Free State Business 2018 edition

christoffscholtz

Free State Business 2018 is the eighth edition of this successful production. Since its launch in 2008, Free State Business has established itself as the premier business and investment guide to the Free State Province. Supported and utilised by the Free State Development Corporation (FDC), the publication is
unique in that its focus is exclusively on the business and investment environment of the Free State.

The print journal is supported by the the publishers' portal at www.globalafricanetwork.com and updates, business news and event listings can be found on the monthly Business SA e-newsletter, with a circulation of over 30 000. Global Africa Network Media (www.globalafricanetwork.com), the
publisher of Free State Business, specialises in business-to-business print publications, producing a series of region-specific, annual print journals. Every province in South Africa is covered by this unique range of journals and websites, complemented by a national business guidebook, South African Business.

FREE STATE

BUSINESS

THE GUIDE TO BUSINESS AND INVESTMENT

IN THE FREE STATE

2018 EDITION

JOIN JOIN US ONLINE US ONLINE

WWW.GLOBALAFRICANETWORK.COM | WWW.FREESTATEBUSINESS.CO.ZA

| WWW.LIMPOPOBUSINESS.CO.ZA


MESSAGE

A commitment to

inclusive growth

CEO of the FDC Ikhraam Osman invites business people

to explore the opportunities on offer in the Free State.

IKHRAAM OSMAN

CEO, Free State Development

Corporation

The recovery in agricultural

output had been accompanied

by increased consumer

confidence. Adding to the

good news, manufacturing output

expanded in August for the

first time in 2017. Both external

and domestic as well as cyclical

and structural factors have

contributed to the slowdown

in emerging markets. On average,

external factors have been

the main cause of the slowdown.

Such factors have included weak

global demand due to falling

commodity prices.

Export trade has been shifting

towards emerging market economies

such as China and India, with

the advanced economies’ combined

share of the overall export

basket having declined. The rest

of Africa has become one of the

largest markets for South Africa’s

merchandise exports, accounting

for 27.8% of the overall export

basket in 2016, up from a 25.4%

share in 2010. The extent of South Africa’s trade concentration is higher

at the sectoral level, but has also been improving. The manufacturing

sector accounted for 60% of the merchandise export basket in 2016,

compared to 57.1% in 2010.

In line with Free State Growth & Development Strategy and the

mandate of broadening access to economic opportunities to Free

State-based business sector, the Free State Development Corporation

will continue to unlock business opportunities for both local direct

and foreign direct investors.

This 2018-2019 Free State Business publication presents the Free

State’s value proposition as a business and tourism destination. The

province is open for business with the annual Macufe “Mangaung

African Cultural Festival” that brings up to 150 000 travellers into the

City of Roses, “Bloemfontein” as is commonly known. The “Tabalaza

Initiative” which is a brainchild of MEC for Economics, Small Business,

Tourism and Environmental Affairs, Dr Benny Malakoane, will continue

to link start-up start up innovative business initiatives in the Free State

with funding and mentoring support from established business.

Key opportunities in the Free State includes the following:

• A leading agricultural commodities producer presenting significant

opportunities across the agro-processing value chain.

• Mangaung Metro has announced a R100-billion infrastructure investment

programme to unlock, business, retail, real estate and

infrastructure development along the N8 Corridor.

• A newly launched Special Economic Zone attracting investments in

Food Processing, Manufacturing, Logistics and Beverages.

• An attractive incentive package is available for manufacturing

entrepreneurs that sign a minimum of five-year lease agreements.

• The FDC in partnership with the dti is in a process of revitalising

existing industrial parks and developing new ones.

The FDC investment facilitation team can help you to explore

business opportunities in the Free State. www.fdc.co.za

FREE STATE BUSINESS 2018


Free State Development

Corporation (FDC)

Driving enterprise development and investment in the Heart of

South Africa, the Free State province.

The FDC contributes to the Free State’s economic

development through four service delivery

pillars:

SMME/co-operative funding and support

The FDC provides products and services to SMMEs

and co-operatives in the form of financial support

(business loans) as well as business development

support (facilitating training and mentoring service

providers).

The principal loan products offered to Free State

entrepreneurs by the FDC are:

• Start-up loans for recently established businesses

that are mainly at formative stages.

• Expansion loans offering viable and existing

businesses the capital needed to expand.

Business take-over finance to assist potential

clients to acquire a business as a going concern.

• Bridging finance for SMMEs with short-term cashflow

problems with contracts or tenders.

Property management

The FDC administers a diverse property portfolio

and can offer small to medium enterprises suitable

premises at affordable rates. The corporation has

some 253 commercial properties, 290 industrial

properties and a large number of residential and

vacant land for development.

The corporation aims to use them to facilitate

commercial and industrial activity, while assisting

new investors looking for suitable premises.

The FDC offers advice and guidance in terms of

the following incentives:

• Subsidised rental rates.

• Rental holidays of up to three months.

• Special incentives and discounts for BEE

companies or individuals.

Export-related services

FDC services to exporters include the Export

Promotion Programme, which aims to grow

demand for Free State products in global markets

through capacity-building workshops, the

dissemination of trade leads, networking opportunities

with inbound trade missions, product

promotion through participation in outbound

group missions and on national and international

exhibitions, access to national export-incentive

programmes, market access information and

technical advice on exporting procedures.

Investor services

The FDC offers a range of services to investors and

businesses looking to trade in the Free State. These

include the following:

• Project appraisal and packaging.

• Promotion and facilitation of investment projects

and facilitation of access to finance.

• Providing access to business and government

networks and assistance with business retention

and expansion.

• Information on statutory requirements, investment

advice and assistance with investment

incentive applications and business permits.

• Assisting with the development of local and international

markets and facilitating joint ventures/

equity partnerships through identification of

local partners.

For additional information please contact

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

wecare@fdc.co.za / info@fdc.co.za

www.fdc.co.za


CONTENTS

CONTENTS

Free State Business 2018 Edition.

Introduction

Foreword6

Free State Business is a unique guide to business, investment

and tourism in the province.

FDC message

CEO of the FDC Ikhraam Osman invites business people to

explore the opportunities on offer in the Free State.

Special features

IFC

Regional overview of the Free State 8

The launch of the Maluti-A-Phofung Special Economic Zone

was a significant event for the economy of the Free State.

The N8 Corridor 12

Linking communities and creating economic opportunities.

Free State Development Corporation opportunities 14

The Free State Development Corporation is driving a number

of exciting investment opportunities in the Free State province.

Establishing a business in SA 26

The barriers to doing business in South Africa have been eased

for local and international companies.

SA investment incentives 28

The South African government has a range of incentives

available to investors, existing companies, entrepreneurs and

co-operatives across many sectors.

FREE STATE BUSINESS 2018

2


UIF SAVING JOBS

THROUGH SOCIALLY

RESPONSIBLE INVESTMENTS

The National Development Plan is a blueprint serving as

a guideline to government departments and state entities

on how they can play a role in government wide efforts

of creating decent work, reducing unemployment and

poverty. The Unemployment Insurance Fund is among

the leading state entities in the implementation of the

provisions of the NDP to address the slow economic

growth, unemployment and poverty in South Africa.

The UIF social investment mandate ensures that,

additional to earning good financial returns, investments

must be supportive of long term economic, social and

adhere to sustainable environmental outcomes. The

investments must also yield a good social return for the

country. These investments have sustained 6 860 jobs of

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

and 195 are new jobs created during the financial year

ending in March 2016.

UIF INVESTMENTS IN RENEWABLE ENERGY

The UIF investments are contributing to the energy

requirements of South Africa and the investments in the

renewable energy sector provides a total capacity of 192

megawatt of electricity of which 117 megawatt is solar

energy and 27 megawatt is wind generated electricity.

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

investments and this project produces 90 megawatt of

electricity and was completed in April 2016. The solar plant

in the area generates enough electricity to power 15 000

houses. Another mainstay project is the Phakwe Group ran

projects undertaken in the Northern and Eastern Cape.

INVESTMENT IN FOOD SECURITY

The UIF investments in this regard are undertaken under

the banner of the UIF Agri-Fund in partnership with

Futuregrowth and Day Breaker Poultry Project. The UIF

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

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

450 hectares. The farm in the last financial year produced

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

area covering 28 hectares.

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

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

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

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

additional 92 hectares of grapes. The Daybreaker Poultry

project operates in Gauteng, Limpopo and Mpumalanga

and the combined projects have facilities to grow 1.6

million broiler chickens.

INVESTMENTS IN HEALTH CARE FACILITIES

The UIF concluded two investments in this regard that

include a BEE hospital manager, Busamed to build a

private hospital in Modderfontein and Fund Manager

Razorite Heatlhcare that focus on the provision of

affordable heathcare facilities that include rehabilitation

and sub-acute centres.

The Modderfontein hospital is a 220 hospital bed with subacute

facilities. This hospital is under construction. While

the RH Fund Manager has concluded seven investments

that include:

• Busamed with four hospital facilities

• HealthMed with two facilities

INVESTMENTS IN EDUCATION

UIF has invested in three investments that play a role

to unlock access to education. The investments were

concluded with Eduloan – an organisation that provides

financial support to tertiary students and South Point and

Educor organisations that provide student accommodation.

By March 2016, Eduloan had disbursed about R446 986.64

benefiting 34 047 students, whiles South Point provided

about 10 000 student with accommodation.

UIF INVESTMENTS IN ENTERPRISE DEVELOPMENT

The UIF has concluded two investments with the aim of

supporting small and medium enterprises. In this regard

the PIC on behalf of UIF has concluded investment deals

with Musa Capital and TOSACO.

The investments will support more than 250 SMMEs across

various sectors inclusive of agriculture and affordable

housing. Musa Capital for example has a supply chain of

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

jobs.

TOSACO investments is planning to advance capital to

young black entrepreneurs who aspire to own and manage

Total Filling stations around the country.

For more information:

Call: 0800 843 843 or

visit: www.labour.gov.za


CONTENTS

Economic sectors

Agriculture38

Record maize harvests are helping the national economy.

Mining40

Diamonds are sparkling in the Free State.

Manufacturing49

Regional industrial policy aims to attract investors.

Oil and gas 50

Free State gas fields could feed new power stations.

Tourism54

The game industry is set to boost the wider tourism sector.

Education and training 56

Access to education is improving.

Banking and financial services 57

Many agricultural companies are active in financial services.

Development finance and SMME support 58

A business park in Sasolburg is supporting black industrialists.

Government

Free State provincial and local government 62

A guide to the provincial government departments,

metropolitan, district and local municipalities.

Reference

Sector contents 36

MUNICIPALITIES IN THE FREE STATE

North West

Gauteng

Metsimaholo

Fezile Dabi

Ngwathe

Mafube

Mpumalanga

Maps

Nala

Moqhaka

Nketoana

Phumelela

Regional map 11

Municipal map 64

Northern Cape

Tokologo

Matjhabeng

Tswelopele

Lejweleputswa

Masilonyana

Setsoto

Thabo Mofutsanyana

Maluti-a-Phofung

Dihlabeng

KwaZulu

Natal

Mangaung

Mantsopa

Letsemeng

Xhariep

Naledi

LESOTHO

N

Mohokare

Kopanong

Metropolitan/District

Municipality boundary

Local Municipality Boundary

FREE STATE BUSINESS 2018 4

Eastern Cape

District Municipality

Local Municipality

Xhariep

Naledi


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FOREWORD

Free State Business

A unique guide to business and investment in

the Free State.

Free State Business 2018 is the eighth edition of this successful

production. Since its launch in 2008, Free State Business has

established itself as the premier business and investment

guide to the Free State Province. Supported and utilised by

the Free State Development Corporation (FDC), the publication is

unique in that its focus is exclusively on the business and investment

environment of the Free State.

The print journal is supported by the ebook edition at

www.freestatebusiness.co.za and updates, business news and event

listings can be found on the monthly Business SA e-newsletter, with

a circulation of over 30 000.

Global Africa Network Media (www.globalafricanetwork.com), the

publisher of Free State Business, specialises in business-to-business

print publications, producing a series of region-specific, annual print

journals. Every province in South Africa is covered by this unique

range of journals and websites, complemented by a national business

guidebook, South African Business.

Chris Whales

Publisher, Global Africa Network Media

Email: chris@gan.co.za

www.globalafricanetwork.com

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

Free State Business is distributed nationally on outgoing and

incoming trade missions; via the Free State Development

Corporation (FDC); at top national and international events;

through the offices of foreign representatives in South Africa;

as well as nationally and regionally via chambers of commerce,

tourism offices, trade and investment agencies, 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 1999-5059

COPYRIGHT | Free State Business is an independent publication published

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

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

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

permission of Global Africa Network Media (Pty) Ltd.

PHOTO CREDITS | Pictures supplied by flickr.com, Public Domain

Images, Wikimedia Commons, skyscrapercity.com, Eugene Armer

RailPictures, Roodt Architects and Pixabay.

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

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

in Free State Business is accurate and up-to-date, the publishers

make no representations as to the accuracy, quality, timeliness, or

completeness of the information. Global Africa Network will not accept

responsibility for any loss or damage suffered as a result of the use of or

any reliance placed on such information.

FREE STATE BUSINESS 2018

6


A REGIONAL OVERVIEW OF

FREE STATE

PROVINCE

A new Special Economic Zone is

attracting investors

The official launch in April 2017 of the Maluti-A-Phofung Special Economic Zone was a

significant event for the economy of the Free State.

By John Young

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.

Sectors prioritised at the Maluti-A-Phofung SEZ

(which is located on South Africa’s busiest highway,

the N3) include logistics, ICT, automotive, pharmaceuticals,

manufacturing and agri-processing. The

1 000ha site will have four zones: agri-processing, light

industrial, heavy industrials and a container terminal.

The reference to agri-processing points to a

broader trend in economic planning in South Africa

– the desire to create value-added 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) should

boost the rural economy and provide opportunities

for investors.

The idea of clustering developments is also

behind the N8 Corridor concept which covers

Bloemfontein, Botshabelo and Thaba Nchu. Within

this are several projects including 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.

Another 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.

FREE STATE BUSINESS 2018

8


SPECIAL FEATURE

The Provincial Government

of the Free State has hosted

two events targeting foreign

investors, called the Free State

Global Investors Trade Bridge.

In November 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.

A new water pipeline from

the Xhariep Dam is being built to

serve the Xhariep District and the

Mangaung Metro. A steady and

reliable water source is an important

component in attracting

investment.

Five major national highways

intersect the centrally

located province which is also

well served by rail and air links.

The Bram Fischer International

Airport in the provincial capital

city of Bloemfontein is the site of

a multi-phase industrial and commercial

development. Two leading universities (the

University of the Free State and the Central University

of Technology) have several campuses across

the province.

Game-changing development

A potentially game-changing development in the

local economy is the building of a R200-million

helium extraction plant to exploit a natural gas and

helium field near the towns of Virginia, Welkom and

Theunissen. With proven reserves of 25-billion cubic

feet, the rights to the field are owned by Renergen

and they will be worked by Afrox, a subsidiary of the

Linde Group of Germany.

Another emerging sector is solar energy. The

Xhariep, Lejweleputswa and Mangaung regions

have among the best direct solar radiation kWh/m²

in the country. Rezoning for solar farms has already

taken place in Theunissen, Bloemfontein, Fauresmith

and Hoopstad.

The Free State shares borders with six other

provinces, in addition to the Mountain Kingdom of

Lesotho. A summer-rainfall region with a mean annual

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

types and topography vary greatly within the province,

with plains in the west and mountains in the

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

with some Karoo vegetation occurring in the south.

The Free State produces significant proportions

of South Africa’s wheat (30%), sunflowers (45%) and

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

to national GDP in agriculture.

Municipalities in Free State

The Free State has one metropolitan municipality

(Mangaung), four district municipalities and 19 local

municipalities.

Mangaung Metropolitan Municipality

Mangaung Metropolitan Municipality is a Category

A municipality which governs Bloemfontein,

Botshabelo and Thaba Nchu. The sixth-largest city

in the country, the Mangaung municipal area covers

more than 6 263km² and has a population of about

850 000 people. The languages spoken in the area

are mainly Sesotho, Afrikaans, English and Setswana.

Bloemfontein, which is responsible for about

25% of provincial GDP, is at the centre of a development

node known as the N8 Corridor which is

intended to boost development along the road

from Lesotho to Kimberley and Upington in the

North West province. Several projects are under

way in and around the provincial capital, including

an Airport Node (logistics, supply chain, flats,

shopping malls), Naval Hill (projected new hotel

in the nature reserve), expansion of Hamilton

Business Park.

The city’s Fresh Produce Market is an important

cog in the distribution of agricultural produce in the

region while it is connected to all other centres by

good rail and road links. There is a marshalling yard,

a petroleum depot and two airports (one military).

