South African Business 2018 edition

christoffscholtz

Welcome to the sixth edition of the South African Business journal. First published in 2011, the publication has established itself as the premier business and investment guide to South Africa, supported by an e-book edition at www.southafricanbusiness.co.za.

Regular pages cover all the main economic sectors of the South African economy and give a snapshot of each of the country’s provincial economies. Feature articles on topical issues such as sustainability and African trade provide unique insights, together with an interview with the newly elected chairman of the African Association of Automotive Manufacturers, Mr Thomas Schaefer. Another special feature focusses on an exciting project to transform South Africa’s small harbours and coastal properties.

South African Business is complemented by nine regional publications covering the business and investment environment in each of South Africa’s provinces. The e-book editions can be viewed online at www.globalafricanetwork.com.
First published in 2011, the publication has established itself as the premier business and investment guide to South Africa, supported by an e-book edition at www.southafricanbusiness.co.za

Regular pages cover all the main economic sectors of the South African economy and give a snapshot of each of the country’s provincial economies. Feature articles on topical issues such as sustainability and African trade provide unique insights, together with an interview with the newly elected chairman of the African Association of Automotive Manufacturers, Mr Thomas Schaefer. Another special feature focusses on an exciting project to transform South Africa’s small harbours and coastal properties.

South African Business is complemented by nine regional publications covering the business and investment environment in each of South Africa’s provinces. Visit www.globalafricanetwork.com for more business and investment news, opportunities and events.

SOUTH AFRICAN

2018 EDITION

BUSINESS

THE GUIDE TO BUSINESS AND INVESTMENT

IN SOUTH AFRICA

EASTERN CAPE PROVINCE

FREE STATE PROVINCE

GAUTENG PROVINCE

KWAZULU-NATAL PROVINCE

LIMPOPO PROVINCE

MPUMALANGA PROVINCE

NORTHERN CAPE PROVINCE

NORTH WEST PROVINCE

WESTERN CAPE PROVINCE

JOIN US ONLINE WWW.GLOBALAFRICANETWORK.COM | WWW.SOUTHAFRICANBUSINESS.CO.ZA

Commercial

Vehicles


Why Invest

in Space

OUR IMPACT is derived from our national capacity, experience

and expertise in space science and technology through six thematic focus areas:

• Earth Observation - SANSA collects, assimilates and disseminates

Earth observation data to support South Africa’s policy making,

economic growth and sustainable development initiatives. Earth

observation data is used for human settlement growth mapping,

infrastructure monitoring, as well as disaster and water resource

management. Earth observation satellite data contributes to

monitoring environmental variables in the water cycle such as

water quantity, quality, soil erosion and vegetative health which

ensures water safety and security for the country.

• Space Operations - SANSA provides global competitive space

operations and applications, tracking, telemetry and command

services while managing ground stations for international clients.

Space Operations provides world class launch support for space

missions (from Earth into our solar system) and ensures satellites

are continuously monitored when they are travelling over African

skies.

• Space Science - SANSA conducts cutting edge space science

research, development and magnetic technology innovation.

Space science research is vital for gaining a deeper understanding

of our space environment in order to protect essential

infrastructure such as power grids and communication and

navigation systems on Earth and in space. SANSA operates the

Space Weather Regional Warning Centre for Africa, providing

forecasts and warnings on space weather conditions. Extreme

space weather may impact technological systems such as

satellites, power grids, avionics and radio communication.

• Space Engineering – SANSA aims to provide access to state-ofthe-art

satellite assembly, integration and testing services, as well

as satellite systems coordination and development, to ensure

an environment conducive to industrial participation in satellite

programmes.

• Human Capital Development - SANSA aims to advance human

capital development to grow the knowledge economy and

create awareness about opportunities in engineering, science and

technology. This is achieved through scarce skills development,

summer and winter schools, the supervision of MSc and PhD

students, and teaching at partner universities.

• Science Advancement and Public Engagement - SANSA

promotes science advancement and public engagement through

participation in national science awareness events and through

using the fascination of space to drive a greater uptake of studies

in science, maths, engineering and technology.


SANSA

provides stateof-the-art

ground

station facilities and

services including

satellite tracking, launch

support, mission

control and space

navigation.

SANSA monitors

the Earth’s magnetic

field and space weather

storms to assist in

protecting technology

on Earth and in space.

Satellite imagery

helps manage food

and water security as

well as natural disasters

on Earth like floods,

droughts and fires.

In a country faced with numerous challenges in

housing, crime, poverty and the provision of basic

necessities, you may ask why invest in space?

The answer is clear.

Space investment is essential

for economic sustainability

and development!

Without space applications we would not be able to mitigate

disasters or effectively manage our resources such as water, food, land

and housing. Mobile phones, internet, GPS, ATMs, meteorological

forecasting and safe land and sea travel all rely on satellites positioned

in space. Government, industry and academia also rely on space

data to deliver on their priorities through the creation of applied

knowledge, products and services.

SANSA provides value-added products and services that are utilised

in both space and non-space applications. Space information

enables everyday decision making at all levels of society. SANSA has

contributed towards goals within the National Development Plan

(NDP) and the goals of the Department of Science and Technology

(DST) by delivering products and services to its stakeholders and the

public.

South Africa’s next earth observation satellite is an example of one of

these deliverables and is also one of the incredible opportunities to

showcase the importance of investment in space science, engineering

and technology and for South Africa to take its place in the global

space arena.

@SANSA7

South African National Space Agency

South African National Space Agency

Enterprise Building, Mark Shuttleworth Street, Innovtion Hub, Pretoria, 0087

T: 012 844 0500 | F: 012 844 0396 | information@sansa.org.za | www.sansa.org.za


Welcome

to Durban!

A lifestyle of business and pleasure together.

Facilitating sustainable investment in Durban

for the benefit of all

Invest Durban (previously DIPA) is an

entity of the eThekwini Municipality,

recommended by the Durban City Council

and organised private business as the

most appropriate vehicle to promote and

facilitate new investment into the Durban

metropolitan area.

Invest Durban’s primary objective is to

accelerate sustainable investment in

Durban for the benefit of all through the:

• Proactive investment promotion

and marketing of Durban Metro as a

premium investment destination

• Proactive communication and

marketing of the City’s large investment

projects and core strategies

• Identification and development of new

investment opportunities, especially

for previously disadvantaged groups

• Attraction, support and facilitation

for prospective foreign investors

in Durban

• Improvement in the investment and

economic development environment,

in partnership with National, Provincial,

City and Business Authorities.

Invest Durban offers FREE:

• Investment Information and

Facilitation Services

• Immigration, Import and Legal Services

Business Establishment and Incentives

• Investor Administration Services


Doing business in Durban

Durban has been developed around a

natural ocean port, major industrial base

and scenic tourism assets which play key

roles in the city, plus across Africa.

Strategic location

The port of Durban is modern and wellequipped.

It offers investors a range of

competitive and strategic advantages. The

city has emerged as the de facto coastal

trade ‘gateway’ to Southern Africa. It boasts

the largest port in Africa, as regards value of

cargo, and is South Africa’s premier general

cargo and container port. It is positioned

to access international shipping links to the

Americas, Europe, the Persian Gulf, South

East Asia, the Pacific Rim and Australia/New

Zealand and perfectly located for the transshipment

of cargoes between Eastern,

Middle-Eastern and Western economies.

Infrastructure and business

Durban offers established and advanced

road, rail, sea, air and ICT network

infrastructure. This underpins the second

largest industrial base in SA.

Quality logistics systems include:

• Port operation facilities

• Rail network – cargo and passenger

• International airport with air cargo

facilities

• Extensive road network with national and

regional linkages

• Oil/petroleum pipeline to Gauteng and

Free State Provinces

• Gas pipeline emanating from Sasol, in

Mpumalanga province

• Metro-wide fibre-optic systems.

Durban provides a number of new

opportunity areas for investors, both large

and small.

Investment opportunities may be

categorised into the following fields:

• Agri-processing

• Auto and allied manufacturing

• ICT, BPO and shared service centres

• Medical devices, health services and

pharmaceutical manufacturing

• Logistics and maritime

All of the above driven by world-class

innovation and holistic sustainability

Invest Durban, eThekwini Municipality

11th Floor, 41 Margaret Mncadi Avenue (old Vic. Embankment),

Durban, 4001 South Africa

Tel: +27 31 311 4227 | Email: invest@durban.gov.za

Website: www.durban.gov.za


CONTENTS

CONTENTS

South African Business 2018 Edition.

Introduction

Foreword10

A unique guide to business and investment in South Africa.

Special features

An economic overview of South Africa 12

South Africa is a country of great diversity – of its population,

its landscapes and its natural resources.

Business expands into Africa 22

Manufacturing and services are targeted for export growth.

Invest in the Mountain Kingdom 28

The Lesotho National Development Corporation has

attractive projects in several sectors.

Sustainability is a new priority for business 30

The circular economy, renewable energy and energy efficiency

are creating new industries.

Skills development 34

Job-relevant training is key to economic growth.

Realising the promise of the Oceans Economy 46

South Africa’s coastline is to become a catalyst for new

business opportunities, economic growth and job creation.

Economic sectors

Agriculture 60

Agriculture companies are active on the stock exchange.

SOUTH AFRICAN BUSINESS 2018

4


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ABS, ASR and ESP that ensure a steady ride over even the harshest terrain. You see the one ton

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The Amarok. Not just tough, smart.

Commercial

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CONTENTS

Mining 65

The South African mining landscape is changing.

Oil, gas and petrochemicals 69

The sector is alive with activity.

Energy 76

South Africa’s energy mix is becoming more diverse.

Water 84

Water infrastructure is a priority.

Engineering 88

The renewable energy sector holds great promise for

engineering firms.

Manufacturing 94

Large incentives are available to investors in manufacturing.

Automotive 100

Multi-billion-rand investments are boosting vehicle production.

Chemicals and pharmaceuticals 103

Drug research is in the spotlight.

Food and beverages 104

Consumer companies are looking to Africa for growth.

Transport 106

Investments in rail are increasing.

Business services 110

Consulting is a growth industry.

Tourism 116

Ten-million tourists visited South Africa in 2016.

Information and communications technology 126

A rural network is providing free local calls.

SOUTH AFRICAN BUSINESS 2018

6


A city so good

you’ll want to invest in it.

live | play | invest

Aerotropolis City

The City of Ekurhuleni is home to OR Tambo International Airport, Africa’s biggest and

busiest airport on the continent. The City is also considered the manufacturing hub

of the country, which boasts a significant logistics corridor along the R21 highway and

an extensive transport network across rail, road and air.

Come invest in Ekurhuleni, the Aerotropolis City.


CONTENTS

Banking and financial services 128

New banks and new stock exchanges are adding to South

Africans’ choices.

Development finance and SMME support 130

South Africa has over two-million SMMEs.

Government

South African National Government 134

Regions

Eastern Cape 140

Free State 142

Gauteng 144

KwaZulu-Natal 148

Limpopo 150

Mpumalanga 152

Northern Cape 154

North West 156

Western Cape 158

Reference

Sector contents 58

Index160

Maps

NAMIBIA

ZIMBABWE

BOTSWANA

Limpopo

Mpumalanga

Gauteng

North West

SWAZI-

LAND

Free State

KwaZulu-

Natal

MOZAMBIQUE

South African provincial map. 15

Northern Cape

LESOTHO

Detailed map of South Africa. 137

Eastern Cape

Western Cape

SOUTH AFRICAN BUSINESS 2018

8


EPC IN POWER GENERATION

Leaders in execution of turnkey engineering

in South Africa

Home-grown Lesedi Nuclear Services is a leading EPC (Engineering,

Procurement and Construction) company with extensive experience

in the execution of turnkey engineering projects, in both nuclear

and conventional environments. It has operational footprints

throughout the South African power industry.

Having completed numerous projects,

primarily at Eskom’s Koeberg Nuclear

Power Plant, construction of the

14X150MW Open Cycle Gas Turbine

Power Plant in the Western Cape,

and executing EPC contracts for the

balance of plant systems for Eskom’s

Medupi and Kusile Coal Power Plants

- still under construction - Lesedi is

well-placed to play a leading role in

offering competitive EPC proposals

to the country’s power infrastructure

industry.

Lesedi is now a Level Three B-BBEE

(Empowering supplier) company

and has registered *8EP, 9ME,

7SF certification levels with the

Construction Industry Development

Board. The company’s main

shareholder is global nuclear

company, AREVA, with the remaining

shares split between Group Five,

the J&J Group and local Lesedi

management. Since 2001, Lesedi

Nuclear Services has provided a wide

range of services to Koeberg Nuclear

Power Station. Our major involvement

has been in the supply of technical

personnel for plant upgrades (150

modifications), engineering, project

management, procurement and

maintenance.

Lesedi has a number of key

partnerships, one being our

partnership with Exosun. Exosun

is a worldwide leading supplier of

advanced, cost-effective solar tracking

solutions for ground-mounted

photovoltaic (PV) plants.

Since the partnership of Exosun

and Lesedi took place in March

2017, Lesedi has been focusing on

optimising its local supply chain

with a target of cost reduction and

an increase in local content in order

to benefit its clients and prospects.

In parallel to the progress made on

local manufacturing, Lesedi is also

focusing on optimising logistics with

local transporters and installation with

our certified installers. Due to some

uncertainty in the REIPPP in South

Africa, Lesedi is getting more involved

in private projects, and also assessing

a number of opportunities in SADC.

Lesedi’s Competencies Include:

• Project Development

• Project Management

• Construction Management

• Design Engineering

• Engineering Procurement

and Construction (EPC)

• Specialised Shutdown

Maintenance Activities

(Globally)

• Provision of Technical

Personnel

• Heating, Ventilation and

Air–Conditioning

• Power Plant Construction

• Nuclear, Gas Turbine, Coal

Power Stations, Solar Single

Excess Trucking

• Biomass, BioEnergy,

Hydrogen, Hydro, Waste-to-

Energy

LESEDI NUCLEAR SERVICES (PTY) Ltd

GET IN TOUCH

12 Edison Way, Century City, 7441,

Cape Town, South Africa

Tel: +27 21 525 1300

Fax: +27 21 525 1333

Email: lesedi@lesedins.co.za

www.lesedins.co.za / www.areva.com

*8EP Certification expected by

August 2017


FOREWORD

South African Business

A unique guide to business and investment in South Africa.

Welcome to the sixth edition of the South African Business

journal. First published in 2011, the publication has established

itself as the premier business and investment

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

at www.southafricanbusiness.co.za.

Regular pages cover all the main economic sectors of the South

African economy and give a snapshot of each of the country’s

provincial economies. Feature articles on topical issues such as

sustainability and African trade provide unique insights, together

with an interview with the newly elected chairman of the African

Association of Automotive Manufacturers, Mr Thomas Schaefer.

Another special feature focusses on an exciting project to transform

South Africa’s small harbours and coastal properties.

South African Business is complemented by nine regional publications

covering the business and investment environment in each of

South Africa’s provinces. The e-book editions can be viewed online at

www.globalafricanetwork.com. These unique titles are supported by

a monthly business e-newsletter with a circulation of over 35 000.

Chris Whales

Publisher, Global Africa Network Media

Email: chris@gan.co.za

CREDITS

Publisher: Chris Whales

Publishing director:

Robert Arendse

Editor: John Young

Online editor: Christoff Scholtz

Art director: Brent Meder

Design: Colin Carter

Production: Lizel Olivier

Ad sales: Sydwell Adonis, Nigel

Williams, Gavin van der Merwe,

Sam Oliver, Gabriel Venter,

Siyawamkela 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

South African 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.

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

Member of the Audit Bureau

of Circulations ISSN 2221-4194

COPYRIGHT | South African Business is an independent publication

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

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

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

permission of Global Africa Network Media (Pty) Ltd.

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

Wikimedia Commons, Anglo American, SA Tourism, Bloomberg, Eugene

Armer, RailPictures, Trans Caledon Tunnel Authority, Paul Saad, BM

Jackson, Aveng, Philip Mostert and Shutterstock.

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

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

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

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

or completeness of the information. Global Africa Network Media will

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

the use of or any reliance placed on such information.

Join us!

Advertise your organisation in this journal to reach

business and government. Contact sales@gan.co.za


SOUTH AFRICAN BUSINESS 2018

12


SPECIAL FEATURE

AN ECONOMIC OVERVIEW OF

SOUTH AFRICA

South Africa is a country of great diversity – of its population, its landscapes and its natural resources.

Great mineral wealth has underpinned the South African economy ever since the first diamond was

stumbled upon in 1867. Gold was found soon afterwards and that industry effectively saw to it that

South Africa became an industrialised nation. Now those gold mines are tapering off production but

iron ore and platinum reserves are impressively large.

Global demand for these resources, however, has

been very variable, dependent to a large extent on

the Chinese market. This is part of the reason why

South Africa’s economic growth in 2015 and 2016

was very modest.

The other reason is policy and political uncertainty.

The national government is run by the African

National Congress and its president, who is also

president of the country, Jacob Zuma. He has repeatedly

changed cabinet ministers and his decision to

fire the respected Finance Minister Pravin Gordhan

led to several ratings agencies downgrading South

Africa’s credit rating. The other historically strong

economic sector, agriculture, brought good cheer to

the overall economic picture in the second quarter

of 2017, boosting GDP growth by 2.5%. This was

because of a tremendous rally off a bad period

caused by a long-term drought. So good was the

recovery that South Africa reported record grain

crops and exports.

The grains of the central regions of the country,

together with the fruits and vegetables of

Mpumalanga and Limpopo, the wines and grapes

of the Western Cape, and the sheep and mohair

of the Eastern Cape, all contribute to a diverse and

vibrant agricultural sector. There are many strong

agricultural companies in the sector. KwaZulu-Natal

is the country’s leading sugar area, and has a strong

suite in forestry and paper production.

The other economic sector that has held up

well is automotive manufacturing and automotive

components.

13 SOUTH AFRICAN BUSINESS 2018


SPECIAL FEATURE

Trends

There are several areas in which new or revitalised

sectors are providing employment and creating new

opportunities:

• tourists are visiting South Africa in record numbers

• the successful renewable energy private investor

programme is due to be restarted

• companies are trading into Africa with considerable

success

• niche agricultural markets are booming with macadamia

nuts being the most successful. Wine and

grape exports to China also hold great potential.

• several provincial governments and investment

agencies are establishing trade relations and

study programmes with BRICS countries

• private education (at school and tertiary level) is

a boom sector

• new banking licences have been issued and several

more are in the pipeline

• new stock exchanges came on line in 2017 and

more are expected

• investment in infrastructure (especially ICT and

railways) is strong

• national government has committed to the

National Development Plan (NDP), a blueprint

for how to move the country forward. Part of that

plan entails setting up deliverable schemes, such

as the Strategic Integrated Projects.

Strategic Integrated Projects (SIPs)

The National Department of Economic Development

is responsible for economic planning. It has set

out a list of 18 major projects called the Strategic

Integrated Projects (SIPs) which are intended to spur

growth and development in a sector or geographical

area. The focus is spread across seven primary

concerns to be addressed: geographic focus (five

SIPs), spatial (three), energy (three), social infrastructure

(three), knowledge (two), regional integration

(one), water and sanitation (one).

They cover all nine provinces with an emphasis

on areas that need more investment, and focus on

economic and social infrastructure. The 18 projects

themselves contain many smaller plans and

projects, each with budgets and deadlines. These

projects are:

1. Unlocking the Northern Mineral Belt with

Waterberg as the catalyst

2. The Durban-Free State-Gauteng Logistics and

Industrial Corridor

3. South-eastern node and corridor development

4. Unlocking the economic opportunities in North

West Province

5. Saldanha-Northern Cape Development Corridor

6. Integrated Municipal Infrastructure Project

7. Integrated Urban Space and Public Transport

Programme

8. Green energy in support of the South African

economy

9. Electricity generation to support socio-economic

development

10. Electricity transmission and distribution for all

11. Agri-logistics and rural infrastructure

12. Revitalisation of public hospitals and other

health facilities

13. National school build programme

14. Higher education infrastructure

15. Expanding access to communication

technology

16. SKA and MeerKat (international radio astronomy

project)

17. Regional Integration for African cooperation and

development

18. Water and Sanitation Infrastructure Master Plan.

To illustrate how many projects are undertaken

in support of an SIP, there has been a lot of action to

support the overall goal of creating an integrated logistics

corridor between Durban and Johannesburg

(SIP 2). Projects within the SIP include:

SOUTH AFRICAN BUSINESS 2018

14


SPECIAL FEATURE

ZIMBABWE

NAMIBIA

BOTSWANA

Limpopo

0.9% (7.1%)

MOZAMBIQUE

North West

-3.6% (6.5%)

Gauteng

2.1%

(34.3%)

Mpumalanga

2.7%

(7.5%)

SWAZI-

LAND

Northern Cape

2.8% (2.1%)

Free State

1.8%

(5%)

LESOTHO

KwaZulu-

Natal

2.3%

(16.1%)

Western Cape

2.0% (13.6%)

Eastern Cape

1.0% (7.6%)

SA GDP: Percentage of growth per province (2014) and percentage contribution to national GDP (figures

in brackets).

SOURCE: STATS SA WWW.STATSSA.GOV.ZA

• a R2.3-billion container terminal at City Deep,

Johannesburg

• a R3.9-billion project to upgrade Pier 2 at the

Port of Durban

• R14.9-billion of rolling stock for the rail line

• R30.4-billion completion of the New Multi-

Product Pipeline by Transnet Pipelines

• official inauguration in 2017 of the Maluti-A-

Phofung Special Economic Zone (logistics

hub, fuel distribution depot, manufacturing) at

Harrismith in the Free State.

Geography

South Africa’s location between the Atlantic and

Indian oceans ensures a generally temperate climate.

The 2 954km coastline stretches from the border with

Namibia on the Atlantic to the border with Mozambique

in the east. The cold Benguela current sweeps along the

western coast while the warm Indian Ocean ensures

that the Mozambique/Agulhas current is temperate.

South Africa’s coastal plain is separated from the

interior by several mountain ranges, mostly notably the

Drakensberg which runs down the country’s eastern

flank. Smaller ranges in the south and west mark the

distinction between the fertile coastal strip and the dry

interior known as the Karoo.

The city of Johannesburg is located on the continental

divide, whereby water runs south of the city

towards the Atlantic Ocean while waters to the north

drain towards the north and east. Johannesburg is

1 753m above sea level.

Most of the country has summer rainfall but the

Western Cape, which has a Mediterranean climate,

receives its rain in winter. Droughts are not uncommon

and although the national average is 464mm,

most of the country receives less than 500mm of rain

every year. The Western Cape is currently experiencing

a severe drought.

15 SOUTH AFRICAN BUSINESS 2018


SPECIAL FEATURE

The Orange and Vaal rivers play important roles in

water schemes and irrigation and the Limpopo River

defines the country’s northern boundary. A number

of rivers run strongly from the Drakensberg to the sea

but South Africa has no navigable rivers.

Maize is produced in large quantities in the interior.

The dry interior mostly supports livestock in the

form of sheep and cattle. South Africa is the world

leader in mohair production. Wines and fruit are specialities

of the Western Cape while KwaZulu-Natal

and the low-lying areas of Mpumalanga are known

for sugar cane and tropical and subtropical fruits.

Limpopo is a major vegetable producer.

History

One of South Africa’s premier museums and tourist

attractions is known as the Cradle of Humankind,

pointing to the fact that what is now South Africa

has been home to the human species for thousands

of years.

Each of the country’s nine provinces presents

its official documents in the relevant regional languages

so the Western Cape, for example, presents

material in Xhosa, Afrikaans and English. The most

widely spoken languages are Zulu and Xhosa. Other

languages, in order of the number of people who

speak the language as a home language, are Pedi,

English, Setswana, Sotho, Tsonga, Swati, Tshivenda

and Ndebele.

Historically, the Nguni-speaking people (Zulu,

Xhosa, Swazi and Ndebele) settled along South

Africa’s east coast (and what is now Swaziland) while

Venda and Tsonga people made their homes south

of the Limpopo River. The Mapungubwe cultural

landscape, a UNESCO World Heritage Site, in northern

Limpopo Province illustrates a highly sophisticated

kingdom that flourished between 900 and

1300AD. The central regions of South Africa (and

Lesotho) were populated by Sotho and Tswana.

The Cape was colonised first by the Dutch, by

the Batavian Republic and by the British. Prolonged

British rule began in 1806. By the late 19th century

there were four territories in what is now South Africa:

two British colonies (Cape Colony and Natal) and two

independent Boer republics. The Anglo-Boer War was

fought between 1899 and 1901 and ultimately led

to the creation of the Union of South Africa in 1910,

uniting the four territories but ignoring the wishes of

the black population. South Africa became a republic

in 1960 and severed ties with Britain soon afterwards.

After Nelson Mandela was released and a series of

negotiating conferences were held, South Africa held

its first democratic elections in 1994. South Africa reentered

the Commonwealth after 1994.

PROVINCE CAPITAL PREMIER POPULATION AREA GRP BILLION RAND

Eastern Cape Bhisho

Phumulo

Masualle

6 916 200 168 966km 2 R289.9

Free State Bloemfontein

Elias Sekgobelo

"Ace" Magashule

2 817 900 129 825km 2 R189.1

Gauteng Johannesburg David Makhura 13 400 000 18 178km 2 R1 305.6

KwaZulu-

Natal

Pietermaritzburg Willies Mchunu 11 919 100 94 361km 2 R610.1

Limpopo Polokwane

Stanley

Mathabatha

5 800 000 125 754km 2 R271.5

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

North West Mahikeng

Supra

Mahumapelo

3 707 000 104 882km 2 R249.5

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

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

Snapshot of South Africa’s provinces

SOURCE: STATSSA, 2016.

SOUTH AFRICAN BUSINESS 2018

16


FACT FILE: REPUBLIC OF SOUTH AFRICA

President: Jacob Zuma (African National

Congress)

Capitals: Pretoria/Tshwane (administrative,

seat of government), Cape Town (legislative),

Bloemfontein (judicial).

Provinces and provincial capitals: Western Cape

(Cape Town), Eastern Cape (Bhisho), KwaZulu-

Natal (Pietermaritzburg), Mpumalanga

(Nelspruit), Limpopo (Polokwane), Gauteng

(Johannesburg), North West (Mafikeng),

Northern Cape (Kimberley), Free State

(Bloemfontein).

Time: GMT+2

Population: 55.91-million (2016)

Population under 15 years: 30%

Population over 60 years: 8%

Life expectancy: 65.1 (female); 59.7 (male)

Size: 1 220 813km²

Major languages: South Africa has 11 official

languages but the main language of government

and business is English. Zulu, Xhosa and

Afrikaans are widely spoken.

Religion: There is no state religion. The majority

of the population are Christian but many other

religions are followed such as Islam, Jewish and

Hindu.

Currency: The rand (100 cents). R13.48 = $1

(October 2017)

Political system: South Africa is a republic with

an executive president who is appointed by the

political party that wins the majority of votes in

parliamentary elections. There are three tiers

of government: national, provincial and municipal

but the revenue raising capacity of the

latter two spheres is limited. Allocations for

health and education for example, are made

by national government and then administrated

by provinces. Eight of South Africa’s nine

provinces are run by premiers from the African

National Congress; the Western Cape is administered

by the Democratic Alliance. In 2016,

municipal elections saw the DA come to power

in some of South Africa’s biggest cities, supported

by other parties such as the Congress

of the People and the United Democratic Front.

SPECIAL FEATURE

Legal system: South Africa is a constitutional

state with separation of powers between the

legal and executive authorities. All laws must

pass muster with the Constitutional Court which

is the ultimate court of appeal on legislation.

South Africa’s legal system is based on Roman

Dutch law.

Infrastructure: Ports of Cape Town, Saldanha,

Mossel Bay, Port Elizabeth, Ngqura East London,

Durban and Richards’ Bay. International airports

at Cape Town, Johannesburg and Durban and

domestic airports at all major cities. South

Africa has 34 000km of railway track and half

of the country’s road network is paved. Most of

South Africa’s power is generated by coal-fired

power stations run by the state utility Eskom.

A vigorous programme to encourage private investment

into renewable energy began in 2012.

Resouces: Platinum, gold, iron ore, chromium,

vanadium, manganese, alumino-silicates, coal,

copper, diamonds, uranium, zirconium.

GDP: R3 055-billion (2015)

GDP growth: 0.5% (2016), projected 1.3% (2017)

(SA Treasury)

Exports: Precious and semi-precious stones,

mineral products, base metals, vehicles,

machinery, chemical products, vegetable products,

fruits, foodstuffs and beverages, paper

and pulp.

Main export markets: China, USA, Japan,

Germany, UK, India.

Imports: Machinery, mineral products, vehicles,

chemicals, original equipment, base metals,

plastics and rubber, textiles, optical and medical,

foodstuffs and beverages.

Main import markets: China, Germany, USA,

Japan, Saudi Arabia, Iran, UK, India, France,

Nigeria.

17 SOUTH AFRICAN BUSINESS 2018


MESSAGE

City of Ekurhuleni

Message from the Executive Mayor Councillor Mzwandile Masina.

In May 2016, our council embarked on a journey of social transformation,

to ensure that our residents see improved and impactful service

delivery, with accelerated access to a constant provision of quality

services. This commitment includes a focus on economic development

and increased investment.

A KEY POINT OF CONNECTIVITY

AND INDUSTRY

Councillor Mzwandile Masina

Priorities

Immediate and clear priorities include security of water and energy

supply; completion of transport infrastructure and launch of the much

anticipated bus rapid transit system – Harambee; rollout of Wi-Fi;

unleashing of strategic land parcels for development; and implementation

of our 10-point economic plan. The economic plan is a comprehensive

programme of economic growth and development, intended

to create jobs and attract investment into the city. The Aerotropolis

development is one of the key points in this economic plan.

Our city is named to

reflect the aspirations

of our residents

as a place of peace. In

this spirit, we welcome you to the

City of Ekurhuleni. Ekurhuleni is a

major hub that connects South

Africa to the world, and serves

as a key point of connectivity

and industry for the country and

continent.

Building a pact

This term of office is one in which we will focus on building a humane

pact between the city and its citizens, in which the aspirations of our

people, regardless of their current circumstances, can be given a fair

opportunity for progress. The City of Ekurhuleni can’t attain these

ambitious goals without the support of all of our stakeholders. In turn,

we commit ourselves to deliver on our mandate, efficiently, effectively

and in a way which improves the city and the state of its people.

In conclusion, let me reiterate our commitment to working

with all of our stakeholders, in growing and developing our city,

so that we can ensure increased equality and prosperity for all of

our residents.

SOUTH AFRICAN BUSINESS 2018

18


City of Ekurhuleni

Africa’s first Aerotroplis holds great promise.

PROFILE

A new identity for the City of Ekurhuleni is being

forged out of the towns and urban nodes surrounding

Africa’s biggest and busiest airport, OR Tambo

International Airport. The airport is the epicentre of

Africa’s first Aerotropolis, which will set it apart from

any other South African city and turbocharge the

regional economy.

The city has prime residential estates, glitzy entertainment

venues, mega shopping malls, lively townships,

historical villages, good schools, recreational

facilities and wide open spaces.

Ekurhuleni is a digital city and is investing in digital

infrastructure that will streamline the way it delivers

services to the community, including smart grids,

payment gateways, e-learning and e-health systems,

and closed-circuit TV to improve safety and security.

Ekurhuleni has long been known as the manufacturing

hub of the country and it is building on this

history to create a smart city that will underpin the

new economic growth trajectory. The city boasts a

world-class transport network, telecommunications

and energy grid, a youthful citizenry and a strong

financial position. Its connectivity across rail, road

and air is significant. The Gillooly’s interchange is the

busiest in the southern hemisphere, and Germiston

railway hub is one of the busiest on the continent.

The city is being developed through a series of

strategic mixed-used urban developments and

transformational projects like the GreenReef Megaproject,

S&J Industrial Estate, Glen Gory, Leeuwpoort

Housing Development, TwentyOne Industrial Park,

Carnival Junction, Lordsview Industrial Park and the

Riverfields R21 development, taking shape along the

R21 Albertina Sisulu Highway which links Ekurhuleni

to Pretoria. And the city has the infrastructure to

support investments like Prasa-Gibela, which will

see the building and maintenance of 600 new trains

for South Africa’s rail commuter network over the

next two decades. Other public-sector strategic

developments which promise to bring economic

development include the Tambo Springs inland port

and the OR Tambo Airport cargo terminal expansion.

Come LIVE PLAY INVEST

in Ekurhuleni, the Aerotropolis City.

The rebirth of Ekurhuleni is not just a dream. Several

companies have taken up residence in their new

premises and a significant logistics corridor has

mushroomed along the R21 highway. Designed

to strengthen the logistics, aviation and transport

sector, key projects are laying the groundwork for

19 SOUTH AFRICAN BUSINESS 2018


PROFILE

a powerful distribution centre and logistics node,

including Blue Sky Logistics, Jonsson Workwear, Fast

Freight, DB Schenker, Würth and DHL Supply Chain.

Additional strategic land for industry is due to be

released for development.

One of the ways in which planners will promote

competitiveness is to create an environment that

will allow disruptive innovation through technology.

One such project is the Alternative and Renewable

Energy strategy which will limit the City’s dependence

on the national grid. Ekurhuleni hopes to derive

about 10% of overall electricity supply from renewable

energy by 2021.

Over and above this there are also six mega housing

projects that are being planned across the

City over the next five years. Mega human settlements

are housing projects of 100,000 units

or more. They offer various types of housing

from fully subsidised, gap housing, social housing

and bonded units. These settlements help

the city to transform its disparate urban special

patterns, increase access to socio economic opportunities

and encourage social cohesion. These

developments offer significant opportunities for

investors across the full value chain including land

acquisition, supply of goods and services, as well

as actual implementation.

SOUTH AFRICAN BUSINESS 2018

20


Another exciting project is the redevelopment of

Germiston into an administrative headquarters for

the city, with other precincts following a similar

path. The Kempton Park-to-Germiston corridor

aims to develop a new urban core and central

business district for a metro that was formed out

of nine small towns, each with its own business

district. The precinct comprises 10 major projects

which are mostly owned by the city – the court

is owned by national government and one is privately

owned. Projects include a new administration

building, hotel and conference centre, knowledge

centre and magistrates square. Partnership

between the public and private sector will be

important in enabling these developments.

With this initiative and others like it, city planners

are expanding the horizon that will see Ekurhuleni

blossom into a prosperous region for all its citizens.

PROFILE

Investment facilitation

The city has an Investment and Development

Facilitation Strategic Policy Framework, which has

been developed to improve turnaround times in

facilitating and decision-making on investment and

development applications, thus improving the city’s

investment-friendly environment.

The city boasts a business and investment onestop-shop

established within the city’s Aerotropolis

core. The Ekurhuleni Business Facilitation Network is

situated in Kempton Park and houses the business

centre to support local enterprise development and

the investment centre (EIC).

The Ekurhuleni Investment Committee meets twice

a month to appraise and provide technical support

including pre-application support to mega investment

and development applications.

The EIC also provides aftercare to newly established

and existing businesses within the city. The centre

collaborates with various provincial and national

departments to provide unmatched facilitation of

investments and developments within the city and

support to local businesses.

CONTACT INFO

Ekurhuleni Investment Centre

Tel: +27 11 999 3516 / 20

Email: eic@ekurhuleni.gov.za

Website: www.ekurhuleni.gov.za

21 SOUTH AFRICAN BUSINESS 2018


Business expands into Africa

Manufacturing and services are targeted for export growth.

Shoprite is a household name for many South

Africans who buy their weekly groceries at

one of hundreds of outlets across the country,

but that is an experience which many

Africans living in other parts of the continent are sharing

more and more frequently, and in large numbers.

Retailers and bankers from South Africa have been

exploring opportunities north of the Limpopo River

for many years, and they have been followed by engineering

firms, consulting companies and, more

recently, automotive manufacturers. They key attraction

is the size of the market, and the potential of that

market to grow and to grow more sophisticated in its

tastes. Africa has a population of 1.2-billion.

South African and international hotel brands are

investing strongly in Africa. Tsogo Sun has hotels in

Zambia, Tanzania, Kenya, Nigeria and Mozambique.

Sun International operates in six countries outside

South Africa. Marriott International’s acquisition of

Protea Hotels has given it an expanded footprint in

Africa.

Hyatt Hotels & Resorts will double its presence in

Africa by 2020, with new investments in Cameroon,

Senegal and Algeria, to go with its existing hotels

in Morocco and Tanzania. The group is eyeing

East Africa, citing increased infrastructure spending

there as a reason to consider investing.

While South Africa is still seen as a good staging

post for international firms to base their Africa strategies,

some industries have refined that process. In

the automotive industry, for example, head offices

in Europe and the US have mandated their South

African operations to lead the drive into Africa.

According to the CEO of Sanlam Africa

Investments, St John Bungey, the subtleties of investing

in Africa should be respected. The growth

path and the demographics are solid reasons to

invest in Africa but specific strategies are needed.

He notes three key ingredients: respect for local

knowledge, understanding the local environment

and partnering with the right local people

(Sunday Times).

SOUTH AFRICAN BUSINESS 2018

22


SPECIAL FEATURE

Fully 30% of South Africa’s

exports are to other countries in

Africa, but a massive 83% of this

volume is into Southern Africa.

This means that the potential

for South Africa to grow its exports

into other parts of Africa is

enormous.

The Export Credit Insurance

Corporation of South Africa

(ECIC) exists to help trade and

investment across borders. ECIC

provides insurance for bank loans

that are taken by investors and

South Africans can get insurance

for investments, and for small and

medium enterprises there is a

product available (performance

bonds) to anyone exporting

capital goods and services.

The South African Department

of Trade and Industry (dti) plays a

key role in promoting trade between

South Africa and the rest

of Africa. South African exporters

can enroll in the dti’s training

programme, Global Export Passport Programme

(GEPP). The dti wants to expand South African exports

in manufacturing (which it wants to double

in 10 years) and services (40% of the export basket

by 2030).

The Integrated National Export Strategy (INES)

is managed by a unit called Trade and Investment

South Africa (Tisa), which is targeting emerging

markets, including the BRIC states (Brazil, Russia,

India and China).

Connecting

Intra-African trade currently stands at 16% of trade

volumes. This is in contrast to the continent of

Europe, where 60% of all trade is conducted among

European nations, and in Asia, where the figure

is 40%.

Border delays, tariffs and infrastructure are the

biggest barriers to expanding this trade. Shoprite

spends about R20 000 per week in permits, and long

waits at border posts are routine. The revamped

Chirundu one-stop border post in Zambia has

reduced transit times by a third.

There are plans to create a Tripartite Free Trade

Area covering three regional groupings across

26 countries. Extending from South Africa in the

south to Uganda and Kenya in the north, the proposed

free trade area would encompass more

than 620-million consumers in three regional

organisations: the Southern African Development

Community (SADC), the Common Market for East

and Southern Africa (Comesa) and the East African

Community (EAC).

The Sustainable Development Investment

Partnership (SDIP) comprises 30 institutions and

aims to fund 16 African infrastructure projects, valued

at more than $20-billion. The founders of the

SDIP were the World Economic Forum (WEF) and

the Organisation for Economic Co-operation and

Development (OECD).

