Limpopo Business 2017-18 edition

christoffscholtz

A unique guide to business and investment in Limpopo.
Limpopo Business 2017/18 is the ninth edition of this highly successful publication that has, since its launch in 2007, established itself as the premier business and investment guide to the Limpopo Province. This edition of Limpopo Business is officially endorsed by the Office of the Premier of Limpopo.
This book contains detailed insights into the plans of the Limpopo Economic Development Agency (LEDA) and the recently launched bus rapid transport system for the provincial capital, Leeto la Polokwane, together with a comprehensive register of all provincial government and municipal contact details. Investment news related to mining, telecommunications and tourism is carried in overviews of all the main economic sectors.
To complement the extensive distribution of the print edition of the magazine, the publication is also available online at www.limpopobusiness.co.za.

LIMPOPO

BUSINESS

2017/18 EDITION

THE GUIDE TO BUSINESS

AND INVESTMENT IN

LIMPOPO PROVINCE

JOIN JOIN US ONLINE US ONLINE

WWW.GLOBALAFRICANETWORK.COM | WWW.LIMPOPOBUSINESS.CO.ZA

WWW.GLOBALAFRICANETWORK.COM | WWW.LIMPOPOBUSINESS.CO.ZA


Gauteng

Musina

Musin

Great

North

Transport

N11

Alldays

Blouberg

Makhado

N1

Vhe

Great North Transport (GNT) operates across members who otherwise would not generate revenue

the length and breadth of Limpopo and on the contracted parking space.

the eastern part of Mpumalanga. With its

head office in Polokwane and 11 depots

Enterprise development

phalale based in the five districts of the province and one in Enterprise development is at the heart of socio-

Molemole

Bohlabele, Mpumalanga, the company transported economic development polices and strategies of the

22-million passengers and commuters Mogalakwena

during the national, provincial and local government. Through its

2016/17 financial year.

procurement spending, GNT advances the sustainable BOTSWAN R81

development of emerging enterprises. Over the years

ephalale Strategy

the company has continued to procure its supplies

GNT is a business offering primarily services. The service

mix is standardised (scheduled services) with companies based in Limpopo.

from emerging enterprises Capricorn

with preference given to

Gre

some level of customisation (in certain cases new The company has also subcontracted Polokwane some routes

Waterberg

routes require customisation). The business model

Mokopane

to emerging bus companies and provided mentorship

is directed towards standardisation and replication. to ensure they become sustainable beyond the critical

GNT’s offering is both broad and deep and the years of inception.

Lepele-Nkum

focus is regional but the reach is international. GNT

has both a business-to-consumer focus (scheduled Youth development

services) and a business-to-business focus (contract The N1company partners with private and public sector

services, hiring, advisory services).

companies to organise business seminars focusing on

bi

Mookgophong young people. The annual seminar provides a platform Fetakgo

Human resource development Lim 368 for engagements between institutions that provide

Annually, Great North Transport recruits students for financial and non-financial N11 products and services to Thaba

learnership and internship programmes as part of ensure that aspirant youth entrepreneurs are afforded

human resource development for the country, Modimolle

and an opportunity to kick-start their business ideas.

Limpopo Province in particular. In the current year,

Makhuduthamaga

10 learners were Bele-Bela

recruited and absorbed into various Great North Transport owns and operates buses at

disciplines ranging from HR Management, Marketing the following locations: Ephraim

and Business Development to Finance, Bela-Bela Internal Audit,

Mogale

IT and Operations.

• Bapedi (Burgersfort) • Marble Hall

Community development

• Bushbuckridge • Motetema

The company signs contracts with members of communities

for overnight parking for its buses in the • Giyani

• Phalaborwa

(Bohlabela) • Mokopane North W

different villages across the province. This is seen by • Hoedspruit Greater • Seshego Groblersdal

the company as empowering to those community • Makhado • Tzaneen

M

POLOKWA


A

Services

Lephalale

Lephalale

Waterberg

Mogalakwena

Mokopane

Musina

R81

Capricorn

ZIM

Musina

Tshipise

• Private hire Alldays

Vhembe

• Commuter services

Blouberg

Makhado

• Inter-towns services

N11

N1

• Cross-border partial services

Makhado

Greater Letaba

Molemole

POLOKWANE

Polokwane

Lepele-Nkumpi

Tzaneen

Greater Tzaneen

Th

B

zimbi

Thabazimbi

est

Vision

Mookgophong

Lim 368

N1

Modimolle

Sekhukhune

To be Southern Africa's preferred transport services provider Makhuduthamaga

supporting economic

growth and development Bele-Bela in the region.

Ephraim

Mission

Bela-Bela

Mogale

To invest in world-class operating systems that will ensure sustainable, safe,

consistent and dependable transport services for the benefit of our stakeholders.

N11

Fetakgomo-Greater

Tubatse

Greater Groblersdal

Mpum

Tel: +27 15 291 2641 | Fax: +27 15 291 2648

Email: info@gntpassenger.co.za Gauteng | Website: www.gntpassenger.co.za

22 Hans Van Rensburg Street, Polokwane, 0700, Limpopo, South Africa


CONTENTS

CONTENTS

Limpopo Business 2017/18 Edition

Introduction

Foreword6

A unique guide to business and investment in Limpopo

Limpopo welcomes investors to the

“gateway” province 8

A message from the Premier of Limpopo, the

Honourable Chupu Stanley Mathabatha.

A springboard for regional integration 10

Limpopo Economic Development Agency Managing

Director Benjamin Mphahlele.

Special features

Regional overview of Limpopo 14

Special economic zones are set to boost the

manufacturing sector.

Limpopo Development Plan 20

Improving lives, and creating a conducive environment

for investment.

Special Economic Zones 22

Investor-friendly measures are attracting investors to

designated growth zones in Limpopo.

Sector contents

Agriculture40

The strong agri-processing sector still has massive

potential to grow in Limpopo.

Mining44

Special economic zones open up possibilities for

investors in processing.

LIMPOPO BUSINESS 2017/18

4


UIF SAVING JOBS

THROUGH SOCIALLY

RESPONSIBLE INVESTMENTS

The National Development Plan is a blueprint serving as

a guideline to government departments and state entities

on how they can play a role in government wide efforts

of creating decent work, reducing unemployment and

poverty. The Unemployment Insurance Fund is among

the leading state entities in the implementation of the

provisions of the NDP to address the slow economic

growth, unemployment and poverty in South Africa.

The UIF social investment mandate ensures that,

additional to earning good financial returns, investments

must be supportive of long term economic, social and

adhere to sustainable environmental outcomes. The

investments must also yield a good social return for the

country. These investments have sustained 6 860 jobs of

which 3 024 are permanent, 3 836 are temporary/seasonal

and 195 are new jobs created during the financial year

ending in March 2016.

UIF INVESTMENTS IN RENEWABLE ENERGY

The UIF investments are contributing to the energy

requirements of South Africa and the investments in the

renewable energy sector provides a total capacity of 192

megawatt of electricity of which 117 megawatt is solar

energy and 27 megawatt is wind generated electricity.

The De Aar project is a shining example of the UIF energy

investments and this project produces 90 megawatt of

electricity and was completed in April 2016. The solar plant

in the area generates enough electricity to power 15 000

houses. Another mainstay project is the Phakwe Group ran

projects undertaken in the Northern and Eastern Cape.

INVESTMENT IN FOOD SECURITY

The UIF investments in this regard are undertaken under

the banner of the UIF Agri-Fund in partnership with

Futuregrowth and Day Breaker Poultry Project. The UIF

Agri-Fund has invested in 4 farms situated in Mable Hall

in Limpopo. One of the farms is a cash crop farm spanning

450 hectares. The farm in the last financial year produced

235 hectares of white maize, and cotton was planted in an

area covering 28 hectares.

A further three farms are located in the Saron area in the

Western Cape. In this project a total of 178 hectares has

been used to plant grapes, 37 hectares has been used to

pant citrus fruit. Furthermore, there is potential to plant an

additional 92 hectares of grapes. The Daybreaker Poultry

project operates in Gauteng, Limpopo and Mpumalanga

and the combined projects have facilities to grow 1.6

million broiler chickens.

INVESTMENTS IN HEALTH CARE FACILITIES

The UIF concluded two investments in this regard that

include a BEE hospital manager, Busamed to build a

private hospital in Modderfontein and Fund Manager

Razorite Heatlhcare that focus on the provision of

affordable heathcare facilities that include rehabilitation

and sub-acute centres.

The Modderfontein hospital is a 220 hospital bed with subacute

facilities. This hospital is under construction. While

the RH Fund Manager has concluded seven investments

that include:

• Busamed with four hospital facilities

• HealthMed with two facilities

INVESTMENTS IN EDUCATION

UIF has invested in three investments that play a role

to unlock access to education. The investments were

concluded with Eduloan – an organisation that provides

financial support to tertiary students and South Point and

Educor organisations that provide student accommodation.

By March 2016, Eduloan had disbursed about R446 986.64

benefiting 34 047 students, whiles South Point provided

about 10 000 student with accommodation.

UIF INVESTMENTS IN ENTERPRISE DEVELOPMENT

The UIF has concluded two investments with the aim of

supporting small and medium enterprises. In this regard

the PIC on behalf of UIF has concluded investment deals

with Musa Capital and TOSACO.

The investments will support more than 250 SMMEs across

various sectors inclusive of agriculture and affordable

housing. Musa Capital for example has a supply chain of

over 250 SMME’s that have facilitated the creation of 2 500

jobs.

TOSACO investments is planning to advance capital to

young black entrepreneurs who aspire to own and manage

Total Filling stations around the country.

For more information:

Call: 0800 843 843 or

visit: www.labour.gov.za


Metropolitan/District Municipality

Boundary

Local Municipality Boundary

District Municipality

Local Municipality

Lephalale

CREDITS

Energy60

An energy complex is planned for Lephalale.

Water61

Major bulk water projects are under way.

Transport and logistics 62

Limpopo’s location makes it ideal for logistics operations.

Information and telecommunications technology 68

Limpopo is getting better connected.

Banking and financial services 76

The provincial government is creating an

insurance company.

Development finance and SMME support 78

A new strategy for the economies of townships and

villages will boost SMMEs.

Education and training 84

Relevant training for employment is a provincial priority.

Tourism86

Cultural tourism is growing fast in Limpopo.

Government

Limpopo Provincial Government 91

A guide to Limpopo’s provincial departments

and their MECs.

Limpopo Local Government 92

A guide to district and local municipalities in

Limpopo Province.

References

Sector contents 38

Overview of the main economic sectors of Limpopo.

Index96

Map

Limpopo locator map. 21

Limpopo municipalities map. 93

MUNICIPALITIES IN LIMPOPO PROVINCE

BOTSWANA

Lephalale

Lephalale

Thabazimbi Thabazimbi

Waterberg

Waterberg

Bele-Bela

N11

Mogalakwena

Mookgophong Lim 368

Bela-Bela

Mokopane

N1

Modimolle

Alldays

Blouberg

N11

Molemole

Makhado

Musina

N1

Makhado

Tshipise

R81

Tzaneen

Capricorn

Greater Tzaneen

Polokwane

POLOKWANE

Ephraim

Mogale

Musina

Lepele-Nkumpi

Makhuduthamaga

Vhembe

Greater Letaba

Fetakgomo-Greater

Tubatse

Sekhukhune

ZIMBABWE

Thohoyandou

Thulamela

R81

Greater

Giyani

Kruger National

Kruger Park District

National Management

Area

Park

Mopani

Phalaborwa

Ba-Phalaborwa

Bohlabela

(Cross-border

Municipality)

R40

Maruleng

Bushbuckridge

MOZAMBIQUE

Kruger National

Park District

Management

Area

North West

Greater Groblersdal

Mpumalanga

LIMPOPO BUSINESS 2017/18

6

Gauteng


Offering international-quality service combined

with South African hospitality, Park Inn by

Radisson Polokwane is the perfect stop whether

you are travelling on business or leisure. Home to

exciting sports destinations like the neighbouring

Polokwane golf course and just steps away from

the Peter Mokaba Stadium, the trendy, vibrant

hotel offers a total of 160 guest rooms and suites,

The smart meeting and events rooms

provide a fresh and creative approach

to meeting and events. Seating up to

100 guests with direct key card access,

ample parking, free Wi-Fi for all delegates

and cutting-edge audio visual

equipment, your event will be anything

but ordinary.

three smart meetings and events rooms, and a

spacious Live-Inn Room Restaurant and Bar, all

with free wireless Internet.

Each of the 160 rooms and suites boasts contemporary

designs with a vibrant colour pallet,

comfortable beds, mood lighting, room amenities

and Dove signature amenities.

The Live-Inn Room Restaurant and Bar has an

abundance of natural lighting and serene views of

the garden. Enjoy a delicious Park Inn Breakfast

Buffet, light lunch or indulge your palate with

the various options on the à la carte menu. The

open-plan bar allows you access to the Terrace

and outdoor pool where guests can unwind with

refreshing cocktails.

Whether you are on business or exploring the greenery of the local surroundings, Park Inn by Radisson

Polokwane focuses on the “Adding Colour to Life” service concept which resonates well with today’s

modern travellers.

For more information contact:

info.polokwane@rezidorparkinn.com

or call (0) 15 495 0969


FOREWORD

Limpopo Business

A unique guide to business and investment in Limpopo.

Limpopo Business 2017/18 is the ninth edition of this highly successful

publication that has, since its launch in 2007, established

itself as the premier business and investment guide to the

Limpopo Province. This edition of Limpopo Business is officially

endorsed by the Office of the Premier of Limpopo.

This book contains detailed insights into the plans of the Limpopo

Economic Development Agency (LEDA) and the recently launched bus rapid

transport system for the provincial capital, Leeto la Polokwane, together

with a comprehensive register of all provincial government and municipal

contact details. Investment news related to mining, telecommunications and

tourism is carried in overviews of all the main economic sectors.

To complement the extensive distribution of the print edition of the

magazine, the publication is also available online at www.limpopobusiness.

co.za. Updated information and news is dissemenated through our monthly

e-newsletter, which you can subscribe to 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

ABOUT THE COVER

De Beers is currently undertaking a major project to convert Venetia

Mine from an open-pit operation to an underground mine. Open

pit mining is expected to continue until 2021 and production in

the underground mine is scheduled to commence in 2022 and will

continue to 2043.

CREDITS

Publisher: Chris Whales

Publishing director:

Robert Arendse

Editor: John Young

Online editor: Christoff Scholtz

Art director: Brent Meder

Design: Colin Carter

Production: Lizel Olivier

Business development manager:

Shiko Diala

Ad sales: Sydwell Adonis, Nigel

Williams, Gavin van der Merwe,

Sam Oliver, Gabriel Venter,

Siyawamkela Sthunda,

Vanessa Wallace, Jeremy Petersen

and Reginald Motsoahae

Managing director: Clive During

Administration & accounts:

Charlene Steynberg and

Natalie Koopman

Distribution & circulation

manager: Edward MacDonald

Printing: FA Print

DISTRIBUTION

Limpopo Business is distributed internationally on outgoing

and incoming trade missions; to foreign offices in South

Africa’s main trading partners; at top national and international

events; through the offices of foreign representatives in

South Africa; as well as nationally and regionally via chambers

of commerce, tourism offices, trade and investment agencies,

provincial government departments, municipalities, airport

lounges and companies.

Member of the Audit Bureau of Circulations

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 | Pictures supplied by: Chris Kirchoff, Wikimedia,

Flickr, Anglo American, ANB Investments, Du Roi Nursery, South African

Tourism, MediaclubSA, Ridgeway College, Malan Koetze, Marthinus

Duckitt, Brand South Africa and Skycraper City.

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.

LIMPOPO BUSINESS 2017/18

8


I’M AN

ENTREPRENEUR.

AN INNOVATOR.

AND A GAME

CHANGER.

NOW I JUST NEED BIG VALUE

FOR MY SMALL BUSINESS.

You’ve got what it takes to succeed. All you need now

is for your money to up its game for your business,

with a business bundle from Nedbank. Save up to 40%

on banking fees, get 35 free transactions a month,

Greenbacks rewards, discount on your point-of-sale

device, and a dedicated banker. All this and more for only

R219 per month! For more information call 0860 116 400

or search ‘Business Bundle’ on nedbank.co.za.

SAVE UP TO

40%

ON BANKING

FEES

nedbank.co.za

Terms and conditions apply.

see money differently

Nedbank Ltd Reg No 1951/000009/06. Authorised financial services and registered credit provider (NCRCP16).


MESSAGE

Limpopo welcomes investors to the

“gateway” province

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

Chupu Stanley Mathabatha,

Premier of Limpopo

It gives me great pleasure to

welcome the readers of Limpopo

Business to the heartland of

Southern Africa. Limpopo is also

known as the “gateway” province

because of our strategic location

on the Great North Road to

Zimbabwe, our links to the Port of

Maputo in Mozambique via the

Phalaborwa Spatial Development

Initiative and the Maputo Corridor

and our close proximity to the

Republic of Botswana and three

South African provinces, Gauteng,

North West and Mpumalanga.

Trade in the mining and agricultural products of Limpopo is

supported by an excellent transport and logistics sector which recently

received an additional boost with the approval by the South African

national government of a new Special Economic Zone in the province.

The Musina-Makhado Special Economic Zone will leverage the existing

advantages in mining and logistics of the northern part of Limpopo

and special tax and customs regimes will be attractive to investors. A

mining-focussed SEZ at Tubatse is also under consideration and we

expect to attract about R44-billion in investments into these two zones.

The rich soils of Limpopo produce great quantities of high-quality

minerals and fruit and vegetables. Investors with the ability to beneficiate

minerals or add value to agricultural produce through processing

can take advantage of the favourable terms offered by Special

Economic Zone legislation.

Power generation, steel and coking plants and plasma waste gasification

are among the possibilities for the Musina SEZ, while the focus

at Tubatse will be platinum group metals beneficiation and also the

manufacturing of goods that are used in the mining industry.

Working together with the private sector, our provincial government

has identified 10 major projects with a combined value of R46-billion.

This will go a long way towards helping us to expand the productive

capacity of our economy. We invite other investors to explore with us

the possibilities for further projects that will support our effort to put

Limpopo on a higher trajectory of economic growth and development.

Our Limpopo Development Plan symbolises our dedication to the

improvement of our provincial economy. The plan is our contribution to

the nation’s development and it details how we in Limpopo share the

same vision and imperatives regarding poverty reduction, elimination

of social inequality and the creation of sustainable jobs.

We are pleased that Limpopo has recorded the second-highest

employment gains in 2016. In the fourth quarter, Limpopo managed

to create 64 000 new jobs. Jobs gained were mainly in the areas of

construction, mining and agriculture.

We are committed to improving infrastructure in the province,

both to improve the quality of life of our citizens and as a way of

enabling investment.

Limpopo Connexion, a subsidiary of the Limpopo Economic

Development Agency, has begun in earnest with the rollout of

LIMPOPO BUSINESS 2017/18

10


MESSAGE

infrastructure for the broadband telecommunication

programme in Limpopo.

The programme implementation is in two phases,

with the first phase commencing in quarter two of

the 2017/18 financial year. This phase rolls out the

broadband infrastructure in Polokwane, including

the identified key provincial growth points. The second

phase of the programme will cover over 80%

of the provincial population, as per the provincial

spatial development framework.

A Provincial Infrastructure Hub has recently been

created, with 68 professionals already appointed.

This body will help to coordinate the delivery of

strategic social-economic infrastructure across the

province.

Heritage and culture are increasingly being recognised

as potential economic drivers. A provincial

performance theatre is to be built in Polokwane at

the corner of Oost and Grobler streets. This project

will among other things help ignite the cultural

industry, promote our rich and diverse cultures and

create job opportunities.

Two Limpopo festivals are already proving the

rich potential of cultural events. The Mapungubwe

Festival a signature event in the country’s entertainment

calendar. During the last Mapungubwe

Festival, a number of crafters generated substantial

income.

Another striking event on the province’s social

calendar is the annual Marula Festival. The festival

regularly attracts about 30 000 people including

hundreds of visitors from neighbouring countries

such as Mozambique, Zimbabwe and Zambia.

This year’s guest list includes people from as far

as South America. The economic spinoffs of this

festival are unrivalled. More than 13 cooperatives

under Mukumbi Industries brews 12 000 litres of

marula beverages for the public throughout the

festival. Apart from marula beverages, local entrepreneurs

also sell other by-products of marula,

such as jam, cooking oil, soap, hand and body

lotions and nuts.

Tourism remains one of the key competitive

advantages for Limpopo. The Kruger National Park

is South Africa’s number-one tourist attraction. A

number of private concessions have been granted

along the public park’s edge and there are several

private game reserves scattered throughout

the province’s diverse landscapes. Golf tourism

is another growth sector with proximity to the

country’s major point of entry at Johannesburg’s

OR Tambo International Airport a big selling point.

Whether you are a tourist, a business person or

an investor, Limpopo is a province that is rich in opportunities.

We look forward to welcoming you.

www.limpopo.gov.za

11

LIMPOPO BUSINESS 2017/18


MESSAGE

A springboard for regional

integration and commerce

Mr Benjamin Mphahlele, Managing Director of the

Limpopo Economic Development Agency.

the continent’s largest economies, and bordering as it does Botswana,

Zimbabwe and Mozambique, Limpopo Province enjoys a perfectly

natural geographical advantage to enhance regional integration towards

the manifestation of African Agenda 2063, with the ideal of “an

integrated, prosperous and peaceful Africa, driven by its own citizens

and representing a dynamic force in the global arena.”

Benjamin Mphahlele

The African continent and African

economies present massive investment

opportunities in terms

of large infrastructure projects,

innovative and renewable energy

sources, as well as large markets

that encompass retail, commodities,

ICT, manufacturing, arts and

culture, travel and tourism, transportation

and logistics, and other

sectors. As a province in one of

LIMPOPO PROVINCE HAS A PERFECTLY

NATURAL GEOGRAPHICAL ADVANTAGE

TO ENHANCE REGIONAL INTEGRATION

TOWARDS THE MANIFESTATION OF

AFRICAN AGENDA 2063 WITH THE IDEAL

OF “AN INTEGRATED, PROSPEROUS

AND PEACEFUL AFRICA, DRIVEN BY ITS

OWN CITIZENS AND REPRESENTING A

DYNAMIC FORCE IN THE GLOBAL ARENA.”

