
https://iframe.iono.fm/e/1512226″ width=”100%” height=”126″ frameborder=”0
You can also listen to this podcast on iono.fm here.
ADVERTISEMENT
CONTINUE READING BELOW
JEREMY MAGGS: A warm welcome to FixSA on Moneyweb. Today’s focus is on discovering tangible solutions to South Africa’s pressing challenges. We will discuss the urgent state of our public infrastructure, covering everything from water and healthcare systems to municipal resources. The infrastructural issues affect everyone, yet local innovation and expertise could lead us to a better tomorrow.
Should we succeed in this endeavor, we can rejuvenate South Africa. It is my honor to introduce Bani Kgosana, the Chief Revenue Officer at Pragma, a South African firm that shares its infrastructure management technology with 46 nations globally. Bani, it’s a pleasure to have you here. Let’s get started: what do you believe are the most urgent infrastructure challenges South Africa needs to address immediately?
BANI KGOSANA: Thank you, Jeremy. It’s a privilege to be on your show. To answer your question, the experiences of many South Africans showcase the urgent infrastructure needs that require our attention. Recently, we’ve encountered major difficulties with our electricity grid and the related infrastructure not functioning as it should.
Fortunately, there appears to be a glimmer of hope for improvement. Simultaneously, while dealing with electricity issues, attention has turned to water infrastructure, particularly a pressing concern here in Gauteng, specifically Johannesburg, though it’s a national issue. Our systems set up to provide essential water for personal and industrial purposes are deteriorating, with nearly 40% of our water supply going to waste.
Even in the context of the water crisis, other crucial infrastructures, such as roads and hospitals, directly affect our daily lives, Jeremy.
JEREMY MAGGS: Let’s explore the water crisis further. There is a perception that during our intense focus on the electricity crisis over recent years, we’ve neglected the emerging water-related issues. Some may argue that the challenges have become insurmountable and costly. What are your thoughts on this, and how soon do you think we can start making a sincere impact on the essential repairs?
BANI KGOSANA: We have no option but to seek solutions for our water infrastructure dilemmas. Although the situation is concerning, we must face it head-on. As the saying goes, “If you have an elephant, consume it one bite at a time.” In my area of expertise, I find that many issues generally fall into three categories: people, processes, and technology.
It’s vital to consider all three aspects when searching for solutions. From a human standpoint, we need to cultivate a greater appreciation for maintenance. While it may seem evident that maintenance is crucial, when considering water infrastructure, barring a few water towers, this critical network is largely invisible.
We often overlook the systems that bring us water. As long as the tap flows, we tend to assume all is well.
We must first recognize the importance of our water reticulation assets. I frequently find organizations where, during discussions on infrastructure maintenance, many people lack a clear understanding of their asset inventory. Therefore, the first step is to conduct an inventory of what we own.
Following that, we need to assess this infrastructure to determine the remaining useful life of each component. We can then prioritize the most critical areas and work backward through the asset layers to address less urgent items. This same approach was effectively utilized at Eskom. With our knowledge, we then implement processes and finally leverage technology for predictive maintenance.
Once these foundations are set, we can integrate sensors that warn us of potential malfunctions, allowing us to engage in proactive rather than reactive maintenance.
Listen/read:
Jeremy’s weekly wrap: Water crisis warning as JHB faces systemic failures
We are all responsible for Gauteng’s water problems
South Africa to form company to expand bulk water infrastructure
JEREMY MAGGS: Extending your metaphor about the elephant, do you believe there is still hope? Your optimism is intact.
BANI KGOSANA: I truly believe it is, Jeremy. As previously mentioned, my organization operates in over 46 countries including the Netherlands, a nation well-versed in water management which underscores the critical importance of this resource. Experts we collaborate with continually advise water boards in the Netherlands on effective resource management.
With our expertise and partnerships, I’m hopeful we can help South African water boards and municipalities dissect the challenges we face now and apply proven strategies to enhance and restore infrastructure functionality.
JEREMY MAGGS: Whether it’s water, logistics, or other sectors, there’s much talk about partnerships. However, you must also agree that the government frequently struggles with asset maintenance. It appears that a degree of privatization is inevitable, yet progress remains sluggish. The longer we postpone, the bigger the problems become.
BANI KGOSANA: Absolutely, Jeremy. We need to view infrastructure maintenance as a collective endeavor. By “collective,” I mean fostering public-private partnerships. The barriers existing between the public sector and private enterprises must be reevaluated; it benefits us all.
The belief that government infrastructure must solely be managed by state employees is something we need to abandon. When there’s a breakdown in either electricity or water systems, it affects everyone—whether public or private. Hence, seeking solutions is a shared responsibility between both sectors.
I believe that infrastructure maintenance ought to be approached as a collaborative effort, enhancing our public-private partnership model.
Read: Biggest companies to help resolve South African water crisis
We have remarkable examples of successful public-private partnerships, such as the Nkosi Albert Luthuli Hospital in KwaZulu-Natal, benefiting from cooperative efforts between private entities and provincial health officials, ultimately serving all communities.
This spread of excellence across sectors is vital for tackling the daunting challenges ahead.
JEREMY MAGGS: I’m interested in the international experiences of your organization, particularly in the Netherlands. What specific challenges do they encounter in infrastructure management, and are there unique strategies that they employ which we could adopt?