China has pledged to support the rehabilitation

of the railway line between Zambia and Tanzania

while the Industrial and Commercial Bank of China

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

Railway upgrades will probably reap the quickest

rewards in the push to promote intra-African

trade. Fully 70% of the freight that arrives in South

Africa is delivered by road: this is both a problem

and an opportunity. One of the companies

eyeing that opportunity is South African rail operator

Sheltam Group. It has created a rail track

infrastructure funding vehicle with a dedicated

African mandate.

The Development Bank of Southern Africa and

Transnet have developed a financing scheme for

selected buyers of rail rolling stock and port equipment.

Transnet is already very active in African

countries north of the South African border.

This is part of Transnet’s Market Demand Strategy

(MDS), which aims to sell it products and services

around the world. Transnet Engineering’s Trans-

Africa Locomotive (for branch lines and shunting

yards) is being marketed to other African countries

and mining companies. Transnet Engineering plans

is establishing Maintenance Repair and Operations

centres in four African countries.

23 SOUTH AFRICAN BUSINESS 2018


SPECIAL FEATURE

Automotive opportunities in Africa

The African Association of Automotive Manufacturers chairperson Thomas Schaefer (CEO

of Volkswagen SA) explains why new African markets are vital for growth.

What are the primary goals of the AAAM?

The AAAM was founded with a strategic view

regarding all South African original equipment

manufacturers (OEMs), namely, that Africa is super

important for our future. We need Africa so that

South Africa can thrive. The AAAM is for the industry

to say how can we work with Nigeria or Kenya for

the good of both countries.

Is the intention to set up full-scale plants

of SA OEMs or to create independent

industries?

In Kenya at the moment there is no passenger car

manufacturing other than what we have started.

There is some truck manufacturing but nothing

else, so you have to start slowly. This entails starting

with semi-knock-down assembly, then medium

knock-down, and finally full-scale construction. It

is dependent on the annual volume you produce.

Indonesia and other countries in the world have

gone through this development phase. To build

up a body shop with welding and all the logistics,

you can only do that beyond production of 20 000

or 30 000 cars per year.

What is current Volkswagen operation in

Kenya?

We are planning on a thousand Polo vehicles per

year for now, but at the moment it is a little slow

because of the political aspects.

Do you have something in Nigeria?

In Nigeria we have had an operation since 2014; however,

it was dormant until recently due to the oil and

SOUTH AFRICAN BUSINESS 2018

24


SPECIAL FEATURE

forex issues. It’s getting invigorated

and we have had good meetings

with the Nigerian and South

African governments. They are

serious about curbing used car

sales – that is the drag that keeps

them off the new car market, the

used cars getting dumped.

What other markets is

Volkswagen targeting?

We are focusing on the East

African market, in countries like

Rwanda and Tanzania. Ethiopia is very promising

but their massive dam for the Nile is where they are

spending all their forex at the moment.

Are all South Africa’s OEMs looking north?

All OEMs operating in South Africa have now received

the guardianship of Africa from head office.

They are probably continuously looking up north

to see opportunities. We are not all looking at the

same countries: Ford is looking at Angola and Nissan

is looking at Nigeria.

Is the Department of Trade and Industry

(dti) encouraging an African focus?

The OEMs’ focus on Africa aligns well with the

dti’s review of the Automotive Production and

Development Programme (APDP) – the new APDP

is about regional trade, and that is the most important

aspect for the South Africa OEM industry.

If we don’t get the regional trade and regional

industry right then it’s going to be difficult in the

future. Labour and logistics costs are high but with

regional trade we could offset most of it. We are

pushing the dti for better incentives to help us to

open those markets.

Is Africa the key?

If production stays far below a million cars production

per year, we will never be profitable or

sustainable, so Africa could be the key? When you

look at the number of cars per thousand inhabitants

in most African countries there is opportunity in

places like Kenya and Nigeria. If you take away the

used car drag, there’s no reason why their market

could not grow. If Kenya came to a level like South

Africa they could achieve a market of five or six

hundred thousand.

So you are positive about the future?

Nobody else can do it better than from Africa for

Africa. Although it is a South African initiative, it

needs to be an African initiative. It must benefit the

other countries as well. We are working to refocus

the AAAM to make this a significant organisation that

will bring the auto industry further in Africa. It takes

determination to create an auto industry. If you focus

on it, it will come – there is a real opportunity.

25 SOUTH AFRICAN BUSINESS 2018


FOCUS

Export Credit Insurance

Corporation of South Africa

Celebratng 15 years of Success

Proudly supporting South African exporters and investors.

The Export Credit Insurance Corporation of South Africa (ECIC)

was established 16 years ago, in July 2001, when it was given

the mandate of filling a market gap through the provision of

medium to long-term export credit and investment guarantees

by underwriting bank loans for political and commercial risk insurance

cover, on behalf of the South African government.

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

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

export credit agency, hence the formation of the ECIC. Acting as a

catalyst for private investment, the ECIC steps in where commercial

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

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

an independent limited liability company, but with the government

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

Export Credit and Foreign Investments Insurance Act of 1957.

The ECIC has recently developed new products including lines of

credit, lease and return of plant equipment. It also continues to be

a catalyst for increased lending capacity by financial institutions by

entering agreements with other export credit agencies (ECAs). In this

way, it creates a framework for both re- and co-insurance. To this end,

it has adopted a comprehensive plan of action aimed at actualising cooperation

programmes for mutual benefit in conjunction with, among

others, BRICS ECAs, Afreximbank

and African Trade Insurance.

Most African markets are considered

as uncharted territories

with challenging business environments.

Thus, the business

strategies foreign investors apply

elsewhere in the world cannot be

used in the continent.

Access to competitively

priced export credit creates the

ability for local contractors to

bulk up and compete more effectively

in foreign markets.

With the ECIC in support of

such transactions, the South

African export market is enabled

and contractors are becoming

more credible.

This has a far-reaching impact

on fostering a stronger economy

and drives domestic job creation,

contributions to fixed capital formation

and the GDP, as well as

the generation of fiscal revenue.

The ECIC is committed to

sustainable business through

innovative solutions, operational

and service excellence,

business development and strategic

partnerships. In enabling

frontier markets to optimise production,

the ECIC is effectively

motivating a positive socioeconomic

impact.

SOUTH AFRICAN BUSINESS 2018

26


SPECIAL FEATURE

Invest in the

Kingdom of Lesotho

The Lesotho National Development Corporation has attractive projects in several areas.

Lesotho is richly endowed in mineral resources

such as diamonds and has abundant water

reserves. Lesotho is branded as “The Kingdom

in the Sky” owing to its beautiful sceneries

especially in winter when it has snowed or in spring

when the alpine flora of Lesotho blossom.

Lesotho is a high-altitude country, landlocked by

the Republic of South Africa and criss-crossed by

a network of rivers and mountain ranges. Lesotho

covers an area of 30 355 square kilometres and has a

population of just over two-million. The vast majority

of the population is Basotho (Lesotho natives) with

a small group of Europeans and Asians. The official

languages of Lesotho are English and Sesotho. The

country’s GDP growth rate in 2016 is estimated at 3.1%.

The country is actively seeking new investments

into a wide variety of sectors to boost the economy

and provide employment for its people.

The Lesotho National Development Corporation

(LNDC) is the main parastatal of the Government

of Lesotho charged with the implementation of

the country’s trade and industrial development

policies.

The role of the Corporation is to promote Lesotho

as an attractive investment location for both foreign

and indigenous investors. The LNDC is the first point

of contact for investors who intend to set up projects

in the manufacturing and processing industries

in Lesotho. In 2016, the LNDC received a best

IPA (Investment Promotion Agency) Award from

UNCTAD (United Nations Conference on Trade and

Development) at the 14th UNCTAD Conference.

Lesotho has progressed in moving from a predominantly

subsistence-oriented economy to an economy

exporting natural resources (diamonds and water)

and manufactured goods (excelling in textiles and

apparel). This has been driven by the country’s dutyfree

quota-free market access to major international

markets and an improving investment climate.

Priority sectors for investment include:

• Agriculture and agri-processing

• Manufacturing

• Renewable energy

• Infrastructure and construction

• Services

• Tourism

Selected projects

Agri-processing

Basotho Fruit and Vegetable Canners is a manufacturing

company that processes raw materials to produce

consumer products, canned baked beans, organic

peaches and asparagus, fruit juice and tomatoes. It

was operating as an export-oriented company with

success in exporting its products to South Africa and

other international markets (EU). The existing plant

is currently not in operation. A joint venture investment

partner is sought to operate Basotho Canners

on a management contract basis. The objective is to

resuscitate and expand the current facilities.

• Project size/cost: US$30-million

• Proposed procurement process: Joint Venture –

Management Contract

• Financing status, amount and structure

required: US$30-million in equity

• Government guarantee or involvement: Policy

sponsorship, land allocation, infrastructure, energy

and water supply, visa facilitation for scarce skills.

Manufacturing and hospitality

Makeka Mollometsi is a multi-pronged business

concern, geared towards the large-scale quality

SOUTH AFRICAN BUSINESS 2018

28


SPECIAL FEATURE

beneficiation of aloe and agave lifestyle products. An

investor is sought to inject capital to develop the world’s

highest altitude eco-distillery for the production of spirits

from agave.

Mollometsi (mollo – fire; metsi – water) is an alcoholic

beverage product. Historical and modern techniques

are used to produce and bottle a range of

premium and entry-level “Firewaters” from the agave

plant. The core business will be a Lesotho-based bottling

and distillation plant and packaging, distribution

and sales of Mollometsi.

The business is also looking to establish a fourstar

boutique hotel at a demonstration farm in Botha

Bothe, which will also have a spa and mud baths;

conferencing facility for groups of up to 100 people;

a restaurant and spirit bar for tasting and sales; a

chapel; staff housing; a library and the potential of a

nine-hole golf course. The tourism success of nearby

AfriSki Mountain Resort provides a basis for good

occupancy rates.

• Project size/cost: US$25-million

• Proposed procurement process: Joint Venture –

Management Contract

• Financing status, amount and structure

required: US$25-million in equity

• Government guarantee or involvement: Policy

sponsorship, land allocation, infrastructure, energy

and water supply, visa facilitation for scarce skills.

ICT services

The establishment of a Lesotho Call Centre: call centre

outsourcing is a big business opportunity for developing

countries with a qualified workforce and high

unemployment rates. A country like India has proven

this point. Hosting call centres for foreign organisations

creates job opportunities and grows the economy.

• Project size/cost: Unknown

• Proposed procurement process: Joint Venture –

Technical Partner

• Financing status, amount and structure

required: Equity

• Government guarantee or involvement: Policy

sponsorship, visa facilitation for scarce skills.

Infrastructure: ICT

National Broadband Network (NBN) Initiative:

for the establishment of the Lesotho Shared

Telecommunications Infrastructure Company, a

telecommunications infrastructure investor – a

strategic partner – is sought to partner with the LNDC

(anchor investor) and the Lesotho Telecommunications

service providers. The scope of the NBN is to consolidate

available telecoms infrastructure, expand

the consolidated base and make it available on an

open-access, non-discriminatory and uniform pricing

basis to a large number of service providers. To

ensure international communication price efficiency,

it is proposed to consolidate multiple international

capacity links into the NBN. The NBN will also deploy

additional ICT infrastructure to stimulate bandwidth

demand in the form of an e-government program,,

inclusive of data centre and call centre infrastructure.

Capital required by the NBN will be raised against

the shareholder balance sheets as well as long term

off-take agreements for use of infrastructure by

existing operators.

• Project size/cost: US$150-million

• Proposed procurement process: Joint Venture –

Technical Partner

• Financing status, amount and structure

required: US$150-million in equity

• Government guarantee or involvement: Policy

sponsorship, visa facilitation for scarce skills.

CONTACT INFO

Lesotho National Development Corporation

Address: Development House, P Bag A96,

Kingsway Road, Maseru 100

Contact person: Marina Bizabani, Foreign

Investment Manager

Tel: +266 22 312012

Email: bizabani@lndc.org.ls or ip@lndc.org.ls

Website: www.lndc.org.ls

29 SOUTH AFRICAN BUSINESS 2018


Sustainability is a

new priority for business

The circular economy, renewable energy and energy efficiency are creating new industries.

In June 2017 the Jeppe Park Primary School in

Johannesburg became the 250th building to receive

a green building certificate from the Green Building

Council South Africa. In the process, it became the first

school building in Africa to receive such a certificate.

The combined effect of the 250 buildings being

built in a sustainable way will lead to annual savings of

450-million kilograms of CO2, 350-million litres of water

and 380-million kilowatt hours of energy.

Awareness of sustainability has grown exponentially

in the last few years and every sector is trying to

become greener, cleaner and more efficient. Buildings

are massive consumers of energy and so it is fitting

that they have been targeted for savings, or energyefficiency

drives.

But paying attention to sustainability in every sector

in the economy makes good sense, both economically

and for the health of the planet and its inhabitants.

The idea of the circular economy is taking hold: rather

than using resources and simply throwing them away,

thought is given to the source of energy (renewable

rather than finite), the efficiency of the production

process (reducing leaks and getting optimal use of

resources) and recycling or reusing materials (rather

than dumping them).

Organisations such as the National Cleaner

Production Centre (NCPC-SA) encourages “Industrial

Symbiosis”, the use of unused or left-over resources

by one company after another company has used

them. The material itself could be material, energy,

water or waste. The last three are at the core of the

sustainability debate.

GreenCape puts the value of South Africa’s waste

economy at R15-billion but suggests that another

R17-billion could be unlocked if all of a specified 13

waste cycles were recycled (Waste Economy Market

Intelligence Report).

Household waste is managed by municipalities or

companies contracted to municipalities. Only 10% of

South Africa’s waste is currently recycled and the waste

industry is dominated by collection and landfilling. A

national goal is to double that percentage by 2019 but

finding alternatives could be an expensive process.

GreenCape suggests that there are several business

opportunities for the private sector in these

sectors: recyclables (plastics), organics, e-waste, and

construction and demolition waste.

The Southern African Energy Efficiency

Confederation (SAEEC) website refers to the areas it

covers, and listing them illustrates the scope of the

field: energy engineering and energy management,

renewable and alternative energy, power generation,

energy services, sustainability, and all related areas.

South Africa’s moves towards sustainability are

happening in a global context that includes the adoption

in 2015 of the United Nation’s 17 Sustainable

Development Goals. The Paris Agreement on climate

change in 2016 is providing further stimulus on the

road to reduced carbon emissions and reduced

reliance on fossil fuels.

These agreements set out to protect the planet

from destruction, but they also represent an opportunity

to create new markets: wind, solar, biogass, fuel

efficiency, improved roofing and window sealant

materials – the list is long.

Practical steps

South Africa embarked on an ambitious programme

to promote renewable energy with its

Renewable Energy Independent Power Producers

Procurement Programme (REIPPPP). Between 2012

and 2016 it generated nearly R20-billion in actual or

SOUTH AFRICAN BUSINESS 2018

30


SPECIAL FEATURE

committed investments into mostly solar and wind

power. The programme stalled when energy utility

Eskom baulked at paying for power it said it didn’t

need but the programme will restart in late 2017.

Nobody does renewable energy more enthusiastically

than Denmark and South Africa has entered

into multiple agreements with the northern European

country. Denmark is the world leader in wind power

and a trend-setter in energy-efficiency building codes.

According to the Danish Energy Association, the

best instruments to achieve energy efficiency are

building standards, equipment standards, obligation

schemes for energy utilities, energy audits and tax

rebates, and taxation. Architects and builders often

get ahead of targets: in 2013, 30% of all new floorspace

in Denmark was built to 2015 standards. In terms of

energy per square metre, if the country continues to

meet its targets, it will soon be at 6% of the norm in the

1970s. When a Danish building is finished, an energy

audit is done before it can be used.

The Energy Efficiency Directorate in the South

African Department of Energy aims to optimise the

energy sector through efficient use, production and

consumption of energy resources. A Draft National

Energy Efficiency Strategy was published in December

2016.

Among the directorate’s collaborations is one with

Danish Energy Management and the International

Energy Agency (IEA). An advisor from the Danish

Energy Association has been seconded to South Africa

as part of an inter-governmental energy partnership.

The Danes have created an export industry out of

their expertise in energy: in 2015 it was worth about

R140-billion and they want to expand it to “at least”

R280-billion by 2030.

GreenCape’s report on South Africa’s waste market

includes some references to broader economic opportunities

in the sustainable economy. Some examples:

Agriculture: solar-powered irrigation (SA market,

R2.9-billion)

Energy services: energy efficiency retrofitting; solar

PV systems; local manufacturing

Utility-scale renewable energy: independent power

production; rest of Africa; local manufacturing

Waste: private-public partnerships, construction

and demolition waste; growing reuse and

recycle market

Secondary materials: growing market for plastics,

metals and e-waste

Water: industrial water reuse; recycling and

resource recovery

Food value retention: better cold chain management

and waste reduction; solar thermal (in agri-processing,

the SA market potential is R3.7-billion); biogas.

TRANSITIONING INDUSTRY TO

A LOW CARBON ECONOMY

The Century City

Conference Centre in Cape

Town was host to more

than 400 delegates from

industry, business and

government who gathered

in September 2017 to discuss how to make

industry and commerce cleaner, greener and

more resource efficient.

The biennial Industrial Efficiency Conference

of the National Cleaner Production Centre

South Africa (NCPC-SA) had as its theme,

“Transitioning industry to a low carbon economy”

and offered workshops, presentations

and panel discussions on a range of resource

efficient and cleaner production (RECP)

methodologies.

The two-day programme offered information

on better use of energy, water, materials and

waste, as well as analysis of legislation and

policy that may affect business operations.

The presentation of successful case studies

formed an integral part of the conference.

The NCPC-SA is a national programme, funded

by the National Department of Trade and

Industry and hosted by the Council for Scientific

and Industrial Research (CSIR). It exists to support

industrial companies to reduce their environmental

impact through the use of RECP.

The biennial conference is offered as one

of these support mechanisms, which is why

there is no cost for attendance. Both days included

a non-commercial exhibition, allowing

delegates to interact with government and

industry programmes that may be of assistance.

SOUTH AFRICAN BUSINESS 2018

32


Protecting roofs and

stopping leaks

worldwide since 1958

PROFILE

Topps Products delivers sustainable, commercial roof and industrial roof

maintenance solutions.

Our roof coatings and roof sealants have been

protecting and sealing roofs, stopping roof leaks and

extending roof life for decades.

The Topps® company roots in this business – which

date back to 1958 – are based upon a simple concept:

product selection for your roofing needs is as

important as the company that installs it. Our roof

coating systems work together to restore, protect and

enhance the energy efficiency of commercial and

industrial buildings. These systems always include a

versatile group of surface preparation, reinforcement,

roof repair and roof coating products which all work

together to improve the performance of your roof.

Providing effective roofing solutions to contractors,

building owners and facility managers – and supporting

our full line of roof coating and roof repair products

with a dedicated support team – is our top priority.

SUPPORT TEAM

At Topps, our support team works closely with you to

ensure the project goes smoothly. Our support team

is experienced in the roofing industry and can provide

you with what you need to get the job done right.

Our roofing products are second to none, exceeding

industry standards and standing up in the harshest

of climates.

Nothing can be more important to your project’s

success than the confidence that comes

with quality roofing products, combined with the

reliability of both local installers and the manufacturer’s

resources working together.

PolyCore embedded

into Polyprene

around vent.

Fits in and forms

around vent.

At Topps, our production management team oversees

the purchase of all raw materials and the production

for every litre of roofing product produced

for you. Our business development division assists

and helps train roofing contractors with certification

seminars and on-site training worldwide.

We pride ourselves on our attention to customer

service. Strict product production guidelines involving

our own people together with local certified

independent installers helps ensure results.

Because Topps® products are used in virtually every

climate of the world, including Antarctica and others

typically referred to as the graveyard of protective

coatings, Topps® likely has the best option to serve

you. Let our staff and trained independent installers

assist you.

CONTACT INFO

Tel: 087 813 0349

Email: admin@toppsproductssa.co.za

Website: www.toppsproductssa.co.za

33

SOUTH AFRICAN BUSINESS 2018


Skills development

Job-relevant training is key to economic growth.

Twenty-two South Africans headed to

Abu Dhabi in October 2017 for the

WorldSkills International competition. The

South Africans were selected from 20 skills

areas which forms part of the WorldSkills South

Africa project and The Decade of the Artisan campaign,

both supported by the National Department

of Higher Education and Training (DHET).

Participation in the WorldSkills International

(WSI) competition showcases talented young

South Africans, but also highlights the need to

get young people enthused by the idea of becoming

artisans and technicians. The National

Development Plan (NDP) envisages South Africa

producing 30 000 artisans per year by the year

2030. The current figure is about 13 000 per year.

WSI participants from South Africa included

skilled young people in the fields of water technology,

mechatronics, IT networks, graphic design,

plumbing and heating, welding, bricklaying, cooking,

refrigeration, spray painting, hairdressing and

mobile robotics.

South Africa has one engineer to every 3 166

citizens, compared to Malaysia where the figure is

543 citizens per engineer. The Skills Development

Amendment Act is intended to improve the situation,

and not only in engineering. Several institutions

have been created to help guide policy

in skills and training, and to guide the actions of

training institutions.

Sector Education and Training Authorities (SETAs)

collect dues from companies in a particular industry

(Wholesale and Retail, Banking, Construction,

Chemical Industries, for example) to promote training

in that industry. A percentage of this money is

returned to the company if that company can show

that they have a workplace training plan. The rest of

the money is used by the SETA to offer skills training.

In the Eastern Cape the Manufacturing,

Engineering and Related Services Authority

SOUTH AFRICAN BUSINESS 2018

34


SPECIAL FEATURE

(MerSETA) plays an important

role in supporting skills

development in the automotive

and automotive parts

sector. The authority is involved

in the National Tooling

Initiative and artisan training,

especially with regard to creating

a skilled workforce for the

Coega Industrial Development

Zone. MerSETA helped establish

the Centre of Excellence

for Welding at the Eastcape

Midlands TVET College in

Uitenhage.

A national programme

of the Local Government

SETA (LGSETA) offers learnerships

in auditing to municipal

employees.

The National Skills Authority

(NSA) works with SETAs in

carrying out the National

Skills Development Strategy

(NSDS). The Human Resource

Development Council of South

Africa (HRDCSA) is an over-arching

body that aims to give guidance to the many

institutions working on skills development and

training. It is managed by the DHET.

A key element in delivering skills training are

Technical and Vocational Education and Training

(TVET) colleges, which are tasked with bridging the

skills gap in South Africa. TVET colleges are concentrating

on 13 trade areas, including bricklayers,

millwrights, boilermakers and riggers.

Large amounts of money are spent on basic

education at schools, but there has also been a

big increase in spending on TVET colleges, reflecting

the state’s concern to develop the skills

of the country’s workforce. R16.5-billion has been

allocated by national government to skills development

and infrastructure over the medium term.

The HRDCSA has identified five key areas

where the skills pipeline must be improved: access

to TVET colleges; intermediate skills (artisans

in particular) and professionals; production of

academics; collaboration between industry and

educational institutions in research and development;

worker education; foundational learning.

In KwaZulu-Natal, the Maritime School of

Excellence trains students for the Sharks Board,

Transnet Port Terminals (TPT), Transnet National

Ports Authority (TNPA) and for the wider field of

maritime and logistics employers. More than 250

students graduated in 2016 as cargo coordinators,

marine pilots, tug masters and operators of

lifting equipment.

The South African Maritime Safety Authority

(SAMSA) is investigating the feasibility of establishing

specialist maritime schools in South Africa’s

coastal provinces, including the Eastern Cape and

Western Cape.

Industry

Creative interventions from industry bodies such

as the Engineering Council of South Africa (ECSA)

are also creating new pathways for training. The

ECSA has started a programme whereby trainees

can earn certificates in specific disciplines

from a broader range of institutions. The qualifications

will be in line with the council’s Exit

Level outcomes.

Six of South Africa’s biggest construction companies

have established a R1.25-billion skills fund

which will be deployed to fund programmes that

will teach relevant skills.

The Jobs Fund (run by National Treasury)

supports several initiatives around the country.

Among them is a programme to put 135 unemployed

engineers to work, in partnership with the

Automotive Industry Development Centre Eastern

Cape (AIDC EC) and its members. Among the companies

supporting the programme are Lumotech,

Benteler, G.U.D Holdings and Johnson Contols.

In-house training is a vital component of the

sector. Training at Work is a consultancy that

specialises in offering exactly that: programmes

can be customised to suit the employer’s and the

employees’ needs. DaySeven Training is another

company that offers courses that include Business

Skills, Leadership and Workplace Readiness.

35 SOUTH AFRICAN BUSINESS 2018


SPECIAL FEATURE

Roof maintenance specialists Topps Group South

Africa has developed a detailed training module

where roofers and waterproofers can attain qualifications

while learning about the characteristics

of the products they will apply to roofing surfaces.

The programme is delivered by the company that

applies the roofing products after their staff have

been trained by Topps.

Volkswagen South Africa has several skills and

training programmes which include the Commercial

Trainee Programme, the Graduate Trainees, Further

Education Training and Wanderjahre programmes.

In the motor manufacturer’s home town of

Uitenhage, Volkswagen has five learning academies.

Open to employees and suppliers, the academies’

programmes are SETA-accredited. and offer a range

of courses available through workshops, exercises,

e-learning or on-the-job-training.

Higher education

With the inauguration of the Sol Plaatje University

(Northern Cape) and the University of Mpumalanga,

every province now has its own university, of which

there are 26 in all. The Sefako Makgatho Health

Sciences University has also opened in Gauteng.

There are three categories of university: universities

offering only degrees and post-graduate

courses with a strong research component, comprehensive

universities offering a mix of degrees

and diplomas and universities of technology, formerly

known as technikons. There are also 87 registered

and 27 provisionally registered private higher

education institutions.

Universities of technology have a specific focus on

educating young people in fields that will enhance

the country’s economic performance.

Some of the courses can be very demanding.

Among the new courses on offer at the Cape

Peninsula University of Technology (CPUT) are diplomas

in geomatics (one of South Africa’s most

sought-after skills to aid surveyors, town planners and

civil engineers), clothing and textile technology, and

horticulture and landscape architecture. CPUT also

offers a range of short courses, allowing employed

people the opportunity to get up to speed in an area

of specialisation or to understand new developments

in a particular field. Sometimes an employer will ask

CPUT to structure a course for a group of employees,

for example, in ICT. These courses do not earn candidates

diplomas, but may be used to gain credits.

Traditional universities are also aware of the need

to align their courses and research programmes with

the needs of the economy.

There are three World Health Organisation (WHO)

Collaborating Centres at UWC and the Centre of

Excellence in Food Security (with Pretoria University)

is funded by the National Research Foundation

and the Department of Science and Technology.

Biotechnology and food security come together

in the Plant Biotechnology Research group at UWC,

which studies ways of developing crops that can

resist drought.

This kind of focus on specific challenges facing

society in South Africa is an example of universities

working to make their research relevant.

The University of Cape Town is offering a course

in Health Innovation that encourages talented young

South Africans to find solutions to the country’s

health problems. Another UCT degree that tackles a

specific challenge faced in the South African economy

is a master’s in Sustainable Mineral Resource

Development.

Private colleges such as MANCOSA (Management

College of Southern Africa) often specialise in particular

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

and degrees in business, commerce and

administration is presented at five sites around

South Africa.

SOUTH AFRICAN BUSINESS 2018

36


INTERVIEW

Empowerment through

training

Marius Alberts, Sales Manager for Topps Products Group

Africa, explains how the company’s training programme is

empowering roofers and waterproofers.

Marius Alberts

Tell us about the training you offer.

We offer training for the coating application in waterproofing.

We developed training which is focused on workmanship and

consumer satisfaction.

What underpins the training programme?

In our Corporate Social Responsibility programme, we understand

that there are challenges in South Africa. If you can understand your

challenges, that knowledge becomes power. It is not always about

the money. If you are completing the value chain and the main focus

is the end consumer, they will get the benefit, and that is a story to tell!

BIOGRAPHY

Marius Alberts received his

Diploma as Coating Inspector

Level 2 from the NACE Corrosion

Institute in 2013 and is

planning to finish Level 3 soon.

He has extensive experience in

the coating industry: Coating

and Waterproofing. For Marius,

you can see him as a life

coach. His core values you can

measure ongoing, which are:

Integrity, not being Complacent,

Honest and Transparent in

all dealings.

What is the focus of the course?

To enhance the surface preparation, workmanship, customer satisfaction

as well as product knowledge. We have done training with 42

companies; these companies offer the training to their staff. We offer

a back-to-back guarantee, which means the company takes responsibility

for the workmanship and we as Topps Products SA give the

product guarantee.

Is the training certified?

Yes, absolutely. The regulation speaks for itself. Now the consumer gets

a pillow to sleep on.

What is the next phase?

Our Corporate Social Responsibility programme is focused on uplifting

the value chain. We will be measuring the growth of every student and

report back, ongoing.

What next for Topps Products SA?

With the green movement in SA, our products fit like a glove. We see the

trend in the market for green products and there is a big appetite out

there. With our proven track record of over two decades we will roll out

in every sector of SA. We are focused on contractors and retail stores.

37 SOUTH AFRICAN BUSINESS 2018


INTERVIEW

Training at Work

Founder and CEO Patricia Chiloane is committed to rural

upliftment through skills training and education.

Patricia Chiloane

BIOGRAPHY

Patricia Malegoba Chiloane

has been involved in skills development

since the inception of

Sector Education and Training

Authorities (SETAs). After founding

her own business, Training

at Work Private College, accreditation

with the Services SETA

was achieved in 2003. Chiloane

founded a Non-Profit Organisation

called Bohlale Foundation

which has engaged in a number

of events and community projects

for women in Bushbuck

Ridge. Chiloane has dedicated

herself to skills development.

Her passion is community

development through education.

Is Training at Work officially accredited?

Training at Work is a 16-year-old accredited and registered organisation

with the Department of Higher Education as a Private College

within the TVET band. We are further accredited by 12 Sector

Education and Training Authorities (SETAs).

Do you have a particular focus on training young

people?

Training at Work has programmes that cover young people, organisations,

government and the private sector. Our focus on youth is

both in qualifications, learnerships and short courses in programmes

like SMME training, life and employability skills, career guidance,

mentorship and coaching. There are also courses in health and

welfare training, OHS training and IT-related programmes.

What do you offer an agency or government department

that needs training?

We offer them customised training based on their request in both

aligned and non-aligned programmes. In a nutshell, we are offering

credit-bearing programmes (Accredited) and workshop-based (Nonaccredited)

learning to government and agencies.

Are rural people able to gain access to the training you

offer?

Training at Work is a mobile training provider meaning we can make

our services available anywhere in the country where there is a

learner. We have also established ourselves in the rural areas of the

Lowveld.

SOUTH AFRICAN BUSINESS 2018

38


Excellent education

through innovation

VISION

Excellent education through innovation

ABOUT US

Training at Work (also inscribed as Training@Work) is a training

and consulting private company established in 2001. In 2006

the company was converted from a close corporate to a limited

private company. The company is 100% woman owned by

Patricia Chiloane.

Training at Work develops and offers a flexible range of learning

solutions that meet specific needs of individuals, government,

private and non-profit organisations. A range of these solutions

are aimed at developing the competencies of young people, local

communities, the unemployed, corporate agencies, officials in

local government and local development agencies.

Services

• Training

• Development

• Consulting

OUR PROGRAMMES

Specialised fields

• Water and Sanitation

• Traffic Training

• Professional Driving

• Information Technology

• Entrepreneurship

• Artisanal

• Agricultural Training

• Local Government

• OD-ETDP and Services

QUALIFICATIONS FOCUS TARGET

Short courses Unemployed Rural

Learnerships Employed Organisational

Artisan development Youth and young people Unorganised formations

Skills training Work readiness NPOs and CBOs

Mentoring and coaching Entrepreneurs Cooperatives

Industries

Government and state agencies

TRAINING AT WORK (PTY) LTD

Registration Number: 2006/0285516/07 • Date Registered: April 2006 • DHET registration: 2011/FE07/057

Address: 15 Leonie Street Cnr Rifle Range Winchester Hills Johannesburg 2019

Tel: +27 11 433 9318 or +27 11 433 3096 | Fax: +27 86 519 2889

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


The hardest workers

You shouldn’t have a

favourite, but you will.

Get more than you bargained

for, without having to bargain.

A school’s transport requirements vary as much

as the excuses scholars give for not having done

their homework. Thankfully the Caddy Crew Bus

combines flexibility, versatility and reliability to

deal with any situation. The Caddy Crew Bus is

Volkswagen’s hard-working compact people mover

that exceeds expectations. It seats 5 comfortably

and has an optional 7-seater package if you’re

looking for even more of an overachiever in your

vehicle. Add to that comprehensive standard safety

features such as Automatic Post-Collision Braking,

ESP, EDL, Hill Hold and Traction Control and you’ll

be hard pressed to find a situation on the school

run that the Caddy Crew Bus can’t handle with

ease. All of that and we haven’t even mentioned

the German-engineered technology that results in

a low cost of ownership. It’s the ultimate runabout

school shuttle, a bit of a teacher’s pet really.

With every generation the Transporter Crew Bus

just keeps getting better. Its versatile nature

means it doesn’t just adapt to any situation,

it excels at them. There are two wheelbases

available, short and long, meaning you can have

from five seats all the way up to eleven seats!

With all the extra space for people you’ll be

glad to know it has the full host of enhanced

safety features including ESP, Automatic Post-

Collision Braking and 4MOTION®, our permanent

all-wheel-drive system that delivers power to all

four wheels as required. Not only does it meet

international safety regulations, but parental

safety expectations too. Topping it off, the

Transporter Crew Bus is covered by a 2-year /

unlimited kilometre warranty and a 3-year /

60,000km Genuine AutoMotion Service Plan.


in the faculty.

O&M CAPE TOWN 2382/E

The longest serving

member of the faculty.

Member of the rugby,

netball and chess teams.

For over 70 years the Kombi has been transporting

parents, teachers, kids, teens, kids who think

they’re teens and teens who think they’re kids. It’s

South Africa’s most loved people mover and an

iconic member of our school shuttle fleet. Excellent

fuel efficiency, performance and torque are made

possible thanks to Volkswagen’s TDI engines

paired with the smooth DSG® gearbox. The Kombi

is comfortable, reliable and so spacious that you

won’t even hear the scholars at the back asking,

“Are we there yet?” Its list of safety and driver

assistance systems resembles the impressive mass

of scrolls on a head boy’s blazer: ESC, ESP, ASR,

EDL, MCB, Hill Hold Assist and Traction Control.

And it comes with a 5-year / 60,000km Genuine

AutoMotion Maintenance Plan meaning not only

are your services covered, but so is wear and tear.

The Kombi will very quickly become one of your

most loved staff members.

There is no school shuttle task too large for this

Volkswagen. The Crafter has been crafted to meet all

your scholars’ travel needs and proudly represent

your school. Sold by our network of dedicated

Commercial Vehicles Dealerships, the Crafter

is converted through Dealer partners into the

perfect transport solution for students, teams,

coaches and teachers. Its efficient TDI and BiTDI®

engines welcome out-of-town field trips, while

its up-to 23 seats allow for the entire first team,

reserves and kit to travel comfortably. The 100%

all-new Crafter will be arriving in the second quarter

of 2018, ready to get to work.

Commercial

Vehicles


INTERVIEW

Meeting national

development

imperatives

As the Head of Secretariat: Human Resource Development

Council of South Africa, Brenda Ntombela is

responsible for the overall leadership and

management of the Secretariat.

Brenda Ntombela

BIOGRAPHY

Brenda Ntombela is a graduate

of the University of Limpopo,

has a Master’s Degree in Nursing

from the University of South

Africa and has completed various

management courses. She

has worked in Higher Education

and ICT. She has served as a

Councillor for the Independent

Communications Authority of

South Africa (ICASA), is currently

a Council member at the Durban

University of Technology and on

the transformation Committee

of the South African Council

for Project and Construction

Management Professions.

What are the key goals of the Revised HRD Strategy

Towards 2030?

The HRD Strategy aims to:

• Strengthen basic education and foundation programmes in

Science, Technology, Engineering, Maths, Languages and Life

Orientation/Skills

• Expand access to quality post-schooling education and training

• Improve research and technological innovation outcomes

• Produce appropriately skilled people for the economy

• Promote a developmental/capable state

How does the plan differ from its predecessor?

Various new government priorities and plans have been developed

including the National Development Plan (NDP). Global trends and

developments have also been taken into account, particularly the

impact of the Fourth Industrial Revolution on government, business,

individuals and society. These changes required a review of the

Human Resource Development Strategy of South Africa (HRDSA)

2010 to 2030. This Revised HRD Strategy outlines the human resource

development imperatives that are needed to meet national

development imperatives.

What are the roles of various social partners in the

strategy?

Labour: Focuses on worker education including the training of shop

stewards and negotiators to improve their understanding of labour

law. Supports the analysis of requirements, including the implementation

of skills audit and identifies programmes, general education

as well as technical skills and supports training for the unemployed.

Business: Continue to work on commitments within the Skills Accord.

Implement the Chief Executive Officer initiative to support a Youth

Employment Scheme (YES) which aims to put one-million youth into

SOUTH AFRICAN BUSINESS 2018 42


internships. Provide additional funding for bursaries

as well as other skills priorities (over and above the

skills levy).

Government: Ensure that cross-departmental

blockages can be addressed. In addition, provinces

may also adopt special programmes that are specific

to the province.

Civil Society: Communities act as a direct mechanism

for channelling HRD imperatives through participation.

Community involvement enables citizens

to influence the decisions that affect their lives,

as well providing vital information on community

development issues. Communities will be able to

make decisions on impacts associated with the

implementation of the strategy. These decisions

will be made through their representatives who

participate in the HRD Council structures.

Who are the key beneficiaries?

The key beneficiaries that the revised HRD Strategy

towards 2030 is targeting are Government as key

leaders, Social partners (organised labour, business

and civil society), Women, Youth, Communities,

Vulnerable groups and Small, Medium and Micro

Enterprise (SMMEs).

What are the current projects being

implemented?

The HRD Council is currently coordinating the following

projects: Strengthening of Maths & Science

teachers education, development & implementation

of a funding model for worker education

partnerships between TVET Colleges and Industry.

INTERVIEW

Priority Programmes are:

Programme 1

Foundation Education with Science, Technology,

Engineering, Maths and Languages and Life

Orientation/Skills.

Programme 2

TVET and the Rest of the College System.

Programme 3

Higher Education and Training, Research and

Innovation.

Programme 4

Skills for the transformation of society and the

economy.

Programme 5

Development/capable state.

How does the Strategy tackle youth

unemployment?

It supports various interventions to create employment

and reiterates the need for the involvement

of all stakeholders in the HRD processes. The HRD

Council is strengthening the partnerships between

TVET colleges and industries to help reduce youth

unemployment by calling on industries to open up

doors for workplace experience for youth.

