Free State Business 2017 edition

christoffscholtz

Free State Business 2017 is the seventh edition of this highly successful publication that has since its launch in 2008 established itself as the premier business and investment guide to Free State Province. Supported and utilised by the Free State Development Corporation (FDC), Free State Business is unique as a business journal that focuses exclusively on the Free State.

FREE STATE

BUSINESS

2017 EDITION

THE GUIDE TO BUSINESS AND INVESTMENT

IN THE FREE STATE PROVINCE

JOIN US ONLINE

WWW.FREESTATEBUSINESS.CO.ZA

Mangaung

Metropolitan


Sasolburg Operations –

cornerstone of Sasol’s

South African footprint

Sasol transformed from a single

petrochemical site, today known

as Sasolburg Operations, to an

international integrated chemicals

and energy company that leverages

technologies and the expertise of

30 400 people working in 36 countries.

Sasol develops and commercialises

technologies, and builds and operates

world-scale facilities to produce a

range of high-value product streams,

including liquid fuels, chemicals and

low-carbon electricity.

As a Regional Operating Hub,

Sasolburg Operations remains one of

the cornerstones of Sasol’s Southern

African footprint, contributing to job

creation, sustainable development

and security of supply in chemicals. On

our three operating sites in Sasolburg,

being the Sasol One, Midland and

Bunsen sites, we produce products

such as wax, ammonia and ammonia

nitrate, ethylene, solvents, acrylic

acids, chlorine, cyanide and PVC, while

also generating low-carbon electricity.

A R16,4 bilion capital expenditure

investment at Sasolburg Operations

initiated in 2009, has substantially

increased our wax production,

expanded our polyethylene production

and enables us to generate low-carbon

electricity.

We also play a constructive role as

an active corporate citizen through

various social investment initiatives.


Sasol Business Incubator accelerates

SMME development

A growing SMME sector is vital for

broadening economic participation

and delivering on the economic

development objectives of our host

communities.

Sasol therefore developed the

Sasol Business Incubator (SBI) in

Sasolburg through a public-private

partnership between Sasol and the

Department of Trade and Industry

(the dti) to accelerate the successful

development primarily of local start-up

small, medium and micro enterprises

(SMMEs).

The incubator provides an array of

business, technical and financial

related support solutions as well as

fully equipped manufacturing facilities,

essential business infrastructure and

a network of experts and services.

Our approach is to nurture, grow and

sustain SMMEs by providing technical

and business development support,

through mentoring and coaching.

For more information, contact us on

016 960 3763 or info.esd@sasol.com.

Learn more at www.sasol.com.


CONTENTS

CONTENTS

Free State Business 2017 Edition

Introduction

Foreword 4

Free State Business is a unique guide to business, investment and tourism

in the province.

A commitment to inclusive growth 5

CEO of the FDC Ikhraam Osman invites business people to explore the

opportunities on offer in the Free State.

Special features

Regional overview of the Free State 6

New infrastructure and incentives to manufacturers are attracting

investments to the Free State Province.

Free State Development Corporation opportunities 10

The Free State Development Corporation is driving a number of exciting

investment opportunities in the Free State province.

South African economy at a glance 22

Insight into the performance of the South African economy is provided

through these graphical representations of key statistics.

SA investment incentives 26

The South African government, particularly the Department of Trade

and Industry, has a range of incentives available to investors, existing

companies, entrepreneurs and co-operatives across many sectors.

Establishing a business in SA 28

The barriers to doing business in South Africa have been eased for local

and international companies.

FREE STATE BUSINESS 2017

4


Letsemeng

Tokologo

Xhariep

Mohokare

Metsimaholo

Fezile Dabi

Mafube

Ngwathe

Nala

Moqhaka

Phumelela

Nketoana

Matjhabeng

Thabo Mofutsanyana

Tswelopele

Maluti-a-Phofung

Lejweleputswa

Dihlabeng

Setsoto

Masilonyana

Mangaung

Kopanong

Naledi

Mantsopa

Metropolitan/District

Municipality boundary

Local Municipality Boundary

District Municipality Xhariep

Local Municipality

Naledi

Economic sectors

CONTENTS

Agriculture 40

The grain-rich Free State is investing in poultry operations.

Mining 43

Diamond mines are expanding production.

Oil and gas 46

Sasolburg is at the heart of South Africa’s oil and gas industry.

Manufacturing 48

The Free State’s Special Economic Zone is attracting new

manufacturing investment.

Transport and logistics 50

The Free State is a logistics hub.

Tourism 55

Cultural tourism is a new focus for the Free State.

Education and training 58

Access to education is growing fast in the Free State.

Government

Free State provincial government 60

A guide to the provincial government departments.

Free State local government 62

A guide to metropolitan, district and local municipalities.

Reference

MUNICIPALITIES IN THE FREE STATE

North West

Gauteng

Mpumalanga

Sector contents 38

Northern Cape

N

Eastern Cape

KwaZulu-

Natal

LESOTHO

Maps

Regional map 9

Municipal map 63

5 FREE STATE BUSINESS 2017


MESSAGE

Free State Business

A unique guide to business and investment in the Free State.

Free State Business 2017 is the seventh edition of this highly

successful publication that has since its launch in 2008 established

itself as the premier business and investment guide

to Free State Province. Supported and utilised by the Free

State Development Corporation (FDC), Free State Business is unique

as a business journal that focuses exclusively on the Free State. It

has an independently audited and verified print run of 10 000

copies, an e-book edition hosted at www.freestatebusiness.co.za, and

a monthly e-newsletter for up-to-date news and announcements.

Global Africa Network Media (www.gan.co.za), the publisher

of Free State 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 title,

South African Business, and the business matchmaking online platform

Matchdeck.com.

Chris Whales

Publisher, Global Africa Network Media

Email: chris@gan.co.za

CREDITS

Publisher: Chris Whales

Publishing director:

Robert Arendse

Editor: Simon Lewis

Writing: John Young,

Karen Kühlcke, and Simon Lewis

Online editor: Christoff Scholtz

Art director: Brent Meder

Design: Colin Carter

Production: Lizel Oliver

Ad sales: Sam Oliver,

Gabriel Venter, Jeremy Petersen,

Nigel Williams, and

Sydwell Adonis

Managing director: Clive During

Administration & accounts:

Charlene Steynberg and

Natalie Koopman

Distribution and circulation

manager: Edward MacDonald

Printing: FA Print

DISTRIBUTION

Free State Business is distributed internationally on outgoing

and incoming trade missions, through the Free State

Development Corporation (FDC); 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,

airport lounges, provincial government departments, municipalities

and companies.

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 1999-5059

COPYRIGHT | Free State 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 | COVER: Sibanye Gold’s Beatrix 3 Shaft

Photographer: Cindy Brown. Pictures supplied by flickr.com,

Anglo American, Wikimedia Commons, Afrox, Free State Tourism,

RailnetPictures, and Pixabay.

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

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

in Free State 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.

FREE STATE BUSINESS 2017

6


MESSAGE

A commitment to

inclusive growth

CEO of the FDC Ikhraam Osman invites business people

to explore the opportunities on offer in the Free State.

IKHRAAM OSMAN

CEO, Free State Development

Corporation

The period from 2010 has

been characterised by a

global economic slowdown,

which has also affected

emerging markets. Growth in

the BRICS countries (Brazil, Russia,

India, China and South Africa) has

declined from about 9% in 2010

to 4% in 2015.

Both external and domestic

as well as cyclical and structural

factors have contributed to the

slowdown in emerging markets.

Generally, external factors have

been the main cause of the

slowdown and these factors

include weak global economic

performance due to falling

commodity prices.

However, South Africa has

made impressive social progress

over the past two decades, lifting

millions of people out of poverty

and broadening access to essential

services like water, electricity

and sanitation. Now is the time to

build on these successes to reduce

inequality further, create badly needed jobs and ensure stronger, sustainable

and more inclusive growth for all according to the OECD Survey 2015.

Economic growth in South Africa has not been inclusive enough

during the first 22 years of democratic South Africa. Government is

tackling infrastructure bottlenecks and improving business regulations

that could boost job creation. Improving wage negotiations and job

matching would also promote more inclusive growth.

In line with the Free State Growth & Development Strategy (FSGDS)

and the FDC Act (Act No 6 of 1995), the FDC will continue to unlock

business opportunities for both local direct and foreign direct investors

in an effort to broaden access to economic prosperity.

This 2017 Free State Business publication presents the Free State province’s

value proposition as a business and tourism destination. The

province is open for business as is demonstrated annually through the

hosting of the Free State Global Investors Trade Bridge. The event is

complemented by “Macufe”, the Mangaung African Cultural Festival

that annually brings up to 150 000 travellers into Bloemfontein or “the

City of Roses” as it is commonly known.

We invite visitors to explore some of the key opportunities in the Free

State, which include the following:

• The fact that the province is a leading agricultural commodities

producer, presenting significant opportunities across the agroprocessing

value chain

• Mangaung Metropolitan Municipality has announced a R100-billion

infrastructure investment programme to unlock business, retail, real

estate and infrastructure development along the N8 Corridor

• A newly gazetted Special Economic Zone attracting investments in

food processing, manufacturing, logistics and beverages

The FDC investment facilitation team would help you to explore business

opportunities in the Free State and assist you to set up and operate a

business here. For more information, please peruse this business guide.

www.fdc.co.za

7 FREE STATE BUSINESS 2017


A REGIONAL OVERVIEW OF

FREE STATE

PROVINCE

Growing a diverse economy

New infrastructure and incentives to manufacturers are attracting investments to the

Free State Province. Two of the great pillars of the provincial economy — agriculture

and mining — remain important but there are exciting growth shoots in new sectors

such as solar energy, manufacturing and gas.

The third important pillar of the economy of

the Free State, the chemicals and fuels hub

at Sasolburg, is modernising and expanding.

International fuel, gas and chemicals company,

Sasol, regularly invests in new technologies and

expanding production of its various products.

Chief among the infrastructure that has been put

in place is the Maluti-A-Phofung Special Economic

Zone at Harrismith. This zone offers attractive investment

incentives and leverages the site’s position on

the busy N3 highway to promote enterprises in the

logistics sector. Parks within the SEZ are designed

to encourage companies from related sectors such

as agri-processing.

A new water pipeline from the Gariep Dam is

being built to serve the Xhariep District and the

Mangaung Metro. A steady and reliable water source

is an important component in attracting investment.

The first Free State Global Investor Trade Bridge

in 2015 resulted in agreements that were signed

between the province and delegations from Angola,

China, Russia, Turkey and India. The SEZ was an

important element in selling the province’s attractiveness

as an investment destination.

Five major, national highways intersect the centrally

located province, which is also well served

by rail and air links. The Bram Fischer International

Airport in the provincial capital city of Bloemfontein

is the site of a multi-phase industrial and commercial

development. Two leading universities (the

University of Free State and the Central University of

Technology) have several campuses across the province.

In 2016, the provincial government’s internship

programme supported more than 500 graduates.

There are currently 279 students placed in provincial

departments and municipalities as interns. A potentially

game-changing development in the local

economy is the building of a R200-million helium

extraction plant to exploit a natural gas and helium

field, which has been identified near the towns of

Virginia, Welkom and Theunissen. With proven reserves

of 25-billion cubic feet, the rights to the field

are owned by Renergen and they will be worked by

Afrox, a subsidiary of the Linde Group of Germany.

FREE STATE BUSINESS 2017

8


SPECIAL FEATURE

the rural economy and provide opportunities for

investors.

Gold is mined mainly in the north-western

parts of the province, in two clusters. AngloGold

Ashanti has assets on the border of the Free State

and North West provinces, as well as several mines

in the Welkom-Virginia belt. Sibanye Gold mines the

Beatrix Gold Mine in the latter area. Coal is mined in

the north to feed power stations. Mining makes up

10% of provincial GDP.

The Free State shares its borders with six other

provinces, in addition to the Mountain Kingdom of

Lesotho. A summer-rainfall region with a mean annual

rainfall of 532mm, the Free State’s climate, soil

types and topography vary greatly within the province,

with plains in the west and mountains in the

east. The western and southern areas are semi-desert,

with some Karoo vegetation occurring in the south.

The Free State produces significant proportions

of South Africa’s wheat (30%), sunflowers (50%) and

maize (45%). As such, it is ranked third in contribution

to national GDP in agriculture, despite accounting

for only 5% of South Africa’s overall GDP (FNB

Chartbook).

Another emerging sector is solar energy. The

Xhariep, Lejweleputswa and Mangaung regions

have among the best direct solar radiation

kWh/m² in the country. The Renewable Energy

Independent Power Producer Procurement

Programme, is creating opportunities for private

investors to build and operate solar generation

plants in the Free State. Rezoning for solar

farms has already taken place in Theunissen,

Bloemfontein, Fauresmith and Hoopstad.

In rural areas, the provincial government intends

rolling out Agri-parks. These hubs, which will

include processing facilities, are intended to help

small-scale farmers expand their operations, but

should also provide opportunities for existing enterprises

to invest in new markets. Infrastructure to

support these parks has begun at Parys, Tshiame,

Thaba Nchu, Springfontein and Wesselsbron.

In a similar vein, the use of small towns such

as Cornelia, Tweeling, Excelsior and Tweespruit

as hubs under the Comprehensive Rural

Development Programme (CRDP) should boost

Municipalities in Free State

The Free State has one metropolitan municipality

(Mangaung), four district municipalities and 19 local

municipalities.

Mangaung Metropolitan Municipality

Mangaung Metropolitan Municipality is a Category

A municipality, which governs Bloemfontein,

Botshabelo and Thaba Nchu. The municipality

was formed after the local government elections

in May 2011. The sixth-largest city in the country,

the Mangaung municipal area covers more than

6 263km² and has a population of about 850 000

people. The languages spoken in the area are mainly

Sesotho, Afrikaans, English and Setswana.

Bloemfontein, which is responsible for about 25%

of provincial GDP, is at the centre of a development

node known as the N8 Corridor, which is intended

to boost development along the road from Lesotho

to Kimberley and Upington in the North West prov-

9

FREE STATE BUSINESS 2017


SPECIAL FEATURE

ince. Several projects are under way in and around

the provincial capital, including an Airport Node

(logistics, supply chain, flats, shopping malls), Naval

Hill (projected new hotel in the nature reserve) and

expansion of Hamilton Business Park.

The city’s Fresh Produce Market is an important

cog in the distribution of agricultural produce in

the region while it is connected to all other centres

by good rail and road links. There is a marshalling

yard, a petroleum depot and two airports (one

military). The National Supreme Court of Appeal is

located in Bloemfontein and the National Museum

has superb rock art exhibits.

Xhariep District Municipality

Towns: Trompsburg, Koffiefontein, Zastron,

Philippolis, Edenburg, Fauresmith, Smithfield,

Wepener

The southernmost region of the Free State is a

largely dry area with open grasslands predominating,

although it is also home to the Gariep Dam,

South Africa’s largest. Crops are produced in the

northern parts of the district whereas sheep farming

predominates in the south. Trompsburg has

the second-biggest sheep-shearing barn in the

country.

Diamonds, gravel and clay are mined at

Koffiefontein. Jagersfontein is one of the first places

where diamonds were found, and it has its own version

of the Big Hole to prove it. The town of Bethulie

is a good stopping-over place for tourists wanting

to experience the water sports available on the

Gariep Dam.

The dam is also the site of small hydro-power

and aquaculture projects, which are intended to

create employment and tackle food security. The

nearby Tussen die Riviere Nature Reserve and the

Mynhardt Game Reserve have a variety of wildlife

in spectacular settings. Jacobsdal’s Landzicht

Winery has proved itself as a worthy producer of

wine. San rock paintings and Anglo-Boer War sites

are plentiful.

Fauresmith hosts an annual horse endurance

race and Smithfield is the venue for a “Chill” festival

every winter, the “Bibber Fees”. The steel bridge

over the Caledon River at Wepener is a national

monument.

Lejweleputswa District Municipality

Towns: Welkom, Virginia, Boshof, Christiana,

Bultfontein, Bothaville

Mining is the most important economic activity in

this area, also known as the Free State Goldfields, but

it is also the most important maize-growing area

in South Africa. A large natural gas field has been

discovered on what used to be gold turf. Bothaville

is the self-proclaimed Mielie Capital of South Africa

but it is a name that is well-earned. It hosts an annual

maize industry festival and conferences, NAMPO,

and it is where Grain SA has its headquarters.

The mining town, Welkom, is the major urban

centre in the district. The town of Virginia is the site

of a jewellery school and it is intended that this will

form the nucleus of a jewellery beneficiation hub

and an IT hub.

The area has tourist assets such as a holiday resort

on the Allemanskraal Dam, the Goldfields Wine

Cellar in Theunissen and the Willem Pretorius Game

Reserve, but there is potential for growth in the

heritage sector.

