South African Business 2019 edition

SOUTH AFRICAN 

2019 EDITION 

BUSINESS 

THE GUIDE TO BUSINESS AND INVESTMENT 

IN SOUTH AFRICA 

JOIN US ONLINE 

WWW.GLOBALAFRICANETWORK.COM | WWW.SOUTHAFRICANBUSINESS.CO.ZA

Adorantha Investments 

Improving the quality of health in South Africa. 

Adorantha Investments (Pty) Ltd is a company 

with a national footprint that provides 

health awareness, healthcare counselling 

and training services. The mission of 

Adorantha’s HIV/Aids awareness programmes is to 

help prevent HIV infections and to improve the lives 

of those affected by HIV and Aids by providing education 

and facilitating the free and open exchange of 

knowledge and training. 

The counselling and health awareness programme 

is based on a holistic approach that encompasses 

diseases management which impacts on 

health lifestyle. The medium and long-term benefits 

of this type of approach are unquestionable. The 

company’s operations are managed and driven by 

health professionals who bring with them many years 

of experience in various health fields. 

The company aims to improve the quality of 

health in South Africa and help improve the levels 

of productivity in the country via affordable health 

counselling at strategic places throughout the country. 

The EAP (employee assistance programme) is 

designed to assist management, employees and 

their dependants and various stakeholders within 

the company in addressing productivity and absenteeism 

issues in a confidential and effective manner. 

Adorantha has established a reputation of service 

excellence in the past eight years. Community and 

healthcare programmes are designed towards 

prevention rather than treatment of compromised 

conditions, and a spectrum of services that are 

integrated towards normalising the lives of the 

afflicted, has set a pattern of excellent outcomes 

that has the potential to be repeated. 

These include areas such as lifestyle diseases and 

work-life balance in order to enhance individual and 

organisational wellness. These programmes include 

health risk assessments, training, profiling, education 

and awareness which is aligned to the country’s 

health awareness days (World Diabetes Day, 

World Aids Day, etc) and other programmes aimed 

at improving the general health standard of employees 

and communities. The company’s HIV/Aids 

programmes follow an integrated approach, tackling 

the epidemic on all fronts with various initiatives and 

campaigns that include education and awareness, 

comprehensive healthcare, risk management, community 

involvement and monitoring and evaluation. 

We have benchmarked our health awareness 

programmes against the best programmes in the 

country and we always aim to improve through 

training and workshops. Our programmes utilise 

specific core principles to enhance employee 

and workplace effectiveness through prevention, 

identification, and resolution of personal and workrelated 

issues. 

All wellness and health interventions at Adorantha

are planned, designed and implemented based on 

consultation with our clients. Health screening tests 

or analysis are conducted on-site at a nominated 

venue by our competent health practitioners in an 

atmosphere of confidentiality and privacy. These 

interventions have been reinforced through strong 

communication, awareness, education and prevention 

drives through varied mediums. 

Services 

HIV and Aids education needs to motivate people 

by making them aware that what they are learning 

is relevant to their lives. Empowerment is also crucial, 

as people must be in a position where they are able 

to take control of their sexual behavior or methods 

of drug use. Education is a crucial factor in preventing 

the spread of HIV. Given the huge numbers of 

deaths that might still be prevented, the importance 

of effective education cannot be overestimated. 

HIV/Aids and TB at the workplace 

Management of TB 

• Management of drug-resistant TB 

• TB and HIV infection prevention and control 

• HIV management 

• General health awareness programmes 

• Health roadshows 

• Practical skills sessions for doctors and nurses 

• Workshops and awareness sessions for lay people 

These sessions cover the basics of TB and HIV and 

bring together diverse groups of employees and 

communities. We also supply technical support and 

assist in creating health policies and protocols. 

Staff 

In addition to highly qualified doctors and nurses 

Adorantha can call on a range of skilled professionals 

in rolling out holistic services. All doctors are in 

good standing with the Health Professions Council 

of South Africa (HPCSA). 

Educators 

The health educator provides risk assessments 

and health education to HIV-positive patients 

and provides HIV testing and group education 

to HIV-negative participants. The educator 

maintains client confidentiality at all times. 

Counsellors 

Counsellors provide personal, behavioural and 

vocational guidance for individuals and groups. 

In collaboration with medical staff, they help to 

determine when detoxification for a client is 

appropriate and provide supportive counselling 

and referrals. 

In-house psychologists 

They can assist where the problem goes beyond 

the mere physical. A health psychologist 

conducts surveys, personality tests, interviews 

and interventions. Interventions might involve 

chronic disease management, stress relief or 

relaxation therapy. 

Legal services 

We can assist in the drafting of wills, 

representation in disciplinary hearings, general 

legal advice sessions and bail applications. We 

can also provide representation in some criminal 

(limited) matters. 

Financial advisors 

A highly-skilled team can advise any entity on financial 

affairs, in association with Johan Eksteen 

& Associates (FSB no 10930). 

Other services 

Insurance – Affordable Healthcare and Group 

Schemes 

Employee Assistance Programmes 

Wellness Management 

HIV/Aids Management Programmes 

Student Life Skills training 

Physical address: 107 Haymeadow Street, Block 4 Boardwalk Office Park, Faerie Glen, Pretoria 0081 

Tel: +27 12 948 0410 | Email: info@adorantha.com | Website: www.adorantha.com

New team boosts 

Durban’s prospects 

A lifestyle of business and pleasure together, Durban 

has the perfect mix for investors. 

Team Durban has a new and dynamic team to 

drive investment into the city. In September 

2018, eThekwini Mayor Zandile Gumede inducted 

the new members of Team Durban. 

The team will provide strategic Foreign Direct 

Investment (FDI) advice to the city leadership and 

the new Invest Durban Unit on business and investment 

promotion matters. 

Mayor Gumede thanked the newly nominated 

members of the team for agreeing to help accelerate 

investment growth while looking to improve the 

business environment of the city region. 

The Deputy City Manager of Economic Development 

and Planning Phillip Sithole will provide liaison and administrative 

support to Team Durban. Sithole will also 

provide progress reports to council on the functioning 

and outputs of Team Durban. Members of the Team 

Durban Advisory Forum from the Municipality comprise 

eThekwini Mayor Zandile Gumede, who will serve as the 

Chairperson of the Forum, Chairperson of the Economic 

Development and Planning Committee Sipho Kaunda, 

and City Manager Sipho Nzuza. 

The external members are representatives of some 

the biggest business in the city as well as representatives 

from civil society, including youth and academia. 

They are: Suben Moodley, Senior Vice President for 

Corporate Affairs Toyota South Africa; Mike Deighton, 

Managing Director Tongaat Hulett Developments; 

Themba Ngcobo, Founder and Director Exel Petroleum; 

Musa Makhunga, Managing Director of HR Matters and 

President of the Durban Chamber of Commerce and 

Industry; Sandile Zungu, Corporate Director Zungu 

Investments Company Limited (ZICO); Steven Saad, Chief 

Executive of Aspen Pharmacare; Mlungisi Ntombela, 

General Manager eThekwini Disability Sport Forum; 

Faisal Mkhize, KZN Provincial Managing Executive of 

Absa; Zanamuhla Khanyile, Department of Correctional 

Services; Samukelisiwe Nzimande, Managing Director 

K2M Financial Services; Howard Arrand, Provincial Head 

FNB; Manto Madlala, acting CEO Premier Soccer League; 

Thulisa Ndlela Chair of Ayigobi Investments. 

The non-executive members have been appointed 

to serve on Team Durban for a period of three years 

effective from 1 July 2018 to 30 June 2021.

Their service will be on a voluntary basis but the 

municipality will cover their travel and accommodation 

expenses where required and in accordance with travel 

policy. 

At the function to introduce the new team, Russell 

Curtis, Head of Department, Invest Durban said, “Team 

Durban marks the further sophistication of the city.” 

He explained that the goal of Team Durban was to 

improve partnerships and strengthen relationships 

between different sectors in society. This forum he 

said was a significant step change for Durban and in 

line with global best practice. 

INVEST IN DURBAN 

Durban’s investment agency has a refreshed brand 

name of “Invest Durban”. A partnership between the 

Metro City Council and the private business sector, 

Invest Durban offers a free investor advisory service 

plus key promotion, facilitation, aftercare services 

between all investment stakeholders. 

Invest Durban was recommended by the Durban 

City Council and organised private business as the 

“First Stop Shop” to stimulate economic growth and 

new investment in the Durban metropolis. 

Main Purpose 

To facilitate sustainable investment in Durban for 

the benefit of all through the: 

• expansion, retention and aftercare of existing 

foreign corporate business 

• proactive investment promotion and marketing 

of Durban Metro 

• proactive connection to, and marketing of the 

city’s large investment projects 

• attraction of prospective new foreign investors 

Invest Durban works closely with the Department 

of Trade and Industry including Invest SA, Trade and 

Investment KZN (TIKZN), the Durban Chamber of 

Commerce and Industry, the KZN Growth Coalition, 

and State-Owned-Enterprises such as Dube 

TradePort, the DBSA, IDC, Eskom and others. Key 

partners include the largest banks, audit and advisory 

firms, plus sector-based organised business bodies 

working in concert to promote investment in Durban. 

Physical address: Invest Durban, 

eThekwini Municipality 

11th Floor, 41 Margaret Mncadi Avenue 

Durban 4001, South Africa 

Tel: +27 31 311 4227 

Email: invest@durban.gov.za 

Website: www.invest.durban

CONTENTS 

CONTENTS 

South African Business 2019 Edition. 

Introduction 

Foreword12 

A unique guide to business and investment in South Africa. 

Special features 

An economic overview of South Africa 14 

South Africa has many attractive investment opportunities in 

sectors ranging from agri-processing to renewable energy. 

Provinces of South Africa 22 

A snapshot of South Africa’s nine provinces. 

Energy and the future 26 

South Africa’s exciting renewable energy programme is back 

on track. 

Special Economic Zones 36 

Promoting industrial development via incentives. 

Healthcare 42 

Health counselling at work is a growing trend. 

SOUTH AFRICAN BUSINESS 2019 

4

Endorsed Brand Lockup 

Transition Lockup Option 1 

Transition Lockup Option 2 

6 009647 070012 

WE HELP KEEP THE LOGIC 

IN LOGISTICS. 

With logistics companies so sensitive to supply and demand, it’s logical to demand streamlined 

responsiveness from their bar coding partners. Through our network of highly-qualified resellers, we at 

Kemtek Bar Coding Solutions supply the world’s leading bar coding products and systems to maximise 

responsiveness, traceability, operating efficiency and more. We also provide dedicated service and 

support from efficient industry specialists at the top of their field. If you’re in transport and logistics, 

or indeed just about any field, visit our website or call us direct at the number below to find out more. 

NATIONAL: 0861 KEMTEK • JHB: +27 (0)11 624 8000 • PTA: +27 (0)12 804 1410 

DBN: +27 (0)31 700 9363 • CPT: +27 (0)21 521 9600 • PE: +27 (0)41 364 3690 

WWW.KEMTEK.CO.ZA

CONTENTS 

Regional trade 44 

Trading with African neighbours is set to become easier. 

A hub of economic activity 52 

Airports can anchor economic growth in multiple sectors. 

The Oceans Economy 56 

There are massive opportunities in new maritime sectors. 

Economic sectors 

Agriculture 66 

Increasing agri-processing volumes is a national priority. 

Mining 70 

Mine owners are preparing for change. 

Oil, gas and petrochemicals 75 

National policies are focussing on gas. 


6

® 

Build your investment 

while we build our country 

A range of products built on 

the foundation of quality and 

durability 

Aggregates 

Concrete Based 

Products 

Industrial 

Minerals 

Contracting 

International 

Commodities 

Inspiring growth through the consistent delivery 

of solutions that empower our people and our 

customers. 

Afrimat Limited is a leading black empowered open pit mining 

company providing an integrated product offering ranging from 

aggregates, industrial minerals, commodities (iron ore), concrete 

products (bricks and pavers) to readymix concrete. 

Afrimat has established a strong foothold in contracting services 

comprising mobile crushing, screening, drilling and blasting. 

Backed by more than 45 years’ experience, Afrimat listed on the JSE 

Limited in 2006. As part of its continued diversification strategy, the 

group is expanding its footprint into Africa. 

The group’s capabilities enable Afrimat to service projects of any scale 

from major infrastructure and construction projects for state-owned 

enterprises and parastatals through to small private sector contracts. 

www.afrimat.co.za 

Tel +27 21 917 8840 Fax +27 21 914 1174 info@afrimat.co.za

CONTENTS 

Water 82 

Restructured water boards have greater responsibilities. 

Engineering 90 

Major restructuring is underway. 

Construction and property 98 

The shopping mall trend continues to grow. 

Manufacturing 108 

Incentives are in place to support new investment. 

Food and beverages 116 

Acquisitions are supporting backward integration. 

Automotive 118 

Chinese investors are building at the Coega Industrial 

Development Zone. 

SOUTH AFRICAN BUSINESS 2019 8

About Thebe 

Founded 

in 1992 as a pioneering 

black-owned company, 

ith an initial 

Thebe opened for business in July 1992 with an initial 

hareholder at the 

capital investment of only Rl 00 000. A sole shareholder a 

About About 

d trust About Thebe Thebe 

which included Thebe 

time was the Batho Batho Trust, a community-based trust which 

Founded 

erend Beyers Naude as 

Nelson Mandela Founded (Chairman), Walter Sisulu and Reverend Beyers 

in 1992 Founded as pioneering 

original in 1992 Trustees. as Founded a pioneering 

in 1992 black-owned as a pioneering company, 

black-owned in 1992 as a company, pioneering 

black-owned Thebe opened company, for business in July 1992 with an initial 

Thebe black-owned opened for company, business in July 1992 with an initial 

ny that came into being 

Thebe capital opened Thebe investment for Investment business of only in Rl July 00 Corporation 000. 1992 with sole an shareholder initial is an African at the Company that came 

capital Thebe investment opened of for only business Rl 00 in 000. July A 1992 sole with shareholder an initial at the 

capital time was investment the Batho of 

shortly Batho only Rl 

before Trust, 00 000. South community-based A sole shareholder 

Africa's formal trust at which the 

ition to democracy, setting 

political included transition to demo 

time was capital the investment Batho Batho of Trust, only a Rl community-based 00 000. A sole shareholder trust which at included the 

time was Nelson the Mandela Batho Batho (Chairman), Trust, a community-based Walter Sisulu and trust Reverend which Beyers included Naude as 

by establishing a socially 

Nelson time was Mandela the Batho (Chairman), new Batho norms Trust, Walter a and community-based Sisulu changing and Reverend the trust face Beyers which of included Naude business as by establishin 

Nelson original Mandela Trustees. (Chairman), Walter Sisulu and Reverend Beyers Naude as 

uccess to transform lives, and make a original Nelson Trustees. Mandela (Chairman), embedded Walter Sisulu company and Reverend that uses Beyers its business Naude as success to tra 

original Trustees. 

Founded original Trustees. 

Thebe Investment Corporation difference is an African in our Company communities. that came into being 

in 1992 as a pioneering Thebe Investment Corporation is an African Company that came into being 

Thebe Investment shortly before Corporation South Africa's is an African formal Company political transition that came to democracy, into being setting 

black-owned company, Thebe shortly Investment before South Corporation Africa's formal is an African political Company transition that to democracy, came into being setting 

shortly before new norms South and Africa's changing formal the political face transition of business to by democracy, establishing setting 

is articulated in Vision 2020, 

The future socially of TIC is articulated 

Thebe opened for business in July shortly new 1992 before norms with and South initial changing Africa's formal the face political of business transition by establishing to democracy, a socially setting 

new norms embedded and changing company the face that of uses business its business by establishing success to a transform socially lives, and make n the African capital Renaissance. 

investment of only Rl 00 000. A new sole embedded norms shareholder and company changing at the that the uses face its of business success by establishing which to transform focuses a socially lives, on and the make African a 

embedded difference company in our that communities. 

uses its business success to transform lives, and make a 

nd Resources time was division the Batho will Batho Trust, a community-based embedded difference trust which company in our included communities. 

that uses its business success to The transform Energy lives, and Resources 

make a 

difference in our communities. 

its focus Nelson the Mandela key growth (Chairman), Walter Sisulu and Reverend difference Beyers in our Naude communities. as The future of TIC is articulated strengthen in Vision 2020, its focus on th 

The future of TIC is articulated in Vision 2020, 

original Trustees. 

The future 

nergy, resources, power, 

which of TIC focuses is articulated on the African in Vision 

areas Renaissance. 

2020, 

The which future focuses of TIC on is the articulated African Renaissance. 

in Vision of 2020, energy, resourc 

which focuses The Energy on the and African Resources Renaissance. division will 

ure as Thebe well as Investment water. Corporation The is an African Company that came into being which The focuses Energy and on the Resources African infrastructure Renaissance. 

division will as well as 

The Energy strengthen and Resources its focus division the will key growth 

ivision seeks shortly to before become South Africa's a formal political transition to democracy, setting The strengthen Energy and its focus Resources on the division will 

areas of energy, resources, Services 

key growth 

strengthen its focus on the key growth power, Division seeks 

new norms and changing the face of business by establishing a socially strengthen areas of energy, its focus resources, on the key power, growth 

f world class services for 

areas of infrastructure energy, resources, as well power, as facilitator water. The of world class s 

embedded company that uses its business success to transform lives, and areas infrastructure make of a energy, as resources, well as water. power, The 

infrastructure 

and the rest of the 

Services as Division well as seeks water. 

South to The become Africa and the rest 

difference in our communities. 

Services infrastructure Division as well seeks as to water. become The a 

Services facilitator Division of seeks world to class become services a for 

by participating in 

facilitator Services of Division world seeks class services continent to become for a by participat 

facilitator South of Africa world and class the services rest of for the 

ing sectors: 

The future of TIC is articulated in Vision 2020, South facilitator Africa of and world the class rest services of the following for 

South Africa sectors: 

continent and the by rest participating of the in 

which focuses on the African Renaissance. South continent Africa by and participating the rest of the in 

tourism, media, 

continent the by following participating sectors: in travel & tourism, med 

The Energy and Resources division will continent the following by participating sectors: in 

agro-processing, 

the following travel sectors: 


strengthen its focus on the key growth 

food & agro-process 

the travel following & tourism, sectors: media, 

travel 

roperty. 

food & tourism, agro-processing, 

media, 

areas of energy, resources, power, 

and property. 

THEBE 

food travel & agro-processing, 


food & agro-processing, 

and property. 

infrastructure INVESTMENT as well CORPORATION as water. The food and & property. agro-processing, 

and property. 

Services Division seeks to become a and property. 

facilitator of world class services for 

South Africa and the rest of the 

continent by participating in 

the following sectors: 

travel & tourism, media, 

food & agro-processing, 

and property. 

