South African Business 2017 edition

SOUTH AFRICAN 

2017 EDITION 

BUSINESS 

THE GUIDE TO BUSINESS AND INVESTMENT 

IN SOUTH AFRICA 

JOIN US ONLINE 

WWW.SOUTHAFRICANBUSINESS.CO.ZA

WHAT HAPPENS 

TO YOUR WASTE? 

108 

MILLION TONNES 

Waste SA Generates 

Per Year 

50% 

of this is general waste 

(domestic, building and demolition 

waste, business waste) 

10% 

only 10% of this total waste is 

recycled 

90% 

is sent to landfill 

44% 

is unclassified waste (electronic 

waste, sewage sludge, brine, 

bottom ash, dust) and 0.93% 

is hazardous (batteries, toxic 

chemical waste). 

BUT TYRES ARE DIFFERENT - NOW 70% ARE BEING DEALT WITH, 

UP FROM ONLY 4% TWO YEARS AGO. 

WHICH HAS RESULTED IN 

3219 JOBS AND 227 SMMES

ENTREPRENEURSHIP 

COMES TO LIFE 

THROUGH CIRCULAR 

ECONOMIES 

Hermann Erdmann, CEO at REDISA (Recycling and Economic Development Initiative of South Africa) 

Small businesses are critical in that they form the building blocks of any society. According to a 2010 research report, 91 percent 

of formal business entities in South Africa are small medium and micro enterprises (SMMEs), contributing between 52 and 

57 percent to the country’s GDP, and about 61 percent to employment. These form the bread and butter of our country, as job 

providers, poverty reducers, service delivery agents and economy boosters. 

South Africa’s role on the global stage as a hub for economic growth and empowerment opportunities continues to gather pace. 

There are, however, critical challenges, in particular the need to create a significant number of jobs for the growing population 

and to develop home-grown business leaders who are able to access global markets and drive growth in a sustainable and 

inclusive manner. 

Transforming ideas into economic opportunities is the crux of entrepreneurship and at REDISA we recognise the possibilities 

which lie in circular economies, specifically for all those who are willing to look at waste not as waste but as a commodity. 

The current levels of production and consumption are no longer sustainable. It is anticipated that, by 2030, the world’s population 

could sit at 9 billion, with an additional 3 billion new middle-class consumers over and above today’s 1.8 billion. 

Expanding the supply of consumer goods and services to meet this future demand presents a great challenge, but one that a 

circular economy model is capable of meeting – particularly if it is implemented within every country, region and community. 

The World Economic Forum estimates that the circular economy could be worth $1 trillion worldwide by 2025. This means that 

doing more with less would result in additional wealth and jobs, fewer landfill sites, and less resource depletion and environmental 

damage. Currently, there are only a few countries who are experimenting with more circular thinking – these include the 

United Kingdom, the Netherlands, France, China, Japan and South Africa. The promise of circular economy initiatives is that 

they will provide brand new business needs which will simultaneously address resource and environmental challenges, and 

generate economic activity to fund those needs. 

Entrepreneurship is acknowledged as one of the drivers of sustainable economic growth because entrepreneurs create new 

businesses, drive and shape innovation and, ultimately, contribute to productivity. 

The circular economy focuses on creating and promoting new business opportunities that entail entrepreneurship and eco-innovation 

with the aim of waste being fed back into the production process as a raw material. 

I believe that entrepreneurs will be the key custodians responsible for leading the transition to a circular economy business 

model and closing the loop on dwindling resources. Essentially this is what we need to be focusing on, pairing both entrepreneurial 

spirit and the concerted effort to finding solutions to the many challenges and problems that we face as a country and a 

continent. 

JOIN THE JOURNEY | www.redisa.org.za | /wasteintoworth | @wasteintoworth

CONTENTS 

CONTENTS 

South African Business 2017 Edition 

Introduction 

Foreword 11 

A unique guide to business and investment in South Africa. 

Special features 

South African economy at a glance 12 

Insight into the performance of the South African economy is 

provided through graphical representations of key statistics. 

Special Economic Zones 16 

Transforming the way business is done. 

Renewable energy programme powers ahead 22 

A private energy producers’ programme has already attracted 

R200-billion in private investment – and more is in the pipeline. 

Looking north 34 

South African companies are looking to intra-African trade to 

expand their businesses and improved infrastructure is key. 

SOUTH AFRICAN BUSINESS 2017 

6

CONTENTS 

Skills development 38 

Detailed national plans are in place to promote skills training. 

Economic sectors 

Agriculture 48 

Agri-processing is a key focus of future investment. 

Mining 54 

South Africa has vast mineral reserves and excellent 

infrastructure. 

Mineral beneficiation 57 

Industrialisation is to be boosted by adding value to minerals. 

Oil and gas 58 

South Africa is turning to gas. 

Energy 60 

Energy efficiency is a win-win. 

Water 64 

Innovative solutions to water scarcity are being pursued. 

Engineering 71 

Transnet Engineering is targeting international orders. 

Manufacturing 72 

Several state programmes are promoting manufacturing. 

Chemicals and pharmaceuticals 74 

Both sectors are attracting internal and foreign investment. 

Food and beverages 75 

Food and drink account for a quarter of all manufacturing. 

Automotive 76 

Car makers exported a record number of cars in 2015. 


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Transport 78 

South Africa's port and rail infrastructure is being upgraded. 

Information and communications technology 85 

Fibre optic networks are growing quickly. 

Education and training 91 

New universities are improving access to higher 

education but funding is under the microscope. 

Tourism 98 

Tourism is a growth industry that quickly creates jobs. 

Banking 102 

Despite general economic concerns, South African banks 

have increased operating income. 

Development finance and SMME support 104 

Studies are showing that township markets are much 

bigger than previously thought. 

Regions 

Eastern Cape 110 

Free State 116 

Gauteng 118 

KwaZulu-Natal 126 

Limpopo 128 

Mpumalanga 134 

Northern Cape 136 

North West 140 

Western Cape 142 


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CONTENTS 

Government 

South African National Government 106 

Reference 

Sector contents 46 

Index 144 

Mbombela 

Mahikeng 

eMalahleni 

12 



12

CREDITS 

Publisher: Chris Whales 

Publishing director: 

Robert Arendse 

Editor: Simon Lewis 

Writing: John Young and 

Karen Kühlcke 

Online editor: Christoff Scholtz 

Art director: Brent Meder 

Design: Colin Carter 

Production: Lizel Olivier 

Ad sales: Sam Oliver, Gabriel 

Venter, Jeremy Petersen, Nigel 

Williams and Sydwell Adonis 

Managing director: Clive During 

Administration & accounts: 

Charlene Steynberg and 

Natalie Koopman 

Distribution and circulation: 

Edward MacDonald 

Printing: FA Print 

South African 

Business 

A unique guide to business and investment 


FOREWORD 

Welcome to the fifth edition of the South African Business 

journal. First published in 2011, the publication has established 

itself as the premier business and investment 

guide to South Africa, supported by an e-book edition 

at www.southafricanbusiness.co.za. 

In addition to an up-to-date economic overview of the country, 

analyses of the main industrial sectors, plus profiles of the nine provincial 

economies, this edition of South African Business includes 

special features on key topical issues such as skills development 

and education, renewable energy and the REIPPPP programme, 

and trade with Africa. 

South African Business is complemented by nine regional 

publications. The e-book editions can also be viewed online: 

Western Cape Business | www.westerncapebusiness.co.za 

Gauteng Business | www.gautengbusinessguide.co.za 

Limpopo Business | www.limpopobusiness.co.za 

KwaZulu-Natal Business | www.kwazulunatalbusiness.co.za 

Eastern Cape Business | www.easterncapebusiness.co.za 

North West Business | www.northwestbusiness.co.za 

Mpumalanga Business | www.mpumalangabusiness.co.za 

Free State Business | www.freestatebusiness.co.za 

Northern Cape Business | www.northerncapebusiness.co.za 

These unique titles are supported by a monthly business e-newsletter 

with a circulation of over 35 000. 

Chris Whales 

Publisher, Global Africa Network Media 

Email: chris@gan.co.za 

DISTRIBUTION 

South African Business is distributed internationally on outgoing 

and incoming trade missions, through trade and investment 

agencies; to foreign offices in South Africa’s main trading 

partners around the world; at top national and international 

events; through the offices of foreign representatives in South 

Africa; as well as nationally and regionally via chambers of 

commerce, tourism offices, airport lounges, provincial government 

departments, municipalities and companies. 

COPYRIGHT | South African Business is an independent publication 

published by Global Africa Network Media (Pty) Ltd. Full copyright to 

the publication vests with Global Africa Network Media (Pty) Ltd. No part 

of the publication may be reproduced in any form without the written 

permission of Global Africa Network Media (Pty) Ltd. 

PHOTO CREDITS | Pictures supplied by flickr.com, Mainstream Power, 

Wikimedia Commons, MAN.co.za, icc.co.za, Boogertman + Partners, 

Mapio.net, Anglo American, SA Tourism, Bloomberg, Coega Dairy, and 

Eugene Armer RailPictures. 

PUBLISHED BY 

Global Africa Network Media (Pty) Ltd 

Company Registration No: 2004/004982/07 

Directors: Clive During, Chris Whales 

Physical address: 28 Main Road, Rondebosch 7700 

Postal address: PO Box 292, Newlands 7701 

Tel: +27 21 657 6200 | Fax: +27 21 674 6943 

Email: info@gan.co.za | Website: www.gan.co.za 

ISSN 2221-4194 

DISCLAIMER | While the publisher, Global Africa Network Media (Pty) 

Ltd, has used all reasonable efforts to ensure that the information contained 

in South African Business is accurate and up-to-date, the publishers 

make no representations as to the accuracy, quality, time-liness, 

or completeness of the information. Global Africa Network Media will 

not accept responsibility for any loss or damage suffered as a result of 

the use of or any reliance placed on such information. 

13 

SOUTH AFRICAN BUSINESS 2017

SPECIAL FEATURE 

South African economy at a glance 

Insight into the performance of the South African economy is provided through these 

graphical representations of key statistics. 

ZIMBABWE 

NAMIBIA 

BOTSWANA 

Limpopo 

0.9% (7.1%) 

MOZAMBIQUE 

North West 

-3.6% (6.5%) 

Gauteng 

2.1% 

(34.3%) 

Mpumalanga 

2.7% 

(7.5%) 

SWAZI- 

LAND 

Northern Cape 

2.8% (2.1%) 

Free State 

1.8% 

(5%) 

LESOTHO 

KwaZulu- 

Natal 

2.3% 

(16.1%) 

Western Cape 

2.0% (13.6%) 

Eastern Cape 

1.0% (7.6%) 

SA GDP: Percentage of growth per province (2014) and percentage 

contribution to national GDP (figures in brackets). 

SOURCE: STATS SA WWW.STATSSA.GOV.ZA 

PROVINCE CAPITAL PREMIER POPULATION (2015) AREA GRP BILLION RAND 

Eastern Cape Bhisho 

Phumulo 

Masualle 

6 916 200 168 966km 2 R289.9 

Free State Bloemfontein 

Elias Sekgobelo 

"Ace" Magashule 

2 817 900 129 825km 2 R189.1 

Gauteng Johannesburg David Makhura 13 200 300 18 178km 2 R1 305.6 

KwaZulu- 

Natal 

Pietermaritzburg Willies Mchunu 10 919 100 94 361km 2 R610.1 

Limpopo Polokwane 

Stanley 

Mathabatha 

5 726 800 125 754km 2 R271.5 

Mpumalanga Mbombela David Mabuza 4 283 900 76 495km 2 R284.2 

North West Mahikeng 

Supra 

Mahumapelo 

3 707 000 104 882km 2 R249.5 

Northern Cape Kimberley Sylvia Lucas 1 185 600 372 889km 2 R79.9 

Western Cape Cape Town Helen Zille 6 200 100 129 462km ² R518.1 

Snapshot of South Africa’s provinces 

SOURCE: INSTITUTE OF RACE RELATION’S SOUTH AFRICA SURVEY 2016 AS REPORTED ON BUSINESSTECH.CO.ZA 

SOUTH AFRICAN BUSINESS 2017 14


How South Africa’s economy performed in 2015. * 

* PRELIMINARY RESULTS | SOURCE: GROSS DOMESTIC PRODUCT, 4TH QUARTER 2015 | WWW.STATSSA.GOV.ZA 

SECTOR LP MP GP NW KZN FS NC EC WC 

Agriculture 2.5 2.8 0.4 2.1 3.8 4.3 6.0 7.5 3.5 

Mining 29.4 24.9 3.3 33.6 1.9 13.3 26.7 0.2 0.3 

Manufacturing 2.5 11.5 13.5 4.4 15.8 8.5 2.1 12.2 11.8 

Electricity 2.8 5.4 2.4 1.4 2.5 3.1 3.0 1.4 2.0 

Construction 2.5 3.3 4.3 2.6 3.0 2.0 1.6 2.1 4.3 

Wholesale 10.8 10.3 14.2 9.3 15.5 12.3 9.9 14.7 17.0 

Transport 5.4 5.8 8.3 6.1 11.9 7.1 7.8 7.9 9.1 

Finances 14.0 10.9 22.8 11.1 16.5 14.2 11.6 18.6 26.6 

Personal 

Services 

Government 

Services 

3.8 4.3 3.6 7.0 5.8 10.2 8.1 9.1 5.1 

16.0 10.5 17.0 12.1 13.3 14.7 12.8 22.0 10.2 

Taxes 10.3 10.3 10.1 10.3 10.0 10.3 10.2 10.2 10.0 

Gross Domestic Product by province, percentage contribution. 

SOURCE: STATS SA WWW.STATSSA.GOV.ZA/?PAGE_ID=735&ID=1 

15 



7% 

6% 

5% 

4% 

3% 

2% 

1% 

0 

2011 2012 2013 2014 2015 2016 

CPI (percentages in order from 2011 to 2016) 

PPI (percentages in order from 2011 to 2016) 

denotes data for September 2016 rather than the average for the full year. 

** 

Inflation rate 2011 to 2016 

SOURCE: WWW.STATSSA.GOV.ZA 

Mineral products 20.41% 

Precious metals 18.24% 

Vehicles, aircraft and vessels 12.57% 

Products iron and steel 12.02% 

Machinery 9.69% 

Chemicals 6.47% 

Vegetables (including fruit, nuts and cereals) 4.96% 

Prepared foodstuff (including beverages) 4.29% 

Plastic and rubber 2.11% 

Wood pulp and paper 1.92% 

South Africa’s top 10 export commodity categories: 2015 

SOURCE: SOUTH AFRICAN REVENUE SERVICE WWW.SARS.GOV.ZA 

Machinery 25.02% 

Mineral products 16.12% 

Vehicles, aircraft and vessels 10.4% 

Chemicals 10.37% 

Equipment components 7.3% 

Products iron and steel 5.54% 

Plastic and rubber 4.13% 

Textiles 3.72% 

Prepared foodstuff (including beverages) 2.93% 

Photographic, medical equipment 2.71% 

South Africa’s top 10 import commodity categories: 2015 

SOURCE: SOUTH AFRICAN REVENUE SERVICE WWW.SARS.GOV.ZA 



Million Rand 

R600 000 

R400 000 

R200 000 

R0 

Africa 

Europe 

America 

Asia 

Oceania 

Other 

unclassified 

2010 2011 2012 2013 2014 2015 2016 

Exports year on year world zone comparison (Including BLNS) 2010 to 2016 

PRELIMINARY RESULTS | SOURCE: GROSS DOMESTIC PRODUCT, 4TH QUARTER 2015 | WWW.STATSSA.GOV.ZA 

Million Rand 

R600 000 

R400 000 

R200 000 

R0 

Africa 

Europe 

America 

Asia 

Oceania 

Other 

unclassified 

2010 2011 2012 2013 2014 2015 2016 

Imports year on year world zone comparison (Including BLNS) 2010 to 2016 

PRELIMINARY RESULTS | SOURCE: GROSS DOMESTIC PRODUCT, 4TH QUARTER 2015 | WWW.STATSSA.GOV.ZA 

17 



Special Economic Zones 

Transforming the way business is done. 

In 1750 the king and queen of Sweden invited 

skilled craftsmen from all over Europe to take up 

residence on their royal estate on the outskirts 

of Stockholm. The little cottages that were given 

to the experts still stand today, although they are 

no longer home to lace-makers, silk-weavers and 

cutlery creators. 

Today the idea of creating specialised areas in 

which new kinds of economic activity can thrive 

is popular, and various forms fall under the heading 

of Special Economic Zones (SEZs). Like King 

Adolf Fredrik and Queen Lovisa Ulrika, modern 

South African industrial planners want to create a 

model for manufacturing goods locally that will 

replace imports. 

South Africa is investing in SEZs as a major plank of 

its industrial development policy that seeks to attract 

new skills and develop new industries. 



Key goals behind the establishment of SEZs are: 

• to encourage industries to develop in clusters, 

leading to economies of scale, skills-sharing and 

easier access by suppliers 

• to create industrial infrastructure to promote 

investment 

• to promote cooperation between the public and 

private sectors 

• to use the zones as a launching pad for other plans 

to further development 

Apart from attracting foreign direct investment (FDI) 

and boosting employment, SEZs can also play a role 

in helping to add new sectors or sub-sectors to 

an economy. 

There is a cautionary aspect to the Swedish tale 

in that the scheme only worked as long as subsidies 

were available – but if SEZs are properly implemented 

there is no reason why they should not become selfsupporting 

in time. 

South Africa is targeting a variety of sectors in 

SEZs around the country, but there is a decided emphasis 

on beneficiation, mainly of minerals but also 

of agricultural products. There is a strong feeling that 

South Africa can do much more with the product 

of its soils – whether that be using manganese to 

convert iron into steel or creating fruit juices out of 

apples and pears. 

Special Economic Zones are created in terms of the 

Special Economic Zones Act of 2014 (Act 16 of 2014). 

The act defines an SEZ as "geographically designated 

areas of the country that are set aside for specifically 

targeted economic activities, and supported through 

special arrangements and systems that are often different 

from those that apply to the rest of the country". 

Lower corporate tax rates and duty-free imports are 

among the advantages that accrue to investors. 

SEZs come in different forms: South Africa has 

several existing Industrial Development Zones (IDZs) 

and a Free Trade Port (FTP). The Coega IDZ (Nelson 

Mandela Bay Metropole) and the Dube TradePort at 

the King Shaka International Airport outside Durban 

are two well-known examples. Other licensed IDZs are 

at Saldanha Bay, East London and Richards Bay. The 

Dube TradePort aims to leverage its proximity to an 

airport. In the same way, "aerotropolis" developments 

are mooted for Ekurhuleni (OR Tambo airport) and 

Cape Town International Airport. 

Coega IDZ has recently attracted huge investments 

from a variety of Chinese firms in the engineering, 

solar manufacturing and automotive sectors. 

The latest investment is from BAIC, who will 

take a 65% stake in a multi-billion-rand joint venture 

with the Industrial Development Corporation with 

the intention of producing 100 000 vehicles. First 

Automotive Works (FAW) has already established 

a R600-million assembly plant in Zone 2 at Coega. 

Richards Bay, apart from being the country's 

main site for the export of coal, is also a registered 

Industrial Development Zone and consequently is 

in a position to attract investors in a range of sectors. 

Recent developments at RBIDZ have seen an 

investment in an oil and gas facility and it is hoped 

that the ocean will yield finds of gas to provide 

cheap feedstock. 

Another type of SEZ is an Export Processing Zone 

(EPZ). All of these interventions are intended to form 

part of broader trade and investment plans such 

as the National Development Plan (NDP) and the 

Industrial Policy Action Plan (IPAP). The NDP is a 

broad-strokes plan that seeks to coordinate development 

in a range of sectors, and promotes ambitious 

infrastructural projects. 

South Africa's most recent IPAP has a manufacturing 

focus, so beneficiation fits well into the idea of 

diversifying and strengthening the country's ability 

to make things. 

In the context of the new and burgeoning 

renewable energy sector, the state, through the 

Department of Trade and Industry (dti), can pass 

legislation that requires developers to increase the 

level of local content on the solar panels or wind 

turbines that are used. In this way, a totally new local 

industry can be created; and an SEZ would be the 

place to do it. Skills transfer is another stated aim 

behind the SEZ programme. 

Various incentives are available to investors in 

an SEZ. These include tax breaks from the South 

African Revenue Service (SARS), subsidised interest 

rates from the Industrial Development Corporation 

(IDC), subsidies for employees earning below a 

certain level and subsidies for the training of the 

workforce, incentives and grants from the dti, and 

incentives available from national electricity utility 

Eskom. Other benefits might include a building 

19 



R150-billion, will generate 

1 000MW in its first phase. 

Forty renewable projects 

have already been 

approved in the Northern 

Cape with the majority of 

projects (27) using the solar 

photovoltaic method with 

just seven using the concentrated 

solar power (CSP) 

technology. The Northern 

Cape is also home to five 

approved wind farms and 

one small (10MW) hydroelectric 

project on the 

Orange River. 

allowance, employment incentives and the fact 

that an SEZ is a customs-controlled area. 

Specific incentives relating to energy savings 

and reductions in environmental impact are available, 

both from Eskom and the dti. Within the dti's 

Manufacturing Competitiveness Enhancement 

Programme, there is a Green Energy Efficiency 

Fund, all of which are designed to make (the right 

kind of) investment more attractive. 

New zones 

Upington, Northern Cape 

The 400ha site of the Upington SEZ in the Northern 

Cape Province is close to the regional airport and 

is well served by access roads. One of the goals 

is to capitalise on the already existing (and fastgrowing) 

solar power industry by promoting special 

investment packages to investors in that field, 

and encouraging the development of skills and 

services to support that sector within the SEZ. 

Feasibility plans are being done by Eskom on 

building a massive solar park that will generate an 

eighth of the county's electricity needs – 5 000MW 

– near Upington. Sixteen square kilometres of land 

have been identified and Eskom is looking for private 

partners. The park, which will cost more than 

Maluti-A-Phofung, Free 

State 

The Maluti-A-Phofung Special Economic Zone takes 

advantage of the strategic position Harrismith holds 

in the Free State's north-eastern corner. The N3 

highway carries huge volumes of cargo between 

Gauteng and the ports of KwaZulu-Natal so it is 

logical that the first focus of this SEZ is logistics. 

Over and above the Gauteng-KwaZulu-Natal route, 

another logistics axis extends between Harrismith 

and Bloemfontein for the delivery of products by 

rail and road. 

Within the Maluti-A-Phofung SEZ, the Tshiame 

Food Processing Park has 60 000m² available for 

investors in food production, storage and distribution. 

To entice investors, services such as logistics 

will be provided as will warehousing, cold storage 

and manufacturing facilities. A strong focus is to try 

to get more local produce turned into products that 

can be exported. 

Musina-Makhado, Limpopo 

In July 2016 the national cabinet approved the Musina- 

Makhado Special Economic Zone (SEZ). Located in the 

far north of Limpopo in the Vhembe district, Musina 

is strategically located near the border of Zimbabwe 

and on the Great North Road, which links South Africa 

to the broader Southern African region. 

The location of the Musina SEZ, with links to 

Zimbabwe, Botswana and Mozambique, promotes 



the Trans-Limpopo Spatial Development Initiative. 

Logistics will be one of the key focus areas of the SEZ. 

Other sectors that will be concentrated on include 

agri-processing, energy and mineral beneficiation. 

De Beers' giant Venetia diamond mine is 

nearby. The company's most recent life-of-mine 

expansion project, worth about R30-billion, will 

result in the mine producing until 2046. 

Soon after the announcement of the designation 

of the SEZ, the dti announced that a consortium 

of Chinese investors, Sino, has agreed to 

put R40-billion into the Musina SEZ where they 

will operate the mineral beneficiation operations. 

The first phase of this is to build a power plant. 

The dti estimates that the completed SEZ could 

create more than 20 000 jobs. 

Tubatse, Limpopo 

An application for an SEZ at Tubatse is pending. 

Tubatse is in the Sekhukhune District Municipality 

and hosts a number of mining operations. The SEZ 

in Tubatse will focus on the beneficiation of platinum 

group metals and mining-related manufacturing. 

The province of Bashkortostan in Russia has 

also expressed an interest in the SEZs of Limpopo. 

Nkomazi, Mpumalanga 

The Nkomazi Local Municipality has already earmarked 

land for the SEZ that will be established in 

terms of the Special Economic Zones Act. 

The location of the SEZ near the Mozambique 

border and along the Mozambique Corridor gives 

investors in the SEZ logistical advantages and opportunities. 

There are tax advantages for investors 

in the SEZ and proximity to the Mozambican port of 

Matola would be a large benefit to anyone wanting 

to create a dry port or logistics base. 

The provincial government has a broader plan 

to create what Premier David Mabuza has called 

"industrial centres of competence". The idea is to 

cluster in a particular geographical area centres 

that will provide economies of scale for manufacturers 

and traders but also training and research 

facilities that will benefit the relevant sector. These 

could also be described as sector hubs. Plans are 

in place for the creation of several such hubs, 

including: 

• Mining and Metals Technology Park, Steve 

Tshwete Local Municipality 

• Petro Chemical Industrial Technology Park, 

Secunda 

• Agriculture and Forestry Industrial Centre of 

Competence, Mbombela area 

The planned SEZ falls within this quite large 

geographical area and the two other focus 

points are an International Fresh Produce Market 

(Mbombela) and a Forestry Technology Park in 

the town of Sabie. 

Bojanala, North West 

The SEZ in the platinum-rich Bojanala district will 

be known as Platinum Valley SEZ and will focus 

on mineral beneficiation. The SEZ will centre on 

Bodirelo Industrial Park, near the town of Mogwase. 

Atlantis,Western Cape 

The Atlantis Greentech SEZ should encourage industrial 

development and employment opportunities 

in the Green economy. Specific incentives are 

available to investors in this SEZ. 

Agri-parks 

Five agri-parks are planned in each of the Free State's 

district municipalities. Within these parks, support 

for rural smallholders will be available in terms of 

equipment hire from a central source, storage facilities, 

packaging of produce and getting products to 

market. The agri-park intends to provide a network 

for farmers and manufacturers. Training will also 

be available. 

21 


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frame, its scope demanded our utmost attention to detail, uncompromising quality control and 

dedicated, passionate team work. From 2 817 drawings to 27 000 m³ of poured concrete, it’s our 

desire to pioneer uncharted challenges that continue to ensure we deliver every time, even when 

it’s the first time. 

DRAglobal.com 

22

23 Extraordinary Possibilities


Renewable energy programme 

powers ahead 

A private energy producers' programme has already attracted R200-billion in private 

investment – and more is in the pipeline. 

Fast, efficient and adaptable – these are not 

always the first words that spring to mind 

when businessmen and investors get together 

to talk about government. But in the 

case of South Africa's programme to allow private 

investors to build renewable energy plants and sell 

power to the national grid, efficiency and speed 

have been the watchwords. 

The Renewable Energy Independent Power 

Producer Procurement Programme (REIPPPP) had by 

May 2016 delivered the promise of 6 377 megawatts 

(MW) with an investment value of R250-billion and 

many of the projects are already delivering electricity 

to South Africa's grid. 

The REIPPPP has so far seen four phases of bidding 

(known as bidding windows), and competition 

among investors is fierce. The most recent, fourth, 

window attracted 77 bids from which just 13 were 

chosen, but a further 13 bids were accepted later. 

Collectively the 26 projects will add 2 205MW of 

power and inject R23-billion into the economy. 

The generation mix accepted by the Department 

of Energy in the fourth window gives a good indication 

of the preferred types of energy that have 

characterised the whole REIPPPP: 

• 12 wind projects (1 368MW) 

• 12 solar photo-voltaic (solar PV) projects (813MW) 

• one hydro-power project (5MW) 

• one bio-mass project (25MW) 

Solar and wind have been the most popular projects 

over the life of the REIPPPP (which started accepting 

the first bids in November 2011), with solar PV 

generating more interest than the concentrated 

solar power (CSP) method. 

According to the South African Wind Energy 

Association (SAWEA), shareholding for local com- 



munities has reached an estimated net income of 

R29.2-billion over the lifespan of the projects, in most 

cases estimated to be about 20 years. Some 14 000 

new jobs are expected to be created, mostly in rural 

areas, and more than R30-billion has already been 

spent on black economic empowerment (BEE) in 

the construction phase. 

Johan van den Berg, the CEO of the South African 

Wind Energy Association draws on a recent report 

by Moody's Corporation that South Africa has the 

world's fastest-growing green economy when he 

says, "We’ve built a R7-billion infrastructure sector 

in four years, all with private money, creating many 

jobs and significant new manufacturing capability, 

while quickly increasing local content beyond 45%." 

Moody's reported that in 2015 South Africa attracted 

R63-billion in asset financing for renewable energy 

projects – a year-on-year growth of 300%. 

Van den Berg points out that the figure represented 

30% of all foreign direct investment in South 

Africa, a remarkable percentage for a very young sector. 

"Additionally," he adds, "the cost of wind power 

has steadily lowered to approximately 40% below 

the cost of new coal power at Medupi.” 

Other research, by GlobalData, estimates that 

a further three GW of wind energy will be added 

to South Africa's grid by 2020, taking the total up 

to 5.6GW. 

The growth of the solar energy sector has been 

quite spectacular, particularly in the Northern Cape 

Province. The railway junction town of De Aar is no 

longer famous only for being in the middle of everywhere 

– it now boasts significant energy-generating 

power. Not least because of the 175MW Solar Capital 

project outside the town, the largest solar plant of 

its type on the continent. The multi-phase project 

will eventually attract investment to the tune of 

R4.8-billion. 

The Department of Energy has another programme 

intended to complement the REIPPPP, 

the Small Projects Renewable Energy Independent 

Power Producer Programme. This is intended to encourage 

smaller investors to get involved in pitching 

for projects in the 5-10MW range. 

The Department of Trade and Industry (dti) believes 

there is great scope for local manufacturing 

in some of the downstream sectors, for example in 

building infrastructure for renewable energy plants 

and in the commercial and industrial solar rooftop 

market. PV panels of public entities will soon have to 

be made in South Africa and the glass industry could 

get involved in coating glass for CSP heliostats. The 

dti has also put forward the idea that there might 

be some cross-over in capabilities between the automotive 

sector and the manufacturing sector for 

renewable energy plants. 

Partnerships and prices 

Many partnerships between local and international 

companies have already been established, with various 

consortiums winning several of the bigger bids 

in the REIPPPP. Even where a foreign company is 

carrying the bulk of the investment, they are obliged 

25 



to have South African partners. These are often local 

energy companies and representatives of residents. 

Typically, a community trust is established to represent 

the interest of the local community. 

Among the international investors active in 

the REIPPPP process are Enel Green Power (Italy), 

Scatec Solar (Norway), Globeleq (UK), Mainstream 

Renewable Power (Ireland), Gestamp Renewable 

Energies and Abengoa (Spain), Solar Capital (subsidiary 

of Phelan Energy Group Ireland), SunEdison 

(USA), ACWA Power (Saudi Arabia), China Longyuan 

Power Group (China), Engie (France), juwi Group 

(Germany) and Tata Power of India. The lastnamed 

company has teamed up with the energy 

unit of Exxaro Resources to form a company 

called Cennergi. 

Partnerships with foreign utilities or power companies 

are becoming more common as the REIPPPP 

progresses, in part because the competition is bringing 

down the price at which bidders are offering to 

sell power. This makes it difficult for South African 

firms to compete on their own. 

Johannes Horstmann of Arup wrote in Engineering 

News in April 2016 that prices have dropped significantly 

in the course of the REIPPPP: he cites a 29% 

cheaper tariff for solar PV in round three than the 

round before (R786/MWh); and a 25% drop in wind 

prices (to R619/MWh). This obviously sounds nice 

for the consumer, but is it sustainable for investors? 

Horstmann notes that the trend suggests that solar 

PV prices could further decrease by 19% and wind 

by 8% but these are likely to correct to rates closer 

to 6% and 3%. 

The other factor favouring foreign investors is the 

fact that many of them have strong reserves of cash 

and don't need to borrow money. The high price of 

borrowing makes it difficult for South African firms 

to compete independently. 

The national utility, Eskom, is the only buyer of the 

energy that private companies produce. Central to 

the business plan of every private producer's bid is 

the agreement with Eskom that it can sell what it produces, 

at an agreed price. So there was understandable 

consternation when senior Eskom executives 

started questioning whether they would indeed 

continue to buy power from independent producers. 

Eskom's single shareholder, the South African 

government, quickly assured the markets (through 


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the Minister of Energy and an announcement from 

the Office of the President) that the REIPPPP was still 

central to government policy. President Zuma put 

out a statement to the effect that, "The Presidency 

wishes to clarify that all the Independent Power 

Producer Programmes, namely renewable energy, 

coal and gas and any other determinations made by 

the Minister of Energy are and remain government 

policy and are supported by the Presidency." 

There are some energy planners (including senior 

Eskom personnel) who think that South Africa 

needs a new fleet of nuclear power stations. At the 

moment South Africa has one, at Koeberg in Cape 

Town, whose two reactors supply about 5% of South 

Africa's electricity. 

However, the amount of power produced by 

the renewable energy programme is growing so 

rapidly – and prices are coming down so fast – that 

some researchers are questioning whether coal 

and nuclear are the only kinds of energy that can 

supply the so-called "base load" for the national 

grid. The base load is the permanent minimum 

amount of power that the grid must be able to 

deliver at all times. 

Conventional wisdom says that only coal and 

nuclear can provide that base load. But a study done 

by the Energy Centre of the Centre for Scientific 

and Industrial Research (CSIR) suggests that wind 

and solar power (supported by natural gas, biogas 

and hydro-electric power) might be up to the task. 

There is particular interest in natural gas as a source 

of a very versatile and mobile back-up for the main 

types of renewable energy: if the sun goes behind 

a cloud or the wind does not blow, it is very easy to 

turn on the gas. 

As it happens, the Department of Energy is 

very keen to promote gas-to-power. It is targeting 

the procurement of 3 126MW through its 

programme and intends spending R64-billion 

on port, pipeline, generation and transmission 

infrastructure at three key ports, Richards Bay, 

Coega and Saldanha Bay. 

South Africa's long-term energy plan is underpinned 

by the Integrated Resource Plan (IRP) but 

many industry watchers feel that a new one is due: 

the latest (published) version of the IRP is dated 2010, 

and the economic situation has changed quite a bit 

since then. 


28

LESEDI NUCLEAR SERVICES 

Leaders in the South African Power Industry 

Home grown Lesedi Nuclear Services is a leading EPC 

(Engineering, Procurement and Construction) company with 

extensive experience in the execution of turnkey engineering 

projects. It has operational footprints throughout the South 

African power industry. 

LESEDI NUCLEAR SERVICES 

Lesedi’s Competencies Include: 

Having completed numerous projects in both nuclear and conventional 

environments, 

Leaders 

primarily 

in 

at Eskom’s 

the 

Koeberg 

South 

Power 

African 

Plant, construction 

Power Industry 

• Project Management 

of the Open Cycle Gas Turbine Power Plans in the Western Cape, and 

• Construction Management 

executing EPC contracts for the balance of plants to Eskom’s Medupi 

• Design Engineering 

and Home Kusile Coal grown Power Lesedi Plants - still Nuclear under construction Services - is Lesedi a leading is wellplaced 

Construction) to play a leading company role in offering with competitive extensive EPC services experience to the in the • Engineering execution Procurement of turnkey and engineering 

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country’s projects. power It infrastructure has operational industry. footprints throughout the South Construction African (EPC) power industry. 

• Specialised Shutdown Maintenance 

Lesedi is now a level Four B-BBEE (Value Added) company and has 

activities (Globally) 

registered 9ME, 7EP, 7SF, 1GB, 1ISI and 1CE certification levels with 

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the Having Construction completed Industry numerous Development projects Board. in The both company’s nuclear main a wide range of services to Koeberg Nuclear Pow 

and conventional environments, primarily at Eskom’s Station. • Our Heating, major Ventilation involvement and 

shareholder is global nuclear company, AREVA, with the remaining shares 

has been in 

split Koeberg between Group Power Five, Plant, the construction J&J Group and of local the Lesedi Open management. Cycle supply of Air technical – Conditioning personnel for plant upgrad 

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Since 2001, Lesedi Nuclear Services has provided a wide range of services • Power Plant Construction 

executing EPC contracts for the balance of plants to maintenance. 

to Koeberg Nuclear Power Station. Our major involvement has been in • Nuclear, Gas Turbine, Coal Power 

Eskom’s Medupi and Kusile Coal Power Plants - still 

the 

under 

supply of 

construction 

technical personnel 

- Lesedi 

for plant 

is well-placed 

upgrades, engineering, 

to play a 

project 

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management, leading role procurement in offering and maintenance. competitive EPC services to completed • Biomass, by Lesedi BioEnergy, at Koeberg. Hydrogen, Our Outa 

the country’s power infrastructure industry. 

services division also provides key nuclear skil 

To date, over 150 different modifications have been completed by 

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personnel to various nuclear facilities internationa 

Lesedi Lesedi at Koeberg. is now Our a level Outage Four services B-BBEE division (Value also Added) provides key notably in Europe, North America and South Ameri 

nuclear company skilled personnel and has to registered various nuclear 7EP, facilities 9ME, internationally, 

7SF, 1SI 

LESEDI NUCLEAR SERVICES (PTY) Ltd 

notably certification in Europe, levels North America with the and Construction South America. Industry Lesedi also Lesedi provides Nuclear continuous Services, 12 Edison operational Way, supp 

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outage Five, periods. the J&J Other Group services and include local Lesedi Steam Generator management. (SG) Water Lancing, Fax: Pumps +27 21 and 525 Valve 1333 Maintenance, Prim 

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and Reactor Refuelling. 

and Reactor Refuelling. 

www.lesedins.co.za • www.areva.com 

GET IN TOUCH

INTERVIEW 

REDISA: putting 

waste to work 

Hermann Erdmann, the dynamic CEO of REDISA, is driving 

awareness of the value of circular economies and the 

massive potential for job creation. 

Hermann Erdmann 

BIOGRAPHY 

An entrepreneur and businessman, 

Hermann Erdmann has 

extensive experience in the 

manufacturing and retail sectors 

having served on a number 

of industry-related boards. 

Erdmann's interest in environmental 

sustainability, transformation 

and empowerment of 

the previously disadvantaged 

resulted in the establishment of 

REDISA, and the development 

of the first approved Industry 

Waste Management Plan. 