Fezile Dabi District Municipality

Towns: Sasolburg, Parys, Kroonstad, Frankfort,

Heilbron, Viljoenskroon

The chemical complex at Sasolburg is the economic

driver in the district, which shares a border with

Gauteng province along the Vaal River. The town

of Heilbron is another important industrial centre

and Frankfort does important agricultural processing

work. Kroonstad is the district’s second-largest

town and has a number of engineering works and

a railway junction. A new Kraft paper factory has

been planned for Frankfort.

A good proportion of South Africa’s grain crop

is sourced from this district and when the vast

fields of sunflowers and cosmos flowers are in

bloom, a marvellous vista is created. The Vaal

River presents opportunities for yachting, rafting

and resort-based enterprises. Parys is a charming

town and Vredefort is home to a World Heritage

Site – the Vredefort Dome where a meteor crashed

to earth.

Fezile Dabi District Municipality is the 2nd biggest

after Mangaung, contributing approximately

28% to the GDP. The Fezile Dabi area is mostly

FREE STATE BUSINESS 2017

10


Ulco

Northern

Cape

De Aar

Smithfield

Bethulie

Rouxville

Zastron

SPECIAL FEATURE

Potchefstroom

Balfour

Vereeniging

Ottosdal Klerksdorp

Parys Lethabo Mpumalanga

Sasolburg

N12

Vredefort

Standerton

Wolmaransstad

Viljoenskroon

Villiers

R30

N1

Heilbron

North West

Frankfort

Volksrust

Bothaville

R34

R57

Bloemhof

Vrede

Kroonstad

N3

Hoopstad

Odendaalsrus

Reitz

Newcastle

Christiana Wesselsbron

R76

Warden

Welkom

R26

Virginia

Ventersburg

Warrenton

R70

Theunissen

Harrismith

Bultfontein

N5 Bethlehem

Senekal

Van Reenen

Clarens

Phuthaditjhaba

Dealesville

Winburg

Fouriesburg Golden Gate

Ladysmith

R64

National Park R74

Marquard

Ficksburg

N3

Colenso

N8

Clocolan

Winteron

BLOEMFONTEIN

Jacobsdal

Petrusburg

Thaba Nchu

Estcourt

N12

Ladybrand

Botshabelo

R26

Hobhouse

Koffiefontein

N1

MASERU

Edenburg Dewetsdorp

LESOTHO KwaZulu-

Wepener

Underberg Natal

N6

Trompsburg

FREE STATE PROVINCE

N

KIMBERLEY

Eastern Cape

Gauteng

Motorway

Main Road

Railway

dominated by the industrial power of Sasol, with

the manufacturing of refined petroleum, coke

and chemical products adding largely to its GDP.

The establishment of ChemCity, a wholly owned

subsidiary of Sasol, has also added a business incubator

that allows SMMEs to feed off and diversify from

the opportunities that prevail due to the energy

consortium operating in the area.

Thabo Mofutsanyana District Municipality

Towns: Phuthaditjhaba, Bethlehem, Tweespruit,

Ladybrand, Clarens, Harrismith, Vrede, Ficksburg

Tourism and fruit farming are the two principal

economic activities of this area, which is

characterised by beautiful landscapes: the Maluti

and the Drakensberg mountain ranges, wetlands

in the north, well-watered river valleys and the

plains of the north and west. The most famous

asset is the Golden Gate Highlands National Park.

Industrial activity is undertaken at Harrismith

and Phuthaditjhaba, where the Free State

Development Corporation is promoting investment.

The Special Economic Zone (SEZ) at

Harrismith is a multi-modal transport and logistics

hub.

The commercial centre of the district is

Bethlehem while Clarens and Ficksburg have become

famous for their artists and cherries respectively.

Marquard produces 90% of South Africa’s

cherries. The north of the district has many sunflower

seed farms. Tweespruit is a major sunflower seed

production centre.

The Basotho Cultural Village in Qwaqwa offers

beautifully made crafts, and rock paintings can be

seen as illustrations of the artistic skills of much

earlier inhabitants of the area.

REGION GDP IN 2015

Mangaung 33%

Xhariep 5%

Lejweleputswa 18%

Thabo Mofutsanyana 18%

Fezile Dabi 28%

Contribution to GDP in 2015.

11

FREE STATE BUSINESS 2017


FOCUS

Free State Development Corporation

investment opportunities

The Free State Development Corporation is driving a number of exciting investment

opportunities in the Free State province.

BIO-MEDICAL PARK

To develop a world-class bio-medical facility

designed to host research laboratories, exportorientated

pharmaceutical companies, biotechnology

and medical research companies to

develop competitive pharmaceuticals products,

services and technologies.

Concept

To develop world-class infrastructure to support

incubation of a network for newly established

export-oriented medical bio-technology companies

and provide:

• A platform for a joint research and research

collaboration between universities and biotechnology

companies.

• To migrate both the University of Free State

(UFS) and Central University of Technology

(CUT) registered research patents into new

business opportunities.

Location

Bloemfontein, within N8 Corridor.

Investment Required

R400-million.

ACTIVE PHARMACEUTICAL

INGREDIENTS

A private-sector investor is required to establish

an Active Pharmaceutical Ingredients (API)

facility in the Free State province.

Concept

Setting up an Active Pharmaceutical Ingredient

(API) and Oral Solid Dosage (OSD) for the manufacture

of ARVs for the treatment of HIV, malaria

and insulin.

Project Requirements

A leading pharmaceutical technology partner

and investor with a synthesis process is required

to partner with local investors that have

expressed an interest to set up and operate an

API and OSD manufacturing facility in Sasolburg.

Investment Required

Investment estimated at R720-million.

Location

Sasolburg – Metsimaholo.

To discuss these opportunities, contact

Frank Tlhomelang, Manager: Research &

Development & Acting GM: Trade & Investment

Tel: +27 51 4000 800

Email: frank@fdc.co.za | Email: info@fdc.co.za

FREE STATE BUSINESS 2017

12


FOCUS

FRANKFORT PAPER MILLS

The establishment of a Kraft paper factory that

will predominantly use waste container board

paper and virgin pulp to produce Kraft liner, linerboard,

fluting and semi-extensible sack Kraft.

Production capacity is about 180 000 tonnes

per annum.

Concept

The mill will use both virgin (20%) and recycled

pulp (80%) as raw material in its production

process with the aim of capturing small

and medium corrugators. Pulp to be used is

unbleached and manufactured by suppliers

using the Kraft process.

The Kraft process produces strong unbleached

papers that can be used for bags and boxes.

Location

Frankfort, Free State.

Milestones

• Feasibility phase.

• Project designs completed.

Project Requirements

• A technology partner and investor that is a

player in the wood and paper value chain is

required to partner with the IDC and local

paper convertors to establish and operate

Frankfort Paper Mill SA.

• Project partners will be responsible for bulk

t a k e - o ff.

Investment Required

Investment estimated at R1.4-billion.

To discuss this opportunity, contact

Lizeka Matshekga, Head: Forestry & Wood

Products Business Unit, Industrial

Development Corporation

Tel: +27 11 269 3779,

Email: lizekam@idc.co.za

Email: info@fdc.co.za

DPE & PVC PIPES MANUFACTURING

A private-sector investor is required to establish

and operate a plastic extrusion facility at Parys

in the Ngwathe Local Municipality.

Concept

Plastics extrusion is a high-volume manufacturing

process in which raw plastic is melted

and formed into a continuous profile. Extrusion

produces items such as pipe/tubing, weather

stripping, fencing, deck railings, window frames,

plastic films and sheeting, thermoplastic coatings

and wire insulation.

Project Requirements

A technology partner is required for individual

investors that have expressed interest.

Investment Required

Investment required is estimated at R10-million.

Manufactured products and manufacturing

processes must be SABS-certified.

To discuss this opportunity, contact

Frank Tlhomelang, Manager: Research &

Development & Acting GM: Trade &

Investment

Tel: +27 51 4000 800

Email: frank@fdc.co.za

Email: info@fdc.co.za

13 FREE STATE BUSINESS 2017


FOCUS

BETHLEHEM SAND MINING PROJECT

MEDICAL WASTE TREATMENT

There is an opportunity to establish a sand mining

business 6km outside Bethlehem – called Bethlehem

Water and Sand (Pty) Ltd – to supply Bethle

hem and the surrounding towns with build ing,

plaster and brick-making sand.

Location

Dihlabeng Local Municipality in Bethlehem.

Milestones

Business plan completed.

• Geological report available.

• EIA completed and ROD is available.

• Mining permit obtained.

Project Requirements

The project sponsor requires capital injection

and participation by BEE partners with experience

in the sand mining value chain, or sand

distribution.

Investment Required

The project requires funding to the tune of

R120-million. The project has the potential to

create 120 jobs when fully operational.

STEEL FABRICATION PLANT

A technology partner and investor is required to

partner with a local investor to set up a medical

waste treatment facility.

Concept

To design a modern medical and solid waste

treatment facility. The company implements

Electro-Thermal Deactivation processes

to dispose of healthcare risk waste.

This is a non-burn technology that has

zero emissions. Pathogens are treated with

50 000V within the ETD (Microwave) and this

renders the waste clean and harmless.

Location

Virginia in Matjhabeng.

Investment Required

Estimated project cost R30-million.

To discuss opportunities on this page, contact

Frank Tlhomelang, Manager: Research &

Development & Acting GM: Trade &

Investment

Tel: +27 51 4000 800 | Email: frank@fdc.co.za

Email: info@fdc.co.za

To establish a steel fabrication manufacturing

plant in the Botshabelo Industrial Area.

Concept

• A local company is seeking a joint venture

with established industry players to set up and

operate a steel fabricating plant in Botshabelo.

• This project intends to respond to South

Africa’s local content requirements, expanding

South Africa’s Infrastructure Investment

Programme.

• The site earmarked for this project had been

secured and the EIA is in progress.

Project Requirements

• A local business partner is looking for international

players in steel fabrication to invest

in this business venture.

• The project requires an additional equity.

• The value of equity participation will be

negotiated on proposals received.

Location

• Virginia – Lejweleputswa.

• Required Investment to be determined at

feasibility.

FREE STATE BUSINESS 2017

14


Why invest in solar generation

plants in South Africa

FOCUS

• South Africa’s solar irradiation levels are among

the best in the world (>2 000kWh/m²).

• Transition to a cleaner energy mix (low carbon

path).

• Strong local content from government (glass,

mirrors).

• Strong, established local construction

companies.

• Experience in building power stations and mines.

• Current steel and pipes production meeting CSP

requirements.

• A target to generate 45% of all new electricity

from renewable sources by 2030.

• The ongoing success of the renewables procurement

programme and the growing interest of

international developers and funders are helping

South Africa to improve its rankings from nowhere

to top 10 investor in the world (Renewable

Energy Country Attractiveness Index - 2014).

• South Africa is the region’s clear leader for clean

energy development with record investments of

over US$10-billion in 2012 and 2013.

Drivers for PV & CSP investments

• Environmental issues such as pollution and

exploitation of natural resources.

• Climate change due to CO ²

emissions from

fossil fuels.

• Energy security through diversification of supply.

• Sustainable development.

NAME LOCATION COMMISSIONED CAPACITY STATUS OPERATOR INVESTMENT

LETSATSI PV

PROJECT

PULIDA SOLAR

PARK

BOSHOFF

SOLAR PARK

XHARIEP

SOLAR HUB

BLACKWOOD

ENERGY

SOLAR PLANT

EVEREST

SOLAR PLANT

GROOTKOP

SOLAR

FACILITY

Bloemfontein,

Tokologo LM

Jacobsdal

Under

Letsemeng LM August 2016 75MW construction

May 2014 64MW Operational Solar Reserve ±$293-million

Enel

Green Power

Tokologo LM November 2014 64MW Operational Sun Edison TBC

Kopanong,

Bethulie LM

Planned

600MW

Planned

Concept

develop ment

and project

design

Tokologo LM Planned 75MW Planned

Matjhabeng LM

Matjhabeng LM

Planned

Planned

75MW

Planned

75MW

Planned

New

development

New

development

Korean

Solar Power

Consortium

New

development

FRV Energy

South Africa

FRV Energy

South Africa

Land: 220ha

Land: 1 200ha

TBC

Project occupies 180ha

of the Farm Beyers 186

(393ha)

Project will occupy

180ha of the Farm

Beyers 186 (393ha)

Power plants planned, under construction and operational

15 FREE STATE BUSINESS 2017


FOCUS

SOLAR GENERATION PARKS

The project aim is to recruit a private investor to

set up a solar park in the Xhariep, Lejweleputswa

and Mangaung regions, as these offer some of the

best direct solar radiation (kWh/m²).

Process

Investors’ may participate in both off-grid and

on-grid supply solutions. Off-grid is where the

solar generation plant is directly supplying an

independent user or seller, for example a mine

or an industrial estate. On-grid is where investors

participate in South Africa’s successful

Renewable Energy Independent Power Producer

Procurement (REIPPP) Programme managed by

the Department of Energy (DOE) and finally supply

the grid.

Projects Location

Xhariep District, Mangaung Metro as well as

Lejwele putswa.

Conversion Technologies

Both photovoltaic modules and concentrated

solar power (CSP) plants conversion technologies

can be implemented.

SOLAR WATER HEATERS

A private investor is required to set up a solar

water heaters manufacturing plant in Botshabelo

Industrial Area. The manufacturing process may

involve the following:

• Fabrication of panel storage tanks.

• Assembly of tank, panel coil and other

components.

• Inspection and commissioning.

• Required raw materials for the manufacturing

of solar water heaters are copper aluminium MS

sheet, pipe, glass fibre, GI sheets, thermostat,

insulation material.

Why Solar Water Heaters

• Eskom electricity demand management

programme.

• Strong local content on SWH procurement by

DOE and Eskom.

• Financial and technology capabilities to manufacture

and supply locally produced systems.

• Construction Sector Education Training

Authority (CETA) and Energy Sector Education

Training Authority offers accredited Level 4

plumbing qualification.

• Availability of plumbing skills currently serv ing

the mining, gas and petroleum industries.

Location

Botshabelo within the N8 Corridor.

Investment Required

To be determined at feasibility.

To discuss these opportunities, contact

Frank Tlhomelang, Manager: Research &

Development & Acting GM: Trade & Investment

Tel: +27 51 4000 800 | Cell: +27 71 674 5730

Email: frank@fdc.co.za | Email: info@fdc.co.za

FREE STATE BUSINESS 2017

16


FOCUS

GREEN ENERGY IT

Green Energy is a South African company that

assembles solar home lighting systems. The

idea behind this project is to contribute towards

harnessing solar energy to generate power.

Location

The company intend to locate its solar home

lighting manufacturing plant in Maluti-A-Phofung.

Milestones

FDC financed seed funding to the tune of

R210 000 for the following:

• Product development to redesign its products

so that they can meet international standards

for export market.

• IP registration.

Business case development to solicit financial

and possibly technology partner for future

growth.

• A team of three are driving business

development.

Investment Required

The project requires an experienced technology

partner that is a player within the solar and LED

lights value chain and an investor that will guarantee

take-off of products manufactured.

To discuss this opportunity, contact

Frank Tlhomelang, Manager: Research &

Development & Acting GM: Trade & Investment

Tel: +27 51 4000 800

Email: frank@fdc.co.za

Maluti-A-Phofung SEZ

investment opportunities

Maluti-A-Phofung Special Economi c Zone

(SEZ) has been established in terms of

the Special Economic Zones Act, Act No.

16 of 2014. The programme is intended

to deepen industrial development and improve

manufacturing competitiveness in the Maluti-A-

Phofung Municipality.

Located in Harrismith and Tshiame in the Eastern

Free State, MAP IDZ is strategically located on the N3

national road, halfway between Johannesburg and

Durban. M-SEZ offers in total up to 1 000 hectares

of land for industrial development. Since Durban

port is the busiest in the southern hemisphere, this

therefore means that N3 carries majority of the traffic

to different locations in South Africa and the neighbouring

countries such as Lesotho and Swaziland.

The MAP ESZ constitutes the Free State leg of the

massive Durban-Free State-Gauteng logistics and

industrial corridor that is intended to strengthen

the logistics and transport corridor between South

Africa’s main industrial hubs to:

• Improve access to Durban’s export/import facilities.

• Integrate Free State Industrial Strategy activities

into the corridor.

• Build a new port in Durban.

• Expand an aerotropolis around OR Tambo

International Airport.

SEZ Project Pipeline

There are already 18 manufacturing companies

(ranging from pharmaceutical to automobile companies)

that have signed letters of intent to locate

in the MAP SEZ. Some of the sectors targeted for

establishment within the MAP SEZ are as follows:

• Pharmaceuticals.

• Medical devices.

• Logistics and distribution.

• Agro-processing.

17 FREE STATE BUSINESS 2017


FOCUS

• Food processing.

• Trade facilitation.

• Rail-based container terminal

(Transnet Freight Rail).

• Automotive cross docking facilities.

• Logistics and supply chain management.

• Information & Communi cation Technology.

• Logistics.

Benefits

Benefits that will be derived from locating within

MAP SEZ includes:

• 15% Corporate Tax, national is 28%.

• Building Allowance.

• Employment Incentive.

• Customs Controlled Area.

• 12i Tax Allowance.