THEBE 

INVESTMENT CORPORATION 

TIN

CONTENTS 

Transport and logistics 120 

Plans are in place to shift freight from road to rail. 

Information and communications technology (ICT) 124 

Incentives are encouraging investment. 

Tourism and events 134 

The events and conferences sector is growing across the 

country. 

Banking and financial services 140 

New sectors and new licences are creating opportunities. 

Development finance and SMME support 144 

Prompt payment is vital for small businesses. 

National Government 

South African National Government 148 

References 

Sector contents 64 

Index152 

NAMIBIA 

BOTSWANA 

North West 

6% 

ZIMBABWE 

Limpopo 

7% 

Gauteng 

Mpumalanga 

35% 

7% 

SWAZI- 

LAND 

MOZAMBIQUE 

Maps 

Northern Cape 

2% 

Free State 

5% 

LESOTHO 

KwaZulu- 

Natal 

16% 

Detailed map of South Africa. 20 

Eastern Cape 

8% 

South African provincial map. 17 

Western Cape 

14% 


10

FOREWORD 

South African Business 

A unique guide to business and investment in South Africa. 

Welcome to the seventh edition of the South African 

Business journal. First published in 2011, the publication 

has established itself as the premier business and 

investment guide to South Africa, supported by an 

e-book edition at www. southafricanbusiness.co.za. 

Regular pages cover all the main economic sectors of the South 

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

economies. Feature articles on topical issues such as Special 

Economic Zones and African trade provide unique insights, together 

with comprehensive overviews of critical economic sectors. Other 

special features focus on the exciting new possibilities in renewable 

energy, airports as engines of regional growth and the maritime 

sector as an entirely new prospect for South African entrepreneurs 

and businesses. 

South African Business is complemented by nine regional publications 

covering the business and investment environment in each of 

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

at www.gan.co.za. These unique titles are supported by a monthly 

business e-newsletter with a circulation of over 26 000. 

Chris Whales 

Publisher, Global Africa Network Media 

Email: chris@gan.co.za 

CREDITS 

Publisher: Chris Whales 

Publishing director: 

Robert Arendse 

Editor: John Young 

Online editor: Christoff Scholtz 

Art director: Brent Meder 

Design: Tyra Martin 

Production: Lizel Olivier 

Ad sales: Sydwell Adonis, Sandile 

Koni, Gavin van der Merwe, 

Sam Oliver, Gabriel Venter, 

Siyawamkela Sthunda, 

Vanessa Wallace, Jeremy Petersen 

and Reginald Motsoahae 

Managing director: Clive During 

Administration & accounts: 

Charlene Steynberg and 

Natalie Koopman 

Distribution & circulation 

manager: Edward MacDonald 

Printing: FA Print 

DISTRIBUTION 

South African Business is distributed internationally on outgoing 

and incoming trade missions; to foreign offices in South 

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

events; through the offices of foreign representatives in South 

Africa; as well as nationally and regionally via chambers of 

commerce, tourism offices, trade and investment agencies, 

provincial government departments, municipalities, airport 

lounges and companies. 

Member of the Audit Bureau 

of Circulations 

COPYRIGHT | South African Business is an independent publication 

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

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

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

permission of Global Africa Network Media (Pty) Ltd. 

PHOTO CREDITS | Pictures supplied by: Beier Group, Cape Town 

International Convention Centre, Chris Kirchoff/Brand SA, Department 

of Trade and Industry, Dube TradePort, eProp Commercial Property, 

Graeme Williams/BrandSA, Impala Platinum, Indluplace Properties, 

iStock, Kevin Wright/Vedanta Zinc International, Mainstream Renewable 

PUBLISHED BY 

Global Africa Network Media (Pty) Ltd 

Company Registration No: 2004/004982/07 

Directors: Clive During, Chris Whales 

Physical address: 28 Main Road, Rondebosch 7700 

Postal address: PO Box 292, Newlands 7701 

Tel: +27 21 657 6200 | Fax: +27 21 674 6943 

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

ISSN 2221-4194 

Energy, Rodger Bosch/Media Club SA, SA Heavy Haul Association, SASOL, 

Sutherland Engineers, SKA, Transnet Port Authority, Volkswagen SA. 

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

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

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

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

or completeness of the information. Global Africa Network Media will 

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

the use of or any reliance placed on such information. 

Join us! 

Advertise your organisation in this journal to reach 

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

INTERVIEW 

Making a difference 

Adorantha founder Thami Ndlala explains how health 

awareness, counselling and training can change lives. 

Thami Ndlala 

BIOGRAPHY 

Thami Ndlala is an entrepreneur 

and businessman at heart. 

After working in the corporate 

environment for a short period, he 

focussed his energy on building 

an empire. With the umbrella 

company, Ndlalayemandla Group 

of Companies (Pty) Ltd, he set 

off on this journey. The various 

subsidiaries reflect his interest in 

transport, recreation, wellness, 

insurance, hospitality, property 

development, education, security 

and media/entertainment. Thami’s 

approach has always been to look 

at ways in which he can make a 

difference. 

How did the business begin? 

We are passionate about our country and its people. In 1996, then Minister of 

Health, Nkosazana Dlamini-Zuma, told a conference in Vancouver that most 

people infected with HIV live in Africa, where therapies involving combinations 

of expensive anti-viral drugs are out of the question. We knew then 

that we had to get involved. Our vision was to set up Employee Assistance 

Programmes designed to assist management and employees in addressing 

productivity and absenteeism in a confidential and effective manner. 

What are the main services you provide? 

Adorantha provides health awareness, healthcare counselling and training 

services nationwide. Our mission with the HIV/Aids awareness programme 

is to help prevent HIV infections and to improve the lives of those affected 

by providing education and facilitating the free and open exchange of 

knowledge and training. Counselling and health awareness is based on 

a holistic approach. 

What level of qualifications do your staff have? 

Adorantha Investments has established a reputation of service excellence. 

We pride ourselves on the services we render as well as the trained and 

highly professional and qualified service professionals. We have qualified 

doctors who are in good standing with the Health Professions Council of 

South Africa (HPCSA). 

Please tell us about the HIV/Aids in the workplace 

programme. 

We provide HIV testing and group education to HIV-negative participants, 

training on Wellness Referral Programme and Student Life Skills Training. 

Our wellness programme is about increasing the productivity, morale and 

teamwork and strengthening the bonds between management, employees 

and the organisation. The HIV/Aids workplace programme includes 

creating a company policy, information on HIV/Aids, ways of preventing 

the transmission of the disease, condom distribution, STI diagnosis and 

referrals, mitigation services like counselling, community support and 

home-based care. 

Please share any success stories. 

Our main success story has been to cater for thousands of hard-working 

construction labourers who are exposed to extreme conditions through 

our extensive wellness programme. In addition, Adorantha Investments 

now offers an excellent range of health insurance packages at affordable 

rates, in partnership with Johan Eksteen & Associates. 

13 SOUTH AFRICAN BUSINESS 2019

AN ECONOMIC OVERVIEW OF 

SOUTH AFRICA 

A time of considerable political and economic uncertainty came to 

an end in February 2018 with the resignation of President Jacob 

Zuma and the election of President Cyril Ramaphosa. 

By John Young 

Serious allegations of fraud and looting 

of state resources have been levelled 

against many people in the public and 

private sectors and a series of commissions 

of enquiry has been launched by the new 

administration. South Africa’s fourth president in 

the democratic era has been secretary-general of 

the country’s most important union and the biggest 

political party, a leader of negotiations that 

led to democracy, chairman of the Constitutional 

Assembly that wrote the new Constitution and a 

successful businessman. New ministers of state have 

been appointed, boards of state-owned-entities 

(SOEs) have been replaced and promises have been 

made that corruption will no longer be tolerated 

in state departments. International ratings agencies 

seemed willing to hold off on downgrades of 

the country’s investment status in response to the 

changing of the political guard. 

The fact that Ramaphosa is also a former coleader 

of the National Development Plan (NDP) is 

also good news for the possibility of more certainty 

in policy-making. The NDP is a detailed blueprint for 

how to move the country forward. Part of that plan 

entails setting up deliverable schemes, such as the 

plan called Strategic Integrated Projects. 

One of Ramaphosa’s first actions was to appoint 

a five-person investment panel whose task is to 

persuade international decision-makers to invest 

$100-billion in South Africa Inc. Coordinated by former

SPECIAL FEATURE 

Rhodes Scholar Trudi Makhaya, the panel also includes 

respected former finance minister Trevor Manuel. A 

number of investment summits are planned. 

The lifting of a long-term drought and big 

improvements in the economic returns from the 

agricultural sector encouraged South Africans to 

think that the political changes would be a precursor 

to a steady improvement in the economic field. 

There were also good gains in sectors such as trade, 

manufacturing, and finance and real estate. 

However, depressed commodity prices and 

the fact that South Africa is among the world’s 

“emerging markets” meant that events in other 

parts of the world put a damper on the country’s 

economy going in to the third quarter of 2018. A 

general election will be held in 2019. The results of 

this election should allow for a calmer climate and 

more political certainty. 

There is a lot of work to do to get South Africa’s 

economy back on a solid upward path, but the 

country has tremendous advantages. Great mineral 

wealth has underpinned the South African economy 

ever since the first diamond was stumbled upon in 

1867. Gold was found soon afterwards and that industry 

effectively saw to it that South Africa became 

an industrialised nation. Now those gold mines are 

tapering off production but iron ore and platinum 

reserves are impressively large. 

