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JEREMY MAGGS: A warm welcome to FixSA on Moneyweb. Today, we delve into concrete solutions for the pressing challenges facing South Africa. Our discussion centers around the urgent crisis in our public infrastructure, encompassing everything from water and healthcare to municipal services. The infrastructure issues impact everyone, but local innovation and expertise could guide us toward resolution.
Success in these endeavors could lead to the revitalization of South Africa. It is my pleasure to introduce Bani Kgosana, Chief Revenue Officer at Pragma, a South African company that shares its infrastructure management technology across 46 countries. Bani, welcome! Let’s dive right in: In your perspective, what are the most urgent infrastructure challenges that South Africa must confront?
BANI KGOSANA: Thank you, Jeremy. It’s an honor to be on your program. To answer your question, the experiences of countless South Africans underscore the pressing infrastructure needs crying for attention. Recently, we’ve faced serious issues with our electricity grid and its ancillary infrastructure failing to meet requirements.
Fortunately, there is some optimism for improvement. However, while grappling with electricity challenges, the spotlight has shifted toward water infrastructure—a particularly critical concern in Gauteng, especially Johannesburg, but also throughout the country. Our systems designed to supply essential water for domestic and industrial use are failing, with nearly 40% of our water supply going to waste.
Even within the water crisis, there are additional critical infrastructures, such as roads and healthcare facilities, that significantly affect our daily lives, Jeremy.
JEREMY MAGGS: Let’s explore the water crisis further. There’s a viewpoint that, during our intense focus on the electricity crisis in recent years, we may have neglected the rising concerns about water issues. Some argue that the challenge has become overwhelming and too expensive to address. What’s your take on that, and how soon can we initiate impactful repairs?
BANI KGOSANA: We absolutely must seek solutions for the water infrastructure crisis. Although the situation is dire, we are compelled to confront it directly. As the saying goes, “If you have an elephant, eat it one bite at a time.” In my area of expertise, challenges generally fall into three categories: people, processes, and technology.
Addressing all three components is vital for finding resolutions. From a human perspective, we need to cultivate a greater appreciation for maintenance. While it may seem obvious that maintenance is crucial, when it comes to water infrastructure, aside from a few visible water towers, this essential network remains largely hidden.
We rarely notice the systems that provide our water. As long as the tap runs, we typically assume everything is functioning correctly.
First, we need to recognize the importance of our water reticulation assets. I often encounter organizations where discussions about infrastructure maintenance reveal that many individuals lack a solid understanding of their asset inventory. Thus, the first step must be to conduct an inventory of what we own.
Following that, we should inspect the infrastructure to assess the remaining useful life of each component. This will enable us to prioritize critical areas and then address other, less urgent issues. This methodology was successfully implemented at Eskom. Armed with our knowledge, we can then establish processes and ultimately leverage technology for predictive maintenance.
Once we lay these foundations, we can use sensors to alert us to possible failures, allowing us to handle maintenance proactively instead of reactively.
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: So, in terms of the elephant, you believe saving it is achievable. Your optimism remains strong.
BANI KGOSANA: That’s correct, Jeremy. As I mentioned, my organization operates in over 46 countries, including the Netherlands. Their extensive history in managing water resources highlights the critical importance afforded to this asset. The experts we work with continually advise Dutch water boards on effective resource management.
Given our expertise and collaborations, I am optimistic that we can assist South African water boards and municipalities in dissecting the challenges we face and applying established methodologies to restore and enhance infrastructure functionality.
JEREMY MAGGS: Regarding water, logistics, and other sectors, we often hear about partnerships. Yet, it must be acknowledged that the government frequently struggles to maintain its assets properly. This suggests that privatization, in some form, is inevitable, but progress is slow. Delays can amplify the issues we face.
BANI KGOSANA: Absolutely, Jeremy. It’s crucial we recognize infrastructure maintenance as a shared responsibility. By “shared,” I mean fostering public-private partnerships. The boundaries that divide the public sector from private organizations should be reappraised; it is in everyone’s best interest.
The notion that government infrastructure must be managed exclusively by state employees is one we need to discard. When failures in electricity or water systems occur, it affects everyone—public and private alike. Thus, finding solutions is a cooperative effort between the public and private sectors.
I believe infrastructure maintenance should be viewed through a collaborative lens, enhancing our public-private partnership model.
Read: Biggest companies to help resolve South African water crisis
There are noteworthy examples of successful public-private partnerships, such as the Nkosi Albert Luthuli Hospital in KwaZulu-Natal, which thrives on collaboration between private entities and provincial health authorities, ultimately benefiting all demographics.
This extension of excellence across sectors is vital for addressing the significant challenges that lie ahead.
JEREMY MAGGS: I’m intrigued by your organization’s international experiences, especially in the Netherlands. What specific challenges do they face in managing their infrastructure, and are there particular strategies they employ that we might consider adopting?
