ESG TRACKER (SADC EDITION)
1 December 2022 to 31 January 2023 | Johannesburg
Herbert Smith Freehills ESG Tracker (SADC Edition)
There are so many ESG-related publications and developments that it is hard to keep abreast of them all. For this reason, HSF publishes a monthly tracker of ESG-related publications and developments, with a primary focus on developments that may be of most interest to or impact our clients in the Southern African Development
Community, be they corporates, asset managers or asset owners.
This issue covers the period from 1 December 2022 to 31 January 2023.
If you have any ESG-related questions, please get in touch with your usual contact at HSF who will be able to direct you as appropriate.
ANGOLA
24 January 2023
It has been reported that as the third largest oil-producing country on the African continent, Angola is dreaming of a greener future. By 2025, Angola aims to produce 80% of its electricity from renewable sources.
DEMOCRATIC REPUBLIC OF CONGO (DRC)
23 December 2022
It is reported that the Democratic Republic of Congo will implement several initiatives to increase revenue and improve financial transparency in the new year, including a plan to formalize the artisanal gold trade and amend an agriculture law to encourage foreign investment, government officials said.
The copper and cobalt producer is looking to diversify its sources of income after a bumper year in mining that will result in nearly 7% economic growth. The government also plans to expand income taxes and offer tax exemptions in special economic zones, the officials said.
MALAWI
25 January 2023
The Malawian Parliament recently passed the Pension Amendment Bill of 2022. Among other things, the law proposes increasing the proportion of pension benefits to be paid as a lump sum at retirement from 40 to 50 percent and contains stiff penalties for employers who fail to remit pension deduction to fund managers. It has been reported that there are mixed reactions to the proposed amendments. On one hand is a section of pension fund members who can't wait to get part of their
pension to invest "while still energetic". On the other hand, there are `conservatives' who are urging caution and argue that the proposal defeats the essence of pension.
MAURITIUS
9 December 2022
Mauritius intends to develop an Environmental Social and Corporate Governance (ESG) framework so as to position the country as a sustainable international financial centre, stated the Prime Minister, Mr Pravind Kumar Jugnauth. In his address, Prime Minister Jugnauth dwelt on climate change as a high priority matter on Government's agenda. As a Small Island Developing State (SIDS), he pointed out that the country has to operate in an increasingly globalised competitive world against the backdrop of climate change and global challenges such as the Ukraine-Russia war.
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The Mauritian Minister of Finance reportedly announced that Mauritius's government is considering offering as much as $1 billion of social-impact bonds to help fund plans to increase renewable-power production and transition to greener transport. To enable this process, the government intends to establish a regulatory framework to enable the sale of green, blue and social bonds.
Cabinet agreed to the introduction of the Waste Management and Resource Recovery Bill into the National Assembly. The main object of the Bill is to provide for the regulatory framework to ensure the environmentally safe and sound management of solid waste and hazardous waste and a sustainable waste management system through the adoption of a circular economy approach focusing on waste reduction, reuse, treatment, safe disposal, material recovery and recycling. The Bill, inter alia, provides for
a Department of Waste Management and Resource Recovery;
a National Waste Management Coordination Committee;
the appointment of technical advisory committees by the Minister of Environment, Solid Waste Management and Climate Change to advise him on waste management matters;
a system of extended producer responsibility in relation to solid waste; and
the duties and obligations of different stakeholders in relation to waste.
Cabinet agreed to the Nationally Determined Contributions (NDC) Action Plan 2021-2023. The Ministry of Environment, Solid Waste Management and Climate Change has benefitted from technical assistance from the Agence Franaise de Dveloppement for the formulation of a NDC Action Plan which would act as the guiding document to meet the adaptation and mitigation targets and goals set out in the 2021 updated NDC as well as to track and report progress thereon.
With respect to measures for the mitigation sectors, the NDC Action Plan had been developed based on completed and ongoing initiatives/projects at the level of sectoral Ministries and Departments. As regards the adaptation sectors, actions have been formulated based on completed and ongoing sectoral initiatives and projects, namely the 2021 National Climate Change Adaptation Policy Framework and adaptation policy measures announced in the Budget 2021/2022.
