Latest news with #SANS241
IOL News
16-05-2025
- Business
- IOL News
The power of a people-centric business model: A path to sustainable success
In today's rapidly evolving business landscape, the importance of a people-centric approach cannot be overstated. Image: Oupa Mokoena / Independent Newspapers As societies around the world increasingly embrace egalitarian principles, the outdated notions of top-down and hierarchical control are gradually fading into the background. At MANZI Water, we aspire to embody this shift by championing a people-centric approach that empowers local entrepreneurs and fosters community growth through a decentralized business model. In today's rapidly evolving business landscape, the importance of a people-centric approach cannot be overstated. Recently, I had the privilege of sharing the story of MANZI Water on The Big Small Business Show, an experience that allowed me to reflect on the core principles that drive our success. Our journey is not just about providing clean drinking water; it's about empowering local entrepreneurs and fostering community growth through a decentralized business model. At MANZI Water, we have consciously chosen to operate outside the traditional franchise framework. Instead, we have developed a purpose-built model governed by a robust License Agreement and supported by a transparent governance structure known as the Central Hub. This framework is designed to empower independent Licensees across South Africa, allowing them to thrive while ensuring the integrity of our brand. The contrast between a top-down approach and our bottom-up, people-centric model is stark. In many corporate environments, decisions are made at the highest levels, often prioritizing profit margins over the needs of the community. This can lead to a disconnect between the business and its stakeholders, stifling innovation and limiting opportunities for local entrepreneurs. In contrast, our model places the power in the hands of individuals who are deeply rooted in their communities. By enabling local entrepreneurs to operate under clear guidelines, we create a network that is not only sustainable but also responsive to the unique challenges faced by each community. Key to our success is the strict adherence to water quality control protocols aligned with SANS 241, ensuring that every drop of water we provide meets the highest standards. Our License Agreement outlines ethical standards that promote respect and professionalism, fostering a culture of accountability among our Licensees. This is not merely a contractual obligation; it is a commitment to uphold the values that define the MANZI Water brand. Our approach is intentionally inclusive. The R850 per month License Fee may seem modest, but it is designed to lower barriers to entry for aspiring entrepreneurs, particularly in underserved areas where access to clean water is critical. By shifting the cost burden to operational setup and volume-based rebates, we ensure that our model supports local reinvestment and job creation. In just over two years, we have launched more than 100 outlets, created over 300 jobs, and introduced eco-friendly automated MANZI Water Refill Stations in communities that previously struggled with inconsistent municipal supply. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ What we may lack in polished marketing, we make up for in passion, resilience, and tangible impact. Our mission is not just about building a water brand; it's about creating opportunities for everyday South Africans to own and operate meaningful businesses. This is the essence of a people-centric model: it empowers individuals, fosters community growth, and prioritizes the well-being of all stakeholders. As I reflect on our journey, I am reminded that success is not solely measured by financial metrics. It is about the lives we touch, the communities we uplift, and the sustainable practices we champion. We are not perfect, but we are accountable. We are not flashy, but we are growing, and we are here to stay. In a world where many businesses prioritize short-term gains, I invite you to consider the long-term benefits of a people-centric approach. By investing in individuals and communities, we can create a more equitable and sustainable future for all. Together, let us build a legacy that empowers, uplifts, and transforms lives—one outlet and one community at a time. Alfred Challis, CEO of MANZI Water Image: supplied. Alfred Challis, CEO of MANZI Water. BUSINESS REPORT Visit:
Daily Maverick
06-05-2025
- Business
- Daily Maverick
Shocking reality of systemic water sector collapse laid bare
At the recent Presidential Water and Sanitation Indaba, the shocking reality of the systemic collapse of the water sector was laid bare for all to see. Reliable information from the Blue, Green and No Drop Reports indicates that more than 100 municipalities are dysfunctional. The impact of this dysfunction is failing infrastructure, deteriorating water quality, escalating costs, growing unreliability and the glaringly obvious inability of delinquent local authorities to fix what is broken. None of this is in dispute any longer. At the heart of the problem is financial mismanagement. If one just looks at the water boards, then the extent of the crisis becomes apparent, because a staggering R28-billion is owed by municipalities to the water boards. Let us unpack this in greater detail. The Water Services Act of 1997 distinguishes different legal entities in the water services value chain. Only a water services authority (WSA) is allowed to provide potable water to consumers. Typically, the municipality is also the water services authority, but the act also provides for a separate category of legal service provider. This is known as a water services provider (WSP), which must be registered as a technically competent entity, and it can operate under contract to the water services authority, which in most cases is the municipality. Accountability The differences between these two entities are important. The first difference relates to accountability. The WSA is legally accountable for water