Experts

Electricity tariff increase will inevitably cause the cost of doing business to rise

BELINDA BANTHAM — Fri, 31 Jan 2025 10:19:51 +0000

Electricity tariff increase will inevitably cause the cost of doing business to rise BELINDA BANTHAM Fri, 01/31/2025 - 12:19

Although it is still painful for business and consumers, the decision by the National Energy Regulator of South Africa (Nersa) to allow a much lower increase of 12,7% in Eskom tariffs, instead of the 36% previously sought by Eskom, is a significant outcome.

Prof Raymond Parsons, economist from the North-West University (NWU) Business School, says Nersa has acknowledged the critical inputs it received last year from extensive public hearings on Eskom’s original massive application and its potential socio-economic impact.

“The usual cost-plus approach to Eskom finances has therefore now been considerably ameliorated. However, even with a 12,7% Eskom tariff hike, allowance must be made for the additional municipal surcharges that usually follow such tariff rises. Hence the electricity costs of doing business will inevitably rise later this year.”

According to Prof Parsons, higher power tariffs will nonetheless also encourage the search for alternative energy options and further reduce dependence on Eskom. “The Nersa decision does not resolve the much bigger challenge of how Eskom is to be properly financed in the longer term – and how soon its present restructuring will facilitate more viable outcomes for the troubled state-owned enterprise.”

Better inflation figures gradually translate into lower interest rates

BELINDA BANTHAM — Fri, 31 Jan 2025 07:12:13 +0000

Better inflation figures gradually translate into lower interest rates BELINDA BANTHAM Fri, 01/31/2025 - 09:12

The better news on the inflation front is gradually being translated into lower interest rates, thus modestly easing borrowing costs for businesses and consumers. At its latest meeting, the Monetary Policy Committee (MPC) again – by a four to two vote – cut interest rates by another 25 basis points (bps).

In commenting on the latest decision by the MPC to once more reduce the repo rate by 25 bps, Prof Raymond Parsons, economist from the NWU Business School, says it was widely expected.

He says with inflation now expected to converge well within the 3% to 6% target range of the South African Reserve Bank (SARB) in the period ahead, the recent winding down in the rate of inflation has therefore created the space for the interest rate cutting cycle to continue this year.

“Hence, although future MPC decisions are said to be outlook-dependent, further cuts in borrowing costs this year would nonetheless further underpin consumer and business confidence. Monetary policy is still in restrictive territory and – given the present slow and uneven economic recovery in South Africa – needs to be further supported by lower borrowing costs wherever possible.”

Prof Parsons says the GDP growth is generally expected to rise to around a modest 1,7% in 2025 and the MPC itself expects GDP growth to reach 2% only by 2027.

“However, as was emphasised in the MPC statement, the global economic outlook is now becoming increasingly uncertain in the medium term. The MPC warns that the tariff and related policies announced so far by the new United States (US) Trump administration have injected a large element of unpredictability into the global inflation and interest rate outlook, including for South Africa.”

He explains that if renewed inflation does eventually develop in the US, this will influence the monetary policy of the US Federal Reserve and possibly mean global rates staying higher for longer.

“Nevertheless, MPC research revealed today has also confirmed that, in the event of accelerated structural reforms taking place in South Africa, there is a prospect of a much higher 3% GDP growth (with low inflation) by 2027. Economic policy must therefore urgently implement growth-friendly policies and projects that strengthen South Africa’s economic performance in the years ahead.”

Donald Trump to thrash South Africa’s economy?

BELINDA BANTHAM — Wed, 22 Jan 2025 12:23:21 +0000

Donald Trump to thrash South Africa’s economy?

by Bertie Jacobs

BELINDA BANTHAM Wed, 01/22/2025 - 14:23

He is back and South Africa’s economic welfare – like that of most other global economies – is not on his list of priorities. On Monday, 20 January, Donald Trump was inaugurated as the 47th president of the United States of America (USA) and wasted no time in making the same waves that were hallmarks of his first presidency.

