South African Business 2018 edition

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

O&M CAPE TOWN 2382/E 

IT‘S NOT JUST THE AMAROK 

DRIVING UP A HILL. 

www.amarok.co.za 

IT’S THE ABILITY TO 

HAUL A 1-TON LOAD 

UP A 45 O INCLINE. 

On the outside, you’ll see the Amarok making tough look effortless. But what you don’t see is the 

German-engineered TDI engine that combines 132kW of power and 420Nm of torque with 

outstanding fuel efficiency. You don’t see the permanent 4MOTION® system or unique off-road 

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

payload being effortlessly hauled up a 45° slope, but you don’t see the under-the-skin technology 

that makes tough possible. 

The Amarok. Not just tough, smart. 

Commercial 

Vehicles 

Range includes: 103kW TDI Comfortline 4x2 and 4MOTION® manual; 132kW BiTDI® Highline 4x2 and 4MOTION®, manual and automatic; 132kW BiTDI® Highline Plus 4x2 and 4MOTION® 

automatic; 132kW BiTDI® Extreme 4MOTION® automatic; 165kW V6 TDI 4MOTION® automatic available in Highline, Highline Plus and Extreme.

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. 


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 


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


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


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: 


14


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. 



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. 


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. 


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. 


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. 


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 


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. 


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 


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). 


22


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. 



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 


24


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. 


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. 


26


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 


28


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. 



Management Contract 




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 


Technical Partner 


required: Equity 


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. 



Technical Partner 




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 


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 


30


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. 


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 


34


(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. 



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. 


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. 


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. 


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. 


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 


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 


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




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. 


48


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 



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 


50


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. 



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. 


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. 


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 


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. 



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. 


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. 


54


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. 


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. 


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 


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. 


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. 


62


www.vwcommercial.co.za 

It will move the earth for you. 

1,438kg at a time. 

With its impressive chassis capable of carrying a payload of up to 1,438kg 

(Single Cab) and drop-sides that make loading and offloading lighter work, the 

Transporter Single and Double Cabs have been designed with the toughest tasks 

in mind. Driving and safety features such as ESC, ASR, EDL, Traction Control and 

Automatic Post-Collision Braking mean the crew can focus on the job at hand with 

complete peace of mind. Combined with German engineering, a standard 2-year/ 

unlimited kilometre warranty and a 3-year/60 000km Genuine AutoMotion Service 

Plan, these vehicles are the best choice if you’re as serious about building your 

business as we are. 

Visit vwcommercial.co.za or your nearest Volkswagen Dealership to find out more about the 

Transporter Single and Double Cab Range. 

Commercial 

Vehicles 

Range includes: 75kW TDI 4x2 manual Single Cab; 75kW TDI 4x2 manual Double Cab, 103kW TDI 4MOTION® manual Double 

Cab and 132kW BiTDI® 4MOTION® DSG® Double Cab.

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 


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- 


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 


66

APE Pumps 

Pumps at the heart of Africa 

Mining Institutions 

Petrochemical Industries 

Manufacturers of: 

Vertical industrial turbine pumps 

Multi-stage high pressure pumps 

Split casing pumps 

End suction pumps 

Vertical sump pumps 

API 610 pumps 

Power Generation Authorities 

Water Processing Utilities 

26 Nagington Road, Wadeville 

Germiston 1400, South Africa 

Tel +27 11 824 4810 | Fax +27 11 824 2770 

PO Box 14733, Wadeville 1422, South Africa 

Email: apepumps@mweb.co.za 

Website: www.apepumps.co.za 

Leaders in pump innovation

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. 


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. 


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 


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. 


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 


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. 


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 


72

Service that 

delivers the 

Difference 

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

atmospheric gases, specialty gases, performance materials, equipment and services to the 

Southern African region. 

Air Products touches the lives of consumers in positive ways every day, and serves customers across 

a wide range of industries from food and beverage, mining and petrochemicals, primary metal and 

steel manufacturers, chemical applications, welding and cutting applications to laboratory 

applications. 

Founded in 1969, Air Products South Africa has built a reputation for its innovative culture, 

operational excellence and commitment to safety, quality and the environment. In addition the 

company aims to continue its growth and market leadership position in the Southern African 

region. 

www.airproducts.co.za

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 


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. 


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. 


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. 


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. 


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. 


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. 


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. 


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 


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. 


84

OVERVIEW 

The national Minister of Water 

and Sanitation is the shareholder, 

representing the government of 


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. 


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 


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 


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 


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 


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. 


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 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. 


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 


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 


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. 


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. 


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 


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 


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). 


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. 


OVERVIEW 

Automotive 

Multi-billion-rand investments are boosting vehicle production. 


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: 


100


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. 


