Construction World February 2022

Construction FEBRUARY 2022 P U B L I C A T I O N S CROWN COVERING THE WORLD OF CONSTRUCTION

WORLD

JOHN DEERE E300 LC EXCAVATOR

POWER. PERFORMANCE. UPTIME.

UPWARD TREND EXPECTED FOR CONSTRUCTION INDUSTRY IN 2022

INNOVATIVE SPILLWAY DESIGN PUT TO THE TEST

CONTENTS

FEATURES

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04 Energy performance certificates: race against time There is about a year left for building owners to display their EPC certificate. 08 Funding South Africa’s infrastructure spending gap Many factors need to be resolved if SA wants to close this gap. 10 Upward trend expected for construction industry in 2022 Indications are that this year will be good for growth. 14 Zambia’s sun-tracking solar panels a first for sub-Saharan Africa The only site that employs this technology is near Lusaka. 20 Thinking globally to unlock growth in 2022 AECOM is thinking wider to achieve further growth than just in Africa. 22 Concor progresses with Majuba Ash Disposal facility The contractor is over halfway with this plant in Mpumalanga. 24 Innovative spillway put to the test as Garden Route dam overflows Zutari’s duck-bill shaped spillway slows down water flow. 28 GIBB oversees refurbishment of Nalubaale Dam in Uganda The company met deadlines, high technical standards and budgets. 34 Use of rigid inclusions to overcome challenging ground conditions at Clairwood Logistics Park Keller gives an account of how it overcame difficult ground conditions. REGULARS 04 MARKETPLACE 12 PROPERTY 14 ENVIRONMENT & SUSTAINABILITY

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ON THE COVER

In March 2021 John Deere announced the expansion of its construction line-up to 18 countries in Southern and Western Africa. In addition to the John Deere machines, customers in these markets have access to product support through the world-renowned John Deere dealer network. Upon introduction John Deere focused on the 21-ton E210 excavator in its excavator offering. It is now actively marketing the E300 LC, a 30-ton mid-sized excavator. Construction World spoke to Griffiths Makgate, John Deere’s Construction and Forestry Sales Manager: Africa and Middle East about this excavator’s performance, uptime and cost of ownership, but also about John Deere’s pledge to assist customers to keep machines running. Turn to page 16

18 CIVIL ENGINEERING 24 DAMS & RESERVOIRS 32 GEOTECHNICAL ENGINEERING

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COMMENT

There seems to be a sense of optimism in the construction sector at the outset of 2022. This is because there is increased government-led infrastructure and private sector spend on the cards – apparent from various surveys and studies that have been conducted.

four key areas: digital transformation, implementation of LEAN principles (value, value stream, flow, pull, and perfection), expansion of business offering and expansion of geographic reach. Despite the positivity, there are factors about which respondents are worried: margin pressures, lack of order book pipeline, supply chain reliability (a direct consequence of the pandemic) and the apparent lack of productivity growth. The indication from government that it will invest in larger numbers of infrastructure projects is particularly encouraging as this will allow companies to develop a project pipeline. However, a negligible number of respondents believe that public- private partnerships (PPPs) will unlock investment in the industry, so it is unlikely that South Africa will see the significant return of PPPs. Stay safe Wilhelm du Plessis Editor

was preceded by a fall of 1% and 12% in 2018 and 2019 respectively. The indication is that things will turn in 2022 – at last. This is clear from surveys such as the Afrimat Construction Index and the RMB/BER Business Confidence Index. These surveys and indices are obviously retrospective but give an indication of the conditions during the previous quarter and the confidence (or lack thereof ) in the market for the quarter that is to follow. The 2022 Construction Industry Outlook survey conducted by RIB CCS in Africa and the Middle East in the final quarter of 2021 is especially positive. It maintains that 68% of survey respondents expect that there will be an increase in project revenue. These respondents are both listed and unlisted. The survey goes into some detail: more than half of the respondents expect that project margins will be healthy. According to the study’s respondents, the industry will focus on

T his is positive news for an industry that has been embattled for the greater part of five years. The challenges faced by the construction sector were severely aggravated by the COVID-19 pandemic and saw the total value of building plans fall by some 37% year-on-year in the first 11 months of 2020. Albeit much less, this

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MARKETPLACE

Owners of buildings in South Africa have exactly one year left to obtain and prominently display an Energy Performance Certificate (EPC) or risk a fine of R5m, five years imprisonment or both. ENERGY PERFORMANCE CERTIFICATES: RACE AGAINST TIME

