https://iframe.iono.fm/e/1512226″ width=”100%” height=”126″ frameborder=”0

You can also catch this podcast on iono.fm here.

JEREMY MAGGS: Welcome to FixSA on Moneyweb. Today’s discussion centers on actionable solutions to the critical challenges faced in South Africa. We’ll explore the urgent state of public infrastructure, considering everything from water facilities to healthcare systems and municipal resources. These infrastructure issues are felt across the board, but local innovation and experienced experts could lead us toward a solution.

Success here can set us on a path to restore South Africa’s vitality. It’s a privilege to welcome Bani Kgosana, Chief Revenue Officer at Pragma, a South African firm delivering its infrastructure management technology to 46 countries around the globe. Bani, it’s great to have you here. Right away, what are the most urgent infrastructure challenges South Africa needs to tackle?

BANI KGOSANA: Thank you, Jeremy. It’s an honor to be part of your show. Your question brings to light the urgent infrastructure needs highlighted by many South Africans. Recently, we’ve encountered serious problems with our electricity grid, and the related infrastructure isn’t operating as required.

On a positive note, there is potential for improvement on the horizon. However, it coincides with a growing concern over water infrastructure, a particularly pressing issue in Gauteng, especially in Johannesburg, yet it’s a national problem. Nearly 40% of our water supply is wasted due to failing systems that are supposed to provide essential water for both domestic and industrial use.

Additionally, within the scope of the water crisis, other crucial infrastructures like roads and hospitals directly impact our daily living conditions, Jeremy.

JEREMY MAGGS: Let’s examine the water crisis further. There’s a prevailing belief that our intense focus on the electricity crisis has overshadowed emerging water issues. Some assert that the challenge is now too complex and costly to manage. What’s your take on this, and how soon can we begin to enact meaningful repairs?

BANI KGOSANA: Facing our water infrastructure challenges head-on is crucial; we don’t have the luxury of inaction. While the situation is serious, we need to approach it pragmatically. As the adage goes, “If you have an elephant, eat it one bite at a time.” In my field, I typically categorize issues into three areas: people, processes, and technology.

We must examine all aspects to uncover solutions. From a human standpoint, enhancing our understanding of maintenance is imperative. Although it seems straightforward, the significance of maintenance is often overlooked, particularly in the water infrastructure sphere, which remains predominantly hidden apart from certain visible components like water towers.

Many take for granted the systems responsible for delivering our water. As long as the tap functions, we usually assume everything is operating smoothly.

We must first recognize the importance of our water distribution assets. Time and again, I find organizations discussing infrastructure maintenance where individuals lack even a basic inventory of their assets. The first step is to catalog what we have.

Following this, we must assess the infrastructure to gauge the remaining useful life of each element. This will allow us to prioritize critical areas and subsequently tackle less urgent concerns. This approach was implemented effectively at Eskom. Armed with this knowledge, we can streamline processes, and finally, leverage technology for predictive maintenance.

Once our groundwork is laid, we can integrate sensors that notify us of potential failures, allowing us to adopt a forward-thinking maintenance approach rather than waiting for issues to arise.

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: In extending your metaphor about the elephant, you maintain that it’s not beyond saving. Your optimism is commendable.

BANI KGOSANA: I truly believe that, Jeremy. My organization’s operations span over 46 countries, including the Netherlands, where effective water management is deeply ingrained in cultural practice. The experts we collaborate with consistently offer insights to Dutch water boards on resource management.

With our knowledge and partnerships, I’m confident we can effectively assist South African water boards and municipalities in analyzing the challenges ahead and employing established techniques to restore and enhance infrastructure operations.

JEREMY MAGGS: We often hear about partnerships across various sectors, including water and logistics. However, it’s notable that the government frequently struggles with asset management. It appears that some form of privatization is inevitable, yet progress remains sluggish. Delaying only exacerbates the issues.

BANI KGOSANA: Precisely, Jeremy. Infrastructure upkeep must be viewed as a communal responsibility. By “communal,” I mean promoting public-private partnerships. The strict separation between public and private needs to be reevaluated for mutual benefit.

The belief that government-run infrastructure must be managed only by state employees is a concept we need to relinquish. When failures occur in either electricity or water systems, the consequences are universal—affecting both public and private sectors alike. Thus, seeking solutions is a joint endeavor.

Infrastructure maintenance should be regarded as a collaborative undertaking, which will enrich our model of public-private partnership.

Read: Biggest companies to help resolve South African water crisis

There are commendable instances of effective public-private partnerships, such as the Nkosi Albert Luthuli Hospital in KwaZulu-Natal, which benefits from collaboration between private entities and provincial health authorities, ultimately servicing diverse demographics.

Spreading excellence across sectors is crucial to tackling the formidable challenges ahead.

JEREMY MAGGS: I’d like to understand more about your organization’s international experiences, particularly in the Netherlands. What specific obstacles do they encounter in infrastructure management, and are there strategies they’ve successfully implemented that we might be able to adopt?