He signed orders to remove the USA from the World Health Organization (WHO) and the Paris climate agreement. Trump has never shied away from his rhetoric of America first, second and third.

According to economist Prof Waldo Krugell from the North-West University (NWU), “bad outcomes” might be on the horizon for South Africa.

“There has been much speculation about what Donald Trump's second presidency of the USA will mean for South Africa and our economy. Most of the comments are about his trade policy and the possibility of tariffs on imports into the USA. This is especially about trade with China and Mexico. There is also talk of a general tariff for the products they import, but something like this should not have a major impact on South Africa's export competitiveness, because all countries are affected. The greater danger is that the Trump administration will pay little attention to the rules of the World Trade Organization. It will affect us if they simply decide to, for example, charge additional tariffs on steel, or cars, or citrus,” Krugell explains.

He adds that: “The much bigger impact will be how his policies affect economic growth, employment, government debt, inflation, and interest rates in the USA and how that will spill over into our own exchange rate and interest rates. The import tariffs will increase inflation. If his pro-business policies accelerate their economic growth, it will increase inflation. If his deportation immigration policy shrinks their labour force, it will increase wages, which increases inflation. This will keep their interest rates high and the dollar strong. If his tax relief plans increase their national debt, it will also keep interest rates high.

“These are bad outcomes for South Africa. Our economy is barely growing and has very little inflationary pressure. We would like to cut interest rates further but will not be able to do so if USA rates remain high and the rand-dollar exchange rate is weaker.”

Trump’s influence on the domestic fortunes of the USA might pay dividends, but his four-year term will do little to make South Africa’s economy great again.

Prof Raymond Parsons awarded an honorary doctorate by the NWU

BELINDA BANTHAM — Thu, 28 Nov 2024 08:20:24 +0000

Prof Raymond Parsons awarded an honorary doctorate by the NWU

by Bertie Jacobs

BELINDA BANTHAM Thu, 11/28/2024 - 10:20

On Thursday, 28 November the North-West University (NWU) conferred an honorary doctorate on the renowned economist Prof Raymond Parsons.

The honorary doctorate was awarded in recognition of the exceptional contribution Prof Parsons has made to the country throughout his distinguished career as an organised business leader, academic, media personality, economic commentator and author. Among his many achievements is the groundbreaking work he has done on the development and refinement of the NWU Policy Uncertainty Index, the first of its kind in South Africa.

He has also made a significant contribution to thought leadership at the NWU Business School, helping to keep the school and the university at the centre of discussions and debates about South Africa’s economic and political choices and future.

“At the outset I must convey my deepest thanks to the university Council and management for the honour of receiving an honorary doctorate from the university today. I am extremely grateful and humbled to have joined the distinguished list of previous recipients of honorary degrees from this esteemed institution. But there are many others to whom I owe my thanks and gratitude,” said Prof Parsons, before adding:

“I see this prestigious award as recognition of the important role that economics and economists play in making South Africa a better place in which to live and work, especially given the country’s well-known and formidable challenges of unemployment, poverty and inequality. Often described as the ‘queen of social sciences’, economics tries to answer the fundamental question of how best to satisfy the unlimited wants and desires of society using limited available resources.”

Prof Babs Surujlal, executive dean of the Faculty of Economic and Management Sciences said: “Renowned for his deep expertise, Prof Parsons is widely recognised as an authority on the South African economy and its implications for the business community. Professor Raymond Parsons has had a distinguished career as a leading South African economist, respected for his political independence. This impartiality has enabled him to engage critically with economic policies across various administrations, earning a reputation for balanced, objective analysis. His non-partisan approach has enriched public understanding and solidified his credibility over decades. By upholding rigorous analysis and open dialogue, Prof Parsons has achieved lasting influence as a trusted policy advisor and economic commentator, respected across sectors and political divides.”

