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06 August 2020 | Story Leonie Bolleurs | Photo Pixabay
Antonie Beukes says although the university is involved in a number of projects that add to its BBBEE rating, considerable attention is given to initiatives to better the lives of some of its suppliers.

For the past two years, the University of the Free State (UFS) has had one of the best Broad-Based Black Economic Empowerment (BBBEE) ratings among universities in South Africa. The university recently received confirmation that its Level-4 rating has been approved for another year. 

According to Antonie Beukes, Assistant Director in the UFS Department of Finance, this rating enables the university to compete with the advantage of a 100% procurement level regarding tenders. “It will also help with our third-stream income, and more importantly, this level assures everyone that we are on the right track regarding BBBEE,” says Beukes. 

Opportunity to better the lives of others

The university had to work hard to maintain their Level-4 BBBEE status. Beukes says one of the initiatives they focused on was the development of suppliers and enterprises that are not associated with the UFS. 

“Many people think of BBBEE initiatives as a project where money is paid, and that is where the buck stops. Although this may get you some points, it is important for the university to better the lives of others.”

“We mostly focus on Exempted Micro Enterprises (EMEs) and Qualifying Small Enterprises (QSEs), because they are the small, start-up companies that need help to be sustainable. Even though assistance can take various forms, such as spending time with suppliers and offering services at a lower cost or free of charge, the university gives considerable attention to providing training to these service providers,” says Beukes.

Always strive for a better rating

The UFS Department of Finance strives to achieve a better rating each year. “The aim for next year will obviously be to be rated as a Level 3 but maintaining the Level 4 will be a big achievement.”

Beukes, however, points out that one needs to be realistic and must keep track of what is going on in the economy, as well as the challenges brought about by the COVID-19 pandemic. 

He continues: “Strict new rules regarding BBBEE scoring also came into play last year and we see that most businesses are rating lower scores (higher levels), which directly impact the UFS.”

News Archive

Research helps farmers save with irrigation
2017-02-15

Description: Irrigation research Tags: Irrigation research

Marcill Venter, lecturer in the Department of
Agricultural Economics at the University of the
Free State, has developed the mathematical
programming system, Soil Water Irrigation
Planning and Energy Management in order to
determine irrigation pump hours.
Photo: Rulanzen Martin

Her advice to farmers is that they should make sure they are aware of the total cost (investment and operating costs) of an irrigation system. In most cases the investment cost is low, but the operating cost over the lifetime of the system is high.

“It is very important to have a look at the total cost and to install the most economic system,” says Marcill Venter, lecturer at the University of the Free State (UFS), who has done research on the economic sustainability of water-pipe systems.

Irrigation systems important components for farming
This research comes at a time when many farmers are relying on their irrigation systems due to persistent drought and low rainfall during 2016. South Africa has also experienced an abnormal increase in electricity tariffs in recent years. Due to tariff increases which threaten the future profitability of irrigation producers, the Water Research Commission (WRC) has launched and financed a project on the sustainable management of irrigation farming systems. “I had the opportunity to work on the project as a researcher,” says Venter.

The heart of every irrigation system is the water pipes that bring life to crops and livestock, and this is what Venter’s research is about. “Water pipes are part of the whole design of irrigation systems. The design of the system impact certain factors which determine the investment and operating costs,” she says.

Mathematical system to help farmers
Venter and Professor Bennie Grové, also from the Department of Agricultural Economics at the UFS, designed the Soil Water Irrigation Planning and Energy Management (SWIP-E) programming model as part of the WRC’s project, as well as for her master’s degree. “The model determines irrigation pump hours through a daily groundwater budget, while also taking into account the time-of-use electricity tariff structure and change in kilowatt requirements arising from the main-line design,” says Venter. The model is a non-linear programming model programmed in General Algebraic Modeling System (GAMS).

Design of irrigation system important for sustainability

The main outcome of the study is that the time-of-use electricity tariff structure (Ruraflex) is always more profitable than the flat-rate structure (Landrate). The interaction between the management and design of a system is crucial, as it determines the investment and operating costs. Irrigation designers should take the investment and operating cost of a system into account during the design process. The standards set by the South African Irrigation Institute (SAII) should also be controlled and revised.

Water-pipe thickness plays major role in cost cuts
There is interaction between water-pipe thickness, investment and operating costs. When thinner water pipes are installed, it increases the friction in the system as well as the kilowatt usage. A high kilowatt increases the operating cost, but the use of thinner water pipes lowers the investment cost. Thicker water pipes therefore lower the friction and the kilowatt requirements, which leads to lower operating costs, but thicker pipes have a higher investment cost. “It is thus crucial to look at the total cost (operating and investment cost) when investing in a new system. Farmers should invest in the system with the lowest total cost,” says Venter.

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