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IOL News
4 days ago
- Business
- IOL News
The transport sector should chart a clearer map on our voyage to a low-carbon future
In her recent budget speech, Minister of Transport Barbara Creecy provides a breadth of fresh air towards revitalising South Africa's not-so-healthy transport system, says the author. Image: Supplied In her recent budget speech, Minister of Transport Barbara Creecy provides a breadth of fresh air towards revitalising South Africa's not-so-healthy transport system in becoming resilient and efficient, alive to the needs and operating environment of the current and future economy. The Minister's policy speech illuminated a signal of South Africa's intended transport trajectory and further announced the eminent revision of the Green Transport Strategy (GTS). That is a demonstration of a renewed political will towards the transformation of our transportation sector that is geared towards a just, sustainable, and low-carbon mobility - equitably serving people, the planet and the economy. The budget speech's reaffirmation of the Department of Transport's (DOT) draft Just Transition Plan is a promising recognition of the socio-economic and justice complexities inherent in moving toward sustainable mobility. It needs stating that the Presidential Climate Commission (PCC) supported the Department' Just Transition Plan with technical oversight and modelling analysis to align mitigation goals with the country's climate commitments. However, addressing critical gaps around implementation details, climate resilience, stakeholder inclusivity, and strategic zero-emission mobility adoption will decisively shape the sector's transformative potential. To realise the plan's ambitions, the finalisation and diligent implementation of the Transport Sector's Just Transition Plan is essential. The intensifying climate risks calls for urgency towards sustainable mobility. We cannot blink to the urgent transitional and physical climate change risks and the local implications for the transport sector which contributes 12.7% of national greenhouse gas (GHG) emissions, mainly because the sector is deeply integrated in major economic activities. To this end the Budget speech lost an opportunity explicitly articulate the importance of climate resilience, particularly given South Africa's vulnerability to climate-induced events, which more often than not damages road, rail and telecommunications infrastructure – basically the backbone of our transport network and systems. The budgetary allocation of R21.7 billion to enhance airport infrastructure, aimed at accommodating increased passenger numbers and air freight, highlights the interconnected nature of modern infrastructure investments. Such expansions inevitably trigger downstream effects on industries such as steel manufacturing, which carry significant carbon implications. Video Player is loading. 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Next Stay Close ✕ While commitments towards passenger and rail reform, road safety, and significant financial investments underscore the government's resolve, critical questions remain how these initiatives will concretely deliver an inclusive, integrated transport system aligned with low-carbon mobility and the Sustainable Development Goals (SDGs). With South Africa's Climate Change Act now mandating carbon budgets for major emitters (such as steel) from 2026, synchronising transport infrastructure developments within these carbon limits will be critical to sustainable economic growth. Aligning the revised strategy's GHG emission targets closely with South Africa's Nationally Determined Contributions (NDCs) and Just Transition Framework will demonstrate commitment, coherence, and credibility. Integration, Investment and Partnership is needed to drive transformation. Primarily because transport remains a backbone of all economic activity and critical for our climate action ambitions, the Presidential Climate Commission (PCC) has previously highlighted, enhancing intergovernmental collaboration between key departments such as Transport; Forestry; Fishery and Environment (DFFE); National Treasury, and Trade, Industry, and Competition (DTIC) is pivotal to successfully transitioning towards low-carbon mobility. Strategic spatial planning could significantly lower transport emissions and foster greater socio-economic inclusivity. Forward-thinking infrastructure planning that emphasises climate-proofing, inclusive spatial design, and proximity of transport hubs to residential communities will prove cost-effective in the long run and mitigate disruptions from future climate events. By integrating green corridors and promoting pedestrian and cycling networks, South Africa can facilitate a modal shift towards public transport and location of public transport close to people to reduce their commuting costs and time, a much-required relief in this economy and this option has some significant Just Transition outcomes. Clear delineation of public and private sector roles - especially regarding the ownership of strategic transport infrastructure like railways and ports - is essential. Minister Creecy's reaffirmation that these assets will remain publicly owned offers a foundational principle for sustainable and equitable transport governance. All and sundry of research and policy reform recommendations have overemphasised that collaboration between these state departments will enable investments at multiple fronts, from rail expansion, EV charging stations, electric buses, solar power inter-modal facilities, biogas taxis, to