Prof Parsons is currently a professor at the NWU Business School. He is also chairperson of the advisory board of the Business School. He studied economics at the universities of Cape Town, Oxford and Copenhagen before playing a leading role in organised business in South Africa for many years. Professor Parsons is a former director-general of the South African Chamber of Business (SACOB).

Until 2012, he was the deputy CEO of BUSA and subsequently a special policy adviser to that organisation until April 2014. He has also lectured at the Department of Economic and Management Sciences at the University of Pretoria. From 2000 to 2003, he was a visiting professor at the School of Economic and Business Sciences at the University of the Witwatersrand.

Professor Parsons was the overall business convenor at the National Economic Development and Labour Council (NEDLAC) until 2010. This is the major social dialogue institution in South Africa. He is a key contributor to public and academic debate on a broad spectrum of issues of critical importance to the political economy of South Africa. He is a recognised authority on the South African economy and its implications for the business community.

Professor Parsons was mainly responsible for the creation of South Africa’s first quarterly Policy Uncertainty Index, which was launched under the aegis of the NWU Business School in 2016.

He also holds an honorary doctorate from the Nelson Mandela University (NMU) and is an honorary professor there. He is a past president of the Economic Society of South Africa (ESSA). In 2017, ESSA conferred honorary life membership on him in recognition of his distinguished contribution to the economics profession in South Africa.

In 2004, former President Thabo Mbeki appointed Professor Parsons to the board of directors of the South African Reserve Bank, and he was reappointed in 2008. He was also a director of the South African Mint.

In August of 2024, Prof Parsons was appointed by the North West premier, Lazarus Mokgosi, to his new Economic and Investment Advisory Council to advise on economic development in North West.

He is the author/editor of eight books.

Prof Raymond Parsons.

NWU researchers publish South Africa's first space biology article

BELINDA BANTHAM — Thu, 14 Nov 2024 11:14:55 +0000

NWU researchers publish South Africa's first space biology article

by Phenyo Mokgothu

BELINDA BANTHAM Thu, 11/14/2024 - 13:14

The first space biology article has been published in South Africa, marking an important advancement for African space science – and potentially for the world.

The article, based on a study of young earthworms exposed to various hypergravity conditions for eight days, was authored by researchers at the North-West University (NWU). For earthworms to reach space, they have to withstand hypergravity during launch and decelerations.

While it was expected that earthworms exposed to hypergravity would fare worse than control worms at 1 G (earth gravity), unexpectedly, they all grew at the same rate irrespective of the hypergravity treatments. Being able to withstand sustained hypergravity suggests that they would also be able to tolerate microgravity and may therefore play roles in space food production and waste recycling on the Moon, Mars, space stations, or on spaceships that experience microgravity.

"This is a proud moment for South African science. It shows that we have the expertise and capability to contribute to important areas of research with global significance,” says research team member Prof Henk Bouwman, a zoologist with expertise in ecotoxicology.

The other team members are Cornel-Mari du Preez, an MSc student specialising in microplastics and Ruwaan Botha, a mechanical engineering graduate with experience in rapid prototyping.

Study could aid future space exploration

Cornel-Mari highlighted the study’s importance: "Understanding how organisms respond to the environment in space is crucial as we look toward future human space exploration."

Insights from this research could support sustainable space travel and protection of biological life beyond Earth, she said, and it lays the groundwork for applications in fields like human health, agriculture, and environmental sustainability in space and on Earth.

She played a key role in studying the effects of hypergravity on small organisms. With a background in marine biology, ecotoxicology and conservation, she was drawn to studying biological responses in dynamic and extreme environments.

Device developed to simulate gravity

Her published work involved using a concentric 3D-printed centrifuge rotor capable of testing organisms under three different gravitational forces: 1.7 G, 2.5 G, and 3.1 G - alongside a 1 G control, allowing for concurrent hypergravity testing that otherwise would have required three separate centrifuges, or three consecutive runs. This novel centrifuge rotor, which she co-developed with Ruwaan, allows researchers to study biological processes under multiple simulated hypergravity treatments, potentially informing sustainable food production and waste recycling in space environments under controlled conditions.

