Construction World August 2018

COVERING THE WORLD OF CONSTRUCTION

WORLD AUGUST 2018

CR O WN

P U B L I C A T I O N S

CAT ® EXCAVATORS BARLOWORLD EQUIPMENT LAUNCHES NEXT GENERATION 20 TON

of infrastructure RETHINKING the VALUE

Construction stakeholders honour an 80 YEAR PROMISE

The role of cities in AFRICA’S GROWTH l

Enter Best Projects 2018

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CONTENTS

04 Industry Going for Gold Going for Gold is an award-winning ‘education-to- employment’ initiative. 06 Unearthing future leaders Various CESA initiatives aim to get the youth interested in engineering. 10 Driving Agenda 2063 to connect communities Rapid urbanisation will see city populations increase to a billion by 2063. 14 Message of confidence in challenging market Real estate consulting firm, JLL recently released a positive market report. 18 One million m 2 of certified Green Space in Africa WSP in Africa has reached a milestone in the journey of green building in South Africa.

24 Honouring an 80 year promise Various companies are working together to renew a mission in KwaZulu-Natal. 26 Whittlesea Road gets upgrade A section of the R67 between Whittlesea and Queenstown is being upgraded. 27 Making PPPs work for you A PPP is still a workable method to deliver infrastructure projects. 30 Upgrading Namibian road VKE Namibia Consulting Engineering is upgrading the Main Road 118. 36 Rethinking the value of infrastructure in South Africa We have 12 years left to achieve targets set for 2030. 44 New life for CRB market MVA Brick has done various impressive contracts for major brands. 48 Top-drawer standards innovation of Cameroon Mall Raubex Renovo is currently building a major mall in Douala, Cameroon.

52 Strengthening ties FAW and Portland have shared a trusting relationship. The latter owns 27 FAW trucks.

REGULARS

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Marketplace

Property

Environment & Sustainability

ON THE COVER

Project Profile

On 26 July 2018 Barloworld Equipment officially launched the Next Generation of Cat 20-ton excavators that do exactly what customers want. They perform better at lower cost, assisted by tried and tested technologies that used to be ‘on the wish list’ but are now standard equipment. Read the story on pages 22 and 23.

Projects & Contracts

Equipment

Products & Services

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COMMENT

The report, ‘Global Infrastructure Outlook: Infrastructure Investment Need in the Compact with Africa Countries’ finds that USD2,4-trillion of investment is required in these 10 African countries by 2040 if they hope to keep pace with global economic growth and close infrastructure gaps. This is the first time that the scale of infrastructure investment needs, current investment trends and the investment gaps are reported for these countries. Of the USD1-trillion investment gap, USD415-billion is required by 2030 if these countries are to meet the UN Sustainable Development Goals. The good news is that 37% of infrastructure investors invest in emerging markets – up from 20% in 2016. Of those already investing in emerging markets, 82% wants to increase their investment. This is according to the Annual Global Infrastructure Investor Survey 2017 and the EDHEC Infrastructure Institute-Singapore. Although the desire of investors may exist to invest in the infrastructure of developing countries, these countries (and Africa in general) need to create the right environment with which to encourage investors to make their willingness to invest, a reality. Such an environment will only be achieved by creating a climate of good governance, and positive regulatory and institutional frameworks. The report singles out Morocco and Rwanda as examples of countries where the improvement in the regulatory quality, rule of law and positive investment and competition frameworks have had a positive effect on infrastructure investment. The infrastructure investment gap in South Africa may not be as vast as elsewhere in Africa, but it is significant if the country hopes to achieve sustained positive growth. The same applies for the country as what applies for the 10 African countries in the A staggering USD1-trillion infrastructure investment gap exists in 10 African countries over the next 22 years. According to a report by the Global Infrastructure Hub, a G20 initiative, this massive gap exists in 10 countries: Ethiopia, Egypt, Morocco, Côte d’Ivoire, Ghana, Senegal, Benin, Rwanda, Guinea and Tunisia. This represents a 42% investment gap – one of the largest regional gaps in the world.

report: sustained growth will only happen with good governance, and impeccable regulatory and institutional frameworks. *The two reports were researched and developed over a six-month period in partnership with Oxford Economics (Outlook) and KPMG (InfraCompass). Covering the world of construction You may have noticed that we have a new pay-off line on the cover: ‘Covering the world of construction’. Construction World is the only business-to-business magazine in South Africa that covers both civils and building. As such, the pay-off line now represents this encompassing nature. In addition, the magazine covers steel, concrete and wood, further proof that it is indeed covering the entire world of construction.