T he regulations, under the National Energy Act, were gazetted a year ago, on 8 December 2020, and apply until 7 December 2022, meaning that building owners who have not acted have exactly a year left in which to comply. The regulations require that owners of four categories of buildings must obtain an EPC, which in general terms, gives a building a rating based on the amount of energy consumed per square metre. The South African National Energy Development Institute (SANEDI), which maintains an EPC register on behalf of the Department of Mineral Resources and Energy (DMRE), has urged building owners to take all necessary steps to comply with EPC regulations, emphasising that compliance affords them, and the country a range of benefits. SANEDI General Manager for Energy Efficiency, Barry Bredenkamp says compliance with EPC regulations will enable building owners to identify where they could introduce energy efficiency measures that would, in turn,

save them money and possibly increase the value of their buildings. “An energy efficient building is generally a better environment in which to work and is significantly less expensive to run, so an owner can potentially justify a higher price if they want to sell or impose a higher rental for office space,” explains Bredenkamp. “The more energy efficient buildings become, the more they will contribute to taking electricity demand off the national grid. This could help to ease loadshedding, and by reducing carbon emissions, building owners will be helping our country to meet its international obligations to combat climate change.” The categories that currently need to comply are offices, entertainment facilities, educational institution buildings, and places of public assembly such as sporting facilities and community centres. The regulations apply to government buildings of more than 1 000 m 2 and privately-owned buildings of more than 2 000 m 2 . An accurate figure of the number of buildings covered by the regulations is not available but Bredenkamp says estimates vary between 150 000 and 250 000 buildings that need to comply with the regulations. An EPC rates buildings on a scale of A to G in a similar way to how appliances are rated for their energy efficiency. A D-rating is the benchmark rating that is in line with the national building regulations. An EPC must be prominently displayed in the foyer of a building. “The regulations do provide penalties for any particular rating lower than an A-rating, but the primary objective in obliging building owners to obtain EPCs is to make them aware of their energy consumption and encourage them to be more energy efficient if their EPC rating is poor,” explains Bredenkamp. “Buildings are responsible for between 30% and 40% of carbon emissions worldwide. EPC programmes are commonplace in many parts of the world and some cases even extend right down to the level of residential buildings, and they are one of many energy efficiency measures currently being implemented to drive down fossil fuel consumption and carbon emissions worldwide. “We had cause to celebrate when South Africa introduced EPC international best-practice a year ago, and we are hoping that many more of our building owners will see the value in energy efficiency.” Bredenkamp adds that the process of obtaining an EPC has significant job creation potential. “An EPC must be issued by a South African National Accreditation System accredited inspection body. With many thousands of buildings to be rated, inspection bodies will almost certainly need to employ significant numbers of individuals to assist them in gathering the required data, measurements and related information, for their final review and sign-off.” 

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For more than 10 years, Master Builders’ AssociationWestern Cape (MBAWC) has granted bursaries to over 150 students to further their studies. MBAWC bursaries are given to applicants pursuing studies in the built environment and cover tuition only. Student Mishka van Schoor (above), talks about her tertiary education journey and the many benefits of being accepted onto the bursary programme. MBAWC’s BURSARIES HELP STUDENTS BUILD THEIR FUTURES

V an Schoor discovered the MBAWC bursary programme through a family member whose company is registered with MBAWC. She has been studying through the bursary programme since her second year at Cape Peninsula University of Technology (CPUT) where she plans to graduate from as a Professional Quantity Surveyor (PQS). The bursary covers tuition only and preference is given to family members or employees of MBAWC’s member companies. In addition to under-graduate students, it is granted to first-year as well as post-graduate students. It’s important to note that many students who studied through the bursary programme are now employed by MBAWC members and other companies in the built environment. Van Schoor says, “I was delighted to be approved to receive the bursary. Tertiary education costs can have a substantial impact on a family’s financial situation, and that’s excluding extra costs such as travel and supplies. “Although it can be a little stressful to know that your studies are being funded, this also serves as a strong motivation to do your best in your studies. It pushes you to work harder and achieve the best results possible,” she says. A bursary from MBAWC offers other benefits too. One of the most important tools in the construction industry is the ability to network; the MBAWC bursary programme gives students access to professionals in the field – this can be highly beneficial when it comes time to seek employment. Van Schoor also says that MBAWC assisted by putting her in touch with professionals who could offer advice and guidance on certain subjects in her course. “Studying is not easy and can present many challenges,” Van Schoor says. “This year, I encountered several issues with my university and felt demotivated. However, I got

the chance to speak to another student from a different university. I realised that he was facing many of the same problems and this made me understand that I was not alone in the situation. If students have any questions or concerns, they can easily connect with MBAWC for assistance.” COVID-19 has had a significant impact on all students and has created many obstacles on campuses around the country. Van Schoor says she was able to address her concerns and struggles by seeking advice and motivation from MBAWC, particularly Letitia van Rensburg, Training Officer at MBAWC, who Van Schoor says was always ready to listen and offer advice. “I have now completed my Advanced Diploma at CPUT and currently seeking employment,” she says. “My goal is to secure a position at a quantity surveying firm. This was a decision that took some time and thought to finalise. I had to decide between getting practical experience by applying for a position as a site quantity surveyor, or working at a quantity surveying firm, where I would not be as involved on site.” As her long-term goal is to become a registered PQS, the best way to achieve her goal is to work for a quantity surveying firm that can prepare her for the obstacles she will face in completing her modules and required tasks. Van Schoor says, “I would recommend this bursary, because unlike other bursary providers, the MBAWC offers more than funding. The organisation gives students an opportunity to grow their connections with professionals and other students. It is an amazing opportunity and can be a great motivator for students to do well in their studies. The MBAWC has an interest in helping students achieve their goals, which is about more than just providing funding.” 

