{"id":266645,"date":"2025-11-25T10:10:27","date_gmt":"2025-11-25T11:10:27","guid":{"rendered":"https:\/\/www.premium-partners.net\/?p=266645"},"modified":"2025-11-26T05:07:35","modified_gmt":"2025-11-26T05:07:35","slug":"agri-processing-and-basic-service-delivery-as-foundation-for-a-just-transition-in-mpumalanga","status":"publish","type":"post","link":"https:\/\/www.premium-partners.net\/fr\/builder\/agri-processing-and-basic-service-delivery-as-foundation-for-a-just-transition-in-mpumalanga\/","title":{"rendered":"Agri-processing and basic service delivery as foundation for a just transition in Mpumalanga"},"content":{"rendered":"

This post<\/a> was originally published on this site<\/a><\/p>

<\/p>\n

One of the realities facing South Africa is, that without policy intervention, Mpumalanga\u2019s economic <\/span>contraction will start to increase rapidly. This is the result of a combination of factors including the reliance <\/span>of the Mpumalanga economy on the extraction of coal and the failure of municipalities to deliver basic <\/span>services.<\/span><\/p>\n

Coal mining, like any extractive industry, leads to depleted reserves and closure liabilities. This is evident <\/span>in the many ghost towns scattered all over the South African landscape. The mine closure challenge is <\/span>how to create meaningful economic activity after mining has stopped and how to rehabilitate the area to a <\/span>state in which the negative environmental impacts of mining are sufficiently mitigated.<\/span><\/p>\n

One of these challenges, how to create meaningful economic activity could be solved by following a <\/span>pragmatic approach using the policy instruments as proposed in the \u201cSouth Africa\u2019s Energy Sector <\/span>Investment Requirements to Achieve Energy Security and Net Zero Goals by 2050\u201d study. The study <\/span>confirms that the Green Industrialisation (GI) scenario through 2030 and 2040, a high-renewables system <\/span>supported by flexible generation and batteries, with a spend profile that front-loads grid investment and <\/span>build-out capital, is the preferred scenario.<\/span><\/p>\n

The GI scenario does help to bring a solution to the Mpumalanga challenge of economic contraction, and <\/span>longer term job losses as a result of an economy reliant on a single extractive industry. The question of <\/span>how the GI scenario will impact Mpumalanga, has been explored and partially answered using macro- <\/span>and micro-economic studies.<\/span><\/p>\n

The micro study confirms the increased risk for workers in the Mpumalanga coal value chain. To address <\/span>these challenges, the micro-study develops a just transition policy matrix and six structured policy <\/span>packages built from four instruments: income support, training and reskilling, placement services and <\/span>community and household support.<\/span><\/p>\n

Let\u2019s delve deeper into two of these policy packages; the Community Development and Livelihood <\/span>Diversification package and the Provincial Economic Diversification and Investment Facility for private <\/span>investors and municipalities.<\/span><\/p>\n

The Community Development and Livelihood Diversification package focuses on community enterprise <\/span>support, local infrastructure and household resilience interventions while the Provincial Economic <\/span>Diversification and Investment Facility\u2019s objective is to stimulate new industries in Mpumalanga including <\/span>battery manufacturing, solar component assembly, logistics, biomass and agri-processing.<\/span><\/p>\n

Agri-processing is a real opportunity and one Mpumalanga should focus on. We should be aware that if <\/span>we implemented the Integrated Resource Plan 2019 (IRP-2019) and decommissioned coal fired power <\/span>stations as per the plan, we would have released 170 billion litres of water per annum for use in agri-<\/span>related industries. To translate this volume of water into a tangible and more understandable number, it is <\/span>220 liter of water per day for 180 million people, or three times South Africa\u2019s population. What is more, <\/span>most of the water reticulation infrastructure already exists.<\/span><\/p>\n

Agri-industrial parks could be developed close <\/span>to these retired coal fired power station sites. The important part is that we should forward integrate agri-<\/span>processing as far as possible to replace lost opportunity where beneficiation of coal and other mineral <\/span>products are becoming a challenge. The agri industry is known for its employment intensive <\/span>characteristics. The vision should be to become a preferred supplier of basic healthy food for the local <\/span>communities while targeting high value packaged food for the export market.<\/span><\/p>\n

