women in oil and energy south africa...
TRANSCRIPT
Women in Oil and Energy South Africa (WOESA)
Presentation to the Regional workshop on
Mainstreaming Gender in Infrastructure Projects
22 March 2011, Addis Abeba Ethiopia
Jacqueline Williams:
Chairperson WOESA Investment Holdings
Presentation Outline
WOESA as vehicle for gender mainstreaming
WOESA Group of Companies
o Origin and mandate
o WOESA Section 21 (not for profit)
o WOESA Investments
o WOESA Investment Holdings
Opportunities and Challenges
Infrastructure projects
o Bethlehem Hydro Project
What WOESA brings to gender mainstreaming
Lessons to be learned for gender mainstreaming
WOESA as vehicle for gender
mainstreaming
South African policy on gender
mainstreaming since 1994
Statutory vehicles for gender
mainstreaming
Sectoral responses from women
WOESA as vehicle for gender
mainstreaming in oil and energy sector
WOESA’s involvement in infrastructural
projects
WOESA Origins
WOESA was established in 2002 with support
from the then DME and the Minister of Minerals
and Energy, now DoE
WOESA was created as a not for profit company
In time, with the view of ensuring financial
sustainability, it established an investment
company
Later creating WOESA Investment Holdings with
the view of creating a BB women’s company
WOESA
section 21
WOESA Investments
(Pty) Ltd
WOESA members
1200 Individual
Shareholders
WOESA
Investment Holdings Ltd
WOESA Group of Companies
24% 76%
100%
WOESA’s Mandate
WOESA’s mandate is to facilitate and promote
business opportunities for and to enhance the
participation of South African women in the oil and
energy sector by:
oFacilitating broad involvement of women in
the energy sector
o Interfacing with all relevant stakeholders, in
order to foster a conducive environment for
the empowerment of women
oCreating a platform and network for women in
the oil and energy sector
WOESA (not for profit)
Established 2002
Presently Nearly 300 members
o Members are women-owned companies country-wide (oil,
energy and other sectors)
WOESA provides training courses for women and
access to business opportunities
WOESA has a close relationship with the DoE and
SAPIA (South African Petroleum Industry Association)
WOESA is funded by contributions from member
companies and some sector corporate
o 20% of dividends earned by WOESA Investments will
contribute to funding WOESA Section 21 (not for profit)
Membership
Growth in number of women owned
member companies
o End of 2003: 60
o End of 2005: 105
o End of 2008: 272
o End 2010 300
Professional Women in Energy Forum
Corporate members: 7 (oil companies)
Benefits to Members
Training:
o Access to oil and energy sector training by
MEETI (Mineral and Energy Ed, and Training)
o Financial workshops held in centres
throughout the country
Awareness raising:
o Petroleum value chain workshops
o Renewable energy workshops
o Exposure trips to refineries and power
stations
Benefits to Members cont.
Networking:
– Facilitating opportunities through national and
international conferences
Possibility of using the WOESA brand identity:
– Now ready to capitalize on this (business
opportunities)
Facilitating opportunities:
– To participate in businesses in the sector as
individual companies
– To participate with other member companies
– To participate through being shareholders of
WOESA Investment Holdings
WOESA Investments
Established in 2005
o To participate in investment activities in order to ensure
long-term financial sustainability of WOESA S21 (not for
profit)
Navigated through five difficult years to assist
women’s participation in the sector
CEO appointed in June 2007; hands-on
involvement by board members
Try to have good working relationship with funding
institutions – DBSA, Central Energy Fund, NEF
No current shareholding in major oil companies
o Sectoral transactions completed before WOESA
Investments was established
WOESA Investment Holdings
Established 2006
To secure funding from individual members as
investors in WOESA Investments
Owns 100% of WOESA Investments
Approx. 1200 shareholders, mostly
shareholders in WOESA member companies
Max. individual holding 5%, range R1,000 to
R1m
Black ownership 90%
Black female ownership 85%
Group Opportunities
Inyosi
o Held directly by WOESA S21
o Dividend from March 2011
Greif
o 6.7% of BEE 30% of packaging company
o Transaction completed
o Transaction size R 180 mill
Bethlehem Hydroo 37% of hydro-electric project
o Transaction completed
o Project size R 110 mill
Group Opportunities cont.
Sasol Inzalo Schemeo Will only get dividend in ± 7 years time
Smile Communications SA – 5%
Petrolineo > 8.3% of petroleum products pipeline
o Construction license awarded
o Development finance approved
o Project size ± R 4.6 bill
o Many stumbling blocks even after 7 years !!!!
Oil and product trading
A number of other early stage opportunities
Challenges WOESA (not for profit)
Raising finance for operating costs and to
maintain the office and interact with
members and stakeholders
Inadequate backing from government and
public sector institutions
Muted/erratic support by energy sector
companies
Retain the interest and enthusiasm of board
members given that they have their own
business involvement and receive no board
fees and carry their own costs for WOESA
activities
Challenges WOESA (not for profit) cont.