services that are compliant with the human health safety standard known as SANS 241. If the municipality is also the WSA, they cannot absolve themselves from their accountability under law, even if they appoint a WSP to act on their behalf. In effect, the WSP becomes the technically competent agent acting on behalf of the WSA, but only the WSA is legally accountable if the WSP fails to deliver. This is where contractual obligations become important, because the WSA can delegate responsibility for service provision, but it cannot delegate accountability. This is an important aspect to understand, because the Financial Management Act does not recognise fiduciary trust. Think of fiduciary trust as the legal obligation of an executive, known as the fiduciary, to act in the best interests of those on whose behalf financial decisions are being made, typically on a board. It prevents the executive from promoting their own self-interest above the interests of the people on whose behalf they are acting. Under present circumstances, when municipal executives mismanage funds, they are not legally accountable to the same extent as company directors are in terms of the Companies Act of 2008. Roles The second difference is about the role of each structure. A WSA is responsible for planning, regulation and the assurance of supply to the public. Assurance of supply is the guarantee of a defined pressure, quality, quantity and price at a defined location. The WSP is contracted to provide the actual services needed to meet the WSA's objectives. Again, the municipality cannot absolve itself from accountability. The third difference is that the WSA has the right to contract a WSP, but the relationship between the two is such that the municipality will always be the master and the WSP will be the subservient actor. So, we have two legally defined entities at play, with precise roles and responsibilities, with the WSA always being the single accountable authority if the WSP fails to deliver. However, there is a third legally defined entity in the water services value chain. Water boards are defined as Schedule 3B State Owned Enterprises (SOEs) in terms of the Water Services Act. The water boards must be self-funding, because they can receive no bailouts or operational grants from government. This makes them fundamentally different from municipalities acting in their role as a Water Services Authority that receives various grants from government for infrastructure upgrades. Planning This ties in with the second role defined above – planning. Only the municipality is responsible for the planning for water infrastructure, which is a responsibility from which they cannot absolve themselves. That planning determines the infrastructure grant that is allocated to the WSA. Poor planning equates to inadequate funding for infrastructure upgrades, which has nothing to do with any water board. That same planning by the WSA is fed into the water board, because they need to finance future upgrades in the bulk supply system by raising capital on the bond market. A fundamental difference between a municipality and a water board is that the former relies on grant money provided by the state, whereas the latter can only raise capital by leveraging the strength of their own balance sheet when raising bonds. The Rand Water Bonds are particularly robust because they are the single largest sustainability-linked bonds in Africa. Revenues A second difference between a municipality and a water board is that the former collects revenues from all its customers, whereas the latter only collects revenue from one customer – the municipality acting as the water services authority. This means that the level of complexity in the billing and revenue collection systems is skewed in favour of the municipality, which must manage thousands of monthly invoices and statements, whereas the water board manages only one invoice and statement per municipality that it supplies. In the case of Rand Water, that means three large metros (Johannesburg, Tshwane and Ekurhuleni), plus many smaller municipalities. Stated differently, the municipalities must manage a significantly more complex revenue collection system than water boards. Delinquency It also means that water boards are more vulnerable to a delinquent customer than a municipality is. If one municipality is delinquent, then the water board runs the risk of insolvency, which in turn impacts its capacity to raise capital on the bond market because of a compromised balance sheet. The importance of all this detail becomes relevant when we focus on the ability of the delinquent municipality to self-correct. They simply go to government and ask for a bailout, which the water board cannot do. Therefore, the insolvency of a water board is a significantly bigger risk to society than the insolvency of any single municipality. Using Rand Water as an example, if they face a liquidity crisis because one large metro doesn't pay its monthly invoice, then many other municipalities and metros will be impacted negatively. What happens if the government is unable to bail out a municipality? That's where the rubber meets the road, because that is precisely where we are at present. The tax coffers are empty, so bankrupt municipalities are simply unable to fix what is broken. The last line of defence is the Schedule 3B SOEs such as Rand Water, Umgeni Water, Berg Water and Magalies Water, whose balance sheets are still strong enough to raise the necessary finances on the bond market. This is why the Association of Water and Sanitation Institutions of South Africa (Awsisa) has worked closely with these water boards to pioneer the concept of Public-Private-Partnership Special Purpose Vehicles. This brings the Companies Act into the picture, which holds officials legally liable in terms of the many fiduciary laws associated with corporate governance. This is literally the last line of defence between the public and a failing state. It is also the reason why attempts are being made to sabotage the initiative, because the gravy train prospers when fiduciary responsibility is absent. DM
