Western Cape Finance and Economic Opportunities on tourism post pandemic

Hotel occupancy surpasses pre-pandemic levels in December 2022

Data from the South African Hotel Review, complied by STR(link is external), which gathers data directly from hotels across South Africa, has confirmed that hotel occupancy for the Western Cape stood at 72% in December 2022, representing a full recovery rate of 106% when compared to December 2019 (68.1%).

The report further states that in December 2022:

The Average Daily Rate (ADR) for hotels in the Western Cape grew to R2 302.37, exceeding December 2019 levels, recovering to 114%;

Revenue Per Available Room (RevPAR) for hotels in the Western Cape reached R1 657.17, recovering by 121% against December 2019; and

With respect to year-on-year growth, RevPAR in the Western Cape increased by a remarkable 74%compared to December 2021.

“As more and more data and insights on the performance over our summer season emerge, the more excited I get that our expectations for a bumper season may be confirmed and, in some cases, exceeded.” Said Minister for Finance and Economic Opportunities, Mireille Wenger.

Wrenelle Stander, Wesgro CEO, said: “I am pleased that the latest hotel data indicates that Western Cape tourism growth has surpassed pre-pandemic levels. The positive hotel occupancy figures follow the data we’re seeing emerge from Airports Company South Africa (ACSA), which shows that Cape Town International Airport’s domestic terminal recorded a year-high of 570 000 two-way passengers for December. International passenger performance hit 96% last month - compared to December 2019 - with 270 000 two-way passengers passing through the terminal. These positive figures indicate that the province is on a growth trajectory and Wesgro is confident that this will continue upwards into the remainder of the year.”

Minister Wenger continued: “I am keenly watching out for further confirmation of a bumper summer tourism season, including forward booking numbers as we hope to attract even more domestic and international visitors to our destination so we can move from recovery to impressive growth in tourism.”

“More visitors mean more jobs and so we will continue to work hard to ensure that Cape Town and the Western Cape’s tourism economy continues to grow in the months ahead.” Concluded Minister Wenger.

Source: Government of South Africa

Pandor thanks EU for supporting SA’s developmental agenda

South Africa says it appreciates the European Union’s (EU) continued support of the development cooperation aligned to the National Development Plan (NDP) and the backing it received during the COVID-19 pandemic and the creation of the local mRNA vaccine technology transfer hub.

“This support and partnership enhance Africa’s own capacities,” the Department of International Relations and Cooperation, Dr Naledi Pandor, said on Friday.

These were Pandor’s opening remarks during the 15th South Africa-European Union Ministerial Dialogue, currently underway in Pretoria.

Pandor was speaking alongside EU High Representative for Foreign Affairs and Security Policy, Joseph Borrell.

“I hope that during our engagement today we will be able to review all the opportunities for enhancing two-way trade and increasing investment under the existing bilateral and multilateral frameworks,” she said.

“We also greatly appreciate the EU partnership at the regional level and continental level, which through our strategic partnership, can also be enhanced to be more effective.”

She told delegates that the bilateral engagements and events on Thursday, 26 January 2022, were most productive and successful.

These include the ceremonial signing of a number of partnerships, most notably the South Africa-European Union Multi-Annual Indicative Programme; the centrepiece of the strategic relationship between the country and the union, and an integral instrument in the EU’s support for South Africa’s development priorities.

According to the Minister, the delegates also spoke about peace and security issues and developments.

“Our discussions will no doubt contribute to how we seek to address all these pressing challenges through our various levels of engagement including at the United Nations (UN) with our shared commitment to multilateralism, democratic principles and the Rule of Law,” she said, adding that strengthening the UN system is a priority.

“For the first time, the various engagements under the Strategic Partnership are taking place as they were meant to be synchronised.”

She said the parties will soon receive feedback on the South Africa-EU Joint Cooperation Council (JCC), which took place in South Africa on 7 December 2022.

This comes after several decisions were taken to reflect current realities and priorities.

The delegates also discussed the preparations for the 8th South Africa-European Union Summit, which South Africa will host in the first half of 2023.

The summit will touch on political and security cooperation; cooperation in international fora; trade and investment as well as financial flows.

“Regarding the latter issue, South Africa appreciates the technical assistance received from the EU related to the possible greylisting of South Africa by the Financial Action Task Force (FATF).”

This is after President Cyril Ramaphosa signed two Acts in December 2022, which it is hoped will assist the country make progress to avoid such a greylisting, which Pandor believes would have disastrous consequences.

Pandor said she also looks forward to addressing global and local challenges, focusing on the Just Energy Transition, Green Hydrogen, health, education, science, technology and innovation.