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MARKET PLACE

JOHNSON CONTROLS ANNOUNCES GRADUATION CLASS AND SECOND INTAKE OF LEARNERS

Johnson Controls International (JCI), a Multinational Building Technology company that designs, manufactures and installs systems in heating, ventilation and air conditioning (HVAC), including Smart Building technology has announced the Graduation Class of 2021. This successful milestone is followed by the start of its second annual local Learnership initiative, designed to address the dearth of skills in the local HVAC market.

T he programme was launched last year with a focus on developing human capacity and empowerment through the development of technical skills in South Africa. Last year, Johnson Controls successfully enrolled a total of 25 learners in the inaugural programme and has hailed the initiative a resounding success. The Learnership provides young people from underprivileged communities from all walks of life an

opportunity to gain HVAC skills, which in turn increases the skills pool and promotes diversity within the industry. The initiative is driven by Archie Makatini, (Regional General Manager) for the Sub-Saharan Africa region, in partnership with Lynn Millin (his HR partner) and the program focuses on skills development that enables learners to build a foundation to pursue careers in the HVAC industry. Makatini and Millin both proudly noted that last year’s

COPING WITH ADDICTION IN THE WORKPLACE

T he pandemic lockdowns of 2020 were tough and tight, with the government clamping down on smoking and drinking. As a result, many people turned to other forms of substance abuse as a way of coping. Now, after a more than a year of remote working, employees are returning to the office with additional issues that were either not there before the pandemic, or made worse by it. According to Nicol Myburgh, Head: HCM Business Unit at CRS Technologies, this puts the company in

The policy should unpack what the company defines as substance abuse and what happens if an employee is caught. In environments such as manufacturing where employees are required to operate heavy machinery, they could present a clear and present danger if they are intoxicated, but this wouldn’t necessarily be the case in the corporate environment. “Addiction is also now classified as a disease, so it’s less of a discipline issue and more of an incapacity,” says Myburgh. “If someone has a disease

a tough position. “From a legal perspective, a company can’t enforce a rule if they don’t have it in the first place, so draft a policy around substance abuse that clearly outlines what the company stance is, and what its obligations are,” he advises. “You need to be mindful of how substance abuse can impact on other people as well as on safety, and the policy has to reflect all these elements. It has to make sense for the specific industry or vertical in which your company operates.”

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skills of our salespeople, as they need to understand the technology and products that we sell in order to provide effective value proposition when necessary. This will afford us the opportunity to have a competitive advantage within our markets and industry in order to achieve our strategic plans and desired business outcomes.” Once they have completed the programme, Mr. Makatini says the learners will be equipped to uplift themselves by being better positioned for employment in the HVAC industry. This also has the wider benefit of uplifting their families and communities. He also alluded to the fact that there are plans to feed the local learnership programme into Johnson Controls’ International Sales Academy, where permanently employed staff, including graduates of the learnership programme that have been employed by the company, can further develop their skills, taking them to the next level of leadership experience within the HVAC industry. “The unemployment levels among our youth are currently too high. We would like to see the rest of the HVAC industry also coming to the party and support the much-needed drive for human capacity development. Initiatives such as this can set up young people for a lifetime of success,” says Makatini. “Learnership and internship programmes must be part of a wider organisational strategy to create a high-performance culture, where talent development drives real social impact. We are very proud of Johnson Controls for giving our learners a chance to “spread their wings” through proper mentorship and guidance.” 

learnership yielded a 100% pass rate, with four candidates being subsequently placed in permanent positions at Johnson Controls throughout the country. The remainder are currently receiving additional training as part of a robust job rotation scheme. Lynn Millin notably asserts that this year the JCI is onboarding a further 23 skilled learners from previously disadvantaged and diverse backgrounds who either have had no previous work experience or opportunities for advanced studies. Some of them are technical college graduates, while some have been referred to by managers within the Johnson Controls group. The majority of these learners will complete apprenticeships with the Air Conditioning and Refrigeration Academy (ACRA), in Kempton Park, as part of the curriculum. The curriculum also includes advanced modules that focus on oral communication; interpretation of information from text; analysis of shape and dimensional space; mathematical investigation and monitoring of financial aspects; project initiation and the management thereof; administration processes and project documentation management to mention a few areas. It comprises a theoretical and practical component where each learner is assigned a coach and mentor for the duration of the training. JCI is in the forefront and strongly believes in effective mentorship programs that foster to connect people, increase knowledge and build skills for future personal goals and milestones. In the last month of the learnership programme, the learners receive certification. “Additionally, the learnership has been redesigned this year to include a wider spectrum of skills, with a greater focus on technical sales. This is not only in line with supporting the business and its needs, but it’s instrumental as well in providing sales acumen

growth opportunities for the learners,” says Makatini. “We

wanted to align the curriculum with skills requirements of the company, as the learners will be brought into the business to ensure that we have an adequate talent pool to draw from. Essentially, it’s a win-win situation,” he explained. “Our customers today are extremely agile, well-educated and technologically advanced. Therefore, we are looking to enhance the technical or disability, there are obligations that have to be met from the employer’s side. They need to assist the employee reasonably if they have these issues and can only dismiss someone after a long list of steps has been followed.” However, there are caveats. If an employee comes to the office under the influence and denies having a problem, then they don’t necessarily fall within the disease or disability framework – they are breaking the rules. You can then discipline them by carrying out the relevant processes, which could lead to a dismissal. “It all comes down to a simple