MOZAMBIQUE
7 December 2022
It was reported that fuels will in future be taxed through the Specific Consumption Tax, under the revision of the Tax System Law which aims to, among other aspects, reduce the damage caused by fossil fuels. Twenty years after the approval of the law that establishes the organizational principles of the tax system in Mozambique, parliament this Wednesday approved the bill that amends Articles 68, 69 and 70.
This law suppresses the competence of the Council of Ministers to change taxes, passing it instead to the Assembly of the Republic, as a legislative body. The reference to the Simplified Tax for Small Taxpayers (ISPC) is also introduced, which was omitted, as it was created later by Law n 5/2009, of January 12 Eliminating the Fuel Tax and enabling fuels to be taxed under the Specific Consumption Tax (ICE), taking into account their nature and characteristics.
13 January 2023
The English Court of Appeal has unanimously dismissed Friends of the Earth's judicial review of British government's funding of up to US$1.15-billion for a liquefied natural gas (LNG) project in Mozambique. Friends of the Earth had asked London's Court of Appeal to rule the British government decision to fund the project was incompatible with the Paris Agreement on climate change.
NAMIBIA
28 December 2023
It is reported that the much-anticipated Access to Information (ATI) bill, which seeks to compel public and private entities to proactively and promptly make information available, was signed into law by President Hage Geingob on 29 November 2022 and gazetted a month later on 28 December.
The Act aims to promote the public's free access to information held by public entities, and to compel public and private entities to proactively and promptly make information available. Some of the key provisions of the Act includes:
an enforceable right of access to information held by a public entity; or a private entity if such information may assist in the protection any fundamental right or freedom; and
the establishment of the office of Information Commissioner whose roles includes monitoring and promoting the right of access to information in Namibia.
SEYCHELLES
12 December 2022
It has been reported that the Republic of Seychellles has moved a step closer to realizing its clean energy ambitions with the inauguration of a UAE-funded 5-megawatt (MW) solar photovoltaic (PV) plant with battery storage, the second clean-energy project in the African island nation. Developed by Masdar and the Seychelles' Public Utilities Corporation (PUC), the Ile de Romainville Solar Park was financed by Abu Dhabi Fund for Development (ADFD), one of the UAE's leading development-financing institutions owned by the Abu Dhabi government.
The facilities include the 5 MW solar PV plant located in Ile de Romainville, a 3.3 MWh energy storage system located on Mah, and a 33kV system that allows for the safe and stable supply of electricity from the PV power plant to the main island of Mah which, further, increases the resilience of the national grid of the Seychelles. It is estimated that the project will save approximately 2 million liters of fuel annually and offset 6,000 tonnes of carbon dioxide.
SOUTH AFRICA
02 December 2022
The Minister of Forestry, Fisheries and Environment published a notice regarding the consultation on the intention to extend the appointment of the Environmental Assessment Practitioners Association of South Africa (EAPASA) as the single registration authority in terms of section 24H(3) read with section 24H(6) of the National Environmental Management Act, 1998.
The EAPASA was appointed as the single registration authority for a period of five years with affected from 8 February 2018 until 7 February 2023. The notice proposes to extend the EAPASA's appointment by 12 months to all the Minister sufficient time to consider the most sustainable way forward for the longer-term regulation of environmental assessment practitioners.
07 December 2022
The Minister of Forestry, Fisheries and Environment published the draft Section 29 Industry Waste Management Plan for Tyres (IndWTMP) for public comment. The draft was developed by the Council for Scientific and Industrial Research. The IndWTMP, once finalised, will constitute legally binding subordinate legislation which must be implemented by the industry.
The public had 60 days to provide comment on the draft.
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12 December 2022
It is reported that the High Court ordered the Minister of Mineral Resources to release records relating to the decision to include coal in the 2019 Integrated Resources Plan for Electricity (IRP) and the 2020 Ministerial determination for new coal under that IRP. This is a step forward for the #cancelcoal litigation launched in November 2022 in terms of which the applicants have requested the High Court to order the Minister to abandon plans to build 1500MW of new coal-fired power on the basis that it poses significant risks to constitutional rights. The Minister is required to release the documents by 28 February 2023. The court held that "the documents sought by the applicants may well shed light on the reviewability of the IRP 2019," and "also be relevant to those decisions which are sought to be set aside."