As a lead economic development agency for Limpopo, the Limpopo

Economic Development Agency (LEDA) is best positioned to articulate

and drive the following:

• Working with its shareholder, the Limpopo Provincial Government,

to implement provincial economic strategy in the context of the

National Development Plan and the cluster-based Limpopo

Development Plan

• Establishing the industrial cluster fora necessary to create and

accumulate the required social capital, thus creating a common

LIMPOPO BUSINESS 2017/18

12


MESSAGE

THE SPECIAL ECONOMIC

ZONES, MUSINA-MAKHADO

AND TUBATSE, ARE INTEGRAL

TO REALISING THE ECONOMIC

GROWTH OF THE PROVINCE

vision for each respective industrial cluster within

an identified geographical space and develop

cluster action plans

• Coordinating key stakeholders within each cluster

or project and facilitating the pace of implementation

through an agreed-upon programme

of action

• Creating investment opportunities in the factorendowed

yet rural province and providing infrastructure

requisite for the industrialisation of the

province. Such infrastructure includes the building

and revitalisation of industrial parks, and the

building of the ICT, green economy and energy

sectors to enhance sustainable global competitiveness.

The Special Economic Zones, Musina-

Makhado and Tubatse, are integral to realising the

economic growth of the province. Limpopo is

rich in mineral resources, and 17 new mines were

established in the greater Tubatse/ Burgersfort/

Steelport area between 2001 and 2016, with a

further 22 new mines planned. Beneficiation of

platinum group metals (PGM), magnetite, vanadium

and chrome provides opportunities that

include catalytic converters, platinum jewellery,

hydrogen fuel cells and solar energy component

manufacturing. The Zones provide to investors

a package of tax-based incentives and provision

of infrastructure necessary to build globally

competitive firms

• Building the Sub-Tropical Fruit Industrial Cluster

by expanding primary production capacity, thus

creating demand and growth of the upstream

agricultural inputs production as well expanding

the provincial presence in the fruit export markets

and the downstream food processing businesses

• Securing Foreign Direct Investment through international

finance and partnerships, while scanning

the global markets for critical skills requisite

for developing the Limpopo economy

• Developing Tourism Destination Assets: the

Limpopo Tourism Agency markets the province

from a tourism perspective, where key heritage

attractions include Mapungubwe and its

artefacts, Makapan’s Cave (a sister project to

the Cradle of Humankind) and the hot springs

at Bela-Bela. But it remains LEDA's mandate to

match the province's natural and professional

services assets/industries to global business value

chains, cross-industry corporate transactions,

as well the hosting and capacitation of diplomatic

missions at home and abroad. Integral to this

objective is the provision of up-to-date market

intelligence about the province's economy and

providing marketing and public relations tools

to sell Limpopo as an attractive and competitive

investment destination.

KEY STRATEGIC INTERVENTIONS

• Facilitate business-to-business linkages

• Delivery of large-scale catalytic projects

• Create investment opportunities in

rural Limpopo

• Drive investor education and secure

Foreign Direct Investment

• Stimulate large-scale farming and

agro-processing

• Encourage creation of urban city regions

• Drive destination marketing

CONTACT INFO

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

13 LIMPOPO BUSINESS 2017/18


MESSAGE

Efficient, reliable, secure public

transport

A message from the Executive Mayor of Polokwane Local Municipality,

Councillor Thembisile Nkadimeng.

Thembisile Nkadimeng,

Executive Mayor

The Municipality of Polokwane

welcomes the introduction of

Leeto la Polokwane which is set

to provide our residents with

much improved public transport

and stimulate the local economy.

Leeto la Polokwane, which means “Our journey”, will provide

an efficient, reliable, secure, cost-effective public transport service

that reduces congestion on public roads, protects the environment

and connects people to daily life. It will also spur economic growth

through sustainable job creation and the facilitation of seamless

trade and business.

Investment in transport infrastructure leads to job creation and

skills transfer while reducing travel times for people to acquire

goods and services. Moreover, the project also provides valuable

public health benefits by reducing road fatalities, crashes and injuries;

reducing personal exposure to harmful air pollutants and increasing

physical activity for users. Such improvements will have a positive

impact in promoting local businesses and stimulating investments

within Polokwane.

The service is initially slated to run from the Central Business District,

past Seshego and into Moletjie. Already, 2.5km of Dedicated Lanes

towards Seshego township have been completed, with a further 1.5km

under construction. This will culminate in 50km of road construction

for trunk and feeder routes.

Moreover, there have also been trunk extension rehabilitation

and upgrades – 13.8km completed with 32.6km in the CBD. To date,

12.8km of roads falling under the national Department of Transport

have been completed, with 24.8km from partnerships with other

grant providers. They cater for pedestrians and cyclists though the

provision of sidewalks, cross walks, paths and cycle lanes.

Special needs facilities including tactile paving for the blind, boarding

bridges to ensure level boarding between the stops, stations and

buses and easy-to-use pedestrian and passenger information signage

have been put in place.

The target for having the first buses rolling is 2018. We are reaching

out to the community to make them aware of Leeto la Polokwane.

We are engaging in a number of stakeholder engagement sessions,

community outreach events, media events and door-to-door

interactions to share progress with the communities we serve

and to receive feedback. We are also active on the various social

media platforms.

LIMPOPO BUSINESS 2017/18

14


City of Polokwane set to grow

Message from the Municipal Manager of Polokwane Municipality, Dikgape Makobe.

MESSAGE

Polokwane is an obvious destination for logistics operations. With

a well-established rail network and Polokwane International Airport,

there are good connections to neighbouring provinces and countries

such as North West, Mpumalanga and the Republic of Botswana. The

large national logistics company, Value Group, only has four big depots

in South Africa: one of them is in Polokwane.

Polokwane is the biggest manufacturing centre in the province,

with several agri-processing firms. Enterprise Foods has a large canning

and emulsion processing plant in the city, Sasko runs a mill and other

big manufacturers include SAB, Tiger Brands and Unilever. Charcoal is

also manufactured in the city.

Polokwane has a well-established financial sector that can assist

with the financing of new infrastructure.

Dikgape Makobe

The Municipality of Polokwane

is ready to achieve its objectives

for development

and service delivery and

welcomes investors who want

to take advantage of the many

opportunities that we offer.

The City of Polokwane is one of

the fastest-growing urban areas

in the north and it is the centre for

regional economic development

in the area. The city has many economic

and business opportunities

for the astute investor.

Strategically located on the

Great North Road linking South

Africa’s economic heartland

of Gauteng with Zimbabwe,

Preparing the way

Council has successfully put in place measures to tackle ageing

infrastructure, water and sanitation backlog, rural electrification and to

develop a solid maintenance programme for its infrastructure. Progress

is under way to improve the total road network in the city.

The city is hard at work to ensure that smart connectivity in the

city is created to have access to broadband and WiFi. The municipality

will continuously implement the Smart City Concept in other service

delivery fields to create an encouraging environment for investment

growth. We have achieved consensus with the business community

to find ways to unlock job opportunities and we aim to find smart

ways to unlock economic growth using the land that the city owns.

There is a great potential for investment in central city property

management and the entertainment sector. The arts theatre project

also brings with it massive investment opportunities in the entertainment

sector. The city centre is ripe for revitalisation and remodelling.

A list of investment opportunities in Polokwane appears in the Local

Government section. Polokwane is also looking for private partners to

assist in rolling out these important catalytic projects:

• Smart Metering Solutions

• 90MW Solar Plant

• Waste Water Treatment Plant (Dalmada and Polokwane)

• Replacement of Asbestos Pipes

• Construction of Polokwane International Convention Centre

• Student Accommodation

• Broadband Fibre Network

• Science and Technology Park

15 LIMPOPO BUSINESS 2017/18


A REGIONAL OVERVIEW OF

LIMPOPO

The Limpopo Development Plan outlines concrete steps to industrialisation, infrastructure

development, promotion of SMMEs and expanding the knowledge economy.

By John Young

Limpopo’s location gives it a strategic importance

that enhances the province’s strengths

in mining and agriculture. Neighbouring

countries Botswana, Zimbabwe and

Mozambique all provide economic opportunities

and the province’s proximity to the powerhouse

of Gauteng ensures a ready market for goods

and services.

Existing manufacturing in the province is centred

on mining areas (smelters and refineries),

agricultural estates (juices and concentrates) and

Polokwane (food and beverages). Agri-processing

is strong, with Pioneer Foods, McCain, Granor

Passi, Kanhym, Westfalia and Enterprise Foods

prominent, but this sector still has potential

to grow.


SPECIAL FEATURE

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 busy N11 highway links

the province to Botswana to

the west and Mpumalanga

Province to the east.

Most of South Africa's logistics

operators have a presence

in the provincial capital

city of Polokwane and freight

logistics hubs have been

established at that city and

at Musina.

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 but English is widely used in

business and government.

Transport within the city of Polokwane is being

transformed by the introduction of a bus

rapid transport system, Leeto la Polokwane. In

the province as a whole, 22.6% of households in

Limpopo use bus transport and 45.8% use taxis.

Great North Transport falls under the

Limpopo Economic Development Agency.

The company has more than 500 buses,

covers about 36-million kilometres every

year on 279 routes, employs more than

1 200 people and transports 37.6-million

passengers.

The Polokwane International Airport (PIA) is

wholly owned by the provincial government

and run by the Gateway Airport Authority

Ltd (GAAL), an agency of the Department of

Roads and Transport. It has the potential to

be an important regional cargo airport. SA

Airlink offers 21 flights to Johannesburg six

days a week. The airline also provides links

between Phalaborwa and Johannesburg,

and between Hoedspruit and Johannesburg

and Cape Town.

The province also has a sophisticated rail network

which Transnet Freight Rail aims to further

expand, primarily to haul the province’s vast reserves

of coal away to the coast at Richards Bay.

Special Economic Zones

One of the ways in which Limpopo is leveraging its

strategic location is through the establishment of the

Musina-Makhado Special Economic Zone. Recently

promulgated by national government, the SEZ will

have among its core functions the clustering of logistics

operations. Located in the Vhembe District in

the far north, this SEZ is near the border of Zimbabwe

and on the Great North Road, thus linking with the

broader Trans-Limpopo Spatial Development Initiative.

Other focus sectors are agri-processing, energy

and mineral beneficiation. Exxaro and De Beers have

large mining operations nearby. A consortium of

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

into the Musina-Makhado SEZ to run the mineral

beneficiation operations.

A second application for an SEZ has been made

within the province’s platinum belt in the east of

the province. The Tubatse SEZ, in the Sekhukhune

District Municipality, will focus on the beneficiation

of platinum group metals (PGMs) and mining-related

manufacturing.

LIMPOPO BUSINESS 2017/18

18


SPECIAL FEATURE

The following areas have been identified as

priority zones for the province’s industrialisation

strategy: Polokwane, Lephalale, Tubatse, Tzaneen

and the Makhado-Musina corridor.

Economic strengths

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.

Potatoes are grown, together with 75% of 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 (www.

worldstopexports.com). Limpopo has been a major

contributor to the country’s excellent export 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.

The province has huge reserves of coal, platinum,

chromium, uranium clay, nickel, cobalt, vanadium,

limestone and tin. Demand will always fluctuate,

and the commodities cycle has recently been very

volatile, but the world will always need minerals.

Limpopo assets 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.

Two of the largest engineering projects in the

history of South Africa have recently been undertaken

in Limpopo. 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 combined land area of Limpopo's

wnational, provincial and private game and nature

reserves is 3.6-million hectares. According to the

Premier’s office, the tourism sector employs about

22 400 people.

The Kruger National Park is one of the world’s

most famous conservation areas, and a major attraction

for the region. Limpopo has two World

Heritage Sites: the Mapungubwe National Park (the

19 LIMPOPO BUSINESS 2017/18


SPECIAL FEATURE

site of a 12th-century iron-age civilisation) and the

Makapans Valley (Ndebele history and palaeontological

exhibits).

Industrialisation

The official approval of Special Economic Zone

status for Musina-Makhado in 2016 was closely followed

by the decision of the Limpopo Provincial

Government to apply for SEZ status for Tubatse.

This marks a determined shift in economic policy

towards promoting industrialisation and manufacturing

through beneficiation.

Heavy industries that have been identified as possible

tenants for the Musina-Makhado SEZ include

several that are dependent on the mining industry

to supply feedstock – possible processing facilities

that have been suggested to investors include plants

for coking, ferrochrome and ferrosilicon production,

pig-iron metallurgy, steel, stainless steel and lime.

A proposed petrochemical zone in the SEZ might

include a coal-to-liquids plant and a synthetic bitumen

plant.

A Chinese company has signed an agreement

to manage the Energy and Metallurgical Cluster

within the Musina-Makhado SEZ. Shenzhen Holmor

Resources Holdings will invest about R40-billion to

create the infrastructure for a range of private investors

to come in and produce steel, ferrochrome, pig

iron and the like.

The Tubatse Platinum SEZ is even more closely

related to the mining industry, as its name implies.

According to the Limpopo Economic Development

Agency (LEDA), 17 new mines were established in

the greater Tubatse/Burgersfort/Steelport area between

2001 and 2016, and a further 22 new mines

are planned. The completion of the large new De

Hoop Dam makes these plans possible.

The focus at Tubatse will be on the beneficiation

of platinum group metals (PGM), magnetite,

vanadium and chrome. Some of the products suggested

are: catalytic converters, platinum jewellery,

hydrogen fuel cells and solar energy component

manufacturing (wind turbines and PV modules).

A Mining Supply Park is envisaged which will be a

big boost for local businesses and suppliers. Getting

local small, medium and micro-enterprises (SMMEs)

engaged with and supplying to the mining sector

is a goal of the provincial authorities. A Limpopo

Mining Forum has been proposed and the provincial

government would like to see 30% of every

contract issued on capital, consumables and services

stay in the province, subject to their being a supplier

who is able to fulfil the contract.

Regions

Limpopo’s dry, cattle-rearing, western areas contrast

with the subtropical regions of the east where

forestry thrives and the central regions where vast

plantations produce 60% of the country’s tomatoes.

The area north of the Soutpansberg Mountains is

semi-arid. The Waterberg mountains stretch over

5 000km² 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 cultivation of citrus, potatoes

and tomatoes is done on a large scale in the district.

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.

Polokwane has good hotel and conferencing facilities.

Park Inn by Radisson Polokwane is the newest

hotel to open in the city. 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%)

and Groblersdal is the district capital. The region’s

fertile lands produce maize, tobacco, peanuts,

LIMPOPO BUSINESS 2017/18

20


SPECIAL FEATURE

ZIMBABWE

NAMIBIA

BOTSWANA

North West

Limpopo

LIMPOPO

Mpumalanga

Gauteng

SWAZI-

LAND

MOZAMBIQUE

Northern Cape

Free State

LESOTHO

KwaZulu-

Natal

Western Cape

Eastern Cape

vegetables, sunflower seeds and cotton on a large

scale. Agriculture makes up 25% of the economy.

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 and 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 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

mangoes, avocadoes and tomatoes. Forty sawmills

operate in the area, drawing on the heavily forested

hills around the city.

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. 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.

Thohoyandou is the administrative centre of

Thulamela Local Municipality, Vhembe District

Municipality and the University of Venda. The Ivory

Route passes through the district. 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 power-generation 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 mark it as a popular

tourism destination, and the district has many luxury

golf estates.

21 LIMPOPO BUSINESS 2017/18


SPECIAL FEATURE

Limpopo Development Plan

Improving lives, and creating a conducive environment for investment.

Improving the lives of the citizens of Limpopo is

the overarching aim of the Limpopo Development

Plan. The economic levers that can bring

that improvement about present investment opportunities,

particularly in the sectors that have been

identified as key drivers of growth: mining, tourism

and agriculture.

The Limpopo Development Plan (LDP) is targeting

three broad areas for improvement and development:

socio-economic, infrastructural and institutional.

Every department of the Limpopo Provincial

Government has targets within the LDP which

are translated into actionable programmes to be

implemented within time-frames.

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. Increased job creation,

higher incomes, better access to good public

services and sound environmental management are

the measures of the development plan.

The plan, currently in its implementation

phase, is further supported by a spatial investment

framework in public and private sector

infrastructure, an integrated public transport policy

and land policies.

This article focusses on the economic aspects

and the potential of the LDP for private investors

to participate.

Key elements of the Limpopo Development Plan

are: industrialisation (beneficiation of mining and

agricultural products and produce); mining (local

suppliers, improved training and access to sector

for entrepreneurs); infrastructure development;

agri-processing; SMME promotion; and ICT and the

knowledge economy (establish a WAN footprint).

Mining is currently the most important part of

the provincial economy, contributing nearly 30% to

GDPR. Many platinum mining developments on the

eastern limb of the Bushveld Complex have spurred

growth in that region. One of the goals of the LDP

is to see more beneficiation from the mining sector,

which will support the goal of further industrialising

the province’s economy. Related to this is an

emphasis on the manufacturing sector.

In response, the two Special Economic Zones

(SEZs) at Musina and Tubatse promote manufacturing.

Specific manufacturing value-chains are identified

for each area, based on the base mineral being

LIMPOPO BUSINESS 2017/18

22


SPECIAL FEATURE

mined. The LDP notes that it

is also important for planners

to “promote diversification and

multi-skilling of the workforce,

in order to mitigate the risks of

shocks associated with commodity

price dips and mine

closures”.

The following areas have

been identified as priority

zones for the industrialisation

strategy: Polokwane, Lephalale,

Tubatse, Tzaneen and the

Makhado-Musina corridor.

Strategic infrastructure

In as much as the Limpopo

Development Plan is aligned

with the broader National

Development Plan, there are

several national Strategic Infrastructure Projects

(SIPs) which affect Limpopo.

Three in particular will make a big impact, namely

SIP 1 (Unlocking the Northern Mineral Belt with

Waterberg as the Catalyst), SIP 6 (Integrated Municipal

Infrastructure Project) and SIP 7 (Integrated Urban Space

and Public Transport Programme). The last two influence

developments in the provincial municipalities of

Lephalale, Mopani, Sekhukhune, Capricorn, Vhembe

and Polokwane.

Other national SIPs of relevance relate to green

energy, agri-logistics and rural infrastructure,

regional integration and water and sanitation

infrastructure.

Within Limpopo, the Premier’s Infrastructure

Coordinating Committee (PICC) is a vital component

in the rollout of new infrastructure. There are

several locally driven projects boosting the provincial

economy and are being promoted within

the context of this Limpopo Development Plan:

construction of Nwamitwa Dam; raising of Tzaneen

Dam wall; integrated Mooihoek Water Scheme; reticulation

from De Hoop and Nandoni Dams; purified

water supply to Bela-Bela, Modimolle and

Mookgopong local municipalities; rural access roads

in support of agriculture and tourism clusters; solar

photovoltaic electricity generation; information

and communication technology; infrastructure at

Polokwane International Airport; nodal infrastructure

for the priority growth points; and adequate maintenance

for all existing infrastructure.

Each of these infrastructure improvements will

make life better for local residents, and they will also

create a more conducive environment for investors.

The Limpopo Department of Economic

Development, Environment and Tourism (LEDET)

is coordinating the province’s strategy to attract investors.

Key to the plan is public investment into

priority growth points in selected economic sectors.

These cluster priorities underpin the economic part

of the plan:

• Coal: Petrochemical and Energy Cluster in Lephalale

(Green City urban development, Growth Point)

• Platinum Cluster in Mokopane and Tubatse (Mining

Supplier Park)

• Musina-Makhado Corridor Mining Cluster

• Phalaborwa Mining Cluster (Copper, Phosphate

and Magnetite)

• Polokwane and Musina Logistical Hubs

• Various Agricultural Clusters, based on Agri-parks

• Various Tourism Clusters, in every district.

Existing tourism assets include two UNESCO World

Heritage Sites (Mapungubwe National Park and the

Makapan Valley) and the iconic Kruger National Park.

There is enormous potential for growth in cultural

tourism where small villages could offer experiences

based on traditional practices, unique arts and crafts

and local cuisine.

Cluster Value-Chain Development Strategies,

including beneficiation opportunities, have been

developed for each of these clusters by the LEDET.

International relations is the responsibility of

national government, but the LDP has flagged a

number of potential areas for regional integration

that would be mutually beneficial: relationships with

Botswana and Zimbabwe relating to the Coal and

Energy Cluster in Lephalale and the Mining Cluster

in the Musina-Makhado Corridor; an agreement

with Zimbabwe to improve the efficiency of the Beit

Bridge Border Post, as part of the Logistics Cluster;

and an agreement with Mozambique relating to

tourism and nature conservation.

23 LIMPOPO BUSINESS 2017/18


Special Economic Zones

Investor-friendly measures are attracting investors to designated growth

zones in Limpopo.

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 a Special Economic Zone (SEZ)

supports the specific industry and attracts foreign

investors with a strong focus on beneficiation of

local produce or materials. SEZs are designed to

attract investment, create jobs and boost exports.

Skills transfer is another stated aim behind the

SEZ programme.

The National Department of Trade and Industry

(dti) is the lead agent in the creation of Special

Economic Zones, which are part of the national

Industrial Policy Action Plan (IPAP).

Several incentives are available to investors in

SEZs. These include tax breaks from the South

African Revenue Service (SARS), subsidised interest

rates from the Industrial Development

Corporation (IDC), subsidies for employees

earning below a certain level and subsidies for

the training of the workforce, incentives and

grants from the dti, and incentives from national

electricity utility Eskom.

Other benefits might include a building allowance,

employment incentives and the fact that an

SEZ is a customs-controlled area. Within the dti’s

Manufacturing Competitiveness Enhancement

Programme, there is a Green Energy Efficiency

Fund, all of which are designed to make investment

in the zones more attractive, and to bolster

the country’s manufacturing sector.

LIMPOPO BUSINESS 2017/18

24


SPECIAL FEATURE

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

will result in the mine producing until the 2040s.

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-Makhado 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.

Provision in being made in the planning phase

for light, medium and heavy industry at the SEZ.

