Northern Cape Business 2017/18 is the seventh edition of this highly successful publication that has, since its launch in 2009, established itself as the premier business and investment guide to the Northern Cape Province.
Officially supported and utilised by the Northern Cape Department of Economic Development and Tourism, Northern Cape Business is unique as a business and investment guide that focuses exclusively on the Northern Cape.
NORTHERN CAPE
BUSINESS
THE GUIDE TO BUSINESS AND INVESTMENT
IN THE NORTHERN CAPE PROVINCE
2017/18 EDITION
JOIN US ONLINE
WWW.NORTHERNCAPEBUSINESS.CO.ZA
Physical: Metlife Towers,
13th Fl, Cnr Stead & Knight Sts, Kimberley, 8309
Postal: Private Bag X6108, Kimberley, 8300
Tel: 053 839 4000 | Fax: 053 832 6805
Web: http://economic.ncape.gov.za
Email: dedat@ncpg.gov.za
CONTENTS
CONTENTS
Northern Cape Business 2017/18 Edition.
Introduction
Foreword5
The Northern Cape’s unique guide to business and investment.
Special features
Regional overview 6
A Special Economic Zone is driving economic growth.
Manufacturing clusters boost development 14
A boost for Northern Cape manufacturing.
Renewable energy 18
Solar power is changing the energy landscape of the
Northern Cape and attracting foreign direct investment.
Bloodhound land speed record attempt 22
Jet and rocket powered vehicle set to top 1600km/h on
Northern Cape runway.
Listening to the universe... in the Karoo 23
The largest and most powerful radio telescope
the world has ever seen is under construction.
Dicing in the desert, and on airport runways 24
Petrolheads gather in the Northern Cape to put
pedals to the metal.
Extreme testing 25
Hot days and straight roads make the Northern Cape
the perfect place for testing the world’s best cars.
Small harbour development 26
Driving new economic development in coastal areas.
Unique routes offer incredible variety 28
Tourists can hike along the ocean’s edge, surf sand dunes and
star-gaze to their hearts’ content in the Northern Cape.
Economic sectors
Agriculture44
Northern Cape products range from high-quality pelts
destined for the fashion halls of Europe to pecan nuts,
thoroughbred horses, cattle, sheep, goats and game.
NORTHERN CAPE BUSINESS 2017/18
2
UIF SAVING JOBS
THROUGH SOCIALLY
RESPONSIBLE INVESTMENTS
The National Development Plan is a blueprint serving as
a guideline to government departments and state entities
on how they can play a role in government wide efforts
of creating decent work, reducing unemployment and
poverty. The Unemployment Insurance Fund is among
the leading state entities in the implementation of the
provisions of the NDP to address the slow economic
growth, unemployment and poverty in South Africa.
The UIF social investment mandate ensures that,
additional to earning good financial returns, investments
must be supportive of long term economic, social and
adhere to sustainable environmental outcomes. The
investments must also yield a good social return for the
country. These investments have sustained 6 860 jobs of
which 3 024 are permanent, 3 836 are temporary/seasonal
and 195 are new jobs created during the financial year
ending in March 2016.
UIF INVESTMENTS IN RENEWABLE ENERGY
The UIF investments are contributing to the energy
requirements of South Africa and the investments in the
renewable energy sector provides a total capacity of 192
megawatt of electricity of which 117 megawatt is solar
energy and 27 megawatt is wind generated electricity.
The De Aar project is a shining example of the UIF energy
investments and this project produces 90 megawatt of
electricity and was completed in April 2016. The solar plant
in the area generates enough electricity to power 15 000
houses. Another mainstay project is the Phakwe Group ran
projects undertaken in the Northern and Eastern Cape.
INVESTMENT IN FOOD SECURITY
The UIF investments in this regard are undertaken under
the banner of the UIF Agri-Fund in partnership with
Futuregrowth and Day Breaker Poultry Project. The UIF
Agri-Fund has invested in 4 farms situated in Mable Hall
in Limpopo. One of the farms is a cash crop farm spanning
450 hectares. The farm in the last financial year produced
235 hectares of white maize, and cotton was planted in an
area covering 28 hectares.
A further three farms are located in the Saron area in the
Western Cape. In this project a total of 178 hectares has
been used to plant grapes, 37 hectares has been used to
pant citrus fruit. Furthermore, there is potential to plant an
additional 92 hectares of grapes. The Daybreaker Poultry
project operates in Gauteng, Limpopo and Mpumalanga
and the combined projects have facilities to grow 1.6
million broiler chickens.
INVESTMENTS IN HEALTH CARE FACILITIES
The UIF concluded two investments in this regard that
include a BEE hospital manager, Busamed to build a
private hospital in Modderfontein and Fund Manager
Razorite Heatlhcare that focus on the provision of
affordable heathcare facilities that include rehabilitation
and sub-acute centres.
The Modderfontein hospital is a 220 hospital bed with subacute
facilities. This hospital is under construction. While
the RH Fund Manager has concluded seven investments
that include:
• Busamed with four hospital facilities
• HealthMed with two facilities
INVESTMENTS IN EDUCATION
UIF has invested in three investments that play a role
to unlock access to education. The investments were
concluded with Eduloan – an organisation that provides
financial support to tertiary students and South Point and
Educor organisations that provide student accommodation.
By March 2016, Eduloan had disbursed about R446 986.64
benefiting 34 047 students, whiles South Point provided
about 10 000 student with accommodation.
UIF INVESTMENTS IN ENTERPRISE DEVELOPMENT
The UIF has concluded two investments with the aim of
supporting small and medium enterprises. In this regard
the PIC on behalf of UIF has concluded investment deals
with Musa Capital and TOSACO.
The investments will support more than 250 SMMEs across
various sectors inclusive of agriculture and affordable
housing. Musa Capital for example has a supply chain of
over 250 SMME’s that have facilitated the creation of 2 500
jobs.
TOSACO investments is planning to advance capital to
young black entrepreneurs who aspire to own and manage
Total Filling stations around the country.
For more information:
Call: 0800 843 843 or
visit: www.labour.gov.za
CONTENTS
Grapes and wine 48
The Orange River region produces fine grapes and wines.
Mining52
Zinc and diamonds are shining in the Northern Cape.
Water58
Upgrades are securing water delivery.
Education60
Sol Plaatje University has opened in Kimberley.
Banking and financial services 61
Banks are finding ways to service even very remote
rural areas.
Development finance and SMME support 66
Programmes for cadets and Gazelles are on offer in the
Northern Cape.
Government
South African National Government 70
An overview of South Africa’s national government
departments.
Northern Cape Provincial Government 74
A guide to the Northern Cape’s provincial government
departments.
Northern Cape Local Government 76
A guide to district and local municipalities in the
Northern Cape Province.
References
Sector contents 38
Index80
Maps
Northern Cape municipalities map. 75
Northern Cape regional map. 77
NORTHERN CAPE BUSINESS 2017/18
4
Alexander Bay
Northern Cape locator map. 77
NORTHERN CAPE PROVINCE
Port Nolloth
Nababeep
Okiep
Kleinsee Springbok
Hondeklipbaai
N
NAMIBIA
Vioolsdrif
Steinkopf
N7
Garies
Kamieskroon
Vredendal
Saldanha
R27
CAPE TOWN
Onseepkans
R45
N14
Loeriesfontein
Nieuwoudtville
R27
Calvinia
Vanrhynsdorp
N7
N7
Clanwilliam
R44
Paarl N1
Augrabies
Pofadder
Stellenbosch
N2
Caledon
Hermanus
Union’s End
Rietfontein
N14
N10
Brandvlei
Western Cape
Worcester
N15
Askham
Kenhardt
Upington
Keimoes
Kakamas
Van Wyksvlei
Williston
Fraserburg
Sutherland
R62
BOTSWANA
Marydale
Carnarvon
R63
Loxton
N1
Oudtshoorn
Van Zylsrus
Sishen
Christiana
Warrenton
R31
N12
Postmasburg Ulco Barkly West
Groblershoop
N10
N14
R63
Prieska
Vosburg
N12
Hotazel
Victoria West
N1
Three Sisters
Beaufort West
N9
George
N2
Knysna
Mossel Bay
Kuruman
Campbell
Douglas
Hopetown
Strydenburg
N12
North West
R31
N12
Britstown
De Aar
Hartswater
Petrusville
Hanover
Ritchie
Richmond
R63
Motorway
Main Road
Railway
Willowmore
Vryburg
N14
R64
KIMBERLEY
N10
Free State
R48
Colesberg
N1 N9
Noupoort
Middelburg
N9
Eastern Cape
Graaff-Reinet
Somerset East
R75
N18
N8
Uitenhage
PORT ELIZABETH
Jeffreys Bay
FOREWORD
CREDITS
Publisher: Chris Whales
Publishing director: Robert Arendse
Editor: John Young
Online editor: Christoff Scholtz
Art director: Brent Meder
Design: Colin Carter
Production: Lizel Olivier
Ad sales: Sydwell Adonis, Nigel
Williams, Gavin van der Merwe,
Sam Oliver, Gabriel Venter,
Siyawamkela Sthundawho and
Jeremy Petersen
Managing director: Clive During
Administration & accounts:
Charlene Steynberg and
Natalie Koopman
Distribution & circulation
manager: Edward MacDonald
Printing: FA Print
Northern Cape Business
A unique guide to business and investment in the
Northern Cape.
Northern Cape Business 2017/18 is the seventh edition of this
highly successful publication that has, since its launch in 2009,
established itself as the premier business and investment
guide to the Northern Cape Province.
Officially supported and utilised by the Northern Cape Department of
Economic Development and Tourism, Northern Cape Business is unique as
a business and investment guide that focuses exclusively on the Northern
Cape.
A range of complementary online features has also been introduced to
give participants in and readers of the journal a wider range of communication
options. These include the ebook at www.northerncapebusiness.
co.za, the monthly newsletter and a live feed for up-to-date news and
announcements.
Global Africa Network Media (www.gan.co.za), the publisher of Northern
Cape Business, specialises in business-to-business print and electronic publications,
producing a series of region-specific, annual print journals. Every
province in South Africa is covered by this unique range of journals and
websites, complemented by a national business guidebook, South African
Business.
Chris Whales
Publisher, Global Africa Network Media
Email: chris@gan.co.za
DISTRIBUTION
Northern Cape 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, trade and investment agencies,
provincial government departments, municipalities and
companies.
COPYRIGHT | Northern Cape 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: Mainstream Power, Wikimedia,
Northern Cape Information, Flickr, Anglo American, Abengoa Solar,
De Aar Solar, Northern Cape Department of Economic Development
and Tourism, South African Tourism, MediaclubSA, Karoo Space, and
Noupoort Wind Farm.
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 2074-0654
DISCLAIMER | While the publisher, Global Africa Network Media (Pty)
Ltd, has used all reasonable efforts to ensure that the information contained
in Northern Cape Business is accurate and up-to-date, the publishers
make no representations as to the accuracy, quality, timeliness, or
completeness of the information. Global Africa Network will not accept
responsibility for any loss or damage suffered as a result of the use of or
any reliance placed on such information.
5 NORTHERN CAPE BUSINESS 2017/18
A REGIONAL OVERVIEW OF THE
NORTHERN
CAPE PROVINCE
The world’s most sophisticated technology has come to the Northern Cape in the shape
of the largest radio telescope project ever built and the latest in concentrated solar
energy plants. Big plans for a deep-water port and a Special Economic Zone hold
more promise of diversification and growth.
By John Young
Mining and agriculture are still enormously
important sectors for the
province, but renewable energy is
growing very fast indeed. The number
of solar plants that were developed (and
delivered on time) in the Northern Cape in the
last five years is truly phenomenal.
In the nationally-run process to encourage
the private sector to invest in renewable energy,
fully 60% of the projects so far approved have
been allocated to the Northern Cape. This represents
66% of the nearly R200-billion invested
or pledged to date. The Northern Cape is particularly
well-suited to solar energy installations
and both of the main technologies (photo-voltaic
and concentrated solar power or CSP) are being
installed all over the province. The towns of
Upington and De Aar are seen as possible future
hubs for the further development of solar powerrelated
industry.
SPECIAL FEATURE
The planned Special Economic
Zone at Upington (linked to the
Upington International Airport)
is seen as a possible site for solarrelated
manufacturing.
One the biggest funders of the
renewable energy programme,
the Industrial Development
Corporation, has spent R11.4-
billion of its commitment so far in
the Northern Cape, out of a total
of R14.2-billion. Part of the IDC’s
role has been to take up a 20%
stake in the projects on behalf of
local communities.
A major new investment in zinc
extraction by Indian firm Vedanta and an uptick in ironore
prices going into 2017 has revived the mining outlook
after some tough times. The IDC also has a stake
in this mine. Diamond mine Petra Diamonds reports
good progress on its mines in and around Kimberley.
On the scientific front, the Northern Cape is hosting
one of the great projects of the age, the Square
Kilometre Array (SKA) radio telescope, a multi-national
effort that will delve into the secrets of the universe
from a base in Carnarvon in the Karoo.
The province’s new university in Kimberley, the
Sol Plaatje University, gives Northern Cape students
a chance to study at tertiary level without having to
incur the expense and inconvenience of travelling
outside the province.
The rise of the renewable energy sector has given
the Northern Cape a chance to break its dependence
on the mining sector, subject as it is to global
price fluctuations. The provincial government of the
Northern Cape has a number of schemes to further
diversify the economy and to find ways to further
sustain the mining industry in the province. To that
end, the government held three summits in 2016.
These dealt with small, medium and micro enterprises
and procurement, renewable energy and mining.
In the longer term, the provincial government has
identified three key clusters that it wants to concentrate
on. These are:
• Mineral beneficiation
• Agri-processing
• Energy and technology.
Geography
The Northern Cape is South Africa’s largest province,
covering 30% of the country’s landmass on the dry
western side of the country bordering the Atlantic
Ocean, Namibia and Botswana. The provincial population
of just over a million represents 2.2% of the
country’s population and the principal languages
are Afrikaans (54%) and Setswana (33%). The San
people live in the arid regions of the north.
The province is well served in transport and communications,
despite its vast size (361 830 square
kilometres). Airports at Kimberley and Upington are
quite substantial and many smaller towns, mines
and game reserves have landing strips. Although
the province has many roads, maintaining them is
a very difficult and expensive task.
The Northern Cape does not have a major port
although Port Nolloth serves as an adequate fishing
harbour. Investigations into the creation of a
deep-water port are well advanced. Another project
could see the province’s small harbours and
bays developed as well. A unit within the national
Department of Public Works aims to spark economic
development in coastal areas.
The Orange River is the most important geographical
feature of the province, providing irrigation
to support a thriving grape, sultana and wine
industry. One small hydro-electric power scheme
has been approved, but the potential for more such
schemes is massive.
NORTHERN CAPE BUSINESS 2017/18
8
SPECIAL FEATURE
Other crops such as lucerne, cotton, wheat, peanuts
and maize are grown in the Orange River Valley
and in other irrigation scheme areas such as the
Vaalharts Irrigation Scheme in the eastern part of
the province. Sheep and goats are the most popular
livestock, and horse-breeding is a lucrative activity.
The Northern Cape is home to six national parks
and five provincial parks and nature reserves. The
Richtersveld Cultural and Botanical Landscape is a
World Heritage Site, while the natural spring flower
show that appears in Namaqualand is one of the
wonders of the world. In 2016 the well-respected
international tourist book, Rough Guide, elected the
stark beauty of the Richtersveld onto its Top 10 list
of places to visit.
Most of the province falls into the category of
semi-arid (apart from the coastal strip) and it receives
relatively little rainfall. Summers are hot and
winters are cold. The western parts of the province
are famous for spectacular displays of flowers
in spring.
Economy
Mining has long been a mainstay of the provincial
economy, contributing 27.6% of provincial
GDP (StatsSA). However, only 7% of the population
gains employment from the sector: fully 31% are
employed in “community services”.
Iron ore and manganese are the two main minerals,
with the Sishen-Saldanha rail line being one of
the longest and most technically advanced logistics
links in the world.
Both the iron ore and manganese sectors experienced
terrific growth in the years to 2014, but
reduced global demand (mainly from China) has put
a dampener on exports.
The Northern Cape is a big contributor to the
national basket of exports, not only in minerals
but in agricultural products such as table grapes
and raisins.
The world receives 7%t of its diamonds from the
Northern Cape, and exports of zinc and lead from
the province account for 13% of global demand. The
figure in manganese is even more impressive – 25%
(DEDAT, Northern Cape).
This reliance on an export economy has its risks, as
has recently been seen with the laying off of workers
at iron-ore mines.
There has been a big change in diamond-mine
ownership in the Northern Cape in recent years, with
Petra Diamonds buying many of De Beers’ assets. In
the Namaqualand area, Trans Hex has acquired former
De Beers properties.
The province also has copper, lead, zinc, mineral
sands, gypsum, granite, asbestos, fluorspar, semiprecious
stones and marble.
About 45 000 people are employed in agriculture,
which represents approximately 16% of employment.
The province supports livestock
farming (mainly goats and sheep
with cattle in the north), table
grapes, dates, cotton, cereal crops
and vineyards along the banks of
the Orange River and large varieties
of crops including cotton, groundnuts,
wheat and maize on irrigated
lands (including the large Vaalharts
scheme). Thoroughbred horses are
bred in the south-western parts of
the province, especially around
Colesberg.
The Northern Cape is divided
into five district municipalities.
Each of these districts is suitable
for investments in renewable
9 NORTHERN CAPE BUSINESS 2017/18
SPECIAL FEATURE
energy, be it wind, solar, hydro or biomass. Many of
the districts already have sizable renewable energy
plants up and running.
Frances Baard District Municipality
Towns: Kimberley, Barkly West, Warrenton,
Hartswater, Jan Kempdorp.
This district accounts for 40.3% of the province’s economic
activity. It is the smallest but with a population
of approximately 325 500, it is the most densely populated.
Although Kimberley is historically renowned for
diamond mining, its economy is now driven by its role
as the administrative headquarters of the province.
Strategically located and with good infrastructure,
Kimberley is the leading centre in the province for
retail, financial services, education, commerce and
light industry.
The Mittah Seperepere Convention Centre and the
Sol Plaatje University are in Kimberley.
Mining and agriculture are found in rural municipalities.
Agriculture in the region comprises crop cultivation
and stock and game farming. The Vaalharts
Irrigation Scheme is the largest irrigation project of its
kind in the southern hemisphere, and produces maize,
cotton, fruit, peanuts and wheat.
Investment opportunities:
• Sol Plaatje University
• Kimberley International Diamond and Jewellery
Academy (KIDJA)
• Mining: diamonds and precious stones
• Manufacturing: textiles, agri-processing.
John Taolo Gaetsewe District Municipality
Towns: Kuruman, Kathu, Hotazel.
Kuruman is the headquarters of local government in
this region which contributes 19.7% to the province’s
economy. The local spring produces 20-million litres
of water every day.
Most of the district is situated on the Ghaap Plateau,
over 1 000 metres above sea-level, and can experience
extreme temperatures. Most agricultural activity is
limited to grazing and boer goats are a popular breed
among farmers, although game hunting is growing.
Kathu has a well-developed CBD with shopping
malls that arose when iron demand was high. The
Sishen iron-ore mine outside Kathu is a vast undertaking,
providing employment for thousands of
people. Samancor’s Mamatwan and Wessels manganese
mines and plants are situated at Hotazel.
Investment opportunities:
• Kathu Industrial Park (IDC involvement)
• Eco-tourism and hunting
• Boesmansput diving resort
• Gamagara Mining Corridor
• Goat commercialisation
• Agri-processing: olives, grains, pecan nuts,
medicinal plants.
