
Clicking into the future, the rise of e-Government
From paperwork to power clicks, South Africa is also fast-tracking its digital future.
The country now ranks 40th on the United Nations global e-Government Development Index, climbing from 65th just two years ago.
Over 130 government services have already been digitised.
Professor Busani Ngcaweni from the Wits School of Governance says one major driver was the Covid-19 pandemic.
He says when the pandemic forced the country into lockdown, government had to rely on technology to continue delivering services.
That necessity drove rapid digital transformation.
But while progress is being made, the road ahead won't be without potholes.
Ngcaweni and other experts have stressed that digital transformation must strengthen public institutions, not weaken them.
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IOL News
2 hours ago
- IOL News
Africa Energy Forum presents a unique opportunity for African collaboration
In the rural village of Gwanda, Zimbabwe, a mother walks several kilometres each day to find firewood so she can cook for her children. She's never had access to reliable electricity, and her story is not unique. Across Africa, 600 million people still live without energy access – a fact that affects every aspect of their lives. The former United Nations Secretary-General, Ban Ki-moon, summarised Africa's biggest challenge when he said: 'Energy is the golden thread that connects economic growth, increased social equity, and an environment that allows the world to thrive'. Without electricity, communities cannot run clinics, power schools, or create jobs – all of which are fundamental to dignity and development. That is why I attended the Africa Energy Forum in Cape Town recently, a milestone that marked the first time in the event's 27-year history that it was hosted in South Africa. This year's theme, 'Africa United', could not be more fitting. As the global investment meeting for Africa's power, energy, infrastructure and industrial sectors, it was attended by stakeholders who hold the key to accelerating energy access - African presidents, ministers, policymakers, continental executives, the World Bank, African Development Bank and DFIs. With South Africa chairing the G20 this year, the continent must use the momentum of the Africa Energy Forum (AEF) and the G20 Summit to amplify a cohesive African voice in global energy governance. As geopolitical instability rises, with trade wars and fractured alliances, it's more urgent than ever to ask: Can Africa present a united energy agenda? And can it do so on its terms? To seize this opportunity, Africa must first agree on a set of shared energy priorities. These must include scaling up renewable resources like solar, wind and hydro, where the continent has a competitive advantage, while also affirming the sovereign right to include coal, gas and nuclear in the energy mix where needed. This is not a contradiction, but a necessity. Industrialised countries built their economies using all available energy sources. Africa must be afforded the same space to grow. Some of the critical arguments at this year's event will be around balancing the need for energy access and economic development with plotting a sustainable energy future that includes an abundance of Africa's renewable energy resources. Favourable terms for the financing of African energy projects will also be another important topic of debate. Although there are hundreds of initiatives to ensure the achievement of universal energy access on the continent, more than half the continent still lacks access to modern energy, which is why African energy stakeholders believe that amid the drive for reducing carbon emissions, Africa should have a sovereign right to include coal, gas and nuclear as part of its energy mix in line with how developed nations built their economies. What will the US role be in Africa's energy future? The first Power Africa Summit was launched by former US President Barack Obama in June 2013 as a private sector-led initiative with the ambitious goal of doubling electricity access on the continent. Through USAID, 12 US government agencies implemented Power Africa activities by providing financing and technical assistance to support the power sector in 40 African countries. Though different US administrations advised countries on electricity access for years, Power Africa's approach was different in that it took a demand-driven, transactional approach by reviewing actual transactions between private-sector players like investors, entrepreneurs, and manufacturers, and with governments and then identified obstacles that were preventing transactions from moving forward. A large reason for the success of Power Africa in the past was the power of diplomacy to level the playing field for U.S. investments in the energy sector. US President Trump and his administration announced that Power Africa would be dismantled, after more than a decade of successful work on the continent. With almost all of Power Africa's programmes listed for termination, the diminishing role of the US in Africa's energy sector opens opportunities for new alliances and greater intra-African collaboration. Energy financing must be favourable The challenge for Africa is that it needs to industrialise and electrify its economy, but at the same time, it needs the finances to do so in a sustainable way. Africa has also been most severely affected by climate change, and so its infrastructure development needs to be climate-resilient. Most African nations don't need an energy transition, but energy accessibility. Many African countries are grappling with rising inflation, which has also impacted the amount of developmental finance available to African nations. But America may want to maintain its presence and footprint in Africa's energy sector, especially as China seeks to play a leading role in the continent's infrastructure development. Despite the challenging global environment, Africa needs its member states and voices to unite with a collective vision to fund Africa's energy revolution with international financing mechanisms that are just. After all, Africa is responsible for less than 3% of the world's carbon emissions and home to massive, unlocked energy potential, while also being home to 1.2 billion youth aged between 15 to 24 years that account for 16% of the global population (according to the UN). Greg Nott is Director Norton Rose Fulbright South Africa Inc


Mail & Guardian
18 hours ago
- Mail & Guardian
Public private partnerships can help close Africa's infrastructure deficit