A petrochemical zone is envisaged which could

contain any or all of the following facililties:

• coal-to-liquids plant

• coking coal plant and power generation

• methanol plant

• synthetic bitumen plant

• plasma waste gasification plant

• water treatment plant.

Tubatse SEZ

Musina-Makhado SEZ

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-Makhado is strategically located

near the border of Zimbabwe and on the Great

North Road which links South Africa to the broader

Southern African region.

The location of the Musina-Makhado 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 to be concentrated on include

agri-processing (Foskor has a plant in nearby

Phalaborwa), energy and mineral beneficiation.

Exxaro has coal- mining operations in the north and

De Beers’ giant Venetia diamond mine is nearby. The

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 (PGM) and mining-related

manufacturing. The province of Bashkortostan in

Russia has also expressed an interest in the SEZs

of Limpopo.

Phase one of the SEZ project would see a 280ha

site developed to accommodate:

• a mining suppliers park

• light manufacturing

• heavy manufacturing

• logistics

• a solar energy cluster

• a PGM beneficiation cluster.

Among the products that might be produced at

the SEZ are catalytic converters, hydrogen fuel cells,

chemotherapeutic agents, wind turbine blades,

platinum jewellery and photo-voltaic solar modules.

Metal processing that holds potential includes the

conversion of magnetite to pig iron and steel, magnetite

to vanadium pentoxide and waste to titanium.

25 LIMPOPO BUSINESS 2017/18


FOCUS

LEDA: Enterprise

Development and

Finance Division

Enabling business to grow while reducing risk.

The Enterprise Development and Finance Division (EDFD) within

the Limpopo Economic Development Agency (LEDA) provides

financial products in support of businesses which are starting out

or which need funds to tackle a project.

Funding is available in a wide range of sectors, including manufacturing,

agri-business (agri-processing), construction, mining and mining

beneficiation, tourism, business support services, retail, professional

services, transport services and ICT.

Projects in the following sectors do not qualify for LEDA products:

primary agriculture; infrastructure development; residential and commercial

property; explorations; product development and licensing;

non-profit organisations(NPOs) and Trusts.

Among the most important criteria which the Enterprise Development

and Finance Division uses to assess the desirability of a business or project

are the possible developmental impact in terms of new jobs being

created or a facility being built, proof that there is a viable market for the

product or service about to be offered and profitability.

Core funding products

• Asset / equipment finance

• Procurement / bridging finance

• Working capital finance

• Start-up finance

• Franchise finance

Although LEDA is active in each of these product divisions, the most

popular in recent years has been procurement/bridging finance option.

This financial product requires no collateral and is linked to the business

owner having a government contract. This reduces risk for all parties.

“There are three parties involved,” says Loan Proposals and Origination

Manager Chavani Khosa. “There is the employer government department

that issues the contract for work, the client (or business undertaking

the work) and LEDA. All three parties sign the agreement which states

that the whole amount must be paid to LEDA when the client has

completed the job.”

TEN IMPORTANT

STEPS TO SECURE

LEDA FUNDING:

1. Safety of the facility

2. Background of the client

3. Financial position of the

client

4. Needs of the client

5. Security / collateral

6. Desirability and

developmental impact

7. Demonstrate the market

8. Profitability

9. Cash flow available for

debt service

10. Source of loan

repayment

The client needs to show LEDA

that he or she has a purchase order

from a government department.

That will unlock funding to allow

work to begin on the project and

the client will then submit regular

progress reports to LEDA. Once the

job is done and the full payment

paid to LEDA, the loan amount and

interest is subtracted by LEDA and

the balance paid out to the client

or contractor.

In the case of an application

being received for a working

LIMPOPO BUSINESS 2017/18

26


FOCUS

capital finance product, the client

must prove that they have a

market for the product or service.

In addition, says Khosa, “LEDA

will go and verify that this is a legitimate

business with an on-site

inspection.” Then money can be

released to buy stock or building

materials.

LEDA has Business Origination

Officers who take clients through

the qualification criteria required

when an application is made. Any

one of these types of business

ownership models can apply:

sole trader; close corporation;

private company; co-operative.

Partnerships, policies

and profit

LEDA has entered into several

partnerships as it extends and

diversifies its funding portfolio.

These include large companies

such as Foskor, the Dwarsriver

mine near Steelport, provincial

government departments, various

municipalities, ABSA bank

and the Industrial Development

Corporation (IDC).

The credit policy and the

Credit Procedure Manual are under

consideration by the approval

authority. During the previous financial

year, LEDA had a return

on investment in the Enterprise

Development and Finance

division of R4-million.

NEW BUSINESS

Projected cash flow statement –

12 months

Projected financial statements –

3 years

Interim financial statements

Current budget

Bank statement

Criteria for funding

• The business must be

registered

• Tax clearance certificate from

the relevant authorities is

required

• Non-refundable application

fee. (R500 - R5 000)

• Management must comply

with the business statues of

South Africa

• Viable business plan or

company profile:

EXISTING BUSINESS

Cash flow projections – 12 months

Financial statements - 3 years

Projected financial statements -

3 years

Interim financial statements

Current budget

Bank statements (3 months)

BUSINESS AND TECHNICAL TRAINING

OFFERED BY LEDA EDFD

• Public service supply chain procedure and related processes

• Development of business plan

Business customer relations

Business marketing

• Understanding income tax

• Project management

• Financial management

Business cost determination and pricing

• Automotive

• Construction and building related vocation skills including,

bricklaying, plastering, carpentry, plumbing, electrical and

welding

• Hospitality

• Farming and agricultural training

BUSINESS

SUPPORT OFFERED

BY LEDA EDFD

• Co-operative development

Business incubation

Business advisory services

Business registration and

statutory compliance

• Development of business

plans and profiles

Business linkages

• Mentoring and counselling

27

LIMPOPO BUSINESS 2017/18


FOCUS

Risima Housing and

Finance Corporation

Providing access to housing and unlocking

value in rural areas.

The Risima Housing and Finance Corporation, a subsidiary of Limpopo

Economic Development Agency (LEDA), exists to provide

housing finance for citizens of Limpopo. The word Risima is derived

from the Tsonga word for “value”.

The CEO of the organisation, Dr Shima Nokaneng, says that the particular

target market is the lower-income group, who “sometimes have

challenges getting approvals from commercial banks”.

A primary focus for Risima is the “gap” market. This refers to prospective

home owners who earn too much to qualify for state assistance (for example,

RDP housing) but not enough to qualify for mortgage loans. Typically,

this covers incomes ranging from about R3 500 to R15 000 per month.

Partnerships

Two important programmes are run by Risima in conjunction with

national and provincial government departments.

Government Employees Housing Scheme (GEHS): Together with

the National Department of Public Service and Administration, Risima

arranges for a non-mortgaged financial

product to assist government

employees get a foot on the

property ladder.

Dr Nokaneng reports that a

default rate of less than 2% proves

the value of such a scheme: “Our

advantage is that we target government

employees which helps

to reduce risk. Applicants have

to be employed with a good

credit risk and then we check affordability

and match that with

documentation such as payslips.”

Finance Linked Individual

Subsidy Programme (FLISP): In

partnership with the Limpopo

Department of Cooperative

LIMPOPO BUSINESS 2017/18

28


FOCUS

Affairs, Human Settlements and

Traditional Affairs (COGHSTA),

Risima distributes grants to applicants

who qualify for money

to make up the shortfall between

an asking price and what the applicant

can afford or if a deposit

is needed but the applicant can’t

fund it. The gap market is the

target market for FLISP.

The subsidy is being rolled out

in the Polokwane suburb of Bendor,

Lephalale and other regions of the

province. This comprises threebedroomed

houses and semidetached

townhouses.

Mining houses: A new area of

cooperation is imminent in that

Risima and a number of mining

houses such as Exxaro, Amplats

and Northam (at Thabazimbi) have

been in discussion about working

together to deliver housing.

Preparatory work has been done

and concrete steps should be seen

in the fourth quarter of 2017.

Expansion

Risima’s mandate extends across

each of the five regions of the

province of Limpopo and it

currently has four offices. As of

October 2017, the company head

office will be in the provincial

capital, Polokwane, on the corner

of Rabie and Van Rensburg

streets. “Our new offices will be

bigger,” says Dr Nokaneng, “and

we will be more accessible to

customers and stakeholders.”

New offices are also to be

established in areas such as

Makhado (Louis Trichardt),

Lephalale, Musina and Modimolle

to further widen the company’s

footprint.

This geographic expansion is proof that demand is on the rise and

that Risima’s more aggressive approach is paying off. The large coal

mine and new power station at Lephalale mean that a further project

comprising 2 700 units is in the works in that area.

LOANS GRANTED

Region

Loans granted

Capricorn 61 653 927

Mopani 10 587 032

Sekhukhune 9 174 632

Vhembe 14 998 829

Waterberg 14 439 211

Total 110 853 631

GOALS 2016/17

Risima 2016/17 Target Achieved

Home loans 190 191

Loan approvals R78.9-million R110.8-million

Contribution to LEDA income 5.7% 7.5%

29

LIMPOPO BUSINESS 2017/18


FOCUS

The company has loans to the value of R432.4-million as at 31 March

2017. “Because of the expansion of our footprint we are in the process

of raising more capital,” reports Dr Nokaneng. The CEO stresses the

point that Risima is self-sustaining, with no grant paid by the Provincial

Treasury. A clean audit was also achieved in the most recent financial

reporting period. “Our profit for the most recent financial year was

R32-million.”

Innovation

An innovative approach to unlocking the value of land in traditional

areas may be on the cards if the National Home Builders Registration

Council (NHBRC) approves a plan related to the conversion of Permissions

to Occupy (PTO). Where there are no title deeds it is difficult to establish

value, get loans or use land as collateral for buying anything else. Risima

sees potential in converting PTOs to title deeds and is looking at deep rural

areas such as Vhembe and Sekhukhune. Even people who might work in

cities don’t want to give up their ties to traditional land, but they also want to

get certainty of ownership and the right to leverage that ownership if they

RISIMA HOUSING FINANCE CORPORATION

Risima Housing Finance Corporation (Pty) Ltd was originally

known as Gazankulu Finance Company (Pty) Ltd, established

in April 2000. Risima is a wholly owned subsidiary of LEDA; it

falls under Schedule 3D of the Public Finance Management Act

1 of 1999 (PFMA) as a provincial public entity, established by

Limpopo Department of Economic Development, Environment

and Tourism in terms of the Limpopo Development Corporation

Act 5 of 1994 (LDCA).

Risima was established for the purpose of giving effect to

Section 3 (1) of the LDCA which requires LEDA, among others, to

provide housing in Limpopo. Risima has been created to respond

to the need to create access to home loan finance to all residents

of Limpopo, irrespective of where they live, in so doing: assist

LEDA to achieve its objective of job creation and empowerment

in Limpopo through housing construction, in support of the

Provincial Employment, Growth and Development Plan.

Key focus areas are to:

• To provide access to home loan finance and property development

finance to residents of the province in both rural and

urban areas

• To create shareholder value and facilitate employment

creation and economic growth

• Ensure the economic, social and environmental sustainability

of Risima.

want to. The Risima scheme will be

limited to government employees,

thus reducing risk to the lender.

Risima financial

products

• Residential building construction:

for clients to build a house

• Purchasing of existing residential

houses: clients buy existing

houses

• Purchasing of sites: clients purchase

vacant sites

• Extensions and renovations:

clients improving their houses

• Switch bonds: moving

a bond from another

financial institution

to Risima

• Installation of solar water heating

systems

• Additional loan: clients with

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. Clients can apply

for the funds when they

need them.

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

LIMPOPO BUSINESS 2017/18

30


Limpopo Connexion

Transitioning from a resource-based economy to a

knowledge economy.

FOCUS

Limpopo Province is taking active steps to develop its information

and communications technology (ICT) sector to the point

where it can take the provincial economy to a higher level

and improve the delivery of government services.

The agency charged with achieving these aims is Limpopo

Connexion. Baldwin Ramosobane, Acting CEO: Limpopo Connexion,

gives the broad aims of the agency in these terms: “A key measure is

to say how would Limpopo Connexion transform Limpopo from a

resource-based province to a knowledge-based province.”

The Knowledge Economy refers to the use of knowledge to produce

economic benefits through tangible and intangible assets. The concept

refers to the manner in which various high-technology businesses,

especially computer software, telecommunications and virtual services,

as well as educational and research institutions, could contribute

to a country's economy. Creating a strong and innovative ICT sector is

a vital step on the way to establishing a knowledge-based economy.

World leaders are increasingly adapting to the fact that a Fourth

Industrial Revolution is under way. The first was powered by

water and steam, the second used

electricity and introduced mass

production and the third revolution

in the global economy related

to automation, electronics and

computers. Now a Fourth Industrial

Revolution is combining a range of

scientific breakthroughs at great

speed: central to the concept is

connectivity and access to data.

This new economy is creating

new jobs and creating the potential

for jobs in the future in sectors

that don’t yet exist. Only by having

a strong and adaptable communications

and data network can a

regional economy take advantage

of these changes as they occur.

31

LIMPOPO BUSINESS 2017/18


FOCUS

Ramosobane cites aspects such as digitalisation, robotics, 3D printing,

green solutions and big data as elements of the new economy that

are driven through ICT. As a consequence, one of the key objectives

of Limpopo Connexion is the development of broadband telecommunication

infrastructure for the province.

Planners are looking beyond the ICT sector in isolation. As

Ramosobane notes, “There have to be ways of using technology in

different sectors of the economy, because ICT is all pervasive. Whether

it’s finance, whether it’s roads, or it's construction or mining, ICT and

technology will be used in those sectors.”

With Limpopo’s great strength as a resource-based economy, what are

the ways that ICT can further develop the mining and agricultural sectors?

Miners can cut costs enormously if they use up-to-date data- collection

methods rather than traditional methods. Data-driven research can

help to make sure that communities benefit to a greater degree when

beneficiation of minerals or agricultural produce takes place.

And Ramosobane believes that there is great potential beyond

the resource economy: “When you talk about tourism, how do we sell

Limpopo globally without actually going there, but using innovation

systems and technology?”

Strategic objectives

Open access broadband telecommunications network infrastructure:

Government, business, rural communities, students and citizens

at large should all be able to access affordable broadband infrastructure

services. This initiative should empower community members to

participate in the mainstream economy. Says Ramosobane, "Any person

in the province, be it plumbers, be it students at the universities,

learners and educators at high schools, ordinary people, households;

they should all be able to have access to the affordable broadband

infrastructure services and cheaper technologies."

A science and technology park (STP): An STP is a space, physical or

cyberspatial, managed by a specialised professional team that provides

value-added services, whose aim is to increase the competitiveness

of its region or territory of influence by stimulating a culture of quality

and innovation among its associated businesses and knowledge-based

institutions, organising the transfer of knowledge and technology from

its sources to companies and to the marketplace, and by actively fostering

the creation of new and sustainable innovation-based companies

through incubation and spin-off processes. It must attract international

ICT companies to the province where they can interact and partner with

academic institutions and local businesses. The international companies

can originate (and pay for) research projects that are directly

relevant to the work they are doing, rather than doing research for

research’s sake. Provide direct links between the private sector, government

and universities.

Free and open source software

(FOSS): Providing free

and open source software

to the citizens of Limpopo

cuts the cost of ICT, thus enabling

small businesses to gain access to

the advantages of the Knowledge

Economy without having to pay

high prices for licensed software

packages.

A provincial FOSS strategy

has been adopted and

several pilot programmes

rolled out.

These programms include

systems such as a Wildlife Trade

Permit System, Tourism Guide

Registration Systems, a Consumer

Affairs System, a Farmer’s Portal

and Mobile Application, and an

eHeritage Database and Portal

among others.

Limpopo Connexion, in partnership

with Tirelo Bosha-Public

Service Improvement Facility, a

bilateral programme between

Belgium and South Africa

facilitated by the Department of

Public Service and Administration

(DPSA), has implemented an open

source-based offline content

project in 15 schools previously

without Internet connectivity.

With feedback from the Limpopo

Department of Education and

principals from schools, the project

will be expanded by a further

grant from the Belgium government

to 45 more schools in the

Province. There was significant

improvement in the matric results

due to the introduction of

the system.

Training in FOSS is being undertaken

in partnership with

SUSE, a large international open

source software company.

LIMPOPO BUSINESS 2017/18

32


FOCUS

ICT Skills and SMME

Development to promote small,

medium and micro-enterprises

(SMMEs): The objective is to ensure

that small enterprise owners

and entrepreneurs are able to

create and grow their businesses.

With access to broadband and

to free and open source software,

SMME owners can be “part of

the global village”, according to

Ramosobane. Not only can ICT

empower SMMEs and entrepreneurs

to improve their businesses

in terms of marketing, ordering

and stock-taking, but there are

myriad opportunities for SMMEs

where ICT is central to the business

itself: web design, e-commerce

and online multi-media are

some examples.

A study has shown that 75%

of ICT SMMEs are in the Capricorn

and Waterberg districts. Better access

for other areas is one of the

goals of Limpopo Connexion. To

incubate, support and accelerate

start-up companies, Limpopo

Connexion wants to ensure

that the core location between

the major corporation and the

research institution and government

will support the commercial

research items. From within

the Science and Technology

Park there will be opportunities

for mentorship and access to a

range of information for SMME

operators.

Broadband for all

Rolling out broadband within

Limpopo is a key responsibility of

Limpopo Connexion. A priority

goal of the Limpopo Provincial

Government is to establish a secure,

shared, open access and affordable broadband Wide Area

Network (WAN) within Limpopo.

Broadband infrastructure also forms part of the strategic objectives

identified in the Department of Communication Strategic Plan, the

National Information Society and Development Plan, the Green Paper

on the National Integrated ICT Policy, and e-Government initiatives.

Both the Limpopo Development Plan (LDP) and the Provincial Inclusive

Information Society Strategy outline specific ICT objectives.

Several investment opportunities for the private sector are associated

with the rollout of broadband in Limpopo. “Limpopo Province

will be a key opportunity for entrepreneurs and investors,” reports

Ramosobane. There are the opportunities for both large and small

companies, “The major companies will do the construction of the big

fibre infrastructure and then the small companies will actually connect

households through last mile connectivity.”

Phase one of the rollout will see the city of Polokwane, the Capricorn

District and provincial key points connected. This phase of the project

will kick in during the third quarter of 2017.

Phase two will see broadband connectivity expanded to cover the

whole province of Limpopo. Given the geographic and economic

footprint of the province, a large number of companies, government

departments and businesses will actually be covered by phase one.

At this stage, phase one is envisaged to last for a period of three

years, but Ramosobane says that the active involvement of the private

sector may hasten progress:

"As government, we want to work with the private sector. We want

to say, the private sector must understand what is the vision of the

Limpopo Connexion and Limpopo Province in terms of broadband.

If they continue working with us, we believe that with the private

sector we can achieve the goal of connecting all of Limpopo quicker

than we thought."

33

LIMPOPO BUSINESS 2017/18


ADVERTORIAL

Making it easier to do business with Nedbank

Whole-view Business Banking

Loderick Lubisi, Nedbank Provincial General Manager for Retail and

Business Banking for Mpumalanga and Limpopo, explains how

Nedbank can help business owners in the region.

on what’s most important to you – running your

business,’ says Lubisi.

In line with our new brand proposition encouraging

clients to see money differently, our Mpumalanga

and Limpopo agriteams are committed to providing

key support, as well as advisory and business services

to all roleplayers involved in the agrispace in both

provinces. We will share our financial expertise

and play a role in advancing profitable, sustainable

practices throughout the agricultural production and

consumption value chain.

There is good news for Mpumalanga

and Limpopo business owners and

entrepreneurs seeking a unique banking

experience: Nedbank Business Banking

has business managers, located across

both provinces, specialising in commercial

industries as well as the agricultural sector.

Lubisi says his team is ready to assist clients with

professional advice, industry-specific solutions

and a comprehensive range of financial products

and services.

‘At Nedbank Business Banking we believe that you

need a financial partner who not only understands

your circumstances and aspirations, but also provides

you with relevant solutions and a banking experience

that is hassle-free. This allows you to concentrate

We recognise that farmers today face many

challenges and that to remain competitive they

continually have to improve and adopt best practices

and new technologies.

‘We encourage you to see money differently with

Whole-view Business Banking’, says Lubisi.

‘We are also involved in a number of initiatives with

the public sector, ensuring that such partnerships

support provincial government goals in respect of job

creation and growing the economy,’ Lubisi concludes.

Should you be interested in taking your business to the

next level, please call Loderick Lubisi on

+27 (0)13 759 4910, send an email to

loderickl@nedbank.co.za or

visit www.nedbank.co.za.


ADVERTORIAL

Nedbank Business Bundle is a game changer

with savings and personalised services for

small enterprises

The new Business Bundle from Nedbank is a game changer for small

enterprises in Mpumalanga and Limpopo, offering the best value for

money when compared to rival offerings.

With the country’s challenging economic

environment, the Business Bundle not only

offers you personalised banking services,

but also critical tools to save – with up to

40% savings on monthly banking fees –

contributing directly to the bottomline at a

time when every cent counts.

In line with Nedbank’s new brand proposition to see

money differently, the Business Bundle resonates with

the bank’s commitment to do good by promoting

small enterprises.

‘As a bank for small businesses we are committed

to partnering with entrepreneurs to help grow their

businesses. As such, Nedbank is always looking at

ways in which we can help unlock the value of our

clients’ businesses. We support their business growth

journeys by providing practical tools to help them

run their businesses,’ says Loderick Lubisi, Nedbank

Provincial General Manager, Retail and Business

Banking for Mpumalanga and Limpopo.

‘Small businesses are the lifeblood of our economy.

Nedbank has, over the years, instituted various

interventions aimed at giving support to the smallbusiness

sector.’

Trust us to protect your business against

everyday risk

Stella Tedeschi, Regional Manager of Broker

Channels for Mpumalanga and Limpopo, says

Nedbank Insurance is not a one-size-fits-all

business.

Nedbank Insurance has evolved into a business

that provides integrated insurance to individual

and business clients. Our offering comprises

comprehensive short-term insurance solutions,

life insurance solutions and investments.

Nedbank Insurance provides a comprehensive

offering of short-term products on behalf of

blue-chip insurers. Should you be interested in

expert advice on the type of cover that is exactly

right for your business needs, look no further.

