Limpopo Business 2016-17 edition

christoffscholtz

The 2016/17 edition of Limpopo Business is the eighth issue of this highly successful publication that, since its launch in 2007, has established itself as the premier business and investment guide to the Limpopo province.
Limpopo is unique in terms of its abundant natural and human resources, and is also one of the key drivers behind the South African economy.
This edition of Limpopo Business is officially endorsed by the Office of the Premier of Limpopo.

LIMPOPO

BUSINESS

2016/17 EDITION

THE GUIDE TO BUSINESS AND INVESTMENT

IN LIMPOPO PROVINCE

JOIN US ONLINE

WWW.LIMPOPOBUSINESS.CO.ZA


Limpopo Economic

Development Agency

The Limpopo Economic Development Agency (LEDA) undertakes numerous activities

and programmes in order to strengthen the economic and business climate in Limpopo.

Vision

To be a leader in sustainable economic growth

and job creation.

Mission

To implement integrated economic development

initiatives in Limpopo, through:

• Accelerated industrial diversification

• Increased levels of trade and investment

• Developing sustainable enterprises

Strategic goals

• Accelerated industrial diversification through

strategic economic development initiatives

• Sustainable enterprises in targeted sectors of

the economy

• Increased trade and investment in Limpopo

• Public accountability, sound corporate governance

and sustainable resource utilisation

Core functions

LEDA’s role encompasses the following spheres:

Industrialisation

• Special Economic Zones (SEZ) and corridor

development

• Property and infrastructure

• Development (commercial, industrial),

agribusiness development

Enterprise Development and Finance

• Financial support

Business support

• Training and development

• Strong focus on cooperative development

and support

Trade and Investment Promotion

• Growth sectors

• Investment promotion (FDI and local)

• Export promotion and development

• Project facilitation and venture capital

LEDA has a number of subsidiary companies that

function as commercial entities. These are:

• Great North Transport

• Risima Housing Finance Corporation

• Corridor Mining Resources (plus nine of its

subsidiaries)

• Venteco and Mununzu tea estates/Mashashane

Hatchery

The agency’s associate companies include:

• OK Bazaars (Venda)

• Attaclav

• Bopedi Shopping Centre

• AON Limpopo

• Mokopane Mall

Head office:

Enterprise Development Finance House, Main Road, Lebowakgomo, Polokwane 0699

Tel: +27 15 633 4700 | Fax: +27 15 633 4854 | Website: www.lieda.co.za


Research and development

Industrialisation initiatives

Business support and finance

Trade and investment

Satellite offices

Fetakgomo: +27 15 622 8904 • Giyani: +27 15 812 1756 • Jane Furse: +27 13 265 1993 • Lephalale: +27 14 763 1799

Makhado: +27 15 516 5275 • Marble Hall: +27 13 261 1610 • Modimolle: +27 14 717 1239

Modjadiskloof: +27 15 309 3925 • Mokopane: +27 15 491 8582 • Molemole: +27 15 526 7900 • Musina: +27 15 534 2266

Mutale: +27 15 967 1902 • Phalaborwa: +27 15 781 0029/8

Senwabarwana: +27 15 505 9000/1 • Thabazimbi: +27 14 772 2437/73 • Thohoyandou: +27 15 962 6103

Tubatse: +27 13 231 7467


CONTENTS

CONTENTS

Limpopo Business 2016/17 Edition.

Introduction

Foreword 7

Limpopo Business is a unique guide to business, investment

and tourism in the province.

Welcome to our province, Limpopo 8

A message from the Premier of Limpopo, the Honourable

Chupu Stanley Mathabatha.

Geared for growth 10

Managing Director of LEDA, Benjam Mphahlele is keen

for businesses and investors to explore the strategic

advantages of Limpopo.

Special features

Regional overview of Limpopo Province 12

Limpopo is the national leader in exports of minerals and

agricultural produce, but industrialisation remains a key

priority for future growth.

The Limpopo Development Plan 18

The Provincial Government of Limpopo’s Development Plan

aims to carry through the spirit of South Africa’s development

plans on a provincial basis.

LIMPOPO BUSINESS 2016/17

4


No more queues.

UIF COMPLIANCE AT YOUR FINGER TIPS

The Unemployment Insurance Contributions Act 2002,

requires every employer to contribute 2% of the

remuneration in respect of each employee who works for

24 hours and more. The employer contributes 1% and the

employee contributes 1% and the total to UIF is 2%.

The employer is expected to provide the UIF with both the

declaration and the contribution amount on or before the

7th of each month in respect of each employee. It is the

responsibility of the employer to ensure that all employee

are registered with the UIF.

uFiling provides the following benefits

to employers and agents:

• Improved service delivery

• A secure and convenient online service

• Instant updates and access to uFiling data ; and

• Reduced data error.

The fund has leveraged on technological advances to improve

its operational systems to the benefit of its clients. The uFiling

system is an online application that is convenient and user

friendly that employers can use to declare and pay contributions.

To activate as a uFiler the employer must have a UIF reference

number.When opening the web page the user must logon to

www.ufilling.co.za/www.ufliling.gov.za then click on Activate

my ufiling account and select either domestic,commercial or

agent to complete the activation process. The system will guide

the user through the activation process. Once the activation

process is completed, the user will immediately receive an

e-mail notification confirming his or her login details.

NB: The uFiling system also allows employees to submit their

UIF claims online.

For more information about uFiling

Visit www.labour.gov.za or www.ufiling.gov.za

www.ufiling.co.za

Call centre number: 012 337 1680

Toll free number: 0800 843 843

The Unemployment Insurance Fund... Works for you!


CONTENTS

Priority projects in Limpopo 22

A range of high-impact projects that have the potential

to improve the Limpopo economy.

Limpopo’s Special Economic Zones 26

Two Special Economic Zones have been proposed

for Limpopo: the Tubatse Platinum SEZ

and the Musina SEZ.

Driving economic development 30

Three subsidiaries of the Limpopo Economic Development

Agency (LEDA) are driving economic development in

the province: Corridor Mining Resources, Risima Housing

Finance Corporation and Great North Transport.

Economic sectors

Agriculture 44

Limpopo’s avocadoes and macadamias are in big

demand throughout the northern hemisphere.

Mining 48

The Waterberg region is attracting mining companies.

Transport and logistics 52

Transport and logistics are vital to Limpopo’s export trade.

Renewable energy 58

Solar and bio-mass have the greatest potential in Limpopo.

Water 60

A Limpopo Water Master Plan will be tabled during 2016.

ICT and telecommunications 62

Connecting rural areas is a priority for Limpopo authorities.

Tourism 74

The Kruger National Park, which is partly situated in Limpopo,

is a favourite destination for domestic and foreign tourists.

LIMPOPO BUSINESS 2016/17

6


Seda Offerings

Seda branches provide offerings that assist businesses

in various phases of their life cycle.

Seda Business Talk –

Offerings focusing on clients who want information on starting a business

Assistance Provided:

Business Advice and Information

• Small Enterprise Training

Business Registration

Seda Business Start –

Provides tools and techniques for clients who are ready to start a business

and want assistance and direction.

Assistance Provided:

Business Planning

Business Counselling

• Facilitation of Access to Finance

Business Support

Seda Business Build –

Offerings focusing on clients who want skills to sustain and strengthen

their businesses.

Assistance Provided:

• Capacity Building Systems

• Mentorship

• Tender Advice / Procurement

• Export Readiness

• Franchising

Seda Business Grow –

Offerings focusing on clients who want to grow their businesses

and expand nationally and internationally.

Assistance provided:

Business Systems Development

• Cooperative Support

• Growth Strategies

For more information contact us at: 015 287 2940 or visit our website: www.seda.org.za

TOGETHER ADVANCING SMALL ENTERPRISE DEVELOPMENT


CONTENTS

Banking and financial services 76

Limpopo is a rural province and so the challenge of getting

formal banking services to the population are greater

than in most other provinces.

Development finance and SMME support 78

Mining supply chains can boost SMMEs in Limpopo.

Education and training 89

South Africa’s newest medical school opened in

Limpopo in 2016.

Government

South African Government 92

An overview of South Africa’s national government

departments.

Limpopo Provincial Government 95

A guide to the province’s government departments.

Limpopo Local Government 97

A guide to the district and local municipalities.

Reference

Sector contents 42

Index 104

Maps

Limpopo locator map 15

Limpopo regional map 96

Limpopo municipalities 100

0 50 km

Beitbridge ZIMBABWE

Limpopo

0 25 miles

Musina

Evangelina

Pafuri

Motorway Palapye

Main Road

Alldays

Tshipise

Railway

Oorwinning

Waterpoort

Tom Burke

Thohoyandou

Mahalapye

Louis

Limpopo

Trichardt

R81 Kruger

N11

N1

BOTSWANA

Senwabarana

National

Monte Christo

Steilloopbrug

Giyani Park

Morebeng

R81

Lephalale

Gilead

Modjadjiskloof

Groesbeek

Seshego

Tzaneen

Elmeston

Gravelotte Phalaborwa

Mokopane POLOKWANE

Sentrum Vaalwater

Zebedelia

Ofcolaco

R40

N1

Lebowa Kgomo

Thabazimbi

Mookgopong

Hoedspruit

Crecy

Klaserie

Modimolle

Bela-Bela

N11

Pilgrim’s Rest

Marble Hall

Graskop

North West

Lydenburg

Groblersdal

Sabie Hazyview

Sun City

Mpumalanga

Gauteng

Stoffberg

White River

N

MOZAMBIQUE

LIMPOPO BUSINESS 2016/17

8


CREDITS

Publisher: Chris Whales

Publishing director:

Robert Arendse

Editor: Simon Lewis

Writing: John Young, Karen

Kühlcke, Simon Lewis

Online editor: Christoff Scholtz

Art director: Brent Meder

Design: Colin Carter

Production: Lizel Olivier

Ad sales: Shiko Diala, Sam Oliver,

Gabriel Venter, Jeremy Petersen,

Nigel Williams, Veronica Dean-

Boshoff and Sydwell Adonis

Managing director: Clive During

Administration & accounts:

Charlene Steynberg and

Natalie Koopman

Distribution and circulation

manager: Edward MacDonald

Printing: FA Print

FOREWORD

Limpopo Business

A unique guide to business and investment

in Limpopo.

The 2016/17 edition of Limpopo Business is the eighth issue

of this highly successful publication that, since its launch

in 2007, has established itself as the premier business and

investment guide to the Limpopo province.

Limpopo is unique in terms of it abundant natural and human

resources, and is also one of the key drivers behind the South

African economy.

This edition of Limpopo Business is officially endorsed by the

Office of the Premier of Limpopo. To complement the extensive

local, national and international distribution of the print edition of

the magazine, the full content can also be viewed online at www.

limpopobusiness.co.za. Updated information on the Limpopo

economy is also available through our monthly e-newsletter,

which you can subscribe to online at www.gan.co.za, in addition

to our complementary business-to-business titles that cover all

nine provinces as well as our flagship South African Business title.

Chris Whales

Publisher, Global Africa Network Media

Email: chris@gan.co.za

DISTRIBUTION

Limpopo Business is distributed internationally on outgoing

and incoming trade missions, through trade and investment

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

partners around the world; at top national and international

events; through the offices of foreign representatives in South

Africa; as well as nationally and regionally via chambers of commerce,

tourism offices, trade and investment agencies, 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 1993-0119

COPYRIGHT | Limpopo 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: BEKA Schréder (Pty) Ltd, Grootgeluk Mine.

Pictures supplied by flickr.com, Anglo American, Wikimedia Commons,

Limpopo Economic Development Agency, CNDC Group, Mvula,

Foundation myclimate, Public Domain Images and Pixabay.

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

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

in Limpopo 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.

9 LIMPOPO BUSINESS 2016/17


MESSAGE

Welcome to our province, Limpopo

A message from the Premier of Limpopo, the Honourable Chupu Stanley Mathabatha.

Chupu Stanley Mathabatha,

Premier of Limpopo

It is my great pleasure to have

the opportunity of providing a

note of welcome for the 2016/17

edition of Limpopo Business to

all businesses, investors and

members of the public sector,

both locally and from around

the world.

It gives me extra joy to welcome

members of the business

community who are not familiar

with our province, as we have a

great deal to offer, particularly in

terms of agriculture, manufacture

and transport. Not for nothing is Limpopo known as the “gateway’”

province, as we share our border with three neighbouring countries -

Botswana, Zimbabwe and Mozambique – as well as being neighbours

to three South African provinces – Gauteng, Mpumalanga and the

North West.

Limpopo harbours beautiful and contrasting landscapes, making it a

favourite destination for leisure and adventure travellers worldwide. We

have remained a province that honours and respects our rich natural

heritage, in so doing preserving it for our future generations as well

as sharing it with national and international visitors alike.

The province is divided into five regions, notably Capricorn (occupied

by the Bapedi people), the Waterberg (occupied by the Batswana

people), Vhembe (occupied by the Vhavenda and VaTsonga people,

the latter residing in Mopani) and Sekhukhune, which is dominated

by the Bapedi and Ndebele people.

The warmth and welcome of the people of Limpopo has played

a major role in ensuring that our tourism sector has remained the

province’s strategic competitive economic advantage. Despite the

various economic challenges the country has been facing, the province’s

tourism industry has continued to flourish, with the sector

continuing to create jobs and employ more people. We are relishing

our number one spot in the domestic tourism market space. It has

been shown time and again that most South Africans enjoy visiting

our province, and that explains why we retain top billing in the tourism

rankings. The Limpopo Tourism Agency has also recently been

restructured to enable it to focus attention on giving our tourism

sector even greater promotion.

Our Limpopo Development Plan symbolises our dedication to the

improvement of our provincial economy. This plan is our contribution

to the nation’s development and it details how we as Limpopo

share the same vision and imperative regarding poverty reduction,

elimination of social inequality and the creation of sustainable jobs

in our province.

The plan has affirmed the role of SMMEs and cooperatives in the

productive sectors as a critical component towards radical economic

transformation. This is in an effort to make Limpopo an investment

centre for both national and international investors. During our trade

and investment mission to the People’s Republic of China in October

2014, we signed memorandums of agreement with big investors. The

first memorandum of agreement was signed with Hong Kong Mining

LIMPOPO BUSINESS 2016/17 10


MESSAGE

Exchange Company (Hoi Mor) for the establishment

of South Africa Energy Metallurgical Base Project.

This project whose investment value is estimated

at R38.8-billion, will be based in the Musina Special

Economic Zone, and will create 19 000 direct jobs

over a period of three years. The Hoi Mor investment

will result in beneficiation that integrates various

resources and reduces the export of raw materials

in favour of exporting value-added goods.

Along the same vein, South Africa’s Women’s

Investment Holdings has entered into a joint venture

agreement with Jidong Development Group

and the China Africa Development Fund for a R1.65-

billion investment into a cement-manufacturing

facility that will be based in Thabazimbi. The construction

started in 2014 and is due to be completed

during 2016. I have no doubt that these investments

will add value to our efforts of expanding the

productive capacity of our province.

Agriculture has also been a huge contributor

to the province’s economy and we have put deliberate

measures in place to entice investment in

the sector. We have also opened Madzivhandila

and Tompi Seleka Agricultural Colleges that

are now fully functional and operational. The

restructured curriculum content will assist in

developing agricultural economists, extension

officers, pasture and soil scientists, agronomists

and horticulturists.

Aside from arguably being one of the friendliest,

our province is also regarded as the safest

province within South Africa and, with that dual

offering, I urge you to come to visit us in Limpopo

so that you can take advantage of what we have

to offer. Whether you are a tourist, a businessperson

or an investor, Limpopo is a province that is

growing in opportunities and a joy to all those

who come.

11

LIMPOPO BUSINESS 2016/17


MESSAGE

Geared for growth

Managing Director of the Limpopo Economic Development Agency,

Benjamin Mphahlele, is keen for businesses and investors to

explore the strategic advantages of Limpopo Province.

It is my pleasure to welcome readers not only to the

2016/17 edition of the Limpopo Business publication

but to the entire province of Limpopo.

This strategically located province, with its vast

potential, has much to offer local businesspeople

and international investors. The Limpopo Economic

Development Agency (LEDA) is happy to be a first

port-of-call for those seeking information on opening

a business here or advice on identifying potential

partners within the province.

This is an exciting time for those interested in

exploring Limpopo as a potential business and

investment destination. Construction on the De

Hoop Dam has been completed and the first unit

of the Medupi power station is now in operation.

Furthermore, business is bustling at the massive

Mall of the North.

“LIMPOPO’S GEOGRAPHICAL

LOCATION MAKES IT AN IDEAL

HUB FOR THE MANUFACTURE

OR PRODUCTION OF GOODS

DESTINED FOR EXPORT

ELSEWHERE IN

SOUTHERN AFRICA.”

Benjamin Mphahlele

Perhaps most significant is the fact that

Cabinet has approved the designation of an area

in Musina-Makhado as a Special Economic Zone

(SEZ). A consortium of Chinese investors will be

ploughing more than R40-billion into the energy

and metallurgical industrial park and there will be

numerous opportunities for construction professionals,

manufacturing concerns and mineral beneficiation

businesses. Another SEZ is proposed for

Tubatse and we urge you to consider whether your

business might benefit from an operation in one

of these zones, both of which offer specific tax

incentives and advantages for qualifying investors.

The two SEZs speak directly our vision of a

province that doesn’t focus primarily on the

LIMPOPO BUSINESS 2016/17

12


MESSAGE

export of raw materials but contributes directly

to their beneficiation. The “double whammy” of

a decline in commodity prices coupled with severe

drought has underlined the urgency of this

objective.

Limpopo’s geographical location makes it an

ideal hub for the manufacture or production of

goods destined for export elsewhere in South

Africa or Southern Africa.

Opportunities in our traditional and established

sectors such as agriculture and tourism

have not been exhausted and we welcome enquiries

from entrepreneurs with fresh business

ideas relating to agro-processing or niche travel

experiences. Our province prides itself on offering

a range of cultural and natural/wildlife experiences

for both domestic and international visitors but

astute businesspeople are sure to recognise gaps

in the offering that could be positively exploited.

After some years of consolidation following

the amalgamation of four provincial agencies,

the team at LEDA is keen to promote the next

phase of economic development in the province.

The increasing percentage of goods undergoing

some form of value-add within Limpopo itself

keeps us motivated.

We invite readers to study the articles on the

SEZs elsewhere in this publication and to contact

us should they be interested in investigating the

feasibility of setting up an operation there. Those

unfamiliar with Limpopo will soon discover – within

the pages of this guide or, preferably, in person

–a province rich in bounty from the earth, people

and opportunity.

Website: www.lieda.co.za

13 LIMPOPO BUSINESS 2016/17


A REGIONAL OVERVIEW OF

LIMPOPO

PROVINCE

Limpopo

Limpopo is the national leader in exports of minerals and agricultural produce, but

industrialisation remains a key priority for future growth.

Limpopo covers about 10% of South Africa’s

land mass and is home to about 10% of the

country’s population (5.4-million). The main

languages of the people of Limpopo are Sesotho,

Xitsonga and Tshivenda, although English is

widely used in business and government. The province

shares international borders with Botswana, Zimbabwe

and Mozambique, and provincial boundaries

with the North West, Mpumalanga and Gauteng: the

last of these is extremely significant because proximity

to the country’s economic heartland offers

economic opportunity.

The provincial government has set a clear goal of

rapidly increasing the province’s contribution to the

national GDP from 7.5% in 2014 to 9%.

When it comes to exports, Limpopo punches

above its weight because of the abundance of mineral

wealth under the ground, and the superb fruit

and vegetables that the province’s farmers cultivate

in the soil. Potatoes are grown, together with 75%


SPECIAL FEATURE

South Africa’s mangoes and tomatoes; papayas (65%);

tea (36%); citrus, bananas and litchis (25%) and 60% of

the country’s avocadoes.

The best-performing subsector of South African

exports over the last five years is fruit and nuts according

to worldstopexports.com. In 2015 South African

exports of these items were valued at $2.9-billion,

3.6% of the country’s total. This represents a 27%

increase since 2011, and here Limpopo has a great record:

avocadoes, mangoes and macadamia nuts from

the province’s eastern regions are hugely popular

in international markets and Limpopo’s commercial

farmers are extremely efficient.

Limpopo is also a water-scarce province, however,

and there are many subsistence farmers in the

province. Under the system of apartheid, so-called

homelands were created and three of these were located

within the boundaries of what is today Limpopo

Province: the legacy of poverty that was part of the

homeland plan still exists. The Premier of Limpopo,

Chupu Stanley Mathabatha, referred directly to one of

the indicators of poverty in his State of the Nation address

in 2015: “We have also reduced the dependency

index from eight in 2006 to six in 2014. This means

that in our province, for every one person employed,

there are, on average, six people who depend on the

income of that person.”

While welcoming the improvement, the Premier

pledged to work to reduce it still further.

Mining is the other big sector – with agriculture

– in Limpopo. Limpopo has huge reserves of coal,

platinum, chromium, uranium clay, nickel, cobalt,

vanadium, limestone and tin.

Within Limpopo, approximately 400 prospecting

and mining licences have been granted for a wide

range of minerals. These include the largest diamond

mine in South Africa, the biggest copper mine in

South Africa, the biggest open-pit platinum mine

in the country and the biggest vermiculite mine in

the world. The province has 41% of South Africa’s

platinum group metals (PGMs), 90% of South Africa’s

red-granite resources and approximately 50% of the

country’s coal reserves. Antimony, a highly strategic

mineral found in large quantities in China, is another

of Limpopo’s major assets.

The provincial government of Limpopo is determined

to leverage the mineral sector to create more

industry in the province. To this end, five interventions

are planned for the medium- and long-term:

• A provincial supplier development programme

• A mining community development programme

• A post-mining-era skills development programme

• A provincial industrialisation programme

• A procurement programme that ensures that

mines buy 20% of their supplies from local small,

medium and micro enterprises (SMMEs) and

co-operatives

Another aim is to develop the manufacturing capacity

of the province. The goal is to create value within

the borders of Limpopo, and in this way to create

employment. Manufacturing in the province is centred

around mining areas (smelters and refineries),

agricultural estates (juices and concentrates) and in

Polokwane it is strong on food and beverages).

Agri-processing is strong, with Pioneer Foods,

McCain, Granor Passi, Kanhym, Westfalia and

Enterprise Foods prominent, but this sector still has

enormous potential to grow.

Strategic location

The Great North Road passes through Limpopo

from the south to the border town of Musina and

on to Zimbabwe and its neighbours in the Southern

African Development Community. The province’s

location lends itself to logistical operations and

most of South Africa’s operators have a presence

in the provincial capital city of Polokwane. Freight

logistics hubs have been established at Polokwane

and Musina.

Large national logistics company Value Group has

only four major regional depots outside Gauteng:

the fact that one of these is in Polokwane shows

the importance of Limpopo in the logistics chain in

South Africa.

Logistics giant Imperial Logistics Southern Africa

has 70 companies in its group structure, including

Kobus Minaar Transport, a concern that began in

Tzaneen transporting fruit and vegetables. Much of

the agricultural produce of the province has to be

delivered to ports in a hurry because of the delicate

nature of the fruit. Avocadoes are particularly easy to

bruise and so companies such as Freezerlines, Fast ‘n

LIMPOPO BUSINESS 2016/17

16


SPECIAL FEATURE

Fresh and Cold Chain have developed specialist techniques

in getting these fruits to port and to market

undamaged. Grindrod has a perishable cargo division

that specialises in transporting cargo by air.

Limpopo’s thriving mining industry is the other

major driver of the transport and logistics sector.

Polokwane has an international airport and there

are a further two regional airports at Hoedspruit and

Phalaborwa. The rail network is mostly devoted to

getting the products of the province’s many mines

to the coast.

Limpopo’s position as a regional hub also brings

its own set of challenges, with vast numbers of vehicles

passing through the province and using its

facilities in the course of delivering goods to all parts

of Southern Africa. New mining operations in the

Waterberg and at Burgersfort and the new power

station at Lephalale have put additional pressure on

existing road infrastructure.

Projects

Two of the largest engineering projects in the history

of South Africa have been undertaken in Limpopo

over the last few years. Both the Medupi power station

(at Lephalale in the far west) and the De Hoop

Dam (in the south-east) have the potential to give the

region’s economy a massive boost.

The power station at Medupi will eventually add

4 764 megawatts to the national grid and has already

given the local economy of Lephalale a massive boost

with thousands of workers and engineers needing

housing and supplies. There have, however, been

long delays and only one of the facility’s six units had

come online by the end of quarter one 2016.

The huge De Hoop Dam, which forms part of the

Olifants River Water Resources Development Project

(ORWRDP), is vital to the province’s future. Access to

water is one of the key elements in any discussion of

economic growth in Limpopo Province, especially as

the mining and agricultural sectors are so important.

In terms of the ORWRDP, some 23 platinum mines

stand to benefit. The dam was officially opened

in 2014.

Another project that could have a big spinoff

is the South African Energy Metallurgical Base

NAMIBIA

Project, which is being developed in the Musina

Special Economic Zone. The value of this investment

has been given by the provincial government as

R38.8-billion, and a memorandum of understanding

has been signed with Hong Kong Mining Exchange

Company Limited, Hoi Mor. Companies in the mineral

and mineral-beneficiation sectors are expected to

take up sites within the complex.

Plans for another Special Economic Zone (SEZ)

at Tubatse have received a positive result from the

feasibility study.

Tourism

Northern Cape

Western Cape

BOTSWANA

North West

Free State

Eastern Cape

Limpopo

ZIMBABWE

Mpumalanga

Gauteng

SWAZI-

LAND

LESOTHO

LIMPOPO

KwaZulu-

Natal

The combined land area of Limpopo’s national,

provincial and private game and nature reserves is

3.6-million hectares. According to the Premier’s office,

the tourism sector employs about 22 414 people.

Although most of the province’s resorts and lodges

are in private hands, three national parks are located

in Limpopo and the provincial government runs 54

nature reserves.

The Kruger National Park is one of the world’s most

famous conservation areas, and a major attraction for

the region. The northern part of Kruger National Park

falls within the province.

Several other public and private game reserves

also exist, as well as other leisure activities and attractions

such as adventure touring and eco- and

cultural-tourism sites. Hunting is another big activity in

Limpopo which attracts domestic and foreign visitors.

MOZAMBIQUE

17 LIMPOPO BUSINESS 2016/17


SPECIAL FEATURE

The Modjadji Cycad Reserve contains some of the

oldest and biggest cycad specimens in the world.

Limpopo has two World Heritage Sites: the

Mapungubwe National Park in the northern part of

the province is a hill site where a 12th-century ironage

civilisation settled and traded extensively in ivory,

iron ore, copper and beads with traders from far afield.

The Makapans Valley tells the story of the Ndebele

people and has fascinating palaeontological deposits

that tell an even older history.

Situated like many of the other golf estates near

the Great North Road (the N1 highway), Legend Golf

and Safari Resort is part of 22 000-hectare nature and

game conservancy and offers private homes, a hotel,

a wellness centre and a conference centre.

Regions

Limpopo has regions with distinct geographical features

and climatic conditions. The dry, cattle-rearing,

western areas contrast with the subtropical regions

of the east where forestry thrives and central regions

where vast plantations produce 60% of the country’s

tomatoes. The semi-arid regions to the north of the

Soutpansberg Mountains are home to the unique

baobab tree, the so-called upside-down tree because

it looks as though its roots are reaching skywards. The

Waterberg Mountains stretch over 14 500km² through

the northern reaches of the province.

Limpopo has five district municipalities:

Capricorn District

Capricorn is the economic centre of Limpopo, with

the provincial capital Polokwane contributing 13%

of the provincial GDP. The Zebediela Citrus Estate is

one of the biggest citrus estates in South Africa, and

the cultivation of potatoes and tomatoes is done on

a large scale in the district.

The capital city of Polokwane is the province’s

main centre for industry, commerce, education and

medical services.

The city is close to big concentrations of mineral

deposits and to fertile agricultural lands; its industries

reflect this diversity. Large industrial concerns such as

Silicon Smelters (one of the biggest of its kind in the

world) and a big brewery run alongside at least 600

industrial enterprises of a smaller scale. The range

is broad, thus helping to protect Polokwane from

downturns in the economic cycle: soft drink and fruit

juice manufacture; confectionery; bricks; clothing;

meat processing; packaging; jewellery.

The strong retail sector was strengthened even

more with the opening of the Mall of the North.

This major project cost approximately R1.2-billion to

complete. Covering more than 70 000 square metres,

the mall offers a more convenient alternative

to shoppers used to doing their monthly shopping

in Johannesburg.

Polokwane has good hotel and conferencing

facilities and is well situated as a starting point for

tourism trips into the province and beyond. Garden

Court Polokwane is an example of a hotel that forms

part of a national group, in this case, Tsogo Sun.

Nearby Moria attracts up to a million people

every year, when the Zion Christian Church

celebrates Easter.

Greater Sekhukhune District

Government is the largest employer in this southern

district, followed by agriculture and hunting. The

vast majority of households are rural (94%), with a

poverty rate of 69.9%.

Groblersdal is the district capital. The region’s

fertile lands produce maize, tobacco, peanuts, vegetables,

sunflower seeds and cotton on a large scale.

LIMPOPO BUSINESS 2016/17

18


SPECIAL FEATURE

Agriculture makes up 25% of the

local economy, with the value of

the region’s gross production estimated

at R250-million. Burgersfort

is an important town because of

platinum mining.

Mopani District

Giyani is the administrative capital

of the district and is key to the local

economy. The public sector is

one of the largest employers in the

district. The key sectors are agriculture

and mining. Mopani has

an established food manufacturing

industry in canned, preserved

and dried-fruit production and vegetable juices.

Phalaborwa is the gateway to the Kruger National

Park. It has a good airport and is a tourism hub.

Palaborwa Mining Company (Palamin) is the major

economic driving force in the area. State-owned

phosphate and phosphoric acid producer Foskor

is another major employer. Sasol Nitro Phalaborwa

produces phosphoric acid and deflourinated acid.

The Marula Festival is held in Phalaborwa in February

every year.

A subtropical climate and fertile soils combine to

make greater Tzaneen very productive in terms of fruit

and vegetables. Limpopo’s second-most populous

city has a population of 80 000. The Letaba Valley

produces a large proportion of South Africa’s mangos,

avocados and tomatoes.

Forty sawmills operate in the area, drawing on the

heavily forested hills around the city. One of the major

road links between Gauteng and the Kruger National

Park also passes through the area, providing excellent

links for tourism and business.

Vhembe District

The Vhembe District borders Zimbabwe and

Botswana. The district’s administrative capital is

Thohoyandou. Vhembe’s vast bushveld supports

commercial and game farming and the district has

considerable cultural and historical assets. The major

economic sector is agriculture, both in terms of

commercial and subsistence farming. Game farming

is a growing subsector, as is eco-tourism. De Beers’

Venetia Mine, situated just west of Musina, is South

Africa’s largest diamond producer.

Situated in the north-east of the province, fairly

close to the Punda Maria Gate of the Kruger National

Park, Thohoyandou is the administrative centre of

Thulamela Local Municipality, Vhembe District

Municipality and the University of Venda.

The Tshivhase tea estates are not far from the

town and a new project is cultivating exotic trees

and ornamental shrubs. The town is on the Ivory

Route and hosts the Venda Cultural Museum. Other

attractions include an ancient baobab tree, the Dzata

Ruins, the Museum of the Drum, the mystical Lake

Fundudzi and Nwanedi Provincial Park.

Waterberg District

The mining sector is the largest contributor to regional

GDP, while agriculture is also significant. Several towns

in the district are located in the mineral-rich Bushveld

Igneous Complex.

The district also features the riches of the Waterberg

Coal Fields, iron ore (at Thabazimbi) and tin and platinum

at Mookgophong. The town of Lephalale is at

the heart of the region’s coal-mining and powergeneration

sectors.

The area around Mokopane is one of the richest

agricultural zones in South Africa, producing wheat,

tobacco, cotton, beef, maize and peanuts. The bubbling

hot springs of Bela-Bela market it as a popular

tourism destination, and the district offers many luxury

golf estates.

19 LIMPOPO BUSINESS 2016/17


The Limpopo Development Plan

The Provincial Government of Limpopo’s Development Plan aims to carry through

the spirit of South Africa’s development plans on a provincial basis.

In these difficult economic times, hope is what

people cling to, and the South African government’s

National Development Plan (NDP) has provided

a source of great possibility and hope for

South African businesses as well as its citizens. Each

of South Africa’s provinces have since adopted and

planned their own strategies, taking the NDP as their

guide and tailoring it for their own specific needs.

The Limpopo Development Plan (LDP) has been

designed to address the economic poverty and infrastructural

issues that are currently being faced in

Limpopo. The province has endeavoured to ensure

that the plan is a reflection of their shared vision and

strategic imperatives towards poverty reduction,

and the elimination of social inequality in addition

to the creation of sustainable jobs in the province.

The LDP cuts across three areas that need extensive

improvement, notably socio-economic, infrastructural

and institutional development. These

areas are essential to Limpopo, being a mainly

rural province.

The economic strategy required entails concentrating

on the mining, agricultural and tourism

sectors. The industrialisation of Limpopo is going

to be concentrated around (but not limited to)

Polokwane, Lephalale, Tubatse, Tzaneen and the

Makhado-Musina corridor, which have been identified

as the areas of priority in terms of integrated

human settlements and economic development

The entire strategy outline is, therefore, designed

on the floorplan of the 14 development

outcomes contained in the National Medium-Term

Strategic Framework for 2015-2019. Development

is defined as broad-based improvements in the

standard and quality of life for the people living

throughout the province, to which all institutions

(including government, business, labour and citizens)

contribute. Increasing the annual improvements

in job-creation production, income, access

to good public services and environmental management

are the instruments or means to reach

the goals of this development plan.

LIMPOPO BUSINESS 2016/17

20


SPECIAL FEATURE

This vision statement encapsulates the expectation

that, by 2030, Limpopo will have a public

service that meets the best standards of governance,

citizens that are educated, skilled, healthy and

self-reliant, and that there is a labour force that is

fully productive and gainfully employed, with an

infrastructure that is capable of promoting and sustaining

an innovative local and regional economy

for the benefit of all the province’s diversified communities

in a responsible and sustainable manner.

The LDP also acknowledges that a critical condition

for job creation is improved levels of education

and skills development, and human resource development

has therefore been identified as one of the

key priorities. The aim is to reduce the unemployment

rate to 14% (down from 16.9% in 2016). Education is

seen as an opportunity for the future generations to

enjoy access to economic mobility and success. The

LDP aims to achieve this by improving the educational

quality in order to be globally competitive and to provide

high-quality early childhood education by 2030.

During the 2015 State of the Province Address

(SOPA), Premier Mathabatha announced that the

LDP would underpin 10 High Level Development

Targets to be attained by 2020. These targets are:

• The achievement of an economic growth rate

of 3% revised in the light of the current performance

of the global economy

• The creation of 429 000 jobs

• Increased access to basic water from 83% in

2014 to 90%

• Increased access to electricity supply from 83%

in 2014 to 90%

• Increased access to sanitation from 43% in

2014 to 50%

• Increased Matric Pass Rate from 72% in 2014

to at least 80%

• Increased Geographic Gross Product contribution

to the national GDP from 7.15% in 2014

to 9%

• Reduction of the unemployment rate from 16.9%

in 2014 to 14%

21 LIMPOPO BUSINESS 2016/17


SPECIAL FEATURE

• Increased average life-expectancy from 58.3

in males in 2014 to 60, and 62.5 in females in

2014 to 65

• Reduction of inequality in terms of Gini coefficient

from 0.61 in 2014 to 0.50

The 10 targets of the LDP are what Limpopo will

concentrate on in order to improve the state of the

province. Each department in the province has been

given tasks in order to fulfill the LDP’s objectives.

Department of Education

The slogan of the Department of Education in

Limpopo is that “education is a precondition for

development”. This slogan captures the spirit of

the LDP and emphasises the context and role of

education in the provincial strategy. With the largest

budget share, the Department of Education

is faced with some of the greatest challenges in

the province. Significant financial backing is not

enough without the greater commitment and

change of the management approach from all

members. Making creativity, innovation and choice

their imperative, the aim is to be able to produce

skills that are needed for industrial clusters and to

serve as feeders for TVET colleges. The key targets

for education are:

• Expanding access to ECD programmes

• Provision of access to training and education

• Improvement of grade 12 results

• Use an improved ANA for holding schools and

districts accountable

Department of Health

The 2030 Vision of the LDP for the Millennium

Development Goals (MDGs) is to create a health

system that works for everyone, produces positive

health outcomes, and is not out-of-reach. The

outcomes expected are:

• Average male and female life expectancy

increased to 70 years

• Tuberculosis prevention and cure rates progressively

improved

• Maternal and child-mortality rates reduced

• Prevalence of chronic non-communicable

diseases reduced by 28%

• Health systems reforms completed

• Primary health care teams deployed to provide

care to families and communities

• Universal health coverage achieved

• Posts filled with skilled, committed and

competent personnel

The LDP also identifies the social determinants of

health of individuals or communities. This covers

factors such as where people live, the state of the

environment, genetics, income, education levels and

social support networks.

Department of Social Development

The LDP targets for social services are that all potential

beneficiaries who qualify for social grants should

receive them, that all legitimate non-profit organisations

for social development should receive government

support and that social development committees

should be established in all wards throughout

Limpopo. Indicators for social grants are the number

of potential beneficiaries compared to the number of

actual beneficiaries, and the source of this information

is SASSA. The Limpopo Department of Social

Development will create a database on non-profit

organisations for social development and the support

that they are given. The number of functional

social development ward committees compared to

the number of wards in each municipality will indicate

the extent to which the third target is achieved.

Department of Agriculture

For the next five years the Department has called

for a vibrant, equitable, sustainable rural community

contributing towards food security for all. They

intend to increase the percentage of productive

land owned by previously disadvantaged individuals

from 11.5% in 2013 to 20% by 2019. This would

also help ensure that, by 2019, 7.2-million hectares

of land will have been transferred to previously

disadvantaged individuals and is also being used

productively. Other goals include reducing the

percentage of households vulnerable to hunger

(from 11.5% in 2011 to less than 9.5% by 2019) and

leading to the reduction of rural unemployment

in Limpopo to less than 40% by 2019.

LIMPOPO BUSINESS 2016/17

22


Department of Public Works, Roads

and Infrastructure

The Department’s primary focus is to facilitate the

provision of economic infrastructure in support of

the selected development cluster value chains, as

well as the community infrastructure required to

provide household services. Several support agencies

(ie municipalities and private businesses) need

to be engaged in this process. Other major responsibilities

include the building of internal professional

capacity and the maintenance of existing infrastructure

(and assets).

Department of Transport

The Department is planning to increase the subsidy

rates of those operators who are still operating on

very low rates, introducing additional trips on current

subsidised routes where there is an increased

demand for bus services, and to introduce an electronic

bus monitoring system over the five-year period.

With regard to transport regulation, the target

is to decrease fatal road crashes by 2% per year over

the MTSF period as well as to reduce traffic offences

on public roads. The number and professional conduct

of traffic officers will have to be improved for

this purpose. An Accident Statistical Analysis Module

will also be implemented.

Department of Sport, Arts

and Culture

The Department wants to ensure that, through the

LDP, Limpopo is able to have a diverse, socially cohesive

society that enjoys a common national identity.

They have already starting holding inclusive social

cohesion summits in Limpopo, highlighting key issues.

The province aims to raise the competitiveness

of all contestants from Limpopo in national and international

sport, arts and cultural events. They also want

to create sports, arts and culture sub-communities in

every ward of every municipality in Limpopo.

SPECIAL FEATURE

Department of Safety and Security

The aim is to establish and maintain effective

Community Police Forums in every municipality in

Limpopo. This is intended to help with the reduction

of crime incidence across the spectrum of crime

categories, as reported in the crime statistics of the

National SAPS Department. The LDP will also put in

place information systems to report on the progress

with regard to the local community police forums.

Provincial Treasury

The Provincial Treasury is responsible for general risk

mitigation relating to the LDP, primarily through the

Provincial Risk Office, but also in collaboration with the

risk managers of other departments. The compilation

and management of a Provincial Risk Profile is urgently

needed. Treasury is also responsible for the Financial Risk

Mitigation Strategy, including the provincial value-formoney

expenditure review. This review should be aimed

at maximising the development impact of the provincial

budget in terms of quality-of-life improvements and job

creation for all citizens.

Through the Limpopo Development Plan,

Limpopo intends to revive itself from just being a

rural province, and it has made sure that everything

it does according to this plan benefits the provincial

people and the nation as a whole.

CONTACT INFO

Contact person: Phuti Seloba

Physical address: 40 Hans Van Rensburg

Street, Polokwane 0699

Tel: +27 15 287 6000

Email: Selobap@premier.limpopo.gov.za

Website: www.limpopo.gov.za

23 LIMPOPO BUSINESS 2016/17


SPECIAL FEATURE

Priority projects in Limpopo

A range of high-impact projects in the province have the potential to substantially improve

the Limpopo economy.

A

number of important projects are under

way in Limpopo or have recently been approved.

Together, they have the potential to

significantly increase the economic output

of the province and to create a large number of jobs.

Projects range from a huge power-generation

plant in the west to a mega-dam in the east. In

the north, a Special Economic Zone (SEZ) aims to

kick-start a range of economic investments and

throughout the province there are programmes

aimed at improving services to communities and

making co-operatives economically sustainable.

LIMPOPO BUSINESS 2016/17

24


SPECIAL FEATURE

Special Economic Zones

In July 2016 the national cabinet approved the

Musina-Makhado Special Economic Zone (SEZ).

Located in the far north of Limpopo in the Vhembe

region, Musina is strategically located near the border

of Zimbabwe and on the Great North Road,

which links South Africa to the broader southern

African region.

Special Economic Zones are created in terms of

the Special Economic Zones Act of 2014 (Act 16

of 2014). The act defines an SEZ as “geographically

designated areas of the country that are set aside for

specifically targeted economic activities and supported

through special arrangements and systems

that are often different from those that apply to the

rest of the country”. Lower corporate tax rates and

duty-free imports are among the advantages that

accrue to investors.

Infrastructure at an SEZ supports the specific

industry and attracts foreign investors with a strong

focus on beneficiation of local produce or materials.

Skills transfer is another stated aim behind the SEZ

programme.

The location of the Musina SEZ, with links to

Zimbabwe, Botswana and Mozambique, promotes

the Trans-Limpopo Spatial Development Initiative.

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

Other sectors that will be concentrated on include

agri-processing, energy and mineral beneficiation.

De Beers’ giant Venetia diamond mine is nearby.

The company’s most recent life-of-mine expansion

project, worth about R30-billion, will result in the

mine producing until 2046.

The national Department of Trade and Industry

(dti) is the lead agent in SEZ creation, which in turn

feeds into the national Industrial Policy Action Plan

(IPAP). SEZs are designed to attract investment,

create jobs and boost exports.

Soon after the announcement of the designation

of the SEZ, the dti said that a consortium of Chinese

investors, Sino, has agreed to put R40-billion into

the Musina SEZ where they will operate the mineral

beneficiation operations.

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

The dti estimates that the completed SEZ could

create more than 20 000 jobs.

A second application for an SEZ at Tubatse is

pending. Tubatse is in the Sekhukhune District

Municipality and hosts a number of mining operations.

The SEZ in Tubatse will focus on the beneficiation

of platinum group metals and mining-related

manufacturing. The province of Bashkortostan in

Russia has also expressed an interest in the SEZs

of Limpopo. More details on the SEZs follows on

pages 26-31.

Infrastructure

In August 2016, Unit 6 of the Medupi power station

came on stream. The Medupi power station project

is one of the biggest engineering projects under-

25 LIMPOPO BUSINESS 2016/17


SPECIAL FEATURE

taken in South Africa. When complete, it will provide

an additional 4 764 megawatts, which will massively

enhance the country’s generation capacity. Medupi

is located in Lephalale in the far west of Limpopo,

and next to an existing power station where coal is

abundant. Unit 5 is expected to come on stream in

the first half of 2017.

The De Hoop Dam across the Steelpoort River

in the east of Limpopo has started supplying water

to rural communities who previously had to walk

to rivers to fetch water. These communities in the

Waterberg, Capricorn and Sekhukhune districts are

beneficiaries of a vast project that will also deliver

water to towns and mining operations in the area.

More than a million people will get water from the

dam, which cost approximately R3.4-billion to build

and has a capacity of 347 600 000m³. In terms of the

broader scheme under which the De Hoop Dam

falls, some 23 platinum mines stand to benefit.

Water and sanitation

In order to come up with a coordinated strategy in a

time of drought, the Provincial Government of Limpopo

convened a Provincial Water and Sanitation Summit in

2015. A technical team from the national Department of

Public Works is assisting the provincial entity in providing

clean water in the Sekhukhune District Municipality,

Polokwane City and Mogalakwena Local Municipality.

These are seen as priority projects in response to the

drought and to ensure that the economies of these

municipalities can thrive.

A vital project for schools is the Accelerated School

Infrastructure Programme (ASIDI),

which is run by the Mvula Trust

on behalf of the national departments

of Basic Education and Water

and Sanitation and the Limpopo

Department of Education.

The Mvula Trust arose out of

an initiative of the Independent

Development Trust and the Kagiso

Trust, and is the NGO responsible

for rolling out various water and

sanitation programmes for national

government.

The programme reached a total of 115 schools

in all five of the province’s district municipalities:

Capricorn District Municipality: (20 schools); Mopani

(23 schools); Sekhukhune (46 schools); Vhembe (23

schools); Waterberg (three schools). The governing

bodies of all the schools were consulted, 17 contractors

were hired to do the work, and various professionals

such as a geohydrologist and occupational

health and safety consultants were employed to roll

out the project.

New water supplies were created for 64 schools

and 37 got new sanitation facilities. A total of 661

temporary jobs were created in the process of drilling

boreholes, excavating, laying pipes and cables,

installing tanks and building new structures. A

health and hygiene educational component was

also included in the programme.

Community and co-operatives

Makotse is a small village in the Capricorn District

about 40km from the provincial capital of Polokwane.

Many people in the areas are unemployed but the

Makotse Women’s Club is making a difference

through a range of projects that are not only serving

the community but providing income. The club

has won several awards, including one awarded

by the Independent Development Trust and the

Department of Health and Social Development for

exemplary management (of the Makotse Bakery). An

off-shoot of the bakery business provides catering

services from a menu that includes mealie-meal

(bogobe), samp, chicken (kgogo) and beetroot.

LIMPOPO BUSINESS 2016/17

26


SPECIAL FEATURE

The Independent Development Trust delivers social

infrastructure and manages social development programmes

for the state.

The Bakone Gardening Project (of the Makotse

Women’s Club) provides vegetables such as onions,

spinach and beetroot to local schools, a Drop-In

Centre and a Day-Care Centre. Hydroponics have

been a feature of the garden since the Department

of Agriculture, the US Embassy and the Peace Corps

combined to help install a system designed to

improve efficiency.

The National Youth Development Agency (NYDA)

has an agreement with the Limpopo Department of

Agriculture to promote and create co-operatives in

the province. A number of these co-operatives have

been launched since the partnership was founded.

In Thohoyandou the Marula Co-operative uses

the extract from the Marula plant to make beauty

products such as lotions and soaps and cooking

oil. This co-operative is a collaboration between

members of six smaller groups.

A similar alliance led to the establishment of

the Nwanedi Co-operative in the far north of the

province, east of Musina. The group received close

to R500 000 from the NYDA to help them rent a

tractor, to meet the costs of running the farm, but

mostly to assist with transport of the butternuts

they were producing to market. For small farmers,

access to market is a huge challenge and the support

of the NYDA will not be the end of the process:

the Department of Agriculture will help them pool

their resources at market. The department will also

assist with further training.

27 LIMPOPO BUSINESS 2016/17


FOCUS

Limpopo’s Special

Economic Zones

Two Special Economic Zones have been proposed for Limpopo Province.

The Limpopo Department of Economic Development, Environment

& Tourism (LEDET) and its agency LEDA are facilitating the establishment

of the two Special Economic Zones (SEZs), one in Steelpoort

(the Tubatse Platinum SEZ) and the other in Musina (the Musina SEZ),

following the acceptance of proposals from Limpopo by the national

Department of Trade and Industry (the dti).

A Special Economic Zone (SEZ) is a geographic area of a country

or region designated for targeted (strategic) economic activities,

which are supported through special measures. It is one of the

key instruments for industrialisation as articulated in the Industrial

Policy Action Plan (IPAP), National Growth Path (NGP) and National

Development Plan (NDP).

Overview and purpose of the SEZs

The SEZs have been established to:

• Increase foreign and domestic investment in the two districts

(Greater Sekhukhune and Vhembe districts)

• Increase exports of value-added manufactured goods from the

region

• Build the required industrial

infrastructure in both Greater

Tubatse Municipality and

Musina Municipality

• Ensure employment creation,

technology transfer and skills

development

• Ensure the spread of industrial

development regionally and

the promotion of industrial

agglomeration in the region

• Ensure the creation of economic

linkages through supplier

development

• Promote coordinated

planning among key

government agencies

SEZ incentives

• Section 12R qualifying companies

will be subjected to a

reduced CIT tax rate of 15%

• Taxpayers achieving SEZ status

will retain the status for 10

years

• Section 12S qualifying companies

within the SEZs will get

extra accelerated allowances

on buildings and improvements

to buildings

• Companies employing salaried

employees earning (below

R6 000 per month) will be

given a wage incentives

• Special customs and VAT

incentives

LIMPOPO BUSINESS 2016/17

28


FOCUS

Other allowances

• Industrial policy investment

projects

• Depreciation allowance

• Capital allowance on

machinery and plant (manufacturing

allowance)

• Learnership allowance

• Research and development

allowances: 150%

• Small business turnover tax –

for businesses with turnover

less than R1-million

• Small business corporation less

than R20-million turnover

• Accelerated depreciation

allowance – all year one

• Improved tax rates – on graduated

basis

• Energy-saving incentives

• Municipal rates rebates

Legislative framework

for SEZs

The SEZs are established in terms

of the SEZ Act of 2014. The Act

provides for:

• The Minister to determine

policy for the designation,

promotion, development,

operation and management

of Special Economic Zones

• The SEZ Act provides for the establishment of an Advisory Board to

advise the Minister of Trade and Industry on the following:

• Designation of SEZs

• Financing and support measures

• SEZ Fund – applications and approvals

• Support measures

• Implementation protocols

Roles and responsibilities

of the SEZs

The implementation of SEZs requires cordial relations between national

departments, provincial and local government based on mutual

respect between spheres of government and state agencies.

The national departments that have a role in the SEZs are:

• the dti: responsible for policy on the establishment and operation

of SEZs

• National Treasury: approval of funding and special waivers for foreign

investors (capital movement and investments)

• Mineral Resources: custodian of Mineral Beneficiation policy

• Energy: implementation of different energy mix and technologies

• Home Affairs: approval of work permits for foreign workers in SA

• Science and Technology: support for technology transfer

• Higher Education: custodian of skills development policy

In the province, the key departments are: Treasury and Enterprise

Development, Cooperative Governance, Roads and Transport

National agencies include: SARS, Transnet, Eskom and the Industrial

Development Corporation (IDC)

Municipalities include: Greater Sekhukhune District Municipality and

Greater Tubatse Municipality

29 LIMPOPO BUSINESS 2016/17


PROFILE

Musina Special

Economic Zone

A multi-site SEZ has been designated for Vhembe District.

Project location

The Musina SEZ will be located in multi-sites found

in two municipalities, namely Musina and Makhado

in the Vhembe District of Limpopo Province.

N

Pont Drift Musina

Beit Bridge

Madimbo

Musina Local Municipality is located in the northern

part of the Vhembe District Municipality. The

municipality is strategically placed between South

Africa and Zimbabwe and therefore also linked to

other SADC countries, such as Zambia, Mozambique,

Tanzania, Malawi and Kenya.

Musina Municipality is connected to the Kruger

National Park in the east, Gauteng to the south and

Botswana to the west. It is linked to the major centres

in South Africa via the N1 route to Pretoria and

Johannesburg.

Cities/towns

Roads

Provincial Boundaries

Local Municipality Boundary

District Municipality Boundary

Musina SEZ

The Zimbabwe link is one of the busiest roads in

Africa. This position and economic importance provides

various opportunities to be explored by the SEZ.

Location advantages

• Close proximity to mineral resources required

for the production of steel and petrochemicals

• Proximity to the border between SA and

Zimbabwe that results in good access to the

SADC market and cross-border trade activity

• Ideal location on the main north-south N1 corridor,

which enables strong logistics drivers in support

of the envisaged logistics cluster

• High possibility for intermodal facilities involving

road and rail, including transfer of cargo from

road to rail

• Agriculture support industries, including fertiliser

plants based on the proximity to Foskor in

Phalaborwa

LIMPOPO BUSINESS 2016/17

30


PROFILE

• International logistics companies already use the

Cape to Cairo route

Musina SEZ opportunities

The initial set-up of the SEZ involves the establishment

of the metallurgical cluster zone, a dry

port zone to handle various logistics activities

and linking up with sea ports in the country and

neighbouring countries, with a potential of adding

a petrochemical cluster zone in the future.