Namakwa District Municipality
Towns: Springbok, Calvinia, Niewoudtville, Garies,
Williston, Fraserburg, Sutherland, Pofadder, Okiep,
Port Nolloth, Alexander Bay.
The Namakwa district stretches from the northwestern
corner of the province, and the country,
bordering Namibia and the Atlantic Ocean
to the southern border with the Western Cape
Province. It includes the famous star-gazing town
of Sutherland on its southern edge. The district
is sparsely populated, and predominantly rural.
It contributes 11.1% to economic activity in the
province.
A major new investment has been undertaken
in zinc at the Gamsberg project at Aggeneys.
The mining and agricultural sectors provide
most employment, while tourism and small-scale
manufacturing are also present. The region’s economy
gets a great boost every spring when tourists
flock to see the veld in bloom.
Major plans are being pursued to upgrade the
harbour at Port Nolloth and exploit the province’s
long coastline as part of a growing awareness of
the potential of the maritime economy.
The climate and soil support certain niche crops,
and the sites and sights are unique to the region,
offering opportunities in agriculture and tourism.
Niewoudtville is the site of a rooibos tea factory.
The IAiIAis/Richtersveld Transfrontier Park, the
Namakwa National Park and the Tankwa Karoo
National Park have the potential to grow as travel
destinations, as does the western coastline.
Investment opportunities:
• Port Nolloth and smaller harbours
• Hondeklip Fish Factories
• Abalone and hake
NORTHERN CAPE BUSINESS 2017/18
10
SPECIAL FEATURE
• Kelp processing and export
• Game and nature reserve
infrastructure
• Rooibos tea
• Calvinia: sheep and goat
processing.
Pixley Ka Seme District
Municipality
Towns: De Aar, Hanover, Carnarvon,
Douglas, Marydale, Prieska,
Hopetown, Richmond, Noupoort,
Norvalspont, Colesberg.
The district covers 102 000 square
kilometres in the central Karoo
and contributes 11.3% of the economic
activity of the province. It
has four national roads passing through it. De Aar,
the site of the municipal headquarters, has national
significance as a railway junction.
Carnarvon will now host the Square Kilometre
Array (SKA) radio telescope.
The district is home to three of South Africa’s
major dams. Agricultural production includes wheat,
maize, peanuts, grapes, beans, potatoes, nuts and
sheep farming. Pixley Ka Seme is the largest woolproducing
district in South Africa, but most of what
is produced is processed in the Eastern Cape. As a
consequence, opportunities exist for the establishment
of a cotton mill, a tannery and a facility to
add value to semi-precious stones. Horse breeding
is a valuable contributor to the regional economy.
Investment opportunities:
• De Aar rail cargo hub and workshops
• SKA engineering, science, logistics support
• Douglas holiday resort
• Booktown Richmond festivals
• Wool, pistachio nuts and venison processing
• Water tourism activities on dams.
ZF Mgcawu District Municipality
Towns: Upington, Kakamas, Kenhardt,
Groblershoop, Postmasberg.
The Orange River supports a thriving agricultural
sector and a growing tourism sector. The investment
climate is ripe for tourism along the Orange River
and attractions such as the Augrabies Falls.
Upington is already a busy town with processing
facilities for agricultural products. The planned
development of a Special Economic Zone (SEZ)
in the town and next to Upington International
Airport will boost manufacturing. The main targeted
sectors are in the renewable energy sector,
for example, solar panels.
Agriculture is a prominent feature of the local
economy, as well as wholesale and retail services in
and around the town. Various kinds of high-speed
car racing and testing takes place on the roads,
tracks and airport runway in or near the town.
The processing of wine and dried fruit represents
one of the biggest manufacturing activities
in the province. Mining activities take place in
Kgatelopele, where diamonds and lime are found.
Together with sheep and cattle farming, mining
provides most employment. The diamond mine
at Finsch is Petra Diamonds’ newest and largest
acquisition.
Investment opportunities:
• Upington Special Economic Zone
• Upington Cargo and Electronics hub: SKA,
renewable energy and aircraft storage
• Upington International Airport
• Orange River Smallholder Farmer Settlement and
Development Programme
• Tourism: wine tours, adventure and hunting
• Upington vehicle testing site
• Business Process Outsourcing (BPO).
11 NORTHERN CAPE BUSINESS 2017/18
SPECIAL FEATURE
Manufacturing clusters drive
economic development
A boost for Northern Cape manufacturing.
Special Economic Zones are intended to attract
new investments and promote economic
development. Special Economic
Zones (SEZs) 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.
South Africa is targeting a variety of sectors in
SEZs around the country, but there is an emphasis on
NORTHERN CAPE BUSINESS 2017/18
12
SPECIAL FEATURE
beneficiation, mainly of minerals but also of agricultural
products. Policy-makers want South Africa to
do much more with the product of its soils—using
manganese to convert iron into steel or creating fruit
juices out of apples and pears. The Northern Cape
is rich in all of these products.
These interventions form part of broader trade
and investment plans such as 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.
In the context of the 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. Attracting foreign direct investment (FDI)
and boosting employment are other objectives,
together with skills transfer.
Key goals behind the establishment of SEZs
are to:
• encourage industries to develop in clusters to
create economies of scale, skills-sharing and easy
access by suppliers
• create industrial infrastructure to promote
investment
• promote cooperation between the public and
private sectors
• use the zones as a launching pad for further
development.
Various incentives are available to investors in
SEZs. 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 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.
Upington SEZ
The 400ha site of the Upington SEZ in the Northern
Cape Province is close to the Upington International
Airport and is well served by access roads. One of
the goals is to capitalise on the already existing (and
fast-growing) 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.
The Khara Hais Municipality has agreed to transfer
the necessary land to the SEZ, and has approved
the infrastructure plan that has been put forward.
Airports Company South Africa (ACSA) is a partner
in the project.
A one-stop shop to help investors deal with
paperwork will be established in 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
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.
Over 40 renewable projects have already been
approved in the Northern Cape with the majority
of projects using the solar photovoltaic method
with seven using the concentrated solar power
(CSP) technology. The Northern Cape is also home
to five approved wind farms and one small (10MW)
hydro-electric project on the Orange River.
Heavy, medium and light industry and manufacturing
are expected to find homes in the
Upington SEZ. The following sectors are currently
being promoted by the Northern Cape Economic
Development, Trade and Investment Agency
(NCEDA):
• solar component manufacturing and
maintenance
• solar park
• aeronautical
13 NORTHERN CAPE BUSINESS 2017/18
SPECIAL FEATURE
• agri-processing
• mining equipment
• micro-technology (for solar, electronic, robotic
and astronomy)
• logistics, warehousing and assembly (astronomy,
solar).
Upington International Airport
Upington International Airport’s 4.9km runway allows
it to land the largest aircraft. Airports Company
South Africa is a partner in the application to run
the Upington SEZ and has allocated 55ha for the
creation of an aviation park to store and maintain
aircraft, and a further 30ha for commercial development.
ACSA’s research suggests that over the next decade
there will be a big demand for aircraft storage
and dismantling (a subsector of the broader
Maintenance, Repair and Overhaul [MRO] market).
Storage and dismantling alone will be worth $4.7-
billion by 2024, and Upington has many advantages:
• dry air minimises corrosion
• low-cost land (space for 340 wide-bodied aircraft)
• very long runway
• close to northern border of South Africa, access
to Africa
• link to Upington SEZ.
The planned storage facility could also support a
variety of other sectors such as aircraft maintenance,
modification and demolition, parts manufacturing
and warehousing and ground support equipment
(GSE) repair.
The somewhat more ambitious goal of establishing
a fully-fledged MRO facility at Upington to serve
Africa and Europe is supported by the fact that there
is no major competition in that field at the moment.
With the solar and radio astronomy sectors growing
very fast in the province, there is a new focus on
sophisticated technology. Aircraft maintenance and
repair falls into that category, so perhaps this will the
Northern Cape’s newest hi-tech industry?
Manufacturing clusters
With a vibrant and varied agricultural sector, it is no
surprise that agri-processing and food and beverage
feature strongly in the manufacturing sector in the
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SPECIAL FEATURE
Northern Cape. Wine and table grapes are covered
separately in this publication.
What is perhaps surprising is the geographic
spread of manufacturing facilities across what is
South Africa’s most sparsely-populated province.
Rooibos tea is made in Niewoudtville in the far
south-west of the province and Upington is a hub
for meat, skins and pelts, alongside grapes and raisins.
Raisins and sultanas in very large numbers are
produced at Safari’s plant at Upington. The Gordonia
Mill and several meat processing plants are also
in Upington. Further down the Orange River, at
Kanoneiland, the Karsten Group is headquarted on
the farm Roepersfontein from where it oversees
a large operation encompassing livestock, apples,
grapes and dates.
Southwards toward Kakamas lies Keimos, a centre
for raisins, dried fruit and nuts produced by the Red
Sun company. (South Africa produces about 40 000
tons of raisins every year.) There are six major processors
along the river, receiving raisins from about
250 farmers.
In the north, the irrigated Vaalharts district
covers 43 000ha and is home to a variety of food
producers and processors. One example, Olives
South Africa at Hartswater, has
200 000 trees and produces a
variety of oils for the local and
foreign market.
In the far east of the province,
OVK oversees the Gariep Organic
Meat Processors in Hopetown.
The capital city of the province,
Kimberley, has a number of
food-processing facilities that
cater to the urban concentration
of population.
The Department of Economic
Development and Tourism
(DEDAT) intends using clusters to
promote economic growth with
a focus on mineral beneficiation,
agri-processing, and energy and
technology.
Within that framework, three
manufacturing clusters are
planned for the Northern Cape:
Metal manufacturing
John Taolo Gaetsewe District Municipality. The
mining sector is strongly represented in this area.
Main towns: Kuruman, Kathu, Hotazel.
Clothing manufacturing
Frances Baard District Municipality. Main towns:
Kimberley, Jan Kempdorp, Warrenton. The existing
diamond beneficiation projects that exist in
Kimberley were recently boosted by the signing
of Memorandums of Understanding with
Turkey and India for diamond cutting and polishing
as well as jewellery manufacturing at the
Kimberley International Diamond and Jewellery
Academy (KIDJA).
Agri-processing
ZF Mgcawu District Municipality. Wine, grapes and
raisins, animal hides and abattoirs are among the
existing processing operations already in existence
along the Orange River. Main towns: Groblershoop,
Kakamas, Upington. Dates, olives, citrus and rooibos
tea are seen as sectors with great potential to grow.
Plans for this sector include the encouragement
of some downstream manufacturing in
items such as fibre sacks and cardboard cartons for
packaging.
15 NORTHERN CAPE BUSINESS 2017/18
Renewable energy
Solar power is changing the energy landscape of the Northern Cape and attracting
millions of rands in foreign direct investment.
The Northern Cape is attracting hundreds of
millions of rands in investment in renewable energy.
Most of this money is being put into solar
energy plants, with the most popular technology
being solar photovoltaic (SV). However, several
of the most recent investments have been in concentrated
solar power (CSP) technology, a method
that offers better storage possibilities. Solar voltaic
technology essentially uses many panels to capture
the sun’s rays, while CSP normally uses a tower or
troughs to concentrate the sun’s rays.
With four rounds of bidding finished at the
end of 2016, South Africa’s programme to encourage
private power producers to bid for and build
renewable energy plants has led to 92 projects
being approved. Fully 48 of those are situated in
the Northern Cape: 35 of these are solar projects.
The national programme is known as the
Renewable Energy Independent Power Producer
Procurement Programme (REIPPPP) and it aims to
add some 6 000MW to the national grid by 2020 (and
13 225MW by 2025).
At the end of the fourth window, it was calculated
that R192-billion had been invested into South
Africa through the REIPPPP, with R53-billion of that
being supplied by foreign investors. At the time of
writing, the signing of power-purchase agreements
with companies that have won bids, had been delayed
but national government has repeatedly said
that the REIPPPP is definitely approved policy and it
will go ahead.
The countries of origin of the companies investing
in this new industry are very varied. They include
Vestas (Denmark), Enel Green Power (Italy),
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SPECIAL FEATURE
Scatec Solar (Norway), Globeleq (United Kingdom),
Mainstream Renewable Power and Solar Capital
(Ireland), Gestamp Renewable Energies and
Abengoa (Spain), SunEdison and SolarReserve (USA),
ACWA Power (Saudi Arabia), Tata Power (India), China
Longyuan Power Group, (China), Genie (Gulf states),
and juwi Group (Germany). Some of these investors
are investment funds, some are utility companies
expert in power generation, others specialise in renewable
energy technology such as wind blades.
Every project has a joint ownership consortium or
joint venture that includes a local company and a
community trust of some sort.
Most of the projects approved in the Northern
Cape are on a large scale, with big investors obliged
to go into joint ventures with local communities,
normally in the form of trusts. The provincial
government is giving attention to smaller ventures,
in the 1.5MW range, with the aim of bringing local
investors and communities on board. To support
this goal, and to grow the renewable energy sector
as a whole, a Renewable Energy Conference was
held in 2016.
A concrete example of this on a small scale is
the solar energy plant established at the rooibos
tea factory in Nieuwoudtville by the Northern Cape
Department of Agriculture, Land Reform and Rural
Development. Any excess power generated is sent
on to the Hantam Municipality.
The provincial government of the Northern Cape
is using clean energy production, supported by the
procurement strategy of the REIPPPP, to boost economic
growth and development. The province’s
comprehensive road network provides a good
platform for the establishment of new power infrastructure.
The province is connected to Namibia via
the Kalahari and the Orange River Basin Corridors,
strengthening trade and transport linkages between
the two countries.
Trade and investment
The Northern Cape Renewable Energy Incubator
(//NCREI) is a broad-based black economic growth
initiative conceptualised by the Northern Cape
Department of Economic Development and
Tourism, as a response to green economy activity
in the Northern Cape, with specific reference to the
Renewable Energy Independent Power Producer
Procurement Programme (REI4P). //NCREI will be a
hybrid incubator approach to enable the development
of professional and entrepreneurial capacity
of local SMMEs in the province.
This is one of the interventions that has substantial
potential to contribute towards accelerated job
creation, as well as economic empowerment. In
addition to being a priority sector in the province,
renewable energy also has the potential to unlock
various other sectors such as manufacturing and
construction, thus offering many linkages throughout
the value-chain of renewable energy. //NCREI
will also provide local SMMEs an opportunity to
grow their businesses under a comprehensive enterprise
development programme, thus ensuring
that the province builds capacity to ensure a good
supply of locally based SMMEs to participate in the
localisation aspect of the REI4P.
The following are the sector units that //NCREI
will create: Renewable Energy; Energy Efficiency;
Clean Transportation; Built Environment; Water
Management; Waste Management; and Technologies
for Green Economy. A business plan for //NCREI is
available from the Northern Cape Department of
Economic Development and Tourism.
Water and wind
The Northern Cape has had 12 wind farms and one
small (10MW) hydro-electric project on the Orange
River approved in the REIPPPP process.
One of the earliest wind farms to be constructed
in the Northern Cape was at Noblesfontein,
about 40km from Victoria West. Spanish company,
Gestamp Wind, was an early investor in South
African renewable energy when it got behind the
Noblesfontein project.
Loeriesfontein (valued at R3.5-billion) is owned
by a consortium led by Lekela Power, a joint venture
between Actis, a private equity company,
and Mainstream Renewable Power. Mainstream
and various partners have won approved bidder
status for wind and solar projects in each of the
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SPECIAL FEATURE
windows. In the early bidding rounds, Mainstream’s
three Northern Cape wind projects amounted to
360MW (Loeriesfontein and Khobab in the Namakwa
District Municipality, also 140MW, and Noupoort
wind farm, 80MW). Another 140MW project at
Kangnas (Springbok) has subsequently been given
the green light.
Chinese power producer China Longyuan Power
Group is developing two wind farms near De Aar.
Solar
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 small towns of Postmastburg and
Groblershoop lie between Upington and Kimberley.
They are modest settlements which have ticked
along for many years in support of surrounding
farmers with some diamond mining and wine cultivation
along the way. They are now the centre of
some of the world’s most advanced technological
innovation in concentrated solar power (CSP).
Saudi Arabian electricity group ACWA Power
has won approval for the 100MW Redstone project
near Postmastburg and the 50MW Bokpoort CSP
plant near Groblershoop has been running since
the first quarter of 2016. The Bokpoort site covers
an area of about 6 700ha, of which its facilities
cover a total area of about 250ha. The facility could
serve the equivalent of about 21 000 households
and offset 230 000 t/y of carbon emissions.
The Redstone project is exceptional because
of the unique method called Molten Salt Thermal
Energy Storage. A dry cooling method also decreases
the amount of water used to support the plant.
Redstone expects to spend R150-million annually
on salaries and other expenses for 30 years.
More than 40% of the total project value will be
provided by South African suppliers. R2.4-billion of
equity investment has been pledged, with a further
R5.6-billion of debt being sourced locally and
internationally.
ACWA’s technology partner in Redstone is the
American company SolarReserve which holds the
CSP tower proprietary rights and is invested in two
other (photovoltaic) projects near Postmastburg:
Jasper (75MW) and Lesedi (75MW). It has a similar
project in the Free State province. SolarReserve is
also active in Chile.
ACWA wants to develop 5 000MW of renewable
energy and conventional power in Southern
Africa. This includes bidding for a coal project in
Mpumalanga and involvement in South Africa’s
natural-gas-to=power programme.
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
country’s two rail systems, De Aar is becoming
better known as a renewable energy hub. About
200 jobs were created in the construction phase
of this R4.8-billion project and 100 people are
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SPECIAL FEATURE
now employed in running the plant. Solar Capital,
which is a subsidiary of the Phelan Energy Group,
intends spending on Internet connections, arts
training and building a community training centre
in De Aar.
In the first round of submissions, Mainstream
South Africa put in bids for 100MW of solar power:
both projects came in on time and on budget
in 2014: Droogfontein and De Aar Solar Energy.
The company has built 170 000 solar panels on
the land owned by the Droogfontein Community
Property Association, which has taken a 4% stake
in the energy company. Mainstream SA is a joint
venture between Mainstream Renewable Power
(Ireland) and Genesis Eco-Energy (SA), and it
has also established a consortium that includes
Absa Capital, Thebe Investment Corporation and
Siemens Energy Southern Africa, which it hopes
will play a role in turning South Africa into a renewable
energy hub.
The 86MW Mulilo-Sonnedix-Prieska photovoltaic
(PV) solar plant project, situated 50km south-west of
Prieska in the Northern Cape, was built by Sonnedix
with a minority partner in local renewable energy
developer Mulilo. More than 500 jobs were created
during the building phase. The 125ha solar PV project
achieved commercial operation in July 2016.
Construction took 17 months.
The main contractor on the project was juwi
Renewable Energies, the South African subsidiary of
the large German company, the
juwi Group. BioTherm Energy
is another renewable energy
company that has used juwi’s
construction skills on several of
their projects in the province.
BioTherm has developed solar
projects near Kenhardt and
Pofadder.
Gulf power company Engie
(formally known as GDF SUEZ) is
a major investor in the 100MW
Kathu Solar Park project, a CSP
project which is also backed
by the Public Investment
Corporation (PIC), Investec Bank
and the Sishen Iron Ore Company
Community Development Trust. Engie is listed on
the stock exchanges of Paris and Brussels.
Norwegian company Scatec Solar is involved in
the design of a 75MW scheme being built at Kalkbult.