The grains of the central regions of the country, 

together with the fruits and vegetables of 

Mpumalanga and Limpopo, the wines and grapes 

of the Western Cape and the sheep and mohair of 

the Eastern Cape, all contribute to a diverse and 

vibrant agricultural sector. There are many strong 

agricultural companies in the sector. KwaZulu-Natal 

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

suite in forestry and paper production. 

Automotive manufacturing and automotive 

components are doing well, with major investments 

by most of the major marques and increased exports 

a feature of the sector. 

The publication in 2018 of a new Integrated 

Resource Plan (IRP) is another symptom of the type 

of increased certainty that an economy needs in 

order to thrive. The IRP is a road map for South 

Africa’s electricity generation and the previous 

administration seemed determined to push 

for an expensive nuclear programme. The latest 

plan confirms that the already hugely successful 

drive for renewable energy will be continued and 

expanded. Apart from being greener and cheaper, 

the renewable energy programme has also attracted 

lots of foreign direct investment (FDI) and provided 

new employment opportunities. (The renewable 

energy private investor programme is covered in 

another article in this publication.) 

The Drakensberg mountain range in KwaZulu-Natal is a key tourism asset. 


16


ZIMBABWE 

NAMIBIA 

BOTSWANA 

Limpopo 

7% 

MOZAMBIQUE 

North West 

6% 

Gauteng 

35% 

Mpumalanga 

7% 

SWAZI- 

LAND 

Northern Cape 

2% 

Free State 

5% 

LESOTHO 

KwaZulu- 

Natal 

16% 

Western Cape 

14% 

Eastern Cape 

8% 

Percentage contribution of each province to national GDP. 

SOURCE: STATS SA WWW.STATSSA.GOV.ZA 

Trends 

Good signs for the economy include: 

• Several provincial governments and investment 

agencies are establishing trade relations and 

study programmes with BRICS countries. State 

visits to and from China immediately before and 

after a major BRICS summit in 2018 gave an indication 

that Ramaphosa holds high hopes for 

increased trade with the biggest of the BRICS 

nations. Two-way trade between the countries in 

2017 was worth $39.1-billion. South Africa wants 

to grow tourist numbers from China. South Africa 

became the first country in the world to export 

beef to China in 2017, to go with existing exports 

of iron ore, platinum and fruit and wine. 

• Tourists are visiting South Africa in record numbers 

(Cape Town’s Air Access programme has 

secured tens of thousands of new seats on direct 

flights to and from the city). 

• Companies are successfully trading into Africa. 

• Niche agricultural markets are booming with 

macadamia nuts being the most successful. 

Pecan nuts have done well and wine and grape 

exports to China are growing. 

• Private education at school and tertiary level is 

growing as a sector. 

• New banking licences have been issued and 

several more are in the pipeline. 

• New stock exchanges came on line in 2017 and 

more are expected. 

• Investment in infrastructure (especially ICT and 

railways) is strong. Nedbank’s report on capital 

expenditure in South Africa stated that the 

29 large projects announced in the first half 

of 2018 were valued at R63.9-billion (Financial 

Mail). The renewable energy programme 



attracted R38-billion and 95% of the capital 

projects were driven by the private sector. 

Geography 

South Africa’s location between the Atlantic 

and Indian oceans ensures a generally temperate 

climate. The 2 954km coastline stretches 

from the border with Namibia on the Atlantic 

to the border with Mozambique in the east. 

The cold Benguela current sweeps along the 

western coast while the warm Indian Ocean 

ensures that the Mozambique/Agulhas current 

is temperate. 

South Africa’s coastal plain is separated from 

the interior by several mountain ranges, mostly 

notably the Drakensberg which runs down the 

country’s eastern flank. Smaller ranges in the 

south and west mark the distinction between 

the fertile coastal strip and the dry interior 

known as the Karoo. 

The city of Johannesburg is located on the 

continental divide, whereby water runs south 

of the city towards the Atlantic Ocean while 

Embargoed until: 11:30am 

GDP 

Q4 2017 

waters to the north drain towards the north and 

east. Johannesburg is 1 753m above sea-level. 

Most of the country has summer rainfall but 

the Western Cape, which has a Mediterranean 

climate, receives its rain in winter. Droughts are 

not uncommon and although the national average 

is 464mm, most of the country receives 

less than 500mm of rain every year. The Western 

Cape experienced a severe drought which was 

broken in 2018. 

The Orange and Vaal rivers play important 

roles in water schemes and irrigation and the 

Limpopo River defines the country’s northern 

boundary. A number of rivers run strongly from 

the Drakensberg to the sea, but South Africa has 

no navigable rivers. 

Maize is produced in large quantities in the 

interior. The dry interior mostly supports livestock 

in the form of sheep and cattle. South Africa is the 

world leader in mohair production. Wines and 

fruit are major export products for the Western 

Cape while KwaZulu-Natal and the low-lying areas 

of Mpumalanga are known for sugar cane and 

tropical and subtropical fruits. Limpopo is a major 

vegetable producer. 

Sector 

contribution 

to GDP Q4 

2017 

CREDIT: STATSSA 


18

SCOUTS South Africa 

Changing lives and fulfilling potential. 

South Africa 

SCOUTS South Africa (SSA) changes lives by providing 

youth with education, skills, mentorship, values, opportunities, 

resources, and safe places to be kids, so they can 

get out of poverty and have a better future for themselves 

and their families. However, many South Africans 

cannot afford to participate. For every R42 donated we 

help a youth experience Scouting! 

Who is SCOUTS South Africa? 

For over 100 years, SSA’s programmes have shaped the 

lives and unleashed the potential of hundreds of thousands 

of South Africans by following a learning-by-doing 

programme. Central in the Scouting programme is the 

continuous transference of values such as honesty, loyalty, 

responsibility and respect; all aimed at empowering 

the youth to govern their own individual behaviour and 

to develop strong leadership skills that will equip them 

to be of service to others and to their communities. 

All youth (boys and girls) aged seven to 35 are eligible 

to join. Our adult leaders are all volunteers. 

Currently, 90% of the 190 000 members come from 

townships and rural areas. SSA’s programmes address 

the objectives set out in the National Development Plan. 

Scouting complements the school and family roles and 

fills unmet needs by: 

• Equipping youth with practical leadership, communication 

and vocational skills to embrace future education 

and career opportunities 

• Combating poverty and addressing hunger alleviation 

through agricultural skills development 

• Developing youth to be positive citizens and contributors 

to their communities and country 

• Enhancing HIV/Aids awareness and first-aid capabilities 

• Enhancing environmental consciousness through 

interventions and projects 

• Providing positive peer-pressure and role models for 

youth 

• Building self-esteem and confidence 

• Promoting a culture of peace 

SSA is a recognised National Scout Organisation, affiliated 

to the World Organisation of the Scout Movement and 

is registered as a non-profit organisation. 

Support your local community 

Does your CSI policy address 

supporting local communities? For 

R1 680 annually you can assist a 

group of 40 youth in developing the 

skills required to succeed in their 

professional and private lives. To 

help, please contact SSA CEO Ms Milly 

Siebrits at ceo@scouts.org.za, or find 

more information about Scouting in 

South Africa on www.scouts.org.za 

GAVIN WITHERS PHOTOGRAPHY



20


FACT FILE: REPUBLIC OF SOUTH AFRICA 

President: Cyril Ramaphosa (African National 

Congress) 

Capitals: Pretoria/Tshwane (administrative, 

seat of government), Cape Town (legislative), 

Bloemfontein (judicial). 

Time: GMT+2 

Population: 55.91-million (2016) 

Size: 1 220 813km² 

Major languages: South Africa has 11 official 

languages but the main language of government 

and business is English. Zulu, Xhosa and Afrikaans 

are widely spoken. 

Religion: There is no state religion. The majority 

of the population are Christian but many 

other religions are followed such as Islam, 

Jewish and Hindu. 

Currency: rand (100 cents). R15.14 = $1 

(September 2018) 

Political system: South Africa is a republic with an 

executive president who is appointed by the political 

party that wins a majority in parliamentary 

elections. There are three tiers of government: 

national, provincial and local but the revenueraising 

capacity of the latter two spheres is 

limited. Allocations for health and education for 

example, are made by national government and 

then administrated by provinces. Eight of South 

Africa’s nine provinces are run by premiers from 

the African National Congress; the Western Cape 

province and the city of Cape Town are administered 

by the Democratic Alliance. 

The third level of government is local. In 

2016 the DA came to power in three of South 

Africa’s biggest cities, supported by other parties 

such as the Congress of the People and the 

United Democratic Front. The Freedom Front said 

it would support these anti-ANC alliances on a 

vote-by-vote basis, but it would not sign up to 

a coalition. In 2018 the FF tried to unseat the 

DA in Nelson Mandela Bay (Port Elizabeth) and 

Tshwane (Pretoria) but would not form a formal 

alliance with the ANC. 

Legal system: South Africa is a constitutional 

state with separation of powers between the 

legal and executive authorities. All laws must 

pass muster with the Constitutional Court which 

is the ultimate court of appeal on legislation. 

South Africa’s legal system is based on Roman 

Dutch law. 

Infrastructure: Ports of Cape Town, Saldanha, 

Mossel Bay, Port Elizabeth, East London, Durban 

and Richards Bay. International airports at Cape 

Town, Ekurhuleni and Durban and domestic airports 

at all major cities. Special Economic Zones 

(SEZs) have been established at major ports 

and are in the process of being set up at inland 

destinations. 

South Africa has 34 000km of railway track 

and half of the country’s road network is paved. 

Most of South Africa’s power is generated by 

coal-fired power stations run by the state utility 

Eskom. A vigorous programme to encourage 

private investment in renewable energy began in 

2012, suffered a setback in 2016 but was reinstated 

under the new administration of President 

Ramaphosa in 2018. 

