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CONSULTING FIRM SHIFTS TO PUBLIC-SECTOR PARTNER ROLE

05 April 2019

Multinational engineering consultancy Aurecon sees
a need to shift the group’s role from that of consultant for engineering design
and delivery to being more of a partner to government, specifically as adviser
and decision-maker on important infrastructural challenges.

This will become the role of the consulting
industry in the future, says Aurecon managing principal Dr Stephan Jooste.

 “Most of the
consulting industry tries to take a proactive stance in trying to solve its
challenges,” states Jooste, highlighting the role industry is taking in
engaging in forums and with government entities.

Aurecon has, for example, recently hosted the
Association for Municipal Electrical Utilities in a collaborative discussion on
how to resolve municipal revenue challenges.

Owing to the corruption scandals regarding
irregularities in government tender processes for infrastructure projects,
government has been left financially constrained, requiring the support of the
private sector for infrastructure projects.

These scandals have tainted the interaction between
the public and private sector, says Jooste.

“At a time when government should be encouraging
greater partnerships, it also needs to be putting additional controls in place
regarding the procurement process. Finding a balance between these two points
is probably the big challenge that government is facing.”

Jooste also emphasises the political uncertainty in
South Africa, particularly before
national elections, which has also resulted in significant projects being
delayed, as certain decisions are pending, depending on the outcome of the
election. This significantly impact investor confidence.

Another significant challenge for infrastructure
projects in Africa is that many African
governments do not have the capital funds required. Jooste also emphasises that
this is exacerbated by a lack of foreign exchange which limits the extent to
which these African countries can make use of global, particularly South
African, consulting support.

However, Jooste states that there are positive
prospects for investment into many African countries, specifically in
East Africa.

“For example, we are working on a large number of
energy projects in East African countries. Many of those are because there is
consistent legislative framework that actually allows projects like these to
thrive,” he says.

The consistent legislative framework around
renewables projects in South Africa has similarly provided
opportunities for significant projects.

Jooste states that there are opportunities in
sectors related to water and wastewater management and would be attractive to
potential investors, should the necessary legislative framework be in place.

Jooste maintains that the financial and training
investment required for companies to shift their operations to being more
digital makes is probably the most significant constraint to adoption.

Further, using digital technology is also
increasing the prominence of ‘green’ buildings, which reduce or eliminate
negative impacts on the environment in the design, construction and operation
process. These buildings, while not featuring significantly on the continent,
are already a well-entrenched feature in South Africa, says Jooste.

“We are working with some clients where the focus is shifting from just a building envelope to the way precincts operate and how you get sustainability at a wider level.”http://www.engineeringnews.co.za/article/consulting-firm-shifts-to-public-sector-partner-role-2019-03-20

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