In the Namakwa District lies the small town of
Pofadder. Like Timbuktu, the name “Pofadder” is
used to represent somewhere very remote, far away
and out of the mainstream.
Pofadder had the distinction of being the chosen
site of the first CSP plant in South Africa, named
KaXu Solar One. The region’s KaXu Solar One will
be a catalyst for economic development role in
the Khai Ma Municipality. A 50MW CSP plant (Khi
Solar One) at Upington connected to the grid in
January 2016.
Another innovative CSP project, Xina Solar
One, also by Spanish company Abengoa, achieved
commercial operation in the first quarter of 2016.
Xina Solar One is a 100MW parabolic trough plant
that uses molten salts to store energy for night
time or times when the sun is not shining. This
is Abengoa’s third plant, and its fellow investors
are the Public Investment Corporation (PIC), the
Industrial Development Corporation (IDC) and the
Khi Community Trust.
The same technology (parabolic trough CSP) is
being used by Emvelo and Cobra at the Ilanga plant
about 30km east of Upington. In 2015 the Public
Investment Corporation became a 20% investor in
the Xina and Ilanga solar plants.
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SPECIAL FEATURE
Bloodhound land speed record
Jet and rocket powered vehicle set to top 1600km/h on Northern Cape runway.
Tourism is playing an increasingly important role
in social dynamics not only in South Africa, but
the all over the world. The Bloodhound project
that will be hosted in the Northern Cape is a
fine example of how tourism can help to unify and
uplift communities.
The Bloodhound project will see RAF wing commander
Andy Green steer a custom-built supersonic
car in an attempt set a new world land speed record
by travelling at 1 000 miles (1 600km) per hour. The
supersonic car will be propelled by rocket and aircraft
engines to achieve the necessary propulsion.
The first test runs will take place at Hakskeenpan
in the Kalahari region of the Northern Cape from
September 2018.
Supported by the Northern Cape provincial
government since 2010, the Bloodhound project
has created employment for members of the small
villages in the Mier district and brought technological
advances and infrastructural improvements that
would otherwise have been unobtainable.
The project has contributed significantly to job
creation in the area with over 300 members of the
local community being contracted to assist with
track clearance. Since November 2010 over 15 800
tons of stones have been removed from the track
and safety zones. The nearby communities have
also benefited from a fresh water pipeline and a
sophisticated communication network.
Local mobile service provider MTN has signed
on as official telecommunication partner and has invested
over R30-million in infrastructure at the pan.
It has installed long-term evolution (LTE) technology
to transmit video, audio and data from the car and
provided 3G connectivity in the area.
The Bloodhound project has also been pivotal
in the marketing efforts of the province by drawing
global attention to a very remote part of South
Africa’s largest province. The province has been promoting
itself as a premier destination for extreme
sports and outdoor adventure and this high-octane
adventure has highlighted this positioning. It has also
showcased the tourism potential and diversity of
experiences to be enjoyed in the Hakskeenpan area.
During the build-up to the first run, the pan has
attracted thousands of visitors which has made a
positive contribution to alleviate unemployment
and has also delivered a significant financial impact
in local communities.
Since 2010, the pan has hosted several motoring
events and even the World Tourism Day celebrations.
Each of these events created further opportunities
for community development and participation as
event managers engage locals as service providers.
This has contributed to giving the local community
a sense of pride and ownership in the project.
The pan lies in the heart of the Kalahari Red Dune
Route and visitors have been encouraged to explore
the fascinating offerings of this diverse region, which
offers something for any type of traveller whether
looking for luxury, adventure, culture or family fun.
Children are being empowering and inspired
by the science and technology represented by the
Bloodhound project. All data generated, including
research and design, and from the manufacturing
and testing stages, are available to schools registered
with the Bloodhound education department.
Visit the Northern Cape Tourism Authority at:
www.experiencenortherncape.com
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Listening to the universe...
in the Karoo
The world’s largest and most powerful radio telescope the world has ever seen is
under construction.
The Square Kilometre Array South Africa
mega-project under way in the Karoo is a transformative
scientific scheme with wide-ranging
implications.
The latest spinoff from the multinational radio
astronomy project is the introduction to South
Africa of study modules in big data. A collaboration
between SKA SA and the South African Medical
Research Council (SAMRC) offers courses in the
fundamentals of big data research. The funding
partner for the study programme is the Newton
Fund through Development in Africa with Radio
Astronomy (DARA). The Newton Fund is supported
by the UK government.
The SKA will be the world’s largest radio
telescope, made up of thousands of antennae
throughout Australia and Africa, centred on the
area around Carnarvon in the Northern Cape. SKA
will be tackling really big questions: What is dark
matter? When did life begin? How are galaxies
created?
South Africa’s own 64-dish MeerKAT telescope,
which will form part of the SKA, started coming on
line in 2016. Once all 64 dishes are operational, a
cellular phone signal from Saturn will be within the
scope of this amazing set of instruments.
South Africa is one of only three countries to
have passed legislation to create an Astronomy
Reserve and this helped persuade the international
decision-makers that South Africa should
be the host (with Australia) of the SKA. There are
17 countries on the project, with the headquarters
in Manchester, England. In Africa, a total of eight
countries will host SKA antennae, including Kenya,
Mozambique, Namibia and Zambia.
The town of Sutherland, 245km south-west of
the site of SKA, already hosts an array of telescopes
that have a long history of providing scientists
with excellent data in clear skies above the flat and
dry Karoo.
Sectors in the Northern Cape to benefit include
tourism and hospitality. A number of local firms
have become involved through the provision of
at least 75% of the components.
To ensure that local contractors have access
to some of the work, the Kareeberg and
Karoohoogland Contractors’ Forum was established.
Ten local contractors are receiving training
in how to prepare to tender for projects, with a
particular focus on the 80km road that links the
town of Carnarvon to the SKA site.
Three South African universities (University of
Cape Town, University of the Western Cape and
North West University) are cooperating to operate
the Inter-University Institute for Data Intensive
Astronomy.
21 NORTHERN CAPE BUSINESS 2017/18
Dicing in the desert, and on
airport runways
Petrolheads gather in the Northern Cape to put pedals to the metal.
The first Kalahari Desert Speedweek was held
at Hakskeenpan in the Green Kalahari in 2012.
Car and motorbike enthusiasts gunned their
engines in category-specific time-trials ranging
from veterans to the latest super cars. The dust didn’t
put them off, nor did the fairly basic accommodation
options. The event was the first of its kind to
be held in Africa.
Top speeds at the first event were 321km/h
(Suzuki Hayabusa motorbike) and 308km/h
(Lamborghini Aventador sports car).
The event was held again in 2013 and 2014 but
was suspended the next year for a reason that might
seem odd for anyone familiar with rainfall patterns
in the Northern Cape – the clay surface of the area
where the speed runs were due to take place were
still recovering from heavy rains. Hakskeenpan is
also the venue of the Bloodhound project and so
the surface has to be carefully monitored.
An environmental impact assessment in 2016
meant that the event was postponed again, but
there is a lot of enthusiasm for the next running of
the Kalahari Desert Speedweek in September 2017.
So successful was the first Speedweek that it has
spawned another series of flat-out events. Upington
Airport was the venue for the first of these, in 2013.
Upington Airport is unusually large. When South
African Airways was forced to fly around the bulge
of Africa during the days of apartheid and sanctions,
Upington’s runways were extended so that they
could refuel 747s: the result is a 5.5km-long runway,
long enough for cars to build up plenty of speed.
Timing at 4km allows for a 1.5km braking section!
What became the Upington All Tar Speedweek
also attracted sponsors ranging from track preparation
(Dust-A-Side, better known for its work with dust
management in the mining sector), MTN (telecoms
and infrastructure), Nissan and the Northern Cape
Department of Tourism (medical and logistics). In
2016, the event was held at Mahikeng Airport.
Some of the events allow and encourage camping,
some rely on that fact that Upington has excellent
hotel and guesthouse sector. Protea Hotels by
Marriott has a 90-room hotel in the town with four
types of rooms and the booking website Booking.
com lists no fewer than 52 other accommodation
options for the town.
NORTHERN CAPE BUSINESS 2017/18
22
Extreme testing
Hot days and straight roads make the Northern Cape the perfect place for testing the
world’s best cars.
It would be difficult to think of a place less like
Upington than Arjeplog. For starters, the town in
the Lapland region of Sweden is about 15 000km
north of the Northern Cape town. And then there’s
the average temperatures—the hottest summer
day in Arjeplog is about 20°, which would count as
a fairly average day-time temperature in Upington
in winter!
But the towns share an important function in
the automotive industry. Because of their extreme
temperatures, some of the world’s top motor vehicle
manufacturers test their cars in Arjeplog in the
northern winter, and in the Northern Cape in the
southern summer.
Not only are the hot conditions good for testing
these vehicles, but the high quality of roads also attracts
manufacturers. There is a private test circuit
outside Upington and a section of the N14 near
Pofadder is designated for testing at speeds up to
250km/h, but strictly for “authorised vehicles” only,
which must show a bright yellow sticker.
An online aviation forum carried a photograph
taken by a car buff some years ago, of a Bugatti
Veyron outside a store in downtown Upington. It
would definitely have turned a few heads, with a
new one in 2016 on sale for about $2.5-million. A
tyre change for such a vehicle would be no small
matter, so getting the testing right is very important.
Upington Airport is big enough to accommodate
the biggest cargo planes carrying cars on their way
to testing sites.
While sedan cars enjoy the tar, sports utility vehicles
(SUVs) or bakkies are often spotted on the province’s
dusty pans and sandy hills doing off-road testing.
To prepare for the Dakar Rally, the Toyota Gazoo
Racing team took their Hilux out to the Goerapan for
a tough workout in conditions that were similar to
what they would encounter in South America. Lots
of sand and loose gravel, sharp ups and downs – and
all at top speed.
No studies have been done on the economic
impact of car testing in the Northern Cape but
an article in Autonews in 2015 gave the annual
value of car testing to the Arjeplog economy of
$163.8-million, the result of winter population of
the town doubling in the winter. Several companies
have bases in the town, including Opel (who
were the first to visit in the 1960s), Land Rover,
BMW and Fiat Chrysler Automobiles, Opel, GKN and
Robert Bosch.
23 NORTHERN CAPE BUSINESS 2017/18
Small harbour development
Driving new economic development in coastal areas.
Rather crowded, somewhat smelly, useful
but of limited value. That just about sums
up the old small slipway that served the
small town of Kleinmond on the Whale
Coast near Hermanus. A major revamp has transformed
the area into a vibrant and varied economic
node, while still allowing fishers access to the sea
and their snoek via the slipway.
The Harbour Road development has seen the
infrastructure leading to the sea upgraded and
transformed: roadside trees shade coffee shops
and traders, and bookshops and restaurants line the
cobbled road leading to the water’s edge. Several
new apartments are for sale or available for holiday
rental.
This kind of upmarket development will not suit
every small harbour, jetty or cove along the coast of
South Africa (and the Harbour Road development
was also not everyone’s cup of tea), but it highlights
what can be done with a bit of imagination and
intelligent partnerships between public landowners
and private developers.
The Northern Cape boasts a coastline of
313km but the economic value of this asset has
barely been touched, despite a growth in the abalone
industry in recent years and some fishing and
lobster operations.
This is set to change.
Plans to boost the maritime economy in
the province form part of two broader national
NORTHERN CAPE BUSINESS 2017/18
24
SPECIAL FEATURE
• that South Africa is currently only servicing 4-5%
of the 80 rigs close to Cape Town. (Cape Town
recently did a R1-billion job on a rig.) About 130
rigs pass along the coast each year.
• vessels carry 1.2-million tons of liquid fuel around
South Africa.
• foreign vessels ship 300-million tons of cargo in
and out of South African ports.
The coast controlled by South Africa and adjacent
waters have “possible resources” of oil that could
supply the country’s needs for 40 years, and natural
gas that could supply the country’s needs for 375
years. This has the potential to lead to production of
370 000 barrels per day, but this could not happen
without significant investment.
Port Nolloth
programmes. Operation Phakisa is an initiative of
the South African government to fast-track parts
of the National Development Plan. The focus is on
delivery and results, with strict timelines. “Phakisa”
means “hurry up” in Sotho. One of the focus areas
within Phakisa is the Oceans Economy programme.
Three Northern Cape harbours feature in the list of
harbours that need attention: Port Nolloth, Boegoe
Baai and Hondeklip Bay. The last-named port has already
received investment in the aquaculture sector.
According to Operation Phakisa documents, the
untapped potential that passes South Africa’s coast
is immense. This includes:
• the fact that South Africa only does maintenance
on 5% of the 13 000 vessels that use SA ports.
The province has been allocated an increased quota
for landing fish (primarily hake) which makes Port
Nolloth more attractive as a site for investors in fish
processing. A pilot abalone ranching project located
south of Port Nolloth will start operating soon.
Bigger plans are under way to convert Port Nolloth
into a deepwater port capable of receiving large vessels.
Both a pre-feasibility study and a follow-up Gap
Analysis have been done, and the plans have been
registered with the provincial and national Treasuries.
Port Nolloth itself is today a small fishing harbour
and the studies have shown that better potential
exists at nearby Boegoe Baai to develop deep-sea
facilities. The plan would incorporate both areas.
A commodity mix study has been completed and
submitted to the National Steering Committee on
Ports for further processing and final decision-making.
Preliminary research indicates that the project
could generate income of R2.1-billion annually by
handling bulk cargoes 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.
If the harbour project gets the green light, then
accompanying infrastructure will follow. The best
route to connect to Upington will be the subject of
further studies, as will the feasibility of a new rail link.
25 NORTHERN CAPE BUSINESS 2017/18
SPECIAL FEATURE
In announcing that the deep-sea harbour project
was “progressing well” in her 2016 State of the
Province address, Premier Sylvia Lucas referred to
“aligning infrastructure to freight type and ensuring
that network connectivity links complementary
ports with inland connections”. Logistics comprises
a complicated set of interlocking networks that requires
very careful planning.
The preliminary studies suggest that it would
cost about R2.4-billion for the first phase of the
seaside construction, with a further R800-million
needed on the landside. There is an expectation that
volumes through the harbour could be 20-million
tons (for bulk commodities like manganese and iron
ore) and 6.3-million tons of break-bulk cargo.
The construction requirements of a project this
size would themselves be a boost to the economy
of the Northern Cape. The harbour project has the
potential to be transformative.
Small harbours
Another Operation Phakisa initiative is the Small
Harbours Development Unit. Set up within the national
Department of Public Works, it aims to drive
new economic development in coastal areas by
unlocking the potential of small harbours. Small
NORTHERN CAPE BUSINESS 2017/18
26
SPECIAL FEATURE
harbours are also seen as having a key role to play
in safety, security and territorial integrity.
As a first step, 13 smaller fishing harbours in the
Western Cape were identified and work began
on a series of projects to start the revival process:
repairing slipways, towing away sunken vessels and
dredging.
Many more creative and value-adding interventions
lie ahead, and are expected to be undertaken
even in areas that are currently not “proclaimed”
fishing harbours. South Africa’s four coastal provinces
have as many as 50 potential and existing
unproclaimed harbours. The key is to stimulate
economic activity. Activities to promote primary
maritime activity could include:
• infrastructure to support fishers: processing, ice
production, cold storage
• infrastructure for boat-building and repair
• additional berthing and launching facilities
• new recreational fishing points
• access to better amenities for fishers.
Tourism could be promoted through better:
• pedestrian access
• cleaning and maintenance
• policing
• stalls or shelters to sell crafts
• partnerships with developers to develop restaurant,
curio shops, retail, martime or marine
museums and accommodation options
• water recreation and sports.
Steps are being taken to include the country’s
small harbours as national assets in terms of the
Government Immovable Assets Management Act
(GIAMA). The National Department of Public Works
is the custodian of the state’s immovable assets.
The Small Harbours unit intends implementing
the Spatial and Economic Development Frameworks
(SEDFs) for the 12 proclaimed fishing harbours which
were completed in 2014 and develop SEDFs for the remaining
small harbours along South Africa’s coastline.
An audit of all state coastal reserves needs to be done,
and land for aquaculture projects must be made available
for these enterprises. Short-term leases within
harbours are also to be converted to three -five year
leases so that business owners can have better security
of tenure, allowing them to plan and expand.
27 NORTHERN CAPE BUSINESS 2017/18
Unique routes offer incredible
variety
Tourists can hike along the ocean’s edge, surf sand dunes and star-gaze to their hearts’
content in the Northern Cape.
Quiver Tree, Kalahari Red Dune, Richtersveld
– evocative names to spark the imagination
of any potential traveller. Each
of these phrases describes a designated
tour path for tourists within the Northern Cape’s vast
and fascinating landscape. The three listed here refer
to attractions in the drier parts of the province but
there is plenty of variety on offer in the other routes
that have been developed in other parts of South
Africa’s largest province. These include:
• Namakwa Coastal Route
• Kokerboom Food and Wine Route
• Kimberley Diamond Route
• Karoo Hoogland Route.
The routes are presented on the website of the
Northern Cape Tourism Authority (NCTA) which
is the official marketing agency for the Northern
Cape. Culture, nature and adventure are the three
big themes that future visitors are promised.
A partnership between the Northern Cape
Department of Economic Development and Tourism
(DEDAT) and Open Africa has created employment for
nearly 1 000 people, the majority of whom are black
and female. Open Africa is a social enterprise which
works with local communities to open up tourism
routes. A long-term collaboration with South African
National Parks has seen facilities at many of the province’s
parks improved, and the development of six
tourism routes.
The national Department of Tourism worked together
with DEDAT and the Kai Garib Municipality
to build a campsite at Keimoes on the Orange River.
There are six national parks and five provincial reserves
in the province, each showing off distinct features.
Assets unique to the Northern Cape include wonderful
spring flower displays, spectacular arid areas and
brilliantly clear night skies for sky-gazers. Heritage tourism
is another important niche. SteamNet 2000 and
NORTHERN CAPE BUSINESS 2017/18
28
SPECIAL FEATURE
the Railway Museum at Kimberley
Station maintain vital rail assets
which will make it possible to
launch a Northern Cape Steam
Rail tourism route.
The Kalahari in the north-east
is home to many of the province’s
biggest mines, but also to great
numbers of raptors, vultures
and owls.
A specialist raptor route has
been developed. Birders can
look out for 50 species, including
the Booted Eagle, the Pygmy
Falcon and the Bateleur. Tours of
the area’s vast open-cast mining operations can
be arranged.
A new route under development in the region
is the Heritage Route tracing the footprints of the
early missionaries to Southern Africa and will include
Kimberley and surrounds, Kuruman and surrounds
and the Robert Moffat Mission.
Hunting is a lucrative subsection of the tourism
sector that is proving extremely popular in this region
and brings valuable economic development
to these rural communities.
The Diamond Fields region contains the spectacular
Big Hole, the Mokala National Park and portions
of the famed South African War or Battlefields’ Route.
The Magersfontein War Memorial is an iconic attraction
on this route where you can visit the graves,
Burgher monument and Boer trenches. The town
of Kimberley is itself an extremely popular attraction
and offers fine examples of Victorian architecture
and the world-class McGregor museum, Sol
Plaatje Museum and the famed William Humphrey
Art Gallery.
The Karoo region encompasses the south-eastern
portion of the province. While most of the region
is dry, the Vanderkloof Dam is a major tourism asset.
Many of the region’s small towns are geared to
cater to tourists drawn to the magic of the Karoo’s
open spaces and features famous Karoo towns such
as De Aar, Britstown, Hanover, Victoria West and
Carnarvon. The latter is especially of importance
as home to SKA. Other tourist attractions are the
unique Karoo architecture, South African war sites,
rock art, ancient Paleo surfaces, farm stays and the
famous Karoo lamb.