Please give a brief overview of the history and activities 

of REDISA. 

The REDISA Plan was gazetted in terms of the National Environmental 

Management: Waste Act, 2008, and Regulation 11(4) of the Waste Tyre 

Regulations, 2009. 

REDISA collects a waste management fee of R2.30 per kilogram 

of tyres manufactured or imported, paid directly to the organisation. 

These funds are applied according to the mandates set out in the Plan. 

The REDISA Plan provides government with an environmental solution 

at no cost to the fiscus, with its core mandates being both environmental 

and socio-economic upliftment through the development of both 

entrepreneurial and job opportunities, ultimately contributing to the 

economic growth of the country. 

The REDISA model uses the fees collected to directly fund the development 

of recycling industries, establishes reverse logistics networks, 

carries out R&D and promotes secondary interests. It will also 

provide producers the opportunity to reduce their costs by designing 

in circularity. 

Can you update us on progress with the Integrated Industry 

Waste Tyre Management Plan and new developments 

at REDISA over the past 12 months? 

A number of achievements have been made since inception, including 

having created over 3 000 jobs, and supporting more than 200 SMMEs. 

In addition to the milestones reached in the last 12 months, the 

REDISA Plan has also been lauded on the international stage as a 

particularly successful model in terms of circular economy development. 

At the 2015 Global Economic Symposium (GES), the REDISA Plan 

was presented to an international panel and was adopted by the GES 

as an official solutions proposal to address critical challenges being 

faced internationally. 

In addition, in January 2016, REDISA was announced as runner-up 

in the Circular Economy Government, Cities & Regions category of 

the Circular Awards. The awards were presented at a ceremony at the 

World Economic Forum annual meeting in Davos. 


30

INTERVIEW 

The Circulars are the world’s premier circular 

economy award programme, and offer recognition 

to all individuals and organisations from commerce 

and civil society across the globe that have made 

a notable contribution to driving circular economy 

principles. 

R&D is a critical element of the REDISA Plan, and 

in 2013, REDISA signed an MOU with Nelson Mandela 

Metropolitan University (NMMU), which was in turn 

the foundation for an agreement finalised in 2014, 

which addressed two areas: 

• REDISA funds students undertaking research 

projects related to tyre recycling, which both 

contributes to knowledge in this area, and trains 

up people who can work in the industry. 

• REDISA is also using NMMU expertise to support 

the creation of the Product Testing Institute (PTI) 

which will carry out tyre testing according to 

SA homologation standards and international 

standards, and will be developing a new set of 

standards which will define an environmental 

rating for tyres. 

The completion of the construction of the PTI is 

expected within the next 18 to 24 months, with full 

operational capacity as a tyre homologation facility 

scheduled for within the next 36 months. REDISA is 

facilitating the establishment of the PTI that has as 

its main objective to test tyres and environmentally 

rate and certify each model of tyre. 

Currently, the waste management fee paid to 

REDISA is standardised at R2.30 per kilogram. Once 

an environmental rating system has been developed 

and linked to tyre homologation standards, REDISA 

will be in a position to set a new pricing structure. 

This will allow those tyres manufactured using better 

environmental standards to have a lower fee, while 

those tyres that are manufactured with more adverse 

effects on the environment will have a higher fee. 

Broadly, the PTI establishment process will be 

construction; accreditation for SA homologation; accreditation 

for EU/US homologation; development 

of the environmental rating system. 

What is the vision for the future of REDISA? 

Since beginning operations mid-2013, REDISA’s 

Waste into Worth concept has been successfully 

implemented to further the circular economy within 

the tyre industry and we have achieved a number 

of noteworthy milestones. 

Our strategy for this year is to continue to meet 

the requirements as outlined in the REDISA Plan, 

particularly in line with supporting the development 

of SMMEs and recyclers which will further 

drive development of the tyre recycling industry 

in South Africa. This development will be achieved 

predominantly through investment in infrastructure, 

business support and research into new applications 

for waste. 

31 


INTERVIEW 

and developing small businesses by turning waste 

into worth. From 1 December 2013 to the end of 

February 2016, REDISA created over 3 000 jobs. REDISA 

is currently collecting tyres from 1 385 dealers, and as 

the Plan continues in its five-year rollout, more dealers 

and collection points will be collected nationwide. 

Driving awareness around the value of circular 

economies and the opportunities created by the 

concept remains key to REDISA. 

It is important for us as a nation to explore the 

notion of a circular economy, which is an exciting 

approach that will not only eliminate threats to environmental 

quality and resources, but will also positively 

contribute to the growth and development 

of the economy. The Product Testing Institute is an 

important enabler of circularity in the tyre industry. 

The circular economy approach could successfully 

be used to recover and recycle plastic waste, 

waste from agriculture, organic chemical processes 

and mining operations, to name a few. This would 

generate major socio-economic and environmental 

benefits, going far beyond what has already been 

achieved in the waste tyre sphere. 

How have REDISA's activities and operations 

improved people's lives? 

Developing the entrepreneurial spirit is an important 

economic driver and poverty eradicator for South 

Africa, and as such the REDISA Plan seeks to support 

small business owners (both new and existing), 

entrepreneurs and secondary businesses within the 

informal sector that will, in turn, create even more 

job opportunities. 

REDISA has made significant progress towards 

building a viable and sustainable circular economy 

focusing on tyre recycling, and what we are most 

proud of is the impact the initiative has made to 

the many people both employed by REDISA, and 

supported in terms of secondary industry. 

In a little under three years REDISA has made remarkable 

progress in South Africa in creating jobs 

"THE CIRCULAR ECONOMY 

APPROACH COULD 

SUCCESSFULLY BE USED 

TO RECOVER AND RECYCLE 

PLASTIC WASTE, WASTE 

FROM AGRICULTURE, 

ORGANIC CHEMICAL 

PROCESSES AND MINING 

OPERATIONS." 

In addition, over 200 SMME business operations are 

working with REDISA as per the Plan and rollout. 

Furthermore, REDISA has put 80% of revenue 

collected from the waste management fee back 

into local communities by creating a market for the 

handling of waste. 

How has REDISA contributed to small 

business development in South Africa, 

and what opportunities are there for 

business? 

REDISA is committed to small business development 

and job creation that is essential to help combat the 

escalating unemployment rate in the country. A key 

challenge (and one that is common for many small 

businesses and start-ups) is that access to funding 

has not been addressed adequately. The solution to 


32

INTERVIEW 

derived from the OTR tyres can 

be used in asphalt, roofing tiles, 

rubber bricks and playground 

matting, to name but a few. 

this challenge is our approach to entrepreneurship, 

business development and empowerment. 

REDISA’s business incubation programme addresses 

these funding challenges. We support the 

development of businesses with advisory and administrative 

support services. Where the business 

proves to be viable, the ownership is passed to candidates, 

at market value, who meet with specific 

performance requirements in terms of compliance, 

operational management, financial management, 

and product and market development. 

Waste Beneficiation is one such example of what 

is possible through REDISA’s business incubation 

programme. The business brings a unique solution 

to downsize and remove large Off the Road Tyres 

(OTR) from stockpiles, allowing for abatement plans 

to be developed and implemented at the mines. The 

company has the capacity to downsize between 

50-60 tons of OTR tyres per day with state-of-theart 

machinery situated to service identified mines. 

The project addresses the environmental challenge 

posed by the vast volumes of discarded OTR tyres. 

In addition, Waste Beneficiation adds to the 

value chain of the country as the crumbed product 

How can businesses in the 

private sector take up opportunities 

with REDISA? 

There is a growing demand for 

more and more waste tyres that 

can be used for end products 

made from the rubber, steel and 

textile derived from processing 

waste tyres. Crumb rubber is the 

result of processing automotive 

and truck scrap tyres in particular. 

During this process the steel and 

tyre cord (fluff) is removed, leaving 

tyre rubber with a granular 

consistency. This rubber crumb is 

often used in astro-turf as cushioning, 

where it is sometimes 

referred to as astro-dirt, asphalt 

for tarring the roads, floor mats, carpet padding, 

vehicle mudguards and adhesives. 

Due to this growing demand, we see this as 

an opportunity for new recycling businesses to 

get involved in the value chain. REDISA welcomes 

and encourages all compliant small businesses interested 

in recycling to submit an application to 

get involved in the REDISA Plan and to assist us to 

develop the economy of the country. 

We have always believed that with waste comes 

opportunity, and that by looking at waste differently 

from a circular economy perspective we can only 

grow as an economy. With South Africans generating 

more than 108-million tons of waste per year 

and only 10% of this being recycled, there is an 

opportunity to turn the burden of waste around. 

CONTACT INFO 

Tel: 087-35-73873 

Email: customersupport@redisa.org.za 

Website: www.redisa.org.za. 

33 


INTERVIEW 

Turning waste into 

wealth 

REDISA is helping to clean up the environment and, as 

the same time, empower and create jobs for thousands of 

South Africans. REDISA director Stacey Davidson plays a 

crucial role in the organisation’s community development 

initiatives. 

Stacey Davidson 

What message would you like to share with the business 

community about the work of community-based 

organisations? 

It’s essential to develop some kind of social impact, and it’s best if this is 

community based or with organisations that are home-grown. After all, 

when you actually understand the situation then you understand the 

context in which the stakeholders operate. When you understand the 

extent of the problem you are in a position to provide basic solutions. 

I always say that you can’t bring a Japanese model and apply it to Africa. 

The same applies when we’re looking at ways to deal with community 

problems. You need to have community players participate and 

I think that’s where REDISA has been successful because, as a public 

benefit organisation, we’ve really focused on understanding the South 

African challenge within the global context. We looked at waste and, 

where others saw rubbish, we saw potential, we saw opportunity… 

and we actually saw commodity. 

BIOGRAPHY 

Stacey Davidson joined REDISA 

in 2010 as a director, after working 

in various industries including 

finance. Davidson's interest 

in the economic empowerment 

of previously disadvantaged 

communities resulted in her 

volunteering for communitybased 

organisations such as 

NICRO, CAFDA and Triple Trust 

Organisation. It was Davidson's 

passion for community development 

which prompted her to 

join REDISA. 

"WE LOOKED AT WASTE AND WHERE 

OTHERS SAW RUBBISH WE SAW 

POTENTIAL, WE SAW OPPORTUNITY 

AND WE ACTUALLY SAW COMMODITY." 

What are the challenges in commoditising waste? 

We developed REDISA’s Waste into Worth concept, and this highlights 

the legal concept of extended fiduciary responsibility. This 

effectively means that if you’re manufacturing a product then you 

are responsible to deal with that product when it no longer has a 


34

INTERVIEW 

useful life. The challenge with extended fiduciary 

responsibility is that we’re looking to industries in 

the manufacturing sector to solve this problem, 

and that’s why we say that it's wrong to make the 

boss the gardener. 

I’m always astonished by the level of innovation 

that I am privileged to see among low-skilled 

workers. They are so capable and bursting with 

potential, but the problem is that we’re not yet 

taking the opportunity to these people, and that’s 

why it’s important to get them into the system. 

Once these people have been brought into the 

supply chain we ensure they have access to accredited 

courses and skills development to ensure 

that they have the opportunity to improve 

their own skill levels so they can migrate up the 

value chain. 

"I ALWAYS SAY THAT YOU 

CAN’T BRING A JAPANESE 

MODEL AND APPLY IT TO 

AFRICA." 

Why is the circular economy so important? 

When we deplete all of our virgin resources, recycling 

will be the only place that we will be able to 

get these resources from, so it makes sense from a 

strategic perspective. Building a circular economy 

requires a strong plan for recycling waste, which 

requires that you ensure that recyclable material 

is always picked up and put back into the system. 

Please give us some background to data 

sanitisation and a community-based 

marketing strategy. 

Data is a problem in South Africa, specifically for 

us because most of the communities that REDISA’s 

initiative aims to empower are informal, so they 

don’t have a formal address and so on. How we look 

to overcome the problem is through the mobile 

technology that we use, a lot of which is GPS-based. 

For instance, our registration process is done via 

mobile technology so we’re able to utilise where 

the person lives and works based on where they’re 

registered and, from that, we can factor their details 

into a system. 

One of the challenges for a community-based 

organisation is that, when it comes to driving out 

social impact, I believe that the perception of these 

organisations needs to change. The challenge is so 

big that you need to attract the right kinds of minds 

because, if you are dealing with public and social 

issues, you need to be the best of the best driving 

your initiatives. However, if you want to attract foreign 

investment, for example, then you need to be 

able to demonstrate the return on that investment. 

In other words, you need to demonstrate the impact 

that you are making. 

CONTACT INFO 

Tel: 087-35-73873 

Email: customersupport@redisa.org.za 

Website: www.redisa.org.za 

35 


Looking north 

South African companies are looking to intra-African trade to expand their businesses and 

improved infrastructure is key. 

Africa has a population of 1.2-billion, but less 

than 10% of the trade that happens on the 

continent is between African countries. 

Fully 30% of South Africa's exports are 

to other countries in Africa, but a massive 83% of this 

volume is into Southern Africa. This means that the 

potential for South Africa to grow its exports into other 

parts of Africa is enormous, if the infrastructural obstacles 

can be overcome. 

According to Taku Dundira, writing for tralac.org, 

South African exports into Africa in 2014 amounted 

to 16% of the total from other countries within Africa, 

putting SA in second place in the league table (Nigeria 

was ranked first, Angola third). The value exported 

by SA into Africa was $28-billion and just over half of 

the exports coming from the manufacturing sector. 

The four biggest manufacturing sub-sectors were 

machinery (33%), transport equipment (including light 

vehicles, 22%), base metals (20%) and textiles and 

clothing (5%). A number of South African companies 

have been looking north to expand their operations. 

Shoprite has been spectacularly successful in rolling 

out is supermarkets across the continent, Procter & 

Gamble has manufacturing facilities in Nigeria and 

Sanlam has 20% of the insurance market in Sub- 

Saharan Africa. Old Mutual has purchased Oceanic 

Life, a Nigerian life insurance company. 

There are plans to create a Tripartite Free Trade 

Area covering three regional groupings across 26 

countries. Extending from South Africa in the south 

and to Uganda and Kenya in the north, the proposed 

free trade area would encompass more than 620-million 

consumers in these three regional organisations: 

Southern African Development Community (SADC), 

the Common Market for East and Southern Africa 

(Comesa) and the East African Community (EAC). 

The buzz-words in promoting intra-African trade 

are "bureaucracy", "corridors" and "infrastructure". 

South African retailer Shoprite has noted that 

it spends about R20 000 per week in permits, and 

long waits at border posts are routine. But the 

Chirundu one-stop border post in Zambia has reduced 

transit times by a third. Passenger transport 

delays have been reduced from three hours to 

30 minutes and freight is now cleared in one day 

instead of three. 

A number of corridor projects are in the pipeline 

or have already been implemented. The Maputo 

Development Corridor has successfully linked the 

thriving industrial and business centre of Gauteng 

Province in South Africa with the Mozambican port 

city of Maputo. The idea of corridors has been 

adopted by the Infrastructure Consortium for Africa 

(ICA), and several corridors have been conceptualised 

since that decision, for example the Northern 

Corridor of Central and East Africa. 

A corridor strategy relies on infrastructure, with 

inter-related plans being developed involving the 



upgrading and standardisation of facilities at ports, 

railway lines, customs posts and energy projects. 

South African rail, ports and pipeline operator 

Transnet is already active in African countries north 

of the South African border, and is intending to offer 

its services more widely. 

This is part of Transnet's Market Demand Strategy 

(MDS), which seeks to grow the business by responding 

to the market. Instead of simply making rail wagons 

for Transnet Freight Rail, the broader strategy 

looks for new customers (elsewhere in Africa, or in 

India, China or Australia) where rail wagons can be 

sold. 

Transnet Engineering's own Trans- 

Africa Locomotive (for branch lines and shunting 

yards) is being marketed to other African countries 

and mining companies. 

Another strand of the MDS is evident in 

Transnet Engineering planning to set up Maintenance 

Repair and Operations (MRO) centres in four African 

countries. Transnet Ports Authority might similarly 

offer its expertise in running harbours and logistics 

to countries in the corridor. 

The Sustainable Development Investment 

Partnership (SDIP) comprises 30 institutions that 

aim to see 16 African infrastructure projects (valued 

at more than $20-billion) carried out. The founders 

of the SDIP were the World Economic Forum (WEF) 

and the Organisation for Economic Co-operation 

and Development (OECD) and other members 

now include the Bill and Melinda Gates Foundation, 

the Senegal Strategic Investment Fund (FONSIS), 

US Agency for International Development (USAID), 

the Industrial Development Corporation of South 

Africa (IDC) and the Development Bank of Southern 

Africa (DBSA). 

The DBSA is concentrating on energy, transport 

and bulk water projects in its area and has plans to 

increase its investments to about R20-billion in the 

short term. The focus of organisations such as the 

DBSA is on infrastructure, and this will have a positive 

spin-off for trade of all kinds, through improved 

ports and roads, and healthier populations in rural 

and urban areas. 

China has pledged to support the rehabilitation 

of the railway line between Zambia and Tanzania 

while the Industrial and Commercial Bank of China 

is to invest R20-billion in renewable energy in Africa. 

Lack of reliable power supply is a constraint to trade 

so this and other ventures in the power sector will 

help to foster trade. 

The South African Department of Trade and 

Industry (dti) plays a key role in terms of promoting 

trade between South Africa and the rest of Africa, but 

also supports regional bodies such as SADC and promotes 

the kind of integration contained in the plans 

of the New Partnership for Africa’s Development 

(NEPAD) and the African Union’s Agenda 2063. 

During 2016 the dti launched the Trade Invest 

Africa initiative to coordinate and implement South 

Africa's economic strategy for Africa. By working 

with the private sector, government hopes to take 

advantage of export and investment opportunities 

on the continent. 

The Export Credit Insurance Corporation of South 

Africa (ECIC) exists to help trade and investment 

across borders. The ECIC can provide insurance for 

bank loans that are taken by investors and South 

Africans can get insurance for investments and for 

small and medium enterprises there is a product 

available (performance bonds) to anyone exporting 

capital goods and services. 

37 


FOCUS 

ECIC: 15 years of export 

project excellence 

The Export Credit Insurance Corporation of South Africa has a unique 

understanding of Africa’s export dynamics. 

The creation of the ECIC began 15 years ago in July 2001 when 

the Export Credit Insurance Corporation of South Africa Ltd 

(ECIC) was given a mandate of filling a market gap through 

provision of medium to long-term export credit and investment 

insurance by underwriting bank loans against political and 

commercial risk, on behalf of the South African government. The 

short-term transaction market was amply catered for, but medium to 

long-term export transactions still had a need for a dedicated export 

credit agency, hence the establishment of the ECIC. 

Although regarded as the "insurer of last resort", the ECIC is as much 

of an enabling development organisation as it is an export credit 

agency (ECA), explains its chief executive officer, Kutoane Kutoane. 

Acting as a catalyst for private investment, the ECIC steps in where 

commercial lenders are either unwilling or unable to accept long-term 

risks. While the ECIC is part of a broader government policy, it remains 

an autonomous limited liability company, but with the government 

as its sole shareholder. The institution is enabled under the amended 

Export Credit and Foreign Investments Insurance Act of 1957. 

"ACTING AS A CATALYST FOR PRIVATE 

INVESTMENT, THE ECIC STEPS IN WHERE 

COMMERCIAL LENDERS ARE EITHER 

UNWILLING OR UNABLE TO ACCEPT 

LONG-TERM RISKS." 

Along with the major shareholder, the Department of Trade 

and Industry, the ECIC makes use of market research tools and 

specialised business development units to develop new insurance 

products that support government’s export promotion objectives. 

ECIC CEO, Kutoane 

Kutoane 

Performance Bond insurance 

cover, which was launched in 

2015, is one such example. 

Currently, the ECIC is working on 

covering credit lines and return 

of plant and equipment, but it 

also continues to motivate for 

the release of increased lending 

capacity by financial institutions 

by entering into agreements 

with other ECAs. In this way it 

creates a framework for both 

re-insurance and co-insurance 

and, to this end the ECIC has 

adopted a comprehensive plan 

of action aimed at actualising 

cooperation programmes for 

mutual benefit in conjunction 

with, among others, BRICS, ECAs, 

Afreximbank and Africa Trade 

Insurance. 


38

FOCUS 

The ECIC is strategically 

positioned as a key player in 

facilitating the availability and 

affordability of long-term finance 

to aid in unlocking the 

development potential of such 

operations, particularly in economically 

frustrated regions that 

experience fiscal constraints. It 

is well known that Africans are 

extremely proud of their heritage 

and that the strategies that 

foreign investors might apply 

elsewhere in the world need to 

be revised for the continent. The 

dynamics of the problems that 

African leaders and financiers 

face need comprehensive understanding 

and this is where the 

ECIC excels. The ECIC addresses 

obstacles through facilitation and by aiding in the 

release of funding required for infrastructure, and 

this is of particular concern to global organisations 

seeking an African presence. 

Export credit is imperative for the specific reason 

that capital exports are long-dated assets and it is 

customary for firms to finance such exports with bank 

debt for cash-flow management purposes. Export 

credit financing is, therefore, an important and key 

aspect of international trade. Access to competitively 

priced export credit creates the ability for our local 

contractors to bulk up and compete more effectively 

in foreign markets. With the ECIC in support of 

such transactions, the South African export market 

is enabled and contractors become more credible. 

This has a far-reaching impact on fostering a stronger 

economy and drives domestic job creation, contributes 

to fixed-capital formation and the GDP, as well 

as the generation of fiscal revenue. 

"The ECIC is able to price African risk more effectively 

given its indigenous status even though 

demands might be universally similar. Ideally, what 

we ensure is the provision of cost-competitive 

cover and the honouring of claims when they arise," 

says Kutoane. 

The ECIC's vision and mission is a commitment 

to sustainable business growth through innovative 

products, operational excellence, business development and strategic 

partnerships and, in enabling frontier markets to optimise production, 

it is motivating a positive socio-economic impact. 

"We also play a role by offering aid in narrowing the skills gap with 

a number of initiatives related to education, skills development and 

volunteerism. Beneficiaries of these projects have included Penreach 

in Mpumalanga, the Rehoboth Trust in KwaZulu-Natal, the Maths and 

Science Leadership Academy in the Northern Cape, and DeafSA in 

Limpopo," says Kutoane. 

The ECIC is a registered financial services provider: FSB No. 30656 

CONTACT INFO 

Physical address: Block C7 & C8, Eco Origins Office Park, 

349 Witch Hazel Avenue, Highveld Ext 79, Centurion, 0157 

Postal address: PO Box 7075, Centurion, 0046 

Tel: +27 12 471 3800 | Fax: +27 12 471 3850 

Email: info@ecic.co.za | Website: www.ecic.co.za 

39 



Skills development 

Detailed national plans are in place to promote skills training. 

South Africa has a skills deficit. Strenuous 

efforts are being made by government 

and the private sector to develop the skills 

base of the country's workforce. 

The national Department of Higher Education 

and Training (DHET) has designated 2014-2024 as 

"The Decade of the Artisan". As things stand, about 

13 000 artisans qualify every year: the goal (as defined 

by the National Development Plan) is to extend 

that figure to 30 000 by the year 2026. 

The state has also noted a number of skilled 

occupations that it has put on a "Occupations in 

Demand" list in order to be in a position to roll out 

ambitious infrastructure projects. These include 

civil engineers, construction project managers and 

quantity surveyors. 

The creation of the Labour Market Intelligence 

Partnership (LMIP) Project in 2012 was a collaboration 

between the DHET, the Human Sciences 

Research Council (HSRC) and Wits University. The aim 

was to develop a forecasting model to find out what 

skills would be needed by the country in the future. 

The National Skills Authority (NSA) works with 

Sector Education and Training Authorities (SETAs) 

in carrying out the National Skills Development 

Strategy (NSDS). The Human Resource Development 

Council of South Africa (HRDCSA) is an over-arching 

body that aims to give guidance to the many institutions 

working on skills development and training. It 

is managed by the DHET. 

The HRDCSA has identified five key areas where 

the skills pipeline must be improved: 

• Access to TVET colleges 

• Intermediate skills (artisans in particular) and 

professionals 

• Production of academics; collaboration between 

industry and educational institutions in research 

and development 

• Worker education 

• Foundational learning 

The HRDC's work readiness programme helps graduates 

learn the skills they need in order to find employment. 

Absa Bank also runs a "ReadytoWork" 

campaign that aims to close the gap between 

education and the world of work. The programme 

has previously been presented in six other African 

countries. 

The strategic goal of the DHET can be summed 

up as the creation of "a capable and skilled 

workforce for inclusive growth". There are many 



institutions supporting this goal, including 29 universities 

(some of which are universities of technology), 

50 Technical and Vocational Education and 

Training colleges (TVET) and 21 Sector Education 

and Training Authorities (SETAs). 

Particular skills have been identified and universities 

and TVET colleges have been asked to 

concentrate on 13 trade areas, including bricklayers, 

millwrights, boilermakers and riggers. R16.5- 

billion has been allocated by national government 

to skills development and infrastructure over the 

medium term. 

SETAs collect dues from companies in a particular 

industry (wholesale and retail, banking, construction, 

chemical industries, for example) in order 

to promote training in that industry. A percentage 

of this money is returned to the company if that 

company can show that they have a workplace 

training plan. The rest of the money is used to offer 

skills training. 

TVET colleges exist to impart skills that are relevant 

to the workplace. Every province has several of these 

colleges, many of which are the successors to "technical 

colleges" and they offer many of the courses 

that were associated with those institutions. Although 

many bursaries exist for students and enrolment at 

colleges has risen steeply in recent years, the high 

cost of some courses means that these colleges are 

not accessible for unemployed people. 

The College of Cape Town (CCT) has eight campuses 

and its selection of courses gives a good illustration 

of the range of studies available to students at 

TVET colleges. Courses at CCT range from engineering 

(electrical, civil and mechanical), through travel and 

tourism, hospitality, hair care, beauty therapy and art 

and design, to business studies, information technology 

and education and training. The college has three 

residences in different parts of the city. Career guidance 

is offered and the college has a work placement 

programme for graduates. 

Private colleges such as MANCOSA (Management 

College of Southern Africa) often specialise in particular 

fields. In this case, a range of certificates, diplomas 

and degrees in business, commerce and 

administration is presented at five sites around South 

Africa, including East London and Polokwane. The 

MANCOSA Graduate School of Business in Durban 

offers executive education and postgraduate management 

programmes, including the Master of Business 

Administration (MBA) degree. 

The Southern African Wildlife College offers even 

more specialised training. With facilities adjacent to the 

Kruger National Park and the Timbavati Game Reserve, 

students studying to be field staff or managers of 

protected areas have the best possible environment 

in which to learn. Among the certificates offered are 

Nature Conservation Implementation and Leadership 

and Trans-frontier Conservation Management. 

The new university in Mpumalanga is incorporating 

existing training institutions in the province 

to enable it to give theoretical and practical courses 

in agriculture and biodiversity, food security, resource 

and wildlife management, nature conservation, 

plant and animal sciences, and forestry and 

wood sciences. Mpumalanga is one of the country's 

most important provinces when it comes to flora 

and fauna, game tourism and forestry so students 

will be learning skills relevant to the job market. 

Skills development is being promoted on a 

broad front. Some examples include: 

• The Sasol Inzalo Foundation (Saif), which supports 

students in science and engineering: 

105 black, mostly female students graduated 

in 2015. 

• The Square Kilometre Array (SKA) radio telescope 

project has so far supported 800 people 

in training from artisan level to post-graduate 

academic study. 

• Transnet National Ports Authority (TNPA) is building 

a marine training centre in Cape Town to 

supplement the Transnet Academy. Transnet will 

spend more than R1-billion on bursaries to 2023. 

• A South African Renewable Technology 

Centre (SARTEC) has been established by the 

Department of Higher Education with the support 

of the German government. 

• AgriSETA is offering skills programmes and 

mentorships to unemployed people together 

with the Department of Rural Development 

and Land Reform, the SA Sugar Association and 

Grain SA. 

• The Association for Skills Development in South 

Africa (ASDSA) is a body that confers professional 

"designations" on skills developers. 

41 


FOCUS 

Building South Africa’s 

human resources through 

industry-education 

partnerships 

The Human Resource Development Council is assisting in bridging the gap between 

higher education and the needs of business. 

The HRDC is partnering to innovatively develop South Africa's 

human potential. 

Industry-education partnerships are collaborative efforts that bring 

higher education institutions, businesses and community together 

to address their mutual interest in higher and further education. 

While helping to advance the educational development in higher 

and further education institutions, the partnerships also address 

skills scarcity needs. They provide stakeholders outside the education 

and training system, like the private sector, with an opportunity 

to contribute in the development of educational programmes and 

related decision-making. 

The industry and education partnership initiative of the Human 

Resource Development Council (HRDC) encourages partnerships 

between education institutions and other stakeholders, primarily, 

the private sector, SETAs and communities, to enhance the performance 

of the education sector. The point of departure for the 

initiative is an acknowledgement that there are generally low levels 

of human resource development among the majority of the formerly 

disadvantaged population 

and high unemployment rates, 

especially among the youth. 

The Post School Education and 

Training (PSET) system holds a 

key to unlocking the human resource 

development challenges. 

This includes unemployment, 

and ultimately contributes to 

the broader objective of socioeconomic 

transformation and a 

more equal society. 

There is good reason to believe 

that education institutions should 

work proactively with industry to 

deliver appropriately skilled and 

capacitated graduates to meet 

societal and economic needs. 

One of the main objectives of 

the White Paper is a stronger and 

more cooperative relationship 

between education and training 

institutions and workplaces. 

There are currently a number of 

partnerships that the HRDC is actively 

driving and working on, to 

ensure they succeed. 

Key among these is the 

recent partnership between 

the community colleges and 

Harambee to ensure that learners 

from these colleges are 


42

FOCUS 

trained and successfully placed 

in jobs after completion. A number 

of private-sector companies 

and SETAs have responded to 

this call positively and declared 

themselves available to partner 

to ensure that youth unemployment 

is addressed. 

Standard Bank South Africa 

has also embraced the HRDC 

initiative of fostering partnerships 

and has developed a 

partnership initiative called 

SBSA Value Add Offering. This 

partnership offers a number 

of programmes to colleges 

depending on their needs. 

The overall purpose is to offer 

services ranging from expertise 

and standards to funding, workplace 

training, networks with 

other colleges and between 

lecturers and industry experts 

and employment opportunities 

for learners. This initiative was 

endorsed by the HRDC on 13 

September 2016. SBSA Value 

Add Offering provides TVET 

colleges with programmes 

aimed at management, lecturers, 

students and the entire 

institution. 

The HRDC has a programme 

called “Adopt a TVET college” 

where industry is encouraged 

to adopt a TVET college so that 

the industry is able to make 

contributions towards what 

learners are taught practically 

in order to make the transition 

from college to the workplace 

a smooth one. “It is essential 

therefore that we work together 

with government, business and 

other stakeholders to improve 

the scale, quality and relevance 

of our TVET college system,” said 

the Deputy President of South Africa during the launch of “Adopt 

a TVET college”. 

Some of the colleges that have embraced this initiative include the 

Flavius Mareka College, which states that its partnership with Sasol is 

a key partnership born out of the HRDC initiative, and the Ekurhuleni 

West College, which has many partnerships including one with Ford 

South Africa. The partnership with Ford provides practical experience 

both at college and workplace to learners who are studying towards 

a qualification in motor mechanics. The Ekurhuleni East College has, 

among others, partnered with Samsung Electronics to ensure quality 

training and placements for Work Integrated Learning for learners who 

are studying electronics. 

The complex challenges of poverty, inequality, high levels of unemployment, 

illiteracy, crime and disease require collective efforts to 

respond appropriately and effectively. Neither government nor the 

market can develop the necessary capabilities required to address these 

challenges on their own. The collaboration between education institutions 

and industry will enhance capabilities to address South Africa’s 

complex challenges. The education and training system requires close 

cooperation with industry, especially in the programmes providing vocational 

training. This will reduce the mismatch of educational outcomes 

and workplace requirements. 

There is increasing need for universities and colleges to contribute 

towards the economic development of the country through the development 

of a knowledge economy that is competitive and open to 

innovation, adding value to the technological capabilities in industry. 

At the same time, higher education institutions can also benefit from 

collaboration and partnership agreements with industry, as in the above 

examples. 

When industry and higher education institutions work hand in hand 

to reach new heights of knowledge, they become a powerful engine 

for innovation and economic growth. The HRDC has prioritized these 

partnerships. 

The perceived disconnect between higher education and industry is 

partly due to the lack of adequately trained graduates for industry, mainly 

those with measurable skills in science, technology, engineering and 

mathematics (STEM) subjects. This remains a key concern for business. 

Business and post-school education have found common cause in 

recent decades in preparing a skilled workforce to preserve the nation’s 

competitiveness and economic opportunities in response to rapid technological 

change and increasing global competition. 

Where meaningful partnerships exist between business and higher 

education, the gaps between the supply of graduates and the demand 

for skills are significantly reduced, and the needs of businesses are more 

closely associated to the academic curricula. 

www.hrdc.org.za 

43 SOUTH AFRICAN BUSINESS 2017

FOCUS 

Positive change 

through enterprise 

development 

The Masisizane Fund’s new CEO, appointed in mid-2016, has pledged to continue 

the work of the Fund in contributing to positive change in South Africa. 

Zizipho Nyanga, the new CEO of the Masisizane 

Fund, has 10 years’ experience in business support, 

entrepreneurship, deal making, financial management, 

auditing, risk advisory and internal control 

improvements in fast-paced organisations. 

Promoted to the position of CEO in October 

2016, she initially joined the Masisizane Fund in 

2014 as the Head of Post Investment Monitoring 

and Business Support. 

During this time she also served as the Alternate 

Chairperson of the Executive Committee Credit 

Review and a Member of the Enterprise and 

Supplier Development Committee (Mutual & Federal). 

“Institutions like ours have a very important role to 

play in creating access to funding for small businesses, 

therefore we need to work closely with those that 

have a similar mandate to us in order to make meaningful 

impact. Maintaining strong and effective partnerships 

with institutions like SEFA, Productivity SA, 

SEDA, SAICA and Department of Rural Development 

is very important in ensuring this," Zizipho says. 

Zizipho holds a BCom Accounting from the (former) 

University of Transkei and a Higher Diploma in 

Accounting from Wits University. After graduating 

she joined Ernst & Young (EY) as a Trainee and later 

qualified as CA (SA). 

EY’s global footprint provided her with an international 

opportunity while she was seconded to 

the San Jose office in California. During her time 

there she was exposed to the entrepreneurial culture 

in small businesses and her passion for rural 

development and economic transformation was 

born. “I learnt that the only way to truly bring about 

economic transformation is to walk a journey with 

the business and assist them to grow into a thriving 

enterprise rather than to just give them money, 

waiting for them to pay back and hoping for the 

best. Growing and assisting a business successfully 

can only be done through establishing good and 

trustworthy partnerships,” Zizipho says. 

It is evident from her career history that 

Zizipho has the skills and experience necessary to 

continue building on the good work of the Masisizane 

Fund. The Fund is an Old Mutual initiative set up as 

a non-profit funding company to provide financial 

and non-financial support to small, medium and 

micro enterprises. 

Zizipho Nyanga 


44

MASISIZANE FUND 

The Masisizane Fund (NPC) is an initiative of Old Mutual South Africa, 

established in 2007 following the closure of the Unclaimed Shares Trust. 

The mandate of the Fund is to contribute meaningfully to employment 

creation, poverty eradication and reduction of inequality, economic growth 

and the attraction of investment. This is achieved through the promotion of 

entrepreneurship, enterprise finance and support to small, micro and medium 

enterprises. 

The fund’s focus is on enterprises that are 51% or more owned by previously 

disadvantaged individual(s) giving priority to rural and peri-urban/township 

areas. Masisizane gives preference to businesses that are owned by youths, 

people with disabilities or are owned by (51% or more) women and targets 

productive and labour absorbing sectors. 

The Fund’s success is driven by a focused approach on high impact industry 

sectors, coupled with a comprehensive SMME finance solution that includes 

business support. The Fund provides loan finance in the following sectors: 

Agribusiness 

Franchising 

Supply Chain 

The Fund supplies non-financial value adding post investment services 

including capacity development, business management and technical 

support, financial education, market development and product/service 

quality standards and compliance. A Business Accelerator Program has 

been established where potential clients receive targeted skills training and 

support to grow into a business eligible to receive financial support. 

Masisizane operates nationally with its head office in Gauteng and regional 

offices in KwaZulu-Natal, Limpopo, Eastern Cape and Western Cape. 

Submit the following documents for an initial screening by the relevant 

provincial office: 

• Comprehensive business plan with market analysis and projections; 

• For established businesses – past financials (preferably 3 years) and 

latest management accounts; 

• For start-up businesses – financial projections; 

• Tax clearance certificate; 

• Off take agreements and/or letters of intent; 

• Signed consent for a credit check. 

Contact details: 

• Gauteng, North West and Free State – 011 217 1746 

• Western and Northern Cape – 021 509 5074 

• KwaZulu-Natal – 031 335 0400 

• Eastern Cape – 043 704 0116 

• Limpopo and Mpumalanga – 015 287 4279 

For more information and where to find us visit 

www.masisizane.co.za 

An initiative of the 

Group 

Old Mutual is a Licensed Financial Services Provider

PROFILE 

Novus Holdings 

Leading innovation and progress in printing 

and manufacturing. 

Through operational expansion, diversification and 

investment in cutting-edge technology, Novus 

Holdings has become the most comprehensive 

commercial printing and manufacturing operation 


Previously known as the Paarl Media Group, Novus 

Holdings operates a nationwide network of specialised 

plants with its headquarters based in Cape 

Town. With a rich heritage built on 100 years of combined 

experience, the Group services the African 

continent with print production of short- to long-run 

magazines, retail inserts, catalogues, books, newspapers, 

commercial work, wet glue labels, self-adhesive 

labels, educational materials, as well as digital and 

securitised printing (ballot papers, examination 

papers, census forms) and tissue products. 

Novus Holdings is committed to making a sustainable 

difference in the communities in which 

it operates, as well as driving skills development 

and transformation within the industry. The Group 

continuously invests in and implements environmentally 

responsible practices to reduce, re-use 

and recycle, while still delivering superior products. 

The resilience of Novus Holdings’ business can be 

attritbuted to its long-standing customer base, diversified 

product offerings, outstanding service and 

ability to innovate and offer unique propositions to 

the market as the landscape changes. 

Capital expenditure in excess of R3-billion has been 

spent since 2000 to ensure that the Group’s facilities 

are equipped with modern global technology, 

perfectly positioning Novus Holdings as a single 

source for all printing requirements. 

Continued extension and 

diversification of product offerings 

Novus Holdings is always committed to pursuing 

opportunities that are synergistic to its inherent core 

strengths and has growth potential in line with its 

diversification strategy and the expanding needs 

of its customers. 

The Group’s diversification process includes a firstclass 

print-on-packaging and labelling division, as 

well as a tissue division that produces domestic tissue 

paper through the effective use of waste paper 

from the printing operations. 

CONTACT INFO 

Tel: +27 21 550 2500 

Physical address: 10 Freedom Way, 

Milnerton, 7441 

Postal address: PO Box 37014, Chempet, 7442 

Email: info@novus.holdings 

Website: www.novus.holdings 


46

PRINT 

LABELS 

TISSUE 

novusholdings 

www.novus.holdings

KEY SECTORS 

Overviews of the main economic 

sectors in South Africa 

Agriculture 48 

Mining 54 

Mineral beneficiation 57 

Oil and gas 58 

Energy 60 

Water 64 

Engineering 71 

Manufacturing 72 

Chemicals and pharmaceuticals 74 

Food and beverages 75 

Automotive 76 

Transport 78 

Information and 

communications technology 85 

Education and training 91 

Tourism 98 

Banking 102 

Development finance and 

SMME support 104

OVERVIEW 

Agriculture 

Agri-processing is a key focus of future investment. 

South Africa's varied climate and wide range of soils ensure 

that it is able to produce a very diverse range of agricultural 

products. The country's agricultural exports earn the country 

valuable foreign exchange. 

Fruit, sugar and wine make up about 7% of the country’s total export 

basket. Avocados and tomatoes are among other important export 

crops, while the macadamia nut industry is growing exponentially. 

More than 50% of agricultural export is made up of processed 

agricultural products, a promising development for the future of agriprocessing. 

National trade policy strategies are intended to enhance 

this trend. 

Several of the Special Economic Zones around South Africa either 

have or will in the future have agri-processing facilities. Examples 

include existing tomato paste and dairy facilities at Coega IDZ, as well 

as plans to develop the Harrismith SEZ into a hub for agri-processing. 

The National Empowerment Fund (NEF) currently spends six percent 

of its allocation on agri-processing but intends to increase that. 

The focus for the spending of R288-million to date has been on small, 

medium and micro enterprises (SMMEs) and the NEF is just one state 

entity that has this focus. Several others are similarly engaged, for example, 

the Free State provincial government is rolling out a plan to create 

agri-parks to provide trading facilities, access to markets and training. 

The Free State Department of Agriculture and Rural Development 

(DARD) has highlighted the fact that only 11% of the province’s 

SECTOR INSIGHT 

The NEF intends to increase 

the proportion of its budget 

spend on agri-processing 

projects. 

primary agricultural production 

is processed within the province. 

A severe long-term drought 

had a big impact on South African 

agriculture. Good rains only came 

in July 2016, by which time the 

country had to import yellow and 

white maize (8.3-million tons in 

total) for the first time in more 

than a decade. The potato price 

doubled in 2016. The average 

10kg pocket cost R28.45 in 2015, 

R63.30 in March 2016. 

The Industrial Development 

Corporation (IDC) put up R400- 

million to allow the Land Bank to 


OVERVIEW 

advance loans to farmers in five 

provinces in areas that were declared 

disaster areas. 

About 850 000 people are employed 

in the agricultural sector 

(StatsSA) but many sub-sectors 

have been laying off workers in 

recent, dry, times. The exceptions 

were forestry and aquaculture, 

both of which increased their 

labour force. Primary agriculture 

provides 5% of formal employment 


A number of former farmers' 

co-operatives are now substantial 

agri-businesses. Most have a 

specific geographic and farming 

sector focus (BKB is strong in the 

eastern Free State and Eastern 

Cape and concentrates on wool 

and mohair, for example) while 

some, like the giant grain concern 

Afgri, have a national presence. 

Afgri, which is headquartered 

in Centurion, Gauteng, recently 

signed a joint venture (GeoAgro 

Africa) to give its farmers access 

to satellite technology. 

Senwes is another company 

that focusses on grain, and it 

controls 68 silos. Its operations 

are run from Klerksdorp in North 

West Province. Other companies 

include NTKLA (Limpopo), GWK 

(Northern Cape), Klein Karoo 

Agri, VKB (eastern Free State and 

Limpopo), Kaap Agri (from the 

Boland to the Eastern Cape and 

up to Namibia), SSK (Overberg) 

and TWK (KZN and Mpumalanga). 

Crops 

Global demand for macadamia 

nuts continues to outstrip production, 

but South African farmers in 

KwaZulu-Natal, Mpumalanga and Limpopo are doing their best to keep 

up. About one thousand new hectares are being planted every year, 

according to the Southern African Macadamia Growers' Association 

(SAMAC), adding to the existing 19 000 hectares already under macadamias. 

South Africa is currently the number one supplier in the world, 

with 27% of the market, followed by Australia. 

Production of nut-in-shell improved by almost 5% in 2015, to 46 950 

tons. About 45% of the previous year's crop was exported, mostly to 

the USA and Europe. About 3 000 new jobs have been created in the 

last decade, plus another 1 000 in cracking facilities. 

A total of 70% of South Africa’s grain production is maize, which covers 

60% of the cropping area of the country. The North West Province 

produces one-third of South Africa’s maize and about 15% of its wheat. 

The Free State is the country’s largest supplier of wheat (37%) and maize 

(34%). The Western Cape has 350 000 hectares of wheat-producing land. 

The South African feed industry has an annual turnover of about 

R50-billion with most of the raw material being soya and maize. 

Two of the country's big three sugar producers (Illovo Sugar and 

Tongaat Hulett) each shut down one of their mills temporarily because 

of the drought but South Africa still crushed 17.7-million tons of sugar 

cane in the 2014/15 season. Saleable sugar production figures have 

returned to two-million tons plus since 2013/14, after dropping to 

1.8-million tons in 2011/12. 

The other big sugar company, TSB Sugar, has been acquired by RCL 

Foods. TSB milled a record 702 000 tons of raw sugar in 2014/15. 

The Free State Province supplies significant proportions of the nation’s 

sorghum, sunflower, potatoes, groundnuts, dry beans, and almost 

all of its cherries. Barley and canola are produced in the Western Cape. 

Products distinctive to South Africa, such as rooibos tea (Western 

Cape) and marula berries (Limpopo) hold great potential to capture 

niche markets internationally. 

Fruit 

South Africa is famous for its fruit. Export volumes, particularly in tropical 

fruits such as mangoes and avocados, have been growing rapidly 

in recent years. The sector is highly sophisticated and is skilled at the 

refrigeration and packing required for European Union standards. 

Large volumes of exports are achieved in deciduous fruits such as apples, 

table grapes, pears, peaches, plums and apricots. Avocados thrive 

in Mpumalanga and Limpopo and production volumes above 110 000 

tons per year have been achieved. About 45% of production is exported. 

Most of South Africa’s citrus and subtropical fruit comes from the 

eastern part of Limpopo. Some of the world’s biggest farming enterprises 

operate in Limpopo Province. Westfalia (which is part of the 

Hans Merensky Group) is an avocado grower of note, while ZZ2 is a 

51 


OVERVIEW 

huge fresh tomato enterprise. Halls has an international reputation for 

avocados and litchis. 

Companies such as Capespan and Dole SA move huge quantities 

of fruit around the world. South Africa exports about 650 000 metric 

tons to the EU (about 40% of the total). This brings in total earnings of 

R9-billion, of which R4-billion is from the EU. A new development in 

the citrus sector is the establishment for small growers of the Growers' 

Development Corporation. 

The ban on black spot, which the EU introduced in 2013, was lifted 

in January 2014. The South African producers always claimed that the 

spot was not harmful in any way, but just a cosmetic blemish. 

The Orange River supports the cultivation of citrus and grapes of 

many kinds. The region is particularly well suited for the cultivation of 

Valencia oranges, lemons and grapefruit and the dry, hot conditions 

mean that it is easy to control pests. 

Wine 

Export volumes have been steadily rising for South African wines. There 

are about 3 500 wine producers in South Africa, with the large majority 

located in the Western Cape. There are 54 producer cellars. 

The industry is located, for the most part, in the Western Cape, 

but Orange River Cellars in the Northern Cape is growing production 

volumes. Europe remains the main export market but India and the Far 

East are growing in importance as destinations. 

The Distell group produces about a third of the country’s natural 

and sparkling wine and is ranked 12th in the world in global wine 

volumes sold. 

Livestock 

Livestock farming is the largest agricultural sub-sector in South Africa. 

The Eastern Cape is the largest livestock province. South Africa has a 

beef herd of 14-million. 

Clover, Africa’s largest milk processor, has a turnover of R6-billion and 

a staff of more than 6 500. The Eastern Cape provides approximately a 

quarter of South Africa’s milk. Parmalat has two plants in Port Elizabeth. 

ONLINE RESOURCES 

Agricultural Research Council: www.arc.agric.za 

Forestry South Africa: www.forestry.co.za 

National Department of Agriculture, Forestry and Fisheries: 

www.daff.gov.za 

There are 6.4-million goats 

in South Africa. The Kalahari Kid 

Corporation (KKC) intends to raise 

the standard of goat meat and 

expand the export market. 

South Africa produces about 

55% of the world’s mohair, the 

high-quality speciality fibre taken 

from Angora goats. Almost 

all mohair farming is done in the 

Eastern Cape. 

Forestry and paper 

The forest product export sector 

in South Africa is made up 

of paper (45.2%), solid wood 

(23.3%) and pulp (28.9%). Imports, 

weighted towards paper products, 

cost the country R9.8-billion 

annually, clearly indicating scope 

for increased domestic production. 

The sector employs approximately 

462 000 people with some 

two-million dependants. Mondi 

and Sappi are both large international 

companies. The pulp 

and paper sector makes a direct 

contribution to South Africa’s balance 

of payments of R4.5-billion, 

largely due to Sappi’s dissolving 

wood pulp operations. 

Mpumalanga has South 

Africa’s biggest sawmill and its 

largest panel and board plant, 

together with the biggest integrated 

pulp and paper mill in 

Africa. There are sophisticated 

plants at several locations around 

the country: the country’s largest 

hardboard plant is at Estcourt. 


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FOCUS 

Mondi Rotatrim – 

celebrating more than 

30 years of excellence 

The leading office-paper brand is produced at the Durban mill. 

Mondi Rotatrim, produced by the 

Mondi Group at our Merebank mill 

in Durban, is celebrating more than 

30 years in the South African market. 

Mondi Rotatrim is a leader among office 

paper brands that offers superior multi-functional 

office paper that runs smoothly through 

photocopiers, laser and inkjet printers. 

The brand carries the Forest Stewardship 

Council Chain-of-Custody certification, an 

independent international accreditation providing 

assurance to customers that Mondi 

Rotatrim is produced from responsibly managed 

forests. 

Made from Elemental Chlorine Free (ECF) pulp, Mondi Rotatrim 

is the only locally manufactured paper with a 160CIE rating for 

superior whiteness. 

At the heart of the production process is our 6m-wide Voith 

Paper Machine – one of the most technologically advanced in the 

Southern Hemisphere. 

Equipped with state-of-the-art technology, Paper Machine 31 

produces high-quality, uncoated wood-free grades with copy paper 

forming the bulk of production. This production line is supported 

by modern converting equipment. 

To support our high-quality operations, the right skills are essential. 

We maintain a consistently high level of training in our 

operations and in 2015 four of our papermakers successfully completed 

their international Pulp and Paper Craftsman qualifications 

in Europe, becoming the first on the African continent to hold 

this qualification. 

Our unrelenting drive to deliver the highest quality in everything we 

do has enabled us to make a product that is a household name today 

and is supplied countrywide and to the rest of Africa. 

Mondi Group’s consistent and 

focused long-term strategy has 

positioned us as a leading international 

packaging and paper group, 

with a strong platform for growth. 

With this backing, it is little 

wonder Mondi Rotatrim has become 

a market leader among 

office paper brands over the past 

30 years. 

www.mondigroup.com 


54

25 years of wetlands 

conservation 

FOCUS 

Mondi supports water stewardship in South Africa. 

Wetland, Mondi Gilboa. 

The WWF-Mondi Wetlands Programme (MWP) celebrated its 25th 

anniversary in 2016. Started in 1991 as a collaboration between 

WWF-SA and WESSA, it is one of the country’s longest-running 

privately funded ecological conservation programmes and the 

first wetland initiative to focus on the protection of wetlands outside 

of protected areas. 

Wetlands play a vital role in the environment and society, and in 

the sustainable provision of water for both. They support people and 

their economic activities including farming, fishing, tourism and water 

provision. Healthy wetland ecosystems are the most biologically 

diverse of all ecosystems, and they also protect coastlines, prevent 

flooding, filter pollutants and act as giant sponges – soaking up 

rainwater and releasing it slowly over time. 

The WWF-Mondi Wetlands Programme initially focused on the 

rehabilitation of key wetlands in South Africa. It has worked in major 

water-stressed catchments with industries that have traditionally 

impacted wetlands and water resources and demonstrated how 

water stewardship and good 

business practices go handin-hand. 

In 2014, the WWF-MWP 

broadened its focus from wetlands 

to water stewardship using 

a new landscape approach. 

The focus is on the entire landscape 

rather than individual 

landowners or land-use sectors 

and an effort is made to create a 

deeper understanding of shared 

responsibilities and shared risks 

with everyone involved in a 

product’s value chain. 

www.mondigroup.com 


OVERVIEW 

Mining 

South Africa has vast mineral reserves and excellent infrastructure. 

South Africa has huge reserves of platinum and chrome and 

produces about 40% of the world’s vanadium and vermiculite. 

The country has large reserves of ilmenite, palladium, 

rutile and zirconium and 80% of the world’s known manganese 

reserves are located in the Northern Cape Province. South Africa 

no longer enjoys world dominance in gold production – both China 

and the US produce more ounces – but it does produce 75% of the 

world’s platinum and 73% of its chrome. 

Coal and platinum group metals (PGMs) have overtaken gold as 

the minerals generating the biggest sales volumes. Coal, iron ore, 

gold and platinum group metals (PGMs) collectively make up 80% of 

South Africa's mineral sales. 

South Africa is the second-largest exporter of steam coal in the 

world and is the number-one producer of andalusite. The Witbank 

coal fields of Mpumalanga are the most productive in Africa and the 

province lies at the southern end of the eastern limb of the Bushveld 

Igneous Complex. With mines in Mpumalanga reaching the end of 


The iconic Anglo American 

has announced that it will, in 

future, only focus on three 

minerals. 

their lives, the coal reserves of the 

Waterberg region in Limpopo are 

attracting attention. The ferroalloy 

industry is centred on the 

town of Middelburg. Nkomati 

Mine is South Africa's only purenickel 

operation. 

After a very tough period for 

gold producers, the recovery of 


OVERVIEW 

the gold price to above $1 300 

per ounce in late 2016 came as a 

great relief. Various international 

crises, including Britain's vote to 

leave the European Union, saw a 

return to gold by investors seeking 

a safe haven. Although the 

general trend in production volumes 

of gold in South Africa is 

downwards, there are some very 

profitable mines and newcomer 

Sibanye Gold (spun off from Gold 

Fields Ltd in 2012) has been buying 

up gold and platinum mines. 

Mines in Aggeneys in 

Namaqualand are responsible 

for approximately 93% of South 

Africa’s lead production and 12% 

of all world lead exports. 

There are 20 chromite mines 

in North West Province located 

along a reef running from Brits 

to Rustenburg and serviced by 

several ferrochrome smelters. 

With the Chinese economy 

slowing down, the demand for 

the main component of steel 

has dropped to the point where 

iron-ore projects in the Northern 

Cape have had to lay off significant 

numbers of workers. A new ironore 

sampling plant at Saldanha in 

the Western Cape, a joint venture 

between Kumba and Transnet, allows 

exporters to certify the quality 

of their product before the ore 

is loaded onto ships for export. The 

Northern Cape produces more 

than 84% of South Africa’s iron ore. 

The Kalahari Basin contains 

80% of the world’s manganese 

reserve, but only 15% of global 

production comes from this area 

so there is enormous scope for 

development. Several new blackowned 

manganese projects are 

underway. 

Zinc seldom features in reports, but when Vedanta started work in 

2015 on its R9.4-billion Gamsberg Zinc project, it was very big news 

indeed for a sector in need of good news. The new mine is near to 

Vedanta's existing Black Mountain mine in the Northern Cape Province. 

Every year Cape Town hosts the Investing in African Mining Indaba, 

the world’s largest gathering of the most influential stakeholders in the 

African mining industry. More than 7 000 leading financers, investors, 

mining professionals and government officials meet at the Indaba to 

network and broker deals. 

Trends 

One of the most significant changes in the South African mining 

landscape was announced in early 2016, when the global resources 

giant Anglo American, whose history is irrevocably linked with the rise 

of South Africa as an industrial nation, announced that it will focus on 

only three minerals: copper, platinum and diamonds. 

This means that a large number of coal, manganese and platinum 

assets, which for many decades resided in the Anglo American stable, 

are now on the market. Anglo's 69.7% share of Kumba Iron Ore may be 

sold as one asset or portioned off to different buyers. The company 

has announced that it wants to sell all its coal mines. 

Anglo's selling strategy dovetails nicely with the ambitions of relative 

newcomer Sibanye Gold. Sibanye Gold was created when four 

mines in the Free State and West Rand and some service companies 

were hived off from Gold Fields Ltd. Gold Fields retained the South 

Deep mine as its only South African asset: it also has mines in South 

America, West Africa and Australasia. 

57 


OVERVIEW 

Sibanye has been actively acquiring gold and platinum assets 

since its creation. Among the most significant was the agreement to 

buy Rustenburg Platinum Mines Limited (including two concentrating 

plants and on-site chrome recovery plant from Anglo American 

Platinum). When the deal is concluded, Sibanye will be the world's 

eighth-largest gold producer, the largest gold producer from South 

African mines and the fifth-largest global PGM producer. 

The purchase of Wits Gold in 2013 gave Sibanye access to assets 

in the Free State and Mpumalanga provinces and the acquisition 

process continued in 2016 with the purchase of Aquarius Platinum in 

April. With 800 000 ounces of platinum, uranium as a by-product of 

its gold production and the possibility that it will also buy coal mines, 

Sibanye Gold is no longer just a gold company. 

An issue that mining houses want resolved is the question 

of empowerment. A figure of 26% has been set for shareholding 

by black South Africans in terms of the Broad Based Black- 

Economic Empowerment (BBBEE) [Mining] Charter. The area where 

the government and the mining industry are yet to find agreement 

relates to what happens when black shareholders want to sell. If they 

sell to white investors, does the company have to sell new shares or 

does the status quo remain, in other words, is it "once-empowered, 

always empowered"? The Chamber of Mines says that the value of 

BBBEE deals since the year 2000 is R205-billion. 

Although the first two decades of democracy in South Africa 

saw some fairly robust exchanges in industrial relations, the labour 


Chamber of Mines of South Africa: www.chamberofmines.org.za 

Mining Qualifications Authority: www.mqa.org.za 

National Department of Mineral Resources: www.dmr.gov.za 

union movement itself was very 

stable. Most unions were allied 

under the banner of COSATU 

(the Congress of South African 

Trade Unions), which in turn was 

a key member of the tripartite alliance 

with the African National 

Congress (ANC) and the much 

smaller South African Communist 

Party. 

This no longer applies. One 

of the catalysts for change was 

the Platinum Belt strike of 2012 

in which a rival to the National 

Union of Mineworkers (NUM) rose 

to prominence. The Association 

of Mineworkers and Construction 

Union (AMCU) led the strikes that 

culminated in the tragic shootings 

at Marikana. 

There is also some movement 

in the diamond sector, with one 

of South Africa's richest men, 

Christo Wiese, increasing his 

holdings in Trans Hex and intending 

to de-list the company. 

Trans Hex has shares in the 

Namaqualand concession that 

De Beers sold in 2014. 

De Beers' biggest diamond 

mine in South Africa is in northern 

Limpopo where an investment 

of R280-million will expand 

production near the town 

of Musina. Venetia Mine is by far 

the most important part of De 

Beers' South African operation, 

accounting for 3.1-million of the 

5.4-million carats recovered by 

the company from its six operations. 

In the Free State, De Beers’ 

Voorspoed mine will have a 

production capacity of 800 000 

carats per year when it is fully 

operational. 


Mineral beneficiation 

Industrialisation is to be boosted by adding value to minerals. 

OVERVIEW 

South Africa's mineral reserves need to work harder to create 

a wider circle of prosperity. That is the fundamental idea 

behind the drive to increase the number of beneficiation 

projects in the country. 

The national departments of Trade and Industry (dti) and Science 

and Technology (DST) are developing policies and programmes to 

encourage private investors to do more with the nation's metals. 

One hi-tech example is the development of hydrogen fuel cells 

using platinum by Impala Platinum at its Springs refinery. The Nuclear 

Energy Corporation of SA is investigating turning fluorspar into Xenon 

Diflouride, a massively valuable product, and the Council for Scientific 

and Industrial Research (CSIR) has built a plant to convert titanium to a 

powder, that can be reformed into various applications. 

The state has indicated that it wants to build a new steel plant 

(through the Industrial Development Corporation and in partnership 

with a Chinese steel group), but the decline in iron-ore prices has put 

pressure on the existing steel producers of South Africa. Steel production 

is under severe threat as a result of cheap imports and tariffs are 

now in place. Steelmaking contributes more than 1.1% directly to South 

Africa’s gross domestic product (GDP), and a further 0.4% indirectly. 

South Africa’s biggest steel producer is Arcelor Mittal, which has 

four large plants located at Newcastle in KwaZulu-Natal, Vereeniging 

in Gauteng (long steel production), Vanderbijlpark in Gauteng (liquid 

steel) and Saldanha in the Western Cape (flat steel). There is also a coke 

and chemicals facility in Pretoria. 

Deposits of chromite, magnetite and vanadium in Mpumalanga are 

the basis of the ferro-alloy complex in Witbank-Middelburg. 

The Mineral and Petroleum Resources Development Act has introduced 

a "pilot commodity value chain" (developed by the National 

Department of Mineral Resources), which applies to the iron and 

steel industry. Future value chain strategies will be developed for 


Aluminium Federation of South Africa: www.afsa.org.za 

South African Iron and Steel Institute: www.saisi.co.za 

Southern Africa Stainless Steel Development Association: 

www.sassda.co.za 


A commodity value chain is 

being piloted for iron and 

steel. 

energy (coal, uranium), catalytic 

converters, jewellery and pigment 

production. 

South Africa plans to exploit 

its rare metals and intends to develop 

a beneficiation complex at 

the West Coast port of Saldanha. 

Titanium sands are currently exported 

at a value of about R2 690 

per ton but with beneficiation this 

could rise to R6 000. 

On the east coast, Richards 

Bay Minerals (RBM) mines the 

minerals sands of the northern 

KwaZulu-Natal coast for zircon, rutile, 

titania slag, titanium dioxide 

feedstock and high-purity iron. 

Titanium dioxide adds opacity to 

paints, fibres and plastics and it is 

also vital to the pigment industry. 

Hulamin is a leader in the sophisticated 

aluminium finishedproduct 

sector. 

In July 2016, De Beers, the 

South African government and 

the South African diamond 

cutting industry launched a 

project to encourage diamond 

beneficiators. Among the first 

companies involved are Thoko’s 

Diamonds, African Diamonds, 

Nungu Diamonds and Kwame 

Diamonds. 

59 


OVERVIEW 

Oil and gas 

South Africa is turning to gas. 


The Gas Industrialisation unit 

will position South Africa as a 

hub for the oil and gas sector 

in Southern Africa. 

New sources of energy are always welcome. South Africa still 

burns a lot of coal to create power, but gas is increasingly 

being seen as a viable alternative. 

In 2016, the Department of Trade and Industry (dti) established 

a Gas Industrialisation Unit (GIU), which is tasked with creating 

a strategy to exploit the huge fields of natural gas off the coasts 

of Mozambique and Angola. The idea is to create a regional hub that 

will promote industrialisation. The Trade and Industry Minister, Rob 

Davies, says that Mozambique resource alone is estimated at between 

5.7-trillion m³ and 7.1-billion tm³. South Africa's own potential in 

hydrocarbons will form part of the strategic planning. 

The idea of exploiting the shale gas reserves of the Karoo has 

already attracted controversy, but it seems that "fracking" is to go 

ahead. Companies that have shown an interest in looking for shale gas 

in the Karoo using hydraulic fracturing or "fracking" include Falcon Oil 

& Gas, Shell and a consortium comprising Sasol, Statoil ASA (Norway) 

and Chesapeake Energy (the US). 

Transnet ports are going to be important parts of the strategy for 

the GIU: one project already underway shows how this cooperation will 

operate. Construction has started 

in Saldanha on the West Coast of 

an Off-Shore Supply Base (OSSB) 

to give specialist support to 

boats and rigs involved in oil and 

gas operations. 

In another development, the 

ports of Saldanha, Ngqura (next 

to Port Elizabeth) and Richards 

Bay (on the KwaZulu-Natal north 

coast) will all receive additional 

power-generating facilities (powered 

by gas) in an investment that 

will total R64-billion. 

During the course of 2016, 

a private power producer joint 

venture delivered its second 

gas-fired power plant in South 

Africa. The Avon Peaking Power 

gas turbine open-cycle power 

plant near Durban went online 

in July. The joint venture (Peaker 

Trust, Japan’s Mitsui & Co, Engie 

and Legend Power Solutions) is 

also responsible for the 342MW 

gas-fired Dedisa Peaking Power 

Plant in the Coega IDZ. 

Natural gas plants can be 

planned and constructed inside 


OVERVIEW 

four years, much faster than coal 

or nuclear plants. Because gas is 

easy to switch on and off, it also 

makes it a good companion for 

the national renewable energy 

programme (which is encouraging 

private investors to build solar, 

wind and small-hydro facilities). 

A new addition to South 

Africa's pipeline network is a 

pipe to get natural gas from 

Mozambique to Gauteng. SacOil's 

R90-billion project aims to deliver 

gas to Johannesburg and the 

nearby towns in 2020. 

Oil 

Most of the oil that feeds the 

country’s four crude-oil refineries 

is imported, but a good deal 

of South Africa’s fuel is generated 

by a natural gas conversion 

plant on the coast and a coalto-fuel 

facility near the country’s 

industrial heartland. 

In addition to South Africa’s 

crude-oil refineries, natural gas 

conversion plant, coal-to-fuel 

and gas-to-liquid crude-oil refineries, 

Sasol produces fuel from 

coal at its Secunda facility and 

PetroSA has the country’s only 

gas-to-liquid (GTL) facility at 

Mossel Bay. 

Unfortunately, PetroSA suffered 

a loss in the 2014/15 year 

of R14.6-billion and feedstock for 

the Mossel Bay facility has dried 

up. Alternatives are being explored 

to supply the plant from 

other gas fields. 

The Petroleum Agency 

South Africa (PASA) supports 

exploration for onshore 

and offshore oil and 

gas resources and regulates exploration and production 

activities. Companies wanting to exploit resources have to get permits 

from PASA. 

The Sasol Group is a diversified resources and energy company. 

Sasol Oil, Sasol Gas and Sasol Synfuels provide a good proportion of 

South Africa’s fuel. 

Sasol converts coal to usable fuel (coal to liquids) and gas to liquids. 

The group has two major complexes in South Africa: at Secunda in 

Mpumalanga, nine reactors create solvents, ethylene, propylene and 

olefins; at Sasolburg in the Free State, natural gas is converted to 

syngas, which is then made into hydrocarbons and paraffin. 

Sasol is listed on the JSE in South Africa and on the New York Stock 

Exchange, operates in 30 countries, and has over 30 000 employees. 

Sasol New Energy has built a 140MW natural gas power plant to 

increase the amount of electricity available to the integrated energy 

and chemical group, allowing Sasol to reduce its carbon emissions 

by about a million tons per year. 

Utilising gas for power could allow South Africa to achieve the 

scale that would enable gas-based industries to emerge. 

Sapref has started a "clean-fuels" project, aiming to reduce sulphur 

and benzene levels, among other things, in fuel products. The 

modifications to the refinery will bring it in line with the tougher 

legislation about fuel production. 

The Western Cape region is marketing itself as a support and 

services hub to Nigeria and the newer oilfields of Angola. 

Saldanha on the West Coast is the site of the country’s largest 

oil-storage facility. PetroSA maintains six tanks, each of which has a 

capacity of 1.19-million cubic metres. 

A new fuel storage facility is being built in Cape Town with the 

support of the dti. The R650-million Burgan Cape Terminals falls under 

Operation Phakisa, an Oceans Economy initiative, which is intended 

to stimulate the maritime sector. 

BP has announced it will spend R4.7-billion in the short term in 

South Africa, with about half of that going into refinery upgrades. 

Both the Coega IDZ and the Port of Saldanha are to become 

centres for the recycling and refining of used oil. The investment of 

R650-million should create between 100 and 150 jobs. 


National Energy Regulator of South Africa: www.nersa.org.za 

Petroleum Agency South Africa: www.petroleumagencysa.com 

Sasol: www.sasol.com 

61 


OVERVIEW 

Energy 

Energy efficiency is a win-win. 


A national strategy for 

energy efficiency in South 

Africa is being developed. 

Energy costs are on the rise, both in real terms and in terms 

of pollution and climate change. One solution is to look for 

cheaper forms of fuel, including gas, biogas and renewable 

energy in the form of solar, wind or even wave power. But 

there is a growing trend towards energy efficiency, which saves on 

both sides of the equation by reducing energy demand, a genuine 

win-win solution. 

South Africa is one of the world's biggest emitters of carbon dioxide, 

with a fleet of ageing coal-fired power stations. The Department 

of Energy (DoE) has established its own unit to tackle this challenge, 

the Energy Efficiency Directorate. With the support of Danish Energy 

Management, an updated national strategy for energy efficiency 

is being developed for South Africa. Denmark is a world leader in 

energy efficiency and has found ways to reduce its energy usage 

despite the country's GDP growing ever stronger. The International 

Energy Agency’s (IEA) programme for support of emerging economies 

is also behind the project. 

One of the best known fields of energy efficiency is Green 

Buildings, but the energy sector itself is a rich field for savings, as 

are public services and industries 

of every sort. A particular 

target in many countries is the 

transport sector, where quick 

and very beneficial savings can 

be made very quickly. 

The Green Building move 

has developed so quickly that 

a star-rating system for buildings 

is now in place, run by 

the Green Building Council of 

SA (GBCSA). The Department 

of Environmental Affairs' new 

head office in Pretoria is fittingly 

a leader in the field when 

it comes to public buildings, 

having achieved a six-star rating 

with a design conceived 

by Boogertman & Partners 

Architects. 

Some of the features of DEA's 

building are solar car charging 

stations for electric cars, solar 

panels on the roof, making sure 

(through alignment) that the 

building takes full advantage 

of natural light for lighting and 

heating (and the creation of 

shaded areas) and rain-water 

harvesting. Other noteworthy 

buildings in South Africa include 


gasprimepower 

Cummins Power Generation design and build the solutions 

that meet prime power needs by providing economical and 

clean prime power for various applications such as 

industrial or municipal installations. 

Our energy working for you. 

Contact Cummins South Africa (Pty) Ltd 

Tel: +27 11 321 8700 

www.africa.cummins.com 

© 2009 Cummins Power Generation Inc. All rights reserved. Cummins Power Generation and Cummins 

are registered trademarks of Cummins Inc. “Our energy working for you.” is a trademark of Cummins Power Generation.

OVERVIEW 

The new Department of Environmental Affairs' head office in Pretoria has received a 6-Star Green Star 

SA Office Design v1 certification from the Green Building Council South Africa (GBCSA). 

the Vodafone Site Innovation 

Centre (Gauteng) and the 

No.1 Silo at V&A Waterfront in 

Cape Town. 

Simple ideas such as having 

a heat pump instead of 

a geyser can yield enormous 

savings. Keeping track of the 

amount of energy being used 

is another important (and 

underutilised) tool. Keeping track 

of energy use in a household or 

a company or factory is a vital 

part of energy efficiency. In this 

field, it is indisputably true that 

"If you can't measure it, you can't 

manage it" and good meters (including 

"smart" meters) must become 

part of the solution. 

South African Industrial 

Energy Efficiency Project 

The South African Industrial 

Energy Efficiency Project (IEE) has 

been running for six years and has 

achieved substantial successes. 

The National Cleaner Production 

Centre (NCPC-SA) and the United 

Nations Industrial Development 

Organisation (UNIDO) are the joint 

implementers of the IEE, with the 

NCPC acting on behalf of South Africa's Department of Trade and 

Industry (dti). 

The first five-year phase of the project came to an end in 2015. In that 

time R1.97-billion in energy costs were saved (equal to 2019 gigawatt 

hours and 1.9 tons of CO 2 

emissions). In addition, 435 tons of industrial 

waste was diverted from landfill sites; this number will rise to 234 000 

tons in 2016/17. The sectors focussed on by the IEE were: 

• agri-processing 

• automotive 

• metals and mining 

• chemicals 

Since its inception in 2012, the Recycling and Economic Development 

Initiative of South Africa’s (REDISA) government-backed national Waste 

Tyre Management Plan has diverted more than 125 000 tons of used 

tyres from landfill into new supply chains by subsidising the collection 

and recycling process. The initiative is supporting 190 SMMEs and says it 

has created 2 505 new jobs across South Africa – mainly for individuals 

and small entrepreneurs. 

The e-Waste Association of South Africa (eWASA) was established 

in 2008 to manage the establishment of a sustainable environmentally 

sound e-waste management system for the country. 

E-waste (electronic and electrical waste) includes computers, entertainment 

electronics, mobile phones, household appliances and less 

obvious items such as spent fluorescent tubes, batteries and batteryoperated 

toys that have been discarded by their original users. E-waste 

makes up to 5% to 8% of municipal solid waste in South Africa. 


Energy blog: www.energy.org.za 

Eskom: www.eskom.co.za 

National Department of Energy: www.energy.gov.za 


Environmental 

sustainability in the workplace 

Environmental sustainability in the business world 

involves making decisions that are in the interests of 

protecting the natural world. It is a prominent topic 

at the moment as many people are taking notice of 

the important impact that businesses and individuals 

can have on the environment. 

There are a number of benefits that accompany 

environmental sustainability for businesses. It has 

become an increasingly effective way for establishments 

to differentiate themselves in a competitive 

market. Marketing your business as environmentally 

friendly and selling environmentally sustainable 

services can really help you to expand your 

customer base and capitalise on new opportunities. 

Additional benefits include a reduction in operational 

expenses and increased efficiency and fluidity 

within a balanced business. 

A company implementing this balance, Brother 

Earth meets the needs of its customers for quality, 

innovative print, while being equally committed to 

protecting the environment. 

Embodied in the Brother Earth programme, the 

company’s environmental philosophy is to reduce 

environmental impact and increase efficiency. 

Focus areas include reducing CO 2 

emissions to prevent 

global warming, helping to build a recyclingorientated 

society, managing and reducing the use 

of chemical substances, and working with organisations 

to conserve and restore forests. 

Brother focuses on all stages of in the product 

lifecycle to reduce environmental impact, including 

design and development; procurement; production; 

packaging and distribution; use; collection and 

recycling. 

There are a number of activities that businesses 

can do to increase environmental sustainability. 

These include enhancing eco-conscious design 

processes and green procurement, maintaining a 

continuous reduction in environmental impact at 

manufacturing facilities (such as CO 2 

emissions and 

water consumption), and enhancing the reusability, 

recyclability and collection system. 

The beauty of many environmentally friendly features 

is that they also help to deliver a real cost saving 

to businesses, whether through lower energy bills, 

reduced paper usage or increased toner longevity. 

Implementing energy-saving features during 

production is also key. A standby power consumption 

of approximately 0.04W is Brother's new lowenergy 

standby technology that has fundamentally 

eclipsed the conventional standard of about 0.2W. 

This achievement, which will change the future development 

of power-saving technology, was the 

product of our engineers changing their way of 

thinking. With this technology, we limitlessly approach 

zero watts, the state of being unplugged. 

In terms of "green" certification there are a 

number of quality management standards that 

companies can implement, such as the TCO99 

Accreditation, ISO Certification and the International 

Energy Star Approval. Using Energy Star products 

can make a huge difference in energy usage, as they 

are capable of conserving energy through power 

management and sleep mode, they run cooler and 

last longer and, on average, are 25% more efficient. 

For over two decades, Energy Star has been a driving 

force behind the more widespread use of such 

technological innovations as efficient fluorescent 

lighting, power management systems for office 

equipment, and low standby energy use. 

At Brother, consumables are manufactured to 

exacting, environmentally friendly specifications 

and the company is committed to ISO 9001 and 

ISO 14001 Standards. Only four Japanese and six 

international manufacturing facilities have been 

accredited with the strict environmental ISO 14001 

conservation standards. Brother is the only printer 

manufacturer with the globally recognised benchmark, 

TCO99 Accreditation for excellence in ecology, 

energy, emissions and ergonomics. 

The potential for businesses that are integrating 

environmental sustainability into the planning and 

production systems of their enterprises is immense. 

Good business depends not only on physical and 

financial capital, but on natural resources. Through 

the adoption of key strategies, reaching a balance 

between a financially secure and environmentally 

sustainable business can be achieved.

OVERVIEW 

Water 

Innovative solutions to water scarcity are being pursued. 

South Africa is a water-scarce country and the recent drought 

has served to concentrate the minds of government, the 

private sector and farmers about the need to preserve and 

protect the country's water sources. 

Purification, desalination, water-leakage management and wastewater 

treatment are some of the issues facing South Africans, and 

experienced international companies are showing an interest in 

the country. 

The governments of South Africa and Denmark have a Strategic 

Sector Co-operation, which was signed at the annual Water Institute 

of South Africa (WISA) conference in Durban in May 2016. Denmark is 

a world leader in water management and the themes underpinning 

the agreement are groundwater management, urban water services 

and water efficiency in industries. 

The national Department of Water and Sanitation (DWAS) has said 

that demand for water will outstrip supply in 2018. It has also put a 

figure to what needs to be spent on water infrastructure and demand 

management in the years to 2022 – R573-billion. 

Water boards are responsible for provision of water services to 

urban areas. One of the biggest, Rand Water, will have spent more than 

R17-billion by 2010 in upgrading its infrastructure. The utility reports 

that demand has been growing at nearly 5% every year. 

According to Water Wheel magazine, 37% of water delivered to the 

nation's municipalities is lost. 

Government plans to arrest this trend (which costs the country 

R7-billion every year) include a training programme for plumbers and 

artisans to fix taps in communities. The first group of 3 000 trainees 

was recruited in 2015. 

Among the methods used by the firm WSP to improve water usage 

are water audits and measurers. These strategies have been successfully 

implemented at a reservoir controlled by the City of Cape Town, 

a borehole scheme in the Northern Cape and for private clients like 

Illovo, the large sugar producer in KwaZulu-Natal. 

Innovative thinking has been required to tackle the problem of acid 

mine drainage (AMD). Old mines (whose owners have long gone) pollute 

the water supply, further reducing the amount of available clean 

water. National government has committed to spend R600-million on 

an annual basis on a system that will treat this water. 

In the 1950s, the Orange River Project delivered water from the 


International companies 

are investigating business 

opportunities related to 

South Africa's water-related 

problems. 

Orange River to citrus farmers in 

the far-away Eastern Cape. In a 

mostly dry country such as South 

Africa, this kind of transfer scheme 

is the norm. 

The country has several 

good river systems but they are 

not all ideally situated. So 80% 

of Gauteng Province’s water is 

imported, mostly from the Vaal 

River, which is supplemented 

by complex transfers from the 

Thukela River and the Lesotho 

Highlands Water Project. 

The Vaal basin, which serves 

the most populated and industrialised 

part of the country including 

Johannesburg, receives 

water from seven inter-basin 

transfer schemes. 

Usage has to be reduced 

in all sectors. The mining and 

energy sectors are very thirsty, 

and individual South Africans 

themselves are apparently 

thirstier than the average global 

citizen (consuming 235 litres 

per day per person, compared 

with the global average of 

177 l/d per person). 


Existing systems 

South Africa’s most central province, 

the Free State, is bound on 

all sides by water, the Vaal River to 

the north and west, the Orange 

River to the south and the mountainous, 

river-rich kingdom of 

Lesotho to the east. The Gariep 

Dam on the southern edge of 

the province is South Africa’s 

biggest dam. 

The agricultural sector benefits 

through irrigation from the 

flow of the Vaal River. The Vaal- 

Harts irrigation system is one 

of the most productive in the 

country, covering about 44 000 

hectares with a variety of crops. 

The Vaal Dam and the 

Bloemhof Dam are important 

sources of controlled water from 

the Vaal River. The Vanderkloof 

Dam controls water flow and allows 

for better farming along the 

banks of the river, and the Gariep 

Dam has hydroelectric capacity. 

An inter-basin transfer scheme 

takes 40-million cubic metres per 

annum from the Caledon River 

basin and sends it to the Modder 

River basin for industrial and 

domestic use. 

New schemes 

The Lower Tugela Bulk Water 

Infrastructure Project in Mandini, 

KwaZulu-Natal, involves a 29km 

pipeline that will bring water to 

more than 300 000 people. 

Other recent transfer projects 

include the Western Aqueduct 

project (valued at R864-million) and 

the associated Northern Aqueduct 

Augmentation Project (Durban, 

OVERVIEW 

Umgeni Water), and the Mokolo Crocodile Augmentation Project, which 

is designed to supply water to Medupi, the new power station at Lephalale 

in Limpopo Province. A pump station and a 45km pipeline between the 

site of the power station and the Mokolo Dam is being built by the Trans- 

Caledon Tunnel Authority (TCTA). 

The TCTA has also overseen progress on the Komati Water 

Supply Augmentation Project, the raising of the wall of the 

Clanwilliam Dam and the Groot Letaba River Water Development 

Project. The Mooi-Mgeni Transfer Scheme has increased water 

supply to communities in KwaZulu-Natal. The Eastern Cape’s 

R20-billion Umzimvubu Dam project will provide much-needed water 

and hydroelectric power. 

The latest mega-project is the Olifants River Water Resources 

Development Project (ORWRDP). This includes the recently completed 

De Hoop Dam. 

Improving quality 

The introduction by the National Department of Water and Sanitation 

and the Water Institute of South Africa (WISA) of the Blue and Green Drop 

Awards has been very successful. The nation’s municipalities receive scores 

reflecting how well they are doing in terms of providing clean water. 

Many municipalities use water boards such as Umgeni 

Water, Rand Water or Sedibeng Water. The DWAS has allocated 

R4.3-billion to helping municipalities deliver water. The Interim Water 

Supply Programme will concentrate on 23 district municipalities. 

The Rhodes University Institute for Water Research is one of several 

institutions in the country that conducts research into water quality. 

The Water Institute of South Africa has 1 800 members. It does 

research, keeps its members up-to-date and runs conferences. As in 

most areas of life in South Africa, environmental standards are set and 

maintained by the South African Bureau of Standards (SABS). 

The Water Chemistry Laboratory of the Council for Scientific and 

Industrial Research (CSIR) tests water samples according to the relevant 

SANS. Water storage is becoming an increasingly important issue in 

South Africa, with many private homes and businesses investing in 

water tanks. The Nedbank Group is investing R9-million in the Water 

Balance Programme, designed to upgrade the functioning of watercatchment 

areas. 


National Department of Water and Sanitation: www.dwa.gov.za 

South Africa Water Research Commission: www.wrc.org.za 

Water Institute of Southern Africa: www.wisa.org.za 

67 


INTERVIEW 

Ambitious growth 

underpinned by a 

positive outlook 

Premium water reservoir supplier, SBS Tanks, 

is strategic about its intentions to grow its local 

and international business. 

Martin Barnard, Sales and 

Marketing Manager, SBS 

Tanks. 

BIOGRAPHY 

SBS Tanks Sales and Marketing 

Manager, Martin Barnard, 

describes himself as a “homegrown 

Free State boy” who has 

enjoyed the privilege of a global 

career. Martin has an MBA 

from Oxford Brooks University 

in the UK and prior to joining 

SBS Tanks he was, for many 

years, employed by Shell – most 

notably as a Marketing Manager 

for Shell in Africa. 

Please provide an overview of the company and your 

main products. 

Founded in 1998, SBS Tanks is a manufacturer and supplier of premium 

water tanks. The company, which operates from a 2 500m 2 facility in 

Pinetown, Durban, supplies both the local and export markets. 

We introduced Zincalume® tanks to the South African market and 

manufacture SBS Tanks® – a premium range of liquid storage solutions 

for multiple applications. 

Where do you see the company in the next five to 

seven years? 

As the premium water reservoir supplier, we will continue to entrench 

ourselves in the South African market in the medium term. Ideally, we 

would like to expand our product offering through collaborating with 

other companies in a similar space and through the already strong 

partnerships we have with service providers. We are open to turnkey 

solutions or amalgamated offers. 

While the broader African market is definitely on the radar, we are 

being intentional about transforming the company into an international 

player. In support of this, we have opened a branch in the US 

and our products, as well as our specialist knowledge, is already being 

shipped there. 

In recognition of our growth in international trade we have recently 

been awarded the KwaZulu-Natal Exporter of the Year award in the medium 

category. We are particularly proud of the achievement considering 

that two years ago, we won the award in the small business category 

and previously, we were finalists in the emerging business category. 

We were deliberate in obtaining ISO 9001 accreditation because it 

enables our commitment to quality. We want to build on the fact that, 

in addition to fully complying with national standards, we also meet 

a number of international standards, which improves our chances of 

becoming a competitive international player. 


68

INTERVIEW 

Have you introduced any new technology 

or innovations recently? 

We have improved the liner in our tanks, as this 

is a very important component of our products. 

The liner now conforms to the highest relevant 

standards and is comparable to the best available 

internationally. The fact that we own our liner manufacturing 

facility means that we are able to monitor 

quality closely. 

Another important innovation means that our 

premium tanks are now able to withstand cyclonic 

wind conditions, which is particularly relevant in our 

export market. 

What are the key markets for your 

products? 

In South Africa, we target five key markets: the mining 

sector; tanks for fire protection (these are tanks 

required for insurance purposes and positioned 

outside commercial buildings and as we meet ASIB 

specifications, we are very competitive in this market); 

municipal (this will be a very important sector 

for us going forward as access to clean drinking 

water is a basic human right and constituents are 

demanding this from government); water conservation 

(for example, rainwater harvesting) and the food 

and beverage processing sector. 

Internationally, our ambition is to identify local 

distributors in the countries in which we operate 

and to develop local expertise when it comes to the 

installation of our tanks. We have started a distributor 

development programme in specific markets. In 

terms of the target markets or market segments, these 

vary from country to country, depending on the key 

industries in each. 

What are some of the challenges you 

anticipate in meeting your goals? 

It can be difficult to find civil contractors who 

have the skills required to undertake our work. We 

prefer to identify up-and-coming contractors and 

train them to partner with us in tank installation. A 

number of skilled people have left the employ of 

municipalities and so we offer project management 

services to our municipal clients. Instead of just selling 

them tanks, we manage the entire process and 

this gives us an opportunity to identify local contractors 

to assist in tank installation, but they need to be 

willing to undergo training to ensure they are able 

to meet our exacting standards. 

Do you have a message for readers 

regarding water scarcity in South Africa? 

The looming water crisis is not the same as the electricity 

crisis that South Africans experienced a few 

years ago. In the case of power interruptions, people 

have the option of purchasing a generator, but water 

cannot be generated. As South Africans we need to 

understand that even if it does rain more, the crisis 

won’t disappear. 

Large commercial operations need to prepare 

for water shortages and should make contingency 

plans. This is particularly important for clients in the 

food and beverage industry – as an example, it is 

69 


INTERVIEW 

impossible to make beer without 

water! Customers who had purchased 

our storage tanks didn’t 

experience any loss in production 

during the water shortages that 

have affected some areas of the 

country recently. 

We are very mindful of the 

problems relating to water scarcity 

and in early 2016, SBS Tanks 

donated water tanks valued at 

R700 000 to two Free State 

communities badly affected by 

drought. This demonstrates the 

company’s overall commitment 

to drought relief efforts. 

And a more general sentiment 

that you would like 

to convey? 

SBS Tanks is a proudly South 

African company, and by that I 

mean that we choose not to believe 

the “naysayers”, preferring 

to retain faith in the country and 

its people. 

I too used to be fairly negative 

about the prospects for 

South Africa. In 2000 I emigrated 

to the UK and, at the time, I was 

convinced that would be a permanent 

move. However, after 

being seconded back to Africa, I 

realised that I needed to make a 

difference by contributing to positive 

change and that is one of the 

factors that affected my decision 

to join SBS Tanks. We encourage 

other small and medium South 

African companies to remain committed 

to operating here and to 

contribute to the economic future 

of the country. 


70

Businesses benefit from 

backup process water 

FOCUS 

SBS Tanks has some timely advice for businesses that require large 

quantities of water for operational efficiency. 

Almost every industry benefits from backup process water 

for business – whether that business lies in manufacturing, 

healthcare, education, tourism or retail. Water is used 

throughout various stages of business, in product use, the 

supply chain and manufacturing. A lack of access to water can be a 

major challenge for any business’ growth. 

Consistent access to water is therefore essential to ensure that operations 

can continue to run smoothly, but in countries such as South 

Africa, which frequently face periods of drought, water shortages 

and other related issues, this is not always as easy as it sounds. Water 

infrastructure may be damaged or neglected within local municipalities. 

Water supply in certain areas may be rationed and industries that 

require large volumes of water at all times may pay the price. 

As serious as water interruptions are for businesses, the good news 

is that a contingency plan can go a long way in ensuring that your 

premises always have access to water – even in the event of a countrywide 

drought. 

How to prepare your business for a water emergency 

The first step in preparing for a water emergency is to ask the 

following questions: 

• How long could your business effectively operate with restricted 

water, or a complete water shortage? 

• Do you currently have any plan to reduce disruption to your 

business if your regular water supply was interrupted? 

• Is there an emergency shut-down process that applies to water 

supply emergencies, and are employees trained to act accordingly? 

• Is there any crisis management team or process in place to deal 

with stakeholders and make critical decisions in the event of a 

water disaster? 

SBS Tanks has compiled a comprehensive guide – “Backup Process 

Water Supply Planning for Business & Industry”. This guide includes 

step-by-step recommendations on how to create a backup water 

plan, and shows you how to put together a water-usage assessment 

that will help you prepare for 

water outages. 

One of the best ways to ensure 

that your company will always be 

prepared for any water interruption 

is to consider a backup water 

system for your premises. 

Backup water tanks for commercial 

use are designed to provide 

access to water at all times, 

even in the event of a water outage. 

If the municipal water supply 

is cut off, the backup tank will 

continue to provide water with no 

noticeable impact on water flow. 

Once the water supply resumes, 

the tank will refill again. 

In this way, you will have peace 

of mind in knowing that water 

interruptions will not cause operational 

interruptions. Systems 

can be integrated within existing 

rainwater harvesting tanks or 

used for dedicated backup tanks. 

Ideally, you will need a tank large 

enough to store two to three days 

of reserve water. 

Whatever your industry, taking 

the time to invest in essential 

contingency steps is the best way 

to get full peace of mind. 

For assistance in doing this 

visit www.sbstanks.co.za or 

contact 086 048 2657. 

71 


FOCUS 

Advantages of commercial 

rainwater harvesting 

In a country that is prone to drought and water shortages, 

SBS Tanks is promoting the value of commercial rainwater harvesting. 

With the rise in green, sustainable building technology, 

property developers all over the country are turning to 

solutions that help to save resources. 

Rainwater tanks are common in the residential 

sector, but are now becoming popular in commercial developments. 

Schools, factories, hotels, mining corporations, municipal buildings, 

office parks, shopping centres and many other industries can benefit 

from a large-scale tank. 

Five reasons to consider commercial 

rainwater harvesting 

Much as residential water tanks help homeowners save money and 

water, commercial rainwater tanks are designed to save water on a 

large scale. Rainwater is collected and stored in heavy-duty bolted 

steel tanks that are coated in Zincalume, which ensures that tanks 

are resistant to corrosion and able to withstand virtually any climate 

and condition. Tanks for commercial rainwater range in size from 12kl 

to 3 300kl, and, as they are modular in design, they can be relocated 

should the need arise. 

Some of the most significant benefits of commercial rainwater 

harvesting include the following: 

• Savings on water costs: From a municipal rates perspective, 

a water tank can reduce water costs notably. For industries 

that typically require a large amount of non-potable water for 

manufacturing or operation, these savings are especially high. 

• Clean, safe, soft water: Rainwater is free of chemicals, and in some 

cases, it is safe and clean enough to be used for drinking water. 

It makes excellent "grey" water to use for fleet washing, toilets 

and showers. Grounds and gardens also benefit from rainwater. 

• Reduces run-off: In high-rainfall areas particularly, run-off from 

gutters and downpipes can wreak havoc on soil, causing erosion 

and increasing the risk of damp and flooding. Tanks are designed 

to integrate within the current 

roofing and gutter structure, 

but can be relocated as needed. 

Once drainage paths have 

been identified, tanks can be 

placed strategically to capture 

run-off. 

• Reduces stress on public 

water supply: Public water is 

used for a variety of purposes, 

including plumbing, drinking 

water supply, reservoirs for 

fire control, maintenance for 

public spaces and numerous 

other purposes. By collecting 

and using rainwater, businesses 

can help lower the risk of 

water shortages in the event 

of drought and restrictions. 

• Increases sustainability: 

Rainwater is a free commodity 

that can be utilised in a wide 

range of applications without 

putting further strain on 

diminishing supplies. 

As a specialist in high-quality 

Zincalume tanks, SBS Tanks can assist 

with a wide range of commercial 

rainwater harvesting tanks. 

Contact us to discuss your 

tank requirements. Call us on 

086 048 2657 or visit us at 

www.sbstanks.co.za 


72

Engineering 

Transnet Engineering is targeting international orders. 

OVERVIEW 

South Africa has several vertically integrated engineering and 

consulting companies that offer a wide range of services and 

are active internationally. All of the biggest construction companies 

(including Murray & Roberts, WBHO and Group Five) 

are multi-disciplinary companies and they are active in several sectors. 

Concerns about delays in the implementation of national government’s 

ambitious infrastructure plans have persuaded several companies 

to load their order books in favour of international projects. 

Aveng has cut its reliance on South African projects to 37% as 

opposed to 56% in 2015. Aveng, South Africa's largest construction 

company, will increase its profile in Asia and Australia. The downturn in 

the South African mining and manufacturing sectors is another factor 

that has dampened growth in engineering. 

However, Murray & Roberts (which now operates in oil and gas, 

power and water, construction, underground mining and infrastructure) 

still managed to bring in revenue – from operations on five continents 

– of R30.6-billion in 2015. At home, the company was involved in 

the Gautrain project and is delivering the boilers to the power stations 

at Medupi and Kusile for Hitachi Power Africa. 

Some elements of the national infrastructure plan are moving 

faster than others. Renewable energy is a massive new sector for engineers, 

and construction companies are busy building solar and wind 

power infrastructure in many parts of the country. Housing (such as 

Basil Read's R1.8-billion housing project north-west of Johannesburg, 

Malibongwe Ridge) continues to be a national priority, and several 

new dams are being built. 

Transnet Engineering (TE) wants to cut its reliance on other divisions 

of Transnet. At the moment, just more than 10% of orders come 


Engineering Council of South Africa: www.ecsa.co.za 

South African Association of Consulting Engineers: www.saace.co.za 

Steel and Engineering Industries Federation of South Africa: 

www.seifsa.co.za 

Transnet Engineering: www.transnetengineering.net 


Prominent South African 

engineering and construction 

companies are 

increasingly focusing 

on international projects. 

from outside the group – the aim 

is to grow that to 40%. A locally 

designed and developed locomotive, 

the Trans-Africa Locomotive, 

is symbolic of this thinking: some 

R300-million went into research 

and development of this unit, 

which, it is hoped, will sell well in 

other parts of Africa. TE wants to 

become an original equipment 

manufacturer (OEM) of wagons, 

coaches and locomotives. It also 

hopes to offer its services in Africa 

for maintenance, repair and overhaul 

(MRO). TE’s new business unit, 

Port Equipment Maintenance, is 

another signal of the company’s 

wider focus. There are 13 000 TE 

employees at 132 depots and six 

factories around South Africa. 


OVERVIEW 

Manufacturing 

Several state programmes are promoting manufacturing. 

The manufacturing sector accounts for approximately 15% of 

Gross Domestic Product (GDP). The sector employs the thirdhighest 

number of people, about 1.7-million, after financial 

services and retail. Three of South Africa’s most important 

manufacturing sectors (automotive, food and beverages and chemicals) 

are dealt with in separate sections of this publication. 

The Department of Trade and Industry (dti) is the state's lead 

promoter of the sector, with initiatives such as the Competitiveness 

Enhancement Programme, which targets medium-sized manufacturers 

and includes a cost-sharing grant of between 30% and 50% for 

investments up to R50-million and up to 80% on specific projects. 

The main vehicle for the dti has been its Industrial Policy Action 

Plan (IPAP), the seventh version of which was launched in 2016. The 

most recent focus is science and technology and the promotion of 

local manufacture for designated products in aspects of the construction 

sector (pipes and vehicles) and the energy sector (power lines). 

The Support Programme for Industrial Innovation (SPII), run by 

the Industrial Development Corporation (IDC) on behalf of the dti, 

promotes technology development in South African industry. SPII 

comprises three programmes: the Product Process Development, 

Matching schemes and Partnership schemes. The type of funding 

made available depends on the project size. 

Another IDC initiative has allocated R23-billion over three years to 

support the Black Industrialist Programme to help existing entrepreneurs 

grow their businesses to significant scale. 

Part of the drive to improve South Africa's rail infrastructure involves 

getting South African companies to manufacture rolling stock. The 

Passenger Rail Agency of South Africa (PRASA) in 2013 signed local 

consortium Gibela (including Alstom) to deliver 600 passenger 

trains. The R51-billion contract will be supported by a new factory in 

Ekurhuleni and Gibela has pledged to put a lot of business the way 

of local companies. 

In sourcing the 1 064 new diesel and electric locomotives that 

it wants to spruce up its services, Transnet Freight Rail has split the 

contract across four suppliers, including General Electric South 

Africa Technologies, CNR Rolling Stock South Africa and Bombardier 

Transportation South Africa. 


The seventh version of the 

dti's Industrial Policy Action 

Plan was launched in 2016. 

Growth in the manufacturing 

sector since 1994 has been led by 

the automotive sector, followed 

by resource-based manufacturing 

(Quantec). The latter sector 

includes steel, aluminium, petrochemicals, 

paper and pulp and 

non-metallic minerals. 

The forest product export 

sector in South Africa is made 

up of paper (45.2%), solid wood 

(23.3%) and pulp (28.9%). Imports, 

weighted towards paper products, 

cost the country R9.8-billion 

annually, clearly indicating scope 

for increased domestic production. 

The pulp and paper sector 

makes a direct contribution to 

South Africa’s balance of payments 

of R4.5-billion. The country’s 

largest hardboard plant is 

at Estcourt and South Africa’s 

only woodchip export plants are 

located at Richards Bay. 

Among other important sectors 

are metals beneficiation 

(more than 50% of the world’s 

ferrochrome is produced in South 

Africa), coke and refined petroleum 

products and information and 


OVERVIEW 

communication technology. Steel and petroleum collectively make up 

about 45% of South Africa’s total manufacturing production capacity. 

April, May and June 2016 were hopeful months in South African 

manufacturing – production went up in all three. Stable electricity 

supplies and the relatively weaker rand (which helped to drive exports) 

helped. 

Steel has been experiencing a volatile few years, with reduced 

demand from China severely reducing production volumes in South 

Africa. Mpumalanga producer Evraz Highveld Steel and Vanadium 

applied for business rescue in 2015 and independent producer 

Cisco closed. The country's biggest steel producer, ArcelorMittal SA 

(AMSA), was fined R1.5-billion in 2016 by the Competition Commission. 

However, China will no longer enjoy subsidies in selling steel into 

South Africa and AMSA has well-resourced plants in three provinces so 

analysts are predicting a recovery, which may include a joint purchase 

of Evraz Highveld (with the IDC). 

New technology has been embraced by some innovative manufacturers. 

Desert Wolf's Skunk Riot Control Chopper is one of the 

unmanned light aerial vehicles (UAV) that has proved popular in the 

world market. Drones have been very much in the news because the 

US military has been using them in its operations in the Middle East. 

South Africa's Denel makes a drone product that can be adapted for 

use by conservationists. 

Clothing and textiles 

There has been a recovery in this subsector, greatly helped by an injection 

of R7-billion from the state in various forms since 2009. There 

are just over 90 000 workers employed in the sector, which means 

numbers are increasing very slightly after a big dip several years ago 

when the sector suffered from cheap imports. 

Support from the dti has allowed manufacturers to invest in new 

equipment. Cotton Traders received an injection of capital from the 

dti that enabled it to buy new equipment and expand. This led to 200 

new jobs being created. 

The Textile and Clothing Unit within the Industrial Development 

Corporation (IDC) has been very active in supporting companies 

that need help, either to get over a tough period or to expand or to 

invest in new equipment in order to make new lines. Canvas and Tent 

Manufacturing (Pty) Ltd has more 

than 400 employees in Ladysmith 

and won Exporter of the Year in 

2014/15. 

KwaZulu-Natal is home to 219 

clothing companies (Coface). 

Ninian & Lester is one of the larger 

employers in the textile sector, 

with 1 500 people making clothing 

(including the Jockey brand), 

textiles and polypropylene. 

The footwear sector is showing 

good recovery after taking a 

battering from Chinese imports. 

Two international safety footwear 

firms operate out of Pinetown: 

Bata Industrial and Beier. The latter 

company joined forces with 

three other South African safety 

footwear manufacturers in 2014 

to form the BBF Safety Group, 

making them more competitive. 

K-Way, which supplies Cape 

Union Mart, is a very successful 

outdoor clothing manufacturer 

with a factory in Cape Town. 

Gelvenor Textiles specialises in 

fabric suitable for military uses. 

Hanes Brands makes underwear 

in Durban and wants to double 

its output by 2020. 

The furniture sector is not 

growing but there are about 

2 200 companies in the country, 

employing more than 

26 400 workers (contributing 1% 

of manufacturing GDP and 1.1% of 

manufacturing employment). 


Industrial Development Corporation: www.idc.co.za 

Manufacturing Circle: www.manufacturingcircle.co.za 

Support Programme for Industrial Innovation: www.spii.co.za 


OVERVIEW 

Chemicals and pharmaceuticals 

Both sectors are attracting internal and foreign investment. 

South Africa's chemical industry contributes 5% to national 

gross domestic product (GDP) and about 60% of its earnings 

are derived from exports. 

The complexes run by Sasol at Secunda, in Mpumalanga, 

and Sasolburg, in the Free State, underpin the national manufacturing 

capacity in chemicals. Sasol makes a range of products for fertilisers, 

explosives and polymers. Nearly 60% of Sasol's earnings come from 

chemicals, amounting to a turnover of R105-billion in 2015. 

Sasol Chemical Industries makes about 60% of South Africa’s polypropylene. 

Safripol, which is also based in Sasolburg, is South Africa’s only other 

producer. More than half of Sasol’s production of 625 000 tons is exported. 

Omnia and Kynoch (fertiliser), Karbochem (rubber and carbochemicals), 

Safripol (plastics) and Afrox are among the other major companies 

operating out of Sasolburg. Kynoch makes fertiliser in Middelburg 

and Schoeman Estates has a plant in Marble Hall. Middelburg-based 

Solchem Industrial and Mining Chemicals specialises in degreasers for 

mining and industrial applications. 

The by-products of the sugar and forestry processing plants of 

KwaZulu-Natal benefit the chemicals sector. Illovo Sugar manufactures 

downstream products such as furfural, furfuryl alcohol, diacetyl and 

ethyl alcohol. 

AECI is one of South Africa’s biggest groups in the sector. The two 

principal divisions are AEL Mining Services (with a large factory site at 

Modderfontein near Johannesburg) and Chemical Services, which have 

20 separate companies. 

Foskor is the country’s only vertically integrated phosphates producer. 

It has a mining operation in Limpopo Province (at Phalaborwa) from which 

it sends raw materials to its acids division in Richards Bay in KwaZulu-Natal. 

Sulphuric acid, phosphoric acid and phosphate-based granular fertilisers 

are manufactured there. 

The Chemical and Allied Industries Association (CAIA) has 162 member 

companies. 


Chemical and Allied Industries’ Association: www.caia.co.za 

Chemical industry information portal: www.chemissa.co.za 

National Association of Pharmaceutical Manufacturers: 

www.napm.org.za 


There are more than 200 

pharmaceutical companies 


Pharmaceuticals 

Pharmaceuticals are manufactured 

primarily in Gauteng and 

the Eastern Cape. Although there 

are more than 200 pharmaceutical 

firms in the country, large companies 

dominate the field. In 2016, 

Aspen had a market capitalisation 

of R160-billion and Adcock Ingram, 

R7.6-billion. Ascendis, which was 

established in 2008 and now has 

a market cap of R6.9-billion, has 

been busily acquiring companies, 

such as a generic manufacturer 

based in Cyprus, and building 

up its portfolio in the sector. 

Cipla Medpro is another large 

company. 

The local industry was valued 

at R39.7-billion in 2013 and 

contributed 1.1% to national GDP 

(dti). The sector employs nearly 

10 000 people. South Africa has 

the world's largest anti-retroviral 

programme, which provides for 

more than three-million patients. 

Aspen SA produces about 

10-billion tablets per year at its 

Port Elizabeth facility. The company 

has another factory in Gauteng 

and successful operations in 

South America and Australia. 


Food and beverages 

Food and drink account for a quarter of all manufacturing. 

OVERVIEW 


FoodBev SETA: www.foodbev.co.za 

National Chamber of Milling: www.grainmilling.org.za 


Food and beverages account 

for a significant share of the 

country's manufacturing 

sector. 

The global trend towards healthier eating habits and being 

aware of the source of foods has come to South Africa. This 

means growth in sales of organic produce, but legislation 

is also part of the new equation. A proposal in 2016 to introduce 

a sugar tax on beverages has created a lot of debate. Even 

if a tax is not introduced, there is no doubt that the trend towards 

healthier food (and better labelling) is here to stay. 

Starbucks thinks the South African market is worth investing in. 

When the American coffee giant, in partnership with Taste Holdings, 

opened its first shop in Johannesburg in April 2016, customers queued 

through the night. Coffee shops are hugely popular in South Africa. 

The food and beverage sector is responsible for 24.4% of total 

manufacturing production and employs 230 000 people. Beverages 

account for just over 4% of all manufacturing sales while food is 

responsible for 13.5%. Within the sector, beverages account for 24% 

of sales. One quarter of the 37% of national GDP that is generated 

by agri-industries derives from agri-processing. 

Gauteng, the Western Cape and KwaZulu-Natal are the leading 

provinces with respect to food and beverages manufacturing. About 

half of the companies operating in the sector are in Gauteng. 

Unilever received a tax incentive in 2015 under the Department 

of Trade and Industry's 12-I Tax Allowance Incentive scheme for its 

new ice-cream factory in Midrand, Gauteng. This is Unilever's fourth 

plant in South Africa, following its investment in a savoury foods 

plant in 2011. 

RCL Foods, formerly Rainbow Chickens, has lately been on an 

aggressive run of acquisitions. Despite the large number of extra 

chickens available to the South African consumer (as above) and 

the persistent drought, RCL managed to increase revenue in the 

12 months to June 2016 by 6.8%, to R25-billion. The groceries and 

logistics divisions performed best but RCL is reconsidering its business 

model with a thought to 

producing fewer frozen chickens 

and doing more in the fast-food 

sector. 

South Africa has mature fast 

food and family restaurant franchise 

sectors, ranging from indigenous 

brands Spur and Nando’s 

to international giants such as 

KFC, McDonald’s and recent 

arrival Burger King. 

Nando’s, the Portuguesechicken 

chain, has done extremely 

well internationally and 

is proving to be something of a 

phenomenon in Britain. Wimpy 

is the second-largest franchise 

operation in South Africa 

(after KFC). 

Frost & Sullivan values the 

South African retail chocolate 

market at R5-billion with an 

expected growth rate of 10% 

per year for the next five years. 

Cadbury, Nestlé and Beacon 

account for 85% of sales. 

77 


OVERVIEW 

Automotive 

Car makers exported a record number of cars in 2015. 


A joint venture between BAIC 

and the IDC will see Chinese 

vehicles manufactured at 

Coega IDZ. 

Automotive and automotive components make up one of the 

most important parts of the South African manufacturing sector: 

30.2% of total manufacturing output, about 7% of the nation's 

Gross Domestic Product (GDP) and they are responsible for a 

significant proportion of exports. 

In 2014, South Africa exported 276 404 vehicles and in 2015 a new 

record was achieved – 338 802. The total value of this (together with 

automotive parts exported) amounted to R151-billion. Total production 

in South Africa in 2016 was expected to reach 640 000 units. 

South Africa’s most important automotive trading partners are the EU, 

North American and certain African countries. Total South African vehicle 

and component exports to 148 countries in 2014 were worth R115.7-billion. 

Automotive manufacturing takes place in three provinces: Gauteng 

(Nissan-Renault, BMW and Ford); KwaZulu-Natal (Toyota, Bell Equipment) 

and the Eastern Cape (Volkswagen, Mercedes-Benz, General Motors and 

Ford engines). In May 2015, Mercedes-Benz SA produced its one-millionth 

passenger car. The East London plant, which regularly wins awards for 

quality, is producing the W205 C-Class car. 

National government (through the Department of Trade and Industry, 

dti) has had a plan in place since 2013 to encourage investment in the sector, 

the Automotive Production Development Programme (APDP). It is estimated 

that the scheme has attracted about 

R50-billion through incentives. 

The latest foreign investment, 

and one of the biggest, will see 

Beijing Automobile International 

Corporation (BAIC) take a 65% stake 

in a multi-billion-rand joint venture 

with the Industrial Development 

Corporation at the Coega Industrial 

Development Zone outside Port 

Elizabeth. BAIC is a Chinese stateowned 

enterprise with several 

brands. The intention is to start production 

on the 85 000m² site in 2018 

and the target is annual production 

of 100 000 cars, bakkies and sports 

utility vehicles. About 2 500 jobs 

are expected to be created in the 

longer term. 

This follows the arrival of 

Chinese automotive manufacturer 

First Automotive Works 

(FAW), which has established a 

R600-million assembly plant in 

Zone 2 at Coega. The Coega IDZ 

is run by the Coega Development 

Corporation. 

Companies like BAIC and FAW 

may well be positioning themselves 

to push into Africa, not only 


OVERVIEW 

for selling vehicles but for sending 

automotive parts and partlyassembled 

kits further north. A 

new pan-African organisation has 

been established to promote the 

auto industry on the continent, the 

African Association of Automotive 

Manufacturers (AAAM). 

Recent announcements of increased 

investments by existing 

Original Equipment Manufacturers 

(OEM) in South Africa include: 

• The Volkswagen Group South 

Africa, R4.5-billion rand, new 

lines of production 

• Ford South Africa, R2.4-billion, 

Everest sports utility vehicles 

• BMW, R6-billion, conversion to 

production of X3 model 

The industry association, NAAMSA, 

pegged the total expenditure 

within the industry in 2015 at 

R6.6-billion and projected a 

R1-billion increase for 2016. South 

Africa produces a small number of 

cars relative to world production 

(about 91-million in 2015) but considering 

that South Africa's share 

of global GDP is about 0.46%, a 

figure of 0.68% of cars produced is 

quite impressive. 

Automotive components 

South Africa has a sophisticated 

automotive component sector, 

with the producers of catalytic 

converters doing particularly well 

in the international market. From a 

start-up industry in the mid-1990s, 

the sector now supplies 14% of the 

world market and is worth at least 

R18-billion. 

Catalytic converters convert 

bad gases coming out of exhausts 

into less harmful gas. The 

converter uses platinum group metals (PGMs), of which South Africa has 

about three-quarters of the world's reserves. 

Tyre and glass manufacturers are clustered around the areas where the 

automotive industry is active. Sumitomo Rubber South Africa, which includes 

Dunlop among its brands, is spending R2-billion on expanding production 

in Ladysmith, KwaZulu-Natal. Bridgestone Tyres has plants in Port Elizabeth 

and Brits and Continental makes tyres in Port Elizabeth. 

The large number of vehicle models produced in South Africa is a complicating 

factor for the components sector: low volumes often mean high 

prices. Two Port Elizabeth companies export significant portions of their 

production to overcome this: Schaeffler SA exports to its international 

parent so that it can achieve higher volumes. Shatterprufe supplies the 

majority of windscreens to the South African market but there are 12 model 

ranges to serve. 

The provincial government of the North West and the Automotive 

Industry Development Centre (AIDC) combined to help wire harness manufacturer 

Pasdec Automotive Technologies open a new assembly line in 

Brits. Other big companies in the North West are Bosch, Bridgestone and 

Giflo Engineering. 

In Gauteng, the AIDC teamed up with government agencies, Ford and 

Nissan to establish incubation parks to encourage more black businesses 

to enter the sector. Automotive parts made in South Africa are exported to 

more than 70 countries including Japan, Australia, the United Kingdom, the 

United States, Algeria, Zimbabwe and Nigeria. 

The Automotive Incubation Centre based at the Nissan plant in the 

Tshwane suburb of Rosslyn aims to boost small and medium sized enterprises 

that can supply components to Nissan South Africa’s production line. 

Training will also be provided. 

Only 35% of the components and parts used to make vehicles in South 

Africa are produced locally; the balance is imported. Gauteng’s car-makers 

spend nearly R8-billion a year on imports of automotive parts, components 

and accessories. 

To tackle this, the first Automotive Incubation Centre was launched in 

2011 at Ford Motor Company of Southern Africa’s manufacturing plant in 

Silverton, as well as in Tshwane. 

The incubation centre was established by the AIDC, a subsidiary of the 

Gauteng Growth and Development Agency (GGDA), which is a unit of the 

Gauteng Department of Economic Development. 


Automotive Industry Export Council: www.aiec.co.za 

Automotive Industry Development Centre: www.aidc.co.za 

National Association of Automotive Component and Allied 

Manufacturers: www.naacam.co.za 

National Association of Automobile Manufacturers of South 

Africa: www.naamsa.co.za 

79 


OVERVIEW 

Transport 

South Africa's port and rail infrastructure is being upgraded. 

South Africa has a sophisticated and well regulated transport 

network, with a mix of state-owned enterprises (SOEs), 

large private firms and small enterprises providing a range 

of services. 

The South African Department of Transport has several agencies and 

businesses reporting to it: Air Traffic and Navigation Services, Airports 

Company South Africa (ACSA), National Transport Information System, 

Road Accident Fund, South African Civil Aviation Authority, South 

African Maritime Safety Authority (SAMSA), South African National 

Roads Agency Limited (SANRAL) and the Passenger Rail Agency of 

South Africa (PRASA). 

Almost 90% of freight is transported by road and the logistics sector 

is very reliable. However, these volumes are not good for the condition 

of the country's roads and SOE Transnet is working hard to attract more 

business to the rail network. 

Transnet Freight Rail (TFR) has, for example, put 28 new electric 

locomotives on the line, supporting steel producer ArcelorMittal in 

order to improve service. Transnet is also undertaking a very ambitious 

upgrade of its infrastructure and equipment, which should 

put it in a better position to pitch for freight business. More than a 


Almost 90% of South 

Africa's freight is transported 

by road. 

thousand new locomotives have 

been ordered from four different 

manufacturers. 

South Africa has 21 000km of 

railway lines, 747 000km of roads 

and 566 airports and airstrips 

(Made in SA). South Africa has 

325 019 heavy-load vehicles and 

the road freight industry employs 

65 000 drivers. 

Significant investments in 

improved infrastructure are being 

made at all of South Africa's 


OVERVIEW 

ports, partly with a view to improving 

turn-around times for 

loading and off-loading containers. 