BANI KGOSANA: The Netherlands faces challenges linked to its geographical disposition. While we confront water shortages, they must effectively manage potential flooding arising from excess rainfall in certain areas. Our advisory efforts focus on established methodologies, particularly in alignment with ISO 55000 standards for asset management.

A central element of our work is benchmarking our processes against the various water boards. This assessment uncovers a range of approaches, from a reactive “firefighting” mentality to more refined methodologies indicative of solid asset management.

Foundational knowledge

Thus, our starting point must involve implementing repeatable actions that ensure foundational knowledge about appropriate asset management. Next, we align our processes with this understanding to amplify efficiency through technology. Remember, technology cannot replace strategy; it must complement existing processes. In South Africa, cultivating this awareness is vital for protecting our assets, beginning with valuing them and ensuring they are managed properly moving forward.

JEREMY MAGGS: You’re absolutely right, but while that’s an ideal perspective, the lack of maturity and foundational knowledge remains a significant hurdle in South Africa.

BANI KGOSANA: Certainly, it’s unfortunate. Although current staff within various organizations might not possess the required expertise, valuable knowledge can still be found within our broader community. Many experienced professionals and retired officials are willing to impart their insights.

We often collaborate with former chief engineers and academics, eager to conduct both public and tailored training sessions. This wealth of knowledge is accessible, along with global resources, and our goal should be to leverage this intellectual capital rather than succumbing to despair.

JEREMY MAGGS: Practical implementation requires patience, and there’s often reluctance to take action.

BANI KGOSANA: Yes, this problem is notably apparent in the public sector. The fundamental responsibility of state-run organizations is to diligently oversee their fixed assets. Whether it’s ports, rail, or pipeline infrastructure, these assets need careful management.

The government’s key function should involve enterprise asset management. Embracing this concept could awaken everyone to the urgency of recognizing our assets’ condition and maintaining them competently. If we acknowledge this, organizations like Transnet, with over R300 billion in assets, can preserve their resources while exploring greener technologies.

Read: Transnet’s rail monopoly is coming to an end

JEREMY MAGGS: If I were to hand you the reins of the ministry, what would a national asset maintenance strategy look like, and how would you propose financing it?

BANI KGOSANA: A maintenance strategy would typically involve recruiting unemployed youth to help in identifying and verifying assets across municipalities and government entities. This would create reliable inventories that outline asset conditions while classifying and developing maintenance schedules for each one.

This foundational task might seem elementary, but it’s critical—similar to how one manages a home or business. Such employment initiatives could rekindle engagement reminiscent of post-WWII recovery efforts in Europe—a sort of Marshall Plan for South Africa.

Concerning financing, after cataloging our assets and assessing their conditions, we’ll identify crucial components needing immediate action. South Africa boasts various funding avenues, including cooperation from banks and financial institutions through public-private partnerships to kick off projects that can substantially benefit communities.

This systematic method can help repair the most distressed infrastructures and eventually transition to cutting-edge systems—potentially utilizing AI and machine learning for predictive maintenance and preventing future crises.

JEREMY MAGGS: You seem to suggest that significant improvement hinges on better coordination between national and local governments in terms of asset maintenance, which could present a major challenge.

BANI KGOSANA: Certainly. Effective collaboration among all levels of government and the private sector is essential to realize our visions. We must examine procurement processes and the hurdles faced by organizations aiming to provide services to government agencies.

While reviewing the e-tender portal reveals countless proposals, the timeline from announcement to implementation can be exasperatingly slow. If my organization relied exclusively on public sector funding, survival might be questionable. Accelerating these procedures is essential.

It’s not uncommon to see project adjudication stretched over six or nine months, turning what should be straightforward extensions into protracted delays—leading to confusion when decisions remain unresolved even months later.

JEREMY MAGGS: As we conclude this insightful dialogue, you’ve shared numerous enlightening perspectives. In the immediate context, how would you define success in addressing infrastructure issues, and which specific metrics should we monitor?

BANI KGOSANA: There are various indicators in this field. For instance, one could track mean time to repair equipment and the mean time between failures. These metrics are not only well-established but provide essential insights. They reveal when equipment fails consistently beyond acceptable limits, indicating when replacement or targeted maintenance of parts is necessary.

Importantly, precise data collection facilitates our ability to tackle issues efficiently, while ensuring we utilize warranties from original equipment manufacturers when applicable. Unfortunately, many organizations incur substantial costs because they overlook warranty status.

Consequently, the importance of data acquisition cannot be overstated in identifying and addressing infrastructural challenges effectively. Utilizing digital solutions allows us to apply data-driven decision-making, ensuring our infrastructure remains in top condition.

JEREMY MAGGS: Thank you for your valuable insights and reflections. Bani Kgosana, Chief Revenue Officer at Pragma, I’m grateful for your time on this episode of FixSA here on Moneyweb.

For all-encompassing finance and business news, stay connected with Moneyweb on WhatsApp here.