The presentation will explore the viability of shale gas in South Africa from an economic lens. By focusing on issues such as geology, decline rates and breakeven costs of wells and exploring the relationship between gas prices and cash-flows, the presentation will seek to answer the core question of whether a shale revolution would occur in South Africa. In doing so, it will explore questions around the longevity of a shale revolution, the price at which shale gas is commercially viable, and the economic lessons from the US shale revolution.  Finally, it will look at the outstanding research questions pertaining to economic and investment issues related to shale gas. 

ABOUT THE SPEAKER

Saliem Fakir is the Head of the Living Planet Unit at the World Wildlife Fund South Africa. The Unit's work is focused on identifying ways to manage a transition to a low-carbon economy. Saliem has previously served as senior lecturer at the Department of Public Administration and Planning and Associate Director for the Center for Renewable and Sustainable Energy at the University of Stellenbosch, where he taught a course on renewable energy policy and financing of renewable energy projects.

He has also previously worked for Lereko Energy (Pty) Ltd (2006), an investment company focusing on project development and financial arrangements for renewable energy, biofuels, waste and water sectors. He also served as Director of the World Conservation Union South Africa (IUCN-SA) office for eight years (1998-2005). Prior to the IUCN he was the Manager for the Natural Resources and Management Unit at the Land and Agriculture Policy Center.

Saliem served on a number of Boards. Between, 2002-2005, he served as a chair of the Board of the National Botanical Institute. He also served on the board of the Fair Trade in Tourism Initiative, and was a member of the Technical Advisory Committee of the Global Reporting Initiative, based in Amsterdam. He currently serves on Boards of GreenCape, Fair-Trade Label South Africa, Center for Renewable and Energy Studies, and Center for Environmental Rights.

He is a regular columnist for the South African Center for Civil Society and Engineering News.

Saliem received a Senior Executive Management course at Harvard University in 2000, a Master's in Environmental Science from Wye College, London, and a B.Sc. with honours in molecular biology from WITS.

TIPS recently completed a study investigating the impact of the controversial Eskom electricity supply agreement with Aluminium mining conglomerate BHP Billiton using a cost-benefit analysis (CBA) methodology to assess the costs and benefits to society of cancelling the special pricing agreement (SPA) that Eskom has with BHP Billiton. The CBA considered the following scenarios (i) Continuing with the current electricity arrangement (ii) Removing the electricity subsidy permitted to the BHP aluminium smelters and allowing the electricity price they pay to adjust to megaflex rates, and (iii) Comparing scenarios (i) and (ii).

The focus of this Development Dialogue will be to present the quantitative aspects of this research. The Development Dialogue calls for an interesting discussion as this is a hotly debated issue in South Africa at the moment, with the National Energy Regulator of South Africa (NERSA) having received a request from Eskom in 2012 to investigate its contract with BHP.

ABOUT THE SPEAKER

Dinga Fatman has a Masters degree in Economics at the University of KwaZulu-Natal. He joined TIPS in 2011 to provide research assistance in the industrial policy pillar. His Masters dissertation topic was entitled: “Labour Regulations and Firm Performance in South Africa”. Dinga's general research interests involve South Africa's investment climate issues and advanced econometrics.

TIPS recently completed a study investigating how South Africa can improve the strategic use of its technical infrastructure (which include SABS, NMISA, SANAS, and NRCS) in a way that maximises enforcement by creating linkages with other measures such as import controls, consumer protection and customs and administrative procedures in order to grow the local manufacturing sector and facilitate manufacturing exports.

This Development Dialogue presents an overview detailing the importance of technical regulations in protecting local manufacturers and consumers, but also looking at how globally these regulations can/are being used as a form of protection.

ABOUT THE SPEAKER

Mbofholowo Tsedu is an Assistant Programme Manager for the Industrial Development pillar at TIPS primarily focused on trade and industrial policy issues. Mbofholowo has been engaged in numerous industrial policy-related studies including on designation, local content reporting, sector strategies and localisation. He also has been responsible for providing supplementary research support to TIPS's other pillars. Mbofholowo has an economics degree from the University of Pretoria and is currently completing a MSc programme focused on Industrialisation, Trade and Economic Policy at the University of Strathclyde, Glasgow, Scotland.

TIPS recently completed a study investigating how South Africa can improve the strategic use of its technical infrastructure in a way that maximises enforcement by creating linkages with other measures such as import controls, consumer protection and customs and administrative procedures in order to grow the local manufacturing sector and facilitate manufacturing exports.

The main the main technical institutions of South Africa are SANAS – the South African National Accreditation System; NRCS – the National Regulator of Compulsory Specifications; SABS – the South African Bureau of Standards; and NMISA – the National Metrology Institute of South Africa.

This Development Dialogue presents an overview detailing the importance of technical regulations in protecting local manufacturers and consumers, but also looks at how globally these regulations can/are being used as a form of protection.

Main Speaker: Mbofholowo Tsedu

Mbofholowo is an Assistant Programme Manager for the Industrial Development pillar at TIPS primarily focused on trade and industrial policy issues. Mbofholowo has been engaged in numerous industrial policy-related studies including on designation, local content reporting, sector strategies and localisation. He also has been responsible for providing supplementary research support to TIPS's other pillars. Mbofholowo has an economics degree from the University of Pretoria and is completing a MSc programme focused on Industrialisation, Trade and Economic Policy at the University of Strathclyde, Glasgow, Scotland.

Seminar by Milford Bateman: Moving from failed 'anti-developmental' microcredit to a 'developmental' local financial system in South Africa: exploring the key institutions, problems and prospects.

About the speaker

Milford Bateman is a freelance consultant on local economic development policy. Since 2005 he has been Visiting Professor of Economics at Juraj Dobrila University of Pula, Croatia. He has PhD from University of Bradford, UK, and was a UK University-based lecturer in East European economics and a consultant on local economic development policy, before becoming a full-time consultant on local economic development policy working on local economic development policy and programme design and across Eastern Europe, Middle East, China, South Africa and Colombia. Dr Bateman has published widely on issues of local economic and social development through several edited books on entrepreneurship and SME development and a number of peer-reviewed journal articles and book chapters. He is the author of Why Doesn't Microfinance Work? The Destructive Rise of Local Neoliberalism published by Zed Books in 2010.