A mechanical engineer, Ruwaan contributed his expertise in design and 3D-printing technology. He co-designed the study’s 3D-printed rotor which can simulate hypergravity conditions and is adaptable for various research applications, including studying small organisms, cell cultures and biochemical reactions over prolonged periods. There is no other such rotor design.

His work on this device reflects his interest in rapid prototyping and computer-aided design (CAD), and his technical contributions have ensured that the research team can explore gravity’s effects on biological systems at multiple intensities. It is not only earthworms that can be tested, but also plants, microorganisms, and other small animals. Outside the scope of space biology, this design might also find use in medical applications, physiology, and biochemistry.

In conclusion, Prof Bouwman emphasised that the study not only adds to space biology knowledge but also underscores Africa's growing role in global scientific conversations: "We’re at the beginning of a new era where the study of space biology is no longer the exclusive domain of a few nations. This article is a step toward Africa’s voice in the global conversation on space biology and science."

Prof Henk Bouwman.

Ruwaan Botha co-designed the 3D-printed rotor which can simulate hypergravity conditions.

Earthworms all grew at the same rate irrespective of the hypergravity treatments.

Celebrating Tourism Month: Marine tourism and South Africa’s place on the global tourism stage

MARELIZE SANTANA — Mon, 23 Sep 2024 06:35:37 +0000

Celebrating Tourism Month: Marine tourism and South Africa’s place on the global tourism stage MARELIZE SANTANA Mon, 09/23/2024 - 08:35

In the final part of our series of articles celebrating Tourism Month, we again look at the phenomenal work the North-West University’s (NWU’s) research unit Tourism Research in Economics, Environs and Society (TREES) is doing to infuse the tourism sector with its expertise, to make the sector visible and to protect our tourism heritage. This is why tourism matters.

South Africa’s place on the global tourism stage: A competitive destination

For South Africa to remain a top tourist destination, it must continuously compete with other countries around the globe. Researchers at TREES are continuously working to enhance South Africa’s international appeal by studying destination marketing, branding, and competitiveness.

South Africa’s tourism sector has long been a major contributor to the economy, but as global competition increases, the need for effective destination branding has never been more critical. Prof Elmarie Slabbert, Prof Lindie du Plessis, and Dr Tafadzwa Matiza are leading research efforts to ensure that South Africa remains a top choice for international tourists.

"Tourists have a wealth of options when it comes to choosing a travel destination, so it’s crucial for South Africa to distinguish itself through strategic branding and marketing," says Prof Slabbert. Her team is particularly interested in understanding how international tourists perceive South Africa and what factors influence their decision to visit.

Research in this field also addresses the challenges South Africa faces, such as safety concerns and negative perceptions. By identifying and addressing these concerns, TREES researchers aim to develop strategies that can help position South Africa more favourably on the global tourism map.

Marine tourism: Protecting our oceans and coastlines

South Africa’s marine ecosystems are as much a part of its tourism appeal as its wildlife reserves. In this final article, we explore how the TREES unit is contributing to the protection and sustainable development of marine tourism, with a particular focus on research led by Prof Serena Lucrezi.

Marine tourism is a growing sector in South Africa, but it comes with challenges that must be addressed to ensure the protection of delicate marine ecosystems. Prof Lucrezi’s research is focused on monitoring and assessing tourism activities in marine protected areas, such as the Table Mountain National Park, to ensure that tourism and conservation efforts work hand in hand.

"Marine tourism, particularly activities like diving and shark cage diving, brings many visitors to South Africa, but it’s important that we manage these activities responsibly," says Prof Lucrezi. Her work not only monitors the impact of these activities but also seeks to educate tourists about their role in preserving marine life.

Prof Lucrezi is also involved in cross-border research with Mozambique, exploring the potential for marine conservation collaborations. Her research emphasises the need for a 360-degree approach, integrating insights from social and environmental sciences to create sustainable marine tourism practices.