The national Supreme Court of Appeal is located in

Bloemfontein and the National Museum has superb

rock art exhibits.

9

FREE STATE BUSINESS 2018


SPECIAL FEATURE

Xhariep District Municipality

Towns: Trompsberg, Koffiefontein, Zastron,

Philipollis, Edenburg, Fauresmith, Smithfield,

Wepener

The southernmost region of the Free State is a largely

dry area with open grasslands predominating, although

it is also home to the Gariep Dam, South

Africa’s largest dam. Crops are produced in the

northern parts of the district whereas sheep farming

predominates in the south. Trompsberg has the

second-biggest sheep-shearing barn in the country.

Diamonds, gravel and clay are mined at

Koffiefontein. Jagersfontein is one of the first places

where diamonds were found, and it has its own version

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

is a good stopping-over place for tourists wanting

to experience the water sports available on the

Gariep Dam.

The dam is also the site of small hydro-power

and aquaculture projects which are intended to

create employment and tackle food security. The

nearby Tussen die Riviere Nature Reserve and the

Mynhardt Game Reserve have a variety of wildlife in

spectacular settings. Jacobsdal’s Landzicht winery

has proved itself as a worthy producer of wine. San

rock paintings and Anglo-Boer War sites are plentiful.

Fauresmith hosts an annual horse endurance

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

every winter, the “Bibber Fees”. The steel

bridge over the Caledon River at Wepener is a

national monument.

Lejweleputswa District Municipality

Towns: Welkom, Virginia, Boshof, Christiana,

Bultfontein, Bothaville

Mining is the most important economic activity in

this area, also known as the Free State Goldfields,

but it is also the most important maize-growing

area in South Africa. A large natural gas field has

been discovered on what used to be gold turf.

Bothaville is the self-proclaimed Mielie Capital of

South Africa but it is a name that is apt. The town

hosts the annual NAMPO maize festival and the

headquarters of Grain SA.

Mining town Welkom is the major urban centre

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

jewellery school and it is intended that this will

form the nucleus of a jewellery beneficiation hub

and an IT hub.

The area has tourist assets such as a holiday

resort on the Allemanskraal Dam, the Goldfields

Wine Cellar in Theunissen and the Willem Pretorius

Game Reserve but there is potential for growth in

the heritage sector.

Fezile Dabi District Municipality

Towns: Sasolburg, Parys, Kroonstad, Frankfort,

Heilbron, Viljoenskroon

The chemical complex at Sasolburg is the economic

driver in the district, which shares a border with

Gauteng province along the Vaal River. The town of

Heilbron is another important industrial centre and

Frankfort does important agricultural processing

FREE STATE BUSINESS 2018

10


Ulco

Northern

Cape

De Aar

Smithfield

Bethulie

Rouxville

Zastron

SPECIAL FEATURE

Balfour

Mpumalanga

Potchefstroom

Vereeniging

Ottosdal Klerksdorp

Parys Lethabo

Sasolburg

N12

Vredefort

Standerton

Wolmaransstad

Viljoenskroon

Villiers

R30

N1

Heilbron

North West

Frankfort

Volksrust

Bothaville

R34

R57

Bloemhof

Vrede

Kroonstad

N3

Hoopstad

Odendaalsrus

Reitz

Newcastle

Christiana Wesselsbron

R76

Warden

Welkom

R26

Virginia

Ventersburg

Warrenton

R70

Theunissen

Harrismith

Bultfontein

N5 Bethlehem

Senekal

Van Reenen

Clarens

Phuthaditjhaba

Dealesville

Winburg

Fouriesburg Golden Gate

Ladysmith

R64

National Park R74

Marquard

Ficksburg

N3

Colenso

N8

Clocolan

Winteron

BLOEMFONTEIN

Jacobsdal

Petrusburg

Thaba Nchu

Estcourt

N12

Ladybrand

Botshabelo

R26

Hobhouse

Koffiefontein

N1

MASERU

Edenburg Dewetsdorp

LESOTHO KwaZulu-

Wepener

Underberg Natal

N6

Trompsburg

FREE STATE PROVINCE

N

KIMBERLEY

Eastern Cape

Gauteng

Motorway

Main Road

Railway

work. Kroonstad is the district’s second-largest

town and has a number of engineering works and

a railway junction. A new kraft paper factory has

been planned for Frankfort.

A good proportion of South Africa’s grain crop

is sourced from this district and when the vast

fields of sunflowers and cosmos flowers are in

bloom, a marvellous vista is created. The Vaal

River presents opportunities for yachting, rafting

and resort-based enterprises. Parys is a charming

town and Vredefort is home to a World Heritage

Site – the Vredefort Dome where a meteor crashed

to earth.

Fezile Dabi District Municipality is the biggest

contributor towards the provincial GDP, contributing

approximately 35%. The Fezile Dabi area is

mostly dominated by the industrial power of Sasol,

with the manufacturing of refined petroleum, coke

and chemical products adding largely to its GDP.

The establishment of ChemCity, a wholly

owned subsidiary of Sasol, has also added a business

incubator that allows SMMEs to feed off and

diversify from the opportunities that prevail due

to the energy consortium operating in the area.

Thabo Mofutsanyana District Municipality

Towns: Phuthaditjhaba, Bethlehem, Tweespruit,

Ladybrand, Clarens, Harrismith, Vrede,

Ficksburg

Tourism and fruit farming are the two principal

economic activities of this area which is characterised

by beautiful landscapes: the Maluti and the

Drakensberg mountain ranges, wetlands in the

north, well-watered river valleys and the plains of

the north and west. The most famous asset is the

Golden Gate National Park.

Industrial activity is undertaken at Harrismith and

Phuthaditjhaba, where the Free State Development

Corporation is promoting investment. The Maluti-a-

Phofung Special Economic Zone (SEZ) at Harrismith

is a multi-modal transport and logistics hub.

The commercial centre of the district is

Bethlehem while Clarens and Ficksburg have

become famous for their artists and cherries respectively.

Marquard produces 90% of South

Africa’s cherries. The north of the district has many

sunflower seed farms.

The Basuto cultural village in Qwa Qwa offers

beautifully made crafts, and rock paintings.

11

FREE STATE BUSINESS 2018


The N8 Corridor

Linking communities and creating economic opportunities.

The Free State capital city of Bloemfontein is well

known for its central location. Three major national

highways pass through the city: the N1

is South Africa’s main north-south connection,

the N6 links Bloemfontein with a coastal industrial

development zone in East London and the N8 connects

the provincial capital with Lesotho’s capital,

Maseru, in the east and the Northern Cape city of

Kimberley to the west. While the first two roads carry

significant amounts of cargo and are well-utilised,

the N8 still has untapped potential.

The N8 Corridor is the focus of a range of initiatives

which aim to improve connections, stimulate

economic activity and improve the delivery of services

and housing to Free State citizens, particularly

to those who live in Botshabelo and Thaba Nchu.

A plan for the coordinated development of

the N8 Corridor has been approved by a range of

bodies and is being funded by the Development

Bank of Southern Africa (DBSA) and the Mangaung

Metropolitan Municipality.

To understand the scope of the plans, one has

only to list the other interested parties in the project:

South African National Roads Agency (SANRAL),

Airports Company South Africa (ACSA), Interstate

Buslines (IBL), Transnet, Mangaung Chamber

of Commerce and Industry, Motheo District

Municipality, Free State Provincial Government, private

developers and financial bodies.

The N8 Corridor concept covers Bloemfontein,

Botshabelo and Thaba Nchu. Within this are

several projects including the ICC Precinct (hotel

and convention centre in Bloemfontein),

Bio-Medical Park, tourism infrastructure for the

development of Naval Hill and the planned

Airport Node. The illustration is a concept design

for an office park at the Airport Node by the

Paragon Group.

Infrastructure

Existing infrastructure is being used as the hub for

additional developments and schemes. Bram Fischer

International Airport, the province’s major airport, is

managed by Airports Company South Africa (Acsa).

Facilities at Bloemfontein Airport are shared with Air

Force Base (AFB) Bloemspruit, which serves the central

region, and the SA Red Cross Air Mercy Service.

A project covering 2 000ha and expected to cost

in the region of R100-billion over several phases has

been initiated at the airport. A development plan

for the area has designated five precincts: Terminal,

Boulevard, General Aviation, Airport Industria

and Grasslands. The Road Lodge Hotel was built

within this conceptual plan. A range of land uses

beyond the hotel are envisaged, including warehousing,

hospital care, commercial, service stations,

FREE STATE BUSINESS 2018

12


SPECIAL FEATURE

conferencing, retail, motor vehicle dealerships, car

rental, logistics hub and a showground.

New infrastructure in the form of the new Naval

Hill Reservoir has been established to service the

additional businesses and houses which the N8

Corridor development will create. The reservoir will

ultimately have a capacity of 70ml.

Power utility Eskom is to be approached with

a view to rerouting the power lines along the N8

which currently inhibit development in the area

around the Corridor.

Botshabelo has a manufacturing sector which

employs more than 10 000 people in textiles, plastics

and other sectors. However, the bulk of the

employed population of Botshabelo commute to

Bloemfontein every day, using buses or taxis. A

number of factory buildings and parcels of publicly

owned land in Botshabelo and along the N8 are

either not used or under-utilised.

Close to 30% of the residents of the greater

Mangaung metropole live in Botshabelo. Many

residents are employed in the informal economy in

the area. This is also true of Thaba Nchu, which is a

short distance further down the N8 towards Lesotho.

CBD development

An important part of the Mangaung Metropolitan

Municipality’s most recent Integrated Development

Plan (IDP) relates to reviving or stimulating the central

business districts (CBDs) of the three towns in

the metro.

Thab Nchu has a small central business district

but mostly comprises 42 rural villages which fall

under the Chieftancy of the Baralong boo Seleka

of Thaba Nchu.

The opening of the Botshabelo Mall in November

2016 was a big event for the residents of the area

and a significant step towards boosting the town’s

CBD. The 21 000m² facility is a joint venture between

Khora Investments and STANLIB Direct Property

Investments. Nine hundred jobs were created in

the building phase of the R350-million project, with

a further 1 100 jobs in the operational phase.

Large retailers, furniture stores and banks have

established a presence at the mall, which is on the

corner of N8 and the Main Road. Being able to shop

at the mall means far less travelling on the busy road

to Bloemfontein.

Efficiency, inclusion and sustainability are the

three watchwords for planners in relation to all

plans with regard to the CBDs of Botshabelo and

Thaba Nchu.

The IDP includes a suggestion that the use of

bridges be explored as a way of linking spaces within

the city of Bloemfontein.

Housing

The 2016/17 IDP brings together the concept of the

N8 Corridor with a number of important principles

related to providing better housing:

• Travel distances within the city need to be shorter.

Therefore, the city should embark on denser

mixed developments.

• In rural areas, settlements patterns must balance

the social, cultural and agricultural needs

of families.

• Improved access to work and social amenities,

including sports and recreational facilities.

• De-racialising the built environment through the

accelerated release of land and the development

of the seven land parcels in Cecilia, Brandkop,

Pellisier, Vista Park and Hillside View, to bring

integration and create economic opportunities.

13 FREE STATE BUSINESS 2018


FOCUS

Free State Development Corporation

investment opportunities

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

opportunities in the Free State province.

SCIENCE PARK

To develop a world-class science park through the

provision of a purpose-built facility designed to

provide fully serviced office and laboratory space

for conducting cutting-edge research in a range

of fields including agri-technology, applications

development, computer programming, datamining

and management, digital content production,

design, food research, game development,

healthcare technologies, medical innovation,

product design and development, law and intellectual

property, linked to the University of the

Free State and Central University of Technology.

Concept

To develop world-class infrastructure to support

incubation of a network for companies to

do research, product development, technology

testing, software applications development,

programming and housing of innovative startup

enterprises. The Science Park will house the

following:

• Innovation Centre

• Bio Centre

• IT Centre

• Catalyst

• Enterprise House

These will create a platform for a joint research

and research collaboration between universities

and biotechnology companies, to migrate both

the University of the Free State (UFS) and Central

University of Technology (CUT) registered research

patents into new business opportunities.

Facilities and services

• All-inclusive, flexible, short-term rental agreements

at competitive rates

• 24/7 access

• High-quality broadband access (up to 1GB)

with ICT Active accreditation

Free onsite parking

• A dedicated Customer Service team

Free PR service for residents

• Direct links to the University of the Free State

– offering the advantage of technology and

knowledge transfer, and access to equipment

and library facilities.

Conference and meeting room facilities

• Wide range of conference and meeting rooms

at discounted rates with video conferencing

• Networking zone with free wi-fi

• Shared laboratory facilities

• Virtual Offices, flexible co-working and hot desk

facilities.

Research and development

• Links to the University of the Free State and

Central University of Technology Research

Teams and partnership funded by the dti

(Department of Trade & Industry) and the

Department of Science an Technology and

its agencies

• N8 Research Partnership, Universities of Leeds,

Sheffield and York

• On-site management and dedicated team.

FREE STATE BUSINESS 2018

14


Project location

Bloemfontein, Mangaung Metro, N8 Corridor

Required Investment

ZAR 400m

To discuss these opportunities, contact

Frank Tlhomelang, Manager: Research &

Development & Acting GM: Trade & Investment

Tel: +27 51 4000 800

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

Prof Ryk Lues, Director

Tel: +27 51 507 3145 | Email: rlues@cut.ac.za

Ms ZP Sintiya, Administrative Assistant

Tel: +27 51 507 3121 | Email: zsintiya@cut.ac.za

15

FREE STATE BUSINESS 2018


FOCUS

BETHLEHEM SAND MINING PROJECT

MEDICAL WASTE TREATMENT

There is an opportunity to establish a sand mining

business 6km outside Bethlehem – called Bethlehem

Water and Sand (Pty) Ltd – to supply Bethle

hem and the surrounding towns with build ing,

plaster and brick-making sand.

Milestones

Business plan completed.

• Geological report available.

• EIA completed and ROD is available.

• Mining permit obtained.

Project Requirements

The project sponsor requires capital injection

and participation by BEE partners with experience

in the sand mining value chain, or sand

distribution.

Location

Dihlabeng Local Municipality in Bethlehem.

Investment Required

The project requires funding to the tune of

R120-million. The project has the potential to

create 120 jobs when fully operational.

A technology partner and investor is required to

partner with a local investor to set up a medical

waste treatment facility.

Concept

To design a modern medical and solid waste

treatment facility. The company implements

Electro-Thermal Deactivation processes

to dispose of healthcare risk waste.

This is a non-burn technology that has

zero emissions. Pathogens are treated with

50 000V within the ETD (Microwave) and this

renders the waste clean and harmless.

Location

Virginia in Matjhabeng.

Investment Required

Estimated project cost R30-million.

To discuss opportunities on this page, contact

Frank Tlhomelang, Manager: Research &

Development & Acting GM: Trade &

Investment

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

Email: invest@fdc.co.za

DPE & PVC PIPES MANUFACTURING

A private-sector investor is required to establish

and operate a plastic extrusion facility at Parys in

the Ngwathe Local Municipality.

Concept

Plastics extrusion is a high-volume manufacturing

process in which raw plastic is melted and

formed into a continuous profile. Extrusion produces

items such as pipe/tubing, weather stripping,

fencing, deck railings, window frames, plastic

films and sheeting, thermoplastic coatings and

wire insulation.

Project Requirements

A technology partner is required for individual

investors that have expressed interest.

Investment Required

Investment required is estimated at R10-million.

Manufactured products and manufacturing

processes must be SABS-certified.

FREE STATE BUSINESS 2018

16


Reasons to invest in the Free State

FOCUS

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

and traders, through the Free State Development Corporation.

About the Free State

Situated in the heart of South Africa, the Free State

is the country’s third-largest province and borders

Lesotho as well as six of the eight other provinces,

including the country’s economic centre, Gauteng.

The Free State is an ideal trading partner both

within South Africa, and with Africa and other international

markets. The province has excellent infrastructure

and transport links, and provides easy

access to the main ports of Durban, East London

and Port Elizabeth.

Factors that favour investment in the Free State

Factors positioning the province as a favourable

business and investment destination:

• Centrally located with easy access to markets

within South Africa and Africa.

• Availability of a large and affordable labour

pool.

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

education, banking and medical facilities).

• Competitive land and building costs.

• Low factory rentals.

• Abundance of natural resources.

• Recreational and lifestyle facilities.

• Most developed telecommunications network

in Africa.

• Open to business, trade and foreign investment.

• Availability of required skills pool.

• Attractive investment regime.

