.
Regulators in EU and North America are looking to introduce stringent new rules on reporting with new standardised international metrics to measure ESG. South African mining companies can no longer afford to pay lip service to sustainability issues, given their international operations in countries where these regulations apply. In future, their reporting will need to provide tangible evidence that their companies have a coherent sustainability strategy which they are actively implementing, with each year’s progress achieved clearly demonstrated. Earlier this year Mazars released a South African version of its international report, ESG: where are you on the journey? This report encourages senior executives to emphasise the business case of ESG as an investment in the future.
The level of collaboration demonstrated at the Indaba gives investors reasons to feel more assured and secure. With ongoing collaboration and tangible actions, the mining sector can continue to attract and retain investors, contributing to the nation’s economic growth and development.