Resources: Platinum, gold, iron ore, chromium, 

vanadium, manganese, alumino-silicates, coal, 

copper, diamonds, uranium, zirconium. 

GDP: Nominal GDP estimated at R1 208-billion 

for Q4 2017, R29-billion more than in Q3 2017 

(StatsSA). 

Exports: Precious and semi-precious stones, mineral 

products, base metals, vehicles, machinery, 

chemical products, vegetable products, fruits, 

foodstuffs and beverages, paper and pulp. 

Main export markets: China, USA, Japan, 

Germany, UK, India. Membership of BRICS will 

see focus on Brazil, Russia, India and China. 

Imports: Machinery, mineral products, vehicles, 

chemicals, original equipment, base metals, 

plastics and rubber, textiles, optical and medical, 

foodstuffs and beverages. 

Main import markets: China, Germany, USA, 

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

Nigeria. 


Provinces of 


A snapshot of South Africa’s 

nine provinces. 

Eastern Cape 

Capital: Bhisho 

Main towns: Port Elizabeth, East London, Uitenhage, 

Graaff-Reinet, Mthatha, Grahamstown (Makhanda). 

Population: 6 916 200 (2015) 

Area: 168 966km² (13.8% of South Africa) 

Premier: Phumulo Godfrey Masualle (ANC) 

Key sectors: Automotive, agriculture, agri-processing, 

forestry, finance, retail, tourism, renewable energy. 

Infrastructure: Coega Industrial Development Zone, East 

London Industrial Development Zone, ports of East London, 

Port Elizabeth and Ngqura, airports at Port Elizabeth and 

East London. 

Notable tourism assets: Addo Elephant National Park, 

Mountain Zebra National Park, Wild Coast, Jeffreys Bay, 

National Arts Festival. 

Provincial government website: www.ecprov.gov.za 

Eastern Cape Development Corporation: www.ecdc.co.za 

Free State 

Capital: Bloemfontein 

Main towns: Welkom, Sasolburg, Parys, Kroonstad 

Population: 2 817 900 (2015) 


Premier: Sefora Hixsonia Ntombela (ANC) 

Key sectors: Agriculture, agri-processing, chemical 

manufacturing, mining, transport and logistics. 

Infrastructure: Maluti-A-Phofung Special Economic Zone, 

Braam Fischer International Airport, University of Free 

State, Central University of Technology, N8 Corridor. 

Notable tourism assets: Vaal River, Gariep Dam, Golden 

Gate Highlands National Park, Cherry Festival, Mangaung 

African Cultural Festival (Macufe). 

Provincial government website: 

www.freestateonline.fs.gov.za 

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

Gauteng 

Capital: Johannesburg 

Main towns: Tshwane (including Pretoria), Ekurhuleni, 

Vanderbijlpark, Roodepoort 

Population: 13 200 300 (2015) 


Premier: David Makhura (ANC) 

Key sectors: Financial and banking, manufacturing, trade, 

creative industries, media. 

Infrastructure: OR Tambo International Airport, Gautrain, 

major universities and research institutions, large convention 

centres, FNB Stadium (Soccer City). 

Notable tourism assets: Cradle of Humankind, Apartheid 

Museum, Constitution Hill, Magaliesberg, Soweto tours, 

Dinokeng. 

Provincial government website: www.gauteng.gov.za 

Gauteng Growth and Development Agency: 

www.ggda.co.za 

KwaZulu-Natal 

Capital: Pietermaritzburg 

Main towns: Durban, Newcastle, Ballito, Port Shepstone, 

Empangeni, Ulundi. 

Population: 10 919 100 (2015) 


Premier: Willies Mchunu (ANC) 

Key sectors: Chemicals, dissolving pulp manufacture, sugar, 

forestry, automotive, textiles and footwear, mining, oil and 

gas, logistics. 

Infrastructure: King Shaka International Airport, Dube 

TradePort, Richards Bay Industrial Development Zone, ports 

of Richards Bay and Durban, Albert Luthuli International 

Convention Centre Complex. 

Notable tourism assets: Hluhluwe-iMfolozi Park, the 

Drakensberg mountains, iSimangaliso Wetland Park, Durban 

beaches, South Coast, Zulu cultural heritage, historical 

battlefields. 

Provincial government website: www.kznonline.gov.za 

Trade & Investment KwaZulu-Natal: www.tikzn.co.za

Limpopo 

Capital: Polokwane 

Main towns: Musina, Ba-Phalabora, Bela-Bela, 

Steelpoort, Tzaneen, Thohoyandou. 

Population: 5 726 800 (2015) 


Premier: Chupu Stanley Mathabatha (ANC) 

Key sectors: Mining, agriculture, tourism, logistics. 

Infrastructure: Musina-Makhado Special Economic 

Zone, Tubatse Special Economic Zone, N1 highway 

and rail network, new Medupi power station. 

Notable tourism assets: Kruger National Park, 

Mapungubwe Heritage Site, Makapans Valley, Marula 

Festival, Waterberg Biosphere. 


www.limpopo.gov.za 

Limpopo Economic Development Agency: 

www.lieda.co.za 

Mpumalanga 

Capital: Mbombela 

Main towns: Emalahleni, Middelburg, Sabie, 

Lydenburg 

Population: 4 283 900 (2015) 


Premier: Refilwe Mtshweni (ANC) 

Key sectors: Agriculture, forestry, mining, steel 

manufacturing, petrochemicals, pulp and paper, 

power generation, tourism. 

Infrastructure: Nkomazi Special Economic Zone, 

Mbombela International Fresh Produce Market, 

Maputo Development Corridor, Kruger Mpumalanga 

International Airport. 

Notable tourism assets: Kruger National Park, Blyde 

River Canyon, the Barberton Makhonjwa Mountains 

(a UNESCO World Heritage Site). 


www.mpumalanga.gov.za 

Mpumalanga Economic Growth Agency: 

www.mega.gov.za 

Northern Cape 

Capital: Kimberley 

Main towns: Douglas, Upington, De Aar, Port 

Nolloth, Colesberg. 

Population: 1 185 600 (2015) 


Premier: Sylvia Lucas (ANC) 

Key sectors: Agriculture, mining, renewable 

energy, astronomy. 

Infrastructure: Upington Special Economic 

Zone, Sol Plaatje University, Vaalharts Irrigation 

Scheme. 

Notable tourism assets: Six national parks 

including the Kgalagadi Transfrontier Park, 

Orange River, spring flower displays, diamond 

routes. 


www.northern-cape.gov.za 

Department of Economic Development and 

Tourism: www.northern-cape.gov.za/dedat

North West 

Capital: Mahikeng 

Main towns: Klerksdorp, Rustenburg, Brits, 

Potchefstroom 

Population: 3 707 000 (2015) 


Premier: Professor Job Mokgoro (ANC) 

Key sectors: Mining, agriculture, agri-processing, 

automotive components. 

Infrastructure: Hartbeespoort Dam, Pelindaba nuclear 

research unit, North West University, Bakwena Platinum 

Highway. 

Notable tourism assets: Sun City, Mmbatho Palms 

Hotel Casino Convention Resort, Pilanesberg National 

Park, 18 luxury lodges in Madikwe Game Reserve. 


www.nwpg.gov.za 

North West Development Corporation: 

www.nwdc.co.za 

Western Cape 

Capital: Cape Town 

Main towns: Stellenbosch, George, Plettenberg Bay, 

Beaufort West, Oudtshoorn, Worcester, Malmesbury. 

Population: 6 200 100 (2015) 


Premier: Helen Zille (DA) 

Key sectors: Agriculture, agri-processing, wine and 

grapes, financial services, manufacturing, tourism, oil 

and gas, boatbuilding. 

Infrastructure: Ports of Cape Town, Saldanha and 

Mossel Bay, Mossgas oil-to-gas refinery, Cape Town 

International Airport, Cape Town International 

Convention Centre, Koeberg nuclear power station. 

Notable tourism assets: Table Mountain, Garden Route 

National Park, Karoo National Park, West Coast National 

Park, Kirstenbosch Botanical Gardens, Cape Point, the 

Waterfront, Plettenberg Bay, Route 62, Zeitz Museum of 

Contemporary Art. 


www.westerncape.gov.za 

Wesgro: www.wesgro.co.za


Energy and the future 

South Africa’s exciting renewable energy programme is back on track. 

A 

new Integrated Resource Plan was released by South Africa’s 

Energy Minister in August 2018. This was a major event because 

the first Integrated Resource Plan (IRP) was printed in 

2010 and was supposed to be updated regularly to guide 

the nation’s approach to electricity. 

Instead, the release of updated IRPs was delayed. In that uncertain 

environment, there was a strong push for expensive nuclear options. 

The release of IRP 2018 brings certainty to the market again. Nuclear 

will not be considered again until at least 2030. The South Africa 

Photovoltaic Industry Association (SAPVIA) welcomed what it calls the 

“rational” draft Integrated Resource Plan. 

When South Africa ran out 

of power in 2008, a programme 

to get private investors to build 

renewable energy capacity 

was instituted. It was called the 

Renewable Energy Independent 

Power Producers Procurement 

Programme (REIPPPP). Between 

November 2011 and July 2016, 

South Africa received commitments 

of investments to the value 


26


of nearly R200-billion through this innovative and efficient programme 

with encouraged private investment into the South African power 

generation sector. 