MAP SEZ Milestones

• MAP SEZ company fully operational.

• Maluti-A-Phofung SEZ operator permit granted by

Minister of Trade & Industry after cabinet approval.

• Perimeter fencing has been completed.

• Bulk infrastructure roll-out is in process.

• Marketing and promotion to build a robust IDZ

project pipeline is in process.

MEDICAL EQUIPMENT AND DEVICES MANUFACTURING

The FDC has signed an investment agreement

with two leading Chinese companies (in the

medical devices and electronic equipment value

chain) to establish a medical devices and medical

apparatus and instrumentation manufacturing

plant in the newly designated Maluti-A-Phofung

SEZ.

Location

Maluti-A- Phofung SEZ.

Milestones

• Investment agreement signed.

• South African subsidiary of the Chinese

company (Medipro) has been registered.

• Negotiations to fast-track investment are in

process.

• The company has CE certification.

Investment Required

Investment estimated at R600-million.

TYRE MANUFACTURING

The establishment and operation of a

10 000-tyre-a-day automotive tyre manufacturing

plant to manufacture tyres for wellknown

brands such as Dunlop, Kumho, etc.

Location

Industriqwa (Harrismith).

Milestone

• Concept developed.

• Marketing opportunity to prospective investors.

Project Requirements

Required investment estimated at R200-million.

To discuss these opportunities, contact

Sipho M. G. Tshabalala,

Marketing & Communications Manager

Tel: +27 51 4000 804

Cell: +27 78 076 8676

Email: Sipho@mapsez.co.za

Website: www.mapsez.co.za

FREE STATE BUSINESS 2017

18


FOCUS

VEHICLE DISTRIBUTION CENTRE

FOOD PROCESSING PARK

This project is intended to position Harrismith as

a Vehicle Distribution Centre (VDC). Studies by

logistics integration service providers have indicated

that FS has the best potential to be a warehousing

and logistics centre due to its proximity

to the Gauteng market and links through N3 to

Durban Port and Coega through the N1 and N6.

Location

MAP IDZ Logistics Service Providers precinct.

Milestones

• Concept developed.

Business plan completed.

• Expression of interest to invest sourced.

• Marketing the opportunity to prospective

investors.

Investment Required

Investment estimated at R250-million.

The building of a world-class, integrated food

processing park to include food processing,

warehousing, cold storage and manufacturing

facilities to enhance production efficiencies.

Location

MAP SEZ food processing precinct.

Milestones

• Concept developed.

Business plan completed.

• Marketing the opportunity to prospective

investors.

Investment Required

Investment estimated at R750-million.

To discuss these opportunities, contact

Sipho M. G. Tshabalala,

Marketing & Communications Manager

Tel: +27 51 4000 804 | Cell: +27 78 076 8676

Email: Sipho@mapsez.co.za | Website: www.mapsez.co.za

19 FREE STATE BUSINESS 2017


FOCUS

ROOFSHEET MANUFACTURING

Concept

The FDC is keen to facilitate the production of

roofsheets made from corrugated iron, IRB and

chromadek.

Location

Matjhabeng Local Municipality.

Investment Required

R25-million in capital expenditure is needed.

APPLE PRODUCTION

Concept

Investment is required to add 2 000ha of apple

orchards on agricultural land in the Eastern

Free State.

Location

Maluti Fruit, a pack house in Bethlehem, Free State,

has launched Remmoho, a BEE project that will focus

on increasing apple production in the province.

One of the advantages of growing apples in the

Free State is that the fruit from the region is the first

to be harvested during the Southern Hemisphere

growing season – a full two to three weeks before

fruit from the more traditional growing areas in the

Western Cape.

A business plan has been completed and would be

available to prospective investors.

To discuss these opportunities, contact

Gontse Morakile, Tel: +27 51 400 4924

Email: morakileg@detea.fs.gov.za

MINING TOURISM

Concept

Convert an old, unused mining shaft into a tourist

attraction that will enable people to experience

life below the surface.

Location

Virginia (Matjhabeng).

Investment Required

R300-million.

JEWELLERY MANUFACTURING

Concept

An opportunity exists to set up a jewellery design

and manufacturing operation adjacent to an

existing jewellery school.

Location

Virginia (Matjhabeng).

Investment Required

R20-million.

To discuss these opportunities, contact

Mpolokeng Mokalobe, Tel: +27 51 400 9585

Email: mokalobem@detea.fs.gov.za

FREE STATE BUSINESS 2017

20


FOCUS

CLOTHING MANUFACTURE

Concept

There are plans to establish a Cut, Make and Trim

(CMT) factory in order to manufacture clothing

in the Free State.

Location

Maluti-A-Phofung Municipality (QwaQwa).

Investment Required

Finance is sought for purchase of machinery

and working capital for 12 months.

WASTE RECYCLING

Concept

The establishment of a plant for waste recycling

and conversion into usable products as well as the

generation of energy from waste.

Location

Mangaung Metropolitan Municipality

(Bloemfontein, Botshabelo and Thaba Nchu)

Investment Required

R65-million

A business plan has been completed and would

be available to prospective investors.

LED LIGHT MANUFACTURE

TOOLING AND MACHINERY

MANUFACTURE

Concept

Manufacturing of metal, steel and plastic products

for automotive, rail, aviation, mining and other

similar industries.

Location

Botshabelo.

Investment Required

R15.1-million in capital expenditure is needed.

To discuss these opportunities, contact

Frank Tlhomelang, Manager: Research &

Development & Acting Head: Trade & Investment

Tel: +27 51 4000 800

Cell: +27 71 674 5730

Email: frank@fdc.co.za

Concept

The manufacture and retail of light-emitting

diodes (LEDs).

Location

Anywhere within the Free State.

Investment Required

R15-million.

TEXTILE MANUFACTURING

Concept

To establish a textile manufacturing facility producing

spun yarn and woven cloth for supply to

Cut, Make and Trim (CMT) facilities in the Free State

and the rest of South Africa.

Location

Maluti-A-Phofung Municipality (QwaQwa).

Investment Required

R76-million is required.

To discuss this opportunity, contact

Gontse Morakile, Tel: +27 51 400 4924

Email: morakileg@detea.fs.gov.za

21

FREE STATE BUSINESS 2017


FOCUS

POULTRY PRODUCTION AND

PROCESSING

Concept

The intention is build 10 x 40 000 broiler houses,

10 x 220 000 broiler hatcheries and 8 x 20 000 layer

houses.

Location

These facilities could be located in the following

municipalities: Lejweleputswa, Fezile Dabi, Thabo

Mofutsanyana.

Investment Required

R6.5-billion is required to increase the size of the

poultry production market in the Free State.

PRODUCTION OF SUNFLOWER,

SOYA, BEANS AND LUCERNE

Concept

The FDC is promoting an opportunity to increase

the production of sunflower, soya beans, dry

beans and lucerne. If investment is forthcoming

448 981ha could be put into production by 2030.

Location

Various agricultural areas in the Free State.

Investment Required

An estimated R585.8-million is needed.

To discuss these opportunities, contact

Pilot Nchabeleng , Tel: +27 51 861 8509

Email: pilotnchabeleng@gmail.com

Free State trade opportunities

The Free State province offers a wide range of trading opportunities

The Free State’s main exports are:

• Mineral products.

• Plastics and articles thereof.

• Chemical products.

• Vehicle and transport equipment.

• Agricultural equipment.

• Semi-precious stones, metals, imitation jewellery.

• Base metals and articles thereof.

• Textile and textile articles.

• Vegetable and fruit products.

• Wood and articles of wood.

• Raw hides and skins, leather and articles thereof.

• Medical or surgical instruments and apparatus.

• Live animals.

Additional breakdown of products:

• Minerals (gold, coal, diamonds, clay, limestone,

salt, gypsum, granite, sand stone aggregates).

• Agriculture (maize, wheat, sorghum, potatoes,

sunflower, red meat, vegetables, dry beans, fruit,

peanuts, wool, poultry, dairy, cherries).

• Floriculture (cut flowers).

• Chemicals (fuels, waxes, synthetic fuel, liquid

carbons).

• Agricultural machinery and equipment.

• Vehicles (trailers).

• Arts and crafts.

FREE STATE BUSINESS 2017

22


Reasons to invest in the Free State

FOCUS

The Free State offers an abundance of opportunities for local and international investors

and traders, through the Free State Development Corporation.

About the Free State

Situated in the heart of South Africa, the Free State

is the country’s third-largest province and borders

Lesotho as well as six of the eight other provinces,

including the country’s economic centre, Gauteng.

The Free State is an ideal trading partner both

within South Africa, and with Africa and other international

markets. The province has excellent infrastructure

and transport links, and provides easy

access to the main ports of Durban, East London

and Port Elizabeth.

Factors that favour investment in the Free State

Factors positioning the province as a favourable

business and investment destination:

• Centrally located with easy access to markets

within South Africa and Africa.

• Availability of a large and affordable labour

pool.

• Excellent infrastructure (roads,rail, airports, offices,

education, banking and medical facilities).

• Competitive land and building costs.

• Low factory rentals.

• Abundance of natural resources.

• Recreational and lifestyle facilities.

• Most developed telecommunications network

in Africa.

• Open to business, trade and foreign investment.

• Availability of required skills pool.

• Attractive investment regime.

THE FREE STATE DEVELOPMENT CORPORATION OFFICE DETAILS

HEAD OFFICE

FDC House, 33 Kellner Street, cnr of Markgraaf

Street, Westdene, Bloemfontein 9300

Tel: +27 51 4000 800 | Fax: +27 51 447 0929

MOTHEO DISTRICT OFFICES

Botshabelo Office

35 Orange Str, Industrial, Botshabelo 9781

Tel: +27 51 534 1101/02/03 | Fax: +27 51 534 1104

Thabo-Nchu/Motheo Office

102 Manyane High Way, Selosesha, Thaba Nchu 7983

Tel: +27 51 873 3901 2476 | Fax: +27 51 873 3402

XHARIEP DISTRICT OFFICE

Xhariep Office, Cnr Van Riebeeck and

Voortrekker, Khoisan Building, Trompsburg 9913

Tel: +27 51 713 0342/3 | Fax: +27 51 713 0342

THABO MOFUTSANYANA DISTRICT OFFICES

Thabo Mofutsanyana Office

357K Clubview, Phuthditjhaba

Tel: +27 58 714 0060/64

Fax: +27 58 714 0071

Industriqwa/Harrismith Office

Cnr Amanda & de Lange, Tshiame A,

Harrismith 9880

Tel: +27 58 635 1112

Fax: +27 58 973 2603

FEZILE DABI DISTRICT OFFICES

Fezile Dabi Office

31 NJ Van der Merwe Crescent, Sasolburg 1942

Tel: +27 16 976 8944/5

Fax: +27 16 973 2603

For additional information on trading opportunities please contact

the Free State Development Corporation on +27 51 400 0800.

www.fdc.co.za

23 FREE STATE BUSINESS 2017


SPECIAL FEATURE

South African economy at a glance

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

graphical representations of key statistics.

ZIMBABWE

NAMIBIA

BOTSWANA

Limpopo

0.9% (7.1%)

MOZAMBIQUE

North West

-3.6% (6.5%)

Gauteng

2.1%

(34.3%)

Mpumalanga

2.7%

(7.5%)

SWAZI-

LAND

Northern Cape

2.8% (2.1%)

Free State

1.8%

(5%)

LESOTHO

KwaZulu-

Natal

2.3%

(16.1%)

Western Cape

2.0% (13.6%)

Eastern Cape

1.0% (7.6%)

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

contribution to national GDP (figures in brackets).

SOURCE: STATS SA WWW.STATSSA.GOV.ZA

PROVINCE CAPITAL PREMIER POPULATION (2015) AREA GRP BILLION RAND

Eastern Cape Bhisho

Phumulo

Masualle

6 916 200 168 966km 2 R289.9

Free State Bloemfontein

Elias Sekgobelo

“Ace” Magashule

2 817 900 129 825km 2 R189.1

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

KwaZulu-

Natal

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

Limpopo Polokwane

Stanley

Mathabatha

5 726 800 125 754km 2 R271.5

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

North West Mahikeng

Supra

Mahumapelo

3 707 000 104 882km 2 R249.5

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

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

Snapshot of South Africa’s provinces

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

FREE STATE BUSINESS 2017

24


SPECIAL FEATURE

How South Africa’s economy performed in 2015. *

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

SECTOR LP MP GP NW KZN FS NC EC WC

Agriculture 2.5 2.8 0.4 2.1 3.8 4.3 6.0 7.5 3.5

Mining 29.4 24.9 3.3 33.6 1.9 13.3 26.7 0.2 0.3

Manufacturing 2.5 11.5 13.5 4.4 15.8 8.5 2.1 12.2 11.8

Electricity 2.8 5.4 2.4 1.4 2.5 3.1 3.0 1.4 2.0

Construction 2.5 3.3 4.3 2.6 3.0 2.0 1.6 2.1 4.3

Wholesale 10.8 10.3 14.2 9.3 15.5 12.3 9.9 14.7 17.0

Transport 5.4 5.8 8.3 6.1 11.9 7.1 7.8 7.9 9.1

Finances 14.0 10.9 22.8 11.1 16.5 14.2 11.6 18.6 26.6

Personal

Services

Government

Services

3.8 4.3 3.6 7.0 5.8 10.2 8.1 9.1 5.1

16.0 10.5 17.0 12.1 13.3 14.7 12.8 22.0 10.2

Taxes 10.3 10.3 10.1 10.3 10.0 10.3 10.2 10.2 10.0

Gross Domestic Product by province, percentage contribution.

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

25 FREE STATE BUSINESS 2017


FOCUS

Mangaung’s new mayor

hits the ground running

The new Mayor of Mangaung Metropolitan Municipality has

pledged to continue with service delivery projects

initiated by the previous council.

The city of Mangaung stands on the threshold of a new era following

a decision by the Municipal Demarcation Board; its area of jurisdiction

is once again being extended (this happened in 2011 as well).

The Metropolitan Municipality now incorporates both Soutpan and

Naledi local municipalities. This presents the metro with both challenging

and exciting times. The boundaries of Mangaung Metro are now made

up of Bloemfontein, Botshabelo, Thaba Nchu Dewetsdorp, Wepener, Van

Stadensrus and Soutpan.

With Executive Mayor Councillor Matawana Olly Mlamleli at the helm,

Mangaung Metro will continue to accelerate service delivery, focusing on

the eight (8) developmental priorities that had been set by the previous

council. These are:

• Poverty eradication, rural and economic development and job

creation

• Financial sustainability including revenue enhancement and

clean audits

• Spatial development and the built environment

• Eradication of the bucket system and VIP toilets

• Development of sustainable and integrated human settlements

• Implementation of an Integrated Public Transport Network (IPTN)

• Environmental management and climate change

• Social and community services

“These are the key areas we will be focusing on in this fourth electoral

cycle of a democratic local government. We are content that this work will

advance the people’s power in every ward of our city,” said the Executive

Mayor Mlamleli during her inauguration in September 2016.

Good governance

The newly elected Executive Mayor has vowed to uphold the principles

of good governance. “I will ensure increased public involvement in the

affairs of the Council, sound political leadership and administration as well

as fiscal prudence, working closely with the oversight institutions including

the Office of the Auditor-General. I intend to sustain cordial working

relations with labour as a basis for strategic partnerships,” she said.

The incorporation of Naledi and Soutpan brings with it further challenges

due to the disparity of service levels, distance and an expanded

Mangaung

Metropolitan

Municipality

Annual Performance

Report

2011/2012

Executive Mayor Cllr

Matawana Olly Mlamleli

rural element. All developmental

plans as they apply to the regions

of Bloemfontein, Botshabelo and

Thaba Nchu will equally be applicable

to and cater for Naledi and

Soutpan in all respects. Residents

of Mangaung should regard this

merger as one that brings with it

economic spin-offs in the realm

of the agrarian economy, as the

economy of these new areas is predominantly

driven by agriculture.

As the city prioritises, it does

so from the premise of consolidated

and incorporated

planning as defined by the current

Consolidated Integrated

Developmental Plan (IDP) and

beyond this, an IDP of the

municipality of Mangaung as

re-determined by the Municipal

Demarcations Board.

FREE STATE BUSINESS 2017

26


FOCUS

The IPTN – an artist’s impression of an open

station in Mangaung.

The Executive Mayor Cllr Olly Mlamleli patches

a pothole in Freedom Square after handing out

roadworks machinery.

Integrated Public

Transport Network

Subsequent to numerous consultations

with the public and

taxi associations in Mangaung,

the city formally introduced

the Integrated Public Transport

Network (IPTN) to residents

of the city and stakeholders

in October 2016 as part of

Transport Month, which is observed

nationally. This initiative

was formalised by the signing of

a Memorandum of Agreement

(MoA) with the transport industry

in Bloemfontein.

The IPTN will ensure the provision

of an efficient, reliable, safe

and affordable public transport

system for residents of Mangaung.