There is a consensus that Africa can increase economic growth by making significant investments in connecting infrastructure. (Photo by EMMANUEL CROSET / AFP) There is a consensus that Africa can increase economic growth by making significant investments in connecting infrastructure — the physical and digital networks that connect towns, cities and countries, enabling seamless trade and data exchange. This includes transport, communication, energy, as well as water and sanitation, which are vital for the free flow of people, goods and services. When this infrastructure operates optimally it facilitates increased trade, communication, commerce and social development — critical pillars in the objectives of the African Continental Free Trade Area (AfCFTA). The Economic Commission for Africa (ECA) in 2023 stated that the Africa infrastructure deficit reduced continental economic growth by 2% annually and reduced productivity by 40%, an alarming state of affairs. To address this infrastructure deficit, the Programme for Infrastructure Development in Africa (Pida), an African Union initiative, produced the Pida Priority Action Plan (2021-2030) with the support of the United Nations. The plan has a critical list of 69 infrastructure projects to be developed in Africa for about $160 billion. Intra-Africa trade is extremely low at only 15%, compared with 68% in Europe and 59% in Asia. According to the ECA, once fully implemented, the AfCFTA aims to increase intra-Africa trade to 35% by 2040. The objective is to not only increase trade volumes but also promote economic diversification away from reliance on commodity exports towards manufacturing and value-added industries. The changes in the global trade architecture, tariff regimes, aid cancellation, shifting political alliances and elevated geopolitical tensions indicate an urgent need for Africans to increasingly rely on other Africans. This means addressing the critical infrastructure deficits and unlocking intra-African trade is the most important task facing Africa today. Financing connecting infrastructure The technical White Paper, titled Missing Connection: Unlocking Sustainable Infrastructure Financing in Africa and co-published by the Africa-Europe Foundation and African Union Development Agency – NEPAD for the Finance in Common Summit held in Cape Town, South Africa in February 2025, noted the continent needs about $150 billion annually in infrastructure investment to address the infrastructure deficit. Current investment is about $80 billion annually, of which only 40% of this financing comes from governments. About 35% of the financing is from donors and other international partners. The balance of current financing is from the private sector, whose role has taken on increased significance considering the changing donor patterns and decline in China-led financing in recent times. Creating enabling environments for private sector partners to invest in is critical for closing the significant funding gap. Public private partnerships (PPPs) are increasingly viewed as one infrastructure financing modality that should be increasingly considered by African governments. These partnerships are long-term agreements that involve the granting of specific rights to the private sector to build new infrastructure or undertake substantial renovations of existing infrastructure using private financing and at significant private sector risk. In exchange, the private sector investors are granted long-term concessions over the operations of the assets and are remunerated through user charges, government unitary payments, or a blend of the two where revenue viability gaps exist. The assets at the end of the partnership contract are transferred to the state and the state has the option to operate the assets or tender out to the private sector for another contract term. Over the last few years, there has been a huge interest from African governments in using such partnerships to fund their infrastructure deficits. The continent has a low deal flow compared to other regions of the world, but this is set to change if the right policy interventions are applied. McKinsey and Company, in an article titled Solving Africa's Infrastructure Paradox, noted that although Africa has a large pipeline of projects, for example, the Pida Priority Action Plan initiatives, but on average fewer than 10% of these receive funding. There are international funds with an appetite to invest in Africa. So why are so few deals being funded? Some of the reasons for the slow conclusion of public private partnership deals in Africa are: Feasibility studies or business plans are not undertaken in sufficient detail to assess risks or commercial viability. Inadequate enabling legislation, frameworks, and policies tailored for concluding PPP transactions efficiently. The inability of governments to issue guarantees because of weak balance sheets or challenges with credit ratings. A shortage of skilled public servants who possess the necessary experience to conclude PPP contracts. Low liquidity or highly risk averse domestic lenders, thus making foreign lenders the primary option in some markets. Currency fluctuations and other political risk factors discourage investment because of the elevated perceived risks. The African Legal Support Facility (ALSF) based at the African Development Bank undertook a study in 2024 to assess the progress in the development of public private partnership frameworks and supporting legislation. The study, titled Public Private Partnerships, Legal and Institutional Frameworks in Africa: A Comparative Analysis, produced some key findings: Out of 54 countries in Africa, 42 have enacted PPP legislation. Out of the 42 countries, 24 have civil law, 13 have common law and five have mixed legal systems. Western and Central Africa have the highest percentage of economies that have enacted specific PPP laws, with all countries in the region having laws in place, except for Equatorial Guinea and The Gambia. Eastern and Southern Africa have enacted the least specific PPP laws. Among the 12 countries that make up the Southern Africa region, four remain without a specific PPP law: Botswana, eSwatini, Lesotho and South Africa. Annual trends showed that the highest rate of enacted laws was from 2015 to 2017 with 16 laws passed over the three years. The first African country to enact a specific PPP law was Mauritius in 2004, while the most recent is the Republic of Congo in 2022. The restricted tendering method is the most common form of PPP procurement. South Africa had concluded the most public private partnership deals in Africa as of the end of 2024, raising nearly $5 billion, with Nigeria in second place. South Africa appears to have had better success in PPP deal closure because of an advanced financial market, stable economic policy, favourable legal framework and a perceived transparent procurement process according to various studies. The country uses Treasury Regulation 16 under the Public Finance Management Act for national and provincial governments and the Municipal PPP Regulation 309 under the Municipal Finance Management Act for local government. These regulations have been undergoing amendments, with Regulation 16 amendments complete and coming into effect on 1 July 2025 and Regulation 309 amendments still need finalisation. Donor agencies and development finance institutions have directed funding to support the training and institutional building of PPP capabilities in African governments. The Public Private Infrastructure Advisory Facility, a World Bank programme, has successfully implemented institution-building activities to enhance the capacity of government officials around the world. This technical assistance helps to catalyse the adoption of PPP laws, regulations and guidelines in a streamlined manner to facilitate investments. 