Wilhelm du Plessis Editor

@ConstWorldSA

www.facebook.com/construction-worldmagazinesa

EDITOR & DEPUTY PUBLISHER Wilhelm du Plessis constr@crown.co.za ADVERTISING MANAGER Erna Oosthuizen ernao@crown.co.za LAYOUT & DESIGN Lesley Testa CIRCULATION Karen Smith

PUBLISHER Karen Grant PUBLISHED MONTHLY BY Crown Publications cc P O Box 140 BEDFORDVIEW, 2008 Tel: 27 11-622-4770 • Fax: 27 11-615-6108

TOTAL CIRCULATION: (First Quarter '18) 5 470

The views expressed in this publication are not necessarily those of the editor or the publisher. PRINTED BY Tandym Cape

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Copyright : TEMISTOCLE LUCARELLI

INDUSTRY GOING FOR GOLD

internship at their company in Phase Two (post schooling gap year). The benefit of the Phase Two year is that it allows youth to work at Go for Gold partner companies for a year, receive a general work- ers salary and on weekends attend bridging classes in Maths and Science to better prepare them for tertiary-level Maths and Science subjects. The Phase Tow year allows beneficiaries to accurately choose their course of study, based on practical exposure they experienced in this year. The Go for Gold Phase 2 year was recently recognised at the ‘Africa Talks Conference’ organised by NEPAD where Go for Gold’s Fundraising and Communications Manager, Karen Rademeyer presented the Education-to-Employment model to 55 African Union states in Addis Ababa. Concerns at the conference highlighted the non-preparedness of youth to choose a course of study, often failing first years at tertiary institutions and wasting bursary investments. Go for Gold was able to share their four-phased approach to youth development which yielded great interest from conference attendees. Go for Gold was able to highlight that the benefits for the Phase Two year also extended to Go for Gold partner companies who enjoyed Go for Gold strengthening their bursary investments with the bridging classes in Maths and Science and allowing companies to invest in youth they have already worked with. The remaining Go for Gold phases include tertiary studies in Phase Three and qualified technical graduates returning to partner companies in Phase Four for employment. This year the Go for Gold Annual Industry Fundraising Dinner and Auction event was hosted at The Westin Cape Town on 14 June 2018. Go for Gold partners from the built environment companies continued to show their passion for youth development and creating future leaders for industry by attending the NGO’s event, despite the tough economic climate the industry is currently in. The Go for Gold partners in attendance included Amandla Construction, Asla, Avenge Grinaker-LTA, Burger and Wallace, Civils 2000, Concor, Engineering Council of SA (ECSA), Haw & Inglis Civil Engineering, Triamic Con- struction, Martin & East, Master Builders Association WC, Peri Form- work, Power Construction, Prime Projects, R & N Master Builders, RMD Kwikform, Smart Civils, Stefanutti Stocks Corporate Services and Whiteheads Painting Contractors. Among the audience included esteemed guests that work with these built environment companies and Go for Gold donors. 

G o for Gold * is an award-winning ‘education-to-employment’ public-private initiative, founded in 1999 through a collaboration between companies in the built environment, the South African Department of Education and civil society. It was created to directly improve the number of young people, from disadvantaged communi- ties, eligible to study towards a technical profession and then secure employment in the built environment and related industries. Each year Go for Gold celebrates industry participation and garners support for their beneficiaries at the Go for Gold Fundraising dinner and auction. It is an annual event boasting attendance by Go for Gold partner companies all of whom are major players from the South African Build Environment; many of whom have supported the four phase Education-to-Employment programme since 2005. Go for Gold partners support youth on each of the four phases of career development. The supportive journey begins when Go for Gold beneficiaries are in Phase One, their Grade 11 and 12 year where Go for Gold provide students with Maths and Science tuition, Leadership Development training and provide exposure to careers at Go for Gold partner companies. Partner companies sponsor unemployed youth to receive the benefits that Go for Gold provides to these students. When the students are in Grade 12, partner company HR Managers interview students for placement at their company for an experiential With skills development and high youth unemployment being contentious issues in post- Apartheid South Africa, most prevalent of the concerns are aspects that adequately prepare youth for employment. Youth, especially from marginalised communities need support more than before, particularly in Maths and Science subjects in order to support future career aspirations. *Currently Go for Gold operates in the Western Cape, Gauteng and Eastern Cape regions and possesses the ability to expand all over South Africa.

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UNEARTHING FUTURE LEADERS “Young people must take it upon themselves to ensure that they receive the highest education possible so that they can represent us well in future as future leaders. Education is the most powerful weapon which you can use to change the world,” proclaimed the late former President Nelson Mandela.