Nedbank has a team of specialists ready to provide you with

information necessary to allow you to make an informed

decision. For more information call Stella Tedeschi on

+27 (0)12 436 7659, send an email to

stellat@nedbankinsurance.co.za,

or visit www.nedbank.co.za.

To see how Nedbank can help your small business reach its

goals call Loderick Lubisi on +27 (0)13 759 4910, send an

email to loderickl@nedbank.co.za or

visit www.nedbank.co.za/business.

Nedbank Ltd Reg No 1951/000009/06. Nedbank Ltd Reg Authorised No 1951/000009/06 financial

Authorised financial services services and registered and registered credit credit provider provider (NCRCP16).


OLD MUTUAL ENABLING

POSITIVE FUTURES

IN LIMPOPO

Old Mutual South Africa (OMSA) is a significant participant in the South African economy and committed to

enabling positive futures for all our stakeholders, especially our customers. We offer a range of financial services

that span investment, life assurance, asset management, banking, healthcare and general insurance.

To ensure that we have our fingers on the pulse of each of our nine provinces, Old Mutual has established

leadership boards in each province to serve as links between the province and our business. These Provincial

Management Boards, or PMBs, are your primary point of contact with us. Together we can ensure that Old Mutual

makes a positive impact on the future of this province and its people.

MEET LAWRENCE GABELA

Limpopo Provincial Management Board, Chairperson

“Plans remain ideas until they are executed.”

Limpopo is a growing region with lots of business investment opportunities such as the

Waterberg and Musina districts.

As PMB CHAIRPERSON I undertake to:

• Commit to serve the Board according to the mandate and the vision of the Board constitution and take the

province to a higher level.

• Work together as the unit for IFS strategy.

• Defend and grow our current market share (which is currently at 22%) by taking advantage of our wide

branch network and other business units like Masisizane that make an impactful and uplifting difference to

our wonderful province and the communities in which we operate.

• Remain driven by our PMB principles and its values and continue to strive to do great things for our business

and our customers and our country.

GET IN TOUCH: email LimpopoPMB@oldmutual.com

ombds 4.17.10479.02

INVESTMENTS I SAVINGS I PROTECTION

Old Mutual is a Licensed Financial Services Provider


OUR BEST ADVICE TO YOU IS:

ADVICE MATTERS

As custodians of the savings and

investments of millions of South

Africans, we know that ADVICE

MATTERS when making financial

decisions.

How to choose the right financial adviser

A good financial adviser is a professional who

considers all your financial needs and goals, and has

the knowledge, experience and support to give you

Advice That Matters.

1. Ask to see the adviser’s training credentials and FAIS

accreditation.

2. Choose a financial adviser who represents a

respected financial institution.

3. Look for a financial adviser who has access to a

range of specialist support services.

NEED HELP WITH RETIREMENT AND RISK

COVER OPTIONS FOR YOUR EMPLOYEES?

Old Mutual Corporate provides

industry-leading retirement fund

solutions, pre- and post-retirement

investments, group death, disability,

critical illness and funeral cover

as well as financial education and

consulting services to a broad range

of public and private businesses and

institutions, from small businesses to

large corporates.

This can also be accessed via

Old Mutual SuperFund, which provides a comprehensive

employee benefit solution that is flexible enough to meet

the needs of all types of businesses and their employees.

NEED A ONE-STOP-SHOP INTEGRATED

FINANCIAL SERVICE?

The Old Mutual Mass Foundation Cluster (MFC) has an

integrated approach to financial services and offers

customers solutions to meet their needs. This spans a

transactional account called the Old Mutual Money

Account, savings products, life and disability cover, as

well as funeral cover, debt management solutions and

short-term insurance. Our aim is to

help our customers manage their

finances and to plan and provide

a better future for themselves and

their loved ones.

NEED DIRECT CAR & HOME INSURANCE?

Old Mutual iWYZE offers affordable and reliable

insurance cover to protect everything you’ve worked

for. The wide range includes car insurance, home

insurance as well as value-added products

such as iWYZE Scratch

& Dent and iWYZE

Tyre & Rim Cover.

iWYZE, the wise

insurance choice.

NEED FUNERAL COVER?

With Old Mutual’s range of

Funeral Plans (Care, Standard and

Comprehensive+) customers can cover

themselves, their spouse/partner,

children, parents, parents-in-law and

extended family members. We also

have a plan for single parents to

cover themselves and their dependent

children without having to pay for a spouse they do not

have.

You can choose the amount of cover you need, who

you’d like to cover and whether you’d like to add

additional benefits. You can get funeral cover for up to

R70 000.

NEED HELP WITH SAVING FOR BOTH

LONG AND SHORT TERM?

To make it easy for customers to

save from as little as R170 a month,

Old Mutual offers the innovative

2-IN-ONE SAVINGS PLANS.

This product with its two pockets allows customers

to save for their long-term goals, like their children’s

tertiary education, while they have access to their funds

in emergencies.


NEED HELP WITH HOLISTIC FINANCIAL

PLANNING AND SAVING?

Old Mutual Personal Finance specialises in providing

holistic financial planning - Advice That Matters. We

offer a wide range of wealth creation and protection

products. For example:

The Old Mutual Invest Tax-Free Savings Plan, which

offers a low, entry-level premium and refunds you 50%

of admin charges when you reach your maximum

premium limit in a year.

NEED LIFE AND DISABILITY COVER?

Old Mutual Personal Finance marketleading

risk protection range offers

the most comprehensive illness range

with clear claim definitions, including

GREENLIGHT.

NEED TO PROTECT YOUR

BUSINESS?

Old Mutual Insure are experts in

agriculture, engineering and marine

insurance. We offer a range of insurance solutions to

protect your business against everything from fire and

theft to business interruption and legal liability costs.

NEED DEBT CONSOLIDATION AND

TRANSACTIONAL BANKING?

Through Old Mutual Finance you can gain access to:

• My Money Plan, which enables

you to consolidate your debt, and

choose from a range of personal

loans at a fixed interest rate.

• Money Account, which links a transactional (SWIPE)

account and an investment (SAVE) account so you

automatically invest a set amount into a unit trust

every time you make a purchase with your card.

*(In association with Bidvest Bank Ltd)

NEED HELP WITH INVESTING?

Old Mutual Wealth is a fully integrated, adviceled

wealth management business. We have a

personalised and integrated approach to grow and

preserve your wealth over time. Our

specialist capabilities include Private

Client Securities, Old Mutual Multi-

Managers, Fiduciary Services and

Offshore Investing.

We partner with leading financial planners to provide

you with a tailored lifetime wealth plan to help you

achieve the best outcome in line with your objectives,

goals and aspirations.

NEED A FINANCIAL PARTNER THAT

MAKES A POSITIVE IMPACT ON SOCIETY?

Old Mutual is deeply committed to

playing a significant role in building a

strong and financially inclusive South

Africa.

As a responsible business committed to caring for our

communities, the Old Mutual Foundation addresses

socio-economic challenges through investing in:

• Small business development and entrepreneurship

• Youth unemployment through skills training

• Strategic education initiatives

• Caring for vulnerable communities

In 2016 alone the Old Mutual Foundation invested

R25 686 172 in various community projects across our

nation (actual grant funding payments made during

2016).

In Limpopo the Old Mutual Foundation invested a

total of R2 864 500 across its various community

empowering portfolios in the region.

Our staff are the hearts and hands of Old Mutual

in the communities we operate in, and we support

our staff volunteers through various programmes.

In 2016, 136 organisations have received a total of

R2 692 500 as a result of staff volunteering efforts.

INVESTMENTS I SAVINGS I PROTECTION

ombds 6.2017 L10479.6

Old Mutual is a Licensed Financial Services Provider


OLD MUTUAL FOUNDATION CASE STUDY IN LIMPOPO

Old Mutual encourages and supports staff to get engaged in community projects by

volunteering their personal time or contributing financial support. Through the Staff Payroll

Giving programme, employees can support social causes through monthly donations from their

salaries. Their donations are further matched rand-for-rand by the Old Mutual Foundation and

then distributed to deserving organisations, such as the Elim Hlanganani Care for the Aged in

Limpopo. Funding of R500 000 was recently provided towards the holistic care of the frail and

aged in the area. One of the ways assistance is given is through the training of home-based

caregivers to attend to the needs of the elderly. As Director Florence Khosa says, “We ensure that

no-one in our community is left alone without help.”

The MASISIZANE FUND focuses on enterprise

development and job creation to help alleviate poverty

and improve food security in South Africa. This is

achieved through encouraging entrepreneurship and

capacity development and financing of micro, small

and medium enterprises (SMMEs). Preference is given

to SMMEs with 51% plus ownership by women, youth

or people with disabilities.

The Masisizane Fund disbursed R147m worth of funds

in 2016 through soft loans in the three high-impact

sectors and facilitated the creation of 862 jobs against

a target of 625 jobs.

In Limpopo Masisizane disbursed funds of

R14 013 840 across four clients creating 68 new jobs.

MASISIZANE CASE STUDY IN LIMPOPO

Sasesikani Co-operative

Sasesikani Co-op is situated in Mahonisi Village in

the Vhembe District Municipality. The co-op was

established in 2004 and is managed by a board of

directors of the co-op that consists of nine members

who are all contributing actively in the business. The

co-op has created eight jobs for the people around the

village (excluding themselves).

Most of the members are from the village and not

very literate. However, there have been changes in

management since the previous General Manager,

Mr Khoza was involved. There are now more clearly

defined roles in the business as there is a treasurer,

an administrator and a production manager. The other

members are supervising transport, cleaning of chicken

houses and the process as a whole.

The co-op members have gone for training in egg

production, marketing and business management.

Despite all of this there is still a need for further

training in business management and administration to

effectively run this business.

Masisizane Fund Loan R2.16 m

Number of jobs

17 jobs facilitated

WANT TO HELP BUILD THE PLATFORM

FOR FINANCIAL INCLUSION?

Financial education is the gateway to financial

inclusion. The Old Mutual Financial Wellbeing

programme promotes financial literacy and awareness

across market segments in line with the Financial Sector

Charter. We offer highly effective financial education

and support programmes to help South Africans take

control of their finances.

Between 2007 and end of 2016 more than 589 808

people were reached through face-to-face workshops

held for communities as well as employees in the public

and private sector.

In 2016 more than 88 000 individuals participated in

our On the Money workshops nationally, with 24 674

participating in our Fin360 programmes.

In Limpopo 7 687 individuals were trained in our

Old Mutual On the Money programmes.

For more information, contact Lawrence

Gabela at LimpopoPMB@oldmutual.com


SPECIAL FEATURE

KEY SECTORS

Overviews of the main economic

sectors of Limpopo

Agriculture 40

Mining 44

Energy 60

Water 61

Transport and logistics 62

ICT 68

Banking and financial services 76

Development finance and

SMME support 78

Education and training 84

Tourism 86

IMAGE COURTESY OF DE BEERS VENETIA MINE

LIMPOPO BUSINESS 2017/18

40


LISTING

41 LIMPOPO BUSINESS 2017/18


OVERVIEW

Agriculture

The strong agri-processing sector still has massive potential to grow in Limpopo.

Agriculture has been identified as a key driver of the regional

economy by the Provincial Government of Limpopo. Agriprocessing

in particular is being targeted as a means of

increasing the levels of manufacturing in the province.

The percentage contribution of Limpopo agriculture to national

agriculture is 7.6% although its contribution to provincial GDP is

just 2.3%. Agri-processing has enormous potential to expand in

every sub-sector.

The establishment of agri-parks and co-operatives and support for

youth in taking to farming are among the key initiatives that provincial

government is implementing in support of these goals.

The agricultural riches of the province are well known and its fruits

and vegetables form an important part of South Africa’s export basket.

Companies like ZZ2 are major contributors to the country’s

annual production of 120 000 tons of avocadoes. Of the current crop,

SECTOR INSIGHT

Thousands of hectares are

being planted with avocadoes

and macadamias.

• Agri-parks will help

emerging farmers.

• The Industrial

Development Corporation

(IDC) is investing in citrus

farming.

about half is currently produced

in two Limpopo regions, Letaba

and Tzaneen. Exports to the US

LIMPOPO BUSINESS 2017/18

42


OVERVIEW

and Europe, which constitute almost

all of South Africa’s foreign

market for avocadoes, are rising

exponentially.

In response to this demand,

and the potential of the Chinese

market, almost 1 000ha per year

of new land is being planted with

avocadoes in South Africa.

The same amount of new

macadamia planting is under

way every year, according to the

Southern African Macadamia

Growers’ Association (SAMAC),

adding to the existing 19 000ha.

The other two really big sellers

are mangoes and tomatoes.

Limpopo grows three-quarters of

South Africa’s mangoes and twothirds

of its tomatoes.

The Waterberg District produces

large quantities of red

meat, Capricorn has potatoes in

abundance, Vhembe in the north

specialises in citrus and subtropical

fruits, Mopani has those fruits

too – and the Mopani worm.

The Sekhukhune region in the

south-east is a grain-producing

area. One of the best-known

products of the region is Amarula

cream liqueur.

Initiatives

Five Agri-parks will be established

in Limpopo, as part of

the R2-billion plan of the national

Department of Rural

Development and Land Reform

to roll out services that will help

farmers get better access to market

and storage facilities.

Support in terms of equipment

hire and information will be

available. Markets where farmers

can sell their produce and processing plants such as abattoirs will form

part of the parks and farmers will gain access to market information and

bigger markets through the Rural Urban Marketing Centre.

Training will also be on offer at the parks and the aim is to get local

farmers owning 70% of the facility.

The University of Venda and the University of Limpopo are working

on research into crop and seed improvements, particularly related to

climate change adaptation.

The provincial government gave support to 3 000 households

to produce their own food in their backyard gardens during the

2016/17 financial year and hopes to increase this number to over

5 000 households.

The Ilima/Letsema conditional grant, which strives to improve

productivity of emerging farmers in Limpopo, disbursed funds to 47

projects benefiting a total of 2 333 beneficiaries. A total of 680 farmers

were assisted in gaining access to markets. In the 2017/18 financial year,

the Ilima/Letsema grant total of R67-million will support 90 projects, 15

538 emerging farmers: 2 718 smallholder farmers, 12 791 subsistence

farmers and 29 black commercial farmers.

Other programmes were badly affected by drought conditions, the

Fetsa Tlala programme, for example, having to be scaled back to work

only with farming areas with enough irrigation water. Having come

through the long-term drought in the early months of 2017, Limpopo

and several other northern provinces then had to deal with the effects

of the Fall Army Worm. It was detected early and strong measures were

taken to mitigate its effect.

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

national Deputy Minister of Agriculture visited the project in late 2015

and encouraged local fishers to aim to supply 500 tons of fish. Iran was

mentioned as a potential market for the fish.

The Tompi Seleka College is itself in the spotlight, having been

reopened in 2015. Together with Madzivhandila College (in the Thula-

Thula Municipality in Vhembe District), enrolment has increased from

140 in 2015 to 222 in 2016. Limpopo is trying to grow its own farmers.

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.

Within Limpopo, the Mooketsi Market has used its central position

to boost trade in farming produce. The market is at the crossroads

of two busy routes: Polokwane to Giyani (R81) and Tzaneen to Louis

Trichardt (R36-N1).

43 LIMPOPO BUSINESS 2017/18


OVERVIEW

The market is owned by ZZ2, FGX (which facilitates transactions

between buyers and sellers) and the RSA Group, which is the market

agent and has about 30% of market share of fresh produce markets

in South Africa.

The Vhembe District in the far north and the Letaba Valley in the

eastern Mopani District are major contributors to the Johannesburg

Fresh Produce Market, with Limpopo growers as a group contributing

about 45% of the produce sold at Johannesburg Fresh Produce Market,

Africa’s biggest market.

ZZ2 is the major brand of Bertie van Zyl (Pty) Ltd, which produces

160 000 tons of tomatoes per year. The company also specialises in

onions, both of which appear in different forms under 12 brand names.

The company has large farms in four areas of the province: Mooketsi,

Politsi, Polokwane and Musina; it also operates in the Western and

Eastern Cape. The company has 8 000 full-time employees and is

increasing its production of avocadoes and litchis.

Westfalia is another huge enterprise, part of the Hans Merensky

Group, and it is world’s largest avocado grower. It also produces significant

quantities of mango, litchi, citrus and macadamia and has three

agri-processing plants in the province.

Avocado oil is processed in Tzaneen, juice and avocado purée

is made at Politsi and dried mangoes are produced at Hoedspruit.

Westfalia has large farms in the Letaba River Valley (Constantia Estate),

the Hoedspruit district (Marieskop Estate) and in the Mooketsi Valley

(Goedgelegen Estate). Organic avocados are also farmed in KwaZulu-

Natal Province.

The Westfalia Nursery produces more than 130 000 trees every year.

Westfalia Technological Services has six teams researching areas such

as pathology, horticulture and genetic resources.

Relatively new entries into commercial farming are former cooperatives,

and they have proved 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 tons

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 combineharvester

is the only one of its

kind in South Africa.

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 855ha under irrigation and

a further 326ha 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.

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

which will see new farms established,

established farms converted

to different cultivars and

the packing house expanded. The

brands Clemengold and Sweet C

LIMPOPO BUSINESS 2017/18

44


OVERVIEW

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.

Citrus exports to the EU have

grown steadily. In volume, exports

to the EU in 2015 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

United States of America through

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 red and white 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 marketing of

products.

The province has about onemillion

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, Mr 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.

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

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

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

South African Sugar Association: www.org.za

45 LIMPOPO BUSINESS 2017/18


OVERVIEW

Mining

Special economic zones open up possibilities for investors in processing.

IMAGE COURTESY OF DE BEERS VENETIA MINE

Diamonds in the north, platinum and chrome in the west and

east and coal just about everywhere – Limpopo Province has

extraordinary mineral wealth. The mining sector routinely

contributes up to 30% of regional GDP but this has fallen back

somewhat with reduced platinum operations in response to a weak

global market for the commodity.

Although there are efforts under way to try to diversify the Limpopo

economy to reduce the dependence on the mineral sector, there is a

parallel effort to use the underground riches of the province to stimulate

the growth of the manufacturing sector. A series of measures have been

developed by the Limpopo Economic Development Agency (LEDA)

to create the circumstances where processing plants and products

can add value to the minerals. A large part of strategy centres around

Special Economic Zones (SEZs), a nationally certified geographic area

where special concessions and tax breaks apply, intended to encourage

inward investment.

The Provincial Government of Limpopo wants to see the supply chain

of mines heavily weighted in favour of local businesses and particularly

small, medium and micro-enterprises (SMMEs). The government has

committed to upgrading informal settlements around mining towns.

Major investments in Limpopo include an ongoing project by De

Beers in Musina to convert its Venetia mine from an open-pit mine to

SECTOR INSIGHT

Carbon-neutral mining is the

goal for researchers at De

Beers’ Venetia mine.

• Impala’s refinery is to be

powered by fuel cells.

• Exxaro has launched

its vision for mining

sustainably.

• Ivanplats’ new Platreef

mine may become the

biggest PGM mine in the

world.

a vertical shaft mine and a multibillion

new platinum mine project

led by a Canadian firm (in partnership

with Japanese companies).

Silicon Smelters (the largest

charcoal producer in Africa) and

Anglo Platinum’s smelting facility,

LIMPOPO BUSINESS 2017/18

46


OVERVIEW

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.

Platinum

With a depressed platinum price,

platinum miners are hoping that

demand from the fuel cell industry

will replace the decline in

demand for catalytic converters.

Impala Platinum (Implats)

has an interest in two big operations

on the eastern limb of

the Bushveld Igneous Complex.

Marula (in which Implats is a

73% shareholder) is in Limpopo

province, about 50km north of

Burgersfort. South of the same

town, in Mpumalanga, Implats

(49%) is in a joint venture with

African Rainbow Minerals (ARM)

at the Two Rivers mine. The mine

has a concentrator plant and has

a life-of-mine offtake agreement

with Impala Refining Services.

Impala announced in early

2017 that it intends to take the

refinery (in Springs) off the Eskom

grid, and power the refinery

using fuel cell technology. Power

will come from an 8MW Doosan

Fuel Cell.

Even though the Twickenham

mine of Anglo American Platinum

(Amplats) has been put on care

and maintenance, lots of work

is going on there. Amplats is

testing trackless mechanised

mining in that hope that automation

will bring down costs sufficiently

to make it economical to

mine again.

Despite uncertainty on the global market, Northam Platinum

has continued to buy assets. In 2015 it bought Everest South from

Aquarius, a move that will allow it to consolidate operations with

its adjacent property, Booysendal South. Northam, which also has

assets in the North West province, aims to produce 850 000oz of

PMGs from 2022.

A court ruling in February 2017 has opened the way for Ivanhoe

to build its Platreef Project on the northern limb of the Bushveld

Igneous Complex. Local communities objected to the proposed

multi-billion project because it was said the mine would cause

ancestral graves to be moved. R70-million has been commited to

the first phase.

In July, Ivanhoe released a feasibility study that was positive about

prospects for mining for platinum group elements, nickel, copper

and gold. Ivanplats, the subsidiary of the Canadian company, will

run the mine in the Waterberg District Municipality near Mokopane

south-west of Polokwane. Ivanhoe has a 64% stake in Ivanplats with

10% owned by a group of Japanese companies including ITOCHU

Corporation and Japan Gas Corporation.

If the mine achieves the projected production rate of 12 Mtpa

with 1.2-million ounces of PGM, it will rank as the biggest mine in

the world. Engineering companies engaged in the project include

FLSmidth (winding equipment), Aveng (shaft one) and Murray &

Roberts (shaft two).

47 LIMPOPO BUSINESS 2017/18


OVERVIEW

Coal

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. 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-and-butter 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

(which has 3 200 employees) 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 is now having to look to export its coal. The plan was for the

mine to supply Medupi with 14.6-million tons of coal every year for 40

years. Exxaro is exploring new technologies at Lephalale, working on

the possibilities of Underground Coal Gasification (UCG).

The diversified resources company recently launched the New

Exxaro Tomorrow (NXXT) programme, which is part of the company’s

2030 vision that has a strong focus on sustainability.