17

FREE STATE BUSINESS 2018


FOCUS

Maluti-A-Phofung SEZ

investment opportunities

Maluti-A-Phofung Special Economi c Zone

(SEZ) has been established in terms of

the Special Economic Zones Act, Act No.

16 of 2014. The programme is intended

to deepen industrial development and improve

manufacturing competitiveness in the Maluti-A-

Phofung Municipality.

Located in Harrismith and Tshiame in the Eastern

Free State, MAP SEZ is strategically located on the N3

national road, halfway between Johannesburg and

Durban. MAP SEZ offers in total up to 1 000 hectares

of land for industrial development. Since Durban

port is the busiest in the southern hemisphere, this

therefore means that N3 carries majority of the traffic

to different locations in South Africa and the neighbouring

countries such as Lesotho and Swaziland.

MAP SEZ constitutes the Free State leg of the

massive Durban-Free State-Gauteng logistics and

industrial corridor that is intended to strengthen

the logistics and transport corridor between South

Africa’s main industrial hubs to:

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

• Integrate Free State Industrial Strategy activities

into the corridor.

• Build a new port in Durban.

• Expand an aerotropolis around OR Tambo

International Airport.

SEZ Project Pipeline

There are already 18 manufacturing companies

(ranging from pharmaceutical to automobile companies)

that have signed letters of intent to locate

in the MAP SEZ. Some of the sectors targeted for

establishment within the MAP SEZ are as follows:

• Pharmaceuticals.

• Medical devices.

• Logistics and distribution.

• Agro-processing.

• Food processing.

• Trade facilitation.

• Rail-based container terminal

(Transnet Freight Rail).

• Automotive cross docking facilities.

• Logistics and supply chain management.

• Information & Communi cation Technology.

• Logistics.

Benefits

Benefits that will be derived from locating within

MAP SEZ includes:

• 15% Corporate Tax, national is 28%.

• Building Allowance.

• Employment Incentive.

• Customs Controlled Area.

• 12i Tax Allowance.

MAP SEZ Milestones

• MAP SEZ was launched by President Zuma on 25

April 2016 and is open for business.

• Maluti-A-Phofung SEZ operator permit granted by

Minister of Trade & Industry after cabinet approval.

• Perimeter fencing has been completed.

• Bulk infrastructure roll-out is in process.

• Marketing and promotion to build a robust IDZ

project pipeline is in process.

To discuss these opportunities, contact

Sipho MG Tshabalala, Marketing & Communications Manager

Tel: +27 51 4000 804 | Cell: +27 78 076 8676 | Email: Sipho@mapsez.co.za | Website: www.mapsez.co.za

FREE STATE BUSINESS 2018

18


FOCUS

FOOD PROCESSING PARK

The building of a world-class, integrated food

processing park to include food processing,

warehousing, cold storage and manufacturing

facilities to enhance production efficiencies.

Location

MAP SEZ Food Processing precinct.

Milestones

• Concept developed.

Business plan completed.

• Marketing the opportunity to prospective

investors.

Investment Required

Investment estimated at R750-million.

MEDICAL EQUIPMENT AND DEVICES

MANUFACTURING

The FDC has signed an investment agreement

with two leading Chinese companies (in the

medical devices and electronic equipment

value chain) to establish a medical devices and

medical apparatus and instrumentation manufacturing

plant in the newly designated Maluti-

A-Phofung SEZ.

Location

Maluti-A- Phofung SEZ.

Milestones

• Investment agreement signed.

• South African subsidiary of the Chinese

company (Medipro) has been registered.

• Negotiations to fast-track investment are in

process.

• The company has CE certification.

Investment Required

Investment estimated at R600-million.

FRANKFORT PAPER MILLS

The establishment of a Kraft paper factory that

will predominantly use waste container board

paper and virgin pulp to produce Kraft liner, linerboard,

fluting and semi-extensible sack Kraft.

Production capacity is about 180 000 tonnes

per annum.

Concept

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

pulp (80%) as raw material in its production

process with the aim of capturing small

and medium corrugators. Pulp to be used is

unbleached and manufactured by suppliers

using the Kraft process.

The Kraft process produces strong unbleached

papers that can be used for bags and boxes.

Location

Frankfort, Free State.

Milestones

• Feasibility phase.

• Project designs completed.

Project Requirements

• A technology partner and investor that is a

player in the wood and paper value chain is

required to partner with the IDC and local

paper convertors to establish and operate

Frankfort Paper Mill SA.

• Project partners will be responsible for bulk

take-off.

Investment Required

Investment estimated at R1.4-billion.

To discuss this opportunity, contact

Lizeka Matshekga, Head: Forestry & Wood

Products Business Unit, Industrial

Development Corporation

Tel: +27 11 269 3779,

Email: lizekam@idc.co.za

Email: invest@fdc.co.za

To discuss the above opportunities, contact

Sipho MG Tshabalala,

Marketing & Communications Manager

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

Email: Sipho@mapsez.co.za

19

FREE STATE BUSINESS 2018


FOCUS

Why invest in solar generation

plants in South Africa

• South Africa’s solar irradiation levels are among

the best in the world (>2 000kWh/m²).

• Transition to a cleaner energy mix (low carbon

path).

• Strong local content from government (glass,

mirrors).

• Strong, established local construction

companies.

• Experience in building power stations and mines.

• Current steel and pipes production meeting CSP

requirements.

• A target to generate 45% of all new electricity

from renewable sources by 2030.

• The ongoing success of the renewables procurement

programme and the growing interest of international

developers and funders are helping South

Africa to improve its ranking from nowhere to top

10 investment destinations in the world (Renewable

Energy Country Attractiveness Index 2014).

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

energy development with record investments of

over US$10-billion in 2012 and 2013.

Drivers for PV and CSP investments

• Environmental issues such as pollution and

exploitation of natural resources.

• Climate change due to CO2 emissions from

fossil fuels.

• Energy security through diversification of supply.

• Sustainable development.

FOREIGN INVESTMENTS IN THE FREE STATE

POWER PLANT

LOCATION

DATE

OF

COMMISSION

INSTALLED/

PLANNED

CAPACITY

STATUS OPERATOR INVESTMENT VALUE

COUNTRY

OF ORIGIN

LETSATSI PV

PROJECT

PULIDA SOLAR

PARK

BOSHOFF SOLAR

PARK

XHARIEP SOLAR

HUB

EVEREST

SOLAR PLANT

Bloemfontein,

Tokologo LM

Jacobsdal,

Letsemeng LM

May 2014 64MW Operational Solar Reserve

Aug 2016

82MW

Under

construction

Enel

Green Power

3.8-billion, 1-billion cost

of financing

2.4-billion

Tokologo LM Nov 2014 64MW Operational Sun Edison 1.8-billion USA

Kopanong,

Bethulie LM

Matjhabeng LM

Planned

Planned

600MW

Planned

75MW

Planned

Concept

develop ment

and project

design

New

development

Korean

Solar Power

Consortium

FRV Energy

South Africa

16-billion

Project occupies 180ha

of the Farm Beyers 186

(393ha)

USA

Italy

Korea

TBC

GROOTKOP

SOLAR

FACILITY

Matjhabeng LM

Planned

75MW

Planned

New

development

FRV Energy

South Africa

Project will occupy 180ha

of the Farm

Beyers 186 (393ha)

TBC

FREE STATE BUSINESS 2018

20


FOCUS

SOLAR GENERATION PARKS

The project aim is to recruit a private investor to

set up a solar park in the Xhariep, Lejweleputswa

and Mangaung regions, as these offer some of the

best direct solar radiation (kWh/m²).

Process

Investors may participate in both off-grid and

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

solar generation plant is directly supplying an

independent user or seller, for example a mine

or an industrial estate. On-grid is where investors

participate in South Africa’s successful

Renewable Energy Independent Power Producer

Procurement (REIPPP) Programme managed by

the Department of Energy (DOE) and finally supply

the grid.

Projects Location

Xhariep District, Mangaung Metro as well as

Lejwele putswa.

Conversion Technologies

Both photovoltaic modules and concentrated

solar power (CSP) plant conversion technologies

can be implemented.

SOLAR WATER HEATERS

A private investor is required to set up a solar

water heaters manufacturing plant in Botshabelo

Industrial Area. The manufacturing process may

involve the following:

• Fabrication of panel storage tanks.

• Assembly of tank, panel coil and other

components.

• Inspection and commissioning.

• Required raw materials for the manufacturing

of solar water heaters are copper aluminium MS

sheet, pipe, glass fibre, GI sheets, thermostat

and insulation material.

Why Solar Water Heaters

• Eskom electricity demand management

programme.

• Strong local content on SWH procurement by

DOE and Eskom.

• Financial and technology capabilities to manufacture

and supply locally produced systems.

• Construction Sector Education Training

Authority (CETA) and Energy Sector Education

Training Authority offers accredited Level 4

plumbing qualification.

• Availability of plumbing skills currently serv ing

the mining, gas and petroleum industries.

Location

Botshabelo within the N8 Corridor.

Investment Required

To be determined at feasibility.

To discuss these opportunities, contact

Frank Tlhomelang, Manager: Research &

Development & Acting GM: Trade & Investment

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

Email: frank@fdc.co.za or invest@fdc.co.za

21

FREE STATE BUSINESS 2018


FOCUS

GREEN ENERGY IT

Green Energy is a South African company that

assembles solar home lighting systems. The

idea behind this project is to contribute towards

harnessing solar energy to generate power.

Location

The company intend to locate its solar home

lighting manufacturing plant in Maluti-A-Phofung.

Milestones

The FDC financed seed funding to the tune of

R210 000 for the following:

• Product development to redesign its products

so that they can meet international standards

for export market.

• IP registration.

Business case development to solicit financial

and possibly technology partner for future

growth.

• A team of three are driving business

development.

Investment Required

The project requires an experienced technology

partner that is a player within the solar and

LED lights value chain and an investor that will

guarantee take-off of products manufactured.

To discuss this opportunity, contact

Frank Tlhomelang, Manager: Research &

Development & Acting GM: Trade & Investment

Tel: +27 51 4000 800

Email: frank@fdc.co.za

POULTRY PRODUCTION AND

PROCESSING

Concept

The intention is build 10 x 40 000 broiler houses,

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

houses.

Location

These facilities could be located in the following

municipalities: Lejweleputswa, Fezile Dabi, Thabo

Mofutsanyana.

Investment Required

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

poultry production market in the Free State.

PRODUCTION OF SUNFLOWER,

SOYA, BEANS AND LUCERNE

Concept

The FDC is promoting an opportunity to increase

the production of sunflower, soya beans, dry

beans and lucerne. If investment is forthcoming

448 981ha could be put into production by 2030.

Location

Various agricultural areas in the Free State.

Investment Required

An estimated R585.8-million is needed.

To discuss these opportunities, contact

Dr Tankiso Masiteng Tel: +27 82 568 2447

Email: masiteng@agric.fs.gov.za

FREE STATE BUSINESS 2018

22


FOCUS

ROOFSHEET MANUFACTURING

Concept

The FDC is keen to facilitate the production of

roofsheets made from corrugated iron, IRB and

chromadek.

Location

Matjhabeng Local Municipality.

Investment Required

R25-million in capital expenditure is needed.

APPLE PRODUCTION

Concept

Investment is required to add 2 000ha of apple

orchards on agricultural land in the Eastern

Free State.

Location

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

has launched Remmoho, a BEE project that will focus

on increasing apple production in the province.

One of the advantages of growing apples in the

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

to be harvested during the Southern Hemisphere

growing season – a full two to three weeks before

fruit from the more traditional growing areas in the

Western Cape.

A business plan has been completed and would be

available to prospective investors.

To discuss these opportunities, contact

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

Email: frank@fdc.co.za or invest@fdc.co.za

MINING TOURISM

Concept

Convert an old, unused mining shaft into a tourist

attraction that will enable people to experience

life below the surface.

Location

Virginia (Matjhabeng).

Investment Required

R300-million.

JEWELLERY MANUFACTURING

Concept

An opportunity exists to set up a jewellery design

and manufacturing operation adjacent to an

existing jewellery school.

Location

Virginia (Matjhabeng).

Investment Required

R20-million.

To discuss these opportunities, contact

Mpolokeng Mokalobe, Tel: +27 51 400 9585

Email: mokalobem@detea.fs.gov.za

23

FREE STATE BUSINESS 2018


FOCUS

CLOTHING MANUFACTURE

Concept

There are plans to establish a Cut, Make and Trim

(CMT) factory in order to manufacture clothing

in the Free State.

Location

Maluti-A-Phofung Municipality (QwaQwa).

Investment Required

Finance is sought for purchase of machinery

and working capital for 12 months.

WASTE RECYCLING

Concept

The establishment of a plant for waste recycling

and conversion into usable products as well as the

generation of energy from waste.

Location

Mangaung Metropolitan Municipality

(Bloemfontein, Botshabelo and Thaba Nchu).

Investment Required

R65-million.

A business plan has been completed and would

be available to prospective investors.

LED LIGHT MANUFACTURE

TOOLING AND MACHINERY

MANUFACTURE

Concept

Manufacturing of metal, steel and plastic products

for automotive, rail, aviation, mining and other

similar industries.

Location

Botshabelo.

Investment Required

R15.1-million in capital expenditure is needed.

Concept

The manufacture and retail of light-emitting

diodes (LEDs).

Location

Anywhere within the Free State.

Investment Required

R15-million.

TEXTILE MANUFACTURING

Concept

To establish a textile manufacturing facility producing

spun yarn and woven cloth for supply to

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

and the rest of South Africa.

Location

Maluti-A-Phofung Municipality (QwaQwa).

Investment Required

R76-million is required.

To discuss these opportunities, contact

Frank Tlhomelang, Manager: Research & Development & Acting GM: Trade & Investment

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

Email: frank@fdc.co.za or invest@fdc.co.za

FREE STATE BUSINESS 2018

24


Free State trade opportunities

FOCUS

The Free State province offers a wide range of trading opportunities

The Free State’s main exports are:

• Mineral products.

• Plastics and articles thereof.

• Chemical products.

• Vehicle and transport equipment.

• Agricultural equipment.

• Semi-precious stones, metals, imitation jewellery.

• Base metals and articles thereof.

• Textile and textile articles.

• Vegetable and fruit products.

• Wood and articles of wood.

• Raw hides and skins, leather and articles thereof.

• Medical or surgical instruments and apparatus.

• Live animals.

Additional breakdown of products:

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

salt, gypsum, granite, sand stone aggregates).

• Agriculture (maize, wheat, sorghum, potatoes,

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

peanuts, wool, poultry, dairy, cherries).

• Floriculture (cut flowers).

• Chemicals (fuels, waxes, synthetic fuel, liquid

carbons).

• Agricultural machinery and equipment.

• Vehicles (trailers).

• Arts and crafts.

THE FREE STATE DEVELOPMENT CORPORATION OFFICE DETAILS

HEAD OFFICE

FDC House, 33 Kellner Street, cnr of Markgraaff

Street, Westdene, Bloemfontein 9300

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

MOTHEO DISTRICT OFFICES

Botshabelo Office

35 Orange Str, Industrial, Botshabelo 9781

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

Thabo-Nchu/Motheo Office

102 Manyane High Way, Selosesha, Thaba Nchu 7983

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

XHARIEP DISTRICT OFFICE

Xhariep Office

Cnr Van Riebeeck and Voortrekker, Khoisan

Building, Trompsburg 9913 Tel: +27 51 713

0342/3 | Fax: +27 51 713 0342

THABO MOFUTSANYANA DISTRICT OFFICES

Thabo Mofutsanyana Office

357K Clubview, Phuthditjhaba

Tel: +27 58 714 0060/64

Fax: +27 58 714 0071

Industriqwa/Harrismith Office

Cnr Amanda and de Lange, Tshiame A,

Harrismith 9880

Tel: +27 58 635 1112

Fax: +27 58 973 2603

FEZILE DABI DISTRICT OFFICES

Fezile Dabi Office

31 NJ Van der Merwe Crescent, Sasolburg 1942

Tel: +27 16 976 8944/5

Fax: +27 16 973 2603

For additional information on trading opportunities please contact

the Free State Development Corporation on +27 51 4000 800.

www.fdc.co.za | wecare@fdc.co.za | invest@fdc.co.za

25

FREE STATE BUSINESS 2018


Establishing a business in SA

South Africa has eased the barriers to doing business in South Africa for

locals as well as international companies and individuals.

South Africa has a sophisticated legal, regulatory

and banking system. Setting up

a business in South Africa is a relatively

straight-forward process with assistance

being offered by organisations such as the Department

of Trade and Industry and provincial investment

agencies like the Free State Development

Corporation (FDC).

South African law regulates the establishment

and conduct of businesses throughout the country.