Special Economic Zones (including 

Industrial Development 

Zones (IDZs) are either in place 

or being developed at several 

sites alongside harbours from 

Saldanha on the West Coast 

to Richards Bay in northern 

KwaZulu-Natal. 

Many South African cities 

are trying to improve public 

transport and local bus body 

manufacturers have delivered 

740 buses to the City of Cape 

Town (Busmark 2000 and Volvo 

SA), 134 new buses to add to 

Johannesburg's Rea Vaya system 

(Mercedes-Benz SA) and 80 

commuter buses for Great North 

Transport of Limpopo (MAN). 

The Maputo Development 

Corridor is Africa’s most advanced 

spatial development 

initiative. Run by the Maputo 

Development Corridor Logistics 

Initiative (MCLI), the corridor runs 

from near Pretoria in Gauteng to 

Maputo in Mozambique. 

The Harrismith Logistics Hub 

(HLH) on the N3 is an inland port 

that can handle cargo containers 

and shift cargo from road to rail, 

reducing congestion and costs. 

Rail 

There are private rail operators in 

the mining industry (Sheltam and 

Railroad Logistics Grindrod operate 

in the gold-producing areas 

of the Free State and Gauteng) 

and in the tourism sector (Rovos 

Rail is a popular luxury rail touring 

company) but the sector is 

dominated by the Transnet Group, which is responsible for the railway 

lines and has most of the country's rolling stock. It has a number of 

divisions such as Transnet Engineering and Transnet Freight Rail. 

Transnet is pursuing a Market Demand Strategy (MDS), which 

aims to create customers outside the group. So instead of Transnet 

Wagons selling only to Transnet Freight Rail, it wants to create new 

markets for its wagons elsewhere in Africa and beyond. It intends 

spending more than R300-billion over five years to realise the MDS. 

The major rail haulage lines are the manganese line from the 

Northern Cape to Port Elizabeth; from Sishen in the Northern 

Cape to the Port of Saldanha (iron ore); and from the coalfields of 

Mpumalanga to Richards Bay. More than 55-million tons are regularly 

transported along the former and upwards of 70-million tons 

can travel annually along the latter. A new line to carry coal from 

the inland to the coast through Swaziland is being investigated. 

This has the potential to add 30-million tons to the amount of coal 

transported to the coast. 

Grain tonnages carried by Transnet Freight Rail (TFR) will almost 

double in the years leading up to 2019. The assets of TFR’s new 

Container and Automotive Business (CAB) unit have been ringfenced. 

The CAB has been created because of the importance of 

the Johannesburg-Durban line. 

Transnet Freight Rail intends to increase the amount of freight it 

carries from 200-million tons to 300-million tons. 

The Passenger Rail Agency of South Africa (PRASA) oversees 

a passenger rail network of 22 300km. The agency is spending 

R51-billion on upgrading its trains, which provide passenger services 

through Metrorail. The agency employs 16 500 people and its assets 

(including bus companies such as TransLux and City to City, along 

with a property division) are valued at R36-billion. 

A new factory is under construction in Ekurhuleni that is budgeted 

to cost R1-billion: the Gibela Rail Transport Consortium is one 

of the companies contracted to supply PRASA with new trains. 

Air 

Airports Company South Africa (ACSA) owns and operates the country’s 

10 biggest airports. The company also manages airports in India 

and Brazil. The company will spend R50-billion on expansion and 

R20-billion on maintenance up to 2023. 

Ekurhuleni wants to leverage the location of South Africa's biggest 

airport, O.R. Tambo International, into a major economic asset. An airport 

city, or Aerotropolis, is planned, whereby a variety of economic sectors 

are encouraged to set up business in the vicinity of the airport and, in 

this way, going beyond the passenger traffic and freight traffic, which an 

airport naturally attracts. 

81 


OVERVIEW 

O.R. Tambo International in Gauteng caters for more than 

17-million passengers every year, receives more than 105 000 arriving 

air-traffic movements and employs 18 000 people. 

The Cape Town International Airport has been expanded and improved. 

King Shaka International Airport (KSIA) opened north of Durban 

in 2010. Emirates is the international carrier to KSIA. 

Several airports have been mooted as possible regional freight 

nodes: Wonderboom Airport in Pretoria, Polokwane International 

Airport in Limpopo and Mahikeng Airport in the North West Province. 

Maritime 

The national government has introduced a maritime policy intended 

to better exploit the "Oceans Economy". Altogether, the 

government wants these projects to contribute R20-billion to 

the South African economy by 2019. Investments in South Africa's 

port infrastructure will have an impact on the broader transport 

and logistics sector. 

In the Western Cape, investment has begun to kick-start this 

policy: a new fuel-storage facility is going up at the Cape Town 

docks and the Port of Saldanha will soon have an Offshore Supply 

Base (OSSB) to support the maritime oil and gas industry (very 

active off the coast of Africa at the moment). 

Incentives to boat manufacturers in Durban and Cape Town have 

been offered, small harbours around the coast of South Africa are to 


Airports Company South Africa: www.airports.co.za 

Passenger Rail Agency of South Africa: www.prasa.com 

South African National Roads Agency Limited: www.sanral.co.za 

be rehabilitated and three new 

harbours are to be launched in 

KwaZulu-Natal, the Northern 

Cape and the Eastern Cape. If 

the Port Nolloth harbour project 

on the West Coast gets the 

green light, then accompanying 

infrastructure will follow. A new 

rail link between the coast and 

Upington could be needed. 

Deputy Minister of Transport, 

Sindisiwe Chikunga, has said 

that of all the vessels that carried 

300-million tons of cargo 

through SA's ports annually, 

not one was registered in South 

Africa. The result of South Africa 

not having a merchant fleet is 

that more than R40-billion is 

paid to foreign ship operators. 

The province of KwaZulu-Natal 

is well-placed to take advantage 

of the focus on the maritime 

economy. Between them, the 

ports of Durban and Richards 

Bay handle 78% of South Africa’s 

cargo tonnage. Durban’s annual 

throughput of containers is about 

one-million, more than 60% 

of the country’s total. The Port 

of Durban is already home to a 

variety of maritime companies. 

Southern African Shipyards (SAS) 

is an experienced manufacturer 

of ship hulls. To improve their 

competitiveness, three South 

African shipbuilders (SAS, Damen 

Shipyards Cape Town and Nautic 

Africa) will pool their resources on 

contracts in other parts of Africa. 

Different South African ports 

probably need to specialise to 

some degree, but cooperation 

pacts like this one might also be 

a template for the boat repair and 

servicing sector. 


Airports Company 

South Africa 

PROFILE 

Airports Company South Africa is expanding its successful local operation 

into an international one. 

Company profile 

Airports Company South Africa was formed in 

1993 as a public company and, although majority 

owned by the South African Government, is 

legally and financially autonomous and operates 

under commercial law. As the largest airport authority 

in Africa, the company manages a network 

of nine major airports in South Africa, including the 

three main international gateways ie O.R. Tambo 

International, Cape Town International and King 

Shaka International airports. 

Traffic development 

The traffic development mandate is to identify, 

evaluate and develop air service opportunities 

collaboratively with key stakeholders (ie 

airlines, regulators, national, provincial, local and 

tourism) across the Airports Company South Africa 

network of airports to enable trade, tourism, and 

mobility of goods and services for sustainable 

economic growth. Air service is important for connecting 

the local economies with the rest of the 

world, thus emphasis is placed on prioritisation of 

small and rural communities within the Republic 

of South Africa for seamless access/connectivity to 

the national air transport system. Traffic development 

works collaboratively with key stakeholders 

such as airlines, regulators, government and tourism 

agencies to identify, evaluate and develop potential 

air service opportunities across the globe. This links 

Airports Company South Africa’s network of airports 

with the aim of enabling trade, tourism, and mobility 

of goods and services within Southern and sub- 

Saharan Africa. 

Its main focus is on building sustainable relationships 

and economic development to transform the opportunities 

the region has to offer into sustainable 

value for all. Although the introduction of new air 

services has potential to stimulate demand for air 

travel, it is equally important to strike a good balance 

between supply and demand to ensure that the current 

needs are served without compromising the future 

air travel needs. Airport Company South Africa's 

role is to provide route/traffic development services 

and support to all airlines and air travel stakeholders 

in line with the Competition Commission Act 

83 


PROFILE 

of 2009 of the Republic of South Africa. Its service/ 

support includes: 

• Market data analysis and research 

• Opportunity identification and modelling of a 

potential air service/opportunity 

• Development of an air service/route business case 

with a prospective airline(s) 

• Operational start-up information support through 

a central airline account manager 

• Continuous collaborative review of the route performance 

and advice as required 

• International focus 

International focus 

In 2006, Airports Company South Africa formed part of 

a consortium that took over the expansion and management 

of Chhatrapati Shivaji International Airport in 

Mumbai, India. The success of this venture encouraged 

the company to seek similar opportunities elsewhere. 

Such undertakings allow the leveraging of the pool of 

skills and experience amassed over the years to grow 

the business and increase shareholder value. 

In 2012, Airports Company South Africa, in partnership 

with the Brazilian company, Invepar, was successful 

in a bid to manage the development, maintenance 

and operations of Guarulhos International Airport in 

São Paulo, Brazil. 

Airports Company South Africa’s international 

growth strategy is centred on strengthening 

and expanding existing footprints in India and 

Brazil through upcoming opportunities in these 

respective countries. The company also intends 

to focus on developing the African continent’s 

aeronautical infrastructure landscape. 

Our airports at a glance 

South Africa: International airports 

O.R. Tambo International Airport 

Airports Company South Africa’s flagship airport, O.R. 

Tambo International, is South Africa’s principal and 

largest airport, servicing airlines from all five continents 

and with more than 50% of the country’s air passengers 

passing through it. 

Situated in Gauteng, the airport is ideally situated in 

the heart of South Africa’s commercial and industrial 

hub with excellent road infrastructure linking 

it to Johannesburg, Pretoria and the national road 

network. The Gautrain rapid rail system now 

links the airport with the CBDs of Johannesburg, 

Sandton and Pretoria. This truly world-class facility 

now handles about 19-million passengers a year, 

with a capacity of 28-million, and boasts a total of 

more than 14 300 parking bays. 

Cape Town International Airport 

Cape Town International Airport is Africa’s thirdlargest 

airport, with an annual passenger throughput 

of nearly 8.5-million and a capacity of 14-million. 

It is also Africa’s premier tourist and VIP destination 

and has established a reputation as Africa’s foremost 

international award-winning airport, consistently 

performing among the best in the world in its 

category for passenger service. 

This is the first Airports Company South Africa operated 

airport to achieve the internationally recognised 

ISO 14001 accreditation for its environmental 

management system. 

King Shaka International Airport 

King Shaka International Airport is the newest 

in Airports Company South Africa’s local airport 

network, and has been in operation since 2010. 

The site of the previous Durban International 

Airport was to small to handle the growth in air 

traffic and this prompted the construction of 

a new airport 35km north of Durban. The new 

airport currently handles about 4.5-million passengers 

annually and has a capacity of 7.5-million, 

with opportunities for significant expansion 

as required (up to 45-million passengers by 

2060). Its multi-storey parkade caters for 1 500 

vehicles, while there are atotal of 4 500 vehicle 

parking bays at the airport. 

South Africa: Regional airports 

East London Airport 

Each year, East London Airport processes around 

665 000 passengers, with just over 31 000 air traffic 

movements. It has an overall passenger capacity of 

1.2-million passengers. The airport provides a cru- 


84

PROFILE 

cial link in the local cargo chain, playing an important 

role in the growing economy of the Eastern 

Cape. Its flights carry a variety of cargo headed for 

domestic destinations, as well as countries such as 

France and Holland. Although the two domestic 

airlines that operate from the airport (South African 

Airways and SA Express) only employ A320s, the 

airport can also accommodate A300 aircraft. 

George Airport 

George Airport is located at the heart of the 

Western Cape’s Garden Route, a much-loved holiday 

destination for domestic and international 

tourists alike. With increasing numbers of visitors 

travelling to the region’s mountains, beaches and 

forests, George Airport now facilitates over 570 000 

passengers each year, with the capacity to handle 

900 000. The airport also acts as a national distribution 

hub for cargo such as flowers, fish, oysters, 

herbs and ferns. The unwavering commitment to 

service and efficiency has won it the South African 

Airport of the Year award six times in total. 

Kimberley Airport 

Kimberley Airport is situated in the Northern Cape 

and facilitates about 10 500 air traffic movements 

a year. It handles nearly 160 000 passengers annually, 

of which three-quarters are business travellers, 

and has a total passenger handling capacity of 

200 000, together with 114 public parking bays. It 

also has a thriving cargo business that dispatches 

a remarkable range of cargo, ranging from game 

trophies to industrial equipment. 

Bram Fischer International Airport 

Bram Fischer International Airport is the thirdlargest 

of Airports Company South Africa’s 

national airports and provides an important 

gateway to the Free State, which is a land-locked 

province. The airport processes around 380 000 

passengers annually, the majority of whom are 

business travellers, and 14 000 air traffic movements 

are facilitated. Bloemfontein also operates 

a significant cargo business. 

The growth and development opportunities at 

this airport include: 

Boulevard Precinct 

Immediately adjacent to the airport, the 

Boulevard Precinct will include a private hospital, 

residential, retail, schools and commercial premises. 

This is an exciting and innovative, 44ha development, 

which will support the N8 development corridor. 

It will accommodate a wide range of tenants, 

ranging from mixed-use offices, a service station 

and a private hospital. Construction of the first three 

developments commenced in 2016, acting as a 

catalyst for the node. 

The Grasslands 

Approximately 98ha in extent, this development property 

represents a diverse range of business opportunities. 

These include an extended general aviation area, freight, 

cargo, logistics and housing. 

Port Elizabeth International Airport 

Affectionately known as the "10-minute airport", Port 

Elizabeth International Airport is situated within five minutes 

of the CBD and the beachfront, and just 10 minutes 

from all other key city locations. The airport currently 

handles more than 1.25-million passengers per year and 

over 800 tons of cargo. The growth in tourist numbers 

to the region, together with preparations for the 2010 

FIFA World Cup, resulted in a number of improvements 

to the airport including a terminal expansion and it now 

has the capacity to handle up to two-million passengers 

every year. The airport boasts a new retail area, together 

with a fully compliant international arrivals and departures 

terminal to complement upgraded amenities for 

domestic traffic. 

Upington International Airport 

Although Upington International Airport is a small 

operation with an annual passenger capacity of 

100 000, it boasts a number of unique services and 

facilities that are unmatched on the African continent. 

The airport has three runways, the primary one measuring 

5 900m (the longest civilian runway in the Southern 

Hemisphere and one of the few able to land a Space 

Shuttle). Both South African Airways and the South 

African Air Force use the airport to train pilots in the 

handling of large aircraft such as Boeing 747s, 707s and 

the South African presidential jet. The airport also has 

a cargo business, sending anything from livestock to 


PROFILE 

cars and mining equipment to Europe, the Middle East 

and the rest of Africa. 

Rest of the world 

India 

As an integral part of its growth strategy, Airports 

Company South Africa looks to identify and participate 

in global airport management and operation concession 

opportunities. Today, the airport handles over 

30-million passengers and more than 650 000 tons 

of cargo. In February 2014 a new, integrated terminal 

was opened, increasing the airport’s annual capacity 

to 40-million passengers and with a retail footprint 

of 18 580m 2 . 

Airports Company South Africa’s involvement at 

Chhatrapati Shivaji International Airport in Mumbai is a 

flagship demonstration of the growing economic ties 

between India and South Africa. It is a shining example 

of coordinating experience and skills for the benefit of 

two nations. Chhatrapati Shivaji International Airport 

has received various accolades since 2006. 

Brazil 

Airports Company South Africa’s role, through a 

Technical Services Agreement, is to provide airport 

operation and management services to Guarulhos 

International Airport in São Paulo. This was a particularly 

relevant requirement for the airport, as it had to 

be prepared for the 2013 FIFA Confederations Cup, 

the Pope’s visit for World Youth Day in 2013, the 2014 

FIFA World Cup and the 2016 Olympic Games. This 

was the only concession to deliver on time. 

Ghana 

In 2016, Airports Company South Africa entered 

into a Technical Services Agreement with Ghana 

Airports Company Limited to provide advisory 

and technical consultancy services on all airportrelated 

matters. 

Competencies 

• Airport technical advisory services 

• Airport operation and management 

• Transfer of airport operations from one airport 

to another 

• Training and develoment 

• Investment in airport concessions 

Accolades 

2011: 3rd Best Airport in Africa of the Airport Service 

Quality Awards by Airports Council International 

2012: 2nd Best Airport in Africa of the Airport Service 

Quality Awards by Airports Council International 

2013: 1st Best Airport in World Handling under 

5 Million Passengers of the Skytrax World Airports 

Awards by Skytrax 

2014: 1st Best Regional Airport in Africa of the Skytrax 

World Airports Awards by Skytrax 

2014: 2nd Best Airport in World Handling under 



2014: 3rd Best Domestic Airport in the World of the 

Skytrax World Airports Awards by Skytrax 

2014: Nkonki SOC Integrated Reporting Award 

2014: Chartered Secretaries Integrated Reporting 

Award 

2015: Environmental Award 

2015: 1st Best Airport in the World Handling under 



2015: 1st Best Regional Airport in Africa of the Skytrax 

World Airports Awards by Skytrax 

2015: 3rd Best Domestic Airport in the World of the 


2015: 4th Best Regional Airport in the World of the 


2011-2015: KZN Top Business Award (5 years in a row) 

CONTACT INFO 

Elsie Rateiwa – 

Email: Elsie.rateiwa@airports.co.za 

Charles Shilowa – 

Email: Charles.Shilowa@airports.co.za 

Website: www.airports.co.za 


86

OVERVIEW 

Information and communications 

technology 

Fibre optic networks are growing quickly. 


Local and provincial government 

authorities are rolling 

out Wi-Fi in public areas in selected 

areas of South Africa. 

South Africa's appetite for fast internet connectivity is growing 

fast. The state-owned company Telkom controls most 

of the country's fibre cable but several smaller private companies 

are winning contracts to lay fibre optic cables around 

the country. 

The Mail & Guardian reported in April 2016 that "nimble new entrants" 

such as Vumatel, Fibrehoods, Link Africa (which runs its network 

in the sewerage system, obviating the need to dig new trenches), and 

Dark Fibre Africa are forcing the bigger telecommunications companies 

to up their game. With faster internet speeds, customers could switch 

away from subscriber television services. 

Access in South Africa is improving all the time. As part of its mandate, 

the Independent Communications Authority of South Africa 

(ICASA) has seen to it that various private operators have connected 

more than 623 schools around the country. The Universal Service and 

Access Agency of SA connectivity project is currently underway in 

the Vhembe and Gert Sibande Districts. The Western Cape Provincial 

Government and Neotel will roll out 384 Wi-Fi hotspots in public 

areas, and is aiming for complete 

coverage by 2019. 

The ICT sector's direct contribution 

to the gross domestic 

product (GDP) was R94.7-billion 

(2.9% of the total) in 2012 (StatsSA). 

South African households 

spent R91.6-billion on ICT products 

in 2012 and R4.60 of every 

R100 spent by households was 

spent on ICT products. Of that, 

R2.90 was spent on telecommunications, 

broadcasting and 

information supply services (eg 

pay-television subscriptions, cellphone 

airtime and broadband); 

80 cents on communication 

equipment (eg televisions); 50 

cents on content and media products 

(eg newspapers and books); 

and 30 cents on computing machinery. 

The remaining 10 cents 

was spent on other ICT items, 

according to a StatsSA report. 

About two-thirds of South 

Africa’s ICT companies are located 


OVERVIEW 

in Gauteng Province. The sector 

contains a diverse range of hardware 

manufacturing, software 

design and various service offerings 

such as software management, 

systems programming and 

technical support. South Africa is 

highly regarded as a centre of 

software development and offers 

attractive inward investment 

opportunities, especially in: 

• Automotive electronic 

systems 

• Access control and security 

• Financial sector ICT services 

• Silicon processing for fibre 

optics 

• Integrated circuits and solar 

cells 

There are many opportunities for 

employment in the sector. It is a 

huge irony that in a country with a 

very high unemployment rate, the 

Johannesburg Centre for Software 

Engineering (JCSE) puts the figure 

of vacancies in software and application 

development, cloud computing 

and information security 

at 40 000 (Skills & HR Development, 

Sunday Times, June 2016). 

Training is available from organisations 

such as the Quad 

Digital Academy, a Standard 

Bank initiative, an ICT Incubator 

in Port Elizabeth run by the 

Small Enterprise Development 

Agency (Seda), from the City of 

Johannesburg (which runs a 

digital intern programme called 

COJEDI) and scarce skills training 

offered by the City of Cape Town 

(in partnership with SAP Africa) 

in software programming; the 

programme is called "Western 

Cape Skills for Africa". 

According to itnewsafrica. 

com, South Africa accounts for 

5% of all phishing attacks in the world. This is where a person in a 

company gives away account information or codes that allow thieves 

to steal or disrupt operations. When the data that a company holds is 

the main point of the business, the case for cybersecurity is obvious. 

Hacking of websites can also have a devastating effect on a business, 

so operations like penetration testing and technical surveillance 

countermeasures are offered by security companies. 

Innovation in the sector is encouraged by mLab, a centre designed 

to support entrepreneurs in the mobile technology field. The CSIR in 

Pretoria hosts the facility together with The Innovation Hub. 

Traditional technologies for broadband connection (dial-up and 

VSAT) are declining in popularity in South Africa as more sophisticated 

mobile technology becomes available. This includes WiMax, HSDPA 

and HSPA+. Growth in the sector is expected to be driven by mobile 

broadband and services that add value in the data field. 

Data centres are increasing their capacity at a fast rate as cloud 

usage grows. Teraco, which runs data centres in Johannesburg, 

Cape Town and Durban, is considering adding another 10 000m² 

in Ekurhuleni because of what World Wide Worx's Arthur Goldstuck 

calls the "unquenchable" thirst of businesses and consumers for data. 

Teraco is also the host of a joint venture that steers data traffic (a peer 

point) called NAPAfrica. 

Public transport systems are moving to cashless ticketing supported 

by ICT. Digicore and Absa Bank have combined in Cape Town 

to roll out the system for minibus users driving between the city 

and the V&A Waterfront. With Vodacom spending in the region of 

R6-billion per year on its 3G and 4G long-term evolution network (LTE), 

the capacity of South Africa’s telecommunications network is growing 

fast. MTN and 8ta are also investing heavily in LTE. 

New players in the market were announced in September 2016 

when two former bankers, Paul Harris and Michael Jordaan, put together 

a consortium to buy Multisource with the intention of investing 

billions in an LTE-Advanced (or 4.5G) network. 

In 2016 Neotel changed hands. Liquid Telecom, a subsidiary of 

Econet, has teamed up with Royal Bafokeng Holdings to purchase the 

mobile and data business from Tata Group of India. 


Independent Communications Authority of SA: www.icasa.org.za 

National Department of Communications: www.doc.gov.za 

State Information Technology Agency: www.sita.co.za 


A Leader In Solutions 

Dr Vusi Mncube 

Executive Chairman 

Key Services and Products are as follows: 

Uzulu Business Solutions is a wholly owned B-BBEE company which was initially founded 

to drive the project of bridging the gap between the University of Zululand Computer 

Science Students and the marketplace. Uzulu has since evolved as one of the critical 

players in the financial services, credit management, payment fulfilment systems and 

other value-adding ICT applications in partnership with various industry leaders. 

Uzulu's philosophy is to provide high-quality IT solutions and consulting to customers 

with an emphasis on service by striving to exceed expectations. This rare quality 

has allowed Uzulu to grow swiftly whilst keeping pace with the rapidly developing IT 

industry. Our operating model focuses on the basic view that any IT solution is only 

relevant if it enables and adds value to the business. Through this approach, our clients 

are guaranteed that the solutions we design and implement give them the maximum 

return on their investment. 

Our company also designs, develops and implements the most appropriate costeffective 

solutions for its clients. The company ensures that the necessary skills are 

transferred for ease of use and implementation. 

“If there is no measurable business value for any solution deployment, it is not a solution. 

Through our world-class partnership model with our clients, we jointly determine 

the return on investing in a business solution before embarking on the project. Once 

the solution is deployed, we continuously measure the realisation of ROI as one of our 

fundamental post-implementation interventions. If our customers realise business value 

and are therefore successful, so are we successful,” says Dr Vusi Mncube, Executive 

Chairman, Uzulu Business Solutions. 

Outsource Collections and Call Centre 

We offer a broad range of customer contact services through the fully blended multichannel inbound and outbound 

contact centre. We work closely with clients to drive their business initiatives. Tailor -made solutions are 

often born as various businesses have specific needs. Our services include but are not limited to: 

• Inbound/outbound customer service 

• Debt collection 

• Call centre recruitment and training 

The proposed model is that of providing a debt collection capability to the municipality. This capability will co-exist 

with the current billing and credit control activities of the municipality. 

Business Advisory and ICT Integration Services 

• Business process and technology consulting 

• Information architecture; system/technical architecture 

• Application development 

• Online and physical tracing 

• Back-office and fulfillment 

• Collections strategy and credit risk analytics 

• Data processing and cleansing 

• Back office systems, infrastructure and integration 

• IT support and solutions maintenance 

• Project management 

• Forensic audit services 

Contact details 

Address: 4th Floor, West Tower, Nelson Mandela Square, Sandton City, 

Sandton, Johannesburg 

Email: info@uzulusolutions.co.za | Tel: +27 11 100 5165 | Fax: +27 86 648 4925

PROFILE 

VeriFi 

VeriFi is the leader in the business of verification and certification 

for BBBEE recognition. 

South Africa requires an economy that can meet the 

needs of all its economic citizens – its people and their 

enterprises – in a sustainable manner. Government’s 

objective is to achieve this vision of an adaptive economy 

characterised by growth, employment and equity. 

Achieving authentic BEE has required a reassessment 

of traditional business models and corporate 

cultures. The Bill, code and strategy document rely 

upon two core policy instruments that have been 

designed to bring about BEE. Both of these instruments 

are essentially measurement tools that will 

permit the public and private sectors to evaluate the 

BEE status of a particular enterprise. Failure to adapt to 

the new paradigm will have significant consequences. 

A real commitment to BEE is now an economic 

imperative. 

Description of services 

• Assess and certify BBBEE rating 

• Provide insight into BBBEE challenges 

facing various organisations 

• Provide insight and guidance on the actions 

required to elevate BBBEE status 

• Verification of supplier BBBEE status 

• To assist small, medium and large enterprises 

in acquiring a certified BBBEE verification, 

and to clarify the codes of good practice, 

BBBEE Act and guide and advise where 

necessary, thus ensuring a suitable level of 

recognition 

Target markets 

Small, medium and large enterprises achieving 

an annual turnover of below R10-million and over 

R50-million respectively (including all charter sectors). 

Pricing 

Pricing for BEE consultancy services is based on the 

client’s requirements and can be structured on an 

hourly or monthly basis. 

For BEE Verification and issue of a BEE Compliance 

Certificate, please contact the office for the 

current rates. 

BBBEE explained 

Government BBBEE legislation consists of: 

• The Strategy for Broad-Based Black Economic 

Empowerment 

• The Broad-Based Black Economic 

Empowerment Act, No 53 of 2003 

• The Codes of Good Practice for Black Economic 

Empowerment 

• Various sectoral BEE Charters or Codes 

In terms of these Codes of Good Practice, 

businesses are divided into three categories: 

• Where turnover is less than R10-million a year, 

or when in the first year of incorporation, a 

business is categorised as an Exempt Micro 

Enterprise (EME). However, it is necessary 

to confirm this status by providing proof of 

annual income. 

• Businesses with a turnover of between 

R10-million and R50-million a year are categorised 

as Qualifying Small Enterprises (QSEs). 


90

PROFILE 

The criteria for each of these elements are less 

onerous for QSEs than for companies with 

turnovers exceeding R50-million per annum. 

The value of verification 

With BBBEE recognised as an imperative by companies 

committed to building an equitable South 

Africa, verification is an essential requirement that 

confirms a company’s participation and contribution. 

Verification is performed in a manner similar 

to that of a financial audit: it provides an independent 

assessment of investment, performance 

and initiatives as a control system. Criteria against 

which companies are measured are provided by 

government, and like an audit, verification must 

be performed annually. 

A BEE certificate from VeriFi is advantageous for: 

• Proposals for new business with government 

• The licensing of regulated activities which 

include mining, liquor sales and the granting 

of credit 

• Leasing of premises from government or 

private businesses 

• The creation or continuance of business 

relations with clients seeking assurance of a 

company’s BEE compliance 

Once a verification and certified rating through VeriFi 

is accomplished, a company can perform business 

in confidence when engaging with other organisations, 

as its commitment to equality, nation-building 

and unique South African business processes will 

be recognised. 

Key facts and figures 

Year established: 2005 

No of staff: 15 

Major clients: BP, Scaw Metals, Hertz Car Rental, 

Public Investment Corporation Limited, IBM 

South Africa, SAAB, South African Express Airways 

Soc Ltd. 

CONTACT INFO 

Tel: +27 86 175 3233 

Email: info@verifibee.co.za 

Website: www.verifibee.co.za 


PROFILE 

Secur 

Superior risk management 

services for South African companies. 

E C U R 

A CYBER SECURITY CONSULTANT 

E C U R 


Secur provides risk management services and solutions, 

including technical consulting, to organisations 


Secur employs digital forensic software engineers, 

ethical hackers, secure website architects, polygraph 

examiners and other relevant experts. This expertise 

enables it to offer clients penetration testing and 

incident response in addition to consulting services 

– all of which are designed to strengthen an 

organisation’s security in cyber space. 

Secur operatives are widely considered the ‘gold 

standard’ within the information security industry, 

due to their unique experience with information 

security standards and protocol. 

Products 

Secur distributes and resells a range of best-of-breed 

security solutions including: 

• Cybereason 

• Datalocker 

• Iron Key 

• Intellinx 

• Check Point 

• FLIR 

• Rapid7 

• Acunetix 

• Barracuda 

• Palo Alto 

• AirWatch 

• Drivelock 

• Cellopoint 

• Morphisec 

• Cellebrite 

• Silent Circle 

• Immunity 

• Teramind 

• SecurEnvoy 

• ElcomSoft 

• Passmark 

• Symantec 

• Magnet Forensics 

• Panoscan and many more 

Services 

Secur offers a wide array of services such as: 

• Computer forensics 

• Penetration testing 

• Competitive intelligence 

• Incident response 

• Managed services 

• POPI consulting 

• Employee background screening 

CONTACT INFO 

E C U R 


Physical address: Ground Floor, Southdowns 

Ridge Office Park, c/o John Vorster Road and 

Nellmapius Drive, Irene, Centurion 0157 

Tel: +27 12 003 3233 

Fax: 086 638 9959 

Email: info@secur.co.za 

Website: www.secur.co.za 

Online shop: shop.secur.co.za 


92

Education and training 

New universities are improving access to higher education but funding is 

under the microscope. 

OVERVIEW 

South Africa is setting aside ever-increasing amounts of money 

for education but events on university campuses in 2015 and 

2016 suggest that the funding model is going to have to be 

re-examined. Nearly R300-billion was allocated to various 

aspects of education in the 2016/17 budget, but protesting students 

continued to demand free tertiary education. 

Apart from the very large amount spent on the biggest sector (basic 

education at schools), there has been a big increase over the last few 

years on spending on Technical and Vocational Education and Training 

(TVET) colleges, reflecting the state's concern to develop the skills of 

the country's workforce. 

Access to higher education has been steadily on the rise since the 

country become a democracy for all citizens. For example, in the years 

since 2009, university enrolment has increased by nearly 16% and at 

TVET colleges by 67%. Finding ways of paying for this improved access 

is now providing headaches. 

Various regulatory bodies fall under the Department of Higher 

Education and Training: 

• SETAs (Sector Education and Training Authorities) 

• SAQA (South African Qualifications Authority) 

• CHE (Council on Higher Education ) 

• QCTO (Quality Council for Trade and Occupations) 

• NSFAS (National Student Financial Aid Scheme) 

• NSA (National Skills Authority) 

Higher education 

With the inauguration of the Sol Plaatje University (Northern Cape) and 


Every province in South Africa 

has at least one university. 

the University of Mpumalanga, 

every province now has its own 

university, of which there are 

26 in all. The Sefako Makgatho 

Health Sciences University was 

also opened in Gauteng. 

There are three categories of 

university: universities offering 

only degrees and post-graduate 

courses with a strong research 

component, comprehensive universities 

offering a mix of degrees 

and diplomas and universities of 

technology, formerly known as 

technikons. 

There are also 87 registered 

and 27 provisionally registered 

private higher education 

institutions. 

The University of Cape Town 

has 40% of South Africa’s A-rated 

researchers (32) and a strong 

international reputation. UCT is 

93 


OVERVIEW 

rated as Africa’s top university and Pretoria and the University of the 

Witwatersrand (Wits) are also highly regarded as research institutions. 

Wits has been ranked in the top 1% of world institutions in seven fields 

of research. The university offers studies in more than 40 schools in 

five faculties. 

The University of South Africa (UNISA) offers correspondence 

courses. Its headquarters are in Pretoria but it has sites throughout 

South Africa. UNISA has a staff of more than 4 000 and 

300 000 registered students in South Africa and Africa. 

Universities of technology have a specific focus on educating 

young people in fields that will enhance the country’s 

economic performance. Technology is at the core of the 

learning experience. 

Business schools 

Gauteng has three of South Africa’s top five business schools: the Wits 

Business School, the University of South Africa’s Graduate School of 

Business Leadership and the Gordon Institute of Business Science. 

The Graduate School of Business (UCT) is accredited by the European 

Foundation for Management Development while Stellenbosch’s 

Business School has a specialist unit called the Centre for Project 

Management Intelligence. 

The University of KwaZulu-Natal’s Graduate School of Business 

is a founder member of the Association of BRICS Business Schools. 

Rhodes University’s Business School has a strong focus on environmental 

management. 

Schools 

South Africa has 26 000 public schools. Many schools need upgrading. 

The Department of Basic Education reports that 684 schools have 

been built between 2009 and 2016 and an additional 343 schools are 

planned for the period 2017 to 2019. 

The Mathematics, Science and Technology (MST) Grant, is intended 

to promote the teaching and learning of these subjects. This Grant, an 

amalgamation of the Technical Schools Recapitalisation Grant and the 

Dinaledi Schools Grant, has been allocated a total of R1.1-billion over 


National Department of Basic Education: www.education.gov.za 

National Department of Higher Education: www.dhet.gov.za 

Southern African Regional Universities Association: www:sarua.org 

the 2015/16 to 2017/18 MTEF period. 

The Department’s 2015/2016 

budget allocates infrastructure 

delivery funding through the 

Education Infrastructure Grant 

(EIG) at R29.622-billion for the 

MTEF period; and the Accelerated 

Schools Infrastructure Delivery 

Initiative (ASIDI) funded to the 

tune of R7.042-billion. Through 

the ASIDI programme, 163 

new schools have been built 

since 2011. 

Advtech is a JSE-listed 

company that runs several 

schools including Abbotts 

College and Varsity College 

with an enrolment of some 

35 000 students. Curro Holdings 

is also listed on the JSE. A funding 

agreement with Old Mutual 

Investment Group SA (OMIGSA) 

and the Public Investment 

Corporation (PIC) will see Curro 

roll out 11 low-fee independent 

schools in the period to 2019. 

These will be called Meridian 

Independent Schools. 

The LEAP Science and Maths 

School model is far from the JSE 

company model: these schools 

have low fees and have to raise 

funds to survive but they offer 

excellent teaching, particularly 

in mathematics, science and 

English. There are six schools in 

South Africa and they are enabling 

children from black townships 

to do well enough at school 

to go on to study engineering 

at university. 


Discuss. 

Educate. 

Innovate. 

DURBAN 

Tel: +27 31 300 7200 

EAST LONDON 

Tel: + 27 43 721 1774 

JOHANNESBURG 

Tel: +27 11 853 3000 

POLOKWANE 

Tel: +27 15 290 2896/9 

MANCOSA is registered with the Department of Higher Education and Training (DHET) as a private 

higher education institution under the HE Act, 1997. Registration No.2000/HE07/003. 

www.mancosa.co.za 

CAPE TOWN 

Tel: +27 21 671 6576

PROFILE 

College of Cape Town 

The forward-looking college has a history dating back to 

the early 20th century. 

The College is a public Technical and Vocational 

Education & Training (TVET) College, under the 

Department of Higher Education and Training. 

Qualifications offered are accredited, affordable and 

quality assured by Umalusi, various SETAs and SAQA. 

Description of educational offerings 

The College is a leading provider of education and 

training in mainly the Technical and Vocational 

Education and Training (TVET) band and has much 

to offer students and prospective partners as an 

alternative to Basic and Higher Education and 

Training. Qualifications include skills programmes, 

technical, vocational and occupational training that 

lead to recognised, accredited qualifications that are 

in high demand by commerce and industry. 

Description of location of facilities 

The College is situated in the central area of the 

Peninsula with campuses located in Athlone, Cape 

Town city centre, Crawford, Gardens, Guguletu, 

Pinelands, Thornton and Wynberg. The central 

office is located in Salt River, Cape Town. The College 

of Cape Town also has three residences. 

Key facts and figures 

Year established: The College of Cape Town is 

the oldest Technical and Vocational Education and 

Training institution in South Africa with a proud 

history dating back to the beginning of the 20th 

century. As the name suggests, we are based in 

Cape Town. Four former technical colleges, Athlone 

College, Cape College, Sivuyile College and Western 

Province Technical College, were officially merged 

on 1 February 2002 to become the College of Cape 

Town. This arose from a rationalisation in TVET 

colleges in which some 150 colleges around the 

country were reduced to 50. 

No of staff: 670 (full-time) 

No of registered students: 14 379 

Faculties offered: Art & Design, Beauty Therapy, 

Building & Civil Engineering, Business Studies, 

Education & Training, Electrical Engineering, 

Haircare, Hospitality, Information & Communication 

Technology, Mechanical Engineering, Travel & 

Tourism 

Qualifications offered: Certificates, Higher 

Certificates, Diplomas, UNISA B.Ed Degree 

(Foundation Phase), Skills Programmes, Learnerships, 

Accredited Trade Test Centre 

CONTACT INFO 

Key contact people: 

Louis van Niekerk, Principal. 

Wilfred Jackson, Chief Financial Officer. 