The Namakwa region is famous for its flowers,
but it also hosts the South African Astronomical
Observatory, several historic mission settlements,
the Namaqua National Park (on the West Coast) and
the awe-inspiring Richtersveld Transfrontier Park.
Springbok and Calvinia are the two major towns in
this huge district, which is also the only Northern
Cape region with a coastline and soon to be the
home of a new small harbour.
Hotels
Country Hotels has recently invested heavily in the
province. Demand for beds has risen because of
concerted campaigns by the tourist authority and
on the back of investment inflows in the mining and
renewable energy sectors.
Spanish and Chinese engineers are now a common
sight in Northern Cape towns, to such an extent
that local supermarkets are stocking spices such as
saffron for fragrant paellas.
R40-million has been invested by Country Hotels
in the new Kathu Inn and R50-million will see the
Springbok Inn become a smart 100-room hotel with
a further 250 beds available in a backpackers’ lodge
and 25 sites available at an associated campsite. The
Orange River Rafting Lodge has an obvious purpose
while the Namastat Lodge and Caravan Park caters
to travellers on the N7. What used to be known as the
29 NORTHERN CAPE BUSINESS 2017/18
SPECIAL FEATURE
Hantam Hotel in Calvinia is now
the refurbished Calvinia Hotel
and Tankwa Lodge offering 25
air-conditioned rooms and easy
access to flower-spotting and the
Tankwa Karoo National Park.
The riverside town of Upington
has a large number of guesthouses
and bed-and-breakfast establishments,
together with a 90-
room Protea Hotel by Marriott. The
Protea Hotel by Marriott Kimberley
has 117 rooms and three suites
and is located right next to the Big
Hole. Also near the capital city’s
biggest attraction is the historic
Kimberley Club Boutique Hotel.
Tsogo Sun has two properties
in Kimberley: a 135-room Garden
Court and a 64-room budget hotel,
SUN1. The Flamingo Casino is
run by Sun International and offers
gaming tables, slot machines and
conference facilities.
Conferences and events
The NCTA has increasingly been
focusing on adventure sports and
the organisation and promotion
of events, including festivals.
The opening of the
2 500-seater Mittah Seperepere
Convention Centre was a boost
to the Northern Cape events and
conferences industry. It is located
near the Big Hole in the centre
of Kimberley. The Convention
Centre makes it much easier to sell
the provincial capital as a meetings,
incentives, conference and
events (MICE) destination.
The Northern Cape has its
fair share of annual festivals.
AfrikaBurn is now a regular in
the Tankwa Karoo National park,
PROVINCIAL NATURE RESERVES
Doornkloof Nature Reserve: +27 51 753 3006
Goegap Nature Reserve : +27 27 718 9906
Oorlogskloof Nature Reserve: +27 27 218 1159
Rolfontein Nature Reserve: +27 53 664 0900
Witsand Nature Reserve: +27 83 234 757
NATIONAL PARKS IN THE NORTHERN CAPE
Central Reservations: South African National Parks:
+27 12 428 9111
Augrabies Falls National Park: +27 54 452 9200
/Ai/Ais/Richtersveld Transfrontier Park: +27 27 831 1506
Kgalagadi Transfrontier Park: +27 54 561 2000
Mokala National Park: +27 53 204 8000
Namaqua National Park: +27 27 672 1948
Tankwa Karoo National Park: +27 27 341 1927
NORTHERN CAPE BUSINESS 2017/18
30
SPECIAL FEATURE
Knights Tour through the Richtersveld Transfrontier
Park and on the Orange River. The river is also
the venue for the 73km Orange Descent Canoe
Marathon which carries a first prize of R50 000.
The first Orange Descent Canoe Marathon attracted
55 participants from the Northern Cape,
KwaZulu-Natal, Free State, Eastern Cape, Western
Cape and Gauteng, as well as from Namibia.
The Orange River provides a lush landscape in
which the grapes of the several hundred producers
of Orange River Wine Cellars prosper. The rushing
water of the Augrabies Falls National Park provide
another popular attraction.
attracting fun-lovers determined to do their thing
off the grid. The Vleisfees (meat festival) has been
held in Calvinia in the Hantam region since 1990. The
successful book festival called Boekbedonnerd celebrated
its 10th anniversary in Richmond in 2016. Shelf
upon shelf in room upon room of books are available
in the Karoo town’s extraordinary bookshops.
Located on the N1, it holds the title of “Booktown
Richmond” (there are about 20 “Booktowns” in the
world). Richmond also hosts the JM Coetzee and
Athol Fugard Festival at which the South African
Independent Publishers awards are announced.
Fugard himself was in attendance in 2015.
Upington is the venue for the popular Kalahari
Kuier (Visit) Festival. More than 30 000 people have
been known to attend the event, providing a welcome
boost for the local economy. Kuruman hosts
the Kgalagadi Jazz Festival.
The Tankwa Trek (mountain trails) traverses
the southern part of the Great Karoo through the
Bokkeveld and Witzenburg areas to “star-gazer’s
Central” at Sutherland. It is a mountain bike trail
marathon over 265km that typifies the adventure
tourism of the province’s brand.
Tough sportsmen and women take to mountain
bikes and canoes to take part in the Desert
INVESTMENT OPPORTUNITIES
General opportunities for investors in the tourism
sector include • nature and game reserves
• adventure tourism
• upgrading of accommodation facilities
• new attractions and entertainment features
(theme parks)
• improve air transport networks.
The Northern Cape Department of Economic
Development and Tourism (DEDAT) has prepared
a number of specific tourism investment
packages and is looking for partners to take
these opportunities to completion.
Adventure sports at Kimberley: The possible
establishment of an adventure sports resort
in the Big Hole Precinct, Kimberley.
Steam train: Reviving steam train tourism
(“Gems on Track” is the working title) could be
done along a variety of routes including routes
out of Kimberley to Belmont and from De Aar
to Victoria West.
Eco-resort at Boesmansput: Development
of a diver training facility would form part
of the plan at this popular fresh-water cavediving
site. An eco-lodge is envisaged and a
conference facility.
Wildebeest Rock Art Centre: More than
400 pieces of rock art would form the cornerstone
(together with the nearby Nooitgedacht
Glacial Paving) of a world-class heritage and
archaeological site. Developments would include
the creation of a performance arena (for
the depiction of San Bushman culture) and
facilities for game-viewing and photographic
safaris.
31 NORTHERN CAPE BUSINESS 2017/18
SPECIAL FEATURE
Explore the Routes of the Northern Cape
Each of the province’s five regions features a route
experience that will capture the imagination. The
incredible year-round experiences coupled with
the warm hospitality, the peace and tranquility offered
by off-the-beaten-track towns and villages
and space as far as the eye can see will allow you
to rediscover life-changing experiences and ensure
unforgettable holiday memories but more importantly,
time to recharge and reconnect with each
other. Visit: www.experiencenortherncape.com
Kokerboom Food and Wine Route
The quiver tree is one of this region’s most arresting
botanical symbols. Stretching along the Gariep, the
Quiver Tree Food and Wine Route includes towns
such as Upington, Kakamas, Augrabies, Kanoneiland,
Kenhardt and Riemvasmaak. Highlights of the route
include the impressive Augrabies Falls, the relaxing
hot springs at Riemvasmaak, river rafting, fly fishing,
kayaking and river cruises on the mighty Orange
River, numerous 4x4, hiking and mountain biking
trails and excellent bird watching. Food fundis will
be delighted with the restaurants and road stalls
along the route. Orange River Wine Cellars is the
biggest wine co-operative in the southern hemisphere.
Stop in at Bezalel and Die Mas cellars as well.
Information and bookings +27 84 244 4408
Kalahari Red Dune Route
Golden dunes, wide-open skies and flat-topped
acacia trees symbolise the Kalahari Red Dune Route.
Stretching from Upington right to the Namibian
border it passes the unique towns of Ashkam, Groot
and Klein Mier, and Rietfontein. Chances are you’ll
spot magnificent oryx with their rapier horns if you
cross into the Kgalagadi Transfrontier Park. You
might also encounter martial eagles, wildebeest
and a black-maned lion proclaiming its territory
from a high dune. Home to the massive Hakskeen
Pan where the Bloodhound supersonic land speed
record is to be attempted, it also offers dune hikes at
dawn, eagle-owl encounters, sand duning and surfing
in the red sand, and guided walks with the San
Khomani. Comfortable lodges, rustic bush camps,
traditional San villages and hospitable guest farms
dot the arid wilderness. Contact +27 82 492 3469
Richtersveld Route
The Richtersveld is South Africa’s only mountain
desert and the route will take you on rugged gravel
roads to quaint villages and towns, or take the more
challenging 4x4 routes in the /Ai/Ais-Richtersveld
Transfrontier Park or in the Richtersveld World
Heritage Area. This route is definitely for the adventurous
and best explored in a well-equipped SUV
or bakkie. Throw in some comfortable hiking boots,
extra water and guidebooks on plants, birds, reptiles
and geology and set out along the 600 km Namaqua
Eco 4x4 Route. The Orange River offers river rafting
and superb wilderness fly-fishing. The Richtersveld
is a mountain biker’s dream. In the villages the locals
will entertain guests with storytelling and traditional
Nama step dancing upon request. Great restaurants
and a fine hotel await you in Port Nolloth, but unpretentious
community-owned guesthouses are found
in almost every village. Contact +27 78 874 1515
Namaqua Coastal Route
In spring, hordes of tourists flock to Namaqualand
to see the spectacular fields of wild flowers. The dry
and dusty plains are transformed from dull browns
to a kaleidoscope of colour. Springbok is the main
centre and the route includes not-to-be-missed
gems, places like Garies, Kamieskroon, Hondeklip
Bay, Koiingnaas and Kleinzee. There are dozens of
NORTHERN CAPE BUSINESS 2017/18
32
SPECIAL FEATURE
adventure and leisure options, including the
Namaqua National Park, nature reserves, hidden
coastal hamlets and some of the most remote hiking
and 4x4 trails you could envision. Hike the Silversands
Trail on the edge of the icy Atlantic or pedal among
oryx within the Goegap Nature Reserve. Stargazers,
history boffins and soul searchers will all feel welcome
here. Go succulent sleuthing with a botanical
guide or hike the Springbok Klipkoppie for a dose
of Anglo-Boer War history or visit Namastat, a traditional
matjies-hut village. Contact +27 27 672 1752
Karoo Hoogland Route
The route is situated in the southern part of the
province and covers the small Karoo towns of
Nieuwoudtville, Calvinia, Williston, Sutherland,
Fraserburg, Carnarvon, Loxton and Victoria West
and forms the heart of the Great Karoo. The Karoo
is the home of peace and tranquillity. The Khoi and
San people, who left their legacy as art on the rocks,
gave the Karoo its name. The route offers culture, adventure
and incredible natural beauty with unique
experiences such as stargazing at the world’s largest
astronomical observatory at Sutherland, Carnarvon’s
Square Kilometre Array (SKA) radio telescopes, Karoo
architecture and corbelled houses, Anglo-Boer War
sites, rock art, ancient Palaeo Surfaces, farm stays and
great Karoo cuisine featuring Karoo lamb and warm
hospitality. Contact +27 84 709 0218
Cape Namibia Route
The route meanders away from the N7 highway
and includes small towns, each with its own local
flavour and a story to tell. Visitors will encounter
towns capturing the Nama heritage of the province
where they can appreciate the unique stories of
the people of Garies, Kamieskroon, Springbok and
Steinkopf. The distinctive and enormous megalithic
boulders carry the names of early Namakwa travellers
and are aptly called the letter stones. During
spring-time, this route takes visitors into the core of
the floral kaleidoscope that is the Namakwa floral
season. Contact +27 53 833 1434
EVENTS CALENDAR
March/April: Diamond and Dorings Music
Festival – Kimberley • Afrikaburn – Tankwa
Karoo National Park • Hantam Mountain Bike
Race – Niewoudtville
May: Calvinia to Ceres: Tankwa Camino –
Calvinia
July: NC Motorsport: Spinning – Kimberley
Gemsbok Rally – Upington
August: Fraserburg Logan Drama Festival –
Fraserburg • Hantam Meat Festival – Calvinia
September : Williston Winter Festival –
Williston • Gariep Arts Festival – Kimberley
• Kamiesberg Flower Trail Run – Kamiesberg
• Desert Knights Motorbike Adventure –
Richtersveld Transfrontier Park • Kalahari
Desert Festival – Witdraai near Askham
• Pella Cultural Festival – Pella
October: Barney Barnato Amateur Golf
Championship – Kimberley • Ghaap River
XTreme Festival – Douglas • Kalahari Augrabies
Extreme Marathon – Augrabies Falls National
Park • Boekbedonnerd X – Richmond
November: The Munga Race – Rolfontein
Nature Reserve • Aggeneys Fees – Aggeneys
December: Richtersveld Liggies Festival –
Port Nolloth • SA Jazz – Kimberley • MetroFM
Heatwave – Kimberley
33 NORTHERN CAPE BUSINESS 2017/18
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In line with Nedbank’s new brand proposition ‘see
money differently’, the Business Bundle resonates
with the bank’s commitment to using expertise for
good in promoting small business enterprises.
SimplyBiz.co.za is a free-to-join value networking
portal designed especially for small businesses. The
online portal helps small businesses improve their
business administration skills, keep up with the latest
trends, network with other small businesses and
share ideas.
Should you wish to tap into our small business
expertise to help your business goals, why not get
in touch with Nedbank’s Small Business Services,
call Kim Lawrence +27 (0)51 400 5700 or send an
email to kiml@nedbank.co.za.
ADVERTORIAL
Nedbank’s new brand promise
ADVERTORIAL
focuses on client engagement that
will New create brand a proposition better understanding
encourages
clients to ‘see money differently’
Kevin de Beer, Nedbank Provincial General Manager in the
Free Lorraine State McAnda, and Northern Nedbank Cape, Free State explains and how Northern Nedbank Cape
works Regional with Manager, communities Business to Banking, deliver banking explains how solutions. the new
brand values build on the expertise of the bank to benefit clients.
almost two years of research and client
engagement that revealed that people want to
work with purpose-driven institutions they can
trust. They want a professional financial partner that
balances expertise with a genuine commitment to
do good.
The public will see a number of changes in the
next few months as the bank evolves its corporate
identity, advertising and communication campaigns,
as well as its products, services and channels. All
these changes are designed to inspire clients and
society to see money differently and partner with
the bank to achieve their goals.
Nedbank officially launched its new
brand repositioning during the first day
of the world’s largest design festival – the
2017 Design Indaba on March 1. The
bank’s new tagline challenges clients and
society to ‘see money differently’.
One of the solutions from Nedbank is
Whole-view Business Banking, which provides
a bird’s-eye view of clients’ businesses. It is aimed
at business owners who believe that they need the
best-of-breed of financial institutions.
The new brand positioning is built on Nedbank’s
purpose: to use financial expertise to enable
individuals, families, businesses and society to do
good. Our new brand proposition was born after
Our new brand proposition is not just a
marketing initiative but a reflection of the
continuing business evolution at Nedbank.
As a bank we want to ensure that our clients
experience our brand in a way that is aligned with
our brand promise.
It is common knowledge that we live in a volatile
socioeconomic environment, so it is even more
important for us to intensify our commitment to
improve on our skill in enabling clients to navigate
challenges and meet their goals.
If you would like to explore further how
Business Banking can help take your firm to the next
level, and for more information about Nedbank
Business Banking Services call Lorraine McAnda
on +27 (0)51 400 5745 or send an email to
LorraineMc@nedbank.co.za.
see money differently
Nedbank Ltd Reg No 1951/000009/06. Authorised financial
services and registered credit provider (NCRCP16).
SPONGE 5556
OLD MUTUAL ENABLING
POSITIVE FUTURES
IN THE NORTHERN CAPE
Old Mutual is committed to enabling positive futures for all our stakeholders. We offer a range of financial services
that span investment, life assurance, asset management, banking, healthcare and general insurance. Provincial
Management Boards (PMBs) in each province serve as links between our business and our provincial stakeholders,
and they are your primary point of contact with us.
MEET JANNIE JACOBS
Chairperson,
Northern Cape Provincial Management Board
“
I am proud to represent the Northern Cape. I
believe that collaboration is the way forward
to produce sustainable business and support
the communities we work and operate in.
”
For more information, contact Jannie Jacobs at
NorthernCapePMB@oldmutual.com
ombds 4.17.10479.02
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As a responsible business committed to caring for our
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• Small business development and
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training
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In 2016 alone the Old Mutual Foundation invested
R25 686 172 in various community projects across
our nation.
In the Northern Cape the Old Mutual Foundation
invested a total of R1 108 295 across its various
community empowering portfolios in the region.
Our staff are the hearts and hands of
Old Mutual in the communities we operate in,
and we support our staff volunteers through
various programmes. In the Northern Cape,
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In the Northern Cape, the Old Mutual Foundation
has invested over R1.2 million in the commercial
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ombds 4.17.10479.02
INVESTMENTS I SAVINGS I PROTECTION
Old Mutual is a Licensed Financial Services Provider
Old Mutual Foundation are partnering with the
South African Chapter of INMED Partnerships
for Children, to fund the establishment of an
aquaponic system for the Pella Food Garden
Cooperative. Aquaponics is an innovative,
intensive and inexpensive food production
technique combining aquaculture (fish farming)
and hydroponics (soilless crop production) in a
closed system that conserves water and space.
Jannie Jacobs volunteers
at the St Johns Centre
(Kimberley). The R45 000
provided by the Old Mutual
Foundation has enabled
the centre to run outreach
programmes to 22 schools,
training over 500 pupils in
the “Save a Life” course.
Old Mutual Financial Wellbeing programmes drive
financial literacy to effectively help South Africans
manage their finances better.
• The Masisizane Fund focuses on enterprise
development and job creation, and
provides financing for micro, small and
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More than 88 000 individuals have participated
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In the Northern Cape 531 individuals were trained in
On the Money programmes.
For more information, contact Jannie Jacobs at
NorthernCapePMB@oldmutual.com
KEY SECTORS
Overview of the main economic
sectors of the Northern Cape
Agriculture 42
Grapes and wine 44
Mining 48
Water 54
Education 56
Banking and financial services 57
Development finance
and SMME support 62
Tourism 66
OVERVIEW
Agriculture
Northern Cape products range from high quality pelts destined for the fashion halls of
Europe to pecan nuts, thoroughbred horses, cattle, sheep, goats and game.
SECTOR INSIGHT
The provincial government
plans several transformative
mega-projects by 2032.
• Gary Player’s farm near
Colesberg is on the market
for R50-million.
• GWK Farm Foods’
R400-million agri- processing
plant was opened at
Modder River in 2016.
Two of the Northern Cape’s most exclusive products are distributed
via the capital of Denmark and the Italian fashion capital of
Milan. Copenhagen is the site of the two auctions of karakul pelts
that are held annually, karakul being a speciality of the Upington
district. Glove-makers in Milan are among the international clients to
whom farmers of the dorper sheep breed sell the wrinkle-free skins
of their sheep, at good prices.
Another exclusive niche in the agricultural landscape of the
Northern Cape is horse stud breeding. This is a speciality of the area
around Colesberg, where the cold evenings and warm days combine
to drive out disease and promote strong growth. Among the studs
are Henham and Southford, a 900ha property near the Gariep Dam
which once was home to the famous stallion “Damask”. The farm that
legendary golfer Gary Player called home for more than 40 years,
Rietfontein, is on the market for R50-million. Buyers will get rather
more than a house, with a nine-hole golf and 46 stables among some
of the other attractions.