According to the Department of Energy, the REIPPPP by 2016 had 

not only delivered multiple millions in investments, it also created 

more than 30 000 jobs and benefited local community development 

to the tune of R256-million. Figures released by the South African Wind 

Energy Association (SAWEA) showed shareholding for local communities 

reached an estimated net income of R29.2-billion over the lifespan 

of the projects. Some 14 000 new jobs are expected to be created, 

mostly in rural areas, and more than R30-billion has already been spent 

on Black Economic Empowerment (BEE) in the construction phase. 

In April 2018, new Energy Minister Jeff Radebe restarted the 

REIPPPP when he signed off on projects totalling R56-billion that 

will add 2 300MW to the national grid. There had been a long delay 

in the process as national utility Eskom argued against accepting 

more power purchase agreements while they had a surplus. Most 

of South Africa’s electricity comes from coal and Eskom is building 

two huge coal-fired power stations. 

Most commentators on the IRP 2018 have praised its basis in science 

and the fact that it has adopted the “least-cost” method of analysing 

options. With renewable energy costs having been dramatically reduced, 

the IRP concludes that wind, gas and solar power (photovoltaic) 

will be the three methods to be allocated the most new projects up 

to the year 2030. The other form of solar power (concentrated solar 

power, CSP) is very effective and some projects have been successfully 

commissioned, but it is relatively expensive. 

Despite the emphasis on renewables 

in the IRP, SA’s energy 

mix is still weighted towards 

coal. Two new power 

stations, Kusile and Medupi, 

are being built by Eskom and 

1 000MW has been allocated 

to private producers to build 

coal-powered stations known 

as Thabametsi and Khanyisa. 

The IRP has attracted criticism 

for enabling an expansion of 

the coal industry. 

Koeberg nuclear power station 

is due to be decommissioned 

soon after 2045. 

In commenting on the IRP 

2018, SAPVIA raised a question 

about the role of the Small-Scale 

Embedded Generation market 

in the form of facilities such as 

rooftop-PV installations and the 

growth in demand for LPG gas 

for cooking. The association 

stated that the 200MW allocation 

is insufficient to address what it 

believes is a growing market. 

POWER GENERATION TO 2030 

Technology New allocation to 2030 % of mix in 2030 

Wind 8 100MW 15% 

Gas 8 100MW 16% 

Solar (photovoltaic) 5 670MW 10% 

Concentrated solar power 300MW 1% 

Hydro 2 500MW* 6% 

Nuclear None 2.5% 

Pumped storage None 4% 

Coal 1 000MW 46% 

* This takes into account the possible Inga project in the Democratic Republic of Congo. 


Gas 


Gas in various forms is very much in the spotlight. South Africa’s neighbour 

Mozambique has large offshore deposits and a sub-committee of 

the Southern African Development Community (SADC) has been tasked 

with working out a master plan for the region. 

A study prepared by the Energy Centre of the Centre for Scientific 

and Industrial Research (CSIR) reports that wind and solar power (supported 

by natural gas, biogas and hydro-electric power) could be up to 

the task of providing “baseload” power. The base load is the permanent 

minimum amount of power that the grid must be able to deliver to keep 

the country working. There is special interest in natural gas as a source 

of a versatile and mobile back-up for the main types of renewable 

energy: if the sun goes behind a cloud or the wind does not blow, it is 

very easy to turn on the gas. 

This fits in well with the Department of Energy’s enthusiasm for 

gas-to-power. It is targeting the procurement of 3 126MW through its 

programme and intends spending R64-billion on port, pipeline, generation 

and transmission infrastructure in at three key ports, Richards Bay, 

Coega and Saldanha Bay. 

Hydraulic fracturing (fracking) has not been in the news for a long 

time but it has not been ruled out by the government. Controversy arose 

when this method of extracting gas was proposed for large parts of the 

central Karoo region. A bill currently working its way through parliament, 

the Mineral and Petroleum Resources Development Act (MPRDA), will 

deal with gas supplies and the contentious fracking issue. 

Financing 

The creation of an entirely new economic sector in a very short timeframe 

has been a boon for financing and banking. 

An innovative project was announced in 2018 with the bundling of five 

projects into one. All of the projects are being built by Enel Green Power 

but by creating one holding company to distribute the funds, Absa and 

Nedbank, the lenders, were able to reduce costs. Law firm Norton Rose 

Fulbright concluded the R3.5-billion financing arrangement. 

The support of two of South Africa’s biggest institutional investors, 

the Industrial Development Corporation (IDC) and the Public Investment 

Corporation (PIC), has been crucial in getting the renewable energy sector 

off the ground. They have also played a role in helping communities 

fund their participation in community trusts. According to Business Day, 

the PIC has so far invested in 16 unlisted projects and its total investment 

stands at R11-billion. The IDC’s 24 projects are valued at R14-billion and 

will contribute 1 100MW to the national power grid. 

Many partnerships between local and international companies 

have been established. South African partners are often local energy 

companies and representatives of 

residents. Typically, a community trust 

is established to represent the interest 

of the local community. 

Investment by black people into 

the RE programme is not limited to 

community trusts. Pele Green Energy 

is engaged with a photovoltaic plant 

at Touwsrivier in the Western Cape 

as a shareholder and as a provider of 

construction management services. 

Once the facility starts generating 

power, Pele will operate and maintain 

the plant. 

Among the international investors 

active are Enel Green Power 

(Italy), Scatec Solar (Norway), 

Globeleq (UK), Mainstream 

Renewable Power (Ireland), 

Gestamp Renewable Energies and 

Abengoa (Spain), Solar Capital 

(Phelan Energy Group, Ireland), 

SunEdison (USA), ACWA Power 

(Saudi Arabia), China Longyuan 

Power Group, (China), Engie (France), 

juwi Group (Germany) and Tata 

Power of India. The last-named 

company has teamed up with the 

energy unit of Exxaro Resources to 

form a company called Cennergi. 

Partnerships with foreign utilities 

or power companies are becoming 

more common, in part because the 

competition is bringing down the 

price which bidders are offering to 

sell power. This makes it difficult for 

South African firms to compete on 

their own. Many foreign investors 

such as large national utilities have 

strong reserves of cash and don’t 

need to borrow money. 

The new bank created by the 

five nations of BRICS, the New 

Development Bank (NDB), has 

made $180-million available to 

Eskom to help it integrate power 

from renewable energy sources to 

the national grid. 


28

Realising Africa’s 

Renewable Energy Potential 

Wind - Solar PV - Commercial & Industrial Solar Rooftop - Hybrid Solutions 

w www.genesis-eco.com 

m +27 (0)83 460 3898 

e davin@genesis-eco.com 

c/o Unit B10, Century Plaza, Heron Crescent, Century City, Cape Town 

PO Box 363, Newlands, 7725, Cape Town, South Africa

INTERVIEW 

Utilising South Africa’s 

natural assets more 

effectively 

The Director of Genesis Eco-Energy Developments, 

Davin Chown, describes his company’s vision for 

renewable energy in growing the economy. 

Davin Chown 

BIOGRAPHY 

Davin has been active in Genesis 

since becoming a shareholder 

in 2002. His experience in the 

renewable energy sector extends 

from 1995. He has been part of 

developing and commercialising 

the various companies in the 

Genesis group, which is developing 

over 2 500MW of renewable energy 

projects in South and Southern 

Africa, 600MW of which is part of 

the REIPPPP. Davin has been the 

Chairperson for SAPVIA since 2014, 

served on the board of SAWEA for 

four years and was a co-founder 

and Steering Committee member 

of the SA RE Council. He has also 

founded a number of sustainability 

consulting companies. 

What does your company do? 

Genesis Eco-Energy is one of South Africa’s pioneering renewable 

energy companies providing project development, management 

and operations services across a range of renewable energy technologies. 

This includes hybrid PV-biomass energy storage solutions 

and smart power solutions coupled with energy efficiency. Genesis 

develops, implements, owns and operates the projects. 

Where did you start? 

Jeffreys Bay Wind Farm was one of our first projects back in 2001. 

That started as a very small project which was a 15MW wind farm 

with 5.5MW pumped storage component. As the market changed 

the project changed and it became one of the very first successful 

large-scale wind farms as part of the Renewable Energy Independent 

Power Producer Procurement Programme (REIPPPP). 

That was a large project for a first project. 

When we started with Genesis we were one of the pioneering 

renewable energy companies in South Africa. Many people used to 

say renewable energy is only fit to be rural energy. As technologies 

matured the markets matured and people have come to understand 

the scope and scale and application of renewable energy as a 

modern energy source. We had an old saying which we borrowed 

and adapted: think big, start small and scale fast. It’s very similar 

to the succesful and rapid evolution of cellphones and personal 

communications. 

Obviously, the market changed once the national 

government was looking for power? 

We started off understanding that given climate change challenges 

and global market shifts, the whole move to clean, decentralised 

and distributed power would eventually catch up with South Africa. 

We spent a lot of time and energy in working with government to 


30

INTERVIEW 

get them to understand how renewable energy 

could play a role in achieving government’s economic 

and development objectives, ranging from 

power supply at a much more affordable rate 

right through to building new skills and catapulting 

South Africa into a new era. We started with 

that in 2001, way before the REIPPPP was even 

dreamt of. We had the vision, we had the tenacity 

and the wherewithal to stick it through – and 

that still holds today. It’s in our pioneering DNA. 

Together with others, we have been able to convince 

policy-makers that renewable energy has 

a fundamental role to play in reshaping the way 

that we deliver and use energy. 

I presume that you are pleased that there 

is an Integrated Resource Plan (IRP) and 

that RE is part of it? 