The following opportunities have

been identified to attract

investments:

Light and medium industries

• Vehicle export preparation and distribution centre

• Import and export goods consolidation centre

• Warehouses including cold-storage facilities

• lntermodal facilities including container-handling

facility

• Medium- and heavy-duty vehicle service centre

• Vehicle SKD assembly workshop

• Electronic, chemical and other manufacturing

and assembly opportunities

Heavy industries

• Coking plant

• Thermal power plant

• Ferrochrome plant

• Ferrosilicon plant

• Pig-iron metallurgy plant

• Steel plant

• Stainless-steel plant

• Lime plant

• Envisaged Musina Container Terminal (dry port

operation)

Petrochemical zone

• Coke coal plant and power generation

• Coal-to-liquids plant

• Methanol plant

• Synthetic bitumen plant

• Small solar plant

• Plasma waste gasification plant

• Water treatment plant

CONTACT INFO

Limpopo Economic Development Agency

(LEDA)

Address: 29 Market Street, Polokwane,

Limpopo

Contact: Richard Zitha (Project Executive)

Tel: +27 15 295 5120

Cell: +27 71 391 8188

Email: richard.zitha@lieda.co.za

Website: www.lieda.co.za

31 LIMPOPO BUSINESS 2016/17


PROFILE

Tubatse Platinum Special

Economic Zone

A niche SEZ has been planned for a site close to Steelpoort.

Project location

The Tubatse Platinum SEZ will be located on the

farm Spitskop 333KT, measuring 2 677ha, in close

proximity to the town of Steelpoort and 25km out

of Burgersfort in the Greater Tubatse Municipality

(Greater Sekhukhune District). This will be the main

hub for the SEZ.

The first phase would be developed on a site measuring

280ha and would consist of the following:

• Mining input suppliers’ park

• Light manufacturing

• Heavy manufacturing

• Logistics

• Solar energy cluster

• PGM downstream beneficiation cluster

Tubatse Platinum SEZ opportunities

The Tubatse Platinum SEZ will focus largely on PGMs,

chrome, magnetite, vanadium beneficiation and the

development of mining inputs supply.

The following has been identified as presenting viable

opportunities that need to be pursued:

• Mining input supply

• Capital goods (yellow metal assembly and maintenance

and processing plants)

• Disposables

The following value chain is envisaged from

beneficiation:

• Catalytic converters (main opportunity for the

Tubatse Platinum SEZ)

• Hydrogen fuel cells

N

Moroke

Madiseng

Leboeng

Tubatse

Burgersfort

Ohringstad

Steelpoort

Greater Tubatse

• Chrome beneficiation to ferrochrome

• Chemotherapeutic agents

• Green energy (solar energy cluster)

• Turbine blades

• Magnetite to pig iron to steel

• Magnetite to vanadium pentoxide

• Waste to titanium

• Logistics

Investment opportunities

and clusters

Cities/towns

Roads

Provincial Boundaries

Local Municipality Boundary

District Municipality Boundary

PGM downstream-beneficiation value chain cluster:

• Platinum jewellery manufacturing

• Catalytic converters

LIMPOPO BUSINESS 2016/17

32


PROFILE

• Hydrogen fuel cell

manufacturing

Mining inputs supply park:

• Heavy equipment assembly

plant

Green energy:

• PV modules assembly plant

• Solar energy plant

CONTACT INFO

Limpopo Economic

Development Agency

(LEDA)

Address: 9 Market Street,

Polokwane, Limpopo

Contact: Bunjiwe Gwebu

(Project Executive)

Tel: +27 15 295 5120

Cell: +27 76 521 5077

Email: bunjiwe.gwebu@

lieda.co.za

Website: www.lieda.co.za

33 LIMPOPO BUSINESS 2016/17


PROFILE

Corridor Mining Resources

The company focuses on the economic development of Limpopo

Province through direct and indirect investment in mining.

Corridor Mining Resources (Soc) Ltd (CMR) is a

wholly owned subsidiary of the Limpopo Economic

Development Agency (LEDA). Its primary responsibility

is the execution of the resources development

strategy of LEDA, through investment in mining

opportunities and the empowerment of communities.

CMR has various projects in different stages of

development, some at an initial stage and some full

mining operations.

Purpose and mandate

The purpose of CMR is to promote economic development

in the province, directly or indirectly

through mining, by:

• Optimising the development of mineral resources

• Driving economic growth

• Facilitating opportunities for job creation

• Promoting sustainable empowerment in mining

Business model

• All projects are executed through a “Special

Purpose Vehicle (SPV)” company.

• The SPV is formed by bringing together CMR

with host communities and strategic partners

including black economic empowerment (BEE)

partners.

• Exploration and feasibility studies are mainly

outsourced.

• Mining operations are managed by a third

party (eg a mining contractor) under a Mining

Management Agreement.

• Cashflow is realised through annual declaration

of dividends.

• Host communities benefit from the mines

through shareholding, business opportunities

and jobs in the mining operations.

Portfolio

CMR boasts a diverse commodity portfolio that includes

but is not limited to platinum group metals,

chrome and gold. The table opposite indicates the

mining investments and minerals in CMR’s portfolio

and their location.

CONTACT INFO

Head ofice: 29 Market Street, Polokwane,

Limpopo, South Africa

Tel: +27 15 295 5120

LIMPOPO BUSINESS 2016/17

34


MINING

INVESTMENTS

Sefateng Chrome Mine

Fumani Greenstone

Tshepong Chrome Mine

Khumong Chrome Mine

Autumn Star Trading

Mokopane Kodumela

Rock Island

ASA Metals*

VanMag

MINERAL

Chrome

Gold

Chrome

Chrome

PGMs

PGMs

Gold

Ferrochrome

Vanadium and

Magnetite

LOCATION

PROFILE

85km SE of Polokwane on the R37 road (next to

Jibeng, Ga-Phasha and Ga-Mampa Villages). Farms:

Zwartkoppies 413KS and Waterkop 113KT

115km east of Makhado and 2km west of Kruger National

Park (next to Mtititi Village). Farms: Alten 221 LT and

Plange 222 LT

135km SE of Polokwane and 30km west of Burgersfort

via R37 road (next to Ga-Selala and Ga-Maroga Villages).

Farm: Twyfelaar 119 KT

125km east of Polokwane on the R37 road, 19km NW of

Steelpoort and 24km from Burgersfort (next to Modikwa

Platinum Mine). Farm: Portion 5 of Maandagshoek

125km east of Polokwane (next to ASA Metals). Farms:

Mineral Areas 3 and 4 of Maandagshoek 254KT and portion

of portion 1 of Mooihoek 255KT

30km north of Mokopane in the Mogalakwena Magisterial

District (next to Mapela and Backenberg Villages).

Farms: Inhambane 802 LR, Molendraai 811 LR,

Commandandodrift 228 KR and Gezond 235 KR

Around Giyani (next to Hlaneki, Mabunda and Homu

Villages). Mineral areas: Klein Letaba - 15km northwest

of Giyani, Horseshoe – west of Giyani and south of Klein

Letaba River, Birthday – 5km east of Giyani and north

of the Klein Letaba River and Louis Moore – 8km north

of Giyani

125km east of Polokwane (next to Ga-Maroga Village).

Farm: Maandagshoek 254KT farm

30km north of Mokopane in the Mogalakwena

Magisterial District. Farms: Inhambane 802 LR, Portion

2 of the farm Mozambique 807 LR, Molendraai 811 LR,

Commandandodrift 228 KR and Gezond 235 KR

Attaclay*

Bentonite and

Attapulgate Farm Maandagshoek (next to Maandagshoek Villages).

(Catlitter)

Mahube Tameng* PGMs

In the Capricorn District between 60km and 70km ESE

of Mokopane. Farm: M’Phatlele 457KS

Inca Mine

Limestone

In Mokopane Municipality (next to Zebediela). Farms

Brakfontein (Portion 7 and 8 of farm No 152) and Malgas

(Portion 2 of farm No 154)

mining investments and minerals in CMR’s portfolio and their location.

* THE SHARES ARE HELD BY LEDA AND CMR MANAGES THE OPERATIONAL ASPECTS OF THE INVESTMENTS

35 LIMPOPO BUSINESS 2016/17


PROFILE

Risima Housing Finance

Corporation

The corporation exists to improve access to housing for the citizens of Limpopo Province.

The Risima Housing Finance Corporation (Pty) Ltd is

a subsidiary company of LEDA, which is charged with

the responsibility of providing housing finance and

related services that enable the people of Limpopo

to acquire decent homes.

The organisation was established in 2000. Its core

focus is providing access to home loan finance and

property development finance for the residents of

the province. Its current strategic plan includes an

intention to investigate possible partnerships in the

development of property and rental stock in the

proposed Special Economic Zones in the Greater

Tubatse and the Musina local municipalities.

Product portfolio (finance categories):

• Residential building construction – allows

clients to build a house of their choice

• Purchasing of existing residential houses –

clients buy existing houses, either from owners,

developers or through estate agencies

• Purchasing of sites – enables clients to purchase

vacant land with a view to build in the near future

LIMPOPO BUSINESS 2016/17

36


PROFILE

and Title Deed, to purchase or build residential

properties.

Financial performance

The most recent financials for Risima indicate

that:

• In the last financial year, the company recorded

a total income of R37-million with a profit of

R22.5-million against the targeted budget of

R12.3-million.

• The total loan book grew from R298.2-million to

million loan impairment excluded. Despite the

funding constraints, there was a positive variance

of R26.6-million.

• Total assets recorded for the year are currently

R336.7-million.

• Extensions and renovations – clients are assisted

with financing for home improvements

• Switch bonds – entails taking over a bond from

another financial institution

• Installation of solar-water-heating systems –

assists existing clients who want to switch to

energy efficient systems

• Additional loans – clients who have equity on

their properties can apply for additional loans

• Access bond – available to clients who pay more

than the required instalment on their home loans

Official classification

The company is classified under schedule 3D of

the Public Finance Management Act as a provincial

government business enterprise that deals with

home-loan finance to the end-users who are permanently

employed citizens of the Republic of

South Africa, resident in Limpopo’s rural and urban

areas and where property ownership is evidenced

by the Permission to Occupy or Deed of Grant

Risima stakeholder engagement

The Department of Public Service and Administration

established the Government Employees Housing

Scheme (GEHS) to assist government employees

with access to home-loan finance and Risima was

selected as one of the implementing agents of the

scheme.

Risima is also appointed by COGHSTA to implement

and administer the Financial Linked Individual

Subsidy Programme (FLISP) in the province.

CONTACT INFO

Lebowakgomo (head office)

Tel: +27 15 633 4732 or +27 15 633 4700

Polokwane (regional office)

Tel: +27 15 295 5120

Ritavi (regional office)

Tel: +27 15 303 1731

Thohoyandou (regional office)

Tel: +27 15 962 4900

37 LIMPOPO BUSINESS 2016/17


PROFILE

Great North Transport

Operating in all of Limpopo’s municipal districts, bus company

Great North Transport provides public passenger transport services.

About Great North Transport

Great North Transport (GNT) is a premier bus passenger

transport company in Limpopo that provides

public passenger transport services within Limpopo

and parts of Mpumalanga. It focuses on scheduled

commuter transport, private hiring, scholar and employee

transport, as well as inter-town and crossborder

services.

The company has a fleet of 540 buses operating

on 280 routes, with 10 cross-border permits. GNT

employs 1241 staff members. It has 11 depots

(Seshego, Mokopane, Motetema, Marble Hall,

Burgersfort, Tzaneen, Makhado, Giyani, Phalaborwa,

Hoedspruit and Bushbuckridge) in six district municipalities:

Vhembe, Mopani, Sekhukhune, Waterberg,

Capricorn and Ehlanzeni (Mpumalanga Province).

A wholly-owned subsidiary of LEDA (Limpopo

Economic Development Agency), GNT has been

in existence for more than 43 years and its core

mandate is to provide reliable, safe, convenient and

comfortable public transport passenger services

to the public. GNT was one of the first companies

to successfully operate negotiated contracts in

South Africa.

LIMPOPO BUSINESS 2016/17

38


PROFILE

Operations

GNT operates 228 buses under

negotiated contracts and

238 buses on interim contract

arrangements with the provincial

departments of Roads

and Transport of Limpopo and

Mpumalanga provinces. There

are also 67 buses that operate

without any contract arrangements,

from the provincial Roads

and Transport Department

(Bapedi and Phalaborwa

depots).

Business model

Great North Transport (Soc) Ltd

is a state-owned company, wholly owned by the

Limpopo Economic Development Agency (LEDA)

and established in terms of schedule 3D of the

Public Finance Management Act 1 of 1999 (PFMA)

as amended.

In terms of this listing, Great North Transport (GNT)

is a profit-driven subsidiary of LEDA. It operates

according to business principles and practices.

GNT sources its business partly from government,

through a competitive open-market-tendering

system, and from the private sector.

The (Soc) Ltd listing of GNT warrants that any provision

of the Companies Act that applies to a private

company also applies to state-owned companies,

including those provisions defining fiduciary and

due care duties and responsibilities of directors of

a company.

To this end, GNT operates under the supervision

of an independent Board of Directors whose nonexecutive

members are appointed by the shareholder

(LEDA). GNT strives at all times to comply

with the principles contained in the King Code on

Corporate Governance in South Africa (2009), the

King III Report.

Secrets to success

Key attributes leading to Great North Transport’s

success include:

• Customer loyalty

• Reliable service

• A dependable and modernised fleet

• Staff commitment

• Effective maintenance

• Sound financial partnerships

We believe that with the support of the Board and

committed staff, and the continued modernisation

of the fleet and depots, performance will improve

and lead to continued sustainability of the

company.

CONTACT INFO

Physical address: Bonitas Building, 22 Hans

van Rensburg Street, Polokwane 0700

Tel: +27 15 291 2641

Fax: +27 15 291 2648

Email: marketing@gntpassenger.co.za

Website: www.gntpassenger.co.za

39 LIMPOPO BUSINESS 2016/17


FOCUS

A full range of

business solutions

Relevant financial and advisory services are offered to

clients throughout Limpopo.

Managing a business entails a range of challenges. As a business

grows, different problems and opportunities demand

specific solutions – what worked in the past might not be

the best approach now.

Nedbank Business Banking’s team in Limpopo offers a full range of

financial and advisory services to businesses in and around the province.

The bank’s expertise, combined with a deeper understanding

of the local economy, allows us to provide you with relevant, timeous

solutions that can make taking your business to the next level happen.

Advantages of banking with Nedbank

A single point of contact

A relationship manager, located in your region and supported by a

team of specialists, is dedicated to servicing your business and managing

your banking needs, whether your business is just starting or

established and growing.

Industry-tailored solutions

Specialist industries require specialist solutions. Nedbank has designed

solutions that address the specific needs of the franchising, agricultural

and government and public sector. Speak to our team of specialists

with first-hand knowledge and experience in these industries.

Transactional banking

Nedbank Business Banking fully understands the importance of transactional

banking requirements as the core of any business operation.

Our transactional banking solutions integrate seamlessly into your

business processes.

Nedbank Business is a highly secure, world-class internet-based

electronic banking system that will transform your business. Imagine

your day-to-day banking, only 100% more efficient. Our incredibly versatile

and easy-to-use structure will prove infinitely more functional and

will improve the practicality of your company’s banking enormously:

Loderick Lubisi, Nedbank’s

Regional Business Head in

Limpopo and Mpumalanga

• First bank to use token

technology

• Segregation of duties and

account permissions

• Accurate transaction referencing

on all channels

• Multiple statement formats

• Free statement downloads

• Free five-year history online

• Free online cheque and

deposit slip images

For more information about

our specialised service offering

please contact Loderick

Lubisi, Nedbank’s Regional

Business Head in Limpopo and

Mpumalanga, at loderickl@

nedbank.co.za

LIMPOPO BUSINESS 2016/17

40


Making banking accessible

to all and supporting

small business

Branch of the Future comes to Turfloop.

FOCUS

Nedbank prides itself in making things happen and is committed

to making banking accessible to all in South Africa.

As a bank, Nedbank repositioned its strategy to become

a bank for all – and we continue to grow our footprint in

communities where we were previously not represented. We have

recently launched our new “Branch of the Future” in Turfloop in April.

This is a client-centred branch engineered to provide a distinct client

experience enabled through state of the art technology. Innovative

features deployed in our new branches include video banking facilities,

state-of-the-art cash-depositing ATMs, queue management that

reduces waiting times, as well as internet banking facilities.

From a small business perspective, Nedbank is a bank for entrepreneurs.

We recognise the challenges of unemployment facing the

country, and we have an extensive list of interventions to support small

business as they are key in creating jobs, and boosting our economy.

Providing solutions for entrepreneurs

Nedbank has built a solid foundation and reputation as a bank for small

businesses through national initiatives like:

• Small Business Seminars — are held biannually and are free. The

seminars provide practical advice and solutions on basic financial

planning, cash flow management etc.

• SimplyBiz — is an electronic platform which is free and used for

networking and sharing of best practices for business owners in

same industries. Check out the portal SimplyBiz.co.za

• Nedbank sponsors and partners with external stakeholders, like,

Raizcorp, who are holding workshops for entrepreneurs wishing

to obtain advice on how to pitch their business ideas effectively.

Nedbank also caters for business owners, households, young

professionals and professional banking.

Maki Mahlaba, Regional

Manager Retail Relationship

Banking

For more information about

our Small Business Services and

Professional Banking call Maki

Mahlaba +27 010 235 3007 or

send an email to margaretma@

nedbank.co.za

41

LIMPOPO BUSINESS 2016/17


INTERVIEW

MASISIZANE FUND

Boosting local business

BUILDING SUSTAINABLE

BUSINESSES THROUGH

SUCCESSFUL PARTNERSHIPS

The Masisizane Fund invests in SMMEs that have a

registered business, in addition to a clear marketable

product or service, and that create and retain jobs.

What opportunities does Limpopo offer?

There are vast opportunities in the province for SMMEs, as trading long in grain as and dairy prod

focused on development of value

they keep their ears and eyes on the ground and take the opportunities

as they become available. There are areas in the partnerships province with Omnia, Gra

mechanization, storage and micro

without malls, therefore this creates opportunities for mall

Association

development

and municipalities, th

and franchising. Companies such as Broll, Twin City

their planting significantly in 2014

Maphala Mosomane

channeled

and the

towards Grain Co as

Moolman Group are expanding their property portfolio, within rural

The Masisizane Fund (NPC), is an initiative towns of and Old this Mutual further South creates Africa, employment, established business opportunities Masisizane opera

in 2007 following the closure of the Unclaimed and uplifts Shares Trust. the local This was economies. done in consultation

nationally with it

with the National Treasury of South Africa. The mandate of the Fund at inception was

Agro-processing and manufacturing are other business sectors Gauteng and r

and remains to contribute meaningfully to employment creation, poverty eradication

with growth opportunities. We have an abundance of rain offices in the in KwaZu

and reduction of inequality, economic growth and the attraction of investment. This is

province and we’ve got good soil conditions, so agriculture Limpopo, offers Eastern

done mainly through promotion of entrepreneurship, enterprise finance and support to

many opportunities. For example Limpopo produces less than 10%

small,

BIOGRAPHY

micro and medium enterprises (SMME’s).

Western Cape.

of its maize consumption and if we go back to the basics we can

The process to follow when apply

Maphala Mosomane is the reclaim our position as the bread basket of South Africa. from the Masisizane Fund is:

The Fund provides loan finance in the following sectors:

Provincial Manager: Limpopo

Submit the following documents fo

• Agriculture

& Mpumulanga of the Old Mutual

Masisizane Fund. Maphala There are parts of the province with high concentrated sun projections; heat

What is the potential in terms of solar energy? relevant provincial office:

• Manufacturing

• Comprehensive business plan

• Supply Chain

• Franchising

started his career at Ga-Segonyana

and we should look at exploiting such opportunities and • linkages For established businesses –

• Commercial Enterprise

Municipality working as a to Eskom to provide solar energy. Areas like Phalaborwa, Giyani,

three years) and the latest man

Non-financial value adding services include capacity

• For start-up businesses – financ

Local Economic Development Vhenda, Moletjie and Matlala can play a catalystic role in the provision

financial of solar education, energy. market development and product/

• Off take agreements and/or l

development, business management and technical support,

• Tax clearance certificate;

Officer before joining ABSA

Bank as an Enterprise Development

service quality standards and compliance. A Business

• Signed consent for a credit ch

Consultant. From there he

moved to Standard Bank as an

Acquisition Manager. In 2013,

Maphala joined the Masisizane

Fund as Provincial Manager

of Limpopo and Mpumalanga

What are the hallmarks of a successful SMME?

It’s important for entrepreneurs to be committed and focused, but

managing your cashflow is essential, otherwise you will get into

serious difficulties. It’s also important to continuously develop your

product range and to keep on marketing your business. If you get

that right you will make money and have a successful business.

Provinces. He has a Bachelor

of Commerce in Economics degree

in addition to a Certificate

in Project Management.

Are there any clients you are particularly proud to have

helped?

Every funding proposal presented to us and approved gives me

The target market is enterprises that are 51% or more owned

by the previously disadvantaged individual(s) giving priority

to rural and peri-urban/township areas. Masisizane funding

is biased towards 51% plus owned women, youth and

people with disabilities. Masisizane will target productive

and labour absorbing sectors as approved by the Board of

Directors from time to time.

The Fund’s success is driven through a focused approach on

high impact industry sectors, coupled with a comprehensive

SMME finance solution that includes business support.

Acceleration Program has been e

clients receive training and suppo

eligible to receive financial suppo

The growth of the Masisizane Fu

inception. Although the initial foc

the fund has gradually grown to b

fund with the vision of being able

as a sustainable entity and thereb

for many years to come. The fu

R1b and it plans to invest R420

SMME’s by the end of 2017.

The development of agri-clusters

Masisizane Fund’s approach in

entail the clustering of small sca

the farmers benefit from economi

on value chain financing, agro-p

partnerships.

In 2013 the Fund initiated a p

Harry Gwala municipalities co

LIMPOPO BUSINESS 2016/17

42


INTERVIEW

great joy, as we would have made a meaningful

contribution to entrepreneurship, employment

and have made an impact on the economy.

Having said that, I’m happy for all my clients and

happy to have facilitated change in their lives.

What is the ideal SMME company or cooperative

you would hope to be able to

help over the next year?

I want to leverage the agricultural clusters that

are currently doing well in the province. There is

a cluster of maize growers doing around 2 000

hectares of maize, and my plan in 2016 is to get

them to 5000 hectares and assist them to become

commercial.

For the 2016 and 2017 financial year I would like

to help clients to develop a franchise group within

the province and assist PDIs to gain ownership

with the franchising space.

There’s a lot of groundwork that needs to be

done, you need to make sure that you’ve done

your research and you are informed by the facts.

Access to finance is much easier when you have

thought it all through and based your numbers

on facts. You need to have your ducks in a row if

you want to take it to the next level.

CONTACT INFO

Limpopo & Mpumulanga

Physical address: 5th Floor, Old Mutual

Building, 70 Hans van Rensburg Street,

Polokwane

Tel: +27 15 287 4279

Website: www.masisizane.co.za

43 LIMPOPO BUSINESS 2016/17


LIMPOPO BUSINESS 2016/17

44


KEY SECTORS

Overview of the main economic

sectors of Limpopo.

Agriculture 44

Mining 48

Transport and logistics 52

Renewable energy 58

Water 60

ICT and telecommunications 62

Tourism 74

Banking and financial services 78

Development finance

and SMME support 80

Education and training 89

45 LIMPOPO BUSINESS 2016/17


OVERVIEW

Agriculture

Limpopo’s avocadoes and macadamias are in big demand

throughout the northern hemisphere.

Some of South Africa’s biggest agricultural businesses are located

in Limpopo, with the province’s fruit and vegetables

forming a significant portion of the nation’s export offering.

This is particularly the case with regard to avocadoes,

mangoes, tomatoes and macadamia nuts, the last of which is a rapidly

expanding subsector.

About 1 000 new hectares are being planted every year, according

to the Southern African Macadamia Growers’ Association

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

macadamias.

The Kruger National Park was the venue for the 7th International

Macadamia Symposium in August 2015, an indicator of Limpopo’s

status. Production of nut-in-shell was nearly 5% up in 2015, at

46 950 tons. About 45% of the previous year’s crop was exported,

mostly to the USA and Europe. Growing conditions are ideal in the

Levubu and Tzaneen districts. Neighbouring Mpumalanga is the

other big macadamia province.

There are about 450 farmers growing the nuts, but this includes

several large farms, some of which have integrated operations in

which the farms supply their own cracking factories. There are 14

cracking factories in South Africa.

The sector employs about 4 500 people, of which 1 500 are

permanent employees.

The macadamia nut has high protein, calcium and potassium

content. Macadamia oil is popular and has a high Omega7 content.

Ground macadamias can be used as a healthy substitute for flour.

Location

Limpopo’s location gives it a strategic advantage in terms of providing

fresh produce to Gauteng, the densely urbanised economic

centre of South Africa.

Cattle and game ranching occur in the higher and drier areas of

the province, while the lower-lying regions are rich in fruit, tea, citrus

and vegetables. One of the best known products of the region is

Amarula cream liqueur.

SECTOR INSIGHT

Investment in citrus is paying

off.

• Two recently reopened

agricultural colleges have

increased enrolment.

• The Mooketsi Market’s

strategic position is

boosting trade in farm

produce.

Limpopo hosted an international

macadamia

symposium in 2015.

• Fish for Iran may be a jobbooster.

Within Limpopo, the Mooketsi

Market has used its very central

position to boost trade in farming

produce. Although the town

itself is quite small, the market’s

location north-east of Polokwane

and north of Tzaneen, with access

to the northern reaches of

the province via the R36 and R81

roads, has proved a winner since

it opened in 2014. The market is

owned by ZZ2, FGX (which facilitates

transactions between buyers

and sellers) and the RSA Group

(which holds 30% representative

market share of the fresh produce

market in South Africa).

The Limpopo growers from

the Vhembe District in the far

north and the Letaba Valley in

LIMPOPO BUSINESS 2016/17

46


OVERVIEW

the eastern Mopani District contribute

45% of the produce sold

at Johannesburg Fresh Produce

Market, Africa’s biggest market.

They are also major contributors

to the Johannesburg Fresh

Produce Market.