“Learnership and internship programmes must be part of a wider organisational strategy to create a high-performance culture, where talent development drives real social impact.”

and company expectations, and build in a plan to support employees who are struggling. 

question – if a person admits to an addiction, then they are recognised as having a disease and are accorded the right levels of support; if they don’t, they can be disciplined,” concludes Myburgh. “Most people are inclined to not admit to being an addict which puts them in a precarious position. You should, however, keep in mind that when addiction is suspected it should still be considered in the actions that follow.” To minimise the impact of addiction in the workplace, and to provide people with the right support, build a robust policy that outlines all the requirements

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MARKETPLACE

FUNDING SOUTH AFRICA’S INFRASTRUCTURE SPENDING GAP Government is making critical headway in paving the way for private sector involvement in infrastructure investment, but there are outstanding factors that still need to be resolved if South Africa is to close its substantial infrastructure investment gap. By Conway Williams – Head of Credit, Prescient Investment Management

“Infrastructure development is fundamental to economic growth and poverty reduction.” Conway Williams – Head of Credit, Prescient Investment Management that a simple doubling of this meagre investment, a material amount of capital can be unlocked for the infrastructure ecosystem, and will have a material economic and developmental impact. The current state of play For the private sector to take on a more active role, it must be confident that the government is moving in the right direction. A key change that engenders confidence is the single-entry point for all infrastructure initiatives in South Africa, created by the Infrastructure Investment Office (IIO). Eliminating the previously scattered approach, the idea is that the IIO builds a concentrated infrastructure pipeline and provides greater transparency on the ins and outs of projects i.e. their phases of development, how funding will be raised and how the process will work. As mentioned above, one area that still raises concern for investors is the lack of a credible pipeline or a pipeline that has the appropriate governmental backing. While there is much talk about the total investment into the economy and the amount needed from an infrastructure perspective pre-and post-feasibility stage, the visibility of a credible and bankable pipeline has been a very slow- moving approach to date and still raises many question marks. Further to this, additional legal and technical expertise are needed to assess projects from a feasibility perspective, as well as various frameworks, industry and infrastructure bodies to facilitate an ease of doing business. It is equally important that political and regulatory certainty follow suit.

J ust over a year ago, the Government’s Reconstruction and Recovery Plan identified infrastructure development as a key generator of poverty alleviation, job creation and economic growth. In a similar timeframe, exacerbated by the pandemic, investment in South African infrastructure fell from an already dismal 18% in 2019/20 to just 14% in 2020/21, compared to the 30% ‘benchmark’ of our emerging market peers. A step in the right direction, the establishment of the Investment and Infrastructure Office (IIO) aims to improve collaboration between all industry stakeholders such as development and commercial banks and financiers, as well as the private sector. Chaired by the President and supported by the Ministry of Public Works, it provides a coordinated approach to speed up the planning, implementation and delivery of the country’s infrastructure projects. But while the foundations have been laid, the government will only have the private sector’s full support once several stumbling blocks that still exist are addressed, including greater political and regulatory certainty and a credible, bankable pipeline. How did we get here? Until now, there has been a substantial underspend on national infrastructure, by all spheres of government, from SOEs to municipalities. This, in our view, can be attributed to a lack of national direction and scattered oversight and governance, which have led to local authorities being unable to deliver proposed infrastructure projects to a feasible state. Further to this, the lack of a credible infrastructure pipeline, understanding of the relevant roles and responsibility, and how risk sharing will work, has hindered the investment

by relevant parties. Combined with this underspend is the South African government’s current fiscal position, which affords limited capacity for the government to successfully carry out all projects on the table. The latest infrastructure plan outlines an investment of R2,3 trillion needed, with a funding gap of around half a trillion rand noted. In looking at the reported project pipeline presented to the market, the project numbers themselves reveal the dire consequences for the everyday South African, if not executed on. Of 276 inter-provincial infrastructure projects currently in the pipeline, only 88 (32%) have reached post-feasibility phase. Taking this one step further, our analysis shows that almost two thirds (64%) are priority type items that fall under three main categories of human settlements (housing), transport; and water and sanitation. These projects alone, if successfully implemented, will make a meaningful difference to poverty alleviation on a national scale, by attracting money into the economy, creating jobs and improving access to basic services. With the government hamstrung in its ability to deliver on its infrastructure priorities, drawing on private sector investments is the only viable answer to an improved economic outlook. At present, and based off recent Association for Savings in South Africa (ASISA) data, assets under management by members total cR4,4 trillion, with exposure to unlisted infrastructure currently at a mere 2,3% (cR102b) with a further 4% exposure to listed infrastructure bonds (R176b). Given the sheer size of this industry (in excess of R6,2 trillion, per ASISA figures), by addressing investor requirements as a means to allow for further investment by the private sector,