mention but a few easy wins which require effective partnerships with the private sector, given the state's fiscal constraints. While this transition represents an economic opportunity, it needs to be done in a manner that makes moves us closer to our own national development ambitions driven by increased manufacturing with incentives and support for our local auto-manufacturing industry and emerging renewable energy sector amongst others. Taking lessons from transformation in sectors like mining, energy and construction sector, the Minster is urged to not lower the gear on inclusivity but ensure procedural justice by engaging stakeholders and communities in policy formulation and implementation to optimise inclusive outcomes arising from a sustainable transport sector in our country. Simphiwe Ngwenya, Senior Manager: Climate Mitigation at the Presidential Climate Commission. Image: Supplied Simphiwe Ngwenya, Senior Manager: Climate Mitigation at the Presidential Climate Commission. *** The views expressed here do not necessarily represent those of Independent Media or IOL. BUSINESS REPORT
IOL News
5 days ago
- Business
- IOL News
Creecy unveils six key targets to enhance South Africa's transport capabilities
Transport Minister Barbara Creecy speaking at the 2025 Southern African Transport Conference (SATC) in Pretoria on Monday. Image: Supplied Banele Ginidza Transport Minister Barbara Creecy has unveiled a bold strategy aimed at improving South Africa's transport sector's freights and goods handling capacity and to transform the passenger, freight, and aviation sectors over the next four years. Speaking at the 2025 Southern African Transport Conference (SATC) in Pretoria on Monday, Creecy said the first target was to increase freight volume on the Transnet network to 250 million tons annually by 2029, a move that is expected to strengthen the backbone of South Africa's logistics framework. Addressing port efficiency, Creecy also said South Africa aimed to achieve an international operational benchmark of 30 gross crane movements per hour when loading and unloading vessels, a standard necessary for remaining competitive in global markets. 'We need to achieve this standard to remain globally competitive,' Creecy noted. Passenger transport also features prominently in Creecy's strategy, with a commitment to ensure that the passenger rail system provides safe, reliable, and affordable transport. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading The goal is to achieve 600 million passenger journeys per annum by 2030, underpinned by an extensive revitalisation of the rail network. By the end of May 2025, the Passenger Rail Agency of South Africa (Prasa) aims to reopen 35 out of 40 passenger corridors, resulting in an expected increase in journeys from 77 million last year to 116 million by 2025/26. The aviation sector is also poised for significant enhancements with a projected increase to 42 million passengers annually moving through the Airports Company South Africa (Acsa) network by the end of Creecy's current political term. To facilitate this growth, Creecy announced that R21.7 billion has been allocated to the Airports Company South Africa (Acsa) for infrastructure development, which includes modernising passenger facilities and constructing a new freight terminal at OR Tambo International Airport. Highlighting the economic role of South African Airways (SAA), Creecy said a recent Oxford Economics Africa study confirmed SAA contributed R9.1bn to the GDP in 2023/24, with projections rising to R32.6bn by 2029/30. Creecy said SAA was set to support 86 700 jobs by the end of this term, up from 25 000 at present. To solidify South Africa's standing in regional and international trade, a target of 1.2 million tons of airfreight per annum through Acsa airports has also been set. This initiative positions the country as a vital player in the logistics landscape. The sixth – and most critical – target is to reduce road fatalities by 45% by 2029, in line with the United Nations (UN) goal of halving road deaths by 2030. Creecy praised the progress made so far, reporting a consistent 9% annual decline in accidents and fatalities, but emphasised the need to intensify efforts to reduce pedestrian deaths, which account for 44% of fatalities. With a keen focus on the rail industry, Creecy reiterated the department's commitment to rejuvenating rail transport as a primary means of moving people and goods. She reaffirmed that rail is poised to be a central pillar of the transport infrastructure, urging the need for increased private sector investment as state resources are limited. 'To guide private sector investment in our five priority rail and port corridors, we have just concluded a Request for Information process,' she said. Creecy also confirmed the establishment of the Private Sector Participation Unit at the Development Bank of Southern Africa (DBSA), which will help direct private investment into rail and port infrastructure. On road infrastructure, Creecy acknowledged public concerns, noting that the SA National Roads Agency (Sanral) has taken over 3 099 kilometres of provincial roads at the request of premiers and has reprioritised funding to ensure these roads are maintained. However, she cautioned that Sanral cannot take on further upgrades without overburdening its budget. To strengthen oversight, Creecy announced that R94 million has been allocated to provide technical support to provincial road departments. She also revealed a new Memorandum of Understanding with the South African Local Government Association (Salga) to monitor spending on the Municipal Infrastructure Grant. On the taxi industry, which transports more than 85% of commuters, Minister Creecy emphasised the need for formalisation and the elimination of criminality. 'We are working with banks and vehicle manufacturers to de-risk financing and develop a Standard Operating Procedure for issuing operating licences,' she said. 'A fully integrated transport system lies at the heart of any nation's development. It is the artery through which progress flows, connecting communities, facilitating trade, and enabling access to opportunities. Our responsibility – as role players in the transport sector – is immense.' BUSINESS REPORT
