The country ranked ahead of Nigeria as a potential investment destination, coming in at 14th on the index while Nigeria ranked 17th.

South Africa has been ranked as the leading emerging economy in Africa and the only country on the continent to be ranked in the top 15 worldwide, according to the Emerging Markets Opportunity Index conducted by international advisory firm Grant Thornton.

"Although recent events in the mining sector have hurt our country's reputation as a destination of choice for foreign direct investment, there are significant benefits that continue to attract investors," Grant Thornton South Africa's national chairperson, Deepak Nagar, said in a statement.

The index analyses a variety of indicators from Grant Thornton's International Business Report, the International Monetary Fund and the United Nations Human Development Report. Indicators include economic size, population, growth prospects and levels of development to rate the countries' potential to attract business investment.

 www.ska.ac.za

The Square Kilometre Array (SKA) will be built at an estimated cost of €1.5 billion, making it the biggest ‘Big Science’ project in the world to be formally launched during this current period of austerity. The agreement to select South Africa/Africa as the main site, with assistance from Australia, was reached by the consortium of countries that have committed to contribute to the cost, including Canada, China, Italy, the Netherlands and the UK. Initial planning for the instrument had been funded by the European Union. The sharing of the project between South Africa and Australia will be around 60 percent SA and 40 percent Australia.

The Office of the SKA Organisation will now lead a detailed definition period to clarify the implementation.   This is also referred to as the pre-construction phase. Pre-construction work packages are being designed and industry is being lined up for possible participation in tenders to be launched by the SKA Organisation. The project is expected to be carried out in two phases.  The first phase of construction starting in 2013 will allow for limited research by 2020. The second phase beginning in 2018 is due to be ready for complete scientific operations by 2024. Upon completion, the world’s largest radio telescope will comprise 3,000 individual 15-metre wide dishes with a receiver surface of one square kilometre.

There are several benefits for South Africa and Africa in hosting the SKA. The SKA will attract the world’s best scientists and engineers to Africa. To operate, the SKA will require ultra-high speed internet, in excess of 100 Gigabytes per second. Sections of the terrestrial networks in the African partner countries will have to be upgraded by the International SKA Organisation to accommodate the SKA requirements. Direct benefits will accrue in the form of jobs created during the construction and operation of the facility.

Scientific benefits

The SKA will be 50 to 100 times more sensitive than any other radio telescope and this will provide unparalleled dynamical range for studying astronomical objects. The areas of research include:

·         Study dark energy and dark matter.

·         Measuring gravitational waves using pulsars orbiting black holes.

·         Study the formation and evolution of the first stars and galaxies.

·         Study the role of cosmic magnetism.

Economic benefits

The SKA represents a net foreign direct investment (FDI) of about €1.5 billion in capital expenditure and €6 billion over a 30-year minimum operations and maintenance period. The creation of thousands of local jobs during the construction phase will provide employment opportunities where every radio telescope station will be built. The project will require highly skilled positions for 500 people in engineering and astronomy. It estimated that 200 of the skilled workers will live in Africa.

The provision of access to broadband connectivity in rural areas of Africa for the SKA will create access to ultra-high performance computing in Africa. The already existing undersea broadband provides new opportunities for business in Africa and also strengthens Africa’s hosting of the SKA.

Socio-economic benefits

To realise the socio-economic benefits of hosting the SKA in Africa, it is important to note that the final design, construction and operation should not be left to the astronomers and engineers only. The planning should include inputs from entrepreneurs, engineers, educators and economists. Engineers and astronomers build good telescopes but require assistance to build good economies, particularly in initiatives of the magnitude of the SKA.  In addition to the impact on employment and gross domestic products, the SKA will provide many African countries with access to world class facilities for teaching, training and research. Investment by African countries in astronomy, information technology and engineering skills development, will position African countries to maximise the benefits that can be harnessed from hosting the mega telescope in Africa. The image on the global stage of a favourable destination(Africa) of large research infrastructure creates future opportunities in other unrelated areas of science and engineering.

Read more: Ska News Nov 2012 Newsletter (PDF)

Transnet's unveiling of 50 locally built fuel-transporting tank wagons was a milestone in South Africa's quest to become an original equipment manufacturing hub on the continent, Public Enterprises Minister Malusi Gigaba said (…) at the unveiling of the tank wagons at Transnet Rail Engineering's plant in Germiston, east of Johannesburg.

