LIMPOPO PETROLEUM WORKSHOP IeC PRESENTATION MR AR NDOU 16/02/2017
PRESENTATION OUTLINE Introduction Legal mandate Objectives Partners Sustainability Model Roles IeC roll out status
INTRODUCTION IeC is a government programme aimed at addressing energy access, poverty alleviation, job creation and promote rural enterprise development Government prioritized rural development to address socio-economic conditions through Comprehensive Rural Development Programme IeC implementation requires DoE-Oil sector partnership
INTRODUCTION CONT. IeC is One-stop energy shop that provides energy solutions to communities Operated and owned by co-operatives Linked to IDP’s of Municipalities Trade on fuel, alternative energy products and other complimentary businesses 10 IeCs have been implemented and 3 are in planning stage with one ready for operationalization
LEGISLATIVE MANDATE WHITE PAPER ON ENERGY POLICY: (increased affordable energy services to disadvantaged communities, stimulate economic development by creating investor friendly climate, and securing energy supply by encouraging diversity of energy supplies and energy carriers).
WHAT DO WE WANT TO ACHIEVE? ALLEVIATING ENERGY POVERTY OUTCOMES SMME & Modern Improved Better energy Local energy for all lifestyle planning economic development Developing Developing OBJECTIVES Access Affordability Affordability Education Education key key partnerships partnerships • Bundle of • Reduced cost • Reduced cost • Communities • Communities Complimentary Complimentary modern energy of acquisition of acquisition opportunities opportunities • Local • Local sources, services • Lower prices • Lower prices • Retail hub • Retail hub authorities authorities & products • Businesses • Businesses • Capacity • Capacity • Energy development development information
PARTNERS Oil companies (Shell, Sasol, Engen, Total, PetroSA, Chevron, Oryx) The oil companies are currently funding the IeC programme Municipalities (land, access road, water and electricity) Government departments (Department of Small Business, Department of Rural Development and Land Reform (financial and non-financial support) DoE is currently engaging various branded marketers and there is positive response
IeC SUSTAINABILITY The sustainability of the IeC lies on three issues: selection criteria , good governance and internal control Good governance Efficiency and effectiveness of the board Appointment process of the board and the manager Managing Conflict of interest MoA between stakeholders
IeC SUSTAINABILITY CONT Good governance Prevention of internal graft and corruption Compliance Effective communication Transparency Internal control Safeguarding of assets Accurate and reliable information Reporting standards
IeC SUSTAINABILITY CONT Selection criteria Recruit skilled people in the co-operative Recruitment criteria Skills in finance, small business management, community development, energy sector Capable women, youths and people with disability
IeC BUSINESS MODEL Co-operative is the preferred govt model to drive rural economic development programmes Financial management, good governance and internal controls will be key to drive IeC model Compliance to co-operative act is the key Mainstreaming of gender, youth and people with disability Effective recruitment of co-op members (skills & commitment) Business operations managed by the manager appointed by the stakeholders
GOOD GOVERNNACE IN THE IeC CO-OPS CONT Ownership and Governance structure CO-OPERATIV E OWNERS MANAGEMENT COMPANY BOD ELECTED MANAGER MOA STAFF STAKEHOLDERS DOE DRDLR SPONSOR MUNICIPALITY DSBD
Established IeCs Vhembe DM Ngaka Modiri Mutale Limpopo Molema DM 2005 Ratlou N/West Uthungulu DM 2008 Kgalagadi Kgalakgadi DM DM Moshaweng Ulundi Umzinyathi DM N/Cape 2007 KZN2012 Dithakong Thabo Mofutsanyana N/Cape 2003 DM Eshane KZN Makwane 2004 FS/2013 Alfred Nzo DM Caba Mdeni E/Cape 2005 OR Tambo DM Mbizana E/Cape Qunu E/Cape 2012 2010
IeC FRONT VIEW
IeC SMME-Catering
IeC SMME-clothing shop
IeC SMME-Gas stove
IeC SMME-Gas cylinders
CONTACTS Azwinndini Ndou-012 406 7568/ 082 335 9679 azwinndini.ndou@energy.gov.za
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