From citizen science projects to cutting-edge conservation technology, Prof Lucrezi’s work is a testament to how interdisciplinary research can help safeguard South Africa’s rich marine heritage for future generations.

More interest rate reductions likely if inflation outlook continues to improve

MARELIZE SANTANA — Fri, 20 Sep 2024 06:39:46 +0000

More interest rate reductions likely if inflation outlook continues to improve MARELIZE SANTANA Fri, 09/20/2024 - 08:39

The widely expected pivot for the Monetary Policy Committee (MPC) to now commence its interest rate cutting cycle by a modest 25 basis points (bps) is good news for business and consumers.

In commenting on the decision by the South African Reserve Bank (SARB) on 19 September Prof Raymond Parsons, economist from the Business school of the North-West University (NWU), says that, although the decision remains marginal in terms of present high borrowing costs, it nonetheless represents a positive turning point in the interest rate outlook.

“Monetary policy is still in restrictive territory, but the SARB has now recognised that the time has come for interest rate policy to begin to adjust to a largely improved inflation outlook.”

Prof Parsons says the timing and pace of further interest rate reductions by the MPC will obviously remain data-driven, but are now likely to continue if the inflation outlook continues to improve.

“Although the MPC statement emphasised external uncertainties, both global and domestic economic trends on balance strongly indicate that, barring shocks, another 25 bps cut should be possible at the MPC’s next meeting in November.”

Prof Parsons says as it is still early days in the implementation of the two-pot system of access to pension funds and, given the firm rules of engagement, the MPC is right not to be too concerned about its possible inflationary effects.

“On present evidence, the macroeconomic implications of the two-pot system over time are likely to be quite balanced, in other words, a ‘Goldilocks’ impact – not too hot, and not too cold.”

According to Prof Parsons there were also key references in the MPC statement to administered prices in general and Eskom tariffs in particular that are continuing to pose upside risks to the inflation outlook.

“In the next three years, Eskom is seeking 36%, 12% and 9% price increases respectively over that period.”

Prof Parsons says that, fortunately, there is now a convergence of pressure from the Minister of Electricity, Parliament, the Presidential Climate Commission and other key stakeholders for electricity pricing reform before any final decisions are made.

“Finally, the MPC statement recognised that South Africa’s economic growth has been too low for too long. The MPC also acknowledged that a major weak link in South Africa’s growth prospects was total gross fixed capital formation (GFCF), which has declined for four successive quarters.”

He concludes that, apart from structural remedies and reforms, however, strengthening GFCF also needs progressive lowering of borrowing costs of capital to help improve the risk-reward ratio of private investment plans, especially for SMMEs.

Prof Tyobeka lauds proposed national nuclear initiative

MARELIZE SANTANA — Fri, 06 Sep 2024 12:56:29 +0000

Prof Tyobeka lauds proposed national nuclear initiative

by Bertie Jacobs

MARELIZE SANTANA Fri, 09/06/2024 - 14:56

The principal and vice-chancellor of the North-West University (NWU) – and internationally renowned nuclear energy expert – Prof Bismark Tyobeka, has lauded the Department of Mineral Resources and Energy’s (DMRE) proposed recommendation to Cabinet that three possible ownership models to acquire and fund more nuclear projects in SA under the Nuclear New Build Programme (NNBP) be considered.

This follows the Department of Electricity and Energy and Eskom’s briefing to the Portfolio Committee on Electricity and Energy on the status of the NNBP as well as the extension of the Koeberg nuclear power plant’s lifespan for 20 years beyond it intended design.

The three most preferable funding models for the NNBP according to the DMRE are one that focusses on public-private partnerships, one where government hold majority ownership and one of full government ownership.

In December 2023, it was announced that South Africa will start producing an additional 2 500MW of nuclear power, but that process has since been put on hold.