“All the agenda items are relevant to the strategic partnership including its newer areas of engagement. EU support in these areas can help move South Africa forward on a path of sustainable development.”

Source: South African Government News Agency

New swine fever outbreak confirmed in Gauteng

The Department of Agriculture, Land Reform and Rural Development has confirmed a new outbreak of African Swine Fever (ASF) on a farm in Gauteng.

The department said the farm has been put under quarantine and the Provincial Veterinary Services instituted forward and back-tracing investigations to identify any properties that could have had direct or indirect contact with the affected farm.

The department said the source of the infection on the farm has not yet been identified, but “it is believed that the infection was already on the farm from mid-December”.

“Farms in Gauteng, North West and Free State have been placed under precautionary quarantine as a result of this. The ASF status of these farms will be confirmed before precautionary quarantine can be lifted,” the department said in a statement on Friday.

Outbreaks of swine fever started in the previously ASF free areas of South Africa in 2019 and these outbreaks eventually affected many areas of the country.

The department noted that the spread of the disease seems to have slowed down, with less new properties becoming infected since October 2022.

“Control measures are based on quarantine and movement controls, with awareness drives to highlight essential biosecurity measures to enable pig owners to prevent infection of their pigs. This outbreak of ASF on a farm with good biosecurity measures in place again illustrates that the virus is highly contagious,” the department said.

The department has reiterated its call to all pig farmers and pig keepers to only buy pigs directly from known healthy herds, and to prevent contact between their pigs and other pigs or wildlife.

Visitors have also been discouraged from coming into the area where pigs are being kept.

“Anyone who has contact with pigs should wash their hands before and after handling the pigs. Before moving to other farms, one should ensure that they have thoroughly showered and to only use clean clothes, shoes, and equipment,” the department said.

The department has also emphasised that ASF is a controlled disease in terms of the Animal Diseases Act, 1984 (Act 35 of 1984), “which means that all cases or suspicion of ASF must be reported to the State veterinary services”.

“Pig owners are encouraged to be extra vigilant and to report any increased pig deaths or unusual symptoms to the local State veterinary office. All pig owners are also reminded that Section 11 of the Animal Diseases Act makes every animal keeper responsible to prevent the spread of disease from their animals or land to other properties.

“The importance of biosecurity is again emphasised, both to protect your own animals, and to prevent the inadvertent spread to other pigs. Veterinarians are urged to rule out ASF whenever there is increased mortality on a farm,” the department advised.

Source: South African Government News Agency

Minister Blade Nzimande: Launch of 3D Construction Printing for Sustainable Human Settlements Project

Address by the Minister of Higher Education, Science and Innovation, Dr Blade Nzimande, MP, on the occasion of the launch of the 3D Construction Printing for sustainable human settlements project at the university of Johannesburg

Programme director; Dr Mboneni Muofhe, DSI Deputy Director-General

Outgoing University of Johannesburg Vice Chancellor and Principal, Prof. Tshilidzi Marwala;

Incoming Vice-Chancellor, University of Johannesburg: Professor Letlhokwa Mpedi;

CEO of Agrèment South Africa, Mr Richard Somanje;

Chair of the Sustainable Materials and Construction Centre at UJ, Mr Rali Mampeule;

CEO of the National Home Builders Regulatory Council, Mr Songezo Booi;

Project team led by Prof. Jeffery Mahachi and Mr Tshepang Mosiea;

Distinguished guests;

Members of the media;

Ladies and gentlemen:

Good morning

It is an honour and privilege for me to address you on this important occasion of the launch of the 3D Construction Printing for Sustainable Human Settlements Project.

The Construction 3D printing technology is one of the latest demonstrations of our commitment as the Department of Science and Innovation to increasingly employ science, technology and innovation in addressing the day-to-day challenges of our people, including in the provision of quality housing, education, water supply and infrastructure.

Before I venture into the discussion about our 3D Construction Printing initiative, I would like to remind all of us that Infrastructure development is central to our Economic Reconstruction and Recovery Plan (ERRP).

In his 2022 State of the Nation Address, President Ramaphosa said through innovative funding and improved technical capabilities, government prioritised infrastructure projects to support economic growth and better livelihoods, especially in energy, roads and water management.

Through the Infrastructure Fund, government allocated R100 billion from the fiscus over 10 years to fund infrastructure projects.

The Infrastructure Fund is now working with state entities to prepare a pipeline of projects with an investment value of approximately R96 billion in student accommodation, social housing, telecommunications, water and sanitation and transport.

One of the challenges which remains an impediment to government efforts to provide the necessary infrastructure, is the corruption in the construction sector, which cost the state about R10 billion. This include the fight against what we came to know as “the construction mafia”, and those who are disturbing construction sites in demand of a 30%.