ZZ2 farms a collection of tomotoes,

onions, avocadoes, apples,

pears and cattle. It is the major

brand of Bertie van Zyl (Pty)

Ltd, and a world leader in tomato

production, producing 160 000

tons of tomatoes per year. The

company’s product range appears

under 12 different brand

names. ZZ2 owns large farms in

four areas of Limpopo Province:

Mooketsi, Politsi, Polokwane and

Musina; it also operates in the

Western and Eastern Cape. The

company provides employment

to 8 000 people.

Westfalia, part of the Hans

Merensky Group, is the world’s

largest avocado grower. It also

produces significant quantities

of mango, litchi, citrus and

macadamia and has three agriprocessing

plants in the province.

Avocado oil is produced

in Modjajiskloof near Tzaneen

on the farm Westfalia estate,

juice and guacamole (avocado

purée) is processed in Politsi, also

near Tzaneen, and mangoes are

dried and packed at the factory

in Hoedspruit. Westfalia is the

leading mango supplier in Africa.

In Limpopo, estate farms

include Westfalia (Tzaneen),

Macnoon (Modjadjiskloof),

Agrivet (Morebeng) and

Goedgelegen (Mooketsi

Valley). Organic avocadoes are

also farmed in KwaZulu-Natal

Province.

The Westfalia Nursery produces more than 100 000 avocado trees

every year. Westfalia Technological Services is the research division of

Westfalia Fruit , promoting development of new cultivars and superior

avocado rootstocks

Relatively new entries into commercial farming are former cooperatives,

and they have proved very successful. The two most active

in Limpopo are NTKLA (with its headquarters in Modimolle) and Afgri,

South Africa’s biggest agricultural company, which has its headquarters

in Centurion (Gauteng).

NTKLA is a shareholder in Venda Roller Mills in Thohoyandou and

operates 10 grain silos, 23 retail outlets, 28 flour depots and one coldstorage

facility.

Crops

The Levubu Valley in the north is particularly fertile with guavas and

macadamia nuts among the crops that thrive there.

Valley Farms is a successful enterprise that grows fruits such as mangoes

and guavas, and produces concentrates, purées and dried fruits.

Afgri’s soya plant at Mokopane (Nedan) has increased annual production

to 195 000 tons of soya beans and 60 000 tonnes of sunflower,

the result of a capital injection of R180-million in 2011.

Greenway Farms supplies about 45% of the fresh-market carrots

consumed in Southern Africa under the Rugani brand. A R6-million

carrot combine-harvester is the only one of its kind in South Africa.

The revival of the Tshivhase Tea Estate has not only given South

Africans a truly local tea, it has also boosted employment in Limpopo.

A number of brands have been developed, including Midi Gold which

is the premium blend of the estate. Like the other teas, it is processed

locally at the Mukumbani Tea Factory.

Letaba Citrus Processors is a part of the African Realty Trust, which

also owns two large farms: Letaba Estates and Richmond Estates.

The Rhodes Food Group has a canned vegetable facility near

Louis Trichardt.

Cotton is grown at Loskop, North and South Flats, Wiepe and

Dwaalboom/Thabazimbi. There are 2 855 hectares under irrigation

and a further 326 hectares of dry land operations. Limpopo provides

about 32% of the national harvest.

Citrus

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

eastern part of Limpopo. Soft and time-sensitive fruits, like avocados,

are exported out of the Port of Cape Town and transported to that city

by truck. Citrus is taken to the ports of Durban or Maputo.

47 LIMPOPO BUSINESS 2016/17


OVERVIEW

The Industrial Development Corporation (IDC) is getting behind

citrus farming in Limpopo. Falling under the IDC’s Agro-Industries

Strategic Business Unit, a funding agreement has been signed with

Naranja Packers that will see new farms established, established farms

converted to different cultivars and the packing house expanded. The

brands Clemengold and Sweet C are marketed under Indigo Fruit

Farming, which is wholly owned by ANB Investments. The packing

house in Burgersfort processes up to 600 large crates of fruit a day in

season, with each crate containing about 350kg of fruit – or slightly

more than 2 000 tons.

Despite concerns about trade from within the EU about the socalled

“black spot” on some fruit (which the South African farming community

has explained is a purely aesthetic problem) citrus exports from

South Africa to the EU grew 22% in 2015. South Africa’s citrus industry

is valued at R10-billion. So valuable is the EU as a client (accounting

for about 40% of citrus exports) that South Africa has, according to

Business Day, spent close to R1-billion to solve the “black spot” issue.

Citrus exports to the EU had grown at a rate of 22% from January

to November 2015. In volume, exports to the EU accounted for 40%

of total citrus exports (30% oranges, 66% mandarins, 24% lemons), up

from 36% in the prior season.

A new entrant to the export market is the GOGO Group, located in

the Loskop Valley, where intensive citrus cultivation takes place. Exports

will be sent to the USA through the parent company EKM Exports.

The Zebediela Citrus Estate has been bought by the Bjatlhadi community

with the support of the Limpopo Local Economic Development

Programme, and the focus has shifted from bulk supply to producing

smaller, consumer-friendly quantities.

Livestock

Government planning at provincial level includes the promotion

of meat “clusters” along all the development corridors identified

in the province. This includes the promotion of hygienic practices,

the establishment of small-scale abattoirs and assistance in the

marketing of products.

The province has about one-million beef cattle, about 7.5% of the

national herd. A new indigenous breed of cattle has been developed

called the Pinz²yl, from breeding Pinzgauer and Nguni stock. This is an

initiative of the same farming group that grows the ZZ2 tomato, with

the name derived from the famous European breed and the name of

the farmer who started it all, Bertie van Zyl.

International demand for venison is in the region of 50 000 tons

per year and South Africa only supplies about 2 000 tons of it – a

clear opportunity for Limpopo entrepreneurs to grow their share

of the market.

Water

Although parts of Limpopo are

well-watered, many areas are

dry, which means that irrigation

projects take on enormous importance.

Four irrigation schemes

below the Flag Boshielo Dam

have prospered (542 hectares

in extent). All four schemes have

potato crops with Krokodil also

having a maize component.

The long drought that has affected

many parts of South Africa

has had a big impact in Limpopo.

The provincial government declared

a disaster in November

2015 and released funds to supply

feed for livestock in areas where

it is scarce.

Amazingly, the demand for fish

in Iran may mean that small water

bodies in the Sekhukhune District

will be devoted to cultivating

fish. The Phethwane Integrated

Aquaculture Project stalled after

a bright start in 2011, but a Fishery

Imbizo held at the Tompi Seleka

College of Agriculture in Marble

Hall aimed to resuscitate the project.

The goal is to supply 500 tons

of fish.

The Tompi Seleka College is

itself in the spotlight, having been

reopened in 2015. Together with

the Madzivhandila College (in

the Thula-Thula Municipality in

the Vhembe District), enrolment

has increased from 140 in 2015 to

222 in 2016. Limpopo is trying to

skill its own farmers.

Irrigation technology is at the

heart of a project in Strydkraal

in Sekhukhune, where MBB

Consulting Engineers has designed

a 300-hectare scheme

LIMPOPO BUSINESS 2016/17

48


OVERVIEW

to produce maize and potatoes.

An experienced commercial

farmer will oversee the management

of the scheme, which

is funded by the Limpopo

Department of Agriculture and

Rural Development and is intended

to benefit the community of

Ikageng.

Food security

A national rural development

strategy has been established

by the National Department

of Agriculture, Forestry and

Fisheries (DAFF), the key component

of which is food security.

The entire value chain of agriculture

is under scrutiny, with the

aim to help small-scale farmers

by improving infrastructure, creating

new markets and assisting

them to gain access to the big

buyers such as supermarkets.

In many areas, private companies

such as South African

Breweries, Woolworths and Pick

n Pay are already active. Massmart

has committed to creating opportunities

for emerging farmers

through its Direct Farm

Programme.

DAFF aims to increase the

number of smallholder producers

in the country. As the DAFF strategic

plan says, “there is a need to

coordinate and integrate all the

support provided to smallholder

and subsistence producers”.

Memorandums of understanding

have been signed with

three Chinese provinces (Anhui,

Jilin and Henan), and the province

is in talks with the National

Department of Agriculture about

putting mangoes and avocadoes (two of Limpopo’s biggest products)

on the priority list of exports to China.

The Limpopo Economic Development Agency has identified specific

investment opportunities: private partnerships to resuscitate

state irrigation schemes, cut flowers, baby vegetables, almonds, table

grapes and pork. Sunflowers, soya beans and maize are other crops,

all of which hold great potential for growth.

A R2.2-million project near Tzaneen aims to improve food security.

The Limani Project is a joint undertaking of Pioneer Foods, Trees for

Africa and the Dreamfields Foundation. Schools receive seeds, tools

and lessons in how to grow organic gardens.

TechnoServe, an NGO, and food-supply company Qutom are helping

three emerging Limpopo farmers produce 700 tons of tomatoes

for Woolworths and other markets. TechnoServe is handling the loan

and has found an experienced farmer to mentor the three new farmers:

the mentor’s remuneration will depend on the production levels

of his charges.

The Eskom Development Foundation acknowledges hard work

in the agricultural sector through its Business Entrepreneurship

Investment Competition Awards. The winners in 2015 was Greenland

Landscaping (Thohoyandou) with first runner-up’s position going to

Livhuki General Trading (Pty) Ltd (Makhado).

ONLINE RESOURCES

Agro-Food Technology Station, Limpopo University:

www.ul.ac.za

ARC-Institute for Tropical and Subtropical Crops:

www.arc.agric.co.za

Citrus Growers Association: www.cga.co.za

Deciduous Fruit Producers Trust: www.dfpt.co.za

Food & Trees For Africa: www.trees.co.za

Limpopo Department of Agriculture: www.lda.gov.za

Limpopo Economic Development Agency: www.lieda.co.za

Limpopo Local Economic Development Programme:

www.limpopoled.com

National Department of Agriculture, Forestry and Fisheries:

www.daff.gov.za

South African Fruit Farms: www.safruitfarms.com

South African Macadamia Growers’ Association:

www.samac.org.za

South African Subtropical Growers’ Association:

www.subtrop.net

49 LIMPOPO BUSINESS 2016/17


OVERVIEW

Mining

The Waterberg region is attracting mining companies.

SECTOR INSIGHT

After several years of rising prices and increasing demand,

the global commodities market experienced lower prices

and shrinking demand in 2015. This had a lot to do with

slower growth in China, but South African mining companies

also had to deal with rising energy prices, labour upheavals and

legislative uncertainty.

There have consequently been some big changes to the mining

landscape, and not just in South Africa. One of the most significant is

the change of focus by Anglo American, one of the world’s biggest

resource companies. It decided to focus sharply on diamonds, copper

and platinum. This is not just in the company’s South African mines, but

rather a global decision which will affect Anglo’s operations in North

and South America, Australia and South Africa. In 2015 the Anglo group

had 55 mines, employed 128 000 people and had revenue of $23-billion.

The sale of Anglo’s iron-ore and coal assets has provided an opportunity

for other mining companies that want to mine differently or

acquire new assets.

Sibanye Gold, going beyond the name it acquired when Goldfields

was unbundled in 2013, bought platinum mines in Rustenburg

Chinese companies have

been very active in the

Limpopo mining sector.

• Sibanye Gold is buying

platinum assets.

• Hebei Iron and Steel and

the IDC may build a steel

mill in Limpopo.

• A provincial mining roundtable

was held to promote

industrialisation.

• A national Energy

Metallurgical Base Project

will anchor the planned

Special Economic Zone at

Musina.

• Phalaborwa Copper will

spend R9.3-billion on

extending the life of the

mine.

• Anglo American is selling

some assets, but investing

more money in diamond

mining in Limpopo.

• Exxaro is investigating

Underground Coal

Gasification.

from Anglo American Platinum

(Amplats) in 2015 and has expressed

interest buying coal assets,

mostly to offset rising energy

costs at its own mines.

Anglo’s 16.8% share in the

copper mine, smelter and

refinery in Phalaborwa was dis-

LIMPOPO BUSINESS 2016/17

50


OVERVIEW

posed of in 2013 (Rio Tinto was

the majority shareholder). The

main shareholders in the purchasing

holding company are

Hebei Iron and Steel (of China)

and South Africa’s Industrial

Development Corporation, holding

35% and 20% respectively.

The new shareholders have

undertaken to spend R9.3-billion

on the mine complex to extend

the life of the mine which is South

Africa’s only producer of refined

copper. The mine produces

about 80 000 tons of refined

copper every year, and the refinery

produces continuous cast

rod for the domestic market and

cathodes for the export market.

Hebei and the IDC have

jointly committed to spending

a further $5-billion on building

a new steel plant in South Africa.

One of the sites being considered

is Phalaborwa (the others

are Witbank in Mpumalanga and

Richards Bay). Other steel producers

have been stressed by

low prices and over-production

on the global market, but the

IDC believes that they can make steel cheaper and supply the

African market.

Mining activities at the Kumba iron-ore Thabazimbi mine ceased

at the end of September 2015 and processing activities ceased on 31

March 2016.

In contrast to these pull-backs, Anglo American has announced a

further investment of $20-million to expand production at its diamond

mine near the town of Musina. Venetia Mine is by far the most important

part of De Beers’ South African operation, accounting for 3.1-million of

the 5.4-million carats recovered by the company from its six operations.

Limpopo’s mineral riches

Limpopo has a very rich and varied mineral asset base. Platinum occurs

on both limbs of the Bushveld Igneous Complex (BIC), and the

Waterberg district is seen as the answer to South Africa’s coal needs

for the next several decades.

The provincial government reports that the mining sector constituted

26% of Limpopo’s gross domestic product in 2013. In 2015 a

Mining Roundtable was held under the title “Limpopo’s Minerals for a

Broad-Based Industrialisation Agenda” and attended by 250 delegates

from the mining sector, universities, NGOs and government. A key focus

area is to try to ensure that 20% of procurement in the mining sector

goes to small businesses and co-operatives.

Silicon Smelters (the largest charcoal producer in Africa) and Anglo

Platinum’s smelting facility, one of three run by the company, are both

located in Polokwane.

Northam Platinum’s metallurgical complex at its Zondereinde mine

processes Merensky and UG2 ores separately.

51 LIMPOPO BUSINESS 2016/17


OVERVIEW

At the University of Limpopo, the Materials and Modelling Centre

has a nationally-appointed Chair in Computational Modelling of

Materials. The chair, which is funded by the National Department of

Science and Technology and the National Research Foundation, is

held by distinguished Professor Phuti Ngoepe. High-level research is

undertaken into magnesium and titanium compounds and into issues

such as the nanostructures of lithium-ion which are relevant to the

electric-car industry.

Platinum and coal

Despite reduced global demand in the short term, Platinum Group

Metals (PGMs) are very much linked to the modern global economy

and high-technology products of every sort: catalytic converters

and fuel cells are just two examples. Jewellery is another application.

According to marketing agency Johnson Matthey, South Africa has, in

percentages of world supply of Platinum Group Metals: 75% platinum;

35% palladium and 86% of rhodium.

Implats’ major Limpopo asset is a 73% holding in Marula (eastern

limb) which is 50km north of Burgersfort. Jubilee is the minority

shareholder.

Lonmin runs the Limpopo mine near Polokwane on the eastern limb

of the BIC but most of its mines are in North West province. Lonmin’s

other Limpopo assets include the Baobab mine, a concentrator and

a half share (with Mvelaphanda Resources) of the Doornvlei project.

Northam Platinum has the mines Zondereinde (on the western

limb) and Booysendal in the east and in 2015 acquired the Everest

mine from Aquarius. The company is increasing production and made

a profit in 2015 of R595.8-million.

Junior mining companies active

in Limpopo include Lesogo

Platinum (the Phosiri Project on

the eastern limb), Nkwe Platinum

and Bauba Platinum.

A new platinum project got

underway near Mokopane in

2015, where Ivanhoe Mines

Platreef Project (64% owned by

Ivanplats) will spend $1.6-billion.

Limpopo contributes 4%

of coal mining in South Africa,

according to the National

Department of Mineral

Resources, but it seems likely

that within the next three

decades, the province will be

supplying about half of South

Africa’s coal.

Coal is massively in demand

because of South Africa’s urgent

need for more electricity.

Limpopo’s Waterberg coal field

is estimated to contain about

75- billion tons of coal.

Supplying coal to power-producer

Eskom has for many years

been part of the bread-andbutter

income for coal mining

operators. In 2015, Exxaro supplied

Eskom with nearly 30%

of the coal it needed to run its

power stations, about 33-million

tons of coal.

Exxaro spent several billion

rand expanding its Grootgeluk

mine in the expectation that it

would supply coal to Eskom’s

Medupi power station. However,

construction of the giant power

station has been severely delayed,

with the result that Exxaro

are now having to look to export

their coal. The plan was for the

mine to supply Medupi with

14.6-million tons of coal every

year for 40 years.

LIMPOPO BUSINESS 2016/17

52


OVERVIEW

Exxaro is exploring new technologies

at Lephalale, working on

the possibilities of Underground

Coal Gasification (UCG).

Sibanye Gold has acquired

a 51% stake in Waterberg Coal,

further evidence that it intends

looking after its own power

supply, at least to some extent.

Coal of Africa is active in

Limpopo. Its subsidiary, Limpopo

Coal, mines the Vele colliery in the

far north of the province.

Other minerals

The Phalaborwa phosphate mine

of Foskor has an annual capacity

of 2.85-million tons. It uses

the phosphate rock it mines to

manufacture phosphate fertiliser

and phosphoric acid.

The largest concentrations

of chromite are found on the

eastern limb of the Bushveld

Igneous Complex where

Samancor runs Eastern Chrome

Mines at Steelport (with three

concentrators) and ASA Metals’

upscaled smelting furnaces now

produce 400 000 tons of charge

chrome per year at the Dilokong

Chrome Mine, located between

Burgersfort and Polokwane.

South Africa produces 39% of the

world’s chromite.

Andalusite, a vital component

in spark-plug ceramics, is

mined near Thabazimbi and at

Maroelasfontein in the west of

the province. The Consolidated

Murchison Mine (ConMurch)

at Gravelotte, just west of

Phalaborwa, is the single biggest

producer of antimony in the

world outside China, producing

about 20% of the world’s supply. Attapulgite is mined by G&W Base

and Industrial Minerals at Dwaalboom. Sephaku Holdings is optimistic

about tin, copper, fluorspar mineralisation at its site west

of Mokopane.

Investors in a new cement factory in Thabazimbi include the Jidong

Development Group, the China African Development Fund and the

South African Women Investment Holdings Portfolio. An amount

of R1.6-billion was invested, creating 550 temporary jobs and 231

full-time jobs.

ONLINE RESOURCES

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

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

Mining Qualifications Authority (MQA): www.mqa.org.za

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

South African Institute of Mining and Metallurgy:

www.saimm.co.za

53 LIMPOPO BUSINESS 2016/17


OVERVIEW

Transport and logistics

Transport and logistics are vital to Limpopo’s export trade

Logistics is a vital feature of the Limpopo economy for two

reasons: the province has huge volumes of raw produce to

be transported to markets elsewhere, and the province is also

strategically positioned on the great road to the north.

All of South Africa’s major logistics companies have facilities in

Polokwane, and some (like RTT, which also has offices in Makhado) have

warehouses and forwarding capabilities in other parts of the province.

Limpopo’s biggest exports (minerals, fruit and vegetables) require

dramatically different levels of handling. Minerals are poured in great

volumes into the freight trucks of Transnet Freight Rail (TFR) and taken

onward to the Richards Bay Coal Terminal, whereas some of the province’s

fruits (for instance avocadoes) have to be handled with extreme

care. They also have to be delivered to ports as quickly as possible as

they are delicate and the deadlines for getting fruit to market in Europe

can be extremely challenging. Companies such as Freezerlines, Fast

SECTOR INSIGHT

Transnet Freight Rail wants

to get freight off the roads

and onto rail.

• Roads Agency Limpopo

has a budget of R737-

million for 2016/17.

• SA Express flies regularly

to Eastgate airport near

the Kruger Park.

‘n Fresh and Cold Chain have developed

specialist techniques for

getting these fruits to market and

LIMPOPO BUSINESS 2016/17

54


OVERVIEW

to port undamaged. Grindrod has

a Perishable Cargo division which

specialises in transporting cargo

by air.

The large national logistics

company Value Group has only

four major regional depots outside

of Gauteng: in Cape Town,

Durban, Nelspruit and Polokwane.

This illustrates the importance

of the Limpopo Province and

its capital city in South Africa’s

logistics chain.

Logistics giant Imperial

Logistics Southern Africa has 70

companies in its group structure,

including Kobus Minaar Transport,

a concern that began in Tzaneen

transporting fruit and vegetables.

Other active companies

in Limpopo include Dawn Wing Logistics, Kargo, F&R Logistics and

Aramex SA.

Outside of Polokwane, the towns of Tzaneen, Lephalale, Burgersfort

and Musina (a border post with Zimbabwe) are all important in the

field of logistics.

There has been interest for some years in increasing rail volumes out

of the coal-rich Waterberg area (TFR is conducting a feasibility study

into building a major new rail link) but depressed commodity prices

worldwide will make it more difficult to get this project up and running

in the near future. An extension of 464km would cost about R37-billion,

but it is possible that TFR will look for private partners to invest in the

project. If more coal mines are developed then capacity could be

ramped up in stages from the current four-million tons-per-year to

around 80-million tons, which would all be delivered to Richards Bay

via the line through Mpumalanga and KwaZulu-Natal. Eskom’s huge

new power station in western Limpopo (Medupi) will need massive

supplies of coal but is experiencing long delays in construction.

The N1 highway (“The Road to the North”) is an incredibly busy and

sometimes overcrowded road, and growing mining operations are

putting pressure on secondary routes throughout the province, which

55 LIMPOPO BUSINESS 2016/17


OVERVIEW

is why it is good news for Limpopo that the stated aim of Transnet

Freight Rail is to lead the country in getting larger quantities of freight

moved from road back to rail.

On the national scene, the Passenger Rail Agency of South Africa

(Prasa) is set to spend about R123-billion on upgrading and modernising

the country’s rail system and rolling stock. This would include

an investment in the building of 360 new coaches every year for

two decades.

Roads

The Roads Agency of Limpopo (RAL), of which the provincial government

is the sole shareholder, accounts for about one-third of the

budget of the Limpopo Department of Public Works, Roads and

Infrastructure. In 2016/17, RAL has been allocated R737.3-million.

The Department of Transport looks after transport infrastructure

(other than roads) and public transport, and it has budgeted R1.9-billion

for these facilities in 2016/17. A bus monitoring system is due to be

purchased by the province.

Since 2009 RAL has built 21 bridges, upgraded about 407km of

gravel roads to tar and rehabilitated more than 170km of tarred roads.

Roughly 30% of the roads in Limpopo are tarred and some provincial

expenditure is allocated to ensure access to schools and clinics.

Another project whereby households living along routes are tasked

with maintaining roads has been rolled out, and 25 such projects will

be supported to the tune of R278-

million, led by local municipalities.

The provincial transport department

has also made bicycles

available to some school pupils

who live further than 10km from

their school.

National government has

spent ever-increasing amounts of

money on road allocations over

the last five years, increasing at a

rate of 16% every year. The South

African National Roads Agency

Limited (Sanral) has successfully

raised several billion rand through

bonds and capital markets in

pursuit of its mandate to finance,

manage and maintain the national

road network. In 2014, several

provincial roads in Limpopo were

transferred to Sanral.

Great North Transport has

more than 500 buses, covers

about 36-million kilometres every

year, employs more than 1 200

people and transports 37.6-million

LIMPOPO BUSINESS 2016/17

56


OVERVIEW

passengers. A wholly-owned subsidiary

of the Limpopo Economic

Development Agency (LEDA), it

operates on 279 routes with 11

depots supporting the network

of bus routes. These depots are

located at: Seshego, Mokopane,

Bapedi, Phalaborwa, Marble Hall,

Giyani, Motetema, Hoedspruit,

Tzaneen, Bushbuckridge and

Makhado.

In 2013, Great North Transport

purchased 80 buses valued at

approximately R140-million from

MAN Truck & Bus. With an average

round-trip distance of 100km

on gravel roads, the Lion Explorer

HB4 was judged to be well-suited

to the robust local conditions.

Air

The Polokwane International

Airport (PIA) is wholly owned

by the provincial government

and run by the Gateway Airports

Authority Limited (GAAL), an

agency of the Department of

Roads and Transport. The airport

has undergone a R35-million upgrade

and been transformed into

a regional hub. It has the potential

to be an important regional cargo

airport.

SA Airlink caters mainly to the

business market and offers 21

flights to Johannesburg six days

a week. The airline also provides

links between Phalaborwa and

Johannesburg, as well as between

Hoedspruit, Johannesburg

and Cape Town.

Many game reserves have airstrips,

while regional airports in

the eastern part of the province

provide easy access to the Kruger

National Park. East Gate at Hoedspruit is situated within an airforce

base and has the second-longest runway in South Africa, which is

long enough to serve as an emergency landing area for space shuttles.

The airport is served by SA Express. Phalaborwa’s airport is notable

for its African-themed terminal, which includes a zebra-patterned

floor. Musina, near the border with Zimbabwe in the north, hosts the

province’s other regional airport.

ONLINE RESOURCES

Air Traffic and Navigation Services: www.atns.co.za

Civil Aviation Authority: www.caa.co.za

Eastgate Airport: www.eastgateairport.co.za

Great North Transport: www.limdev.co.za

Gateway Airports Authority Limited: www.gaal.co.za

Limpopo Department of Roads and Transport:

www.ldrt.gov.za

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

Roads Agency Limpopo: www.ral.co.za

South Africa Bus Operators Association: www.saboa.co.za

South African National Roads Agency Limited:

www.sanral.co.za

South African Rail Commuter Corporation Ltd:

www.sarcc.co.za

Transnet Freight Rail: www.transnet.net

57 LIMPOPO BUSINESS 2016/17


PROFILE

Gateway Airports

Authority Limited

With a vision to be an optimally functioning airports authority and centre of excellence

through Airport City Services in the Limpopo region, Gateway Airports Authority

Limited is committed to unlocking maximum benefit for its stakeholders.

Mandate and success

GAAL’s mandate is to manage all non-private airports

in Limpopo (including Polokwane International

Airport) in compliance with various legislative and

administrative ccts such as the South African Civil

Aviation Authority (SACAA). GAAL currently manages

Polokwane International Airport and has increased

its tariffs as a result of benchmarking itself

against other peer group industry partners. The

agency has contributed to a much-needed injection

of cash into the organisation and has contracted

Air Traffic Navigation Services to collect approach

fees (fees which they had not previously collected).