Yes, we are pleased. Renewable energy is starting 

to take its rightful place. The IRP in itself still needs 

to go a long way to reflect adequately the realities 

of the 4th Industrial Revolution. We think this will 

happen as South Africa comes to terms with all the 

demands for jobs and for economic growth. The 

economic challenges that we have today need to 

be reflected in the IRP. Renewables are uniquely 

positioned to drive economic growth. 

the needs of a local municipality and industries who 

were struggling with power quality. The project was 

born with the objective of strengthening the grid, 

strengthening power quality and playing a major role 

in economic development in the Jeffreys Bay area. 

We exited the project when we sold it on at financial 

close in Round One of the REIPPPP. 

Where else are you active now? 

We also secured two 50MW PV plants in Round One. 

In Round Three we were successful with three wind 

farms, all three of which are now operational and in 

which we still retain a 15% shareholding. The wind 

farms in the Northern Cape are Khobab, Loeriesfontein 

and Noupoort. We are actively developing projects in 

three Southern African countries. 

Did retaining your share represent a shift in 

thinking? 

Genesis is a South African born and bred company. 

We aim to hold on to our projects for the long term 

if we can. We have a long-term vision of owning 

and operating a significant portfolio of projects. 

Genesis is one of the few 100% South African-owned 

development companies that have been around for 

some time. We believe that South Africa has wonderful 

natural assets and they are under-utilised. The 

country’s natural resources and its human resources 

are under-utilised, and we’re finding innovative ways 

to harness both to the benefit our country and its 

people. 

Are you interested in technologies besides 

wind and solar? 

We talk about hydro-marine and bio-energy because 

we also have a very strong interest in the 

full spectrum of renewables. It is still early days for 

marine energy though it holds promise. 

What underpinned the decision to develop 

Jeffreys Bay and when did you exit the 

project? 

The team identified an opportunity for wind technology 

to play a role at local scale and deliver on 


Insulation 

> Hot insulation for piping, ducting, vessels and industrial 

buildings 

> Cold insulation for piping, vessels and the entire LNG 

operation chain 

> Acoustic solutions including silencers, noise hood, 

acoustic panels around construction sites 

Access Solutions Scaffolding 

> System scaffolds e.g. Kwikstage 

> Swing / Suspended or cradle scaffolds 

> Rope access 

> Mechanical lifts 

Fireproofing 

> Cementitious coatings 

> Intumescent coatings 

> Cable tray encapsulation 

Surface Protection/Speciality Coatings 

> Various abrasive blasting techniques including grit, hydro, 

slurry, dry ice and soda blasting 

> Application of specialised coatings to combat Corrosion Under 

Insulation (CUI) 

> Remedial coatings on online hot equipment and piping 

operating up to 250°C 

> Industrial cleaning including tank cleaning and lining 

> Concrete protection 

Asbestos Solutions 

> KAEFER is a registered Asbestos removal specialist contractor 

Industrial Sheeting and Cladding 

> Sheeting of industrial buildings e.g. boilers and precipitators 

Tel: +27 11 974 8123 | Fax: +27 11 974 4628 

Email: sales@kaefer.co.za | www.kaefer.co.za

KAEFER 

Celebrating 100 years of innovation and sustainable growth 

While we are a global player, we adopt a very strong local focus and ensure that we make an indelible footprint 

in all the locations where we are active. 

KAEFER team with their 3rd 

consecutive award for Painting 

Contractor of the Year at RBCT. 

Since its inception in 1918 in Bremen, a small town in 

Germany, KAEFER has developed into a market leader 

for asset integrity services and solutions in Industry, 

Marine & Offshore and Construction. With over 27,000 

employees in 30 countries at 2000 locations, we are a 

true global player – there for you all over the world. 

We offer a wide range of industry solutions such as 

insulation, access, surface protection, passive fire 

protection and asbestos removal to the South African 

and Sub-Saharan market. In everything we do, the client 

takes centre stage and we take pride in our efficient and 

innovative approach to overcoming challenges and 

providing services and solutions. 

“Together, we support our clients’ asset integrity by 

delivering reliable and smarter services and solutions 

throughout the entire life cycle.” 

We also pride ourselves in doing things the KAEFER way. 

It’s what makes us Recognised, Efficient and Different 

(RED) and is seen clearly in our consistent safety record, 

cutting-edge technical expertise and strong ethical values 

that guide us in everything we do. Furthermore, we’re 

driven by innovation and by doing things differently. We 

develop new and tailored solutions that benefit our clients 

and are frontrunners in digitalisation in our industry. We 

also assure quality, safety, cost-efficiency and continuous 

improvement with our substantial in-house expertise and 

fully integrated services. 

While we are a global player, we adopt a very strong 

local focus and ensure that we make an indelible 

footprint in all the locations where we are active. We 

have the pleasure to work with and contribute to the 

success of projects and maintenance contracts for 

clients such as SAPREF and Richards Bay Coal Terminal 

(RBCT) in the KZN region as well as Eskom power 

stations in Mpumalanga and Limpopo, namely Tutuka, 

Majuba and Matimba and Medupi power station 

among others. 

“Increasing our competitive strength by being 

Recognised, more Efficient and Different.” 

As part of our commitment to corporate social 

responsibility, we have completed several community 

projects in the KZN, Mpumalanga and Limpopo provinces 

where we operate. We strongly believe that sustainable 

empowerment is achieved through education; children 

are the leaders of tomorrow. With this focus on impacting 

South Africa’s future through education, KAEFER has, 

among other community projects: 

› Partnered with SAPREF by contributing towards a 

project that saw the building of two science labs at 

the Ogwini and Menzi High Schools in Umlazi. The 

project, owned and driven by SAPREF, involved 

converting a classroom at both schools into a fully 

equipped science laboratory complete with 

workbenches, cupboards, Bunsen burners, science kits 

and chemicals. Other teaching aids were also donated 

to the schools. 

› Given Phegelelo High School in Lephalale a much 

needed facelift to their facilities including classroom 

blocks, toilets and sports grounds. 

At KAEFER, we rely on our long history and business 

continuity which gives us stability and orientation. Our 

successful track record speaks for itself. And it also serves 

as a testament to the strength of our strategy, and our 

vision – to eliminate the energy waste.

INTERVIEW 

Kurt Maritz, Managing 

Director 

rt Maritz 

BIOGRAPHY 

Kurt Maritz holds a National 

Diploma in Accountancy and 

Computer Practice, but is 

more accustomed to developing 

businesses, as his track 

record proves. His first job was 

with First National Bank. While 

IOGRAPHY 

working in sales, Kurt met an 

rt Maritz 

electrical 

holds 

supplier 

a 

for 

National 

whom he 

went to work. His contracting 

loma section in Accountancy grew, and he decided and to 

mputer go on his Practise, own and started but Maritz 

Electrical in 2000. Through 

is 

re accustomed his leadership skills to and developbusinessesary 

outlook, as he now his employs track in re- 

vision- 

excess of 150 staff. The company 

has His benefited first small job busi- 

was 

rd proves. 

th First nesses, National grown skills Bank. and given While 

lifestyle improvements to staff, 

rking 

their 

in 

families 

sales, 

and 

Kurt 

communities. 

met an 

ctrical supplier for whom he 

nt to SOUTH work. AFRICAN His BUSINESS contracting 2019 

ction grew, and he decided to 

on his own and started Maritz 

World first for 

Maritz Electrical 

Lighting the way to 

new possibilities 

St George’s Park lighting quality is unique. 

What sort of work did you do in the beginnin 

Maritz Electrical is revolutionising stadium experiences. 

When we started, we were two companies helping ea 

Rosslind and I had a loose partnership. I did the mark 

execution. We did some basic electrical contracting. 

work we did on contract, we still have that relationshi 

later. It was for Technical Services of the City of Cape T 

electrical side of water and sanitation. 

A massive contract to install world-class lighting at the St George’s 

Park cricket ground in Port Elizabeth has given Cape-based lighting 

company Maritz Electrical a head-start as a national leader in LED 

and theatrics lighting for sports stadiums. 

As company founder and Managing Director Kurt Maritz says, 

“That’s the sort of project that comes around once in a lifetime.” 

The project was a global first because it made St George’s the 

So you found a niche? 

first stadium to have LED lights fitted with theatrics that was also 

compliant with International Cricket Council standards. 

The R27-million project was completed on time and on budget, 

despite installing lights on top of the Duckpond Pavilion at night 

in high winds. 

The response has been enthusiastic. For Kurt, the television 

experts provided the really important feedback. “We cared about 

SuperSport the most and they have been raving. If there are light 

and dark spots on the field the cameraman must remember to 

change the aperture. They said that the lighting was excellent.” 

Maritz And Electrical beyond wants the to be work the “go-to” for company the city? with respect 

to stadium lighting installations. Contracts in Bloemfontein and 

closer to home suggest this is already happening. “I am pleased 

to announce we are going to be doing something similar in our 

backyard, at Coetzenburg, but not including theatrics. Stellenbosch 

University has signed with us as part of a massive project.” 

For Kurt, the learning process has been exciting. “We are learning 

applications from our clients,” he says. “At St George’s for that 

We actively started looking for things that other elec 

either can’t do, don’t want to do or find really hard 

for the city was very difficult, but we had those skills 

work, which very few people specialised in. Certainl 

black companies doing that sort of work. 

We got more and more work and in 2004 we regist 

continued operating two businesses and that ran o 

years ago, when we very amicably parted ways. 

How did the stadium work come about? 

exciting time when you are waiting for an umpire’s decision, we did 

a heartbeat with sound and the lights that go with it. We also put a 

‘6’ in the lights. The umpires asked if we could keep the light level 

on the pitch the same and do the theatrics at the same time. The 

possibilities are endless. In athletics, for the 100 metres, you could 

kill all the lights and follow the guys down the straight.” 