BANI KGOSANA: The Netherlands encounters distinct challenges due to its low-lying geography. While we grapple with water scarcity, they must manage potential excess rainfall to prevent flooding in vulnerable regions. Our advisory focus is anchored in established methodologies, particularly following ISO 55000 standards for asset management.
A primary effort involves evaluating the maturity of our processes against various water boards. This analysis illustrates a spectrum from a reactive “firefighter” approach to establishing effective procedures that denote excellence in asset management.
Foundational knowledge
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Thus, ensuring foundational knowledge around proper asset management must be our starting point. We then align our processes to this knowledge, allowing technology to enhance our efficiency. Technology alone cannot serve as a standalone strategy; it must function as an enabler for established processes. In South Africa, fostering this culture of awareness is crucial to safeguarding our assets, beginning with understanding their value and ensuring they are properly managed moving forward.
JEREMY MAGGS: You’re absolutely right, but while that’s a commendable vision, you’ve pointed out a significant lack of maturity and foundational knowledge, which remains a substantial issue in South Africa.
BANI KGOSANA: Indeed, it’s unfortunate. While expertise may be lacking among currently employed personnel in various organizations, a wealth of essential knowledge exists within our wider population. Many experienced professionals and retired officials are willing to share their insights.
We regularly connect with former chief engineers and academic experts who are eager to participate in public and customized training sessions. The knowledge is accessible, and we can also tap into global resources, so it’s vital to leverage this robust intellectual foundation rather than resigning to despair.
JEREMY MAGGS: Practical implementations require time; there’s often a reluctance to take action.
BANI KGOSANA: Yes, this hesitation is particularly noticeable in the public sector. The primary mandate of state-run organizations involves managing their fixed assets diligently. From ports to rail to pipeline infrastructure, these assets necessitate careful oversight.
The critical function of government should be enterprise asset management, and embracing this idea could illuminate the importance of recognizing the condition of our assets and maintaining them effectively. If we grasp this, institutions like Transnet—boasting a vast asset base valued over R300 billion—can preserve their existing resources while extending their useful life and exploring greener technologies.
Read: Transnet’s rail monopoly is coming to an end
JEREMY MAGGS: If I were to hand you the keys to the ministry temporarily, what would a nationwide asset maintenance strategy look like? And importantly, how would we finance such an initiative?
BANI KGOSANA: A maintenance strategy would conventionally involve deploying some unemployed youth to help identify and assess assets across municipalities and state-owned entities. This would produce reliable inventories that outline asset conditions while categorizing each type of asset and establishing appropriate maintenance schedules.
This foundational approach may seem rudimentary, yet it’s essential—similar to how we would manage a home or a factory. This employment strategy could regenerate engagement reminiscent of the extensive recovery efforts seen in Europe post-World War II—akin to a Marshall Plan for South Africa.
Regarding funding, after cataloging our assets and evaluating their conditions, we can identify which critical components necessitate immediate intervention. South Africa has various funding sources, including banks and commercial financial institutions that could collaborate through public-private partnerships to kick-start key projects that deliver substantial community benefits.
Through this systematic framework, we can address the most distressed infrastructures and ultimately replace them with next-generation systems—potentially even AI and machine-learning-enabled solutions that would allow for predictive maintenance, averting future crises.
JEREMY MAGGS: You argue that your viewpoint heavily relies on improved coordination among national and local governments concerning asset maintenance, which could present a significant challenge.
BANI KGOSANA: Absolutely. Collaboration and synchronized efforts across all levels of government and the private sector are vital to realizing our plans. Regarding bottlenecks, it’s crucial to revisit the procurement issues organizations face when seeking to provide services to government entities.
A glance at the e-tender portal reveals myriad requests for proposals, but the timeline from issuance to project execution can be painfully slow. If my organization depended solely on public sector revenues, we would likely face survival challenges. Accelerating these processes is essential.
It’s not uncommon to experience project adjudication timelines stretching to six or even nine months, making ordinary extensions feel like prolonged delays—leading to frustration over how decisions can take months to finalize.
JEREMY MAGGS: As we conclude this insightful discussion, you’ve offered numerous thoughtful ideas. In the short term, how do you define success in tackling infrastructure-related problems, and what specific metrics should be observed?
BANI KGOSANA: There are numerous established metrics in this domain. A straightforward example would be tracking the mean time to repair equipment and mean time between failures. These metrics are both well-documented and illuminating. They indicate when equipment consistently fails beyond acceptable thresholds, signaling a need for replacement or focused maintenance of particular components.
Importantly, precise data collection enables us to address issues effectively while utilizing warranties from original equipment manufacturers when appropriate. Regrettably, many organizations incur unnecessary expenses by failing to recognize warranty statuses.
Consequently, data acquisition lies at the heart of efficiently identifying and resolving infrastructure issues. Leveraging digital platforms allows us to adopt data-driven decision-making to ensure our infrastructure remains in optimal condition.
JEREMY MAGGS: Thank you for your valuable insights and thoughts. Bani Kgosana, Chief Revenue Officer at Pragma, I appreciate your time on this episode of FixSA here on Moneyweb.
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