YPF therefore encourages all member firms to participate in the Job Shadow initiative and poster competition which is currently under- way and runs till 31 July. The Job Shadow initiative allows student to experience ‘a Day in the Life of a Consulting Engineer’ and hopefully will allow students to make an informed decision when choosing a career path after high school,” declares CESA’s YPF Chairperson Amanda Masondo-Mkhize. CESA YPF Imbizo Masondo-Mkhize points out that during June, the YPF urges CESA member firms and the Public Sector to support the Annual Young Professionals Sustainability Imbizo (#YPImbizo), which takes place on 14 and 15 August this year, by encouraging young profes- sionals within their companies to submit abstracts for this empowering conference and also to sponsor the attendance of their young professionals. The Imbizo provides networking opportunities and engagement that encourages dialogue that is necessary in order to sustain the future of Engineering. Young Professionals that attend the Imbizo are afforded the opportunity to attend the CESA Aon Engineering Excellence Awards where the winner of the Job Shadow initiative poster competition, the Young Engineer of the Year and numerous other Engineering excellence awards are presented. CESA School Talks The CESA Job Shadow Initiative has been expanded to include ‘School Talks’ by participants who are not involved in the main Job Shadow Programme. ‘School Talks’ have become a necessity since the majority of learners continue to struggle with Mathematics during the transition from grades three to four, grades seven to eight and end up not choosing Mathematics in grade 10. Statistics show that from those who choose core mathematics in grade 10 only one in five achieves a pass of more than 50% in Mathematics and Science in the matric final exam. An ‘engineering intervention’ is necessary to stop and reverse the ‘Mathematics meltdown’ at schools by conducting motivational talks during the Job Shadowing Months. The South African Engineering profession will not survive if the standard of numeracy at schools does not improve. Much in the same manner as the Job Shadow Initiative, the presenters of the ‘School Talks’ present learners with a copy of the talk which they can share with their peers and their parents. This small effort may be akin to trying to save starfish that get washed ashore. Too many to save and too few who care. CESA though, is up to the challenge.  consulting engineering as an exciting career option and also serves as a call to action for corporates in the engineering discipline to develop a pipeline of much needed engineering professionals in South Africa. The initiative is geared towards showcasing the engineering profession, particularly

I n a quest to promote engineering as a career of choice, it is against this background that Consulting Engineers South Africa (CESA) and its Young Professionals Forum (YPF) are hosting their Job Shadow Initiative. In addition, CESA’s YPF is also hosting its Annual Imbizo as well as a series of ‘School Talks’ aimed at promoting Engineering

as a career of choice within schools. Job Shadowing initiative

The goal of the Job Shadowing Initiative is to expose and entice school learners into the engineering field, but more specifically to the specialised field of Consulting Engineering as a career of choice. By giving them an experience like no other, learners get a chance to imagine, live, work and play Engineering – opening their minds to a world of possibilities. Engineers change the world by creating and designing innovative solutions that provide sustainable value-for-money infrastructure important to the communities they serve. The initiative is geared towards showcasing the engineering profession, particularly consulting engineering as an exciting career option and also serves as a call to action for corporates in the engi- neering discipline to develop a pipeline of much needed engineering professionals in South Africa. The Job Shadowing Initiative takes the form of a poster competi- tion, with the top three submissions depicting the learner’s experi- ence, receiving recognition at the CESA Aon Engineering Excellence Awards being held on 15 August 2018. Last year UWP Consulting won the competition with Infraconsult and Bigen Africa, runners-up. The CESA Job Shadow Initiative is timed to coincide with Youth Day, celebrated on 16 June, in commemoration of the Youth that participated in the Soweto Uprising in 1976. “CESA’s Young Profes- sionals Forum stands in solidarity with the students of today as they endeavour to have a South Africa where affordable, quality education is accessible to all students regardless of their backgrounds. During Youth Month in particular, the CESA

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Onke Ngacu HEADS INDUSTRY BODY Onke Ngacu, a Technologist at engineering and architecture company GIBB, has been appointed Chairperson of the South African Institution of Civil Engineering for the Amathole (East London) region – the first black woman to hold the position.

N gacu, who works in GIBB’s Water sector at the East London office, said she was honoured to be given the responsibility, but also aware that there was much work to do. Ngacu has committed herself to upholding the SAICE mission of advancing professional knowledge and improving the practice of civil engineering. The organisation does this by holding regular talks, facilitating training and skills upgrades for its 315 local mem- bers and through events for school learners to encourage them to study engineering. Of the engineering industry as a whole, Ngacu said there was still a need to change the legacy culture so that the field becomes more accepting of women in a cultural and a practical sense. “It is exhausting for women to have to constantly prove themselves,” she said. She said another industry challenge was a lack of structures to absorb new engineering graduates into the workforce. “We need to be more open to employing black diploma and B.Tech graduates, and to make sure they have clear career paths through to eventually registering with the Engineering Council of South Africa (ECSA).” Another priority is being part of the Walter Sisulu University advisory board, to ensure the institution’s engineering faculty retains its ECSA accreditation. “WSU is a rich source of black engineers for our industry in the Eastern Cape,” she said. “It is important for the university to remain accredited and to build recognition for itself.” Despite these industry challenges, Ngacu said there has been progress and that working at GIBB – a black-owned company – is deeply fulfilling. “Over my 11 years at the company, I’ve had the hon- our of seeing projects right through from inception to close-out, and felt the satisfaction of seeing clean potable water emerge from a tap after working on a water project for years.” She said the SAICE role was rewarding in that it gave her a chance to be hands-on in developing her industry. “At our recent schools’ Water and Bridge Building competition, it was amazing to see how grateful students were to be able to learn and participate.”