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, with the Vele colliery (coking and

thermal) in the far north of the province and the Greater Soutpansberg

Project /MbeuYashu, which includes CoAL’s Makhado Project (coking

and thermal coal).

Diamonds

Anglo American is investing R2-billion to expand production at

its diamond mine near the town of Musina. Venetia Mine is by far

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.dme.gov.za

South African Institute of Mining and Metallurgy:

www.saimm.co.za

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.

Good progress is being made

to convert the mine from an

open-pit mine to an underground

operation, a project that will extend

the life of the mine to the

middle of the 2040s. The project

will employ more than 2 000 people

at its peak period. The first

diamonds to come from the new

mine are expected in 2021 with

the underground mine becoming

the only source of diamonds

in 2023.

The Venetia mine is also the

site of some ground-breaking

research that the De Beers group

is putting in to finding ways to

store carbon by mineralising

kimberlite tailings. It is thought

that kimberlite has the potential

to be carbonised and thus able to

store carbon. The goal is carbonneutral

mining.

LIMPOPO BUSINESS 2017/18

48


INTERVIEW

Localisation brings

business opportunities

Benford Mokoatle, Venetia Mine General Manager, details

how new policies are creating jobs in the Musina area.

Benford Mokoatle

Will the underground mine project affect production levels?

When you go underground you reduce waste but the ore mined will

remain constant, if not marginally improve. The carats will marginally

improve from the current production profile.

What plans do you have to transition your workforce to

the underground environment?

The skills required for the underground operation will be completely

different from the current skill levels and requirements. We can

accommodate those who have an aspiration of going underground

by retraining them.

BIOGRAPHY

Benford Mokoatle has 21 years

of mining experience. He began

his professional career in

the Wits Basin and spent time

in West Wits (Western Deep

Levels and East Mine), the

Free State (Tshepong Mine)

and Vaal Reefs before joining

De Beers. He has worked at

Kimberley Mines, Oaks Mine,

Voorspoed Mine and Venetia

Mine. At Venetia Mine, Benford

is responsible for leading and

directing Venetia Mine and its

leadership team.

Does the investment in Venetia underground mine signify

investor confidence?

I have no doubt about that. This is a project of a minimum of

US$2-billion. This shows that the investors have confidence first and

foremost in the country, and secondly in the project itself. It also says

that there is still a market in diamond sales.

Does the mine impact on socio-economic development?

In our region, for every employee that is employed there’s indirectly

10 people that benefit. We are on a drive to localise businesses and

suppliers that we do business with. We will continue to create partnerships

and invest in the local economy.

Are local companies benefitting?

When we started with the BEE drive we needed to be doing business

with empowered or black-owned suppliers. Now that we are at 88% or

90% BEE credentials, we need to localise and do business with entities

that originate from our labour-sending area. So far we have rolled out

about 35 local business opportunities, 50 to 60% of those are sourced

from our labour-sending areas such as Musina and Blouberg.

49 LIMPOPO BUSINESS 2017/18


INTERVIEW

New shaft sinking

method prioritises

safety

Head of De Beers Venetia Underground Project,

Christoff Kühn, reports on progress in one of

Limpopo’s biggest projects.

Christoff Kühn

BIOGRAPHY

Christoffel Kühn has Master's

degrees in mechanical engineering

and project management

from the universities of

Potchefstroom and Pretoria

which he has put into practice

in Southern Africa, South

America and Australia. Starting

as an engineer on a gold mine,

he has since delivered several

capital projects in the mining industry.

His experience includes

engineering and project management,

project development

and techno-economic evaluation.

Kühn’s previous post

was head of the project management

support and review

department at Anglo American.

What is the scope of De Beers’ investment into the

Venetia Underground Project?

We committed US$2-billion in replacing the open mine with a new

underground mine. This will approximately double the life of the

mine to the middle of the 2040s.

When do you expect to start producing diamonds?

We start intersecting the kimberlite orebodies in the 2020s. The first

significant production will be in 2021, on a smaller component of

the mine. The open pit will halt all operation in 2023 and from then

on, the underground will become the main source. The open pit is

currently mining three distinct kimberlite pipes. The underground

mine will mine two of those.

How many jobs have been created?

We have about 750 people on the project. At our peak, the numbers

will increase to about 2 000 to 2 500 people – these will decrease as

the project execution comes to an end.

The underground mine will not significantly change the number

of De Beers’ employees on the mine, although there might be different

contractors that are required on the underground operation

from those we used on the open pit because of the changed nature

of the mining.

We forecast that we will stay at similar employment levels as before.

We currently have approximately 1 350 employees, excluding contractors.

The situation with contractors is very dynamic, and changes

as workload alters. It is not consistent work over the life of the mine.

Are local businesses involved?

Some portions of the project are unique, and require established

experienced contractors to deliver. We have gone on a campaign

to try to build to establish as many local SMMEs as possible. There

are a few success stories, such as our partnership with a company

LIMPOPO BUSINESS 2017/18

50


INTERVIEW

IMAGES COURTESY OF DE BEERS VENETIA MINE

called Renuna for accommodation. Smaller local

building contractors are also helping us to develop

structures on site.

How long is the tunnel from the surface to

the mine?

We are developing three access points. The decline is

2.5km and the vertical depth is about 400m. The decline

assists with developing the top of the mine. The

decline will be completed this month and we have

started with lateral development towards ore bodies.

The two vertical shafts, which are about 550m

below the surface, will eventually be 1km in depth.

At what speed are the vertical shafts

being developed?

We are currently achieving approximately 40-45m

per month.

What are some of the key challenges you

face in this project?

Some of the key challenges we have is obtaining

specialist skills required for shaft sinking. We are

competing with a project in Mongolia and one in

Zambia. Obtaining the correct skills set within the SA

environment is tricky, including the skills set

that we require for the operational phase of the

underground mine.

Are there any new techniques being used

on the project?

The shaft sinking methodology we are employing

through Murry & Roberts is the first of its kind in

South Africa. We awarded it to Murray & Roberts

based on the safety associated with its method.

The old method did concrete lining concurrently

with development. We do everything in line, making

sure we don’t expose people to people working

on top of them. This affects the advance rate,

but it is a significantly safer method.

From a safety record perspective, we are doing

well compared to other similar projects in SA.

Shaft sinking is typically associated with severe

accidents. While we have not yet achieved our goal

of zero harm, we have progressed significantly on

our journey.

51 LIMPOPO BUSINESS 2017/18


FOCUS

De Beers Venetia Mine

Community Development

A partner in poverty alleviation and job creation.

Venetia Mine lies approximately 80km west of Musina and

36km north-east of Alldays in the Limpopo Province. The

mine is located in the Musina Local Municipality of the Vhembe

District, off the R521 road between Alldays and Pondrift,

approximately 540km north of Johannesburg. The majority of the mine

employees are from the Blouberg and Musina municipalities, which

are therefore its primary labour sending areas.

A total of 40% of the workforce comes from Musina while 21% of the

workers come from Blouberg, with a further 15% coming from other

parts of Limpopo and the balance from further afield.

The Mine Community Development Programme for Venetia Mine

is based on De Beers Consolidated Mine’s Community Development

strategy and the Venetia Mine Socio-Economic Assessment, which

focused on the possible impacts that Venetia Mine would have on the

communities of Vhembe and Capricorn District Municipalities, and

more specifically the two host municipal areas, Blouberg and Musina.

The programme is integrated

with the Integrated Development

Plans (IDPs) of the Blouberg and

Musina municipalities and demonstrates

a commitment to the

sustainable upliftment of these

communities.

The legacy of Venetia Mine

will stretch over and above the

direct economic benefits that

the mine will bring to the region.

Venetia Mine aims to become

fully integrated within the local

communities and to be a partner

in poverty alleviation and job

creation.

PROJECT NAME AREA BUDGET ACTUAL STATUS

Limpopo Rural Schools Programme Blouberg R3 000 000 R5 488 432 Completed

Student Financial Aid Scheme

Maths and Science Programme

Enterprise Development Zimele

Musina and

Blouberg

Musina and

Blouberg

Musina and

Blouberg

R300 000 R245 723 Completed

R300 000 R257 700 Completed

R400 000 R1 058 827.13 Completed

Teacher Subvention Musina R1 800 000 R3 028 478 Completed

Building Materials Project Musina R600 000 R222 300 Completed

Ventilation Pipes Project Blouberg R600 000 R159 600 Completed

TOTAL R 9 000 000 R 10 461 060.13

VENETIA MINE COMMUNITY DEVELOPMENT PROJECTS (2016)

NB: OVER AND ABOVE THE PROJECTS LISTED IN THE TABLE ABOVE, DE BEERS VENETIA MINE ALSO ASSISTED BLOUBERG MUNICIPALITY

WITH THE GRADING OF COMMUNITY ROADS IN THE TAAIBOSCHGROET AREA AT A TOTAL COST OF R32 429.

LIMPOPO BUSINESS 2017/18

52


Limpopo Rural Schools

Programme

De Beers Venetia Mine has entered

into a ground-breaking

partnership with the Limpopo

Department of Education,

through the Limpopo Education

Trust, to provide infrastructure to

needy schools within the Venetia

Mine labour sending areas. Both

partners contributed R3-million

each towards schools that were

jointly identified. Since its inception

in 2006, this partnership has

resulted in 13 schools around

Musina and Blouberg areas

being supported.

The latest project under this

partnership was the construction

of Mphengwa Secondary School

in Eldorado Village in Blouberg.

The project started in March 2016

and was completed in December

2016. The scope of this project

included the building of 12 new

classrooms, an administration

block, provision of water and

fencing at the school. Prior to this

intervention, the situation at the

school was dire, with infrastructure

that was dilapidated and on the

verge of collapse.

FOCUS

located in Venetia Mine’s labour sending communities of Blouberg or

Musina, they must be academically deserving and/or be dependants

of Venetia Mine employees that are in the bargaining unit category. A

learner must be registered with a public tertiary institution.

Maths and Science Programme

Venetia Mine introduced a Mathematics and Science Programme to

support learners in the Musina and Blouberg areas. In 2016, the focus

of this programme was on Grade 12 learners from 10 high schools to

help them improve their pass rate in these subjects. In 2016, De Beers

Venetia Mine partnered with the University of Venda (UNIVEN). A total

of 282 learners benefitted from this insightful programme. The partnership

with UNIVEN started in 2016, and has seen the Maths and Physical

Science Grade 12 results in the Bahananwa Circuit improve by 3% in 2016.

Enterprise Development Zimele

The Blouberg and Musina Local Municipalities have agreed to support all

their future entrepreneurial projects through the De Beers Zimele Venetia

Mine Business Hub. The hub aims to create sustainable jobs by providing

low-interest business loans paired with significant mentorship, coaching

and skills development for small to medium-sized enterprises (SMMEs).

Since its establishment it has created over 495 jobs in the community.

Teacher Subvention

The primary objective for this programme is to provide local schools in

the Musina area with funding for them to employ additional educators

and administration personnel. Schools currently benefitting are Musina

High School, Eric Louw High School and Messina Primary School. Many

of Venetia Mine employees’ children are enrolled at these schools.

Student Financial Aid

Scheme

This scheme provides learners

with educational grants of up to a

maximum of R15 000 per student,

per annum, towards their tuition

fees. This amount is paid directly

into the tertiary institution’s account.

For learners to qualify for

this grant they must come from

a financially destitute family

53 LIMPOPO BUSINESS 2017/18


FOCUS

De Beers Venetia Mine Economic

Development and Procurement

At the heart of building local businesses.

De Beers Venetia Mine is adopting a multi-faceted approach

to supporting and incubating local businesses. From partnerships

with agencies and business development training

programmes and joint ventures, the mining company is

working to ensure that economic development and job creation

become a reality for the wider community of businesses and entrepreneurs

in which the mine operates.

The company’s goal is to incubate 50 local businesses in 2017 and

to continue on that trajectory into 2018 and 2019. A partnership with

the Small Enterprise Development Agency (Seda) has already paid

off in the sense that detailed training sessions are empowering local

business people. One such participant, Buto Tabengwa from Musinabased

B-Graphics and IT Solutions, reported, “The training has been

mind-blowing. This group has certainly been empowered through the

knowledge they have downloaded – well done to De Beers for putting

local business on the map.” Topics dealt with in training included costing

and pricing, access to funding and banking as well as joint ventures

and cash-flow management. Gregory Petersen, De Beers Consolidated

Mines Supplier and Enterprise Development Manager, explains the

rationale, “By collaborating with industry leaders such as Seda we

maximise the impacts of our Enterprise Development Programme

and deliver smart, meaningful services to local companies which,

with coaching and support, could

become suppliers to Venetia Mine

in the future.”

Addressing a Business

Breakfast at the Diamond Club

in March 2017, Venetia Mine

Assistant General Manager,

Hendrick Matjila, discussed local

procurement as well as supplier

and enterprise development

strategies. “Business cannot exist

in isolation,” he said. “At Venetia

Mine we are cognisant of the fact

that we cannot sustain our operation

without ploughing back in

our communities. We know that if

we are to achieve our goal of leaving

a lasting legacy beyond the

life of Venetia Mine, it starts with

supporting local enterprises and

developing our entrepreneurs

and small businesses.”

LIMPOPO BUSINESS 2017/18

54


FOCUS

Guests, who included members

of the Musina Business

Chamber and Musina Local

Municipality, representatives of

the Beitbridge and Zoutpansburg

Chambers of Commerce and the

Musina Youth in Business Forum,

discussed collective ways to turn

Musina around together.

Strategy

Venetia Mine’s procurement team

has successfully completed the

following initiatives in recent

months:

De Beers community fair:

Crowds of local business people

and entrepreneurs visited

the Supplier Development and

Zimele exhibits, giving them an

opportunity to understand the

requirements for doing business

with Venetia.

Community SMS database: The

Community Fair creates the opportunity

to build a database of

over 100 potential suppliers in

Musina and Blouberg who the

mine can now communicate

with directly regarding business

opportunities.

Opportunities specifically

targeting local business: HDSAowned

entities are sought which

can provide products and services

such as supplying kitchen

consumables, electric fencing,

rodent and pest control, manpower

required during shutdowns

and emergency repairs

and ad hoc work in the treatment

plant, repairs on tyre protection

chains, cleaning services and alien

plant control.

Community-focussed marketing

strategy: A comprehensive

campaign has been launched on local radio stations Mohodi FM

and Musina FM, local newspapers such as the Polokwane Observer

and the Northern Gazette and on posters at local municipalities,

tribal offices as well as public areas such as post offices.

Supplier Development Programme

At the end of the second quarter of 2017, a total of 226 local businesses

had expressed their interest in being involved through the

mine’s Local Procurement Drive. Of these, 58 companies were

shortlisted and fifteen local companies were awarded contracts,

with another seven to follow shortly afterwards.

Thirty-seven of the targeted 50 opportunities had already been

launched by July, and a further seven were due to be rolled out in

the third quarter. The focus for these vendor opportunities is in:

• road maintenance and construction

• repairs to bund walls

• cleaning at the Venetia Primary Crusher

• Venetia Mine takeaway canteen

• supply of LDV tyres, batteries and rims

• small civil works at Venetia Underground Project

• construction of the HTTS building at Venetia Underground

Project.

Six local companies have an established relationship with

the Venetia Mine and they are already enrolled in the Supplier

Development Programme. As companies win contracts, they are

added to the programme. Entrepreneurs or companies who have

been unsuccessful in application or in tendering are encouraged to

participate in the De Beers Incubator or other initiatives. The Seda

programme is an example of such a support programme.

Bussing Empowerment Deal

The Venetia Mine and VM Diamond Transport have called for locally

owned businesses in the Musina area to put their names forward

to be 40% shareholders in bus companies covering the Musina and

Blouberg areas. An empowerment initiative aimed at Historically

Disadvantaged South Africans (HDSA), the plan is for an eight-year

contract to transport workers to the mine at the centre of a share

purchase agreement. Technical training will be provided by VM

Diamond Transport as part of a two-year business development

programme and the local partners are expected to become majority

shareholders within a five-year period.

Similar opportunities in the broader transport sector include a

partnership with Bridgestone, Global Wheel and Willard to establish

a locally owned distribution centre for tyres, rims and batteries that

will service Venetia Mine and the wider community.

55 LIMPOPO BUSINESS 2017/18


PROFILE

Unlocking opportunity

Ivanplats brings a new dawn to Mokopane.

Ivanplats is developing a world-class underground

platinum-group elements, nickel, copper and gold

mine in Mokopane, Limpopo. The company plans

to use highly mechanised methods to mine the

deposit.

Ivanplats’ Managing Director, Dr Patricia Makhesha,

says: “We are proud to have shared our almost 20

years of exploration and development achievements

at Platreef with supportive stakeholders.

These stakeholders, including more than 150 000

local Mokopane area residents, see international

investment and professionally managed development

of natural resources as keys to unlock widely

shared opportunities and prosperity.”

The Platreef mine is projected to require a workforce

of approximately 2 200 within four years of

the start of production operations and Ivanplats

will have invested a total of R160-million in the

Platreef social and labour plan from 2014 to 2019.

The approved plan includes R67.2-million for the

development of job skills among local residents

and R87.7-million for local economic development

projects.

“In establishing our social and labour plan, Ivanplats

has been mindful of the South African government’s

National Development Plan and its priority

of securing undertakings that create jobs and

advance socio-economic development to alleviate

poverty and unemployment,” says Dr Makhesha.

“The social and labour plan programmes that we

are currently implementing demonstrate Ivanplats’

commitment to ensuring that people in our

host communities benefit from our operations,

directly and indirectly, in ways that contribute to

improving their quality of life and expanding their

opportunities.”

The year 2017 was tagged by Ivanplats as “The Year of the

Youth” and the company focused on bringing information

and connectivity to the people in its host communities. The

project, called Maru a Mokopane (Sepedi for the Clouds

of Mokopane), saw the installation of eight free Wi-Fi

hotspots in Ivanplats’ host communities, the development

of an online communication portal and the creation of 17

micro digital enterprises that are responsible for training

people in how to use this free system. One of the digital

trainers, Pitso Oupa Zono, is training a resident at Tshamahansi

Wi-Fi hotspot on how to use Maru a Mokopane.

Mrs Lizzie Seema from Sekgoboko was

one of the participants in a non-core

training programme Ivanplats initiated.

She completed the electrical training

module sponsored by Ivanplats and

started an electrical business focusing

on tubing and wiring of houses with the

support of her trainer.

LIMPOPO BUSINESS 2017/18

56


Developing a world-class highly mechanised, underground

platinum-group elements, nickel, copper and gold mine in Mokopane.

Bringing socio-economic development to

Mogalakwena Municipality, Limpopo and beyond.


FOCUS

Efficient mining at Lephalale

Grootegeluk mine: A world leader in more than one way.

Exxaro Resources Limited is one of the largest

South Africa-based diversified resources

groups with interests in the coal, titanium

dioxide, ferrous and energy markets. It

is the second-largest coal producer in South Africa,

with current production of close to 44-million

tonnes per annum, and is listed on the JSE Limited,

where it is a constituent of the Socially Responsible

Investment indices.

Exxaro’s flagship mine, Grootegeluk, is situated in

Lephalale, Limpopo province. It is among the most

efficient mining operations in the world, and operates

the world’s largest coal beneficiation complex

from a single pit with mineable reserves of more

than 30 years. Products include thermal, metallurgical

and semi-soft coking coal. More than 80% of the

coal produced is distributed to the nearby Matimba

and Medupi power stations.

Grootegeluk is committed to ensuring a safe

and healthy workplace through Exxaro’s sustainability

vision of Zero Harm and has seen a decline

in all incident frequencies over the past five years

and the emergence of world-class safety statistics.

Grootegeluk has maintained its ISO and OHSAS

certification for the past 10 years and has not

experienced a fatality since 2012.

On the environmental front, Grootegeluk is in

possession of all required authorisations to operate

and strives to fully implement the conditions relating

to these licences. Operating in a water-scarce area

like the Limpopo province also poses some challenges

and Grootegeluk is continuously striving to

actively and innovatively reuse the water inside the

mine’s reticulation system, thereby contributing to

the conservation and demand management of the

water in the Mokolo catchment.

LIMPOPO BUSINESS 2017/18

58


IT’S ALL ABOUT DOING WELL AND GOOD.

EXX_20170222

At Exxaro, we know that if our goal is significant growth, it means achieving that goal through

operational excellence. If one objective is to grow to become a significant company and generate

returns above the cost of capital, it also means implementing a well developed strategy. If leveraging

innovation and technologies is part of our vision, it means making a valuable economic contribution

for the benefit of all our stakeholders. For us the power of good business means leadership, and the

possibilities in leadership mean good business. We look at both sides of the coin.


FOCUS

Maximising benefits for

local communities

Marula is one of the first operations to have been developed on the relatively

under-exploited eastern limb of the Bushveld Complex in South Africa. The mine

is located in the Limpopo province, some 50 kilometres north of Burgersfort.

Marula’s partners together own 27% of the company. Each of the

following parties hold a 9% stake in the business:

• The Marula Community Trust, ensuring sustainable benefit flows

to the local community;

• Tubatse Platinum, a broad-based HDSA empowerment consortium

from local business; and

• Mmakau Mining, an established mining entity.

Implats, as the largest stakeholder, brings technical, managerial,

financial and operational expertise to the mine.

The pursuit of sustainable development and zero harm are seen as

imperatives. Marula focuses on addressing those social, economic and

environmental issues that are seen as having a material impact on the

business, the sustainability of the economy, the environment and the

communities in which it operates.

Marula is determined to maximise the benefits of the mine for

its local communities and the social investment strategy focuses on

addressing the urgent needs identified in these areas. Preference

is given to local contractors and suppliers of goods and services. In

addition, Makgoma Chrome, a

joint venture that assists local communities

with the extraction and

marketing of chrome from tailings,

has realised substantial financial

and other benefits for these

communities.

CONTACT INFO

Group Corporate Relations

Manager: Alice Lourens,

Tel: +27 11 731 9033

E-mail: alice.lourens@

implats.co.za

LIMPOPO BUSINESS 2017/18

60


OVERVIEW

Energy

An energy complex is planned for Lephalale.

One of South Africa’s biggest engineering projects is under

way in the western part of Limpopo, the building of the

Medupi power station. The facility is being built near the

existing Matimba power station and the giant Exxaro coal

mine at Grootgeluk.

