Electricity + Control April 2018

COMMENT

ON THE COVER

Converting potential into action

I s there is a turn for the better in South Africa? We avoided a ratings down- grade, and Moody’s even provided a glim- mer of hope in suggesting that we may not be all bad. And, of course, we are not. We find ourselves on a continent with some of the fastest growing economies, and the questions to ask include: What will begin to emerge in our economy?Will the manufacturing industry start to thrive? Will there be investment? If there is, what will drive it? Are there legislative impedi- ments to progress? Take mining, for example. There are many lessons to be learned from the mining industry. Firstly, in terms of the amount of press coverage they seem able to garner; and secondly, in terms of es- tablishing an environment in which things can actually get done! Consider this … it has been suggested that South Africa has the largest mineral reserves in the world, with an estimated value of between US$ 2,5 and 4,7 trillion. The country’s mineral deposits are dominated by platinum-group metals (88% of global reserves), manganese (80% of global reserves), chrome (72% of global reserves), vanadium (32% of global re- serves) and gold (30% of global reserves). It is clear that mining is critical to South Africa because of its geological potential. But potential must be converted into ac- tion after understanding the challenges. Part of this relates to establishing pol- icy and an environment that ensures this wealth is best leveraged. The extended period of regulatory and legislative uncer- tainty that has plagued the industry has had a detrimental effect. A stable frame- work, supported by regulator efficiency, will prompt exploration and mining com- panies to convert geological potential into prospecting and mining rights; this stabil- ity and efficiency being crucial if we are serious about attracting investment.

Without the assurance of being able to ex- ercise these rights within an environment which, at the very least, gives a sense of security that the significant investments required will be protected and will, for the duration of the right be certain − inves- tors will simply review their risk, and walk away (or stay away for longer). Yet, with the best intentions in the world, we created all this mud, which slowed progress – in a country with the richest reserves on the planet, and a dire need for inflow of capital. Are there examples in the manufactur- ing industry that equally stifle investment, progress and growth? I have no doubt there must be – although the response is far more muted than the response from the mining industry. Is it because we (in manufacturing) are a gentler breed; or do we not feel we have the same muscle in the economy? Notwithstanding our rich reserves, it is in the manufacturing industry that our real future lies; and that requires a policy envi- ronment that is stable, clear and attractive to investors. It is also evident mining per se cannot continue to operate as it has in the past – if the upstream and downstream indus- tries are not enabled, and established, I suspect the social licence to operate will simply not be forthcoming. So, let us focus on manufacturing, and consider how to lobby those who can re- ally establish an environment in which it can flourish.

FEATURES: • Control systems+ automation+ systems engineering • Flowmeasurement+ instrumentation • Electrical protection+ safety • Lighting • Transformers+ substations

The biggest grain mill in Switzerland, Swissmill, recognises VEGA as a problem solver and VEGA sensors are a set standard for level measurement at the factory. Read more on page 17. 3/29/2018 8:48:02AM www.electricityandcontrolmagazine.co.za ECAPR2018 cover.indd 1

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