She said that having inspirational teachers when she was at school in Butterworth, Eastern Cape, had laid the foundation for her engineering career. She looked forward to doing the same for the next generation, mentoring more young black women to become engineers and to seeing her industry growing as a dynamic, diverse sector serving South Africa’s needs. To women looking to succeed in engineering, she had one mes- sage: “Don’t wish for it. Work.”  About GIBB GIBB is one of South Africa’s leading black-owned multi-disciplinary engi- neering and architecture company with a solid footprint on the continent. With a legacy that spans over 60 years, the company is a wholly owned South African entity with a 67% black ownership. The company offers design, planning and management services across the entire engineering and architecture spectrum. GIBB is a partner of choice for the private sector, state owned enter- prises and governments who seek knowledgeable talent, with proven experience and the expertise to respond to the numerous infrastructure demands and needs of the continent. GIBB is a Level 2 BBBEE company. The audit was performed by AVS (Acuity Verification Services), a SANAS accredited verification agency as per the dictates of the B-BBEE policy.

Wages and conditions of employment agreement concluded The Bargaining Council for the Civil Engineering Industry (BCCEI) announced the signing between all parties in the civil engineering sector of a three-year settlement agreement with respect to wages and conditions of employment. The settlement will come into force from promulgation by the Minister of Labour later this year. employees by the Building Construction and Allied Workers Union (BACWU) and National Union of Mine Workers (NUM). The parties agreed to a 7,5% wage increase across the board for the first and second year. The increase for the third year will be 7,5% or CPI , whichever is the greater. Negotiations began in the last week of March 2018, and what is significant is that during negotiations real industry issues were dealt with.

The negotiations were characterised by a deep understanding by all parties of the pressure under which the civil engineering sector has been operating for the last few years. The employers were represented by South African Forum of Civil Engineering Contractors (SAFCEC) and Consolidated Employers’ Organisation (CEO) and the

The BCCEI is a sector specific bargaining council created in terms of the Labour Relations Act, 1995 (LRA), and it responsible for over- seeing the funds and benefits administration, compliance, enforce- ment and exemption of the various Collective Agreements concluded within the BCCEI. 

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CESA AND AON CELEBRATING engineering excellence Consulting Engineers South Africa (CESA) and the engineering community are once again gearing up for another spectacular occasion celebrating innovation, quality, outstanding workmanship and professionalism in the engineering industry.

Aon South Africa, Business Unit Manager for Professional Risks, Meggyn Marot.

engineers. Aon facilitates a variety of risk management and insurance solutions to these challenges to allow a business to prosper in the face of adverse risks. Those who prioritise risk management have found value and comfort in the extensive insur- ance solutions and experienced advice that Aon provides to CESA members. We operate in an era where finding the right partner to navigate the risks one faces becomes paramount – it’s a task best under- taken with a professional broker with deep sector-specific expertise,” Marot urges. These prestigious awards provide CESA and its Member Firms, the opportunity to boast about the extent of innovation and expertise in an industry where engineering excellence is rewarded above profit margins. They are about thanking all the participants for their important contribution to the growth of our country, given the pivotal role that CESA member firms play in the South African society and economy. CESA is proud to showcase our country’s magnitude of engineering talent and reward their innovative engineering solutions, cel- ebrating excellence in the delivery of basic services to our people. The Awards are a source of pride as we witness how the consulting engineering industry is striving to attain excellence and to perform in ways that are comparable to best practices and standards from across the world. 

F requently, we talk about the fact that we live in a globalised world. The relevance of this in our quest for excellence is that we need to measure ourselves against global standards and benchmarks. The CESA Aon Engineering Excellence Awards dubbed the ‘Oscars of the Engineer- ing World’ will be held on 15 August 2018 at Vodacom World, in Midrand. This prominent industry event sponsored by Aon South Afri- ca is one of the highlights in the engineering and construction industry calendar and the 2018 Awards promise to be better than ever. This year, CESA expanded the award’s categories to include ‘The Lifetime Industry Achievement Award’, a discretionary award to recognise an individual who has contrib- uted significantly to the development and promotion of the Consulting Engineering Industry in South Africa during their lifetime. This year over 46 submissions were received. The Awards Function is widely attended by the engineering who's who of South Africa, including Consultants, Con- tractors, Suppliers, Academics, Institutions as well as Client bodies from both the Public and Private Sectors. The awards provide CESA with the opportunity to showcase the extent to which local built-environment

professionals provide the best in engineer- ing expertise. “The Awards are about recognising and thanking all the participants for their role played in the country’s infrastructure de- velopment, a key requirement for economic growth of our country,” proclaims CESA CEO Chris Campbell. He adds that an enormous responsi- bility rests on the shoulders of consulting engineers in delivering cost effective and appropriate engineering solutions that stand the test of time. Aon South Africa, Business Unit Manager for Professional Risks, Meggyn Marot says that the dynamic environment in which engineers operate means that they are faced with so much more than the challenges of design implementation or complex project management. Today’s professional engineer- ing consultant is faced with many threats to business health and growth beyond what has ever been experienced before. Proactive risk planning and pre-empting of the range of interlinked threats faced by engineers cannot be over emphasised. “Integrated risk management strategies need to be at the heart of every project to manage and mitigate the risks faced by