Does the Strategy deal with “radical

economic transformation”?

Yes, the HRD Strategy promotes social and economic

development. It also supports the Government’s

Medium Term Expenditure Framework (MTSF)

which focuses on a competitive economy, creation

of decent work opportunities, encouragement

of investment and promotes inclusive

growth. This allows every individual in South Africa

to access Human Resource Development

facilities and resources.

CONTACT INFO

Physical address: 6th Floor, Ndinaye House,

178 Francis Baard Street, Pretoria

Telephone: +27 12 943 3187

Mobile: +27 82 573 3716

Email: ntombela.b@dhet.gov.za

Website: www.hrdcsa.org.za

43

SOUTH AFRICAN BUSINESS 2018


PROFILE

College of Cape Town

The forward-looking college has a history dating back to

the early 20th century.

The College is a public Technical and Vocational

Education & Training (TVET) College, under the

Department of Higher Education and Training.

Qualifications offered are accredited, affordable and

quality assured by Umalusi, various SETAs and SAQA.

Description of educational offerings

The College is a leading provider of education and

training in mainly the Technical and Vocational

Education and Training (TVET) band and has much

to offer students and prospective partners as an

alternative to Basic and Higher Education and

Training. Qualifications include skills programmes,

technical, vocational and occupational training that

lead to recognised, accredited qualifications that are

in high demand by commerce and industry.

Description of location of facilities

The College is situated in the central area of the

Peninsula with campuses located in Athlone, Cape

Town city centre, Crawford, Gardens, Guguletu,

Pinelands, Thornton and Wynberg. The central

office is located in Salt River, Cape Town. The College

of Cape Town also has three residences.

Key facts and figures

Year established: The College of Cape Town is

the oldest Technical and Vocational Education and

Training institution in South Africa with a proud

history dating back to the beginning of the 20th

century. As the name suggests, we are based in

Cape Town. Four former technical colleges, Athlone

College, Cape College, Sivuyile College and Western

Province Technical College, were officially merged

on 1 February 2002 to become the College of Cape

Town. This arose from a rationalisation in TVET

colleges in which some 150 colleges around the

country were reduced to 50.

No of staff: 670 (full-time)

No of registered students: 14 379

Faculties offered: Art & Design, Beauty Therapy,

Building & Civil Engineering, Business Studies,

Education & Training, Electrical Engineering,

Haircare, Hospitality, Information & Communication

Technology, Mechanical Engineering, Travel &

Tourism

Qualifications offered: Certificates, Higher

Certificates, Diplomas, UNISA B.Ed Degree

(Foundation Phase), Skills Programmes, Learnerships,

Accredited Trade Test Centre

CONTACT INFO

Key contact people:

Louis van Niekerk, Principal.

Wilfred Jackson, Chief Financial Officer.

Sharon Grobbelaar, Marketing Manager.

Physical address: 334 Albert Road,

Salt River, Cape Town 7945

Postal address: PO Box 1054,

Cape Town 8000

Tel: +27 21 404 6700 / 086 010 3682

Fax: +27 21 404 6701 / 086 615 0582

Email: info@cct.edu.za

Website: www.cct.edu.za

SOUTH AFRICAN BUSINESS 2018

44


Realising the promise

of the Oceans Economy

Hundreds of state properties along South Africa’s coast are to become sites of new

business opportunities and catalysts for economic growth and job creation.

The Oceans Economy is a new strategic opportunity for South Africa. A broad national strategy to tackle

projects that will reap benefits quickly–Operation Phakisa– has a number of priority streams, one of

which is the Oceans Economy.

46


SPECIAL FEATURE

47 SOUTH AFRICAN BUSINESS 2018


SPECIAL FEATURE

As part of the Oceans Economy strategy

within Operation Phakisa, a unit within the

National Department of Public Works has

been created, the name of which explains

its mandate – the Small Harbours and State Coastal

Property Development unit (SH&SCPD).

The key objectives of the Small Harbours and

State Coastal Property Development unit are to:

• attract investment in state coastal maritime

infrastructure and properties

• grow businesses

• create jobs

• stimulate economic growth

• redistribute wealth.

The new unit has four main tasks: it lets out

state coastal property for economic development;

it manages state coastal properties (including all occupied

and vacant Admiralty Reserve, land parcels,

buildings, estuaries and unproclaimed harbours); it

oversees the maintenance of small harbours and

coastal properties and it is responsible for a special

intervention programme to repair and maintain 12

proclaimed fishing harbours in the Western Cape.

South Africa is bordered by the ocean on three

sides. In 2010 the ocean contributed approximately

R54-billion to South Africa’s GDP and accounted

for approximately 316 000 jobs. Studies suggest

that the ocean has the potential to contribute up

to R177-billion to GDP and between 800 000 and

one-million direct jobs.

A series of investment conferences were

launched in each of South Africa’s coastal provinces

in 2017, introducing the investors community

to “Small Harbours and State Coastal Property

Development”. A wide range of sectors in the

Northern Cape, Western Cape, Eastern Cape and

KwaZulu-Natal are being targeted for investment.

The scheme aims to attract a minimum of R12-

billion in investment proposals, generate over 2 000

job opportunities in the short to medium term and

500 permanent jobs over the long term. The products

generated should be viable and contribute

to growing the economy, small businesses should

have a chance to be part of large-scale manufacturing

and construction initiatives, and the regularisation

of business activities along the coastal

belts will promote increased revenue for local

municipalities through the collection of rates and

municipal services.

The country’s 2 800km of coastline already supports

many communities and businesses but the potential

to increase and improve yields is enormous.

At the moment, there are more than 300 businesses

leasing state-owned land in sectors ranging from

mining, farming and fishing to logistics, leisure and

retail. The SH&SCPD unit wants to increase these opportunities

in partnership with other national government

departments such as National Treasury, the

Department of Agriculture, Forestry and Fisheries

and the Department of Environmental Affairs, provincial

governments, district municipalities and

local municipalities.

Several priority projects have been identified,

but the scope for further smaller projects is huge.

Much will depend on the initiative of local business

people and local municipalities.

The first five priorities identified under the

project are:

1. development of the harbour at Port Nolloth,

Northern Cape

2. development of the harbour at Port St Johns,

Eastern Cape

3. development of a new harbour at Port Edward,

KwaZulu-Natal

4. repair and maintenance of proclaimed fishing

harbours, Western Cape

5. one priority project per coastal municipality (on

Public Works land).

State coastal land and buildings will be available

to private-sector investors to achieve any of the

following objectives: expand an existing business;

create a new business; stimulate the local economy;

create new jobs; generate revenue; deepen economic

transformation.

Investment proposals will be evaluated on a set

of criteria that include:

• scale of investment

• projected growth of business and turn over

• retention and creation of jobs

• degree of empowerment

• project revenue

• appropriateness with regard to zoning

• commitment to support small, medium and

micro-enterprises (SMMEs) and localisation.

SOUTH AFRICAN BUSINESS 2018

48


SPECIAL FEATURE

Local economic development

Economic sectors that have been identified as suitable

for local economic development through investment

are Education and Training; Renewable

Energy; Farming; Fish Processing and Packaging;

Food and Beverages; Hospitality; Infrastructure

Development; Logistics; Maintenance and Repair

(Vessels and Harbour Infrastructure); Manufacturing

and Engineering Services; Mining; Pipelines and

Pump Houses; Rescue, Safety and Security; Sport

and Recreation; Tourism; Transport (Commercial and

Leisure); Water and Waste Management.

The range of sectors and business opportunities

available to potential investors into the Small

Harbours and State Coastal Property Development

project is wide. They include:

• Water theme parks

• Fishing and fish processing

• Fuel supply

• Special Economic Zones

• Desalination

• Energy production

• Caravan parks/holiday resorts

• Shipwreck museums

• Yacht mole facilities

• Transport (ferries and water taxis)

• Energy production

• Public beaches

• Slipways

• Warehousing

• Breweries and distilleries

• Aquaculture

• Mariculture

• Small ship/boat-building

• Ship maintenance and repairs

• Restaurants

• Retail

• Fish processing factories

• Offices

• Tourism

• Ice-making and supplies

• Education (Maritime and Aquaculture Training

Centres)

• Renewable energy

Small harbours

Small harbours can play a big role in driving new

economic activity. Small harbours are also important

in terms of safety, security and safeguarding the territorial

integrity of the South African state.

As a first step in the small harbours programme,

12 Proclaimed Fishing Harbours in the Western Cape

were identified and work began on a series of projects

to start the revival process: repairing slipways,

towing away sunken vessels and dredging. The repair

and maintenance project should be completed

by March 2019.

Many more creative and value-adding interventions

lie ahead, and are expected to be undertaken

49 SOUTH AFRICAN BUSINESS 2018


SPECIAL FEATURE

even in areas that are currently not Proclaimed

Fishing Harbours. South Africa’s four coastal provinces

have as many as 50 potential and existing unproclaimed

harbours. There is a particular emphasis

on developing assets beyond the Western Cape,

traditionally the home of maritime activity.

The key is to use small harbours to stimulate

the local economy. Activities to promote primary

maritime activity could include:

• infrastructure to support fishers: processing, ice

production, cold storage

• infrastructure for boat-building and repair

• additional berthing and launching facilities

• new recreational fishing points

• access to better amenities for fishers.

Business opportunities that might work at a

small harbour include ice-making, desalination,

yacht mole facilities, water taxis and a variety of

tourism ventures.

Tourism could be promoted through relatively

simple interventions such as:

• improved pedestrian access

• cleaning and maintenance

• policing

• stalls or shelters to sell crafts

• partnerships with developers to develop

restaurant, curio shops, retail, maritime/marine

museum or wreck museum and accommodation

options

• infrastructure that allows for water recreation

and sports.

Steps are being taken to include the country’s

small harbours as national assets in terms of the

Government Immovable Assets Management

Act (GIAMA). DPW is the custodian of the state’s

immovable assets.

The unit intends implementing the Spatial and

Economic Development Frameworks (SEDFs) for the

12 proclaimed fishing harbours which were completed

in 2014 and develop SEDFs for the remaining

small harbours along South Africa’s coastline.

An audit of all state coastal reserves needs to

be done, and land for aquaculture projects is to be

made available for these enterprises. Short-term

leases within harbours are also to be converted to

three-to-five-year leases so that business owners

can have better security of tenure, allowing them

to plan and expand.

The 12 existing and Proclaimed Fishing Harbours

are all in the Western Cape. Outside the Western

SOUTH AFRICAN BUSINESS 2018

50


SPECIAL FEATURE

Cape, the Small Harbours and State Coastal Property

unit has plans in hand for priority projects at nine

locations in three provinces:

• Northern Cape: Port Nolloth; Hondeklip Bay and

Kleinsee.

• Eastern Cape: Port St Johns; Port Alfred and Gonubie.

• KwaZulu-Natal: Port Edward; Hibberdene and

Port Shepstone.

Operation Phakisa

Operation Phakisa is a national plan that targets

sectors that can best achieve quick returns in terms

of growth and job creation. Operation Phakisa

falls under the National Department of Planning,

Monitoring and Evaluation and is aligned with the

National Development Plan (NDP) 2030.

The plan seeks to get things done quickly.

Phakisa mean “hurry up” in SeSotho and is adopted

from the Malaysian method of delivering economic

transformation, “Big Fast Results”. That operation

addressed Malaysia’s key priorities such as poverty,

crime and unemployment. It involved setting up

clear targets and following up with monitoring process

and making the results public. The Malaysian

government registered impressive results within a

short period.

In the South African plan, there are eight steps.

Various knowledgeable and relevant people from

the public and private sectors, academia as well as

civil society organisations are brought together to

collaborate in “laboratories” so there is, for example,

a Health Lab, an Education Lab and an Oceans

Economy Lab. From these sessions, detailed plans

are developed with timelines and delivery dates.

The Oceans Economy has been chosen as one

of the key sectors for Operation Phakisa because of

the massive opportunity to create value that resides

onshore and offshore. There are five target areas

within the Oceans Economy strategy:

• aquaculture

• offshore oil and gas

• marine protection and governance

• marine transport and manufacturing

• Small Harbours and State Coastal Property.

51 SOUTH AFRICAN BUSINESS 2018


SPECIAL FEATURE

Northern Cape

The Northern Cape has a coastline of 313km but

the economic value of this asset has barely been

touched, despite a growth in the abalone industry in

recent years and some fishing and lobster operations.

The province has been allocated an increased

quota for landing fish (primarily hake) which makes

Port Nolloth more attractive as a site for investors in

fish processing. A pilot abalone ranching project located

south of Port Nolloth will start operating soon.

Bigger plans are under way to convert Port

Nolloth into a deepwater port capable of receiving

large vessels. Both a pre-feasibility study and

a follow-up Gap Analysis have been done, and the

plans have been registered with the provincial and

national Treasuries. In terms of the Small Harbours

and State Coastal Property Development project,

plans for Port Nolloth include the creation of a waterfront

for retail and tourist activity, expanding fishing

and aquaculture, and developing a boat-building

and maintenance industry.

The Namakwa District Municipality is one of five

district municipalities in the Northern Cape and the

only one with access to the coast. Each of the three

coastal local municipalities within Namakwa DM

will be the focus of a project on Public Works land,

brokered by the Small Harbours and State Coastal

Property Development unit.

Priority projects

Port Nolloth: a new harbour development with

economic activities such as alluvial mining, boatbuilding

and maintenance, fishing and aquaculture

and the development of a waterfront.

Hondeklip Bay: development of coastal property;

with economic activities such as alluvial mining,

aquaculture and fishing.

Kleinsee: development of coastal property; with

economic activities such as aquaculture and the

creation of an economic zone.

Northern Cape Provincial Government

Department of Economic Development and

Tourism: www.economic.ncape.gov.za

Namakwa District Municipality

Website: www.namakwa-dm.gov.za

Coastal local municipalities: Richtersveld LM;

Nama Khoi LM; Kamiesberg LM.

Coastal assets include: Alexander Bay, Port

Nolloth, Hondeklip Bay, Koingaas and Kleinzee.

SOUTH AFRICAN BUSINESS 2018

52


Western Cape

The Port of Cape Town (general trade), Saldanha

Bay (exportation of iron ore and trawler fleets),

Mossel Bay (gas and trawler fleets) and Simon’s

Town harbour (naval headquarters) are major port

facilities underpinning the maritime sector in the

Western Cape.

The Small Harbours and State Coastal Property

Development project has committed to a programme

of repair and maintenance of the Western

Cape’s 12 Proclaimed Fishing Harbours. In addition,

a capital and maintenance programme valued at

R400-million has been outlined.

Several of the smaller harbours being targeted for

these repair projects and for further development

fall within the metropolitan area of the City of Cape

Town; the others are distributed across four of the

province’s five district municipalities.

Saldanha is a base for deep-sea trawling operators.

The port of Mossel Bay is the region’s fishing

industry base with facilities for fleet maintenance

and for processing catches.

The Harbour Road development at Kleinmond

near Hermanus has seen the area leading to the

sea near the slipway upgraded and transformed:

roadside trees shade coffee shops and traders, and

bookshops and restaurants line the cobbled road

leading to the water’s edge. Several new apartments

are for sale or available for holiday rental. This kind

of upmarket development will not suit every small

harbour, jetty or cove along the coast of South Africa,

but it highlights what can be done with a bit of

imagination and intelligent partnerships between

public landowners and private developers.

Priority projects

The unit will implement the Spatial and Economic

Development Frameworks (SEDFs) for the 12

Proclaimed Fishing Harbours of the Western Cape

which were completed in 2014. Various projects

are at different stages in the development pipeline.

On the West Coast there is Lamberts Bay, Laaiplek,

St Helena and Saldanha Bay. Within the City of Cape

Town lie Hout Bay and Kalk Bay and around False Bay

is Gordons Bay. Further east are Hermanus, Gansbaai,

Struisbaai, Arniston and Stilbaai. Each of these

SPECIAL FEATURE

harbours has economic activity to a greater or lesser

extent, but upgrades and diversification will serve

them (and potential investors) well.

By way of example, budgeted amounts for repairs,

upgrades, dredging and security for Hout Bay

harbour for the period 2015-2018 are set at R14.4-

million. Gordons Bay harbour is to have some of

its access roads rerouted to create separate zones

for operations and tourism/commerce. At Kalk Bay

harbour the focus is on creating a dedicated area

for small-scale fishers which will also create new

cold-storage facilities.

Western Cape Provincial Government

Department of Economic Development and

Tourism: www.westerncape.gov.za/dept/edat

City of Cape Town

Website: www.capetown.gov.za

Proclaimed Fishing Harbours: Hout Bay, Gordons

Bay and Kalk Bay.

West Coast District Municipality

Website: www.westcoastdm.co.za

Coastal local municipalities: Matzikama LM;

Cederberg LM; Bergriver LM; Saldanha Bay LM;

Swartland LM.

Proclaimed Fishing Harbours: Lamberts Bay,

Laaiplek, St Helena, Saldanha Bay.

Other coastal assets include: Doring Bay, Elands

Bay, Ysterfontein.

Overberg District Municipality

Website: www.odm.org.za

Coastal local municipalities: Overstrand LM; Cape

Agulhas LM.

Proclaimed fishing harbours: Hermanus, Ganbsaai,

Struisbaai.

Other coastal assets: Kleinmond, Hawston, Arniston.

Eden District Municipality

Website: www.edendm.co.za

Coastal local municipalities: Hessequa LM; Mossel

Bay LM; Knysna LM; Bitou LM.

Coastal assets include: Port of Mossel Bay,

Plettenberg Bay, Knysna lagoon and jetties, Stillbaai

and Witsand.

53 SOUTH AFRICAN BUSINESS 2018


SPECIAL FEATURE

Eastern Cape

The Eastern Cape is perfectly positioned to take advantage

of the new interest in developing a maritime

economy. The province has 800km of coastline, three

ports, two Industrial Development Zones and an

academic community geared to maritime research.

The Eastern Cape’s maritime sector is anchored by

its three large ports in the metropolitan municipalities

of Buffalo City (Port of East London) and Nelson

Mandela Bay (Port Elizabeth and Ngqura). The Nelson

Mandela University has established a campus for

Ocean Sciences.

The ports of East London and Ngqura serve

Industrial Development Zones, the ELIDZ and the

Coega IDZ. Apart from attracting foreign direct investment

and boosting employment, IDZs play a

role in helping to add new sectors or subsectors to

an economy.

Beyond the metropolitan municipalities, three

district municipalities host other coastal properties,

existing small harbours or areas that could become

small harbours.

The tourism potential of the sandy beaches along

the Eastern Cape coastline is already well known.

With investment and targeted projects, some of the

“hidden gems” among the small harbours, bays and

coastal properties may turn out to be providers of

income and improved turnover in unexpected ways.

Priority projects

Port St Johns: development of a new harbour and

development of coastal property, with economic

activities such as a new economic zone, fishing and

aquaculture and the establishment of a waterfront.

Port Alfred: development of coastal property, with

economic activities such as tourism and aquaculture.

Gonubie: development of coastal property, with

economic activities such as a mini-waterfront, leisure

activities and recreation.

Eastern Cape Provincial Government

Department of Economic Development,

Environmental Affairs and Tourism:

www.dedea.gov.za

Nelson Mandela Bay Metropolitan

Municipality

Website: www.nelsonmandebay.gov.za

Assets: Ports of Port Elizabeth, Ngqura.

Sarah Baartman District Municipality

Website: www.sarahbaartman.gov.za

Coastal local municipalities: Greater Kei LM;

Sundays River LM; Kouga LM; Ndlambe LM.

Coastal assets: Jeffreys Bay, Port St Francis,

Port Alfred.

Buffalo City Metropolitan Municipality

Website: www.buffalocity.gov.za

Assets: Port of East London, Gonubie.

OR Tambo District Municipality

Website: www.ortambodm.go.za

Coastal local municipalities: King Sabata

Dalindyebo LM; Nyandeni LM; Port St

Johns LM; Ingquza LM; Mbizana LM.

Coastal assets: Port St Johns, Mcwasa,

Hole in the Wall.

Amathole District Municipality

Website: www.amathole.gov.za

Coastal local municipalities:

Ngqushwa LM; Great Kei LM;

Mnquma LM; Mbashe LM.

Coastal assets: Morgan Bay,

Kei Mouth.

SOUTH AFRICAN BUSINESS 2018

54


SPECIAL FEATURE

KwaZulu-Natal

With its two important ports, KwaZulu-Natal is very

much a maritime province. Between them, Durban

and Richards Bay handle 78% of South Africa’s

cargo tonnage. Richards Bay, apart from being the

country’s main site for the export of coal, is also a

registered Industrial Development Zone (IDZ) and

consequently attracts a range of investors.

The state owns property adjacent to many of

the province’s fine beaches and these will be used

to further develop tourist infrastructure, primarily

on the South Coast. The great annual Sardine Run

is one of the highlights on the tourism calendar

and generally involves thousands of individuals

plunging into the surf in search of silvery treasure.

Some of planned infrastructure involves fish

processing.

The remote destinations in the northern parts

of KwaZulu-Natal have been mentioned in some

of the preliminary planning for the project, but no

details have yet been announced.

Four district municipalities and the metropolitan

municipality of eThekwini preside over

ports, small harbours and coastal properties in

the province.

Priority projects

Port Edward: development of a new harbour and

coastal property, with economic activities such as

fish and processing, fishing and leisure activities.

Hibberdene: development of coastal property, with

economic activities such as the creation of a waterfront

and a Music City.

Port Shepstone: development of coastal property,

with economic activities such as boat-building and

repairs and the creation of an economic zone.

KwaZulu-Natal Provincial Government

Department of Economic Development,

Tourism and Environmental Affairs:

www.kzndedt.gov.za

eThekwini Metropolitan Municipality

Website: www.durban.gov.za

Coastal assets: Port of Durban, Umkomaas,

Amanzimtoti, Umhlanga.

Ugu District Municipality

Website: www.ugu.gov.za

Coastal local municipalities: Ray Nkonyeni LM;

Umdoni LM.

Coastal assets: Port Shepstone, Port Edward,

Hibberdene, Shelley Beach.

iLembe District Municipality

Website: www.ilembe.gov.za

Coastal local municipalities: Mandeni LM;

KwaDukuza LM.

Coastal assets: Ballito, Zinkwazi beach.

King Cetshwayo District Municipality

Website: www.uthungulu.gov.za

Coastal local municipalities: uMlalazi LM;

uMhlatuze LM; uMfolozi LM.

Coastal assets: Port of Richards Bay, Richards

Bay IDZ.

uMkhanyakude District Municipality

Website: www.ukdm.gov.za

Coastal local municipalities: Mhlabuyalingana LM.

Coastal assets: Kosi Bay, St Lucia.

SOUTH AFRICAN BUSINESS 2018 56


Small Harbours and State

Coastal Property Development

Unlocking the potential of South Africa’s oceans economy.

A unit has been established within the National

Department of Public Works to focus on the enormous

potential that South Africa’s coastline holds for

economic upliftment and job creation.

The key objectives of the Small Harbours and State

Coastal Property Development unit are to:

• attract investment in state coastal maritime

infrastructure and properties

• grow businesses

• create jobs

• stimulate economic growth

• redistribute wealth.

Mandate and functions

• Letting out of state coastal property for economic

development.

• Management of state coastal properties. (This

includes all occupied and vacant Admiralty Reserve,

land parcels, buildings, estuaries and unproclaimed

harbours.)

• Maintenance of state coastal properties and

infrastructure.

• Special intervention programme: repair and

maintenance of 12 proclaimed fishing harbours in

the Western Cape.

“Ensuring inclusive Economic Growth

and Development through the

Empowerment of Local Communities”

Local economic development

Economic sectors that have been identified as suitable

for local economic development through investment

are Education and Training; Renewable

Energy; Farming; Fish Processing and Packaging; Food

and Beverage; Hospitality Industry; Infrastructure

Development; Logistics; Maintenance and Repair

(Vessels and Harbour Infrastructure); Manufacturing

and Engineering Services; Mining; Pipelines and

Pump Houses; Rescue, Safety and Security; Sport

and Recreation; Tourism; Transport (Commercial and

Leisure); Water and Waste Management and others.

National priority projects

DPW intends building three new small harbours in

the Northern Cape, Eastern Cape and KwaZulu-Natal

provinces.

Phase one: The new harbours to be developed under

Phase one are as follows:

• Port Nolloth of Richtersveld Municipality (Northern

Cape)

• Port St Johns of PSJ Municipality (Eastern Cape)

• Port Edward of Ray Nkonyeni Municipality

(KwaZulu-Natal)

Phase two: Phase two projects under consideration for

development of the following areas:

• Northern Cape: Kleinzee and Hondeklip Bay.

• Eastern Cape: Port Alfred, Gonubie, Port Grosvenor

and Coffee Bay.

• KwaZulu-Natal: Port Shepstone, Shelley Beach,

Mthunzini and Richards Bay La Mercy.

Enquiries: shscpd@dpw.gov.za


KEY SECTORS

Overviews of the main economic

sectors in South Africa

Agriculture 60

Mining 65

Oil, gas and petrochemicals 69

Energy 76

Water 84

Engineering 88

Manufacturing 94

Automotive 100

Chemicals and pharmaceuticals 103

Food and beverages 104

Transport 106

Business services 110

Tourism 116

Information and

communications technology 126

Banking 128

Development finance and

SMME support 130


OVERVIEW

Agriculture

Agriculture companies are active on the stock exchange.

When South Africa’s first alternative stock exchange in

South Africa started trading in February 2017, the first

listing was agricultural company Senwes and its holding

company. On the JSE, agricultural companies make up

4.3% of market cap.

Senwes has been described as a “rock solid, conservatively run

agricultural titan” (Anthony Clark) while Kaap-Agri, which listed on the

JSE in June 2017, might be, according to Investors Monthly, “the best

retailing conglomerate in South Africa”. Afgri, biggest of the former

co-operatives that are now multi-dimensional companies, has delisted

from the JSE but in 2017 bought the South African Bank of Athens.

The JSE has also launched a wool futures contract as the sector

strives to add 25-million kilograms to the existing crop of about

44-million kilograms.

Zeder Investments is the agricultural arm of investment holding

company PSG Group (which has become well known through Capitec

Bank and Curro schools). Zeder has been increasing its stake in agricultural

companies, most notably Capespan. Capespan has a turnover of

R7.6-billion across three divisions: farms, logistics and fruit.

Zeder also owns 27.1% of Pioneer Foods which makes and distributes

many big food and drink brands across Southern Africa, including

Weet-Bix, Liqui-Fruit, Ceres, Sasko and White Star. The company has an

SECTOR INSIGHT

A record maize harvest is

boosting exports.

• Land under macadamia

nuts is increasing rapidly.

annual turnover of R20-billion and

it has two Bokomo facilities producing

wheat biscuits, cereal and

muesli in the United Kingdom.

These facts give an indication

of the large influence which the

agricultural sector has in South

Africa. When national agricultural

output surged in mid-2017 on the

back of good rains and harvests,

the country was lifted out of the

technical recession into which it

had fallen in the first quarter.

A maize crop of 16.4-million

tons for 2016/17 means a surplus

SOUTH AFRICAN BUSINESS 2018

60


OVERVIEW

of about four-million tons, definitive

proof that the long drought

which hit South Africa is over, at

least in the central and northern

regions. The Western Cape

drought continues.

The Land Bank intends to put

aside R1-billion in supporting

black agricultural entrepreneurs.

The hope is that by making the

sector more inclusive, long-term

food security will be ensured.

Fruit, sugar and wine make up

about 7% of the country’s total

export basket. Avocadoes, tomatoes

and macadamias are among

other important export crops.

More than 50% of agricultural

export is made up of processed

agricultural products, a promising

development for the future of agriprocessing.

National trade policy

strategies are intended to enhance

this trend. Primary agriculture

provides 5% of formal employment

in South Africa.

Several of the Special Economic

Zones around South Africa either

have or will in the future have

agri-processing facilities.

Examples include existing tomato

paste and dairy facilities at Coega

IDZ and plans to develop the SEZ

at Harrismith (Maluti-A-Phofung)

into a hub for agri-processing.

Several former farmers’ cooperatives

are now substantial

agri-businesses. Most have a

specific geographic and farming

sector focus (BKB is strong in the

eastern Free State and Eastern

Cape and concentrates on wool

and mohair) while others like Afgri

have a national presence.

Senwes has a strong grain division

and it controls 68 silos. Its operations

are run from Klerksdorp in

the centre of the country in North West Province. Other companies include

NTKLA (Limpopo), GWK (Northern Cape), Klein Karoo Agri, VKB (eastern

Free State and Limpopo), Kaap Agri (from the Boland to the Eastern Cape

and up to Namibia), SSK (Overberg) and TWK (KZN and Mpumalanga).

Crops

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

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

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

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

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

Macadamia nuts is one of the fastest-growing sectors in South Africa.

Almost all of nuts produced are exported and the global market is

expanding every year: nearly 2 000ha are added to the land under

macadamias every year. Mpumalanga and Limpopo provinces are big

nut-growing provinces. Another sector enjoying a boom (mainly because

of Chinese demand) is avocadoes, with almost 1 000ha per year

of new land being planted.

The South Africa feed industry has an annual turnover of about

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

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

Tongaat Hulett) each shut down one of their mills because of the extended

drought and the broader trend for sugar production and the

amount of land under sugar cane is downwards. The prospect of a

sugar tax will not help sales. Both of these companies have diversified

portfolios with Tongaat Hulett active in property in KwaZulu-Natal. The

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

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

sorghum, sunflower, potatoes, groundnuts, dry beans, and almost all of its

cherries. Barley and canola are produced in the Western Cape.

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

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

markets internationally.

Fruit

South Africa is famous for its fruit, of which 35% is citrus, 23% subtropical

and nuts, 26% pome fruit, 11% stone fruit and 9% table grapes.

Export volumes, particularly in tropical fruits such as mangoes and

avocadoes, have been growing rapidly in recent years. The sector is

highly sophisticated and is skilled at the refrigeration and packing

required for European Union standards. With clarity now achieved on

refrigeration protocols in China, South Africa intends increasing table

grape exports to that country to R2.5-billion within five years.

61 SOUTH AFRICAN BUSINESS 2018


OVERVIEW

Wine

Large volumes of exports are achieved in deciduous fruits such as

apples, table grapes, pears, peaches, plums and apricots. Avocadoes

thrive in Mpumalanga and Limpopo and production volumes above

110 000 tons per year have been achieved. About 45% of production

is exported.

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

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

operate in Limpopo Province. Westfalia, part of the Hans

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

fresh tomato enterprise. Halls has an international reputation for

avocadoes and litchis.

Companies such as Capespan and DoleSA move huge quantities

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

tons to the EU (about 40% of the total). A new development in the

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

Development Corporation.

The Orange River supports the cultivation of citrus and grapes of

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

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

mean that it is easy to control pests.

ONLINE RESOURCES

Agricultural Research Council: www.arc.agric.za

Fresh Produce Exporters’ Forum: www.fpef.co.za

Grain SA: www.grainsa.co.za

Land Bank: www.landbank.co.za

National Department of Agriculture, Forestry and Fisheries:

www.daff.gov.za

SA Table Grape Industry: www.satgi.co.za

Export volumes have been steadily

rising for South African wines.

There are about 3 500 wine

producers in South Africa, with

the large majority located in the

Western Cape. There are 54 producer

cellars. The industry earned

R17.5-billion in exports in 2016.

Europe is the main market but

exports to China and Russia are

growing as South Africa seeks to

exploit its membership of BRICS.

The industry is located for

the most part in the Western

Cape but Orange River Cellars

in the Northern Cape is growing

production volumes. The Distell

group produces about a third of

the country’s natural and sparkling

wine, and is ranked 12th in the

world in global wine volumes sold.

Livestock

Livestock farming is the largest agricultural

subsector in South Africa.

The Eastern Cape is the largest livestock

province. South Africa has a

beef-herd of 14-million. There are

6.4-million goats in South Africa.

The Kalahari Kid Corporation (KKC)

intends to raise the standard of goat

meat and expand the export market.

South Africa produces about

55% of the world’s mohair, the

high-quality speciality fibre taken

from Angora goats. Almost all mohair

farming is done in the Eastern

Cape. Clover is Africa’s largest milk

processor. The Eastern Cape provides

approximately a quarter of

South Africa’s milk. Parmalat has

two plants in Port Elizabeth.

SOUTH AFRICAN BUSINESS 2018

62


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Mining

The South African mining landscape is changing.

OVERVIEW

When Gold Fields in 2013 spun off some of its older

mines to a new company to be called Sibanye Gold,

most of the attention was focussed on the older

company’s remaining asset in South Africa, the South

Deep mine. The thinking was that South Deep would be a more

attractive investment proposition if it was uncoupled from the less

profitable mines.

What has happened instead is that Sibanye has diversified and

grown to such an extent that it now has a new name, Sibanye Stillwater,

which reflects its R30-billion purchase of mines in the US that produce

platinum and palladium. It also bought several South African platinum

assets including Aquarius Platinum and the Rustenburg mines

of Amplats. Sibanye is now the third-largest producer of palladium

and platinum in the world, and one of the 10 biggest gold producers.

The gold sector has lost thousands of jobs in the last five years.

Part of the reason for Gold Fields wanting to unbundle was political

uncertainty in the mining sector. A new mining charter (Mining

Charter 3) has not gone down well with mining companies. The

level of black ownership and whether or not that percentage must

be “topped up” every time a black shareholder sells, are just two of

the contentious issues. The Chamber of Mines says that the value of

SECTOR INSIGHT

Sibanye Stillwater has become

a global leader in just

three years.

• Operation Mining Phakisa

Lab aims to fast-track

solutions.

BBBEE deals since the year 2000

is R205-billion.

The mining industry itself is

looking at new ways of doing

business. At its 127th annual general

meeting where a new CEO

was appointed in May 2017, the

Chamber of Mines announced

that it would be rebranding.

Guided by the Zambezi Protocol,

the Chamber wants mining to

be more positive and construc-

65 SOUTH AFRICAN BUSINESS 2018


OVERVIEW

tive, working better with the

communities in which it operates.

New CEO, Mxolisi Mgojo,

is simultaneously leading his

company, Exxaro Resources, on

a programme to make mining

sustainable through measures

such as water sharing with local

communities and finding ways

to help communities gain access

to energy.

The national government’s

Phakisa programme is also to be

applied to mining. Intended to

fast-track solutions to development

problems, an Operation

Mining Phakisa Lab has been set

up to create concrete plans.

Another significant change in

the South African mining landscape

was the decision of Anglo

American to focus on three

minerals: copper, platinum and

diamonds. Although Anglo has

not begun a wholesale sell-off of

coal, manganese and platinum

assets (because rising prices have

made some mines very profitable

again), sales have begun. The

first move came in April 2017

with the sale of Anglo’s thermal

coal operations to Seriti, a blackowned

company lead by Mike

Teke, the outgoing president of

the Chamber of Mines.

Seriti paid R2.3-billion for the

New Vaal, New Denmark and Kriel

collieries as well as four closed

collieries. Seriti thus became the

second-largest provider of thermal

coal to Eskom.

The other big supplier to

Eskom is Exxaro, which supplies

about 33-million tons. Exxaro’s

recent purchase of Total Coal

South Africa (TCSA) took to six

the number of mines the company

has in Mpumalanga. Exxaro’s Grootgeluk mine in Limpopo is a

huge operation and gives the company a presence in the Waterberg

area, where an estimated 40% of South Africa’s coal reserves lie. This

amounts to about 75-billion tons of coal, but to get that coal to the

coast for export would mean a rail extension of 464km at a cost of

R37-billion. Transnet Freight Rail (TFR) is conducting a feasibility study.

Assets

South Africa has huge reserves of platinum and chrome and produces

about 40% of the world’s vanadium and vermiculite. The country has

large reserves of ilmenite, palladium, rutile and zirconium and 80% of

the world’s known manganese reserves are located in the Northern

Cape Province. South Africa also produces 75% of the world’s platinum

and 73% of its chrome.

Despite uncertainty on the global market, Northam Platinum has

continued to buy assets. In 2015 it bought Everest South in Limpopo

from Aquarius, a move that will allow it to consolidate operations at

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. R70-million has been committed to the first phase. If the

mine achieves the projected production rate of 12 Mtpa with 1.2-million

ounces of PMG, it will rank as the biggest PGM mine in the world.

Amplats and Lonmin are trying to reduce costs. Amplats has sold

its Rustenburg operations to Sibanye and Lonmin has put some shafts

that are expensive to run on care and maintenance.

With a depressed platinum price, platinum miners are hoping that

SOUTH AFRICAN BUSINESS 2018

66


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OVERVIEW

demand from the fuel cell industry will replace the decline in demand for

catalytic converters. Other areas that are being investigated are jewellery,

where the Platinum Guild International will try to stimulate more demand.

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

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

and platinum group metals collectively make up 80% of South Africa’s

mineral sales.

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

and is the number-one producer of andalusite. Copper mines in Aggeneys

in Namaqualand are responsible for approximately 93% of South Africa’s

lead production and 12% of all world lead exports.

There are 20 chromite mines in the North West Province located

along a reef running from Brits to Rustenburg and serviced by several

ferrochrome smelters.

The Northern Cape produces more than 84% of South Africa’s iron

ore. Kumba Iron Ore is the country’s biggest iron-ore miner. Its two mines

(Sishen and Kolomela) produced 69.8-million tons in 2016. The company’s

Thabazimbi mine was sold to ArcelorMittal South Africa in 2017.

ArcelorMittal also stepped in to keep the structural mill of Evraz Highveld

Steel in Mpumalanga running. Evraz Highveld went into business rescue

in 2015. Assmang (a joint venture between Assore and African Rainbow

Minerals) is the other big iron-ore producer. Analysts at Investorintel.com

expect the South African ferrochrome market to be dominated by two

major players, Samancor and Glencore. This follows the closure of three

operations: Tata (in KwaZulu-Natal), International Ferro Metals and ASA

Metals. Mitsubishi has said that it wants to sell its shareholding in Hernic

Ferrochrome. Afarak and Traxys are smaller operators in the sector. A new

iron-ore sampling plant at Saldanha, a joint venture between Kumba and

Transnet, allows exporters to certify the quality of their product before

the ore is loaded on to ships for export.

The Kalahari Basin contains 80% of the world’s manganese reserve, but

only 15% of global production comes from this area so there is enormous

scope for development. Several new black-owned manganese projects

are under way.

Vedanta started work in 2015 on its R9.4-billion Gamsberg

Zinc project. The new mine is near to Vedanta’s existing Black

Mountain mine in the Northern Cape Province.

ONLINE RESOURCES

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

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

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

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

South African Institute of Mining and Metallurgy:

www.saimm.co.za

Anglo American is investing

R2-billion to expand production

at its diamond mine near

the town of Musina in Limpopo.

In the Free State, De Beers’

Voorspoed mine will have a

production capacity of 800 000

carats per year when it is fully

operational.

A new mineral sands project

on the West Coast near Lutzville

and Koekenaap has started sending

product to China. Australian

miner Mineral Commodities

says it will spend R5-billion at its

Tormin mine to 2019 in search of

zircon, rutile, ilmenite and garnet.