Upon completion, the IPTN is

envisaged to change the face of

public commuting in Mangaung,

and ultimately the economic

potential of the province. The firstphase

corridor along the Maphisa

Route has been completed and

the city will move with speed to

ensure that other phases of the

IPT Network are implemented.

Mangaung has grown as a city, substantially in land mass – and

as such, the challenges of mobility within the metropole need to be

attended to as a matter of urgency. Reliable public transport is a foundation

for our economy, and as this service expands, we will increasingly

be able to attract potential investors, which will in turn create additional

economic opportunities for our people.

Among other achievements, the city of Mangaung garnered a number

of PMR.Africa awards in October 2016, as a result of surveys conducted

annually across the province. The ratings are based on the perceptions

of 110 CEOs, company directors, senior employees and officials in the

private sector, as well as the local and provincial government sector.

Mangaung was the highest-rated municipality in the province in

the following categories, receiving the Diamond Arrow for:

• Most effective communication and marketing strategies in the

Free State province

• Municipalities doing the most for social upliftment

• Municipalities doing the most to attract foreign/international

investment

• Municipalities doing the most to attract local investment

• Municipalities doing the most to attract tourism

• Municipalities doing the most for job creation

• Municipalities doing the most to fight crime

• Municipalities doing the most to clean the environment

To stay up to date with news and activities around Mangaung,

please see: www.mangaung.co.za or visit our Facebook pages:

Mangaung Metropolitan Municipality and Mayor’s Page: Executive

Mayor Olly Mlamleli. Residents can contact us via the call centre:

0800 111 300.

27 FREE STATE BUSINESS 2017


South African

investment incentives

The South African government, particularly the Department of Trade and Industry,

has a range of incentives available to investors, existing companies,

entrepreneurs and co-operatives across many sectors.

South Africa wishes to diversify its economy

and incentives are an important part of

the strategy to attract investors to the

country. The Department of Trade and

Industry (the dti) is the lead agency in the incentives

programme, which aims to encourage local and

foreign investment into targeted economic sectors,

but the Industrial Development Corporation

(IDC) is the most influential funder of projects across

South Africa.

There a variety of incentives available and these

incentives can broadly be categorised according to

the stage of project development:

• Conceptualisation of the project – including feasibility

studies and research and development (grants

for R&D and feasibility studies, THRIP, Stp, etc)

• Capital expenditure – involving the creation

or expansion of the productive capacity

of businesses (MCEP, EIP, CIP, FIG, etc)

• Competitiveness enhancement – involving the

introduction of efficiencies and whetting the

competitive edge of established companies and

commercial or industrial sectors (BBSDP, EMIA,

CTCIP, etc)

Some of the incentives are sector-specific for

example the Aquaculture Development and

FREE STATE BUSINESS 2017

28


SPECIAL FEATURE

Enhancement Programme (ADEP), Clothing

and Textile Competitiveness Improvement

Programme (CTCIP) and the Tourism Support

Programme (TSP).

Manufacturing

Key components of the incentive programme

are the Manufacturing Incentive Programme

(MIP) and the Manufacturing Competitiveness

Enhancement Programme (MCEP). The initial

MCEP, launched in 2012, was so successful that it

was oversubscribed with almost 890 businesses

receiving funding. A second phase of the programme

was scheduled for launch in 2016. The

grants are not handouts as the funding covers a

maximum of 50% of the cost of the investment,

with the remainder to be sourced elsewhere.

The Enterprise Investment Programme (EIP)

makes targeted grants to stimulate and promote

investment, BEE and employment creation in the

manufacturing and tourism sectors. Aimed at

smaller companies the maximum grant is R30-

million. Specific tax deductions are permissible for

larger companies investing in the manufacturing

sector under Section 12i of the Income Tax Act.

Other incentives available to investors and

existing businesses in more than one sector

include the:

• Technology and Human Resources for Industry

Programme (THRIP)

• Support Programme for Industrial Innovation

(SPII).

• Black Business Supplier Development

Programme (BBSDP), which is a cost-sharing

grant offered to black-owned small enterprises.

• Critical Infrastructure Programme (CIP) that

covers between 10% and 30% of the total

development costs of qualifying infrastructure.

• Co-operative Incentive Scheme, which is a 90:10

matching cash grant for registered primary

co-operatives

• Sector Specific Assistance Scheme, which is a

reimbursable 80:20 cost-sharing grant that can

be applied for by export councils, joint action

groups and industry associations.

Incentives for SMMEs

A lot of emphasis is placed on the potential role of

small, medium and micro enterprises in job creation

and a number of incentives are designed to promote

the growth of these businesses. These include:

• Small Medium Enterprise Development

Programme (SMEDP)

• Isivande Women’s Fund

• Seda Technology Programme (Stp)

Seda is the Small Enterprise Development

Agency, an agency of the Department of Small

Business Development that exists to promote

SMMEs.

Trade-related incentives

The Export Marketing and Investment Assistance

(EMIA) Scheme includes support for local businesses

that wish to market their businesses internationally

to potential importers and investors. The scheme

offers financial assistance to South Africans travelling

or exhibiting abroad as well as for inbound potential

buyers of South African goods.

ONLINE RESOURCES

Department of Trade and Industry:

www.thedti.gov.za

Free State Develoment Corporation:

www.fdc.co.za

Industrial Development Corporation:

www.idc.co.za

Official South African government incentive

schemes: www.investmentincentives.co.za

29 FREE STATE BUSINESS 2017


SPECIAL FEATURE

Establishing a business in SA

The barriers to doing business in South Africa have been eased for local and

international companies.

South Africa has a sophisticated legal, regulatory

and banking system. Setting up

a business in South Africa is a relatively

straight-forward process with assistance

being offered by organisations such as the Department

of Trade and Industry and provincial investment

agencies like the Free State Development

Corporation.

South African law regulates the establishment

and conduct of businesses throughout the country.

Tax, investment incentives, regulations governing

imports, exports and visas are uniform throughout

the country. The particular environment varies from

province to province with regard to the availability

of human and natural resources, the infrastructure

and support services, business opportunities and

the quality of life.

In this respect, the Free State Development

Corporation can offer specific advice about the

business environment in the province.

Business is regulated by the Companies Act and

the Close Corporation Act, which cover accounting

and reporting requirements. Under new legislation,

no new Close Corporations can be created but CCs

can convert to companies.

Registration of company

The company must be registered with the

Comp anies and Intellectual Properties Commission,

(CPIC) in Pretoria within 21 days of the company

being started. There are a range of administrative

procedures that need to be fulfilled.

Bank account

A business bank account must be opened in the

company’s name with a bank in South Africa.

Registration with the receiver of revenue

• As a Provisional Taxpayer

• As a VAT vendor

• For Pay As You Earn (PAYE) income tax payable

on money earned by employees

• For Standard Income Tax on Employees

Registration with the Department of Labour

Businesses employing staff will have to contact the

Department of Labour regarding mandatory contributions

to the Unemployment Insurance Fund (UIF).

Register with Compensation Commissioner for

Compensation Fund: Files with the Compensation

Fund (in the Department of Labour) for accident

insurance (Workmen’s Compensation).

Registration with the local authority

Relevant only to businesses dealing in fresh foodstuffs

or health matters.

Other procedures

• Checking exchange control procedures (note

that non-residents are generally not subject to

FREE STATE BUSINESS 2017

30


SPECIAL FEATURE

exchange controls except for certain categories

of investment)

• Obtaining approval for building plans

• Applying for industry and export incentives

• Applying for import permits and verifying

import duties payable

• Registering as an exporter if relevant and applying

for an export permit

Business entities

There are a variety of forms which businesses can

take, including private and public companies,

personal liability companies , non-profit companies,

state-owned companies and even branches of

foreign companies (or external companies).

Branches of foreign companies fall under section

23 of the Companies Act of 2008 and are

required to register as “external companies” with

the CIPC. An external company is not required

to appoint a local board of directors but must

appoint a person resident in South Africa who

is authorised to accept services of process and

any notices served on the company. It must also

appoint a registered local auditor and establish a

registered office in South Africa.

Patents, trademarks and copyrights

Trademarks (including service marks) are valid for an

initial period of 10 years and are renewable indefinitely

for further 10-year periods. Patents are granted

for 20 years, normally without an option to renew.

The holder of a patent or trademark must pay an annual

fee in order to preserve its validity. Patents and

trademarks may be licensed but where this involves

the payment of royalties to non-resident licensors,

prior approval of the licensing agreement must be

obtained from the dti. South Africa is a signatory to

the Berne Copyright Convention.

Permits for foreign nationals

Work permits

In considering whether or not to grant a work permit,

the Department of Home Affairs will first evaluate the

validity of the offer of employment by conducting a

number of checks to confirm the following:

• Has the Department of Labour been contacted?

• Has the position been widely advertised?

• Is the prospective employer able to prove that he

or she has tried to find a suitably qualified local

employee prior to hiring a foreigner?

• Is the prospective employee appropriately qualified

and do they have the relevant experience?

Business permits

Foreign nationals who wish to establish their own

business or a partnership in South Africa must, apart

from having sufficient funds to support themselves

and their family, be able to invest at least R2.5-million

in the business.

The funds must originate overseas, be transferable

to South Africa and belong to the applicant (ie

emanate from the applicant’s own bank account).

The business must also create jobs for South African

citizens. After six months to a year, proof will have to

be submitted that the business is employing South

African citizens or permanent residents, excluding

family members of the employer.

Applications for work permits for self-employment

can only be lodged at the South African

Consulate or Embassy in the applicant’s country of

origin. The processing fee is US$186. The applicant

would also have to lodge a repatriation guarantee

with the consulate/embassy equivalent to the price

of a one-way flight from South Africa back to his or

her country of origin.

This guarantee is refundable once the applicant

has either left South Africa permanently or obtained

permanent residence. Any application for an extension

of a business permit may be lodged locally. The

processing fee per passport holder is R425. Some

countries also need to pay R108 per return visa.

A list of countries to which this applies is available

from the Department of Home Affairs.

The FDC assists investors in applying for the

relevant work permits to conduct their business.

What would the FDC do for you?

The FDC will help new businesses by assisting in

project appraisal and packaging, putting investors

in touch with relevant agencies and government

departments, alerting investors to investment incentives

and setting up joint ventures where required.

A full description of the services offered by the

FDC is reflected elsewhere in this publication.

31 FREE STATE BUSINESS 2017


FOCUS

Making the things that really

matter with businesses and

communities happen

Kevin de Beer, Nedbank Regional General Manager, Branch Networks, explains

how Nedbank works with communities to deliver banking solutions.

Nedbank continues to build on its client-centred strategy aimed

at delivering distinctive experiences and channels of choice for

business and clients in the Free State. This has seen the bank simplify

and enhance its product offering in line with its great value

banking philosophy, based on simplicity, transparency and affordability.

Innovation and technological advancements as well as training and

development of staff have been key pillars in achieving the bank’s objectives.

Nedbank has also placed greater emphasis on client engagement

to better understand the diverse and individual client needs across its

personal and business banking base.

“Innovation is an integral component of a holistic approach that

encompasses our systems and processes and which is an enabler in

delivering distinctive client experiences. Despite the tough economic

environment, Retail and Business Banking have delivered value to our

shareholders while significantly improving our client experience. Through

these milestones, we are well geared to weather the persisting macroeconomic

environment, and highly competitive business conditions,”

says Kevin de Beer.

Since 2012, Nedbank has launched several first-to-market innovations

such as the award-winning Nedbank App Suite, Home Loans Online

Digital Channel and Market Edge, as well as the “Branch of the Future”

concept in communities locally and nationally.

“Working with communities is entrenched in our values through community

development, skills development, education and job creation as

well as environmental conservation. These play a vital role in building a

sustainable economy and vibrant society. We believe our fast-growing

presence in communities goes a long way in enabling greater financial inclusion

while contributing towards economic growth,” concludes De Beer.

The bank has also invested in innovative alternative distribution outlets

through its strategic partnership with Pick n Pay and Boxer Stores. These

partnerships, which span over 15 years, enable communities to gain access

to financial services every day of the week, including Sundays and

public holidays.

Nedbank also leverages its strong market positioning with businesses

and the public sector, encouraging them to bank their employees

Kevin de Beer, Nedbank

Regional General Manager,

Branch Networks

through its innovative Nedbank@

Work employee banking offering.

This forms part of Nedbank’s

Banking and Beyond philosophy

and is aimed at supporting business

owners to make informed

decisions so that they can grow

and take their businesses to the

next level.

This is another way Nedbank

continues to make the things that

really matter with businesses and

communities happen.

For more information

contact Kevin de Beer,

Nedbank Regional General

Manager on +27 51 400 5813

or visit www.nedbank.co.za

FREE STATE BUSINESS 2017

32


A full range of

business solutions

FOCUS

Jordaan Roelofse, Nedbank Regional Business Head, Northern

Cape and Free State, explains how they are making the bank

relevant to business owners in the Free State.

There is great news for Free State business owners and entrepreneurs

seeking a unique banking experience: Nedbank

Business Banking has eight business managers

located across the province specialising in commercial and

agricultural industries. They are ready to assist you with professional

advice, industry-specific solutions and a comprehensive range of

financial products and services.

“At Nedbank Business Banking we believe that you need a financial

partner who not only understands your circumstances and

aspirations, but can also provide you with relevant solutions and a

banking experience that is hassle-free. This allows you to concentrate

on what’s most important to you – the running of your business,”

says Jordaan Roelofse.

At the core of the bank’s offering in the Free State is a relationshipbased

model, with a business manager dedicated to your business

as the key entry point into the bank. Each business manager is

supported by a team – comprising a credit manager, credit analyst

and services manager – which has a thorough understanding of

the regional economy and business market, and a genuine interest

in the success of each individual business. “When you do business

with us, you are speaking to people who know the area, understand

its nuances and are familiar with the various industries operating

here,” explains Roelofse.

An additional benefit of banking with Nedbank Business Banking

is that your business and your personal financial needs can be managed

in one place. “Because very often business owners and their

businesses are financially dependent on each other, our client service

teams now also offer individual banking solutions, better advice and

a hassle-free service to you and your staff as we already know and

understand your needs,” explains Roelofse.

With this in mind, Nedbank has recently introduced Nedbank@

Work – a unique service to employees of companies who bank with

Nedbank. The service facilitates convenient banking at the workplace

through bankers or consultants on site, in the branch or via our call

Jordaan Roelofse, Nedbank

Regional Business Head,

Northern Cape and Free

State

centre and internet channels.

In addition, Nedbank@Work

offers non-financial support to

you and your employees free

of charge, including financial

fitness training to employees

at all levels through customised

education programmes.

For more information about

our specialised service

offering please call Jordaan

Roelofse on +27 51 400 5700.

33

FREE STATE BUSINESS 2017


FOCUS

Zooming into Nedbank’s

small business interventions

Regional Manager Small Business Services, Kim Lawrence, explains

how Nedbank is committed to partnering with businesses for growth.

“Recognising that small businesses are the mainstay of

our economy and arguably the best remedy for the

country’s unemployment challenges, the bank has, over

the years, instituted various interventions aimed at giving

support to the small business sector. Over and above our Small

Business Services solutions, we provide small business owners with

support that goes beyond banking, freeing up their time to truly

focus on running their businesses,” says Kim Lawrence.

Nedbank has built a solid reputation as a bank for small businesses

through initiatives such as Small Business Friday, free Small Business

Seminars and the SimplyBiz.co.za platform – all of which are geared

to support the SME sector. As an example, the Small Business Friday

initiative, in association with the National Small Business Chamber

(NSBC), seeks to encourage all in South Africa to rally behind and

show their support to small businesses. Notwithstanding its name,

the initiative calls on all in South Africa to make a conscious decision

to vote small business through their hearts, feet and wallets;

not only on Fridays but in their everyday lives.

Supporting small businesses can translate to more sustainable

economic growth, social upliftment and job creation. The biannual

Nedbank Small Business Seminars (in their tenth year), are

free for attendants and provide practical advice and solutions for

small business owners. The inspired up-and-coming and emerging

entrepreneurs that attend the seminars benefit from invaluable insight

shared by small business experts. The seminars are rolled out

across the country and the topics include issues such as cash-flow

planning that works and turning strengths and weaknesses into

more sales and profits.

SimplyBiz.co za is a free-to-join value networking portal especially

for small businesses. It seeks to assist small business owners facing

unique challenges with valuable insights from other entrepreneurs

and our seminars. Moreover, the online portal is there for small businesses

to improve their business administration skills, keep up with

the latest trends, network with other small businesses and share

Kim Lawrence, Regional

Manager Small Business

Services

ideas or advice. Entrepreneurs

can also upload their business

details and logo at no cost.

Nedbank remains focused on

the enhancement of growth opportunities

for small businesses

through improved presence and

distribution of much-needed

expertise that will benefit the

sector. It continues to offer a full

range of services to this sector,

including short-term, mediumterm

and long-term funding as

well as transactional banking.

For more information about

our Small Business Services

call Kim Lawrence, Regional

Manager Small Business

Services on +27 51 400 5700

or email kiml@nedbank.co.za

FREE STATE BUSINESS 2017

34


Making banking

more accessible

FOCUS

Nedbank’s partnership with government is gaining momentum

according to Free State Regional Relationship Manager Liezel Herbst.