Tax, investment incentives, regulations governing

imports, exports and visas are uniform throughout

the country. The particular environment varies from

province to province with regard to the availability

of human and natural resources, the infrastructure

and support services, business opportunities and

the quality of life.

In this respect, the FDC can offer specific advice

about the business environment in the province.

Business is regulated by the Companies Act and

the Close Corporation Act, which cover accounting

and reporting requirements. Under new legislation,

no new Close Corporations can be created but CCs

can convert to companies.

Registration of company

The company must be registered with the

Comp anies and Intellectual Properties Commission,

(CPIC) in Pretoria within 21 days of the company

being started. There are a range of administrative

procedures that need to be fulfilled.

Bank account

A business bank account must be opened in the

company’s name with a bank in South Africa.

Registration with the receiver of revenue

• As a Provisional Taxpayer

• As a VAT vendor

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

on money earned by employees

• For Standard Income Tax on Employees

Registration with the Department of Labour

Businesses employing staff will have to contact the

Department of Labour regarding mandatory contributions

to the Unemployment Insurance Fund (UIF).

Register with Compensation Commissioner for

Compensation Fund: Files with the Compensation

Fund (in the Department of Labour) for accident

insurance (Workmen’s Compensation).

Registration with the local authority

Relevant only to businesses dealing in fresh foodstuffs

or health matters.

Other procedures

Checking exchange control procedures (note

that non-residents are generally not subject to

exchange controls except for certain categories of

investment)

• Obtaining approval for building plans

• Applying for industry and export incentives

FREE STATE BUSINESS 2018

26


SPECIAL FEATURE

• Applying for import permits and verifying import

duties payable

• Registering as an exporter if relevant and

applying for an export permit

Business entities

There are a variety of forms which businesses can

take, including private and public companies,

personal liability companies , non-profit companies,

state-owned companies and even branches of

foreign companies (or external companies).

Branches of foreign companies fall under section

23 of the Companies Act of 2008 and are required

to register as “external companies” with the CIPC.

An external company is not required to appoint a

local board of directors but must appoint a person

resident in South Africa who is authorised to accept

services of process and any notices served on the

company. It must also appoint a registered local auditor

and establish a registered office in South Africa.

Patents, trademarks and copyrights

Trademarks (including service marks) are valid for an

initial period of 10 years and are renewable indefinitely

for further 10-year periods. Patents are granted

for 20 years, normally without an option to renew.

The holder of a patent or trademark must pay an annual

fee in order to preserve its validity. Patents and

trademarks may be licensed but where this involves

the payment of royalties to non-resident licensors,

prior approval of the licensing agreement must be

obtained from the dti. South Africa is a signatory to

the Berne Copyright Convention.

Permits for foreign nationals

Work permits

In considering whether or not to grant a work

permit, the Department of Home Affairs will first

evaluate the validity of the offer of employment

by conducting a number of checks to confirm the

following:

• Has the Department of Labour been contacted?

• Has the position been widely advertised?

• Is the prospective employer able to prove that he

or she has tried to find a suitably qualified local

employee prior to hiring a foreigner?

• Is the prospective employee appropriately qualified

and do they have the relevant experience?

Business permits

Foreign nationals who wish to establish their own

business or a partnership in South Africa must, apart

from having sufficient funds to support themselves

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

in the business.

The funds must originate overseas, be transferable

to South Africa and belong to the applicant

(ie emanate from the applicant’s own bank

account). The business must also create jobs for

South African citizens. After six months to a year,

proof will have to be submitted that the business

is employing South African citizens or permanent

residents, excluding family members of

the employer.

Applications for work permits for self-employment

can only be lodged at the South African

Consulate or Embassy in the applicant’s country of

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

would also have to lodge a repatriation guarantee

with the consulate/embassy equivalent to the price

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

her country of origin.

This guarantee is refundable once the applicant

has either left South Africa permanently or obtained

permanent residence. Any application for an extension

of a business permit may be lodged locally. The

processing fee per passport holder is R425. Some

countries also need to pay R108 per return visa.

A list of countries to which this applies is

available from the Department of Home Affairs.

The FDC assists investors in applying for the

relevant work permits to conduct their business.

What would the FDC do for you?

The FDC will help new businesses by assisting in

project appraisal and packaging, putting investors

in touch with relevant agencies and government

departments, alerting investors to

investment incentives and setting up joint ventures

where required.

A full description of the services offered by the

FDC is reflected elsewhere in this publication.

27 FREE STATE BUSINESS 2018


SPECIAL FEATURE

South African

investment incentives

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

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

entrepreneurs and co-operatives across many sectors.

South Africa wishes to diversify its economy

and incentives are an important part of

the strategy to attract investors to the

country. The Department of Trade and

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

programme, which aims to encourage local and

foreign investment into targeted economic sectors,

but the Industrial Development Corporation

(IDC) is the most influential funder of projects across

South Africa.

There a variety of incentives available and these

incentives can broadly be categorised according to

the stage of project development:

• Conceptualisation of the project – including feasibility

studies and research and development

(grants for R&D and feasibility studies, THRIP,

Stp, etc)

• Capital expenditure – involving the creation

or expansion of the productive capacity

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

• Competitiveness enhancement – involving the

introduction of efficiencies and whetting the

competitive edge of established companies and

commercial or industrial sectors (BBSDP, EMIA,

CTCIP, etc)

• Some of the incentives are sector-specific for

FREE STATE BUSINESS 2018

28


SPECIAL FEATURE

example the Aquaculture Development and

Enhancement Programme (ADEP), Clothing

and Textile Competitiveness Improvement

Programme (CTCIP) and the Tourism Support

Programme (TSP).

Manufacturing

Key components of the incentive programme are

the Manufacturing Incentive Programme (MIP) and

the Manufacturing Competitiveness Enhancement

Programme (MCEP). The initial MCEP, launched in

2012, was so successful that it was oversubscribed

with almost 890 businesses receiving funding. A

second phase of the programme was scheduled

for launch in 2016. The grants are not handouts

as the funding covers a maximum of 50% of the

cost of the investment, with the remainder to be

sourced elsewhere.

The Enterprise Investment Programme (EIP)

makes targeted grants to stimulate and promote

investment, BEE and employment creation in the

manufacturing and tourism sectors. Aimed at smaller

companies the maximum grant is R30-million.

Specific tax deductions are permissible for larger

companies investing in the manufacturing sector

under Section 12i of the Income Tax Act.

Other incentives

Other incentives available to investors and existing

businesses in more than one sector include the:

• Technology and Human Resources for Industry

Programme (THRIP)

• Support Programme for Industrial Innovation

(SPII)

• Black Business Supplier Development Programme

(BBSDP), which is a cost-sharing grant offered to

black-owned small enterprises

• Critical Infrastructure Programme (CIP) that covers

between 10% and 30% of the total development

costs of qualifying infrastructure

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

matching cash grant for registered primary

co-operatives

• Sector Specific Assistance Scheme, which is a

reimbursable 80:20 cost-sharing grant that can

be applied for by export councils, joint action

groups and industry associations.

Incentives for SMMEs

A lot of emphasis is placed on the potential role of

small, medium and micro enterprises in job creation

and a number of incentives are designed to promote

the growth of these businesses. These include:

• Small Medium Enterprise Development

Programme (SMEDP)

• Isivande Women’s Fund

• Seda Technology Programme (Stp).

Seda is the Small Enterprise Development

Agency, an agency of the Department of Small

Business Development that exists to promote

SMMEs.

Trade-related incentives

The Export Marketing and Investment Assistance

(EMIA) Scheme includes support for local businesses

that wish to market their businesses internationally

to potential importers and investors. The scheme

offers financial assistance to South Africans travelling

or exhibiting abroad as well as for inbound potential

buyers of South African goods.

ONLINE RESOURCES

Official South African government incentive

schemes: www.investmentincentives.co.za

Department of Trade and Industry:

www.thedti.gov.za

Industrial Development Corporation:

www.idc.co.za

Free State Development Corporation (FDC):

www.fdc.co.za

29 FREE STATE BUSINESS 2018


ADVERTORIAL

Making it easier to do business with Nedbank

Whole-view Business Banking

Kevin de Beer, Nedbank Provincial General Manager for Retail and

Business Banking for Free State and Northern Cape, explains how

Nedbank can help business owners in these regions.

on what’s most important to you – running your

business,’ says de Beer.

In line with our new brand proposition encouraging

clients to see money differently, our Free State and

Northern Cape agriteams are committed to providing

key support, as well as advisory and business services

to all roleplayers involved in the agrispace in both

provinces. We will share our financial expertise

and play a role in advancing profitable, sustainable

practices throughout the agricultural production and

consumption value chain.

There is good news for Free State and

Northern Cape business owners and

entrepreneurs seeking a unique banking

experience. Nedbank Business Banking

has business managers, located across

both provinces, specialising in commercial

industries as well as the agricultural sector.

De Beer says his team is ready to assist clients with

professional advice, industry-specific solutions

and a comprehensive range of financial products

and services.

‘At Nedbank Business Banking we believe that you

need a financial partner who not only understands

your circumstances and aspirations, but also provides

you with relevant solutions and a banking experience

that is hassle-free. This allows you to concentrate

We recognise that farmers today face many

challenges, and to remain competitive, they

continually have to improve and adopt best practices

and new technologies.

‘We encourage you to see money differently with

Whole-view Business Banking, says de Beer.

‘We are also involved in a number of initiatives with

the public sector, ensuring that such partnerships

support provincial government goals in respect of job

creation and growing the economy,’ de Beer

concludes.

If you are interested in taking your business to the next

level, please call Kevin de Beer on

+27 (0)51 400 5813, send an email to

kevindeb@nedbank.co.za or

visit www.nedbank.co.za.


ADVERTORIAL

Nedbank Business Bundle is a game changer

with savings and personalised services for

small enterprises

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

enterprises in the Free State and Northern Cape, offering the best value

for money when compared to rival offerings.

With the country’s challenging economic

environment, the Business Bundle not only

offers you personalised banking services,

but also critical tools to save – with up to

40% savings on monthly banking fees –

contributing directly to the bottomline at a

time when every cent counts.

In line with Nedbank’s new brand proposition to see

money differently, the Business Bundle resonates with

the bank’s commitment to do good by promoting

small enterprises.

‘As a bank for small businesses we are committed

to partnering with entrepreneurs to help grow their

businesses. As such, Nedbank is always looking at

ways in which we can help unlock the value of our

clients’ businesses. We support their business growth

journeys by providing practical tools to help them

run their businesses,’ says Kevin de Beer, Nedbank

Provincial General Manager, Retail and Business

Banking for Free State and Northern Cape.

‘Small businesses are the lifeblood of our economy.

Nedbank has, over the years, instituted various

interventions aimed at giving support to the smallbusiness

sector.’

To see how Nedbank can help your small business reach

its goals, call Kevin de Beer on +27 (0)51 400 5813,

send an email to kevindeb@nedbank.co.za or

visit www.nedbank.co.za.

Trust us to protect

your business

against everyday

risk

Shareen Gobichund,

Regional Manager of

Broker Channels for

Free State and Northern

Cape, says Nedbank

Insurance is not a onesize-fits-all

business.

Nedbank Insurance has evolved into a business

that provides integrated insurance to individual

and business clients. Our offering comprises

comprehensive short-term and life insurance

solutions, as well as investments.

Nedbank Insurance provides a comprehensive

offering of short-term products on behalf of

blue-chip insurers. If you are interested in

expert advice on the type of cover that is

right for your business needs, look no further.

Nedbank has a team of specialists ready to provide

you with the information you need to make an

informed decision. For more information call

Shareen Gobichund on +27 (0)31 364 3308, send

an email to shareeng@nedbankinsurance.co.za

or visit www.nedbank.co.za.

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

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


OLD MUTUAL ENABLING

POSITIVE FUTURES

IN THE FREE STATE

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

futures for all our stakeholders, especially our customers. We offer a range of financial services that span investment, life

assurance, asset management, banking, healthcare and general insurance.

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

in each province to serve as links between the province and the business. These Provincial Management Boards, or PMBs,

are your primary point of contact with us. Together we can ensure that Old Mutual makes a positive impact on the future of

this province and its people.

MEET SILAS SEBILOANE

Chairperson of the Free State Provincial Management Board

“What brings all of us together as a business is our customers, and they are the centre of

everything that we do and they inform the decisions that we make. Our primary objective in

the Free State and across the group is to collaborate and share our resources, expertise and

wisdom always with our customers’ interests at heart at all times. This approach will always will enable us

to deliver a holistic financial solution ecosystem of financial support and guidance to each and every one

of our customers, and enable us to do great things and enable positive futures.”

We undertake to:

• Build a workable internal relationship across all business units.

• Strengthen our external relationships with key stakeholders by introducing each other in the market.

• Integrate market activities and resources in order to defend our market share and close for competitors.

• Joint stakeholder functions.

• Collaborative community and CSI projects that will represent one Old Mutual in the community.

GET IN TOUCH: FreeStatePMB@oldmutual.com

ombds 4.17.10479.02

INVESTMENTS I SAVINGS I PROTECTION

Old Mutual is a Licensed Financial Services Provider


OUR BEST ADVICE TO YOU IS:

ADVICE MATTERS

As custodians of the savings and

investments of millions of South

Africans, we know that ADVICE

MATTERS when making financial

decisions.

How to choose the right financial adviser

A good financial adviser is a professional who

considers all your financial needs and goals, and has

the knowledge, experience and support to give you

Advice That Matters.

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

accreditation.

2. Choose a financial adviser who represents a

respected financial institution.

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

range of specialist support services.

NEED HELP WITH RETIREMENT AND RISK

COVER OPTIONS FOR YOUR EMPLOYEES?

Old Mutual Corporate provides

industry-leading retirement fund

solutions, pre and post retirement

investments, group death, disability,

critical illness and funeral cover

as well as financial education and

consulting services to a broad range

of public and private businesses and

institutions, from small businesses to

large corporates.

This can also be accessed via Old Mutual SuperFund,

which provides a comprehensive employee benefit

solution that is flexible enough to meet the needs of all

types of businesses and their employees.

NEED A ONE-STOP-SHOP INTEGRATED

FINANCIAL SERVICE?

The Old Mutual Mass Foundation Cluster (MFC) has an

integrated approach to financial services and offers

customers solutions to meet their needs. This spans a

transactional account called the Old Mutual Money

Account, savings products, life and disability cover, as

well as funeral cover, debt management solutions and

short-term insurance. Our aim is to

help our customers manage their

finances and to plan and provide

a better future for themselves and

their loved ones.

NEED DIRECT CAR & HOME INSURANCE?

Old Mutual iWYZE offers affordable and reliable

insurance cover to protect everything you’ve worked for.

The wide range includes car insurance, home

insurance as well as value-added products

such as iWYZE Scratch

& Dent and iWYZE

Tyre & Rim Cover.

iWYZE, the wise

insurance choice.

NEED FUNERAL COVER?

With Old Mutual’s range of

Funeral Plans (Care, Standard and

Comprehensive+) customers can cover

themselves, their spouse/partner,

children, parents, parents-in-law and

extended family members. We also

have a plan for single parents to cover themselves and

their dependent children without having to pay for a

spouse they do not have.

You can choose the amount of cover you need, who

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

additional benefits. You can get funeral cover for up to

R70 000.

NEED HELP WITH SAVING FOR BOTH

LONG AND SHORT TERM?

To make it easy for customers to

save from as little as R170 a month,

Old Mutual offers the innovative

2-IN-ONE SAVINGS PLANS.

This product with its two pockets,

allows customers to save for their long-term goals,

like their children’s tertiary education, while they have

access to their funds in emergencies.


NEED HELP WITH HOLISTIC FINANCIAL

PLANNING AND SAVING?

Old Mutual Personal Finance specialises in providing

holistic financial planning - Advice That Matters. We

offer a wide range of wealth creation and protection

products. For example:

The Old Mutual Invest Tax-Free Savings Plan, which

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

of admin charges when you reach your maximum

premium limit in a year.

NEED LIFE AND DISABILITY

COVER?

Old Mutual Personal Finance marketleading

risk protection range offers

the most comprehensive illness range

with clear claim definitions, including

GREENLIGHT.

NEED TO PROTECT YOUR BUSINESS?

Old Mutual Insure are experts in

agriculture, engineering and marine

insurance. We offer a range of insurance

solutions to protect your business against

everything from fire and theft to business interruption

and legal liability costs.

NEED DEBT CONSOLIDATION AND

TRANSACTIONAL BANKING?

Through Old Mutual Finance you can gain access to:

• My Money Plan, which enables

you to consolidate your debt, and

choose from a range of personal

loans at a fixed interest rate.

• Money Account, which links a

transactional (SWIPE) account and an investment

(SAVE) account so you automatically invest a

set amount into a unit trust every time you make

a purchase with your card. *(In association with

Bidvest Bank Ltd)

NEED HELP WITH INVESTING?