BANI KGOSANA: The Netherlands faces distinctive challenges due to its low altitude. While we grapple with water scarcity, they must manage potential excess rainfall to prevent flooding in susceptible regions. Our advisory efforts are grounded in established methodologies, particularly adhering to ISO 55000 asset management standards.
A key focus of ours is evaluating the maturity of our processes in comparison to various water boards. This evaluation highlights the range from a reactive “firefighter” approach to effective procedures, demonstrating overall excellence in asset management.
Foundational knowledge
ADVERTISEMENT:
CONTINUE READING BELOW
Thus, repeatable actions to ensure a solid understanding of proper asset management should be our starting point. Then we must align our processes with that knowledge, allowing technology to enhance our efficiency. Technology alone cannot serve as a strategy; it must act as a facilitator to established procedures. In South Africa, fostering this culture of awareness is crucial for protecting our assets, beginning with recognizing their value and ensuring proper management moving forward.
JEREMY MAGGS: You’re absolutely correct, but while that’s an ideal scenario, you mentioned a lack of maturity and foundational knowledge, which remains a notable challenge in South Africa.
BANI KGOSANA: Indeed, it’s unfortunate. While the necessary expertise may not reside with the current personnel in various organizations, critical knowledge still exists throughout our broader society. Numerous seasoned professionals and retired officials are keen to share their insights.
We often collaborate with former chief engineers and academic experts willing to conduct public and tailored training sessions. The knowledge is present, and we can tap into global resources, so it’s crucial we operate from this robust intellectual base rather than sinking into despair.
JEREMY MAGGS: Implementing practical solutions often takes time; hesitation to take action is common.
BANI KGOSANA: Yes, this challenge is especially pronounced in the public sector. The primary role of state-run organizations is to diligently manage their fixed assets. Whether it’s ports, railroads, or pipeline infrastructure, these are fundamentally assets that require careful handling.
The government’s key function should be enterprise asset management, and embracing this notion could awaken a recognition of the importance of identifying the state of our assets and effective maintenance. If we were to realize this, institutions like Transnet, with their extensive asset base valued over R300 billion, could safeguard their resources while extending their useful life, all while exploring greener technologies.
Read: Transnet’s rail monopoly is coming to an end
JEREMY MAGGS: If I handed you the keys to the ministry for a short time, what might a national asset maintenance strategy look like? More importantly, how would we finance such an initiative?
BANI KGOSANA: A maintenance strategy would typically involve deploying some unemployed youth to help identify and verify assets across municipalities and state-owned entities. This would produce reliable inventories depicting asset conditions while classifying each type of asset and establishing maintenance schedules accordingly.
This foundational approach may seem simplistic but is essential—much like how we would manage a home or a factory. This employment initiative would promote reengagement, reminiscent of the comprehensive recovery efforts witnessed in Europe post-World War II—akin to a Marshall Plan for South Africa.
Regarding funding, after assessing our assets and their conditions, we can determine which critical components need immediate action. South Africa has various funding sources, including our banks and commercial finance institutions, that can engage via public-private partnerships to initiate key projects benefiting the community.
Through this structured approach, we can repair the most distressed infrastructures and ultimately upgrade them to next-generation systems—potentially even AI and machine-learning-enabled solutions that would facilitate predictive maintenance, preventing future crises.
JEREMY MAGGS: You’re aware that your argument depends on enhanced coordination among national and local governments regarding asset maintenance, which could pose a significant hurdle.
BANI KGOSANA: Absolutely. Collaboration and synchronized efforts across all tiers of government and the private sector are essential for realizing our envisioned objectives. In terms of hindrances, reevaluating procurement practices that organizations encounter when seeking to provide services to government agencies is vital.
When reviewing the e-tender portal, it becomes apparent that countless proposals await action, yet the journey from issuance to project execution can be frustratingly extended. If my organization depended solely on public sector revenues, it may struggle to endure. Accelerating these processes is imperative.
Unfortunately, it is common to witness project adjudication timelines stretching to six or nine months, transforming straightforward extensions into prolonged delays—causing confusion regarding the status of pending decisions months later.
JEREMY MAGGS: As we conclude this enlightening discussion, you’ve offered numerous thoughtful insights. In the immediate context, how do you define success in addressing infrastructure-related challenges, and what specific metrics should we monitor?
BANI KGOSANA: In this domain, there are various established metrics. A simple example is tracking the mean time to repair equipment and mean time between failures. These metrics are not only well-documented but also revealing. They indicate when equipment continually fails beyond acceptable limits, signaling the need for replacement or targeted maintenance.
Importantly, accurate data collection enables us to effectively address issues while leveraging warranties from original equipment manufacturers as needed. Unfortunately, many organizations incur unnecessary expenses by failing to track warranty statuses.
Therefore, data acquisition is at the core of effectively identifying and rectifying infrastructure issues. Utilizing digital platforms allows us to apply data-driven decision-making to ensure our infrastructure remains in good condition.
JEREMY MAGGS: Thank you for sharing your insights and perspectives, Bani Kgosana, Chief Revenue Officer at Pragma. I appreciate your time on this episode of FixSA here on Moneyweb.
For comprehensive finance and business updates, follow Moneyweb on WhatsApp here.