For us as government to fight against corruption, we must develop and deploy technologies that target the prevention, detection, investigation, prosecution, and monitoring of corruption and corrupt practices.

Technology has proven to be a tool that can redefine the functions and operations of many systems and processes, and can help us to deliver optimal services to our people.

Challenges in providing safe and quality housing

Ladies and gentlemen

A house fulfils a fundamental need for human habitation. Acquisition of a home (through purchase or construction) is probably one of the most significant expenses for many people in South Africa.

However, the complex South African housing industry has two disparate markets: one market financed by the private sector and the other subsidised by the government.

Despite several measures put in place by the government, the housing backlog in South Africa is still unacceptably high, at more than 2.3 million houses.

This is despite the expected increase in Department of Human Settlements expenditure at an average annual rate of 5.3 per cent, from R29.1 billion in 2020/21 to R34 billion in 2023/24.

In the midst of these challenges, the Department of Human Settlements has been making attempts to streamline the housing delivery processes.

Over time, the Department of Human Settlement introduced new policies, grant frameworks and implementation methodologies so that the housing delivery system could be more responsive to changing demand patterns of the housing market.

In South Africa, there have been challenges of limited uptake of innovative building technologies in house construction.

Research has shown that innovation has changed how homes are made in many countries, their performance, affordability, and functionality.

Although the South African building regulatory environment is not prescriptive in the materials and products used in construction, there has been a slow uptake of innovative building products compared to that in other countries.

There are currently no international or South African National Standards to evaluate the performance of these products.

Using innovative building products in South Africa has significant potential economic ramifications, including eradicating the housing backlog, providing better-quality housing and construction products, and possibly reducing the life cycle cost of the houses.

South Africa has the potential to deliver more than 160 000 and 80 000 homes per year in the government-subsidised and private sectors, respectively, as evidenced in the 2008/09 financial year.

However, since 2009, the delivery of government subsidised houses has been dropping at an alarming rate, indicating serious intervention is required by government and private developers in the home-built environment.

This, therefore, requires a change: an exploration of how innovation, in its broad context, can be utilised to examine the structure, characteristics, and technologies available to accelerate the delivery of houses.

A general reluctance by the construction industry to embrace technological advancement has meant that productivity is low, outdated, and lacking in dynamism and creativity.

There are various contributory factors. For example, there is an insufficient collaboration between technology suppliers and contractors, inadequate knowledge transfer from one project to the next, fear and anxiety by built environment professionals to explore innovative ideas and solutions, and misperceptions of the cost and acceptability of the technologies.

However, the construction industry is well-positioned to refine its business-as-usual productivity and efficiency models and embrace technological advances such as building information modelling, construction 3D printing, and augmented reality.

Composition of the project partners

In response to this challenge, my Department of Science and Innovation, which is the main project sponsor, partnered with the University of Johannesburg to deliver on this multi-disciplinary project.

We appointed the University of Johannesburg (UJ), School of Civil Engineering and The Built Environment, to undertake a research project on 3D construction printing technologies and pilot the technology in the construction of housing.

We also identified various industry stakeholders as key support to the project’s success. These partners includes:

Mampeule Foundation which provided a R5million grant over five years to postgraduate students pursuing studies in innovation in the built environment;

AfriSam, the cement supplier assisted UJ with all cementitious products required for the project and the;

KZN Department of Human Settlements committed to provide serviced sites for the demonstration and building of 10 houses in Ethekwini Municipality.

Ladies and gentlemen

The construction 3D printing pilot project was first implementation on the 1st April 2022 and is expected to conclude on 31 March 2024.

As it was presented during the project technical briefing this morning, the printer acquired for this project was purchased for R6million. This cost includes freight and insurance.

In partnership with the KwaZulu-Natal Department of Human Settlements, Phase 3 of the project will entail the pilot implementation of construction 3D printing of full-scale houses in KwaZulu-Natal with an identified construction SMME to implement the physical construction.

Through this project, the KZN Department of Human Settlements plans to print a social building first – for example, a community centre – and then print houses later.

This will allow the construction team to demonstrate the technical viability of 3D printing on one socially impactful structure before building homes.

The project site for construction is located in uMhlathuze Municipality, Empangeni, KwaZulu-Natal.

In order to make this project a success, we have ensured that we service the site with adequate water, sewer reticulation and electricity connections.

Part of our agreement with the KZN Department of Human Settlements includes –

To conduct detailed social perception studies (pre, during and post-construction);

To detail life-cycle costing of 3D printed houses based on local material and labour costs;

To identify alternative sources of 3D local materials after testing the suitability of the materials;

To provide policy and implementation guidelines; and conduct skills transfer to SMMEs.