Alongside these luxury sectors, the Northern Cape has vast herds
of sheep and goats, cattle are bred in the north and the banks of the
Orange River host superb vineyards.
Irrigation schemes in the
north-east of the province support
a wide variety of crops. The
production of groundnuts is increasing,
with pecan very popular.
The agricultural sector also plays a
vital role in the broader economy
of the Northern Cape, employing
about 45 000 people. This represents
about 16% of employment,
a much higher figure than the national
figure of 5.5%
Occupying 36-million hectares,
the Northern Cape is the
largest province in the country,
almost a third of South Africa’s
total land area. Although the
province is a predominantly
semi-arid region, agriculture
is a major component of the
regional economy and the
NORTHERN CAPE BUSINESS 2017/18
44
OVERVIEW
province’s farmers contribute
6.8% to South African agriculture.
Government plans
The five mega-projects that the
Northern Cape Department of
Agriculture, Land Reform and
Rural Development (DARDLR) has
committed to have the potential to
draw many small-scale or emerging
farmers into the agricultural
value chain in a meaningful way.
The DARDLR is looking for partners
and investors from the public and
private sectors to develop these
schemes over the next 10-15 years.
The projects are:
• Namakwa Irrigation
Development (centred on
Onseepkans)
• Rooibos development, including
value-addition through
the production of extract and
aromas as a key value addition
project
• Vanderkloof Fisheries and
Cape trout farming
• Vaalharts Revitalisation
(Ganspan)
• Vineyards development
scheme.
Agri Parks is another initiative
that is designed to promote
inclusivity in agriculture and
to grow agri-processing, particularly
closer to where farmers
farm. The concept brings
together farmers, traders and
agri-processors (such as abattoirs)
in convenient sites within
each district municipality. 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. There
will also be wtraining available.
The DARDLR has a programme to place unemployed agricultural
graduates at land reform farms in the province to make sure that the
farms are run well, at the same time giving the graduates hands-on
experience.
Agricultural development takes place along defined corridors within
the province:
In the Orange River Valley, especially at Upington, Kakamas and
Keimoes, grapes and fruit are cultivated intensively. High-value horticultural
products such as table grapes, sultanas and wine grapes, dates,
nuts, cotton, fodder and cereal crops are grown along the Orange River.
Wheat, fruit, groundnuts, maize and cotton are grown in the
Vaalharts Irrigation Scheme in the vicinity of Hartswater and Jan
Kempdorp.
Vegetables and cereal crops are farmed at the confluence of the
Vaal River and the Orange River in the vicinity of Douglas. Of the nearly
40-million 10kg bags of onions produced in South Africa (outside of
linked production chains set up by supermarkets), about 10-million
10kg bags come from the Northern Cape.
Wool, mohair, karakul, Karoo lamb, venison, ostrich meat and
leather are farmed throughout most of the province. The province
is second only to the Eastern Cape in terms of the number of sheep
farmed and it is the fourth-largest wool-producing province based
on annual sale of producer lots.
The karakul-pelt industry is one of the most important in the
Gordonia district of Upington. Agri-company KLK is the only organisation
that handles these pelts in South Africa, which are sorted in
Windhoek before being sent to Copenhagen for auction.
45 NORTHERN CAPE BUSINESS 2017/18
OVERVIEW
Companies
KLK is based in Upington and does much more than karakul pelts.
The company’s interests include 19 retail outlets, 12 petrol stations,
four Build it franchises and a strong auction division.
KLK runs three abattoirs in Calvinia, Carnarvon and Upington that
slaughter lamb and beef carcasses. SA Dorper manages the production
and export of dorper skins and the production of cattle hides.
GWK is another company with its headquarters in the Northern
Cape, in this case the town of Douglas. In 2016 GWK invested R400-
million in a wheat mill, pasta plant and biscuit factory in Modder
River. GWK Farm Foods’ new plant has a capacity of 25t/h for wheat
flour, 1.3t/h for biscuits and 1t/h for pasta. R60-million was spent on
increasing silo capacity to feed the plant. The company reported
turnover in 2016 of R8.3-billion.
Senwes is one of the country’s biggest agri-companies and its
Northern Cape area of operation is mostly around the Vaalharts
irrigation area, which is fairly close to the headquarters just over the
provincial border in North West, at Klerksdorp. Storage and handling
of grains and oilseeds are the speciality of Senwes.
OVK controls the large Gariep abattoir at Strydenburg, which has
a daily capacity of 1 300 sheep, 100 cattle and either 250 ostriches
or 750 small game animals. OVK also has trade branches, vehicle
dealerships, a finance division and manufacturing facilities for maize
meal and wheat meal.
Kaap Agri is a Western Cape company with a presence in the
Northern Cape and Namibia.
Aquaculture and mariculture
The Northern Cape’s 313km-long coastline carries great economic potential,
even beyond the various land and sea-based mining operations
that have been carried on along the coast for many years.
The Northern Cape is well placed to take advantage of growing
global demand for abalone.
The aquaculture consultancy Sustainable Environmental Aquaculture
Services (SEAS) helped create an abalone farm at Kleinzee which will
produce 200 tons of product per year when it is at full capacity. The
Western Cape company Tuna Marine is contracted to buy abalone
from the Kleinzee facility, which is owned by Ponahalo Holdings (the
empowerment partner of De Beers Consolidated Mining South Africa).
With food security an important consideration, the provincial government
has committed to supporting small-scale fishers. The Premier
of the Province, Sylvia Lucas, announced in her 2016 State of the
Province address that a feasibility study for a deep-water harbour has
identified a site 70km north of Port Nolloth, Boegoebaai. If this project
is undertaken, it will significantly
boost the maritime sector in the
Northern Cape.
Forty farmers have signed
up for a Catfish Project in the
Vaalharts area. The scheme lies in
the Phokwane Local Muncipality,
north of Kimberley, which falls
under the Frances Baard District
Municipality.
A joint venture by the national
Department of Science
and Technology (DST) and HIK
Abalone is running an abalone
project in Hondeklip Bay with the
intention of producing 120 tons of
abalone for sale. This seaside town
is very well known for its kelp. The
coastline of the Northern Cape
has 2 000 hectares of kelp beds.
There is a growing domestic and
international demand for kelp.
The old John Ovenstone factory
in Port Nolloth is now the site
of small-scale hatcheries for abalone
and oysters. Premier Fishing
has a lobster-processing plant in
Port Nolloth.
NORTHERN CAPE BUSINESS 2017/18
46
Rooibos tea is a global hit
Health trends around the world
are helping the sales of rooibos
tea, most of which is farmed and
processed in the Western Cape and
Northern Cape provinces.
Recent studies proving that
rooibos tea increases antioxidant
capacity in human blood are
further proof of the beverage’s
healthy qualities. The unique
climate and soil of the western
part of the province support this
niche crop.
In 2014, South Africa finally
won “geographic indicator” status
for rooibos, putting it in the same
category as France’s “champagne”
and Portugal’s “port”. About
6 000 tons of tea is now exported to
more than 30 countries and domestic
consumption is about 8 000 tons.
In several coffee shops in
London, Red Espresso has replaced
the traditional double-shot of pure
coffee, and a more recent use of the
tea is to spruce up cocktails.
The country’s biggest private
producer, Rooibos Ltd, is based
in the Western Cape town of
Clanwilliam on the edge of the
Cedarberg Mountains. About
an hour’s drive further north,
in the Northern Cape town of
Nieuwoudtville, a newly developed
rooibos factory is providing
an outlet for small-scale farmers.
An initiative of the Northern
Cape Department of Agriculture
Land Reform and Rural
Development which started operating
in 2008, the factory takes
tea from 85 local farmers with the
goal of helping to integrate these
farmers into the agricultural and
agri-processing business chain.
OVERVIEW
The Rooibos Council states that more than 5 000 people are employed
in the rooibos industry.
Only the leaves of the Aspalathus linearis (a legume that is part of
the fynbos family) are used in making rooibos (Afrikaans for “red bush”).
Harvested while still green, the leaves are left to dry and ferment in the
sun after being cut up {pictured above). Naturally high in a range of
vitamins and potassium, zinc and iron, its low tannin content makes it
an excellent alternative as a hot drink. Fair Cape Dairies has a product
called Rooiboost.
ONLINE RESOURCES
Agricultural Research Council: www.arc.agric.za
Agri Northern Cape: www.agrink.co.za
Agri SA: www.agrisa.co.za
Aquaculture Association of South Africa:
www.aasa-aqua.co.za
Dorper Sheep Breeders Association of South Africa:
www.dorpersa.co.za
National Department of Agriculture, Forestry and Fisheries:
www.daff.gov.za
National Department of Science and Technology:
www.dst.gov.za
Northern Cape Department of Agriculture, Land Reform and
Rural Development: www.agrinc.gov.za
Northern Cape Economic Development Trade and Investment
Promotion Agency: www.nceda.co.za
Rooibos Council: www.sarooibos.co.za
Rooibos Route: www.rooibos-route.co.za
Thoroughbred Breeders Association of South Africa:
www.tba.org.za
47 NORTHERN CAPE BUSINESS 2017/18
OVERVIEW
Grapes and wine
The Orange River region produces fine grapes and delicious wines.
SECTOR INSIGHT
KLK has bought a 50% share
in Carpe Diem Raisins, a
packer and exporter of highquality
raisins.
• After a long drought,
160mm of rain fell in one
day in January.
• Grape juice concentrate is
exported to Japan.
Despite weather conditions that lurched from drought to
flood in the last months of 2016 and the first days of 2017,
grape farmers and wine producers are positive about crop
estimates for the current season.
Specific weather conditions were good at crucial times: dry weather
for harvesting, cool nights to promote colour development in black
and red grapes.
The South African table grape industry has been investing in
some new varietals which produce a better yield, and this is also
paying off.
Volume of 4.5kg
carton
equivalents
TABLE GRAPE CROP
Actual packed
volumes:
2014/15
Actual packed
volumes:
2015/16
Final crop
estimate:
2016/17
Orange River 17.6 18.6 20.5
Total South
Africa
59.3 58.1 65.4
SOURCE: SOUTH AFRICAN TABLE GRAPE INDUSTRY
Almost a third of South Africa’s
table grape crop is produced in
the fertile Orange River region of
the Northern Cape.
Seventy percent of the Sultana
grapes grown in the Lower
Orange River Region are used
for vine-fruit products. There are
1 250 Sultana grape growers in
the province, producing three
Sultana-type grapes which rank
among the best in the world: the
Sultana Clone H5, a new hybrid
called Merbein Seedless, which
has proved resistant to splitting
after rain, and the most popular
type, the 143B.
The following vine-fruit
products are produced in
the Northern Cape: Sundried
Thompson Seedless Raisins;
Dipped Orange River Sultanas;
Golden Sultanas; Muscat Raisins;
Monuca Raisins.
NORTHERN CAPE BUSINESS 2017/18
48
OVERVIEW
An example of successful
Sultana-grape production in
the province is SAD Vine Fruit
(Pty) Ltd, which owns the largest
dried-vine fruit processing and
packaging plant in South Africa.
The Upington-based firm employs
more than 350 people when in full
production. As much as 80% of
vine fruit grown in South Africa is
exported, primarily to Europe.
Diversified agri-company KLK
recently purchased a half share in
Carpe Diem Raisins, an exporter of
high-quality raisins.
The South African Table Grape
Industry Partnership promotes
South Africa in international
markets.
Wine
According to SA wine industry
statistics, the Orange River region
has about 5% of the total hectares
under wine grapes in South Africa,
and just over 3% of the total number
of vines. New vineyards are
being planted.
Warm to hot conditions, coupled
with the nutrient-rich land on
the banks of the Orange River and
sharply contrasting temperatures
at times, combine to produce consistently
excellent wines. Average
annual rainfall in the area is 150mm,
but the eastern part of the region
from Kanoneiland to Groblershoop
received that amount— and more
—in one day in January.
The Northern Cape’s Orange
River wine region accounts for
25.6% of South Africa’s Colombard
vines and 10% of Chenin Blanc.
The focus is on Colombard and
Hanepoot grapes.
Orange River Cellars (ORC) is a large co-operative with six wineries.
Grapes are collected from 749 farmers. OWC has a winery at its
head office in Upington and at Keimoes, Groblershoop, Kakamas and
Grootdrink.
Orange River Concentrate Producers (part of the ORC group)
produces about 7.5-million litres of white grape juice concentrate, a
percentage of which is exported to Japan where the Itochu Corporation
uses it in soft drinks and food.
ORC supplies wine to Tops at Spar which now has 691 stores across
the country, (having opened 45 new ones in 2015) and makes Tops’
private label “Carnival”.
ORC has also been selling wine in China, the USA and Europe for a
number of years through its Norweco division. Unique labelling aims
to capture local markets, so ORC wines are called “Star Tree” in the US
and “Goddess” in Denmark.
The Douglas Wine Cellar produces about 6 000 cases per year.
Together with the Landzicht cellar (just over the border in the Free State),
the Douglas Wine Cellars is a GWK company. The Douglas cellar crushes
7 000 tons of grapes every year and produces 5.6-million litres of wine.
Hartswater Wine Cellar is a part of the region’s other big agricultural
company, Senwes. Two wine brands (Overvaal and Elements) are
produced in the Hartswater irrigation area north of Kimberley.
New growers
There are plans to add 40 000 tons of grapes for wine, juice and raisins to
the Northern Cape’s capacity. A draft six-year plan has been developed
for the Northern Cape Vineyard Development Scheme which will be
implemented by the Northern Cape Department of Agriculture, Land
Reform and Rural Development, the National Agricultural Marketing
Council, the Land Bank, Distell, Winetech and Orange River Wine Cellars.
Blocuso farm has developed 18ha of Villard Blanc including an
irrigation system and a trellis system. Grapes are sold to ORC. Bringing
Merbein raisins on stream led to a product supply agreement with
Pioneer Foods. The project has 16 permanent employees but is not
yet self-sufficient.
ONLINE RESOURCES
Northern Cape Department of Agriculture, Land Reform and
Rural Development: www.agrinc.gov.za
Orange River Cellars: www.orangeriverwines.com
SA Wine Industry Information & Systems: www.sawis.co.za
South African Table Grape Industry: www.satgi.co.za
South African Wine and Brandy Company: www.sawb.co.za
Wines of South Africa: www.wosa.co.za
49 NORTHERN CAPE BUSINESS 2017/18
PROFILE
South African Table
Grape Industry
South Africa: preferred country of origin for the world’s best-tasting grapes.
SATI represents growers in key government and
industry initiatives aimed at creating more opportunities,
from ownership to accessing new markets
in a sustainable way.
SATI assists growers with crucial industry information,
transformation, statistics, research, technology
and technical transfer as well as training and
education with the aim of establishing South Africa
as the Preferred Country of Origin for the world’s
best- tasting grapes.
There are five major table grape growing regions in
South Africa. The difference in soil and climate enables
growers to supply the markets from November to
May. The early season is dominated by varieties from
the Northern Provinces and the valleys of the Orange
and Olifants River.
The Northern Cape has one of the biggest table
grape growing regions, known as the Orange River
region, represented by the Orange River Producer
Alliance (ORPA), chaired by Willie du Plessis. This
table grape region, with about 5400 hectares of
vines planted, stretches from Upington to Kakamas,
Augrabies and Blouputs. The table grape industry is
a key industry in the Northern Province, contributing
to direct employment of 1 957 permanent and
21 243 seasonal jobs. Several downstream industries
are also supported. The harvesting of table grapes in
this region takes place from about early November
until early February.
Mission
SATI delivers service excellence to create a progressive,
equitable and sustainable industry.
Vision
South Africa is the Preferred Country of Origin for table
grapes and will provide every table grape producer
as wide a choice as possible with profitable markets.
SATI’s key areas of intervention
• Technical market access
• Research and technology transfer
• Information and knowledge management
• Transformation
• Communication and stakeholder engagement
• Human capacity and skills development
• Technical support
These interventions are aimed at assisting producers
to Gain, Retain and Optimise (GRO) market access.
CONTACT INFO
PHOTO COURTESY OF CLAYTON SWART
Manager: Communications: Clayton Swart
Email: clayton@satgi.co.za
Chairperson ORPA: Willie du Plessis
Email: willie@omdraai.co.za
Physical address: 63 Main Street, Paarl 7624
Tel: +27 21 863 0366 | Fax: +27 21 863 3039
Email: info@satgi.co.za
Website: www.satgi.co.za
NORTHERN CAPE BUSINESS 2017/18
50
OVERVIEW
Mining
Zinc and diamonds are shining brightly in the Northern Cape.
SECTOR INSIGHT
The Northern Cape’s vast
mineral reserves are attracting
foreign investors.
• 30% of South32’s iron ore
is processed locally.
• Petra Diamonds announced
a 48% revenue
rise in the second half of
2016.
The volumes of iron ore mined in the Northern Cape make it the
mineral that will always be in the news (world prices have a big
effect on employment rates in the province) but diamonds and
zinc have recently been in the headlines.
In the six months to December 2016, Petra Diamonds reported
a 24% increase in production and a 48% improvement in revenue.
Expansion continued at the firm’s Northern Cape property at Finsch
and at the Cullinan mine in Gauteng province. Full-year production
was said to be on track for 4.4-4.6Mcts (with cautions) and the
company has a stated goal of getting to about 5.3-million carats
by FY 2019.
Petra has also entered into a joint venture. KEM JV comprises Petra,
Ekapa Mining (jointly owned by Petra and Ekapa Mining) and a third
party, Super Stone Mining.
When Vedanta started work in 2015 on its R9.4-billion Gamsberg
Zinc project, it was very big news for a sector in need of good news.
The new mine is in the Namakwa District Municipality south of the
N15 road that links Pofadder and Springbok. About 1 500 jobs are
expected to be created in the construction phase, with about 500
permanent positions for the running of the mine.
The year 2015 was also the year in which BHP Billiton spun off
South32, and that company is very active in the Northern Cape. The
Hotazel Manganese Mines is
made up of two mines, Wessels
(underground) and Mamatwan
(open cut), and the Metalloys
manganese smelter. The company
has 30% of the product from
its mines processed at the smelter
where a managese alloy is made.
Hotazel is also the site of a relatively
new manganese mine, Tshipi
Borwa. Tshipi é Ntle Manganese
Mining (Tshipi is a joint venture between
Pallinghurst Co-Investors
(led by Brian Gilbertson) and a
black empowerment company
representing several groups called
Ntsimbintle Mining. A number of
non-governmental organisations
(NGOs) such as the Black Sash
have a 2.2% stake in the mine
through Ditikeni Investment
Company. Indications are that
Tshipi can produce about 2.2-
million tons of ore per year, for
about 60 years.
NORTHERN CAPE BUSINESS 2017/18
52
OVERVIEW
Initiatives
Most of the area’s mineral riches
are processed outside the province
so there are excellent prospects
for investors interested in
establishing value-adding beneficiation
plants in a wide range of
minerals, from iron ore and manganese
to copper and limestone.
The provincial government of
the Northern Cape has made a
number of interventions to assist
small miners and communities in
the context of the downturn in
the broader mining sector. Grants
from the Co-operative Incentive
Scheme are being given to cooperatives
to help them buy
mining equipment.
Steps have been taken to protect
and enhance the growing
Tiger’s Eye industry and exports
to China have been increasing.
However, illegal mining has been
a problem. Provincial government
has stepped in to create
co-operatives and to assist such
groups to get mining licences.
