By Lehlohonolo Lehana.
Cabinet have lauded the five-year public-private partnership agreement between Sasol and Transnet Freight Rail (TFR), under which the energy and chemicals group will fund the maintanance and repair of a dedicated fleet of 128 ammonia tankers.
In a statement following its February 28 meeting, Cabinet welcomed what it described as a “first-of-its-kind” partnership agreement, which it said would advance the country’s Freight Logistics Roadmap, drafted to turn around the underperforming sector.
Likewise, in welcoming the appointments of Michelle Phillips and Nosipho Maphumulo as CEO and CFO respectively at Transnet, Business Unity South Africa said the State-owned utility’s recovery would be assisted through the signing of “mutual cooperation agreements” between Transnet and its customers.
Neither Sasol nor TFR were willing to disclose the contract value, but Sasol CEO Fleetwood Grobler previously underlined the risk that “persisting suply-chain challenges in South Africa” posed to its chemicals business.
Sasol Chemicals produces and sells more than 540 000 t/y of ammonia, which is used to make a variety of fertilisers and industrial chemicals for the agriculture, mining, textile and metalworking industries and supplies to key clients such as AECI in Modderfontein had been disrupted by the lack of availability of rolling stock.
AECI told shareholders shortly after the Sasol-TFR deal was announced that it was still pursuing a hybrid sourcing strategy to reduce its dependence on South African supply and had already successfully imported ammonia through the Port of Richards Bay.
Sasol and TFR confirmed that no new wagons would be purchased under the agreement.
Instead, the focus was on refurbishing, with the support of Transnet Engineering, the existing assets to enable their full utilisation, while minimising the need for significant capital investment.
G20 Summit
Cabinet has expressed its confidence in South Africa’s ability to host a successful G20 Summit, drawing upon its track record of successfully organising major events such as the BRICS Summit and the African Growth and Opportunity Act Forum (AGOA).
This is according to Minister in the Presidency Khumbudzo Ntshavheni who addressed a post-Cabinet briefing on Thursday in Pretoria.
The Minister told the media that Cabinet received and considered a report on the preparations for South Africa’s hosting of the G20 Summit in 2025 as well as taking over the Presidency.
“This is a momentous event for South Africa as it will be the first country in Africa to host such a gathering; not only unique because of the anticipated numbers but also of the enduring impact it is envisaged to make.
“Cabinet is confident that South Africa will deliver a successful G20 Summit, as it has done with previous major events such as the Brazil, Russia, India, China and South Africa Summit and the African Growth and Opportunity Act Forum.
“The G20 Presidency presents South Africa with an opportunity to champion the aspirations of emerging markets,” the Minister said.
As it hosts the G20, Ntshavheni said South Africa’s participation in the forum will continue to be guided by the country’s commitment to advance national interests as well as those of the African continent.
37th African Union (AU) Summit
Cabinet has also expressed appreciation on the progress made at the 37th AU Summit held in Addis Ababa, Ethiopia on 17 and 18 February 2024, which outlined Africa’s priorities for 2024 and beyond.
President Cyril Ramaphosa joined other African leaders in discussing key continental priorities including peace and security, climate change, economic development and Africa’s role in the wider global multilateral context.
The summit adopted the Second 10-Year Implementation Plan of Agenda 2063, which will see the acceleration of flagship projects such as the African Continental Free Trade Area, in which South Africa is playing a leading role.
Ramaphosa also presented a report on the continent’s response to the COVID-19 pandemic and the state of readiness against future health threats, in his capacity as the Champion of the AU’s COVID-19 response.
The summit also emphasised the importance of socio-economic recovery post-COVID-19 and lessons from the pandemic preparedness and response and continental security.
“The President called on African leaders to continue improving the levels of alertness of their countries against future pandemics and urged for the adoption of a strong Common Africa Position on Pandemic Preparedness and Response,” Cabinet said.