Sixteen rare earth minerals

have been identified north of

Vanrhynsdorp, with the most

prevalent being cerium, an

important component of catalytic

converters. South Africa

is a world leader in converters.

Other minerals found at the site

are used in magnets, batteries

and electric-powered cars.

SOUTH AFRICAN BUSINESS 2018

68


Oil, gas and petrochemicals

The sector is alive with activity.

OVERVIEW

Licences for onshore and offshore exploration for gas, allocation

of sites for liquified national gas power plants, the creation of

new units within national departments, investment in a new

helium plant, testing for shale gas, massive investments by

Sasol – these are some of the things that are putting a spark into the

South African oil, gas and petrochemicals sector.

An agreement has been signed between PetroSA and Russia’s

geological exploration company, Rosgeo, which will see $400-million

invested. The agreement relates to offshore exploration blocks which,

it is hoped, will deliver four-million cubic metres of gas every day to

the gas-to-liquids refinery at Mossel Bay (Mossgas). The refinery has

been struggling to find new feedstock for some time, and a great deal

of money was spent on a project called Ikhwesi, which was supposed

to find gas.

The South African oil industry generates annual sales of about R365-

billion. Companies in the oil sector include global giants such as Engen,

BP, Shell, Total and Caltex. In 2016 Chevron began the process of exiting

South Africa. Sinopec of China has bought a 75% share in Chevron

SECTOR INSIGHT

A Russian exploration company

will supply gas to

Mossgas.

• A R200-million helium

plant is under construction.

South Africa for R12.6-billion.

Assets include a lubricants plant

in Durban, an oil refinery in Cape

Town and 820 petrol stations

across South Africa and Botswana.

South Africa’s own global giant,

Sasol, is a major player in the oil

sector and the only player in the

petrochemicals sector.

69 SOUTH AFRICAN BUSINESS 2018


OVERVIEW

Assets

Most of the oil that feeds the country’s four crude-oil refineries is imported.

In addition to South Africa’s crude-oil refineries, natural-gas conversion

plant, coal-to-fuel and gas-to-liquid crude-oil refineries, Sasol produces

fuel from coal at its Secunda facility and PetroSA has the country’s only

gas-to-liquid (GTL) facility at Mossel Bay.

The Chevref oil refinery in the Cape Town suburb of Milnerton produces

about 110 000 barrels a day of South Africa’s total production of 703 000

barrels a day. The Natref refinery is strategically placed at Sasolburg near

to the industrial hub of southern Gauteng. The petrochemical complex

at Sasolburg is a major national asset. One of Sasol’s many companies,

Sasol New Energy, has been working on moving the group away from

reliance on fossil fuels. The Natref refinery is a joint venture between Sasol

Oil (63.6%) and Total SA (36.3%). It is a technologically advanced facility,

which refines heavy crude oil into petrol, diesel, commercial propane, jet

fuel and bitumen. The capacity is 92 000 barrels per day.

KwaZulu-Natal hosts two oil refineries which jointly account for more

than 300 000 barrels of refined crude oil that South Africa produces. South

Africa’s biggest refinery is Sapref in Durban. Owned jointly by Shell SA

Refining (25%), Thebe Investments (25%) and BP Southern Africa (50%), it

has a capacity to produce 180 000 barrels per day. The refinery also makes

propylene feedstock, solvents, sulphur, asphalt, industrial processing oils

and liquefied petroleum gas.

The Enref refinery owned by Engen can produce 135 000 barrels per

day. This sophisticated refinery can convert light and heavy crude oil into

high-value products that include jet and diesel fuel, solvents, bitumen,

sulphur, bunker oil and aviation gasoline.

Safor is a base-oil production facility (jointly owned by Engen,

Caltex and Total but operated by Engen) that produces 45% of

Southern Africa’s base oils. Engen also owns the adjoining Lube Oil

Blend Plant, which produces more than 72-million litres of finished

lubricants annually.

A new facility has been added to the oil and gas sector in Cape Town,

a 118 000m³ fuel storage unit. The Bergan terminal comprises 12 tanks

located on the Eastern Mole of the Port of Cape Town.

New gas policies and fields

The Liquefied Natural Gas Independent Power Producer Procurement

Programme (LNG IPPPP) is part of the broader programme of the

Department of Energy which encourages private investment in renewable

energy, namely the Renewable Energy Independent Power

Producer Procurement Programme (REIPPPP). The total allocated

to gas-to-power in the national power plan is 3 726MW, of which

3 000MW is for LNG.

The first two sites identified

by the DoE for LNG plants are

Richards Bay (2 000MW) and the

Coega IDZ (1 000MW). To produce

its allocation of 2 000MW, the

KwaZulu-Natal plant would have

to use a million tons a year of liquid

natural gas (LNG).

In 2016 the Department of

Trade and Industry (dti) established

a Gas Industrialisation Unit

(GIU) which will make plans to exploit

the huge fields of natural gas

off the coasts of Mozambique and

Angola and boost industrialisation

in South Africa.

At Coega, it is estimated

that the new plant will inject

R25-billion into the Eastern Cape

economy. Large commercial gas

companies such as Afrox and

Air Products have plants within

the Coega IDZ. First Automobile

Works has established its motor

assembly plant next door to Air

Products’ air separation unit, allowing

it ready access to the industrial

gas that it needs. Liquid

oxygen and nitrogen play important

roles in the metals processing

sector for cutting and laser

applications.

Companies like Hydra Arc are

big gas users in welding operations

as well as the construction

and refinery maintenance that

they undertake in the petrochemical,

construction, mining

and power generation industries.

The Coega IDZ is also home to

the country first gas-fired plant to

be run by a private consortium.

The Dedisa power plant is controlled

by a consortium including

Engie, Legend Power Solutions,

Mitsui (Japan) and the Peaker

Trust. A new gas turbine open

SOUTH AFRICAN BUSINESS 2018

70


OVERVIEW

cycle power plant near Durban

has been commissioned by Avon

Peaking Power.

The regulator and promoter of

oil and gas exploration in South

Africa, Petroleum Agency South

Africa, has awarded coalbedmethane-gas

exploration rights

in KwaZulu-Natal and natural

gas exploration permits in the

Free State. Early data suggests

that the Free State has 23-billion

cubic feet of gas underground. If

this is confirmed, then four new

power stations could be built in

the province.

A major investment by Afrox

will see a R200-million plant built

to extract helium in the Free State.

Afrox will operate the plant and sell

the helium and compressed gas.

Tests have begun in the Karoo

in search of shale gas. Estimates

vary greatly and detailed testing

still needs to be done to

determine whether there are

viable quantities available.

Environmental concerns must

also be addressed.

A new addition to South

Africa’s pipeline network is a

pipe to get natural gas from

Mozambique to Gauteng.

SacOil’s R90-billion project aims

to deliver gas to Johannesburg

and the nearby towns in 2020.

The Port of Saldanha in the

Western Cape launched a new

open-access liquefied petroleum

gas (LPG) plant in 2017. It will be

run by Sunrise Energy.

The major economic sectors

using gas are the metals

sector and the chemical, pulp

and paper sector. Brick and

glass manufacturers are also big

consumers.

GOING BIG, GOING LOCAL

A large new tandem horizontal boring mill installed in Mpumalanga

has given the local steel fabrication sector a welcome boost. The

sophisticated boring mill not only gives Hydra Arc the capacity

to do work that previously could only be done overseas but the

company’s machine shop expansion allows it to take on apprentice

machinists, providing much-needed training in valuable skills.

Installed at the Sky Hill fabrication facility in Secunda, the mill’s

two rotary platforms can manage loads of 60 tons and 40 tons.

The machine can also handle more delicate work and can automatically

change tools inside the milling head.

A great deal of research and development went into the project,

with the result that the mill’s two machines can work together

or individually, giving great flexibility to managers.

The mill was made by TOS Varnsdorf of the Czech Republic, who

sent mechanical and installation engineers to South Africa to

assist Machine Tool Promotions, who oversaw the installation

process.

Hydra Arc is now able to do big projects which previously had to

be contracted to companies outside of South Africa. This will

have a positive effect on the local economy and on employment.

ONLINE RESOURCES

Independent Power Producers Programme: www.ipp-projects.co.za

National Department of Trade and Industry: www.thedti.gov.za

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

Petroleum Agency SA: www.petroleumagencysa.com

South African National Energy Association: www.sanea.org.za

South African Petroleum Industry Association: www.sapia.co.za

Transnet Pipelines: www.transnetpipelines.net

SOUTH AFRICAN BUSINESS 2018

72


Service that

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Air Products South Africa (Pty) Limited manufactures, supplies and distributes a diverse portfolio of

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TRANSNET PIPELINES MULTI-PRODUCT

PIPELINE: Enabling South Africa's Future

Transnet Pipelines owns, operates and maintains a 3 800km network of high pressure underground petroleum

and gas pipelines. Established in 1965, the company plays a strategic role in the supply of petroleum products to

South Africa's economic hub in Gouteng. To ensure security of supply, a new 24-inch Multi-Product Pipeline (MPP)

was constructed and commissioned in 2012. Lennie Moodley, Chief Executive ofTransnet Pipelines, discusses the

latest milestone in the MPP project.

Is the Multi-Product Pipeline working to

expectations? Yes, since it was brought into operation

in January 2012 it has transported over 18 billion litres

of diesel. We have now successfully brought it into

multi-product operation. In addition to transporting

two grades of diesel (D50 and D500) we are now

transporting 93 and 95 unleaded petrol as well as

jet fuel.

Can you put a figure on the number of road trips (or

number of tankers) that have been reduced because

of the introduction of the Multi-Product Pipeline?

Not directly as all modes of transport are required

to service the market, pipelines are ideal for large

volumes and long distance, whilst road and rail service

other areas. We can however say that if we did not have

the Multi-Product Pipeline you would need an

additional 1 ODO road tankers per day between Durban

and Gauteng.

What are current volumes of throughput in the

various categories? The capacity of the line is 1 080

cubic metres per hour and the average throughput is

approximately 115 million litres per week. The volume

split per product depends on weekly market demand

and varies from week to week.

Is TPL on target with regard to these volumes? The

volumes are slightly behind target, but this is reflective

of the lower demand in the market due to the slowdown

of the economy. From a capacity and operational point

of view TPL is able to meet the demand required by its

customers.

And the balance sheet? Pipelines is currently forecast

to exceed financial targets in the 2017 /18 year:

• Revenue of R4.2bn

• EBITDA margin of 74%

• Return on assets of 6.7%

• Asset base of R36bn excluding capital work in

progress

• Cash generated from operations of R3.l bn

Please tell us about your journey to the CEO's desk?

What was your first job at TPL? Was there a moment/

event where you thought, "Yes, pipelines is where I

want to be"? My journey started in Transnet Pipelines

in 2002 as an Executive Business Manager in charge

of operations and has evolved through various roles

since then. From the onset I knew this is where I want

to be and approached each day with enthusiasm and

determination. Pipelines is a fascinating. complex and

challenging environment. In 2002, Transnet Pipelines,

then known as Petronet, transmitted 334 million m 3

of gas and 13.8 billion litres of fuel and our revenue

was R719 million. In comparison to the previous year.

we have transported 17 billion litres of fuel and our

revenue was R4 285 million. I have aspirations of

growing the company even further, with specific focus

on diversification into the liquefied natural gas (LNG)

market and expanding our footprint into Africa.

Do you feel that your stint in Operations gives you

an especially good perspective on the complexities

of the business? Yes, it provides good insight into

the operational and technical aspects of

the business. It also provided great

understanding into the various roleplayers

in the market segment and

the number of challenges faced

by the industry. Furthermore, it

empowers me to challenge views

and make informed decisions.

How much success is TPL

having in terms of applying

the relatively new policy

of diversifying revenue

streams? Please expand on

which are working best, and give

examples (eg, training

in Africa). Our initiatives to

diversify our revenue streams

are at an infancy. However

we are confident that we will

achieve our aspirations in

the medium term. In addition

to becoming a key player in

the LNG market, Pipelines is

also committed to operate and

maintain pipelines, operate and

maintain terminals in other

African countries and provide

pipeline-specific training to the

oil and gas Industry.


How do you ensure security of supply? Our biggest

challenge is to stay ahead of market demand and

ensure efficient operations. We meet regularly with our

customers to understand their market and needs and

execute our plan accordingly, thus ensuring that their

market demands are met and facilitating security of

supply. We have pertinent KPls that we track to ensure

our performance is in line with what the market

requires. In addition to just the pipeline as a mode of

transport, we also use rail, our Transnet Value CC

initiative, whereby areas not serviced by pipelines are

still serviced by rail; one such example is the supply

of jet fuel to ORTIA, whereby both rail and pipeline

is used.

How do you protect pipes from corrosion? In addition

to the pipeline being coated, we have an extensive

cathodic protection programme in place that monitors

and deals with stray currents thus preventing

corrosion. We also do periodic "intelligent pig"

investigations to check the integrity of the pipeline.

What risk is involved for the environment through

which pipelines pass? Pipelines by their nature are a

safe, environmentally friendly mode of transport. The

biggest threat is unauthorised third party activities,

encroachments and attempted pilferage. In saying this,

incidents do happen, however our track record to date

is exemplary and we have an emergency response plan

to react to any incident together with all stakeholders.

Are you getting the rates you want from the National

Energy Regulator of South Africa {NERSA}? Yes, the

Regulator has an approved tariff methodology which

we comply with that allows us a fair return on assets

managed.

Please outline TPL's skills development programmes?

Most of our programmes are focussed on pipeline

specific requirements both technical and operational.

But we also have specific courses such as the "Women

in Pipelines" course which we are now going to expand

to all employees in Pipelines to equip them with skills

that will allow them to grow personally and in their

careers, with specific focus on diversity, finance

management, self-esteem and leadership skills.

Constructed according to international standards and best practices, the pipeline

runs underground over 555km from Durban to Heidelberg. Developed to ensure

security of fuel supply for the industrial heartland of our country, both now and

into the future, the pipeline is currently transporting four types of fuel: Diesel 50,

Diesel 500, ULP 93, and ULP 95. It can transport 1 million litres of fuel per hour,

and with future investments this can increase to 3 million litres per hour.

We're committed to fueling our country's economic hub for many decades to come.

,.

1RANSNEr

...

pipelines

www.transnetpipelines.net


OVERVIEW

Energy

South Africa’s energy mix is becoming more diverse.

Between November 2011 and July 2016, South Africa received

commitments of investments to the value of nearly R200-

billion through an innovative and efficient programme

which encouraged private investment into the South

African power generation sector. The Renewable Energy Independent

SECTOR INSIGHT

Private investors have put

nearly R200-billion into

renewable energy.

SOUTH AFRICA: INSTALLED CAPACITY

Eskom: legacy coal

plants

Eskom: peaking

power

Decommissioning from

2020

Gas, pumped storage, hydro

37 754MW

5 819MW

Eskom: new coal Medupi and Kusile 9 564MW

Nuclear Koeberg, Cape Town 1 940MW

Eskom: RE

100MW

IPP, renewable

energy

REIPPPP

3 314MW

Other IPPs

1 713MW

Total

60 204MW

SOURCE: ESKOM INTEGRATED ENERGY REPORT, 2017

Private Producers Procurement

Programme (REIPPPP) came

about in a hurry because the

lights went out in South Africa –

literally – in 2008. Officials within

Treasury were mandated to set up

a programme to attract private

investors.

According to figures released

by the Department of Energy,

the REIPPPP by 2016 had not only

delivered multiple millions in investments,

but also created more

than 30 000 jobs and benefited

local community development to

the tune of R256-million.

SOUTH AFRICAN BUSINESS 2018

76


OVERVIEW

Whereas national utility

Eskom’s supply of power was insufficient

for a booming South

African economy in 2008, the

global economic slowdown that

kicked in later that year meant

that by the time independent

producers were selling to the

grid (also controlled by Eskom),

electricity demand was much

reduced. Eskom itself had been

adding power to the grid and

improving the maintenance of

its existing fleet.

Eskom is investing heavily in

two new coal-fired power stations.

Medupi and Kusile power

stations will jointly generate

9 564MW. These factors resulted

in Eskom refusing to sign any more

power purchase agreements with

independent producers.

Although Eskom’s shareholder,

the Minister of Energy, said that

the REIPPPP was still government

policy, it was not until the third

quarter of 2017 that the process

was started again, but this time

with a limit imposed by the state

on how much could be charged

for energy in new contracts. Many

in the renewable energy sector

believe that the price cap of 77

cents per kilowatt-hour (kWh) will

deter many possible investors and

make small-scale renewable energy

projects (such as small-hydro)

impossible.

One of the consequences of

the policy uncertainty of 2016-

2017 was that DCD Group sold

its share in the Coega IDZ-based

DCD Wind Towers joint venture

for R1.

South Africa’s electricity comes

mainly from Eskom’s coal-fired

power stations. The Koeberg

WATERPROOFING PROMOTES ENERGY

EFFICIENCY

With energy efficiency being a vital part of all new building codes,

having a cool roof coating pays off in a number of ways. With the

surface and the interior of the building being cooler, air-conditioning

costs are reduced, the environment is better off, the building

is code compliant and incentives and tax breaks could come into

play. Roof coatings available from Topps make all of this possible.

A cool roof acts like a sunshade in the windshield of a car. The

white coating deflects the sun’s rays away from the building. An

industrial grade cool roof maintenance coating like Topps Seal®

brings the additional benefit of extending the life of the roof.

In Knoxville, Tennessee, a retail store recorded 24.5% energy

reduction after the application of Topps Seal®. Topps Seal® is

triple-certified, by Miami-Dade County (US), CRRC and Energy

Star. Energy Star-qualified products can reduce the amount of

air conditioning needed in buildings and can reduce peak demand

by 10%-15%. A cool roof reduces greenhouse gases and keeps the

building cooler inside by deflecting the sun’s rays.

Some government and local utilities offer incentives and tax

breaks for roofs that qualify as a “cool roof” along with tax

deductions for performing roof maintenance.

Topps Seal® won’t freeze and it won’t wash off, saving unwanted

expenses and mess.

Use of the world’s leading repair product, Topps Polyprene®, ensures

that what is sealed remains sealed. With roofing materials

expanding and contracting at different rates, stresses develop on

seams and the areas around penetrations – vents, signs, flashings,

pitch pockets, joints and rooftop equipment.

Heavily fibred Polyprene won’t crack when it gets cold. It stays pliable

permanently and stops leaks from recurring. It has been voted

the #1 repair compound among professional roofers. Creating a

reliable seal promotes building efficiency by keeping the building’s

heat within the envelope, reducing costs by avoiding heating loss.

The same is true for cooling systems. A long-lasting seal also

contributes to reducing maintenance costs.

77 SOUTH AFRICAN BUSINESS 2018


OVERVIEW

nuclear power station supplies about 5% of the nation’s needs and has

been operating since 1984.

South Africa’s long-term energy plan is underpinned by the Integrated

Energy Plan of which the electricity-specific Integrated Resource Plan

(IRP) forms a part.

There is considerable debate about the methodologies and scenarios

which underpin the Draft 2016 Integrated Resource Plan Base Case.

The South African Renewable Energy Council represents four industry

associations, one of which is the South African Photovoltaic Industry

Association (SAPVIA). The CEO of SAPVIA, Mike Levington, had this response

to the new plan: “The biggest issue with the draft IRP2016 is that

it artificially limits the amount of renewable energy that can be added

to the grid over the next 20 years with no rationale for imposing them.

Under this constrained scenario there will be greater allocations given to

nuclear and coal in the IRP at significantly more expensive cost than new

solar and wind energy.”

Proponents of coal and nuclear argue that there are some hidden costs

that renewable energy advocates don’t reveal. They also argue that coal

and nuclear are necessary to provide stable supply. There are also questions

about the ability of the grid to cope with multiple sources of energy.

Two recent reports (a “Flexibility Study” and a CSIR study) have concluded

that South Africa’s grid could be flexible enough and renewables supported

by gas could provide base load.

ONLINE RESOURCES

IPP Projects: www.ipp-projects.co.za

National Energy Regulator: www.nersa.org.za

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

South African National Energy Association: www.sanea.org.za

South African Nuclear Energy Corporation: www.necsa.co.za

South African Photovoltaic Industry Association: www.sapvia.co.za

South African Renewable Energy Council: www.sarec.org.za

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

Strengths

The Northern Cape is South Africa’s

hotspot for solar power and the

Eastern Cape has attracted most of

the approved wind power projects.

Although KwaZulu-Natal

received few REIPPPP bids,

the Richards Bay Industrial

Development Zone is positioning

itself to be a hub for renewable

energy, with the proximity

of the rich gas fields off the shores

of Mozambique a major selling

point. The huge forestry, timber,

paper and pulp industries of the

province can provide feedstock for

the renewable energy sector.

KwaZulu-Natal’s most widely

grown crops, sugar cane and sugar

beet, are among the most efficient

and cost-effective feedstock for the

creation of biofuel.

The Provincial Government

of the Western Cape is another

entity prioritising energy and this

includes generation (gas, biogas

and renewables), distribution and

energy-saving. In the REIPPPP, the

Western Cape has so far been allocated

11 projects, six wind projects

and five photo-voltaic solar power

projects.

Western Cape Minister of

Economic Opportunities Alan

Winde says that Cape Town alone

has 2 000 private producers. These

range from a solar panel on the

roof of a single household to major

installations in the Waterfront.

Winde is lobbying for the allocation

of a gas-to-power plant to

Saldanha Bay where there are already

bulk power consumers like

ArcelorMittal Steel. This could be a

catalyst for the use of gas in many

other sectors.

SOUTH AFRICAN BUSINESS 2018

78


Pele Natural Energy

INTERVIEW

Managing Director Obakeng Moloabi explains how his

company is expanding into other African countries.

Obakeng Moloabi

What is the core mandate of Pele Natural Energy?

To develop, own and operate traditional fuel power assets in the drive

for inclusive growth.

How do you go about identifying possible projects?

Establishing customer demand is the cornerstone of every project.

Availability of feedstock and project viability from a technical and

financial perspective is the next element to consider. Social impact

becomes the final and most important consideration as this will speak

to the sustainability of the project.

Please tell us about your first plant being developed

beyond South Africa’s borders?

We are almost at commercial operations for a gas-to-power 40MW

project located in Mozambique.

BIOGRAPHY

Obakeng Moloabi is a founding

member of the Pele Energy

Group and the Managing Director

of the conventional power

subsidiary, Pele Natural Energy.

Obakeng holds an undergraduate

degree in Investment

Management from the University

of Johannesburg. Under

Obakeng’s leadership, Pele

Natural Energy has developed

its presence across Southern

Africa with an asset portfolio

of 340MW, 40MW in Mozambique

(commercial operations)

and 300MW (financial closed

asset) in South Africa.

How much generating capacity is under development,

and what are your goals in this regard?

We have 40MW under construction, 300MW expected to reach

financial close in the next few months and 1 000MW in development.

79 SOUTH AFRICAN BUSINESS 2018


INTERVIEW

Knowledge Pele

Knowledge Pele Managing Director Fumani Mthembi

shares her company’s commitment to using

knowledge for economic transformation.

Fumani Mthembi

BIOGRAPHY

Fumani Mthembi is a founding

member of the Pele Energy

Group and the Managing Director

of its research and development

subsidiary, Knowledge

Pele. She holds an undergraduate

degree in Politics, Philosophy

and Economics from UCT

and an MA Science, Society

and Development from Sussex

University. Under Fumani’s

leadership, Knowledge Pele

has grown into a reputable firm,

leading development thought

and practice, particularly in the

renewable energy sector and

related host communities.

Please explain the concept of linking power and knowledge.

The philosophical premise of our company is that it is our duty to make

a material contribution to the imperative of structural transformation.

We understand that power and knowledge are the bedrock of the

modern social structure. Therefore, through our research division, we

focus on surfacing the knowledge of those who have been historically

silenced to ensure that they can reclaim their power by reassuming

their rightful place as architects of social progress.

Please explain the concept of “community industrialisation”.

Community Industrialisation is one of Knowledge Pele’s instruments

for undoing the historical construct that is the poverty of the majority.

It is common knowledge that the majority live in communities that are

best described as labour reserves, spaces of consumption with limited

production capabilities. Knowledge Pele’s community industrialisation

division is focused on recreating these township, peri-urban and

rural communities into thriving, knowledge-based economies. We do

this by researching the economic development possibilities of these

communities, understanding the types of industries that can emerge

and the related knowledge and skills necessary to sustain them. This

work, along with an articulation of the type of future that communities

seek for themselves, forms what we then identify as the community

industrialisation strategy. We then work with our clients to invest aggressively

in training programmes at the community level, for which

we are SETA-accredited. We structure co-investment vehicles between

industry and communities to build local industries that are both run

and owned by local community members. In the long run our intention

is to build sovereign wealth funds for communities on the basis

of the portfolio of industrial assets that they will own.

Please tell us about your partnership with UCT?

We recognise that our work has policy relevance and therefore our

partnership with UCT is vital for ensuring that we remain in constant

dialogue with academics and policy-makers who share our concerns.

SOUTH AFRICAN BUSINESS 2018

80


Pele Green Energy

INTERVIEW

Renewable energy has enormous potential, according to

the Managing Director of Pele Green Energy, Gqi Raoleka.

Gqi Raoleka

BIOGRAPHY

Gqi Raoleka is a founding member

of the Pele Energy Group

and the Managing Director of

the renewable energy subsidiary,

Pele Green Energy, which

was founded in 2009. He has

a degree in Economics and

Econometrics and an Honours

degree in International and

Monetary Finance from the Johannesburg

University. Under

Gqi’s leadership, Pele Green

Energy has developed into

one of the largest Independent

Power Producers in South

Africa with a portfolio of over

850MW.

What are the key principles that underlie your business?

An unending commitment to excellence, value creation and effecting

structural change in the communities we provide power to.

Please explain the concept of new value creation?

The ability to build one’s own enterprise in contrast to only seeking

to acquire that which has already been created and is in circulation.

How important is research in community projects?

In the absence of research, there is limited to no knowledge. Without

knowledge there can be no development. Research is one of the key

tools towards the attainment of knowledge and the only tangible

answer to a community’s blueprint towards sustainable development.

Research forms the base upon which community projects will bring

about structural and meaningful change.

The patterns and propensity towards certain types of physical

and mental work styles that a specific community may have is best

uncovered through detailed and targeted research. This enables

industries to map their location based on the geographical spread of

the workforce they may require and fosters more effective involvement

and participation of the local community.

What are the proportions of RE in your portfolio?

Our renewable portfolio consists of 291MW of solar PV projects and

613MW of wind farms.

Where do you see the greatest growth potential?

The growth prospects across the wind and solar technologies is immense.

The reduction in prices of solar PV modules continues to fall

at a rapid rate; the economies of scale, optimisations and efficiencies

being reached are helping to keep the price reduction momentum.

Decentralised power generation represents the largest growth

prospect in the South African market. The decreasing costs of storage

together with the falling prices in PV modules are allowing large,

medium and small users of power the ability to consider alternate

independent power sources for their domestic consumption.

81 SOUTH AFRICAN BUSINESS 2018


PELE BRINGS POWER TO THE PEOPLE

Together, THE PELE GROUP of companies complement each other in driving structural change

and delivering essential services. The building of sustainable and reliable electrical infrastructure,

to light up and brighten our continent, confirms that they understand that power is about people.

With their huge investment in infrastructure and development programmes they are deeply

invested in the sustainable growth of African communities.

Through Knowledge And Power – Rea Ko Pele

PELE ENERGY GROUP

PELE ENERGY GROUP (PEG) is a wholly

black-owned company, comprising of three

subsidiaries. PEG was founded in 2009 by

five young black South Africans with the

dream to contribute to the structural reform of

the African continent. An objective they

contribute to is making freedom tangible,

through their operating subsidiaries:

Pele Green Energy, Knowledge Pele

and Pele Natural Energy.

PELE GREEN ENERGY

PELE GREEN ENERGY (PGE) is an independent

power producer that develops, owns and operates

renewable-energy power-generation plants and

solutions. Through PGE, the group aims to deliver

electrical power that is clean and safe to

households and industries. It is also invested in

creating off-grid solutions that can be delivered to

geographically remote communities at affordable

prices. PGE owns and operates 895MW of

renewable-energy power plants, including wind,

solar PV and concentrated solar power technology.


PELE BRINGS POWER TO THE PEOPLE

KNOWLEDGE PELE

KNOWLEDGE PELE (KP) is a research and development

company through which the group works to transform township,

peri-urban and rural communities into thriving economic hubs.

KP gives a voice to the needs and assets of thousands of

historically excluded community members, and leverages its

position to implement development programmes on behalf of

public and corporate social investors. It delivers socio-economic

and accredited enterprise-development programmes across the

country and currently they are working in the Western Cape.

PELE NATURAL ENERGY

PELE NATURAL ENERGY (PNE) develops, owns and operates

base load power stations. The latter is defined as power that

can be generated at all hours of the day; as well as easily

dispatched to match demand. Through PNE, the group is

contributing to the continent-wide need for stable,

grid-connected power. PNE is part of the consortium that owns

the Kuvaninga project, a 40.29MW natural gas-fired powered

plant in Mozambique. It was also announced as the preferred

bidder for the 300MW Khanyisa coal-fired power plant to be

located in Mpumalanga.

3 Centex Close, Brooklyn Place, Eastgate

Kramerville, Sandton

+ 27 11 262 0515

info@peleenergygroup.com

www.peleenergygroup.com


OVERVIEW

Water

Water infrastructure is a priority.

In 2017/18 the National Department of Water and Sanitation will

spend R12.5-billion on dams, water transfer schemes and bulk

distribution. Improving and expanding water infrastructure are

key elements to ensuring water security in a water-scarce country.

The completion of the De Hoop Dam in eastern Limpopo means

that people living in small municipalities can now expect bulk water

delivery. The Trans Caldeon Tunnel Authority (TCTA) is responsible

for seeing that bulk water supplies are laid on, but making the local

connections and physically delivering the water is up to municipalities

and water boards.

The De Hoop Dam is the centrepiece in the large Olifants River

Water Resource Development Project which is transforming the water

environment for industrial, commercial and private users. The Olifants

River System feeds the region that is South Africa’s greatest producer

of citrus and subtropical fruits, and supplies many platinum mines

with vital water.

A long drought was finally broken in most of the country in late

2016, but the Western Cape continues to experience severe shortages.

Tenders for desalination in various guises (including barges in Cape

Town harbour) have been issued.

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

the nation’s municipalities is lost, at a cost of R7-billion per year. This

presents an opportunity for companies to provide better pipes and

SECTOR INSIGHT

The De Hoop Dam has been

completed.

smart meters. Government plans

to arrest this trend include a training

programme for plumbers

and artisans.

Many small municipalities

and water boards have not been

able to properly manage their

water facilities. In response, a

new national strategy gives a

bigger role to well-resourced

water boards such as Umgeni

Water and Sedibeng Water. Rand

Water has expanded its original

footprint and now serves an area

which includes Gauteng, and

parts of Limpopo, North West,

Mpumalanga and the Free State.

SOUTH AFRICAN BUSINESS 2018

84


OVERVIEW

The national Minister of Water

and Sanitation is the shareholder,

representing the government of

South Africa.

In terms of the National Water

Resource Strategy, catchment

area management agencies

have been established to oversee

water resource management on

a regional basis. The Imkomati-

Usuthu Catchment Management

Agency covers Mpumalanga,

parts of Limpopo and part of the

Kingdom of Swaziland. Another

example of a CMA is the Breede-

Gouritz Catchment Management

Agency in the Western Cape.

Among the responsibilities of

a CMA are checking that water

is being used lawfully, allocating

resources to parties along a

river (farmers, municipalities or

businesses), long-term planning,

dam safety and checking on the

quality of water.

In the 1950s, the Orange River

Project delivered water from the

Orange River to citrus farmers

in the far-away Eastern Cape.

In a mostly dry country such as

South Africa, this kind of transfer

scheme is the norm.

South Africa’s river systems

are mostly not where its people

are, so 80% of Gauteng Province’s

water is imported, mostly from

the Vaal River, which is supplemented

by complex transfers

from the Thukela River and the

Lesotho Highlands Water Project,

an ongoing project that is behind

schedule. The Vaal basin, which

serves the most populated and

industrialised part of the country

including Johannesburg, receives

water from seven inter-basin

transfer schemes.

SBS TANKS

SBS® Water Systems (Pty) Ltd, the visionary company that pioneered Zincalume

tanks to the South African marketplace in 1998 and the proud manufacturer of

SBS Tanks®, will be celebrating its 20th year of unparalleled service excellence as

the premium liquid storage solution for multiple applications.

SBS Tanks® are the preferred liquid storage solution in the South African mining,

municipal, fixed fire protection, water conservation and food and beverage industries.

What sets the company apart is the ability to go beyond supplying a liquid

storage solution. It engages on all levels of a project from brief and design through

to completion, ensuring not only a world-class installation, but a positive client

experience. This proficiency is key to the company’s high level of return business.

The SBS® range of tanks has been engineered, designed and developed from

years of practical experience in the water storage industry and continues to improve

from strength to strength. SBS® Water Systems (Pty) Ltd is ISO 9001:2015

accredited. The company is also proudly affiliated to various professional bodies

and organisations.

The company operates from a 5 000m² manufacturing facility in Pinetown, Durban.

The City of Durban also boasts the largest and busiest port on the African continent

and the company’s proximity to this facility is extremely advantageous in terms of

export logistics. SBS® services South Africa and the African continent and has a large

network of approved distributors worldwide. SBS® Water Systems was the proud

recipient of the 2016 Durban Chamber of Commerce Exporter of the Year Award.

SBS® Water Systems (Pty) Ltd employs 60 highly skilled staff members. The

company prides itself on continual improvement and staff training ranks high on

the company’s corporate objectives.

SBS® strives to manufacture and supply a comprehensive range of world-class

liquid storage solutions to a diverse market. The company endeavours to optimise

services by delivering the right product and service on time and within budget.

SBS® undertakes to provide technical assistance and after-sales service. The

company maintains an ethical and honest business practice.

ONLINE RESOURCES

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

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

Trans Caledon Tunnel Authority: www.tcta.co.za

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

85 SOUTH AFRICAN BUSINESS 2018


Grundfos

A global leader in efficient pump solutions

Grundfos is a global leader in advanced pump

solutions and a trendsetter in water technology.

We contribute to global sustainability with focus

on clean water, sanitation and climate change

by pioneering technologies that improve the

quality of life for people and show concern for

the planet. It is our commitment to being

responsible, thinking ahead and innovating that

enables us to meet all our clients’ needs on all

levels.

Water gives life to people, animals and plants

and is a necessity for industry to maintain

production. Water is essential when heating and

cooling buildings, and is also used to drain off

waste products. Therefore, anywhere where

water is a coveted resource, or needs to be

drained away, Grundfos plays a central role. We

specialise in circulator pumps for heating and

air-conditioning as well as other centrifugal

pumps for industrial applications, water supply,

sewage, dosing and disinfection and fire

protection.

In addition to pumps and pump systems,

Grundfos develops, manufactures and sells

energy-efficient standard and submersible

motors and state-of-the-art electronics for

monitoring and controlling pumps. With

electronic built into the pumps, they become

“intelligent”, i.e. capable of assessing the

current demand for water and adapting their

performance accordingly – all of which results

in a significant reduction in energy

consumption.

Grundfos has developed a number of

groundbreaking technologies within a

sustainable perspective; for example Grundfos

BioBooster which effectively cleans industrial

wastewater at source; and Grundfos LIFELINK,

AQtap water dispenser unit and AQpure a

solar-powered water treatment unit for

drinking water in the poorest areas of the

world.

Fast Facts

• Grundfos developed and produced the first

solar power driven borehole pump range.

• Grundfos is a global leader in advanced pump

solutions and a trendsetter in water

technology.

• Grundfos produces more than 16 million

pump units annually

• Grundfos is a full systems solution provider –

Water Supply, Wastewater & Water Treatment

• Grundfos introduced the first integrated drive

technology onto pump motors

GRUNDFOS (PTY) LTD

Physical address: 16 Lascelles Road,

ZA-1609 Germiston

South Africa

Postal address: P O Box 1456

Bedfordview

South Africa

Tel: (+27) 10 248 6000

Email: info_za@grundfos.com

Website: www.za.grundfos.com


OPTIMISED

SOLUTIONS

FOR THE ENTIRE

WATER CYCLE

OUR OPTIMISED SOLUTIONS AND SERVICES COMPLEMENT AN UNRIVALLED FOCUS ON

RESOURCE EFFICIENCY, DESIGN VERIFICATION AND PROJECT CONSULTANCY AND EXECUTION.

THAT IS WHAT YOU GET FROM GRUNDFOS, A FULL-LINE SUPPLIER OF PRODUCTS AND

SOLUTIONS FOR ALL WATER UTILITY APPLICATIONS.


OVERVIEW

Engineering

The renewable energy sector holds great promise for engineering firms.

Several South African engineering firms are restructuring,

aiming to become more flexible and better able to pursue

projects in other countries in Africa and overseas.

South Africa has many vertically integrated engineering

and consulting companies that offer a wide range of services. South

African companies have a presence in South American and Australian

mining, African energy and infrastructure and Middle Eastern construction

and project management. All of the biggest construction

companies (including Aveng, Aurecon, Raubex and WBHO) are multidisciplinary

companies. WorleyParsons has a minerals, metals and

chemicals project cluster (and a presence in 17 cities) in Southern

Africa. Its other major divisions are hydrocarbons and infrastructure.

Group Five, which relies on its engineering and construction division

for 80% of turnover, announced in 2017 that it was to split the

division. The group has more than 8 500 employees in Africa and is

active in Europe.

As part of its plan to become a diversified project engineering, procurement

and construction group in specific natural resource sectors,

Murray & Roberts sold Murray & Roberts Infrastructure and Building

Platform to Firefly Investments for R314-million in 2016. Investors in

Firefly include the Government Employees Pension Fund. The sale does

SECTOR INSIGHT

South African engineering

companies are restructuring.

• The WorleyParsons

Mining Centre of

Excellence is based in

Johannesburg.

not include a share in the consortium

which runs the Gautrain.

Whereas Murray & Roberts had a

focus on construction and mining

in South Africa, the drive is

now more international and focussed

on four sectors: power,

oil and gas, metals and minerals,

and water.

While there are many large

projects to occupy engineers

in South Africa, the level of

SOUTH AFRICAN BUSINESS 2018

88


iX Engineers

INTERVIEW

CEO Lebo Leshabane reflects on prospects for growth in a

number of engineering sectors in South Africa.

Lebo Leshabane

How and when did iX Engineers come into existence?

iX Engineers is a product of a merger between WorleyParsons

Infrastructure business and Black Jill’s Engineers Consulting business.

The merger took place in 2016. I was the founder and Managing Director

of Black Jill’s Engineers, which I started 10 years ago.

What is the role of women in the business?

Women play a role in all levels of management and operations from

the board, Exco and other management positions. Black women own

36% of the company and overall, we are sitting at 37.5%.