21 December 2022
The Minister of Mineral Resources and Energy published the amendment of the Chapter 21 Reporting Forms in terms of regulation 9.2(7) of the Regulations relating to Forms under the Mine Health and Safety Act, 1996. The amendment replaces the following forms: airborne pollutants personal quarterly report form; airborne particulate gasses and vapours personal quarterly report form; heat stress exposure quarterly report form; cold stress exposure report form; and personal noise exposure form.
28 December 2022
The Minister of Forestry, Fisheries and Environment published the postponement of the need to be SANAS accredited as an independent assessor to verify greenhouse gas emissions (GN2917 GG47801) as required by the Technical Guidelines for the Validation and Verification of Greenhouse Gas Emissions (GN1496 GG45452). Under the postponement, the requirement that independent assessors are SANAS accredited is postponed for three years.
29 December 2022
The President published the General Laws (Anti-Money Laundering and Combatting Terrorism Financing) Amendment Act 22 of 2022 (General Laws Amendment Act) (GN 1532 GGG 47802). A further correction notice to the General Laws Amendment Act was published on the same day (GN 1535 in GG 47815).
The General Laws Amendment Act amends various Acts including the Trust Property Control Act, 1988; the Nonprofit Organizations Act, 1997; the Financial Intelligence Centre Act, 2001; the Companies Act, 2008 and the Financial Sector Regulation Act, 2017.
In accordance with the Proclamation issued by the President on 31 December 2022 (Notice 190, GG 47805), sections 9, 10, 16, 18 to 55 and 62 to 65 of the General Laws Amendment Act commence on the date of publication of the Proclamation (ie, 31 December 2022). Sections 1 to 6, 8, 11 to 15, 17, 56 to 58 and 61 commence on 1 April 2023.
26 January 2023
The Minister of Forestry, Fisheries and the Environment published the Consultation of the Draft Amendments to the Waste Tyre Regulations, 2017 published under the National Environmental Management: Waste Act, 2008. The proposed amendments include the insertion of a number of new definitions as well as a new regulation 10A which provides a number of reporting and record keeping requirements.
The public has until 26 February 2023 to submit comments on the proposed amendments.
31 January 2023
The Minister of Forestry, Fisheries and the Environment published the draft Household Hazardous Waste Management Strategy (draft strategy) for public comment. The draft strategy is intended to be a basis for municipalities to build upon when introducing collection of household hazardous waste.
The public has until 3 March 2023 to submit comments on the draft strategy.
31 January 2023
The Minister of Forestry, Fisheries and the Environment published the extension of the commenting period on the draft Multi-Species Biodiversity Management Plan for Vultures in South Africa. The original call for comment was published on 2 December 2022.
The public now has until 28 February 2023 to submit comments on the draft.
31 January 2023
The Minister of Employment and Labour published the new regulations relating to Major Hazard Installation Regulations, 2022 (MHI Regulations) under the Occupational Health and Safety Act, 1993. The MHI Regulations provide for, among other things, the obligation to (i) appoint a designated responsible person in respect of every major hazard installation is operated; (ii) notify the competent authorities prior to the erection of a major hazard installation; and (iii) register a major hazard installation with the competent authorities.
The MHI Regulations are not yet operational and will come into effect on a date determined by the Minister of Employment and Labour in the Government Gazette.
UNITED REPUBLIC OF TANZANIA
02 December 2022
Following the National Workshop on 1-2 December 2022 in Dar es Salaam, Tanzania confirmed its intention to join the Convention on the Protection and Use of Transboundary Watercourses and International Lakes as well as the Convention on the Law of Non-Navigational Uses of International Watercourses. The country's Minister of Water stated that acceding to the Water Conventions would enhance its cooperation with the neighbouring countries by developing and strengthening joint monitoring and assessment systems to jointly address shared water challenges.
It has been reThe Government of Tanzania has launched guidelines for doing carbon business in the country, with the ministry responsible instructing the Vice President Office's Environment Department, Carbon Monitoring Centre, and the National Environmental Management Council (NEMC) to cooperate with all sectors in all regions to oversee its implementation. The guidelines have already been signed and announced in the National Gazette of October 2022, thus they are now ready for use.