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Driving AGENDA 2063 to connect communities

B ut, how will we get from the current state to that envisioned in the Agenda 2063 – for a united and prosperous Africa? To address this question, experts from WSP in Africa have shared their insights on leveraging the transformative power of urbanisation to seize opportu- nities and build an impactful legacy for the future of Africa’s cities. Integration at the core of long-term planning Alison Groves, Regional Director, WSP, Building Services, Africa, says, “Smart cities are generally thought of as technology marvels that are totally connected and integrated. We are seeing growth in the direc- tion towards technologically ‘smart cities’, where a lot of metropoles are focusing on introducing smart technology into their city scape, but there is a lot of room for improvement in Africa. Also, I believe that in the African context, and knowing the challenges faced in African cities with infrastructure deficit to support the popu- lation growth we are seeing, we need to take a different approach.” A World Bank report highlighted that there are three key and reoccurring challenges with Africa’s rapid urbanisation; the cities are too crowded, not integrated, and it is expensive to live in African cities. To meet the standards set in the New Urban Agenda, cities in Africa must become far more reasonable for people to thrive and environmentally friendly. “In Africa and if we are going to achieve the aspirations laid out in the Agenda 2063, there needs to be more focus on infrastructure development that will support sustainable cities that are totally integrated – and cities that are ‘people’ focused. "This will mean reviewing all current infrastructure plans and proj- ects to understand what is the socioeconomic and environmental impact of these,” adds Groves. Herbert Phahlane, Director: Traffic and Transportation, WSP, Commercial Civils, Africa, shares this sentiment. “If we consider the current state of prioritisation of infrastructure projects by African nations, in many respects, this needs to be readjusted. The Agen- da 2063 provides a long-term vision and set of seven aspirations. What we need now is an integrated actionable plan that takes into consideration the development priorities of each region and provides a step-by-step implementable roadmap that also encapsulates how people will live, work and play – towards and well beyond 2063.” Phahlane recognises there are infrastructure projects and plans being implemented, or in the pipeline, but believes that the effective implementation of infrastructure projects should be considered in earnest – of what will benefit people, communities, trade and industry. “We should be undertaking an economic impact assessment process to understand the ‘real potential’ socio and economic impact and, if based on this, the projects currently being fast-tracked are in fact the right projects – that will add to the long-term resilience and sustainable inclusive economic growth for future societies. This will better enable us to design projects based on what the future sustainable urbanisation set out in the United Nations’ New Urban Agenda, Habitat III – The African Union (AU) developed Agenda 2063. Rapid population growth and urbanisation of African cities will see nearly 350 million new city- dwellers by 2030, and a billion more by 2063. In response to meeting the expected demand of the future populous – and the standards for

demand on infrastructure networks will be – to allow us to potential- ly leapfrog current implementation constraints and get ahead of the demand curve that will support sustainable development and growth going forward,” says Phahlane. Connecting communities to seize opportunities “Part of the integration challenge is that the cities and urban nodes are spread out across far reaching spaces and are fragmented. This also adds to the expense for people who live outside of cities, but need to travel into the cities to pursue valuable employment opportunities,” says Phahlane. “To rectify this, focus needs to be placed on infrastructure projects that will interlink these nodes, open opportunities for people to move within and between nodes with much greater ease – and in so doing, support growth in the second economy and encourage more inclusive participation in the main- stream economy.” The New Urban Agenda has placed significant focus on how people will move within and between cities. Futureproof planning therefore means that the bigger picture must involve the integration of major transportation infrastructure projects with provincial and municipal development. It must also consider planning for and the development of the critical mass of support infrastructure that feeds into and from the primary infrastructure. “Public transport infrastructure therefore still has a crucial role to play in the future of African cities. It’s not surprising that plans to expand all modes of public transport is on the development agenda for most African states. However, these expansion plans will only be affective and successful as they are integrated into the larger region- al and cross-regional transport networks. Changing how we think about, plan, design and build integrated public transport networks will bode increased confidence by people – and towards effecting positive change in mindsets about the reliability, safety and comfort of public transport solutions,” adds Phahlane. Technology as an integrator and enabler Groves says: “Part of focusing on people is also looking at how tech- nology can be introduced and used to improve access to services and the quality of life city dwellers. Technology must be considered a social and growth enabler, but in context of the bigger vision.” Citing Kigali as a keen example, Groves says: “Rwanda has come out of a very war-torn situation from the early nineties and today Ki- gali is one of the flourishing cities in Africa – largely because of the opportunities offered by a strong technology-based backbone.” “We cannot escape that we are living in a world that is increasing- ly being transformed and driven by advances in technology. To en- sure we are not left behind in the latest revolution, we must embrace technology and ensure that our cities are technologically enabled and powered. This will drive immense opportunities for people living in our cities to have access to services, but also information. More connected and informed city dwellers will make help make our cities smarter,” says Phahlane. Digitalisation presents incredible opportunities for African nations to leapfrog some of the traditional development trajectories. While in its infancy in Africa, improving cost effective Internet access and adopting digital technology could drive radical changes that can boost access to social infrastructure in the short to medium-term, such as e-Learning and e-Health services, for example. Furthermore, in the long-term, embracing disruptive innovation as part of the pro- cess to deliver complex and sustainable projects presents opportuni- ties to implement changes now that will transform how we view and use infrastructure, ensuring that it is enriched and futureproofed.