BIOGRAPHY

Lebo Leshabane is a Civil Engineer

with 15 years’ experience

in infrastructure delivery,

project management and

business management. With

a BSc. Eng. Civil (Hons) from

Wits University and diplomas

in business management and

engineering (GDE), she worked

for a consulting engineering

firm, Transnet Freight Rail and

South African Airways before

becoming founder and Managing

Director of Black Jill’s Engineers.

She sat on the Board of

Spectrum Asset Management

Company and the Gauteng

Partnership Fund (GPF) and is

an ECSA council member.

What is the focus of your business?

We are a multi-disciplinary engineering company, and we participate

in all sectors: water, roads, sanitation, buildings, power and asset management

and HSE. We are also broadening our focus to turkey projects

due to clients requests and preferences, therefore we’re partnering

with construction companies to offer turnkey solutions.

What are the prospects for the infrastructure sector?

In the short term the market is under some pressure. We see good

prospects in the water, and waste-water treatment sectors. We’re

also working on some desalination projects to address the current

water shortages.

Any other sectors showing potential?

Integrated human settlement development where you don’t only

provide housing but all the supporting services. Shopping centres,

clinics, office space and light industrial, all within the same developments

are becoming more and more popular.

Describe some of your other key projects.

We have worked on the Kusile Power Station and a new airport, which

was built from scratch at St Helena Island. Also the Mokolo Crocodile

Water Augmentation Scheme in Limpopo, Gautrain Phase 1 and the

Vale Rail Line in Mozambique.

89 SOUTH AFRICAN BUSINESS 2018


OVERVIEW

investment in infrastructure by

the state has not been at levels

that were expected in the

years since South Africa hosted

the 2010 World Cup. With slow

growth, national freight and logistics

company Transnet has not

been able to pursue its R300-

billion infrastructure programme

at the speed that it wanted to.

Aspects of the programme,

such as the acquisition of locomotives,

are going ahead and the expansion

programmes of Gautrain

and the Passenger Rail Agency

of South Africa (PRASA) are also

keeping engineers busy. Transnet

Engineering’s mechanical workshop

complex at Koedoespoort in

eastern Pretoria has been tasked

with making 90 locomotives.

The high-level specifications of

the modern locomotive are engaging

the intense focus of the

facility’s 3 692 employees. There

are seven business units located

at Koedoespoort, including a

foundry.

Transnet Pipelines recently

completed a sophisticated new

multi-product pipeline between

the coast and Gauteng. It operates

a 3 800km network of underground,

high-pressure petroleum

and gas pipelines throughout the

eastern parts of South Africa, as

well as the infrastructure and

property associated with them.

The Renewable Energy

Independent Power Producers

Procurement Programme has

created an entirely new industry

in less than seven years, with investment

of about R200-billion in

solar parks and wind farms. This

has created huge opportunities

for engineers of every sort. The

programme stalled in 2016 but is set to begin again in the fourth

quarter of 2017.

Two of the world’s largest coal-fired power stations are still under

construction in Limpopo (Medupi) and Mpumalanga (Kusile) and there

are several coal and platinum projects in both of those provinces that

are also sources of work for engineering companies.

The South African National Roads Agency Limited (Sanral) has a

good credit rating and it continues to pursue projects in all parts of

South Africa.

South Africa has one engineer to every 3 166 citizens, compared

to Malaysia where the figure is 543 citizens per engineer. The Skills

Development Amendment Act is intended to improve the situation.

Universities, universities of technology and companies are increasing

their focus on the training of engineers.

The Engineering Council of South Africa (ECSA) has started a programme

whereby trainees can earn certificates in specific disciplines

from a broader range of institutions. The qualifications will be in line

with the council’s Exit Level outcomes.

Gauteng’s long history in mining has given its engineers decades

of experience in that field and they have developed over the years

into highly competent all-rounders. In its early days, the University of

the Witwatersrand (Wits) was called the South African School of Mines

and Technology. According to Mining Weekly, Wits and the University

of Pretoria enrol more first-year mining engineering students than the

combined enrolment of Canada, the USA, Australia and New Zealand.

The University of Pretoria’s Graduate School of Technology

Management (GSTM) offers a range of degrees and short courses,

including Masters in Engineering Management, Project Management

and Technology Management. At a national level, the National Skills

Authority (NSA) works with SETAs in carrying out the National Skills

Development Strategy (NSDS). The Human Resource Development

Council of South Africa (HRDCSA) is an over-arching body that aims to

give guidance to the many institutions working on skills development

and training. It is managed by the DHET.

Six of South Africa’s biggest construction companies have

established a R1.25-billion skills fund.

ONLINE RESOURCES

Consulting Engineers South Africa: www.cesa.co.za

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

National Department of Public Works: www.publicworks.gov.za

South African Consulting Engineering Firms: www.consultsa.co.za

Southern African Institution of Civil Engineering: www.civils.org.za

Transnet Engineering: www.transnet.net

SOUTH AFRICAN BUSINESS 2018

90


Transforming South Africa’s engineering sector

Building on the success of its Enterprise Development

programme, which saw a combined turnover growth

of the initial ED partner companies by 204% and the

creation of over 100 permanent and temporary jobs

in South Africa, WorleyParsons is collaborating with

small- and medium-sized black-owned enterprises to

jointly deliver services in the mining, water, energy

and infrastructure sectors, says WorleyParsons’ CEO

Denver Dreyer.

“As part of our unwavering commitment to

transformation, we are leading this agenda in

engineering across all sectors in South Africa and are

partnering with sustainable, empowered businesses

that are capable of growing with us,” says Dreyer.

“We do not consider transformation a ‘numbers

game’ in terms of BEE points. It is imperative for

long-term success as our traditional markets are

changing. Service providers have to adjust their

business models to reflect the transformation

agenda or else be at risk of becoming obsolete.

“The partnerships that we are creating are mutually

beneficial. We will evaluate the strengths that each

party brings to the table and identify where we can

help each other. These enterprises will benefit from

skills transfer and gain an understanding of how to

successfully deliver bigger projects with our support,

while we do our part to transform the engineering

sector in South Africa,” says Dreyer.

WorleyParsons RSA to their own client base, enabling

a mutually beneficial relationship of growth.

“We are entering into agreements with suitable

companies as equals for the benefit of both parties.

Transformation is the right thing to do for our

country, but on an enterprise level, it will also secure

a better future for all the people engaged in our

organisation, regardless of who they are. Through our

transformation partnerships, we will be able to land

bigger projects alongside those partners, which will

benefit everyone in our employ,” adds Dreyer.

Denver Dreyer

Chief Executive Officer of WorleyParsons RSA

Denver Dreyer is a vibrant executive with 20 years

of strategic business development and operational

experience in the chemicals, infrastructure, power

and hydrocarbons sectors in sub-Saharan Africa.

Denver is the CEO of WorleyParsons RSA, part of

the global WorleyParsons Group, and is responsible

for the company’s mining, hydrocarbons and

power operations based in Johannesburg, South

Africa. He is passionate about the meaningful

and sustainable transformation of engineering in

South Africa.

Referred to as the Enterprise and Supplier

Development (ESD) programme, WorleyParsons RSA

is also assisting the ESD partner companies with

branding, marketing collateral, legal compliance,

market positioning, financial compliance and

introducing potential clients that WorleyParsons

RSA is already servicing to ESD partner companies.

Conversely, these SMEs have introduced


Helping our customers meet the world’s

changing resources and energy needs

WorleyParsons delivers projects, provides

expertise in engineering, procurement and

construction, and offers a wide range of

consulting and advisory services. We cover

the full lifecycle, from creating new assets

to sustaining and enhancing operating

assets, in the hydrocarbons, minerals, metals

and chemicals, and infrastructure sectors.

Our resources and energy are focused on

responding to and meeting the changing

needs of our customers over the long term and

thereby creating value for our shareholders.

The WorleyParsons global operations is

headquartered in Australia and listed on the

Australian Stock Exchange. In operation since

the 1970s, WorleyParsons is one of the world’s

largest project-delivery organisations. Our

comprehensive geographic presence enables

us to provide our customers with a unique

combination of extensive global resources,

world-recognised technical expertise and deep

local knowledge to deliver small studies through

to mega-projects.

To better meet our customers’ needs, and

leverage our global skills, WorleyParsons’

operating model has been reorganised across

four business lines: Advisian provides

management and strategic advisory services,

coupled with technical consulting and deep

domain expertise, to address our clients’

business and asset challenges. Our dedicated

Major Projects business line is focused on

successfully delivering projects that pose a

higher level of commercial risk due to their size,

complexity and scope. Our Services business

line delivers projects of all sizes across a

range of industry sectors, bringing the best of

global thinking, technology and experience to

local challenges. The Integrated Solutions


usiness line focuses on EPC engineering

activities in the brownfield space and offers our

customers a single point of responsibility in the

management of their existing assets.

Zero Harm is our corporate vision for health,

safety and the environment (HSE). We are

committed to our vision and apply it to all

operations, at all times, in all locations, and at all

levels of responsibility. EcoNomics provides

our customers with the systems, technologies

and expertise to optimise and balance financial,

social and environmental outcomes, improving

sustainability performance while enhancing

profit and long-term viability.

Hydrocarbons

WorleyParsons has been delivering engineering

and project management services to the global

hydrocarbons industry for over 60 years. Our

full-scope global project services span the

entire asset lifecycle from the initial conceptual

phase of major greenfield developments

to ongoing asset services and brownfield

modifications projects. Our capability and

experience spans all oil and gas extraction and

processing facility types.

Minerals, Metals & Chemicals

WorleyParsons has over 50 years’ experience,

gained through the delivery of some of the

most complex and challenging minerals and

metals projects across the world. We specialise

in new project developments and existing

facility upgrades or expansions, across a whole

range of commodities, including base metals,

precious metals, coal, chemicals, ferrous metals,

alumina, aluminium and iron ore. WorleyParsons’

Mining Centre of Excellence in Johannesburg

has niche expertise in underground mining,

particularly in hard rock and precious minerals

and metals. This local capability, coupled with

WorleyParsons’ global expertise, enables us to

deliver successful pit-to-port infrastructure

projects across the whole customer value chain.

Infrastructure

WorleyParsons’ infrastructure business

supports our resource and energy sector

projects and offers complete infrastructure

solutions for urban markets. Our service offering

covers environmental and restoration services,

development of water gathering and processing

facilities, rail and port assets, power generation

(across coal, gas, renewables and nuclear)

and transmission.

Supported by the global business, WorleyParsons

RSA prides itself on understanding and

committing to its customers’ goals in the sectors

that we operate.

Website: www.worleyparsons.com

Email: wprsainfo@worleyparsons.com


OVERVIEW

Manufacturing

Large incentives are available to investors in manufacturing.

SECTOR INSIGHT

The Manufacturing Circle

aims to create one-million

jobs.

• The structural mill at

Evraz Highveld is working

again.

The Manufacturing and Competitiveness Enhancement

Programme (MCEP) of the National Department of Trade and

Industry (dti) announced in 2017 that it had disbursed a total

of 1 552 grants to the value of R5.8-billion which had resulted

in 230 000 jobs being “sustained”. Plastics, pharmaceuticals and

chemicals received 31% of the money, metal fabrication, capital and

real transport equipment 28% and agri-processing 21%.

Italian forged wheel manufacturer Lucchini received tax and

training allowances from the dti which helped it decide to invest

R200-million in a new forged wheel-making facility. Blank railway

wheels imported from Italy will be completed at the Germiston plant.

Industry support from the state is necessary because the manufacturing

sector’s contribution to the national economy has slipped

to below 13% from a high of 24% in the 1980s. This is according to the

chairperson of the Manufacturing Circle, as reported in Engineering

News. Andre de Ruyter added that if the percentage could be

brought to 30%, the sector could contribute up to one-million

more jobs. The Manufacturing Circle is in talks with government

about how to improve policy to bring this about.

The sector that has done best since 1994 in terms of growth is

the automotive sector, followed by resource-based manufacturing.

The latter sector includes steel, aluminium, petrochemicals, paper

and pulp, and non-metallic minerals.

Among other important sectors

are metals beneficiation

(more than 50% of the world’s

ferrochrome is produced in South

Africa), coke and refined petroleum

products, and information

and communication technology.

Steel and petroleum collectively

make up about 45% of South

Africa’s total manufacturing

production capacity.

Steel has been experiencing

a volatile few years, with

reduced demand from China

severely reducing production

volumes in South Africa. The

Steel and Engineering Industries

Federation of Southern Africa

(Seifsa) reported that 19 000

jobs were lost in the metals and

engineering sector in the nine

months to September 2016. This

sector makes up 28% of manufacturing.

Cheap imports have

been at the heart of problems for

the steel sector, as they have for

textiles, but other issues include

energy prices and labour costs.

SOUTH AFRICAN BUSINESS 2018

94


OVERVIEW

The National Department of

Trade and Industry has moved

to try to protect the local steel

industry by regulating the use

in the construction sector of

locally produced and manufactured

steel and steel products.

Another possible intervention is

related to energy prices. Silicon

Smelters, which has plants in

Mpumalanga and Limpopo, has

asked for a two-year negotiated

price agreement (NPA) on electricity,

which would allow it to

resume production. The National

Energy Regulator of South Africa

(Nersa) has the power to grant

such exemptions where the industry

is regarded as strategic.

The structural mill of Evraz

Highveld Steel in Witbank was

officially relaunched in June 2017

after ArcelorMittal South Africa

signed a contract to supply

blooms and slabs for the mill to

make into heavy structural steel.

Evraz Highveld went into business

rescue in 2015. The contract is for

two years with an option to renew

for another year. Alternately,

ArcelorMittal may buy the mill

after the two years.

Elsewhere in Mpumalanga,

the presence of Ferrometals

means that Mpumalanga is still

an important place for metals

and machinery manufacturing,

but the turbulence in the steel

sector has reminded everyone of

the need to diversify. Samancor

Chrome (which runs Ferrometals)

is the second-largest ferrochrome

producer in the world with

three plants.

Middelburg-based Columbus

Stainless is a major supplier of

stainless-steel products to the

SOLUTIONS FOR AFRICA

Modern manufacturers are coming up with ways to improve

efficiency. In Africa, water saving and conservation is becoming

a vital part of doing business.

Marley Pipe Systems has released a revolutionary new hot and

cold water supply solution called Pro-fit. Not only is Pro-fit

made from the highest grade PE-RT (Polyethylene with Raised

Temperature Resistance), which reduces loss through punctures

and tears, but it also reduces installation costs by 50% and is

resistant to corrosion and impact. Water passing through the

system is healthier and by avoiding the use of metal any scrap

value is eliminated, thus making the product more secure.

The recent extended drought has reminded all South Africans

of how fragile water supply can be. The Marley Vynadeep®

Rainwater System efficiently channels roofwater into tanks,

reducing demand on ground water and supplying vital back-up

for individual private or corporate premises.

Marley Pipe Systems is active in several parts of Africa and

with an increased uptake in the use of gas, Marley’s presence

is growing. As big retailers expand their footprints in Namibia,

Mozambique and Malawi, so Marley distributes larger volumes

through those channels. With the mining sectors of countries

such as Zambia, Tanzania and the DRC showing signs of recovery,

so the gas market is growing further still.

domestic and international market. The Manganese Metal Company

in Nelspruit is the largest producer of pure electrolytic manganese

metal in the world. Delta EMD, in the same town, is one of the biggest

producers of electrolytic manganese dioxide.

Iron production at Saldanha in the Western Cape includes hot-rolled

coil produced by ArcelorMittal and cold-rolled and galvanised steel

by DSP, a joint venture between South Africa’s Industrial Development

Corporation (IDC) and a Belgian company, Duferco.

Local production

The manufacturing sector employs the third most people, about

1.7-million, after financial services and retail. Three of South Africa’s

95

SOUTH AFRICAN BUSINESS 2018


OVERVIEW

most important manufacturing sectors (automotive, food and beverages,

and pharmaceuticals and chemicals) are dealt with in separate

sections of this book.

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

of the sector, as seen in the MCEP example above. The main vehicle

for the dti is the Industrial Policy Action Plan (IPAP), the seventh version

of which was launched in 2016. The Support Programme for Industrial

Innovation (SPII), run by the Industrial Development Corporation (IDC)

on behalf of the dti, promotes technology development.

New technology has been embraced by some innovative manufacturers.

Desert Wolf’s Skunk Riot Control Chopper is an unmanned light

aerial vehicles (UAV) that has proved popular in the world market. Denel

makes a drone product that can be adapted for use by conservationists.

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

the Black Industrialist Programme to help existing entrepreneurs grow.

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

getting local companies to manufacture rolling stock. The Passenger Rail

ONLINE RESOURCES

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

Centre for Advanced Manufacturing: www.cfam.co.za

Manufacturing Circle: www.manufacturingcircle.co.za

National Department of Trade and Industry: www.thedti.gov.za

South African Textile Federation: www.texfed.co.za

Steel and Engineering Industries Federation of Southern Africa:

www.seifsa.co.za

Agency of South Africa (PRASA)

has signed local consortium

Gibela to deliver 600 passenger

trains. Transnet Freight Rail

has contracted four suppliers to

build 1 064 new diesel and electric

locomotives.

There has been a recovery in

the textiles sector, greatly helped

by an injection of R7-billion

from the state in various forms

since 2009. There are about

90 000 workers employed in the

sector, which means numbers

are increasing after a big dip

when the sector suffered from

cheap imports.

KwaZulu-Natal is home

to 219 clothing companies

(Coface). Ninian & Lester is one

of the larger employers in the

textile sector, with 1 500 people

making clothing (including

the Jockey brand), textiles and

polypropylene.

The footwear sector is also

showing a good recovery. Two

international safety footwear

firms operate out of Pinetown:

Bata Industrial and Beier. The

latter company joined forces

with three other South African

safety footwear manufacturers

in 2014 to form the BBF Safety

Group, making them more

competitive. K-Way is a very

successful outdoor clothing

manufacturer with a factory in

Cape Town which supplies Cape

Union Mart.

The furniture sector is not

growing but there are about

2 200 companies in the country,

employing more than 26 400

workers (1% of manufacturing

GDP and 1.1% of manufacturing

employment).

SOUTH AFRICAN BUSINESS 2018

96


INTERVIEW

Marley Pipe Systems

Managing Director Brett Kimber explains how quality is at

the heart of this expanding company.

Brett Kimber

Has the decision to create two divisions paid dividends?

It has created the understanding that mining and industrial is really

focused on projects. Our PVC plumbing business in Nigel is mainly

focused on replenishment of stocks at retail outlets.

Do you have partnerships with multiple retailers?

We have relationships with all the major retailers but also with smaller

hardware stores, so we supply across the board.

BIOGRAPHY

Brett Kimber studied at the

universities of KwaZulu-Natal,

Cape Town and Johannesburg

for degrees in Chemistry, Geology

and Mineral Economics.

He worked as a senior geologist

for Anglo American before

working for Afrox (South Africa)

and parent group Linde in the

US and the Far East. He was

CEO and Managing Director

of Afrox and has been nonexecutive

Chairman of renewable

energy resources company

Renergen since 2015. In May

2016, Kimber was appointed

Managing Director of Marley

Pipe Systems.

Please tell us about being part of Aliaxis.

They are focussing on the professional market. The focus is on key major

megatrends such as high-rise developments and irrigation for farming

and food production. We also cater for both markets.

What does Marley stand for?

There has been a deterioration in standards in the country, with SABS

struggling to meet its mandates and shortcuts being taken. Importantly,

what Marley stands for is quality and has done so for fifty years.

What is your key offering?

We have a full range of products and we have more than enough capacity

to meet customer demands. We have a large footprint throughout

the SADC countries. We have the quality, the range, the capacity

and the service levels so that’s the key commitment that Marley offers

our customers.

Are there any popular new products?

Marley Pipe Systems has recently relaunched their revolutionary

hot and cold water supply solution called Pro-fit. Not only is Pro-fit

made from the highest PE-RT (Polyethylene with Raised Temperature

Resistance), which reduces loss through punctures and tears but it also

reduces installation costs by up to 50% and is resistant to corrosion

and impact.

97 SOUTH AFRICAN BUSINESS 2018


OVERVIEW

Automotive

Multi-billion-rand investments are boosting vehicle production.

SECTOR INSIGHT

Auto manufacturers and

government are setting

ambitious targets.

• General Motors has sold

to Isuzu.

South Africa’s automotive industry is on course to produce

a record number of cars in 2017, a remarkable achievement

in the face of the wider economy’s modest performance.

In September 2017, the National Association of Automobile

Manufacturers of South Africa (NAAMSA) was projecting a figure of

622 000, which would beat the volume produced in 2015 by about

5 000. Long-term state support of the industry through the Automotive

Production and Development Programme (APDP) is a major reason

for the continuing health of this vital sector.

The decision in 2017 of General Motors to disinvest from South

Africa does not seem to have had any kind of knock-on effect. The

company’s selling of its plant in Port Elizabeth was just one sale of

many around the world; Isuzu has bought the factory.

Many analysts believe that a figure of one-million vehicles must be

achieved for the industry to become truly sustainable. In the context of

policy uncertainty in some areas of the South African economy it was

significant that a South African Auto Master Plan was announced in July

2017, soon after the policy congress of the African National Congress.

The Department of Trade and Industry, working together with

NAAMSA, set targets for 2035 to increase production to 1% of world

volumes (which would mean 1.4-million vehicles made in SA), to

increase local content and to double employment and black-owned

businesses in the sector.

Automotive and automotive

components make up 30.2% of

total manufacturing output and

about 7% of the nation’s Gross

Domestic Product (GDP).

Automotive manufacturing

takes place in three provinces:

Gauteng (Nissan-Renault, BMW

and Ford); KwaZulu-Natal (Toyota,

Bell Equipment); and the Eastern

Cape (Volkswagen, Mercedes-

Benz, General Motors and Ford

engines). Armoured cars are

also produced in Gauteng. DCD

Protected Mobility makes armoured

cars in Boksburg, which

are branded as Vehicle Mounted

Mine Detectors. In Benoni, BAE

Systems OMC designs and manufactures

protected vehicles.

Volkswagen and Ford are the

country’s only engine manufacturers.

Policy certainty is allowing

for major domestic investments

and it is attracting foreign direct

investment. Some recent milestones

include:

SOUTH AFRICAN BUSINESS 2018

100


O&M CAPE TOWN 2382/E

Volkswagen

Economy Parts

www.vwcommercial.co.za

Your vehicle is not merely a means of transport to fulfill your clients’ needs. It forms a

critical part of your business success. Volkswagen Commercial Vehicles understands that

your vehicle is your Business Partner.

In order to keep your out-of-warranty Volkswagen Commercial Vehicle a 100% pure

Volkswagen, we’ve developed a cost-effective range of genuine parts that we hold to the

highest standards: Volkswagen Economy Parts.

Economy Parts are manufactured to Volkswagen’s Global Quality Standards and, when

fitted by trained technicians in our Dealer network, will ensure the critically important

service and repair history of your vehicle.

Volkswagen Economy Parts, along with our Dealers’ technical experts will ensure you

have the support and peace of mind to keep your Business Partner on the road for many

more kilometres. And because we uphold the highest international standards, there is no

compromise on safety, performance, or durability in these parts.

Now you might be wondering: How do we keep the price of Volkswagen Economy Parts

down? That’s simple, we manufacture each part so it can be fitted to multiple out-ofwarranty

vehicle models.

Critical to understand, is that Volkswagen will never compromise on quality. The materials

used, manufacturing and quality assurance processes of Economy Parts are similar to that

of Volkswagen Genuine Parts, and both Volkswagen Economy and Genuine Parts carry

the same warranty.

Ask your Volkswagen Commercial Dealership about the range of Economy Parts available

for your commercial vehicle.

Commercial

Vehicles


OVERVIEW

• Volkswagen SA exported 20%

more Polos in 2015 than the

year before, and kept up the

momentum into 2016 and

2017. In 2018, the Uitenhage

plant will introduce three

shifts, increasing export

volumes even further.

• National export volumes

reached a record 344 822 in

2016, earning R118.1-billion.

• Mercedes-Benz exported

more than 10 000 vehicles out

of the Port of East London in

one month in April 2016.

• BMW will invest R6-billion to

start producing the X3 sportutility

vehicle.

• Nissan will double local production

from 2018.

• Ford will hire 1 200 new staff as

it ramps up production of the

Ford Ranger and introduces

the Ford Everest.

• In 2016, Toyota invested

R6.1-billion into a large plant

at Prospecton, Durban. The

company regularly sells about

a quarter of the vehicles sold

in South Africa, and accounts

for the same proportion

of exports.

The latest foreign investment,

and one of the biggest, will see

Beijing Automobile Corporation

(BAIC) take a 65% stake in a

multi-billion-rand joint venture

with the Industrial Development

Corporation at the Coega

Industrial Development Zone

outside Port Elizabeth. BAIC is a

Chinese state-owned enterprise

with several brands. The intention

is to start production on the

85 000m² site in 2018 and the

target is annual production of

100 000 cars, bakkies and sport-

utility vehicles. About 2 500 jobs are expected to be created. This follows

the earlier investment of Chinese manufacturer First Automotive

Works (FAW), which has established a R600-million assembly plant in

Zone 2 at Coega.

Companies like BAIC and FAW may well be positioning themselves

to push into Africa, not only for selling vehicles but for sending automotive

parts and partly-assembled kits further north. A new pan-African

organisation has been established to promote the auto industry on the

continent, the African Association of Automotive Manufacturers (AAAM).

Automotive components

South Africa has a sophisticated automotive component sector. The

catalytic converter sector experienced incredible growth for a number

of years but some volatility in the platinum mining sector, together

with increased interest in electric vehicles and hybrids, means that

exporters (largely based in Port Elizabeth) have had to work harder.

A catalytic converter changes bad gasses coming out of exhausts

into less harmful gas. The converter uses platinum group metals (PGMs),

of which South Africa has about three-quarters of the world’s reserves.

Tyre and glass manufacturers are clustered around the areas where

the automotive industry is active. Sumitomo Rubber South Africa,

which includes Dunlop among its brands, is spending R2-billion on

expanding production in Ladysmith, KwaZulu-Natal. Bridgestone Tyres

has plants in Port Elizabeth and Brits and Continental makes tyres in

Port Elizabeth.

The large number of vehicle models produced in South Africa is

a complicating factor for the components sector: low volumes often

mean high prices. Two Port Elizabeth companies export significant portions

of their production to overcome this: Schaeffler SA exports to its

international parent so that it can achieve higher volumes. Shatterprufe

supplies the majority of windscreens to the South African market but

there are 12 model ranges to serve.

ONLINE RESOURCES

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

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

Automotive Supplier Park: www.supplierpark.co.za

National Association of Automobile Manufacturers of South

Africa: www.naamsa.co.za

National Association of Automotive Component and Allied

Manufacturers: www.naacam.co.za

SOUTH AFRICAN BUSINESS 2018

102


Chemicals and pharmaceuticals

Drug research is in the spotlight.

OVERVIEW

The Drug Discovery and Development Centre (H3D) at the University

of Cape Town wants to become the African continent’s first drug

discovery entity. Companies such as Merck, Novartis and Janssen and

non-profits like the Bill and Melinda Gates Foundation are working

with the centre.

Pharmaceuticals are manufactured primarily in Gauteng and the

Eastern Cape. Although there are more than 200 pharmaceutical firms

in the country, large companies dominate the field. In 2016 Aspen had

a market capitalisation of R160-billion and Adcock-Ingram R7.6-billion.

Ascendis, which was established in 2008 and now has a market cap of

R6.9-billion, has been acquiring companies such as a genetic manufacturer

based in Cyprus. Cipla Medpro is another big company.

Aspen SA produces about 10-billion tablets per year at its Port Elizabeth

facility. The company has another factory in Gauteng and successful

operations in South America and Australia.

South Africa’s chemical industry contributes 5% to national gross domestic

product (GDP) and about 60% of earnings are derived from exports.

The complexes run by Sasol at Secunda (Mpumalanga) and Sasolburg

(Free State) underpin the national manufacturing capacity in chemicals.

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

Safripol is South Africa’s only other producer. More than half of Sasol’s

production of 625 000 tons is exported.

Omnia and Kynoch (fertiliser), Karbochem (rubber and carbo-chemical),

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

operating out of Sasolburg.

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

KwaZulu-Natal benefit the chemicals sector. Illovo Sugar manufactures

downstream products such furfural, furfuryl, alcohol, diacetyl and

ethyl alcohol.

ONLINE RESOURCES

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

National Association of Pharmaceutical Manufacturers:

www.napm.org.za

Plastics SA: www.plasticsinfo.co.za

SECTOR INSIGHT

Sappi makes 17% of the

world’s dissolving wood pulp.

Sappi makes 17% of the world’s

dissolving wood pulp. Two of the

company’s three mills are in South

Africa, Ngodwana (Mpumalanga)

and Saiccor (KwaZulu-Natal).

The latter mill has a capacity of

800 000 tons per annum of sulphite

dissolving wood pulp, making it the

world’s single largest manufacturing

site.

Two large oil refineries and a

sophisticated sugar milling and

refining industry underpin chemical

manufacturing in KwaZulu-

Natal. German chemicals group

Lanxess has built a carbon dioxide

concentration unit at its existing

plant in Newcastle where the steel

works of ArcelorMittal produce

by-products such as ammonium

sulphate. Large companies such as

Karbochem, Bayer, African Amines

and SA Calcium Carbide also operate

in the area.

AECI is one of South Africa’s

biggest groups. The two principal

divisions are AEL Mining Services

and Chemical Services .

Foskor is the country’s only

vertically integrated phosphates

producer.

103 SOUTH AFRICAN BUSINESS 2018


OVERVIEW

Food and beverages

Consumer companies are looking to Africa for growth.

Global consumer goods company Unilever has invested

nearly R4-billion in recent years, including R600-million in

a Gauteng ice-cream factory that will boost the company’s

drive into Africa.

This highlights a trend across the food and beverage sector. In 2016

Nestlé South Africa invested R1.2-billion in adding instant coffee to

the products it makes in South Africa. Heineken’s fairly new brewery

in Gauteng is already undergoing expansion, with cider production

set to increase.

The food and beverage sector experienced 18% growth from 1996

to 2013. A very serious drought and higher input costs led to tough

conditions for companies in the sector in the six months to June 2017.

An Ernst & Young analysis of consumer products companies with collective

annual revenues of R180-billion stated that the period had been

“one of the weakest” because of a combination of political, economic

and climate conditions.

Some of the biggest companies in the sector are Tiger Brands, RCL

Foods, Pioneer Foods, Clover, AVI and Astral. According to the EY report,

the industry’s revenue comes mostly from agri-business (25.8% of total

industry revenue), diversified companies (23%), food producers (13.6%),

beverage producers (12.5%) and sugar producers (8.9%).

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

manufacturing production and employs 230 000 people. Beverages

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

for 13.5%. Within the sector, beverages accounts for 24%

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

agri-industries derives from agri-processing.

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

provinces, with about half of the companies in the sector located

in Gauteng.

ONLINE RESOURCES

Agricultural Research Council: www.arc.agric.za

FoodBev SETA: www.foodbev.co.za

National Agricultural Marketing Council: www.namc.co.za

SECTOR INSIGHT

Agri-business contributes

a quarter of revenue in the

sector.

The South African beer market

is growing by 1.5% per year.

Key players in the industry in

South Africa include South

Africa Breweries (SAB) (malt

beer), United National Breweries

(sorghum beer), Distell (spirits and

flavoured alcoholic beverages, or

FABs) and Brandhouse (malt beer,

spirits and FABs). SAB became part

of Anheuser-Busch in 2016.

RCL Foods, formerly Rainbow

Chickens, has been on an aggressive

run of acquisitions. RCL is reconsidering

its business model

with a thought to producing

fewer frozen chickens and doing

more in the fast-food sector.

The fast-food and familyrestaurant

franchise sectors are

sophisticated and cover a broad

range, from the indigenous

Spur and Nando’s brands to international

giants such as KFC,

McDonald’s and recent arrival of

Burger King.

Wimpy is the second largestfranchise

operation in SA (after

KFC).

SOUTH AFRICAN BUSINESS 2018

104


PROFILE

SYSPRO software is an award-winning, best-of-breed

Enterprise Resource Planning (ERP) software solution

for on-premise and cloud-based utilisation. Scalable

for rapid growth, SYSPRO is acknowledged by industry

analysts to be among the finest enterprise

resource planning solutions in the world. SYSPRO

software’s powerful features, simplicity of use, information

visibility, analytic and reporting capabilities,

business process and rapid deployment methodology

are unmatched in its sector.

While SYSPRO customers represent all industry

segments, rich extensions for food, medical devices,

electronics and machinery companies, make

SYSPRO the first choice for growing companies

looking for a cost-effective ERP solution.

SYSPRO, formed in 1978, has earned the trust of

thousands of companies globally for its suite of

visionary software that enhances the competitive

thrust of small and mid-sized manufacturers and

distributors. SYSPRO enjoys one of the highest

customer retention rates in the industry.

What is ERP?

Enterprise Resource Planning (ERP) Software automates

and integrates core business processes such

as customer orders, production, inventory control,

and reporting. An ERP system can drive significant

improvements in manufacturing, distribution and

financial management.

“With SYSPRO, our data tracking ability is phenomenal.

Improved visibility of sales history is also a powerful tool.

SYSPRO provides the quality reporting and analysis of

our business needs.”

Sandi Loggenberg – Cibapac’s Chief Technology

Officer.

CASE STUDY

Integrating manufacturing and distribution

pays off for packaging company Cibapac, one of

the largest manufacturers of PVC stretch film

in South Africa, that also holds a major share

of the expanded polystyrene tray market for

fresh produce, meat, poultry and fast foods.

Disjointed processes between the manufacturing

and distribution departments meant that

efficiencies were suffering. Production rosters

and stock levels were not based on accurate

sales forecasts or demand estimates.

A fully integrated SYSPRO ERP solution with

multiple core modules was implemented. As a

result, Cibapac was able to bring its independent

supply chain processes and components

into one seamless supply chain. Modules included

financial modules, core distribution

and manufacturing. Improved data tracking,

streamlined inventory management and

accurate accounting practices are just some of

the more noticeable benefits.

CONTACT INFO

Physical address: Block A, Sunninghill Place,

9 Simba Road, Sunninghill 2191

Tel: +27 11 461 1000

Email: info@za.syspro.com

Website: www.syspro.com

105 SOUTH AFRICAN BUSINESS 2018


OVERVIEW

Transport and logistics

Investments in rail are increasing.

SECTOR INSIGHT

Sheltam is expanding its rail

operations into Africa.

South Africa has 21 000km of railway lines and 747 000km

of roads, 325 019 heavy-load vehicles and the road freight

industry employs 65 000 drivers. The logistics and courier

market is worth R10-billion. There are 135 licensed airports

in the country, 10 of which have international status.

Investment in improved infrastructure is being made at all of

South Africa’s ports. Special Economic Zones are in place at the

ports of Saldanha on the West Coast, Coega (Port Elizabeth), East

London, and Richards Bay in northern KwaZulu-Natal. The Maputo

Development Corridor is Africa’s most advanced spatial development

initiative. Run by the Maputo Development Corridor Logistics

Initiative (MCLI), the corridor runs from near Pretoria in Gauteng, to

Maputo in Mozambique.

The Harrismith Logistics Hub at the Maluti-A-Phofung SEZ on the

N3 is an inland port that can handle cargo containers and shift cargo

from road to rail, reducing congestion and costs.

Transnet is the state-owned enterprise focussed on transport and

logistics. It comprises Transnet Freight Rail, Transnet Engineering,

Transnet National Ports Authority, Transnet Port Terminals and Transnet

Pipelines. Transnet Freight Rail’s operations represent about 80% of

Africa’s rail infrastructure. With 25 000 employees TFR has specialist

divisions for hauling coal and iron ore together with a general freight

division which transports everything from grain to chemicals.

The major rail haulage lines are the manganese line from the

Northern Cape to Port Elizabeth; from Sishen in the Northern Cape to

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

to Richards Bay. More than 55-million tons is regularly transported

along the former and upwards

of 70-million tons can travel annually

along the latter.

Almost 90% of freight is transported

by road and the logistics

sector is very reliable. However,

these volumes are not good for

the condition of the country’s

roads and Transnet is working

hard to attract more business to

the rail network. TFR has put 28

new electric locomotives on the

line supporting steel producer

ArcelorMittal to improve service.

The rail sector is receiving

many investments. The speedy

Gautrain which started life as

a service to the main airport in

Johannesburg has been tremendously

popular and there are

plans to expand its network. Bids

to supply 12 new trains will be

adjudicated on in 2018.

A total of 600 new passenger

trains will be added to Metrorail’s

fleet at a cost of R51-billion.

Transnet Freight Rail has ordered

1 064 diesel and electric locomotives

from four suppliers.

Sheltam Group is expanding

its services beyond rail services.

A new lease company (for rolling

SOUTH AFRICAN BUSINESS 2018 106


OVERVIEW

stock) and an investment company

(focussed on rail infrastructure)

underpin the group’s African

ambitions.

Multi-billion-rand road projects

planned by the South African

National Roads Agency Limited

(Sanral) include a Wild Coast toll

road project. The bridge over the

Mtentu River will be the highest

bridge in the country at 217m and

will cost R1.6-billion.

Air

Airports Company South Africa

(Acsa) owns and operates the

country’s 10 biggest airports. The

company also manages airports in

India and Brazil. In 2016/17 the company

reported a profit of R2-billion.

Ekurhuleni wants to leverage

the location of South Africa’s

biggest airport, OR Tambo

International, into a major economic

asset. OR Tambo International

in Johannesburg caters for more

than 17-million passengers every

year. The Cape Town International

Airport has been expanded and

improved and recorded 10-million

passengers in 2016. King Shaka

International Airport (KSIA) is north

of Durban.

Several airports are possible

future regional freight nodes:

Wonderboom Airport in Pretoria,

Polokwane Airport in Limpopo and

Mafikeng Airport in North West

Province.

The South African Ministry of

Transport has several agencies

and businesses reporting to it: Air

Traffic and Navigation Services

Company, Airports Company South

Africa (Acsa), National Transport

Information System, Road Accident Fund, South African Civil Aviation

Authority, South African Maritime Safety Authority (SAMSA), South African

National Roads Agency Limited (Sanral) and the Passenger Rail Agency

of SA (PRASA).

TAKEN – ACROSS THE BORDER

Stolen cars being driven over the border to neighbouring countries

has been a phenomenon for some time in South Africa, but new

markets are emerging. According to a January 2017 article on

sowetanlive, some cars are going through Maputo harbour to

buyers in the Middle East.

The article reported on six luxury vehicles taken from one dealership

in a single heist. The Chief Operating Officer of the SA Insurance

Crime Bureau, Hugo van Zyl, said there was “certainly an increase”

in the hijacking and theft of luxury cars.

In response to this trend, EKS Secure Technologies has created

a highly proactive Tactical Reaction Recovery Team that is fully

skilled to deal with any treacherous situation. A force of over

200 tactical officers and high-response recovery units positioned

throughout South Africa and across the borders are at all times

armed with a rifle to cater for any unforeseen situations. Vehicles

and helicopters are deployed as appropriate. Team members all

have a minimum of three years’ experience in the security environment

and undergo rigorous training, shooting tests, fitness

training, polygraphs and vetting. The EKS Team is assisted by

the South African Police Service with arrests and recovery in

the event of theft.