Old Mutual Wealth is a fully integrated, advice-led

wealth management business. We have a personalised

and integrated approach to grow and preserve your

wealth over time. Our specialist capabilities include

Private Client Securities, Old Mutual Multi-Managers,

Fiduciary Services and Offshore Investing.

We partner with leading financial

planners to provide you with a

tailored lifetime wealth plan to help

you achieve the best outcome in

line with your objectives, goals and

aspirations.

NEED A FINANCIAL PARTNER THAT

MAKES A POSITIVE IMPACT ON SOCIETY?

Old Mutual is deeply committed to playing a significant

role in building a strong and financially inclusive South

Africa.

As a responsible business committed to caring for our

communities, the Old Mutual Foundation

addresses socio-economic challenges

through investing in:

• Small business development and

entrepreneurship

• Youth unemployment through skills training

• Strategic education initiatives

• Caring for vulnerable communities

In 2016 alone the Old Mutual Foundation invested

R25 686 172 in various community projects across our

nation (actual grant funding payments made during

2016).

In the Free State the Old Mutual Foundation invested

a total of R486 756 across its various community

empowering portfolios in the region.

Our staff are the hearts and hands of Old Mutual

in the communities we operate in, and we support

our staff volunteers through various programmes.

In the Free State, 14 organisations have received

a total R279 850 as a result of staff volunteering

efforts.

INVESTMENTS I SAVINGS I PROTECTION

ombds 7.2017 L10479.8

Old Mutual is a Licensed Financial Services Provider


OLD MUTUAL FOUNDATION CASE STUDIES

IN THE FREE STATE

The Old Mutual Education Flagship Project (OMEFP) is a national education

initiative started in 2013 to invest R350 million over seven years into underresourced

schools in key provinces such as Ntemoseng High School in

Botshabelo, Free State. The overarching goal of the project is to increase the

number of bachelor passes in maths and science so that more students can

access university education. In partnership with the University of the Free

State, this project was able to increase the scope of mentoring programmes

for school teachers in key subjects. It is interventions such these which have

contributed to Ntemoseng High School becoming one of the top-performing

schools out of 14 schools in Botshabelo.

The MASISIZANE FUND focuses on enterprise

development and job creation to help alleviate poverty

and improve food security in South Africa. This is

achieved through encouraging entrepreneurship and

capacity development and financing of micro, small

and medium enterprises (SMMEs). Preference is given

to SMMEs with 51% plus ownership by women, youth

or people with disabilities.

Masisizane Fund disbursed R147m worth of funds

in 2016 through soft loans in the three high-impact

sectors and facilitated the creation of 862 jobs against

a target of 625 jobs.

In the Free State Masisizane disbursed funds of

R3 649 172 to two clients which created 50 new jobs.

MASISIZANE CASE STUDY IN THE FREE

STATE (CENTRAL REGION: FREE STATE/

GAUTENG/NORTH WEST PROVINCE)

Pick n Pay Spaza Township Economy

Revitalisation Programme

The programme was initiated by the Gauteng

Department of Economic Development (GDED)

following a township revitalisation roadshow that

included a visit by the provincial government and its

partners to 65 townships across Gauteng in 2014.

The five new stores co-funded by Masisizane Fund

(R6 118 733), Old Mutual Foundation (R2 000 000),

and others are expected to create or retain a total of

75 jobs. Once phase one is fully implemented and

proof of concept has been achieved, Pick n Pay is

planning a national rollout. The next phase will target

additional stores in Gauteng and Western Cape.

Masisizane Fund intends to further participate in the

rollout, attracting other partners.

WANT TO HELP BUILD THE PLATFORM FOR

FINANCIAL INCLUSION?

Financial education is the gateway to financial

inclusion. The Old Mutual Financial Wellbeing

programmes promote financial literacy and awareness

across market segments in line with the Financial Sector

Charter. We offer highly effective financial education

and support programmes to help South Africans take

control of their finances.

Between 2007 and end of 2016 more than 589 808

people were reached through face-to-face workshops

held for communities as well as employees in the public

and private sector.

In 2016 more than 88 000 individuals participated in

our On the Money workshops nationally, with 24 674

participating in our Fin360 programmes.

In the Free State 8 969 individuals were trained in

our Old Mutual On the Money financial education

programmes.

For more information, contact Silas Sebiloane

at FreeStatePMB@oldmutual.com


KEY SECTORS

Overview of the main economic

sectors in the Free State

Agriculture 38

Mining 40

Manufacturing 49

Oil and gas 50

Tourism 54

Education and training 56

Banking 57

Development finance and

SMME support 58


OVERVIEW

Agriculture

Record maize harvests are helping the national economy.

SECTOR INSIGHT

Value addition and agriprocessing

are sector priorities.

• The drought cut potato

yields by two thirds.

Agriculture makes up 4% of the Free State’s gross domestic

product but the province’s efficient farming operations

contributed a total of 10% of South Africa’s agricultural

output.

There was great relief in late 2016 and early 2017 when the long

national drought broke in the central and northern areas of the

country. Potato yields in the eastern Free State were reduced below

10 tons per hectare during the worst period, against previous

years where yields of better than 30 tons (and sometimes 45 tons)

were achieved.

So good was the recovery–particularly in the Free State’s great

strength, grains–that agriculture helped push the national economy

into positive growth in the middle of 2017. A record maize crop of

16.4-million tons was good news for exporters and consumers. A

25kg bag of maize meal was 8% cheaper in June 2017 than it was a

year before (Business Times).

The Free State has 32 000km² of cultivated land and a further

87 000km² of grazing land and natural veld. A summer-rainfall region

with a mean annual rainfall of 532mm, the Free State’s climate, soil

types and topography vary greatly within the province, with plains

in the west and mountains in the

east. The western and southern

areas are semi-desert, with some

Karoo vegetation occurring in

the south.

The province supplies significant

proportions of the nation’s

sorghum (53%), sunflowers

(45%), potatoes (33%), groundnuts

(32%), dry beans (26%), wool

(24%) and almost all of its cherries

(90%). Red meat and dairy

are other important products.

Game hunting is a growing sector,

and several large Free State

farms have been converted from

stock to game farms. Crop production

represents about two

thirds of the province’s gross

agricultural income. The main

crops are maize and wheat.

Sunflowers, sunflower seeds, sorghum

and soy beans are other

major crops. The Mangaung

Fresh Produce Market plays a

vital role in the sector, catering

as it does to householders, bulk

buyers, informal traders, agents

and farmers.

FREE STATE BUSINESS 2018

38


The NAMPO Harvest Day held

in Bothaville every year is one of

the biggest agricultural festivals

and exhibitions of its kind in the

world. The annual Farmer Patent

Competition is sponsored by

Grain SA and Omnia, the fertiliser

company.

Bothaville is located in

the Lejweleputswa District

Municipality on the western

boundary of the Free State with

North West. So far west is Bothaville

that Senwes counts it as part of its

North West region. The giant agricultural

company, with its headquarters

in the North West city of

Klerksdorp, has three separate regions

for the rest of the Free State.

The company deals with no less

than 20% of the country’s oilseeds

and grain through its 68 silos.

VKB Agriculture, another of

the province’s large agricultural

companies, has invested heavily

in the Grain Field Chicken abattoir

in Reitz (together with the broiler

houses in Tweeling). The Industrial

Development Corporation (IDC),

which has a 23% stake in the project,

intends to help develop the

Free State as the poultry hub of

South Africa.

VKB’s headquarters are in Reitz

in the north-eastern part of the

province and the group has nine

brands in sectors such as fuel,

grains, animal feed and foods. The

financial division held information

sessions with emerging famers in

2016 to explain how farmers can

benefit from the partnership between

VKB and the Land Bank. VKB

has development programmes

with 51 emerging commercial

farmers in the province and data

on 140 developing farmers.

Agri-processing

OVERVIEW

The Free State Department of Agriculture and Rural Development (DARD)

has highlighted the fact that only 11% of the province’s primary agricultural

production is processed within the province’s boundaries.

In 2017 DARD hosted a summit on “Repositioning the Free State

Province for Agricultural Value Adding and Processing Towards 2030”.

Investors are being encouraged to look at baby vegetables, wholesale

meat production (including poultry) and leather manufacturing.

Key to commercialising these agricultural options is access to finance

and the IDC has been very active in the province in this sphere. There are

hopes that the official launch of the Maluti-A-Phofung Special Economic

Zone will also boost the agri-processing and agri-logistics sectors.

Five agri-parks are planned in each of the Free State’s district municipalities.

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 agri-parks

are intended to provide a network for farmers and manufacturers, and

training will be available.

Clover has three factories in the Free State: Bethlehem (milk powder,

whey mixtures and creamers); Frankfort (butter, the largest such factory

in the country, where ghee and roller dried milk powder is also made)

and in Heilbron (whey, buttermilk, condensed milk and packaging).

The Homsek Group is an integrated dairy-products producer with one

of the biggest Ayreshire herds in the world. Its factories in Bloemfontein

supply Woolworths. The head office of Country Bird Holdings is in

Bloemfontein: its brands are Supreme Chicken, Nutri Feeds and Ross

(breeding). Country Bird Logistics controls 45 chilled and frozen vans.

CONTACT INFO

Department of Agriculture and Rural Development

Physical address: Gielie Joubert Street, Glen, Bloemfontein 9360

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

Website: www.ard.fs.gov.za

ONLINE RESOURCES

Agricultural Research Council: www.arc.agri.za

Free State Department of Agriculture and Rural Development:

www.ard.fs.gov.za

Grain SA: www.grainsa.co.za

National Department of Agriculture, Forestry and Fisheries:

www.daff.gov.za

39 FREE STATE BUSINESS 2018


OVERVIEW

Mining

Diamonds are sparkling in the Free State.

SECTOR INSIGHT

Quality diamonds have been

extracted at Koffiefontein

since 1870.

• Seriti Resources has

bought the New Vaal

Colliery from Anglo

American.

Diamonds, coal and gold are the three main minerals found

in the Free State but the decline of gold mining is a cause

for concern. Several summits and a Mining Indaba have

focussed on what kind of economic activity can replace

gold mining.

The mining sector makes up 11% of provincial GDP and continues

to play a vital role in the economy. A minerals beneficiation strategy

has been developed because this sector is seen as a key area for

potential growth.

Coal is mostly found in the northern part of the Free State and the

gold fields, which form part of the Witwatersrand Basin, stretch from

north of Welkom to south of Virginia.

Petra Diamonds’ Koffiefontein mine is on the western edge of the

province, about 80km from Kimberley. The mine is regarded as a lowgrade

deposit, but the diamonds produced are of high value. White

stones of excellent quality are produced and fancy pink diamonds are

sometimes found. The first mine was found in the area in 1870 and

Petra plans to continue mining until 2025 but there are indications that

mining could go on even beyond that date.

Petra will increase production

at Koffiefontein from 50 500 carats

per annum (ctpa) in 2017 to about

85 000 ctpa in 2019. The mine increased

revenue to $25.7-million

in 2016, an increase of 44%. The

price achieved per carat rose by

10% from 2016, reaching $506

in 2017. Petra has seven mines

in South Africa. The Star mine, in

which Petra (75%) is in partnership

with Sedibeng Mining, is the

other Free State asset.

The Lace Mine near Kroonstad

went into business rescue in

November 2016 after heavy rains

affected operations. In May 2017

owner DiamondCorp put its

listed holding company into administration.

The primary lender

was the Industrial Development

Corporation (IDC).

De Beers’ Voorspoed diamond

mine will have a production capacity

of 800 000 carats per

year when it is fully operational.

During the building phase, about

FREE STATE BUSINESS 2018

40


OVERVIEW

R70-million was generated in the

region, and the company intends

spending R400-million per year

on developing its capacity.

In 2016 De Beers, the South

African government and the

South African diamond-cutting

industry launched a project to

encourage diamond beneficiators.

Among the first companies

involved are Thoko’s Diamonds,

African Diamonds, Nungu

Diamonds and Kwame Diamonds.

Coal

The Sigma-Mooiplas mine is run

by Sasol Mining and supplies

Infrachem in Sasolburg with twomillion

tons of coal per year.

Seriti Resources has purchased

the New Vaal Colliery from Anglo

American. Together with two

other mines in Mpumalanga

Province, Seriti paid R2.3-billion.

New Vaal is in the middle of a triangle

of three towns that play an

important part in industrial production:

Vereeniging, Sasolburg

and Vanderbijlpark. The mine employs

more than 900 people and

supplies about 15-million metric

tons of coal to Eskom’s Lethabo

power station annually.

in the Free State but most of its gold assets are in Gauteng. Reports

in August 2017 suggested that the company was looking to retrench

more than 7 000 workers across several mines.

AngloGold Ashanti’s Vaal River Complex operations are mostly near

the town of Orkney in the North West Province. However, the Great

Noligwa, Kopanang and Moab Khotsong mines are all across the Vaal

River in the Free State. The complex includes one uranium plant, four gold

plants and one sulphuric acid plant. In 2017 two of the company’s gold

mines, including Kopanang in the Free State, were shut down because

getting to the ore body was becoming too expensive and too dangerous.

Village Main Reef runs the Tau Lekoa mine in the same vicinity.

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

Most of Harmony’s operations, including a tailings treatment, are in

the Free State. The mines are Tshipong and Phakisa (near Odendaalsrus),

Virginia, Target (near Allanridge), Masimong (Riebeeckstad), Joel (near

Theunissen) and Bambanani at Welkom. Phakisa has mineral reserves

of just over five-million ounces of gold and Harmony has invested

heavily in the project.

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

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

uranium occurring in the gold-bearing conglomerates of the goldfields

are extracted as a by-product.

Other minerals

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

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

Among the companies running large quarries in the Free State are

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

granite are found at various sites throughout the province. Limestone

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

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

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

Free State is one of only two in the country.

Gold

Sibanye Gold came into existence

as a result of the unbundling of

Gold Fields but it has now been

rebranded as Sibanye Stillwater

because of the purchase of a platinum

and palladium mine in the

US of that name. The company is

responsible for the Beatrix mine

ONLINE RESOURCES

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

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

Mining Qualifications Authority: www.mqa.org.za

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

South African Mining Development Association:

www.samda.co.za

Southern African Institute of Mining and Metallurgy:

www.saimm.co.za

41 FREE STATE BUSINESS 2018


INTERVIEW

Making a lasting impact

Malcom Hendrickse, General Manager of De Beers’ Voorspoed

Mine, notes the importance of a highly trained and competent

workforce.

Malcom Hendrickse

What is the history of Voorspoed Mine?

The history of Voorspoed Mine dates back to 1906. In 1912, the mine

shut down, mainly as a result of the kimberlite ore that was very hard

to mine with the technology of the day. It lay dormant until 2005

when the De Beers board approved an investment of R1.3-billion.

Mining officially began in December 2007, and our very first carat was

produced in June 2008. There was always something special about

the gem quality produced at Voorspoed, and even today, the mine is

renowned for its special stones.

How important is employee training at Voorspoed?

Our people are core to our business, and their safety and personal

development is of paramount importance to us. Our priority is that

every employee goes home safely after every shift, and that’s why we

are proud of our record of no Lost Time Injuries since 1 October 2014. In

addition to safety, we strive to create a competent and highly trained

workforce through our skills training programmes. We had a very young

workforce when we started operating, and we have done a lot in terms

of broadening their scope from a development perspective through

accredited, relevant and transportable qualifications.

BIOGRAPHY

Malcom Hendrickse attained

a BEng Chem degree at the

University of Stellenbosch and

worked for the Anglo American

Gold Division before returning

to De Beers. On secondment to

Debswana he held various positions

at plant manager level.

He has been Ore Processing

Manager (Venetia Mine), Operations

Manager (The Oaks Mine)

and SASSA Business Unit Manager

for De Beers Marine. After

a spell as General Manager of

Kimberley Mine, he took the

same post at Voorspoed Mine

in 2016.

Are there programmes to advance women in the workplace

at the mine?

The number of women at the helm of the load and haul operations

makes us particularly proud of the progress we have made in advancing

women at Voorspoed. The Mining Charter aims to promote women

in the industry, and there’s an active drive at De Beers to support this.

For us, it has not just been a numbers game; we are far exceeding

our targets.

What is the life of the mine?

Our mining right licence expires in 2023; however, based on our cost

operating model, the current life of the mine is 2020.

How has Voorspoed Mine contributed to community

development?

We are proud and passionate about our communities and we always

get involved in projects that make a significant and lasting impact. We

believe that the relationships we have forged with our communities

are contributing positively towards the socio-economic development

of the Free State.