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Modern Nairobi cityscape – capital city of Kenya, East Africa.

What we need now is an integrated actionable plan that takes into

isolation must be broken down and a holistic and integrated design must be considered upfront; including transport, future energy, climate change strategy, water, waste management and socio-eco- logical systems, housing, etc. as well as intelligent systems powered by telecommunications and technology adoption. “Building a smart, sustainable city is a complex undertaking for any economy. On a microeconomic scale, a town or city has layers of impact that extend far beyond the boundaries of individual building projects, including on the atmosphere, built environment, urban infrastructure, natural attributes, and social impacts, etc. It is only when we design and plan for the homogenous growth of all these layers together that we will achieve future cities that are ergonomic, more sustainable and innovatively smart for a future where society can really thrive,” concludes Groves. 

Futureproof approach to sustainability Climate change and changes in and extreme weather events present inevitable risks that African nations will be faced with. “Given the scarcity of access to resources, many current basic services infrastructure plans are reliant on one solution. For exam- ple, one water solution, or one energy solution. However, this poses eventual risks to a city’s supply services,” says Groves. Groves explains that the City of Cape Town is a prime recent example. The city has always been very reliant on the Theewaterkloof Dam. In responding to the water crisis, the city had to look at alterna- tive sources and solutions for water supply in the region. “If the City of Cape Town had had more diverse water supply from the onset, the region would have been more resilient through the drought.” “We need to understand that without intervention the urban form of the city will not rapidly and materially transform itself towards being more efficient and sustainable. Going forward and as we look to adapt our cities to be more low carbon cities, we need to look at diverse solutions – things that network with each other, but can operate independently – and that promote resilience, particularly considering climate change to come,” adds Groves. WSP believes that to develop a sustainable city, the barriers of consideration the development priorities of each region and provides a step-by- step implementable roadmap that also encapsulates how people will live, work and play – towards and well beyond 2063.

FROM LEFT: Alison Groves, Regional Director, WSP, Building Services, Africa. Herbert Phahlane, Director: Traffic and Transportation, WSP, Commercial Civils, Africa.

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New dawn for delivering complex infrastructure Quantity Surveyors are aiming to play a crucial role in getting 'frozen' infrastructure development projects back on track. “Municipal managers and classically trained accountants are currently expected to deliver complex projects,” says Larry Feinberg, Executive Director of the Association of South African Quantity Surveyors (ASAQS). “Not only is this expectation unfair on them without them having received the proper training; it’s also part of the reason why some large infrastructure development projects have been suspended or have ground to a halt.”

According to Feinberg the ASAQS has been in talks with senior government officials and other industry bodies to create solutions that can assist with training and professional support to those charged with delivering these projects. “Training on the use of standards documentation is but one of the areas where Professional Quantity Surveyors can be of assistance,” explains Feinberg. “Deploying Professional Quantity Surveyors to upper echelons in government is one of the mechanisms that can be used to good effect to educate officials on good governance in procurement, bidding and tendering processes, and the complex process of managing the construction process from a cost control point of view.”

Larry Feinberg, Executive Director, Association of South African Quantity Surveyors (ASAQS).

The 'Send Me'call made by President Ramaphosa during his State of the Nation address earlier this year has resonated with many and sparked collaborative action across many economic sectors. Feinberg hopes that this call can be used as a basis for professionals in the built environment to bridge focus areas that traditionally operate in and create solutions that serve the best interest of the public and the fiscus. “Our interactions on several discussion platforms are focused on how to bridge the gap between what Thuma Mina means for the public sector and how our members can assist,” says Feinberg. The ASAQS has consistently promoted the role of a Quantity Surveyors as one that plays a significant part in curbing instances of fraud and wasteful expenditure. “The time for behaviours that – intentionally or unintentionally – resist collaboration is over,” says Feinberg. “It is now time for all of us to share knowledge and expertise, so we can collectively respond to the President’s call.” 

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Business confidence RETREATS After surging from 34 to 45 in the first quarter, the RMB/BER Business Confidence Index (BCI) deteriorated to 39 in the second quarter of 2018. This means that close to three fifths of respondents now regard prevailing business conditions as unsatisfactory – a disappointing outcome, yet probably an accurate reflection of reality.

Ettienne le Roux, Chief Economist at RMB.