Sharon Grobbelaar, Marketing Manager. 

Physical address: 334 Albert Road, 

Salt River, Cape Town 7945 

Postal address: PO Box 1054, 

Cape Town 8000 

Tel: +27 21 404 6700 / 086 010 3682 

Fax: +27 21 404 6701 / 086 615 0582 

Email: info@cct.edu.za 

Website: www.cct.edu.za 


PROFILE 

Southern African 

Wildlife College 

Through conservation education and skills development the college 

contributes to the preservation of Africa's natural heritage. 

Southern Africa's network of parks and reserves is 

an important means of safeguarding the region's 

biological wealth. Whether parks are trans-frontier, 

state-run or privately owned, if managed well they 

are focal points for rural development and economic 

growth. As a result, adequate training and skills development 

programmes, such as those offered by the 

Southern African Wildlife College (SAWC), are vital 

for the conservation of the continent’s rich biological 

diversity while also enabling the flow of benefits 

from protected areas to communities as part of the 

development of the wildlife economy. 

The cutting-edge, hands-on training offered covers 

a wide spectrum of skills needed by protected 

area managers and natural resource managers from 

Southern Africa. It involves those who are either 

already in the service of conservation and environmental 

agencies, as well as individuals starting their 

careers in the conservation field. 

An important facet of the College’s training is its 

Wildlife Guardian Programme, which is aimed at 

equipping field rangers with the necessary skills 

to help ensure the integrity of protected areas and 

counter the onslaught of poaching in the region. In 

addition, the College offers a host of certificate programmes, 

learnerships, skills programme and short 

courses aimed at up-skilling people and providing 

employment within the conservation sector. This 

is done through its four key training units, which 

include: Wildlife Area Management, Protected Area 

Integrity, Sustainable Use and Guiding as well as 

Community Development and Youth Access. 

The College’s business plan has also been developed 

in line with key elements of the National 

Development Plan and as such will contribute to 

the goals and objectives of the National Biodiversity 

Economy Development Strategy and targets of the 

Department of Envionmental Affairs’ Vision 2024. 

Projects developed in partnership with, and funded 

by, the Department of Environmental Affairs and the 

National Treasury’s Jobs Fund are indicative thereof. 

Since its inception, the College has trained more than 

14 000 students from 26 countries in Africa, mostly 

from countries in the SADC region. Approximately 

80% of the learners who have received training at 

the SAWC are still in wildlife management and many 

of its graduates have been promoted to more senior 

management positions. 

CONTACT INFO 

Tel: +27 15 793 7300 

Email: info@sawc.org.za 

Website: www.wildlifecollege.org.za. 


Improving skills 

in sustainable 

development 

INTERVIEW 

Theresa Sowry 

BIOGRAPHY 

CEO of the Southern African 

Wildlife College Theresa Sowry 

holds a Master of Science Degree 

in Botany from the University 

of the Witswatersrand. 

She gained experience in the 

conservation fi eld while working 

for SANParks on a rare antelope 

programme in the Kruger 

National Park. She went into 

conservation education when 

she joined the Southern African 

Wildlife College as Training 

Manager and Lecturer in Natural 

Resource Management. She 

was later promoted to Executive 

Manager: Training and was 

appointed as the college’s CEO 

in January 2011. 

Describe any changes that the College has experienced 

in recent years. 

Given that we are a non-profit training institution that does not receive 

any government subsidies, the College has become a lot more business 

focused in order to survive in a sector which traditionally has not 

been well funded. In line with the College’s new business plan, and 

with the introduction of our conservation-focused business units, 

I believe that the SAWC is playing a pivotal role in improving the skills 

and knowledge needed for sustainable development. 

Tell us about some of the highlights experienced. 

The major highlight is working with an amazing group of people, all 

dedicated and committed to conservation education, and having 

excellent relationships with our donors who play such a crucial role in 

the College's development. With the support of our partners, WWF-SA, 

Peace Parks Foundation and the Southern African Wildlife College Trust 

(SAWCT), the College has made great strides over the past few years. 

A personal highlight was long-term donor, the Tusk Trust, inviting 

me to Windsor Castle to celebrate their 25th anniversary. I was personally 

able to introduce the field-ranger training programme, which 

the Tusk Trust supports, to Prince William! A subsequent visit by Prince 

Harry to the College and his announcement of a partnership between 

the SAWC and United for Wildlife, via the Royal Foundation, definitely 

made it onto the 2016 highlights list! 

Are internship/job placements readily available for 

graduates of the College? 

Many of our learners are already employed in the field of conservation. 

However other SAWC training projects such as the National Treasury’s 

Jobs Fund project are aimed at training unemployed people from 

local communities and integrating them into the conservation sector 

by ensuring job placement after completion of their studies, which 

includes work-integrated learning. 

99 


OVERVIEW 

Tourism 

Tourism is a growth industry that quickly creates jobs. 

As one of the sectors in which growth is directly (and quite 

quickly) translated into new jobs, the tourism industry is a 

particularly important part of the South African economy. 

The global tourism industry is fairly resilient to economic 

downturns. International tourist arrivals have increased steadily, even in 

the years following the 2008 global economic downturn. South Africa 

hosted the FIFA Football World Cup in 2010, which helped to boost arrival 

figures and market the country across the globe. 

StatsSA reported that 11% more tourists arrived in May 2016 

(760 000) than in the same month in 2015. Total tourist arrivals for January 

to May 2016 rose to more than 4.2-million, a 15.7% increase and more 

than three times the average annual global growth rate in global tourism. 

Spending by foreign visitors to South Africa in 2015 amounted to 

R68.2-billion. Tourism accounts for 3% of South Africa's gross domestic 

product and there are about 655 609 jobs in the sector (Treasury). 

A lot of effort has gone into increasing the number of South Africans 

who take trips within the country. In the 2016/17 financial year, South 

African Tourism has committed R100-million to promote domestic 

tourism. Domestic tourism generated R8.8-billion in the first quarter 


Marriott International and 

Protea Hotels have signed 

a deal. 

of 2016, an improvement on the 

same period in the year before. 

The Tourism Incentive 

Programme (TIP) has been 

launched by the Department of 

Tourism, recognising how important 

the sector is in creating 

growth and jobs. Tourism has 

been earmarked as one of the 

six key growth sectors in national 

government's New Growth Path. 

An Enterprise Development 

Project Management Unit (PMU) 


OVERVIEW 

has been established within the 

Department of Tourism. Among 

the PMU's tasks will be to manage 

an Enterprise Development 

Online Information Portal for 

small, medium and micro enterprises 

(SMMEs). Two tourism incubator 

hubs are also to be established 

in the Pilanesberg (North 

West Province) and Manyeleti 

(Mpumalanga Province). 

One of the reasons for the 

success of South Africa's tourism 

sector is its diversity. Superb 

natural beauty, excellent beaches 

(45 have Blue Flag status), incomparable 

wildlife, vibrant cities and 

cultural and heritage attractions 

that represent a heterogeneous 

population and a dramatic history, 

South Africa really does have it all. 

Culture and heritage accounts for 

fully 40% of world tourism and is 

one of the fastest-growing subsectors. 

Halaal tourism is a growth 

industry and South Africa is well 

placed to benefit from this trend. 

In the five years to 2021, South 

Africa will be the venue for more 

than 200 conferences that will add 

R1.6-billion to the economy and 

attract about 300 000 participants. 

South Africa has 19 national 

parks and each province has its 

own as well. There are a great 

number of private game farms and 

nature reserves, many of which 

cater to the luxury market. There 

are eight UNESCO World Heritage 

Sites in South Africa: Robben 

Island, Cradle of Humankind, 

Mapungubwe Cultural Landscape, 

iSimangaliso Wetland Park, uKhahlamba 

Drakensberg (newly named 

Maloti Drakensberg Transfrontier 

Park), Richtersveld, Cape Floral 

Kingdom and Vredefort Dome. 

Other popular history or cultural sites include the Nelson Mandela 

Museum, Mandela House (Soweto), Hector Petersen Memorial 

(Soweto), Apartheid Museum, Freedom Park, Voortrekker Monument, 

Constitution Hill, District Six Museum, Bo-Kaap Museum and many others 

are popular tourist attractions. There are a number of opportunities 

to further develop the full potential of tourism in heritage sites. The 

Department of Arts and Culture is responsible for the promotion of 

Heritage Month, including Heritage Day. 

Structure 

The South African tourism industry is well segmented. The distribution 

channel is dominated by four major groups, each of which runs 

several companies in different parts of the value chain. According 

to Wesgro, the Western Cape’s investment promotion agency, the 

biggest groups are: 

Imperial Holdings: companies include Europcar and Tempest Car 

Hire, Springbok Atlas and Grosvenor Tours 

Bidvest Travel and Aviation: Rennies Foreign Exchange, BidTravel, 

Harvey World Travel, Budget Car Rental, HRG Rennies Travel and 

BidAir Services 

Cullinan Holdings: Thompsons, Hylton Ross Tours, Pentravel 

Tourvest: The group has companies dealing with many aspects of the 

tourist experience: tour operators and conference organisers, foreign 

exchange, retail (gift shops and duty-free shops) and hotels (African 

Hotels and Adventures) 

The principal airline operators in South Africa are SAA, the alliance 

of British Airways, Comair, and Kulula, a low-cost airline. SAA has ties 

with SA Express and owns low-cost carrier Mango. Fly Safair's inaugural 

flight took place in late 2014. SA Express and SA Airlink fly to smaller 

destinations in South Africa and Southern Africa. 

101 


OVERVIEW 

Casinos are a popular part of many entertainment and accommodation 

complexes around the country, although relatively few 

licences are in operation. 

Private game reserves and golf resorts has been one of the fastestgrowing 

markets in recent years. 

The Garden Route and the KwaZulu-Natal coastline are areas rich 

in golfing venues. St Francis Links is located between Plettenberg 

Bay and Port Elizabeth. With a spectacular course designed by Jack 

Nicklaus and wonderful views over the bay and nearby mountains, St 

Francis Links is routinely featured among Compleat Golfer magazine's 

Five Star Experience Golf Awards. The International Association of Golf 

Tour Operators (IAGTO) has on occasion selected South Africa as its 

Golf Destination of the Year. 

Wine tourism is said to contribute indirectly more than R4.5-billion 

to the South African tourism sector (South African Wine Industry 

Information and Systems, SAWIS). 

According to Wine Tourism South Africa, a website and publishing 

concern that provides information about the wine industry, 43% of 

visitors to South Africa visit the Cape Winelands. 

The Industrial Development Corporation has committed to investing 

R2-billion in local resorts (and in the African hotel market). 

There are a number of unused or under-used facilities in South 

Africa that could be fixed up to cater to the many South Africans who 

currently don’t take holidays. An audit of possible properties is underway. 

One suggestion is that former military bases could be converted 

into low-fee resorts. 

Other niche areas that are being explored include astrology and 

adventure tourism. The cruise-ship market has massive potential. Both 

Durban and Cape Town are considering building dedicated cruiseship 

terminals in order to capture somewhat more than 0.5% of the 

world market that South Africa currently does. More than 15-million 

passengers travel on cruise ships globally every year. 

Hotels 

Large hotel groups such as Tsogo Sun and City Lodge Hotels run several 

brands. Marriott International and Protea Hotels have concluded a deal 

which gives the multinational brand (with about 4 000 hotels either 

owned or franchised worldwide) the additional title of biggest hotel 

operator in Africa. Some hotels in South Africa have been renamed 

Protea Hotels by Marriott but the deal was not a straightforward sale. 

The former owners of the Protea brand retain possession of the properties 

(as a property company) and a mixture of lease, franchise and 

management agreements was entered into by these two companies. 

Over the next five years, the company expects the Marriott 

International brands, including the Protea brand, to expand from 10 

African countries to 18, involving 

the development of an additional 

38 properties across seven brands. 

The existing Protea brand has 

about 10 000 rooms. 

The Marriott International 

brand itself will soon have a 

presence in South Africa: a 150- 

room hotel and a set of executive 

apartments at Melrose Arch in 

Johannesburg will open in 2018. 

Radisson Blu and Hilton are 

among the international companies 

to have invested inSouth 

Africa recently. A new brand is 

set to launch in 2016: Radisson 

Red, aimed at the millennial market. 

The Rezidor Hotel Group, 

which currently operates five 

hotels in Cape Town, opened 

the The Radisson Red Hotel V&A 

Waterfront Cape Town in late 2016. 

Hilton International has recently 

acquired the Coral Hotel 

in Cape Town’s CBD. It also runs 

the Double Tree by Hilton in 

the same city and has hotels in 

Johannesburg and Durban. 


OVERVIEW 

Southern Sun has relaunched 

itself as Tsogo Sun, the result of 

a merger with Gold Reef Resorts. 

Southern Sun remains as a brand 

for premier hotels in the group, 

which has a total 95 hotels and 

15 casinos across Africa, the 

Middle East and the Seychelles. 

The new Southern Sun Elangeni 

& Maharani complex will boast 

734 rooms and nine restaurants 

when Tsogo Sun completes the 

R220-million project to amalgamate 

two previously separate hotels 

on Durban’s Golden Mile. 

The new group’s latest acquisition 

is The Grace in Rosebank, 

Johannesburg, renamed "54 on 

Bath". The Beverly Hills in KwaZulu- 

Natal is the group’s other ultraluxury 

hotel property. 

Other Tsogo Sun hotel brands 

include Sun Square, Garden Court 

and StayEasy. 

Several local companies have 

partnerships with international 

brands. Sun International’s Table 

Bay Hotel and Lost City at Sun 

City are also members of the 

Leading Hotels of the World 

group. Sun International runs 17 

hotels and 20 casinos throughout 

Southern Africa. Locations include 

Botswana, Namibia, Swaziland 

and Zimbabwe. 

Orient-Express Hotels has two 

five-star hotels: The Westcliff in 

Johannesburg and the iconic 

Mount Nelson Hotel in Cape Town. 

Within the luxury segment, 

companies like The Mantis 

Collection aim to cater to clients 

anywhere in the country; for 

instance, it has a small hotel in 

Port Elizabeth where clients stay 

before transferring to the game 

lodge at Shamwari. 

Relais & Châteaux has 10 properties in South Africa including 

Londolozi Private Game Reserve, within Sabi Sands, and the Gorah 

Elephant Camp inside the Addo Elephant Park. 

Forever Resorts offers a range of accommodation options for every 

pocket. The group has 12 hotels and lodges together with many selfcatering, 

camping and caravanning destinations, mostly located in the 

north of the country but also located at Gariep Dam and Plettenberg 

Bay in the Western Cape. 

Nature 

South Africa has a great reputation for beaches, landscapes, superb 

wildlife and a rich cultural history. 

South African National Parks and the South African National 

Biodiversity Institute (SANBI) are outstanding national organisations 

that oversee a range of important, but easily accessible sites. The Kruger 

National Park is about the size of Belgium and attracts almost a million 

visitors every year. Kruger covers nearly 20 000 square kilometres, it has 

six ecosystems, 1 982 species of plants, 517 species of birds and 147 

species of mammals – including the "Big Five": lion, leopard, African 

elephant, African buffalo and rhinoceros. The area adjacent to Kruger 

is rich in private game reserves, some of which are regarded as among 

the finest luxury tourist offerings in the world. The Sabi Sands Game 

Reserve has several accommodation options within its 65 000 hectares, 

ranging from the luxurious to the ultra-luxurious. 

The Addo Elephant National Park in the Eastern Cape is a 

164 000-hectare facility that attracts more visitors than East Africa’s 

Serengeti National Park. Addo Park uniquely offers the Big Seven: with 

more than 450 elephants and significant numbers of the rest of the 

Big Five, the park includes a marine section where great white sharks 

and whales can be sighted. 

The brief of the South African National Biodiversity Institute is to 

run nine national botanical gardens. The 7 500 hectares of conserved 

gardens represent an astonishing biodiversity, ranging from the fynbos 

of Harold Porter to the harsh beauty of the Karoo Desert garden. 


National Department of Tourism: www.tourism.gov.za 

South African National Parks: www.sanparks.co.za 

South African Tourism: www.southafrica.net 

Tourism Grading Council of South Africa: www.tourismgrading.co.za 

103 


OVERVIEW 

Banking and financial services 

Despite general economic concerns, South African banks have 

increased operating income. 


ZAR X is South Africa's 

newest stock exchange. 

The South African banking and financial-services sector has a good 

international reputation because of a strong regulatory and legal 

framework. The sector provides a full range of services including 

commercial, retail and merchant banking, mortgage lending, 

insurance, auditing and investment. 

The South African Reserve Bank (SARB) is the central bank and falls 

under the National Department of Finance. It sets monetary policy and 

decides on domestic interest rates. The SARB oversees the bankingservices 

sector, while the Financial Services Board (FSB) governs the 

non-banking financial-services industry. 

The Banking Association of South Africa represents all registered 

banks, local and international. Major subcommittees oversee capital 

supervision, credit risk, consumer affairs and the SA Securities Lending 

Association. 

The national stock exchange, the JSE Ltd, is the largest stock exchange 

in Africa and consistently ranks in the world’s top 20 derivatives 

exchanges by number of contracts traded. Listed total market values of 

the companies on the JSE amount to R14.7-trillion. The AltX is a division 

of the JSE and attracts a range of small and medium-sized high-growth 

companies, but the JSE will face competition after the ZAR X launched 

in October 2016. The new exchange is looking to attract trading in 

black empowerment shares in particular. 

In the retail banking sector, 

despite really tough economic 

conditions in recent months 

and years, South Africa's Big 

Four (Standard Bank, Absa, 

First National Bank (FNB) and 

Nedbank) increased headline 

earnings by 5.7% in the second six 

months of 2015, to R34.6-billion. 

Profits across the Big Four totalled 

R73.8-billion in the year, according 

to a survey done by PWC (Major 

Banks Analysis). 

Relative newcomer Capitec 

Bank has shown remarkable 

growth with its low-cost offerings: 

a cheque account, a savings 

account and an unsecured loan. 

Capitec was established in 

2001 and listed on the JSE in 2002. 

As of August 2015, Capitec had 

691 branches, a rapid increase 

over the benchmark figure of 

500 that was achieved in January 

2012. Capitec customers can also 

draw cash in retail stores such as 

Pick n Pay, Boxer and Shoprite. 

In early 2016 the bank had 

6.7-million customers (as opposed 

to "clients", people for 

whom Capitec is their primary 


OVERVIEW 

bank). Capitec had 3.3-million clients 

at the same time and 11 000 

employees. 

The banking sector could 

soon be welcoming another newcomer: 

the Discovery group has 

indicated that it will be applying 

for a licence. Discovery is already 

a giant on the JSE (market value of 

R83-billion) with a wide range of 

products and services (health insurance, 

credit cards, investment 

portfolios) that gives it access to 

millions of customers. 

Further change in the sector 

relates to Absa's British investor, 

Barclays, which has indicated 

its intention to sell its stake in 

African operations. Financial 

services group Old Mutual (54% 

stakeholder in Nedbank) has announced 

its plan to create four 

stand-alone businesses out of the 

Old Mutual Group. This would allow 

the UK-based wealth management 

business and the New 

York-based asset managers to 

be free of linkages to the rand, 

while the South African businesses, 

Nedbank and Old Mutual 

Emerging Markets, could focus on 

their specialities. In its six-month 

report for the period ending 30 

June 2016, Old Mutual Emerging 

Markets reported that it had 

11-million customers and had 

paid out R9.2-billion in retirement 

benefits and matured savings 

policies in that period. 

Standard, which operates 

as Standard Bank or Stanbic in 

17 African countries outside 

South Africa, is Africa’s largest 

corporation. Banks such 

as the Development Bank of 

Southern Africa and the Land and 

Agricultural Development Bank 

of South Africa focus their loans on support for infrastructure and 

developmental projects. 

Access 

South Africa is an ideal stepping stone into Africa and several international 

concerns have set up head offices, primarily in Johannesburg. 

These include Bank of China, Bank of Taiwan, Citibank, Deutsche Bank 

AG and HSBC Bank. 

A small number of firms handle most of the country’s biggest 

auditing accounts. The big four are Deloitte, Ernst & Young, PwC and 

KPMG, with SekelaXabiso also in the running thanks to the award by 

Transnet of a R1.3-billion account. 

With the renewable energy sector being actively pursued in South 

Africa, a whole new sector in need of funding has opened up. One 

example in the province of KwaZulu-Natal is the creation by Investec 

and the European Investment Bank of a renewable-energy fund of 

€100-million, which will create many options for investors. 

Despite the incredible strides that have been made in providing 

banking services to the previously unbanked, there is still a long way 

to go. MasterCard has pointed out that only 2% of retail transactions 

on the continent of Africa are conducted electronically. The consulting 

firm McKinsey puts the figure for Africa's population not connected 

to formal banking at close to 80%: this presents an opportunity for 

South African banks in Africa. South Africa has the highest connection 

rate in Africa. 

Finscope's 2014 survey of South African banking and financial surveys 

shows that between 2004 and 2014 a remarkable eight-million 

people were connected to the financial system in some way. Overall, 

the "financially included" reached 31.4 million (up from 17.7-million in 

2004). In a category called "formally served" which includes services 

other than formal banks with branch networks, the percentage of 

South Africans so served grew from 50% to 80%; in the "banked" category 

(more traditional but including new devices), the percentage 

grew from 46% to 75%. 

The stokvel (savings clubs) market is estimated at R44-billion and 

developing products for this market could be a lucrative outlet for 

South African financial services companies. 


Banking Association South Africa: www.banking.org.za 

Financial Services Board: www.fsb.co.za 

JSE Limited: www.jse.co.za 

105 


OVERVIEW 

Development finance and 

SMME support 

Studies are showing that township markets are much bigger than previously thought. 

A 

measure of the South African government's awareness of 

the importance of small, medium and micro enterprises 

to the nation's economy is the creation of a new ministry 

to cater for and promote SMMEs, the Department of Small 

Business Development. 

President Jacob Zuma announced in his State of the Nation address 

in 2016 that 30% of the state's budget for buying goods and 

services would be allocated to SMMEs, co-operatives, rural and 

township businesses. 

A Black Business Supplier Development Programme (BBSDP) has 

been launched and the Department of Small Business Development 

will supply business training, grants and co-funding together with 

municipalities to create business infrastructure for small businesses. 

National Treasury has allocated R3-billion to the Department of 

Small Business Development for mentoring and training and a tax 

exemption for small businesses with an annual turnover below R335 

000 has been introduced. 

A key agency in the promotion and improvement of SMMEs is 

the Small Enterprise Development Agency (Seda), which reports to 

the DSBD. In a recent publication, Seda reported that the number of 

SMMEs in South Africa increased in the last seven years by only 3%, 

from 2.18-million in 2008 to 2.25-million in 2015. The national GDP 

grew by 14% in the same period. 

Of the 2.2-million SMMEs in South Africa, most (nearly a million) 

are active in the wholesale and retail sector and the 

accommodation sector. 

Recent studies have shown that South Africa's townships represent a 

market that is far more substantial than was previously believed. The CEO 

of Minanawe Marketing, GG Alcock, told the FMCG Insights Conference 

in May 2016 that what he called the "invisible market" was worth 

R10-billion. Alcock was quoted in the Sunday Times saying that a 

particular fast-food operator made R50 000 per day from three outlets 

in a Johannesburg township. 

A survey by the Sustainable Living Foundation showed that the 

number of informal businesses in a township in the Western Cape 

grew from 879 in 2010 to 1 798 in 2015. 


Government departments 

will increase procurement 

from SMMEs. 

Support 

Every state institution has some 

programmes devoted to promoting 

small business, and most financial 

institutions have special 

desks devoted to SMMEs. 

One of the most influential 

institutions is the Industrial 

Development Corporation, 

which controls billions of rands 

that it makes available through 

seven funds. This can take the 

form of loans (in targeted sectors 

or to groups such as youth or 

women) but the IDC often takes a 

stake in businesses as well. 

Many of the support agencies, 

such as Seda, offer non-financial 

help only as well as providing advice 

in the drafting of business 

plans, marketing strategies and 

in skills training, although that 

help may include informing small 

business owners how to apply for 

financing and where to go for it. 

Provincial governments and 

municipalities are obliged to 

promote procurement policies 


OVERVIEW 

that support small businesses. 

Regional bodies such as the 

Eastern Cape Development 

Corporation also play a major 

role in this regard. 

The Northern Cape 

Department of Finance, 

Economic Development and 

Tourism (DEDT) has a unit devoted 

to product development and 

it channels funds into promising 

small enterprises, particularly in 

the manufacturing sector. 

The Development Bank of 

Southern Africa (DBSA) set aside 

R170-million for 734 SMMEs in 

2015. The DBSA is responsible for 

administering the national Jobs 

Fund. As at the end of March 2016, 

the Jobs Fund had disbursed R3.2- 

billion in grant funding to implementing 

projects, which had leveraged 

a further R6.4-billion from 

project partners. 

The national government 

has created a financial agency 

devoted to the development 

of SMMEs. The Small Enterprise 

Finance Agency (Sefa) is now doing 

the work previously done by 

three separate bodies and aims to 

get loans out to small businesses 

as quickly as possible. In 2014/15, 

Sefa achieved its highest-yet level 

of funding at R446-million. Sefa's 

loan book shows 41% of funding 

going to construction projects 

with manufacturing in second 

place at 14%. 

A private-public joint initiative, 

which holds promise for the 

financing of the SMME sector, is 

an SMME Fund, which will receive 

equal inputs from private-sector 

investors and government of R1.6- 

billion. The fund hopes to attract 

investors so that a big fund can 

be created, which will give the sector stability. The fund will incentivise 

investments in companies that are owned by black entrepreneurs. 

Seda has 42 incubation centres in South Africa under its Seda 

Technology Programme (STP). An example is the Zenzele Technology 

Demonstration Centre, a project that helps small-scale miners and mineral 

processors to create viable businesses. 

Anglo America’s Zimele fund has hub managers, who support small 

business in the downstream sectors relevant to the resource mined by 

the Anglo subsidiary. The Thermal Coal Hub and the Platinum Hub are 

two examples. The Mondi Zimele Hub in Piet Retief supports businesses 

in the supply chain and forestry. 

Another company supporting SMMEs through their buying chain 

is Woolworths, which is funding the NGO TechnoServe to ensure that 

small tomato growers can grow produce that will meet the demanding 

standards of the retailer, and to help them expand production. A regular 

supplier to Woolworths – Qutom – assists with the project. 

Business Partners' Franchise Fund amounts to R107.03-million and 

consists of R48.65-million from National Treasury’s Jobs Fund (R38.92- 

million for financing and R9.73-million for technical assistance), as well 

as R58.38-million from Business Partners Limited. 

All of the major banks have SMME offerings. Absa Bank’s SME Fund 

is driven by its Small Business Division and the Enterprise Development 

unit. Absa's SME Fund is available to fund projects from R5 000 to R3- 

million, and it can be given to start-ups or existing businesses. The 

Absa Development Credit Fund, a partnership with the United States 

Development Credit Authority, is another avenue for entrepreneurs. 

Standard Bank’s Community Investment Fund (CIF) initiative extends 

loans to informal businesses. The CIF has distributed more than R7-million 

to more than 630 businesses through its six funds in three provinces. 

The Masisizane Fund makes loan financing available in sectors such 

as agriculture and agri-processing, commercial, supply chain and manufacturing. 

It also offers training and technical support as well as funding 

to help businesses to comply with legislation. 

The Vumela Enterprise Development Fund of First National Bank is 

available to small businesses. FirstRand has put R186-million into the fund 

and, to date, it has invested R50-million in small businesses that have shown 

potential for growth. 


Development Bank of Southern Africa: www.dbsa.org 

National Department of Small Business Development: 

www.dsbd.gov.za 

Small Enterprise Development Agency: www.seda.org.za 

Small Enterprise Finance Agency: www.sefa.org.za 

107 


LISTING 

South African National Government 

An overview of South Africa’s national government departments. 

www.gov.za 

President 

Address: Union Buildings, Government Avenue, Arcadia, Pretoria 0001 

Postal address: Private Bag X1000, Pretoria 0001 

Tel: +27 12 300 5200 

Fax: +27 12 323 8246 

Website: www.thepresidency.gov.za 

Website: www.economic.gov.za 

Deputy President 

Address: Union Buildings, Government Avenue, East Wing, 

1st Floor, Arcadia, Pretoria 0001 


Tel: +27 12 300 5200 

Fax: +27 12 323 8246 


Minister in the Presidency 

Address: Union Buildings, Government Avenue, East Wing, 

1st Floor, Arcadia, Pretoria 0001 


Tel: +27 12 300 5200 

Fax: +27 12 300 5795 


Dept of Agriculture, Forestry and Fisheries 

Address: No 20, Agriculture Place, Block DA, 1st Floor, cnr Beatrix Street 

and Soutpansberg Road, Arcadia, Pretoria 

Postal address: Private Bag X250, Pretoria 

Tel: +27 12 319 7319 

Fax: +27 12 319 6681 

Website: www.daff.gov.za 

Department of Arts and Culture 

Address: 10th Floor, Kingsley Centre, 481 corner Steve Biko & Stanza 

Bopape streets, Arcadia, Pretoria 0001 


Tel: +27 12 441 3000 | Fax: +27 12 440 4485 

Website: www.dac.gov.za 

Department of Basic Education 

Address: Sol Plaatje House, 222 Struben Street, Pretoria 0001 

Postal address: Private Bag X9034, 8000 

Tel: +27 12 357 3000 

Fax: +27 12 323 5989 

Website: www.education.gov.za 

Department of Communications 

Address: Tshedimosetso House, 1035 Frances Baard (Cnr Festival 

Street), Hatfield, Pretoria 0001 


Tel: +27 12 473 0000 

Fax: +27 12 462 1646 

Website: www.doc.gov.za 

Department of Cooperative Governance and 

Traditional Affairs 

Address: 87 Hamilton Street, Arcadia, Pretoria 0083 


Tel: +27 12 334 0705 

Fax: +27 12 326 4478 

Website: www.cogta.gov.za 

Department of Correctional Services 

Address: 123 Poyntons Building, West Block, 

cnr Schubart and Church streets, Pretoria 0001 


Tel: +27 12 307 2934/2884 

Fax: +27 12 323 4111 

Website: www.dcs.gov.za 

Department of Economic Development 

Address: Block A, 3rd Floor, 77 the dti Campus, cnr Meintjies & 

Esselen streets, Sunnyside, Pretoria 0001 


Tel: +27 12 394 1006 

Fax: +27 12 394 0255 

Website: www.economic.gov.za 


LISTING 

Department of Defence 

Address: cnr Delmas Avenue & Nossob St, Erasmuskloof, Pretoria 0001 


Tel: +27 12 355 6101 | F ax: +27 12 347 0118 

Website: www.dod.mil.za 

Department of Energy 

Address: 192 cnr Visagie and Paul Kruger St, Pretoria 0001 


Tel: +27 12 406 8000 

Fax: +27 12 319 6681 

Website: www.energy.gov.za 

Department of Environmental Affairs 

Address: Environment House, 473 Steve Biko and Soutpansberg Road, 

Arcadia, 0083 


Tel: +27 12 310 3537 | Fax: +27 086 593 6526 

Website: www.environment.gov.za 

Department of Finance (National Treasury) 

Address: 40 WF Nkomo Street, 

Old Reserve Bank Building, 2nd Floor, Pretoria 


Tel: +27 12 323 8911 | Fax: +27 12 323 3262 

Website: www.treasury.gov.za 

Department of Health 

Address: 20th Floor, Civitas Building, cnr Struben and Andries Streets, 

Pretoria 0001 


Tel: +27 12 395 8086/80 | Fax: +27 12 395 9165 

Website: www.doh.gov.za 

Department of Higher Education 

and Training 

Address: 123 Francis Baard Street, Pretoria 0001 


Tel: +27 12 312 5555 

Fax: +27 12 323 5618 

Website: www.dhet.gov.za 

Department of Home Affairs 

Address: 909 Arcadia Street, Hatfield 0083 


Tel: +27 12 432 6648 | Fax: +27 12 432 6675 

Website: www.dha.gov.za 

Department of Human Settlements 

Address: Govan Mbeki House, 240 Justice Mahomed, Sunnyside, Pretoria 0001 


Tel: +27 12 421 1310 | Fax: +27 12 341 8513 

Website: www.dhs.gov.za 

Department of International Relations and 

Cooperation 

Address: OR Tambo Building, 460 Soutpansberg Road, Rietondale, 

Pretoria 0001 


Tel: +27 12 351 1000 | Fax: +27 12 329 1000 

Website: www.dirco.gov.za 

Department of Justice and Constitutional 

Development 

Address: Salu Building, 316 cnr Thabo Sehume and Francis Baard 

Streets, Pretoria 0001 


Tel: +27 12 406 4669 | Fax: +27 12 406 4680 

Website: www.doj.gov.za 

Department of Labour 

Address: 215 Laboria House, cnr Francis Baard and 

Paul Kruger Streets, Pretoria 0001 


Tel: +27 12 392 9620 | Fax: +27 12 320 1942 

Website: www.labour.gov.za 

Department of Military Veterans 

Address: 328 Festival Street, Hatfield, Pretoria 0001 


Tel: 080 232 3244 (SA only) 

Website: www.dmv.gov.za 

Department of Mineral Resources 

Address: 70 Meintje Street, Trevenna Campus, Sunnyside 0007 


Tel: +27 12 444 3000 | Fax: +27 86 624 5509 

Website: www.dmr.gov.za 

Department of Police (Civilian Secretariat for 

Police Service) 

Address: Wachthuis Building, 7th Floor, 231 Pretorius Street, Pretoria 0001 


Tel: +27 12 393 2800 | Fax: +27 12 393 2812 

Website: www.saps.gov.za 

109 


LISTING 

Department of Public Enterprises 

Address: Infotech Building, 1090 Arcadia Street, Hatfield, Pretoria 0001 

Postal address: Private Bag X15, Hatfield 0028 

Tel: +27 12 431 1000 

Fax: +27 12 431 1039 

Website: www.dpe.gov.za 

Department of Public Service and 

Administration 

Address: Batho Pele House, 116 Johannes Ramakhoase Street, Pretoria 


Tel: +27 12 336 1700 

Fax: +27 12 336 1809 

Website: www.dpsa.gov.za 

Department of Public Works 

Address: 7th Floor, CGO Building, cnr Bosman and Madiba Streets, 

Pretoria Central 


Tel: +27 12 406 21978 

Fax: +27 086 276 8757 

Website: www.publicworks.gov.za 

Department of Rural Development and 

Land Reform 

Address: 184 Old Building, cnr Jeff Masemola 

and Paul Kruger Streets, Pretoria 0001 


Tel: +27 12 312 9300 

Fax: +27 12 323 3306 

Website: www.ruraldevelopment.gov.za 

Department of Science and Technology 

Address: DST Building, Building No 53, CSIR South Gate Entrance, 

Meiring Naude Road, Brummeria, Pretoria 0001 


Tel: +27 12 843 6300 

Fax: +27 12 349 1041/8 

Website: www.dst.gov.za 

Department of Small Business Development 

Address: The dti, Block A, 3rd Floor, 77 Meintjies Street, Sunnyside, 

Pretoria 0001 


Tel: +27 12 394 1006 

Fax: +27 12 394 1006 

Website: www.dsbd.gov.za 

Department of Social Development 

Address: HSRC Building, North Wing, 134 Pretorius Street, Pretoria 0001 


Tel: +27 12 312 7479 | Fax: +27 086 715 0829 

Website: www.dsd.gov.za 

Department of State Security 

Address: Bogare Building, 2 Atterbury Road, Menlyn, Pretoria 0001 

Postal address: PO Box 1037, Menlyn 0077 

Tel: +27 12 367 0700 | Fax: +27 12 367 0749 

Website: www.ssa.gov.za 

Department of Sport and Recreation 

South Africa 

Address: Regent Place, 66 cnr Madiba and Florence Ribeiro Street, 

Pretoria 0001 


Tel: +27 12 304 5000 | Fax: +27 12 323 7196 / 086 644 9583 

Website: www.srsa.gov.za 

Department of Tourism 

Address: 17 Trevena Street, Tourism House, Sunnyside, Pretoria 0001 


Tel: +27 12 444 6780 | Fax: +27 12 444 7027 

Website: www.tourism.gov.za 

Department of Trade and Industry 

Address: The dti, 77 Meintjie Street, Block A, Floor 3, 

Sunnyside, Pretoria 0001 


Tel: +27 12 394 1568 | Fax: +27 12 394 0337 

Website: www.thedti.gov.za 

Department of Transport 

Physical address: Forum Building, 159 Struben Street, 

Room 4111, Pretoria 0001 


Tel: +27 12 309 3131 | Fax: +27 12 328 3194 

Website: www.transport.gov.za 

Telecommunications and Postal Services 

Address: Iparioli Office Park, 399 Jan Shoba Street, 

Hatfield, Pretoria 0001 


Tel: +27 12 427 8000 

Fax: +27 12 427 8016 

Website: www.dtps.gov.za 


110

LISTING 

Department of Water and Sanitation 

Address: Sedibang Building, 185 Frances Baard Street, 

Pretoria 0001 


Tel: +27 12 336 8733 

Fax: +27 12 336 8850 

Website: www.dwa.gov.za 

Department of Women 

Address: 36 Hamilton Street, Arcadia Pretoria 0001 


Tel: +27 12 359 0000 

Fax: 086 765 3365 

Website: www.women.gov.za 

National coat of arms 

The national coat of arms was adopted on 27 April 2000. It is constructed in two circles, which 

are described as the circle of foundation and the circle of ascendance. 

Circle of foundation 

Shield – The two Khoisan figures on the shield are taken from a Bushman rock 

painting known as the Linton stone, and represent the common humanity and 

heritage of South Africans. Depicted in an attitude of greeting, the figures 

symbolise unity. Spear and knobkierie – Together, these objects symbolise 

defence and authority, but the flat angle at which they lie symbolises peace. 

Wheat – The ears of wheat, as emblems of fertility, represent germination, 

growth and the development of potential, as well as nourishment 

and agriculture. Elephant tusks – Elephants symbolise wisdom, strength, 

power, authority, moderation and eternity, and the use of tusks is a tribute 

to the world’s largest land mammal, Loxodonta Africana, which is found in 

South Africa. Motto – Taken from the language of the now extinct /Xam 

Bushmen, the motto translated means ‘people who are different come 

together’ or ‘diverse people unite’. 