The management of GAAL are confident that this

intervention will assist the organisation to further

address all the compliance and maintenance issues

that the organisation faces. In addition, the airport’s

LIMPOPO BUSINESS 2016/17

58


PROFILE

Thulani Zulu,

CEO of Gateway

Airports Authority

Limited.

maintenance is carried

out, along with implementing

projects that will

lead to the construction

of the Fire and Rescue

Training facility, construction

of a non-public parking

management system,

in addition to asset acquisitions

such as the purchase

of X-ray screening

machines for passenger

security screening.

compliance status has been confirmed by the Civil

Aviation Authority’s audit inspection during the year

under review. As a result of this audit, the airport

received International Airport status and has also

being recognised as an institution that contributes

significantly to economic growth and development

throughout Limpopo.

Driving revenue

The organisation’s financial sustainability will be

significantly improved by development and implementation

programmes that will result in an increase

in aeronautical fees (including landing, passenger,

parking and baggage-handling fees) as well as fuel

throughput and non-aeronautical revenue streams.

These revenue streams include the rental income

from office space, car parking fees, water and electricity

tariffs, the sale of permits and sale of tender

documents. Passenger statistics are the most important

figure in terms of the business’ operations

as they generate the key performances, and assist

with budget target planning in addition to the actual

achievements in the business.

Infrastructural improvements

The airport is in the initial stages of a supply

chain process that will ensure that infrastructure

Services and products

Located within Limpopo’s Capricorn District,

Polokwane International Airport offers access to

one scheduled domestic airline, namely SA Airlink

(connecting to OR Tambo International Airport).

Economic opportunities

The increase in domestic passenger movement

and the introduction of the new scheduled private

charter flights – with the corresponding development

of new routes – is a breath of fresh air to the

local economy. This is an initiative that is aligned

with a number of others that are not only aimed at

improving the provincial transport landscapes, but

also contribute significantly to the socio-economic

impact in the province.

CONTACT INFO

Physical address: Gateway Road,

Polokwane 0700

Postal address: PO Box 1309,

Polokwane 0700

Tel: +27 15 288 0122

Fax: +27 15 288 0125

Email: info@gaal.co.za

Website: www.gaal.co.za

59 LIMPOPO BUSINESS 2016/17


OVERVIEW

Renewable energy

Solar and bio-mass have the greatest potential in Limpopo.

SECTOR INSIGHT

Two big events have changed the energy landscape in Limpopo

province: firstly, the giant Medupi power station started delivering

power to the national grid in August 2015; secondly, Limpopo

became the site of three projects that are part of the national

programme to encourage independent power producers to build

capacity in that field.

At this stage the former event is much more significant than

the latter: Unit 6 at Medupi on its own will generate 794MW and

the plan is to have all six units doing the same. Compared to these

volumes of energy, the amount so far allocated to Limpopo in the

renewable energy field is really small. And there is no doubt that

coal-fired power stations such as Medupi will mean that South Africa

will continue to rely on coal for many years to come – but this means

that the coal fields and power stations of Limpopo will also continue

to remain significant.

However, the shift away from a carbon-economy is happening,

and it is happening at astonishing speed (and there is also the fact

that Medupi and Kusile, the other big power station, have been

delayed for a very long time and, at time of going to print, a date for

full functionality remains, at best, a guess).

The Matimba Power Station nearby will continue to hold its title as

the world’s largest dry-cooling plant only until such time as Medupi

is commissioned. Matimba functions close to 3 700MW capacity.

Although Limpopo has only been allocated three projects so far,

the national Department of Energy’s Renewable Energy Independent

South Africa’s independent

renewable energy power

producers’ programme has

attracted R53.2-billion in

foreign investment.

• Medupi power station

is feeding power to the

national grid after long

delays.

• Nine biogas digesters are

running as part of a pilot

project.

Limpopo is home to a

large silicon smelter and

silicon is a component of

solar panels.

Power Producer Procurement

Programme (REIPPP) has been

astonishingly successful in a very

short period of time. Local and

foreign companies have been

bidding in a “closed envelope”

process to build renewable

energy plants (solar, wind, biomass,

hydroelectric) and the

Department of Energy (DoE) selects

the winning company or

consortium, which then gets to

build the plant and sell what it

generates into the national grid

at a competitive price.

Over the four bidding “windows”

to September 2015, a total

of 92 contracts have been signed

to supply electricity with a nameplate

capacity of 6 327MW and

LIMPOPO BUSINESS 2016/17

60


OVERVIEW

South Africa has received R53.2-

billion in foreign investment.

The overwhelming majority

of projects approved have been

solar and wind and there is now

going to be a focus on finding

ways to promote projects using

biogas, landfill gas and small-scale

hydro electric.

Limpopo’s three REIPPP projects

are all of the photovoltaic

solar type, and together they will

generate 118MW at full capacity.

The provincial government’s

Green Economy Plan has identified

solar and biomass as the main

kinds of renewable energy that

the province can pursue.

Nine biogas digesters have

been installed in the Vhembe

District and these will be controlled

by young entrepreneurs

trained by the University of

Venda. A demonstration model

is at the university. A group of

31 students are studying Energy

Management Systems as part of

Limpopo’s Green Economy Plan.

Energy generation is not the

only component of the plan: with

huge silicon reserves in the province,

there is potential for the production

of solar panels and solar

chargers for cellphones.

Alternatives

The mining and agricultural sectors

are the two biggest and most

important sectors of the Limpopo

provincial economy. They are big

consumers of energy and hold

the key to advancing alternate

technologies.

Many mines are looking increasingly

at going off-grid and

are therefore using renewable strategies to achieve that. The agricultural

sector obviously controls all sorts of feedstocks that can be used

to generate power.

Anglo Platinum has launched an underground mining locomotive

powered by a fuel cell. Platinum coating greatly enhances the hydrogen

absorption capacity of fuel cells. The locomotive was developed

together with Vehicle Projects, Trident South Africa and Battery Electric.

Anglo Coal’s operations at Lephalale produce a huge amount of

methane gas. A third of this gas is now being used to power fuel cells.

Anglo Platinum is a 17.5% shareholder in Johnson Matthew Fuel

Cells. Anglo Platinum bought the second-hand demonstration unit

from UTC Power, a US company. It can produce up to 200 kilowatts

of electricity.

Bioethanol, biodiesel and methane gas from waste and renewable

resources are among the types of biofuels being investigated.

A new set of national government guidelines has shifted the emphasis

towards finding fuel stock from crops that are unlikely to affect

food security, like sugar cane, sugar beet, canola and sunflower seeds.

Limpopo is well placed to exploit these crops and has several other

advantages as a potential green economy:

• Thousands of hectares of open space that could be traded in the

carbon-trading market

• High solar intensity

• Relevant mineral deposits such as silica, which are useful in making

solar products

• A well-established and well-equipped agricultural sector, capable

of producing crops for use as biofuel

NGO Project 90x2030 has a demonstration site in Limpopo, showing

off the latest technology in renewable energy. At Tshulu-HaMakuya,

the 20-unit computer room of the Tshulu Trust is powered by a solar

photovoltaic system, as is the lighting for the facility. More and more

game lodges are moving off the grid through the use of solar panels.

Mining group Exxaro is sponsoring the roll-out of alternative energy

near its remote Tshikondeni mine east of Musina. The Alternative

Energy Development Corporation (AEDC) has installed zinc air fuel cells

in homes and in street lights. With this technology, oxygen and zinc

combine in fuel cells to generate renewable energy.

ONLINE RESOURCES

African Biofuels: www.africanbiofuels.co.za

CDM Africa Climate Solutions: www.cdmafrica.com

Mapfura Makhura Incubator: www.biodieselmmi.co.za

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

Southern African Biofuels Association: www.saba.za.org

Sustainable Energy Africa: www.sustainable.org.za

61 LIMPOPO BUSINESS 2016/17


OVERVIEW

Water

A Limpopo Water Master Plan will be tabled during 2016.

SECTOR INSIGHT

Limpopo in the site of two of

South Africa’s largest infrastructure

projects - Mokolo

Crocodile Augmentationn

Project and Oliefants

River Water Resources

Dvelopment Project.

A

Provincial Water and Sanitation Summit has resolved that a

Limpopo Water Master Plan has to be urgently developed.

Floods have been known in parts of Limpopo (and they

have been serious), but the more pressing threat is drought:

a disaster area was declared in late 2015 in response to the latest

prolonged shortage of water.

National and provincial government set aside budgets for the

provision of feed to livestock farmers. In addition to this emergency

aid, downward revisions also have had to be made to schemes that

include irrigation, such as the Fetsa Tlala programme.

The province’s two most important economic sectors (mining

and agriculture) depend on a steady and sustainable supply of water.

Several Limpopo towns have struggled to supply clean water to

residents, and this has led to tension between residents and municipal

officials. In response, the National Minister of Public Works has put

together a technical team to support the municipalities.

Limpopo’s three distinct regions attract very different levels of

rainfall: the escarpment (sub-humid with annual rainfall of more than

700mm); semi-arid middle veld and Highveld; and the arid and semiarid

Lowveld.

The province’s rivers are also

under threat from the damaging

effects of the mining industry,

power stations, chemicals used

in agriculture and from sewage

treatment in catchment areas.

Opportunities exist in this sector

for innovative solutions.

The National Department of

Water and Sanitation (DWS) has

attached a figure of R570-billion

to the amount of investment

needed in South Africa’s water

supply chain in the years to 2022.

Water resources infrastructure

alone is said to need R162-

billion. Limpopo is the site of

two of the biggest of these

projects: the Mokolo Crocodile

Augmentation Project (west)

and the Olifants River Water

Resources Development Project

in the east.

Each of Limpopo’s five district

municipalities function as a Water

Service Authority and the Lepelle

Northern Water company has a

LIMPOPO BUSINESS 2016/17

62


OVERVIEW

strong presence in the central,

eastern and southern parts of the

province.

North

Parts of Limpopo’s most northern

district are extremely dry.

Surface water mainly originates

in the mountainous areas and

is regulated by several dams in

the upper and middle reaches

of the rivers. Over-exploitation

of groundwater is a problem.

An innovative water-catching

project run by meteorology students

of the University of Pretoria

is providing a community in

the Soutpansberg with clean

drinking water.

Instead of relying on tankers

to bring water to their dry area,

schoolchildren in the Tshiavha

village collect water from giant

sheets that trap the water that

has gathered as fog. Threemetre-high

nets set up around

the school provide about 2 500

litres per day.

West

The Mokolo Crocodile

Augmentation Project is designed

to supply water to Medupi,

the new power station being built

at Lephalale, and to the coal mining

operations that will feed it. A

pump station and a 45km pipeline

between the site of the power

station and the Mokolo Dam are

being built by the Trans-Caledon

Tunnel Authority.

Mokolo Crocodile Consultants,

a group of five consulting

firms which includes Aurecon, is providing engineering services to

this project.

East and south

When the Olifants River Water Resources Development Project is fully

developed, it will be supplying water to 23 platinum mines. The De

Hoop Dam is at the centre of the scheme.

Water developments in the Sekhukhune district have not been

restricted to the De Hoop Dam. Five water projects with 65 associated

schemes had delivered other water infrastructure, including pipes to

get water to Moutse from the Loskop Dam.

A concerned group of water users (from mining, heavy industry and

conservation circles) have formed the Olifants River Forum to monitor

change in the big catchment area. The forum is funding a team of

researchers from several universities and the Council for Scientific and

Industrial Research (CSIR) to conduct tests on the quality of water and

threats to the same in the upper reaches of the Olifants.

Polokwane

The Water and Sanitation Services branch of the Polokwane Municipality

operates five water-purification plants and three sewage-purification

plants. As part of its Regional Water Scheme programme, Polokwane provides

water to the residents of the rural areas of Mothapo, Mothiba and

Makotopong. A 600-kilolitre reservoir was built and new pipes were laid.

The Capricorn District Municipality funds a water-testing laboratory

on the campus of the University of Limpopo.

Mocha Lab has been operating in Polokwane since 2008 and has

the capability to provide services to the mining and engineering sector,

as well as to water authorities.

ONLINE RESOURCES

Limpopo Department of Economic Development,

Environment and Tourism: www.ledet.gov.za

National Department of Water and Sanitation:

www.dwa.gov.za

Olifants River Forum: www.orf.co.za

South African Association of Water Utilities:

www.saawu.co.za

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

Water Research Commission: www.wrc.org.za

63 LIMPOPO BUSINESS 2016/17


OVERVIEW

ICT and telecommunications

Connecting rural areas is a priority for Limpopo authorities.

SECTOR INSIGHT

Ten schools are piloting an

Offline Content Solution.

• The Limpopo ICT Youth

Conference was held in

2015.

• An ICT Centre of

Excellence is to be

established in 2016.

Connectivity is difficult to achieve in remote rural areas, and

large parts of Limpopo are rural. One way of achieving

higher connectivity is to focus on schools and libraries.

The Universal Service and Access Agency of South Africa

(USAASA) has as its brief to provide ICT services to public and private

schools, hospitals and training colleges. Limpopo is one of five provinces

that USAASA concentrates on with respect to school connectivity:

more than R25-million has been spent since 2010 on this project and

more than 400 smart devices distributed.

Private telecommunications companies also have community responsibilities

in terms of the National Development Plan. They must

help connect under-serviced areas to the telecommunications and

Internet networks.

A National Library of South Africa (NLSA) project, supported by

Vodacom, will connect about 300 community libraries via VSAT and

Vodacom ADSL services. The project covers South Africa’s three most

rural provinces – the North West, Limpopo and Mpumalanga.

When national libraries started using an open-source system known

as Library Information Management System (LIMS), it was a good opportunity

to upgrade the more remote libraries. Meso ICT Solutions was

the company used by Vodacom and the NLSA to roll out the project,

which will also give community members in those areas better access

to the Internet (including teachers

and students). Each library has 14

work stations and Vodacom can

carry both fixed-line and satellite

connectivity.

The state is a big factor in the

ICT sector, both in terms of its

regulatory role, the incentives offered

to companies and in terms

of its own purchasing power

through national departments

and agencies.

The State Information

Technology Agency (SITA) supports

a wide range of national

and provincial departments and

municipalities across the province,

and is working on establishing

a comprehensive provincial

network. SITA played a role in the

NLSA/LIMS project.

SITA has a client base of more

than 5 000 offices and offers services

in WAN support, support

of the provincial mainframe, ICT

training and website development,

among others. A SITA initiative

to help all of South Africa’s

LIMPOPO BUSINESS 2016/17

64


OVERVIEW

teachers obtain laptops will have

an impact on the sector.

South African Vanguard

of Technology (Savant) is a

Department of Trade and Industry

(dti) programme. It is the marketing

and awareness programme

for the South African ICT and

electronics sector. The aim is to

develop South African exports

and to attract foreign investment.

The National Department

of Communications is responsible

for the Independent

Communications Authority of

South Africa (ICASA, the regulator

of communications, broadcasting

and postal services), the SA

Broadcasting Corporation (SABC),

and three other agencies.

The Telkom Foundation began

supporting ICT at Manyangan

High School and several others

like it a decade ago. Schools in

rural areas were given a wireless

networked e-Learning

Resource Centre consisting of

20 computers, a server, a printer,

all Microsoft-supplied software,

insurance and a three-year maintenance

plan. Internet access

was included, powered by Vsat

satellite technology.

More than 800 young people

attended the Limpopo ICT Youth

Conference in 2015 where they

and the owners and small and

medium-sized ICT businesses

shared ideas about the pitfalls

and opportunities in the sector.

An ICT Centre of Excellence will be

established in 2016, taking into account

the input of the delegates.

Alternative and innovative solutions

are also being followed.

Ten schools have been identified

by the ICT Internet Connectivity

Project and the national Department of Education to pilot the Offline

Content Solution. Tirelo Bosha will pay R1.4-million towards this project.

Tirelo Bosha is a public service improvement grant administered by the

national Department of Public Service and Administration.

The Technology and Human Resources for Industry Programme

(THRIP) is a programme of the National Research Foundation and supports

an average of 235 projects per year. THRIP funding totals around

R150-million (with approximately R240-million from industry per year)

and supports initiatives that use science to bring benefits to wider

society. This can relate to boosting distant rural computer literacy (as

in a project in the Eastern Cape which will have relevance to Limpopo)

or, for example, to scientists working at the University of Venda who

have received THRIP funding relating to soil research.

Intermediate computer-literacy classes are being provided at some

Limpopo schools by the Internet Service Providers’ Association (ISPA),

and the CoZa Cares project of Uniforum SA. Maths Centre has received

funding from the Citigroup Foundation to help it expand the Anglo

American project for maths and science using specially developed

software. ICT company Edukite Learning Services is the developer.

The sponsorship includes digital tablets and projectors to be used in

the training of teachers.

ISPA runs courses for teachers in all parts of South Africa. Since

2004, ISPA and Uniforum SA awarded a Super Teacher of the Year award

to the educator who has best imparted their newly acquired IT knowledge

to pupils and members of their community when they return

from these courses. These Limpopo teachers and schools were winners

in 2009 (Lesibe Jimmy Rawane, Thomo Primary School), 2010 (Melia

Moeketsi, Maribe Primary), 2011 (Phuthi Ragophala, Pulamadibogo

Primary), 2012 (Sadike Welheminah Kekana, Toronto Secondary) and

2013 (Mokhudu Cynthia Machaba, Ngwanamago Primary School).

ONLINE RESOURCES

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

National Department of Trade and Industry:

www.thedti.gov.za

National Research Foundation: www.nrf.ac.za

Seda Technology Programme: www.seda.org.za

South African Vanguard of Technology: www.savant.co.za

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

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

Technology and Human Resources for Industry Programme:

htttp://thrip.nrf.ac.za

Technology Innovation Agency: www.tia.org.za

65 LIMPOPO BUSINESS 2016/17


PROFILE

Getting the

message through

Vodacom is a leading African mobile communication

company providing a wide range of communication services including

mobile voice, messaging, data and converged services to over 61-million customers.

From our roots in South Africa, we have

grown our mobile network business

to include operations in Tanzania, DRC,

Mozambique and Lesotho. The mobile

networks cover a total population of approximately

200-million people.

Through Vodacom Business Africa (VBA) we also

offer business managed services to enterprises in

over 40 countries across the continent.

Vodacom is majority owned by Vodafone

(65% holding) one of the world’s largest mobile

communications companies by revenue.

Our Strategies

What we need to do?

This is everything we need to do boiled down into

five strategies:

• Deliver the best customer experience

• Grow data, enterprise, new services and

grow internationally

• Make our processes and businesses more

efficient

• Build a diverse and talented team

• Transform society and build stakeholder

trust

Values and Vision

Our Purpose

Connecting you, creating possibilities,

changing lives.

Why we exist?

Our reason to get up in the morning: knowing

that what we do has the potential to change things

for the better, and that we have the opportunity

to do things better every single day by innovating.

Our Vision

Best network, best value, best service.

Where are we going?

We’re focusing on making our vision real, specifically

through our brand promise of best network, best

value, best service and everything that goes into

keeping our promise.

Our Way

Speed, simplicity and trust

How we need to do it?

The Vodacom Way is the antidote to bureaucracy;

if something fails this test we find another solution.

CONTACT INFO

Physical address: 93 Biccard Street,

Polokwane 0699

Tel: +27 82 277 5001 | 082 277 5001

Web: www.vodacom.co.za

LIMPOPO BUSINESS 2016/17

66


Broadband Connect

Wireless

A Ready Business is connected

wirelessly.

Vodacom

Power to you

Super-fast

Reliable

Flexible

Convenient

Internet access from 2Mbps up to 40Mbps. High availability - no copper lines required! Voice savings of up to 30%

Terms and Conditions Apply

For more information dial 082 277 0880


C S I &

YOUTH

Vodacom staff packing

food parcels for their

67 minutes for Mandela Day

Children at Madiphatlakgomo

school with their Mandela

Day food packs

Vodacom, in partnership with

Sapa Yopa bikers, built a

wendy house for a charity

organisation

Vodacom was part of awarding Limpopo’s top Matric students


Vodacom brought easy learning

to Bakenberg as part of their

e-School portal

Vodacom Foundation in

partnership with Oprah Winfrey

Foundation takes technology to

Vele School at Gogogo Village

in Vhembe District

Vodacom, together with LEDET

at Students for the Advancement

of Global Entrepreneurship

Stationery Drive at Glansheil

Vodacom empowering the youth of

Nkowankowa together with GTFM

Vodacom, in partnership with

Sapa Yopa bikers, dug a borehole

for a charity organisation

Students of Malusi High School

at Avon Village experience

easy learning through the

Vodacom e-School portal

Vodacom donated blankets

during National Science Week


INTERVIEW

Chris Lazarus: driving

Vodacom Limpopo

Chris Lazarus is Vodacom’s dynamic and driven Managing

Executive for the Limpopo region (home to 3.9-million

customers) who is pushing the frontiers of the online

revolution in Limpopo.

Chris Lazarus, Managing

Executive: Limpopo

BIOGRAPHY

Before joining Vodacom, Chris

Lazarus was Head of Content

Solutions for I-Net Bridge until

2005, when he joined Vodacom

as Executive Head Data Sales.

In 2009 he established the

Public Sector division and then

moved to Enterprise Products/

Services. In 2011 he became

Managing Executive Product/

Services, managing the enterprise

business product suite. In

2013 he started the Emerging

Markets division and in 2014 he

became Managing Executive

Gauteng Region and successfully

turned around the regional

channel engagement plans

and increased growth in data

revenue, 3G devices and LTE.

He holds an MBA from Henley

Management College, UK.

Vodacom is investing hundreds of millions of rands into

its network to get as many people as possible connected

around the province. Where do you see the greatest changes

and benefits for Limpopo?

The investment is about rolling out

more sites to ensure we provide

more base station coverage to

areas where we have gaps but

also investing to ensure that our

customers have a better voice

and data experience. There is

also investment in the underlying

transmission to ensure we have

sufficient capacity to cater for

current and future growth.

Limpopo is the first Vodacom

region to deploy overhanging

fibre using concrete poles. As more

customers obtain smartphones

and other smart devices, this

investment will ensure a richer

user experience.

What motivated your move from Managing Executive for

Gauteng to Managing Executive for Limpopo?

The opportunity for me was to manage a region end-to-end, covering

all aspects of our business. The exciting part that I am thoroughly

enjoying is the network side, learning lots about our technologies and

seeing the benefit to our customers. Limpopo has so many untouched

business opportunities.

You will find in Limpopo we do a couple of things a bit faster and

some things we do uniquely. For example, our fibre using concrete

poles along the side of the road. Now it’s cheaper to do, and faster. We

LIMPOPO BUSINESS 2016/17

70


INTERVIEW

literally lay the cables above ground as opposed to

digging trenches. We finished the first fibre ring and

now we are building three other rings. The demand

for capacity in Limpopo is off the charts and it is also

a migratory province, so for instance in December

millions of people cross the border to come home.

We have to ensure that customers returning from

urban areas in Gauteng have the same or better user

experience in rural areas. This is our goal even though

we have made much progress with both 3G and 4G

but the journey is not over, we still have work to do.

PEOPLE IN LIMPOPO

ARE STILL TALKING

What are some of the innovations you

have initiated?

Vodacom is in the process of rolling out our CARE

strategy, a programme that is going to transform the

way we serve our customers, so here in Limpopo we

have taken this to our retail stores as they deal with

our customers daily. Every one of our Red stores has

a process to record network complaints and then escalate

to the regional office. Customers can also email

us directly at limpopocustomercare@vodacom.co.za.

Where are the opportunities for you in

terms of the public sector?

Given that our public sector wants to be more

citizen-centric, we have a huge opportunity to use

technology to enhance the lives of our people but

also to make it easier for people to engage government.

If we take one area such as education,

Vodacom has already brought to market the 3G

tablet, which retails for under R1 000. In addition,

we have launched a free education portal. We have

also partnered with the Department of Education

to assist with managing the teacher centres around

the country.

In addition, Vodacom has invested in building the

police car of the future to showcase what we are able

to achieve using current technologies. We have also

developed and implemented an application that is

used by clinics and hospitals to manage their stock.

What insight do you have in terms of how

apps and cloud computing will increasingly

become a game changer in terms of

Limpopo’s development and growth?

At all levels of the province we must firstly embrace

both applications and cloud computing. I think we

should encourage the young people in our province

that have a passion for the development of applications.

Cloud computing allows businesses and

people in the province to access any content, even

though it may not reside in the province. Small-tomedium

businesses can have access to technologies

that will make their businesses more efficient. Any

business in Limpopo can now access the same tools

as any other company across the country. There is

one particular area (machine-to-machine) that is

not receiving sufficient attention in the province,

but we are working on changing this. This allows

businesses to become more efficient and, in certain

areas, even save money.

What did you learn from your role overseeing

the expansion of the distribution of

the M-Pesa mobile payments platform in

South Africa?

The role you are referring to was not just about

M-Pesa but also about balancing Vodacom’s distribution.

We embarked on an exercise to understand

what I refer to as the last mile of distribution, which

is spaza shops. The first learning was developing

71 LIMPOPO BUSINESS 2016/17


52296-Prepaid Funeral - A1 Poster 2_rev02.indd 1

2016/04/04 3:20 PM

formal relationships with owners of these

businesses, and this was not easy and was expensive.

You have to be ready with the product

and service you want to implement as keeping informal

outlets updated is no easy task… and often

they don’t understand the delays and so on.

Vodacom

Power to you

What is most exciting thing for you about

the big drive to add base stations and to

connect sites with high-speed service?

Adding more sites and increasing the performance

of our network provides immediate benefit to our

customers, and we see these benefits immediately.

The vision is to provide people of Limpopo with

the same level of connectivity as any other place

in South Africa.

What is the impact of this throughout the

townships in Limpopo?

We believe with certainty that our network overall

is superior. We have more sites than any of our competitors

and will continue to grow this. You can no

longer stereotype and assume that our customers

in the informal areas do not have access to high-end

devices. They are already using Facebook, Twitter,

WhatsApp and so on. In fact many of our customers

use Twitter to inform Vodacom about network

concerns they have from some of the rural areas.

What have you seen as the greatest

growth areas and major developments of

which you are most proud during your 11

years with Vodacom?

The growth of 2G to 4G has to be a highlight. We also

today market our own brand of Vodacom devices

across 3G and LTE. The overall growth of data is

amazing – people have adapted to new technologies

so quickly and are using applications to perform so

many things that they otherwise would not have

done, or would have done differently.

Insure against

funeral costs with

FUNERAL COVER

4 YOU AND YOUR

FAMILY

R7.50 per week using your

recharge value, covers you, your

partner and up to 5 children on

your trusted network.

Dial *111*187# and follow the prompts to get covered today.

This product is underwritten by Vodacom Life Assurance Company (RF) Limited and administered by Frank Financial Services (Pty) Ltd, an authorised f inancial services provider.

