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CESA INFRASTRUCTURE INDABA 2019

TRANSFORMATION06 MARCH 2019

Presented by: Clint G Koopman PrEng PrCPM

President : SABTACO

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ARE WE THERE YET ?When posing this question, it presupposes the following:

o that the destination is known,

o we know who is joining the trip

o the mode of transport has been established,

o the route has been determined

o and the journey has commenced.

o We have a rough idea of when we will reach the destination

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ARE WE THERE YET ?

• Where is there?

• Who is WE? (Whose responsibility is it?)

• How are we getting there? (What are the tools that we use to get to our destination?)

• What route are we taking ?

• When do we want to get to our destination?

IN THE CONTEXT OF TRANSFORMATION

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WHERE IS THERE?

• Transformation represents a paradigmatic change in the way of doing business:

moving towards new standards and quality, in a unique and non-recursive way.

• Qualitative transformations of the economy, business and society at large.

• Transformation is always misinterpreted to mean have

the same meaning as Black Economic Empowerment.

The two are related but could be mutually exclusive.

THERE is not a holiday destination, it is a permanent relocation.

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THERE - Economic Transformation

• Economic transformation involves creating new job opportunities and

moving labour from low to higher productive activities (better quality of

employment). This includes between sectors to higher value activities (for

example, from agriculture to manufacturing) and within sectors (for example,

from subsistence farming to high-value crops).

• It is widely accepted that poverty reduction and economic growth cannot be

sustained without economic transformation and productivity change but,

despite this obvious point, we have traditionally paid relatively little attention to

these long-term determinants of development. We generally have an attitude of

NOT my responsibility, let’s get it over so I can go back to how it use to be.

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The THERE as per the NDP-2030• We enjoy the same quality of service.

• We are connected through our caring.

• The beating heart of our country is a community that has all

the enablers of modern life:

• We have water.

• We use a toilet.

• We have food on the table.

• We fall asleep without fear.

• We listen to the rain on the roof.

• We gather together in front of heat.

• We all see to it and assist so that all life’s enablers are available in a humane way.

• What we contribute in our taxes, we get back through the high quality of our public services.

It was and is not the plan for a few black people to feature among the top richest people in the country while others remain in poverty. The plan is to have statistics that closely represent the demographics of this country, so there is nothing wrong in having black people among the top richest people, in fact the majority of the top

richest people in this country must be hard working, intelligent, black entrepreneurs. As a WE however, our focus must be on caring for those who do not share the same quality of service as us.

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THERE - Economic Transformation

• Increase the average monthly income of the poor.

• Reduce the number of South Africans living below the poverty line. Currently sitting at 66% of which 90% are black. NDP wanted this at 0% by 2030. Based on current performance, we will not get there.

• Increase the tax base.

• Reduce dependence on social grants.

66%

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THERE - Society

21002020

10%

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WHO IS “WE”

UBUNTU is the essence of a human being, the divine spark of goodness inherent within each being.

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HOW DO WE GET THERE

There are various routes that one can take to achieve the overall destination.

Opting for the shortest route is not always the best route.

The journey becomes longer and tiresome with frequent detours, numerous pit stops, mechanical failure, slow speed

NOW

THEREWe are going THERE, we are moving ahead with the plan, are you joining us, because

without you, WE can’t get there.

In the interest of our own sanity and of our kids, the sooner we get THERE the better. The same route is not suitable for all, but taking short cuts will not deliver qualitative and sustainable

transformation.

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TRANSFORMATION PITSTOPS AND DETOURS

Fro

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Co

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pti

on

/

Co

llusi

on

Rev

olt

Ob

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Eco

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Exp

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Growth rates for wealth of all (black and white) is largely determined by global economic forces. Without the pitstops and detours, it will take a very long time to achieve meaningful sustainable

economic, business and social transformation. The pitstops and detours extends the journey which generally leads to discomfort, irritation, impatience and ultimately a revolution. 12

WHEN

1948 1994 2019 2070 2120 2170

Star

t o

f ap

arth

eid

Po

litic

al f

reed

om

Gini coefficient (represent the income or wealth distribution of a nation's residents). South Africa

has one of the highest levels of income inequality in the world. Illustrative figures only.

THE

GA

P

Rate of accelerated growth of wealth by white people under the apartheid regime

Decent standard of living

Poverty Line

140 YEARS

HA

LF T

HE

GA

P

2045 2095 2145

HA

LF T

HE

GA

P

Rate of accelerated growth required to half % of people living below the poverty line by 2030

90 YEARS

40 YEARS

60 YEARS

105 YEARS

Reduce wealth of white people at same rate as rate of black people under the apartheid regime

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CONSTRUCTION SECTOR SCORE CARD

Socio Economic Development

Management Control

Skills Development

Supplier Development

Ownership

Transformational Developmental

Target for full points on ownership is 35% and the minimum target is 14%.

Bulk of the achievement at middle and junior management level.

Most business happy to focus here because it is non-permanent with the hope that one day BEE will no longer be a political imperative.

Took 2 years to negotiate a 35% equity for black ownership. The research by the CSCC at the time indicated that the industry was transforming very slow and well below the 27,5% target that was in place. Reality is that achieving the 35% will not mean we have reached our destination. At best we have reached a pitstop to assess qualitative transformation.

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CESA MEMBER PERFORMANCE

OW

NER

SHIP

(5

7%

BLA

CK

, 43

% W

HIT

E)

MANAGEMENT CONTROL (38% BLACK, 62% WHITE)

GENDER REPRESENTATION (80% MALE, 20% FEMALE)

75,3%

5,7%

19,0%

ARE WE THERE YET ?

• The engineering profession appears to be doing better that other built

environment professions and the construction sector is also doing better than

other sectors.

• We have a lot more to do and should not change our route or speed.

• We should not allow others in our profession and in our sector to use alternative

routes and engage in detours and pitstops to undo what we as a nation strive

for. We must hold each other accountable.

• We have to become the ambassadors of Transformation in our country to ensure

WE (the RSA people) reach the THERE much faster than the progress seen to

date.

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Thank youUmuntu Ngumuntu Ngabantu.