As a bank for all, Nedbank continues to support the government’s

efforts to promote sustainable socioeconomic development

through financial wellness in the public sector.

These efforts take place at local, provincial and

government level.

Nedbank has signed a memorandum of understanding with the

Department of Correctional Services (DCS) for the Free State and

the Northern Cape, in order to create a platform through which

local correctional services offices can access financial solutions

and planning for employees and the community at large. “We

are pleased to partner with DCS as part of our commitment to

make banking more accessible to all. Nedbank provides several

communities, including individual and business clients, with access

to products and services through Nedbank@Work – a unique

service to employees of companies who bank with Nedbank,” says

Liezel Herbst.

The bank offers convenient, client-centric banking by leveraging

company and community relationships through a dedicated key

account relationship manager. Through customised workshops

Nedbank@Work ensures that employees have access to non-financial

support and financial-fitness training. The workshops encompass

a range of Nedbank financial solutions that can be accessed

through a helpdesk, which also provides a platform for individuals

and communities to submit their corporate social responsibility

proposals for consideration by the Nedbank Foundation.

“At Nedbank we understand that in today’s world most people

are pressed for time and are not able to visit the branch, therefore

delivering banking services in a seamless and convenient manner

is key for us,” continues Herbst.

Nedbank understands that solutions aimed at the heart of South

Africa’s socioeconomic development can be found in collaboration

with all key stakeholders. “While we are acutely aware that there

are no quick fixes, we believe that addressing social challenges in

our country is a collective responsibility and this drives our commitment

to partner with government and local departments to

make a tangible difference,” concludes Herbst.

Liezel Herbst, Regional

Relationship Manager

Our range of products and services

include the Nedbank Keyona

Plus transactional account, which

comprises funeral cover, a personal

loan facility, the Just Save

Account and the Send Imali money

transfer solution. To encourage

the youth to save and build their

financial fitness from an early age,

the newly launched Nedbank4me

offering is based on four key pillars:

4spending, 4saving, 4growing

and 4good. Nedbank4me comprises

a full transactional banking

account with no monthly

fees, free initial transactions and

thereafter reduced pay-as-youuse

pricing, free eNotes and selfservice

banking.

For further information

contact Liezel Herbst on

+27 51 400 5754 or email

liezelh@nedbank.co.za

35

FREE STATE BUSINESS 2017


FOCUS

Old Mutual: doing great things

in the Free State

Old Mutual has invested in housing, renewable energy, education

and more in the Free State.

Kevin de Beer, Old Mutual

Free State Provincial

Management Board

Chairperson

Crystal Park – Old Mutual investing in affordable housing.

Thousands of affordable homes, roads and railways, renewable-energy

projects, investment in education, support for the needy and vulnerable,

and capital expenditure on projects that benefit communities

are just some of the initiatives in which Old Mutual is involved in the

Free State.

“Enabling positive futures is what our business is all about,“ says

Kevin de Beer, Old Mutual Free State Provincial Management Board

Chairperson, “and we’re immensely proud of the positive long-term

and beneficial impacts we’re making in this wonderful province.”

To date, the Housing Impact Fund South Africa (HIFSA), managed

by Old Mutual Investment Group boutique, Old Mutual Alternative

Investments, has invested R9-billion in the planned development

of 2 550 affordable homes for sale and rent in the province. These

comprise 2 208 greenfield housing units, 105 rental units and 237

units for student accommodation. Crystal Park and Raceway Park in

Bloemfontein are just two of these projects.

HIFSA also provides housing loans and rental accommodation

for families and students, and aims to help fill the gap in the market

between government-provided housing and those who have access

to bank finance to purchase their

own homes.

Old Mutual Investment

Group has committed close to

R30-billion in areas that specifically

drive long-term inclusive

economic growth, such as education,

affordable housing, lowcarbon

energy, agriculture and

infrastructure in South Africa. The

Infrastructural, Developmental

and Environmental Assets (IDEAS)

Managed Fund, managed by Old

Mutual Alternative Investments,

is made available to institutional

investors who wish to invest in

economic infrastructure such as

roads and railways, social infrastructure

including housing and

public-private partnerships, and

renewable energy like solar, wind

FREE STATE BUSINESS 2017

36


FOCUS

and hydro-generation projects.

Old Mutual Investment Group

participates in the government’s

Renewable Energy Independent

Power Producer Procurement

Programme via a number of its investment

boutiques, namely Old

Mutual Alternative Investments,

African Infrastructure Investment

Managers (AIIM), Futuregrowth

Asset Management and Old

Mutual Specialised Finance.

Through these boutiques Old

Mutual Investment Group has invested

about R14-billion in over

30 renewable-energy projects.

Two of these have been recognised

as being in the global top

15 largest plants measured in

capacity: the Lesedi solar-power

plant in the Northern Cape and

the Letsatsi solar-power project

in the Free State.

The Letsatsi project has generated

many spinoffs for the

local community, including 60

permanent jobs and 700 peak

seasonal jobs. The project has

also enabled the provision of

prefab classroom facilities at four

preschools (three in Dealesville

and one in Soutpan), and soup

kitchens at Kgololosego School

and Lapologang old-age home

in Mangaung township; and assisted

with renovations of the

Itereleng elderly luncheon club.

Both these solar-power projects

will also set aside a considerable

percentage of total product

revenues over their lifetimes,

which will be directly invested in

enterprise and socioeconomic

development programmes for the

surrounding local communities.

In 2013, the Old Mutual

Education Flagship Project

The Letsatsi solar-power project in the Free State.

(OMEFP) was launched. This seven-year multi-partner nationaleducation

initiative will invest R350-million in a set of under-performing

government schools in 10 school circuits in key provinces. The goal

is to positively influence the lives of 250 000 learners at 250 schools,

with the aim to increase the number of bachelor passes (university

entrance) among Grade 12 learners who have both maths and science

37

FREE STATE BUSINESS 2017


FOCUS

in their matric subject choice. In the Free State, 15 high and intermediate

schools and 39 primary feeder schools are part of the OMEFP.

One such school is Ntemoseng High School in Botshabelo, a small

town in the eastern Free State plagued by unemployment and poverty.

Here, five participating schools each have four specialist mentors in

maths, science and accounting, and school management for principals

and their management teams, to enable teachers to manage their

classes and curriculum content more effectively. Ntemoseng High

School is now the second best performing school in Botshabelo out

of 14 schools.

The Old Mutual Foundation provides a R100 000 grant to the

Bartimea School for the Blind and Deaf.

In 2015, the Foundation contributed

R27 870 000 to various

South African communities

which funded the development

of small black-owned businesses,

skills development projects,

support for staff volunteerism

initiatives and donations towards

vulnerable communities.

In the Free State specifically,

the Old Mutual Foundation

invested R268 000 via its

Old Mutual Staff Community

Builder programme in which

employees can receive up to

R45 000 over three years to financially

assist the organisations at

which they volunteer. This financial

investment aided in the support

of 14 projects and positively

impacted 6 187 beneficiaries.

The Foundation has financially

supported the Earthrise

Trust in the eastern Free State,

near the town of Ficksburg. The

R1.5-million grant given to this

enterprise aimed to establish

a co-operative communitydriven

vegetable-farming enterprise.

The project to date

has created 20 jobs (in the

form of co-operative members)

and promotes food security,

The Emfuleni feedlot in Tweeling is a Masisizane beneficiary.

FREE STATE BUSINESS 2017

38


FOCUS

Maths teacher, Mr Moyo, at Ntemoseng High School in Botshabelo, Free State.

nutrition and sustainable rural

livelihoods for trainee farmers

at Naledi and the surrounding

villages. Another demonstration

of the Foundation’s input

into the well-being of Free State

communities is a R100 000 grant

to the Bartimea School for the

Blind and Deaf for Perkins Braille

writers for blind learners.

The Masisizane Fund

(“Masisizane”), an Old Mutual

initiative that was established

in 2007 as a non-profit funding

company to provide loan

financing and support to small,

medium and micro enterprises

(SMMEs), is also a contributor to

the empowerment of the Free

State. Masisizane was set up

to contribute to job creation,

reduce inequality, promote

economic growth and support,

develop and promote entrepreneurship,

while attracting

investment to SMMEs.

The Emfuleni feedlot in Tweeling is a Masisizane beneficiary,

which has grown from a small business enterprise,established in

2013, to a feedlot that now has capacity to hold 8 000 sheep and

employs 28 full-time staff. Masisizane provided a loan in 2014 so

that they could buy more sheep and feed in order to sustain the

business. Masisizane continues to provide post-investment support.

“Old Mutual’s long-term success is closely connected to being

part of, and being trusted by, flourishing and sustainable local communities,”

says De Beer. “We’re committed to being a responsible

business with a view to the long term, and we continue to focus

on areas where our businesses can make a material impact and

create meaningful change for all our stakeholders. After all, we

know that what’s good for South Africa is good for Old Mutual,

and vice versa.”

For more information contact:

Julie Hutchins, Communications Manager

Tel: +27 11 217 1648

Cell: 072 553 7366

Email: jhutchins@oldmutual.com

39

FREE STATE BUSINESS 2017


KEY SECTORS

Overview of the main economic

sectors in the Free State

Agriculture 40

Mining 43

Oil and gas 46

Manufacturing 48

Transport and logistics 50

Tourism 55

Education and training 58


OVERVIEW

Agriculture

The grain-rich Free State is investing in poultry operations.

Any event that attracts 448 helicopters and light aircraft

must have something worth seeing. The 50th edition of

the NAMPO Harvest Day was held in 2016 – and it is now

regarded as one of the biggest agricultural festivals and

exhibitions of its kind in the world.

Transactions worth R50 000 were recorded at the second event

in 1968. With 75 116 visitors and 685 exhibitors, the 2016 Harvest Day

undoubtedly did rather better than that. Apart from the trading and

the festivities, there is an annual Farmer Patent Competition, sponsored

by Grain SA and Omnia, the fertiliser company.

Bothaville, the host town, is located in the Lejweleputswa District

Municipality on the western boundary of the Free State. So far west

is Bothaville, that Senwes counts it as part of its North West region.

SECTOR INSIGHT

Large percentages of South

Africa’s agricultural produce

comes from the Free State.

• The NAMPO Harvest attracted

75 000 visitors.

• A record maize supply deal

has been signed.

The giant agricultural company,

with its headquarters in the North

West city of Klerksdorp, has three

FREE STATE BUSINESS 2017

42


OVERVIEW

separate regions for the rest of the

Free State (east, north and south)

as the province forms a vital part

of the group’s portfolio. The company

deals with no less than 20%

of the country’s oilseeds and grain

through its 68 silos.

At the NAMPO event, Senwes’

commodity trading company,

TradeVantage, signed a deal with

Meadow Feeds to supply the

animal feed supplier with 800

000 tons per year until April 2018.

This is said to be the largest single

maize contract to be signed in

Southern Africa. Meadow Feeds,

a subsidiary of Astral, will use the

maize to feed 37-million chickens

on a daily basis. The national feed

industry has an annual turnover of

R50-billion and if this money has

to be spent in dollars to buy the

raw materials, it becomes a very

expensive business.

VKB Agriculture, another of

the province’s large agricultural

companies that used to

be farmers’ co-operatives, has invested heavily in the Grain Field

Chicken abattoir in Reitz (together with the broiler houses in

Tweeling). The Industrial Development Corporation (IDC), which

has a 23% stake in the project, intends to help develop the Free

State as the poultry hub of South Africa.

The VKB headquarters are in the town of Reitz in the northeastern

part of the province and the group has nine brands

in sectors such as fuel, grains, animal feed and foods. The

financial division held information sessions with emerging farmers

in 2016 to explain how farmers can benefit from the partnership

between VKB and the Land Bank. VKB has development programmes

with 51 emerging commercial farmers (cultivated area

5000ha) in the Free State and data on 140 developing farmers on

its Free State database.

During the course of 2016, the IDC lent R400-million to the

Land Bank to help farmers deal with the multi-year drought,

which only broke in late July. Grain SA reported that more than

3.5-million tons of maize would have to be imported to South

Africa for the 2016/17 season.

The drought has had the effect of reducing the agricultural

sector’s influence on provincial GDP (from 8% to 5%) but the

province still supplies almost all the country’s cherries and about

half of the country’s maize and sunflower seed. In addition, a third

of South Africa’s wheat comes from the Free State.

About 24% of South African beef and 17.4% of sheep (mutton

and wool) is produced in the Free State. A recent development

has seen the province increase its share of the soya bean market. It

43 FREE STATE BUSINESS 2017


OVERVIEW

now accounts for about 40% of the nation’s soya bean production

market. The provincial government has plans in place to invest in

the development of the Free State apple industry in the Thabo

Mofutsanyana District.

The drought reached crisis proportions at times. At one point,

Senwes decided to send emergency relief to farmers in the

Bultfontein district, and South African Breweries chipped in to

help with the transport to haul the bales.

Potential

Just over 90% of the Free State province is agricultural land, with

32% of its 11.6-million hectares classified as arable and 60% suitable

for pasture.

The agricultural sector is vital to the well-being of the province, both

as a provider of food and jobs. But it also holds the potential in its raw materials

to help the Free State expand its manufacturing sector. Provincial

authorities are very upbeat about the potential for agri-processing.

Investors are being encouraged to look at baby vegetables, wholesale

meat production (including poultry) and leather manufacturing.

CONTACT INFO

Department of Agriculture and Rural Development

Physical address: Gielie Joubert Street, Glen, Bloemfontein 9360

Tel: 051 861 8510 | Fax: 051 861 8578 / 086 723 8206

Website: www.ard.fs.gov.za

Agricultural Research Council: www.arc.agri.za

GrainSA: wwwgrainsa.co.za

National Department of Agriculture, Forestry and Fisheries:

www.daff.gov.za

The Mangaung Fresh Produce

Market plays a vital role in the sector,

catering as it does to householders,

bulk buyers, informal

traders, agents and farmers.

The Free State Department

of Agriculture and Rural

Development (DARD) has highlighted

the fact that only 11% of

the province’s primary agricultural

production is processed

within the province’s boundaries.

Improving on this percentage

is key to the strategy known

as Mohoma-Mobung. A sum of

R30-million has been allocated

to the first phase of the project.

The key to commercialising

these agricultural options is access

to finance and the Industrial

Development Corporation has

been very active in the province

in this sphere.

Clover has three factories in

the Free State: Bethlehem (milk

powder, whey mixtures and

creamers); Frankfort (butter,

the largest such factory in the

country, where ghee and rollerdried

milk powder is also made);

Heilbron (whey, buttermilk, condensed

milk and packaging).

A R45-million donation from

the People’s Republic of China

assisted with the construction of

a Demonstration Fish Hatchery

Centre, which is now operational

and is staffed by three Chinese

professors and a technician as

part of a technological cooperation

agreement. There are also

plans to establish a mega Agri-

Park in the Xhariep district comprising

fish, ostrich, sheep and

vegetable production, along with

packaging and marketing.

FREE STATE BUSINESS 2017

44


Mining

Diamond mines are expanding production.

OVERVIEW

Although the mining sector is no longer dominant, coal-, gold

and diamond – mining still make up an important part of the

Free State economy. Reduced global and domestic demand

have affected coal and gold miners and employment is

down, but diamond production is on the up.

The mining sector has seen significant changes in the last three

years, and further changes are in store. Two of the most significant

events were the unbundling of Gold Fields and the decision by Anglo

American to concentrate on three minerals – copper, platinum and

diamonds. Both affect the mining sector in the Free State.

Sibanye Gold came into existence as a result of Gold Fields’ decision,

and it quickly became the largest producer of gold in South Africa.

Sibanye Gold is responsible for Beatrix in the Free State, but most of

its gold assets are in Gauteng. Sibanye has bought several platinum

assets and may be a buyer of some of Anglo American’s coal mines.

The Sunday Times reported in July 2016 that Sibanye had paid out about

SECTOR INSIGHT

Petra Diamonds increased

revenue by 44% in 2016.

• Newcomer, Sibanye

Gold, has paid out nearly

R3-billion in dividends.

R2.8-billion in dividends since it

was established in 2013.

Coal is mostly found in the

northern part of the Free State

and the gold fields, which form

part of the Witwatersrand Basin,

stretch from north of Welkom to

south of Virginia.

45 FREE STATE BUSINESS 2017


OVERVIEW

Lucrative opportunities exist for mineral processing. A minerals

beneficiation strategy has been developed because this sector is seen

as a key area for potential growth.

Diamonds

Petra Diamonds’ Koffiefontein mine increased revenue from

$17.8-million in 2015 to $25.7-million in 2016, an increase of 44%. The

total carats sold rose by 21% to 55 500. This is part of the company’s

long-term expansion plan at the mine (situated in the south-western

part of the province). By 2017, Petra intends on producing 100 000 carats

per year from the mine, which has a resource of 5.7-million carats. Petra

has seven mines in South Africa. The Star mine, in which Petra (75%)

is in partnership with Sedibeng Mining, is the other Free State asset.