It has been a bit hard from a personal perspective

but in November I said to Shameel, our CEO,

when he visited the region, that, after 10 years with

Vodacom, this is probably the job with the most

levels of satisfaction.

The reason I feel this way is because I have almost

complete autonomy and also, having been around

for 10 years, my seniors know I will get stuff done.

Overall it’s been really fulfilling. Another great positive

is when you see the results – like any job, there’s

nothing that beats the feeling when you have put the

effort in, you’ve made your plan and implemented

your strategy and you see it come to fruition. I don’t

think anything beats that.

You have been with Vodacom for a long

time, so this opportunity must be a really

interesting challenge for you?

I’ve been with Vodacom for 11 years and they’ve

been pushing me to consider a regional position,

so this year I said to myself, “Let me give this a try.”

The network has a huge responsibility for

growth in Limpopo as it impacts on the

lives and businesses of so many people.

The vision for me is to leave Limpopo from a connectivity

perspective in a better place than when

I arrived. It is proven worldwide that access to

LIMPOPO BUSINESS 2016/17

72


INTERVIEW

the Internet has direct impact on improving the

lives of people. This is no different for Limpopo.

In addition to that, there are a number of

unique aspects to how we operate in Limpopo

and what our market needs. For example, data usage

is growing exponentially and we are still one

of the fastest-growing data regions for Vodacom,

even though we are coming off a smaller base.

However, what I find fascinating is that voice has

also been growing – so people in Limpopo are

still talking. It’s a good thing and a bad thing.

It’s good that people talk because we still make

money from it, although not at the rate that we

used to previously because there’s been so much

of a reduction in the pricing, which most customers

don’t believe but there has been, so that’s the

one thing. And then the second thing is that we

still have in the region of about four-million 2G

devices on the network. Now that represents an

opportunity – it’s an opportunity for customers

to have a better experience, so we no longer roll

out 2G –only base stations. Now we only roll out

2G and 3G. Vodacom is pushing customers towards

knowing the benefits of having improved

technology at their fingertips in terms of data

usage. We also educate customers on new 3G

and LTE devices that range in price from R299

to R1 399. You don’t have to go out and buy 2G

phones because you’re scared that someone is

stealing your data. Vodacom will make a substantial

investment in customer education this year.

How are you guys able to give work to

SMMEs and what are the opportunities

for businesses in Limpopo?

There are three angles to the business we manage

in Limpopo. The network is the underlying product,

Consumer business relates to our retail customers

and Enterprise business talks specifically to business

customers and the public sector. On the network

side there are tons of areas of opportunity, from the

company that supplies the diesel to the company

that has to survey the land and get permission from

the local municipality to enable us to build a site,

and the list goes on to areas such as maintenance.

One of the companies that constructs sites for us

in the region is called Boniswa, and it’s owned by

an African black woman so I’m very proud of that

relationship. She employs 150 people of which 75%

are from Polokwane and has been so great that

we’re one of the regions that made our accelerated

site roll-out target. When you have suppliers

who share your vision and passion to win then your

job becomes easier. We give a lot of work to small

and medium businesses and some of them are no

longer small; they may have started off small but

they’ve grown up and are flourishing, and that’s on

the network side. We have in excess of 1 000 sites

and 3.9-million customers to manage. Without the

many small-medium businesses partnering with us,

we would not be able to deliver to our customers.

IF COMPANIES LIKE

OURSELVES ARE

NOT PUTTING IN THE

INVESTMENTS IN RESOURCES

AND INFRASTRUCTURE NOW,

IN FIVE YEARS IT’S GOING TO

BE TOO LATE.

On the consumer side we have a massive distribution.

We have 50 franchise stores in the province besides

our national chain partners like PEP, Edgars, Game, etc.

One of our local franchisees, Mohabi Mahape, is

from Seshego. While he still owns the store there,

he also owns 11 other stores including the store

in the recently launched Mall of the South. So this

thing has spread its tentacles, but underneath this

whole Limpopo development is the fact that we are

starting to have an influence on the greater business

community. The company is also really committed

to small/medium enterprise growth and Vodacom

is really embracing the spirit of giving back to

73

LIMPOPO BUSINESS 2016/17


communities, not just

through our foundation work

but also through commercial

activities.

Limpopo has had challenges

with education over the

years. Is Vodacom doing

anything to assist?

We now offer a free education

portal, and this is so important

because education is one of the

areas which all of us have to focus

on if we want South Africa

to go forward. Limpopo has had

its challenges in the education

system, but we’re getting closer

to the schools and are engaging

with them, showing them solutions that are now

available. We can today run a simulated class environment

between two towns, two provinces, to

anywhere in the world, as when you buy a tablet or a

smartphone from Vodacom, you are given access to

our free education portal. You will be amazed how

many people still don’t know about this, so we’ve

got to spread this message about education. There

are also many solutions we’re working on in the area

of health, and for me those two areas are critical. We

are going to put a lot more effort in on the education

side because if there is one area that we can

make a difference in this province, it’s education.

What is your employment footprint?

Vodacom employs 70 people here in Limpopo. Our

50 franchise stores also employ people that reside in

Limpopo as well as the 100 field agents that work

across the province.

What excites you about the Limpopo story?

I think underlying the Limpopo story is that we can

only go forward from where we are. We also have

a young population who we think is capable of

making positive contributions to the province. We

also employ a few interns from the province at our

offices and when I see the impact these young

engineers are doing, I am confident that there is a

brighter tomorrow for Limpopo.

You also cannot ignore the investment being

made by government and the private sector –this

too is ensuring we continue to grow and harness

the natural resources we have. All this investment

and growth has a direct link to the investment in

telecommunications.

WE STILL HAVE IN THE

REGION OF FOUR-MILLION

DEVICES ON THE

NETWORK

We believe that in three to five years Limpopo is

going to be better, hence Vodacom has decided

to be in the province and continue to expand the

network. As for the four-million 2G devices, that’s another

major opportunity, but remember that people

are not going to go backward to the old Nokia 105,

they are going to leap forward. I am not saying those

phones won’t be around, but the new customers in

particular are going to leap forward and I think that,

through this improved experience for customers,

people will be able to do things more efficiently.

LIMPOPO BUSINESS 2016/17 74


INTERVIEW

things. There are lots of people

who are not yet using Facebook

and who have probably never

heard of WhatsApp, so for me the

upside is great.

WE’RE PUTTING IN REAL AND

PROPER INFRASTRUCTURE

BECAUSE WE BELIEVE IN

LIMPOPO AND WE ARE

READY TO PARTNER WITH

CONSUMERS AND BUSINESSES

Describe Limpopo’s shortto

medium-term growth

prospects?

Vodacom is going to continue to

invest some R220-million into the

network this year. We aim to cover

all people in the province with 3G

whilst we will also roll out LTE to

keys areas.

While Limpopo is not uniquely affected

by the national economic

pressures, we expect the investment

projects like Lephalale to

continue.

Our view of the province is

definitely not short term but we will this year seek

out innovative ways of expanding the network by

constructing sites that are less costly so we can do

more. We’re putting in real and proper infrastructure

because we believe in Limpopo and we are ready to

partner with consumers and businesses, so that we

make Limpopo a better place that can improve the

lives for the people of the province.

The next generation are going to realise that they

can sit anywhere and manage their business and

communicate with their clients and suppliers. They

don’t have to go to the tender office in the future

as these documents and the information would be

downloaded off a website, even though they are in

the middle of a rural district. You and I might take

such facilities for granted from where we are sitting

in the fancier parts of South Africa, yet in many other

places they have still not heard of some of these

CONTACT INFO

Physical address: 93 Biccard Street,

Polokwane 0699

Tel:+27 82 277 5000 | 082 277 5001

Web: www.vodacom.co.za

75

LIMPOPO BUSINESS 2016/17


OVERVIEW

Tourism

The Kruger National Park, which is partly situated in Limpopo, is a favourite destination for

domestic and foreign tourists.

SECTOR INSIGHT

The Marula Festival is growing

in popularity every year.

• Tourism contributes about

3% to South African GDP.

• Golf tourism is on the rise

in Limpopo.

Limpopo is home to two

World Heritage Sites,

Mapungubwe Heritage

Site and Makapans Valley.

The Kruger National Park is the undisputed jewel in Limpopo’s

tourism crown, but there are several other sectors that also offer

major opportunities for investment and employment.

The South African Golf Tourism Association says that up to 10% of

visitors to the country are attracted by its golf courses, and Limpopo’s

offering has been extended and improved in recent years. At the highend

of the luxury offering are the Zebula Golf Estate and Spa (west of

Bela-Bela) and the Legend Golf and Safari Resort, which has the single

most dramatic golf hole in the world: a par three where golfers tee

off from the top of a mountain and take aim at a green located on the

plateau below, shaped like the African continent.

The growth of the Marula Festival, held annually in February in

Phalaborwa, caters more to the local market, although guests from

Cuba, Venezuela, Mozambique and Namibia were spotted at the latest

gathering. At least 13 000 litres of marula beer were brewed by the 13

co-operatives that were on duty, and more than 14 000 people turned

up for the outdoor music concerts that were a feature of the festivities.

Limpopo Province has many varied tourism assets that include the

bare bushveld of the north, misty mountains in the central highlands,

hot springs, a unique cycad forest, great golf courses and the northern

Kruger National Park. There are numerous private game reserves and a

large number of provincial game

and nature reserves.

In 2015 the provincial government

committed itself to enhancing

the value of Limpopo’s

two World Heritage Sites,

Mapungubwe Heritage Site and

Makapans Valley. This is also a priority

programme in the National

Tourism Sector Strategy.

Adventurous visitors can

choose from off-road biking, hunting,

elephant rides and tough 4x4

trails. A vast array of different cultures

extend from the Rain Queen

and her people in the central districts,

to the myth-inspired art

of the Venda in the north, to the

bright geometric house designs

of the Ndebele people in the

Sekhukhune district.

Although most of the province’s

resorts and lodges remain

in private hands, the province

has three national parks, and

the provincial government runs

LIMPOPO BUSINESS 2016/17

76


OVERVIEW

54 nature reserves of different

types. The combined land area of

Limpopo’s national, provincial and

private game and nature reserves

is 3.6-million hectares.

According to the Limpopo

Premier’s office, the tourism

sector employs in the region of

22 414 people. The Limpopo

Tourism Agency is pursuing a

multi-national tourism strategy,

with the Limpopo-Zambezi

brand initiative one example of

new approaches to marketing the

province.

Hotels and casinos

Tsogo Sun runs the Garden Court

Polokwane, which has 180 rooms

ranging from executive suites to

family rooms.

The Protea Hotel group has

three hotels in the province. In

the capital city of Polokwane, the

Protea Hotel Landmark has 80

rooms and six conference venues,

while just outside the city is the

Protea Hotel Ranch Resort, where

guests can walk with lions. The

hotel is on a 1 000-hectare nature

conservancy and specialises in catering

for weddings. In Mokopane,

the Protea Hotel The Park has 125

rooms and can cater for up to 400

conference delegates. The threestar

hotel recently added 25 selfcatering

units.

The Rezidor Hotel Group will

open a Park Inn by Radisson in

Polokwane in 2016. This is the

group’s third hotel in South Africa,

with the others located in Cape

Town and Johannesburg.

The new hotel will be very

close to the Peter Mokaba sports

complex and near the local golf course. The Rezidor Hotel Group intends

opening hotels in each of South Africa’s nine provincial capitals and the

biggest economic centres.

The Fusion Boutique Hotel in the provincial capital offers five-star

quality in 30 en-suite rooms and two exclusive suites. Sun International

runs the Meropa Casino and Entertainment World near Polokwane. In

the province’s northern regions at Thohoyandou, there is the Khoroni

Hotel, Casino and Convention Resort. This is a Peermont venture and

there is a three-star Peermont Metcourt Hotel in the complex.

Three new casino licences have recently been awarded in Limpopo.

One of the recipients was Peermont Global Resorts for the official launch

and operation of the Thaba Moshate Casino, Hotel and Conference

Centre in the Greater Tubatse Local Municipality. During construction

751 people were employed and a further 180 permanent jobs are

expected when the casino is fully operational.

There are now 237 limited pay-out gambling machines in the province,

and licences of one sort or another generated R50-million for the

provincial government in 2015.

Nature

The National Department of Tourism is facilitating the upgrade of a

lodge in the Vhembe District. Wisani Lodge is about 20 minutes drive

from the Punda Maria gate of the Kruger National Park and is in an

area particularly rich in birdlife. This community-owned project is in

need of a private investor with about R10-million to invest in upgrading

the lodge’s six chalets and adding another 14. A master plan and

environmental impact assessment report already exists.

A number of resorts in a variety of climatic regions fall under the

control of the provincial body branded as Limpopo Wildlife Resorts.

77 LIMPOPO BUSINESS 2016/17


OVERVIEW

Fourteen of the province’s resorts have been targeted for refurbishment,

creating 320 temporary and 120 permanent jobs. Annual revenue

of R10-million is expected to be gained from these revamped resorts,

which include these facilities in the Waterberg:

• Nylsvley Birding Lodge, a registered RAMSAR wetland area

• D’nyala Game Lodge

• Mokolo Dam

• Nwanedi Resort (Vhembe Region)

• Modjadji Nature Resort (Mopani Region)

• Blouberg Nature Reserve (Capricorn Region)

• Tambotie River Lodge (Sekhukhune Region)

Private game reserves, resorts and lodges

The area adjacent to the Kruger National Park is particularly rich in

private game reserves, some of which are regarded as among the

finest luxury tourist offerings in the world. The Sabi Sands Game

Reserve has several accommodation options within its 65 000 hectares,

ranging from the luxurious to the ultra-luxurious. Like the Manyaleti

Game Reserve to its north, Sabi Sands effectively forms the western

boundary of the Kruger Park, with animals free to roam in and out of

the private reserves.

Legend Lodges, Hotels and Resorts has three properties in Limpopo.

Both Entabeni Safari Lodges and the Legend Golf & Safari Resort are

located within the Entabeni Safari Conservancy in the Waterberg district.

The exclusive Jackalberry Lodge (16 guests at a time) lies to the

east within the Thornybush Game Reserve which is a reserve of 10 500

hectares of pristine bush just outside the Kruger National Park.

Forever Resorts encompass the warm water springs of the southern

Waterberg (Warmbaths at Bela-Bela), the exotic baobab trees of the

north (Tshipise Resort), the adventurous offerings of the Blyde River

Canyon (Swadini Resort) and the true bushveld experience on the edge

of the Kruger National Park (Phalaborwa Safari Park at Phalaborwa Gate).

All but the latter of these resorts have conference facilities ranging from

130 to 700 delegates.

Tourism routes and clusters

The Bush to Beach Tourism Route covers sites and sights between

Phalaborwa and the east coast of Mozambique, an example of

Limpopo’s successful partnership with a neighbouring country. A

grant of more than R600 000 from the Limpopo Local Economic

Development programme aims to link the poorer rural communities

along the route with the more mainstream economic nodes. Open

Africa is the lead agent in developing community tourism.

From game reserves in Limpopo

(including the Kruger National

Park) to the beaches of Xai-Xai in

Mozambique, the route has been

supported by private operators

and investors and therefore is

able to offer excellent products

and services to complement the

natural scenery.

The Bush to Beach

Tourism Route is one of several

such routes in the province,

including:

• Kruger to Canyon, linking

Phalaborwa to the Blyde

River Canyon through the

Kruger National Park

• Seraki Blouberg, in the

Blouberg mountain range, including

two nature reserves

and encompassing the land

of the 160 000 people living

in 117 traditional settlements

• Land of Legends, in the land

of the VhaVenda (northern

Limpopo). Thohoyandou is

the hub for exploring the area

around the Soutpansberg

mountain range that contains

more than 500 species

of trees. Features include the

sacred sites of Lake Fundudzi,

the Thathe Vondo Forest

and the Phiphidi Waterfall. A

3 000-year-old baobab, 43

metres around, is found near

Sagole Spa.

Other tourism routes in the

province include: the African

Ivory Route, the Golf Route,

the Limpopo Valley Route,

the Mapungubwe Route, the

Ribolla Open Africa Route, the

Soutpansberg-Limpopo Birding

Route, the Valley of the Olifant

Route and the Waterberg

Biosphere Experience.

LIMPOPO BUSINESS 2016/17

78


OVERVIEW

Outdoor pursuits

National parks: The Kruger

National Park covers nearly

20 000 square kilometres and attracts

more than a million visitors

annually. It has six ecosystems,

1 982 species of plants, 517 species

of birds and 147 species of

mammals – including each of the

“Big Five”: lion, leopard, African

elephant, African buffalo and

rhinoceros.

The Marakele National Park

is situated on the Waterberg escarpment

in the south-west of

the province, relatively near to

Gauteng. The Sterkstroom River

runs through it and it is home to

elephant, rhino and rare vultures.

Adventure tourism: The

mountains of the Waterberg, the

Soutpansberg and the northern

reaches of the Drakensberg offer

opportunities for abseiling, caving,

kloofing and rock-climbing.

White-water rafting and tubing

are other popular activities, especially

in the Limpopo Valley and

in the Olifants and Blyde canyons

in the east of the province.

Mountain biking is a favourite

pastime in the Magoebaskloof

area, while quad-biking can

be found in several parts of

the province.

Hunting: The centre of hunting is the north-western town of Lephalale,

with other northern towns like Alldays, Vivo, Musina and Dendron near

to private game farms on which hunting is undertaken. This lucrative

activity is strictly controlled by the Professional Hunters’ Association

(PHA), with certain restrictions in place to protect the long-term future

of the environment. The PHA estimated the value of the industry in 2010

at R7.6-billion. A Thabazimbi game auction in 2012 achieved a turnover

of R69.8-million, but the individual price achieved in 2009 for a single

buffalo bull (R3.4-million) is an indication of the potential of this market.

Birding: The Blouberg Nature Reserve is an excellent site for Cape

Vultures, containing one of the largest breeding colonies. Four birding

routes criss-cross the province, illustrating the diversity of birds

found in the province’s varied terrain. More than 600 bird species have

been recorded.

ANNUAL EVENTS

Limpopo Marula Festival, Phalaborwa (February)

Polokwane Show and Music Festival (March)

Kiwifruit Festival, Magoebaskloof (April)

Zion Christian Church gathering, Moria (Easter)

Thabazimbi Tourism & Game Expo. Potato Festival, Vivo (May)

Ellisras Bushveld Festival. Polokwane Arts Festival (June)

Musina Show (July)

Oppikoppi, music festival, Northam. Trout Festival, Haenertsburg

(August)

Magoebaskloof Spring Festival (September)

Biltong Festival, Mokopane (October)

Mapungubwe Arts and Cultural Festival, Polokwane (December)

ONLINE RESOURCES

Limpopo Department of Economic Development,

Environment and Tourism: www.ledet.gov.za

Limpopo Tourism and Parks: www.golimpopo.com

Limpopo Wildlife Resorts: www.lwr.co.za

Open Africa. www.openafrica.org

Polokwane Show: www.polokwaneshow.co.za

South African Golf Tourism Association: www.sagta.co.za

South African National Parks: www.sanparks.co.za

South African Tourism: www.southafrica.net

Tourism Enterprise Partnership:

www.sahiddentreasures.co.za

Tourism Grading Council of South Africa:

www.tourismgrading.co.za

79 LIMPOPO BUSINESS 2016/17


OVERVIEW

Banking and financial services

Limpopo is a rural province and so the challenge of getting formal banking services to the

population are greater than in most other provinces.

SECTOR INSIGHT

Farmers can get access to finance

through NTK and Afgri.

• Capitec has massively

expanded its Limpopo

branch network.

• Most of South Africa’s

banks have linked up with

cellphone companies.

The “Big Four” banks–Nedbank, Standard Bank, Absa and FNB

are active in Limpopo province.

Relative newcomer in the retail banking sector, Capitec, seems

to be working harder than most on building infrastructure in

Limpopo. In 2012 the bank had 40 branches in the province; as of March

2016 there were 59 branches/ATMS. This included the small town of

Swartklip (population 3 517, according to Wikipedia), although there

is a mine in the area. Capitec is clearly not convinced that cellphones

are the only way to increase its client base.

In the same month Capitec came out top of the world in a new

global banking survey (Bank Quality Ratings) compiled by international

banking advisory group Lafferty. In 2015 the bank had 6.7-million

clients, up from 3.7-million just three years earlier, and it has 11 000

employees.

The two most active agricultural companies in Limpopo are both

registered to participate in the financial sector. NTK, a subsidiary of the

Free State-based VKB, has access to lending for farmers and insurance

products. Afgri offers the same services under the brand Unigro, and it

has another service called Gro Capital Financial Services, which offers

more sophisticated products such as trade finance, foreign exchange

and currency and interest rate hedging.

Limpopo has its own bank,

VBS Mutual Bank, which grew

out of the Venda Building Society

and operates mainly in the northern

parts of the province. The

Public Investment Corporation

holds 34% equity. The head office

is in Makhado and the credit

department operates out of

Thohoyandou.

Reaching the unbanked

Finscope’s 2014 survey of South

African banking and financial

surveys shows that between

2004 and 2014 a remarkable

eight-million people were connected

to the financial system

in some way. Overall, the

“financially included” reached

31.4-million (up from 17.7-million

in 2004). In a category called

“formally served” which includes

services other than formal banks

LIMPOPO BUSINESS 2016/17

80


OVERVIEW

with branch networks, the percentage

of South Africans so

served grew from 50% to 80%.

In the “banked” category (more

traditional but including new devices),

the percentage grew from

46% to 75%.

With cellphone access in that

time having grown from 42% to

90%, one would expect that to

have been the main reason for

this growth, but that is not the

case. James Francis, writing for

Brainstorm, points out that of

the nine-million South Africans

who use mobile money, only 3%

fall in the LSM 1-4 category (ie,

poorer members of the population).

He writes that “mobile

money in South Africa has been

catastrophic”. However, the South

African banking sector’s excellent

infrastructure (plus the efforts of

the Big Four and Capitec to reach

out to new markets) has made up

for this failure.

Banks and cellphone companies

continue to believe that

they need one another. Vodacom

and Bidvest are working on the

mobile money M-Pesa scheme,

Standard Bank and MTN collaborate

on mobile banking and

there have been recent moves

linking Old Mutual and Telkom,

and Sanlam and African Bank.

(The “good” African Bank that is,

with the bank having been split

up into two entities after taking

on too much unsecured debt).

Sifiso Skenjana has noted in the

Sunday Times that African Bank

still has 400 branches and 150 000

people per month going through

these branches, so this represents

a huge potential market for a

financial services company.

Telkom is apparently hoping that its link-up with Old Mutual will prove

attractive to customers wanting funeral insurance.

Skenjana also points out that South Africa has a ‘stokvel’ (savings club)

market valued at R44-billion, and Sanlam recently launched new products

aimed at tapping into that market.

Among other recent innovations designed to reach the unbanked

were Teba Bank’s initiative that allows customers to deposit money at

supermarkets, Pick n Pay Go Banking (a division of Nedbank), the fact that

70% of Absa’s new ATMs (400 in one year) were visited in poorer areas and

the launch of two mobile banks, FNB also created mobile branches and

most of Standard Bank’s new sites were planned for townships (Finscope).

Absa’s partnership with Thumbzup allows shops to accept card payments

with smartphones and tablets. Introduced in 2012, the device

turns phones into terminals. In the same year, Absa took over Edcon’s

card portfolio, massively increasing the bank’s reach (Edcon brands

include Edgars, CNA and Jet).

Absa’s Entry Level and Inclusive Banking (Elib) branches have proved

popular, accounting for an increasingly high percentage of the bank’s

loans, despite still representing quite a small number of actual branches.

Nedbank has Approve-it, which allows customers to accept or

reject an Internet transaction by cellphone.

FNB has a wide range of cellphone-banking options and a Facebook

application whereby cellphone vouchers can be posted on the socialnetworking

site. The eWallet application converts the voucher into

cash or airtime.

Standard Bank’s community-banking initiative offers a low-cost

cellphone-banking service. Retailers can act as agents for the bank,

even in remote rural areas. Shops such as Shoprite, Pep and Spar are

connected, as are certain spazas.

Ubank is owned by a trust that is managed by the Chamber of

Mines and the National Union of Mineworkers (NUM). It has about 100

branches and an important presence in Limpopo because of its strong

focus on the mining sector. Ubank has about half-a-million clients.

ONLINE RESOURCES

Banking Association South Africa: www.banking.org.za

Financial Services Board: www.fsb.co.za

Institute of Bankers in South Africa: www.iob.co.za

National Credit Regulator: www.ncr.org.za

Office of the Auditor-General of South Africa: www.agsa.co.za

Ombudsman for Banking Services: www.obssa.co.za

Public Investment Corporation: www.pic.gov.za

81 LIMPOPO BUSINESS 2016/17


OVERVIEW

Development finance and

SMME support

Mining supply chains can boost SMMEs in Limpopo.

SECTOR INSIGHT

Seda’s jewellery and biogas

incubators are supporting

entrepreneurship.

• The South African Bureau

of Standards (SABS) is

helping small business

develop good products.

• Anglo American’s Zimele

initiative has six funds to

support SMMEs.

There are a number of bodies that support small, medium

and micro enterprises in Limpopo, and development-finance

institutions are making it easier for new businesses to start up.

The Small Enterprise Development Agency (Seda) is a

subsidiary of the National Department of Trade and Industry (dti) and

is one of the most active agencies in supporting entrepreneurs. Seda is

not a financial agency, focussing rather on training and administrative

support, although the agency will help small-medium and microenterprises

(SMME) in getting in touch with financial bodies.

The Seda Limpopo Jewellery Incubator (SLJI) develops entrepreneurship

among jewellers in Limpopo. In the south-east of the province

the Biofuels Incubator promotes skills in that important sector.

In 2014/15, Seda trained 696 business people in skills they need and

the support for the national incubator programme created 1 963 jobs.

Seda has initiated a national programme designed to make cooperatives

and jointly owned enterprises stronger. As part of the

Cooperatives and Community Public Private Partnership (CPPP)

programme, Seda is supporting a project in Tarentaal.

A new initiative on the part of the Limpopo Department of

Economic Development, Environment and Tourism (LEDET) trains

women in working with and developing products for the textile and

clothing sector. The aim is to see the establishment of home-based

enterprises in rural areas and townships, as well as co-operatives.

The construction by the provincial government of market stalls

is aimed at supporting small-scale farmers and traders. Market stalls

have been erected in Mopani

District and will be put up in Elias

Motsoaledi Local Municipality

in the Sekhukhune District and

Molemole Local Municipality in

the Capricorn District.