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when South Africans are facing ongoing blackouts due to load shedding. What’s more, these projects have created jobs in these communities, enabled local procurement spend, and importantly, the projects have invested meaningfully in the local communities. Infrastructure development is fundamental to economic growth and poverty reduction. The results to date of the above-mentioned fund help to illustrate the potential longer-term impact from the private sector. And for now, while the current infrastructure plan is enough to put the private sector’s initial fears to rest, the success of the next implementation stage is of critical importance. Where there is policy certainty and a framework that works, it makes it easier for the private sector to raise and invest capital in infrastructure and ultimately improve the lives of everyday South Africans.  mentorship from their experienced facilitators as they would in a classroom environment. This is provided at regular intervals via live coaching platforms, such as Zoom, Microsoft Teams and Skype, as well as telephonically and via e-mail. Learners write their exams on a quarterly basis at Tjeka Training Matters’ facilities and hand in their Site Workbooks, a record of practical on the job learning, to facilitators for assessment. Depending on the progress made, they are able to then embark on the next batch of theoretical learning modules. “This is yet another example of how we are able to constantly adapt to the requirements of the industry to provide unrivalled construction training. Tjeka Leadership Academy has trained well over 3 000 construction supervisors for South African contractors since registering our first Learnership in 2005. NQF Level 4 Foremen and NQF Level 5 Site Agents who have been trained by the academy are able to plan, lead, organise and control to mitigate errors and improve productivity on construction worksites. This provides companies with a strategic competitive edge in the market and improves their profitability,” Brummer concludes. 

this will compel all stakeholders to engage constructively, and in doing so understand the roles and responsibilities of each party, including what sort of capital is to be provided, under what circumstances, who will take first losses should these arise, and when. Prescient Clean Energy and Infrastructure Fund While investing in infrastructure is a key driver of economic growth and poverty alleviation in South Africa, for the private sector it is just as vital to be able to make an impact without compromising on client returns. Prescient’s Clean Energy and Infrastructure Fund is a real example of a fund doing just that. To date it has deployed just short of R2b of capital that supports 17 wind, solar and hydro energy projects. It has added 1,5 GW of clean power to the grid, servicing between 50-100 000 homes at a time were not operational. Considering the flexibil ity it offered learners, many more people enrolled for the distance training. Based on demand, Tjeka Leadership Academy also decided to launch distance learning for NQF Level 4 training for experienced construction Foremen. This method of training has since become the preferred means of completing Registered National Qual ifications at NQF Level 4 and Level 5 through Tjeka Leadership Academy. “A significant benefit of this approach to training is that individuals can complete their qual ifications faster than they would in a classroom environment. They are able to work through the material whenever they can, as opposed to a classroom environment where the pace of completion is governed by that of less experienced learners. This has helped to significantly accelerate their growth and development as construction leaders and it now seems to have become the new norm to complete supervisory training at these levels via distance learning,” Kobus Brummer, Manager of Tjeka Leadership Academy, says. However, it is merely the method of delivering the course content that has changed. Learners still receive the same quality instruction and

This means that an appropriate governance framework must be put in place to eradicate the negatives that have hindered the infrastructure rollout thus far. Private sector investors, and importantly, those with fiduciary responsibilities, have a duty of care when managing client funds. In our view, investing without factoring in the stability and reliability of regulatory and legislative frameworks is tantamount reckless investing. A blended finance approach is key To make infrastructure investment more attractive to the private sector, we are of the view that a blended finance approach that makes use of public finance, developmental financiers and private finance will go a long way in creating the much-needed certainty on roles and responsibilities, and on risk-sharing, for the private sector. Simplistically, C onstruction Tenders are increasingly requiring evidence that Managers and Supervisors have completed the relevant National Qual ifications. CVs of an experienced workforce alone are no longer accepted, although a large number of Construction Managers/ Site Agents and Foremen have risen up the ranks in the construction industry because of the extensive experience they have gained in the workplace. Tjeka Leadership Academy’s distance learning programmes have enabled learners to accelerate the completion of their construction supervisory skills training at a National Qual ifications Framework (NQF) Level 4 and Level 5. The distance learning programmes were initially born out of a solution devised by Tjeka Leadership Academy to provide NQF Level 5 Construction Management/ Site Agent training during the hard lockdown that was implemented in the beginning of 2020 to contain the spread of the COVID-19 virus. Several construction professionals approached the academy to devise a way for them to work towards gaining this qual ification while they had time to learn during the extended period that worksites

REVOLUTIONISING CONSTRUCTION SUPERVISORY TRAINING ATNQF LEVEL 4 AND LEVEL 5

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MARKETPLACE

UPWARD TREND EXPECTED FOR CONSTRUCTION INDUSTRY IN 2022

With increased government-led infrastructure spend and greater private sector spend on the cards for 2022, the construction industry is more positive about the year ahead. This is one of the key insights gleaned from a 2022 Construction Industry Outlook survey conducted by RIB CCS in Africa and the Middle East