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 


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. 


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

National Association of Pharmaceutical Manufacturers: 

www.napm.org.za 

Plastics SA: www.plasticsinfo.co.za 


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. 


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. 


Agricultural Research Council: www.arc.agric.za 

FoodBev SETA: www.foodbev.co.za 

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


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). 


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 


OVERVIEW 

Transport and logistics 

Investments in rail are increasing. 


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 


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. 


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 


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 


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. 


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, 


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 


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. 


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. 


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 


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 


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. 


114

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 

115 


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, 


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. 


116

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 


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 


118

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 underway. 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. 


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 


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…


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 


124

OVERVIEW 

Information and communications 

technology 

A rural network is providing free local calls. 


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 


126

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”. 


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 


OVERVIEW 

Banking and financial services 

New banks and new stock exchanges are adding to South Africans’ choices. 


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 


128

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. 


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 


OVERVIEW 

Development finance and SMME 

support 

South Africa has over two-million SMMEs. 


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 


130

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. 


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 


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 


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 


Tel: +27 12 300 5200 

Fax: +27 12 323 8246 


Minister in the Presidency 

Address: Union Buildings, Government Avenue, East Wing, 

1st Floor, Arcadia, Pretoria 0001 


Tel: +27 12 300 5200 

Fax: +27 12 300 5795 


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 


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 


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 


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 


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 


Tel: +27 12 394 1006 

Fax: +27 12 394 0255 

Website: www.economic.gov.za 


134

LISTING 

Department of Defence 

Address: cnr Delmas Avenue & Nossob St, Erasmuskloof, 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 


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 


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 


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 


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 


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 


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 


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 


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 


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 


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 


Tel: 080 232 3244 (SA only) 

Website: www.dmv.gov.za 

Department of Mineral Resources 

Address: 70 Meintje Street, Trevenna Campus, Sunnyside 0007 


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 


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

Website: www.saps.gov.za 


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 


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 


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 


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 


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 


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 


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 


Address: Regent Place, 66 cnr Madiba and Florence Ribeiro Street, 

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 


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 


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 


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 


Tel: +27 12 427 8000 | Fax: +27 12 427 8016 

Website: www.dtps.gov.za 


136

LISTING 

Mahikeng 

Mbombela 

eMalahleni 


LISTING 

Department of Water and Sanitation 

Address: Sedibang Building, 185 Frances Baard Street, 

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 


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. 


138

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, 


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 



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. 


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. 


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 


Area 129 825km 2 

Premier 

Languages 

Elias Sekgobelo "Ace" Magashule 

(ANC) 

Afrikaans, English, Sotho, 

Tswana 


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. 


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. 


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 


Area 18 178km 2 

Premier David Makhura (ANC) 

Languages 

Afrikaans, English, Sesotho, 

Zulu 


The Vision and Mission 

The Tshwane Economic Development Agency 


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. 


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). 


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


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 


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. 


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 


Area 94 361km 2 

Premier Willies Mchunu (ANC) 

Languages English, Zulu 



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. 


150

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. 


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 


Area 125 754km 2 

Premier Stanley Mathabatha (ANC) 

Languages Sesotho, Tshivenda, Xitsonga 



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. 


152

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. 


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 


Area 76 495km 2 

Premier David Mabuza (ANC) 

Languages Ndebele, Swati, Zulu 



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 


154

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. 


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 


Area 372 889km 2 

Premier Sylvia Lucas (ANC) 

Languages Afrikaans, Setswana, Xhosa 



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 


156

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. 


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 


Area 104 882km 2 

Premier Supra Mahumapelo (ANC) 

Languages 

Afrikaans, Sotho, Tsonga, 

Tswana, Xhosa 



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. 


158

REGION 

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. 


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 


Area 129 462km 2 

Premier 

Languages 

Helen Zille (DA) 

Afrikaans, English, Xhosa 


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)...............................................................................146 

Verifi.......................................................................................................................................................................114 

Volkswagen South Africa....................................................................................................5, 40, 63, 101, 122 

WorleyParsons RSA.....................................................................................................................................91 - 93 

Join us! 

Advertise your organisation in this journal to reach 

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

these are not 

ur average 

Don’t 

onferences 

pack light, 

as these are not 

your average 

conferences 

Say goodbye to 

dull 

conferences 

Say goodbye to 

dull 

conferences 

Terms and conditions apply. Errors and omissions excluded. 

*Group bookings should be for a minimum of 30 delegates/members. 

To book your unique conference, contact Minister Kganyago - Manager: Conference Marketing 

Tel: 011 919 9056 | Cell: 079 513 8708 | Email: minsterk@atkv.org.za

South African Business 2018 edition

Create successful ePaper yourself

Delete template?

Save as template?