B Sonjica: Integrated Energy Centre's Investment conference

19 October 2006

Programme director
MECs present
The Chairperson of the Portfolio Committee on Minerals and Energy Comrade Nathi
Mthethwa
Councillor Amos Masondo
Executive Mayor of the City of Johannesburg
Councillors present
Captains of Industry and Chief Executive Officers of State Owned
Enterprises
Distinguished guests
Ladies and gentlemen

I take this podium with great humility and pleasure as it is a feather in
our cap as the Department of Minerals and Energy (DME) to be associated with
this auspicious occasion. The Department of Minerals and Energy started the
Integrated Energy Centres programme as a pilot project under the Special
Projects unit in 2001, as a response to President Thabo Mbeki's call for all
national departments to initiate projects that would alleviate poverty,
facilitate job creation in nodal areas and expand access to a better life.

Fortunately, Total and Sasol partnered with the department to pilot these
IeCs in Northern Cape, Eastern Cape, KwaZulu-Natal and Limpopo. Together we
have been able to operationalise five IeCs. We take deep pride in the five
centres, namely, Kgalagadi IeC in Dithakong Village, in Northern Cape; Ehane
IeC in Greytown, in KwaZulu-Natal; Caba Mdeni IeC in Matatiele, in Eastern
Cape; Moshaweng IeC in Laxey, in Kuruman (Northern Cape); and Mutale IeC in
Thohoyandou in Limpopo. Other centres are at various stages of development.

The lack of energy resources in our rural areas is a big challenge for
government. As a caring and responsive government, we cannot abandon our poor
and less privileged rural communities to the vagaries of poverty and neglect.
Energy is a core prerequisite for any sustainable development. We cannot
overlook the fact that rural development transitions are made more difficult by
the uncertainties of energy provision. In view of this energy divide, the
Department of Minerals and Energy is committed to contributing towards the
eradication of energy poverty and also rally behind national government
strategies aimed at alleviating urban and rural poverty.

Our department is mandated to ensure security of energy supply to our
motherland. Our Integrated National Electrification Programme which seeks to
eradicate energy poverty by 2012 is premised on meeting the targets of the
Millennium Development Goals to which our government is committed. The IeCs as
products of the partnership of the DME with relevant stakeholders, namely, the
private sector, municipalities and donor agencies make a significant
contribution towards facilitating universal access to electricity.

An Integrated Energy Centre (IeC) is a one-stop energy shop owned and
operated by the community co-operative. It is basically organised as a
community project. It provides energy solutions to communities, access to
affordable safe and sustainable energy services. Each local IeC is linked with
the Integrated Development Plans (IDPs) of the particular area, which is
implemented through the Integrated Sustainable Rural Development Strategy, thus
integrating the provision of wider energy choices with other projects like
water supply, building schools and clinics, etc. The community owns this
process through a community based co-operative and dictates how to have their
needs met, especially as they were part of developing the IDPs.

The IeC provides access to safe and affordable energy resources to poor
households. It also provides access to information regarding safe, efficient
and environmentally sustainable use of energy sources. IeCs promote the Small,
Micro and Medium Empowerment sector through job opportunities in energy related
business.

It would be disingenuous of us if we were not to concede that the
establishment of IeCs has been smooth sailing without teething problems. Some
of the major challenges that the programme experienced were related to
governance and management, including lack of financial and business management
skills and compliance with the Co-operative Act of 2005, and other relevant
prescripts. I have been reliably informed that the department together with
other stakeholders in the programme are addressing these challenges. It is my
pleasure to share with you that the department has developed a sustainability
strategy and rollout plan to establish more IeCs, until at least 2015.

It is gratifying to highlight that during their construction period, IeCs
provide short-term employment to not less than 100 local people and at least
eight permanent staff members once they are operational. Furthermore, the IeC
has a village vendor network of at least 10 people who serve as delivery points
within the communities so that people could purchase energy products instead of
going to the IeC. The village vendors are trained on how to use the energy
sources safely and they in turn provide the training to local people. We
commend the work that Paraffin Safety Association and Local Provincial
Government Association are doing in this regard.

I have been informed that some IeCs have established small medium and micro
enterprises (SMMEs) such as sewing and catering projects, public phones,
tele-centres to access the internet and other Information Technology (IT)
services, Automatic Teller Machine (ATM) etc. I would like to challenge all of
you to visit the Mutale IeC in Limpopo to see how a typical IeC should look
like and be operated and managed. There is no reason why other IeCs cannot
emulate the Mutale IeC. This is a challenge not only to the Department of
Minerals and Energy IeC team, but also to all the stakeholders that are
involved in this programme.

The Department of Minerals and Energy would like to re-affirm its commitment
to establishing more IeCs throughout the country in order to minimise energy
poverty. Ruth First, in her book, 117 Days, recounts the horrific torture by
electric shock meted out to Comrade Looksmart Solwandle Ngudle by security
police whilst locked up for 90 days detention in 1963. The inquest on Comrade
Ngudle's death in detention exonerated the security police but failed dismally
to dim the light on his name as one of our country's martyrs for freedom and a
better life. It is our considered view that IeCs give concrete substance to
freedom and a better life to our rural communities. We will continue to engage
with all our partners to intensify the rolling out of IeCs in our second decade
of freedom to ensure universal access to electricity. Electricity should be
used to change the lives of our people for the better rather than to
electrocute them to death for opposing injustice as was the case in the
past.

Programme director, allow me to take this platform to commend all the
stakeholders for their continued commitment to the roll out of IeCs, especially
Sasol and Total with whom we started this programme. Let me also take this
opportunity to invite other companies and organisations to join us as we strive
to bridge the gap between the first and second economy in our country by
fighting energy poverty.

I thank you.

Issued by: Department of Minerals and Energy
19 October 2006