department of public enterprises date - 18 november 2015 page 1 venue: cape town date :05 june 2002...
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Department of Public Enterprises DATE - April 20, 2023 Page 1
Venue: Cape TownDate :05 June 2002
Speaker : Ms T N Msibi
BRIEFING TO PORTFOLIO COMMITTEE ON PUBLIC
ENTERPRISES: BY PUBLIC ENTERPRISES INTERNATIONAL
RELATIONS AND RURAL DEVELOPMENT UNIT
Department of Public Enterprises DATE - April 20, 2023 Page 2
RURAL DEVELOPMENT STRATEGY
• The Unit charged with SOE’S role in rural development within the Department of Public Enterprises is the International Relations and Rural Development Unit.
• For purposes of this presentation we will focus only on Rural Development initiatives.
• The Unit was established in 2001.
Department of Public Enterprises DATE - April 20, 2023 Page 3
DPE ORGANOGRAM
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RURAL DEVELOPMENT
• The department’s rational behind the inclusion of SOEs in Rural Development is based on the following:– SOEs financial resources;– The inherent capacity that resides in the SOEs; and– The developmental potential of SOEs.
• DPE’s central mandate is primarily on the restructuring of SOEs, there are other activities and functions undertaken by the Department which are aimed at the realisation of governments social and economic objectives.
• This functions of this Unit focus on the latter objectives.
Department of Public Enterprises DATE - April 20, 2023 Page 5
RURAL DEVELOPMENT
• This presentation will look at rural development projects within the SOEs in three parts:
– Firstly their day to day functions;– Secondly the coordination of SOEs for
delivery on the Integrated Rural Development Strategy; and
– Thirdly their Social Responsibility initiatives which have an impact on rural development;
•
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RURAL DEVELOPMENT
• PART 1
– There are initiatives that have been undertaken by the SOEs as part of their day to day responsibilities and functions.
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ESKOM
• There are initiatives that have been undertaken by the SOEs as part of their day to day responsibilities and functions.
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ESKOM
• The challenge has been identified as the electrification of rural areas in a sustainable manner:
• Firstly looking at backlog:• In 1994 approximately 10.8 million households.• In 1994 approximately 35% of households
electrified.• Between 1994 and end of-2001 3.65 million
households had been electrified.
Department of Public Enterprises DATE - April 20, 2023 Page 9
ESKOM
• At this point, it was realized that the programme could not be sustained through funding by Eskom.
• Agreement within government that universal access to electricity is the responsibility of government.
• Eskom has an important role to play the realisation of this objective.
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ESKOM
• Goal – electrification by 2010.
• Agreed that from 2001 national government would fund the programme through DME (Department of Minerals & Energy)
• Funding held by in the National Electricity Fund
• Disbursed by the National Electricity Regulator
Department of Public Enterprises DATE - April 20, 2023 Page 11
ESKOM
• TARGETS IN 2001/2
– Targets were 190,000 households.
– Eskom achieved 206,000 households and 190 at schools
– (70% rural electrification).
– The electrification of rural areas has had a major impact on the quality of line of rural people, especially women and children.
– For rural women, provision of electricity has resulted in the reduction of time spent collecting fire wood, which time is today directed at other productive activities.
– For school children, there is light for study and recreation which opens other opportunities in life.
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ESKOM
• Funding both from National government and Eskom (transitional stage)
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ESKOM
• CURRENT TARGETS:
– The current target is 200,000 households, 1142 schools and 10 clinics
• (70% of electrification at rural areas)
Department of Public Enterprises DATE - April 20, 2023 Page 14
ESKOM
• MUNICIPALITIES:•
– 95,000 households and 10 clinics.– (20% at rural electrification)
• BUDGET:
– 950 MILLION per year for the next three years (2002-2005)
– 37% of electrification allocations and targets are for the
13 nodal zones
Department of Public Enterprises DATE - April 20, 2023 Page 15
TRANSNET
• Ports:– COEGA project in the Eastern Cape that is
aimed at unleashing the industrial and related capacity ( employment, development through increased economic activity) of the Eastern Cape
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TRANSNET
• RAIL
– The Department has agreed with labour that restructuring of rural rail network will not only look at the core business of Spoornet but lines will be considered on a line to line basis to ensure that issues of employment and development are also considered and form part of the decision that is reached on the future of these lines.
– In some instances, these lines are key to rural development such as access to markets and other economic activities by emerging farmers, rural women as well as facilitating social development.
Department of Public Enterprises DATE - April 20, 2023 Page 17
TRANSNET
• (Example) The rail line to Port Alfred (Grahamstown-Port Alfred)was closed. Spoornet then granted a lease to a community cultural organization, Ndlambe Academy of music, arts and culture, whereby the group runs the line and brings in tourists from Grahamstown into Port Alfred, a 69 kilometre rail line.
Department of Public Enterprises DATE - April 20, 2023 Page 18
TRANSNET
• The Department is currently busy investigating alternative operating modes for the rural rail network to ensure that every possible method of retaining and increasing current traffic flow in the rural areas is brought to bear in the considerations of the rail restructuring in the rural areas. (Umtata rail line is an example)
Department of Public Enterprises DATE - April 20, 2023 Page 19
PART 2: IRDS
• OBJECTIVE:– To ensure that SOEs are involved in the integrated rural
development strategy in a coordinated manner.– To ensure that projects in the Free State Rural Node are
undertaken and completed timeously.
• DISCUSSION:– The formation of the Coalition began in December 2001
and its terms of reference was finalised in April 2002. – The Coalition has agreed to work with the Maluti-A-
Phofung Municipality in the Thabo Mofutsanyana District in the Free State.