Land owned by municipalities at
Prieska, Niekerkshoop, Marydale
and Griekwastad is the focus of
these initiatives.
The National Youth
Development Agency (NYDA),
the provincial government and
Mintek are collaborating on the
Prieska Loxion Hub (PLH), which
beneficiates Tiger’s Eye for jewellery
and stone-cutting products.
The Northern Cape Provincial
Government has estimated that
procurement by the large mining
houses exceeds R18-billion
annually. The political leadership
is hoping that closer interaction
with mining companies will bring more direct benefit to local communities.
All mining company already have corporate social investment
plans but recent engagements (a Provincial Mining Summit and a
meeting between provincial government and mine managers) aim to
increase the percentage of localised procurement (parts, consumables
and services), directing work to companies owned by black people and
women, and investment in skills training.
Assets
Mining contributes 23.4% to the Northern Cape economy and makes
up nearly 7% of South Africa’s total mining value. Whatever cyclical ups
and downs affect the sector, it remains a most important component
of the provincial economy. The mineral resources of the province are
wide-ranging and impressive with significant deposits of iron ore,
manganese, zinc, copper, lead, titanium, pig iron, zircon and gypsum.
The Northern Cape Department of Economic Development and
Tourism’s “Economic and Investment Profile” highlights the fact that
the province is responsible for:
• 95% of South Africa’s diamond output
• 97.6% of alluvial diamond mining
• 13.4% of world lead exports
• 80% of the world’s manganese resource
• 25% of the manganese used in the world
• 100% of South Africa’s Tiger’s Eye
• largest national production of sugilite (a semi-precious stone).
53 NORTHERN CAPE BUSINESS 2017/18
OVERVIEW
Rare earth elements
Rare earth elements (REE) are a very modern mineral, in that large
parts of the modern economy rely on them. Super-conductors, X-ray
machines, nuclear batteries and PET-scan detectors are just some of
the technologies that rely on rare earth elements such as promethium,
thulium and holmium.
China controls 95% of the world’s supply of REEs and the search is on
for alternative sources. Two sites in western South Africa have attracted
investor’s attention: Zandkopsdrift (Northern Cape) and, very close by
but in the adjoining province of the Western Cape, Steenkampskraal.
Manganese and iron ore
The overwhelming majority of the world’s manganese comes from the
Postmasburg and Kalahari regions of the Northern Cape. The province
is responsible for 25% of the world’s exports of the mineral. Assmang
has two manganese mines in the province: Nchwaning and Gloria.
The Northern Cape produces more than 84% of South Africa’s
iron ore. The province has two major iron belts, from Postmasburg to
Hotazel, and running through Sishen and Kathu. Sishen is the most
important iron-ore mine in South Africa, where operations include
extraction and four beneficiation plants. The availability of natural
resources, labour and infrastructure (including the Sishen-Saldanha
railway line), make Sishen the ideal location.
Kumba Iron Ore has the huge Sishen facility at Kathu and Kolomela.
Assmang, a joint venture comprising African Rainbow Minerals and
Assore, mines at Khumani.
The reality of low prices for iron ore have been felt very keenly in
the Northern Cape. After a tough period because of reduced global
demand (particularly for platinum and iron ore), mining as a whole
started to recover in 2016, with the iron-ore price recovering strongly
late in the year. Kumba is building plants to increase production again.
After initially saying that it wanted to get rid of everything outside
its core assets (copper, platinum group metals and diamonds), Anglo
American has backtracked somewhat in the light of the recovery of
iron ore and other mineral prices. (Anglo does not have diamond assets
in the Northern Cape.)
Assuming that it will go ahead with disposals, the sale of Anglo’s
69.7% shareholding in Kumba Iron Ore will have the biggest impact.
Diamonds
De Beers sold its underground operations at Kimberley to Petra (in
2007 but the final details were
only sorted out in mid-2010) and
it sold South Africa’s secondbiggest
diamond mine, Finsch
mine, 165km west of Kimberley,
to the same company for R4.25-
billion in early 2011. This is part of a
broader programme by De Beers
in which several of its mines have
been sold to Petra (Koffiefontein
and Cullinan mines in other provinces
and a Tanzanian operation
are examples). The company’s
Namaqualand mines have been
closed and are for sale.
Petra Diamonds’ purchases
mean the company now has
five South African mines, two of
which are in the Northern Cape.
Another active purchaser of
mines is Rockwell Diamonds,
which is listed on the TSX and
JSE. The company’s assets in
the Northern Cape lie between
Prieska and Douglas, southwest
of Kimberley: Wouterspan,
Nieuwejaarskraal, Remhoogte
and Saxendrift.
Away from the underground
kimberlite pipes and fissures, river
and coastal deposits are also
present in the Northern Cape.
Diamonds have been recovered
along the Orange, Buffels, Spoeg,
Horees, Groen, Doom and Swart
rivers in the province, while coastal
deposits have been found from
the mouth of the Orange River to
Lamberts Bay.
Diamond mining company
West Coast Resources (WCR)
completed its production plant
at Mitchells Bay at the end of 2016
and started mining in 2016. Trans
Hex, with a 40% shareholding in
WCR, will manage the mine and
market the diamonds produced
NORTHERN CAPE BUSINESS 2017/18
54
OVERVIEW
from it. The national Department
of Trade and Industry (dti) owns
20% of WCR. By 2020 the project
intends employing 686 jobs. By
May 2016 there were 166 permanent
employees and 24 parttimers
working at Mitchells Bay.
Copper
The Northern Cape is responsible
for around 18% of South Africa’s
total copper production, with the
two most prominent mines located
in Nababeep and Aggeneys.
The Carolusberg Mining Complex
has copper reserves of 37.5-
million tons, while the
Nigramoep deposit has 15-million
tons. Galileo’s initial tests at
its Concordia Copper project near
Okiep suggest that prospects are
good what it calls “large-scale
copper targets”. Tungsten has also
been found in the area.
In 2016 Horomela Investments
received prospecting rights for
is property near Aggeneys. The
only 100% black-owned and
black-managed base metals
mining company in South Africa,
Horomela will be mining for lead,
silver, copper and zinc.
Lead and zinc
Aggeneys, in the Namaqualand
district of the Northern Cape, is
responsible for approximately
93% of South Africa’s lead production,
and 12% of all world lead
exports. Zinc is less abundant, but
the province is still responsible for
about 43% of South Africa’s overall
zinc production.
The Black Mountain mine run by Vedanta can produce 30 000 tons
of concentrate annually, 7 000 tons of copper, 50 tons of silver and
40 000 tons of lead. Almost a third of the mine’s concentrate output
is exported through Saldanha on the West Coast.
The Indian company is investing a further R9.4-billion on a nearby
project at Gamsberg. Located on the road between Springbok and
Pofadder, the mine is already having a significant impact on employment
for nearby communities. In the first phase, 4Mtpa of ore will be
mined, producing 250 000tpa of zinc concentrate.
The site is a diversity “hotspot” (one of seven in South Africa) so
a lot of work has to be done. Vedanta is working with International
Union for the Conservation of Nature (IUCN) and a biodiversity offset
agreement has been signed.
South African government officials, including the Deputy Minister
of Mineral Resources, have visited Vedanta’s Indian headquarters and
there are hopes of partnership in fields such as copper smelting,
zinc beneficiation and captive power generation. Local engineers are
expected to travel to India for training as part of the Vedanta global
leadership programme.
ONLINE RESOURCES
Chamber of Mines: www.chamberofmines.org.za
Geological Society of South Africa: www.gssa.org.za
Mining Qualifications Authority: www.mqa.org.za
Mintek: www.mintek.co.za
National Department of Mineral Resources: www.dmr.gov.za
Northern Cape Department of Economic Development and
Tourism: www.economic.ncape.gov.za
Southern African Institute of Mining and Metallurgy:
www.saimm.co.za
South African Mining Development Association: www.samda.co.za
55 NORTHERN CAPE BUSINESS 2017/18
Who is Petra Diamonds?
Petra Diamonds is a leading independent diamond mining group and
an increasingly important supplier of rough diamonds to the
international market. The Company has interests in six producing
mines: three underground mines in South Africa (Finsch, Cullinan,
Koffiefontein) and one open-pit mine in Tanzania (Williamson), as
well as, via its Joint Venture Partnership with Ekapa Mining, the extensive tailings and
underground operations in Kimberley. It also maintains an exploration programme in Botswana.
Petra has grown rapidly in recent years, and plans to steadily increase annual production to 5.3
million carats by FY 2019. The Group has a major resource base in excess of 300 million carats.
Petra’s fast development has established the Company as London’s largest quoted diamond
mining group and its exceptional growth profile positions the Group as a unique investment
opportunity within the sector. This makes Petra one of the few mid-tier diamond producers
to offer a significant and growing production profile. This growth in output places the
Company in a strong position to benefit from the positive long-term fundamentals for the
diamond industry, where demand is forecast to outpace supply.
Petra conducts all operations according to the highest ethical standards and will only operate in
countries which are members of the Kimberley Process. Petra is quoted with a premium listing
on the Main Market of the London Stock Exchange and is a constituent of the FTSE 250 Index.
Petra Diamonds and the Northern Cape
With interest in three operations in the Northern Cape,
Petra is proud to be part of the future of this Province,
which can be regarded as the birthplace of the modern
diamond industry.
Petra’s philosophy is that its operations should benefit
the communities in which its mines are, and therefore
these local communities are regarded as high priority
and the mines’ principal stakeholders.
Apart from creating employment, with local recruitment
receiving preference, investment by Petra is expected to
extend the lives of these operations, thereby
contributing to the local economy and ensuring that
optimal benefit will accrue to their local communities.
Petra is committed to being a good corporate citizen.
This not only includes disposing responsibly of the
commitments imposed by its Mining Licences, such as
contribution to development through its Social and
Labour Plans, and caring for the environment through its
Environmental Management Plans, but also striving to
go beyond what is expected to make a positive impact in
communities whenever possible.
Finsch Diamond Mine at Lime
Acres - one of the world’s foremost
and most technologically advanced
diamond mines
For more information, visit our website at www.petradiamonds.com
Kimberley Ekapa Mining JV
A New Future for Diamond Mining in Kimberley
Petra Diamonds and Ekapa Mining, with their empowerment partners, are proud to
be associated with Kimberley and the Northern Cape through their Joint Venture,
Kimberley Ekapa Mining.
The synergies created by pooling and sharing resources such as Tailing Mineral
Resources, processing facilities and underground operations opened the window
for extending the life of diamond mining operations in Kimberley significantly, thus
ensuring a continued contribution to the local economy.
Investing heavily in people, infrastructure and capital development projects,
successfully combining very diverse business units into one cohesive team with all
the resources needed to make a success of the extended life of the operations,
gears Kimberley Ekapa Mining JV to make a success of the opportunities created.
Here’s to the Future!
Zero Harm and Sustainable Environments
OVERVIEW
Water
Upgrades are securing water delivery.
Two of South Africa’s great rivers meet in the Northern Cape at
a point south-west of Kimberley. After absorbing the Vaal River,
the Orange River continues westwards to the Atlantic Ocean and
provides the basis for agriculture all along its path.
North of Kimberley, the confluence of the Vaal and the Harts rivers
encompasses one of South Africa’s most intensely irrigated areas. The
Vaalharts irrigation system is one of the most productive in the country,
covering about 44 000 hectares with a variety of crops. Various water
users’ associations (WUAs) representing particular areas (such as the
Vaalharts) are recognised by the national water authority.
Two of South Africa’s biggest dams, the Gariep and Vanderkloof,
also provide water for irrigation and hydro-electric power.
But many parts of the province are very dry with sections of the
north and north-west classified as semi-arid and arid. The southern
Kalahari Desert does receive rain (sometimes a lot of rain in a very
short space of time) but the fact that mining is a primary economic
SECTOR INSIGHT
The R18-billion Gamagara
Water Supply scheme is on
track.
• Sedibeng Water has built a
new laboratory.
activity in the dry regions of the
province presents particular challenges.
The town of Kuruman is
an exception in that it has a natural
and prolific spring, the Eye of
Kuruman.
The national Department of
Water and Sanitation has been in
NORTHERN CAPE BUSINESS 2017/18
58
OVERVIEW
Bulk water and reticulation monitoring are both conducted by the
laboratory which also conducts internal and external training for staff
in the water and sewage treatment field.
A new laboratory has been built to monitor the quality of water at
the revamped Vaal Gamagara scheme. The laboratory’s four sections
cover Instrumentation, Wet Chemistry, Sewage and Microbiology.
When the laboratory gains SANAS accreditation, it will be the first in
the province to have such a rating.
Projects
the process of consolidating the
country’s water boards into nine
regional water utilities. Some
boards have merged to create
new entities while others have
extended their area of supply.
Sedibeng Water now offers
water-supply services across
three provinces, including most
of the Northern Cape.
Sedibeng Water has absorbed
the old Namkwa Water Board
which means it is responsible for
towns such as Okiep, Concordia,
Nababeep and Springbok, and
the mines in that part of the
province. The Pelladrift board
(serving Pofadder) has also been
incorporated.
Sedibeng Water’s Central
Laboratory, based at Balkfontein
near Bothaville, is a SANAS ISO/
IEC 17025-accredited facility. The
laboratory has the advantage
of being on the site of a watertreatment
plant, enabling it to
process as many as 3 000 chemical
and 1 700 bacterial analyses
every month.
Namakwa Water Project
The town of Springbok has been plagued by water-supply problems for
several years, with pipes failing on a regular basis. The copper-mining
company that used to see to water delivery operations in the area has
closed down. The Namakwa water project will deliver water to about
11 000 households and should be completed in 2019. Work is being
done on pump stations and sand filters and a new pipeline is to be laid.
Vaal Gamagara Project
Twenty-two villages in six municipalities will benefit from the Vaal
Gamagara Refurbishment and Upgrading Project.
The existing scheme, run by Sedibeng Water, supplies about
22-million m 3 of water to industry, mines, agricultural enterprises and
domestic users, but demand is growing. Existing manganese and
iron-ore mines near Hotazel and Kathu are heavy water users and if
any new mines are to be considered in the area, a reliable water supply
is needed. The same applies to the creation of any new infrastructure
such as solar power plants, although obviously to a lesser degree.
A 430km pipeline is to be constructed from Delportshoop to Black
Rock and upgrades will be done on existing pump stations and watertreatment
plants. The cost of the project, which falls under the national
Department of Water and Sanitation, is R18-billion.
Sedibeng Water has been selected as the implementing agent for
the project and they will work with the Kgalagadi Joint Venture. Once
the project is complete, the scheme will be able to deliver water to
neighbouring country, Botswana.
ONLINE RESOURCES
Blue Drop Awards: www.ewisa.co.za
National Department of Water and Sanitation: www.dwa.gov.za
South African Association of Water Utilities: www.saawu.org.za
Water Institute of South Africa: www.wisa.org.za
Water Research Commission: www.wrc.org.za
59 NORTHERN CAPE BUSINESS 2017/18
OVERVIEW
Education
Sol Plaatje University has opened in Kimberley.
The Square Kilometre Array radio telescope project under way in
the Karoo is having far-reaching effects on education and training
in the Northern Cape.
Bursaries for local pupils to tertiary institutions, the appointment
of a specialist mathematics and science teacher at Carnarvon
High School and internships for locals in optical fibre technology are
just some of the spinoffs already experienced.
SKA SA, the national Department of Science and Technology and
the Council for Scientific and Industrial Research’s Meraka Institute have
trained 17 teachers in the use of tablets and 40 young people have,
since 2011, received bursaries to study skills that will enable them to
work in radio astronomy.
The Namaqua Maths and Science project (NaMaSci) is a partnership
between the Northern Cape Department of Education and the
University of Stellenbosch which aims to help students in the Namakwa
district gain access to tertiary study. Tutors offer holiday classes
in Springbok.
After years of lobbying for a university, the Northern Cape now
has its own place of higher learning, Sol Plaatje University, named
after the great intellectual, writer and advocate for equal rights. The
curriculum covering degrees and diplomas is presented in four schools:
Humanities (including Heritage Studies), Natural and Applied Sciences
(Data Sciences, ICT), Education and Economics and Management
(BComm and Diploma in Retail Business Management). The provincial
government is implementing its Northern Cape Information Society
Strategy in partnership with the university.
Astronomy-related courses are planned for the future to dovetail
with the Square Kilometre Array.
ONLINE RESOURCES
Northern Cape Department of Education:
www.ncdoe.ncpg.gov.za
Northern Cape Rural TVET College: www.ncrtvet.com
Northern Cape Urban TVET College: ww.ncutvet.edu.za
Sol Plaatje University: www.spu.ac.za
SECTOR INSIGHT
The SKA project is fast-tracking
educational opportunity.
The Northern Cape Urban
TVET College comprises three
campuses in Kimberley: City
Campus, Moremogolo Campus
and Phatsimang Campus, where
teacher training is done. At City
Campus, students have access
to three departments: business
studies, engineering studies and
a business unit that organises short
courses. At Moremogolo Campus
students are offered courses in either
the business studies or skills
departments.
The Northern Cape Rural TVET
College has campuses at Kathu,
Upington, De Aar, Kuruman and
Namakwaland. These colleges
offer students courses in finance,
economics and accounting;
engineering; IT and computer
science; management; hospitality;
marketing; and tourism.
NCRTVET College has a variety of
part-time programmes and short
skills programmes delivered in the
form of learnerships, internships
or apprenticeships. This enables
adults and employed people
to study after hours or to do
enrichment courses.
NORTHERN CAPE BUSINESS 2017/18
60
Banking and financial services
Banks are finding ways to service even very remote rural areas.
OVERVIEW
In a province with a high proportion of rural citizens such as the
Northern Cape, the prospect of Postbank being upgraded to a fullservice
bank is positive news. In 2016 the bank (part of the South
African Post Office, SAPO) received a first-level licence. Once a board
of directors has been appointed and a company formed, the Reserve
Bank is likely to grant the full licence.
The current Postbank focusses on taking deposits and savings accounts.
Postbank has secured a R3.7-billion loan to enable it to open its
own loan book. The large geographical footprint of the Post Office will
make the bank easily accessible to even remote parts of the country.
South Africa’s four big retail banks (Nedbank, Absa, Standard Bank
and First National Bank) have a solid presence in all of the major towns
in the province. Relative newcomer, Capitec, is rapidly moving towards
being part of a Big Five.
With the renewable energy sector being actively pursued in South
Africa, a whole new sector in need of project funding has opened up
for banks. The Northern Cape has attracted a very high percentage
of independent power producers which have won the right to build
power plants, especially in solar power sector.
With agriculture being such an important part of the provincial
economy, each of the established banks has specialists in the province
and dedicated units such as Nedbank Agribusiness. Focus areas
SECTOR INSIGHT
South Africa’s newest stock
exchange listed Senwes on its
first day in action.
• The multi-billion-rand stokvel
market is attracting interest.
for this unit are agronomy (grain,
oil seeds, sugar and cotton), livestock
(including game farming),
horticulture (fruit and vegetables,
for example), and secondary agriculture
which covers agricultural
processing and storage.
Most agricultural companies
in the province have financing
and services divisions. This provides
real competition for the
retail banks, despite their specialised
agricultural desks. The Land
61 NORTHERN CAPE BUSINESS 2017/18
OVERVIEW
and Agricultural Development
Bank of South Africa (Land Bank)
is also a major participant in the
Northern Cape financial sector.
GWK is one of the biggest
agricultural firms, with the GW
standing for Griqualand West.
It has its roots in the Northern
Cape province and its headquarters
are located in the town
of Douglas. GWK has six units
within its Corporate Services
division and these mostly relate
to finance: Finance, Financing,
Risk Management and Financial
Agricultural Advice.