In 2016 the national

Department of Small Business

Development will jointly host a

Limpopo Province SMME summit,

which will also deal with issues relating

to co-operatives. One of the

best ways of supporting SMMEs

in Limpopo is through the supply

chain for the province’s mines.

The provincial Premier has challenged

mines to achieve a 20%

SMME procurement target.

A private initiative that has

used the supply chain to extraordinarily

good effect in creating

employment is Anglo American’s

Zimele. It has launched more

than 1 800 businesses with a

LIMPOPO BUSINESS 2016/17

82


OVERVIEW

combined annual turnover approaching

R6-billion and employment

numbers rising to 38 000.

Zimele has established 29 small

business hubs in areas such as

Mokopane and Burgersfort.

Quality issues in the SMME

sector in Limpopo are being

addressed through the support

of the South African Bureau of

Standards (SABS), which has undertaken

to help SMMEs ensure

that their products are up to

scratch. Similarly, Productivity SA

is involved in Limpopo: in 2014

Ximambane Brickmaking Cooperative

won the Productivity

SA provincial award.

The city of Polokwane was

South Africa’s fastest-growing

urban area between 2005 and

2010, with a growth rate that

was higher than 5%. The South

African Cities Network study

that came to this conclusion also

noted that further research was

needed to establish the reasons,

but a growing economy is a good

incubator for entrepreneurship.

The services sector inevitably

grows as cities grow.

According to research done

by Absa, SMMEs were supporting

60% of the country’s employable

population in 2011, against a

figure of just 18% in 1998.

Finance

The LEDET approved about R20-

million in 2014 in financing youth

businesses in the province. In

presenting his 2015/16 budget,

The Limpopo MEC for Economic

Development, Environment

and Tourism, Seapora Sekoati,

pledged R30-million to support co-operatives and an additional

R80-million for SMME debt and equity financing and R10-million for

non-financial support. This programme is a joint venture with various

national state-owned enterprises, which all have a presence in

Limpopo: the Small Enterprise Development Agency (an allocation

of R10.3-million for non-financial support to SMMEs and cooperatives);

Small Enterprise Finance Agency (R45-million for SMME financial

support); and the Industrial Development Corporation, (which normally

spends about R400-million in Limpopo). The IDC’s annual overall

budget for financing is R20-billion.

The IDC often takes shareholdings in companies to provide the

capital required for these companies to scale up production or to offer

new products. Some 48% of the 45 900 jobs created or saved by IDC

initiatives are created in rural areas.

Limpopo projects attracting the funding support of the IDC include

an Nguni-cattle breeding scheme, a new hospital in Lebowakgomo,

the development of a ferrochrome smelter and a facility for making

coking coal briquettes.

The Development Bank of Southern Africa (DBSA) is another major

funder of public projects. It announced in 2012 that it planned to invest

heavily in public health (R20-billion), water, sanitation and energy

(R40-billion) and transport infrastructure (between R30-billion and

R50-billion).

All of the major banks have SMME offerings. Absa Bank’s SME Fund is

driven by its Small Business Division, Standard Bank runs a Community

Investment Fund and Nedbank offers an enterprise development

product for businesses with turnovers of up to R35-million. The commercial

division of FNB has sections that deal with Start-up Funding

and BEE Funding.

Business Partners disbursed R966.2-million in SME funding in the

2015/16 financial year.

ONLINE RESOURCES

Business Partners: www.businesspartners.co.za

Development Bank of Southern Africa: www.dbsa.org

Industrial Development Corporation: www.idc.co.za

Land and Agricultural Development Bank of South Africa:

www.landbank.co.za

Limpopo Department of Economic Development,

Environment and Tourism: www.ledet.gov.za

National Empowerment Fund: www.nefcorp.co.za

Small Enterprise Development Agency: www.seda.org.za

Small Enterprise Finance Agency: www.sefa.co.za

Zimele: www.anglozimele.co.za

83 LIMPOPO BUSINESS 2016/17


INTERVIEW

Seda Limpopo

Koenie Slabbert is the Provincial Manager for Seda

Limpopo, which provides business development

and support services for small enterprises.

Koenie Slabbert

BIOGRAPHY

Koenie Slabbert is the Provincial

Manager of Seda Limpopo,

having previously been

the Chief Operations Officer

of Seda’s Enterprise Development

Division. His previous

work experience includes being

responsible for implementing

the South African government’s

national manufacturing

programme in Limpopo, as well

as being the General Manager

and an Industrial Advisor for

Limac, assisting and developing

small and medium enterprises

in the manufacturing sector in

Limpopo province.

What is Seda Limpopo’s competitive advantage for your

target market?

The scope of our work is non-financial support in all sectors through

the entire business life-cycle (360-degree). Our competitive advantage

is our ability to comprehensively diagnose businesses and ideas in

order to provide holistic guidance towards sustainability and growth

interventions in all stages of business, from informal, survivalist, micro,

small to medium businesses. Secondly, to bring expertise through

seasoned professionals to enterprises which, under normal circumstances,

would not have afforded or realised the value thereof. Seda

provides business development services to small and medium enterprises

throughout the province, with a network of branch offices in

all five districts of the province, in partnership with other role-players.

We also implement programmes targeted at business development

in areas prioritised by government.

In what ways does Seda Limpopo help clients with their

specific business needs and objectives?

To assist our clients, we have created a number of key programmes

that are tailored to guiding smaller businesses through their individual

problem areas as well as giving them support for growth and

advancement.

For instance, our Franchise Support Programme promotes franchising

businesses to new and current entrepreneurs, offering them advice

about potential franchisee and franchisor opportunities, while our

Export Development Programme plays a key role in helping to develop

export-ready small enterprises that are globally competetive and are

thus able to grow local as well as international markets.

We have a Trade Fair Programme that forms part of a wider network,

and this is aimed at helping local small and medium enterprises to

participate in global trade.

Our Seda Technology Programme seeks to stimulate economic

growth and development through facilitating technology transfer, in

addition to increasing the access to and use of technologies, as well

as offering technical support to small enterprises.

LIMPOPO BUSINESS 2016/17

84


INTERVIEW

The Co-operatives and Community Public Private

Partnerships (Co-ops and CPPP) Programme promotes

the establishment and growth of viable,

sustainable co-operatives and collectively owned

enterprises, while the Women Owned Enterprise

Development Programme plays a role in developing

women-owned enterprises through a number

of capacity-building programmes.

The EMPRETEC Programme promotes the use

of entrepreneurial competences, while the BESD

Programme’s approach utilises one-on-one coaching

as an innovative methodology to facilitate

and reinforce business skills transfer and developmental

support to emerging entrepreneurs. The

latter programme is conducted by formerly unemployed

individuals and especially trained so-called

Entrepreneurial Development Practitioners (EDPs).

What individuals or organisations should

contact Seda Limpopo for assistance?

Seda is able to assist anyone with innovative ideas

who wants to start a business in any sector. In particular

we give preference to value-adding ventures

(manufacturing and processing), as well as wholesalers

and retailers who have the necessary market

access that can enable them to take locally produced

content nationally and/or internationally. Agriculture

and agro-processing are two other sectors on which

we place a high priority.

What challenges do businesses in the

province of Limpopo face?

The main challenge we have noticed is in terms of

access to markets, as this is made more difficult as

a result of competitveness that arises due to the

distance we are located away from major markets

as well as suppliers. Raw material (input) and distribution

costs greatly increase in comparison with

businesses in the metros (closer to sources/markets).

Skills/knowledge management, especially in the

agricultural sector: an example of this is land reform

initiatives that have not gone to plan as well as skills

transfers that just did not happen at the scale and/

or pace originally envisaged.

Access to funding is a challenge as the requirements

to qualify for funding are very tight, whether

this be from DFIs or private banking.

What are the major opportunities in the

province for SMMEs?

• Exporting of primary produce

• Value-adding through agro-processing initiatives

85 LIMPOPO BUSINESS 2016/17


INTERVIEW

Any advice or insight for co-operatives

operating (or looking to operate) in

Limpopo?

• That they should be run as a business and not

as an NPO

• Keep your operation lean as large groups have

too many dynamics to manage which can result

in a lot of conflict

• When forming/establishing a co-operative, look

to include value-adding members

• Secondary co-op formations can assist with highlevel,

focused negotiations with the market and

suppliers, strengthening production capabilities

through resource and experience sharing (bulk

buying of inputs, etc)

The Co-operatives and CPPP Programme supports

non-traditional organisational forms of business

and focuses on creating opportunities in rural

areas. Seda’s Co-operatives and Community Public

Private Partnership Programme (Co-ops and CPPP)

was formed at the end of 2008 and combines the

previous Sector Development and Co-operatives

Programme and the revived CPPP Programme

The programme supports non-traditional enterprise

organisational forms with a special focus on

rural areas and uses of local resources. By creating

the programme, Seda’s ability to satisfy the needs

of rural clients is enhanced. The programme focuses

on the following sectors:

• Agri-business

• Cultural tourism

• Mining and mineral beneficiation

• Trading and auxiliary services

The vision was to provide leadership in the establishment

in addition to growth of viable, sustainable

co-operatives and collectively owned enterprises

in various sectors, and to facilitate their successful

participation in the economy.

Purpose

• Promote the establishment of co-operatives and

collectively owned enterprises, in partnership

with other stakeholders

• Establish linkages with other government initiatives

that support co-operatives and collectively

owned enterprises

• Increase access by co-operatives and collectively

owned enterprises to information, business skills

and markets

• Foster a culture of cooperation among co-operative

beneficiaries

Offerings

• Development of a viable business plan

• Development of marketing and feasibility studies

• Due diligence

• Capacity building

• Facilitation of access to markets

• Facilitation of access to finance

• Promoting value additions

• Ensure compliance to statutory requirements

• Conduct market research

How has Seda Limpopo made it easier for

SMMEs to utilise your services?

SMMEs have ready access to our services through

our BESD Programme as well as our many satellite

offices. We have also taken the innovative step

of deciding that all of our Business Advisors (BAs)

are certified on the Growth Wheel International, as

this will ensure that Business Advisors will not just

be comparing themselves with Business Advisors

LIMPOPO BUSINESS 2016

86


Seda contacts

Provincial Office

Koenie Slabbert - Provincial Manager

Tel: +27 15 287 2940

Fax: +27 15 297 4022

Email: kslabbert@seda.org.za

2nd Floor Suite 6, Maneo Building, 73 Biccard Street, Polokwane 0700

Postnet Suite 32 Private Bag X 9307 Polokwane 0700

Seda Vhembe Branch

Mr Marcus Mukumela - Branch Manager

Tel: +27 15 960 8700

Fax: 086 634 8964

Email: mmukumela@seda.org.za

Old Mutual Building, Old Group Scheme Offices, Mphephu Road, Thohoyandou 7950

Seda Capricorn Branch

Mr Peter Maredi - Branch Manager

Tel: +27 15 290 8720

Fax: +27 15 290 8736

Email: pmaredi@seda.org.za

1st Floor Pharmarama Building, 68 Hans van Rensburg Street, Polokwane 0699

Seda Waterberg Branch

Mr Steve Botha - Branch Manager

Tel: +27 15 492 9600

Fax: +27 15 491 7361

Email: sbotha@seda.org.za

Old Nedbank Building, 40 Retief Street, Mokopane

Seda Mopani Branch

Martin Rafferty - Acting Branch Manager

Tel: +27 15 306 6400

Fax: +27 15 307 2233

Email: mrafferty@seda.org.za

27 Peace Street, 1st Floor, Prosperitas Building, Tzaneen 0850

Seda Sekhukhune Branch

Mr Sabelo Ntshangase - Branch Manager

Tel: +27 13 262 9430

Email: sntshangase@seda.org.za

Bareki Mall, Shop No. 20B, Cnr Chris Wild and Van Riebeek Street, Groblersdal 0407

For more information contact us at: 015 287 2940 or visit our website: www.seda.org.za

TOGETHER ADVANCING SMALL ENTERPRISE DEVELOPMENT


INTERVIEW

internationally but they will also be able to interact

and link with the best Business Advisors in the

world, who are certified users of the tool. One of the

most important aspects of the Growth Wheel is the

360-degree screening, as this helps our Advisors to

quickly create an overview of all the challenges that

might be relevant to the entrepreneur in question.

The Advisor and the entrepreneur will be able to

draw up a visual profile of how the business is doing,

and this will assist them in identifying future growth

opportunities and obstacles.

The framework will be able to assist the parties to

ascertain where they are in terms of their business

development and provide a roadmap for where they

could be going. The Advisor and the entrepreneur

will be able to create a common language and offer

ideas for new directions. This process will inspire

entrepreneurs to set their agenda in terms of which

decisions to make.

The worksheets will help them to make decisions

faster because they contain graphic checklists

to quickly understand alternative options so they

can get ideas for new ones. The 30 – 60 – 90 day

plan is the tool that is ideal for entrepreneurs to

keep track of their decisions and actions. It will

also help the BA to keep track of actions that the

entrepreneur had to undertake. The entrepreneur

will then be able to focus on getting things done

and who should do it.

Can you share some examples of successful

SMMEs that Seda Limpopo has

helped over the past few years?

The greatest impact we have had has been in terms

of increased turnover and net profit. We don’t aim

to make an impression in terms of employment opportunities,

as most businesses always target minimum

labour in order to reduce production costs and

increase efficiency.

Companies we have had particular success

with include PCS (Polokwane Chemical Supplies),

Goodlife, Rosika Trading, Tshedza Concrete Art,

Sasekisani Co-operative, Mofamadi Bed and

Breakfast, TKY Trading, Mogalaletsi Trading, Twins

Trailers, Limpopo Ceramics, Pavecon, Bellstein

Trading and Are Hudisaneng Agricultural Primary

Co-operative.

What message would you like to send to

more established businesses and investors

in terms of how they can help to support

SMMEs and what the long-term benefits

of offering such support are for the

regional and national economy?

It is very important to assist SMMEs where possible

by providing access to markets. I would also

recommend that it can be wise to invest in SMMEs

as innovation usually forms the basis of their business.

It is also a good idea to partner with Seda for

development of our current BEE suppliers.

Seda, in collaboration with the Department of

Small Business Development (DSBD), has embarked

on the Gazelles Programme, which seeks to change

the landscape in the SMME sector of South Africa.

Gazelles are found in all sectors of the economy

and a common characteristic is that they are usually

fast-growing entities. This growth occurs at a

specific phase in a businesses development, after

which they revert to the industry norm in terms

of their continued growth, although this does

not preclude the possibility of future fast growth.

While these fast-growing companies are known as

Gazelles, researchers also identified the “elephants”

which are the big and ponderous companies that

do not necessarily employ much (if any) staff. Lastly,

researchers also speak of “mice”, which are the small

and micro companies that will either not grow or

whose owner-managers are not necessarily growth

driven. For the purpose of this programme, South

African “Gazelles” will be formal entities that grow

exponentially and have an annual turnover of at least

R1-million and are subject to definitions in terms

of the Small Business Act of 1995 as amended.

CONTACT INFO

Physical address: Suite Number 6,

2nd Floor, Maneo Building, 73 Biccard Street,

Polokwane 0699

Tel: +27 15 287 2940

Fax: +27 15 297 4022

Website: www.seda.org.za

LIMPOPO BUSINESS 2016

88


Global Africa Network

Promoting business, trade and investment in SA’s nine provinces

www.gan.co.za

www.southafricanbusiness.co.za

www.easterncapebusiness.co.za

www.freestatebusiness.co.za

www.gautengcompanies.co.za

www.kwazulunatalbusiness.co.za

www.limpopobusiness.co.za

www.mpumalangabusiness.co.za

www.northerncapebusiness.co.za

www.northwestbusiness.co.za

www.westerncapebusiness.co.za

Tel 021 657 6200

Email sales@gan.co.za

Web www.gan.co.za


PROFILE

Polokwane Chamber

of Business

The Chamber seeks to support and develop local businesses

and encourage investment in the city.

Vision

To be the home that advocates

the voice of business.

Mission

• To create value for members.

• To unlock business opportunities

for members.

• To facilitate a platform for best

business practice.

• To promote sound governance

principles by maintaining high

business ethics.

• To encourage socially responsible

corporate citizens in business.

• To provide a platform for dialogue and partnership

within business and public sector.

Policy

The policy of the chamber is to, without reference

to colour of skin, race, gender, culture or religious

conviction:

• Attend to the interests of its members as an

a-political, non-racial organisation

• Effect, maintain and promote an optimum free

market system in a predominantly capitalist

system

• Promote and protect free enterprise and protect

the interests of its members as business persons

and to act as a representative for its members

Strategy

The overall strategy for 2016 is to:

Polokwane Chamber of Business 2016 Exco.

• Reposition the Chamber as a respected contributor

to the Limpopo economy through active

engagement of key stakeholders for the promotion

of Chamber interests and benefits for its

members.

• Enhance value-add to its members through

effective networking opportunities.

• Engage on pertinent business issues within the

province.

• Enhance closer working relations between the

Chamber and its members and stakeholders.

CONTACT INFO

Physical address: No 47, 19th Industria

Street, Polokwane

Tel: +27 15 297 8057

Fax: 086 513 2644 / 015 297 8058

Email: admin@pcob.co.za

Website: www.pcob.co.za

LIMPOPO BUSINESS 2016/17

90


Education and training

South Africa’s newest medical school opened in Limpopo in 2016.

OVERVIEW

SECTOR INSIGHT

A new tool, dye and mouldmakers

programme has been

launched.

Limpopo’s mining companies

run training

programmes.

• Students can study

Nature Management at

Lephalale TVET College.

A

total of 60 students proudly enrolled at the School of Medicine

at Turfloop in January 2016. This forms part of the reconstituted

Faculty of Health Sciences of the University of Limpopo.

The decision to have this medical school (the country’s ninth,

and the first to be opened in the democratic era), reverses the merger

of the Turfloop and Medunsa campuses of a decade ago.

The curriculum for the undergraduate programme has been approved

by the Health Professions Council of South Africa (HPCSA) and

the Council for Higher Education accrediting committee. Post-graduate

medical students will continue to study in Polokwane. The national

Department of Health has invested R10-million in bursaries to assist the

first intake of students and enrolment is expected to rise to 80 in 2016.

The Nedbank Chair of Accounting was an important part of the

University of Limpopo’s strategy to get national accreditation for its

accounting classes, which has been achieved. Other major contributions

came from:

• FASSET, the financial sector SETA (R10-million in bursaries)

• Absa Bank, R3-million in staff salary subventions

• Thuthuka Project supported by the National Skills Fund, R97-million

The University of Venda for Science and Technology (Univen) is situated

in Thohoyandou, in the far north-eastern part of the province. Univen

has eight schools, with Environmental Sciences, Agriculture and Rural

Development and Forestry illustrating the practical emphasis of the

institution.

The School of Environmental

Sciences is planning to establish a

mining-engineering programme.

The University of South Africa

(Unisa), which mostly has correspondence

students, has a regional

support centre in Polokwane and

agencies at Makhado and Giyani.

The Turfloop Graduate

School of Leadership is based

in Edupark, Polokwane, and

offers three masters degrees.

These are the Master of Business

Administration (MBA), the Master

of Public Administration (MPA)

and the Master of Development

(MDev). There are also short-term

management certificate courses,

which range in duration from six

to 12 months.

The Development Facilitation

and Training Institute (DevFTI) is

housed in the Graduate School

of Leadership. DevFTI has an outward

focus, with training provided

for NGOs and government departments

in various parts of Africa.

91 LIMPOPO BUSINESS 2016/17


OVERVIEW

Training

National and provincial government

are investing heavily in

training. The Limpopo Provincial

Government has a national

pilot project in training for Tool,

Dye and Mould-Making. In 2015

Limpopo’s first 20 trainees qualified.

There is a plan to establish a

Manufacturing Support Centre to

make sure that the right skills are

being taught to support industry.

Involved parties will be the

Limpopo Tooling Initiative Advisory

Board, the Technology Information

Agency and universities.

During 2014/15 the provincial

government made R12-million

available for internships, bursaries

and learnerships. The allocation

for 2015/16 was 50 bursaries and

a commitment to employ 98 interns

with a view to helping them

train for the job market. A specialist

programme to develop skills in

the green economy has 31 young

people supported by the provincial

government studying Energy

Management Systems.

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.

The Medupi Power Station

Joint Venture (MPSJV: Grinaker-

LTA, Murray & Roberts and

Concor) has a training facility

where about 1 300 local people

have been trained to qualify for

jobs on this complex building site.

Far in the north of the province,

De Beers has established a

Skills Development Centre, linked to its Venetia Mine. The centre caters

not only to mine employees, but also for local school pupils and adults

from the community of Alldays.

Impala Platinum (along with its Limpopo subsidiary Marula Platinum)

has a partnership with the National Department of Mineral Resources

and the Da Vinci Institute for Technology Management, which focuses

on the training of black women in the mining industry. A Master of

Science degree in Technology and Innovation is available to candidates,

several of whom are now in management positions at Impala Platinum.

Anglo Platinum (Amplats) has a new Mining Training Centre (Eastern

Limb) at its Twickenham mine, and this will also deliver training and

assessment to staff of other operations.

What for several years were known as Further Education and Training

Colleges (FET) have now been re-branded as Technical and Vocational

Education and Training (TVET) Colleges. There are seven TVET colleges

in Limpopo: Capricorn College, Lephalale College, Mopani East College,

Mopani South College, Sekhukhune College, Vhembe College and

Waterberg College.

Capricorn College has three campuses, each of which has a slightly

different focus. The city campus in Polokwane offers business studies,

engineering and National Curriculum Vocation (NCV) subjects. Seshego

(outer Polokwane) has an engineering focus while Senwabarwana is

situated in a rural area and concentrates on teaching hospitality and

hairdressing.

At Lephalale TVET College, students can study Business Studies,

Hospitality, Engineering Studies, Nature Management and Computer

Science. The college has a satellite campus at Modimolle. Murray

& Roberts is training hundreds of artisans at the Tlhahlong training

centre in partnership with the college and the merSETA. Siemens has

supported this centre with significant capital investment.

Waterberg College operates as five business training centres across

two municipalities, namely Lepelle-Nkumbi and Mogalakwena.

ONLINE RESOURCES

Capricorn TVET College: www.capricorncollege.co.za

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

Lephalale TVET College: ww.lephalalefetcollege.co.za

Mining Qualifications Authority: www.mqa.org.za

Sumbandila Scholarship Trust: www.sumbandila.org

Turfloof Graduate School of Leadership: www.ul.ac.za

University of Limpopo: www.ul.ac.za

University of South Africa: www.unisa.ac.za

University of Venda for Science and Technology:

www.univen.ac.za

Waterberg College: www.waterbergcollege.co.za

LIMPOPO BUSINESS 2016/17

92


FOCUS

Skills development a

priority of youth-focused initiatives

The Provincial Government of Limpopo is determined to improve the prospects of young

people in the region.

Given the South African demographic profile, with an estimated

36.2% of the total population between 15 and

34 years of age, youth development is a priority issue for

government entities nationwide. This includes the provincial

government of Limpopo. With 2016 marking 40 years since the

Soweto uprising, projects undertaken during this year have taken on

a particular significance.

The Youth Directorate in the Office of the Premier is involved with

a number of interventions to improve the prospects for young people

in Limpopo Province. A number of these programmes and projects

relate to education.

Improved opportunities for education

and skills development

In 2015 the Limpopo provincial government announced the re-opening

of the Madzivhandila and Tompi Seleka agricultural colleges. These

colleges have already begun to make an impact in skills development

in the agricultural sector.

A particular highlight for 2016 was the opening of the first medical

school in the province. Sixty students were enrolled for the first

year of training at the medical school attached to the University

of Limpopo and these students were offered full bursaries by the

provincial government.

In order to encourage the development of skills of a different kind,

the provincial government has identified a site for the location of a

theatre, which will provide a platform for young people to showcase

their talents and acquire performing arts skills.

Promoting entrepreneurship

Young people in the province are also encouraged to develop entrepreneurial

and business skills. In June 2016, the Office of the Premier

partnered with local commercial radio station, Capricorn FM, in hosting

a youth seminar. The seminar highlighted opportunities for young

people in the agri-business sector.

During an address to young

people participating in 2016

Youth Day celebrations, Premier

Mathabatha reminded those present

of the national interventions

designed to assist youth-owned

businesses. He made particular

reference to the Department of

Small Business Development,

which is implementing a variety

of programmes to uplift small

businesses, particularly those

that are owned by young people.

Youth-owned co-operatives

can access financial support up

to R350 000 through the Cooperative

Incentive Scheme

in the Department of Small

Business Development.

Access to information

As part of Limpopo’s Youth Month

activities, MEC Ramathuba officially

opened the fully equipped

Eldorado Youth Centre outside

Senwabarwana. This centre will

enable members of the community

to access the Internet and

valuable information such as

employment opportunities and

bursaries or details on applying

to tertiary institutions.

93 LIMPOPO BUSINESS 2016/17


LISTING

South African National Government

An overview of South Africa’s national government departments.

