Water, Sewage & Effluent November December 2018 | Page 21

1. Introduction
South Africa is considered the gateway
to Africa, representing an ideal platform
for its economic growth and prosperity.
However, the country is in the midst
of several critical challenges, which
at present, prevents it from achieving
this prosperity. New solutions to old
problems are needed in order to turn
the situation around.
There are several economic sectors
which drive the South African economy.
This paper focuses exclusively
on the construction sector which
The notion of innovation being the
forerunner of economic growth seems
accurate for the trenchless sector as
seven out of the ten largest ISTT affiliate
societies feature within the top ten of
the world’s largest economies, including
1.2 The South African story
At present, South Africa’s economic
outlook remains precarious. The
country’s Gross Domestic Product
(GDP) shrunk by 2.2% within the first
quarter of 2018 (Stats SA). Although the
country’s GDP is influenced by external
factors such as currency strength and
climate change (as seen by the drought
conditions in the Western Cape which
affects agricultural output), several
of the underperforming sectors are
influenced by internal constraints and
inherent challenges facing government.
The GDP performance points
toward systemic issues within the
country. A series of underperforming
elements combine and cascade into a
continued cycle of deficit which drives
further economic underperformance.
Economists refer to this as a poverty
trap as illustrated in Figure 1 and
evidenced by current statistical trends.
1.1 What is trenchless technology?
According to the International Society
for Trenchless Technology (ISTT):
“Trenchless Technology involves the
installation, replacement or renewal
of underground utilities with minimum
excavation and surface disruption”. This
innovative approach is at the forefront of
pipeline construction as it is the veritable
evolution of the installation of buried
pipeline infrastructure. It is now possible
to upgrade underground pipelines more
efficiently using TT than the conventional
way of digging trenches.
Technological
innovation
has
always been considered a major
force in economic growth. In the most
fundamental sense, there are only
two ways of increasing the output of
the economy:
• Increasing the number of inputs that
go into the productive process, or
• Finding new ways in which to get
more output from the same number
of inputs (Rosenberg, 2004).
1.3 South Africa’s declining economic
growth
Increased attention from ratings
agencies and the recent downgrades
have emphasized the challenges South
Africa faces. Political uncertainty
and policy direction are often listed
as prominent reasons for negative
innovations
ABSTRACT
Trenchless technology, in particular
the pipe bursting technique, is an
instrument which can be used to unlock
economic opportunities for South
Africa. The use of trenchless technology
for pipeline installation, rehabilitation
and repair can rapidly and efficiently
alleviate the service delivery issues
associated with deteriorating pipeline
infrastructure. Declining economic
ratings and statistical indicators
have compelled the government to
prioritize employment creation and
to stimulate economic growth. In
contrast to this, ongoing deterioration
of ageing infrastructure causes service
disruption and ultimately results in
service delivery protests. Sinkholes,
overflowing sewers and these protests
then cause further disruption to the
country’s economic activity. This paper
explores the potential implications of
changing the spending priorities of the
government by re-distributing funding to
more innovative construction methods
such as trenchless technology, thereby
unlocking the potential economic
prosperity. This would also alleviate
the rapid deterioration of pipeline
infrastructure along with the associated
negative repercussions. Such an
initiative would require significant
engagement between local government
and private business. This paper serves
as a catalyst to facilitate such dialogue.
the USA, China, Japan, Germany, United
Kingdom, Italy, France and Canada.
It
is
therefore
unsurprising
that this “no-dig” technology has
become ubiquitous throughout these
countries. Although their pipeline
infrastructure is well developed, it
is also of the oldest in the world. The
focus is on rehabilitating, repairing
and installing new pipelines to keep
pace with development and growth,
but doing so more efficiently and with
minimal disruption to their economies,
communities and the environment.
Co-opted board member of Southern
African Society for Trenchless
Technology (SASTT), independent
construction project manager
1
accounts for approximately 3.9% of
the country’s gross domestic product
(GDP) in 2017 according to a report by
PricewaterhouseCoopers (PwC) 1 .
Along with trending issues such as
service delivery and infrastructure
development, change within this sector
is influential in altering the trajectory
of the country’s economic future. This
paper specifically explores the use
of trenchless technology (TT) and in
particular pipe bursting, as a catalyst to
unlock the growth potential in the South
African economy.
Figure 1: SA economy's underperformance cycle.
SA construction 3rd Edition (2017) Business Report, Construction Industry a Good Growth Barometer, Njombo Lekula 5 April 2018
1
www.waterafrica.co.za
Water Sewage & Effluent November/December 2018
19
Neil van Rooyen 1
Part 1
UNLOCKING ECONOMIC GROWTH IN SOUTH AFRICA USING
TRENCHLESS TECHNOLOGY