FREE STATE BUSINESS 2018

42


FOCUS

Working together

to prosper

Senior Human Resources Manager Sihle Nkomo ready to

take his test.

Ethical business practice entails caring

for the environment and sustainable

community development. De Beers’

Voorspoed Mine is actively involved in a

wide range of community events, health

drives and educational initiatives. The

mine partners with NGOs, government

departments and charities to work with

communities in improving social conditions

and the lives of community members.

Voorspoed employee Maria Salani signs up for the HIV

awareness campaign.

A stage play to dramatise important points on Global

Safety Day.

Stakeholder engagement meeting at the Town Hall,

September 2017.

Ready for the lecture to begin at Career Youth Day.

Voorspoed Mine teamed up with the SA National Council for

the Blind to raise awareness about the challenges faced by

blind people.

43 FREE STATE BUSINESS 2018


FOCUS

Building a

lasting legacy

Mine community development.

Thumbs up for the new media centre: DBCM CEO Phillip Barton

and Education MEC Tate Makgoe with the Executive Mayors, school

principal, KST trustees and learners of Ntsoanatsatsi Primary.

The De Beers Voorspoed Mine is located within the Fezile Dabi

District Municipality in the northern part of the Free State province.

The nearest big town is Kroonstad.

The mine’s Social and Labour Plans (SLP) are founded on its geographic

location and on building relationships with surrounding

entities such as the local municipalities of Ngwathe and Moqhaka.

As Corporate Affairs Manager Andrew Moremi explains, “Before we

can embark on any mine community development process we have to

consult these two municipalities and consult the integrated development

plans (IDP).” Once the needs of the communities (including the

“labour sending areas”) are investigated, projects are then planned. The

key document for social investment is the SLP, a mandated requirement

for mines.

The latest SLP has been developed to guide social investment for

the five-year period from 2017 to 2021.

Education the cornerstone

A thorough needs analysis was undertaken which resulted in most of

the investment being in the field of education. This was true for the

previous SLP (2012-2016) and for the SLP that will last beyond the closure

of the mine. “The company has taken a deliberate decision,” says

Moremi, “that for empowerment to be really permanent and sustainable

you’ve got to base it on education because that cannot be taken away.

It is a means to an end and not an end in itself. We wanted to act based

on sustainable thinking.”

The Social and Labour Plan

which informed Voorspoed’s mine

community development for the

years 2012 to 2016 had four main

planks:

1. Educational support and upliftment:

Teacher development

and support for mathematics

and science. A financial assistance

programme assists with

tuition at tertiary institutions.

2. Rural schools development

programme: Infrastructure

such as classrooms, media

centres or libraries.

3. Social upliftment programme:

Poverty alleviation

programmes and support for

local NGOs such as creches,

health interventions, soup

kitchens and programmes for

the elderly.

4. Zimele Voorspoed Hub:

Enterprise and supplier development,

which is dealt with

separately in this publication.

In every case, the budget for the

support for these programmes

has been exceeded. An amount

in excess of R30-million was

spent against an original commitment

of R14.2-million. The reason

is simple, says Moremi, the need

was greater than was anticipated.

“When we got to the schools and

discovered the scope of work

required, we realised we needed

FREE STATE BUSINESS 2018

44


FOCUS

to go the extra mile to really

make those schools conducive

for a good learning environment.”

Into the future

The latest SLP builds on the previous

plans, with a continued

focus on education. The projected

budget for the 2015-2017

SLP is R25.3-million.

But the company looks beyond

compliance. Moremi says, “The

underlying message is that you

make sure that you address the

real need. We’re not promising to

overspend but we are driven more

by the need to address the social

impacts that are there.” Phuleng

Primary School is an example of

a legacy project we are targetting

in a labour sending area. Located

in the Maokeng township of

Kroonstad, the 120-year-old school

had classrooms that were found

by structural engineers to be too

poor to repair. Voorspoed Mine

has committed to building new

structures. Technical designs of

the school have been completed

and consultations are under way

with all the affected parties. The

building process is expected to

begin in early 2018.

On 16 November 2017

Voorspoed launched a new media

centre at Ntsoanatsatsi Primary

School which is part of the Free

State School Build Programme.

To assist school pupils,

Voorspoed sponsored a camp in

October. “There was a full week

of tuition support for about 373

students who were from the 12

schools in the district.” The results

for matric pupils in the Free State

have improved dramatically recently, but Moremi is careful to say that

Voorspoed was “part of the success” and acknowledges the role played

by partners such as the Kagiso Shanduka Trust and the Department

of Education. Under the Higher Education and Training Support programme,

17 students were funded in 2017 and students will again

receive support in 2018. This support is offered at the tertiary institution

of the student’s choice, whether a TVET college or a university. Support

for local municipalities for the provision of basic services is also part of

the legacy plan for Voorspoed. This relates to bulk water, electricity and

sanitation. Moremi reflects, “The intention is to give some support to the

two municipalities on basic infrastructure because we’ve realised with

the drought that struck the Free State and these two municipalities in

the past, there were challenges with regard to infrastructure. We want

to really work in partnership with the two municipalities and boost areas

where there’s a need for support, so that will also be carried through

for the next five years.”

Voorspoed Mine community projects scorecard

Project

Free State School Build Programme

Municipal basic services

in fra struc ture support

Mathematics and science teacher

development and Winter School

Parys Day Care Centre for the Aged

Healthcare infrastructure support

programme

Corporate social investment via local

area committees (various)

Higher education and training

sup port programme

Progress

• Ntsoanatsatsi media centre:

complete

• Mahlabatheng refurbishment:

complete

• Phuleng new classrooms: designs

complete

Scoping and costing to be initiated

Implemented, October 2017

Scoping, plans and costing to be initiated

Scoping and costing to be initiated

Projects selected and implementation in

progress

17 students identified, approved and paid

45 FREE STATE BUSINESS 2018


FOCUS

Preparing for success

in business

Enterprise and supplier development.

A

busy and complex mining operation such as Voorspoed needs

a range of suppliers. Whether it involves transporting workers to

and from work, catering or maintenance, there is a great deal of

work to be done that goes beyond the core business of diamond mining.

This presents an opportunity to support and develop the local

economy where the mine operates. But simply making a decision to

use local suppliers is not enough, because the skills needed to do the

work (or run a business efficiently and profitably) may not be there.

This is where an enterprise and supplier development programme

becomes a key element in the plan to support local entrepreneurs

and service providers.

Incubation

The Voorspoed Mine Enterprise and Supplier Development Manager

is Theodor Moeti. He explains the underlying concept as incubation.

“This is where we equip people with business management skills.”

The incubation programme aims to create independent businesses

that are able to go beyond a craftsman using their skills or someone

having a product to sell in a once-off transaction, to becoming thriving

businesses that will last and grow. “All applications were from Fezile Dabi

district and then a shortlist was compiled from those applicants. This

ensures that the successful candidate is also local.”

Other business ideas that have been raised in the Incubation Programme

include agri-processing, bio-diesel manufacturing, compost manufacturing,

landscaping and waste recycling. The key, as Moeti stresses, is

that they should be “stand-alone businesses”, independent of the mine

and mine contracts.

Supplier devopment programme

The company that supplies the specialist training for business management

skills is TrioPlus Development. Eight local companies have

been identified to learn more about business skills such as financial

management, pricing and costing, human resources, marketing, operational

management and entrepreneurial awareness. Also included

are the key skills of management

and leadership.

Moeti notes that the appointed

service provider is responsible for

mentorship. “We appointed TrioPlus

Development to ensure that the

businesses succeed, and they

become sustainable in the long run.

During this mentorship the service

provider addresses and develops and

trains the business owner.”

Important objectives are to make

sure that they render a quality service

to the mine, and that the business

remains sustainable even after the

life of mine.

Not all training is outsourced.

Says Moeti, “Say for instance if we see

that a contractor is taking too long

to replace a bolt, we then get one

of our engineers internally, a mine

employee, to come and train on site.

In this way we also give support.”

A shining star

In 2016 four people wanted to

apply for the plant cleaning and

maintenance contract but they

were not registered as a business.

The Voorspoed enterprise

and supplier development unit

assisted them with business registration

and with an application

to get the capital to buy equipment.

A significant discount was

negotiated on the machinery

FREE STATE BUSINESS 2018

46


FOCUS

and the loan was obtained from mining-related sectors. Local residents are being assisted to prepare

Zimele, the Anglo American for a broader range of employment and business opportunities.

funder of small enterprises.

With funding of R3.2-million,

Blue Motion General Construction

went from strength to strength to


the point that they now employ

26 people. The four-person team

(including one female and two

youths) are now in discussions

rspoed with Mine mentors about how they

might expand their range beyond

the mine.

rporate Affairs One way Publication of stimulating local

September 2017

supplier development is to ensure

that contracts are awarded to local

Members of Mmetlakgola Transport own a share in the company transporting

Voorspoed Mine workers.

suppliers wherever they can offer

the pre-requisite skills.

The transport sector is another

area of opportunity. For example,


Mmetlakgola Transport, a company

formed by 36 members of two


Kroonstad Taxi Associations, owns a

26% share in Multi Transport through


an empowerment deal facilitated


by De Beers for the transportation


of its employees. Anglo Zimele


has recently approved a loan of

R4.2-million to assist Mmetlakgola

Transport to purchase busses. A small


dividend has already been paid by TrioPlus Development provides SMME training.


the venture.


A contract was awarded in 2016


to Lekoa Technologies to run the


mine’s conveyor belt maintenance.


Voorspoed and Dunlop Industrial

have since conducted specialist

training sessions for employees of


Lekoa, where certificates of competence

have been awarded.




Looking ahead


Voorspoed is looking ahead


to the future. Incubators are


no longer focussing purely on De Beers Voorspoed Mine Incubation Support Programme was launched in


June 2017 in Kroonstad with 35 entrepreneurs with potential.

construction and catering and


47 FREE STATE BUSINESS 2018


FOCUS

Broadening horizons

Voorspoed Mine training focuses on widely applicable skill

sets to empower employees.

Work Experience trainees.

Mines, like many other businesses, have a natural life span, which

obviously has implications for the workforce and the wider

community. The important thing is that proper plans are put

in place so that challenges can be met.

Hans Kgasago is leading the Voorspoed mine closure project and in this

project works with the Voorspoed community and workforce as part of

preparing for the future. His focus is to manage the transition, specifically

focusing on environmental rehabilitation and integrated closure plans.

The current Voorspoed mine workforce is 407 employees with 59% of

these being from the local labour sending areas of Ngwathe and Moqhaka

municipalities. Thirty-one percent of the total workforce are women.

Voorspoed has consistently progressed towards the advancement of

women. Human Resources Business Partner, Lungile Zimu, explains that

a programme was started in 2014 to develop women to be ready for

promotion when opportunities become available. The aim was to “start

a programme to create a pipeline of opportunity,” and as a consequence,

women with potential working as operators have risen beyond foreman

roles to being shift-bosses.

But while the advancement of women has been a focus area, this has

not been at the exclusion of other initiatives to advance the workforce

generally, and to enable those with potential to advance. In keeping with

the strategy for securing the future, Voorspoed’s bursary programme is

expanding beyond the technical fields such as engineering or metallurgy.

“We want to focus on diversifying to create a positive legacy,” says Ms Zimu.

For a young person without experience, getting a job is a challenge.

Even applying for job can be a daunting prospect.

Understanding this, the department hosted a job entry and work

conduct workshop for the community, especially youth, in September 2017,

and a group of 17 Work Experience graduates are currently gaining work

experience at Voorspoed. In some cases, this is necessary for converting

their qualifications into a national diploma

Portable skills

Valuable skills are those that can

be applied to more than one

kind of industry, and “portable

skills” forms a key component of

Voorspoed’s planning for the future.

As Johnny Deyzel, HR Practitioner,

explains, “De Beers aims to facilitate

training skills to enable employees

to meaningfully compete for

opportunities post Voorspoed

Mine. All our skills programmes

and learnerships are geared so

that all the operators have a skill

that they can apply somewhere

else.” After a consultative process

involving organised labour, 10 of

the most transferrable skills were

prioritised for 2017, and Voorspoed

is ensuring that these skills are

receiving the appropriate focus in

its training programmes. In addition,

a programme to offer skills training

to community members has been

included in Voorspoed Mine’s most

recent Social and Labour Plan.

Informed by the Social Impact

Assessment conducted in 2016,

community development needs

were included in the SLP. Three areas

of training that were identified as

being particularly important were

plumbing, welding and water

treatment. In addition to offering

artisan training. Voorspoed Mine

has together with the Department

of Labour identified 15 local women

as deserving candidates and they

currently attend courses in these

key disciplines.

FREE STATE BUSINESS 2018

48


Manufacturing

Regional industrial policy aims to attract investors.

OVERVIEW

Manufacturing makes up 9% of Free State gross domestic

product, and this comprises 4% of South Africa’s total. The

Free State Regional Industrialisation Policy is being reviewed

to ensure integration of infrastructure, bulk service provision,

industrial sites and export and tax incentives to attract investment.

The Industrial Park in Botshabelo was relaunched in June 2016. This

R60-million project, part of a scheme to revitalise industrial parks in the

province, hosts 12 manufacturing companies. A Risk Sharing Funding and

Black Industrialist Scheme supports black industrialists.

Innovation in manufacturing is encouraged at the Product Development

Technology Station (PDTS) at the Central University of Technology (CUT).

The PDTS helps small businesses with the technology to design

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

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

partnership with another CUT unit, the Centre for Rapid Prototyping

and Manufacturing (CRPM).

Tax and other incentives are attracting manufacturers to the province’s

Special Economic Zone (SEZ), the 1 000ha Maluti-a-Phofung SEZ

at Harrismith on the N3. Companies from China, Bulgaria and India have

expressed interest. Among the projects in the pipeline are a factory

making transformers and one to make medical equipment.

The existing manufacturing sector has capacity in many sectors including

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

furniture and jewellery.

CONTACT INFO

Department of Economic, Small Business Development,

Tourism and Environmental Affairs

MEC: Dr Benny Malakoane

Postal address: Private Bag X20801, Bloemfontein 9300

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

Website: www.edtea.fs.gov.za

ONLINE RESOURCES

Free State Development Corporation: www.fdc.co.za

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

The Manufacturing Circle: www.manufacturingcircle.co.za

SECTOR INSIGHT

The Industrial Park in

Botshabelo has been

relaunched.

Harrismith is home to Nouwens

Carpets and Boxmore Plastics.

Boxmore Packaging’s new PET

beer bottles are the first PET bottles

specifically designed for beer

on the SA market. Empire Gloves

makes industrial gloves. Kroonstadbased

Octa Engineering makes

specialised rail carriages for the

mining sector. In Bloemfontein,

Transnet Engineering manufactures

new wagons for the Transnet

group, including iron ore and

cement wagons and fuel tankers.

The Industrial Development

Corporation is supporting the

clothing and textile industry with

loans and investments. The towns

of Botshabelo, QwaQwa and Thaba

Nchu have factories employing

several thousand people.

Nearly 20% of the Free State’s

manufacturing sites are devoted

to food and beverages. Landzicht

Wine Cellar, an operation that distributes

2.4-million litres of wine

every year from Jacobsdal, has a

new bottling plant.

Chemicals are a major sector

within the Free State manufacturing

basket. Sasol, Omnia and AECI

are the major companies.

49 FREE STATE BUSINESS 2018


OVERVIEW

Oil and gas

Free State gas fields could feed new power stations.

SECTOR INSIGHT

Sasol has converted its

Sasolburg operations from

coal to gas.

• Afrox is building a helium

plant.

A

new national focus on gas as a fuel to supply energy will

benefit the Free State. Sasol’s Sasolburg operations in the

northern part of the Free State are a key national asset in

the gas sector and there are early signs that there are large

gas fields in the province.

Natural gas is an inexpensive alternative to coal. Although the coal is

still powering most power stations in South Africa, it is a finite resource.

Petroleum Agency SA is the state agency responsible for promoting

and regulating exploration and production of oil and gas in the country.

Data suggests that the Free State has 23-billion cubic feet of gas

underground but only exploration can confirm this. If the gas is found

in large quantities, then up to four new power stations could be built

in the province.

Four applications for gas exploration in the Free State have recently

been made. The two from Rhino Oil and Gas Exploration South Africa

are part of a series of applications that the British Virgin Islands-based

company has made across three

provinces, “most of which”, according

to the Mail & Guardian,

have been granted. Rhino’s two

Free State applications cover

2.8-million hectares. The other

two are from Motuane Energy

in the Lejweleputswa District

Municipality (between Virginia and

Senekal) and Sungu Sungu Gas in

the Thabo Mofutsanyana District

Municipality (south of Memel).