ONLINE RESOURCES

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

National Department of Transport: www.transport.gov.za

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

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

Transnet: www.transnet.net

107 SOUTH AFRICAN BUSINESS 2018


PROFILE

EKS Secure

Technologies

Securing assets in South Africa, and beyond.

EKS Secure Technologies is a certified Tracking

Company. A fully fledged black and proudly South

African-owned company, EKS was founded in 2016

and operates nationwide. The company’s head

office is in Pretoria. We have a footprint of over 200

ground recovery vehicles and choppers in all nine

provinces and we have a cross-border recovery

team. With these resources, we can definitely assure

our clients of state-of-the-art security, nationwide.

We specialise in Vehicle Tracking, Asset Tracking,

Asset Management Solutions, Fleet Management

Solutions and ground security such as Guarding

and CCTV Monitoring.

EKS Secure Technologies has built a formidable

reputation of delivering efficient, quality service at

a competitive price on all levels of tracking. Through

a culture of continuous innovation, driven by an

experienced and dynamic team, EKS has built a reputation

of providing proactive value-added service to

our partners and clients.

Mission

To provide clients with innovative security solutions

in vehicle tracking, fleet management solutions,

asset management and ground security using

excellent technology, teamwork and professionalism,

while growing rapidly and developing in

terms of the political landscape and demographics

of South Africa.

The way we work

• An unconventional, innovative and yet compliant

professional approach to delivering

our services

• An emphasis on the implementation of the

service and delivery of all pre-agreed outcomes

• Recognition of a unique opportunity to make a

difference in everything we do

• A “can do “attitude as well as crafting solutions

for our clients

• Empowerment: creating opportunities through

training and employment

Services and scope of work

• Vehicle tracking

• Asset tracking

• Fleet management

• Asset management

• Security and guarding

Quality assurance

All EKS Secure Technologies’ hardware and software

is well within the standard of SABS and ICASA regulations.

We have our own team of qualified hardware

and software engineers who are fully capable of

building and manufacturing cutting-edge hardware

that is compatible with our software to deliver

immediate service and configuration as required.

CONTACT INFO

EKS Secure Technologies (Pty) Ltd

Tel: +27 12 003 4126 | Fax: 086 123 4231

Email: info@ekssecure.co.za

Physical address: 22 Pretorius Street,

Pretoria 0001

Website: www.ekssecure.co.za

SOUTH AFRICAN BUSINESS 2018

108


INTERVIEW

EKS Secure

Technologies

Live Tracking and Monitoring that gives peace of mind.

Cornelius Rambelani, CEO

What technologies give your company an edge?

Our products and technology are flexible in that we customise to every

client’s need. The main driver is for clients to see substantial return on

investment and cost reduction.

Please describe the EKS Mobile Solution.

Our Mobile Solution brings your assets closer to you. Clients view and

monitor their vehicles on their mobile phone, giving them total control

of the whereabouts of the vehicle.

BIOGRAPHY

Cornelius Rambelani has an

Advanced Diploma in Management

from the Milpark Business

School and extensive experience

in the motor industry and

in fleet management. Having

started as an apprentice in Port

Elizabeth, Cornelius worked

in various car dealerships in

Gauteng, up to the position of

Aftersales Manager. As Technical

Manager at a tracking

company, he had 36 technicians

reporting to him before

becoming Operations Manager

of a fleet support company

with branches in three cities.

He is currently the CEO of EKS

Secure Technologies.

What are some of your consumer products?

EKS Recovery, EKS Live Tacking and EKS Monitoring. These products

are backed by our 24/7 Call Centre and a recovery team countrywide

meaning wherever the car gets stolen, we will go and recover it.

What are the benefits of the Fleet Solution?

It is used by all companies from small fleet to large fleet. Everyone

benefits, from the fleet manager right through to the business owner:

• The system gathers data, saving you time.

• You receive customised reports when you want them.

• Reminders are sent to clients of their licence disc renewals, service

reminders, PDP renewals, etc.

• Clients can print reports without contacting the office.

What is your flagship product?

Our camera solution gives the client live tracking and history retrieval

with benefits such as on-road and in-cab camera; recording of all alerts;

2Gig of space; video in HD quality; monitoring driver behaviour; and

scoring and rating of drivers among themselves.

Do you deal with a lot of cross-border asset searches?

Our products work across the globe with our immediate emphasis being

SADC countries like Zimbabwe, Mozambique, Swaziland, Botswana

and Zambia.

109 SOUTH AFRICAN BUSINESS 2018


OVERVIEW

Business services

Consulting is a growth industry.

South Africa represents about 75% of Africa’s consulting market,

but there has been good growth in other parts of Africa in

recent years.

Several large international consulting firms are active in

South Africa and offer a broad range of services. After South Africa

achieved democratic status in 1994, the sector experienced a boom.

Companies such as PricewaterhouseCoopers (PwC), Deloitte,

Accenture, McKinsey & Company, Bain & Company and EY are amongst

the biggest consulting firms operating in South Africa. A major controversy

erupted in 2017 when KPMG South Africa became embroiled

in the issue of state capture because of its auditing contract with the

Gupta family and its report on an alleged secret unit within the South

African Revenue Service (SARS). Eight senior executives resigned. The

“Big Four” auditing firms, all of which have diverse consulting divisions,

are responsible for auditing South Africa’s big banks so they play a vital

role in the financial system. The other three are Deloitte, EY and PwC.

The uproar about KPMG illustrated the importance of the role of industry

regulators such as the South African Institute of Chartered Accountants

and the Independent Regulatory Board for Auditors.

The Southern African management consulting market was estimated

to be worth R15.6-billion in 2014 (Source Information Services). South

African consultancies such as DaySeven Group offer management

consulting, advisory services and research.

In the financial sector, banks have divisions that offer advice when

big transactions are made in areas such as the structuring of deals,

ONLINE RESOURCES

Business Process enabling South Africa (BPeSA):

www.bpesa.co.za

Independent Regulatory Board for Auditors: www.irba.co.za

Institute of Management Consultants and Master Coaches of

South Africa: www.imcsa.org.za

National Department of Trade and Industry: www.dti.gov.za

South African Institute of Chartered Accountants:

www.saica.co.za

SECTOR INSIGHT

Regulators were active in

2017.

equity finance and asset finance.

Several consulting firms specialise

in economic policy, strategy and

risk management. Among these

are DNA Economic, Econometrix,

Eunomix and Genesis Analytics,

the largest economic consulting

firm in Africa.

Business support services

include those services that companies

may prefer to outsource

to specialist providers so that

they can focus on their own core

competencies. This might include

security, catering, cleaning, legal

services, furniture and stationery

supply, software and hardware

management, recruitment, call

centres, customer care and many

other key services that are better

left to the experts.

Call centres are a key element of

the Business Process Outsourcing

(BPO) sector. The national Minister

of Trade and Industry, Rob Davies,

says that the local BPO sector has

had compounded growth since

2012 of 25% year-on-year. There

are approximately 30 000 jobs nationally

with the top market being

the UK.

SOUTH AFRICAN BUSINESS 2018

110


DaySeven Group

OVERVIEW

Patrick Ooro, Director of DaySeven Group, outlines the

growth strategy for this fast-growing group.

Patrick Ooro

Please describe the main areas of your business.

DaySeven Group comprises four companies:

• DaySeven Consulting – Management Consulting, Advisory Services

and Research Services

• DaySeven Training – Training facilitation services and courses

• DaySeven Projects – Project identification, development, execution

and management

• DaySeven Technology – Technology consulting and custom ICT

solution development

What is your area of operation?

I am involved mainly in the management and strategic business expansion

of the entire DaySeven Group. I also have roles within DaySeven

Consulting, Projects and Technology.

BIOGRAPHY

Patrick Ooro is a Director at

DaySeven Group and is responsible

for business and project

identification and development

across Sub-Saharan Africa. He

was previously the Marketing

Manager, Sub-Saharan Africa

at Hitachi Europe (Johannesburg

office) and has been involved

in several projects in

the energy, water, healthcare

and ICT sectors across Sub-

Saharan Africa. Qualified in

economics, he has worked in

the banking sector as well as

in private sector consulting,

advisory and research across

Sub-Saharan Africa.

When was DaySeven formed?

DaySeven Group was formed in 2008 and has evolved over the past

nine years to encompass the different specialist companies.

What is the story behind the group’s name?

The group’s name is inspired firstly by a week having seven days and

secondly by the belief in the perfection of the number seven.

Please tell us about recent successful projects?

DaySeven Consulting provided research services for Hitachi Chemical

Ltd on the South African market and the different potential entry

strategies that they could use to enter the market and be competitive.

DaySeven Technology was contracted to develop, publish and

host an online survey to collect data on behalf of the African Capacity

Building Foundation. The survey collected data on the awareness and

alignment of UN Strategic Development Goals (SDGs) to country-based

National Development Plans.

What is planned for the future?

DaySeven Group plans to expand and focus on projects outside

South Africa in Sub-Saharan Africa. Our focus areas will be technology

solutions and water and sanitation projects.

111 SOUTH AFRICAN BUSINESS 2018


PROFILE

DaySeven Group

Providing world-class business services.

DaySeven Group is a Level 3 BBBEE company providing

world-class services across several core areas of

expertise. These include management consulting,

advisory services and research to clients across Sub-

Saharan Africa.

Vision

DaySeven Group follows a value-based culture and

as such, undertakes to uphold the following values

in providing services to its clients:

• Maintain, and use, international best practices

• Strive towards excellence, growth and industry

development

• Maintain the highest levels of ethical and

professional business practices

• Ensure that our clients’ needs and objectives

are always met.

Mission

DaySeven Group ensures that every client receives

the best and appropriate service according to the

client’s needs and objectives. All the services we

offer are based on international best practices and

policies. We always strive to ensure that all best

practices and policies are passed onto you as a client,

in order to develop and have an impact on your

business, your life and your community.

Staff

Our consultants are highly experienced and seasoned

professionals. We draw on other highly experienced

consultants in the relevant professional

fields as and when required. DaySeven is continually

seeking to employ administrative staff, sales and

client representatives, analysts and other core team

members as we grow. We also employ the services of

appropriately skilled and experienced professionals

on various projects that we undertake.

Services offered

DaySeven Consulting

DaySeven Consulting focuses on three key areas of

expertise that are critical to any business:

• Management consulting covers strategy

identification, development and implementation,

business development and strategic leadership

• Advisory services specialises in sustainable

development, investment and infrastructure

advisory with a focus on Sub-Saharan Africa

• Research services conducts country research,

cross-sector research and develops and

implements surveys.

DaySeven Training

DaySeven Training is a Level 2 BBBEE company

facilitating certified training courses on construction

contracts covering GCC2010, NEC3, JBCC, FIDIC and

customised training courses for our clients. We use

SOUTH AFRICAN BUSINESS 2018 112


PROFILE

facilitators who are qualified industry specialists in

their areas of expertise.

DaySeven Training is based in Johannesburg and

provides training services to a diverse pool of clients

covering both the public and private sectors across

the African continent.

The four core components are:

Business skills

• Learnerships (including project management

and business administration)

• Workplace readiness (including prioritising and

organising, conflict resolution and workplace

ethics)

• Customised courses (ICT and customer defined).

DaySeven Technology

DaySeven Technology is a Level 2 BBBEE company

offering a full suite of technology solutions:

• Graphic and web design

• Doman registration and web hosting

• Custom ICT solutions

• Software and hardware.

DaySeven Projects

DaySeven Projects is a Level 2 BBBEE company

currently focusing on project identification,

development, execution and management.

DaySeven Projects has grown from humble

beginnings and has become a key business unit

within DaySeven Group. DaySeven Projects currently

develops and leads projects across multiple sectors,

providing world-class services. We currently hold

CIDB ratings of 1GB and 1CE.

Our team uses the world-leading project

management methodologies, and modern tools

to provide cutting-edge services and stay relevant

and competitive.

We offer a full range of services with a focus on the

following key aspects:

• Project identification and development:

cross-sector; Sub-Saharan Africa focus; critical

infrastructure; development to commercialisation.

• Project management: modern methodologies;

full project management cycle; project rescue.

• Process design and re-design: business process

analysis and mapping; business process redesign;

total quality management.

• Project development.

• Project management services.

• Process engineering: we assist and support

our clients to redesign processes and achieve

efficiency.

CONTACT INFO

Physical address: Regus Business Centre,

1st Floor, 292 Surrey Avenue, Randburg,

Johannesburg.

Tel: +27 81 247 5246

Email: info@dayseven.co.za

Website: www.dayseven.co.za

113

SOUTH AFRICAN BUSINESS 2018


PROFILE

VeriFi

VeriFi is the leader in the business of verification and

certification for BBBEE recognition.

South Africa requires an economy that can meet the

needs of all its economic citizens, its people and their

enterprises in a sustainable manner. Government’s

objective is to achieve this vision of an adaptive

economy characterised by growth, employment

and equity. Achieving authentic BEE has required a

reassessment of traditional business models and corporate

cultures. The Bill, code and strategy document

rely upon core policy instruments that have been

designed to bring about BEE. These instruments are

essentially measurement tools that will permit the

public and private sectors to evaluate the BEE status

of a particular enterprise. Failure to adapt to the new

paradigm will have significant consequences. A real

commitment to BEE is now a business imperative.

Description of services

• assess and certify BBBEE rating;

• provide insight into BBBEE challenges facing

various organisations;

• provide insight and guidance on the actions

required to elevate BBBEE status; and verification

of supplier BBBEE status.

With BBBEE recognised as an imperative by companies

committed to building an equitable South

Africa, verification is an essential requirement that

confirms a company’s participation and contribution.

Verification is performed in a manner similar to

that of a financial audit: it provides an independent

assessment of investment, performance and initiatives

in a control system. Criteria against which

companies are measured are provided by government

and like an audit, verification must be

performed annually.

Target markets

Small, medium and large enterprises achieving

an annual turnover of below R10-million and over

R50-million respectively (including all charter

sectors).

Pricing

Pricing for BEE consultancy services is based on

the client’s requirements and can be structured

on an hourly or monthly basis.

For BEE Verification and issue of a BEE Compliance

Certificate, please contact the office for the

current rates.

SOUTH AFRICAN BUSINESS 2018

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PROFILE

The value of verification

With BBBEE recognised as an imperative by companies

committed to building an equitable South

Africa, verification is an essential requirement that

confirms a company’s participation and contribution.

Verification is performed in a manner similar to that of

a financial audit: it provides an independent assessment

of investment, performance and initiatives as

a control system. Criteria against which companies

are measured are provided by government, and like

an audit, verification must be performed annually.

BBBEE explained

Government BBBEE legislation consists of:

• The Strategy for Broad-Based Black Economic

Empowerment

• The Broad-Based Black Economic

Empowerment Act, No 53 of 2003

• The Codes of Good Practice for Black Economic

Empowerment

• Various sectoral BEE Charters or Codes

In terms of these Codes of Good Practice,

businesses are divided into three categories:

• Where turnover is less than R10-million a year,

or when in the first year of incorporation, a

business is categorised as an Exempt Micro

Enterprise (EME). However, it is necessary

to confirm this status by providing proof of

annual income.

Businesses with a turnover of between

R10-million and R50-million a year are categorised

as Qualifying Small Enterprises (QSEs).

The criteria for each of these elements are less

onerous for QSEs than for companies with

turnovers exceeding R50-million per annum.

Advantages of BEE certificate

from VeriFi

• proposals for new business with government;

• the licensing of regulated activities which include

mining, liquor sales and the granting of

credit; leasing of premises from government or

private businesses; and

• the creation or continuance of business relations

with clients seeking assurance of a

company’s BEE compliance

Once a verification and certified rating through VeriFi

is accomplished, a company can perform business in

confidence, as its commitment to equality, nationbuilding

and unique South African business processes

will be recognised.

Key facts and figures

Year established: 2005

No of staff: 15

Major clients: BP, Public Investment Corporation

Limited, IBM South Africa, Saab Grintek Defence,

Independent Newspapers, Premier Fishing & Brands

Limited, African Equity Empowerment Investment

Limited, South African Express Airways SOC LTD.

CONTACT INFO

Tel: +27 86 175 3233

Email: info@verifibee.co.za

Website: www.verifibee.co.za

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SOUTH AFRICAN BUSINESS 2018


OVERVIEW

Tourism

Ten-million tourists visited South Africa in 2016.

Growth of close to 4% propelled South Africa’s incoming

tourist arrivals to over 10-million in 2016, with year-on-year

statistics from China showing an increase of 38%.

The Indian market grew by 22% and Africa accounted

for about 7.5-million of the visitors. The UK remains the number-one

source of overseas tourists with more than 400 000 visitors in 2016,

followed by the US and Germany.

There are 711 745 people employed in the tourism industry, with

road transport (29%), food and beverages (20%) and accommodation

(19%) absorbing the largest numbers. The sector contributes 9% to

South Africa’s gross domestic product (GDP) and the national tourism

ministry wants to increase that.

The rise in tourist numbers follows determined efforts by national

and provincial tourism bodies to promote the country. In Mpumalanga,

links to BRICS countries have yielded results and in KwaZulu-Natal

there has been a strong focus on the meetings, incentives, conference

and exhibition sector (MICE). A dedicated unit within the KZN

Tourism Authority, the Convention Bureau, has booked more than 50

events and conferences since 2012, bringing about R3-billion into the

provincial economy.

A Western Cape project to increase the number of seats on routes

to and from Cape Town called Cape Town Air Access has been

spectacularly successful. Cape Town International Airport’s capacity

has increased by more than 600 000 seats in the two years that the

programme has been running. Destinations include Turkey, Dubai,

SECTOR INSIGHT

The R500-million Zeitz

Museum of Contemporary

Art will attract international

visitors to Cape Town.

• Cullinan Holdings has

expanded its tourist

offering.

• Cape Town Air Access

has added 600 000 new

aeroplane seats.

Ethiopia, Victoria Falls and the

Netherlands. A big push has been

made to increase access to the US.

Cape Town Air Access is a

partnership between investment

agency Wesgro, the City

of Cape Town, the Western Cape

Provincial Government, Airports

Company South Africa, Cape

Town Tourism and South African

Tourism.

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OVERVIEW

The Port of Cape Town has

launched its dedicated cruise-ship

terminal, and the area between

the terminal and the Cape Town

International Convention Centre

is being developed. The precinct,

called the Yacht Club, includes a

hotel, residential and commercial

complex owned by the Amdec

Group, and will be linked to the

Waterfront by the extension of the

existing canal.

Elsewhere on the Foreshore, a

major development is in the works

which will include two Marriott

hotels. In the Cape Town CBD

there are going to be 500 new

rooms, courtesy of two Tsogo

Sun hotels, plus a smaller hotel in

the De Waterkant (Capital Mirage).

Tsogo Sun already operates several

hotels in greater Cape Town,

including three full-service hotels

in the city centre, the Cullinan,

Southern Sun Waterfront and

Southern Sun Cape Sun. The other

seven hotels cover five brands in

the Tsogo Sun stable. Elsewhere in

the Western Cape, Tsogo Sun has

hotels in Caledon, Beaufort West,

Mossel Bay and Plettenberg Bay.

The opening of the R500-

million Zeitz Museum of

Contemporary Art in the Victoria

& Alfred Waterfront in Cape Town

made a huge impact in 2017. With

a footfall of 24-million visitors going

through the Waterfront every

year, the Zeitz is well located to attract

good crowds. It is expected

to attract global art lovers as well.

The conversion of the old grain

silos which created 6 000m² of

gallery space was paid for by

the owners of the Waterfront,

Growthpoint Properties and the

Public Investment Corporation.

The Waterfront has two new hotels: Radisson Red and the Silo Hotel

attached to the Zeitz Museum.

The Port of Durban envisages a 32 000m² area that will cater for

two ships and at least 5 000 passengers. South Africa attracts 0.5% of

the world’s cruise-ship market which comprises about 15.4-million

passengers annually.

South Africa is bidding for the Rugby World Cup 2023. The bidding

committee claim that the tournament will produce an economic effect

of R27.3-billion (direct, indirect and “induced”). The plan envisages using

seven cities where existing infrastructure already exists. No major

building will be necessary as South Africa has good stadiums.

The international HSBC Rugby Sevens tournament was held for the

first time in Cape Town in 2015 and has been successful. The City of

Cape Town says that the tournament attracted more than 100 000 fans,

at least 25 000 of whom were international visitors. The local economy

benefited to the tune of R539-million.

Trends

The newest global trend in tourism, Airbnb, has come to South Africa.

A total of 394 000 visitors stayed in Airbnb accommodation in South

Africa in 2016, something that hoteliers and managers of guest lodges

will have to take into account for planning purposes. Roughly 50% of

the bed nights were taken up by foreigners with the majority visiting

the country’s three big metropolitan areas. Cape Town and Durban

showed the most growth, with 29 000 reported for Johannesburg.

The Airbnb visitors in South Africa are estimated at have engaged in

R2.4-billion worth of economic activity.

Another trend that is being explored is Halaal tourism, a global

market that is expected to reach $300-billion by 2026. The Western

117 SOUTH AFRICAN BUSINESS 2018


OVERVIEW

Cape has upwards of 200 mosques and a cosmopolitan lifestyle that

has seen various faiths coexist for many years.

Another potential growth area is health tourism. Upwards of sevenmillion

people travel the world annually for procedures, and South

Africa is well placed to receive a percentage of this market. A conference

held in Richards Bay in 2017 put the focus on issues such as investment,

training and the development of products.

A significant move in the South African hotel sector is the decision

by Marriott International to develop Marriott branded hotels in

Johannesburg and Cape Town. After acquiring the Protea brand in

2014, Marriott introduced “Protea Hotel by Marriott” as the model but

the decision in 2016 to use the mother brand for new hotels suggests

an increased commitment to the local market. In partnership with the

Amdec group, the group will spend about R1-billion on the Marriott

Hotel Melrose Arch (150 rooms) and Marriott Executive Apartments

Johannesburg Melrose Arch (200 flats).

Buying into Protea Hotels has given Marriott access not only to the

South African market, but to many other African countries. Between

Tshwane and Johannesburg (and in the nearby Magaliesberg mountains),

Protea by Marriott has no fewer than 17 hotels across three

brands: Fire and Ice, Protea; Protea Hotels and African Pride Hotels,

the premier brand.

Carlson Rezidor is another group wanting to expand, with plans for

hotels in eight of South African provinces on the schedule.

A lot of effort has gone into increasing the number of South

Africans who take trips within the country. In the 2016/17 financial

year, South African Tourism has committed R100-million to

promote domestic tourism.

Domestic tourism generated

R8.8-billion in the first quarter

of 2016, an improvement on the

same period in the year before.

A Tourism Incentive Programme

(TIP) has been launched by the

National Department of Tourism.

Tourism has been earmarked as

one of the six key growth sectors

in national government’s New

Growth Path.

An Enterprise Development

Project Management Unit (PMU)

has been established. Among

the PMU’s tasks will be to manage

an Enterprise Development

Online Information Portal for

small, medium and microenterprises.

Two tourism incubator

hubs are also to be established

in the Pilanesberg (North

West Province) and Manyeleti

(Mpumalanga Province).

One of the reasons for the

success of South Africa’s tourism

sector is its diversity. Superb

natural beauty, excellent beaches

(45 have Blue Flag status),

incomparable wildlife, vibrant

cities and cultural and heritage

attractions that represent a heterogeneous

population and a

dramatic history, South Africa really

does have it all. Culture and

heritage accounts for fully 40%

of world tourism and is one of

the fastest-growing subsectors.

In the five years to 2021, South

Africa will be the venue for more

than 200 conferences that will

add R1.6-billion to the economy

and attract about 300 000

participants.

South Africa has 19 national

parks and each province has its

own reserves. There are many

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OVERVIEW

private game farms and nature

reserves, a number of which

cater to the luxury market.

There are eight UNESCO World

Heritage Sites in South Africa:

Robben Island Museum, Cradle

of Humankind, Mapungubwe

Cultural Landscape, iSimangaliso

Wetland Park, uKhahlamba

Drakensberg (newly named

Maloti Drakensberg Transfrontier

Park), Richtersveld, Cape Floral

Kingdom and Vredefort Dome.

Other popular history

or cultural sites include the

Nelson Mandela Museum,

Hector Petersen Memorial,

Apartheid Museum, Freedom

Park, Voortrekker Monument,

Constitution Hill, District Six

Museum and Bo-Kaap Museum.

There are a number of opportunities

to further develop the

full potential of tourism in heritage

sites. The Department of

Arts and Culture is responsible

for the promotion of Heritage

Month, including Heritage Day.

Structure

The South African tourism industry

is well segmented. The distribution

channel is dominated by

four major groups, each of which

runs several companies in different

parts of the value chain.

According to Wesgro, the Western

Cape’s investment promotion

agency, the biggest groups are:

• Imperial Holdings: mostly

logistics, companies include

Europcar and Tempest

Car Hire.

• Bidvest Travel and Aviation:

Budget Rent a Car, Bidvest Sky

Lounge, Rennies Foreign Exchange, BidTravel, Harvey World Travel,

HRG Rennies Travel and BidAir Services.

• Cullinan Holdings: iKapa Tours and Travel, Thompsons, Hylton Ross

Tours, Pentravel, Grosvenor Tours and Springbok Atlas. The latter

two were bought by Cullinan from Imperial in 2013.

• Tourvest: The group controls 63 companies dealing with many

aspects of the tourist experience: tour operators and conference

organisers, foreign exchange, retail (gift shops and duty-free shops)

and hotels (African Hotels and Adventures).

The principal airline operators in South Africa are SAA, the alliance

of British Airways, Comair, and Kulula, a low-cost airline. SAA has ties

with SA Express and owns low-cost carrier Mango. SA Express and SA

Airlink fly to smaller destinations in South Africa and Southern Africa.

Safair is owned by ASL Aviation Group.

Casinos are a popular part of many entertainment and accommodation

complexes around the country, although relatively few licences

are in operation.

Private game reserves and golf resorts has been one of the fastestgrowing

markets in recent years.

The Garden Route and the KwaZulu-Natal coastline are areas rich in

golfing venues. Between George and Cape St Francis there are many

highly-rated golf courses including Pinnacle Point, Fancourt (three

courses), Simola, Plettenberg Bay Country Club and St Francis Links.

Wine tourism is said to contribute indirectly more than R4.5-billion

to the South African tourism sector (South African Wine Industry

Information and Systems, SAWIS). According to Wine Tourism South

Africa, a website and publishing concern that provides information

about the wine industry, 43% of visitors to South Africa visit the

Cape Winelands.

The Industrial Development Corporation has committed to investing

R2-billion in local resorts (and in the African hotel market). There are

several unused or under-used facilities in South Africa that could be

fixed up to cater to the many South Africans who currently don’t take

holidays. An audit of possible properties is under- way. One suggestion

is that former military bases could be converted into low-fee resorts.

Other niche areas that are being explored include astrology and

adventure tourism.

ONLINE RESOURCES

African Business Travel Association: www.abta.co.za

National Department of Tourism: www.tourism.gov.za

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

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

South African Tourism: www.southafrica.net

South African Tourism Services: www.satsa.com

119 SOUTH AFRICAN BUSINESS 2018


INDABA HOTEL, SPA & CONFERENCE CENTRE

YOUR AFRICAN DESTINATION IN JOHANNESBURG

Just north of the fast paced business world of Sandton in the upmarket residential suburb of Fourways, lies

the 258 bedroom Indaba Hotel, Spa & Conference Centre. It is a compelling blend of business-like

convenience and efficiency, with a relaxed and warm country atmosphere.

Coupled with easy and convenient access to all main highways, OR Tambo International Airport and a

mere 15km from Lanseria International Airport, the hotel features an impressive selection of some 24

multi-purpose conference venues that can accommodate up to 2 000 delegates in total with banqueting

facilities for up to 500 guests.

With two restaurants on property, there is no need to leave the comfort of the hotel to enjoy world class cuisine.

Our 300 seater Chief’s Boma Restaurant caters for all tasted with over 120 African inspired dished ranging from

North African Moroccan cuisine to Koeksisters and Melktert from the cape – and with a “Shisa Nyama” grill

boasting a variety of game meats sizzled to your specification, everyone is sure to find their favourite.

Well known for the lavish full South African Breakfast Buffet, the Epsom Terrace Restaurant also boasts an

evening Bistro Menu which will delight even the most demanding gourmand’s exacting standards. A

traditional Carvery Lunch with live music can be enjoyed every Sunday with limited outdoor seating

available for those who prefer dining al fresco – after all, Jo’burg really has the best weather in South Africa.

INDABA HOTEL, SPA & CONFERENCE CENTRE

C/O WILLIAM NICOL DRIVE & PIETER WENNING ROAD, FOURWAYS

Phone: +27 11 840 6600 | Email: indaba@indabahotel.co.za | Website: www.indabahotel.co.za


Take a wander through the 17 hectares of lush bushveld gardens and you will find the Mowana Spa - a

wellness sanctuary which will revive your senses, rejuvenate your body and soothe your soul. The Mowana

Spa, which takes its name from the majestic Baobab Tree of African Lore and Legend, offers wellness

journeys based on the recognized healing energy of Tribal Massaging.

Signature Pamper Journeys include the decadent Mowana Full Day African Rejuvenation Spa pamper

which is an indulgent spa experience including breakfast, lunch, complimentary beverages and six

revitalizing treatments; the romantic Mowana African Skies Night Spa pamper with includes dinner,

complimentary beverages and 3 relaxing treatments; and the indulgent Mowana African Escape Spa &

Stay Pamper Journey for the ultimate decadent relaxation.

Our commitment to service excellence and staff empowerment through training and mentoring will ensure

that your needs are met and your expectations exceeded as you enjoy a Day of Pampering at Mowana Spa.

The Indaba Hotel and Mowana Spa are also PROUDLY GREEN ensuring responsible tourism and minimising

carbon foot print through extensive recycling of waste products, water-wise gardening, greening

conference initiatives, better material choices, minimising power usage and buying local - after all, a better

place to live is a better place to visit.

The Indaba Hotel is sure to meet all your business and leisure requirements. We look forward to welcoming

you to our oasis in the City.

15 MINUTES FROM SANDTON ... A MILLION MILES AWAY


Nothing says

welcome like

a Volkswagen.

From bergs, to bushes, to beaches, a Volkswagen will

always make your guests feel at home while they’re away.

Your executive suite on wheels.

Your vehicles are your business. They’re how you give travellers the best experience they could hope for.

So don’t just choose a vehicle that gets people from A to B. Choose a vehicle that will make the luxurious

journey in between a memorable part of the experience. Whatever your guests need, the Caravelle delivers.

Its comfortable interior, combined with a versatile driver workplace make it the ideal vehicle to take

your business class guests on the open road. Or a dirt road. Or a mountain pass. Any road really, thanks

to Volkswagen’s 4MOTION® all-wheel-drive system. Second row seats that swivel to face fellow passengers

in the back row, a pop-up table and a plethora of storage areas all over mean that your guests will always

travel in absolute comfort and with convenience. There is only one problem: you might struggle to get your

passengers out of it when you arrive at your destination…


O&M CAPE TOWN 2382/E

Your ready-to-go shuttle solution.

No other vehicle in its class combines versatility, reliability and durability as perfectly as the Caddy Crew Bus.

Its hard-wearing interior can be extended from five to an optional seven seats and, with just a few

adjustments, can also be converted into a 2-seater with a very generous 3.2m 3 load compartment if

you need to swap out some guests to deliver larger goods (4.1m 3 on the Maxi). You can always trust the

Caddy Crew Bus to get the job done. It’s like your star tour guide: once you’ve got one, you’ll wonder

how you ever managed without it.

Your group adventure partner.

There is so much to see in our diverse and beautiful country: mountain tops, beaches, desert

pans, game parks, bustling cities and tranquil villages. The options are as varied as the roads

you travel to get there. So you need a vehicle that can deal with everything this unique

country puts in your path. Capable of taking anything from 5 to 11 people, the Transporter

Crew Bus is ready to go at a moment’s notice. It’s spacious, comfortable, practical and

packed with safety features like ESP, ASR, EDL, Traction Control and Hill Hold control, for

when you’re feeling really adventurous. What’s more, Volkswagen’s 4MOTION® all-wheel

drive helps you on every road South Africa lays out in front of you and will get you to those

slightly harder to reach spots for the perfect photo opportunity. The Transporter Crew Bus is

your ideal fun-loving, adrenaline seeking tourist co-host.

Commercial

Vehicles


PROFILE

African Business

Travel Association

Bringing together Africa’s Corporate Travel Professionals.

As the only corporate travel association focusing not

just on South Africa but also Africa’s emerging markets,

the African Business Travel Association (ABTA)

provides a platform for corporate travel management

stakeholders across the continent through

education and the sharing of best practice.

The association holds region-specific events and

facilitates information flow using various platforms

in countries across Africa, including Angola, Ghana,

Kenya, Nigeria and South Africa.

These events bring together corporate travel buyers,

travel management companies and industry

suppliers from across Africa’s emerging markets and

are the best attended events of their kind. These

events allow all industry sectors the opportunity

to engage with each other, share challenges, brainstorm

solutions, identify trends and investigate best

practice, thereby elevating the level of communication

between sectors and building stronger industry

practices.

ABTA has over 300 members and member companies

spanning the African continent and all industry

sectors. ABTA membership is a key advantage in

assisting stakeholders and companies in information

gathering, educational input and peer-to-peer

networking opportunities whether they are booking,

buying, managing or supplying business travel

products or services.

Any individual with a direct or indirect involvement

in business travel should become a member of ABTA,

including:

• Personal assistants

• Travel bookers and coordinators

• Travel buyers

• Finance managers

• Procurement managers

• Supply chain and sourcing managers

• Travel consultants

• Travel agents and TMCs

• Industry suppliers

• Travel press

• Academics.

Although ABTA initiatives are open and relevant to

all industry sectors, educational focus is aimed at

the corporate sector, with the belief that a bettereducated

buying community will drive the continued

advancement of the business travel industry.

Through Education, Innovation and Collaboration,

ABTA assists in raising the standard of the business

travel sector across Africa; increases awareness of

Africa among the global travel fraternity; assists

members in adding value to their organisations;

creates a platform for region-specific travel management

education, networking opportunities and

continued professional development; provides

cross-border benchmarks on travel services, and

finally, plays a pivotal role in Africa’s emergence as

a global player in the business travel industry.

CONTACT INFO

Physical address: 54 Milner Avenue, Roosevelt

Park, Johannesburg

Postal address: PO Box 2594, Pinegowrie 2123

Tel: +27 11 888 8178

Email: monique@abta.co.za

Website: www.abta.co.za

SOUTH AFRICAN BUSINESS 2018

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OVERVIEW

Information and communications

technology

A rural network is providing free local calls.

SECTOR INSIGHT

Barclays Africa Group spent

R3.1-billion on ICT in 2016.

• Farmers and Vodacom

are working on a sheeptracking

collar.

The biggest spenders on information communications technology

(ICT) are banks and other financial institutions. Existing banks may

have large customer bases but agile new competitors are able to

do without branch infrastructure and can connect directly with

clients via mobile phones and other devices. The financial sector is

responding via large investments in fintech.

One example is Barclays Africa Group’s expenditure of R3.1-billion

on ICT in 2016. The Big Four banks spent R30-billion in the year to

June 2016, with Standard Bank laying out R14-billion in that period

(Tech Central).

Companies in the sector are also spending heavily to stay ahead in

terms of technology. By way of example, Vodacom has spent approximately

R577-million over three years in the province of Limpopo alone.

South Africa’s appetite for fast Internet connectivity is growing fast.

The state-owned company Telkom controls most of the country’s fibre

cable but several smaller private companies are winning contracts to

lay fibre-optic cables around the country.

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

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

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

Dark Fibre Africa are forcing the bigger telecommunications companies

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

away from subscriber television services.

Allowing access to the Internet

to rural people and poorer people

in urban areas is a policy priority.

Access in South Africa is improving

all the time. As part of its mandate,

the Independent Communications

Authority of South Africa (ICASA)

has seen to it that various private

operators have connected more

than 623 schools around the country.

The Western Cape Provincial

Government and Neotel will roll

out 384 Wi-Fi hotspots in public

areas, and is aiming for complete

coverage by 2019.

Private companies like

Vodacom allocate specific budget

items to rural access and in

September 2017 it announced

that it would zero-rate its services

for university student and staff

who are Vodacom subscribers. To

illustrate the vastly different uses

to which technology can be put,

Vodacom is also developing an

affordable sheep-tracking collar

with farmers in the Eastern Cape.

There are also city programmes

such as the TshWifi (Tshwane), a

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OVERVIEW

free service available in 780 zones

such as libraries, educational institutions

and clinics and libraries.

More than 1 500km of network

fibre has been rolled out in

Gauteng province since 2014. A

total of 3 000 access sites should be

connected by 2020.

The Small Enterprise

Development Agency runs ICT

incubators in several parts of

South Africa. The SoftstartBTI

ICT incubator is in Midrand and

Tuksnovation, a high-tech incubator,

is at Pretoria University. In the

Nelson Mandela Bay Metropolitan

Municipality there is the SEDA

Nelson Mandela Bay ICT Incubator

(SNII). A new research and development

laboratory was established

by SNII in 2016, focussing

on apps, mechanical and technical

prototypes, and software

solutions.

SNII also hosted a national conference

on “Universal Affordable

Access to Communications in

South Africa” in 2016. An example

of what can be done to reduce

telecommunication costs in rural

areas was presented by the

University of the Western Cape,

who teamed up with the Mankosi

community in a rural part of

the Eastern Cape to create the

Zenzeleni Network. This is essentially

a community telecoms

company where local calls are free,

data is considerably cheaper and

calls to other networks are half the

normal cost.

The Universal Service and

Access Agency of South Africa

(USAASA) is providing connectivity

for schools in five provinces

and smart devices have been

distributed to schools.

Incentives relevant to companies and educational bodies in the

ICT sector are available from the Department of Trade and Industry

(dti) and include:

• The Technology and Human Resources for Industry Programme

(THRIP): companies and educational institutions working to

improve technology; 50/50 cost sharing grant to a maximum of

R8-million

• Technology Development Fund: the Technology Innovation

Agency makes up to R50-million available for up to 10 years

• Technology Venture Capital: managed by the Industrial

Development Corporation; commercialisation of innovative

products, processes and technologies.

The National Electronic Media Institute of South Africa (NEMISA) was

originally created to develop skills for the broadcasting environment,

but is now being integrated with eSkills Network and the Institute

for Satellite and Software Applications (ISSA) to form Ikamva National

e-Skills Institute (iNeSI). The focus is on developing e-skills capacity by

creating partnerships that guide e-skills initiatives.

There are many opportunities for employment in the sector. It

is ironic that in a country with a very high unemployment rate, the

Johannesburg Centre for Software Engineering (JCSE) in 2016 put

the number of vacancies in software and application development,

cloud computing and information security at 40 000 (Sunday Times).