in the final quarter of 2021. A ndrew Skudder, RIB CCS CEO, says this is good news for an industry that has experienced extreme pressure over the past few years. “In South Africa alone, the total value of plans passed for building construction fell by 37% year-on-year in the first eleven months of 2020, preceded by annual declines of 1,1% and 11.8% and in 2018 and 2019 respectively. “The picture has been similarly bleak for the industry in the Middle East and North Africa (MENA) region, which has been in decline since the fall in oil prices in 2014, exacerbated by the COVID-19 pandemic in 2020.” companies) expect an increase in project revenue, with 17% of these expecting an increase of 15% or more. Only 10% of the respondents expected a decrease in revenues in the year ahead. Skudder says 51% of respondents expect project margins to be relatively healthy, with 17% expecting them to be 10% or higher. “Margin pressure was a theme in 2021 and these results clearly point to better prospects for 2022.” Key strategic initiatives for 2022 The top four key strategic initiatives that survey respondents will be focusing on in 2022 include digital transformation (24%), implementation of LEAN construction principles (23%), expansion of business offerings (18%) and expansion of geographic reach (14%). Skudder says these initiatives give a clear picture of how respondents aim to enhance their businesses’ productivity and efficiency. “We also asked them what their areas of innovation are for 2022 are Better revenues, project pipelines and margins expected Looking to 2022, 68% of survey respondents (listed and unlisted

– 25% of respondents said they would be focusing on digital innovation, 19% on organisational innovation and 17% on process innovation. “These measures are also all about driving efficiency in the industry and improving the way construction companies operate. It is also interesting to note the focus on organisational innovation, which is not just about processes and technology, but about organisational models that need to evolve to deal with the challenges the industry is facing at the moment.” Impact of COVID-19 Asked whether the pandemic affected their businesses negatively in 2021, 63% of respondents noted that it had a significant impact. This is down from 2020 when an earlier survey conducted by RIB CCS reported that 85% of respondents indicated that more than 80% of their projects had been affected by delays or disruptions due to COVID-19. Looking ahead, there seems to be greater optimism, with less respondents (41%) indicating that they expect the pandemic to continue affecting their Respondents highlighted the greatest industry challenges in 2021 as margin pressures (21%), lack of order book pipeline (19%), supply chain reliability (17%) and lack of productivity growth (15%). “Margin pressures and the lack of an order book pipeline speak to an industry characterised by numerous players all vying for a limited number of projects. The third greatest issue – supply chain reliability – has been identified as a global issue, with supply chains around the world affected by lockdowns and work stoppages. The lack of productivity growth has been a major theme for the businesses negatively in 2022. Key industry concerns

“The top four key strategic initiatives that survey respondents will be focusing on in 2022 include digital transformation (24%), implementation of LEAN construction principles (23%), expansion of business offerings (18%) and expansion of geographic reach (14%).” industry over the past two decades,” adds Skudder. Interestingly, when asked about their concerns for 2022, these were identical to industry challenges identified in 2021. So, even though respondents are more positive about the year ahead, they continue to have similar concerns. Anticipated spend fuels industry positivity Understandably, the highly anticipated increase in government-led infrastructure spend, as well as an expected increase in private sector work, are what 26% of respondents are most looking forward to in 2022. “Government’s commitment to infrastructure spend is a particularly important factor in driving confidence in the industry, as is having visibility of project pipeline,” says Skudder. Andrew Skudder, RIB CCS CEO

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integrated technology platforms (15%). Skudder says with cyber security a real issue in the industry, it is not surprising that respondents are interested in investing in cloud computing which lowers the risks related to cyber threats and has the added advantage of always- on accessibility. “The interest in deploying BIM abilities indicates a maturing of the construction industry amongst respondents. That said, BIM is largely used in the design and construction review process in the regions surveyed, and not in the planning and execution stages of projects, which take time and cost into consideration and allow users to conduct 5D simulations, run scenarios and explore constructability analysis.” Worldwide trend towards digitisation Skudder says the interest in mobile technology mirrors a similar theme globally. “There is a worldwide move to digitise field operations and site-based activities such as site diaries, timesheets, defect management, quality control and safety procedures. Mobile technology is growing and offers a way to link

operations with an integrated technology platform such as MTWO, providing users with one source of the truth.” Commenting on 15% of respondents indicating an interest in investing in integrated technology platforms, Skudder says there are two key plays in the software industry: a toolset play and a platform play. “The Toolset play is really where clients buy multiple tools for specific jobs such as an estimating or planning tool versus the platform play, which is the investment in an integrated platform connecting all people, processes and data within the organisation onto one platform. It is interesting to see that some respondents are moving from a tool mindset to integrated platform mindset, which is another indication of a maturing industry. In summing up the findings of the survey, Skudder says the more positive outlook for 2022 is heartening. “Greater expected activity in the year ahead bodes well for the industry and for the various economies in Africa and the Middle East. Closer to home, it translates into much- needed employment opportunities, particularly in South Africa.” 