Farmers have a wide selection
of products to choose from: production
loans for the cultivation
of products, livestock production
loans, buyers accounts, auction
accounts and instalment agreements
for buying equipment,
vineyard establishment and
livestock.
Senwes is another big agricultural
company active in the
Northern Cape, although its
headquarters are in Klerksdorp,
North West, and it is active across
South Africa. It offers many products
within its Credit division,
including asset financing in collaboration
with Wesbank. In 2017
Senwes and its holding company
Senwesbel became the first new
stocks to be listed on the country’s
new stock exchange, the
ZAR X.
Upington-based KLK
Landbou has insurance and
medical cover products while
OVK offers insurance and financing
options. Kaap Agri has three
offices in the Northern Cape
where farmers can consult on
financial matters.
Improving access
A high percentage of the population of the Northern Cape live in rural
areas and are members of burial societies or saving groups (stokvels).
South Africa’s “stokvel” (savings club) market is worth about R44-billion:
Sanlam is developing products to tap into that market.
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%.
Among innovations designed to reach the unbanked were Teba Bank
allowing customers to deposit at supermarkets, Absa launched two
mobile banks, FNB also created mobile branches and most of Standard
Bank’s new sites were planned for townships. Standard Bank’s community-banking
initiative offers a low-cost cellphone-banking service.
Retailers can act as agents for the bank, even in very remote rural areas.
Nedbank has Approve-it, which allows customers to accept or
reject an Internet transaction by cellphone. Nedbank also has partnerships
with shops such as Boxer Stores and Pick n Pay where customers
can have access to financial services in previously unserviced areas
and also on all days of the week such as public holidays and Sundays.
Some of Nedbank’s other innovations include Home Loans Online
Digital Channel and Market Edge, together with the Nedbank App
Suite. The Nedbank@Work product offers targeted service to employees
of companies that bank with Nedbank, including free advice.
The Keyona Plus account includes funeral cover, a loan facility and a
method of transferring money. The Nedbank4me account is tailored
to the youth market.
ONLINE RESOURCES
Association for Savings and Investment South Africa:
www.asisa.org.za
Auditor-General of South Africa: www.agsa.co.za
Banking Association South Africa: www.banking.org.za
Chartered Institute for Government Finance, Audit and Risk
Officers: www.cigfaro.co.za
Financial Services Board: www.fsb.co.za
Institute of Bankers in South Africa: www.iob.co.za
Office of the Ombudsman for Banking Services:
www.obssa.co.za
NORTHERN CAPE BUSINESS 2017/18
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Our Offering for Small
to Medium Businesses
Your Day-to-Day Transacting
Take up a BUSINESS CURRENT ACCOUNT
and you will get a dedicated RELATIONSHIP
MANAGER…
Our Standard Bank Relationship Managers understand
the importance the bank attaches in providing banking
facilities to businesses across various sectors.
A Business current account is the perfect vehicle
for your daily transacting. It can be used for accepting
payments made from your customers / stores to enabling
you to make various payments to your suppliers.
Accepting Customer Payments
Our AUTOLINK PAYMENT TERMINAL is ready to go…
Our AutoLink payment
terminals are not only
compact and easy to use,
but it also gives you the
option of personalising
your own transactions.
You can choose between
two types of terminals to best suit your need:
Stand-Alone Desktop Terminal: with built-in communication,
which saves you money as you do not
need to pay for a separate communication line
Portable Terminals; are great to avoid payment
queues, they also do not require electricity to work
Free Access to Merchant Online: an online selfservice
platform designed to give merchants online
access to statements and value-added tools, tips and
resources
Access to Full Support Services:
• FREE merchant education
• FREE device software updates
• FREE Installation
Our BluMobi device for instant payment…
BluMobi is an EMV certified
mobile point-of-sale
solution which allows
you to process PIN-based
MasterCard® and/or Visa
debit and credit card
payments instantly and securely wherever there is a
cellular network connection.
With BluMobi, you don’t have to wait for customers
to pay via EFT.
Your transactions are settled into your account
the same day.
SnapScan
Our SnapScan for business
offering is a quick and easy
method for you and your customers,
and works with any
South African bank. When
you’re sending out bills, you
want to make it as easy as possible
for your clients to pay you.
SnapScan a easily integrate with your current paper,
e-mail or SMS invoices, allowing your customers to pay
you from the comfort of their home.
QR CODE PLACED ON A
PHYSICAL STAND
QR CODE PLACED ON A NAME TAG
For more information regarding our offerings speak to your dedicated relationship manager
Accepting Customer Payments
When you’re sending out bills, you want to make it
as easy as possible for your customers to pay you.
SnapScan can easily integrate with your current paper,
e-mail or SMS invoices, allowing your customers
to pay you from the comfort of their own home. All
they need to do is to simply “snap” the QR code that
is printed / displayed on your invoice.
QR CODE
AUTOMATICALLY
PRINTED ON YOUR
INVOICES TO YOUR
CUSTOMERS
Growing Your Money
Speak to us about our BUSINESS SAVINGS & INVESTMENT accounts that are designed to
meet your needs…
I need to earn interest on balances
that I don’t have an operational
need for BUT I want immediate
access to them just in case an
emergency arises
I need a return on my money that
I know I don’t need immediately
and I am satisfied to provide the
bank with advanced notice before
I can access my money
I want an attractive interest rate
for money that I want to invest for
a much longer period of time that
is pre-determined by me
• MoneyMarket Call
• MarketLink
• Business Flexi Advantage
32 Day Notice Deposit
Fixed Deposit
Growing Your Business
Our FLEXIBLE REPAYMENT options are tailored to suit your cash flow needs...
Do you need a to buy a new delivery van, a flat-bed truck, a company car or new equipment
for your business? Our Vehicle and Asset Finance team can help to arrange a great deal
for you without tying up your valuable working capital by allowing you to choose:
To delay their
first payment by
up to 60 days
A specific month
each year to “skip”
a payment
To pay annually,
bi-annually or
quarterly
Structure repayments
up to 84 months for
new vehicles without a
“balloon” payment
For more information regarding our offerings speak to your dedicated relationship manager
Meeting your Payroll Needs
Speak to us about taking up a 2 Day FUTURE DATED EFTS payment service
• Business Online enables you to make electronic payments and inter-account transfers in a secure and
cost-effective manner, either domestically (Domestic Banking) or cross-border (International Banking)
• Our solutions address various requirements for once-off, ad hoc, regular, salary and supplier payments,
which can be made to reflect value as soon as possible or at a specified future date
• Transactions can be made on an individual basis or via batch instruction, and a variety of sight and value
options are available
BUSINESS
ON LINE
The business loads a payment file that is
submitted 2 days before action date
2 days later, the business is debited, with the
employee receiving sight and value on a
value-date selected
Meeting your Wage Needs for Temporary Workers
Instant Money Bulk
Payment Solution
• Payments can be made individually or in bulk by
uploading a spreadsheet or by capturing a individual
recipients details
• The recipient receives a voucher number directly
to their cellphone
• No bank account and no pre-registration
• The voucher is secured by a PIN
• Recipient can receive up to is R5,000 a day and
R25,000 per month, inline with FICA regulation (in
the absence of a bank account)
• The recipient may take the voucher number and
PIN to any Standard Bank ATM or any participating
retailer (Spar, Cambridge Food and Rhino Cash &
Carry stores)
Pay Card Solution
• PayCards are reloadable so they can be used for
multiple salary, wage payments or petty cash
payments to employees
• Reloadable prepaid cards take away the risk of
managing and carrying large amounts of cash
• Your employees can use the cards at ATMs to
withdraw cash, or at retailers to make purchases
• Cards are valid for 3 years
• Maximum load value is R5 000, and the maximum
value that can be loaded in a calendar month
is R25,000
• As the card provider you can be safe in the knowledge
that the PayCard(s) are not loaded or active
until the specified date and time and you can
distribute the PayCard(s) together with the PIN in
a sealed envelope before the cards are activated.
Protecting you Against Financial Loss
Our TAILORED INSURANCE SOLUTIONS are there to protect you…
KEY MAN INSURANCE BUSINESS INSURANCE PERSONAL INSURANCE
A business can experience significant
financial pressure as a result
of the loss (death or disability) of
a key person / people within a
business where the income of this
business is being threatened due
to specific knowledge that maybe
lost which is vital for making this
business work.
A one-stop shop for insurance
services and products, providing
cover for:
• Fire damage
• Factory contents
• Theft
• Glass
• Business all risks
• Employers liability
• Electronic equipment
A comprehensive suite of products,
providing cover for you and
your family for:
• Car and Household
• Loan Insurance
• Travel Insurance
• Accident & Health
• Funeral Insurance
• Life Insurance
For more information regarding our offerings speak to your dedicated relationship manager
OVERVIEW
Development finance and SMME
support
Programmes for cadets and Gazelles are on offer in the Northern Cape.
The provincial government’s commitment to supporting small
enterprises, rural enterprises and co-operatives was shown in
concrete form in 2016 with the support of 210 SMMEs and 91
co-operatives. Business and financial management training was
offered to 83 informal traders. In partnership with the Small Enterprise
Development Agency (Seda), nine cadets received training before
receiving work places at various municipalities.
Other steps taken by the provincial government to support co-ops
and SMMEs include:
• trading spaces allocated at Kimberley Diamond Cup (20)
• stalls allocated at Southern African International Trade Exhibition
for Retail Products
• preferential procurement from state-owned enterprises such as
Eskom or Transnet (36)
• training for clothing and textile manufacturing (25 women)
• hosting of national Technology for Women in Business awards
• hosting of Provincial Youth in Business Summit (150 young people)
• participation in Entrepreneurs’ Day (56 TVET students).
The Research and Development Unit within the Policy, Research and
Innovation Programme of the Department of Economic Development
and Tourism hosted an Economic Research Day at the Kalahari Lodge
in Kimberley in October 2016. The day, ”Making SMMEs work’’, brought
together support agencies, government and private companies such
as Petra Diamonds and Anglo American. The DEDAT’s Knowledge
Management and Innovation Unit made a presentation on innovation
and technology for small businesses. A Laptop Trolley was used
to demonstrate how ICT can assist business owners improve their
entrepreneurial skills and their business by using technology.
Specific investment opportunities that are being encouraged with
the SMME sector will see funds allocated to:
• a guest farm in the Pixely Ka Seme District (women, people with
disabilities and youth)
• a motor-focused business (tyres, shocks) to be run by young people
in Noupoort
• a youth business entity to acquire equity in a company manufacturing
toilet paper and a company that bottles water.
SECTOR INSIGHT
State-owned enterprises
favour SMMEs in procurement.
• Laptop trolley demonstrates
how ICT can help
entrepreneurs.
• A diamond incubator is
passing on relevant skills.
There is a plan to create a
Provincial Incubation Strategy
and planners are also looking into
creating a specialist Renewable
Energy Incubator to support
smaller entrants into that growing
sector. Many of the programmes
in the Northern Cape that
NORTHERN CAPE BUSINESS 2017/18
66
OVERVIEW
support small, medium and
micro enterprises focus on agricultural
production and food
security.
Partnerships
There are a number of active organisations
in the Northern Cape,
many of whom are in partnership
with organs of the provincial government,
and one another. The
Gazelles programme falls under
the Department of Small Business
Development. In the Northern
Cape the focus will be aligned
with the cluster approach to key
sectors: renewable energy; mining;
agriculture and agri-processing.
Seda is also a partner in the
Kimberley incubation hub related
to the Kimberley International
Diamond and Jewellery Academy.
So far the KIDJA has trained 45 students
who now qualify to work in
the diamond industry.
Training is offered in technical
skills related to jewellery manufacture
and also in the skills relevant to
starting a new business. Seda runs
49 incubators around the country.
There are six branches of Seda in
the province.
The Northern Cape has a
satellite office of the Seda unit
known as the Zenzele Technology
Demonstration Centre, offering
technical and research support to
small-scale mining and mineralrelated
enterprises.
The Company and Intellectual
Property Commission (CIPC) is to
set up a service point within the
relevant provincial department,
making it easier for SMMEs to
register.
Funding
The National Empowerment Fund is assisting in the setting up of a
provincial Enterprise Development Fund. An allocation of R5-million
has been made to seed the fund, and private sector investors are
expected to cooperate in creating a useful fund for new ventures.
The small town of Kathu is not the first place one would think of
in terms of tourism investment. Yet this is where entrepreneur Beyers
Myburgh located his Urban Hotel. The commodity cycle that has reduced
global demand for iron ore and other minerals means that the
accommodation boom of a few years ago has tapered off, but business
travellers still make their way to the Northern Cape, some of them in
search of opportunities in the renewable energy sector. Myburgh’s
first Urban Hotel is in Bloemfontein.
Backing him as a 51% investor is the Industrial Development
Corporation (IDC). Most of the hotel’s clients are business travellers
and 24 jobs have been created. The IDC is better known as an investor
in mega-projects but support is available, as in the case of Urban
Hotels, for smaller investments that can create jobs.
The biggest investment of the IDC in the Northern Cape is through
its stake in a new manganese mine and sinter plant located near
Hotazel. The IDC also has a 36.5% shareholding in Karsten Group
Holdings, a diversified agricultural and exporting company with a
primary focus on dates and table grapes. Karsten employs more than
4 000 people on a seasonal basis.
Through the IDC’s Transformation and Entrepreneurial Scheme,
a black economic empowerment project is under way at Kakamas,
where emerging farmers are planting citrus. Vaal Community Citrus
should create 1 330 jobs. The IDC is heavily invested in a large number
of solar-power projects that have been approved in the province.
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 and
funding to help businesses to comply with legislation.
ONLINE RESOURCES
Department of Small Business Development: www.dsbd.gov.za
Department of Trade and Industry: www.dti.gov.za
Development Bank of Southern Africa: www.dbsa.org
Industrial Development Corporation: www.idc.co.za
National Empowerment Fund: www.nefcorp.co.za
Small Enterprise Development Agency: www.seda.org.za
Small Enterprise Finance Agency: www.sefa.org.za
67 NORTHERN CAPE BUSINESS 2017/18
PROFILE
Northern Cape Chamber
of Commerce and Industry
Your ultimate business connection.
Our heritage in brief
NOCCI was established on 22 February 2000
when the Chamber of Business and the Kimberley
Afrikaanse Sakekamer amalgamated. At the time,
these two organisations had served the business
community of Kimberley for 120 years.
Membership advantages
A Chamber assesses and evaluates the needs of
the local business community, especially regarding
the need for services to small business at a
reasonable cost:
• Monitors developments at the local level
• Mobilises business opinion on local issues
• Exerts a positive influence on the environment in
which business operates and helps prospective
members grow their business
• Promotes and encourages the pursuit of a high
standard of business ethics
• Disseminates information that is useful to the business
fraternity
• Creates opportunities for improving business skills
• Extends business contacts locally, regionally and
nationally, and allows individual business-people
to share in the provincial and national business
decision-making processes
• Upholds the market economy and private
enterprise system
• Has committees which are ideal places for members
of diverse interests to consolidate and unify
their thinking as they work together- committees
accurately sense the environment, process information
and provide valuable guidance to the member
• Holds functions and special events, allowing members
to network and learn about interesting topics
Jaime Goncalves – KEW, Sharon Steyn CEO NOCCI, Hannes van Niekerk – SAW, Beverley Deke – NOCCI
Marketing, Samantha Lawrence – Duncan and Rothman, Charlene Zondagh – Halsted, Gert Klopper –
Petra Diamonds, President, Barend Olivier – Garden Court, Gerrie Cloete – Griquas Rugby Union, Pravashini
Kika – PA NOCCI, and Johan Theron – Standard Bank – Treasurer. Absent: Marie Parsons – Parsons Home
Appliance, NOCCI Ist Vice Chairperson, Peter Hanson - Astra Travel and Lorraine Mcanda - Nedbank.
NORTHERN CAPE BUSINESS 2017/18
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PROFILE
Through affiliation with national organised business
structures, the “Voice of Business” is representative
as memberships grows. The “Voice of Business” is a
binding force combining the skills and influences of
men and women engaged in all forms and sectors
of business.
Can you afford not to belong?
The increasingly complex business and social environment
requires a comprehensive support structure
to ensure the most favourable climate for the
continued viable existence of individual businesses
in a system of free enterprise. At the same time,
the Chamber movement facilitates adjustment by
business to those realities that cannot be altered.
Involvement in the Chamber movement bears
abundant fruit for the well-being of each business.
Thousands of successful businesspeople can testify
to the enrichment of their own skills and the
development of a network base through active
participation in the Chamber affairs. If you are a
businessperson with vision, you cannot afford not
to join the Chamber movement.
Executive Committee of NOCCI
President: Gert Klopper (Petra Diamonds)
Vice-President: Marie Parsons (Parsons Home
Appliances)
Treasurer: Johan Theron (Standard Bank)
Executive members: Barend Olivier (Garden Court
Kimberley), Charlene Zondagh (Halsted), Gerrie Cloete
(Griquas Rugby Union), Hannes van Niekerk (Super
Armature Winding), Jaime Goncalves (KEW Foundries),
Lorraine Mcanda (Nedbank), Samantha Lawrence
(Duncan & Rothman), Peter Hansen (Astra Travel)
Staff: Sharon Steyn (CEO), Pravashini Kika (PA to CEO),
Beverley Deke (Marketing/PRO)
CONTACT INFO
CEO NOCCI: Kimberley: Sharon Steyn
Tel: +27 53 831 1081 | Fax: +27 53 831 1082
Cell: 083 457 8148 | Email: Sharon@nocci.co.za
EXPO AND TRADE FAIR
Hosted by NOCCI in association with OFM
KIMBERLEY: 3 - 5 AUGUST 2017
MITTAH SEPEREPERE
CONVENTION CENTRE
Face -to-face interaction is the best way to build
business relationships with suppliers and peers.
Who will attend?
Corporate managers, engineers, sales managers,
plant managers, the public, research/
development and purchasers.
What NOCCI Expo and Trade Fair offers
NOCCI offers you the keys to gaining a competitive
edge. In a single trip, you can visit all
your vendors. You have a chance to source new
suppliers, get ideas from other industries and
pursue professional development.
No other show in the Northern Cape offers so
much.
Stands
The Expo has grown from 62 stands. In 2017
a total of 180 stands are expected to be sold.
Stands are located in the auditorium of the
convention centre.
Seize this amazing opportunity and BOOK YOUR
STAND NOW.
Nocci Members: R6 500
Non-members: R8 500
Contact Beeda on Cell No: 083 279 2929
69
NORTHERN CAPE BUSINESS 2017/18
LISTING
South African National Government
An overview of South Africa’s national government departments.