This will, however, only be possible if basic service delivery problems in Mpumalanga municipalities are <\/span>addressed timeously. In a recent presentation before Parliament\u2019s Portfolio Committee on Electricity and <\/span>Energy, Eskom has listed the worst offender municipalities if it comes to non-payment of the Eskom bulk <\/span>electricity accounts. eMalahleni, Govan Mbeki, Lekwa, Thaba Chweu and City of Mbombela form part of <\/span>the list. <\/span>Together they are responsible for R25 billion of the total debt owed by municipalities to Eskom. <\/span>That is a staggering 25% of the total debt owed to Eskom concentrated in one of the nine provinces.<\/span><\/p>\n

There are solutions to assist these municipalities to rectify their challenges by partnering with the private <\/span>sector and fix their distribution grids, metering, billing and revenue collection. The challenge is that <\/span>National Treasury is opposing these partnerships. Examples of this opposition can be seen in <\/span>municipalities like Mafube in the Free State and Nama-Koi in the Northern Cape where Rural<\/span><\/p>\n

Maintenance\u2019s support made a big difference. <\/span>The solution to ensuring a just transition in Mpumalanga is therefore not only a function of enabling new <\/span>policies as determined in the micro-economic study, but also making sure that governance in local <\/span>government is enhanced and basic services get the attention and focus they need. Important to <\/span>understand that governance for governance\u2019 sake is meaningless. Good governance should lead to <\/span>increased delivery of basic services to all citizens, including the poor. Why would National Treasury <\/span>oppose that?<\/span><\/p>\n

The government and the private sector should collaborate to address our massive basic delivery challenges. <\/span>Only then can we start looking forward to a just transition in Mpumalanga without severe socio-economic <\/span>disruption.<\/span><\/p>\n

Thomas Garner holds a Mechanical Engineering degree from the University of Pretoria and an MBA from the
\nUniversity of Stellenbosch Business School.<\/figcaption><\/figure>\n

Thomas Garner holds a Mechanical Engineering degree from the University of Pretoria and an MBA from the University of Stellenbosch Business School. Thomas is self-employed focusing on energy, energy related critical minerals, water and communities. He is a Fellow of the South African Academy of Engineering and a Management Committee member of the South African Independent Power Producers Association.<\/em><\/p>\n

*** The views expressed here do not necessarily represent those of Independent Media or <\/span>IOL<\/span>.<\/span><\/em><\/p>\n

BUSINESS REPORT<\/strong><\/p>","protected":false},"excerpt":{"rendered":"