President

Address: Union Buildings, Government Avenue, Arcadia, Pretoria 0001

Postal address: Private Bag X1000, Pretoria 0001

Tel: +27 12 300 5200 | Fax: +27 12 323 8246

Website: www.thepresidency.gov.za

Website: www.economic.gov.za

Deputy President

Address: Union Buildings, Government Avenue, East Wing,

1st Floor, Arcadia, Pretoria 0001

Postal address: Private Bag X1000, Pretoria 0001

Tel: +27 12 300 5200 | Fax: +27 12 323 8246

Website: www.thepresidency.gov.za

Minister in the Presidency

Address: Union Buildings, Government Avenue, East Wing,

1st Floor, Arcadia, Pretoria 0001

Postal address: Private Bag X1000, Pretoria 0001

Tel: +27 12 300 5200 | Fax: +27 12 300 5795

Website: www.thepresidency.gov.za

Ministry in the Presidency responsible

for Women (Minister of Women in the

Presidency)

Address: East Wing, Union Buildings, Pretoria 0001

Postal address: Private Bag X931, Pretoria 0001

Tel: +27 12 359 0011 / 0013 | Fax: +27 12 326 0473

Website: www.women.gov.za

Minister for Public Service & Administration

Address: 123 Poyntons Building, West Block, cnr Schubart and Church

streets, Pretoria 0001

Postal address: Private Bag X136, Pretoria 0001

Tel: +27 12 307 2934/2884 | Fax: +27 12 323 4111

Website: www.dcs.gov.za

Dept of Agriculture, Forestry and Fisheries

Address: No 20, Agriculture Place, Block DA, 1st Floor, cnr Beatrix Street

and Soutpansberg Road, Arcadia, Pretoria

Postal address: Private Bag X250, Pretoria

Tel: +27 12 319 7319 | Fax: +27 12 319 6681

Website: www.daff.gov.za

Department of Arts and Culture

Address: 10th Floor, Kingsley Centre, 481 corner Steve Biko & Stanza

Bopape streets, Arcadia, Pretoria 0001

Postal address: Private Bag X899, Pretoria 0001

Tel: +27 12 441 3000

Fax: +27 12 440 4485

Website: www.dac.gov.za

Department of Basic Education

Address: Sol Plaatje House, 222 Struben Street, Pretoria 0001

Postal address: Private Bag X9034, 8000

Tel: +27 12 357 3000

Fax: +27 12 323 5989

Website: www.education.gov.za

Department of Communications

Address: Tshedimosetso House, 1035 Frances Baard (Cnr Festival

Street), Hatfield, Pretoria 0001

Postal address: Private Bag X745, Pretoria 0001

Tel: +27 12 473 0000 | Fax: +27 12 462 1646

Website: www.doc.gov.za

Department of Cooperative Governance and

Traditional Affairs

Address: 87 Hamilton Street, Arcadia, Pretoria 0083

Postal address: Private Bag X802, Pretoria 0001

Tel: +27 12 334 0705 | Fax: +27 12 326 4478

Website: www.cogta.gov.za

Department of Correctional Services

Address: 123 Poyntons Building, West Block,

cnr Schubart and Church streets, Pretoria 0001

Postal address: Private Bag X136, Pretoria 0001

Tel: +27 12 307 2934/2884 | Fax: +27 12 323 4111

Website: www.dcs.gov.za

Department of Economic Development

Address: Block A, 3rd Floor, 77 the dti Campus, cnr Meintjies &

Esselen streets, Sunnyside, Pretoria 0001

Postal address: Private Bag X149, Pretoria 0001

Tel: +27 12 394 1006 | Fax: +27 12 394 0255

Website: www.economic.gov.za

LIMPOPO BUSINESS 2016/17

94


LISTING

Department of Defence and Military

Veterans

Address: cnr Delmas Avenue & Nossob St, Erasmuskloof, Pretoria 0001

Postal address: Private Bag X427, Pretoria 0001

Tel: +27 12 355 6101 | F ax: +27 12 347 0118

Website: www.dod.mil.za

Department of Energy

Address: 192 cnr Visagie and Paul Kruger St, Pretoria 0001

Postal address: Private Bag X96, Pretoria 0001

Tel: +27 12 406 8000

Fax: +27 12 319 6681

Website: www.energy.gov.za

Department of Environmental Affairs

Address: Environment House, 473 Steve Biko and Soutpansberg Road,

Arcadia, 0083

Postal address: Private Bag X447, Pretoria 0001

Tel: +27 12 310 3537 | Fax: +27 086 593 6526

Website: www.environment.gov.za

Department of Finance

Address: 40 WF Nkomo Street,

Old Reserve Bank Building, 2nd Floor, Pretoria

Postal address: Private Bag X115, Pretoria 0001

Tel: +27 12 323 8911 | Fax: +27 12 323 3262

Website: www.treasury.gov.za

Department of Health

Address: 20th Floor, Civitas Building, cnr Struben and Andries Streets,

Pretoria 0001

Postal address: Private Bag X399, Pretoria 0001

Tel: +27 12 395 8086/80 | Fax: +27 12 395 9165

Website: www.doh.gov.za

Department of Higher Education

and Training

Address: 123 Francis Baard Street, Pretoria 0001

Postal address: Private Bag X893, Pretoria 0001

Tel: +27 12 312 5555 | Fax: +27 12 323 5618

Website: www.dhet.gov.za

Department of Home Affairs

Address: 909 Arcadia Street, Hatfield 0083

Postal address: Private Bag X114, Pretoria 0001

Tel: +27 12 432 6648 | Fax: +27 12 432 6675

Website: www.dha.gov.za

Department of Human Settlements

Address: Govan Mbeki House, 240 Justice Mahomed,

Sunnyside, Pretoria 0001

Postal address: Private Bag X644, Pretoria 0001

Tel: +27 12 421 1310 | Fax: +27 12 341 8513

Website: www.dhs.gov.za

Department of International Relations and

Cooperation

Address: OR Tambo Building, 460 Soutpansberg Road, Rietondale,

Pretoria 0001

Postal address: Private Bag X152, Pretoria 0001

Tel: +27 12 351 1000 | Fax: +27 12 329 1000

Website: www.dirco.gov.za

Department of Justice and Correctional

Services

Address: Salu Building, 316 cnr Thabo Sehume and Francis Baard

Streets, Pretoria 0001

Postal address: Private Bag X276, Pretoria 0001

Tel: +27 12 406 4669 | Fax: +27 12 406 4680

Website: www.doj.gov.za

Department of Labour

Address: 215 Laboria House, cnr Francis Baard and

Paul Kruger Streets, Pretoria 0001

Postal address: Private Bag X499, Pretoria 0001

Tel: +27 12 392 9620 | Fax: +27 12 320 1942

Website: www.labour.gov.za

Department of Mineral Resources

Address: 70 Meintje Street, Trevenna Campus, Sunnyside 0007

Postal address: Private Bag X59, Pretoria 0001

Tel: +27 12 444 3000 | Fax: +27 86 624 5509

Website: www.dmr.gov.za

Department of Police

Address: Wachthuis Building, 7th Floor, 231 Pretorius Street, Pretoria 0001

Postal address: Private Bag X463, Pretoria 0001

Tel: +27 12 393 2800 | Fax: +27 12 393 2812

Website: www.saps.gov.za

Department of Public Enterprises

Address: Infotech Building, 1090 Arcadia Street, Hatfield, Pretoria 0001

Postal address: Private Bag X15, Hatfield 0028

Tel: +27 12 431 1000 | Fax: +27 12 431 1039

Website: www.dpe.gov.za

95 LIMPOPO BUSINESS 2016/17


LISTING

Department of Public Service and

Administration

Address: Batho Pele House, 116 Johannes Ramakhoase Street, Pretoria

Postal address: Private Bag X884, Pretoria 0001

Tel: +27 12 336 1700 | Fax: +27 12 336 1809

Website: www.dpsa.gov.za

Department of Public Works

Address: 7th Floor, CGO Building, cnr Bosman and Madiba Street

Postal address: Private Bag X65, Pretoria 0001

Tel: +27 12 406 21978 | Fax: +27 086 276 8757

Website: www.publicworks.gov.za

Department of Rural Development and

Land Reform

Address: 184 Old Building, cnr Jeff Masemola

and Paul Kruger Streets, Pretoria 0001

Postal address: Private Bag X833, Pretoria 0001

Tel: +27 12 312 9300 | Fax: +27 12 323 3306

Website: www.ruraldevelopment.gov.za

Department of Science and Technology

Physical address: DST Building, Building No 53, CSIR South Gate

Entrance, Meiring Naude Road, Brummeria, Pretoria 0001

Postal address: Private Bag X727, Pretoria 0001

Tel: +27 12 843 6300

Fax: +27 12 349 1041/8

Website: www.dst.gov.za

Department of Small Business Development

Physical address: The dti, Block A, 3rd Floor, 77 Meintjies Street,

Sunnyside, Pretoria 0001

Postal address: Private Bag X84, Pretoria 0001

Tel: +27 12 394 1006 | Fax: +27 12 394 1006

Website: www.dsbd.gov.za

Department of Social Development

Physical address: HSRC Building, North Wing,

134 Pretorius Street, Pretoria 0001

Postal address: Private Bag X904, Pretoria 0001

Tel: +27 12 312 7479 | Fax: +27 086 715 0829

Website: www.dsd.gov.za

Department of State Security

Physical address: Bogare Building, 2 Atterbury Road, Menlyn,

Pretoria 0001

Postal address: PO Box 1037, Menlyn 0077

Tel: +27 12 367 0700

Fax: +27 12 367 0749

Website: www.ssa.gov.za

Department of Sport and Recreation South

Africa

Physical address: Regent Place, 66 cnr Madiba and

Florence Ribeiro Street, Pretoria 0001

Postal address: Private Bag X896, Pretoria 0001

Tel: +27 12 304 5000 | Fax: +27 12 323 7196 / 086 644 9583

Website: www.srsa.gov.za

Department of Tourism

Physical address: 17 Trevena Street, Tourism House,

Sunnyside, Pretoria 0001

Postal address: Private Bag X424, Pretoria 0001

Tel: +27 12 444 6780 | Fax: +27 12 444 7027

Website: www.tourism.gov.za

Department of Trade and Industry

Physical address: The dti, 77 Meintjie Street, Block A, Floor 3,

Sunnyside, Pretoria 0001

Postal address: Private Bag X274, Pretoria 0001

Tel: +27 12 394 1568 | Fax: +27 12 394 0337

Website: www.thedti.gov.za

Department of Transport

Physical address: Forum Building, 159 Struben Street,

Room 4111, Pretoria 0001

Postal address: Private Bag X193, Pretoria 0001

Tel: +27 12 309 3131 | Fax: +27 12 328 3194

Website: www.transport.gov.za

Telecommunications and Postal Services

Physical address: Iparioli Office Park, 399 Jan Shoba Street,

Hatfield, Pretoria 0001

Postal address: Private Bag X860, Pretoria 0001

Tel: +27 12 427 8000

Fax: +27 12 427 8016

Website: www.dtps.gov.za

Department of Water and Sanitation

Physical address: Sedibang Building, 185 Frances Baard Street,

Pretoria 0001

Postal address: Private Bag X313, Pretoria 0001

Tel: +27 12 336 8733 | Fax: +27 12 336 8850

Website: www.dwa.gov.za

LIMPOPO BUSINESS 2016/17

96


Limpopo

Provincial Government

A guide to Limpopo’s provincial government departments.

Visit: www.limpopo.gov.za

LISTING

Office of the Premier

Premier: Mr Chupu Stanley Mathabatha

Physical address: Mowaneng Building, 40 Hans van Rensburg Street,

Polokwane 0700

Postal address: Private Bag X9483, Polokwane 0700

Tel: +27 15 287 6515

Fax: +27 15 291 3911

Website: www.limpopo.gov.za

Department of Agriculture and

Rural Development

MEC: Ms Joyce Matshoge

Physical address: Temo Towers, 69 Biccard Street, Polokwane 0699

Postal address: Private Bag X9487, Polokwane 0700

Tel: +27 15 294 3147 | Fax: +27 15 294 4506

Website: www.lda.gov.za

Department of Co-operative

Governance. Human Settlements

and Traditional Affairs

MEC: Ms Makoma Makhurupetje

Physical address: 20 Rabie Street,

Hensa Building, Polokwane

Postal address: Private Bag X9485, Polokwane 0700

Tel: +27 15 284 5060

Fax: +27 15 291 3988/086 576 4784

Website: www.limpopo.coghsta.gov.za

Department of Economic

Development, Environment

and Tourism

MEC: Mr Charles Seaparo Sekoah (Acting)

Physical address: Evridiki Towers, 20 Hans van Rensburg Street,

Polokwane 0699

Postal address: Private Bag X9484, Polokwane 0700

Tel: +27 15 290 7600 | Fax: +27 15 297 0885

Website: www.ledet.gov.za

Department of Education

MEC: Mr Ishmael Kgetjepe

Physical address: Department of Education Building, cnr Biccard and

Excelsior Streets, Polokwane 0700

Postal address: Private Bag X9489, Polokwane 0700

Tel: +27 15 290 9301 | Fax: +27 15 297 0885/086 531 0539

Website: www.edu.limpopo.gov.za

Department of Health

MEC: Dr Phophi Ramathuba

Physical address: 18 College Street, Polokwane 0699

Postal address: Private Bag X9302, Polokwane 0700

Tel: +27 15 293 6000

Fax: +27 15 293 2836

Website: www.doh.limpopo.gov.za

Department of Public Works,

Roads and Infrastructure

MEC: Mr Jeremiah Ndou

Physical address: 43 Church Street, Polokwane 0699

Postal address: Private Bag X9490, Polokwane 0700

Tel: +27 15 284 7000

Website: www.dpw.limpopo.gov.za

Department of Social Development

MEC: Happy Joyce Mashamba

Physical address: 18 College Street, Polokwane 0700

Postal address: Private Bag X9302, Polokwane 0700

Tel: +27 15 293 6027/04

Fax: +27 15 293 6170/50

Website: www.dhsd.limpopo.gov.za

97 LIMPOPO BUSINESS 2016/17


LISTING

Department of Sport,

Arts and Culture

MEC: Ms Nandi Ndalane

Physical address: Olympic Towers, 21 Biccard Street, Polokwane 0700

Postal address: Private Bag X9549, Polokwane 0700

Tel: +27 15 284 4009/8 | Fax: +27 15 284 4500

Website: www.sac.limpopo.gov.za

Department of Transport,

Security and Liaison

Provincial Treasury

MEC: Mr Rob Tooley

Physical address: Ismini Towers, 46 Hans van Rensburg Street,

Polokwane 0699

Postal address: Private Bag X9486, Polokwane 0700

Tel: +27 15 298 5361

Fax: +27 15 295 8873/7010

Website: www.limtreasury.gov.za

Premier: Mapula-Mokako Phukwana

Physical address: 32 Schoeman Street, Polokwane 0699

Postal address: Private Bag X9492, Polokwane 0700

Tel: +27 15 290 7600 | Fax: +27 15 295 8979

Website: www.dssl.limpopo.gov.za

0 50 km

Beitbridge

LIMPOPO PROVINCE

0 25 miles

Musina

Evangelina

Palapye

Pafuri

Motorway

Alldays

Tshipise

Main Road

Railway

Oorwinning

Waterpoort

Tom Burke

Thohoyandou

Mahalapye

Makhado

BOTSWANA

North West

Sun City

N

R81

Kruger

N11

N1

Senwabarana

National

Monte Christo

Steilloopbrug

Giyani Park

Morebeng

R81

Lephalale

Gilead

Modjadjiskloof

Seshego

Groesbeek

Tzaneen

Elmeston

Gravelotte Phalaborwa

POLOKWANE

Mokopane

Ofcolaco

Sentrum

Vaalwater

Zebedelia

N1

Lebowa Kgomo

Mookgophong

Thabazimbi

Crecy

Modimolle

Bela-Bela

N11

Burgersfort

Gauteng

Marble Hall

Lydenburg

Groblersdal

Stoffberg

R40

Hoedspruit

Klaserie

Pilgrim’s Rest

Graskop

White River

ZIMBABWE

Sabie

Mpumalanga

Hazyview

MOZAMBIQUE

LIMPOPO BUSINESS 2016/17

98


Limpopo Local Government

LISTING

A guide to the district and local municipalities in Limpopo.

South African local government has undergone

considerable transformation

over the past decade, as outlined in the

Constitution of South Africa (1996). The Local

Government: Municipal Structures Act of 1998

reduced the total number of municipalities in the

country from 843 to 284 (now 283) and laid out criteria

for determining whether an area should have a

Category A Municipality (Metropolitan Municipalities),

a Category B Municipality (Local Councils or

Municipalities) or a Category C Municipality (District

Municipalities).

Six Metropolitan Municipalities were created,

namely the City of Cape Town Metropolitan

Municipality in the Western Cape, the City of

Tshwane Metropolitan Municipality, Ekurhuleni

Metropolitan Municipality and the City of

Johannesburg Metropolitan Municipality in

Gauteng, eThekwini Municipality in KwaZulu-

Natal and Nelson Mandela Bay Municipality in

the Eastern Cape.

Forty-seven District Municipalities were identified

(Limpopo has five district municipalities,

namely Capricorn District Municipality, Mopani

District Municipality, Vhembe District Municipality,

Waterberg District Municipality and Greater

Sekhukhune District Municipality), as well as 230

Local Municipalities (with 24 in Limpopo).

In July 2008, the Municipal Demarcation

Board proposed that Mangaung (Free State),

Buffalo City (Eastern Cape) and Msunduzi

(KwaZulu-Natal) municipalities change from

Category B local municipalities to Category

A metropolitan municipalities. Mangaung

and Buffalo City were subsequently granted

metropolitan status.

Capricorn District Municipality

Physical address: 41 Biccard Street,

Polokwane 0699

Postal address: PO Box 4100,

Polokwane 0700

Tel: +27 15 294 1000

Fax: +27 15 294 1292

Email: mayor@cdm.org.za or

Website: www.cdm.org.za

Local municipalities encompassed:

Aganang Municipality

Tel: +27 15 295 1400

Fax: +27 15 295 1401/1447

Website: www.aganang.gov.za

Blouberg Municipality

Tel: +27 15 505 7100 | Fax: +27 15 505 0296

Website: www.blouberg.gov.za

Lepelle-Nkumpi Municipality

Tel: +27 15 633 4500 | Fax: +27 15 633 6896

Website: www.lepelle-nkumpi.gov.za

Molemole Municipality

Tel: +27 15 501 0243 | Fax: +27 15 501 0419

Website: www.molemole.gov.za

Polokwane Municipality

Tel: +27 15 290 2100 | Fax: +27 15 290 2106 or

086 608 0290 (SA only)

Website: www.polokwane.gov.za

99 LIMPOPO BUSINESS 2016/17


LISTING

Sekhukhune District Municipality

Physical address: 3 Wes Street, Groblersdal 0470

Postal address: Private Bag X8611, Groblersdal 0470

Tel: +27 13 262 7300

Fax: +27 13 262 5849

Website: www.sekhukhune.gov.za

Local municipalities encompassed:

Elias Motsoaledi Municipality

Tel: +27 13 262 3056

Fax: +27 13 262 2547/4530

Website: www.eliasmotsoaledi.gov.za

Ephraim Mogale Municipality

Tel: +27 13 261 8400

Fax: +27 13 261 2985

Website: www.ephraimmogalelm.gov.za

Fetakgomo Municipality

Tel: +27 15 622 8000

Fax: +27 15 622 8026

Website: www.fetakgomo.gov.za

Greater Tubatse Municipality

Tel: +27 13 231 1000 | Fax: +27 13 231 7467

Website: www.tubatse.gov.za

Makhudutamaga Municipality

Tel: +27 13 265 8645

Fax: +27 13 265 1975/1076

Website: www.makhuduthamaga.gov.za

Mopani District Municipality

Physical address: Government Building, Main Road, Giyani 0826

Postal address: Private Bag X9687,

Giyani 0826

Tel: +27 15 811 6300

Fax: +27 15 812 4301

Website: www.mopani.gov.za

Local municipalities encompassed:

Ba-Phalaborwa Municipality

Tel: +27 15 780 6300

Fax: +27 15 781 0726

Website: www.ba-phalaborwa.gov.za

Greater Giyani Municipality

Tel: +27 15 811 5500

Fax: +27 15 812 2068/1683

Website: www.greatergiyani.gov.za

Greater Letaba Municipality

Tel: +27 15 309 9246 Fax: +27 15 309 9419

Website: www.greaterletaba.gov.za

Greater Tzaneen Municipality

Tel: +27 15 307 8000

Fax: +27 15 307 8049/48

Website: www.tzaneen.gov.za

Vhembe District Municipality

Physical address: Old Parliament, Government Complex, Tusk Venda

Street, Thohoyandou 0950

Postal address: Private Bag X5006, Thohoyandou 0950

Tel: +27 15 960 2000/2008 | Fax: +27 15 962 0904

Website: www.vhembe.gov.za

Local municipalities encompassed:

Makhado Municipality

Tel: +27 15 519 3000 | Fax: +27 15 516 1195

Website: www.makhado.gov.za

Musina Municipality

Tel: +27 15 534 6100 | Fax: +27 15 534 2513

Website: www.musina.gov.za

Mutale Municipality

Tel: +27 15 967 9600 | Fax: +27 15 967 9677/9654

Website: www.mutale.gov.za

Thulamela Municipality

Tel: +27 15 962 7500 Fax: +27 15 962 4020

Website: www.thulamela.gov.za

Waterberg District Municipality

Physical address: Harry Gwala Street, Modimolle 0510

Postal address: Private Bag X1018,

Modimolle 0510

Tel: +27 14 718 3300

Fax: +27 14 717 2931

Website: www.waterberg.gov.za

LIMPOPO BUSINESS 2016/17

100


Thabazimbi Municipality

Thabazimbi Municipality is located in the southwestern part of Limpopo

Province, has Botswana as its international neighbour, and is a mere

two hours’ drive from the city of Tshwane.

PROFILE

Thabazimbi is known as the “mountain of iron”,

which is the Tswana name for this peaceful, productive

town. The name refers to the highly lucrative

iron-ore reef first discovered in the municipality

in 1919. Iron and steel production started in

1930 and the town was proclaimed in 1953.

Today, Iscor Steelworks in Tshwane still draws

much of its raw material from Thabazimbi Kumba

Resources (iron-ore mine). Apart from iron ore, the

Thabazimbi Municipality is surrounded by platinum-producing

mines such as Northam Platinum

Mine and Anglo Platinum Mines (Amandelbult,

Tumela, Swartklip Union Section). Other minerals

produced in the area include andalusite (mined

by Rhino Mine) and limestone for the production

of cement (mined by Pretoria Portland Cement).

The municipality falls within the Waterberg District

municipal area and the boundaries of Thabazimbi

Municipality incorporate areas such as: Thabazimbi;

Northam; Leeupoort; Rooiberg and Dwaalboom.

Main industries

Thabazimbi has demonstrated strength in the tourism,

agriculture and mining sectors, with the latter

showing tremendous growth potential. The mining

sector has huge potential to absorb many skills within

the municipality. There is also a need to establish

opportunities in small-scale mining. Agriculture has

also proven to be a strong economic sector in the

municipality. Agricultural commodities produced

include wheat, beans and maize.

Main attractions

Thabazimbi Municipality boasts one of the country’s

most sought-after tourist attractions. The

municipality’s main attraction is the Marakele

National Park, which is a subsidiary of South

African National Parks and of the same standard

as the Kruger and Mapungubwe national parks.

The game lodges scattered around the municipal

area help to promote the environmental sustainability

of the region as a tourist destination. Other

attractions include the Atherstone Nature Reserve

and Ben Alberts Golf Course.

CONTACT INFO

Key personnel:

Molatelo Mabitsela, HOD: Planning and

Economic Development

Email: mmabitsela@thabazimbi.gov.za

Molatlhegi Peter Motlhabane, LED Manager

Email: motlhabanemp@thabazimbi.gov.za

Tel: +27 14 777 1525 Ext 107

Fax: +27 14 777 1531

Physical address: 7 Rietbok Street,

Thabazimbi 0380

Postal address: PO Box 90, Thabazimbi 0380

Website: www.thabazimbi.gov.za

Thabazimbi Tourism Centre

Tel: 014 777 1011 / 014 777 1062

Email: info@infothabazimbi.co.za

Email: office@infothabazimbi.co.za

101 LIMPOPO BUSINESS 2016/17


LISTING

Local municipalities encompassed:

Bela-Bela Municipality

Tel: +27 14 736 8000

Fax: +27 14 736 3288

Website: www.belabela.gov.za

Lephalale Municipality

Tel: +27 14 763 2193

Fax: +27 14 763 5662/086 534 3440

Website: www.lephalale.com

Modimolle Municipality

Tel: +27 14 718 2000 | Fax: +27 14 717 4077

Website: www.modimolle.gov.za

Mogalakwena Municipality

Tel: +27 15 491 9630

Fax: +27 15 491 9755

Website: www.mogalakwena.gov.za

Mookgophong Municipality

Tel: +27 14 743 6600

Fax: +27 14 743 2434

Website: www.mookgophong.gov.za

Thabazimbi Municipality

Tel: +27 14 777 1525

Fax: +27 14 777 1531

Website: www.thabazimbi.gov.za

MUNICIPALITIES IN LIMPOPO PROVINCE

Musina

Musina

ZIMBABWE

Metropolitan/District Municipality

Boundary

Local Municipality Boundary

District Municipality

Waterberg

Local Municipality

Lephalale

BOTSWANA

Thabazimbi

Lephalale

Lephalale

Thabazimbi

Waterberg

Modimolle

Bele-Bela

N11

Mogalakwena

Mookgophong

Bela-Bela

Mokopane

N1

Modimolle

Alldays

Blouberg

N11

Mookgophong

N1

Makhado

POLOKWANE

Polokwane

Makhado

Molemole

Aganang

Capricorn R81

Lepele-Nkumpi

Fetakgomo

Vhembe

Tshipise

Greater Letaba

Tzaneen

Greater Tzaneen

Sekhukhune

Makhuduthamaga

Greater

Tubatse

Ephraim

Mogale

Thohoyandou

Thulamela

Kruger

R81

National

Area

Greater Park

Mopani

Mutale

Giyani

Ba-Phalaborwa

R40

Maruleng

Kruger National

Park District

Management

Phalaborwa

Bushbuckridge

MOZAMBIQUE

Bohlabela

(Cross-border

Municipality)

Kruger National

Park District

Management

Area

North West

Greater Groblersdal

Mpumalanga

Gauteng

LIMPOPO BUSINESS 2016/17

102


LISTING

INDEX

Capricorn District Municipality ................................................................................. 101 - 103

Corridor Mining Resources ...................................................................................................32

Gateway Airports Authority Limited (GAAL) ........................................................................56

Great North Transport ...........................................................................................................36

Industrial Development Corporation (IDC) ......................................................................OBC

Limpopo Economic Development Corporation (LEDA) .................................IFC, 10, 26 - 37

Limpopo Office of the Premier .........................................................................................8, 18

Masisizane Fund ....................................................................................................................40

Musina Special Economic Zone ...........................................................................................28

Nedbank .................................................................................................................................38

Polokwane Chamber of Business ........................................................................................88

Risima Housing Finance Corporation ..................................................................................34

Small Enterprise Development Agency (SEDA) ....................................................... 5, 82 - 86

Thabazimbi Municipality .......................................................................................................99

Tubatse Platinum Special Economic Zone ..........................................................................30

Unemployment Insurance Fund (UIF) ....................................................................................3

Vodacom .................................................................................................................64 - 73, IBC

LIMPOPO BUSINESS 2016/17

106


10001033SM/LIMP

75 YEARS OF INDUSTRIAL

DEVELOPMENT

OF INDUSTRIAL DEVELOPMENT

SINCE 1940

For 75 years, the IDC has been committed to leading industrial

development in South Africa. It is this commitment that has

enabled us to grow key industries and facilitate job creation,

ensuring a positive contribution to the growth of our economy.

If you’re an entrepreneur and have a business plan that is

relevant to an industry that the IDC supports and require funding

of R1 million or more, take the lead and make history. Call the

Polokwane office on 015 299 4080 or visit idc.co.za to learn more

about the funding criteria for the sectors that the IDC supports.

More magazines by this user
Similar magazines