T he second-quarter survey was con- ducted between 7 May and 5 June, and included 1 700 business people in the building, manufacturing, retail, wholesale and new vehicle trade sectors. Details The first quarter’s 11-point jump in the BCI was owing mainly to the euphoria surround- ing the change in the country’s political leadership in February. Yet, as we noted at the time, it would be unusual for confidence to be sustained after such a significant jump. Moreover, we felt that as the excitement was likely to wear off, and the reality of still subdued economic activity kicked in, confidence would soften in the second quarter. Our intuition has proved to be correct. Not only did business activity remain disap- pointingly weak – worsening even, in some sectors – but 'Ramaphoria' also faded in the wake of the ever-rising petrol price, the political debate around 'expropriation of land

cent noticeable growth in the sales volumes of furniture, appliances, building materials and other durable goods just about came to a halt in the second quarter. New vehicle dealers also witnessed a noticeable worsening in sales, possibly because consumers had brought their purchases forward to the first quarter to pre- empt paying even more, given the 1% hike in the VAT rate on 1 April – a dynamic that is likely to also have affected retailers selling other expensive consumer goods. Dealer confidence dropped from 52 index points to 35 in the second quarter. A striking deterioration in demand knocked manufacturing confidence from 37 to 27 in the second quarter – a drop that almost wiped out all of the first-quarter improvement in sentiment. Disconcerting is the fact that domestic as well as export sales volumes slackened. And production volumes did not fare much better. The exception in the second quarter were wholesalers. Their confidence jumped from 53 to 62 in the second quarter. We find this upturn difficult to explain, which makes us doubt its staying power. Bottom line Despite the second-quarter decline in the RMB/BER BCI, the trend in business confidence remains upwards, even if only tentatively so. To help preserve and make this increase more of a lasting one, it is important that the political and policy fac- tors currently weighing down on confidence are resolved. In this regard, it certainly would help if the (unnecessary) uncertainty that surrounds both the Mining Charter and the government’s land reform plans is settled. Delivering on the government’s stated priori- ties of, for example, removing the remaining bottlenecks in the telecommunication and tourism sectors would be a significant step to further boosting confidence and helping lift GDP growth onto a higher trajectory. “Acting on these initiatives cannot hap- pen soon enough. This is especially so con- sidering that global headwinds are mounting and domestically, the inflation as well as interest-rate cycles have, in all likelihood, bottomed out,” said Ettienne le Roux, Chief Economist at RMB. 

without compensation' intensifying, and growing signs that the strong synchronised global economic upswing has started to fizzle out. Consequently, despite still low inflation and, related to that, low interest rates, busi- ness sentiment deteriorated in four of the five sectors making up the RMB/BER BCI. After jumping from 34 to 41 in the first quarter, building contractor confidence retracted to 37 in the second quarter. This happened notwithstanding continued and improved activity in the non-residential sector – albeit from heavily depressed levels. Building activity in the residential property market changed very little in the second quarter. Following a large 13-point rise to 42 in the first quarter, retail confidence retreated to 33. Clothing retailers experienced seem- ingly better trading conditions during the second quarter, with food retailers continu- ing to see a recovery in sales relative to last year’s dismal performance. By contrast, re-

“There will be an exciting line-up of new products and services, live demonstrations and free-to-attend seminars at this year’s Electra Mining Africa,” says Gary Corin, Managing Director of Specialised Exhibitions Montgomery, organisers of the show. “New technologies and innovation are influencing the way we do business and it’s imperative that those in the industry keep up-to-date with these trends.” New to this year’s show will be the Artisans Training Centre developed in partnership with The SAJ Competency Training Institute and the South African Equipment Export Council (SACEEC), which will be a fully functional workshop where learners will be demonstrating the skills they learn. Top industry speakers will More than just a show From 10-14 September at the Expo Centre in Nasrec, Johannesburg, leading players in the mining, manufacturing, electrical and power industries will be engaging with visitors and displaying their latest products, services and solutions.

present at the conferences hosted by leading industry associations SAIMM, LEEASA and WIMSA, which will be taking place alongside Electra Mining Africa. Further knowledge and learning will be central to the SAIMechE hosted daily free-to-attend seminars. 

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PROPERTY

Message of confidence in challenging market

Harnessing innovation

Atterbury recently launched its groundbreaking innovation platform to nurture new, inventive ideas.