27 January 2023
It has been reported that the Tanzanian government forcefully seized livestock from Indigenous Maasai herders in the Ngorongoro Conservation Area in its latest attempt to clear way for safari tourism and trophy hunting for lions, elephants and other large species. The Tanzanian government reportedly confiscated cattle, goats and sheep from the Maasai in November and December 2022 and has been demanding that the owners pay heavy fines. The government has remained adamant that the relocations will aid the country's environment and economic development.
31 January 2023
TANZANIA Investment is among three bills that have been signed into the laws, lawmakers told in Dodoma today.
President Samia Suluhu Hassan approved investment bill which aims at nurturing and increasing local participation in the economy. other bills asserted include the Personal Information Protection Bill and the Bill for Miscellaneous Amendments) (No. 3) Act, 2022.
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The Personal Information Protection Bill (currently only available in Swahili) contains provision that are:
geared towards protection of personal data;
establishes a Commission for the protection of personal information; and
places restriction on personal data collectors and processors.
The Bill for Miscellaneous Amendments amends several Acts such as:
The Banking and Financial Institutions Act;
The Capital Markets and Securities Act;
The Mining Act; and
The Public Finance Act.
The highlights of the Investment Act include:
access to international arbitration;
reduction of investment capital for locals;
the removal of automatic immigration quota incentive; and
protection of existing certificates of incentives.
ZAMBIA
9 December 2022
It has been reported several influential women in Zambia have joined hands to establish Women Leaders for Cliamte Action which will advocate for urgent sustainability climate action and seek solutions as espoused under the United Nations Sustainable Development Goal 13 amid global campaign against the crisis-threatening global development and peace. The women, with different backgrounds some-climate change campaigners seek to champion corporate ambition in the fight against climate change and create a future that is low-carbon and climate resilient.
It will collectively and individually monitor ecosystems at risk and drive solutions to deliver a sustainable and climate resilient future for communities, businesses, among others.
8 December 2022
The Zambian Parliament passed legislation to abolish the death penalty. The Penal Code Amendment Bill of 2022 was debated for the past two months and only requires presidential assent to take effect. The death penalty will now be replaced with a life imprisonment sentence. The Southern African nation placed a moratorium on death penalty 25 years ago.
15 December 2022
British International Investment, the UK's development finance institution and impact
investor, has provided a $50 million loan to one of Zambia's leading banks in a move designed to boost climate finance and entrepreneurship in the country.
The funds will be used by Zambia National Commercial Bank (Zanaco) as a directed lending line to provide finance for micro-SMEs and climate-related projects in Zambia. Zanaco, founded in 1969, is a leading indigenous bank in Zambia and ranks as one of the largest and oldest banks in the country.
10 January 2023
It has been reported that Zambia obtained one of the first adaptation grants. Through the Zambia Ministry of Green Economy and Environment Zambia secured a Readiness Package Grant in the sum of US$145,000 from the Adaptation Fund. The grant will facilitate the accreditation of Zambia Industrial Commercial Bank to the Adaptation Fund. It will also help strengthen the capacity to access climate adaptation finance and programmes that increase the resilience of vulnerable communities to the impacts of climate change.
ZIMBABWE
05 December 2022
It has been reported that the Zimbabwe government is inviting tenders for the construction of a new water treatment plant in Bulawayo's Cowdray Park. This invite to tender is one of the key components of the Matabeleland Zambezi Water Project. Work is currently underway to lay the pipeline linking Lake Gwayi-Shangani and Bulawayo, this pipeline project is running concurrently with the construction of Lake Gwayi-Shangani.
12 December 2022
It has been reported that the United Nations (UN) donated US$10 million to Zimbabwe to help finance renewable energy projects. This is because Zimbabwe is experiencing difficulties in address the crippling power situation. The fund was availed through the country's joint sustainable development goals fund partners including Unesco, UNDP, UIN Women and UNCDF.