Training is available from organisations such as the Quad Digital

Academy, a Standard Bank initiative, an ICT Incubator in Port Elizabeth

run by the Small Enterprise Development Agency (Seda) and from the

City of Johannesburg (which runs a digital intern programme called

COJEDI). Scarce skills training is offered by the City of Cape Town (in

partnership with SAP Africa) in software programming. The programme

is called “Western Cape Skills for Africa”.

ONLINE RESOURCES

Ikamva National eSkills Institute: www.enesi.org.za

Independent Communications Authority: www.icasa.org.za

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

Technology Innovation Agency: www.tia.org.za

127 SOUTH AFRICAN BUSINESS 2018


OVERVIEW

Banking and financial services

New banks and new stock exchanges are adding to South Africans’ choices.

SECTOR INSIGHT

Tyme has the first new

banking licence since 1999.

South Africa’s banking and financial services sector is experiencing

a surge of innovation with several new banking

licences expected to be granted before the end of 2018.

First to get over the line in 2017 was Tyme, which stands

for Take Your Money Everywhere and refers to the bank’s digital

origins and its plans for the future which do not involve opening a

branch network. Commonweath Bank of Australia bought a controlling

share of Tyme when it was a loans company and African Rainbow

Capital is the venture’s BEE partner. The banking licence is the first to

be issued since Capitec was granted a licence by the South African

Reserve Bank in 1999.

Capitec has since gone on to become a major player on the

South African retail banking scene. It now merits inclusion in a new

“Big Five”, with Standard Bank, Absa, FNB and Nedbank. In terms of

assets, the five biggest banks are Standard Bank, FirstRand (which

owns FNB), Absa (which is part of Barclays Group Africa), Nedbank

and Investec. According to the Reserve Bank, this group had 89% of

market share in 2015.

Merchant banking and investment

banking are the most competitive

sectors with companies

such as BoE Private Clients, Rand

Merchant Bank and Investec

prominent.

There are 40 international

banks with offices in South Africa,

including Bank of China, Standard

Chartered, JP Morgan Chase, HSBC

and Citibank.

Afgri, South Africa’s largest agricultural

company which already

offers financial services, bought

the South African Bank of Athens

in 2017. The bank was purchased

from the National Bank of Greece

Group and is still subject to regulatory

approval. Most South African

agricultural companies have

financial divisions.

Other applicants for new banking

licences are Discovery and Post

Bank, a division of the South African

Post Office. Discovery is already a

giant on the JSE (market value of

R83-billion) with a wide range of

products and services that give it

access to millions of customers. Life

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OVERVIEW

insurer MMI Holdings is entering a

partnership with African Bank to

enable it to start taking deposits

and loaning money.

A further two state banks are

planned: Ithala (currently an enterprise

funder in KwaZulu-Natal)

and the Human Settlements

Development Bank which will

focus on housing for poorer

households and state-funded

housing projects.

Financial services group Old

Mutual (a 54% stakeholder in

Nedbank) is set to create four

stand-alone businesses out of the

Old Mutual Group. This will allow

the UK-based wealth management

business and the New York-based

asset managers to be free of linkages

to the rand, while the South

African businesses, Nedbank and

Old Mutual Emerging Markets, can

focus on their specialities.

Fintech is the new buzz word in

the world of banking. Barclays has

established a worldwide organisation

to promote the latest thinking

in app development. Rise has

seven outlets around the world, including

one in Woodstock in Cape

Town. The photograph on the previous

page shows Nedbank’s new

property venture office in Mount

Edgecombe.

The insurance market has

become more varied over time,

with a greater variety of products

available to more market segments,

including middle-income

earners. An example of a product

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.

Framework

The South African banking and financial-services sector has a good

international reputation because of a strong regulatory and legal

framework. In 2017 this was tested when several auditing and consulting

firms were implicated in accusations of “state capture”. The fact

that the allegations were brought into the open by alert civil society

organisations and the media has been cited by some commentators

as positive factors.

The South African Reserve Bank (SARB) is the central bank and

falls under the National Department of Finance. It sets monetary

policy and decides on domestic interest rates. The SARB oversees

the banking-services sector, while the Financial Services Board (FSB)

governs the non-banking financial-services industry.

The Banking Association South Africa represents all registered

banks, local and international. Major sub-committees oversee capital

supervision, credit risk, consumer affairs and the SA Securities

Lending Association.

The JSE is the world’s 19th-biggest exchange and nearly 400

companies are listed on the JSE or AltX, the JSE-owned exchange

for smaller companies. Other investment options that are available

through the JSE are Yield X (interest rate and currency instruments),

the South African Futures Exchange (SAFEX) and the Bond Exchange

of South Africa (BESA).

In 2017 several new exchanges won regulatory approval, with

ZAR X winning the nod from the Financial Services Board (FSB).

There is no trading in derivatives or high-frequency trading on

this exchange.

A2X, in which African Rainbow Capital is an investor, will offer

secondary listings platform for JSE-listed companies and aims to cut

costs for investors. 4 Africa Exchange (4AX) will focus on companies

with market capitalisation of up to R8-billion. Agricultural trading

company NWK is a shareholder in this venture. The newcomers all

promise to use the latest technology to make trading simpler, quicker

and cheaper.

ONLINE RESOURCES

Auditor-General South Africa: www.agsa.co.za

Financial Services Board: www.fsb.co.za

Insurance Institute of South Africa: www.iisa.co.za

Insurance South Africa: www.insurance.za.org

JSE Limited: www.jse.co.za

The South African Institute for Chartered Accountants:

www.saica.co.za

129 SOUTH AFRICAN BUSINESS 2018


OVERVIEW

Development finance and SMME

support

South Africa has over two-million SMMEs.

SECTOR INSIGHT

The Northern Cape is

supporting co-operatives.

The National Department of Small Business Development (DSBD)

has several programmes to assist small, micro and medium

enterprises (SMMEs) and co-operatives.

These include:

• The Black Business Supplier Development Programme, a costsharing

grant to promote competitiveness

• The Co-operative Incentive Scheme, a 100% grant.

The Small Enterprise Development Agency (Seda) is a subsidiary

of the DSBD. In a recent publication, Seda reported that the number

of SMMEs in South Africa increased by only 3%, from 2.18-million

to 2.25-million between 2008 and 2015. Limpopo had the highest

growth rate (34%), followed by Gauteng. Rural provinces tend to have

more informal SMMEs, due to their high number of hawkers and

informal traders. About half of South Africa’s formal SMMEs operate

in Gauteng and more than half are in the wholesale and retail sector

and the accommodation sector. The next most popular sectors are

community, social and personal services.

Recent studies have shown that South Africa’s townships represent

a substantial market. The CEO of Minanawe Marketing, GG

Alcock, told the FMCG Insights conference in 2016 that the “invisible

market” was worth R10-billion. Alcock told the Sunday Times that a

Johannesburg township fast food operator made R50 000 per day

from three outlets.

Seda has 42 incubation centres

in South Africa under its

Seda Technology Programme

(STP). An example is the Zenzele

Technology Demonstration

Centre, a project that helps smallscale

miners and mineral processors

to create viable businesses.

The National Gazelles is a national

SMME accelerator jointly

funded by Seda and the DSBD.

The aim is to identify and support

businesses with growth potential

across priority sectors. Businesses

can receive up to R1-million for

training, productivity advice, business

skills development and the

purchase of equipment.

The Industrial Development

Corporation (IDC) supports

SMMEs either by disbursing loans

or by taking minority shares in

enterprises and giving advice.

An agricultural project in the

Northern Cape is an example of

the kind of work it does. Through

the IDC’s Transformation and

Entrepreneurial Scheme, a black

economic empowerment project

is underway at Kakamas, where

emerging farmers are planting

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OVERVIEW

citrus. Vaal Community Citrus

could create 1 330 jobs.

The Provincial Government of

the Northern Cape is an example

of a government body which

puts a strong emphasis on supporting

small business as a way

of stimulating economic activity,

getting more people into the

mainstream of the economy and

bolstering food security. In 2016,

support was given to 210 SMMEs

and 91 co-operatives. Business

and financial management training

was offered to 83 informal

traders. In partnership with the

Small Enterprise Development

Agency, nine cadets received

training before receiving work

places at various municipalities.

The Department of Economic

Development and Tourism hosted

an Economic Research Day

which brought together support

agencies, government and

private companies such as Petra

Diamonds and Anglo American.

A Provincial Incubation Strategy

is planned, as is a specialist

Renewable Energy Incubator.

Two of the Eastern Cape

Development Corporation’s seven

business units are devoted to small

business: Development Finance

and Enterprise Development.

The ECDC and the Technology

Innovation Agency (TIA) jointly

run the TIA-ECD Innovation Seed

Fund Programme which identifies

and co-funds early stage technology

innovation projects in the

Eastern Cape.

The National Department of

Labour has a programme to support

people with disabilities. The

Sheltered Employment Factories

initiative puts out about 3 000 different

product types in fields such as leather and canvas work, furniture,

textiles, screen printing and book binding.

The Enterprise Investment Programme (EIP) of the National

Department of Trade and Industry (dti) is another support programme.

In 2017, the success of a uniform and protection equipment company

was advertised by the EIP: having received a grant in 2014, Thorax LP

Equipment, a 100% black-women-owned company, has subsequently

turned over more than R8-million and employed many young people.

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

funder of projects.

Private sector

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.

Agribusiness 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. Training is offered

through a Business Accelerator Programme. As a non-profit initiative of

the Old Mutual Group, the fund focusses on the cash flow of potential

businesses rather than insisting on security in the form of property.

Private companies are supporting SMMEs through their buying chain.

Woolworths is funding TechnoServe to ensure that small tomato growers

can grow produce that will meet the demanding standards of the retailer,

and to help them expand production. A regular supplier to Woolworths,

Qutom, assists with the project.

Using the supply chain to benefit small business is at the heart of

Anglo American’s Zimele, which runs four enterprise development and

investment funds. Hub managers support small business in the downstream

sectors relevant to the resource mined by the Anglo subsidiary.

The Thermal Coal Hub and the Platinum Hub are two examples. The

Mondi Zimele Hub in Piet Retief supports businesses in the paper and

forestry supply chain.

ONLINE RESOURCES

Development Bank of Southern Africa: www.dbsa.org

Eastern Cape Development Corporation: www.ecdc.co.za

Gazelles: www.nationalgazelles.org.za

National Empowerment Fund: www.nefcorp.co.za

National Department of Small Business Development:

www.dsbd.gov.za

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

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

131 SOUTH AFRICAN BUSINESS 2018


FOCUS

Positive change

through enterprise

development

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

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

Zizipho Nyanga, the new CEO of the Masisizane

Fund, has 10 years’ experience in business support,

entrepreneurship, deal making, financial management,

auditing, risk advisory and internal control

improvements in fast-paced organisations.

Promoted to the position of CEO in October

2016, she initially joined the Masisizane Fund in

2014 as the Head of Post Investment Monitoring

and Business Support.

During this time she also served as the Alternate

Chairperson of the Executive Committee Credit

Review and a Member of the Enterprise and

Supplier Development Committee (Mutual & Federal).

“Institutions like ours have a very important role to

play in creating access to funding for small businesses,

therefore we need to work closely with those that

have a similar mandate to us in order to make meaningful

impact. Maintaining strong and effective partnerships

with institutions like SEFA, Productivity SA,

SEDA, SAICA and Department of Rural Development

is very important in ensuring this," Zizipho says.

Zizipho holds a BCom Accounting from the (former)

University of Transkei and a Higher Diploma in

Accounting from Wits University. After graduating

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

qualified as CA (SA).

EY’s global footprint provided her with an international

opportunity while she was seconded to

the San Jose office in California. During her time

there she was exposed to the entrepreneurial culture

in small businesses and her passion for rural

development and economic transformation was

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

economic transformation is to walk a journey with

the business and assist them to grow into a thriving

enterprise rather than to just give them money,

waiting for them to pay back and hoping for the

best. Growing and assisting a business successfully

can only be done through establishing good and

trustworthy partnerships,” Zizipho says.

It is evident from her career history that

Zizipho has the skills and experience necessary to

continue building on the good work of the Masisizane

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

a non-profit funding company to provide financial

and non-financial support to small, medium and

micro enterprises.

Zizipho Nyanga

SOUTH AFRICAN BUSINESS 2018

132


MASISIZANE FUND

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

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

The mandate of the Fund is to contribute meaningfully to employment

creation, poverty eradication and reduction of inequality, economic growth

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

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

enterprises.

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

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

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

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

productive and labour absorbing sectors.

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

sectors, coupled with a comprehensive SMME finance solution that includes

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

Agribusiness

Franchising

Supply Chain

The Fund supplies non-financial value adding post investment services

including capacity development, business management and technical

support, financial education, market development and product/service

quality standards and compliance. A Business Accelerator Program has

been established where potential clients receive targeted skills training and

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

Masisizane operates nationally with its head office in Gauteng and regional

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

Submit the following documents for an initial screening by the relevant

provincial office:

• Comprehensive business plan with market analysis and projections;

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

latest management accounts;

• For start-up businesses – financial projections;

• Tax clearance certificate;

• Off take agreements and/or letters of intent;

• Signed consent for a credit check.

Contact details:

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

• Western and Northern Cape – 021 509 5074

• KwaZulu-Natal – 031 335 0400

• Eastern Cape – 043 704 0116

• Limpopo and Mpumalanga – 015 287 4279

For more information and where to find us visit

www.masisizane.co.za

An initiative of the

Group

Old Mutual is a Licensed Financial Services Provider


LISTING

South African National Government

An overview of South Africa’s national government departments.

President

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

Postal address: Private Bag X1000, Pretoria 0001

Tel: +27 12 300 5200

Fax: +27 12 323 8246

Website: www.thepresidency.gov.za

Website: www.economic.gov.za

Deputy President

Address: Union Buildings, Government Avenue, East Wing,

1st Floor, Arcadia, Pretoria 0001

Postal address: Private Bag X1000, Pretoria 0001

Tel: +27 12 300 5200

Fax: +27 12 323 8246

Website: www.thepresidency.gov.za

Minister in the Presidency

Address: Union Buildings, Government Avenue, East Wing,

1st Floor, Arcadia, Pretoria 0001

Postal address: Private Bag X1000, Pretoria 0001

Tel: +27 12 300 5200

Fax: +27 12 300 5795

Website: www.thepresidency.gov.za

Dept of Agriculture, Forestry and Fisheries

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

and Soutpansberg Road, Arcadia, Pretoria

Postal address: Private Bag X250, Pretoria

Tel: +27 12 319 7319

Fax: +27 12 319 6681

Website: www.daff.gov.za

Department of Arts and Culture

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

Bopape streets, Arcadia, Pretoria 0001

Postal address: Private Bag X899, Pretoria 0001

Tel: +27 12 441 3000 | Fax: +27 12 440 4485

Website: www.dac.gov.za

Department of Basic Education

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

Postal address: Private Bag X9034, 8000

Tel: +27 12 357 3000

Fax: +27 12 323 5989

Website: www.education.gov.za

Department of Communications

Address: Tshedimosetso House, 1035 Frances Baard (Cnr Festival Street),

Hatfield, Pretoria 0001

Postal address: Private Bag X745, Pretoria 0001

Tel: +27 12 473 0000

Fax: +27 12 462 1646

Website: www.doc.gov.za

Department of Cooperative Governance and

Traditional Affairs

Address: 87 Hamilton Street, Arcadia, Pretoria 0083

Postal address: Private Bag X802, Pretoria 0001

Tel: +27 12 334 0705

Fax: +27 12 326 4478

Website: www.cogta.gov.za

Department of Correctional Services

Address: 123 Poyntons Building, West Block,

cnr Schubart and Church streets, Pretoria 0001

Postal address: Private Bag X136, Pretoria 0001

Tel: +27 12 307 2934/2884

Fax: +27 12 323 4111

Website: www.dcs.gov.za

Department of Economic Development

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

Esselen streets, Sunnyside, Pretoria 0001

Postal address: Private Bag X149, Pretoria 0001

Tel: +27 12 394 1006

Fax: +27 12 394 0255

Website: www.economic.gov.za

SOUTH AFRICAN BUSINESS 2018

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LISTING

Department of Defence

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

Postal address: Private Bag X427, Pretoria 0001

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

Website: www.dod.mil.za

Department of Energy

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

Postal address: Private Bag X96, Pretoria 0001

Tel: +27 12 406 8000

Fax: +27 12 319 6681

Website: www.energy.gov.za

Department of Environmental Affairs

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

Arcadia, 0083

Postal address: Private Bag X447, Pretoria 0001

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

Website: www.environment.gov.za

Department of Finance (National Treasury)

Address: 40 WF Nkomo Street,

Old Reserve Bank Building, 2nd Floor, Pretoria

Postal address: Private Bag X115, Pretoria 0001

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

Website: www.treasury.gov.za

Department of Health

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

Pretoria 0001

Postal address: Private Bag X399, Pretoria 0001

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

Website: www.doh.gov.za

Department of Higher Education

and Training

Address: 123 Francis Baard Street, Pretoria 0001

Postal address: Private Bag X893, Pretoria 0001

Tel: +27 12 312 5555

Fax: +27 12 323 5618

Website: www.dhet.gov.za

Department of Home Affairs

Address: 909 Arcadia Street, Hatfield 0083

Postal address: Private Bag X114, Pretoria 0001

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

Website: www.dha.gov.za

Department of Human Settlements

Address: Govan Mbeki House, 240 Justice Mahomed, Sunnyside, Pretoria 0001

Postal address: Private Bag X644, Pretoria 0001

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

Website: www.dhs.gov.za

Department of International Relations and

Cooperation

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

0001

Postal address: Private Bag X152, Pretoria 0001

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

Website: www.dirco.gov.za

Department of Justice and Constitutional

Development

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

Streets, Pretoria 0001

Postal address: Private Bag X276, Pretoria 0001

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

Website: www.doj.gov.za

Department of Labour

Address: 215 Laboria House, cnr Francis Baard and

Paul Kruger Streets, Pretoria 0001

Postal address: Private Bag X499, Pretoria 0001

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

Website: www.labour.gov.za

Department of Military Veterans

Address: 328 Festival Street, Hatfield, Pretoria 0001

Postal address: Private Bag X943, Pretoria 0001

Tel: 080 232 3244 (SA only)

Website: www.dmv.gov.za

Department of Mineral Resources

Address: 70 Meintje Street, Trevenna Campus, Sunnyside 0007

Postal address: Private Bag X59, Pretoria 0001

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

Website: www.dmr.gov.za

Department of Police (Civilian Secretariat for

Police Service)

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

Postal address: Private Bag X463, Pretoria 0001

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

Website: www.saps.gov.za

135 SOUTH AFRICAN BUSINESS 2018


LISTING

Department of Public Enterprises

Address: Infotech Building, 1090 Arcadia Street, Hatfield,

Pretoria 0001

Postal address: Private Bag X15, Hatfield 0028

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

Website: www.dpe.gov.za

Department of Public Service and

Administration

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

Postal address: Private Bag X884, Pretoria 0001

Tel: +27 12 336 1700

Fax: +27 12 336 1809

Website: www.dpsa.gov.za

Department of Public Works

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

Pretoria Central

Postal address: Private Bag X65, Pretoria 0001

Tel: +27 12 406 21978

Fax: +27 086 276 8757

Website: www.publicworks.gov.za

Department of Rural Development and

Land Reform

Address: 184 Old Building, cnr Jeff Masemola

and Paul Kruger Streets, Pretoria 0001

Postal address: Private Bag X833, Pretoria 0001

Tel: +27 12 312 9300

Fax: +27 12 323 3306

Website: www.ruraldevelopment.gov.za

Department of Science and Technology

Address: DST Building, Building No 53, CSIR South Gate Entrance, Meiring

Naude Road, Brummeria, Pretoria 0001

Postal address: Private Bag X727, Pretoria 0001

Tel: +27 12 843 6300

Fax: +27 12 349 1041/8

Website: www.dst.gov.za

Department of Small Business Development

Address: The dti, Block A, 3rd Floor, 77 Meintjies Street, Sunnyside,

Pretoria 0001

Postal address: Private Bag X84, Pretoria 0001

Tel: +27 12 394 1006

Fax: +27 12 394 1006

Website: www.dsbd.gov.za

Department of Social Development

Address: HSRC Building, North Wing, 134 Pretorius Street, Pretoria 0001

Postal address: Private Bag X904, Pretoria 0001

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

Website: www.dsd.gov.za

Department of State Security

Address: Bogare Building, 2 Atterbury Road, Menlyn, Pretoria 0001

Postal address: PO Box 1037, Menlyn 0077

Tel: +27 12 367 0700 | Fax: +27 12 367 0749

Website: www.ssa.gov.za

Department of Sport and Recreation

South Africa

Address: Regent Place, 66 cnr Madiba and Florence Ribeiro Street,

Pretoria 0001

Postal address: Private Bag X896, Pretoria 0001

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

Website: www.srsa.gov.za

Department of Tourism

Address: 17 Trevena Street, Tourism House, Sunnyside, Pretoria 0001

Postal address: Private Bag X424, Pretoria 0001

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

Website: www.tourism.gov.za

Department of Trade and Industry

Address: The dti, 77 Meintjie Street, Block A, Floor 3,

Sunnyside, Pretoria 0001

Postal address: Private Bag X274, Pretoria 0001

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

Website: www.thedti.gov.za

Department of Transport

Address: Forum Building, 159 Struben Street,

Room 4111, Pretoria 0001

Postal address: Private Bag X193, Pretoria 0001

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

Website: www.transport.gov.za

Department of Telecommunications and

Postal Services

Address: Iparioli Office Park, 399 Jan Shoba Street,

Hatfield, Pretoria 0001

Postal address: Private Bag X860, Pretoria 0001

Tel: +27 12 427 8000 | Fax: +27 12 427 8016

Website: www.dtps.gov.za

SOUTH AFRICAN BUSINESS 2018

136


LISTING

Mahikeng

Mbombela

eMalahleni

137 SOUTH AFRICAN BUSINESS 2018


LISTING

Department of Water and Sanitation

Address: Sedibang Building, 185 Frances Baard Street,

Pretoria 0001

Postal address: Private Bag X313, Pretoria 0001

Tel: +27 12 336 8733

Fax: +27 12 336 8850

Website: www.dwa.gov.za

Department of Women

Address: 36 Hamilton Street, Arcadia Pretoria 0001

Postal address: Private Bag X931, Pretoria 0001

Tel: +27 12 359 0000

Fax: 086 765 3365

Website: www.women.gov.za

National coat of arms

The national coat of arms was adopted on 27 April 2000. It is constructed in two circles, which

are described as the circle of foundation and the circle of ascendance.

Circle of foundation

Shield – The two Khoisan figures on the shield are taken from a Bushman rock

painting known as the Linton stone, and represent the common humanity and

heritage of South Africans. Depicted in an attitude of greeting, the figures

symbolise unity. Spear and knobkierie – Together, these objects symbolise

defence and authority, but the flat angle at which they lie symbolises peace.

Wheat – The ears of wheat, as emblems of fertility, represent germination,

growth and the development of potential, as well as nourishment

and agriculture. Elephant tusks – Elephants symbolise wisdom, strength,

power, authority, moderation and eternity, and the use of tusks is a tribute

to the world’s largest land mammal, Loxodonta Africana, which is found in

South Africa. Motto – Taken from the language of the now extinct /Xam

Bushmen, the motto translated means ‘people who are different come

together’ or ‘diverse people unite’.

Circle of ascendance

Protea – Protea cynaroides is the national flower of South Africa and is symbolic of the beauty of

the country and flowering of the nation’s potential. Secretary bird – Characterised in flight, the

secretary bird represents growth and speed, and is a symbol of divine majesty and protection.

Rising sun – The sun is an emblem of energy and rebirth, a source of light and life appropriate for

a country characterised by sunshine and warmth.

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A REGIONAL OVERVIEW OF THE

EASTERN CAPE

The Eastern Cape extends over 169 580 square

kilometres, representing 13.9% of South Africa’s

land mass. The dry western interior is one of the

country’s premier sheep-rearing and mohairproducing

areas.

The mountainous regions of the north and east

of the province support timber plantations while the

coastal belt in the south-west is good for dairy farming.

The province has spectacular beaches stretching

from the surfer’s paradise at Jeffrey’s Bay all the way

to the famed Wild Coast.

The province has a strong agricultural base.

Aside from being one of the world’s major sources

of mohair, the province offers perfect farming

conditions for a wide range of produce. The fertile

Langkloof Valley in the south-west has enormous

deciduous fruit orchards, while the Alexandria and

Grahamstown area produces pineapples, chicory and

dairy products. It is the leading livestock province in

terms of numbers and supplies a quarter of South

Africa’s milk.

Logistically, the Eastern Cape is well served, with

two major airports in Port Elizabeth and East London,

and several facilities serving smaller towns such as

Mthatha and Bhisho. Many farms and private game

reserves also have airstrips. Another key logistics

factor is the large port at Ngqura, within the Coega

Industrial Development Zone (IDZ). The ports of Port

Elizabeth and East London are well-established, with

the latter breaking a record in April 2016 by handling

10 000 Mercedes-Benz vehicles for export in

the month.

Key sectors

The Eastern Cape is best known for its automotive

industry and its strong and varied agricultural sector.

The established companies in the automotive

industry (such as Volkswagen SA and Mercedes-Benz

SA) have been making major investments in the

automotive sector and they have been joined by

two large Chinese concerns. The agri-processing

sector continues to attract new investments, such

as Famous Brands’ new tomato paste factory at the

Coega Industrial Development Zone. Coega Dairy

is one of the biggest of its kind in South Africa and

manages the Famous Brands Cheese Company.

Financial services, real estate and banking are

large contributors to the province’s GDP. Absa,

SOUTH AFRICAN BUSINESS 2018

140


Nedbank, Standard Bank and Capitec Bank are among

several big finance groups which have a strong presence

in the Eastern Cape.

The automotive industry provides 30% of the

jobs in the province’s manufacturing sector and accounts

for 32% of gross added value. Half of South

Africa’s passenger vehicles are made in the Eastern

Cape and 51% of the country’s motor exports

originate here.

Ford makes engines in Port Elizabeth. General

Motors South Africa (GMSA) manufactures and assembles

vehicles and is a leader in producing catalytic

converters. The Eastern Cape supplies 14% of the world

market in catalytic converters. Among the other products

exported by GMSA to Mexico, the US, Europe and

Australia are seat belts and aluminium heat shields. The

Industrial Development Corporation (IDC) has identified

the automotive-parts sector as a target sector to

grow exports.

The largest mall to be constructed in South

Africa since 2004 has opened in Port Elizabeth. The

Bay West Mall is a sign of confidence in the Eastern

Cape economy.

Tourism

The Eastern Cape has some unique natural advantages

as a tourist destination. For example, the province covers

seven different biomes (communities of plants and

animals coexisting in a particular place), of which the

grassland, Nama Karoo, thicket and savanna biomes are

the most extensive. The Eastern Cape has three areas of

endemism: Albany, the Drakensberg and Pondoland.

The National Arts Festival in Grahamstown is a key

national festival.

The Addo Elephant National Park is a 164 000ha

facility that attracts more visitors than East Africa’s

Serengeti National Park. Other national parks in the

province are the Camdeboo National Park (around

Graaff-Reinet and now home to some lions), the

Mountain Zebra Park (near Cradock) and the Garden

Route Park, a marine reserve.

The Eastern Cape Provincial Government is responsible

for 21 nature reserves and is planning

to commercialise the administration of many of

these facilities.

Economic future

REGION

More than 6 000 international athletes will line up on

a beach in Port Elizabeth in September 2018 for the

first African staging of the 2018 IRONMAN 70.3 World

Championship. This event illustrates the Eastern

Cape’s striving to be a world-class events destination.

International conferences on the Oceans Economy

have also been held in recent months, indicative of

this coastal province’s determination to make the

most of its 800km coastline, with three ports and two

associated industrial development zones geared to

attracting investments in new sectors. Programmes

are in place to promote ship-building and repair,

aquaculture, offshore oil and gas, marine protection

and governance, and marine transport and

manufacturing. The Nelson Mandela University

(NMU) launched an Oceans Campus in 2017 and

already has several research chairs studying this

potentially very lucrative field.

The Eastern Cape’s long coastline is an asset in the

national Oceans Economy strategy. With three major

ports, two of which house industrial development

zones (IDZs), the province is well placed to leverage

the advantages that will come with the promotion

of maritime sectors.

National government aims for the Oceans

Economy to contribute R29-billion to the national

gross domestic product (GDP) by 2019 and a possible

R177-billion by 2033. This is part of the broader

National Development Plan (NDP).

Another new area of interest is renewable energy.

The Eastern Cape is a favourite destination for

wind power investors. Of the 17 projects approved

in the province in terms of the national independent

producers’ programme, fully 16 are on-shore wind

projects. More than 1 500MW has so far been procured

within the borders of the province, and there

is potential for much more.

Capital Bhisho

Population 6 916 200

Area 168 966km 2

Premier Phumulo Masualle (ANC)

Languages Afrikaans, English, Xhosa

141 SOUTH AFRICAN BUSINESS 2018


A REGIONAL OVERVIEW OF THE

FREE STATE

The Free State shares borders with six other provinces

and the Mountain Kingdom of Lesotho.

A summer-rainfall region with a mean annual

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

soil types and topography vary greatly within the

province, with plains in the west and mountains in

the east. The western and southern areas are semidesert,

with some Karoo vegetation occurring in the

south. The Orange and Vaal rivers define the southern,

western and northern borders of the Free State.

The Free State produces significant proportions

of South Africa’s wheat (30%), sunflowers (45%) and

maize (45%).

Five major national highways intersect the centrally

located province which is also well served by

rail and air links. The N8 highway extends westwards

to the Northern Cape capital of Kimberley, and several

projects are planned to leverage the advantages

of this busy route.

The Maluti-A-Phofung Special Economic Zone

(SEZ) takes advantage of the strategic position

Harrismith holds in the Free State’s north-eastern

corner. The N3 highway carries large volumes of

cargo between Gauteng and the ports of KwaZulu-

Natal so it is logical that the first focus of this SEZ is

logistics. Another logistics axis extends between

Harrismith and Bloemfontein for the delivery of

products by rail and road.

Special rules apply within an SEZ, including

more liberal taxation for companies that invest in

the zone (15% corporate tax applies, as opposed to

28%). Other benefits include a building allowance,

employment incentives and the fact that an SEZ is

a customs-controlled area.

The Bram Fischer International Airport in the

provincial capital city of Bloemfontein is the site of

a multi-phase industrial and commercial development.

Two leading universities (the University of Free

State and the Central University of Technology) have

several campuses across the province.

Key sectors

An important pillar of the economy of the Free State,

the chemicals and fuels hub at Sasolburg, is modernising

and expanding. International fuel, gas and

chemicals company Sasol regularly invests in new

technologies and in expanding production of its

various products.

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142


REGION

The Provincial Government of the Free State

has hosted two events targeting foreign investors,

called the Free State Global Investors Trade Bridge.

In 2016 the first Free State/Madeira Flower Festival

took place in Parys. This is a first step in creating links

to export markets in floriculture and horticulture.

Mining and agriculture were for many decades

the bedrock of the Free State economy. The northwestern

part of the province sits on top of a rich

gold-bearing reef more than 400km long, known

as the goldfields region. South Africa is the world’s

largest gold producer, and the country’s largest

gold-mining complex is Free State Consolidated

Goldfields, with an area of 330km². Gold-mining

volumes are down and some towns are having to

adjust to changed economic profiles. Diamonds are

also found in the south of the province.

Large percentages of South Africa’s agricultural

production, particularly grains, originate in the Free

State. Sorghum, sunflower, wheat, maize, potatoes

and groundnuts come from the fertile plains of the

western and northern Free State, while the valleys

of the east produce almost all of South Africa’s cherries

and asparagus. Livestock and flowers are other

important agricultural products.

Economic future

Although agriculture and mining remain the mainstays

of the provincial economy, diversification

and expansion through initiatives such as Special

Economic Zones (SEZs) are key to the future of the

centrally located province. The official launch in April

2017 of the Maluti-A-Phofung Special Economic

Zone was thus a significant event for the provincial

economy’s future shape. The 1 000ha site will have

four zones: agri-processing, light industrial, heavy

industrial and a container terminal.

The N8 Corridor concept covers Bloemfontein,

Botshabelo and Thaba Nchu and encompasses projects

such as the ICC Precinct (hotel and convention

centre in Bloemfontein), Bio-Medical Park, Airport

Node (logistics and supply chain, warehouses, residential

apartments, hospitals, schools, hotels and

new shopping malls), and tourism infrastructure for

the Naval Hill Development.

The Free State also wants to create more valueadded

goods out of raw materials. This applies to

agriculture (in which the Free State enjoys great

riches) and minerals. Five agri-parks are planned in

each of the Free State’s district municipalities which

will boost production so that more produce is available

for beneficiation. Within these parks, support

for rural smallholders will be available in terms of

equipment hire from a central source, storage facilities,

packaging of produce and getting products to

market. The use of small towns such as Cornelia,

Tweeling, Excelsior and Tweespruit as hubs under

the Comprehensive Rural Development Programme

(CRDP) will boost the rural economy and provide

opportunities for investors.

Newly discovered natural gas and helium fields

are said to have proven reserves of 25-billion-feet³

and Afrox has become the first of what may soon be

a string of investors exploiting this resource. Afrox

is a subsidiary of the Linde Group of Germany and

has signed a deal with renewable energy company

Renergen. A R200-million helium extraction plant

will be built, to be ready in 2019.

Sasolburg, an important petrochemical site in

the Free State, recently fired up a new power plant

running solely on gas. This power plant is the largest

of its kind in Africa. The plant produces 140MW

of power for the usage of Sasol’s chemical factory

adjacent to the site, and feeds into the national grid.

Eskom’s Ingula pumped storage project scheme,

bordering KwaZulu-Natal, has started delivering

power. Of the five projects that have been approved

in the Free State so far in terms of the country’s

Renewable Energy Independent Power Producers

Procurement Programme (REIPPPP), two are small

hydro projects and there are several solar projects.

Capital Bloemfontein

Population 2 817 900

Area 129 825km 2

Premier

Languages

Elias Sekgobelo "Ace" Magashule

(ANC)

Afrikaans, English, Sotho,

Tswana

143 SOUTH AFRICAN BUSINESS 2018


A REGIONAL OVERVIEW OF

GAUTENG

A

World Bank report has shown that a 10%

increase in infrastructure spending results

in a 1% growth in GDP. Consequently, the

Gauteng Province is prioritising infrastructure

development.

The smallest province of South Africa in area is

also the most significant economically. About 40%

of South Africa’s manufacturing is done here, a third

of its electricity, gas and water output, 41% of the

country’s construction, 39% of its finance, real estate

and business activity and 34% of its wholesale, retail,

motor trade and accommodation.

Gauteng comprises three large metropolitan municipalities

in Tshwane (the administrative capital of

South Africa and home to the diplomatic corps and

many institutions of higher learning and research);

Johannesburg (the capital of Gauteng Province,

headquarters to many companies in a wide range of

sectors, including the financial sector symbolised by

the location of the JSE); Ekurhuleni (the manufacturing

hub of South Africa and host of the country’s

biggest airport, O.R. Tambo International). The City

of Ekurhuleni is creating an “aerotropolis” around the

huge transport hub.

The province has several outstanding universities,

and the majority of South Africa’s research

takes place at well-regarded institutions such as

the Council for Scientific and Industrial Research

(CSIR), the South African Bureau of Standards

(SABS), Mintek, the South African Nuclear Energy

Corporation (NECSA), the Human Sciences

Research Council (HSRC) and a number of sites

where the work of the Agricultural Research

Council (ARC) is done.

The Gauteng Division of the High Court of

South Africa (which has seats in Pretoria and

Johannesburg) is a superior court with general

jurisdiction over the province. Johannesburg is also

home to the Constitutional Court, South Africa’s

highest court, and to a branch of the Labour Court

and the Labour Appeal Court.

In 2016 there were interesting developments

in the political field in that two of the province’s

three metropoles (Tshwane and Johannesburg)

came under the control of a coalition of political

parties opposed to the ANC, the party that has

formed the national government ever since 1994

(the first democratic election) and had control

of most provinces and cities across the country.

The province’s gross domestic product (GDP) is

R811-billion, which is nearly 34% of South Africa’s

and about 10% of the GDP of Africa.

SOUTH AFRICAN BUSINESS 2018

144


Key sectors

The leading economic sectors, as defined by

the Gauteng Growth and Development Agency

(GGDA), are finance (21% of provincial GDP), manufacturing

(19.7%), government services (15.7%) and

trade (12.8%).

Most of the major banks are positioned around

Johannesburg (which is home to Africa’s largest stock

exchange, the JSE), and the finance and business

services sector is a key focus in the provincial economy.

Many international corporates such as Citibank,

Microsoft and McDonald’s are headquartered in the

province, as it is seen as the commerce capital and

the gateway to Africa.

Gauteng has a varied manufacturing sector, from

heavy-steel, automotive assembly to the food and

beverages industry as well as light commercial and

industrial activity. Key food and beverage brands have

manufacturing plants in Gauteng. Nestlé and Pioneer

Foods have spent millions on new developments

and improvements. RCL, one the country’s leaders

in poultry production, has 18 farms and two feed

mills in the province.

Companies such as Kimberly-Clark, Proctor &

Gamble, ArcelorMittal, Transnet Engineering and

Aspen all have facilities in Gauteng Province. The

manufacturing sector in Gauteng employs 600 000

people in more than 9 000 enterprises.

Gauteng’s contribution to the country’s gold and

diamond production is still significant, and the province’s

mines account for about 21% of employment

in the sector nationally. The other primary sector,

agriculture, contributes little to the provincial GDP but

there are important districts such as Delmas, Cullinan,

Krugersdorp, Bronkhorstspruit and Heidelberg where

a variety of crops are cultivated. Large maize- and

grain-farming enterprises are found in the western

and southern parts of the province. Other products

produced in large volumes are vegetables, fruit, dairy,

poultry and eggs.

Economic future

The idea of the “City Region” is increasingly driving

economic planning and investment priorities,

REGION

both public and private. Linked to this is the need to

continually invest in infrastructure.

Gauteng is a national leader in attracting foreign

direct investment (FDI). In the period 2014-16, the

province attracted R66-billion. The Gauteng Growth

and Development Agency has a specialised subsidiary,

the Gauteng Investment Centre, which acts as a

“one-stop shop” for potential investors looking for

advice and support.

In 2016, the Gauteng City Region Economic

Indaba was attended by all the mayors of the region,

the national Minister of Finance and was addressed

the South African Deputy President. Gauteng

Premier David Makhura gave notice of “how we can

unlock, jump-start and reignite a sustainable and

inclusive growth trajectory for key sectors of our

provincial economy”.

Individually, the biggest Gauteng cities contribute

to the national GDP as follows: Johannesburg (15%),

Tshwane (9%) and Ekurhuleni (7%).

At the Indaba, several development corridors

of the City Region were identified, each with its

own industries and comparative advantages. A

15-year Gauteng Infrastructure Master Plan has

been adopted

Ekurhuleni is putting considerable resources into

infrastructure improvement. With a corridor-based

masterplan, the aim is to promote industrial activity.