Unit 5 of Medupi Power Station has achieved commercial operation

status, joining Unit 6 in supplying 800MW to the national grid. When

the Medupi power plant is completed, the Lephalale area will become

a petrochemical hub and energy complex.

An Integrated Energy Centre (IEC) has been launched in the

Fetakgomo-Greater Tubatse Municipality. Energy company Shell SA

has invested R18-million in the community centre, which has created

16 jobs. IECs, an initiative of the national Department of Energy (DoE),

are one-stop energy shops that assists local residents in getting access

to energy and providing information on energy resources.

The national Department of Energy’s Renewable Energy

Independent Power Producer Procurement Programme (REIPPPP) has

been very successful so far. Three photovoltaic solar projects located

in Limpopo will generate 118MW at full capacity.

Most approved projects have been solar and wind. Now planners

want to promote projects using biogas, landfill gas and small-scale

hydro-electric.

The provincial government’s Green Economy Plan has identified

solar and biomass as the main kinds of renewable energy for Limpopo.

Energy generation is not the only component of the plan: with huge

silicon reserves in the province, there is potential to produce solar

panels and solar charges for cellphones.

ONLINE RESOURCES

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

South African Photovoltaic Industry Association:

www.sapvia.co.za

South African Wind Energy Association: www.sawea.org.za

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

Sustainable Energy Africa: www.sustainable.org.za

SECTOR INSIGHT

Solar and biomass hold great

potential in Limpopo.

Nine biogas digesters have

been installed in the Vhembe

District to be controlled by

young entrepreneurs trained by

the University of Venda. A group

of 31 students is studying Energy

Management Systems as part of

the provincial plan.

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 they hold the key to advancing

alternate technologies.

Implats recently negotiated

the supply of natural gas supply to

its refinery in Springs. Phase one

of the project will see 20 Doosan

fuel cells generating 8MW of

power. The long-term goal is to

generate 22-30MW.

Anglo Platinum has launched

an underground mining locomotive

powered by a fuel cell.

Platinum coating greatly enhances

the hydrogen absorption

capacity of fuel cells.

Mining group Exxaro is sponsoring

the rollout of alternative energy

near its remote Tshikondeni

mine east of Musina.

LIMPOPO BUSINESS 2017/18

62


Water

Major bulk water projects are under way.

OVERVIEW

Several major projects are currently being carried out in

Limpopo, including bulk water schemes at Mooihoek/

Tubatse, Sekhukhune and Moutse.

The completion of the De Hoop Dam has made possible

the provision of water to many communities in the eastern part of

Limpopo. The building of the dam is part of the greater Olifants River

Water Resources Development Project. Five other water projects and

65 associated schemes in the Sekhukhune District are delivering other

water infrastructure, including pipes to get water to Moutse from the

Loskop Dam.

In the 2017/18 financial year, the provincial government has committed

to providing 210 more schools with potable drinking water and

185 more schools with decent sanitation facilities.

The mining and agriculture sectors are heavily dependent 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 has very different rainfall patterns in its three main geographical

regions: the escarpment (sub-humid with annual rainfall of

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

and semi-arid Lowveld. The long drought that affected many parts of

South Africa had a big impact in Limpopo. The provincial government

declared a disaster in November 2015 and released funds to supply

feed for livestock. By early 2017 the drought was broken in northern

areas such as Limpopo.

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

SECTOR INSIGHT

Potable water will be

delivered to 210 schools.

The province’s rivers are 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 Water and Sanitation

Services branch of Polokwane

Municipality operates five waterpurification

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 reservoir has

been built and new pipes 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.

63 LIMPOPO BUSINESS 2017/18


OVERVIEW

Transport and logistics

Limpopo’s location makes it ideal for logistics operations.

SECTOR INSIGHT

Polokwane is investing in a

bus rapid transport system.

• The N1 and N11 highways

link South Africa to its

neighbours.

The N1 highway, “The Road to the North” is an extremely busy road

and growing mining operations are putting pressure on secondary

routes in the province. In this context, Transnet Freight Rail’s

stated aim of getting larger quantities of freight moved from road

back to rail is good news for everyone.

A similar theme is behind the bus rapid transport system being

introduced in the provincial capital, Polokwane, except here the goal

is to get commuters into public busses. The scheme is called Leeto la

Polokwane. Within the province more broadly, 22.6% of households

in Limpopo use bus transport and 45.8% use taxis (2013 Household

Travel Survey).

Increasing rail volumes out of the coal-rich Waterberg area is something

that has been on the cards for some time but this project may

have to wait until commodity prices recover. Transnet Freight Rail (TFR)

is conducting a feasibility study. An extension of 464km would cost

about R37-billion, so TFR may look for private partners. If more coal

mines are developed, then capacity could be ramped up in stages.

All of this would 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 lots of coal but is experiencing

long delays in construction.

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 strategically positioned. In

addition to the N1 highway, the

N11 is a primary road corridor

and there are nine provincial

road corridors.

Freight volumes on the N11

(to Botswana and Mpumalanga)

have increased markedly since

2006, whereas the R33 has carried

less traffic.

South Africa’s major logistics

companies have facilities in

Polokwane, and some have warehouses

and forwarding facilities in

other parts of the province. RTT

has offices in Makhado. Limpopo’s

biggest exports (minerals and fruit

and vegetables) require dramatically

different levels of handling.

Minerals are poured in great volumes

into the freight trucks of TFR

and taken onward to Richards Bay

Coal Terminal, whereas some of

the province’s fruits like avocadoes

have to be handled with

extreme care. They must be delivered

to ports as quickly as possible

as they are delicate and the

LIMPOPO BUSINESS 2017/18

64


OVERVIEW

deadlines for getting fruit to market

in Europe are tight. Companies

such as Freezerlines, Fast ‘n Fresh

and Cold Chain have developed

specialist techniques in getting

these fruits to market and 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 the

national logistics chain.

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.

Roads Agency Limpopo (RAL),

of which the provincial government

is the sole shareholder,

accounts for about a third of

the budget of the Limpopo

Department of Public Works,

Roads and Infrastructure.

The provincial government

has a scheme whereby pupils in

rural areas up to 10km away from

schools are provided with bicycles.

The province’s scholar transport

network will be expanded in

the course of 2017 to 255 schools.

Great North Transport falls under the Limpopo Economic

Development Agency. The company has more than 500 buses, covers

about 37.6-million kilometres every year on 279 routes, employs more

than 1 200 people and transports 37.6-million passengers.

Air

The Polokwane International Airport (PIA) is wholly owned by the

provincial government and run by the Gateway Airport Authority Ltd

(GAAL), an agency of the Limpopo Department of Roads and Transport.

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, and between Hoedspruit and

Johannesburg and Cape Town.

Many game reserves have airstrips, and regional airports in the

eastern part of the province provide easy access to the Kruger National

Park. Hoedspruit Airport is situated within an airforce base and has the

second-longest runway in South Africa, 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

Gateway Airport Authority Limpopo: www.gaal.co.za

Hoedspruit Airport: www.eastgateairport.co.za

Limpopo Department of Transport: www.ldot.gov.za

Limpopo Economic Development Agency (LEDA): www.lieda.co.za

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

Roads Agency Limpopo: www.ral.co.za

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

Transnet Freight Rail: www.transnet.net

65 LIMPOPO BUSINESS 2017/18


PROFILE

Leeto: Our journey to

seamless mobility

Building a better city.

By Musa Ndlangamandla

Seamless, smart and sustainable urban mobility that

ensures the quick and free movement of people,

goods and services while reducing pollution, traffic

and accidents. This has become a major priority for

the future growth of cities around the world.

For the City of Polokwane, an efficient and costeffective

public transport system which connects

people to jobs, education, recreational facilities

and public services is a fundamental part of human

development. That is why Polokwane Local

Municipality has pulled out all the stops and is

making great progress in the implementation of

the ground-breaking Leeto la Polokwane project,

which will provide its citizens with a safer, faster,

affordable, efficient and environmentally friendly

public transport service. The name, which means

the Journey of Polokwane, derives from the SePedi

language and is symbolic of the collective journey

of the people of Polokwane.

Leeto la Polokwane is making a positive impact on

the city’s socio-economic development, through

upgrades in public physical infrastructure within a

well-planned spatial context. The project has also

ensured sustainable job creation while ushering in

a clean, green, safe and healthy city. Such improvements

have a positive impact in promoting local

businesses and stimulating investments.

Historical Background

A brief historical background would help unpack

the milestones of this project which have been

realised over the last five years and give context

Polokwane Municipality Executive, Mayor Cllr Thembi

Nkadimeng on the occassion of Leeto la Polokwane

system name launch.

to Polokwane Local Municipality’s efforts towards

creating a city where people and community come

first. Polokwane is among 13 cities identified by

government to introduce an Integrated Rapid Public

Transport System (IRPTS). This is aligned with the

objectives of the National Transport Action Plan,

incorporating South Africa’s Public Transport

Strategy, which was approved by Cabinet in 2007.

Leeto la Polokwane is funded in tranches through

the Public Transport Network Grant (PTNG) and integrates

Bus Rapid Transit (BRT) with non-motorised

transport, progressive land use approaches, and

car-restriction interventions. It is implemented in

phases and operates on fully or partly dedicated

roads and feeder routes that connect with existing

networks of minibus taxis, buses, walkways and cycling

lanes. Over the past 10 years, National Treasury

has contributed R167-billion towards infrastructure

and operations subsidies, with an average annual

LIMPOPO BUSINESS 2017/18

66


PROFILE

growth of 18%. Due to economic challenges which

have had a negative impact on funding, the operational

plan for Phases One and Two of Leeto

la Polokwane was revised to deliver on quality,

while reducing the financial deficit to Polokwane

Local Municipality.

The interim phase is to be operated by the Vehicle

Operating Company inclusive of the four affected

taxi associations (Seshego-Polokwane, Moletjie,

Westenburg and Flora Park).

Go-Live targets

As the clock ticks towards the Go-Live phase of the

project, the Polokwane Transportation Directorate

has come a long way in meeting the standards and

requirements outlined by the national Department

of Transport (DoT).

Construction work on the initial stage of Leeto

la Polokwane is progressing well and the project

will ultimately include about 50 kilometres of

road construction and improvements. This entails

trunk and feeder routes. Presently, 2.5km of

dedicated lanes have been completed, with 1.5km

under way. Trunk extension rehabilitation and

upgrades are also progressing well with 13.8km

having been completed. There has also been tangible

progress in the rehabilitation of the central

Ms Anza Ligege, Young Professional in Transportation.

business district (CBD) routes. To that end, 32.6km has

been completed. Such milestones are a confidence

booster and will bring about far-reaching benefits for

public transport users and all residents and visitors.

Non-Motorised Transport and

Universal Accessibility Facilities

The City of Polokwane is encouraging residents and

visitors to walk, cycle or use public transport rather

than private vehicles to get around the city. Through

Leeto la Polokwane the City is promoting alternative

modes of transportation, including non-motorised

and public transport. Leeto la Polokwane will also

ensure there is an accessible public transport system

for people living with disability, the elderly and

people with special needs.

In terms of non-motorised transport, 12.8km of such

facilities has been completed utilising resources

allocated to Leeto la Polokwane, with 24.8km from

partnerships with other grants. These facilities have

lanes that cater for pedestrians and cyclists such

as sidewalks, cross walks, paths and cycle lanes

aimed at ensuring harmony and a working balance

between non-motorised transportation modes and

motorised transport.

Moreover, in line with the specification of the DoT,

the fleet required comprises universally accessible

buses. The project accommodates all people with

special needs, be it people in wheelchairs, those

with hearing and visual impairments, the elderly

and children. Special needs facilities including tactile

paving for the blind, boarding bridges to ensure level

boarding between the stops, stations and buses and

easy-to-use pedestrian and passenger information

signage which are part of the project.

Intelligent Transport System

Leeto la Polokwane is using the latest technology

advancements to ensure an intelligent transport

system to provide long term, high-quality service

to all users. One area is that of an Automated Fare

Collection (AFC) system and entails a flat fare for

67 LIMPOPO BUSINESS 2017/18


PROFILE

the trunk route regardless of distance travelled, a

tap-in system and fare gates on trunk stations. There

will also be fare verification devices on board the

buses and a number of roaming inspectors to ensure

all passengers using the Leeto system have paid

the required fares. An Automated Public Transport

Management System (APTMS) will be implemented

in a revised form and referred to as “APTMS Lite”

concept. This includes Vehicle Tracking (AVL), realtime

map display, kilometres travelled report (productive

vs unproductive), incident and exception

reports, driver panic button and two CCTV cameras

on board. Leeto la Polokwane has also invested

considerable resources in investigating the existing

Urban Traffic Control System and lasting solutions

to prevent and deal with congestion areas have

been identified.

Depot, Control Centre and Stations

A depot and layover facility to house the fleet of

buses will be built in Seshego. A 2km access road

has been constructed. A scalable Control Centre is

being constructed at the Old Peter Mokaba Stadium.

The Control Centre will contain a number of equipment

elements such as a video wall; workstations,

communications, database, applications and

Internet servers; back-up systems; vehicle tracking

applications; driver communications systems; and

systems engineering/integration components. For

improved safety and comfort of users a number of

stations will be established along the route. To date,

50 stops and bus laybys have been constructed. All

stations will have cashier services (selling AFC cards

and transit products); Leeto information (routes,

timetables transit products, hours of operation and

general assistance).

Bus Procurement

In order to comply with National Treasury regulations

for IRPTS a new, specialised vehicle fleet will

be procured for the Leeto system. This fleet must

have particular specifications including universal

accessibility, and environmental friendliness.

Mr Jan Baloyi (48) Bloodriver using Leeto la Polokwane

NMT infrastructure to cycle to work.

An old lady using universally accessible Non-

Motorised Transport infrastructure.

LIMPOPO BUSINESS 2017/18

68


PROFILE

Limpopo Premier Mr Chuphu Mathabatha and Executive Mayor of Polokwane Cllr. Thembi Nkadimeng

unveiling Leeto la Polokwane.

Vehicle Operating Company, Industry

Transition

Polokwane Local Municipality is determined to adhere

to the statutory requirement that no taxi or

bus operator should be rendered worse off as a

result of the implementation of Leeto la Polokwane.

There are ongoing negotiations with industry players

to ensure that they become and remain part of

the system. Four directly affected taxi operators,

the Greater North Transport and industry players

and the Transportation Directorate have signed a

Memorandum of Agreement (MoA). This instrument

is based on the Integrated Public Transport

System Model.

The model is divided into three phases as depicted

below:

• Pre-interim Phase (Period Until GoLive)

• Interim Phase (2018-2021)

• 12 Year Contract Phase (2021-2033)

Moreover, market surveys and Operation License

(OL) verification processes have been completed.

There is a good working relationship and positive

contribution from all parties involved.

Corporate Identity

Leeto la Polokwane prides itself in working with

the people of Polokwane throughout all the stages

of the project, particularly in coming up with the

official name. This fosters a sense of pride and ownership

among the community of the project. The

buses will be visible and recognisable with Leeto

la Polokwane branding. Drivers and station staff

will undergo training in Leeto customer service

standards. A customer service feedback facility has

been put in place. Moreover, a second round of

Stakeholder Engagement sessions is ongoing; a

corporate identity (CI Manual) has been finalised and

a website registered and is live.

About Polokwane

Polokwane (“Place of Safety” in Sotho) falls under

the Limpopo province and is also often referred

to by its former official name, Pietersburg.

Polokwane is strategically located near to the economic

heartland of South Africa (Johannesburg is

300km away). The population of Polokwane grew

from 271 911 in 2001 to 628 999 currently. It has

178 001 households.

69 LIMPOPO BUSINESS 2017/18


OVERVIEW

Information and communications

technology (ICT)

Limpopo is getting better connected.

SECTOR INSIGHT

Limpopo Connexion is

rolling out broadband

infrastructure.

• 949 community members

received ICT skills training

in the past year.

When leaders and policy-makers met in the fourth quarter

of 2016 at the Limpopo Economic Summit, one of the

six pillars identified as pivotal to the province’s progress

was ICT and the knowledge economy.

A wide area network (WAN) for the province was listed as a key

objective and it was decided that a combination of fibre and wireless

technology should be used to reduce cost. A science and technology

master plan is also to be developed.

The body responsible for rolling out the infrastructure is Limpopo

Connexion, a subsidiary of the Limpopo Economic Development

Agency (LEDA). The first phase began in 2017 with broadband infrastructure

in Polokwane as the focus. The second phase will cover more

than 80% of the provincial population, as per the provincial spatial

development framework.

In the 2016/17 financial year, 949 community members received ICT skills

training in a programme run by the Limpopo Department of Economic

Development, Environment and

Tourism (LEDET).

One way of achieving higher

connectivity in rural areas is

to focus on schools and libraries.

The Universal Service and

Access Agency of South Africa

(USAASA) provides ICT services

to public and private schools,

hospital 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.

LIMPOPO BUSINESS 2017/18

70


OVERVIEW

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 – North West,

Limpopo and Mpumalanga.

When national libraries starting

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 (including teachers

and students) better access to

the Internet. 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 South Africa’s 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.

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 supports initiatives

that use science to bring benefits to wider society. This can relate to

boosting distant rural computer literacy or for scientists working at the

University of Venda who have received THRIP funding for soil research.

Intermediate computer-literacy classes are given at some Limpopo

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

the CoZa Cares project of Uniforum SA. The 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.

ISPA and Uniforum SA run a Super Teacher of the Year award for the

educator who has best imparted their newly acquired IT knowledge

to pupils and members of their community when they return from

training courses.

ONLINE RESOURCES

Limpopo Department of Economic Development, Environment

and Tourism: www.ledet.gov.za

Limpopo Economic Development Agency (LEDA): www.lieda.co.za

Seda Technology Programme: www.seda.org.za

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

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

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

Technology Innovation Agency: www.tia.org.za

71 LIMPOPO BUSINESS 2017/18


Long-term investments are

paying off for Vodacom Limpopo

Customers are reaping the benefits of improved connectivity.

Vodacom Limpopo's major investments in infrastructure

are paying dividends for customers who

now benefit from converged services that go well

beyond the popular baseline of voice and data.

This has resulted in an improved user experience

and wider access to services, including customers

in deep rural areas.

The enhanced infrastructure means not only better

performance for existing services, but has also

brought with it a growing customer base wanting

access to an expanded rollout of digital services

such as video and music streaming, and the

Internet of Things (IoT).

Vodacom Limpopo prides itself on delivering innovative

solutions while at the same time improving

customer care and driving down costs for customers.

In particular, businesses and government

departments are seeing tangible benefit and this

has contributed to solid growth in the region’s

Enterprise Business Unit. Public sector departments,

large enterprises and small businesses are

attracted to a range of products and services that

are scalable, reliable and fully customised to fit

specific requirements. Our dedicated back-end

support and customer obsession gives Vodacom

Limpopo an edge as a partner of choice.

investments. "To achieve this, we secured funding

to continue the investment into the network

which is the platform that underpins everything

we provide."

Chris adds: "We are fully aligned to the provincial

government plans to invest in key economic zones,

again highlighting the link between communications

and an improved standard of living."

The investment in the region in 2017 amounted to

R217-million, which mostly went into the network

expansion on LTE (long term evolution), 3G cellular

network expansion, new towers and, importantly,

into the migration and introduction of the more

recent transmission network infrastructure. The

expansion of these programmes enables customers

to access higher data speeds.

Managing Executive for the Limpopo region, Chris

Lazarus, has witnessed first-hand the direct correlation

with an increase in access to communications

and an improvement in living standards. "Vodacom

is about changing lives," he says, and illustrates

this with reference to the company's significant

LIMPOPO BUSINESS 2017/18

72


PROFILE

The Vodacom Limpopo team: from left to right: Ishmael Mathinya, Executive Head of Division Operations

Limpopo; Busi Dlamini, Senior Manager EBU Limpopo; Chris Lazarus, Managing Executive Limpopo

Region; and Qiniso Nyathi, Executive Head of Division CBU Limpopo.

In 2016 alone the region upgraded more than 250

3G towers, and also doubled its 4G footprint, in one

year to 72% of the population. In the 2018 financial

year, the region will upgrade more than 200 3G

towers leading to a guaranteed increase in data

connectivity of at least 2Mbps per user. As part of

Vodacom’s commitment to accelerating investment

in deep rural areas, 38 sites have been earmarked

to be upgraded at a cost of more than R23-million.

Polokwane city as well as other towns and informal

areas now enjoy 4G connectivity.

These technical rollouts have had a direct impact

on the business environment in Limpopo. Senior

Manager Enterprise Business Unit Limpopo, Busi

Dlamini explains how business owners benefit from

partnerships with Vodacom: "Our satisfied customers,

especially within the SMME sector, bear testament

to significant growth in their business and that

this is directly attributed to reduced communications

costs and tailored business solutions that have

aided them to function optimally."

The EBU itself has recorded good growth and the

unit's products and solutions are gaining momentum

within the region. Busi attributes this positive

uplift to "our robust and agile business offerings

and – most importantly – our value proposition to

our customers and partners".

Overall, Chris notes that, "Data has exploded in

Limpopo with places like Lephalale counting among

the top data towns in SA while at the same time

managing to grow demand for voice. Our investment

in Fibre has continued in various parts of the

province and we remain the first Vodacom region

to have deployed Fibre using an overhang methodology.

Given that we own these poles, we this

year started to use them to advertise subject to

municipal approvals.

"Growth in voice usage can be attributed to our

Just4You proposition, which provides customers

with relevant, personalised prices. In fact, Limpopo

is the number-one region in this space. There is

no doubt that Limpopo’s above-median growth

in market share.”

Another critical contributor to this success is the determination

of employees. Says Chris: "An ethos that

stands true with many of us at Vodacom Limpopo is

to ensure that our province does not come second

73

LIMPOPO BUSINESS 2017/18


in terms of access to technologies that are

found in other provinces."

Broader investment

Ishmael Mathinya, Executive Head of Operations,

says the investment narrative goes beyond the capital

poured into infrastructure development. "The

region has received investments in excess of R577-

million over the past three years, with the majority

of the investment going to upgrading and integrating

the radio, core and transmission infrastructure.