Both applications have been opposed

by farmers: Sungu Sungu

withdrew its application before a

High Court hearing in November

2016.

Sasol is doing its own conversions

at its plants. 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.

A major investment by Afrox

(a member of the Linde group)

will see a R200-million plant built

to extract helium near Virginia.

Renewable energy company

FREE STATE BUSINESS 2018

50


OVERVIEW

Renergen owns the right to the

natural gas and helium field

around Virginia (which has proven

reserves of 25-billion cubic feet).

Afrox will operate the plant and sell

the helium. Bus companies will buy

another product which the plant

will supply, compressed natural

gas. This is a cheaper alternative

than diesel.

Renergen’s natural gas subsidiary,

Tetra4, has secured a R218-

million loan from the Industrial

Development Corporation to

build a 107km pipeline network

from Virginia.

Afrox operates a CO2 liquefier

at Sasolburg which supplys the

bottling and hospitality markets,

where demand is strong.

Alternatives

An energy-from-methane power

plant now running at the Beatrix

gold mine neatly encapsulates

a shift from the old economy to

the new. Although the Sibanyeowned

gold mine still has significant

reserves of the mineral, it is

the shift to this new technology

that is sparking interest and showing

the way to creative energy

solutions.

Sibanye’s predecessor as owner

of the mine, Gold Fields, was the

first gold miner to sell certified

emissions reductions (carbon

trading units) and now the mine

is producing 2MW of power

for the mine’s operations. The

Beatrix Project was registered as a

methane-gas-capture project with

the United Nations Framework

Convention on Climate Change

(UNFCCC). Aggreko, a company

that specialises in providing temporary power, is running the operation in

partnership with Sibanye. During the 2010 FIFA World Cup in South Africa,

Aggreko supplied 253 generators to stadiums and broadcast centres.

Oil

The Natref fuel refinery is one of only four in South Africa, and the

country’s only inland refinery. It is strategically placed at Sasolburg near

to the industrial hub of southern Gauteng. The petrochemical complex

at Sasolburg is a major national asset. Among the many chemical, oil

and gas companies operating out of Sasolburg are several companies

within the Sasol group.

One of these, Sasol New Energy, has been working on moving the

group away from reliance on fossil fuels. The resulting savings will improve

Sasol’s profit margins, reduce carbon dioxide emissions and take pressure

off the national electricity grid.

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. Between 60% and 70% of

petroleum is distributed by pipeline, 20% to 25% by road and 5% by rail.

The products sold by Sasol Oil include both lead replacement and

unleaded petrol, Sasol turbodiesel, a range of lubricants, industrial fuel

oils, illuminating paraffin and liquid petroleum gas, in addition to marine

diesel oil and bitumen.

CONTACT INFO

Department of Economic, Small Business Development,

Tourism and Environmental Affairs

Physical address: Bojanala Building, 34 Markgraaff Street,

Bloemfontein 9300

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

Website: www.edtea.fs.gov.za

ONLINE RESOURCES

Liquefied Petroleum Gas Association of Southern Africa:

www.lpgas.co.za

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

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

Petroleum Agency SA: www.petroleumagencysa.com

South African Oil and Gas Alliance: www.saoga.org.za

Transnet Pipelines: www.transnet.net

51 FREE STATE BUSINESS 2018


Sasol supports access to

health care in the Free State

Blood pressure testing formed part of the range of tests done during

Phase 2 of the Sasol HIV/Aids and TB support programme. Community

members also had access to HIV, TB, STI and blood glucose testing.

Sasol recognises that we have an important

role to play in socio-economic development,

particularly in the communities in which we

operate.

Our social investment programmes focus

on Education and Skills Development,

mainly Science, Technology, Engineering

and Mathematics education and vocational

skills development. Entrepreneurship

training aimed at youth, Small Business

Development and Environment is also a

focus area. In addition we concentrate on

Community Development which comprises

mainly programmes to enable access to

healthcare and well-being, collaborating to

improve the delivery of municipal services.

As it is a key focus to bring healthcare

closer to our communities, we invest in

preventative and corrective programmes to

enhance the well-being of the members of

our communities.

In partnership with the Free State

Department of Health we upgraded and

expanded three clinics in Zamdela and

provided four fully equipped mobile clinics.

These support the Department of Health’s

‘back to care’ strategy of providing homebased

care services to rural areas that

are far from local community clinics. The

four mobile clinics treat more than 35 000

patients per year.

In addition, Sasol recently built the new

Sasolburg Clinic that will contribute

immensely towards four strategic

outcomes in respect of the right of access

to healthcare articulated by the Free State


The new Sasolburg Clinic built by Sasol opened

its doors in April 2017 to serve more than

16 000 people in Metsimaholo.

Premier during the 2017 SOPA. The new

Sasolburg Clinic serves a catchment area of

over 16 000 people.

Sasol also successfully conducted the

second phase of the Sasol HIV/Aids and TB

Support Programme in cooperation with the

Free State Department of Health and a local

NGO during 2017. The programme, aligned

with the new National Strategic Plan on HIV,

TB and STIs, placed testing villages in the

Fezile Dabi District. Towns such as Zamdela,

Deneysville, Oranjeville, Parys, Tumahole,

Koppies, Villiers, Frankfort, Tweeling,

Kroonstad and Viljoenskroon were visited.

More than 200 community health workers

conducted testing and screening at the

villages, while also going from door-to-door

in the community. During both phases more

than 73 000 people were tested.

Over 3 800 of the people tested were

referred for TB treatment while about

4 000 of the patients were referred for HIV

treatment. Testing for sexually transmitted

infections (STIs) was introduced for the

first time during Phase 2. As part of the

service, patients also had access to blood

pressure and blood glucose testing while

also distributing 830 300 condoms in the

communities.


OVERVIEW

Tourism

The game industry is set to boost the wider tourism sector.

SECTOR INSIGHT

The Phillip Saunders Resort

in Bloemfontein is to become

a hotel school.

• A biodiversity corridor

will bring benefits to a

Qwaqwa community.

Tourism is one of the Free State’s fastest-growing economic sectors,

with leisure and business tourism enjoying the best growth

within the industry.

The Free State Department of Economic, Small Business

Development, Tourism and Environmental Affairs believes that the

R7.7-billion game industry sector could grow even further across three

subsectors, namely:

• auctions and translocations

• game ranching and eco-tourism (including hiking trails, bird watching,

photographic safaris, 4x4 trails, canoeing, abseiling, lodges

and conferences)

• a combination of lodges, game breeding, eco-tourism and hunting.

In support of this trend, new protected areas are being proclaimed

in areas where tourism can bring employment and economic growth.

There are ambitious plans to create a biodiversity corridor between

the Golden Gate Highlands National Park, the Royal Natal National Park

and the Sterkfontein Nature Reserve which will involve the Qwaqwa

community living at the base of the Drakensberg mountains. Near

Memel, the Sneeuwberg Protected Environment, a multi-owner private

initiative, has added 17 500ha to the province’s protected asset base.

When the Ingula Nature Reserve is declared in 2017, another 8 000ha

will be added.

Existing special schools within the province are to become designated

vocational schools, with at least one of these schools specialising

in hospitality. The Phillip Saunders Resort in Bloemfontein is to become

a hotel school. The annual National Tourism Careers Expo is held in

Mangaung and attracts 10 000

participants over three days.

The Free State is putting a focus

on culture. A Heroes’ Park is

to be constructed at Thaba Nchu

and Tumahole with statues of

Oliver Tambo and Fidel Castro.

The Mangaung African Cultural

Festival (Macufe) has become a

national and international event.

Offerings range from music and

craft stalls to poetry, film and

theatre, a soccer tournament and

boxing matches.

South Africa’s largest hotel

groups have several brands

that cater to different markets.

In the Free State, Protea Hotels

has five properties: Protea

Hotel Bloemfontein by Marriott

and Protea Hotel Willow Lake

(both four-star), Protea Hotel

Bloemfontein Central (threestar),

Protea Hotel Montrose

(Harrismith) and Protea Hotel

Clarens.

The four-star Southern Sun

Bloemfontein, part of the Tsogo

Sun group, has 147 rooms, and

the Goldfields Casino in Welkom is

FREE STATE BUSINESS 2018

54


OVERVIEW

another Tsogo Sun property. The

City Lodge Bloemfontein boasts

151 rooms, and there is a Road

Lodge at the airport.

The Rantsoareng Group operates

exclusively in the Free State

and has three properties, the

biggest of which is the President

Hotel in Bloemfontein.

Sun International runs the

Lesotho Sun and the Maseru

Sun in neighbouring Lesotho.

In Bloemfontein, the Windmill

Casino and Entertainment Centre

offers slot machines and gaming

tables, plus the ability to host conferences

for up to 250 delegates.

The four-star Willow Lodge has

80 rooms. The Naledi Sun Hotel

and Casino is about 65km from

Bloemfontein.

Forever Resorts has a popular

resort with chalet accommodation

and a caravan park on

the banks of the Gariep Dam.

Overlooking the dam is the

43-room de Stijl Gariep Hotel

which has wedding and

conference facilities.

Routes

Each of the province’s district

municipalities has its own

tourism brand or route:

Cheetah Route (Mangaung

Metro and surrounds):

Bloemfontein has a host of historical

and cultural sites, including

the Naval Hill Precinct (home

to the Digital Planetarium), the

Anglo-Boer War Museum, the

National Museum (which has

the Florisbad skull), the Choet

Visser Rugby Museum, the SA

Armour Museum and the Fire

Station Museum. Nearby Thaba Nchu is where the great statesman

Moshoeshoe held court in the second half of the 19th century, and

created a nation against the odds.

Springbok Route (Xhariep District): Travellers can start their journey

at a diamond mine, visit a wine farm and finish on the top of the

Gariep Dam. Several Anglo-Boer War battles sites and superb San rock

engravings can be found dotted around the district.

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

expos in the world takes place at Bothaville. Phakisa race

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

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

regional economy. The district has several game farms, game reserves

and resorts.

Lion Route (Fezile Dabi District): The banks of the Vaal River provide

for boating, yachting and camping. Parys is a popular destination and

Deneysville has a crocodile farm. Cape wines can be tasted on the

Riemland Wine Route. The Vredefort Dome, site of a meteorite strike

in the distant past, is a World Heritage Site.

Eagle Route (Thabo Mofutsanyane District): This route encompasses

the Golden Gate Highlands National Park and Resort. Ficksburg has

claims to be the world’s Cherry Capital and nearby Clarens is very

popular with weekenders looking for art in a rustic village atmosphere.

Bethlehem hosts an annual Bethlehem Air Show and the Maize Fair

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

Cultural Village and access to the Vulture Restaurant and Witsieshoek

Mountain Resort.

CONTACT INFO

Department of Economic, Small Business Development,

Tourism and Environmental Affairs

MEC: Dr Benny Malakoane

Physical address: Bojanala Building, 34 Markgraaff Street,

Bloemfontein 9300

Postal address: Private Bag X20801, Bloemfontein 9300

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

Website: www.edtea.fs.gov.za

ONLINE RESOURCES

Free State Gambling and Liquor Authority: www.gla.fs.gov.za

Free State Tourism: www.freestatetourism.org

South African National Parks: www.sanparks.org

South African Tourism: www.southafrica.net

South African Tourism Services Association: www.satsa.com

55 FREE STATE BUSINESS 2018


OVERVIEW

Education and training

Free State students are learning advanced skills in China and Turkey.

The Free State

Provincial

Government is

implementing

South Africa’s largest

global skills development

programme in

support of implementation

of the National Development Plan (NDP). The Free State Premier,

Dr Ace Magashule, strongly supports the free overseas training programme,

with about 905 students studying in leading universities in

China, India, Germany, Portugal, Russia, Turkey and Belarus.

Fields of study range from all kinds of engineering, to computer

science, medicine and pharmacy. India is hosting 32 students in the

health sciences sector. Germany is hosting 68 students in sustainable

mining and remediation, computer engineering, international trade

economics, electrical and chemical engineering, molecular biology

and genetics, and civil engineering. Belarus has 17 students in the

field of informatics, applied chemistry and radio electronics. Turkey

hosts 206 students.

Russia is hosting 230 students in the fields of medicine, agri-processing,

veterinary medicine, agronomy and agriculture. Portugal is

hosting 119 students in tourism and hospitality management, civil

engineering, medicine, veterinary science, agronomy and aeronautics,

and 17 students are doing internships in information technology

at Acin IT in Portugal. Upon completion, these Free State graduates

will be part of shaping the future of the Free State and South Africa.

Domestically, there are 8 232 students at tertiary institutions on

provincial bursaries.

A new focus on very young children has seen 846 educators

given advanced training in Early Childhood Development. A total of

47 200 children were on ECD programmes in 2017/18. Grade R access

is also being improved, with an additional 80 public schools due

ONLINE RESOURCES

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

National Department of Higher Education and Training:

www.dhet.ac.za

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

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

SECTOR INSIGHT

There are 8 000 provincial

government bursaries.

to receive this class in 2017/18.

A Science, Technology,

Engineering and Mathematics

Academy (STEM Academy) is

a joint undertaking of the Free

State Department of Education

and the Central University of

Technology. A pilot project at

Qelo School, Botshabelo, is testing

the idea of specialist skills

schools.

Matriculants from these

schools will be better prepared

to attend one the province’s

four Technical and Vocational

Education and Training (TVET)

Colleges. The Free State has just

over 14 000 students at four TVET

colleges, taught by 400 lecturers.

The colleges have multiple

sites. Maluti TVET College in

Phuthaditjhaba, for example,

offers classes at seven sites.

Flavius Mareka TVET College

has Kroonstad and Sasolburg

venues. Motheo TVET College

operates in Bloemfontein and

Thaba Nchu, while Goldfields

TVET College is in Welkom.

High-quality research is conducted

at the University of the

Free State (UFS) and the Central

University of Technology (CUT).

UFS caters for 17 500 students at

two sites and a further 3 000 who

study by correspondence.

FREE STATE BUSINESS 2018

56


Banking and financial services

Many agricultural companies are active in financial services.

OVERVIEW

South Africa will soon have several new banks. Companies in

the agricultural sector are also increasing their stake in finance.

No fewer than three new banks are set to make their debuts

on the South African market. Life insurer MMI Holdings is also

entering a partnership with African Bank to enable it to start taking deposits

and loaning money.

Agricultural company Afgri, which has a strong presence in the Free

State, has bought the South African Bank of Athens from the National Bank

of Greece Group. The deal is subject to regulatory approval. With its own

banking licence, Afgri will not have to continue to rely on a partnership

with the Land Bank to offer loans and insurance through Unigro. Afgri’s

GroCapital Financial Service offers futures trading contracts and the two

divisions collectively manage a R12-billion debtors book.

All of the planned new banks come from state enterprises: Ithala,

Postbank and a Human Settlements Development Bank. The Ithala

Development Finance Corporation is an enterprise funder in KwaZulu-

Natal that has applied for a banking licence.

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

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

company formed, the Reserve Bank is likely to grant the full licence. The current

Postbank focusses on taking deposits and savings accounts. Postbank

has secured a R3.7-billion loan to enable it to open its own loan book.

CONTACT INFO

Provincial Treasury

MEC: Ms Elzabe Rockman

Physical address: 55 Elizabeth Street, Fidel Castro Building,

Bloemfontein 9300

Tel: +27 51 403 4141 | Fax: +27 51 403 3244

Website: www.treasury.fs.gov.za

ONLINE RESOURCES

Auditor-General South Africa: www.agsa.co.za

Financial Services Board: www.fsb.co.za

Insurance South Africa: www.insurance.za.org

Post Bank: www.postbank.co.za

South African Insurance Association: www.saia.co.za

SECTOR INSIGHT

Afgri has bought the Bank of

Athens (South Africa).

Three state entities are merging

to create the new Human

Settlements Development Bank:

the National Housing Finance

Corporation, the Housing Loan

Fund and the National Urban

Reconstruction and Housing

Agency. The focus will be on financing

housing for poorer households

and for large state-funded housing

projects.

For many decades, South Africa

had a retail banking Big Four –

Standard Bank, Nedbank, Absa/

Barclays and First National Bank.

In recent years Capitec Bank has

joined them as a major player in

the retail market. The big banks all

have agricultural specialists in the

province and dedicated units such

as Nedbank Agribusiness.

Senwes is another big agricultural

company active in the province,

although its headquarters are

in Klerksdorp, North West. In 2017

Senwes and its holding company

Senwesbel became the first new

stocks to be listed on the country’s

new stock exchange, the ZAR X.

CertiSure is a joint venture between

NWK and Senwes that offers shortterm

insurance, crop insurance, financial

planning, medical funds and funeral

policies. Reitz-based VKB offers

loans and insurance products.

