Unlocking South Africa’s Ocean Economy potential through Operation Phakisa

 What is Operation Phakisa?

Operation Phakisa is a results-driven approach, involving setting clear plans and targets, on-going monitoring of progress and making these results public. The name Phakisa means “hurry up” in Sesotho, a South African language.

It focuses on bringing key stakeholders from the public and private sectors, academia as well as civil society organisations together to collaborate in: detailed problem analysis; priority setting; intervention planning; and delivery.

These collaboration sessions are called laboratories (labs). The results of the labs are detailed (3 foot) plans with ambitious targets as well as public commitment on the implementation of the plans by all stakeholders. The implementation of the plans are rigorously monitored and reported on. Implementation challenges are actively managed for effective and efficient resolution. Operation Phakisa will initially implemented in two sectors, the Ocean Economy and Health.

The South African Embassy in the United Kingdom and The Department of Transport in conjunction with Brand South Africa hosted an Invest in the Oceans Economy Seminar on 06 and 07 July 2015 in London. Opportunities within the Oceans Economy were identified and UK investors were encouraged to invest in this sector.

Unpacking the Oceans Economy Lab

In introducing the concept at the seminar, the leader of the South African delegation Deputy Minister for the Department of Transport in South Africa, Ms Sindisiwe Chikunga, indicated that the Oceans Economy Lab was launched on 8 July 2014. The focus of the lab is to unlock the economic potential of South Africa’s oceans. Four priority areas were highlighted in this regard:

1. Marine Transport and manufacturing activities such as coastal shipping, trans-shipment, boat building, repair and refurbishment.
2. Offshore oil and gas exploration
3. Aquaculture
4. Marine protection services and ocean governance

The four focus areas have been selected as new growth areas in the Oceans Economy, with the objective of growing them and deriving value for the country. The objective of inclusive economic growth permeates all four focus areas.

“In 2010 the Oceans Economy contributed approximately R54 billion to South Africa’s GDP and accounted for approximately 316,000 jobs. The ocean has the potential to contribute up to R177 billion to GDP and between 800 000 and R1million direct jobs by 2033. These growth levers reflect at least 4 per cent (4%) annual growth in both GDP contribution and job creation “, said Deputy Minister Chikunga.

Unlocking the Potential

The Chief Operating Officer (COO) of South African Maritime Safety Authority (SAMSA), Mr Sobantu Tilayi’s presentation focused on 3 key pillars of the Maritime Transport and Manufacturing Lab. First, Infrastructure and Operations. Second, Skills and Capacity Building. Third, Market growth.

Mr Tilayi indicated that the key issues which underlie the investment opportunities in Marine Manufacturing are as follows:

1. There is a need to ensure the growth of the South Africa ship register: the goal is to ensure that at least 40% of South African trade is carried by South African ships. There is potential to attract ore cargoes from land transportation to seaborne transport.
2. Ensure Marketing of South Africa Seafarers as well as other Maritime Skills: actively marketing South African Maritime Skills has a potential for foreign capital earnings.
3. Ship Building, Ship Repair, and Marine Manufacturing: South African Shipbuilding and Repair capacity can largely supply the boating requirements by other African countries. All the oil producing nations in the African continent have a big need for ships yet these are currently produced outside the continent (typically workboats, tugs etc.). South Africa is also engaging in the fleet recapitalisation programme for 700 fishing vessels
4. Associated Shipping Transport Activities: South Africa is ideally positioned to provide halfway support activities, such as bunkering, crewing, offshore ship to ship transfers.

As far as Maritime Skills are concerned he identified Research, Skills and Capacity Development as key areas that require South Africa to leverage on existing bilateral and multilateral arrangements in order to achieve the objective of improving the skills in this field. The United Kingdom has been identified as a strategic partner in this regard as evidenced by the delegation’s visit to institutions of learning which offer training and development in the area of Maritime Economics, Logistics, Finance, International Shipping and Aquaculture amongst others. Discussions were held which will ensure the transfer of skills between the United Kingdom and South Africa.

The following were highlighted by the SAMSA COO, Sobantu Tilayi as action points to be implemented by the Department of Transport together with identified stakeholders under each of the pillars of the Maritime Transport and Manufacturing Lab:

a.) Infrastructure and Operations

• Create supportive funding and revenue model
• Establish purpose -built oil and gas port infrastructure by appointing Facility Operators : Saldanha Bay
• Align implementation of government policy
• Unlocking investment in new and existing port facilities
• Implement Strategic Prioritised Project – Richards Bay
• Implement Strategic Prioritised Projects – East London

b.) Skills and Capacity Building

• Train 18,172 learners as artisans semi-skilled workers and professionals over the next 5 years.
• Increase capacity to develop skills for approximately 1200 ratings and approximately 720 officers per year.

c.)Market growth

• Create and implement a public procurement and localisation programme
• Develop a strategic marketing campaign and value proposition for target markets
• Propose inclusion of preferential procurement clause in the African Maritime Charter
• Support local registry of vessels through incentives and encouragement of using South Africa -flagged ships for cargo and coastal operations( based on United Nations Conference on Trade and Development and African Maritime Charter guidelines)

Further presentations were made by The Presidency, Transnet, Petroleum Agency of South Africa, Department of Agriculture, Forestry and Fisheries (daff) and various other players in the South African Oceans Economy. Links to the presentations are provided below. The presentations address the priority areas mentioned above, namely; i) Marine Transport and manufacturing activities such as coastal shipping, trans-shipment, boat building, repair and refurbishment. ii) Offshore oil and gas exploration and iii) Aquaculture. Key projects are identified and opportunities for investment are highlighted.

South Africa is ready for the Blue Economy! #SAOceansEconomy

 

Presentations

Unlocking the economic potential of South Africa’s Oceans: Overview by the Presidency

Marine Transport and manufacturing activities:

Presentation by Transnet

Presentation by South African Maritime Safety Authority

Offshore oil and gas exploration:

Offshore Oil and Gas Activities: Presentation by PETRO SA

Aquaculture

Overview of the aquaculture sector, initiatives and investment opportunities and skills needs

Investment Opportunities: Aquaculture Development Zones