One of the realities facing South Africa is, that without policy intervention, Mpumalanga\u2019s economic contraction will start to increase rapidly. This is the result of a combination of factors including the reliance\u00a0of the Mpumalanga economy on the extraction of coal and the failure of municipalities to deliver basic\u00a0services.Coal mining, like any extractive industry, leads to depleted reserves and closure liabilities. This is evident\u00a0in the many ghost towns scattered all over the South African landscape. The mine closure challenge is\u00a0how to create meaningful economic activity after mining has stopped and how to rehabilitate the area to a\u00a0state in which the negative environmental impacts of mining are sufficiently mitigated.One of these challenges, how to create meaningful economic activity could be solved by following a\u00a0pragmatic approach using the policy instruments as proposed in the \u201cSouth Africa\u2019s Energy Sector\u00a0Investment Requirements to Achieve Energy Security and Net Zero Goals by 2050\u201d study. The study\u00a0confirms that the Green Industrialisation (GI) scenario through 2030 and 2040, a high-renewables system\u00a0supported by flexible generation and batteries, with a spend profile that front-loads grid investment and\u00a0build-out capital, is the preferred scenario.The GI scenario does help to bring a solution to the Mpumalanga challenge of economic contraction, and\u00a0longer term job losses as a result of an economy reliant on a single extractive industry. The question of\u00a0how the GI scenario will impact Mpumalanga, has been explored and partially answered using macro-\u00a0and micro-economic studies.The micro study confirms the increased risk for workers in the Mpumalanga coal value chain. To address\u00a0these challenges, the micro-study develops a just transition policy matrix and six structured policy\u00a0packages built from four instruments: income support, training and reskilling, placement services and\u00a0community and household support.Let\u2019s delve deeper into two of these policy packages; the Community Development and Livelihood Diversification package and the Provincial Economic Diversification and Investment Facility for private\u00a0investors and municipalities.The Community Development and Livelihood Diversification package focuses on community enterprise\u00a0support, local infrastructure and household resilience interventions while the Provincial Economic\u00a0Diversification and Investment Facility\u2019s objective is to stimulate new industries in Mpumalanga including\u00a0battery manufacturing, solar component assembly, logistics, biomass and agri-processing.Agri-processing is a real opportunity and one Mpumalanga should focus on. We should be aware that if\u00a0we implemented the Integrated Resource Plan 2019 (IRP-2019) and decommissioned coal fired power\u00a0stations as per the plan, we would have released 170 billion litres of water per annum for use in agri-related industries. To translate this volume of water into a tangible and more understandable number, it is\u00a0220 liter of water per day for 180 million people, or three times South Africa\u2019s population. What is more,\u00a0most of the water reticulation infrastructure already exists.Agri-industrial parks could be developed close to these retired coal fired power station sites. The important part is that we should forward integrate agri-processing as far as possible to replace lost opportunity where beneficiation of coal and other mineral\u00a0products are becoming a challenge. The agri industry is known for its employment intensive\u00a0characteristics. The vision should be to become a preferred supplier of basic healthy food for the local\u00a0communities while targeting high value packaged food for the export market.This will, however, only be possible if basic service delivery problems in Mpumalanga municipalities are addressed timeously. In a recent presentation before Parliament\u2019s Portfolio Committee on Electricity and\u00a0Energy, Eskom has listed the worst offender municipalities if it comes to non-payment of the Eskom bulk\u00a0electricity accounts. eMalahleni, Govan Mbeki, Lekwa, Thaba Chweu and City of Mbombela form part of\u00a0the list.\u00a0Together they are responsible for R25 billion of the total debt owed by municipalities to Eskom.\u00a0That is a staggering 25% of the total debt owed to Eskom concentrated in one of the nine provinces.There are solutions to assist these municipalities to rectify their challenges by partnering with the private\u00a0sector and fix their distribution grids, metering, billing and revenue collection. The challenge is that\u00a0National Treasury is opposing these partnerships. Examples of this opposition can be seen in\u00a0municipalities like Mafube in the Free State and Nama-Koi in the Northern Cape where RuralMaintenance\u2019s support made a big difference.\u00a0The solution to ensuring a just transition in Mpumalanga is therefore not only a function of enabling new\u00a0policies as determined in the micro-economic study, but also making sure that governance in local\u00a0government is enhanced and basic services get the attention and focus they need. Important to\u00a0understand that governance for governance\u2019 sake is meaningless. Good governance should lead to\u00a0increased delivery of basic services to all citizens, including the poor. Why would National Treasury\u00a0oppose that?The government and the private sector should collaborate to address our massive basic delivery challenges.\u00a0Only then can we start looking forward to a just transition in Mpumalanga without severe socio-economic\u00a0disruption.Thomas Garner holds a Mechanical Engineering degree from the University of Pretoria and an MBA from the
\nUniversity of Stellenbosch Business School.Thomas Garner holds a Mechanical Engineering degree from the University of Pretoria and an MBA from the University of Stellenbosch Business School. Thomas is self-employed focusing on energy, energy related critical minerals, water and communities. He is a Fellow of the South African Academy of Engineering and a Management Committee member of the South African Independent Power Producers Association.*** The views expressed here do not necessarily represent those of Independent Media or\u00a0IOL.BUSINESS REPORT<\/p>","protected":false},"author":1,"featured_media":94020,"comment_status":"open","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-266645","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-builder"],"_links":{"self":[{"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/posts\/266645","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/comments?post=266645"}],"version-history":[{"count":2,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/posts\/266645\/revisions"}],"predecessor-version":[{"id":266647,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/posts\/266645\/revisions\/266647"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/media\/94020"}],"wp:attachment":[{"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/media?parent=266645"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/categories?post=266645"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/tags?post=266645"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}