CLEANER ENERGY: THE ‘JUST TRANSITION’ PROCESS

• National Treasury and the Department of Public Enterprises have issued a joint media statement on converting the Komati coal power station into ‘a site for renewable energy generation’. According to the statement:
  • Eskom has developed a ‘comprehensive just energy transition strategy’ placing ‘equal importance on the transition to lower carbon technologies and the ability to do so in a manner that is just and sustainable’, so that, among other things
  • ‘employees remaining in Komati at the time of the decommissioning … become part of the repowering and repurposing project’.
• A separate National Treasury media statement has since provided more information on the funding concerned.
• According to Acting Director-General Ismail Momoniat, while this will ‘assist in addressing the challenge of financing the critical adaptation and mitigation programmes (entailed) and supporting … resilient, sustainable, and inclusive growth … South Africa still requires more support for its just transition path considering the scale of the required transition in the context of the current socio-economic challenges of high unemployment, … poverty and inequality’.

 

PREFERENTIAL PROCURMENT REGULATIONS

• Two media statement have been issued with the aim of clarifying the status and intent of the new regulations, which will come into effect on 16 January 2023. According to:
  • National Treasury, the regulations will serve as a ‘placeholder’ pending the finalisation of a Public Procurement Bill, which was released in draft form in 2020 for comment, while
  • the Broad-based Black Economic Empowerment (B-BBEE) Commission has confirmed that:
    • the new regulations ‘have not removed the obligation for organs of state and public entities to implement the B-BBEE Act ... and its requirements concerning preferential procurement’, and that
    • the Act includes a trumping provision, which applies in any situation arising from a perceived conflict with other legislation.

 

IMPORTED FROZEN BONE-IN CHICKEN PORTIONS

• The International Trade Administration Commission of South Africa has gazetted a notice calling for public comments on a possible review of the sunset clause in a directive in place since 2017, imposing anti-dumping duties on imports of this product from the US.
• There is evidence to suggest that – should the duties be lifted – a concomitant increase in imports could impact negatively on producers in the Southern African Customs Union, who will ‘experience price depression, price suppression, and a decline in output, productivity, capital expenditure, capacity utilisation, investment, cash flow, and growth’.

 

EXTENSION OF SECURITY OF TENURE REGULATIONS

• Input is sought on draft regulations that, once finalised and gazetted, will repeal and replace those in force since November 1998.
• The purpose of the Extension of Security of Tenure Act is to regulate the relationship between small holding and/or farm owners and people living on their land with their consent.

 

PROTECTION, PROMOTION, DEVELOPMENT AND MANAGEMENT OF INDIGENOUS KNOWLEDGE ACT

• Draft regulations gazetted on 14 October for public comment have been re-published with all the application forms likely to be associated with:
  • accrediting indigenous knowledge assessors
  • certifying indigenous knowledge practitioners, and
  • registering the indigenous knowledge itself.
• Once finalised, the regulations are expected to give effect to the Act, which was added to the statute books in 2019.

 

PENSION FUNDS ACT REGULATION 28

• In anticipation of the revised regulation coming into force on 3 January 2023, the Financial Sector Conduct Authority has released two documents for public comment, each proposing a standard with implications for reporting obligations:
  • a draft prudential standard for quarterly reporting (explained in an accompanying statement of need), and
  • a draft standard also affecting the preparation of audited financial statements (explained in a separate statement of need).
• Input should be made using templates available on the authority’s website.
• Once in force, the revised Regulation 28 will accommodate government policy on investment in infrastructure assets.

Prepared by Pam Saxby