IOL News
03-07-2025
- Business
- IOL News
Tshwane deputy mayor faces allegations over R21 million unpaid municipal bills
The DA's spokesperson on finance in Tshwane, Jacqui Uys, accuses Deputy Mayor Eugene Modise of protecting a property he leases from power disconnection, despite it owing R21 million in municipal bills. Image: Supplied The DA in Tshwane has accused Deputy Mayor Eugene Modise, also the MMC for Finance, of protecting a former Morula Sun property he leases from the North West Housing Corporation (NWHC) from having its power disconnected despite it owing the metro R21.7 million in unpaid bills. Modise is the face of Tshwane Ya Tima revenue-collection campaign, which aggressively targets customers with outstanding municipal bills, often disconnecting their services. In recent months, the city has collected revenues from defaulting customers and businesses by disconnecting them from the grid. DA Tshwane spokesperson on finance, Jacqui Uys, claimed that Mzansi Resorts, formerly Morula Sun, owes the City of Tshwane R21,7m in outstanding rates, taxes, water, and sanitation charges. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ 'Mzansi Resorts is managed via a lease agreement with the NWHC by Mzansi Exhibitions and Events, a company owned by Tshwane Deputy Executive Mayor Eugene Modise, on the Morula Sun property in Mabopane,' she said. She said that although the municipal account is in the name of the NWHC, the lease agreement with Mzansi Exhibitions and Events specifies that Mzansi and Gold Rush Pty (Ltd), which leases a portion of the property, are liable for the city's bill. Uys said: 'In a recent City of Tshwane Finance oversight meeting, the DA raised concerns on the high outstanding municipal debt of the NWHC. This prompted city officials in the meeting to cite the NWHC's claims that they cannot settle their bills as their lessees do not pay their rent.' The controversy surrounding Modise's company comes after the DA in the North West province last week exposed that Modise owes the NWHC more than R12m in unpaid rent for its property. Modise has outright denied owing the entity, saying he would not allow political gimmicks to damage the relationship between his party and the NWHC. He claimed his administration has revitalised the entity, curbed crime, and halted vandalism. According to him, since the lease agreement, his company has had expensive, crucial renovations and makeovers of the property. Uys said that Modise's unpaid debt to the NWHC is hindering their ability to pay the City of Tshwane, which in turn affects residents, the city's financial recovery, and service delivery. She questioned the disparity in treatment, citing examples of provincial-owned facilities having their electricity cut off for non-payment, while Modise's Mzansi Resorts seems to be exempt. Responding to the allegations, Modise hit out at Uys, saying she is 'struggling with nostalgia'. 'Mzansi does not have an account with the city, and she can take it to court and satisfy her deep hatred for African excellence,' he said. He suggested that Uys needed basic economics training, implying she has lost touch.
The South African
02-07-2025
- Business
- The South African
SAA's wings in full flight - and profitable!
Following several challenging years, State-owned airline, South African Airways (SAA), is now in a position to contribute economic value. This is according to Transport Minister Barbara Creecy, who presented the departmental Budget Vote in Parliament on Wednesday morning. SAA was racked by allegations of fraud and corruption during the State capture years. It was put under business rescue and grounded but has recovered to fly domestic, continental and international flights. 'With unencumbered assets and renewed profitability, SAA is well-positioned to drive economic value through expanded international services, job creation, and increased contributions to tourism and trade,' Creecy said. Furthermore, the airline is now contributing to the country's Gross Domestic Product (GDP). 'According to [an Oxford Economics Africa] study, SAA contributed R9.1 billion to South Africa's GDP in 2023/24, a figure projected to more than triple to R32.6 billion by 2029/2030. Over the same period, the airline's operations are expected to support 86 700 jobs, up from the current 25 000, demonstrating its growing role as a national employer and economic catalyst. 'The airline has concluded three out of four outstanding audits and reported a profit of R252 million for the 2022/23 financial year for the first time since 2012. Now operating independently and no longer reliant on government guarantees, SAA is self-funding its operations and fleet growth, while remaining open to a strategic equity partner as part of its long-term restructuring,' the Minister highlighted. Creecy revealed that the Airports Company South Africa (ACSA) has been allocated some R21.7 billion for infrastructure development. '[This is] in order to meet our target of moving 42 million passengers per year and increasing air freight handling through the ACSA network of airports. This will improve facilities for passenger safety and comfort over the medium-term and build a new freight terminal at OR Tambo International Airport. 