The Lace mine is near Kroonstad, which Diamond Corp is in the

process of raising money to develop more rapidly. The intention is

to produce ore at a rate of 4 000 metric tons per day, and access to

higher-grade kimberlite could lead to the production of 500 000 carats

per year. The Industrial Development Corporation has advanced

R220-million in project finance.

In March 2014, a new share issue

in London attracted R38-

million and was over-subscribed.

Further funds were raised in July

2015 and December 2015 (when

R70-million was raised).

De Beers’ Voorspoed mine

will have a production capacity of

800 000 carats per year when

it is fully operational. During

the building phase, about

R70-million was generated

in the region, and the company

intends on spending

R400-million per year on

capacity development.

In July 2016, De Beers, the

South African government and

the South African diamond

cutting industry launched a

project to encourage diamond

beneficiators. Among the first

companies involved are Thoko’s

Diamonds, African Diamonds,

Nungu Diamonds and Kwame

Diamonds.

Coal

The energy sector is using less

coal and neither of the main sectors

that use the chemicals made

at Sasolburg (agriculture and mining)

is growing.

The mine is run by Sasol

Mining and supplies Infrachem

in Sasolburg with two-million

tons of coal per year. Sasol Mining

has invested in dust-suppression

technologies, which are remote

controlled. Technologies include

scrubbers and high-pressure

water spray systems.

Anglo Coal runs the New Vaal

Colliery in the middle of a triangle

FREE STATE BUSINESS 2017

46


OVERVIEW

of three towns that play an important

part in industrial production:

Vereeniging, Sasolburg and

Vanderbijlpark. The mine employs

more than 900 people and supplies

about 15-million metric tons

of coal to Eskom’s Lethabo Power

Station annually. This mine will be

among the assets on the block

when Anglo American disposes

of all its coal mines. To what degree

the sale will be an opportunity

to increase black ownership

of mines remains to be seen.

Gold

AngloGold Ashanti’s Vaal River

Complex operations are mostly

near the town of Orkney in the

North West Province. However,

the Great Noligwa, Kopanang

and Moab Khotsong mines are

all over the Vaal River in the Free

State. The complex includes one

uranium plant, four gold plants

and one sulphuric acid plant.

AngloGold Ashanti intends to

spend several billion rands over

the next decade to extend the

life of the Moab Khotsong mine.

Village Main Reef runs the Tau

Lekoa mine in the same vicinity.

Most of Harmony’s operations,

including a tailings treatment,

are in the Free State.

The mines are Tshepong and

Phakisa (near Odendaalsrus),

Virginia, Target (near Allanridge),

Masimong (Riebeeckstad),

Joel (near Theunissen) and

Bambanani at Welkom. Phakisa

has mineral reserves of just over

five-million ounces of gold and

Harmony has invested heavily

in the project. Bambanani

is regarded as the most profitable mine in the group: the

amount of gold produced at the mine increased in 2015 to

2 908kg from 1 606kg in 2013. Target and Tshepong (the most northerly

of the mines in this cluster) together produced 8 102kg in 2015.

Gold mines in the Free State also supply a substantial portion of

the total silver produced in the country, and large concentrations of

uranium occurring in the gold-bearing conglomerates of the gold

fields are extracted as a by-product.

Taung Gold, a Chinese company, runs the Jeanette mine near the

town of Welkom.

Other minerals

By-products of gold operations (uranium, silver, platinum-group

metals and sulphuric acid) and bentonite are also found in the province.

Among the companies running large quarries in the Free State are

Lafarge, Raumix and Corobrik. Sand, stone aggregate, gypsum and

granite are found at various sites throughout the province. Limestone

and calcrete occur in the western Free State where salt is also panned.

Production is concentrated around the Florisbad salt pan, north-west

of Bloemfontein. The Ocean Bentonite Mine near Koppies in the northwest

Free State is one of only two in the country.

CONTACT INFO

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

Geological Society of South Africa: www.gssa.org.za

Mining Qualifications Authority: www.mqa.org.za

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

South African Mining Development Association: www.samda.co.za

Southern African Institute of Mining and Metallurgy:

www.saimm.co.za

47 FREE STATE BUSINESS 2017


OVERVIEW

Oil and gas

Sasolburg is at the heart of South Africa’s oil and gas industry.

SECTOR INSIGHT

A helium plant is set to exploit

a new gas field.

• A gold miner is extracting

power from methane gas.

An energy-from-methane power plant now running at the

Beatrix Gold Mine neatly encapsulates a shift from the old

economy to the new. Although the Sibanye-owned gold

mine still has significant reserves of the mineral, it is the shift

to this new technology that is sparking interest and showing the way

to creative energy solutions.

Sibanye’s predecessor, Gold Fields, was the first gold miner to

sell Certified Emissions Reduction (carbon trading units) and now

the mine is producing 2MW of power for the mine’s operations. The

Beatrix Project was registered as a methane-gas-capture project

with the United Nations Framework Convention on Climate Change

(UNFCCC). Aggreko, a company that specialises in providing temporary

power, is running the operation in partnership with Sibanye.

During the 2010 FIFA World Cup in South Africa, Aggreko supplied

253 generators to stadiums and

broadcast centres.

The Natref fuel refinery is

one of only four in South Africa

and the country’s only inland

refinery. It is strategically placed

at Sasolburg near to the industrial

hub of southern Gauteng.

The petrochemical complex at

Sasolburg is a major national asset.

Among the many chemical,

oil and gas companies operating

out of Sasolburg are several companies

within the Sasol group.

One of these, Sasol New

Energy, has been working on

moving the group away from

reliance on fossil fuels. The gasto-electricity

power plant in

Sasolburg delivered 1 348 263

megawatt hours of electricity

in 2014. This takes the total generation

capacity of Sasol up to

about 70% of its requirements.

The resulting savings will improve

Sasol’s profit margins, reduce

carbon dioxide emissions

and take pressure off the national

electricity grid.

FREE STATE BUSINESS 2017

48


Oil

The Natref fuel refinery is a joint

venture between Sasol Oil (63.6%)

and Total SA (36.3%). It is a technologically

advanced facility, which

refines heavy crude oil into petrol,

diesel, commercial propane, jet

fuel and bitumen. The capacity is

92 000 barrels per day. Between

60% and 70% of petroleum is distributed

by pipeline, 20% to 25%

by road and 5% by rail.

The products sold by Sasol Oil

include both lead replacement

and unleaded petrol, Sasol turbodiesel,

a range of lubricants,

industrial fuel oils, illuminating

paraffin and liquid petroleum

gas, in addition to marine diesel

oil and bitumen.

Petroleum Agency SA is a government

agency that supports

exploration for onshore and offshore

oil and gas resources and

regulates exploration and production

activities. The agency is

the custodian of the country’s

database related to all exploration

and production.

Gas

South Africa is turning to gas as

an alternative to coal as an energy

source, with Sasol being the

major supplier. Sasol is doing its

own conversions at its plants. The

major economic sectors using gas

are the metals sector (48% of volume,

although the steel sector’s

downturn will affect this negatively),

and the chemical, pulp and

paper sector (about 20%). Brick

and glass manufacturers are also

big consumers.

OVERVIEW

A major investment by Afrox (a member of the Linde group) will see

a R200-million plant built to extract helium near Virginia. Renewable

energy company, Renergen, owns the right to the natural gas and

helium field around Virginia (which has proven reserves of 25-billion

cubic feet). Afrox will operate the plant and sell the helium. Bus companies

are in the market to buy another product, which the plant will supply,

compressed natural gas. This will be a cheaper alternative than diesel.

Afrox operates a CO2 liquefier at Sasolburg, which is aimed at supplying

the bottling and hospitality markets, where demand is strong.

Pipelines

Pipeline gas supplied from Sasolburg amounts to 27.3-million gigajoules,

with customers mostly in the greater Johannesburg area, the

industrial complex east of the city, and Durban. Gas raw materials come

mainly from the by-products of Sasol’s petroleum plants at Secunda

(Mpumalanga) and Sasolburg. Products include oxygen for medical

use, liquefied petroleum gas for industrial, household and recreational

use, and oxygen and acetylene. Specialised gases such as argon, helium

and nitrogen are also produced. One of Sasol’s most important pipeline

travels 865km through four South African provinces, including the Free

State, from Mozambique’s gas fields.

Transnet Pipelines is the key national operator in this field, handling

an average of 16-billion litres of liquid fuel, and more than 450-million

cubic metres of gases every year. The liquid products are leaded and

unleaded petrol, aviation turbine fuels, diesel and crude oil.

One of the pipeline intake stations is at the crude refinery at

Coalbrook (Natref) in the Free State, and the pipeline network stretches

out over the province into KwaZulu-Natal, Gauteng, North West and

Mpumalanga, and Botswana and Mozambique. Transnet Pipelines

employs 600 staff and its clients include all of South Africa’s major fuel

companies, namely: BP, Caltex, Engen, Exel, Sasol Oil, Sasol Gas, Tepco,

Shell and Total.

CONTACT INFO

Department of Economic, Small Business Development,

Tourism and Environmental Affairs

Physical address: Bojanala Building, 34 Markgraaf Street,

Bloemfontein 9300

Tel: 086 110 2185 | Fax: +27 51 400 9593

Website: www.edtea.fs.gov.za

Petroleum Agency SA: www.petroleumagancy.com

Sasol: www.sasol.com

South African National Energy Association: sanera.org.za

49 FREE STATE BUSINESS 2017


OVERVIEW

Manufacturing

The Free State’s Special Economic Zone is attracting new manufacturing investment.

Innovation in manufacturing is the name of the game at the

Product Development Technology Station (PDTS) at the Central

University of Technology (CUT). CUT has campuses in Bloemfontein

and Welkom.

The PDTS helps small businesses (SMMEs) with the technology to

design new products, to test them or to improve existing products. The

PDTS is funded by the Technology Innovation Agency (TIA) and works in

partnership with another CUT unit, the Centre for Rapid Prototyping and

Manufacturing (CRPM). This unit’s speciality is 3D printing (or Additive

Manufacturing). With 10 AM machines, the CRPM is extremely wellequipped;

there are few organisations in the southern hemisphere

with such resources.

This kind of innovative thinking is needed as the Free State urgently

looks for ways to develop new kinds of manufacturing businesses.

Reliance on mining and agriculture (purely as producers of raw materials)

is becomingly increasingly precarious, as recent commodity price

falls have shown. These primary sectors are now being seen as targets for

beneficiation, but new manufacturing opportunities are also being sought.

One of the ways of attracting new manufacturers is through tax and

other incentives in the province’s Special Economic Zone (SEZ), the 1 000ha

Maluti-a-Phofung SEZ at Harrismith, a vital transport and logistics node on

the N3 between Johannesburg and Durban. Already there has been interest

from companies in a variety of countries including China, Bulgaria and India.

Among the projects in the pipeline are a factory making transformers and

another manufacturing medical equipment. Gas canisters, fruit concentrate

and smart meters are other things that are going to be made in the SEZ.

Local communities and entrepreneurs are being encouraged

to think of ways of using assets that will be left behind:

shafts, workshops, boarding houses, recreational facilities and

metallurgical plants.

Agriculture and mining can still play an important role in providing

raw materials for manufacturing processes. The Virginia Jewellery Hub,

for example, takes advantage of the availability of gold and silver in the

Lejweleputswa district.

Assets

The existing manufacturing sector also has capacity in many sectors

including chemicals, agri-processing, textiles, carpets, engineering,

packaging, furniture and jewellery.

SECTOR INSIGHT

SMME manufacturers in

the Free State can have

their products tested and

improved.

• Nouwens Carpets has

joined the Green Building

Council of South Africa.

• Boxmore Plastics has

created a special PET beer

bottle.

Nouwens Carpets, based in

Harrismith, was established in that

town in 1962 and has now joined

the Green Building Council of

South Africa. Another Harrismith

manufacturer, Boxmore Plastics, is

South Africa’s biggest converter of

PET resin to bottles and it sells its

products in 26 countries. Boxmore

has developed a PET bottle especially

for the South African

beer market.

Boxmore Packaging’s new PET

beer bottles are the first PET bottles

specifically designed for beer

on the SA market.

Empire Gloves makes industrial

gloves. Kroonstad-based

Octa Engineering makes specialised

rail carriages for the gold

and platinum mining sector on a

10 000m² site that contains two

factories. The company employs

about 250 people.

In Bloemfontein, Transnet

Engineering manufactures new

wagons for the Transnet group,

including iron ore and cement

FREE STATE BUSINESS 2017

50


OVERVIEW

wagons and fuel tankers. Transnet

wants the group’s component

companies to go beyond simply

supplying other Transnet companies.

To this end, it has invested

about R300-million in developing

its Trans-Africa Locomotive, which

it intends to sell on the continent.

The domestic fleet of coal and

iron ore wagons comprises about

10 000 wagons.

Although the textile and apparel

sector has been under tremendous

pressure from cheap

imports, something of a recovery

has more recently been achieved

through specialisation and

through the coming together of

smaller operators. The Industrial

Development Corporation has

also targeted the clothing and

textile industry as one that has

been particularly hard hit by a

high influx of inexpensive textile

products. It consequently

has supported (either by way

of loans or equity investments)

several manufacturers. (A similar

scheme operates in Leather and

Footwear.)

The towns of Botshabelo,

QwaQwa and Thaba Nchu

have factories employing several

thousand people. The Free

State Clothing Manufacturers’

Association comprises mostly

Chinese and Taiwanese factory

owners, according to the Mail &

Guardian.

Nearly 20% of the Free State’s

manufacturing sites are devoted

to food and beverages, with softdrink

giant Coca-Cola Fortune,

operating a large bottling plant in

Mangaung. Clarens in the northeast

has its own microbrewery,

Clarens Brewery, which hand-

crafts 8 000 litres of full-grain ales a month using the finest malts

and hops sourced both locally and internationally, as well as 200 000

litres of cider under its Red Stone Cider label annually. Landzicht Wine

Cellar, an operation that distributes 2.4-million litres of wine every year

from Jacobsdal, has a new bottling plant.

Nestlé makes infant nutrition products in Harrismith, and Clover

has three factories in the province, which produce butter, whey and

milk products.

The Imbani Homsek Group is an integrated dairy products producer

with one of the biggest Ayrshire herds in the world, with

2 000 head registered. Its Bloemfontein facility can produce up to

120 000 litres per day of fresh dairy products, backed up by a further

200 000 litres per day from their Long Life factory. It supplies all the

major retailers nationwide, with its fresh milk being stocked by the

Woolworths group.

The main poultry and animal feed operations of Imbani Homsek

Group (CHB) are in the Free State. They supply between 1.2-million

and 1.4-million of chickens on a weekly basis to retail and fast food

clients around South Africa.

One of CBH’s strategic subsidiaries is Nutri Feeds, a manufacturer

of animal feed with feed mills in Bloemfontein (monthly capacity of

(6 000 tons) and Viljoenskroon (32 000 tons) and Mafikeng (8 000 tons).

Chemicals are a major sector within the Free State manufacturing

basket. Reference has already been made to Omnia. AECI is another

major presence in Sasolburg (six-month revenue in speciality chemicals

to June 2016 was R5-billion), but the giant is the company after

which the Northern Free State town was named, Sasol.

The various components of the Free State Sasol complex produce:

Sasol Nitro: ammonia, nitric acid, industrial explosives and fertilisers.

Sasol Polymers: ethylene, propylene, polypropylene and hydrochloric

acid.

Sasol Solvents: alcohols, acrylic acid, ethyl acetate and mining chemicals.

Sasol Olefins and Surfactants (SO&S): paraffins, olefins, zeolites and

oleochemicals.

Sasol Wax: World-leading supplier of hard and medium waxes,

petroleum jellies and liquid paraffins.

CONTACT INFO

Dept of Economic, Small Business Development, Tourism and

Environmental Affairs

Physical address: Bojanala Building, 34 Markgraaf Street,

Bloemfontein 9300

Tel: 086 110 2185 | Fax: 051 400 9593

Website: www.edtea.fs.gov.za

51 FREE STATE BUSINESS 2017


OVERVIEW

Transport and logistics

The Free State is a logistics hub.

SECTOR INSIGHT

• Independent truck

owners in Bloemfontein

have been given new

opportunities.

• A reopened branch rail

line is providing new

connections.

Chemicals, maize and gold are three of the most important

commodities that rail and road logistics companies have

to transport out of South Africa’s most central province.

Expansion on the part of Omnia (the chemicals, explosives

and fertiliser company based in Sasolburg), led to an entirely new set

of rail wagons being designed and built by Transnet Engineering (TE).

Omnia took delivery of 145 new wagons to take ammonia away from

their new plants in Sasolburg. The specialist wagons were designed to

deal with pressure up to 1930kPa and were made of high-grade steel.

To give an idea of the scale of the logistics in the national gas industry,

the Afrox fleet alone covers about 24-million kilometres every

year. Transnet Freight Rail (TFR) delivers chemicals from Sasolburg to

Durban and Richards Bay

Gold miners in the Free State have contracts with independent rail

contractors, such as Sheltam and Rail Road Logistics Grindrod (RRL

Grindrod), for the movement and delivery of their ore from mines to

plants. Sheltam operates out of Virginia.