– Maluti-A-Phofung is therefore considered a pilot project and the same programme will be rolled out to other municipalities at a later stage.
Department of Public Enterprises DATE - April 20, 2023 Page 20
NODAL POINTS MAP
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Coalition Structure
SecretariatEskom Enterprises
I nfrastructureDBSA Chair
Agri-businessARC Chair
I ndustrial and TourismCSI R Chair
SocialNDA Chair
Capacity BuildingSABS Chair
Steering Com mitteeLGTP and DPLG Co-Chair
Executive Com mitteeSALGA and DPLG Co-Chair
Department of Public Enterprises DATE - April 20, 2023 Page 22
Municipality Structure
Programme Management:Project Finance:Capacity Building:Information Management:
Stakeholder Management:SecretariateAdministration
Project Management:
Technical Support / Task Team Coordination:ElectricalCivilISDAgric & LandLEEInformation Systems
Programme Management
Maluti-a-Phufong
FinancialTechnicalSocial
Development
Nodal Development
Human Capital Development
Industrial & Tourism
Municipal Infrastructure
Public Safety, Transportation &
Emergency Services
Information Systems
Agriculture & Land Affairs
Social & Community
Task Teams
Projects
Pro
gra
mm
e M
anagem
ent &
Capacity
Build
ing
Sta
kehold
er
Managem
ent
(Clu
ste
rs)
Pro
ject M
anagem
ent &
Technic
al S
upport
Department of Public Enterprises DATE - April 20, 2023 Page 23
SOEs
• NATIONAL COALITION OF MUNICIPAL SERVICE DELIVERY:
• CONSISTS OF AMONGST OTHERS THE FOLLOWING SOEs:– Eskom Enterprises; (DPE)– Eskom College; (DPE)– DBSA – Development Bank of Southern Africa (DTI)– Arivia.kom; (DPE)– SABS – South African Bureau of Standards (DTI)– INCA – Private bank focused on municipal infrastructure– CSIR - Council for Scientific and Industrial Research (DTI)– LAND BANK; (DoA)– ARC – Agricultural Research Council (DoA)
– MIIU – Municipal Infrastructure Investment Unit (DPLG)– SALGA – South African Local Government Association)– SANCO – South African National Civic Organisation)– NDA – National Development Agency (DPLG)– LGTP – Local Government Transformation Program (DPLG) and – IDC – Industrial Development Corporation (DTI)
Department of Public Enterprises DATE - April 20, 2023 Page 24
ARIVIA.KOM
• Facilitating information technology training
• Vocational and career guidance • Community and NGO support• Donating state-of-the-art information
technology to schools• Sponsoring Sport development• Sponsoring Health Care
Department of Public Enterprises DATE - April 20, 2023 Page 25
PART 3: TRANSNET FOUNDATION
• CORPORATE SOCIAL INVESTMENT
– BUDGET ALLOCATION FOR THE YEAR 2001 R14,250 MILLION
– INFRASTRUCTURE : R10 million– Construction of five schools:
• Rethusitswe Primary School in the Northern West Province,
• Rantobeng Secondary School in the Northern Province,• Daliwonga in the Eastern Cape,• Benjamin in Mpumalanga• Billiton and Libode Community College in the Eastern
Cape.
–
Department of Public Enterprises DATE - April 20, 2023 Page 26
TRANSNET FOUNDATION
• CAPACITY ENHANCEMENT: R2,25 million– Building capacity to teach maths, science and
technology:• Funding of Maths and Science training workshop in
QwaQwa for 120 teachers, potentially impacting on 20 000 learners.
• Provision of 21 computers and two printers at five school computer laboratories.
Department of Public Enterprises DATE - April 20, 2023 Page 27
TRANSNET FOUNDATION
• HIGHER EDUCATION: R1 million– Helping Tertiary Institutions implementing
outreach programmes:• Completion of the University of Zululand library in
Kwa-Zulu Natal.• Funding of the University of the Free State in the
Free State Province to retain teachers in the IT programme.
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TRANSNET FOUNDATION
• EARLY CHILDHOOD EDUCATION: R250 000.00– Providing toys to 38 crèches and schools.
• SKILLS DEVELOPMENT: R750 000.00– Training of teachers in the Free State in
Science and Maths programmes.
Department of Public Enterprises DATE - April 20, 2023 Page 29
TRANSNET FOUNDATION
• HIGHLIGTED ACHIEVEMENTS:– Health: Phelophepa Train
• Primary Health Care;• Dental Care;• Medicine; and• Eye care.
Department of Public Enterprises DATE - April 20, 2023 Page 30
ESKOM FOUNDATION
• ECONOMIC DEVELOPMENT PROGRAMMES:– To create opportunity for historical
disadvantaged SMMEs.
• SOCIAL DEVELOPMENT PROGRAMMES:– Job creation– Skills development– Economic Empowerment of the disabled
Department of Public Enterprises DATE - April 20, 2023 Page 31
Public Enterprises Community Development Coordinating Committee
• This committee comprises of different SOEs.• On the 13th of May 2002 they officially opened the
disabled unit of the University of the North.• The project has been running for five years,
allocated budget for the projects was R6 million. The unit has the following features:– Production room – Braille facility– Library– Four offices for staff members
Department of Public Enterprises DATE - April 20, 2023 Page 32
Public Enterprises Community Development Coordinating Committee
• The next project for the committee will focus at the Free State Province as the Minister is the Nodal Champion.
• CONCLUSION:
• This information illustrates that rural developments forms an integral part of the overall development role of SOEs.
• It is not an add on function to the activities undertaken by SOEs and the DPE.
• Our task as a Department is to harness the massive financial, labour, technological and capital resources to contribute towards the goals of rural development, especially infrastructure delivery.