The 17-metre long wagons, each capable of carrying approximately 74 000 litres, will be used to transport highly flammable liquids stored under great pressure.

The wagons are a product of a partnership between Transnet Pipelines (TPL) and Transnet Rail Engineering (TRE), both divisions of state-owned company Transnet. TRE has invested over R20-million in modern technologies specific to the sophisticated wagons.

As the owner of the design of the wagons, TRE had now positioned it as the leader in the manufacturing of the new high-pressure tank wagons in southern Africa, Gigaba said.

'Innovative opportunity for the economy'

"This technological progress presents a massive innovative opportunity for the South African economy," he said.

"It demonstrates that TRE can act as both the original equipment manufacturer and prime contractor for the design and manufacture of complex and safety critical rolling stock.

"This is clearly a watershed that all South Africans can be extremely proud of, as we continue to build and demonstrate our capability in our quest to become an important technology and original equipment manufacturing hub in Africa," he said.

The order for the tank wagons was placed in 2011, with the last six wagons handed over in October. TPL decided to initially focus its market demand strategy on the delivery of fuel from its Tarlton terminal near Krugersdorp to Botswana. The wagons will be used to ensure fuel security to the country's landlocked neighbour Botswana, Transnet said.

The service began operating in earnest in October and, depending on the demand from other outlying areas, the service could see an increase in demand for fuel supplies, in which case more wagons will be needed.

"The more we complete and showcase projects of this nature, the more we must increase our research and development investment so that we stay ahead of our competitors and further refine our products," Gigaba said.

He said he looked forward to TRE receiving orders for the tanker wagons from customers on the continent and Asia, among others.

"It is imperative that we build on this experience. We need to move TRE systematically up the value chain to become prime contractor and manufacturer of locomotives."

Source:SANews.gov.za, 19 November 2012

The government has signed the first round of agreements with independent power producers that will see an initial 1 400 megawatts of renewable energy being

added to South Africa's energy mix, while bringing an estimated R47-billion in new investment into the country. The signing ceremony, involving 28 approved bidders from the first window of the Department of Energy's renewable energy programme for independent power producers, took place in Pretoria on Monday.

While the majority of the bidders are foreign companies, 67 South African companies have formed partnerships with them.

The 28 projects, involving an estimated R47-billion in new investments, are spread across some of South Africa's most rural and least developed provinces, including the Eastern Cape, Northern Cape, Limpopo, North West and the Free State.

The wind and solar projects are expected to be integrated into the country's national energy grid during 2014.

Social development, job creation

The commitments the bidders have undertaken include community development initiatives within a 50-kilometre radius of each project. The bidders have collectively committed R2-billion towards socio-economic development, and R1-billion towards empowering women in the energy field.

"We will watch this [development] like a hawk," Energy Minister Dipuo Peters said at Monday's signing, adding that the participation of black people in the projects was important as the government did not want to have to call for transformation of the sector.

"In total, these bidders will spend R12-billion over the duration of the implementation agreements on South African contractors, including empowered enterprises, small and women-owned businesses," Peters said.

According to the government's Integrated Resource Plan, a 20-year projection on electricity supply and demand, about 42% of electricity generated in South Africa - about 3 725 megawatts (MW) - will be required to come from renewable resources.

The plan places specific emphasis on broadening electricity supply technologies to include gas, imports, nuclear, biomass, and renewables (wind, solar and hydro) both to meet the country's future electricity needs and to reduce its carbon emissions.

'Milestone for South Africa'

Eskom executive Kannan Lakmeeheran said the signing ceremony was a significant milestone for South Africa, adding that the state power utility could not meet the country's energy requirements on its own.

"The electricity industry, as we increasingly see, will be one of a hybrid nature, with Eskom still retaining a significant position but a vibrant private sector developing too," Lakmeeheran said.

"The industry will be driven by the need for security of supply and climate change concerns, energy efficiency and technological advancements. It will look very different in 2030 to the way it looks now."

Lakmeeheran added that Eskom, which would be signing power purchase agreements with each of the bidders, looked forward to connecting the new power producers to the national grid and buying power from them.

Source: SANews.gov.za, November 2012