When it comes to maize, what used to be the preserve of the national

rail carrier (up to 80% of the crop used to be transported by rail)

is now a very competitive environment with road freight operators as

strong competitors. But Transnet Freight Rail has plans to regain market

share. The main grain lines that TFR operates through the Free State

are Kroonstad to Durban and

Klerksdorp to Polokwane.

The reopening of the Orkney-

Vierfontein branch line is an example

of how TFR plans to go

about increasing its market share.

The 15km offers farmers in the

North West province improved

connections to the rest of the rail

network. Grain transport is not

the only reason for revitalising the

line, work on which was mostly

done by Transnet teams working

out of Bloemfontein, but it could

also carry bulk liquids and passenger

trains if there was demand.

For the fast-moving consumer

goods (FMCG) sector, the main

train flows are from Rosslyn

(Pretoria) to Bloemfontein.

Kroonstad is one of the country’s

most important junctions,

straddling as it does the main

line between Cape Town and

Johannesburg. It is also a major

marshalling yard.

Transnet’s manganese packaging

facility in Bloemfontein has

recently expanded the scope of

FREE STATE BUSINESS 2017

52


OVERVIEW

its operation, which has led to

the creation of more opportunities

for SMME truck owners. The

provincial government’s Women

in Transport and Logistics project

has given opportunities for work

to many operators.

Several national roads pass

through the province: the extremely

busy N3 to the ports of

Durban and Richards Bay, the N1

and N5 highways leading to the industrial

development zones at Port

Elizabeth (Coega) and East London,

with the N1 ending at the port city

of Cape Town. A plan to boost “corridor

development” along the N8 is

also in place. The N8 connects the

provincial capital with Lesotho’s

capital, Maseru, and the Northern

Cape city of Kimberley.

Harrismith is also centrally located:

300km from Johannesburg,

350km from Bloemfontein and

300km from Durban. This has

made it the ideal location for a logistics

hub and dry port, and the

volume of cargo passing through

Harrismith has been increasing

steadily for several years.

The Durban-Free State-

Gauteng logistics and industrial

corridor is not only intended

to promote better transport of

goods between the end points,

but also to boost economic development

in towns and rural

areas along the way. The Maluti-

A-Phofung SEZ (Special Economic

Zone) will contribute to this.

The Mangaung Metropolitan

Municipality has a five-year

Integrated Development Plan in

place, and transport is a key component.

The N8 is a central part of

the plan, providing, as it does, the

main link on the east-west axis.

The great advantage of being centrally located also brings with it

the challenge of maintaining roads that are heavily used. National roads

are maintained by the South African National Roads Agency (Sanral),

but there are many roads that the provincial government must keep

in good condition.

The preservation of the network includes ensuring that communities

are not isolated, that township roads are improved and bridges

maintained. Various banks of data also have to be maintained to assist

in management, for example, traffic counting, accident data and

overloading control.

Bloemfontein’s Bram Fischer International Airport is the province’s

major airport and is managed by Airports Company South Africa

(ACSA). A project covering 2 000ha and expected to cost in the region

of R100-billion over several phases has been initiated at the airport.

Ultimately, the area will have industrial land, mixed housing, a regional

mall and be served by public transport.

New Tempe Airport, 15km north of the city, is privately owned and

is used for charter flights, recreational flying and the Bloemfontein Air

Show. Airports are also located at Bethlehem and Welkom, and there

are a number of airstrips on farms and game reserves.

CONTACT INFO

Dept of Police, Roads and Transport

Physical address: 45 Charlotte Maxeke Street, Perm Building,

Bloemfontein 9301

Tel: +27 51 409 8849 | Fax: +27 51 409 8864

Website: www.policeroadstransport.fs.gov.za

Railroad Association of South Africa: www.rra.co.za

Roadfreight Association of South Africa: www.rfa.co.za

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

53 FREE STATE BUSINESS 2017


Bram Fischer International Airport

Bloemfontein International Airport

was officially renamed Bram Fischer

International Airport by President

Jacob Zuma at a historic event held

on 13 December 2012. Airports Company

South Africa is honoured to commemorate

the life of a man who stood for what was right

and sacrificed his own heritage for the sake

of freedom for all.

At the heart of the economy in the region,

Bram Fischer International Airport not only

offers a world-class airport operation for passengers

and cargo, but also fulfils its role as

an economic hub strategically situated on the

N8 Corridor, which links Bloemfontein, the

industrial area of Botshabelo and Maseru in

Lesotho. The airport caters for more than

400 000 passengers and 20 000 air traffic

movements per annum.

Historically, the economy of the Free

State depended on agriculture and mining,

with about half of South Africa’s sorghum

and sunflowers, and more than 30% of the

wheat, maize, potatoes and groundnuts

being grown in the province. Livestock, flowers,

cherries and asparagus are other important

agricultural products. In an effort to

reduce reliance on agriculture and mining,

business sectors such as research and innovation,

pharmaceutical manufacturing and

processing of agricultural produce are being

encouraged.

The Free State shares boundaries with six

other provinces as well as Lesotho, and is

crossed by important rail links and two of the

busiest national highways, the N1 and the N3,

giving natural impetus to the focus on logistics

as an economic driver.

Bram Fischer International Airport has been

designated as an economic node and focal

point for development on the N8 Corridor.

Consequently, the airport’s capacity will require

expansion in the future for it to maintain

its pivotal position in expanding the tourism, logistics

and light-industry sectors in the region.

Bram Fischer International Airport will continue

facilitating growth and development in

the Free State and specifically Mangaung.


- In the Heartland of South Africa

Growth and development

opportunities

Boulevard Precinct

Immediately adjacent to the airport, the Boulevard

Precinct will include a private hospital,

residential, retail, schools and commercial

premises. This is an exciting and innovative, 44-

hectare development which will support the

N8 development corridor. It will accommodate

a wide range of tenants, ranging from mixeduse

offices, a service station and a private

hospital. Construction of the first three developments

will commence in 2016, acting as a

catalyst for the node.

The Grasslands

Approximately 98 hectares in extent, this development

property represents a diverse range

of business opportunities. These include an

extended general aviation area, freight, cargo,

logistics and housing.

www.airports.co.za

For more information contact:

Esmaralda Barnes: Tel: 051- 407 2215 . E-mail: esmaralda.barnes@airports.co.za


INTERVIEW

Poised for growth

Esmaralda Barnes, Airport Manager at Bram Fischer

International Airport, discusses some of the

advantages of the airport in Bloemfontein.

Esmaralda Barnes

BIOGRAPHY

Esmaralda Barnes was appointed

as South Africa’s first

woman manager of an international

airport at Pietersburg in

1996. She then moved to Matavia

Airlines, where she managed

their South African operations

before moving to the UAE,

followed by a short stay in The

Gambia. In 2001, Esmaralda

was approached by the South

African Civil Aviation Authority

to take over the management

of Pietermaritzburg Airport.

In 2003, Airports Company

South Africa appointed Esmaralda

as Airport Manager at

Upington, and was transferred

to Bram Fischer International

Airport in 2013.

Could you give an overview of the facilities and capacity

of the airport?

In terms of capacity, over the previous financial year, the airport processed

a total number of 34 348 Air Traffic Movements, which produced

393 471 passenger movements. This is an 8% increase on the previous

financial year’s movement, and a 5% increase compared to budget.

This is good considering the current slow growth in the national and

provincial market.

Bram Fischer International Airport has excellent facilities, which

include two intersecting runways, that assist with landing and taking

off from the alternate runway should it not be conducive for the main

runway to be used. This almost eliminates chances of having to divert

traffic due to heavy or swirling wind movements.

What services do you offer to businesses?

Bram Fischer International Airport is the main aviation hub in the Free

State. We carry a diversion status for the country, which means that if

an aircraft cannot land at its destination due to weather or technical

challenges, our airport is the next point of diversion. Bram Fischer

International Airport is well positioned to offer a national distribution

and collection point to exporters and importers of light cargo. The

size of the infrastructure enables quick processing of imports and

exports efficiently.

We are well positioned to relieve pressure from OR Tambo

International Airport, while ensuring growth of the Free State province.

What opportunities for development are there at the

airport?

There is vast undeveloped land near the airport. Airport Company

South Africa’s drive is to focus on non-aeronautical revenue that can be

generated through proper analysis of the business demand and availability

within our region, province and national economy at large.

FREE STATE BUSINESS 2017

56


Tourism

Cultural tourism is a new focus for the Free State.

OVERVIEW

Situated as it is in the centre of the country, the Free State’s

road infrastructure comes under disproportionate pressure,

but the road network plays an important part of the support

system that keeps the tourism industry going.

Tourist operators in the Free State’s northern section are delighted

that the R74 road (Oliviershoek Pass) has been fixed and upgraded.

Providing as it does an alternative to the very busy N3 highway between

Johannesburg and Durban, the R74 is an important link to the

tourism sites along the edge of the Drakensburg mountain range,

including a route from the north to the Royal Natal National Park.

The Free State is putting a focus on culture in various forms, as a

way of expanding the tourist offering of the province. The province

already has dramatic mountainscapes, huge bodies of water that lend

themselves to recreation and the wide open spaces that travellers crave

when they want to get away from the city pressures.

A Heroes’ Park is to be constructed at Thaba Nchu and Tumahole

and statues of Oliver Tambo and Fidel Castro are to be unveiled as

part of the provincial government’s drive to promote cultural projects.

Bloemfontein’s history includes the fact that both the party of apartheid

(the National Party) and the party that helped defeat apartheid,

SECTOR INSIGHT

The Vaal River is a popular

destination for holidaymakers.

• de Stijl Gariep Hotel was

a provincial Lilizela award

winner in 2015.

the African National Congress

(ANC), were founded in the city.

The Mangaung African Cultural

Festival (Macufe) is a Bloemfontein

event that, since it began in 1997,

has become a national and international

event. Offerings range

from music (gospel to jazz and

Afrikaans liedjies) and craft stalls to

poetry, film and theatre, a soccer

tournament and boxing matches.

57 FREE STATE BUSINESS 2017


OVERVIEW

Phase Two in the construction of the Thabo Mofutsanyana Arts

and Culture Centre has begun, and the provincial government

intends establishing sound-recording studios around the province,

to enable talented musicians to record their music, and derive some

income from their talent.

South Africa’s largest hotel groups have several brands that cater to

different markets. In the Free State, Protea Hotels has five properties:

Protea Hotel Bloemfontein by Marriott and Protea Hotel Willow Lake

(both four-star), Protea Hotel Bloemfontein Central (three-star), Protea

Hotel Montrose (Harrismith) and Protea Hotel Clarens.

The four-star Southern Sun Bloemfontein, part of the Tsogo Sun

group, has 147 rooms, and the Goldfields Casino in Welkom is another

Tsogo Sun property.

The City Lodge Bloemfontein boasts 151 rooms, and there is a

Road Lodge at the airport.

The Rantsoareng Group operates exclusively in the Free State and has

three properties. The biggest of these is the President Hotel in Bloemfontein,

a three-star hotel with 145 rooms and banqueting and conference

facilities for up to 420 people.

Sun International runs the Lesotho Sun and the Maseru Sun in

neighbouring Lesotho. In Bloemfontein, the Windmill Casino and

Entertainment Centre offers slot

machines and gaming tables,

plus the ability to host conferences

for up to 250 delegates.

The four-star Willow Lodge has

80 rooms. The Naledi Sun Hotel

and Casino is about 65km from

Bloemfontein.

Forever Resorts has a popular

resort with chalet accommodation

and a caravan park on

the banks of the Gariep Dam.

Overlooking the dam is the 43-

room de Stijl Gariep Hotel. Recent

expansions have increased capacity

at the hotel which can now

host weddings and conferences

of up to 250 delegates. The hotel

was the winner of the 2015 Lilizela

provincial Accommodation

Award.

FREE STATE BUSINESS 2017

58


OVERVIEW

Routes

Each of the province’s district

municipality has its own tourism

brand or route:

Cheetah Route (Mangaung

Metro and surrounds):

Bloemfontein has a host of historical

and cultural sites, including the

Naval Hill Precinct (home to the

Digital Planetarium), the Anglo-

Boer War Museum, the National

Museum (which has the Florisbad

skull), the Choet Visser Rugby

Museum, the SA Armour Museum

and the Fire Station Museum.

Nearby Thaba Nchu is where the

great statesman Moshoeshoe

held court in the second half of

the 19th century, and created a

nation against the odds.

Springbok Route (Xhariep

District): Travellers can start their

journey at a diamond mine, visit a

wine farm and finish on the top of the Xhariep Dam. Several Anglo-Boer

War battle sites and superb San rock engravings can be found dotted

around the district.

Flamingo Route (Lejweleputswa District): One of the biggest agricultural

expos in the world takes place at Bothaville. Phakisa race track

in Welkom attracts large crowds and it has so far hosted six World

Motorcycle Grand Prix events, providing a big boost to the regional

economy. Two small towns hold big interest: Winburg is the oldest

proclaimed town in the country (and home to a museum and a monument

to the Voortrekkers); Brandfort is where Winnie Mandela spent

several years in internal exile. The district has several game farms, game

reserves and resorts

Lion Route (Fezile Dabi District): The northern part of the province is

covered by this route, and includes the banks of the Vaal River which

provides its own natural tourist attraction (boating, yachting, camping,

etc). Parys is a popular destination and there is even a crocodile

farm in Deneysville. Cape wines can be tasted on two farms in the

Heilbron area near Sasolburg. The idea behind the Riemland Wine

Route is to bring Cape wine tasting closer to wine-lovers in northern

areas. The Vredefort Dome, site of a meteorite strike in the distant

past, is a World Heritage Site.

Eagle Route (Thabo Mofutsanyane District): Some of the most

spectacular scenery can be found in this north-eastern part of the

province, which encompasses the Golden Gate Highlands National

Park and Resort. Ficksburg has claims to be the world’s Cherry

Capital and nearby Clarens is very popular with weekenders looking

for art in a rustic village atmosphere (and a micro-brewery).

Bethlehem’s recent 150th anniversary saw the town host a Combined

Inter-Faith Service, a carnival, and flea market and a Gospel Festival.

Bethlehem hosts an annual Bethlehem Air Show and the Maize Fair

in October. Phuthaditjhaba is a good starting point for the Basotho

Cultural Village and access to the Vulture Restaurant and Witsieshoek

Mountain Resort.

CONTACT INFO

Dept of Economic, Small Business Development, Tourism &

Environmental Affairs

MEC: Mr. Benny Malakoane

Physical address: Bojanala Building, 34 Markgraaf Street,

Bloemfontein 9300

Postal address: Private Bag X20801, Bloemfontein 9300

Tel: 086 110 2185 | Fax: +27 51 400 9593

Website: www.edtea.fs.gov.za

59 FREE STATE BUSINESS 2017


OVERVIEW

Education and training

Access to education is growing fast in the Free State.

SECTOR INSIGHT

The Central University of

Technology has hosted

a national engineering

conference.

Basic education and training statistics show that access to

schooling and training has increased markedly in recent

years. Enrolment in Grade R (reception year) increased in 2015

to 704 000 at 663 public schools and 263 other community

sites in the Free State. A record number of 25 160 candidates registered

for the 2015 National Senior Certificate exams.

At the same time, high quality research is conducted at the University

of the Free State (UFS) and the Central University of Technology (CUT).

UFS caters for 17 500 students at two sites and a further 3 000 who

study by correspondence. Six faculties offer a full range of undergraduate

and postgraduate programmes such as those offered by the Centre

for Financial Planning Law.

Research is on the increase at UFS, with a record number of scholarly

books appearing in various disciplines. The new SANRAL chair in

Science, Mathematics and Technology education was launched in

Bloemfontein in 2014, five research chairs were awarded to UFS by

the South African Research Chairs

Initiative (SARChi) and in 2016 UFS

has 127 researchers rated by the

National Research Foundation.

A number of new buildings

have gone up or are being built on

the Bloemfontein campus. These

include a high-performance gymnasium

and new buildings for the

Education and Health faculties.

On the Qwaqwa campus, a new

Physics and Geography complex

has been constructed.

CUT has a main campus in

Bloemfontein and branches in

Welkom and Kimberley. There are

three faculties: Engineering and

Information and Communication

Technology, Health and

Environmental Sciences,

and Management Sciences.

Researchers at units such as

the Centre for Community,

Environmental and Industrial

Development tackle important

regional issues.

In September 2016, CUT cohosted

an electrical engineering

conference under the title

“Engineering for a better future”,

FREE STATE BUSINESS 2017

60


OVERVIEW

bringing together technicians,

technologists, engineers and

researchers in the sector.

The Department of Electrical,

Electronic and Computer

Engineering (which is part of the

CUT’s Faculty of Engineering and

Information Technology) partnered

with the South African

Institute of Electrical Engineers

(SAIEE), and Eskom, the national

utility, in hosting the conference,

which attracted 250 delegates.