“The National Development Plan expressly states that nuclear should be part of our energy supply package, so this is undoubtedly a step in the right direction. But it is also a path that should be followed with the necessary oversight structures in place. It is a process in which success will depend on transparency and collaboration between private and public role-players. Our goals are clear, and we cannot allow for unethical infringements to derail this very important endeavour. There is too much at stake and the losses the country has occurred during the past decade and more have had a dire impact on a variety of vital sectors which are the lifeblood of our economic wellbeing.

“We must also be honest. South Africa’s energy crisis has not subsided due to us experiencing less loadshedding. Eskom cannot tread the country’s energy waters alone, especially considering its current financial constraints, and renewable energy sources is not the only long-term option to keep our country’s economy afloat. The energy resources at our disposal must supplement each other. Our energy dependent puzzle needs all the pieces to fit together, and nuclear is a central piece of the picture,” said Prof Tyobeka.

He concluded by stating: “The NWU, as the only university in South Africa with a nuclear engineering programme, is also excited to hear that such strides are being made. We stand ready to increase our graduate throughput in the nuclear and radiation field, because without a solid homegrown capacity, the Nuclear New Build Programme will be too expensive. Imported skills are paid in euros and dollars, which increases our project costs. Given the private public partnership (PPP) ownership model where ultimately the plant is handed over to the state after a certain period, we must ensure that skilled nuclear scientists, engineers and other allied professionals will be available to carry out this huge undertaking.”

Ancient texts and their interpretation for today’s society

MARELIZE SANTANA — Fri, 30 Aug 2024 08:48:27 +0000

Ancient texts and their interpretation for today’s society

by Steve Maphakathe

MARELIZE SANTANA Fri, 08/30/2024 - 10:48

Whether they are historically true or fictional, texts are not only informative, but are drivers of ideological change for their target audience, compelling their readers to adopt new behaviours such as morals and good ethical conduct.

Shedding light on these texts at the North-West University (NWU) is Prof Risimati Hobyane, a senior lecturer in Greek and New Testament studies from the School of Ancient Languages and Text Studies at the Faculty of Theology.

His research focuses on the literary analysis of ancient texts and how they may have functioned to challenge the religious status quo or ideologies in the world of the first readers. “Their practical lessons and teachings also serve to challenge contemporary readers, particularly African readers, to interrogate their own environments and social ills,” he says.

Prof Hobyane, who is also a research director in the research focus area for Ancient Texts: Text, Context and Reception, specialises in Johannine writings and Septuagint studies, and holds two doctoral degrees in these two areas of his research focus.

The Johannine writings are the collection of New Testament works that are traditionally attributed to John the Apostle, John the Evangelist or to the Johannine community.

The Septuagint is the Greek translation of the Hebrew Bible, known to Christians as the Old Testament, and studies entail dealing with translated literature, which requires an appropriate methodology.

“My research is aimed at analysing ancient texts and how they can possibly influence change in society. It is my academic duty to analyse Biblical texts in such a way that the reader can know and understand what is meant and needed from them by the text in question.”

He says that his field of expertise falls under narratological pragmatics. This is a specialised field of study that focuses on how texts engage and invite readers to take part in them as they read them. A thorough and responsible analysis of Biblical texts plays a significant role in encouraging the understanding of the Bible in communities, he adds.

New field or expansion?

“I am expanding on the works of others, as the field of pragmatics has a long history. For example, in my second PhD thesis, I have taken the idea of analysing the performativity of literary devices in the Fourth Gospel. This was initially studied by my supervisor, Prof Jan van der Watt, the author of the book, An Introduction to the Johannine Gospel and Letters.”

Prof Hobyane is also a pastor, and he views his work in the church as an extension of his community engagement, which is something that the NWU encourages.

“The two spheres of expertise of being a pastor in a church and a researcher who analyses texts are complementary. I interact with the text every day for academic publications and go out into the community to preach it.”

He sees his research as making a positive contribution in the Faculty of Theology, whose mission is to impact communities by preparing graduates holistically with relevant Biblical knowledge and skills.

In addition to being a researcher and a minister of religion, Prof Risimati Hobyane is a passionate athlete who has completed many marathons and participated in several Comrades Marathons.