Notably, a mere 8% of respondents are excited about public-private partnerships (PPPs). “While PPPs are a great way to unlock investment in the industry, the low score probably relates to an overall lack of confidence in PPPs and government’s strategy around them,” notes Skudder. Technology focus on the rise Skudder says 49% of survey respondents indicated they would be spending between 1% and 3% or more on information technology (IT) in the year ahead, with 54% indicating their anticipated spend will be greater than in 2021. This is closely aligned with the global annual average IT spend in the industry of 1,5%. “It is interesting to note that 43% of respondents suggested they would be spending more than 2% on IT and 21% more than 3%, suggesting that the Africa and Middle East regions are taking IT spend seriously,” says Skudder. When asked what digital technologies they intend to invest in, respondents singled out cloud computing (22%), building information modelling (BIM) (19%), mobile technology (17%) and

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PROPERTY

INCREASED DEMAND FOR STRATEGIC CONSULTING A KEY DRIVER OF THE PROPERTY MARKET IN 2022 Broll Property Group is seeing an increased demand from its diverse client base for holistic strategic consulting. This is the message from Broll Group CEO MalcolmHorne (above) as the leading Pan- African professional real-estate services provider enters 2022. “We are seeing a lot of strategic consulting work coming to the fore, which speaks to our core strength of being able to build skilled solutions that are structured and integrated to unlock value along the entire property chain,” says Horne.

T rends likely to impact the market in the New Year are a continuation of the drive to repurpose office space as many companies adopt a hybrid model of allowing their employees to return to the office safely. “We have built up an entire team in this regard that has delivered some amazing results, and it is a space that will continue to present significant opportunities going forward.” The beginning of 2021 saw Broll announce its new five- year plan and reinvigorated group strategy for growth and innovation, which Horne highlights was developed well before COVID-19 disrupted the economy. “The fact that we had this strategy in place before the pandemic allowed us to really get to grips with it and the team that we had put in place. We have made great strides in aligning both the group and divisional layers of that strategy, and understand what we need to do in order to get to where we want to go in 2022.” Dealing with the impact of COVID-19 and ensuring long- term viability in terms of the future involves two different strategic outlooks, stresses Horne. “On the one hand, we want to strengthen the core of the group, while on the other we want to be able to leverage off of that in being both

innovative and proactive in our service offering.” To this end, Malcolm highlights the launch of Broll Tech in March, which will focus on inhouse PropTech solutions as well as those developed in conjunction with specific partners. “Technology is a key focus of everything that we do. I am also excited about the energy space, where we are likely to see a lot of innovation in the near future. We are also looking to expand our business further into Africa by adopting a franchise model. In addition, we are bolstering our transaction business in terms of both leasing and sales in the commercial and industrial sectors,” says Horne. Broll is also increasing the footprint of its facilities management business, where it is actively focusing on small business and enterprise development. “We now obviously have both a macro and a divisional strategy in each area of our business. This means that what we are going to see in 2022 is a continuation of executing that strategy, which again talks to strengthening the core in terms of how we optimise our current service offerings. That is very much still going to be the key focus in continuing the journey we embarked on over a year ago,” says Horne. “There is a lot to be excited about in 2022, particularly

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at present that will go a long way to demystify COVID-19, which is critical as Omicron becomes the predominant variant, and this will be hugely positive for the property industry in general,” says Horne. “We are seeing international companies entering the market again, which require certainty of advice and direction, as well as specific knowledge and skills. This represents a major growth opportunity in terms of our risk management capability,” says Horne. Looking back at 2021, he notes that it was a particularly difficult year, especially with the unprecedented unrest in mid-July in KwaZulu-Natal and Gauteng. “We have designed our strategy for the long-term, which allowed us to deal with the situation proactively. Again, it speaks to strengthening our core in how we cope with such unplanned-for contingencies and ensure that the group is sufficiently flexible and adaptable. We certainly rose to the challenge as a business, but also by forging strong relationships with our clients and our communities,” says Horne. “Yes, what happened in July last year tested us to an extreme extent, but it was testament to our strategy that we were able to weather the storm, and that really bodes well for us in 2022. I think people do not realise how much pressure both employees and businesses have been under for 20+ months to date. We are not under the illusion that this year will be without its own challenges, but we will ensure that we are refreshed and reinvigorated to be able to meet them head on,” concludes Horne. 

from the viewpoint as a country and as an economy. Hopefully the vaccination rollout continues to accelerate, especially with more companies looking at mandatory policies. There is a lot of credible information in the market

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ENVIRONMENT & SUSTAINABILITY

ZAMBIA’s SUN-TRACKING SOLAR PANELS A FIRST FOR SUB-SAHARAN AFRICA

E nel Green Power’s (EGP) Ngonye solar plant, which is located in the Lusaka South Multi Facility Economic Zone, uses tracking systems that feature solar PV (photovoltaic) panels to track the movement of the sun through the day, capturing sunlight and converting the energy into electricity. The only site in sub-Saharan Africa to use tracking technology from Convert Italia, the Ngonye plant was compelled to use it when the designated land from the solar farm was not large enough to accommodate the planned infrastructure. The tracking of the sun is achieved via Global Positioning Satellite (GPS) connected to an Electronic Tracker Control Board (ETCB). The integrated GPS device acquires both date and time. This information, along with astronomical clock algorithms, is sufficient to identify and properly track the sun's position. Each single axis tracker automatically tracks the sun's

electricity utility, under an existing 25-year Power Purchase Agreement (PPA). EGP Zambia’s Kachinga-Wankunda Phiri says the plant is one of only two large scale, grid-connected renewable energy facilities operating in the country. “To date, there has only been one procurement round in Zambia leading to projects achieving commercial operations – The Scaling Solar Program – which was managed by the IDC in partnership with the International Finance Corporation (IFC),” he says. Due to Zambia’s lack of a long-term procurement programme for renewables, EGP Zambia is focused on growing its commercial and industrial pipeline. “Our goal is to provide tailormade solutions to commercial and industrial customers that will allow them to reduce their carbon footprints, achieve their sustainability goals and facilitate business continuity by ensuring a stable energy supply,” concludes Phiri. 