Circle of ascendance 

Protea – Protea cynaroides is the national flower of South Africa and is symbolic of the beauty of 

the country and flowering of the nation’s potential. Secretary bird – Characterised in flight, the 

secretary bird represents growth and speed, and is a symbol of divine majesty and protection. 

Rising sun – The sun is an emblem of energy and rebirth, a source of light and life appropriate for 

a country characterised by sunshine and warmth. 

111 


A REGIONAL OVERVIEW OF THE 

OVERVIEW 

EASTERN CAPE 

he TEastern Cape's long coastline of pristine 

beaches and rocky coves has long been one of 

South Africa's prime tourism spots. The same 

coastline is increasingly being seen as an asset 

in the Oceans Economy strategy that the country 

is rolling out. 

With three major ports, two of which house industrial 

development zones (IDZs), the province is well 

placed to leverage the advantages that will come 

with the promotion of several maritime sectors: 

trade, shipping repairs, training, logistics, oil and gas 

(and servicing of rigs and vessels) and aquaculture. 

National government aims for the Oceans 

Economy to contribute R29-billion to the national 

gross domestic product (GDP) by 2019 and a possible 

R177-billion by 2033. This is part of the broader 

National Development Plan (NDP). 

The potential the province offers is significantly 

bolstered by the shipping traffic that operates 

between Europe and Asia and the Far East. 

Logistically, the Eastern Cape is well served, with 

two major airports in Port Elizabeth and East London, 

and several facilities serving smaller towns such as 

Mthatha and Bhisho. Many farms and private game 

reserves also have airstrips. Another key logistics factor 

is the large new port at Ngqura, within the Coega 

IDZ, bringing to three the number of effective ports 

operating in the Eastern Cape. 

Key sectors 

Financial services, real estate and banking are the 

largest contributors to the province’s GDP. Absa, 

Nedbank, Standard Bank and Capitec Bank are 

among several big finance groups which have a 

strong presence in the Eastern Cape. 

The automotive industry provides 30% of the jobs 

in the province’s manufacturing sector and accounts 

for 32% of gross added value. Half of South Africa’s 

passenger vehicles are made in the Eastern Cape 

and 51% of the country’s motor exports originate 

here. The two biggest manufacturers are Volkswagen 

(Uitenhage) and Mercedes-Benz SA (East London). 

Ford makes engines in Port Elizabeth. 

General Motors South Africa (GMSA) no longer 

confines itself to manufacturing and assembling motor 

cars: GMSA is also a leader in producing catalytic 

converters. The Eastern Cape supplies 14% of the 

world market in catalytic converters. Among the 

other products exported by GMSA to Mexico, the US, 

Europe and Australia are seat belts and aluminium 

heat shields. 

The Industrial Development Corporation (IDC) 

has identified the automotive-parts sector as a 

specialist field in which South Africa may have a 

competitive advantage. The IDC has a 45% stake in 

Port Elizabeth-based Umicore Autocat South Africa. 


REGION 

The balance of the equity is held by Belgian concern, 

Umicore Group. 

The Coega IDZ outside Port Elizabeth has recently 

attracted massive investments from Chinese 

car manufacturers and has also attracted food and 

beverage manufacturers. The East London IDZ, located 

near the Mercedes-Benz SA factory, has an 

automotive focus. 

Tourism 

The five-star Boardwalk Hotel and Casino (Sun 

International) is a new offering. The large meeting 

hall that can host up to 1 700 delegates attracted the 

Democratic Alliance for its elective conference in 2015. 

Nelson Mandela Bay Metropolitan Municipality 

has established a conference bureau to assist in 

conference booking and planning. Smaller venues 

are situated in the city, surrounding game reserves, 

seaside resorts or luxury hotels. The Feather Market 

Convention Centre is a successful adaptation of 

a Victorian building for modern use. It is used to 

host gala dinners, exhibitions, product launches 

and concerts. 

The Eastern Cape has some unique natural advantages 

as a tourist destination. For example, the 

province covers seven different biomes (communities 

of plants and animals coexisting in a particular 

place), of which the grassland, Nama Karoo, thicket 

and savanna biomes are the most extensive. The 

Eastern Cape has three areas of endemism: Albany, 

the Drakensberg and Pondoland. 

Port Elizabeth has become synonymous with the 

Iron Man event and various sporting events and festivals 

are a strong aspects of Eastern Cape tourism. 

The National Arts Festival in Grahamstown is a key 

national festival. 

The Addo Elephant National Park is the jewel in 

The Eastern Cape's crown. It is a 164 000-hectare 

facility that attracts more visitors than East Africa’s 

Serengeti National Park. Plans to expand Addo Park 

from the sea to the Karoo are well advanced, and ultimately 

the intention is for it to become a megapark. 

Other national parks in the province are the 

Camdeboo National Park (around Graaff-Reinet 

and now home to some lions), the Mountain Zebra 

Park (near Cradock) and the Garden Route Park, a 

marine reserve. 

The Eastern Cape Provincial Government is responsible 

for 21 nature reserves and is planning 

to commercialise the administration of many of 

these facilities. 

The province also intends to target the improvement 

of roads to remoter parts of the province such 

as Baviaanskloof, Hole-in-the-Wall, Dwesa-Cwebe 

and Coffee Bay. 

Economic future 

Renewable energy projects are flourishing throughout 

South Africa, and the Eastern Cape has become 

one of the hotspots for this burgeoning industry, 

particularly with regard to wind power. 

Of the 17 projects approved in the province in 

terms of the national independent producers' programme, 

fully 16 are on-shore wind projects with 

large numbers of turbines dotting the landscape 

around the Tsitsikamma and Jeffrey's Bay and further 

north near the town of Bedford. More than 

1 500MW has so far been procured within the borders 

of the province, and there is potential for much 

more. Nationally, the programme has attracted 

about R200-billion in investment. 

The implementation of the Strategic Integrated 

Projects in the province is progressing well. The 

upgrades of the Mthatha Airport runway and apron 

are complete, with work nearing completion on the 

Mthatha Airport terminal building. The Mzimvubu 

Multipurpose Development Project is another development 

which comprises a multi-purpose dam to 

supply water for new irrigation development, hydropower 

generation and domestic water requirements 

in the Mzimvubu River Catchment. 

Capital Bhisho 

Population 6 916 200 (2015) 

Area 168 966km 2 

Premier Phumulo Masualle (ANC) 

Languages Afrikaans, English, Xhosa 


114

VISION 

"Well-governed, connected, 

green and innovative." 

MISSION 

• Promotes a culture of good governance; 

• Provides effective and efficient municipal services; 

• Invests in the development and retention of human 

capital to service the City and its community; 

• Promotes social and equitable economic development; 

• Ensures municipal sustainability and financial viability; 

Creates a safe and healthy environment; and 

• Places Batho Pele at the Centre of Service Delivery. 

www.buffalocitymetro.gov.za

FOCUS 

Improved 

infrastructure in 

Buffalo City 

An overview of three key infrastructure 

projects in Buffalo City. 

Cllr Xola Pakati, Executive 

Mayor of Buffalo City 

Metropolitan Municipality 

In line with its vision to promote 

social and equitable economic 

development, Buffalo 

City Metropolitan Municipality 

(BCMM) has completed (and is 

currently busy with) a number 

of key projects in the metro. 

Three of these projects are 

detailed below. 

Flow (ADWF) capacity of the existing Quinera Wastewater Treatment 

Works from 6ML/d to 18ML/d. 

The second phase of the project comprised the installation and 

commissioning of various mechanical equipment supplied under 

Phase 1. It also included the construction of a new substation building 

and alterations to the existing buildings. 

The works undertaken during this contract included: 

• Construction of a new substation building 

• Construction of a paved access road 

• Construction of a water reticulation network 

• Concrete demolition and repairs to existing aerator basin 

• Installation and commissioning of mechanical equipment 

(supplied under Phase 1) 

• Process commissioning of the plant 

• Electrical and electronic works 

Employment opportunities / beneficiaries 

The project maximised the use of local labour from the nearby 

Mzamomhle and greater Gonubie area. About 88 000 of the approximately 

122 000 man-hours invested in Phase 2 of the project 

Upgrading of the Quinera 

Wastewater Treatment Works 

(Phase 2) 

The objective of this project 

was to provide additional treatment 

capacity in the Quinera 

Wastewater Treatment Works to 

cater for future development in 

the Quinera and Beacon Bay areas. 

This was achieved by increasing 

the Average Dry Weather 


116 

www.buffalocity.gov.za

FOCUS 

comprised local labour. Operator training was also 

conducted where necessary for new equipment. 

Furthermore, construction of the new fully enclosed 

inlet works with an odour control system has 

minimised odour pollution in nearby Mzamomhle 

and Eastward-Ho residential areas. 

• Diversion of existing Telkom cables/ducts, 

electricity cables, water mains and other services 

to align with BCMM’s Water and Sanitation 

Masterplan and LSDFP. 

• Installation of sleeves under the proposed road 

for future services. 

• Installation of street lights. 

• Upgrading the intersection of Gullsway/Estuary 

Road. 

Employment opportunities 

During the three-year lifespan of this project 308 job 

opportunities were created. 

Enlargement and upgrading of the Gonubie 

Main Road 

Basil Read was contracted to do the following: 

• Widen the existing three lanes of Gonubie Main 

Road to four lanes from the Gulls Way intersection 

in the east to approximately 400m from the 

intersection with the N2 in the west. The entire 

four lanes will consist of a Continuous Reinforced 

Concrete Pavement (CRCP). 

• Construct four new junctions on this portion of 

road, consisting of three new roundabouts and 

one free-flow T-junction. 

• Create a new roundabout at the junction of 

Gonubie Main Road and the R102 (Meisies Halt) 

on the Western Side of the N2. 

• Develop footpaths (or cycle paths) with grassed 

edges to the shoulder breakpoint where 

specified. 

• Construct concrete V drains as required. 

• Ensure six lanes for approximately 150m west of 

Junction 5 to allow for future merge and a left 

turning by-pass. 

• Installation of Telkom ducts along the full length 

of the road. 

Provision of Internal Services and the 

Construction of Top Structures – Reeston 

This project forms part of the broader Duncan Village 

Redevelopment Initiative. Upon completion of the 

project, beneficiaries will be relocated from Duncan 

Informal Settlement to Reeston. The intention is to 

de-densify the Duncan village by moving some 

people out and later develop in the space available 

after relocation has taken place. Work started on 29 

April 2014, with the completion dates revised to 19 

October 2015 for Portion 1, and 20 November 2016 

for Portion 2. Portion 1 comprised 460 units while 

Portion 2 comprised 536 units, giving a project total of 

996 units. The completed work involved: cutting of 

platforms, completed foundation slabs, brickwork, 

roof structure, houses plastered (internal and external), 

glazing and doors, ceilings, internal plumbing 

and external plumbing, painting internal and 

external, and a Certificate of Completion. 

www.buffalocity.gov.za 



FREE STATE 

The centrally located Free State province shares 

borders with most of the other provinces and 

it has an international boundary with Lesotho. 

The provincial capital is only 150km from 

Maseru, the capital of the Mountain kingdom, and 

a good deal of trade happens along this corridor. The 

N8 highway also extends westwards to the Northern 

Cape capital of Kimberley, and a number of projects 

are planned to leverage the advantages of this busy 

route. The Orange and Vaal rivers define the southern, 

western and northern borders of the Free State. 

This centrally located province uses its position 

to its advantage. The Maluti-A-Phofung Special 

Economic Zone takes advantage of the strategic 

position Harrismith holds in the Free State's northeastern 

corner. The N3 highway carries huge volumes 

of cargo between Gauteng and the ports of 

KwaZulu-Natal so it is logical that the first focus of 

this SEZ is logistics. Over and above the Gauteng- 

KwaZulu-Natal route, another logistics axis extends 

between Harrismith and Bloemfontein for the 

delivery of products by rail and road. 

Special rules apply within an SEZ, including 

more liberal taxation for companies that invest in 

the zone (15% corporate tax applies, as opposed to 

28%). Other benefits include a building allowance, 

employment incentives and the fact that an SEZ is 

a customs-controlled area. 

Within the Maluti-A-Phofung SEZ, the Tshiame 

Food Processing Park has 60 000m² available for 

investors in food production, storage and distribution. 

To entice investors, services such as logistics 

will be provided as will warehousing, cold storage 

and manufacturing facilities. A strong focus is to try 

to get more local produce turned into products that 

can be exported. 

Two Chinese companies have undertaken to invest 

in the SEZ. Mediquip SA, a joint Chinese-South 

Africa venture, will make advanced medical equipment 

such as X-ray, ultra-sound and ECG machines 

at three manufacturing plants. A smart meter company, 

Shanghai-Xielin SA, has also booked space in 

the zone to make its devices. 

The varied provincial economy currently has 

3.2-million hectares of cultivated land, although the 

services sector is the biggest economic contributor. 

The Free State is experiencing considerable growth 

in the services sector. BPO and call centres are flour- 


118

REGION 

ishing in the province. Bloemfontein, the main city 

for economic activity, is at the core for Telkom’s 

switching centres. Various call centres are located 

in the city and have created many employment 

opportunities in the process. 

Two of the biggest projects in the manufacturing 

sector of the Free State have been in Sasolburg 

where Sasol's Wax plant expansion project and 

Omnia's new nitrate plant have, between them, 

made a significant impact on economic output. 

Altogether, Sasol's project will see R13.6-billion 

invested. Omnia put R1.4-billion into building a new 

nitrate facility in Sasolburg. 

Economy 

Mining and agriculture were for many decades the 

bedrock of the Free State economy. The northwestern 

part of the province sits on top of a rich 

gold-bearing reef more than 400km long, known 

as the goldfields region. 

South Africa is one of the world’s largest gold 

producers. Although gold mining volumes are 

down (and some towns are having to adjust to 

changed economic profiles), some mining companies 

such as Sibanye Gold are very active. Diamonds 

are also found in the south of the province. 

Large percentages of South Africa’s agricultural 

production, particularly grains, originate in the 

Free State. More than half the nation’s sorghum, 

nearly half the sunflower and more than 30% of 

all wheat, maize, potatoes and groundnuts come 

from the fertile plains of the western and northern 

Free State, while the valleys of the east produce 

almost all of South Africa’s cherries and asparagus. 

Livestock and flowers are other important agricultural 

products. 


Newly discovered natural gas and helium fields are 

said to have proven reserves of 25-billion-feet³ and 

Afrox has become the first of may soon be a string of 

investors in exploiting this resource near the towns 

of towns of Virginia, Welkom and Theunissen. This 

area used to be famous for the gold that lay under 

the surface of the soil. Afrox is a subsidiary of the 

Linde Group of Germany and has signed a deal 

with renewable energy company Renergen. A 

R200-million helium extraction plant will be built, 

to be ready in 2019. 

Sasolburg, an important petrochemical site in 

the Free State, recently fired up a new power plant 

running solely on gas. This power plant is the largest 

of its kind in Africa. The plant produces 140MW 

of power for the usage of Sasol’s chemical factory 

adjacent to the site, and feeds into the national grid. 

Eskom has a few projects lined up that will feed 

the national grid. The Ingula pumped storage project 

scheme, bordering KwaZulu-Natal, has started 

delivering power. Two dams are connected via 

underground turbines just short of 5km long, and 

water is pumped to the top of the mountain for 

use when power is urgently needed. 

Of the five projects that have been approved 

in the Free State so far in terms of the country's 

Renewable Energy Independent Power Producers 

Procurement Programme (REIPPP), two are small 

hydro projects. H1 Holdings and Building Energy 

are the drivers behind the 4.7MW Kruisvallei Project 

on the Orange River, which uses the flows from the 

Vanderkloof Dam to generate power. Solar projects 

include the 60MW Boshoff Solar PhotoVoltaic (PV) 

park (Sun Edison) and the 64MW Letsatsi Solar PV 

(Solar Reserve, Kensani Group and Intikon Energy). 

A solar park is planned for the Xhariep region, and 

the provincial government sees this as a driver of 

economic growth along the banks of the powerful 

Orange River. 

Capital Bloemfontein 

Population 2 817 900 (2015) 

Area 129 825km 2 

Premier 

Languages 

Elias Sekgobelo "Ace" Magashule 

(ANC) 

Afrikaans, English, Sotho, 

Tswana 


A REGIONAL OVERVIEW OF 

GAUTENG 

The smallest province of South Africa in area 

is also the most significant economically. An 

estimated 40.6% of South Africa’s manufacturing 

is done here, a third of its electricity, 

gas and water output, 41.9% of the country’s 

construction, 39.7% of its finance, real estate and 

business activity, 34.8% of its wholesale, retail, motor 

trade and accommodation, 32% of transport, 

storage and communication, and 38.8% of general 

government services. 

Gauteng comprises three large metropolitan municipalities 

in Tshwane (the administrative capital of 

South Africa and home to the diplomatic corps and 

many institutions of higher learning and research); 

Johannesburg (the capital of Gauteng Province, 

headquarters to many companies in a wide range of 

sectors, including the financial sector symbolised by 

the location of the JSE) and Ekurhuleni (the manufacturing 

hub of South Africa and host of the country's 

biggest airport, O.R. Tambo International). Plans are 

being investigated for the creation of an "aerotropolis" 

around the busy O.R. Tambo International Airport. 

The City of Ekurhuleni wants to leverage the benefits 

of being in an area where freight, logistics and every 

kind of transport intersect. 

The province has several outstanding universities, 

and the majority of South Africa’s research 

takes place at well-regarded institutions such as the 

Council for Scientific and Industrial Research (CSIR), 

the South African Bureau of Standards (SABS), Mintek, 

the South African Nuclear Energy Corporation 

(NECSA), the Human Sciences Research Council 

(HSRC) and a number of sites where the work of 

the Agricultural Research Council is done. 

In 2016 there were interesting developments in 

the political field in that two of the province's three 

metropoles (Tshwane and Johannesburg) came 

under the control of a coalition of political parties 

opposed to the ANC, the party that has formed the 

national government ever since 1994 (the first democratic 

election) and had control of most provinces 

and cities across the country. Most commentators 

were impressed with the manner in which power 

switched from the party of liberation to the opposition, 

a reflection on the strength of the country's 

democratic institutions. 

The province's gross domestic product (GDP) is 

R811-billion, which is nearly 34% of South Africa's 

and about 10% of the GDP of Africa. 


120

REGION 

Key sectors 

The leading economic sectors, as defined by 

the Gauteng Growth and Development Agency 

(GGDA), are finance (21% of provincial GDP), manufacturing 

(19.7%), government services (15.7%) and 

trade (12.8%). 

Most of the major banks are positioned around 

Johannesburg (which is home to Africa’s largest 

stock exchange, the JSE), and the finance and business 

services sector is a key focus in the provincial 

economy. Many international corporates such as 

Citibank, Microsoft and McDonald’s are headquartered 

in the province, as it is seen as the commerce 

capital and the gateway to Africa. 

Media services in Gauteng are extensive. South 

Africa’s national broadcaster is based there, as are 

many popular radio stations and large publishing 

houses. Gauteng has a highly competitive newspaper 

market which includes local and national 

publications such as the Sunday Times, the Sowetan, 

The Star, Rapport and also the Mail & Guardian. 

Gauteng has a varied manufacturing sector, from 

heavy-steel, automotive assembly to the food and 

beverages industry as well as light commercial and 

industrial activity. Key food and beverage brands are 

in operation around Gauteng. Nestlé and Pioneer 

Foods have spent millions on new developments 

and improvements. RCL, one the country’s leaders 

in poultry production, has 18 farms and two feed 

mills in the province. 

Companies such as Kimberly-Clark, Proctor 

& Gamble, ArcelorMittal, Transnet Engineering 

and Aspen all have manufacturing facilities in 

Gauteng Province. The manufacturing sector in 

Gauteng employs 600 000 people in more than 

9 000 enterprises. 

Gauteng’s contribution to the country’s gold 

and diamond production is still significant, and the 

province’s mines account for about 21% of employment 

in the sector nationally. The other primary 

sector, agriculture, contributes little to the provincial 

GDP but there are important districts such as 

Delmas, Cullinan, Krugersdorp, Bronkhorstspruit 

and Heidelberg where a variety of crops are cultivated. 

Large maize- and grain-farming enterprises 

are found in the western and southern parts of the 

province. Other products produced in large volumes 

are vegetables, fruit, dairy, poultry and eggs. 


Gauteng's infrastructure and transport are vital to its 

economic health. The multi-year Gauteng Freeway 

Improvement Project has widened roads and improved 

the connections between parts of the province 

but there is still controversy over the method 

of payment, ie tolling. 

The Gautrain has been an enormous success: 

based on the connection to O.R. International 

Airport, the high-speed train also links Pretoria and 

Johannesburg. User numbers have been so good 

that a contract went out in 2016 to supply 48 additional 

coaches for the service, which is also set to be 

expanded by a further 200km. Property prices near 

to Gautrain stations have shown steady increases, 

and whole new property developments have been 

based on proximity to the rail line. 

Apart from the "aerotropolis" concept, development 

at Gauteng’s other airports is also taking place. 

These include a mixed-use development (Lanseria) 

and an upgrade intended to make Wonderboom a 

suitable site for freight movements. 

The Top 20 Priority Township programme aims to 

uplift the economies of targeted townships. Social 

assistance and the provision of improved services are 

among the first steps in this programme. 

A green economic development strategy has 

been developed for the province, intended to turn 

the challenge of climate change into an opportunity. 

Projects include energy from waste, food security, 

waste sorting in informal settlements and creating 

incentives in the solar industry. 

Capital Johannesburg 

Population 13 200 300 (2015) 

Area 18 178km 2 

Premier David Makhura (ANC) 

Languages 

Afrikaans, English, Sesotho, 

Zulu 


PROFILE 

City of Ekurhuleni 

Ekurhuleni, home to Africa's manufacturing hub, makes a significant 

contribution to the economy of Gauteng Province. 

Economic overview 

The City of Ekurhuleni is located within a province 

that has a fast-growing population – Gauteng 

Province. The province is one of the four largest 

economies in Africa, contributing over 35% to South 

Africa’s gross domestic product. 

Ekurhuleni’s economy contributes 18% to Gauteng’s 

GDP and 6.5% to SA’s GDP. The city’s manufacturing 

sector alone contributes gross value add of 

R143-3billion and R351-billion to the provincial and 

national economies respectively. The manufacturing 

sector is a major contributor to the city’s economy 

at 22%. The sector contributes 17% to the national 

economy. 

Investment destination of choice 

The city has defined an inclusive and broad-based 

Growth and Development Strategy (GDS 2055), 

anchored on five pillars: 

1. Re-urbanise – achieve sustainable urban 

integration 

2. Re-industrialise – achieve job-creating economic 

growth 

3. Re-generate – achieve environmental well-being 

4. Re-mobilise – achieve social empowerment 

5. Re-govern – achieve effective cooperative 

governance 

The City of Ekurhuleni has received the highest 

investment grade rating from Moody’s Investors 

Services, affirming the prudent management of the 

city’s finances. 

Moody’s placed Ekurhuleni at Aaa.za/Prime-1 national 

scale rating, a four-notch upgrade from a previous 

rating of A1.za/Prime-1. The city also received a 

global scale rating of Baa2/Prime-2. The good credit 

profile, in terms of Moody’s, means that Ekurhuleni 

has an “extremely strong” capacity to meet its financial 

commitments. This allows Ekurhuleni to raise 

debt at favourable rates, putting less onerous debt 

repayment costs on residents. 

This rating makes it easier for the city to compete 

in the international bond markets as well as other 

project finance and investment opportunities to 

address infrastructure funding. The rating reflects 

the city’s prudent financial management, which 


122

PROFILE 

Executive Mayor, Cllr 

Mzwandile Masina 

also saw it awarded two consecutive clean audits. 

Ekurhuleni is rated at the high end of the range of 

South African municipalities. The municipal debt 

and debit service levels are relatively lower than 

the median of rated metropolitan municipalities. It 

notes the city’s diverse and resilient industrial base 

stretching from Springs to Wadeville and Isando, 

and hosting world-class manufacturers of glass, 

consumer goods and steel. 

Manufacturing sector 

Ekurhuleni’s manufacturing sector remains one 

of the important sectors for employment alongside 

trade, finance and community services. The 

sector contributed 18% to total employment 

in Ekurhuleni by 2012 but has seen a decline in 

recent years. 

The Revitalisation of the Manufacturing Sector 

flagship project is aimed at re-industrialising the 

city’s economy to become a more sustainable 

economy by 2055. The PRASA/Gibela rolling stock 

manufacturing project in Dunnottar, which will see 

the local production of some 3 600 locomotives, 

is one of the Strategic Urban Developments in the 

city. The City of Ekurhuleni has already approved 

the leasing of 288 hectares of land for the project. 

Investment facilitation 

The city has an Investment and Development 

Facilitation Strategic Policy Framework, which has 

been developed to improve turnaround times in 

facilitating and decision-making on investment 

and development applications, thus improving the 

city’s investment-friendly environment. 

The city boasts a business and investment onestop 

shop established within the city’s aerotropolis 

core. The Ekurhuleni Business Facilitation Network 

is situated in Kempton Park and houses the business 

centre to support local enterprise development 

and the investment centre (EIC). 

The Ekurhuleni Investment Committee meets 

twice a month to appraise and provide technical 

support including pre-application support to 

mega investment and development applications. 

The EIC also provides aftercare to newly established 

and existing businesses within the 

city. The centre collaborates with various 

provincial and national departments to provide 

unmatched facilitation of investments and 

developments within the city and support to 

local businesses. 

CONTACT INFO 

Ekurhuleni Investment Centre 

Tel: +27 11 999 3516 / 20 

Email: eic@ekurhuleni.gov.za 

Website: ekurhuleni.gov.za 


FOCUS 

Building Africa's first aerotropolis 

The City of Ekurhuleni, home to O.R. Tambo International Airport, Africa’s largest and 

busiest airport, is all set to become the continent’s first aerotropolis. 

As a flagship project of Ekurhuleni, development of the aerotropolis 

(first announced in 2011) leverages public and private 

sector investment at the airport and in its surrounds. The 

aerotropolis is cleared to become a high-activity node within 

the Gauteng province, of similar scale to the inner cities of Johannesburg 

and Tshwane, positioning Ekurhuleni as having a true airport city 

economy. Ekurhuleni is already considered the aviation, logistics and 

manufacturing hub of Africa, with O.R. Tambo International Airport 

as Africa’s most strategic airport and the unrivalled gateway to the 

continent. Formation of the aerotropolis will enable Ekurhuleni to 

become a genuine terminal city, with air, rail and road networks aiding 

its economic development. That development is outlined in the city’s 

30-year Ekurhuleni Aerotropolis Master Plan (EAMP), a wide-ranging 

economic development strategy. 

A strategic roadmap, the EAMP has already produced a five-year 

plan outlining immediate deliverables and 109 key projects. The EAMP 

has identified a range of opportunities to accelerate upstream and 

downstream economic activities that rely on just-in-time airport connectivity. 

Each of the targeted industries has a function within the 

aerotropolis and varying levels of interaction and reliance on airport 

connectivity. 

To date, the Ekurhuleni 

Investment Centre has registered 

and facilitated over 12 large-scale 

projects that are valued at billions 

of rands, and which have the potential 

to create approximately 

287 000 jobs over the next 15 

years. To enable development 

in the City, there will also be 

a release of significant number 

of strategic land parcels. 

Furthermore, Ekurhuleni is working 

with the Gauteng Provincial 

Government to leverage its two 

Special Economic Zone licences. 

Key industries for the aerotropolis 

development are: 

• Aerospace manufacturing and 

aviation 

• Logistics and distribution 

• Manufacturing and high tech 

• Health and life sciences 

• Agri-business and food 

processing 

• Natural resources and energy 

• Education and skills training 

• Tourism and culture 

• Retail 

• Prolessiona I services, banking 

and public administration 

For more information visit our 

website or email the investment 

centre. 


124

Come invest 

Ekurhuleni Aerotropolis

PROFILE 

Qhawe Quantity Surveyors 

No stranger to the construction and management consultancy field in 

South Africa, Qhawe Quantity Surveyors hardly needs an introduction. 

An artist's impression of the Esicabazini Youth Development Academy. 

Qhawe, which means hero in isiZulu, is recognised 

for the value and innovation it brings to every project 

undertaken. Founded in 2006, Qhawe is primarily 

a quantity surveying and project management 

firm although it offers a broad range of other built 

environment-related services. Managing Director 

Nomaqhawe Christel Mpala established the company 

when she realised there was a gap for a business 

offering proactive services in the South African 

built environment. 

Qhawe strives to meet the expectations of clients 

through provision of full turnkey solutions in the 

built environment and economically viable project 

engineering and construction consultancy services. 

Its services are offered to primarily the public and private 

sector, implementing agencies and NGO clients. 

An integrated and inclusive 

rural economy 

Qhawe has embarked on an initiative to aid in solving 

the scourge facing the country, that of rural 

communities that have struggled with limited 

access to quality nutrition and basic healthcare. 

Quality social services are key to giving people living 

in rural areas opportunities to find employment. 

By 2030 the National Development Plan (NDP) aims 

to ensure that rural communities enjoy better opportunities 

to participate fully in the economic, 

social and political life of the country and that 

those citizens who work and live in these areas are 

included in South Africa’s future development. 

People must have access to high-quality basic services, 

and rural economies must be supported by 

agriculture, mining, tourism, agro-processing and 

fisheries. Integration through land reform will be 

an important consideration, as will infrastructure 

development, job creation and poverty alleviation. 

People living in rural areas should have access to 

social and infrastructure services. 

It is in this light that Qhawe has partnered with different 

municipalities with the aim of establishing 

rural development and eradication of poverty. Two 

such rural developments that will attract investors 

into South Africa are: 


126

PROFILE 

• A proposal for local economic 

initiatives to eradicate 

poverty in the Hala 

area and the Engcobo Local 

Munincipality at large. 

• The Komalume Sustainable 

Village Mnini Development 

on the South Coast of 

Durban under eThekwini 

Metropolitan Municipality. 

Successfully 

completed projects 

Esicabazini Youth Development Academy: Qhawe 

worked as project manager and quantity surveyor 

for Esicabazini Youth Development Academy – a 

Department of Social Development project implemented 

under Umkhanyakude District Municipality. 

PRASA's National Station Improvement 

Programme: Qhawe provided quantity surveying 

services for the improvement of 10 stations. 

Renovations were done to Stanger, Burlington, 

Fynnland, Pinetown, Hammersdale, Verulam and 

four other stations. The project was completed on 

time and within budget. 

Before and after renovations for Johannesburg Social Housing Company. 

Intermediary School, Inyamazwe High School and 

an Early Childhood Development (ECD) programme, 

which saw the construction of 10 ECD centres in the 

uThukela region of KwaZulu-Natal. 

Qhawe has extended its services to property development 

and has started serving private clients and 

mixed-use developments. 

Kambo Business Square: The development valued 

at over R500-million will comprise a shopping centre, 

hotel, conference facilities, petrol station and truck 

stop as well as residential houses in Manguzi on the 

border of Mozambique. 

Johannesburg Social Housing Company (JOSHCO): 

In a project valued at R54-million, Qhawe changed 

the facade and interiors of dilapidated buildings as 

part of their conversion to social housing. 

Independent Development Trust: This is a longterm 

client and Qhawe has completed more than 

R500-million worth of projects for the organisation 

since 2009. These projects range from schools and 

clinics to service stations. 

Coega Development Corporation: Coega acts 

as an implementation agent for various government 

contracts related to infrastructure projects in 

the Eastern Cape and KwaZulu-Natal. Qhawe has 

participated in several Department of Education 

programmes as part of a R300-million portfolio. 

This include Mpumelelo Senior School, Bhevu 

Mnini Development: This project on the South 

Coast of KwaZulu-Natal is still in its infancy stages. 

The intention is to revamp the historical tourist hub 

by constructing a variety of buildings for use by 

locals and visitors. 

CONTACT INFO 

Head office: 78 Jupiter Road, 

Westville North, 3629 

Branch telephone numbers: 

Johannesburg: +27 11 791 6362 

Durban: +27 31 266 6619 

Nelspruit: +27 13 755 3292 

Email: noma@qhaweqs.co.za 

Web: www.qhaweqs.co.za 



KWAZULU-NATAL 

KwaZulu-Natal is famous for its tourism offering 

that ranges from the majestic Drakensberg 

mountains to the beautiful beaches along 

the Indian Ocean, but the province is also 

home to thousands of manufacturing concerns that 

play a major role in South Africa's economy. 

With two of the country’s busiest ports, Richards 

Bay and Durban, the province also plays a vital role 

in national logistics and international trade. 

Success in international trade relies on a developed 

transport and logistics infrastructure. The Dube 

TradePort (DTP) helps to drive economic growth. 

It is home to the King Shaka International Airport, 

an agricultural greenhouse, a cargo terminal and 

various other sections relating to trade, business and 

transport, all on 3 000 hectares of land just north 

of Durban. 

The airport itself has announced new international 

direct flights: 4.5-million passengers passed 

through the airport in 2014/15, almost 300 000 of 

whom were foreign visitors or tourists (Acsa). 

DTP has attracted a R2-billion foreign direct investment 

through Indian business conglomerate 

Action Group and is making a solid contribution to 

KwaZulu-Natal’s economy. 

The province has shown considerable growth in 

the business services, transport and retail sectors. 

Manufacturing in KwaZulu-Natal makes up almost 

a third of South Africa’s capacity. 

Key sectors 

Manufacturers such as Unilever, RCL and Clover 

have a big presence in KwaZulu-Natal. Illovo Sugar 

and the Tongaat-Hulett Group are international 

companies with substantial sugarcane holdings, 

manufacturing plants and downstream beneficiation. 

Tongaat is also a significant property developer 

in the province and is active in a number of 

large projects. 

The estimated export value of KwaZulu-Natal 

business in 2014 was R112.4-billion. Steel, iron and 

aluminium account for nearly a third of exports followed 

by metal products. The third sector making a 

big contribution is the automotive and automotive 

components sector, with about 18%. Chemicals is 

the other major export-driver. 

In the base-metals and metal products sectors, 

giant companies such as BHP Billitan, Hulamin, 

Arcelor Mittal and Assmang have a big presence 

in the province. Toyota and Bell Equipment are 

important companies in the automotive sector 

while the Engen Oil Refinery and dissolving pulp 


128

REGION 

manufacturer Sappi are among other strategically 

important entities in the provincial economy. 

Manufacturing contributes 21.5% of the gross 

regional product (GRP). In recent months Samsung 

Electrics has chosen the province as the site of a 

$20-million television factory, a Chinese company 

intends establishing a multi-billion-rand steel plant 

at Richards Bay and a pipe-manufacturing concern 

has put R300-million into a new plant. 

KwaZulu-Natal is a national leader in the forestry 

and paper sector. The forest-product export sector 

in South Africa is made up of paper (45.2%), solid 

wood (23.3%) and pulp (28.9%). Mondi and Sappi are 

both large international companies and the pulp and 

paper sector makes a direct contribution to South 

Africa’s balance of payments of R4.5-billion. 

Mpact, the paper manufacturing and plastics 

packager that was spun out of Mondi, invested a 

further R200-million in its waste paper and recycling 

operation at Empangeni. The company collects 

more than 450 000 tons every year. 

Tourism plays a vital role in the economy of 

the region, with the conference and events sector 

supported by excellent facilities. The jewel in 

the crown is the huge Albert Luthuli International 

Convention Centre Complex which hosts the annual 

tourism Indaba. 

The province's excellent climate lends itself 

to every kind of outdoor pursuit and its excellent 

beaches are always popular. Big sports events are 

regularly hosted in KwaZulu-Natal which has become 

something of a home to mass participation 

events such as the Comrades Marathon and Dusi 

Canoe race. The province has excellent game and 

nature reserves. 

Isimangaliso Wetland Park is a World Heritage Site 

and helps to fund 80 small businesses associated 

with its business as a tourist site. 

RBIDZ to the gas fields of Mozambique makes this 

a potentially giant project. 

An area of anticipated growth – and a focus of 

policy interventions – is in the marine manufacturing 

sector. Sectors such as oil and gas, ship-building and 

rig repair are being targeted. 

Strategies to grow the so-called Oceans Economy 

will dovetail with all of the plans to boost the capacity 

of the harbours at Durban and Richards Bay and 

to explore for gas and oil in the Indian Ocean. 

Ship-building and ship repairs is an existing industry 

but it is currently not very big. If oil rigs were 

to start visiting the KZN coastline on a regular basis, 

this industry would grow exponentially. 

The decision to build a cruise-ship terminal at 

the Port of Durban is a good example of the kind 

of decision that is nicely in line with an "Oceans 

Economy" approach. 

A bill was put before the provincial legislature 

in 2016 to bring into existence the KwaZulu-Natal 

Maritime Institute. This will be run out of the restructured 

Sharks Board and training programmes will be 

coordinated with Transnet to make sure that relevant 

courses are offered. Since 2012, 800 students have 

been studying maritime-related courses. 

In 2015 the Richards Bay Industrial Development 

Zone (RBIDZ) welcomed SPS Manufacturing (Pty) 

Ltd, a pipe manufacturer which will invest R300- 

million in uMhlathuze, creating 87 permanent jobs. 

The R1.5-billion Inkululeko Development Project, 

piloted within the Ndumo community, is an integrated 

multi-purpose and multi-sectoral initiative 

that includes constructing high-quality education 

centres, health services, modern roads and libraries, 

clean running water, sustainable livelihoods, 

job creation and community centres for vulnerable 

children and orphans. 


Energy is the focus of several initiatives in KwaZulu- 

Natal. With the announcement by national government 

of its support for major gas-to-power projects, 

the Richards Bay Industrial Development Zone is 

in line to host a large facility. The proximity of the 

Capital Pietermaritzburg 

Population 10 919 100 (2015) 

Area 94 361km 2 

Premier Willies Mchunu (ANC) 

Languages English, Zulu 



LIMPOPO 

Limpopo is a huge province that ranges 

across the north of South Africa and shares 

borders with Mozambique, Botswana and 

Zimbabwe. The Great North Road passes 

through the middle of the province, so places like 

Polokwane (the provincial capital) and Musina 

(on the northern border) are natural bases for 

logistics companies. 

The strategic value of these locations is being 

exploited through the creation of Special Economic 

Zones (SEZs). 