57 FREE STATE BUSINESS 2018


OVERVIEW

Development finance and

SMME support

A business park in Sasolburg is supporting black industrialists.

A

172ha business park in Sasolburg designed to incubate

black industrialists is a joint venture between the National

Department of Trade and Industry (dti) and Sasol. There are

five buildings on the site, training is provided and companies

have access to the supply chains of Sasol’s many companies.

The dti’s Enterprise Investment Programme (EIP) is successfully supporting

Extractive Technologies, a company in the electro-technical

sector. This is a focus area of national policy and the targeted company

used its grant to create additional employment for youth in the

Sasolburg area.

The Free State Provincial Government spent R1.2-billion on SMMEs

through its state procurement programme in the 2016/17 financial

year up to the end of December 2016. The Department of Economic,

Small Business Development, Tourism and Environmental Affairs is

prioritising support to SMMEs. Programmes include: giving assets to

manufacturing micro-enterprises that show the potential to employ five

or more people; assisting with the rent payments of 35 SMMEs at the

container park in Bloemfontein; rolling out the Mangaung SMME hub;

offering accredited skills training for six months in three main sectors,

automotive, manufacturing, and agri-processing sectors.

Mospak Trading and Projects Primary Co-Operative is a recent national

winner of the manufacturing category of the Eskom Business

Investment Competition (BIC).

The National Department of Small Business Development (DSBD) has

several programmes to assist SMMEs and co-operatives. These include:

CONTACT INFO

Department of Economic, Small Business Development,

Tourism and Environmental Affairs

MEC: Dr Benny Malakoane

Physical address: Bojanala Building, 34 Markgraaff Street,

Bloemfontein 9300

Postal address: Private Bag X20801, Bloemfontein 9300

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

Website: www.edtea.fs.gov.za

SECTOR INSIGHT

A Phuthaditjhaba co-operative

is a national winner.

• The Black Business Supplier

Development Programme, a

cost-sharing grant to promote

competitiveness

• The Co-operative Incentive

Scheme, a 100% grant.

The Small Enterprise

Development Agency (Seda) is a

subsidiary of the DSDB and supports

entrepreneurs. Seda focusses

on training and administrative

support, although the agency will

help SMMEs get in touch with

financial bodies.

The National Gazelles is a national

SMME accelerator jointly

funded by Seda and the DSBD.

The aim is to identify and support

SMMEs with growth potential

across priority sectors aligned with

the National Development Plan.

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 agriprocessing

are among the sectors

targeted by the Masisizane Fund

for loan financing.

FREE STATE BUSINESS 2018

58


Bringing services

to the people

The Free State Development Corporation is bringing services

closer to the people through its strategic partnership programme.

FOCUS

CIPC Commissioner Adv Rory Voller (left) and FDC CEO Ikhraam Osman (right)

at the SST official launch at Rent-A-Desk.

The strategic partnership between FDC (Free State Development

Corporation) and CIPC (Companies & Intellectual

Property Commission) brings relief to SMMEs (small, medium

and micro-enterprises) by bringing services to their doorstep.

The CEO of FDC, Ikhraam Osman, and CIPC Commissioner,

advocate Rory Voller, launched an Electronic Self Service Terminal

(SST) at Rent-A-Desk on 2 June 2017. This initiative assists aspirant

Free State entrepreneurs and SMMEs as they are now able to

register their companies with CIPC at a minimal cost of R175. In

addition to cutting the transport cost of having to travel to Pretoria for

registering their business, they receive their registration certificate

within two days after registering.

According to CIPC, the facility is a government response to meet

the needs of emerging businesspeople by bringing services at low

cost to their doorstep.

FDC CEO Ikhraam Osman indicated that Rent-A-Desk is a

co-working space of affordable shared services that provides

SMMEs and other businesses an opportunity for collaboration

and networking, secure parking facilities, boardroom, full reception

services and high-speed Internet. Other advantages include

housekeeping services, access to a fully equipped kitchen, printing

and email facilities.

Botshabelo Industrial Area

In November 2017, the Free State Premier, Ace Magashule, and

his delegation conducted site visits to Botshabelo Industrial

Area to assess the state of development of manufacturing en-

trepreneurs. Companies visited

included CMT operators,

tyre manufacturers, roofsheet

manufacturing, LSF frames,

trusses and hall panel manufacturers,

PVC ceiling manufacturers

and suppliers, household

electric goods manufacturers

and broiler producers.

The purpose of the visit

was to assess for himself the

state of the development of

manufacturing entrepreneurs

and the conditions under

which they operate. This was

intended to ensure that government

enterprise development

support programmes

respond to specific needs of

manufacturers such as ensuring

that provincial government

and municipalities source from

local manufacturers to help to

sustain their business and

generate much-needed jobs.

The FDC and DESTEA

(Department of Economics,

Small Business, Tourism and

Environmental Affairs) were

directed by the Premier to

implement targeted market

access and product development

interventions to enable

the Botshabelo SMMEs to

grow their business and facilitate

access for them to the

incentives that are available

for their business expansion

projects.

59 FREE STATE BUSINESS 2018


INTERVIEW

The Black Management

Forum Free State

Kaiser Khoza, Provincial Chairperson of Free State BMF,

outlines the goals of the organisation.

Kaiser Khoza

Please outline the main objectives of the Black Management

Forum.

The BMF advocates for excellence in Managerial Leadership. It is a champion

for socio-economic transformation as an enabler for equity. The

BBBEE Act must be implemented by government and corporate SA.

What is your current focus?

Our focus is still on transformation. We have issued the Transformation

Barometer and are now engaged in the Transformation Master Plan. We

are looking at the regulatory environment and are teasing out aspects

that have resulted in a slow pace of transformation. We are looking at

strengthening Employment Equity as most companies do not comply.

BIOGRAPHY

Kaiser Khoza has been an admitted

attorney since 2001,

having graduated from the

University of Durban-Westville.

He has worked as a state attorney,

in the national Department

of Higher Education, the

Presidency and several Free

State provincial government

departments. He has served

as secretary of the Black Lawyers

Association, Free State,

Deputy Chair of the State Litigation

Management Forum,

a member of the Information

Officers Forum and is a member

of SASREA Appeal Board and

a trustee of the Lebone Trust.

What are some of the most recent achievements of the

Free State BMF?

We partnered with the ILO on SME research and other programmes

in the Free State. We have entered into MoUs with the UFS Business

School and PwC for training and development. We have partnered with

a number of corporates regarding placing graduates and community

development programmes.

Does the BMF work with other organisations?

We work closely with all stakeholders; our role in the N3 De Beers Pass

is a case in point, as it was a serious threat to economic stability of the

Free State. The recently launched Maluti-A-Phofung SEZ was threatened

by the De Beers Pass and our work with labour, government and civil

society saw us achieving great milestones.

What issues lie ahead?

We remain concerned about the slow pace of transformation. Most

black SMEs rely on government work to survive. We need to work with

corporates on their enterprise development initiatives and ensure that

the rand rotates around the Free State. We are part of the Buy Black

Business Day Movement which encourages black people to buy from

and amongst each other.

FREE STATE BUSINESS 2018

60


Mangaung Chamber of

Commerce and Industry

PROFILE

The voice of business in the Free State.

The Chamber seeks to be the voice of business in

Mangaung and to assist in promoting economic

development and investment in the province.

In these endeavours the MCCI won the PMI Africa

award for the organisation doing the most for

business development as well as triple BEE in

the province.

The new Chamber of Commerce and Industry was

constituted in 2003. In 2013 we reregistered as the

Mangaung Chamber of Commerce and Industry

in order to include the whole metropole.

Although the MCCI is the oldest business chamber

in the Free State, in 2017 we strongly believe

that we have the progressive outlook befitting

a chamber complying with the modern-day

requirements of the business world. MMCI have

won the Africa PMR Awards for the last 3 years.

Objectives

• Entrepreneurs are the engines of communitywide

economic development. The MCCI is

creating a sufficient number of entrepreneurs

to transform this region’s economy.

• We serve our members and the community

with innovative approaches to establish a

vibrant business network that will promote all

levels and stages of businesses.

• Signing and implementing MOU’s with

stakeholders that can make a difference.

• To give practical credibility to the term “Local

Economic Development” not only in Mangaung,

but in other areas in the Free State as well.

• To promote and support local businesses through

specific interventions like the “Member-support-

Member” campaign.

• To promote triple BEE by, among other initiatives,

linking big and small businesses through

the chamber’s network.

• To do advocacy on behalf of our members so that

we can influence and monitor relevant authorities

and role-players.

• To promote the development of the city and

surrounds as a destination of choice for tourists.

• To become a strategic vehicle for the participation

of member businesses in social responsibility

programmes.

• To promote and support initiatives aimed at

renewable and alternative energy sources.

Benefits for members

• Innovative networking events and opportunities

• SMME development and support centre

• Import and export support centre

• Seminars, training, workshops and business

mentoring

• Advertising opportunities for our members

• Lobbying municipalities, local and provincial

government

CONTACT INFO

Mangaung Chamber of Commerce

and Industry

Tel: +27 51 522 1710

Email: President@bcci.co.za

Website: www.mcci.co.za

61 FREE STATE BUSINESS 2018


LISTING

Free State Provincial Government

A guide to Free State’s provincial government departments.

Visit: www.freestateonline.fs.gov.za

Office of the Premier

Premier: Mr Ace Magashule

4th Floor, OR Tambo Building, Cnr St Andrews and Markgraaff Streets,

Bloemfontein 9300

Tel: +27 51 405 5799

Fax: +27 51 405 4803

Website: www.premier.fs.gov.za

Department of Agriculture and Rural

Development

MEC: Mr Motete Daniel Khoabane

Main Building, Gielie Joubert Street, Glen, Bloemfontein 9360

Tel: +27 51 861 8401

Fax: +27 51 861 8578 / 086 723 8206

Website: www.ard.fs.gov.za

Department of Cooperative Governance

and Traditional Affairs

MEC: Mrs Sefora Ntombela

7th Floor, Lebohang Building, Cnr St Andrews and Markgraaff Streets,

Bloemfontein 9301

Tel: +27 51 403 3224

Website: www.cogta.fs.gov.za

Department of Economic, Small Business

Development, Tourism and

Environmental Affairs

MEC: Dr Benny Malakoane

Bojanala Building, 34 Markgraaff Street, Bloemfontein 9300

Tel: +27 86 110 2185 | Fax: +27 51 400 9593

Website: www.edtea.fs.gov.za

Department of Education

MEC: Mr Pule Makgoe

Free State Provincial Government Building, 55 Elizabeth Street,

Bloemfontein 9300

Tel: +27 51 404 8411 | Fax: +27 51 404 8269

Website: www.education.fs.gov.za

Department of Health

MEC: Mr Butana Komphela

Cnr Harvey and Charlotte Maxeke Streets, Bloemfontein 9300

Tel: +27 51 408 1677 | Fax: +27 51 408 1107

Website: www.fshealth.gov.za

Department of Human Settlements

MEC: Mrs Sefora Ntombela

7th Floor, Lebohang Building, Cnr Markgraaff and St Andrews Streets,

Bloemfontein 9300

Tel: + 27 51 405 3883 | Fax: + 27 51 403 3699

Web: www.humansettlements.fs.gov.za

Department of Police, Roads and Transport

MEC: Mr Sam Mashinini

4th Floor, Perm Building, 45 Charlotte Maxeke Street, Bloemfontein 9301

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

Website: www.policeroadstransport.fs.gov.za

Department of Public Works and Infrastructure

MEC: Ms Dora Kotzee

Cnr Markgraaff and St Andrews Streets, Bloemfontein 9301

Tel: +27 51 405 4692 | Fax: +27 51 405 4490

Website: www.publicworks.fs.gov.za

Department of Social Development

MEC: Ms Limakatso Mahasa

Civilia Building, 14 Elizabeth Street, Bloemfontein 9300

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

Website: www.socdev.fs.gov.za

Department of Sports, Arts,

Culture and Recreation

MEC: Mrs NS Leeto

4th Floor, Business Partners Building, Cnr Henry and Eastburger Streets,

Bloemfontein 9300

Tel: +27 51 410 4727 | Fax: +27 51 410 4758

Website: www.fssacr.gov.za

FREE STATE BUSINESS 2018

62


LISTING

Provincial Treasury

MEC: Ms Elzabe Rockman

55 Elizabeth Street, Fidel Castro Building, Bloemfontein 9300

Tel: +27 51 403 4141

Fax: +27 51 403 3244

Website: www.treasury.fs.gov.za

Free State Local Government

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

MANGAUNG METROPOLITAN

MUNICIPALITY

Physical address: Bram Fischer Building, cnr Nelson Mandela and

Markgraaff Streets, Bloemfontein 9301

Postal address: PO Box 3704, Bloemfontein 9300

Tel: +27 51 405 8911

Fax: +27 51 405 8663

Website: www.mangaung.co.za

FEZILE DABI DISTRICT MUNICIPALITY

Physical address: John Vorster Road, Sasolburg 1947

Postal address: PO Box 10, Sasolburg 1947

Tel: +27 16 970 8600

Fax: +27 16 970 8747

Website: www.feziledabi.gov.za

Mafube Local Municipality

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

Website: www.mafubemunicipality.gov.za

Metsimaholo Local Municipality

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

Website: www.metsimaholo.gov.za

Moqhaka Local Municipality

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

Website: www.moqhaka.gov.za

Ngwathe Local Municipality

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

Website: www.ngwathe.fs.gov.za

LEJWELEPUTSWA DISTRICT MUNICIPALITY

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

Postal address: PO Box 2163, Welkom 9460

Tel: +27 57 353 3094

Fax: +27 57 353 3382

Website: www.lejweleputswa.co.za

Masilonyana Local Municipality

Tel: +27 57 733 0105

Fax: +27 57 733 2217

Website: www.masilonyana.fs.gov.za

Matjhabeng Local Municipality

Tel: +27 57 391 3359

Fax: +27 57 357 4393

Website: www.matjhabeng.co.za

Nala Local Municipality

Tel: +27 56 514 9200

Fax: +27 56 515 3922

Website: www.nala.org.za

Tokologo Local Municipality

Tel: +27 53 541 0014

Fax: +27 53 541 0360

Website: www.tokologo.fs.gov.za

Tswelopele Local Municipality

Tel: +27 51 853 1111

Fax: +27 51 853 1332

Website: www.tswelopele.fs.gov.za

63

FREE STATE BUSINESS 2018


LISTING

THABO MOFUTSANYANA DISTRICT

MUNICIPALITY

Physical address: Old Parliament Building, 1 Mamopi Street,

Phuthaditjhaba 9870

Postal address: Private Bag X810, Witsieshoek 9870

Tel: +27 58 718 1000

Fax: +27 58 718 4090

Website: www.thabomofutsanyana.gov.za

Dihlabeng Local Municipality

Tel: +27 58 303 5732

Fax: +27 58 303 4703

Website: www.dihlabeng.gov.za

Maluti-a-Phofung Local Municipality

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

Website: www.map.fs.gov.za

Mantsopa Local Municipality

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

Website: www.mantsopa.fs.gov.za

Nketoana Local Municipality

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

Website: www.nketoana.fs.gov.za

MUNICIPALITIES IN THE FREE STATE

North West

Phumelela Local Municipality

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

Website: www.phumelela.gov.za

Setsoto Local Municipality

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

Website: www.setsoto.info

XHARIEP DISTRICT MUNICIPALITY

Physical address: 20 Louw Street, Trompsburg 9913

Postal address: Private Bag X136, Trompsburg 9913

Tel: +27 51 713 9300 | Fax: +27 51 713 0461

Website: www.xhariep.gov.za

Kopanong Local Municipality

Tel: +27 51 713 9200 | Fax: +27 51 713 0292

Website: www.kopanong.gov.za

Letsemeng Local Municipality

Tel: +27 53 330 0200 | Fax: +27 53 205 0144

Website: www.letsemeng.gov.za

Mohokare Local Municipality

Tel: +27 51 673 9600 | Fax: +27 51 673 1550

Website: www.mohokare.co.za

Gauteng

Fezile Dabi

Ngwathe

Metsimaholo

Mafube

Mpumalanga

Nala

Moqhaka

Nketoana

Phumelela

Tswelopele

Matjhabeng

Thabo Mofutsanyana

Northern Cape

Tokologo

Lejweleputswa

Setsoto

Dihlabeng

Maluti-a-Phofung

Masilonyana

KwaZulu-

Natal

Mantsopa

Letsemeng

Mangaung

Xhariep

LESOTHO

N

Mohokare

Kopanong

Metropolitan/District

Municipality boundary

Local Municipality Boundary

District Municipality

Local Municipality

Xhariep

Setsoto

Eastern Cape

FREE STATE BUSINESS 2018

64


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