Over and above the annual investment, the Group

CEO has made a commitment through an investment

of R23-million specifically to deep rural areas,"

according to Ishmael.

Following the network investment we are seeing

an increase in adoption of smartphones on the

Limpopo network with a 66% increase in data traffic;

however, Limpopo continues to dominate the

number of 2G devices on the network.

Structure

Vodacom Limpopo has three core units to serve the

province of Limpopo:

• The Consumer Business Unit, focused on retail

customers

• The Enterprise Business Unit focused on businesses

and the public sector

• The Technology division, focused on building,

operating and maintaining the

network.

The executive in Limpopo is

empowered to make decisions,

backed with requisite resources

and believes strongly in local

economic development.

further notes that the unit is training an additional

five engineering interns, all from Limpopo province,

four of whom are female. This is linked to

Vodacom's investment and commitment to the

upliftment of communities through its contribution

towards education.

Consumer Business Unit

Qiniso Nyathi, Executive Head Consumer Business

Unit, says our unique rates and a superb value

proposition have grown voice and data usage at

a rapid rate. Just4You has proven to be very popular

with voice customers. Investment in Fibre by

Vodacom has enabled and supported this growth,

with improved speeds and an increased distribution

footprint. The province is attracting an increase

in shopping mall developments allowing

us to broaden the reach we have to our customers,

but also an opportunity to localise the ownership

of stores.

Enterprise Business Unit (EBU)

The Enterprise Business Unit provides solutions to

corporates, the public sector as well as small and

medium enterprises. Our EBU customers have grown

in the province due to the network investments

made by Vodacom.

Solutions range from basic communications to complex

big data to sensing technologies. As Enterprise

Business Unit Head Busi Dlamini explains, "Our

Within the Technology division,

"at least 70% of the staff members

are originally from Limpopo

province", an important contribution

towards local economic

development and utilisation of

local talent, says Ishmael. He

LIMPOPO BUSINESS 2017/18

74


PROFILE

offerings are end-to-end technology-based solutions

that help customers' transition into the digital

world. The objective is to streamline business operations

while performing at optimal levels while

reducing total cost of ownership.

"The EBU is a product and solution leader in various

segments and always strives to be first in the market

with technology innovations, thus giving us the traction

in gaining a sizeable market share."

Busi says that the new One Net Business product

is ideal for smaller enterprises, with Vodacom hosting

everything in the cloud and freeing a business

from having to install a full Private Automatic Branch

Exchange (PABX) system. "If a sales representative

is not in the office, calls are automatically routed

to the correct person," says Busi. "It gives you total

enterprise mobility. There’s no connection cost, it’s

a free call."

Chris adds the national perspective: "While

Limpopo cannot boast the same number of large

enterprises as other provinces, what we do have is

a large number of SMEs. In this category we have

superseded larger provinces using smaller yet

scalable technologies."

Technology

The prime responsibility of the Technology team is to

provide a mobile and fixed network to the people of

Limpopo region. As Ishmael Mathinya, the Executive

Head, Operations, puts it, "The network is the underlying

platform to everything we provide."

The provision of the fibre medium serves as an enabler

to allow our customers to seamlessly access the

Internet and applications of their choice. Through

its consistent and intensive investment programme

over many years, Vodacom Limpopo has expanded

its network footprint to cover the provincial population

with 99.9% 2G, 98.9% 3G and 76% 4G. New

transmission network infrastructure, new towers

and migration allow for constantly improved service

and provide the framework for future upgrades. The

expansion programmes allow customers to have

access to higher data speeds.

Looking further ahead, Vodacom is planning for

the Internet of Things (IoT), which will require a

network that can handle increased demand for

data analytics, agility and security. This explains why

Vodacom has been at the forefront of increasing its

readiness to effortlessly embrace this technology

evolution. What cloud and IoT will bring to Vodacom

75 LIMPOPO BUSINESS 2017/18


customers is convenience, easy accessibility

to information, improved transportation,

safety, etc.

Social investment

The focus of Corporate Social Investment for

Vodacom is education and the region has done

exactly that. The education portal marketed to

learners and teachers has the highest registration

of users nationally. The sign-up and use of the portal

is free.

In 2016, Vodacom launched the NXT LVL proposition

to youth under the age of 25. Limpopo province

has the highest number of youth customers using

this proposition. As part of the launch, youth

nationally were encouraged to sign up to the soccer

academy programme. Of the 24 youth chosen,

12 were from Limpopo.

In the Limpopo province continue to invest and

support eight ICT centres across the province where

the main purpose is to train teachers in mathematics

and science and this way help to integrate ICT in

the school curriculum. In the Vhembe District we

have partnered with CISCO to equip unemployed

youth with relevant ICT skills to assist with the installation

of IT equipment as well as provide instruction

in high-end computer skills.

In addition to this, the region adopted the Ntetele

day-care facility in Bloodriver by refurbishing the

centre as well as the drilling of a borehole. We

must thank our partners, Gift of the Givers and

MM Telecoms, who provided much support.

NXT LVL proposition is aimed at youth under the

age of 25.

Children at Madiphatlakgomo school with their

Mandela Day food packs.

Vodacom, in partnership with Sapa Yopa bikers,

dug a borehole for a charity organisation.

LIMPOPO BUSINESS 2017/18

76


Vodacom Vodacom

Power Power to to you you

A Ready

Business waits

for nothing

Choose the plan that’s right for your Business.

Broadband Connect Wireless Lite

No matter which plan you choose, you’ll receive a Huawei HG659 Router, sim and dongle so you’ll

have all the hardware you need right from the start. We’ll deliver everything you need to your doorstep

for you to do a quick self-installation.

Make your Business Ready to move with the times

A Ready Business needs to be connected all the time and be able to respond at a moment’s

notice. Broadband Slow connectivity Connect Price and Plans

download speeds are just Activation not an charge

option. Speed 12-Month drives Price

success. 24-Month Price

(Incl. VAT)

(Incl. CPE and (Incl. CPE and

Vodacom Broadband Connect Wireless Lite delivers fast, wireless broadband speeds so that VAT)

VAT) your

business can be ready to deliver Capped

that much faster to your customers.

BBC Wireless Lite (5GB) R 399.00 R 379.00 R299.00

BBC Wireless Lite (10GB) R 399.00 R 479.00 R399.00

What is Broadband Connect Wireless Lite?

?

BBC Wireless Lite (1GB Top-Up) R 70.00

Zero Top Ups to 15Mbps and beyond

Router, dongle and SIM included

BBC Wireless Lite (5GB Top-Up) R 100.00

At an average speed of 15Mbps,

BBC Wireless Lite (20GB Top-Up) Vodacom Broadband Connect Wireless

Lite connects multiple devices for BBC instant

Wireless Lite (50GB Top-Up)

R 360.00

R 850.00

downloads, file sharing and collaboration

across the office faster than the BBC average

Wireless Lite (100GB Top-Up) R 1 500.00

ADSL or 3G connection. [The service has

a broad, national footprint and i s

available in most major metros as well

as in a number of outlying areas.]

No wires, no waiting for lines

BBC Wireless Lite (20GB) R 399.00 R 679.00 R599.00

BBC Wireless Lite (50GB) R 399.00 R 979.00 R899.00

BBC Wireless Lite (100GB) R 399.00 R 1 479.00 R1 399.00

Add two optional VoIP connections

All price plans include a Huawei HG659

Router, sim and dongle so you’ll have

all the h a r d w a r e y o u need right from

the start. We’ll deliver everything you need

to your doorstep for you to do a quick self-

installation.

Ideal for small and home Available businesses with

VoIP options

The system is wireless, there’s n o

The solution has been specifically designed

waiting for line Now installations. Broadband Your Connect business Wireless Lite is available with up to 2 IP Talk voice connections. for small businesses You can

as it delivers the perfect

can literally use cut any the analogue cord from tone phone, the or order the Vodacom supplied phone at an additional combination charge of of

connectivity, speed and

frustration of having R49.99 to (once wait. off, Just VAT switch Incl.) to it be delivered with your Broadband Connect Wireless Lite affordability. service right The to

solution is fully scalable

on and be Ready your door to connect step. Your the call same minutes will be billed monthly in arrears as per the Vodacom and as IP an Talk option VoIP

basic C loud S ervices,

day. It’s one of rate the card fastest providing ways to you get with your up to 30% savings on your voice account.

office the connectivity it needs without

Conference Connect and VoIP can b e

added to the base Internet service offering.

having to waste time.

Be Ready to be up and running in no time.

We’ll have you set up and running in just 48 hours after approval of your order.

NOW

Ready to work faster than ever before?

Call 082 1960 or visit your nearest Vodacom store

Contact us on +27 15 495 0645 or LIMVodacombusiness@vodacom.co.za

Terms & Conditions apply.


OVERVIEW

Banking and financial services

The provincial government is creating an insurance company.

SECTOR INSIGHT

New banks will improve

access for rural residents

• NTK and VKB provide

financial services to

farmers.

Three new banks are set to make their debuts on the South African

market. In addition, the Limpopo Provincial Government, through

the Limpopo Economic Development Agency, intends to establish

a local life insurance company which it expects to start

operating in 2017.

All of the banks are state-owned entities. The intention behind

this (and the provincial insurance) initiative is to make banking more

accessible for rural communities and to make finance more readily

available to small and micro-sized businesses. Trying to integrate small

business into the mainstream economy is a major goal of national and

provincial governments in South Africa.

Life insurer MMI Holdings is also entering a partnership with African

Bank to enable it to start taking deposits and loaning money. It intends

to establish a R10-billion loan book.

All the new banks come from state enterprises: Ithala, Postbank

and Human Settlements Development Bank. The Ithala Development

Finance Corporation is an enterprise funder in KwaZulu-Natal that has

applied for a banking licence.

In 2016, Postbank (part of the South African Post Office, SAPO)

received a first-level licence. Once a board of directors has been

appointed and a company

formed, the Reserve Bank is likely

to grant the full licence. The current

Postbank focusses on taking

deposits and savings accounts.

Postbank has secured a R3.7-

billion loan to enable it to open

its own loan book.

Three state entities are merging

to create the new Human

Settlements Development Bank:

the National Housing Finance

Corporation, the Housing Loan

Fund and the National Urban

Reconstruction and Housing

Agency. The focus will be on

financing housing for poorer

households and for large statefunded

housing projects. Part

of the drive is to integrate cities

better and to combat the legacy

of the spatial divide that apartheid

left behind. Private sector

investment will be sought.

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

LIMPOPO BUSINESS 2017/18

78


OVERVIEW

Investment Corporation holds

34% of equity. The corporate office

is in Johannesburg (which

also hosts a branch) and there

are four branches in Limpopo,

including Thohoyandou.

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 a strong presence

in Limpopo because of its

focus on the mining sector. Ubank

has about half-a-million clients.

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.

For many decades, South

Africa had a retail banking Big

Four – Standard Bank, Nedbank, Absa/Barclays and First National Bank.

All of them have continue to be well represented in the province, but

Capitec Bank has now also become a major player in the retail market.

Banks are working hard to offer products to the previously unbanked.

Nedbank has partnerships with shops such as Boxer Stores

and Pick n Pay where customers can have access to financial services

in previously unserviced areas and also on all days of the week such as

public holidays and Sundays. Nedbank also has Approve-it, which allows

customers to accept or reject an Internet transaction by cellphone.

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

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

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

are connected, as are certain spazas.

The insurance market has become more varied over time, with a

greater variety of products now available to more market segments,

including middle-income earners. A typical example of a specific product

that is responding to new realities is Old Mutual’s iWYZE medical

gap cover, designed to pay the difference between what a medical aid

scheme is willing to pay and what the hospital or doctor is charging.

ONLINE RESOURCES

Insurance South Africa: www.insurance.za.org

National Credit Regulator: www.ncr.org.za

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

Post Bank: www.postbank.co.za

Public Investment Corporation: www.pic.gov.za

South African Institute for Chartered Accountants:

www.saica.co.za

79 LIMPOPO BUSINESS 2017/18


OVERVIEW

Development finance

and SMME support

A new strategy for the economies of townships and villages will boost SMMEs.

SECTOR INSIGHT

Shanduka Black Umbrellas

has 20 client businesses in

Lephalale.

• A co-operative is to be

established to do bulk

buying for SMEs and

co-operatives.

A

concerted strategy to strengthen and develop the economies

of the townships and villages of Limpopo has

been launched. Spearheaded by the Limpopo Economic

Development Agency (LEDA), a unit of the Limpopo

Department of Economic Development, Environment and Tourism

(LEDET), the plan has eight focus areas which include making licences

and permits easier to obtain, that government departments buy from

small, medium and micro-enterprises (SMMEs), indigenous products

are supported and protected, and encouraging small businesses to

support one another through the clustering approach.

LEDET has signed memorandums of understanding with the South

African Bureau of Standards (SABS) and with Productivity South Africa.

These agreements aim to help SMMEs within the province become

more competitive.

Gaining access to markets is crucial for SMMEs and the programme

aims to assist in that regard. Ten SMMEs and 10 co-operatives are

currently being assisted in getting access to the mainstream market.

Agricultural entrepreneurs will benefit from the Agri-park scheme.

A series of meetings around the province began in June 2017,

organised by LEDET. The aim was to hear from owners of small businesses

such as plumbers, panel-beaters, mini-bus taxis, street vendors

and taverns. Among the problems identified are:

• financial products that do not address the needs of entrepreneurs

• dominance of ownership by foreign entrepreneurs

• retail shopping malls crowding

out local traders

• lack of bargaining power of

smaller retailers.

LEDA is to establish a bulkbuying

co-operative. The plan is

to enlist more than 200 members

whose collective buying power

will give them an advantage in

purchasing stock.

An infrastructure project that

will assist SMMEs and co-operatives

is under way near Polokwane

at the Seshego Industrial Park.

The National Department of

Trade and Industry has committed

R21-million to revitalising the

park which will provide trading

and storage space for businesses

of all sizes.

The construction by the provincial

government of market

stalls is aimed at supporting

small-scale farmers and traders.

Market stalls have been erected

at Mopani District and will be

put up in Elias Motsoaledi Local

LIMPOPO BUSINESS 2017/18

80


OVERVIEW

Municipality in the Sekhukhune

District and Molemole Local

Municipality in the Capricorn

District.

The National Department

of Small Business Development

(DSBD) has several programmes to

assist SMMEs and co-operatives.

These include:

• The Black Business Supplier

Development Programme, a

cost-sharing grant to promote

competitiveness

• The Co-operative Incentive

Scheme, a 100% grant.

The Small Enterprise

Development Agency (Seda) is

a subsidiary of the DSDB 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 SMMEs get 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.

Seda has initiated a national

programme designed to make

co-operatives and jointly owned

enterprises stronger. As part of

the Cooperatives and Community

Public Private Partnership (CPPP)

programme, Seda is supporting a

project in Tarentaal.

The National Gazelles is a national

SMME accelerator jointly

funded by Seda and the DSBD.

The aim is to identify and support

SMEs with growth potential

across priority sectors aligned

with the National Development

Plan and Seda’s SMME strategy. Businesses can receive up to R1-million

for training, productivity advice, business skills development and the

purchase of equipment.

The Industrial Development Corporation (IDC) disburses about R400-

million annually in Limpopo. Projects 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.

Private sector

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 create employment

is Anglo American’s Zimele, which has established 29 small

business hubs in areas such as Mokopane and Burgersfort.

More than 20 small businesses are registered as clients with the

Shanduka Black Umbrella incubator in Lephalale. The sectors in which

these companies operate range from plant hire and construction

to training and marketing. Individual mentors for these enterprises

are drawn from the local TVET college, the Limpopo Economic

Development Agency and private businesses.

The major banks all have SMME offerings. Standard Bank runs a

Community Investment Fund and Nedbank offers an enterprise development

product for businesses with turnovers up to R35-million.

Agri-business and agri-processing are among the three sectors that

are targeted by the Masisizane Fund for loan financing. The others are

franchising/commercial and supply chain/manufacturing. Over and

above loans that are available, training is offered through a Business

Accelerator Programme.

ONLINE RESOURCES

Development Bank of Southern Africa: www.dbsa.org

Gazelles: www.nationalgazelles.org.za

Industrial Development Corporation: www.idc.co.za

Limpopo Department of Economic Development, Environment and

Tourism: www.ledet.gov.za

National Department of Small Business Development:

www.dsbd.gov.za

Shanduka Black Umbrellas: www.shandukablackumbrellas.org

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

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

81 LIMPOPO BUSINESS 2017/18


MASISIZANE FUND

2017 marks the tenth anniversary of the

Masisizane Fund. Established as an initiative

of Old Mutual South Africa in 2007 following

the closure of the Unclaimed Shares Trust, the

Masisizane Fund has made good inroads

toward fulfilling their mandate to contribute

meaningfully to employment creation, poverty

eradication, the reduction of inequality,

economic growth and attraction of investments.

In 2016, loans to the value of R18.4 million

were approved for the Limpopo region,

R14 million was dispersed, four enterprises were

funded and 68 jobs were facilitated .

The Masisizane Fund offers tailored, integrated

and flexible financial and non-financial

solutions including financial education,

capacity development and mentoring

support. "We take time to fully understand

each enterprise’s needs, challenges and

characteristics. The partnerships this

understanding creates with small business

owners adds value and offers innovative

enterprise finance models aimed at ensuring

long-term enterprise growth, sustainability

and development impact", says Maphala

Mosomane, Provincial Manager, Limpopo

and Mpumalanga.

Maphala Mosomane,

Provincial Manager

Limpopo and

Mpumalanga

A Masisizane Client Competition was launched

in the second half of 2016 to celebrate

our clients’ outstanding achievements. This

competition comprises five provincial

events followed by a national event in

July 2017 when we celebrate our 10th

anniversary and announce the national

winner.

The Limpopo event held in December 2016 saw

the Mashashane Filling Station (Pty) Ltd win the

Best Youth Owned Business of the Year award.

Alongside Trading & Projects CC won

the Entrepreneur of the Year award and

Mathosim Trimming & Upholstery CC

received two awards, namely Best Female

Owned Business and Best Business of the Year.

Mashashane Filling Station (Pty) Ltd is a

legacy business established by the late

Mr GM Ledwaba. The business ceased its

operation in 2003. The Ledwaba family

retained ownership but rented the business to

someone else until early 2012 when it was

inherited by Lucas Ledwaba who worked to

formalise the operations and register it as a

private company. Since then the

Mashashane Filling Station (MFS) has only

improved and grown under Lucas’

leadership.

Lucas is a self-made man who, in spite of

not having a formal tertiary education, has

natural business acumen, understands the

nature of his business, has experience and is

a formidable entrepreneur.

Making full use of the three underground tanks

for petrol with a total capacity of 41000 litres

for ULP 95, ULP 93 and LRP 93, a disciplined

Old Mutual is a Licensed Financial Services Provider


Lucas managed to increase the fuel sales from

3 000 litres to approximately 62 000 litres

per month. He then went on to improving

the business by building a convenience

store, fencing off the property and buying a

business vehicle.

employs 6 petrol attendants and 3 cashiers.

They started operating 24 hours a day, seven

days a week as of December 2015. MSF is

even prepared with a standby generator in

case of load shedding, though at the moment,

it is not a major problem in the area.

In 2015 Masisizane provided Lucas with

a loan which he used to acquire two more

overland diesel tanks, each with a capacity

of 9 000 litres. He also had the foresight

of having an awning constructed that would

provide much-needed shade to his customers

and employees in this extremely warm part of

South Africa with its harsh climatic conditions.

The Mashashane Filling Station under Lucas’

direction now uses a tag system in the forecourt,

As a well-respected and concerned member of

the Mashashane community, Lucas Ledwaba

recognised the deficit caused by a lack of

internet access in the area.

To redress this he provided an office on the

MFS premises to a young unemployed youth

from the area who now successfully operates

the only Internet Café in the area, providing

services ranging from faxing to internet access.

Lucas with some of his employees at MFS.

Lucas receiving the award for the

Best Youth Owned Business in Limpopo from

management of the Masisizane Fund.

Kokstad Flagship Office 039 727 3100 NDlamini2@oldmutual.com

Eastern Cape 043 704 0116 PMlilo@oldmutual.com

Gauteng (incl. North West, Free State) 011 217 1746 NBoqo@oldmutual.com

Western Cape 021 509 5074 ASnyders@oldmutual.com

KwaZulu-Natal 031 335 0402 SNkosi4@oldmutual.com

Limpopo (Incl. Mpumalanga) 015 287 4279 BSemenya@oldmutual.com

More information on Masisizane can also be accessed from our

website: www.masisizane.co.za

An initiative of the

Group

bds L10404 29.03


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

apolitical, 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 / +27 15 297 8058

Email: admin@pcob.co.za

Website: www.pcob.co.za

LIMPOPO BUSINESS 2017/18

84


The Black Management

Forum Limpopo

FOCUS

Advancing socio-economic transformation.

The Black Management Forum (the BMF) is the foremost organisation

in the development of managerial leadership and advancement

of socio-economic transformation in South Africa. Our

focus in Limpopo is to ensure that we support and develop those

already in managerial positions. We also support those who aspire to

be managers. The newly-elected leadership lead by Dr John Mudau as

the provincial Chairperson has recommitted assisting past and current

members to hold the highest ethical standards.

The current programmes include:

• Engagement with district mayors. This programme is aimed at

ensuring that municipalities at all levels are assisted to get out

of the difficulties they find themselves in, particularly related to

audit opinions. It is the view of this leadership that the BMF should

provide technical support and, in some cases, competent human

capital that will assist municipalities. It is unacceptable to the BMF

that two decades after independence the province still struggles

to get competent people. We think BMF should encourage its

members to make their skills available to municipalities. We are

equally happy with the support we are getting from both district

and local mayors in this regard.

• Support for women in business. It is the considered view of the BMF

in Limpopo that if the economy of the province is to be rejuvenated

and the province’s contribution to national GDP is to increase, BMF

must do the right thing. This means supporting women in business.

BMF has reached an agreement with IDC. The agreement requires

BMF to submit a list of women-owned agri-processing companies

to the IDC. The Chief Executive Officer of the IDC had committed

that the corporation will fund these companies. This is the right

thing to do and will assist the province greatly.