A unit that supports manufacturing

at CUT is the Centre

for Rapid Prototyping and

Manufacturing (CRPM). It specialises

in Additive Manufacturing

(AM), also known as 3D printing.

CRPM works in the commercial

field as well as doing research

in Rapid Prototyping, Rapid

Manufacturing, Rapid Tooling and

Medical Product Development

technologies. Manufacturers can

make prototypes more easily (in

sand, metal or plastic) with the

support of the CRPM than would

otherwise the case if they had to

start from scratch.

UFS, CUT and the Free State

Provincial Government have

launched AHA Bokamoso: Joining

Minds for Skills Development. The

main thrust of this project is to foreground

skills development in information

technology (IT). Key points

are the establishment of a Regional

Innovation Centre on the main

campus in Bloemfontein (with an

IT Hub on the Welkom campus),

together with Saturday School (focussing

on mathematics and science)

and training programmes for

Department of Education officials.

A provincial bursary programme

is a collaboration

between the Provincial Government and the educational institutions.

An additional 400 students have the chance to study in Russia, Bulgaria,

Belarus, Turkey, Germany and Portugal.

Skills

A strong trend towards expanded practical training is being encouraged

by the national department of Higher Education and Training.

A national register of artisans is being mooted as well as an increase

in access to all sorts of trade-related learning opportunities. South

Africa currently produces about 13 000 every year; the aim is to increase

this to 30 000.

Provincial government departments have been awarded about

R316-million in support and bursaries for more then 5 000 students

across the province.

There is a National Student Financial Aid Scheme, which is under

pressure following a concentrated protest across South Africa against

high university fees. Bursaries are also available under the National

Skills Fund.

What for several years were known as Further Education and

Training Colleges (FET) have now been rebranded as Technical and

Vocational Education and Training (TVET) Colleges. The Free State

has just over 14 000 students at four TVET colleges, taught by 400

lecturers. The colleges have multiple sites. Maluti TVET College in

Phuthaditjhaba, for example, offers classes at seven sites. Flavius

Mareka TVET College has Kroonstad and Sasolburg venues. Motheo

TVET College operates in Bloemfontein and Thaba Nchu, while

Goldfields TVET College is in Welkom.

Technical schools are being upgraded by the provincial government,

with resources being allocated to the recapitalisation

programme.

Bursaries form an important part of the plan to help students attain

qualifications. In addition, a provincial internship programme gives

graduates a chance to work in provincial government departments

and municipalities. In 2016, the plan was to place 517 graduates in

the programme.

CONTACT INFO

Central University of Technology: www.cut.ac.za

Council of Higher Education: www.che.ac.za

Education Association of South Africa: www.easa.ac.za

Free State Department of Education: www.education.fs.gov.za

University of the Free State: www.ufs.ac.za

61 FREE STATE BUSINESS 2017


LISTING

Free State Provincial Government

A guide to Free State’s provincial government departments.

Visit: www.freestateonline.fs.gov.za

Office of the Premier

Premier: Mr Ace Magashule

Physical address: 4th Floor,

OR Tambo Building, Cnr St Andrew & Markgraaf

Streets, Bloemfontein 9300

Postal address: PO Box 517, Bloemfontein 9300

Tel: +27 51 405 5799 | Fax: +27 51 405 4803

Website: www.premier.fs.gov.za

Department of Agriculture and Rural

Development

MEC: Mr Motete Daniel Khoabane

Physical address: Main Building, Gielie Joubert

Street, Glen, Bloemfontein 9360

Postal address: Private Bag X01, Glen,

Bloemfontein, 9360

Tel: +27 51 861 8401

Fax: +27 51 861 8578 / 086 723 8206

Website: www.ard.fs.gov.za

Department of Cooperative Governance,

Traditional Affairs and Human

Settlements

MEC: Ms Sefora Sisi Ntombela

Physical address: 7th Floor, Lebohang Building,

Cnr St Andrew’s & Markgraaf Streets,

Bloemfontein 9301

Postal address: PO Box 211,

Bloemfontein 9300

Tel: +27 51 403 3224

Website: www.fscogtahs.gov.za

Department of Economic, Small

Business Development, Tourism and

Environmental Affairs

MEC: Mr Benny Malakoane

Physical address: Bojanala Building,

34 Markgraaf Street, Bloemfontein 9300

Postal address: Private Bag X20801,

Bloemfontein 9300

Tel: +27 51 400 9593

Fax: +27 51 400 2158

Website: www.edtea.fs.gov.za

Department of Education

MEC: Mr Pule Makgoe

Physical address: Free State Provincial Government

Building, 55 Elizabeth Street, Bloemfontein 9300

Postal address: Private Bag X20565,

Bloemfontein 9300

Tel: +27 51 404 8411

Fax: +27 51 404 8269

Website: www.education.fs.gov.za

Department of Health

MEC: Mr Butana Komphela

Physical address: Cnr Harvey & Charlotte Maxeke

Streets, Bloemfontein 9300

Postal address: PO Box 227,

Bloemfontein 9300

Tel: +27 51 408 1105

Fax: +27 51 408 1107

Website: www.fshealth.gov.za

FREE STATE BUSINESS 2017

62


LISTING

Department of Police, Roads

and Transport

MEC: Mr Sam Mashinini

Physical address: 4th Floor Perm Building, 45

Charlotte Maxeke Street, Bloemfontein 9301

Postal address: PO Box 119,

Bloemfontein 9300

Tel: +27 51 409 8849

Fax: +27 51 409 8864

Website: www.freetrans.gov.za

Department of Public Works and

Infrastructure

MEC: Ms Dora Kotzee

Physical address: Cnr Markgraaf and St Andrew’s

Streets, Bloemfontein 9301

Postal address: PO Box 7551,

Bloemfontein 9301

Tel: +27 51 405 4692

Fax: +27 51 405 4490

Website: www.publicworks.fs.gov.za

Department of Sports, Arts, Culture and

Recreation

MEC: Mrs NS Leeto

Physical address: 4th Floor, Business Partners

Building, Cnr Henry and Eastburger Streets,

Bloemfontein 9300

Postal address: Private Bag X20606,

Bloemfontein 9300

Tel: +27 51 410 4727

Fax: +27 51 410 4758

Website: www.sacr.fs.gov.za

Provincial Treasury

MEC: Ms Elzabe Rockman

Physical address:

55 Elizabeth Street, Fidel Castro Building,

Bloemfontein 9300

Postal address: Private Bag X20537,

Bloemfontein 9300

Tel: +27 51 403 3456 / 405 4229

Fax: +27 51 403 3244

Website: www.treasury.fs.gov.za

Department of Social Development

MEC: Ms Limakatso Particia Mahasa

Physical address: Civilia Building, 14 Elizabeth

Street, Bloemfontein 9300

Postal address: Private Bag X20616,

Bloemfontein 9300

Tel: +27 51 409 0619 | Fax: +27 51 409 0618

Website: www.socdev.fs.gov.za

Free State coat of arms

In the centre of the shield is the indigenous

Orange River Lily (Crinum

Bulbispernum.) The blue and green

shield symbolises the green grasslands

and the blue skies of the province.

The sandstone formations of the

Eastern Free State are represented

by the top of the yellow shape. The

shield is supported by two cheetahs.

The crown on top of the shield consists

of diamonds, mealie (maize) cobs

and ears of corn. These also bear witness

to the agricultural and mining

heritage of the province. The earth

of the Free State is portrayed by the

base of the coat of arms.

Motto “Prosperity through unity”

63 FREE STATE BUSINESS 2017


LISTING

Free State Local Government

A guide to metropolitan, district and local municipalities in the Free State Province.

Mangaung Metropolitan Municipality

Physical address: Bram Fischer Building, cnr Nelson Mandela and

Markgraaff streets, Bloemfontein 9301

Postal address: PO Box 3704, Bloemfontein 9300

Tel: +27 51 405 8494 | Fax: +27 51 405 8663

Website: www.mangaung.co.za

Fezile Dabi District Municipality

Physical address: John Vorster Road, Sasolburg 1947

Postal address: PO Box 10, Sasolburg 1947

Tel: +27 16 970 8615 | Fax: +27 16 970 8747

Website: www.feziledabi.gov.za

Local municipalities encompassed

Mafube Municipality

Tel: +27 58 813 1051 | Fax: +27 58 813 3072

Website: www.mafubemunicipality.gov.za

Metsimaholo Municipality

Tel: +27 16 973 8301 | Fax: +27 16 973 2191

Website: www.metsimaholo.gov.za

Moqhaka Municipality

Tel: +27 56 216 9111 | Fax: +27 56 216 9122

Website: www.moqhaka.gov.za

Ngwathe Municipality

Tel: +27 56 816 2700 | Fax: +27 56 817 6343

Website: www.ngwathe.fs.gov.za

Lejweleputswa District Municipality

Physical address: cnr Jan Hofmeyer and Tempest streets, Welkom 9460

Postal address: PO Box 2163, Welkom 9460

Tel: +27 57 353 3094 | Fax: +27 57 353 3382

Website: www.lejweleputswa.co.za

Local municipalities encompassed

Masilonyana Municipality

Tel: +27 57 733 0106 | Fax: +27 57 733 2217

Website: www.masilonyana.fs.gov.za

Matjhabeng Municipality

Tel: +27 57 391 3911 | Fax: +27 57 357 4393

Website: www.matjhabeng.co.za

Nala Municipality

Tel: +27 56 514 9200

Fax: +27 56 515 3922

Website: www.nala.fs.gov.za

Tokologo Municipality

Tel: +27 53 541 0014 | Fax: +27 53 541 0360

Website: www.tokologo.fs.gov.za

Tswelopele Municipality

Tel: +27 51 853 1111 | Fax: +27 51 853 1332

Website: www.tswelopele.fs.gov.za

Thabo Mofutsanyana District

Municipality

Physical address: Old Parliament Building, 1 Mamopi Street,

Phuthaditjhaba 9870

Postal address: Private Bag X810, Witsieshoek 9870

Tel: +27 58 718 1000 | Fax: +27 58 718 4090

Website: www.thabomofutsanyana.fs.gov.za

Local municipalities encompassed

Dihlabeng Municipality

Tel: +27 58 303 5732 | Fax: +27 58 303 4703

Website: www.dihlabeng.gov.za

Maluti-a-Phofung Municipality

Tel: +27 58 718 3700 | Fax: +27 58 718 3777

Website: www.map.fs.gov.za

FREE STATE BUSINESS 2017

64


LISTING

Mantsopa Municipality

Tel: +27 51 924 0654 | Fax: +27 51 924 0020

Website: www.mantsopa.fs.gov.za

Nketoana Municipality

Tel: +27 58 863 2811 | Fax: +27 58 863 2523

Website: www.nketoana.fs.gov.za

Phumelela Municipality

Tel: +27 58 913 8300 | Fax: +27 58 913 2317

Website: www.phumelela.psalm.co.za

Setsoto Municipality

Tel: +27 51 933 9300 | Fax: +27 51 933 9383

Website: www.setsoto.info

Xhariep District Municipality

Physical address: 20 Louw Street, Trompsburg 9913

Postal address: Private Bag X136, Trompsburg 9913

Tel: +27 51 713 9300

Fax: +27 51 713 0461

Website: www.xhariep.gov.za

Local municipalities encompassed

Kopanong Municipality

Tel: +27 51 713 9200

Fax: +27 51 713 0292

Website: www.kopanong.gov.za

Letsemeng Municipality

Tel: +27 53 205 9206

Fax: +27 53 205 0144

Website: www.letsemeng.gov.za

Mohokare Municipality

Tel: +27 51 673 9600

Fax: +27 51 673 1550

Website: www.mohokare.co.za

Naledi Municipality

Tel: +27 51 541 0012

Fax: +27 51 541 3181

Website: www.naledi.fs.gov.za

MUNICIPALITIES IN THE FREE STATE

North West

Gauteng

Metsimaholo

Fezile Dabi

Mafube

Mpumalanga

Ngwathe

Nala

Moqhaka

Nketoana

Phumelela

Tswelopele

Matjhabeng

Thabo Mofutsanyana

Northern Cape

Tokologo

Lejweleputswa

Setsoto

Dihlabeng

Maluti-a-Phofung

Mangaung

Masilonyana

Mantsopa

KwaZulu-

Natal

Letsemeng

Xhariep

Naledi

LESOTHO

N

Mohokare

Kopanong

Metropolitan/District

Municipality boundary

Local Municipality Boundary

District Municipality

Local Municipality

Xhariep

Naledi

Eastern Cape

65 FREE STATE BUSINESS 2017


PROFILE

Mangaung Chamber of

Commerce and Industry

The Chamber seeks to be the voice of business in the Free State and to assist in

promoting economic development and investment in the province.

The Mangaung Chamber of Commerce and Industry

(MCCI) was constituted in March 2004, following

unity negotiations among three former business

organisations – CBI/SBI (Bloemfontein Sakekamer),

the AHI and NAFCOC. In forming a new chamber of

commerce and industry, the unifying bodies agreed

to forego their independent identities.

Since unification, the MCCI has been campaigning

for recognition from the local and provincial

governments as the representative of the business

community in Bloemfontein as well as the Free State.

Objectives

The main objectives of the MCCI are:

• To relaunch the MCCI as a Free State-oriented

chamber.

• To incubate small chambers of business elsewhere

in the province.

• To give practical credibility to the term “local

economic development” – and this applies not

only to Mangaung, but other areas in the Free

State as well.

• To foster close relationships and twinning agreements

with other urban chambers in SA.

• To promote and support local businesses through

specific interventions like the “Member-support-

Member” campaign.

• To establish a vibrant business network that will

promote entrepreneurial enterprises and small

business as well as the creation of employment

opportunities.

• To present entrepreneurial programmes to

promote business innovation and to back this

up with arrangements for future coaching and

mentoring.

• To promote BEE by, among others, linking

big and small businesses through the chamber

network.

• To influence and monitor relevant authorities

and role-players.

• To promote the development of the Free State

and surrounds as a prime locality for investment.

• To promote the development of the city and

surrounds as a destination of choice for tourists.

• To become a strategic vehicle for the participation

of member businesses in social responsibility

programmes.

• To promote and support initiatives aimed at

renewable and alternative energy sources.

Benefits for members

• Innovative networking events and opportunities.

• Member-support-Member campaign.

• SMME development and support centre.

• Import and export support centre.

• Seminars, workshops and mentoring.

• Advertising.

• Lobbying municipalities, local and provincial

government.

• Exclusive benefits for Gold members.

CONTACT INFO

The Mangaung Chamber of Commerce

and Industry

Tel: +27 51 447 3368/9

Fax: +27 51 447 5064

Email: info@bcci.co.za

Website: www.mcci.co.za

FREE STATE BUSINESS 2017

66


Free State Development

Corporation (FDC)

Driving enterprise development and investment in South Africa’s

most central province, the Free State.

The FDC contributes to the Free State’s economic

development through four service delivery

pillars:

SMME/co-operative funding and support

The FDC provides products and services to SMMEs

and co-operatives in the form of financial support

(business loans) as well as business development

support (facilitating training and mentoring service

providers).

The principal loan products offered to Free State

entrepreneurs by the FDC are:

• Start-up loans for recently established businesses

that are mainly at formative stages.

• Expansion loans offering viable and existing

businesses the capital needed to expand.

Business take-over finance to assist potential

clients to acquire a business as a going concern.

• Bridging finance for SMMEs with short-term cashflow

problems with contracts or tenders.

Property management

The FDC administers a diverse property portfolio

and can offer small to medium enterprises suitable

premises at affordable rates. The corporation has

some 253 commercial properties, 290 industrial

properties and a large number of residential and

vacant land for development.

The corporation aims to use them to facilitate

commercial and industrial activity, while assisting

new investors looking for suitable premises.

The FDC offers advice and guidance in terms of

the following incentives:

• Subsidised rental rates.

• Rental holidays of up to three months.

• Special incentives and discounts for BEE

companies or individuals.

Export-related services

FDC services to exporters include the Export

Promotion Programme, which aims to grow

demand for Free State products in global markets

through capacity-building workshops, the

dissemination of trade leads, networking opportunities

with inbound trade missions, product

promotion through participation in outbound

group missions and on national and international

exhibitions, access to national export-incentive

programmes, market access information and

technical advice on exporting procedures.

Investor services

The FDC offers a range of services to investors and

businesses looking to trade in the Free State. These

include the following:

• Project appraisal and packaging.

• Promotion and facilitation of investment projects

and facilitation of access to finance.

• Providing access to business and government

networks and assistance with business retention

and expansion.

• Information on statutory requirements, investment

advice and assistance with investment

incentive applications and business permits.

• Assisting with the development of local and international

markets and facilitating joint ventures/

equity partnerships through identification of

local partners.

For additional information please contact

the Free State Development Corporation on +27 51 400 0800.

www.fdc.co.za


Driving

Economic Development

in the Free State Province

Enterprise

development

Property

management

Investment

facilitation

Export

promotion

Tel: 051 400 0800

Email: info@fdc.co.za | Web: www.fdc.co.za

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