East - West movement during the day via the ETCB. A single control board controls a maximum of 10 structures with a photovoltaic energy capacity of about 97,5 kWp. The primary benefit of the tracking system is that it improves plant efficiency by increasing energy output as it lengthens the plants peak generation period above similar sized fixed axis plants. Commissioned in 2019, the Ngonye plant is a joint venture between EGP and the Industrial Development Corporation (IDC). The operation has the capacity to supply 34 MW of energy to ZESCO, the national

The only site in sub-Saharan Africa to use tracking technology from Convert Italia, the Ngonye plant was compelled to use it when the designated land from the solar farm was not large enough to accommodate the planned infrastructure.

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THE RIGHT LABOUR PARTNER IS CRITICAL FOR IPP BIDDERS

will help to alleviate problems and potential industrial action down the line. “In such a volatile environment it is essential to lock these details in from the outset. Any project delays, such as strikes or unrest, could result in power producers being unable to connect on time, which in turn will result in penalties. Oxyon can assist with identifying key stakeholders ahead of time, and we have vast experience and existing relationships with leaders in these communities, so we can help new IPPs to budget effectively and accurately and guide projects from beginning to end,” says Sookhun. In addition, as part of Workforce Holdings, Oxyon has the collaborative development. Through partnerships within the holding company, Oxyon can provide training to upskill employees through qualifications that will uplift communities and enable them to find employment once projects conclude. In addition, IPPs are able to outsource all of the admin tasks around labourers, including human resources, payroll, industrial relations and more. “In projects such as the construction of IPP plants, any delays could cause significant dents in profitability and viability. Having a local partner is essential in smoothing over potential bumps and hazards throughout the process, from bidding through to establishing, distribution and maintenance,” Sookhun concludes.  capability to create sustainable employment and community

must be sourced locally. Since the components and technology to build the plants must be imported, meeting local procurement requirements means sourcing labour locally. However, many of the successful bidders are global entities that may not fully understand the intricacies of the South African market and labour force,” says Viren Sookhun (pictured) , MD at Oxyon People Solutions. “All of the IPP projects are being constructed in rural areas, where there is often low income, high rates of unemployment and a lack of service delivery. There is therefore significant potential for these projects to create friction if they are not appropriately handled. Successfully negotiating with local communities is critical, which requires established relationships with the community leaders and ward councillors,” he adds. One of the most significant challenges is that labour costs in these areas can be a lot higher than anticipated, because each community may demand different wages, which are often a lot higher than the minimum wage that is budgeted for. Having the right partner is key to successfully engaging labour and businesses to find a middle ground that is agreed upon in writing, which in Mpumalanga, and will be offered to the private sector for purposes of generating electricity from renewable technologies for own consumption or for sale to third parties. Mpumalanga has the most coal-fired plants by far with established Transmission and Distribution infrastructure. “This move to deploy renewable power in Mpumalanga, will play a key role in South Africa’s Just Energy Transition as this province will become a priority area for green investment, thereby increasing South Africa’s clean energy portfol io and allowing for higher levels of renewable power penetration,” explained Mercia Grimbeek, Chair of SAWEA. The Association went

A s the 25 successful preferred bidders from Bid Window 5 of the Renewable Energy IPP Procurement Programme (REIPPPP) prepare for financial closure, budgeting accurately becomes critical. During the upcoming construction phase, the labour component makes up a significant portion of this budget, but getting this costing right can prove challenging. Oxyon People Solutions, specialists in recruitment around energy and utilities, are geared to assist. “One of the requirements of the project is that 40% of the total cost R esponding to the statement issued by Eskom recently, the South Africa Wind Energy Association (SAWEA) has come out in support of the Utility’s announcement to initiate an auction process that will unlock and make land alongside its power stations, in the Mpumalanga, available to private investors for renewable power generation. This will remove significant barriers and increase the country’s energy availability factor, as it will drive the production of much- needed new clean power in a corner of the country that has always been home to coal. Eskom has stated that the land will be available for lease in a competitive bidding process, initially

ESKOM LAND FOR RENEWABLE ENERGY DEVELOPMENT INMPUMALANGA

on to explain that renewable energy independent power

producers (IPPs), will now have the opportunity to work alongside the Systems Operator to get more green electrons on the grid, relatively quickly as the maximum amount of electricity generation capacity per project will be capped at 100 MW, thereby negating the need for additional l icensing. The lease wi l l be for a minimum period of 20 years and Eskom has stated that i t wi l l provide connect ion up to the nearest network connect ion point , whi lst the land wi l l remain the property of Eskom, for the durat ion of the lease. 

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