Broadly speaking, construction 3D printing will ensure many benefits to the South African housing construction industry, particularly where mass-scale house customisation is required.

Some of the benefits include:

High precision and various complex typologies for the end user. The material mix design is consistent, and the structure’s integrity is ‘lab-based’, giving a structure with the desired structural performance requirements and durability.

Material quantities required for the house construction are controlled and mixed in the right proportions with limited waste materials;

The delivery rate is constant (with the potential for 24-hour production if required), while maintaining the same production quality. A higher construction speed can deliver houses much faster;

Since the houses are printed on site, the logistics and travelling costs are reduced;

As technology in the field advances, construction 3D printing will provide a platform for creativity and entrepreneurship development and has potential to attract youth and women into the industry.

Ladies and gentlemen

We are acutely aware of the other critical issues that need to be addressed in order to create an enabling regulatory and technological environment for the rollout of this housing construction technology.

Some of these issues that are still under research, includes:

Education of professionals, mainly architects and engineers to promote and adopt construction 3D printing technologies. Such education needs to start at tertiary institutions and through continuous professional development;

High capital outlay in order to acquire construction 3D printers;

Manufacturing of construction 3D printers that can be used in more rugged geographic topographies, particularly in rural areas;

Considering of perceptions of beneficiaries, owners, and government on the performance of houses built through innovative building technologies in general and construction 3D printing in particular.

Despite all these critical issues that are yet to be addressed, we believe that the Construction 3D printing will significantly alter and positively disrupt how human settlements will be delivered in South Africa.

Furthermore, it is our firm view that the construction 3D printing can significantly contribute to the current programmes of the Department of Human Settlement, in the implementation of the Comprehensive Housing Plan (CHP) which aims at eradicating informal settlements in South Africa in the shortest possible time.

The key issue is that now the technology is there, but the key challenge we have as a country is jobs, and the construction industry is labour intensive and we need that for job opportunities in South Africa. The speed and scale with which this technology is to be used must strongly factor this reality. However, this technology can be effectively used for swift response in provision of emergency housing in case of disasters. We better be ahead with technology so we use it taking into account our own realities.

In conclusion

Let me thank and acknowledge the role of our strategic partners, the University of Johannesburg. Thank you very much to team UJ.

My gratitude also goes to our Mampeule Foundation, AfriSam, the KZN Department of Human Settlements.

I also thank you my colleague minister Kubayi-Ngubane, MEC for Human Settlements in Gauteng, Mr Lebogang Maile and MEC for Human Settlements in KZN, Dr Ntuthuko Mahlaba.

It is our hope that more and more provincial government departments and strategic public and private sector players will subscribe to this technology and support government's efforts to provide quality, safe and affordable housing for all who need it.

I thank you.

Source: Government of South Africa

Employment and Labour on Compensation Fund fatal benefits

Qualifying dependants of an employee who died on duty can claim for the fatal benefits from the Compensation Fund

This was said at a two days’ training scheduled for Organised Labour representatives by the Compensation Fund which is focusing on Compensation for Occupational Injuries and Diseases Act (COIDA) and Occupational Health & Safety (OHS) Act compliance in the work place.

This training started yesterday, 26/01/2023 at the Orion Hotel and Safari in Rustenburg, North West Province and will end today.

Its main objectives are to provide the Organised Labour representatives with the relevant knowledge, information and capabilities to effectively and efficiently support, educate and guide workers with their claims and other COIDA processes as well as to ensure that occupational injuries are curbed at the workplaces.

The training covers among others, Compensation Claim Processes; Government Employees Pension Fund benefits; Compeasy Demonstrations; Introduction to the Occupational Health and Safety Act; Construction, Explosives & Major Hazards Installations regulations and the Explosives regulations.

Presenting at the session, Mr Paul Nyathela, Assistant Director: Compensation Benefits said these benefits may include Funeral costs, Widow’s lump sum, Pension and Payment to the other dependants if there is no spouse and/or children.

“With regard to the funeral costs, the Fund pays for the actual expenses up to a maximum approved in schedule 4 applicable to claims before and to March 2018. The Funeral benefit paid from 1 April 2018 is at R18 251.00; while the Widow’s lump sum is calculated at 2 X (75% x earnings),” said Nyathela.

Nyathela said with regard to Pension, payment is made to the spouse(s) and children at an approved percentage of the Fund which is (40%:60%) and that Children are paid until they reach the age of eighteen years and can be extended on request for those who are still studying.