Pioneering South Africa's circular economy

MARELIZE SANTANA — Fri, 30 Aug 2024 08:10:12 +0000

Pioneering South Africa's circular economy

by Angeline Marokoane

MARELIZE SANTANA Fri, 08/30/2024 - 10:10

Gone are the days of the throwaway economy. Environmental scientists and pioneers like Prof Linda Godfrey of the North-West University (NWU) are leading the charge towards a thriving circular economy.

With over 20 years dedicated to studying the waste sector, Prof Godfrey has observed the unsustainability of the traditional linear economy model, characterised by extraction, production, consumption, and disposal. She argues that this model has severe environmental and health impacts and advocates a shift to a circular economy.

“In a circular economy, products and materials are kept in circulation through processes like maintenance, reuse, refurbishment, remanufacturing, recycling and composting as a means of continuing production in a sustainable or environmentally friendly way.”

Prof Godfrey, a prominent figure in South Africa's environmental science sector, is an extraordinary professor at the Faculty of Natural and Agricultural Sciences at the NWU and a principal scientist at the Council for Scientific and Industrial Research (CSIR).

There, she manages Circular Innovation South Africa (CISA), a Department of Science and Innovation initiative hosted by the CSIR to advance the government's circular economy goals, which are outlined in the national Science, Technology and Innovation (STI) Decadal Plan (2022-2032).

She has also played a crucial role in shaping the country's Waste Research, Development, and Innovation (RDI) Roadmap for the DSI.

Highlighting her impact on sustainable development and waste management innovation, Prof Godfrey recently received a National Science and Technology Forum-South32 Award in the Green Economy category.

She is also making her (environmentally friendly) mark at the NWU. Early in 2024 she introduced a postgraduate study unit on the fundamentals of waste management. Her students are also gaining an in-depth understanding of the management of waste through its life cycle, based on her lecture, "A life cycle perspective of waste management – A linear view from cradle to grave vs a life cycle perspective of waste management: waste to worth”.

Emphasising the global importance of the circular economy, Prof Godfrey notes that resource extraction and processing cause significant climate impacts, biodiversity loss and water stress.

In contrast, the circular economy approach can help South Africa and other developing nations bypass the resource-heavy growth patterns of the global north, fostering sustainable and regenerative development.

Circular practices need to be scaled up in South Africa

The CSIR's recent studies aimed to explore the implications of the circular economy for South Africa's resource-intensive sectors such as mining, agriculture, manufacturing, energy, water, human settlements and mobility. These studies involved engaging with public and private sector experts to assess the current adoption level of circular practices, the readiness for circular economy transitions, and existing barriers.

The findings indicated that while circular practices are not new to South Africa, they have not yet reached a scale that makes a significant impact. Prof Godfrey stresses the need for demonstrating and de-risking these interventions to ensure rapid uptake and highlights the role of the National Innovation System in supporting this transition.

She identifies resistance to the adoption of new practices as a significant challenge in her research. This resistance is often due to fears of being first-movers or to a lack of implementation capacity. However, she views this challenge as an opportunity for scientists to engage more closely with stakeholders, improving communication to make research more accessible and actionable.

Through her various roles as a manager, researcher and educator, Prof Godfrey is dedicated to empowering future scientists. As CISA's manager, she oversees strategic investments in circular economy STI, collaborating with local and international researchers to support South Africa's transition to a circular economy. Her involvement in technical advisory committees ensures that developing country perspectives are considered in global discussions. This also enhances her teaching, which helps her to nurture young scientists and engineers.

Prof Godfrey is optimistic about the future of circular economy practices, especially after she attended the World Circular Economy Forum in Brussels in April, which highlighted global advancements in circular economy practices and policies. She underscores the importance of understanding and localising the circular economy concept for South Africa, emphasising the crucial role of the National Innovation System in developing and scaling new technologies that decouple economic growth from resource consumption.

Here comes the circular economy – and it is going to be here to stay.

Prof Linda Godfrey