The Gautrain has been an enormous success:

based on the connection to O. R. International

Airport, the high-speed train also links Pretoria and

Johannesburg. User numbers have been so good

that a contract went out in 2016 to supply 48 additional

coaches for the service, which is also set to be

expanded by a further 200km. Property prices near

to Gautrain stations have shown steady increases,

and whole new property developments have been

based on proximity to the rail line.

Capital Johannesburg

Population 13 400 000

Area 18 178km 2

Premier David Makhura (ANC)

Languages

Afrikaans, English, Sesotho,

Zulu

145 SOUTH AFRICAN BUSINESS 2018


The Vision and Mission

The Tshwane Economic Development Agency

The Vision and Mission

The Tshwane Economic Development Agency SOC Ltd

(TEDA) is a municipal entity of the Tshwane Metropolitan

Municipality (CoT).

VISION

TEDA strives to be a catalyst for economic growth and

development to position the City of Tshwane as a globally

competitive capital city.

MISSION

The mission of Tshwane Economic Development Agency

is: To provide integrated and innovative economic

development solutions through investment promotion

and funding, programme management and property

management.

SERVICE OFFERINGS

• Investment promotion and aftercare

• Export development and promotion

• Project management and development facilitation

CITY OF TSHWANE – AFRICA’S LEADING

CAPITAL CITY

The City of Tshwane is a vibrant, diverse and modernising

capital city. As the administrative seat of the South African

government and the birthplace of South Africa’s democracy,

it is home to over 130 foreign embassies and missions. The

metro was established in 2000 and has a population of

3.1-million.

ECONOMIC OVERVIEW

• GVA of R245.1-billion

• Contributes 25% to the Gauteng economy

• Accounts for 9% of the South African economy

• Biggest Free WiFi rollout in Africa

• Highest economic growth among all SA metros,

averaging a growth rate of 3.9% per annum to 2015

• Third-largest Metropolitan Municipality in the world in

terms of land mass

“LEVERAGING RESEARCH AND

INNOVATION TO PROMOTE

GROWTH.”

WHY INVEST IN TSHWANE

RESEARCH AND DEVELOPMENT HUB

Tshwane has an impressive concentration of academic,

research, technology and scientific institutes. An estimated

60% of all research and development in South Africa is

conducted in Tshwane by institutions such as Armscor, the

Medical Research Council, the Council for Scientific and

Industrial Research (CSIR), the Human Sciences Research

Council and educational institutions such as the Tshwane

University of Technology, the University of South Africa and

the University of Pretoria.

CENTRAL LOCATION

Tshwane is strategically positioned in the centre of the most

prosperous part of South Africa. Located a mere 30km from

Africa`s financial hub, Sandton, and bordering three of South

Africa`s provinces that lead directly into the SADC, Tshwane

offers easy access to a growing market of over 250-million

people in the fastest-growing regional economic bloc.


OUTSTANDING INFRASTRUCTURE

Efficient supply of water, power and bulk infrastructure

coupled with favourable climatic conditions and affordable

industrial sites and office space make Tshwane very attractive

to prospective investors.

EASE OF DOING BUSINESS

Recognising the importance of efficient and cost-effective

business operations, the City of Tshwane is continuously

looking at improving its business and investment climate.

COMPETITIVE INDUSTRIES

Tshwane’s reputation in automotive engineering is well

established. Home to motoring giants Nissan, BMW, Ford and

Tata, Tshwane accounts for 40% of South Africa’s automotive

production. Highly regarded for its manufacturing,

technology, electronics, defence design and construction

sectors, Tshwane offers many business and investment

opportunities in one of the city`s 16 mixed manufacturing

industrial estates.

Focus investment sectors

Aerospace & Defence Technologies

Tshwane is the key node in aerospace and defence

technology development in South Africa. The foundation of

the aerospace cluster is the Department of Defence and Air

Force headquarters. Industry leaders such as Armscor, the

CSIR, Denel Dynamics, Aerosud and Centurion Aerospace

Village are key role-players in the cluster.

access to transport infrastructure. The Automotive Industry

Development Centre contains a conference centre and a

retail centre. With a turnover of about R30bn in 2012 and

contributes 3.3% to the City’s economy, the automotive and

components industry constitutes about 25% of Tshwane’s

manufacturing output.

The Vision and Mission

Agriculture & Agro-processing

Although agriculture makes up an insignificant contribution

to Tshwane’s GDP, Region 7 has some of the best farming land

in Gauteng. TEDA has packaged investment opportunities

including an envisaged cotton cluster and Agro-Processing

Hub. The sector is strengthened by educational and research

facilities such as Onderstepoort Veterinary Institute (VRI) and

the Agricultural Research Council (ARC).

The Vision and Mission

Automotive & Components

The automotive and components industry in South Africa is a

major contributor to economic activity and export earnings,

with the heart of the industry located in the City of Tshwane.

This includes the Automotive Supplier Park (ASP) in Rosslyn

(130ha) which is located close to key vehicle manufacturers

including BMW, Ford, Nissan, Volvo and Tata, with excellent

Business Process Outsourcing & Offshoring

As the administrative as well an academic centre, the city’s

knowledge and information industry is well-developed,

which makes Tshwane an ideal location for BPO investments.

An established BPO sector includes one of the largest shared

services centre for the Barclays Africa operation The Gauteng

Growth and Development Agency is developing a BPO&O

Park at Hammanskraal.

Tourism

The City of Tshwane attracts business, leisure as well as

shopping, medical and sports tourism. The city also has and

is further developing a range of major conference facilities

and hotels. Cultural and heritage sites together with facilities

such as nature reserves and parks add further variety. Two

key project intended to further develop the sector are

the Mandela Statue and a plan to build a theme park and

waterfront at Cullinan/Bronkhorstspruit.

Green Economy

Tshwane aims to become a resilient, resource-efficient

and leading low-carbon economy by 2030. This translates

into opportunities, particularly in power and electricity

generation, renewables (including solar and wind

technologies), green component manufacturing, related

downstream services and general greener production

and transport practises, green agriculture and waste

management opportunities, and ecotourism.

Contact Details:

5th Floor, Anker Building, 1279 Mike Crawford Road, Centurion CBD

Tel: + 27 12 358 6552 | Email: pasekar@tshwane.gov.za | Website: www.teda.org.za

www.teda.org.za


A REGIONAL OVERVIEW OF

KWAZULU-NATAL

Two new economic trends will benefit the economy

of KwaZulu-Natal and attract investors to

South Africa’s east coast: the Oceans Economy

and the move to gas.

KwaZulu-Natal is famous for its tourism offering

that ranges from the majestic Drakensberg mountains

to the beautiful beaches along the Indian

Ocean, but the province is also home to thousands

of manufacturing concerns that play a major role in

South Africa’s economy.

With two of the country’s busiest ports, Richards

Bay and Durban, the province plays a vital role in

national logistics and international trade.

The Port of Durban’s annual throughput of containers

is about one-million, more than 60% of the

country’s total. A priority is to improve loading and

unloading times. The Port of Richards Bay is the main

coal export harbour and has added a new berth on

average every second year. Six cargo handling terminals

handle 60% of South Africa’s seaborne cargo.

The Dube TradePort (DTP) helps to drive economic

growth. It is home to the King Shaka International

Airport, an agricultural greenhouse, a cargo terminal

and various other sections relating to trade, business

and transport, all on 3 000ha of land north of

Durban. DTP has attracted a R2-billion foreign direct

investment through Indian business conglomerate

Action Group and is making a solid contribution to

KwaZulu-Natal’s economy.

The province has shown considerable growth in

the business services, transport and retail sectors.

Manufacturing in KwaZulu-Natal makes up almost

a third of South Africa’s capacity.

Key sectors

Manufacturers such as Unilever, RCL and Clover have

a big presence in KwaZulu-Natal. Illovo Sugar and the

Tongaat-Hulett Group are international companies

with substantial sugar-cane holdings, manufacturing

plants and downstream beneficiation. Tongaat is

also a significant property developer in the province

and is active in several large projects.

KwaZulu-Natal industries are major exporters.

Steel, iron and aluminium account for nearly a third

of exports followed by metal products and automotive

and automotive components. Chemicals is the

other major export-driver.

In the base-metals and metal-products sectors,

companies such as Hulamin, ArcelorMittal and

Assmang have a big presence in the province. Toyota

SOUTH AFRICAN BUSINESS 2018

148


REGION

and Bell Equipment are important companies in

the automotive sector while the Engen Oil Refinery

and dissolving pulp manufacturer Sappi are among

other strategically important plants.

Manufacturing contributes 21.5% of the gross regional

product (GRP). Samsung Electrics has chosen

the province as the site of a $20-million television

factory, a Chinese company intends establishing a

multi-billion-rand steel plant at Richards Bay and a

pipe-manufacturing concern has put R300-million

into a new plant.

KwaZulu-Natal is a national leader in the forestry

and paper sector. The forest-product export sector

in South Africa is made up of paper (45.2%), solid

wood (23.3%) and pulp (28.9%). Mondi and Sappi

are both large international companies and the pulp

and paper sector makes a direct contribution to

South Africa’s balance of payments of R4.5-billion.

Mpact, the paper manufacturing and plastics

packager that was spun out of Mondi, invested a

further R200-million in its waste paper and recycling

operation at Empangeni. The company collects

more than 450 000 tons every year.

Tourism plays a vital role in the economy of

the region, with the conference and events sector

supported by excellent facilities. The jewel in

the crown is the huge Albert Luthuli International

Convention Centre Complex which hosts the annual

Tourism Indaba.

The province’s excellent climate lends itself to

every kind of outdoor pursuit and its excellent

beaches are always popular. Big sports events are

regularly hosted in KwaZulu-Natal which has become

something of a home to mass participation

events such as the Comrades Marathon and Dusi

Canoe race. The province has excellent game and

nature reserves.

Isimangaliso Wetland Park is a World Heritage

Site and helps to fund 80 small businesses associated

with its business as a tourist site.

Economic future

The Oceans Economy and a national policy shift

towards the use of gas are both developments that

will boost the regional economy.

The province’s two large ports are natural sites

for the increase in Oceans Economy-related sectors

such as ship-building and repair, and oil and

gas support (rig repair). The creation of a marine

manufacturing and repair cluster at Richards Bay

is being considered. Ship-building and ship repairs

is an existing industry but it is currently not

very big. If oil rigs were to start visiting the KZN

coastline on a regular basis, this industry would

grow exponentially.

Richards Bay, apart from being the country’s

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

Industrial Development Zone (IDZ) and consequently

attracts a diverse range of investors.

The decision to build a cruise-ship terminal at

the Port of Durban is a good example of the kind

of decision that is nicely in line with an Oceans

Economy approach. Several fish-farming projects

are planned for KwaZulu-Natal (mostly with kob)

and a catfish feasibility study is under way.

The Provincial Government of KwaZulu-Natal

has created the KwaZulu-Natal Maritime Institute.

This is administered by the restructured Sharks

Board and training programmes are coordinated

with Transnet to make sure that relevant courses

are offered. Since 2012, 800 students have been

studying maritime-related courses.

The Richards Bay Industrial Development

Zone (RBIDZ) has welcomed SPS Manufacturing

(Pty) Ltd, a pipe manufacturer which will invest

R300-million in uMhlathuze, creating

87 permanent jobs.

With the announcement by national government

of its support for major gas-to-power projects,

the Richards Bay Industrial Development

Zone is in line to host a large facility. The proximity

of the RBIDZ to the gas fields of Mozambique

makes this a potentially giant project.

Capital Pietermaritzburg

Population 11 919 100

Area 94 361km 2

Premier Willies Mchunu (ANC)

Languages English, Zulu

149 SOUTH AFRICAN BUSINESS 2018


A REGIONAL OVERVIEW OF

LIMPOPO

The proclamation of a Special Economic Zone

in the far north of South Africa’s northernmost

province could have major economic consequences

for Limpopo Province.

A large investment by diamond miners De

Beers at its Venetia Mine in the same district also

promises significant spinoffs for local communities

and businesses.

Limpopo is a huge province that ranges across

the north of South Africa and shares borders with

Mozambique, Botswana and Zimbabwe. The Great

North Road passes through the middle of the province,

so places like Polokwane (the provincial capital)

and Musina (on the northern border) are natural

bases for logistics companies.

The province has superb natural resources, from

coal, platinum and chrome to avocadoes, tomatoes

and macadamia nuts. Wonderful vistas in very varied

landscapes, golf estates and adventure tourism

underpin the tourism industry.

Key sectors

Subtropical fruit like mangoes, paw-paws, litchis,

bananas and pineapples are in abundance in the

province and make up the bulk of export income.

Cattle, sunflowers, cotton, maize, peanuts, avocados,

tea, tomatoes, citrus and macadamias are

among Limpopo’s key agricultural resources.

Mining is a key sector of the provincial economy

and routinely accounts for between 25-30%

of provincial GDP. Limpopo has a very rich and

varied mineral asset base. Platinum occurs on

both limbs of the Bushveld Igneous Complex

(BIC), and the Waterberg district is seen as the

answer to South Africa’s coal needs for the next

several decades.

Major investments in Limpopo include an ongoing

project by De Beers in Musina to convert its

Musina mine from an open-pit mine to a vertical

shaft mine and a multi-billion-rand new platinum

mine project led by Ivanplats. A key focus area

is to try to ensure that 20% of procurement in

the mining sector goes to small businesses and

co-operatives.

In August 2016 Unit 6 of the Medupi power station

came on stream. The Medupi power station

project is one of the biggest engineering projects

undertaken in South Africa. Medupi is located in

Lephalale in the far west of Limpopo, and next to

an existing power station where coal is abundant.

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The De Hoop Dam across the Steelpoort River

in the east of Limpopo has started supplying

water to rural communities who previously had

to walk to rivers to fetch water. These communities

in the Waterberg, Capricorn and Sekhukhune

districts are beneficiaries of a vast project that will

also deliver water to towns and mining operations

in the area. More than a million people will get

water from the dam.

Limpopo has two transfrontier conservation

parks, two World Heritage Sites, three biospheres,

three national parks, 53 provincial nature reserves

and more than 6 000 privately owned game farms.

The 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.

The growth of the Marula Festival, held annually

in February in Phalaborwa, caters mainly to

the local market. About 13 000 litres of marula

beer are regularly brewed by the 13 co-operatives

on duty, and large crowds attend for the outdoor

music concerts that are a feature of the festivities.

Limpopo Province has very varied tourism

assets that include the bare bushveld of the northern

regions, the misty mountains of the central

highlands, hot springs, a unique cycad forest,

great golf courses and the northern part of the

Kruger National Park.

The provincial government is committed to

enhancing the value of Limpopo’s two World

Heritage Sites, Mapungubwe Heritage Site and

Makapans Valley.

Adventurous visitors can choose from off-road

biking, hunting, elephant rides and tough 4x4

trails. A vast array of different cultures extends

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.

Economic future

REGION

The strategic value of Limpopo’s position as a link

to the SADC region is being exploited through the

creation of Special Economic Zones (SEZs). The first

one has been promulgated at Musina-Makhado

where the focus is on logistics operations, agri-processing,

energy and mineral beneficiation. Exxaro

and De Beers have large mining operations nearby.

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.

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 (PGM) and miningrelated

manufacturing.

The following areas have been identified as

priority zones for the province’s industrialisation

strategy: Polokwane, Lephalale, Tubatse, Tzaneen

and the Musina-Makhado corridor.

The National Department of Trade and Industry

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

feeds into the national Industrial Policy Action

Plan (IPAP). SEZs are designed to attract investment,

create jobs and boost exports. The dti says

that a consortium of Chinese investors, Sino, has

agreed to put R40-billion into the Musina SEZ

where they will operate the mineral beneficiation

operations.

Capital Polokwane

Population 5 800 000

Area 125 754km 2

Premier Stanley Mathabatha (ANC)

Languages Sesotho, Tshivenda, Xitsonga

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A REGIONAL OVERVIEW OF

MPUMALANGA

Mpumalanga means “the place where the

sun rises” and the province lies north

of KwaZulu-Natal and shares borders

with Swaziland and Mozambique. It

constitutes 6.5% of South Africa’s land area. In the

north it borders on Limpopo, to the west Gauteng,

to the south-west the Free State and to the south

KwaZulu-Natal. The provincial capital is Mbombela.

More than 80% of South Africa’s coal is sourced in

Mpumalanga. Other minerals found in the province

include gold, platinum group minerals, chromite,

zinc, cobalt, copper, iron and manganese.

South Africa’s major power stations, three of

which are the biggest in the southern hemisphere,

are in Mpumalanga. The building of the new Kusile

power station is one of the biggest infrastructure

projects in the country’s history.

Mpumalanga also has fertile soil that supports

diverse farming operations.

The province recently welcomed the first students

to the University of Mpumalanga. The Kruger

Mpumalanga International Airport and Hoedspruit

Airport are the province’s two main airports.

The Maputo Development Corridor is a transportation

corridor comprising road, rail, border posts,

port and terminal facilities, running from Pretoria

in Gauteng through Mpumalanga to the Port of

Maputo in Mozambique.

South Africa’s biggest tourist attraction, the

Kruger National Park, is mostly in Mpumalanga.

Several investment projects aimed at providing

infrastructure in the tourism sector have been put

forward by the Mpumalanga Economic Growth

Agency (MEGA). Heritage and Cultural Tourism are

two of the focus areas in the provincial plan because

Mpumalanga is already a leader in nature reserves

and parks.

Large investments are under way on the railways

that run to and through Mpumalanga. This

includes upgrading the commuter railway linkages

to the province from neighbouring Gauteng and

building new railway lines to transport coal through

Swaziland and on to either Richards Bay or Maputo

in Mozambique.

Key sectors

The climatic contrasts between the drier Highveld

region, with its cold winters, and the hot, humid

Lowveld allow for a variety of agricultural activities.

More than 68% of Mpumalanga is used for agriculture.

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REGION

Most of the province receives summer rainfall,

often via thunderstorms. Frost is common on the

Highveld, but is almost absent in the subtropical regions

where fruit, nuts and citrus thrive. Crops include

maize, wheat, sorghum, barley, sunflower seed, soya

beans, groundnuts, sugarcane, vegetables, coffee, tea,

cotton, tobacco, citrus, subtropical and deciduous

fruit. A large proportion of South Africa’s grain, citrus,

sugar and soft fruits come from Mpumalanga. The

province is an exporter of macadamia nuts, a sector

that is growing at a remarkably fast pace.

The province’s rich agricultural produce is used

by companies such as McCain, Nestlé and PepsiCo

and there are also pulp and paper plants (Sappi and

Mondi), fertiliser facilities and textile manufacturing

concerns. The decision by Sappi to start producing

dissolving wood pulp at its Ngodwana Mill has significantly

increased the manufacturing capacity of the

province. York Timbers is a leading forestry company

and the sugar mills and refinery of RCL Foods are large

contributors to the provincial economy. Forestry is

extensive around Sabie.

The province lies at the southern end of the eastern

limb of the Bushveld Igneous Complex. Chromite,

magnetite and vanadium are found in significant

quantities in the province. The ferro-alloy industry is

centred on the town of Middelburg. Deposits of chromite,

magnetite and vanadium in this area are the basis

of the ferro-alloy complex in Witbank-Middelburg and

Lydenburg. Nkomati Mine is South Africa’s only purenickel

operation. The province’s coalfields are in the

south and west of the province.

The restarting of the Evraz Highveld steel mill

in 2017 was good news for the regional economy,

after the company went into business rescue two

years before.

The province also hosts large companies in the

manufacturing sector, with internationally renowned

firms such as Sasol (synthetic fuels and chemicals)

and Xstrata (ferrochrome) having large operations

in the province.

Sasol, the integrated oil, gas and chemicals

company, runs several plants at Secunda. Products

manufactured at the complex include synthetic fuel,

petroleum, paraffin, jet fuel, creosote, bitumen, diesel

and lubricants. Sasol’s coal liquefaction plant is also

located in the town of Secunda. The primary feedstock

for synthetic-fuel production is coal, and the plant is

located in the heart of Mpumalanga’s coalfields.

Economic future

A major goal of the provincial government’s

Mpumalanga Economic Growth and Development

Path (MEGDP) is to expand the industrial base of the

provincial economy. The focus is on beneficiation,

agri-processing and value chain development.

The Provincial Government of Mpumalanga has

been talking to several foreign countries about investments

in the province. An assembly plant for Minsk

Tractor Works is one of the outcomes of this activity,

and several agreements relating to training and trading

have been signed. Russia, Belarus, China and Oman

are some of the countries with which Mpumalanga

is engaged. The Mpumalanga Economic Growth

Agency hosted a People’s Republic of China Business

Forum which was attended by 19 large Chinese

companies.

An ambitious plan to develop a Strategic Economic

Zone (SEZ) at Nkomazi is under way. The area is close

to both Mozambique and Swaziland and lies on the

Maputo Development Corridor that links the economic

powerhouse of South Africa (Gauteng) with

the ports and gas supplies of Mozambique.

There is relatively little agri-processing that takes

place in the province, with most of the products being

exported in their raw state. The Fresh Produce

Market in Mbombela is planned to accommodate

investors who want to start factories to manufacture

products such as juice, or packaging firms. Land has

been bought and registered for the required use in

Mbombela as the Mpumalanga International Fresh

Produce Market. Investors in fresh produce are invited

to be take advantage of Mpumalanga’s superior fruit,

vegetables and nuts.

Capital Mbombela

Population 4 283 900

Area 76 495km 2

Premier David Mabuza (ANC)

Languages Ndebele, Swati, Zulu

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A REGIONAL OVERVIEW OF THE

NORTHERN CAPE

The Northern Cape is rich in resources. A new zinc

mine project at Gamsberg is attracting large

amounts of foreign direct investment, as are

several solar farms. The province’s huge iron ore

mines remain profitable. The prospect of a Special

Economic Zone at Upington could boost the manufacturing

sector, especially with regard to renewable

energy components.

The Northern Cape is the largest of South Africa’s

provinces but has the smallest population. The

Orange River is a green lung that runs through the

province, providing water for grape-growers and

other irrigation projects, power through hydropower

and great opportunities for tourism activities

like river rafting. Despite the vast distances, the

province enjoys good infrastructure and the ironore

export rail line that runs from Sishen to the coast is

a technical marvel.

The Northern Cape Province is connected to

Namibia via the Kalahari and the Orange River Basin

Corridors, strengthening trade and transport linkages

between the two countries.

The province has many tourist attractions, including

its 4X4 trails, unique vegetation and the Kgalagadi

Transfrontier Park, which is famous for its lions. The

Augrabies Falls and the Orange River are very popular.

The vast open spaces of the Karoo have attracted

one of the great scientific projects of the age, the

Square Kilometre Array radio telescope. An international

collaboration, the SKA is sponsoring mathematics

and science teachers in the Northern Cape

and creating great excitement for science.

The small eastern portion of the Northern Cape

Province bordering the Free State is known as

the Diamond Fields. Kimberley, which is also the

capital of the Northern Cape and the location of the

Kimberley Big Hole, is at the heart of the province’s

diamond fields.

The province’s first university, Sol Plaatje, has

been launched. The university is merging technikon

courses with traditional university degrees in one

department.

Key sectors

Wool, mohair, karakul, Karoo lamb, venison, ostrich

meat and leather are produced throughout the province.

The province is second only to the Eastern Cape

in terms of the number of sheep farmed and it is the

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REGION

fourth-largest wool-producing province based on

annual sale of producer lots.

The karakul-pelt industry is one of the most

important in the Gordonia district of Upington.

Agri-company KLK is the only organisation that

handles these pelts in South Africa, which are sorted

in Windhoek before being sent to Europe for

auction. Conditions around Colesberg are ideal for

horse breeding.

Major exports include fruit, especially table grapes

and meat. The Vaalharts Irrigation Scheme has supported

farming for decades. The newer Namakwa

irrigation scheme will link with the agri-parks being

established across the province. The plan is to increase

production of agricultural products, including

grapes and fish from aquaculture schemes and then

create new agri-processing plants.

Mining contributes 23.4% to the Northern Cape

economy and makes up nearly 7% of South Africa’s

total mining value. The mineral resource of the province

is wide-ranging and impressive with significant

deposits of iron ore, manganese, zinc, copper, lead,

titanium, pig iron, zircon and gypsum.

The majority of the world’s manganese comes

from the Postmasburg and Kalahari regions of the

Northern Cape. The province is responsible for 25%

of the world’s exports of the mineral.

The Northern Cape produces more than 84% of

South Africa’s iron ore. The province has two major

iron belts, from Postmasburg to Hotazel, and running

through Sishen and Kathu. Kumba Iron Ore has the

huge Sishen facility at Kathu and Kolomela.

Petra Diamonds continues to expand production

at Finsch mine. Indian giant Vedanta is putting R9.4-

billion into the Gamsberg Zinc project near Aggenys.

Economic future

Port Nolloth itself is today a small fishing harbour

and studies have shown that better potential exists

at nearby Boegoe Baai to develop deep-sea facilities.

There would be possibilities for linking the port to

the gas fields and developing ship-repair facilities.

A unit within the National Department of Public

Works, Small Harbours and Coastal Property

Development, is working with district and local

municipalities to create new economic opportunities.

Port Nolloth is earmarked as a “new harbour”

with other onshore developments such as aquaculture

to take place at Hondeklip Bay and Kleinzee.

Within the first four bidding periods of the national

Renewable Energy Independent Power Producer

Procurement Programme (REIPPPP), 92 projects were

approved – and 48 of these projects were in the

Northern Cape. Most of these were solar photovoltaic

projects, with seven employing the concentrated

solar power (CSP) technology.

The Northern Cape is also home to 12 approved

wind farms and one small (10MW) hydro-electric

project on the Orange River.

The Northern Cape has been earmarked as a

manufacturing zone for solar components. A good

opportunity exists to increase local content and the

creation of a Northern Cape Special Economic Zone

(at Upington) will promote this goal.

The 400ha site of the Upington SEZ in the

Northern Cape Province is close to the Upington

International Airport and is well served by access

roads. Khara Hais Municipality has agreed to transfer

the necessary land to the SEZ, and has approved

the infrastructure plan that has been put forward.

Airports Company South Africa (ACSA) is a partner

in the project.

Upington International Airport’s 4.9km runway

allows it to land the largest aircraft. Airports Company

South Africa has allocated 55ha for the creation of

an aviation park to store and maintain aircraft, and a

further 30ha for commercial development.

ACSA’s research suggests that over the next

decade there will be a big demand for aircraft storage

and dismantling (a subsector of the broader

Maintenance, Repair and Overhaul market).

Capital Kimberley

Population 1 185 600

Area 372 889km 2

Premier Sylvia Lucas (ANC)

Languages Afrikaans, Setswana, Xhosa

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A REGIONAL OVERVIEW OF

NORTH WEST

The North West Province is also known as the

“Platinum Province” and the “Texas of South

Africa”. Platinum mines, cattle ranches, game

reserves and the entertainment complex at

Sun City are the province’s best-known features.

North West shares a border with the Republic of

Botswana (and the Kalahari desert), Gauteng and

the Free State.

South Africa’s nuclear-research centre is located

at Pelindaba near Hartbeespoort Dam, and is run

by the South African Nuclear Energy Corporation.

A provincial priority is to improve the link between

rural and urban economies, something which

a strong focus on agri-processing could achieve. As

one of the country’s biggest producers of livestock,

North West’s automotive industry could profitably

source hides for car seats locally. The Industrial

Development Corporation (IDC) is one of the bodies

that is helping the province to expand (and maintain)

the diversity of its manufacturing sector.

Key sectors

The North West Province is aligned with the Western

Limb of the Bushveld Igneous Complex, a remarkably

rich minerals formation. Mines in the province

produce 50% of the platinum produced in the world,

and 65% of South Africa’s platinum group metals.

Chromite is the other major mineral mined

throughout the province, and there are several ferrochrome

smelters and other processing plants.

Gold and uranium is found along the border

of the province with Gauteng and the Free State

(Klerksdorp and Orkney). Diamonds are mined at

Christiana, Bloemhof and Lichtenburg. Lichtenburg

is also the centre of the cement industry. Chromite

is the other major mineral mined throughout the

province, and there are several ferrochrome smelters

and other processing plants.

Other minerals found in the North West include

fluorspar, vanadium, rhodium, uranium, copper, limestone,

slate, phosphate, manganese, coal and nickel.

Platinum is found in the Rustenburg and Brits

regions. Employment along the Platinum Corridor,

from Pretoria to eastern Botswana, accounts for over

a third of total employment in North West, but the

depressed platinum price in global markets has led

to a reduction in production volumes, and many

workers being laid off.

The North West Province has a strong agricultural

sector with several very large companies

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REGION

involved in grain. Cattle and crops such as sunflower

seeds are among the other sectors that generate

significant income and feed large numbers of South

Africans. North West produces about one third of the

country’s maize.

North West has approximately 1.7-million beef

cattle, representing 13% of South Africa’s herd. Major

breeds include Simmentaller, Brahman, Bonsmara

and Simbra, a cross between the Brahman and

Simmentaller breeds. The Marico region is also cattle

country, while the areas around Rustenburg and

Brits are fertile, mixed-crop farming land.

Brits, Rustenburg, Tlokwe (Potchefstroom),

Matlosana (Klerksdorp) and Mahikeng account for

more than half of the total manufacturing capacity

in North West Province. Mining beneficiation,

automotive components and food and beverage

play important roles in the sector.

Food and beverages is the biggest subsector

contributing to the manufacturing industry. The

town of Brits has several companies in the automotive

components sector.

Major companies with manufacturing capacity

in the North West like Nestlé, RCL, Tydstroom and

Clover have all taken advantage of the province’s

strategic location adjacent to the business hub

of Gauteng. There are several milling operations

in North West Province. Masilo Mills is located in

Hanneman (where Papa Super Maize is ground) and

Tau Roller Mills is in Wolmeranstad.

Economic future

The provincial government has pointed out that

the share of manufacturing to the Growth Value

Add (GVA) of the province is only 5% – a figure that

must grow if employment is to grow along with the

expanding economy.

A provincial Integrated Manufacturing Strategy has

been compiled. One of the report’s findings was that

because North West is strategically located near to

the industrial hub of Gauteng, has low input costs, lies

on established trade routes and has easy access to

natural resources, it should make the development of

the chemical processing sector a good bet. This is especially

true for phosphate and nitrogen-based fertilisers.

The Platinum Valley Special Economic Zone (SEZ)

is to be established at Mogwase in the Bojanala

District, north of Rustenburg and east of Sun

City. When fully developed, 200ha of land will be

given over to three infrastructure facilities comprising

Logistics, Light Manufacturing and Heavy

Manufacturing. Areas of investment that are expected

to grow fastest include fuel cell technology (in

which platinum is a vital component), machinery for

mining, energy generation and renewable energy

component manufacturing.

The Seda Platinum Incubator (SPI) is an initiative

of the Platinum Trust of South Africa and is funded

by the Small Enterprise Development Agency

(Seda) through its Seda Technology Programme

(Stp) with the support of the North West Provincial

Government and private companies.

The sun shines in the North West, on average,

300 days of the year. In addition, the province mines

more platinum than any other place on earth. These

two facts combine to present a suite of opportunities

for energy generation and for the manufacture

of equipment for the energy sector.

The Department of Trade and Industry (dti) says

there is potential in the automotive sector which

can be applied to the manufacturing sector for

renewable energy.

An opportunity for solar panel market manufacturers

is being promoted by the North West Development

Corporation at Mahikeng. Investors are sought to manufacture

and supply panels to farms, housing schemes,

the mining industry and government.

The Potchefstroom campus of the North West

University is home to HySA Infrastructure Centre for

hydrogen production, storage and delivery. HySA

is part of a national strategy designed to make use

of hydrogen and fuel cell technology, particularly

arising from platinum group metals (PGM).

Capital Mahikeng

Population 3 707 000

Area 104 882km 2

Premier Supra Mahumapelo (ANC)

Languages

Afrikaans, Sotho, Tsonga,

Tswana, Xhosa

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A REGIONAL OVERVIEW OF THE

WESTERN CAPE

The Western Cape straddles the west and southeastern

coastlines of South Africa. The province’s

southernmost point is Aghulus, which is also the

southern tip of Africa where the Atlantic and

Indian oceans meet.

The terrain and climate is varied, from the dry

north-western coast to the heavily forested Garden

Route regions of the southern Cape via the rugged

mountains of the Cedarberg, the rolling winelands of

the Boland and the Overberg, the fertile valleys of the

Klein Karoo and the wide plains of the Great Karoo.

The Western Cape is well served with infrastructure.

Three ports at Saldanha, Cape Town and

Mossel Bay serve different markets and Cape Town

International Airport and George Airport see to air -

travel needs. In 2016, CTIA welcomed 10-million visitors,

a new landmark. The Port of Cape Town recently

opened a Cruise Terminal and a large new fuel storage

terminal is being constructed in the port. Cape

Town also hosts an oil refinery (Chevref) and there

is a gas-to-liquids refinery at Mossel Bay run by the

national oil company, PetroSA.

The Cape Town International Convention Centre

is the province’s leading facility in the events and

conference field, which is an area of growth for

the province.

The national parliament is in Cape Town and there

is a separate provincial legislature. The Western Cape

is unique among South Africa’s nine provinces in

that the Democratic Alliance (DA) runs the province.

The African National Congress is the majority party

in the national parliament and it controls the other

eight provinces.

The DA also governs most of the provincial municipalities

in the province, including the metropolitan

municipality of Cape Town. There are five district

municipalities which are further divided into 24 local

municipalities.

Cape Town has three universities and several

Technical and Vocational Education and Training

(TVET) colleges.

Key sectors

Tourism grew at 6.6% for the five years to 2014 and

generated jobs growth in the same period of 7.7%.

The sector employs 204 000 people in formal jobs and

is worth about R17-billion to the regional economy.

Growth is expected to continue.

The capacity of the Cape Town International

Conference Centre (CTICC) is being doubled. The

Foreshore is at the heart of a series of new developments

that are set to have a major impact on the

tourism industry.

Finance, business services and real estate combined

contribute 28% to the gross domestic product

(GDP) of the Western Cape. Asset management

and venture capital companies have been growing

strongly in recent times.

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Refined petroleum was the single biggest earner

for the Western Cape in 2015, with exports valued at

R18.2-billion (Wesgro).

The province has a diverse manufacturing sector

ranging from textiles, clothing, footwear and

furniture to coke and refined petroleum products.

Several significant foreign investments have been received

into the Western Cape in recent years: Hisense,

GlaxoSmithKline and Kimberly-Clark, among others.

Saldanha on the West Coast is one of South Africa’s

busiest ports. Apart from being home to several trawler

fleets, it is the principal iron-ore export port and is

gearing itself to service the continent’s oil and gas

industry and to be a steel manufacturing hub. Mining

is becoming an increasingly important sector, with

titanium, zirconium, phosphate and limestone being

among the most important finds.

Nearly 70% of South Africa’s wine comes from

the Cape Winelands District area (Stellenbosch, Paarl,

Robertson). A good percentage of this wine is exported

but the wine estates themselves attract tourists.

Tourism in the Winelands has matured beyond

day-trips from Cape Town to incorporate wellness

spas, adventure tourism and even game farms boasting

the Big Five.

Manufacturing is concentrated on processing

grapes and fruit into wine, juice, brandy, dried

and tinned fruit products. Dairy manufacturer

Parmalat has an award-winning cheese-making facility

in Bonnievale. Robertson is known for roses and

thoroughbred horses. Stellenbosch is home to its

eponymous university and houses the headquarters

of several large companies.

Mossel Bay is home to South Africa’s main gas processing

plant while George is a node of manufacturing,

trade and administration. Knysna and Plettenberg

Bay are favoured tourist destinations.

The Klein Karoo has its own wine route, and contains

the country’s Port Capital in Calitzdorp, which

hosts an annual festival to celebrate its main product.

Fruit, vegetables and ostriches are other main

products of the Klein Karoo.

Economic future

According to the provincial treasury, the fast-growing

sectors to 2020 will be construction, financial services

(and real estate and business services) and transport,

storage and communication. Financial services is

expected to make the biggest contribution overall.

The Provincial Government of the Western Cape

and the private sector are collaborating to support

projects that will best boost economic growth and

create jobs: it is called Project Khulisa and it is due to

run to 2019. Sector examples include:

Oil and gas

With the number of oil rigs passing around the Cape

on their way either to the rich fields on both sides of

Africa, this is a sector that can grow exponentially.

Saldanha Bay has been identified as a hub for rig repair.

Tourism

The sector already contributes R17-billion to the provincial

economy and jobs are created quite quickly

in this sector. A project to increase the number of

seats available on aeroplanes flying into Cape Town

International Airport, Cape Town Air Access, has

reaped remarkable success. Bidding for big events like

the World Rugby Sevens tournament has also paid off.

Agri-processing

By playing to the Western Cape’s strengths, which

include an excellent reputation for fruit and wine

in the international market, the province wants to

take the agri-processing sector beyond the R12-

billion that the sector already contributes to the

local economy.

Capital

Cape Town

Population 6 200 100

Area 129 462km 2

Premier

Languages

Helen Zille (DA)

Afrikaans, English, Xhosa

159 SOUTH AFRICAN BUSINESS 2018


INDEX

INDEX

African Business Travel Association (ABTA)..............................................................................................124

Air Products........................................................................................................................................................... 73

AKTV Resorts........................................................................................................................................................IBC

APE Pumps............................................................................................................................................................. 67

City of Ekurhuleni................................................................................................................................... 7, 18 - 21

College of Cape Town........................................................................................................................................ 44

DaySeven Group.....................................................................................................................................111 - 113

Eastern Cape Development Corporation (ECDC)..................................................................................139

EKS Secure Technologies................................................................................................................................108

Export Credit Insurance Corporation of South Africa (ECIC)............................................................... 26

Grundfos South Africa....................................................................................................................................... 86

Human Resource Development Council of South Africa (HRDC)...................................................... 42

Hydra Arc................................................................................................................................................................ 71

ICT Training............................................................................................................................................................ 64

Indaba Hotel, Spa & Conference Centre....................................................................................................120

Invest Durban..........................................................................................................................................................2

iX Engineers........................................................................................................................................................... 89

Lesedi Nuclear Services........................................................................................................................................9

Lesotho National Development Corporation (LNDC)............................................................................ 28

Marley Pipe Systems...................................................................................................................................97 - 99

Masisizane Fund................................................................................................................................................132

National Cleaner Production Centre of South Africa (NCPC).............................................................. 31

Pele Green Energy.......................................................................................................................................79 - 83

SBS Tanks................................................................................................................................................................ 11

Sea Harvest............................................................................................................................................................ 55

Small Harbours and State Coastal Property Development (SH&SCPD)........................................... 57

South African National Space Agency (SANSA)......................................................................................IFC

Syspro.........................................................................................................................................................105, OBC

Topps Products SA....................................................................................................................................... 33, 37

Training at Work................................................................................................................................................... 38

Transnet Pipelines............................................................................................................................................... 74

Tshwane Economic Development Agency (TEDA)................