2025 and beyond Attracting both domestic and global private sector investors to Africa is a critical part of closing the financing gap and making inroads to closing the infrastructure deficit that prevents Africa from growing at a rate fast enough to create meaningful opportunities, especially for its burgeoning youth population. One of the attractive features of PPPs is the transfer back to the state of the asset at the end of the agreement. We have seen many privatisations of state-owned enterprises, usually accompanied by opposition from political parties or civil society because of the more permanent transfers of state assets to the ownership and control of the private sector. Governments have raised debt capital in private markets or by tapping into pension funds to fund infrastructure — another at times controversial route because of perceived risks to pensioners of the funds being mismanaged. Public private partnerships are, however, not a silver bullet to the funding deficit because of the complex nature of the agreements and the real risk of African governments assuming contingent liability exposures inadvertently because of a shortage of skilled bureaucrats. It is incumbent upon our governments to develop the necessary legal frameworks and innovative de-risking mechanisms that will allow the successful conclusion of private sector investments. Dr Mthandazo Ngwenya is a managing director at Bigen Africa Group and has also served as Africa director of Intellecap Advisory Services.


The Citizen
21 hours ago
- The Citizen
Limpopo mayor threatens construction mafia after stalled projects
Maila said the 'construction mafia' was costing the South African government and construction industry millions of rands through disruptions and extortion. Disruptions and blockages of construction sites by the so-called construction mafias cost the South African economy more than R68 billion before the Covid-19 pandemic. This was revealed by the mayor of the Fetakgomo Tubatse Local Municipality, Eddy Shebeshebe Maila, on Thursday. Maila was speaking during the handover of two service providers for an 8km road construction project in Praktiseer Township, outside the mining-rich town of Burgersfort in Limpopo. The handover was held at a glittering ceremony at Madikiloshe Malepe Sports Ground on Thursday, with more than 1 000 people waiting with anticipation to get jobs at the project. Mafia costing construction industry millions Maila said the 'construction mafia' was costing the South African government and construction industry millions of rands through disruptions and extortion. These criminal syndicates, he said, disrupt projects, demand a percentage of the contract value, and resort to violence and sabotage, hindering the delivery of South African infrastructure. 'But I can assure you, these crooks have no place to operate their business in my municipality. 'I know your modus operandi, and I am watching you like a hawk. Here is not a playground. It is either you cooperate or you go straight behind bars in jail, where you belong,' Maila told the jovial crowd that clapped hands each time he spoke. No mafias, but projects stalled According to the mayor, several projects in Limpopo have stalled due to construction mafias that have halted them, either by fair means or foul. 'We are going to appoint a project steering committee and two community liaison officers for these projects. These are the people that are going to work hand in glove with the ward councillors, the engineers and our contractors' 'Community business forums are welcome, but they must know their boundaries. Their job is not to hijack this project. 'It serves as a mediator between the business community and the municipality. They must, therefore, not interfere with the day-to-day running of this project. 'If they dare try me, they will rue the day we crossed paths,' promised Maila. ALSO READ: Suspected construction mafia extortionists arrested in Joburg CBD Gender disparity Maila also urged councillors and contractors of the project to consider gender parity when employing people. 'In South Africa, women make up just more than 10% of the construction workforce, a statistic that is mirrored in many other countries around the world. 'This disparity is often attributed to a lack of access to education and training opportunities, and a persistent cultural bias that views construction as a 'man's job',' said Maila. Maila said his municipality will monitor the recruitment processes at the project from inception and ensure local women with the necessary skills and documentation are given a stake in sub-contracting. 'They have the skills and the qualifications to show. We must not brush them aside. We must make sure they are employed on a 50/50 basis. 'The writing is on the wall; when we employ women, we feed the nation. That is why women should be taken seriously, and that is why we should allow them to take leadership positions in the workplace and in business,' Maila told the contractors. Residents speak out The Citizen spoke to a few residents at the meeting after Maila's address. 'We are happy that under his tutelage, women are taken seriously. We have been brushed aside before, and are saying enough is enough. 'We also want to play leadership roles in the construction business. Construction work has long been stereotypically associated with a male-dominated space, but now things are changing. 'We are 50/50,' resident Francinah Mohale said. Collen Nkoana said the community was ready to help the mayor fight construction mafias. 'Working hand in glove with the police, we can not go wrong. 'We are going to fight with everything we have until the last drop of our blood to make sure that this project gets up to its practical completion in a 12-month record time.' NOW READ: 'Construction mafia' are genuine guys