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
Postal address: Private Bag X1000, Pretoria 0001
Tel: +27 12 300 5200
Fax: +27 12 323 8246
Website: www.thepresidency.gov.za
Minister in the Presidency
Address: Union Buildings, Government Avenue, East Wing,
1st Floor, Arcadia, Pretoria 0001
Postal address: Private Bag X1000, Pretoria 0001
Tel: +27 12 300 5200
Fax: +27 12 300 5795
Website: www.thepresidency.gov.za
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
Postal address: Private Bag X899, 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
Postal address: Private Bag X745, 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
Postal address: Private Bag X802, Pretoria 0001
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
Postal address: Private Bag X136, 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
Postal address: Private Bag X149, Pretoria 0001
Tel: +27 12 394 1006
Fax: +27 12 394 0255
Website: www.economic.gov.za
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LISTING
Department of Defence
Address: cnr Delmas Avenue & Nossob St, Erasmuskloof, Pretoria 0001
Postal address: Private Bag X427, 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
Postal address: Private Bag X96, 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
Postal address: Private Bag X447, Pretoria 0001
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
Postal address: Private Bag X115, Pretoria 0001
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
Postal address: Private Bag X399, 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
Postal address: Private Bag X893, 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
Postal address: Private Bag X114, Pretoria 0001
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
Postal address: Private Bag X644, 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
Postal address: Private Bag X152, 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
Postal address: Private Bag X276, 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
Postal address: Private Bag X499, 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
Postal address: Private Bag X943, 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
Postal address: Private Bag X59, Pretoria 0001
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
Postal address: Private Bag X463, Pretoria 0001
Tel: +27 12 393 2800 | Fax: +27 12 393 2812
Website: www.saps.gov.za
71 NORTHERN CAPE BUSINESS 2017/18
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
Postal address: Private Bag X884, Pretoria 0001
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
Postal address: Private Bag X65, Pretoria 0001
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
Postal address: Private Bag X833, 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
Postal address: Private Bag X727, 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
Postal address: Private Bag X84, 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
Postal address: Private Bag X904, 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
Postal address: Private Bag X896, 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
Postal address: Private Bag X424, 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
Postal address: Private Bag X274, Pretoria 0001
Tel: +27 12 394 1568 | Fax: +27 12 394 0337
Website: www.thedti.gov.za
Department of Transport
Address: Forum Building, 159 Struben Street,
Room 4111, Pretoria 0001
Postal address: Private Bag X193, Pretoria 0001
Tel: +27 12 309 3131 | Fax: +27 12 328 3194
Website: www.transport.gov.za
Department of Telecommunications and
Postal Services
Address: Iparioli Office Park, 399 Jan Shoba Street,
Hatfield, Pretoria 0001
Postal address: Private Bag X860, Pretoria 0001
Tel: +27 12 427 8000 | Fax: +27 12 427 8016
Website: www.dtps.gov.za
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Department of Water and Sanitation
Address: Sedibang Building, 185 Frances Baard Street,
Pretoria 0001
Postal address: Private Bag X313, 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
Postal address: Private Bag X931, 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.
73
NORTHERN CAPE BUSINESS 2017/18
LISTING
Northern Cape
Provincial Government
A guide to the Northern Cape’s provincial government departments.
Visit www.northern-cape.gov.za.
Office of the Premier
Premier: Sylvia Lucas
JW Sauer Building, 6th Floor, cnr Roper and Quinn streets, Kimberley 8301
Tel: +27 53 838 2600 / 2900 | Fax: +27 53 838 2690
Website: www.northern-cape.gov.za
Department of Agriculture, Land Reform and
Rural Development
MEC: Norman Shushu
162 George Street, Kimberley 8301
Tel: +27 53 838 9100 / 087 630 0887 | Fax: +27 53 831 4685 / 3635
Website: www.agricnc.gov.za
Department of Cooperative Governance,
Human Settlements and Traditional Affairs
MEC: Alvin Botes
JS du Plooy Building, 9 Cecil Sussman Road, Kimberley 8301
Tel: +27 53 830 9422 | Fax: +27 53 831 4832 / 4308 / 2904
Website: www.coghsta.ncpg.gov.za
Department of Economic Development and
Tourism
MEC: McCollen (Mac) Jack
14th Floor, Metlife Towers, cnr Knight and Stead streets, Kimberley 8301
Tel: +27 53 839 4000 | Fax: +27 53 832 6805
Website: www.economic.ncape.gov.za/
Department of Education
MEC: Martha Bartlett
156 Barkley Road, Homestead, Kimberley 8301
Tel: + 27 53 839 6500 | Fax: +27 53 839 6580
Website: www.ncedu.ncape.gov.za
Department of Health
MEC: Lebogang Motlhaping
144 Dutoitsta Road, Kimberley 8301
Tel: +27 53 830 2100
Fax: +27 53 833 4394
Department of Environment
and Nature Conservation
MEC: Tiny Chotelo
90 Long Street, Kimberley 8301
Tel: +27 53 807 7300 | Fax: +27 53 807 7328
Website: www.denc.ncpg.gov.za/
Department of Roads and Public Works
MEC: Mxolisi Sokatsha
9-11 Stockroos Road, Square Hill Park, Kimberley 8301
Tel: +27 53 839 2100
Fax: +27 53 839 2291
Website: www.ncrpw.ncpg.gov.za
Department of Social Development
MEC: Gift van Staden
Mimosa Complex, Barkley Road, Homestead, Kimberley 8301
Tel: +27 53 874 9100
Fax: +27 53 871 1062
Department of Sport, Arts and Culture
MEC: Bongiwe Mbingo-Gigaba
32 Abbatoir Road, Kimberley 8301
Tel: +27 53 807 4700
Fax: +27 53 807 4600
Department of Transport, Safety and Liaison
MEC: Pauline Williams
cnr Lennox and Sydney Roads, Kimberley 8301
Tel: +27 53 839 1700
Fax: +27 53 839 1773
Provincial Treasury
MEC: McCollen (Mac) Jack
14th Floor, Metlife Towers, cnr Knight and Stead streets,
Kimberley 8301
Tel: +27 53 830 8200
Fax: +27 53 831 4235
NORTHERN CAPE BUSINESS 2017/18
74
LISTING
MUNICIPALITIES IN THE NORTHERN CAPE
N
BOTSWANA
Metropolitan/District Municipality Boundary
Local Municipality Boundary
District Municipality
Local Municipality
Siyanda
Richtersveld
NCDMA08
NAMIBIA
Mier
NCDMA045
John Taolo
Gaetsewe
Joe Morolong
North West
Richtersveld
NCDMAO8
Siyanda
//Khara Hais
!Kai! Garib
!Kheis
NCDMA07
Gamagara
Ga-
Segonyana
NCDMA09
Magareng
Kgatelopele
Frances Baard
Tsantsabane
Dikgatlong
Siyancuma
Phokwane
Sol
Plaatje
Nama Khoi
Kamiesberg
Khâi-Ma
NCDMA06
NCDMA08
Namakwa
Siyathemba
Thembelihle
NCDMA07
Renosterberg
Pixley Ka Seme
Free State
Kareeberg
Emthanjeni
Umsobomvu
Hantam
Ubuntu
Karoo Hoogland
Eastern Cape
Western Cape
75 NORTHERN CAPE BUSINESS 2017/18
LISTING
Northern Cape Local Government
A guide to district and local municipalities in the Northern Cape Province.
FRANCES BAARD DISTRICT MUNICIPALITY
Physical address: 51 Drakensberg Avenue,
Carters Glen, Kimberley 8301
Postal address: Private Bag X6088, Kimberley 8300
Tel: +27 53 838 0911 | Fax: +27 53 861 1538
Website: www.francesbaard.gov.za
Dikgatlong Municipality
Tel: +27 53 531 6500 | Fax: +27 53 531 0624
Website: www.dikgatlong.co.za
Magareng Municipality
Tel: +27 53 497 3111/2/3 | Fax: +27 53 497 4514
Website: www.magareng.gov.za
Phokwane Municipality
Tel: +27 53 474 9700 | Fax: +27 53 474 1768
Website: www.phokwane.org.za
Sol Plaatje Municipality
Tel: +27 53 830 6911 / 6100 | Fax: +27 53 833 1005
Website: www.solplaatje.org.za
JOHN TAOLO GAETSEWE
DISTRICT MUNICIPALITY
Physical address: 4 Federal Mynbou Street, Kuruman 8460
Postal address: PO Box 1480, Kuruman 8460
Tel: +27 53 712 8700 | Fax: +27 53 712 2502
Website: www.taologaetsewe.gov.za
Gamagara Municipality
Tel: +27 53 723 6000 | Fax: +27 53 723 2021
Website: www.gamagara.gov.za
Ga-Segonyana Municipality
Tel: +27 53 712 9000 | Fax: +27 53 712 3581
Website: www.ga-segonyana.gov.za
Joe Morolong Municipality
Tel: +27 53 773 9300 | Fax: +27 53 773 9350
Website: www.joemorolong.gov.za
NAMAKWA DISTRICT MUNICIPALITY
Physical address: Van Riebeeck Street, Springbok 8240
Postal address: Private Bag X20, Springbok 8240
Tel: +27 27 712 8000 | Fax: +27 27 712 8040
Email: info@namakwa-dm.gov.za
Website: www.namakwa-dm.gov.za
Hantam Municipality
Tel: +27 27 341 8500 | Fax: +27 27 341 8501
Website: www.hantam.gov.za
Kamiesberg Municipality
Tel: +27 27 652 8000 | Fax: +27 27 652 8001
Website: www.kamiesbergmun.co.za
Karoo Hoogland Municipality
Tel: +27 53 391 3003 | Fax: +27 53 391 3294
Website: www.karoohoogland.co.za
Khâi-Ma Municipality
Tel: +27 54 933 1000 | Fax: +27 54 933 0252
Nama Khoi Municipality
Tel: +27 27 718 8100 | Fax: +27 27 712 1635
Website: www.namakhoi.org.za
Richtersveld Municipality
Tel: +27 27 851 1111
Fax: +27 27 851 1101
Website: www.richtersveld.gov.za
PIXLEY KA SEME DISTRICT MUNICIPALITY
Physical address: Culvert Road, Industrial Area, De Aar 7000
Tel: +27 53 631 0891
Fax: +27 53 631 2529
Website: www.pksdm.gov.za
Emthanjeni Municipality
Tel: +27 53 632 9100
Fax: +27 53 631 0105
Website: www.emthanjeni.co.za
NORTHERN CAPE BUSINESS 2017/18
76
LISTING
Kareeberg Municipality
Tel: +27 53 382 3012 | Fax: +27 53 382 3142
Website: www.kareeberg.co.za
Renosterberg Municipality
Tel: +27 53 663 0041 | Fax: +27 53 663 0180
Siyancuma Municipality
Tel: +27 53 298 1810 | Fax: +27 53 298 3141
Siyathemba Municipality
Tel: +27 53 353 5300 | Fax: +27 53 353 1386
Website: www.siyathemba.co.za
Thembelihle Municipality
Tel: +27 53 203 0008/5 | Fax: +27 53 203 0490
Website: thembelihlemunicipality.gov.za
Ubuntu Municipality
Tel: +27 53 621 0026 | Fax: +27 53 621 0368
Website: www.ubuntu.gov.za
Umsobomvu Municipality
Tel: +27 51 753 0777/8 | Fax: +27 51 753 0574
ZF MGCAWU DISTRICT MUNICIPALITY
Physical address: cnr Le Roux and Hill streets, Upington 8801
Tel: +27 54 337 2800 | Fax: +27 54 337 2888
Website: www.zfm-dm.co.za
Kai! Garib Municipality
Tel: +27 54 461 6400 / 6700 | Fax: +27 54 461 6401
Kgatelopele Municipality
Tel: +27 54 384 8600 | Fax: +27 53 384 0326
Dawid Kruiper Municipality
Tel: +27 54 531 0019
Fax: +27 54 531 0019
Website: www.dkm.gov.za
!Kheis Municipality
Tel: +27 54 833 9500 | Fax: +27 54 833 0690
Website: www.kheis.co.za
Tsantsabane Municipality
Tel: +27 53 313 7300
Fax: +27 53 313 1602
Website: www.tsantsabane.gov.za
NORTHERN CAPE PROVINCE
Motorway
Main Road
Railway
N
Union’s End
BOTSWANA
North West
N18
NAMIBIA
Rietfontein
Askham
Van Zylsrus
Vryburg
Hotazel
N14
Kuruman
R31
Sishen
Hartswater
Warrenton
Christiana
N10
N14
R31
N12
Upington
Postmasburg Ulco Barkly West
Onseepkans Augrabies
Campbell R64
Keimoes
N14
Alexander Bay Vioolsdrif
Kakamas
Groblershoop KIMBERLEY
Douglas Ritchie
N8
N10
Pofadder
Port Nolloth
Kenhardt
Steinkopf N14
Marydale
Nababeep
Prieska Hopetown
Okiep
N12
Kleinsee Springbok
Strydenburg
N7
Petrusville
Van Wyksvlei
Kamieskroon
R48
Brandvlei
Hondeklipbaai
Vosburg Britstown
Colesberg
Garies
De Aar
N10
Loeriesfontein
Carnarvon
N1 N9
Hanover
N12
Noupoort
R63
R63
Nieuwoudtville
Richmond
Williston
Loxton
Victoria West
R27
Calvinia
Middelburg
Vredendal Vanrhynsdorp
Fraserburg
N1
Three Sisters R63
N9
N7
Clanwilliam
Graaff-Reinet
Beaufort West
Sutherland
Eastern Cape
Somerset East
N1
N12
R45 Western Cape
R75
Saldanha
R27
N7
Willowmore
Oudtshoorn
R44 Worcester
R62
N9
Uitenhage
Paarl N1
George
N15
N2 PORT ELIZABETH
CAPE TOWN Stellenbosch
Knysna
N2
Jeffreys Bay
Mossel Bay
Caledon
Hermanus
Free State
NAMIBIA
NORTHERN CAPE
Western Cape
BOTSWANA
North West
Free State
Eastern Cape
Limpopo
ZIMBABWE
Mpumalanga
Gauteng
SWAZI-
LAND
LESOTHO
KwaZulu-
Natal
MOZAMBIQUE
77 NORTHERN CAPE BUSINESS 2017/18
PROFILE
Frances Baard
District Municipality
Frances Baard District Municipality is the smallest district in the Northern Cape;
however, it accommodates the largest proportion of the population of the province.
Vision
To be a municipality with a clear developmental
focus, providing quality services to its people.
Economic profile
Frances Baard District Municipality is the strongest
economic region in the province, accounting for 36%
of the provincial gross domestic product (PGDP).
The economy of the district consists of the primary
(agriculture and mining), secondary (manufacturing,
electricity and construction) and tertiary (trade,
transport, financial and social services) sectors.
Mandate
The Frances Baard District Municipality (FBDM) is an
open, transparent and accountable organisation,
providing sound governance, stable financial viability
and prudent leadership. Administration remains
focussed on the Council’s priorities and set targets for
delivery to provide the performance and results that
drive the municipality. The FBDM strives to promote
sound financial management and good governance
in order to perform its developmental role. The
municipality follows a practice of sound, conservative
budgeting aimed at enhancing financial resources.
An effective governance framework, systems, policies
and structure are absolutely crucial to the proper
functioning of a district municipality such as Frances
Baard. Good governance is a concept that describes
the process through which the municipality sets
priorities, makes decisions, strengthens accountability
and engages in constructive interaction with the
public and other institutions.
Ms Buyiswa Ximba,
Executive Mayor.
Ms ZM Bogatsu,
Municipal Manager.
The municipality has a mandate to:
• Provide a democratic and accountable
government for local municipalities
• Ensure the provision of services to communities
in a sustainable manner
• Promote a safe and healthy environment
• Encourage the involvement of communities and
community organisations in the matters of local
government.
The district municipality has been assigned level
one and two accreditation in terms of the housing
function. Level-two accreditation status gives
municipalities the responsibility to approve and
manage housing-construction programmes and
ensure technical quality assurance.
Geography
Frances Baard District Municipality is the smallest
district in the Northern Cape and has a geographical
area of 13 518.19km 2 . However, it accommodates
the largest proportion of the population of the
province, giving it the highest population density.
The municipality is located in the far eastern portion
of the province. It shares its northern borders with
the North West Province and its eastern border with
NORTHERN CAPE BUSINESS 2017/18
78
PROFILE
Free State Province. Kimberley, which is where the
district municipality is located, is less than 500km
away from Johannesburg in the north and less than
1 000km away from Cape Town in the south and
the Port of Durban in the east. It compromises the
four local municipalities of Dikgatlong, Magareng,
Phokwane and Sol Plaatje. The main towns are
Kimberley, Hartswater, Jan Kempdorp, Barkly West
and Warrenton.
Tourism
Although predominantly a mining and agricultural
region, Frances Baard District Municipality also offers
rich experiences in terms of culture and history.
Two of the largest rivers, the Orange and Vaal, flow
through the district.
Kimberley is the capital city of the Northern
Cape. It is situated in the centre of South Africa.
Kimberley offers visitors a plethora of fascinating
tourist attractions such as: the William Humphrey
Art Gallery, the Duggan Cronin Gallery, which
holds a collection of early photographs of Africans,
various old buildings and monuments dating back
to 1899, Flamingo Casino, game farms, Kamfers Dam
(flamingo-breeding island), Ghost Tours and the “Big
Hole” Tram Route.
Local economic development
Ongoing focus areas in terms of LED are the
strengthening of SMME development by providing
individuals and cooperatives with, among other
things, training about tender processes and
regulations, pricing strategies and how to implement
and determine the correct price. SMMEs are also
assisted to take part in events such as arts festivals
to expose them to the competitive environment
in order for them to find suitable markets for
their products.
The district municipality is running a youth
entrepreneurial development programme with
the aim to support local municipalities and young
graduates. The training of the graduates in LED helps
to increase competent practitioners in this field in
the district and exposes the graduates to business
opportunities.
The district municipality assists new co-operatives
with registration and acts as liaison for them to
increase accessibility to incentive schemes and other
government incentives.
Tourism for development
A key focus is the development of a tourism route
in the Frances Baard District. The project aims to
enhance and promote tourism attractions along
the N18 between Warrenton and Hartswater, which
will disperse visitors in the district and create new
product development opportunities.
Another priority is the development of the river banks
close to the Gong-Gong Waterfall in Dikgatlong
Municipality as a safe, attractive and durable tourist
destination that also promotes the significant cultural
and historical attractions in the area.
Key facts and figures
Local municipalities: Dikgatlong Municipality,
Magareng Municipality, Phokwane Municipality,
Sol Plaatje Municipality
Major towns: Kimberley, Barkly West, Warrenton,
Jan Kempdorp, Hartswater
Main roads: N12, N18, R29, R47
Airports: Kimberley Airport
Area covered: 13 518.19km²
CONTACT INFO
Executive Mayor: Buyiswa Ximba
Speaker: McDonald Silingile
Municipal Manager: Mamikie Bogatsu
Tel: +27 53 838 0911 | Fax: +27 53 861 1538
Email: gerline.roman@fbdm.co.za
Physical address: 51 Drakensberg Avenue,
Carters Glen 8301
Postal address: Private Bag X6088,
Kimberley 8300
Website: www.francesbaard.gov.za
79 NORTHERN CAPE BUSINESS 2017/18
INDEX
INDEX
Frances Baard District Municipality ..............................................................................................................78
Nedbank ......................................................................................................................................................... 34 - 37
Northern Cape Chamber of Commerce (NOCCI)................................................................................... 68
Northern Cape Department of Economic Development and Tourism ................................IFC, OBC
Old Mutual .................................................................................................................................................... 38 - 41
Petra Diamonds....................................................................................................................................................56
SA Airlink .............................................................................................................................................................. IBC
South African Table Grape Industry (SATI) .................................................................................................50
Standard Bank............................................................................................................................................. 63 - 65
Unemployment Insurance Fund (UIF)..............................................................................................................3
NORTHERN CAPE BUSINESS 2017/18
80
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Promotion of Economic Growth and Economic
Development in the Northern Cape Province
Physical: Metlife Towers,
13th Fl, Cnr Stead & Knight Sts, Kimberley, 8309
Postal: Private Bag X6108, Kimberley, 8300
Tel: 053 839 4000 | Fax: 053 832 6805
Web: http://economic.ncape.gov.za
Email: dedat@ncpg.gov.za
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