The province has wonderful natural resources, 

from coal, platinum and chrome to avocados, tomatoes 

and macadamia nuts. Wonderful vistas in 

very varied landscapes, golf estates and adventure 

tourism underpin the tourism industry. 

Limpopo’s national parks are among the country’s 

places to visit for international visitors and are 

among the most popular family holiday destinations 

for domestic tourists. 

Key sectors 

Subtropical fruit like mangoes, paw-paws, litchis, 

bananas and pineapples are in abundance in the 

province and make up the bulk of export income. 

Cattle, sunflowers, cotton, maize, peanuts, avocados, 

tea, tomatoes, citrus and macadamias are 

among Limpopo’s key agricultural resources. 

Mining is a key sector of the provincial economy. 

Limpopo has a very rich and varied mineral asset 

base. Platinum occurs on both limbs of the Bushveld 

Igneous Complex (BIC), and the Waterberg district is 

seen as the answer to South Africa's coal needs for 

the next several decades. 

The provincial government reports that the 

mining sector constituted 26% of Limpopo gross 

domestic product (GDP) in 2013. In 2015, a Mining 

Roundtable was held under the title "Limpopo's 

Minerals for a Broad-Based Industrialisation Agenda" 

and attended by 250 delegates from the mining 

sector, universities, NGOs and government. A key 

focus area is to try to ensure that 20% of procurement 

in the mining sector goes to small businesses 

and co-operatives. 

De Beers has approved a mining infrastructure 

expansion project at its diamond mine in Musina 

worth R163-billion. 

In August 2016, Unit 6 of the Medupi power station 

came on stream. The Medupi power station 

project is one of the biggest engineering projects 

undertaken in South Africa. Medupi is located in 

Lephalale in the far west of Limpopo, and next to an 

existing power station where coal is abundant. Unit 5 

is expected to come on stream in the first half of 2017. 

The De Hoop Dam across the Steelpoort River 

in the east of Limpopo has started supplying water 


130


REGION 

to rural communities who previously had to walk 

to rivers to fetch water. These communities in the 

Waterberg, Capricorn and Sekhukhune districts are 

beneficiaries of a vast project that will also deliver 

water to towns and mining operations in the area. 

More than a million people will get water from the 

dam, which cost approximately R3.4-billion to build. 

Economic zones 

In 2016 the national cabinet approved the Musina- 

Makhado Special Economic Zone (SEZ) located in 

the far north of Limpopo in the Vhembe region. The 

location of the Musina SEZ, with links to Zimbabwe, 

Botswana and Mozambique, promotes the Trans- 

Limpopo Spatial Development Initiative. Logistics 

will be one of the key focus areas of the SEZ. Other 

sectors will include agri-processing, energy and mineral 

beneficiation. De Beers' giant Venetia diamond 

mine is nearby. 

The national Department of Trade and Industry 

(dti) is the lead agent in SEZ creation, which in turn 

feeds into the national Industrial Policy Action Plan 

(IPAP). SEZs are designed to attract investment, 

create jobs and boost exports. The dti says that a 

consortium of Chinese investors, Sino, has agreed 

to put R40-billion into the Musina SEZ where they 

will operate the mineral beneficiation operations. 

A second application for an SEZ at Tubatse is 

pending. Tubatse is in the Sekhukhune District 

Municipality and hosts a number of mining operations. 

The SEZ in Tubatse will focus on the beneficiation 

of platinum group metals and miningrelated 

manufacturing. 

Tourism 

Limpopo has two transfrontier conservation parks, 

two World Heritage Sites, three biospheres, three 

national parks, 53 provincial nature reserves and 

more than 6 000 privately owned game farms. The 

Limpopo Environmental Management Act was 

drawn up to address specific provincial issues. 

The South African Golf Tourism Association says 

that up to 10% of visitors to the country are attracted 

by its golf courses, and Limpopo's offering has been 

extended and improved in recent years. At the highend 

of the luxury offering are the Zebula Golf Estate 

and Spa (west of Bela Bela) and the Legend Golf and 

Safari Resort. 

The growth of the Marula Festival, held annually 

in February in Phalaborwa, caters more to the 

local market. At least 13 000 litres of marula beer 

were brewed by the 13 co-operatives that participated 

and more than 14 000 people turned up for 

the outdoor music concerts that were a feature of 

the festivities. 

Limpopo Province has very varied tourism assets 

that include the bare bushveld of the north, 

misty mountains in the central highlands, hot 

springs, a unique cycad forest, great golf courses 

and the northern part of the Kruger National Park. 

The provincial government is committed to 

enhancing the value of Limpopo's two World 

Heritage Sites, Mapungubwe Heritage Site and 

Makapans Valley. 

Adventurous visitors can choose from off-road 

biking, hunting, elephant rides and tough 4x4 trails. 

A vast array of different cultures extend from the 

Rain Queen and her people in the central districts, 

to the myth-inspired art of the Venda in the north, to 

the bright geometric house designs of the Ndebele 

people in the Sekhukhune district. 

Although most of the province’s resorts and 

lodges are in private hands, the province has three 

national parks, and the provincial government runs 

54 nature reserves of different types. The combined 

land area of Limpopo's national, provincial and private 

game and nature reserves is 3.6 million hectares. 

The tourism sector in the province employs 

about 22 414 people. 

Capital Polokwane 

Population 5 726 800 (2015) 

Area 125 754km 2 

Premier Stanley Mathabatha (ANC) 

Languages Sesotho, Tshivenda, Xitsonga 


132

Polokwane Chamber 

of Business 

The Chamber seeks to support and develop local businesses 

and encourage investment in the city. 

PROFILE 

Vision 

To be the home that advocates 

the voice of business. 

Mission 

• To create value for members. 

• To unlock business opportunities 

for members. 

• To facilitate a platform for best 

business practice. 

• To promote sound governance 

principles by maintaining high 

business ethics. 

• To encourage socially responsible 

corporate citizens in business. 

• To provide a platform for dialogue and partnership 

within business and public sector. 

Policy 

The policy of the chamber is to, without reference 

to colour of skin, race, gender, culture or religious 

conviction: 

• Attend to the interests of its members as an 

a-political, non-racial organisation 

• Effect, maintain and promote an optimum free 

market system in a predominantly capitalist 

system 

• Promote and protect free enterprise and protect 

the interests of its members as business persons 

and to act as a representative for its members 

Strategy 

The overall strategy for 2016 is to: 

Polokwane Chamber of Business 2016 Exco. 

• Reposition the Chamber as a respected contributor 

to the Limpopo economy through active 

engagement of key stakeholders for the promotion 

of Chamber interests and benefits for its 

members. 

• Enhance value-add to its members through 

effective networking opportunities. 

• Engage on pertinent business issues within the 

province. 

• Enhance closer working relations between the 

Chamber and its members and stakeholders. 

CONTACT INFO 

Physical address: No 47, 19th Industria 

Street, Polokwane 

Tel: +27 15 297 8057 

Fax: 086 513 2644 / 015 297 8058 

Email: admin@pcob.co.za 

Website: www.pcob.co.za 


Smart City 

City of Polokwane vision is alive 

"The city has achieved consensus with the business community to find a way 

to unlock job opportunities, find smart ways to unlock economic growth 

using the land that the city owns, and effectively deal with illegal land use." 

- Executive Mayor Cllr Thembi Nkadimeng 

The City of Polokwane is one of the fastest 

growing in the north and is bustling with 

economic and business opportunities 

that have made it become the centre for 

regional economic development in the area. 

According to the Executive Mayor Cllr Thembi 

Nkadimeng, the municipal Council has successfully 

put in place measures to transform the institution 

into viable machinery to tackle ageing infrastructure, 

water and sanitation backlog, rural electrification 

and develop a solid maintenance programme for its 

infrastructure. 

She says there is significant progress underway 

to improve the total road network in the city. "Our 

commitment to development is unquestionable 

in this regard," she says, adding that the city continues 

to consistently invest in our people and service 

offerings in order to improve how we service our clients. 

The Integrated Rapid Transport System, aptly called 

"Leeto la Polokwane" is progressing very well. It is intended 

to provide transport infrastructure, increase 

utilization of public transport services and improve 

the image and acceptability of public transport. The 

extension of the Nl bypass also brings with it potential 

for investment opportunities. 

The city is hard at work to ensure that smart connectivity 

in the city is created to have access to broadband 

and Wi-Fi. 

The municipality will continuously implement the 

Smart City Concept in the other service delivery fields 

to create an encouraging environment for investment 

growth. "We have achieved consensus with the business 

community to find ways to unlock job opportunities, 

find smart ways to unlock economic growth using 

the land that the city owns and effectively deal with 

illegal land use," she says. 

The mayor says there is great potential for investment 

in central city property management and the 

entertainment sector. The arts theatre project also 

brings with it massive investment opportunities in 

the entertainment sector. The city centre requires 

revitalization and remodelling of business operations. 

"I invite potential investors to check out Polokwane 

for our offering and value proposition in line with our 

position on various investment opportunities that 

exist in the area."

Open for business 

The City of Polokwane welcomes enquiries from investors 

potentially interested in exploring opportunities in the vicinity. 

FOCUS 

Polokwane is the largest city in and regional 

capital of Limpopo Province. The city has 

all the infrastructure and facilities required 

for the successful operation of a business 

and is considered by many to be “the vibrant capital 

of the North”. 

Although the city is growing rapidly, vast tracts of 

industrial land and commercial spaces are still available 

for development. Some of the investment opportunities 

that are ripe for exploitation include: 

Services to the mining sector 

Polokwane is well-positioned as an operational base 

for suppliers to mining companies throughout the 

Province and in the wider region. A broad range 

of minerals and precious stones are mined in the 

Province and the commissioning of a new power 

station means that there are additional opportunities 

for alert suppliers. 

Agricultural services and 

agro-processing activities 

From the earliest days, agriculture has been a key pillar 

of the economy of the region and it still represents an 

important component of likely future developments 

for Polokwane-based food and beverage manufacturers 

and service providers. Related opportunities include 

milling of grains, packaging of fresh fruit, fruit and vegetable 

canning, processing of tomatoes, oil extraction 

from sunflower seeds and peanuts, meat processing 

and the production of marula and sorghum beer. 

Commercial possibilities 

Economic growth in Polokwane has contributed to 

population growth as more and more people move 

to the city to benefit from work opportunities and 

infrastructure. In turn, this presents numerous commercial 

and retail opportunities including extended 

banking services, the provision of office and related 

services, the sale of fast foods, telecommunication 

services, medical, transport and courier services to 

name a few. 

Franchise opportunities 

Keen entrepreneurs will be eager to investigate 

opportunities related to food-franchise services, 

the distribution of cosmetics, the distribution of 

educational aids, cleaning services, the supply of 

motor spares and franchised transport services. 

Tourism and adventure sports 

With its physical beauty, variety of wildlife and its 

proximity to Gauteng, Botswana, Mozambique and 

Zimbabwe, Limpopo has much to offer tourists. 

Polokwane would make a good base for any company 

interested in exploring tourism and travelrelated 

investment opportunities in the Province. 

Some of the opportunities that could be explored 

are: camping facilities, a quad-biking trail within 

easy proximity of the city, a cycle race or marathon, 

conferencing facilities and services aimed at 

business tourists. 

For information on these and other investment 

opportunities in Polokwane contact the City of 

Polokwane (the local municipality). More detail 

can be found at www.polokwane.gov.za. 



MPUMALANGA 

Mpumalanga means “the place where the 

sun rises” and the province lies north 

of KwaZulu-Natal and shares borders 

with Swaziland and Mozambique. It 

constitutes 6.5% of South Africa’s land area. In the 

north it borders on Limpopo, to the west Gauteng, 

to the south-west the Free State and to the south 

KwaZulu-Natal. The former capital Nelspruit has 

been renamed Mbombela. 

An ambitious plan to develop a Strategic 

Economic Zone (SEZ) at Nkomazi is under way. The 

area is close to both Mozambique and Swaziland 

and lies on the Maputo Development Corridor 

that links the economic powerhouse of South 

Africa (Gauteng) with the ports and gas supplies 

of Mozambique. 

The Nkomazi Local Municipality has earmarked 

land for the SEZ which will focus on logistics, beneficiation 

and agri-processing. There are tax advantages 

for investors in the SEZ and proximity to 

the Mozambican port of Matola would be a large 

benefit to anyone wanting to create a dry port or 

logistics base. 

Key sectors 

The climatic contrasts between the drier Highveld 

region, with its cold winters, and the hot, humid 

Lowveld allow for a variety of agricultural activities. 

More than 68% of Mpumalanga is used 

for agriculture. 

Crops include maize, wheat, sorghum, barley, 

sunflower seed, soya beans, groundnuts, sugar cane, 

vegetables, coffee, tea, cotton, tobacco, citrus, subtropical 

and deciduous fruit. A large proportion of 

South Africa's grain, citrus, sugar and soft fruits come 

from Mpumalanga. The province is one of the key 

exporters of macadamia nuts, a subsector that is 

growing at a remarkably fast pace. 

Forestry is extensive around Sabie. It is the site 

of one of South Africa’s largest paper mills, the 

Ngodwana mill owned by Sappi. 

Natural grazing covers approximately 14% of 

Mpumalanga. The main products are beef, mutton, 

wool, poultry and dairy. 

Extensive mining is done and minerals include 

gold, platinum group metals, silica, chromite, mag- 


136

REGION 

netite, zinc, antimony, cobalt, copper, iron, manganese, 

tin and many more. Gold was first discovered 

in Mpumalanga province in 1883 in the mountains 

surrounding what is now Barberton. 

Mpumalanga accounts for 83% of South Africa’s 

coal production; 90% of South Africa’s coal consumption 

is used for electricity generation and 

the synthetic fuel industry. Coal power stations 

are located close to the coal deposits. Sasol's coal 

liquefaction plant in Secunda creates petroleumfrom-coal. 

South Africa produces 75% of the world’s platinum, 

80% of its manganese, 73% of its chrome and 

45% of its vanadium. Mpumalanga has significant 

resources of each of these minerals, and several others. 

The Witbank coalfields are the most productive 

in Africa and the province lies at the southern end of 

the eastern limb of the Bushveld Igneous Complex. 

Chromite, magnetite and vanadium are found in 

significant quantities in the province. The ferroalloy 

industry is centred on the town of Middelburg 

Deposits of chromite, magnetite and vanadium 

in this area are the basis of the ferro-alloy complex 

in Witbank-Middelburg (in the Nkangala District 

Municipality) and Lydenburg (Mashishing). Nkomati 

Mine is South Africa's only pure-nickel operation. 

The province's coalfields are in the south and west 

of the province. 

Mining contributes 21.8% to provincial Gross 

Domestic Product (GDP). 


Mpumalanga aims to provide at least 2 000MW as 

part of the national Renewable Energy Independent 

Power Producers Procurement Programme (REIPPPP). 

The Boschejskop Hydro Dam project would achieve 

two goals – alleviate the water shortage in the provincial 

capital of Mbombela and provide 300MW 

of power. 

A private investor would be asked to do the 

feasibility study and then finance and construct the 

facilities with two future revenue streams in prospect: 

a water off-take agreement with Mbombela 

and the sale of electricity to the national power 

utility Eskom. 

Other projects suitable for public-private partnership 

include the construction of a solar park to 

power the Nkomazi Special Economic Zone and a 

wind power plant to be built at Sabie and Lydenburg. 

Investors are sought for the development of the 

Blyde River Tourism Cluster. More than a million visitors 

every year look into this awe-inspiring canyon, 

but they seldom stay for long. This project aims to 

give the visitor something to do and a closer look 

at the canyon via a cable-car trip to Blyde Lake. A 

related hotel and restaurant development (and a 

skywalk for another, adventurous, way of looking) 

are all part of the proposal, which could be parcelled 

out to a number of investors depending on their 

interest or speciality. 

Land is available for developers in the province's 

capital city of Mbombela to create an International 

Convention Centre. Conference delegates always 

like to be in nice places, and the selling point here 

would be to link the centre to the province's greatest 

tourism assets like the Kruger National Park, the 

Blyde River Canyon and God's Window. Space is also 

available for the construction of a related hotel and 

multi-purpose recreational facilities. 

There is relatively little agri-processing that takes 

place in the province, with most of the products being 

exported in their raw state. The Fresh Produce 

Market in Mbombela has been planned to accommodate 

investors who want to start factories to 

manufacture products such as juice, or packaging 

firms. Land has been bought and registered for the 

required use in Mbombela as the Mpumalanga 

International Fresh Produce Market. Investors in 

fresh produce are invited to be take advantage of 

Mpumalanga's superior fruit, vegetables and nuts. 

The 248ha site is near rail and road links and private 

investors are sought to be partners in building 

the top structure; services are being laid on by the 

province. 

Capital Mbombela 

Population 4 283 900 (2015) 

Area 76 495km 2 

Premier David Mabuza (ANC) 

Languages Ndebele, Swati, Zulu 


REGION 


NORTHERN CAPE 

The Northern Cape is the largest of South Africa’s 

provinces but has the smallest population. The 

Orange River is a great green lung that runs 

through the province, providing water for 

grape-growers and other irrigation projects, power 

through hydro-power and great opportunities for 

tourism activities like river rafting. Despite the vast 

distances, the province enjoys good infrastructure, 

a major positive factor in persuading investors in 

renewable energy to choose the province. 

Within the first four bidding periods of the 

national Renewable Energy Independent Power 

Producer Procurement Programme (REIPPPP), 92 

projects were approved – and 48 of these projects 

were in the Northern Cape. 

The province has many major attractions, including 

its vast, open spaces, unique vegetation – notably 

the beautiful spring flower spectacle that transforms 

a semi-desert landscape into one of striking 

colour and beauty – and the Kgalagadi Transfrontier 

Park, which is famous for its lions. 

The small eastern portion of the Northern Cape 

Province bordering the Free State is known as the 

Diamond Fields. Kimberley, which is also the capital 

of the Northern Cape and the location of the 

Kimberley Big Hole, is at the heart of the province’s 

diamond fields. There are several diamond-mining 

and historical attractions in Kimberley itself, including 

the Big Hole and Kimberley Mine Museum. These 

attractions make the Northern Cape an attractive 

destination for visitors. 

The province’s first university, Sol Plaatje, opened 

its doors in 2014 and is located close to Kimberley. 

The university is merging technikon courses with 

traditional university degrees in one department. 

It will add value to the Northern Cape economy 

and make a considerable contribution to the 

government-services sector. 

With extensive stock and vegetable farming land, 

agriculture is central to the Northern Cape economy, 

and mining remains very important. Livestock including 

sheep and goats form an important part of 

the economy, as does horse breeding. 

Major exports include fruit, especially table 

grapes, and meat from the sheep and goat farming 

in the province. Agriculture contributes more than 


138

REGION 

its fair share to the economy, especially in terms of 

employment creation. For this reason, the revitalisation 

of the agriculture and agri-processing value 

chain is critically important. 

Initiatives like the Vaalharts Irrigation Scheme 

are being prioritised to meet the needs of irrigation 

across a large swathe of the province. 


Renewable energy has the potential to provide a 

major boost to the economy of the province, which 

has previously been mainly about agriculture, and 

historically, diamonds. The REIPPPP aims to add 

6 000MW to the national grid by 2020 (and 13 225MW 

by 2025). The majority of the projects in the Northern 

Cape (28) are using the solar photovoltaic method, 

with seven employing concentrated solar power 

(CSP) technology. 

The Northern Cape is the natural home for the 

generation of solar power. Long-term annual direct 

normal irradiance (DNI) at Upington is 2 816kWh/m 2 , 

according to a survey done for Stellenbosch 

University by Slovakian company GeoModal Solar. 

CSP Today reports a national average that is among 

the best in the world. Stellenbosch University’s Solar 

Thermal Energy Research Group has six sites monitoring 

irradiation levels. 

The biggest solar farm so far in South Africa was 

launched in March 2016 when Solar Capital presented 

its 175MW farm at De Aar. Formerly famous 

as the railway junction that combined the countries 

two rail systems, De Aar is becoming better known 

as a renewable energy hub. 

The Northern Cape is also home to 12 approved 

wind farms and one small (10MW) hydro-electric 

project on the Orange River. 

The Northern Cape Province is connected to 

Namibia via the Kalahari and the Orange River Basin 

Corridors, strengthening trade and transport linkages 

between the two countries. 

The Northern Cape has been earmarked as a 

manufacturing zone for solar components. Currently 

solar panels are imported. A good opportunity exists 

to increase local content and the creation of the 

Upington Special Economic Zone will promote this 

goal. With a large number of solar projects already 

underway in the province, stated interest from several 

investors, and sufficiently high solar radiation 

intensity to support such investment, the prospects 

are good. 

In the budget speech of the South African 

Department of Energy in May 2016, Minister Tina 

Joemat-Pettersson officially announced the procurement 

of the Northern Cape Solar Parks Programme. 

Some planning has already been done but the 

cabinet go-ahead is significant. 

The planned Upington Solar Park is the sort of 

infrastructure that should reduce the cost of solar 

power due to economies of scale and create an 

opportunity for localisation. Private-sector investors 

will be persuaded to operate IPP plants within 

the park. 

Feasibility plans are being drawn up by Eskom 

to investigate the potential of building a massive 

solar park that will generate an eighth of the county’s 

electricity needs – 5 000MW – near Upington. 

Sixteen square kilometres of land has been identified 

and Eskom is looking for private partners. The park, 

which will cost more than R150-billion, will generate 

1 000MW in its first phase. 

Some work has also been done on creating harbours 

along the west coast of the Northern Cape. 

Port Nolloth itself is today a small fishing harbour 

and studies have shown that better potential exists 

at nearby Boegoe Baai to develop deep-sea facilities. 

The plan would incorporate both areas. Preliminary 

research indicates that the project could generate 

income of R2.1-billion annually by handling bulk 

cargo and minerals such as manganese and iron 

ore. There would be possibilities for linking the port 

to the gas fields and developing ship-repair facilities. 

The intention is to find a private investor or a 

consortium to take the project forward. 

Capital Kimberley 

Population 1 185 600 (2015) 

Area 372 889km 2 

Premier Sylvia Lucas (ANC) 

Languages Afrikaans, Setswana, Xhosa 


PROFILE 

Sol Plaatje Local 

Municipality 

Sol Plaatje is a key municipality in South Africa’s largest province. 

Sol Plaatje Local Municipality is located in the 

Frances Baard District Municipality in the Northern 

Cape Province. It includes the diamond mining city 

of Kimberley and the town of Ritchie. 

Sol Plaatje Municipality is named after Solomon 

Tshekisho Plaatje, who was a South African intellectual, 

journalist, linguist, politician, translator and writer. 

Solomon Plaatje was born just outside Boshof, formerly 

the Orange Free State (now Free State province). 

In terms of population size, Sol Plaatje is the largest local 

municipality in the Frances Baard District Municipality. 

Key demographics 

Population: 248 041 

Population growth rate: 2.04% pa 

Percentage of population with matric: 29.2% 

Unemployment: 31.90% (official rate) 

Main economic sectors 

• Community services (33%) 

• Finance (24%) 

• Trade (14%) 

• Mining (8%) 

The flamingos of Kamfers Dam nearby Kimberley 

are a popular tourist attraction. 

Flagship projects/initiatives in the 

municipality and the surrounds 

• Infrastructure upgrading and development 

• New Sol Plaatje University 

• Game farming/tourism 

• Fresh Produce Market Transformation Initiative 

• Office space 

• N12 upgrade 

• Mittah Seperepere International Convention 

Centre 

• Renewable energy projects 

• Rough diamond training 

• Cluster of produce 

• Transport infrastructure improvements 

• Lenmed Royal Hospital and Heart Centre 

• Mediclinic Gariep 

• Careline Clinic - private psychiatry hospital 

• Life Kimberley Hospital 

• Droogfontein Phase 1 and Droogfontein Phase 

2 solar PV energy plants 

CONTACT INFO 

Key personnel: 

Mayor: Honourable Octavious 

Mangaliso Matika 

Municipal Manager: Mr G Akharwaray 

ED – SEDP: Mrs N Tyabashe - Kesiamang 

Key contact person: Lesley van Gensen, 

Area Based Manager 

Email: lvangensen@solplaatje.org.za 

Tel: +27 53 830 6911/6100 

Fax: +27 53 833 1005 

Physical address: Sol Plaatje Drive, 

Kimberley 

Website: www.solplaatje.org.za 


140

Sol Plaatje 

the place to grow your investments 

The Sol Plaatje Local Municipality seeks to attract and grow investments 

by steering investment into industries in which our City has a 

competitive advantage. The investment strategy is therefore aimed 

at gaining the optimal return on investments. 

The Municipality – through its cooperation with the dti and Treasury – 

facilitates the provision of various investment incentives to potential 

new investors into our city. 

We are pleased that we have greatly enhanced our service delivery 

capabilities. These include the additional electricity capacity from Eskom 

that will be used for development, the refurbishment of the old water 

purifi cation plant at Riverton and Homevale Wastewater Treatment 

Plant, which will provide more capacity. Our future together can only 

strengthen through our mutual cooperation. 

Several multi-million rand projects have also been approved for 

development or have recently been developed. These will result in 

a huge capital injection in infrastructure over the coming years. 

Photo: Soraya Crowie 

The investment environment 

of the Municipality is sound and 

meets the highest standards. 

www.solplaatje.org.za


NORTH WEST 

North West is on the Botswana border 

and fringed by the Kalahari desert in the 

west, Gauteng province to the east and 

the Free State to the south. It is known as 

the Platinum Province for the wealth of the metal it 

has underground. 

The capital is Mahikeng (previously Mafeking), a 

town that achieved a degree of fame for the famous 

siege during the Anglo-Boer War. 

South Africa's nuclear-research centre is located 

at Pelindaba near Hartbeespoort Dam, 

and is run by the South African Nuclear Energy 

Corporation. The Nuclear Engineering Department 

at North-West University is the only one of its kind 

in the country and the National Department of 

Science and Technology granted a chair in Nuclear 

Engineering to NWU. Researchers are working 

with Korean, US and Italian scientists on subjects 

such as gas centrifuge uranium-enrichment 

cascade models. 

Bioethanol, biodiesel and methane gas from 

waste and renewable resources are among the types 

of biofuels being investigated. 

As a major grain-producing area, North West 

Province is well suited to supplying feed stock for 

biofuel projects, but a new set of national government 

guidelines has seen the emphasis in this 

nascent industry shift towards finding fuel stock 

from crops that are less likely to affect food security. 

Key sectors 

The Western Limb of the Bushveld Igneous Complex 

is a geological phenomenon astonishingly rich in 

minerals. The North West lies directly over most of 

this formation. 

Gold and uranium are found along the border 

of the province with the Gauteng and Free State 

(Klerksdorp and Orkney). Diamonds are mined at 

Christiana, Bloemhof and Lichtenburg. Lichtenburg 

is also the centre of the cement industry. Chromite 

is the other major mineral mined throughout the 

province, and there are several ferrochrome smelters 

and other processing plants. 

Other minerals found in the North West include 

fluorspar, vanadium, rhodium, uranium, copper, 

limestone, slate, phosphate, manganese, coal 

and nickel. 

The province produces 64% of South Africa's 

platinum, 46% of its dimension stone and granite, 

32% of its chromite and 25% of its gold. 

Mining contributes 23.3% to the North West 

economy. 


142

REGION 

Platinum is found in the Rustenburg and Brits 

regions, which produce more platinum than any 

other area in the world. Employment along the 

Platinum Corridor, from Pretoria to eastern Botswana, 

accounts for over a third of total employment in 

North West, but the depressed platinum price in 

global markets has led to a reduction in production 

volumes, and many workers being laid off. 

The North West Province has a strong agricultural 

sector with several very large companies involved 

in grain. Cattle and crops such as sunflower seeds 

are among the other subsectors that generate significant 

income and feed large numbers of South 

Africans. North West produces about one third of 

the country's maize. 

The manufacturing sector comprises mostly fabricated 

metals, food and beverages and non-metallic 

minerals such as cement and stone. 

Food and beverages is the biggest subsector 

contributing to the manufacturing industry. The 

town of Brits has a number of companies in the 

automotive components sector. 

Major companies with manufacturing capacity 

in the North West like Nestlé, RCL, Tydstroom and 

Clover have all taken advantage of the province’s 

strategic location adjacent to the business hub 

of Gauteng. 

Agriculture 

North West's distinct climatic regions are home to 

three very different types of agriculture. The dry 

western region is home to large beef-cattle herds, 

and this is where the growing game-ranching and 

hunting industry has its base. An Absa Agribusiness 

study shows that a R5-million investment in cattle 

over six years makes a 4.8% return, against 27.7% for 

buffalo and 45.2% for sable. 

North West is sometimes referred to as the Texas 

of South Africa, with some of the largest cattle 

herds in the world found at Stellaland near Vryburg. 

North West has approximately 1.7-million beef cattle, 

representing 13% of South Africa's herd. Major 

breeds include Simmentaller, Brahman, Bonsmara 

and Simbra, a cross between the Brahman and 

Simmentaller breeds. 

The Marico region is also cattle country, while the 

areas around Rustenburg and Brits are fertile, mixed 

crop farming land. 

Maize and sunflowers are the most important 

crops and the North West is the major producer of 

white maize in the country. 

The eastern and north-eastern parts of the province 

receive relatively good rainfall and are suitable 

for the cultivation of crops. The central and southern 

sections of the province are dominated by maize 

and wheat farming. 

One of South Africa's biggest agricultural companies 

is Senwes. The company specialises in the storage 

and handling of grains and oilseeds. Its extensive 

silo infrastructure extends across the interior. Senwes 

sells John Deere tractors. 

Suidwes is based south of Klerksdorp in 

Leeudoringstad. More than 90% of the shares in 

the company are held by farmers. Grain handling is 

the main business and there are divisions for retail (17 

outlets and one animal feed depot), mechanisation, 

finance and research and agricultural economics 

(Terratek). Brits is the location of the headquarters 

of the MGK Group, formerly Magaliesburg Graan 

Kooperasie. MGK runs a plant that makes fullfat soy, 

a component in animal feed. 

NWK is another company with manufacturing 

capacity. The Lichtenburg-based enterprise makes 

liquid fertiliser (up to 10 tons per month), animal 

feed (Opti Feeds), processes sunflower seeds (Epko), 

and runs three grain mills. Another subsidiary, Opti 

Chicks, has a capacity of 600 000 chicks per week. 

NWK also deals in grain, runs several retail outlets 

and has a financial arm, Univision Financial Services. 

There are several milling operations in North West 

Province. Masilo Mills is located in Hanneman (where 

Papa Super Maize is ground) and Tau Roller Mills is 

in Wolmeranstad. 

Capital Mahikeng 

Population 3 707 000 (2015) 

Area 104 882km 2 

Premier Supra Mahumapelo (ANC) 

Languages 

Afrikaans, Sotho, Tsonga, 

Tswana, Xhosa 


REGION 

A A REGIONAL OVERVIEW OF OFTHE 

WESTERN CAPE 

WESTERN CAPE 

The Western Cape stretches from the dry northwestern 

coast to the heavily-forested Garden 

Route regions of the southern Cape via the 

rugged mountains of the Cedarberg, the rolling 

winelands of the Boland and the Overberg, the fertile 

valleys of the Klein Karoo and the wide plains of the 

Great Karoo. The province and the region are most 

commonly associated with Table Mountain, which 

watches over the city of Cape Town and forms a 

national park of its own. 

The Western Cape is very well served with infrastructure. 

Three ports at Saldanha, Cape Town 

and Mossel Bay serve different markets and Cape 

Town International Airport and George Airport see 

to air travel needs. The Cape Town International 

Convention Centre is the province’s leading facility 

in the events and conference field, which is an area 

of growth for the province. 

The major contributors to the Western Cape’s 

gross domestic product (GDP) are services (58.2%), 

agriculture and agri-processing (8.1%) and manufacturing 

(6.9%). A traditional strength of the Cape, financial 

services, makes up 10.9% of the services basket. 

Saldanha on the West Coast is one of South 

Africa’s busiest ports. Apart from being home to 

several trawler fleets, it is the principal iron-ore 

export port and is gearing itself to service the 

continent’s oil and gas industry and to be a steel 

manufacturing hub. Mining is becoming an increasingly 

important sector, with titanium, zirconium, 

phosphate and limestone being among the most 

important finds in the region. 

A country that is gaining investment momentum 

in the Western Cape is China, with Hisense 

being one of the most important investors. This 

Chinese manufacturer of consumer electronics 

and household appliances opened a 25 200m 2 

factory in Atlantis – an area some 40km outside 

of Cape Town, on the West Coast. 

For many years, Cape Town was known as the 

home of financial services industry with insurers 

in particular choosing to house their head offices 

in the city. Many of South Africa’s and Africa’s largest 

retailers have their offices in and around Cape 

Town, including Pick n Pay, Shoprite, Clicks and 

Woolworths. 

The trend is now continuing with a new generation 

of companies such as Takealot and Yuppiechef. 

Nearly 70% of South Africa’s wine comes from 

the Winelands District area (Stellenbosch, Paarl, 


144

Robertson). A good percentage of this wine is 

exported but the wine estates themselves attract 

tourists which in turn boosts the leisure 

industry. Tourism in the Winelands has matured 

beyond day-trips from Cape Town to incorporate 

wellness spas, adventure tourism and even game 

farms boasting the Big Five. 

Manufacturing is concentrated on processing 

grapes and fruit into wine, juice, brandy, dried 

and tinned fruit products. Dairy manufacturer 

Parmalat has an award-winning cheese-making 

facility in Bonnievale. Robertson is known for 

roses and thoroughbred horses. Stellenbosch is 

home to its eponymous university and houses 

the headquarters of several large companies, 

such as British American Tobacco. 

Mossel Bay is home to South Africa’s main 

gas-processing plant while George is a node of 

manufacturing, trade and administration. The 

Nelson Mandela Metropolitan Municipality has 

facilities in George. Knysna and Plettenberg Bay 

are favoured tourist destinations. 

The Klein Karoo has its own wine route, and 

contains the country’s Port Capital in Calitzdorp, 

which hosts an annual festival to celebrate its 

main product. Fruit, vegetables and ostriches are 

other main products of the Klein Karoo. 


According to the provincial treasury, the fastgrowing 

sectors to 2020 will be construction, 

financial services (and real estate and business 

services) and transport, storage and communication. 

Financial services is expected to make 

the biggest contribution overall. 

However, the provincial government of the 

Western Cape and the private sector are putting 

their heads together to find out what projects 

will best boost economic growth and create 

jobs: it is called Project Khulisa and it is due to 

run to 2019. Three sectors have been targeted 

in the first phase: tourism and agri-processing 

are perhaps predictable areas of focus, but a 

new – and potentially very exciting – sector is 

oil and gas. 

Oil and gas 

REGION 

With the number of oil rigs passing around the Cape 

on their way either to the rich fields on both sides of 

Africa, this is a sector that can grow exponentially. It 

has already created 35 000 formal jobs, and there are 

many opportunities for trained artisans in rig repair 

and other boat-related jobs. National government 

has identified Saldanha Bay as a hub for rig repair. 

Tourism 

The sector already contributes R17-billion to the provincial 

economy and jobs are created quite quickly 

in this sector. There is a belief that this sector can 

still contribute much more. One example is the successful 

bid for the World Rugby Sevens tournament, 

which Cape Town hosted for the first time in 2015. 

With international visitors spending up to R10 000 

each, the weekend tournament added to the city's 

GDP by R539-million. Cape Town will host the event 

until 2018. Plans to further boost the sector include 

marketing the province as an all-year destination, 

focussing on cultural and heritage tourism and 

promoting more local business tourism. 

Agri-processing 

By playing to the Western Cape's strengths, which 

include an excellent reputation for fruit and wine 

in the international market, the province wants to 

take the agri-processing sector beyond the R12- 

billion that the sector already contributes to the 

local economy. Investment in infrastructure and 

support for exporters together with an improved 

regulatory environment are strategies that are going 

to be adopted. 

Capital Cape Town 

Population 6 200 100 (2015 

Area 129 462km 2 

Premier Helen Zille (DA) 

Languages Afrikaans, English, Xhosa 


LISTING 

INDEX 

Airports Company South Africa ........................................................................................ 81 - 84 

Brother .................................................................................................................................... 5, 63 

Buffalo City Metropolitan Municipality........................................................................... 113 - 115 

Capricorn District Municipality ................................................................................................. 129 

City of Ekurhuleni.............................................................................................................. 120 - 123 

City of Polokwane .................................................................................................................... 132 

College of Cape Town ............................................................................................................... 94 

Cummins South Africa ............................................................................................................... 61 

DRA Projects .............................................................................................................................. 20 

Durban Investment Promotion (DIP) ........................................................................................... 2 

Eastern Cape Development Corporation (ECDC) .................................................................. 111 

Export Credit Insurance Corporation (ECIC) ................................................................. 36, OBC 

Future Home Energy Services .................................................................................................. 25 

Human Resource Development Council of South Africa (HRDC) ........................................... 40 

Kemtek .......................................................................................................................................... 7 

Lesedi Nuclear Services ............................................................................................................ 27 

Mancosa ..................................................................................................................................... 93 

Masisizane Fund ........................................................................................................................ 42 

Mondi Group South Africa ........................................................................................................ 52 

Novus Holdings .......................................................................................................................... 44 

Qhawe Quantity Surveyors ............................................................................................. 124, IBC 

REDISA ........................................................................................................................ IFC, 28 - 33 

SBS Tanks ............................................................................................................................ 66 - 70 

Secur ........................................................................................................................................ 9, 90 

Sol Plaatje Local Municipality ................................................................................................. 138 

Southern African Wildlife College .............................................................................................. 96 

Uzulu Business Solutions .......................................................................................................... 87 

Verifi ............................................................................................................................................. 88 


The Unwavering Strength 

Behind All Our Clients 

Johannesburg: 

505 West Avenue, 80 Brushwood, Ferndale 2160 

Tel: 011 791 6362 • Cell: 082 640 5001 • Fax: 086 684 6113 

Durban: 

23 Jan Hofmeyer Road, Business Partners Ground Floor, 

Suite 13, Westville 3630 

Tel: 031 266 6619 • Fax: 031 266 5509 

Nelspruit: 

1 Parkin Street, The Pinnacle Building, Suite 807, 

Nelspruit 1206 

Tel: 013 755 3292 • Fax: 086 684 6113 

Web: www.qhaweqs.co.za 

Email: noma@qhaweqs.co.za 

Qhawe Group of Companies: 

Property Development 

Designs

South African Business 2017 edition

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