Offer relevant and practical training to women in
order to enable/empower them to establish their own
businesses in the energy sector
The dichotomy of the need for training and capacity
vs the need to earn a living
Many rural women find it difficult to attend courses
because of the travelling and accommodation costs
associated with attending training at a central venue
Challenges WOESA (WIH)
Seed funding to run the office until such time as
investments deliver cash flow some of which can be
channeled to overheads
Access resources (Funder belligerent to women)
– Women’s inability to access necessary funding, skills and
resources to give them edge in the sector
– Require administrative staff and investment professionals to
plan, negotiate and oversee investments
Administration associated with >1000 shareholders
– Maintaining records and interacting with shareholders
Unrealistic expectations from shareholders for
dividends in the short/medium term
Challenges WOESA (WIH) cont.
The time consuming business of following up leads and
identifying the good opportunities amongst the large
number of ideas and projects
Attract opportunities that give immediate cash flows
– To acquire an established business which can generate
positive cash flows
The capital intensity and long lead times associated
with energy projects which makes it difficult for a small
investment company to be taken seriously
Attracting and retaining big opportunities
Bethlehem Hydro: The Opportunity
The first green fields new Hydro project in South
Africa since 1980’s
– Project consists of two parts (7 Megawatt). Construction on
first unit started in 2007.
– 2009 first unit commissioned – 3 MW Sol Plaatjie plant and
– 2010 second unit commissioned – 4 MW Merino plant, both
on the As river in the Free State Province
DME encouraged the developer to invite WOESA to
participate as BEE group
WOESA formed consortium with some member
companies:
– HYDROWSA – owns 37.7% of project
– WOESA owning an effective 15.3% of the whole project
Bethlehem Hydro: The Opportunity Cont.
There has been huge cost overruns
o Because especially of the price of steel and cement,
o But because of the increase in the price of electricity in the last
two years and more increases in the next two years, the
economics of the project have improved
Because of this exposure WOESA will be able to
participate in three more projects with the same
developer
o If WOESA gets funding in time
Challenges Bethlehem Hydro Project
Our operating expenses during the project planning
and development phase
o The long lead time requires extensive upfront input
Raising finance for the project
o Frustrating interactions and slow decision making by the
project funders (staff turnover, etc)
Being regarded as junior partners by our fellow
shareholders
o Because of being women or because they doubted our
capacity to deal with such a project
Challenges Bethlehem Hydro Project cont.
Challenges in terms of the withdrawal of
CEF from the project when it was already
at an advanced stage
o CEF ensured that we retain our participation in
the project
Maintaining good governance ; dealing
with a consortium which included a
number of companies
The long lead time before the project
delivers positive cash flow
What WOESA brings to gender
mainstreaming
Broad based empowerment credentials
o> 90% black owned
o> 95% female owned
o± 85% black women owned
oGeographic spread of shareholders
oUrban and rural shareholders
Country-wide infrastructure
oRegional representatives in 8 provinces
oParticularly strong in Gauteng, KZN, Eastern
Cape, Western Cape, Mpumalanga
What WOESA brings to gender
mainstreaming cont.
Energy sector focus
o Oil and Gas industry value chain
o Suppliers and customers of the oil /
petrochemicals industry
o Other energy sectors
Active involvement of women in the
business
What WOESA brings to gender
mainstreaming cont.
Business credentials of directors
– Oil industry experience to CEO level
– Diversified experience
– Involvement with government in energy
related policy making teams
– Senior financial roles in private sector and
government
– Work experience with parastatals
– International corporate experience –
Netherlands, Malaysia, Mozambique, USA,
etc
Areas where WOESA needs support
Seed Funding to assist the WOESA
with
– Projects which will facilitate a steady
Income / dividend flow
– Access the necessary skills and
resources to give them edge in the
sector
– In attracting and retaining big
opportunities, like Petroline.
– To attract opportunities that give
immediate cash flows
Immediate areas of support to the
WOESA group of companies
Seed Funding for WOESA Investment
Holdings
o Will assist the WOESA admin costs
Financing of projects at favorable terms
Access or secondment of experienced
professionals and Admin staff to WIH and
WOESA
Providing office space and admin overheads
Lessons to be learned for mainstreaming
gender in infrastructure projects
There needs to be both government and
industry commitment to women’s
empowerment
Gender Mainstreaming is a national
responsibility
o It is unsustainable if it is a women’s challenge
only, it is a national imperative
o It must be budgeted for by both public and
private organisations
Lessons to be learned for mainstreaming
gender in infrastructure projects cont.
Women have to organise themselves
nationally in order to leverage political
and social will
o This process should not just be financed by
women only
It does not happen by itself, it must be
planned
There needs to be a Women’s fund for
each sector which looks at capacity
building and access to finance
Questions
???
Thank You
Contact details
Office: Isle of Houghton
Wilds View Building, Level 1
Corner Boundary & Carse O’Gowrie
Houghton, Johannesburg 2146 SA
+27-11-880 7479
Email: [email protected]
Website: www.woesa.com
Contact: Khumo Ntlha, CEO