Seminar 5 Sustainable Engineering and Exporting Services

Transcription

1 Seminar 5 Sustainable Engineering and Exporting Services Dempsey Naidoo Wednesday, 05 October 2011,

2 Seminar 5 Sustainable Engineering through Exporting Services Presented by: Mr PD Naidoo Pr. Eng., MICE, FSAICE Executive Chairman P D Naidoo & Associates (PDNA) - Group South Africa & Africa

3 Africa - Investment Portfolio by Sector Water Res., $352, 10% Agriculture, $280, 8% ICT, $437, 12% Power, $916, 25% Environ., $256, 7% Transportation, $1,142, 31% FPD, $162, 4% Health, $79, 2% Capacity Building, $25, 1%

4 In Africa where there is one qualified and registered engineer to approximately every inhabitants, it is challenging to find local indigenous companies of appropriate skill and capacity to serve as a role model, and partner to manufacture complicated infrastructure and industrial projects. In Asia by comparison there is one engineer to every 200 inhabitants. No wonder China is growing at 10% and can sustain it. Since democracy in 1994, there has been a concerted campaign in South Africa to grow local engineering capacity amongst the indigenous population with some success. The development of such a sustainable model will be discussed alongside some pitfalls on this journey. The relevance of this model to Africa for its indigenous development will be presented, including challenges from structure, culture to physical delivery. This paper serves to marry the excellence and experience of global participants, who have embarked on this path working with local capacity, to create a lasting legacy of skilled engineering and management for South Africa and Africa. A local South African company s experience from startup to excellence will be used to illustrate the key steps required to establish and maintain local talent to benefit long term strategy of exporting services to Africa. 2

5 Presentation Structure Introduction African Statistics Economy Engineering Africa Status Quo The African Model Sustainable Unsustainable The PDNA Model Early years to Successful Delivery Recommendations for Building Capacity 3

6 African Economic Summary Population Million GDP per capita - $624 GDP growth - 5.1% Life Expectancy - 52 Resource-based exporter of :- o minerals/metals (oil & gas, gold, coal, iron ore & ferro-alloys, bauxite/aluminium, copper, diamonds, etc.); o agri & agri-based commodities (cocoa, cotton, fruit & juices, sugar, grains, wood & paper/pulp, wool, meat, fish, etc.); Very weak skill base - except for a few niche competencies High Growth Economic Tanzania, Angola, Nigeria,etc 4

7 Population per Engineer Engineers Status in Africa Registered Engineer to Population Ratio (2004) Registered Engineer to Population Ratio (2004) Source Lawless

8 The Unsustainable Model Business into Africa Country supported systems and companies Money flows back to Aid Countries World Bank and African Development Bank funded programmes Procurement Requirements Rent a local Engineer vs Empower a local Engineer (no Capacity Building) RSA Companies Operating in Africa 6

9 Sustainable Lessons Business into Africa post Empower the indigenous African Engineer Ex- Pat Companies Bursaries, Training, Development and Mentoring Programmes Development of Client Confidence Business Model Indigenous Ownership Procurement Practices Fostering capacity building Establish Design Offices Locally Establish Niche Engineering Competencies Appropriate Technology / labour intensive 7

10 SCHOOL UNIVERSITY The PDNA Model TERTIARY TRAINING & DEVELOPMENT INDUSTRY EXPOSURE STRONG INSTITUTIONS CAREER ADVANCEMENT ACADEMY (CDP) BRIDGING 8

11 The PDNA Model PDNA Mozambqiue / Botswana growth path (training and development fund start up) Creative Institutions and contributions - University courses and technicians Have exchange programmes and embedded engineers Preferred Procurements - Concept of Aid Studies & Training for indigenous engineer/s working with International Companies. 9

12 The PDNA Experience Early Years 25 years Township background (low income) Status of Black Engineers Political Environment Training of Young Engineers Especially Black Accelerated Development (technical/management/parallel development) 10

13 The Middle and Mature Stage Procurement EPC, EPCM Strategic Partnerships / JV s Financial model of Re-investment Rapid Financial and Technical Growth Diversification of Engineering Services Development of International Business Relationships Technology & Skill Transfer with International Business Partners 11

14 FIDIC Davos Conference 2011 Projects - PDNA History 12

15 Challenges on this Journey Political Environment Impact Recession Government Laws Local Procurement requirements Culture and Languages Logistics Commercial Requirements Business practices Physical delivery 13

16 Recommendations Empowering Joint Ventures World wide specialist skills ThyssenKrupp, NIRAS, AECOM, AURECON, COWI, Schlaich Bergermann & Partners, General Electric (GE), etc - The joint venture on large projects. Operation and maintenance depends on local capacity India, Chinese model following old western model of in and out engineering Acquisition of ex-pat companies in Zimbabwe and Zambia / indigenize and grow. 14

17 Bridging the Gap The passion must be to leave a legacy in Africa so that they can do it for themselves some day otherwise resentment / corruption = Sustainable Export Services 15

18 THANK YOU HEAD OFFICE 25 Scott Street Waverley Johnnesburg 2190 Tel: Fax: