Crime is costing companies billions in additional security, repairs to damaged infrastructure and the replacement of stolen goods, but business “can assist the government in tackling the scourge”.
Speaking at the Black Business Council summit in Kempton Park this week, Vodacom South Africa MD Sitho Mdlalose said the telco industry’s 25,000 base stations often fall prey to theft and vandalism, resulting in poor connectivity.
“Just at Vodacom alone in the past four years, we have spent more than R4.5bn on batteries, replacing batteries, security … When someone goes to a base station to try to steal batteries, you can imagine how difficult that is. The damage they leave is far more than the battery they took.
“As the telco industry we are not just replacing batteries time and time again, but we are [fixing the damage caused] when people try to steal these things. This is what we are fighting against.”
Other sectors are also battling crime. The building industry is dealing with the construction mafia, while mining companies are grappling with organised crime including a spike in copper-cable theft and zama zamas.
Sibanye-Stillwater CEO Neal Froneman told the summit: “When we look at zama zamas, they are the front end of an illicit supply chain. The zama zamas are the poor people who are trying to make a living. Police can arrest them, but unless we change the fundamentals of our economy, that is going to continue. They are being abused and there is lots more than you see in illegal mining. There is human trafficking and many other things involved. We have got to disrupt these illicit supply chains, procurement mafias and organised crime.”
The crux of the matter is that while developed nations have turned their focus to reconfiguring their energy systems ... the African continent is still grappling with achieving universal access to energy
— Mineral resources & energy minister Gwede Mantashe
He said crime starts with inequality, poverty and unemployment, and the business community has a duty towards growing the economy.
“We have to create jobs. The way to create jobs is to grow the economy. To grow the economy we need an investor-friendly environment. That means we have to deal with key issues which are necessary to deal with inequality, [among them] energy and making sure business can flourish. Only when business can flourish can we contribute.”
Froneman said business can provide capacity and skills towards law and order without affecting the independence of chapter 9 institutions. He added that South Africans, including business, cannot see crime as someone else’s problem, and have to work with the government.
“Business would love to help contribute. If Treasury won’t help [the police ministry], I would like to say business will step in ... and help get more police officers trained, as well as help get data analysts for the National Prosecuting Authority. Business is willing to do that.”
But business has to acknowledge it cannot do the job of the police, he said.
“Violent crimes are clearly something that the police are best equipped to handle. Organised crime and disrupting illicit supply chains, dealing with the mafia, is something business can do, and can do it much better if there is collaboration.”
Police minister Bheki Cele, speaking at the same event, said the government is working towards bolstering the security cluster, given that the police force had shrunk to 176,000 from 195,000 in 2010. He said police visibility will improve as 10,000 young people will be trained for the South African Police Service this year, with another 10,000 undergoing training next year.
“As you talk about crime and the safety of business, the growth of business and professionals in the country, you cannot ignore the hunger and anger of the poor,” Cele added.
Meanwhile, mineral resources & energy minister Gwede Mantashe said arresting the decline in Eskom energy availability through maintenance of coal-fired power plants remains the most feasible and logical option to resolve load-shedding.
“With the progress made thus far in this regard, coupled with the work done to add more energy to the grid, we are confident we will see an end to load-shedding sooner than anticipated.”
Regarding the just transition to cleaner energy, he said South Africa and Africa must exercise energy sovereignty and eradicate energy poverty.
He said 600-million Africans — 43% of the continent’s population — do not have access to electricity.
“In our country, just less than 10% of the population does not have access to electricity. This despite the progress made since 1994, when access to electricity stood at 34%, compared with 90% today.
“The crux of the matter is that while developed nations have turned their focus to reconfiguring their energy systems … the African continent is still grappling with achieving universal access to energy.”
South Africa’s just transition has to strike a balance between fulfilling the country’s socioeconomic needs and preserving the environment, he said.
“It must be people-centred and take into consideration the socioeconomic conditions of communities that are directly affected by the transition, such as those on the Mpumalanga coal belt.”
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