He further said Payment to other dependants if there is no spouse(s) and/or child Partial Dependency is paid to parents and or siblings at an approved percentages of the Fund. If the employee’s contribution is lesser than the contribution of the other members combined, the Fund pays Partial Dependency. However, if the employee’s contribution exceeds the contribution of the rest of the family members, the Fund pays a Monthly Pension, due to the fact that the deceased employee was the main contributor.

Nyathela also emphasised that the qualifying dependants for these benefits will be those who are included or covered in the qualifying criteria of the Fund and that due diligence will be done to ensure that the right dependents are paid.

The Compensation Fund provides compensation to employees who are injured or contract diseases while on duty. The Fund is governed by the Compensation for Occupation Injuries and Diseases Act of 1993 (amended in 1997) which determines how, and by whom the fund is administered and the conditions for eligibility for compensation.

Source: Government of South Africa

Employment and Labour on transformation in the workplace

South Africa remains the most unequal country in the world – says Employment and Labour Inspector-General, Moiloa

There is very little to show in terms of transformation in the workplace in South Africa even after 24 years the country entered into democracy.

This is according to the Department of Employment and labour Deputy Director-General Inspection and Enforcement Service, Ms Aggy Moiloa.

Ms Moiloa was delivering a keynote address during the Department of Employment and Labour’s Employment Equity Breakfast Session at the Da Vinci Hotel in Sandton, Gauteng today (27 January 2023).

The purpose of the Breakfast Session, themed: “It begins with the will, desire and a decision to commit to transformation”, was meant to debrief and inform various stakeholders such as the employers and employment consultancy on the following:

Overview of Employment Equity and Transformation of Workplaces 2021/22 Financial Year.

Status of Compliance with Employment Equity

Employment Equity Amendment Bill 2018

And included an open discussion in relevant matters with concerned stakeholders in the programme

“Unfortunately 24 years later (since the enactment of the Employment Equity Act in 1998) EEA, when it comes to the area of employment equity, we have got very little to show in terms of transformation. All of us by choice or by default can be an activist for transformation. Our slight posture as a country, it surely really its ugly head even in the instance of pioneering and driving transformation,” said Ms Moiloa.

Ms Moiloa said compliance levels with EEA remains regretfully low and said that the low levels of compliance frustrate the intention of policy interventions.

“So the issue of non-compliance with the Employment Equity cushions and sustains unpalatable tendencies. South Africa remains the most unequal country in the world. Discrimination runs too deep. Transformation leaves a lot to be desired. The level of compliance is even more unacceptable,” Ms Moiloa.

Ms Moiloa said in the 2021 to 2022 financial year, the level of non-compliance in terms of the Employment Equity is at six percent of compliance and 96 percent for non-compliance.

The Breakfast Session was also attended by other speakers such as the Chairperson of the Commission for Employment Equity, Ms Tabea Kabinde, who presented on the 21st Employment Equity Report; Mr Mxolisi Yabo, Deputy Director: Statutory Services presented on the Employment Equity Amendment Bill 2018 and Advocate Fikiswa Bede, Chief Director: Advocacy Stakeholder Relations – who shared the status of compliance with Employment Equity by employers in the country.

Ms Bede told attendees that 860 inspections on Employment Equity have been conducted across the country from April to December 2022. However, only 12 employers were found to be compliant and 848 were found to be non-compliant.

“So, the levels of non-compliance really frustrate the intention of policy intervention which seeks to achieve transformation in the labour market and we have not seen it even if you check the Employment Equity Report,” said Advocate Bede.

Ms Moiloa also said that the Department has also started inspections of the JSE Securities-listed companies in South Africa.

Source: Government of South Africa

Minister Gwede Mantashe releases 2022 Mine Health and Safety Performance Report, 31 Jan

The Minister of Mineral Resources and Energy, Mr. Gwede Mantashe (MP) will on Tuesday, 31 January 2023 release the Mine Health and Safety Performance Report for the 2022 calendar year.

The Report will provide statistics and performance of the mining industry in terms of fatalities, injuries and occupational diseases.

Minister Mantashe will be joined by government officials and representatives of the mining companies and organised labour.

Members of the media are invited to the release of the 2022 Mine Health and Safety Report scheduled to take place as follows:

Date: Tuesday, 31 January 2023

Time: 9h00

Venue: Council for Geoscience, 280 Pretoria Road, Silverton, Pretoria

To RSVP, contact: Mr. Solomon Phetla on Solomon.Phetla@dmre.gov.za(link sends e-mail) / 076 765 3863 Mr. Johannes Mokobane on Johannes.Mokobane@dmre.gov.za(link sends e-mail) / 082 766 3674

Source: Government of South Africa