• The development of young entrepreneurs. The provincial leadership

is embarking on a youth entrepreneurship programme

through the BMF Young Professional wing. The idea is to encourage

young professionals to start their own businesses which they will

manage on their own. This will help to truly transform the economy

of the province.

Dr John Mudau, Black

Management Forum

Limpopo Provincial

Chairperson

CONTACT INFO

Physical address: 73 Biccard

Street, Maneo House PWC,

Polokwane 0700

Acting Provincial

Administrator (Limpopo)

Black Management Forum

(BMF): David S Maatsie

Tel: +2715 297 0780

Mobile: +27 076 267 1849

E-mail: BMFL@bmfonline.

co.za

Website: www.bmfonline.co.za

85 LIMPOPO BUSINESS 2017/18


OVERVIEW

Education and training

Relevant training for employment is a provincial priority.

The Limpopo Provincial Government is running a national pilot

project in training for Tool, Dye and Mould-Making.

There is a plan to establish a Manufacturing Support Centre to

make sure that the right skills are being taught to support industry.

Participants include the Limpopo Tooling Initiative Advisory Board, the

Technology Information Agency and universities.

During the 2016/17 financial year, the provincial government

employed 134 graduates. A further 120 trainee field rangers were

recruited through the Jobs Fund. Deployment to work in game and

nature reserves began in April 2016 and continued through 2017, in

consultation with traditional authorities around the province. Another

6 362 young people were trained in business and technical skills and

3 907 were employed in either the public and private sector. A further

8 300 will be absorbed in the 2017/18 financial year as part of the same

programme. In a specialist programme to develop skills in the green

economy, 31 young people are studying energy management systems.

Other training achievements include:

• 31 being certified as energy managers

• 6 fully accredited as artisans

• 949 community members receiving ICT skills training.

The Medupi Power Station Joint Venture (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.

De Beers has established a Skills Development Centre, linked to its

Venetia Mine. The centre caters not only to mine employees, but also

EDUCATION STATISTICS, 2017

Scholar transport schools 255

NSNP beneficiaries* 3 854

No-fee school pupils

1.7-million

Primary Schools offering Grade R 2 339

Classrooms built 2015/16 354

New schools built 2015/16 5

Teachers given extra training:2013-2016 1 400

* National Schools Nutrition Programme

SOURCE: LIMPOPO PREMIER’S STATE OF PROVINCE SPEECH, 2017

SECTOR INSIGHT

Trainee field rangers have

been recruited through the

Jobs Fund.

for local school pupils and adults

from the community of Alldays.

Impala Platinum, with

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.

Anglo Platinum (Amplats) has

a new Mining Training Centre

(Eastern Limb) at its Twickenham

mine which will also deliver training

and assessment to staff of

other operations.

There are seven Technical

and Vocational Education and

Training (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

LIMPOPO BUSINESS 2017/18

86


OVERVIEW

National Curriculum Vocation

(NCV) subjects. Seshego (near

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

merSETA.

Waterberg College operates

as five business training centres

across two municipalities,

namely Lepelle-Nkumbi and

Mogalakwena.

Tertiary

Sixty students proudly enrolled

in January 2016 at the School

of Medicine at Turfloop. This

forms part of the reconstituted

Faculty of Health Sciences of the

University of Limpopo.

Polokwane Municipality has

made the land available for the

construction of the Limpopo

Academic Hospital and the national

Ministry of Finance has announced

that it will be working

towards the realisation of plans

for both the Limpopo Academic

Hospital and the new Medical

School in Limpopo.

The curriculum for the

undergraduate programme

has been approved by the

Health Professions Council

The Sumbandila Scholarship Trust supports poor pupils in the

Vhembe District at Ridgeway College.

of South Africa (HPCSA) and the Council for Higher Education

accrediting committee.

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.

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 master’s degrees. These are the Master

of Business Administration (MBA), the Master of Public Administration

(MPA) and the Master of Development (MDev).

ONLINE RESOURCES

Council of Higher Education: www.che.ac.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

87 LIMPOPO BUSINESS 2017/18


OVERVIEW

Tourism

Cultural tourism is growing fast in Limpopo.

SECTOR INSIGHT

Rural villagers have been

encouraged to host tourists.

• 80% of game hunting

happens in Limpopo.

• Park Inn by Radisson

Polokwane has opened.

Limpopo Province has very varied tourism assets that include

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

highlands, hot springs, a unique cycad forest, great golf courses

and the northern part of the Kruger National Park. There are

numerous private game reserves and many provincial game and nature

reserves.

Limpopo’s national parks are run by South African National Parks

(SANParks). These are Kruger, Mapungubwe and Marakele national

parks. There are more than 50 provincial nature reserves managed by

the Limpopo Department of Economic Development, Environment

and Tourism (LEDET). They serve to promote tourism, develop the local

economies and promote ecological conservation. Many of these

reserves are communally owned but jointly managed by the province

and communities.

The provincial government has committed to enhancing the value

of Limpopo’s two UNESCO World Heritage Sites, Mapungubwe Heritage

Site and Makapans Valley. This is also a priority programme in the National

Tourism Sector Strategy. The Waterberg Biosphere Reserve is a UNESCO

protected site.

Limpopo in 2016/17 attracted 405 734 visitors to the province, generating

an amount of R1.8-billion for the provincial economy.

A new drive to promote home-stays is under way in the northern

part of the province. Promoting

local culture and small enterprises

is in keeping with the designation

of the year 2017 by the United

Nations as the International Year

of Sustainable Tourism.

Getting tourists to eat mopani

worms and learn about local

traditions and cultural practices

would help to generate income

for villages and hamlets otherwise

outside the mainstream

economy.

In support of the arts and

culture sector, a potential area of

growth for tourism in Limpopo, a

performance theatre is to be built

in Polokwane.

The Mapungubwe Festival

is growing in stature every year.

In addition to the popular musical

performances, crafters have

an opportunity to display their

crafts and generate good income

during the festivities.

The Marula Festival has been

even more of a success. The event

regularly attracts 30 000 festival-

LIMPOPO BUSINESS 2017/18

88


OVERVIEW

goers. Several neighbouring

countries are well represented in

the crowds and 13 co-operatives

operating under the Mukumbi

Industries brand normally brew

about 12 000 litres of marula

beverages for the thirsty crowds.

Other marula products are also

sold such as nuts, body lotions,

jam, cooking oil and soap.

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 high-end 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 the

top of a mountain and take aim at

an Africa-shaped green way down

at the bottom of the hill.

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 Ndabele people in

the Sekhukhune District.

Although most of the province’s

resorts and lodges are in

private hands, the province has

three national parks, and the

provincial government runs

54 nature reserves of different

types. The combined land area

of Limpopo’s national, provincial

and private game and nature reserves

is 3.6-million hectares.

According to the Limpopo Premier’s office, the tourism sector

employs about 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

A new 160-room Park Inn by Radisson Polokwane has opened in the

provincial capital. Located near the golf course and the Peter Mokaba

Stadium, the hotel also has conference and event facilities.

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. 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 near the Waterberg mountains, the Protea Hotel The Park

has 125 rooms and can cater for up to 400 conference delegates. The

three-star hotel recently added 25 self-catering units.

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. The

Limpopo Gambling Board regulates the industry and grants licences.

The Mopani District was recently granted two new bingo licences.

The most recent casino licence was awarded to 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 needs a

89 LIMPOPO BUSINESS 2017/18


OVERVIEW

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.

Several resorts in a variety of climatic regions fall under the control

of the provincial body, Limpopo Wildlife Resorts. 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 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 500ha

of pristine bush just outside the Kruger National Park.

Forever Resorts encompasses 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,

LIMPOPO BUSINESS 2017/18

90


INTERVIEW

Park Inn by Radisson

Polokwane

Mr Mofasi Lekota, owner of Polokwane’s latest

new hotel, outlines his vision.

Mofasi Lekota

BIOGRAPHY

Mofasi Lekota gained his first

degree from the University of

Limpopo which was followed

by an MBA from Rutgers University

(USA) and he is currently

studying for a doctorate

in Business Management. He

has Board Leadership Development

qualifications from American

and South African schools

of business. He has been on

the boards of JSE-listed companies

like Adcorp Holdings

and is currently the executive

chairman of Amazin Hotels

and the non-executive Chairman

of the Limpopo Economic

Development Agency.

Why have you invested in Polokwane?

I am originally from Polokwane so I have ties with the province and

the city. I spend quite a lot of time here, and I’m also involved in the

Limpopo Economic Development Agency (LEDA) as non-executive

Chairman. I’ve been in other parts of the country and spent some

time overseas. I have invested in a variety of businesses including

cement manufacturing.

My interest in hospitality started a few years ago with a B&B in

Midrand, followed by a lodge in Makhado and a 70-room hotel in

Mbombela. The investment decision was influenced to some extent by

the fact that I come from here, I understand the community and there

is an embedded wish to invest back in the community I come from.

What is the target market?

Globally the Park Inn brand targets both business and leisure travellers

who attach importance to quality of service and value for money. A

clean, comfortable hotel that provides best-in-class service.

As a relatively new entrant in the hospitality market mainstream, it

was important to match the project to a clear gap. I wanted to address

an existing need and Polokwane came to mind.

Why Radisson?

I looked at almost all the major international hotel operators in my

thorough research. The first thing I liked about Radisson was the principle

that they don’t own, but operate hotels, so there is no potential for

conflict of interest. The second thing was their vision for Africa. They

are one of the fastest growing brands on the African continent. I liked

the energy and the support that their management give, especially

the technical support during the development phase. The choice

was very deliberate.

How important will the events/conferences side of the

business be?

It is important to us. We have large enough facilities, to cater for select

groups and the latest conferencing technology. We offer some of the

best in the province.

91 LIMPOPO BUSINESS 2017/18


OVERVIEW

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.

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 activity in the

Magoebaskloof area, while quadbiking

can be found in 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.

About 80% of the hunting that takes place in South Africa occurs in

Limpopo on approximately 4 500 farms. Wildlife auctions are popular

events in Limpopo. Wild Life Rancher website gives regular updates

on the latest auctions. Some examples of prices achieved at auctions

in 2017 include R3.6-million for a Nyala bull, R24.8-million for three

buffalo cows (Piet du Toit auctions) and a combined turnover at an

auction held by Dries Visser Pure Bred Game of R44.7-million. These

figures give an indication of the potential of this market.

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

Vultures, containing as it does 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 Department of Sport, Arts and Culture:

www.sac.limpopo.gov.za

Marula Festival: www.limpopomarulafest.co.za

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

LIMPOPO BUSINESS 2017/18

92


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

Mowaneng Building, 40 Hans van Rensburg Street, Polokwane 0700

Tel: +27 15 287 6515 | Fax: +27 15 291 3911

Website: www.limpopo.gov.za

Department of Agriculture

MEC: Mr Seaparo Charles Sekoati (Acting)

Temo Towers, 69 Biccard Street, Polokwane 0699

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

20 Rabie Street, Hensa Building, 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

Evridiki Towers, 20 Hans van Rensburg Street, Polokwane 0699

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

Website: www.ledet.gov.za

Department of Education

MEC: Mr Ishmael Kgetjepe

Department of Education Building, cnr Biccard and Excelsior Streets,

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

18 College Street, Polokwane 0699

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

43 Church Street, Polokwane 0699

Tel: +27 15 284 7000

Website: www.dpw.limpopo.gov.za

Department of Security, Safety and Liaison

MEC: Ms Nandi Ndalane

32 Schoeman Street, Polokwane 0699

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

Website: www.dssl.limpopo.gov.za

Department of Social Development

MEC: Ms Joyce Mashamba

18 College Street, Polokwane 0700

Tel: +27 15 293 6027/04 | Fax: +27 15 293 6170/50

Website: www.dsd.limpopo.gov.za

Department of Sport, Arts and Culture

MEC: Ms Oniccah Moloi

Olympic Towers, 21 Biccard Street, Polokwane 0700

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

Website: www.sac.limpopo.gov.za

Department of Transport

MEC: Ms Nandi Ndalane

Pomoko Towers, cnr Bodenstein and Church Streets, Polokwane

Tel: +27 15 295 1000 | Fax: +27 15 295 1163

Website: www.ldot.limpopo.gov.za

Provincial Treasury

MEC: Mr Rob Tooley

Ismini Towers, 46 Hans van Rensburg Street, Polokwane 0699

Postal address: Private Bag X9486, Polokwane 0700

Tel: +27 15 298 536

Fax: +27 15 295 8873/7010

Website: www.limtreasury.gov.za

93 LIMPOPO BUSINESS 2017/18


LISTING

Limpopo Local Government

A guide to the district and local municipalities in Limpopo.

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

Website: www.cdm.org.za

Blouberg Local Municipality

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

Website: www.blouberg.gov.za

Lepelle-Nkumpi Local Municipality

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

Website: www.lepelle-nkumpi.gov.za

Molemole Local Municipality

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

Website: www.molemole.gov.za

Polokwane Local Municipality

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

086 608 0290 (SA only)

Website: www.polokwane.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

Ba-Phalaborwa Local Municipality

Tel: +27 15 780 6300

Fax: +27 15 781 0726

Website: www.ba-phalaborwa.gov.za

Greater Giyani Local Municipality

Tel: +27 15 811 5500

Fax: +27 15 812 2068/1683

Website: www.greatergiyani.gov.za

Greater Letaba Local Municipality

Tel: +27 15 309 9246

Fax: +27 15 309 9419

Website: www.greaterletaba.gov.za

Greater Tzaneen Local Municipality

Tel: +27 15 307 8000

Fax: +27 15 307 8049/48

Website: www.tzaneen.gov.za

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

Elias Motsoaledi Local Municipality

Tel: +27 13 262 3056 | Fax: +27 13 262 2547/4530

Website: www.eliasmotsoaledi.gov.za

Ephraim Mogale Local Municipality

Tel: +27 13 261 8400 | Fax: +27 13 261 2985

Website: www.ephraimmogalelm.gov.za

Fetakgomo-Greater Tubatse Local

Municipality

Tel: +27 15 622 8000 | Fax: +27 15 622 8026

Website: www.fetakgomo.gov.za

Makhuduthamaga Local Municipality

Tel: +27 13 265 8600 | Fax: +27 13 265 1975/1076

Website: www.makhuduthamaga.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

LIMPOPO BUSINESS 2017/18

94


LISTING

Makhado Local Municipality

Tel: +27 15 519 300 | Fax: +27 15 516 1195

Website: www.makhado.gov.za

Musina Local Municipality

Tel: +27 15 534 6100 | Fax: +27 15 534 2513

Website: www.musina.gov.za

Mutale Local Municipality

Tel: +27 15 967 9600 | Fax: +27 15 967 9677/9654

Website: www.mutale.gov.za

Thulamela Local 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

Bela-Bela Local Municipality

Tel: +27 14 736 8000 | Fax: +27 14 736 3288

Website: www.belabela.gov.za

Lephalale Local Municipality

Tel: +27 14 763 2193

Fax: +27 14 763 5662/086 534 3440

Website: www.lephalale.com

Lim 368 Local Municipality

Tel: +27 14 718 2000 | Fax: +27 14 717 4077

Website: www.modimolle.gov.za

Mogalakwena Local Municipality

Tel: +27 15 491 9630

Fax: +27 15 491 9755

Website: www.mogalakwena.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

Bele-Bela

N11

Mogalakwena

Mookgophong

Bela-Bela

Lim 368

Mokopane

N1

Modimolle

Alldays

Blouberg

N11

Capricorn

Molemole

R81

N1

Makhado

POLOKWANE

Polokwane

Ephraim

Mogale

Makhado

Lepele-Nkumpi

Makhuduthamaga

Vhembe

Tshipise

Greater Letaba

Tzaneen

Greater Tzaneen

Fetakgomo-Greater

Tubatse

Sekhukhune

Thohoyandou

Thulamela

Kruger

R81

National

Area

Greater Park

Giyani

Mopani

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

95 LIMPOPO BUSINESS 2017/18


PROFILE

City of Polokwane

Business opportunities on offer in multiple sectors.

Polokwane is the capital of the Limpopo Province

and the seat of the Provincial Legislature and Premier.

It is centrally located in the Capricorn District and is

the biggest urban centre in the province.

Polokwane contributes 13% of the provincial GDP

and is the province’s main centre for industry, commerce,

education and medical services. It covers an

area of 3 766km².

The city lies on the N1 highway leading from

Johannesburg to Zimbabwe, the Great North

Road, and consequently logistics is a thriving sector.

Polokwane International Airport handles an average

of 3 700 aircraft, carrying 60 000 arriving and

departing passengers a year.

Polokwane is the most densely populated part of

the Limpopo Province and the population of close

to 800 000 provides a ready market for goods and

services. The biggest economic sectors of the city

currently are community and government services

(32%), finance (23%) and wholesale and retail trade.

Other significant sectors include transport and

logistics, manufacturing and mining.

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.

Nearby agricultural citrus estates send their products

to Polokwane for processing, as do the potato and

tomato farmers who plant on a large scale in the

district. 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. The newly

opened 160-room Park Inn by Radisson Polokwane

is an indication of investor confidence in the city.

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.

Polokwane has a number of impressive art galleries

and historical buildings. The city has its own

game reserve and the Peter Mokaba Stadium – a

2010 Soccer World Cup venue – regularly hosts big

football matches and events. Polokwane falls in a

summer rainfall area. The average temperature is

17°C and the average annual rainfall is 598mm

LIMPOPO BUSINESS 2017/18

96


Identified investment opportunities

Pre-feasibility studies and partners are sought for

a range of investment opportunities across several

sectors.

Manufacturing

To address complete backward and forward linkages

from farmers to the consumers, the following

facilities are required:

• Collection Centres

• Logistics Support Facilities

• Terminal Market Centre

• Other Support Facilities

The Polokwane International Airport could also be

used to transport high-value produce internationally.

Logistics

Agri-Logistics Hub: will manage the logistics of agricultural

produce and agri-processed products in and

near the Agri-Processing Park. It will include road, air

and rail options, which will provide further opportunity

to develop air cargo facilities at Polokwane

International Airport.

Truck Stop and Filling Station: a dedicated truck

stop should include a full range of services focussed

on truck maintenance and driver support.

Air cargo: four blocks of hangars with four hangars

in each block could be converted to cargo storage

facilities. There are currently no storage facilities at

the airport. Each hangar offers approximately 540m²

of floor space. Air cargo facilities will open new international

trade markets for products from the city of

Polokwane, Capricorn District and Limpopo Province.

This may allow the local trade market to diversify.

Retirement precinct

The Retirement Village Housing will provide housing

for a large number of retirees who will require many

services. In addition, it will provide housing to those

who are physically and mentally handicapped within

special care units.

This will have to be supported by a business complex

where doctors, specialists and other medical personnel

can operate and a retail area where residents of

the retirement village can purchase groceries and

other goods.

• Retirement village housing

• Retirement village business complex

• Private fragile care centre

• Special needs care units

PROFILE

Education

Polokwane has a much better educated adult population

in 2015 than that of Capricorn and Limpopo.

Some 19.34% of Polokwane’s population had Grade

12, a certificate, or diploma, compared to Capricorn’s

15.5% and Limpopo’s 13.76%. In addition, 10.54%

of Polokwane’s population had higher education

compared to Capricorn’s 7.6% and Limpopo’s 5.1%.

• Private schools

• Special needs schools

• Student housing

Tourism

Medical tourism packages: with hospital and medical

staff who specialise in the medical requirements

of the aged, physically and mentally handicapped,

Polokwane can develop medical tourism with

specific focus on these areas. This in turn will increase

transport to and from Polokwane, including

increased air passenger demand at Polokwane

International Airport and accommodation for these

persons in places such as hotels, frail care and

recovery centres.

The School of Medicine is a relatively newly established

school within the Faculty of Health Sciences

of the University of Limpopo, located just outside

Polokwane. Additional tourism investment

opportunities include:

• Hotel

• Wedding venue development

CONTACT INFO

Postal address: Polokwane Municipality,

PO Box 111, Polokwane Civic Centre

Tel: +27 15 290 2495 | Fax: +27 15 290 2009

Email: economist@polokwane.gov.za

Website: www.polokwane.gov.za

97 LIMPOPO BUSINESS 2017/18


LISTING

INDEX

Black Management Forum.................................................................................................................................... 83

De Beers Group of Companies – Venetia Mine.............................................................................. 47 - 53

Exxaro Resources Limited....................................................................................................................................... 56

Great North Transport.............................................................................................................................................IFC

Implats................................................................................................................................................................................ 58

IvanPlats............................................................................................................................................................................ 54

LEDA Enterprise Development and Finance Division .......................................................................... 24

Leeto la Polokwane...................................................................................................................................12, 64 - 67

Limpopo Connexion...................................................................................................................................... 26 - 28

Limpopo Economic Development Agency (LEDA) ............................................................................... 10

Limpopo Office of the Premier ..............................................................................................................................8

Masisizane Fund........................................................................................................................................................... 80

Nedbank...........................................................................................................................................................7, 32 , OBC

Old Mutual............................................................................................................................................................ 34 - 37

Park Inn by Radisson Polokwane ............................................................................................................... 5, 89

Polokwane Chamber of Business ..................................................................................................................... 82

Polokwane Municipality .................................................................................................................................. 13, 94

Risima Housing Finance Company..........................................................................................................29 - 31

Unemployment Insurance Fund (UIF)...............................................................................................................3

Vodacom.........................................................................................................................................................70 - 75, IBC

LIMPOPO BUSINESS 2017/18

98


Contact us on +27 15 495 0645 or LIMVodacombusiness@vodacom.co.za


SEE MONEY DIFFERENTLY WITH

WHOLE-VIEW

TM

BUSINESS BANKING

With Whole-view Business Banking from Nedbank, there’s one bank with one view across

your business, allowing us to create unique business and financial solutions together.

You’ll get partnership advice from a dedicated local client service team, supported by

a team of specialists. By having the full picture we’ll have a deeper understanding of your

business, which will take it further than ever before.

Sometimes, a change in approach can change everything. Partner with Nedbank today.

Search Whole-view Business Banking or email business@nedbank.co.za.

see money differently

Nedbank Ltd Reg No 1951/000009/06. Authorised financial services and registered credit provider (NCRCP16).

More magazines by this user
Similar magazines