AFRICA
10 January 2023
It has been reported that Ghana has joined a pilot project run by the International Atomic Energy Agency (IAEA) for the disposal of sealed radioactive sources. The disposal facilities will bring the country closer to its nuclear power ambitions. The IAEA is providing technological and engineering support for the first-of-a-kind construction and implementation of borehole disposal facilities for radioactive waste. This is part of a pilot project underway in Malaysia and Ghana, funded by Canada.
12 January 2023
It has been reported that the Energy and Petroleum Regulatory Authority (EPRA) of Kenya has announced that the development of the 852 km Lokichar-Lamu pipeline linking the processing facilities at the Lokichar oilfields in Turkana County to the Lamu Port has reached its next stages with the submission of the Environmental and Social Impact Assessment report to the National Environment Management Authority.
23 January 2023
It has been reported that during a roundtable organised by the African Energy Chamber this month, Gabriel Mbaga Obiang Lima, Minister of Mines and Hydrocarbons of Equatorial Guinea, provided an exclusive update on the project timeline and implementation of the Central African Pipeline System (CAPS).
According to H.E. Minister Mbaga Obiang Lima, the project is currently on track, with "Cameroon and Equatorial Guinea working on the first phase, which includes connection through Chad. The Minister further added that, "The DRC would connect through Angola and Central Africa, as they are already providing products through that direction. Congo-Brazzaville is developing an FPSO for liquefied natural gas, which in the future, will need to be connected with a pipeline
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24 January 2023
Uganda has launched its first oil drilling programme, its petroleum agency said, a key milestone as the country races to meet its target of first oil output in 2025. The Kingfisher field is part of a USD10-billion scheme to develop Uganda's oil reserves under Lake Albert in the west of the country and build a vast pipeline to ship the crude to international markets via an Indian Ocean port in Tanzania
The World's Bank recently announced that Ghana has become the second country in Africa after Mozambique to receive payments from a World Bank trust fund for reducing emissions from deforestation and forest degradation, commonly known as REDD+. The World Bank's Forest Carbon Partnership Facility (FCPF) paid Ghana US$4,862,280 for reducing 972,456 tons of carbon emissions for the first monitoring period under the program (June to December 2019).
25 January 2023
It has been reported that the World Bank has signed an agreement with four West and Central African nations worth US$311 million to fund renewable energy projects. The funds will finance around 106 megawatts (MW) of solar power generation capacity with battery energy and storage systems, and 41 MW expansion of hydroelectric capacity. The countries are Sierra Leone, Liberia, Togo and Chad. The funds will support electricity distribution and transmission interventions.
Global
20 December 2022
The UN Biodiversity Conference (COP15) was held between 7-19 December 2022 in Montreal, Canada, and ended with an agreement (the Kunming-Montreal Global Biodiversity Framework) to guide global action on nature through 2030. The agreement includes targets to protect 30% of the planet for nature by the end of 2030, reform
US$500billion of environmentally damaging subsidies, and restore 30% of the planet's degraded terrestrial, inland water, coastal and marine ecosystems. In the final agreement, countries decided to create a new fund within the UN's main existing biodiversity financing mechanism the global environment facility and commit to future talks about a separate fund. Developed countries agreed to provide
$30 billion of aid for biodiversity by the end of the decade.
Please also see our updates COP15: nations adopt landmark global biodiversity framework and 9 things you need to know about COP15
Recent and upcoming HSF ESG-related publications, webinars and events
Podcast: ESG and Regulation Africa 2022 Chambers Global Practice Guide on Environmental Law ESG tracker SADC region November 2022 Independent review of Australian carbon credit units released The third wheel podcast series: ESG in Australia COP15: nations adopt landmark global biodiversity framework ESG tracker Spain Next steps for Australia's mandatory climate reporting regime
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Key SADC ESG contacts
The ESG Tracker SADC Region is compiled by lawyers based in our Johannesburg office.
Peter Leon Partner Johannesburg T+27 83 250 9781 [email protected]
Ernst Mller Senior Associate Johannesburg T+27 64 75 333 76 [email protected]
Justine Sweet Consultant Johannesburg T+27 83 399 2618 [email protected]
Amanda (Mandy) Hattingh Associate Johannesburg T+27 79 425 4502 [email protected]
For a full list of our global offices visit HERBERTSMITHFREEHILLS.COM
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