'In addition, we are fast tracking projects to ensure reliable availability of jet fuel to all airlines at all our airports, as well as the general upkeep and upgrading of facilities and technologies at each of our airports to improve both security of passengers and cargo, as well as convenience of airport users,' she said. Creecy told Parliament that the state of roads in South Africa remains an important issue that the department is concerned about, with the South African National Roads Agency (SANRAL) taking over some 3 099 kilometers of provincial roads over the past year. 'Over the period of the MTDP [Medium-Term Development Plan] and beyond, SANRAL has reprioritised within the existing maintenance and capital allocated funding so that these roads are serviced through the Route Road Maintenance Programme,' she said. Creecy also revealed that the driver's licence printing machine is now back in operation. 'The old card machine is currently fixed and we are hard at work to clear out the printing backlog of licence cards. To ensure we have a backup solution, we have signed a MOU with the Government Printing Works. We expect that within three months, this backup solution will be able to print driver's licence cards,' she said. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1 Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
IOL News
30-06-2025
- Business
- IOL News
South Africa's markets gain momentum as rand strengthens and trade surges
In early Monday trading, the rand strengthened by 0.5%, recovering to R17.70 against the US dollar, reversing some of the pressure it faced last week. Image: Pixabay South Africa's financial markets began the week on a cheerfully optimistic note, buoyed by a weakening US dollar and a fresh wave of stability within the Government of National Unity (GNU). In early Monday trading, the rand strengthened by 0.5%, recovering to R17.70 against the US dollar, reversing some of the pressure it faced last week. This upward momentum comes as the greenback continues to lose ground, spurred by an easing of tensions in the Middle East, leading investors to take on more risks rather than retreating to safer havens. Economic data from the South African Reserve Bank unveiled promising figures: money supply growth rose to 6.86% in May, up from 6.12% in April, along with a modest increase in credit growth to 4.98% from 4.60%. Such indicators provide essential insights into consumer demand, suggesting strengthened economic activity. Moreover, South Africa's trade performance in May has presented promising figures, with a widening trade surplus of R21.7 billion—up substantially from a revised R13bn in April. This significant increase was driven by a robust export performance, which saw a 6.3% rise, culminating in a six-month high of R176bn. Shipments comprising precious metals, particularly gold and platinum, along with a variety of agricultural products such as citrus fruits, have contributed significantly to this positive trend. On the flip side, imports experienced a more subdued increase of 1.2%, amounting to R154bn. The demand was predominantly for mineral products, including crude oil and base metals. Notably, declines in certain categories, such as vegetable products and machinery, offset some of these gains. Despite the rand's recovery, Investec's chief economist, Annabel Bishop, pointed out that the currency remained under pressure against the euro and the pound. Currently, the rand trades at R20.83 to the euro against an average of R20.11 year-to-date, and R24.33 to the pound, as compared to a year-to-date average of R23.87. 'The rand is likely to average near R18.00/$1 in the third quarter of 25, if not stronger, but much depends on the policies from the Trump government, and in particular the reactivation of many of the Liberation day US trade tariffs in early July,' Bishop said. 'The Democratic Alliance (DA) has said it will remain in the GNU, while polls have shown loss of President [Cyril] Ramaphosa as ANC president sees the party fall towards 20% voter support. The rand has ignored the latest political spat, following global market movements.' Political dynamics also play a role in shaping market sentiments, particularly following a weekend of intense negotiations surrounding the GNU. The Democratic Alliance (DA) has opted to remain part of the coalition despite expressing dissatisfaction with President Cyril Ramaphosa's Cabinet decisions, notably the dismissal of Andrew Whitfield as deputy minister of trade, industry, and competition. Although the DA has pledged to abstain from certain budget votes, their choice to stay within the coalition has helped stabilise the rand, which has seemingly remained insulated from political turbulence. Andre Cilliers, currency strategist at TreasuryONE,remarked on the DA's recent actions, stating that their frustrations have had minimal impact on the rand's performance. 'The DA is so frustrated that it won't support parts of the government budget and says talking more is pointless. The rand opened this morning back in the mid-R17.70s, stronger than it closed on Friday. The currency will await international data this week to get some impetus,' Cilliers said. Meanwhile, the JSE All Share Index surged 0.9% to 96 706 points during early trade on Monday, bouyed by investments, logistics, healthcare, and manufacturing stocks. BUSINESS REPORT