It is interesting to note that the buoyancy resulting from the appoint- ment of a new president seems to be fading, with the Rand seeing new weakening at the end of the quarter. However, developer confi- dence is strong across the main centres with pockets of optimism and opportunities for solid investment. The Johannesburg office market is under pressure as the vacancy rate nears 13%, the highest vacancy rate recorded since 2010. Grade P office accommodation may have the lowest rate at 5,4%, yet quality stock has witnessed a significant increase of 2,7% compared to the same period in 2017. The inner city and surrounding areas continue to exert the most pressure on the overall vacancy rate. Despite higher vacancies, Johannesburg remains the first-choice location for many corporates, with robust developer interest in the city. Activity continues be be saturated in the Sandon, Rosebank and Waterfall nodes. Economic fundamentals remain a challenge in the Johannesburg industrial market, with recent ABSA PMI figures outlining a tough market in the manufacturing sector. Producers are likely to maintain low inventories and backlogged stock in line with low demand result- ing in a reduced need for storage space. Despite the city’s water crisis, vacancies in several nodes across the Cape Town office market are down to levels rarely seen. That said, there is evidence that the five-year upward trend in rental rates Johannesburg and Durban; and an outline of the South African retail market. The analysis sheds light on several factors impacting development, vacancies and rental growth in the current commercial property landscape. Real estate consulting firm, JLL, has released its South African Q1 2018 market reports for key markets across the country, including the office markets in Johannesburg, Durban and Cape Town; the industrial markets in

Proudly rooted in Pretoria, Atterbury is a leading property inves- tor and developer that operates across South Africa, Africa and Europe. It has introduced AttNovate as a platform and incentive to harness innovative ideas from the staff within its group to improve its business. The vision to channel ‘the power within’ Atterbury through AttNovate began with Armond Boshoff, Atterbury Deputy CEO, who believes passionately that innovative thinking is a necessary busi- ness skill that can, and should, be encouraged and developed. Boshoff recently completed a Masters degree of Business Administration (cum laude) from the University of Oxford and, upon his return to Atterbury, AttNovate was one of the first initia- tives launched. “We have amazing staff and because they know our business so well, they are in a great position to identify opportunities to improve, advance and evolve. Now, we are providing them a way to put their creative thinking into action. I believe there are already many innovative ideas within the business,” says Boshoff. The AttNovate process is straightforward. Any employee can is beginning to slow down, with most areas likely to have reached their peak rates. Within this environment, developer confidence is strong. The pipeline in Cape Town has increased to 63 000 m² in Q1 2018, almost doubling from 35 000 m² in Q4 2017. With projects going ahead, this sends a strong message of confidence in the city. In the Durban industrial market, low vacancy rates were recorded in the period, with analysis pointing to renewed interest in industrial accommodation in the Umbilo and Mobeni nodes. While the development pipeline is currently thinning out, it will be short-lived as recent data from Statistics South Africa indicates industrial building plans equalling 137 159 m 2 have been approved in the first quarter of 2018. The South African retail market is seeing increased pres- sure across all types of shopping centres as trading density growth has slowed further. Shopping centre performance varies significantly, depending on their sensitivity to eco- nomic growth and consumer spending. Smaller retail cen- tres, for instance, continue to outperform the bigger ones. While the average vacancy rate has edged up marginally to 4,2% from 4% in the previous quarter, there is still some positivity in the market. Consumer confidence for Q1 2018 reached a record high of +26 index points, surpassing the 10-year record level of +23 index points (FNB/BER Consum- er Confidence Index).  About JLL MEA Across the Middle East and Africa (MEA) JLL is a leading player in the real estate and hospitality ser- vices markets. The firm has worked in 35 countries across the region and employs over 650 interna- tionally qualified professionals across its offices in Dubai, Abu Dhabi, Riyadh, Jeddah, Al Khobar, Cairo, Casablanca, Johannesburg, Lagos and Nairobi.

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AttNovate is the fertile ground to incubate, develop and test ideas. The big reward for Atterbury’s staff members comes in the form of sharing in the benefits stemming from their idea, with a monetary amount linked directly to the economic value creation that their innovation produces. Atterbury believes in associating with the best employees, part- ners and suppliers, which ensures that everyone benefits together. Supporting this, all associated with Atterbury will benefit from the innovative and entrepreneurial culture that AttNovate fosters and reinforces. “It inspires our employees to think creatively, whether their ideas are incorporated into the business or not. This way of thinking creates an even more stimulating and rewarding workplace and, thus benefitting our people and business overall,” highlights Boshoff. AttNovate was presented to Atterbury personnel in mid-March and officially launched at the beginning of April. There are already several ideas being evaluated for implementation. While there is no limit to the type of innovative ideas that AttNo- vate will consider, Boshoff is particularly interested in finding new ways to make construction cheaper and faster while maintaining or improving its quality. Also, he’s eager to receive ideas for ways to do things differently that reduce operating expenses within Atterbury’s property assets, while creating an excellent experience for building users and upholding, or even extending, the property’s lifecycles. “I’m already impressed with what I have seen so far,” says Boshoff proudly. “AttNovate has ignited a new passion in our business and increased the level of engagement generated by staff. I’m sure it will spark many more great ideas and I’m fired up to see what our staff come up with next.” 

Armond Boshoff, Atterbury Deputy CEO.

propose an idea, no matter how unusual or out-of-the-box, that they believe has real potential benefit for the business. There is no opening or closing date, the initiative is ongoing. Ideas are evalu- ated as they are submitted. Every idea presented and assessed to create value through innovation will receive a prize. However, ideas are just the starting point. These seeds of inspiration and innovation need to be nurtured and cultivated, and

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