Maritz Electrical is the approved installer of Musco Lighting. 

A visit to Musco headquarters in the US made Kurt aware of how 

the lighting system at a stadium can create new revenue sources 

for clients. As Kurt comments, “If you have a light show before the 

game, you have better crowd control and there is an opportunity for 

We asked, “What else is nobody else doing?” The answ 

and sports field lighting and maintenance. I had the p 

ing on the old Green Point Stadium. Sports field ligh 

most dynamic part of the business. 

So the 2010 Soccer World Cup was good for 

Interestingly, Maritz did not do one of the FIFA stad 

still one of our busiest periods ever because FIFA c 

Fund to 34build hundreds of community sports fields, a 

we got involved.

INTERVIEW 

vendors to sell memorabilia or food. The same when you leave, it 

creates a new revenue stream. We are learning as we move along.” 

Stadium lighting falls within the broader category of large-area 

lighting. The global move to LED lighting has been a positive 

thing for Maritz Electrical. In South Africa, however, Kurt notes that 

there is difference between the indoor and outdoor scenarios. 

For indoors, “everybody is going that route” but that return on 

investment (ROI) is somewhat different in the outdoor setting. 

“With street lighting and security lights (which burn for a 

long time) the ROI is good. For large areas like sewerage works 

or plants the ROI is something like three to five years and the 

power saving is there. That is not the case with sport stadiums, 

so the equation is different.” 

Maritz Electrical is active in large areas such as Cape Town’s 

Grand Parade, airport runway lighting and city council facilities. 

The company operates in the commercial, industrial and public 

sectors and offers a wide range of services. 

A new area for Maritz Electrical is reticulation and electrification: 

low-cost housing projects, street lights, road-side furniture 

and mini-substations. Says Kurt, “It is a big market and we can’t 

ignore it. Our new sales manager comes from this background 

and we are building skills in this area. We are involved in two major 

projects in the Western Cape, at Overstrand and Stellenbosch 

municipalities.” 

With an expanding workload, 

Maritz Electrical made a 

move in 2018 to new premises 

in Athlone. “We have moved 150 

staff from three branches into 

one customised 3 000-squaremetre 

facility. It is designed 

in such a way that we have 

enough space for 50% expansion. 

Half of the massive space 

we dry-walled so that we have 

a suite of offices.” 

There are no specific targets, 

but Kurt is clearly looking 

forward with anticipation: “We 

don’t have any ceiling we want 

to hit. Our engine is our sales 

department. As much work as 

they bring in, that’s how we 

will grow.” 

The staff of Maritz Electrical 

includes three Master 

Electricians and 75% of the staff 

complement is technical. 



Special Economic Zones 

Promoting industrial development via incentives. 

South Africa is investing in Special Economic Zones 

(SEZs) as a major plank of its industrial development 

policy. A range of incentives are available 

to attract new skills and develop new industries. 

Key goals behind the establishment of SEZs 

• To encourage industries to develop in clusters, leading 

to economies of scale, skills-sharing and easier access 

by suppliers 

• To create industrial infrastructure to promote investment 

• To promote cooperation between the public and private 

sectors 

• To use the zones as a launching pad for other plans to 

further development. 

Apart from attracting foreign direct investment 

(FDI) and boosting employment, 

SEZs can also play a role in helping to add 

new sectors or subsectors to an economy. 

South Africa is targeting a variety of 

sectors in SEZs around the country, but 

there is a emphasis on beneficiation, 

mainly of minerals but also agricultural 

processing. There is a strong feeling that 

South Africa can do much more with 

the product of its soils – whether that 

be using manganese to convert iron 

into steel or creating fruit juices out of 

apples and pears. 

Special Economic Zones are created 

in terms of the Special Economic Zones 


36


Act of 2014 (Act 16 of 2014). The act defines 

SEZs as “geographically designated areas of 

the country that are set aside for specifically 

targeted economic activities, and supported 

through special arrangements and systems 

that are often different from those that apply 

to the rest of the country”. Lower corporate 

tax rates and duty-free imports are among the 

advantages that accrue to investors. 

SEZs come in different forms: South Africa 

has several existing Industrial Development 

Zones (IDZs) and a Free Trade Port (FTP). The 

Coega IDZ (Nelson Mandela Bay Metropole) 

and the Dube TradePort at the King Shaka 

International Airport outside Durban are two 

well-known examples. 

The most recently licensed SEZ is the 

Musina-Makhado SEZ in Limpopo, where the 

facility’s strategic location on the border with 

Zimbabwe is allied to the strong mineral resource 

in the surrounding countryside. 

Other licenced IDZs are at Saldanha Bay, East 

London and Richards Bay. The Dube TradePort 

aims to leverage its proximity to an airport. In 

the same way, aerotropolis developments are 

mooted for Ekurhuleni (OR Tambo International 

Airport) and Cape Town International Airport. 

Coega IDZ has attracted huge investments 

from a variety of Chinese firms in the engineering, 

solar manufacturing and automotive sectors. 

This includes an investment from Beijing 

Automobile Corporation (BAIC) which took a 

65% stake in a multi-billion-rand joint venture 

with the Industrial Development Corporation 

with the intention of producing 100 000 vehicles. 

First Automotive Works (FAW) has a R600- 

million assembly plant in Zone 2 at Coega. 

Richards Bay (pictured), apart from being 

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

also a registered Industrial Development Zone 

(IDZ) and consequently is in a position to attract 

investors in a range of sectors. Recent developments 

at RBIDZ have seen an investment in 

an oil and gas facility and it is hoped that the 

ocean will yield finds of gas to provide cheap 

feedstock. 

The Maluti-A-Phofung Special Economic 

Zone takes advantage of the strategic position 

Harrismith holds in the Free State’s northeastern 

corner. The N3 highway carries huge 

volumes of cargo between Gauteng and the 

ports of KwaZulu-Natal so it is logical that the 

first focus of this SEZ is logistics. 

Plans are far advanced for the official recognition 

of an SEZ at Upington in the Northern 

Cape. The 400ha site of the Upington SEZ is 

close to the regional airport and is well served 

by access roads. One of the goals is to capitalise 

on the existing solar power industry by 

promoting special investment packages to 

investors in that field, and encouraging the 

development of skills and services to support 

that sector within the SEZ. 

Another type of SEZ is an Export Processing 

Zone (EPZ). All of these interventions are intended 

to form of broader trade and investment 

plans such as National Development Plan 

(NDP) and the Industrial Policy Action Plan (IPAP). 

The NDP is a broad-strokes plan that seeks to 

coordinate development in a range of sectors, 

and promotes ambitious infrastructural projects. 

South Africa’s most recent IPAP has a manufacturing 

focus, so beneficiation fits well into 

the idea of diversifying and strengthening the 

country’s ability to make things. 

In the context of the new and burgeoning 

renewable energy sector, the state (through the 

Department of Trade and Industry, dti) can pass 

legislation that requires developers to increase 

the level of local content on the solar panels or 

wind turbines that are used. 

Specific incentives relating to energy savings 

and reductions in environmental impact 

are available, both from Eskom and the dti. 

Within the dti’s Manufacturing Competitiveness 

Enhancement Programme, there is a Green 

Energy Efficiency Fund, all of which are designed 

to make investment more attractive. 


PROFILE 

Upington Special 

Economic Zone 

More than 500 hectares of prime land is available for investors. 

Upington, the second-biggest town in the Northern 

Cape, is located along the banks of the Orange 

River and is a popular tourist destination 

with warm weather and long sunny days. The 

Northern Cape is ideally situated to serve the following 

industries: solar energy, mining, agricultural, aviation and 

other industries. The Upington SEZ has a geographically 

designated area set aside for specifically targeted economic 

activities to accelerate industrial development. 

In the heart of the Green Kalahari, right next to Upington 

International Airport, there is more than 500ha of prime land 

available to be utilised by investors (440ha for the Industrial 

Park and 85ha for the Aviation Park). 

Upington is situated 130km from the Namibian border 

post and about 350km from the border post to Botswana. 

Upington also has good access roads such as the N10 and 

the N14, effectively linking up Namibia and Botswana. 

The Upington International Airport has a 5km-long 

KEY CONTACTS 

Mr Thobela Dikeni, Chief Executive Officer, NCEDA 

Tel: +27 53 833 1503 and 060 997 7202 

Babalwa Mbobo, Sector Specialist, Upington SEZ 

Tel: +27 54 333 1136 and 071 016 5813 

Email: bmbobo@upington-sez.co.za 

Dr. Mphulane Ramorena, Project Executive 

Tel: 076 442 4437 

Email: mramorena@upington-sez.co.za 

Physical address: 24 Schroder Street, 

Upington 8801 

runway, the longest civilian runway in the southern 

hemisphere. The airport’s location and the dry, arid 

climate add to making the location particularly favourable 

for the establishment of an Aviation Park to serve 

the global markets. 

The Dawid Kruiper Local Municipality (DKLM) has 

made the land available for the development of the 

Upington SEZ. The development will be divided into 

seven phases. The ZF Mgcawu District has a well-developed 

economy and active business community supported 

by government and government parastatals. 

Industrial hub 

The main objective for the proposed Upington SEZ 

in the Northern Cape Province is to establish a worldclass 

industrial hub to service the Southern African 

Development Community (SADC) region in the following 

sectors: 

• Renewable energy with the focus on solar 

component manufacturing 

• Aeronautics through the development of an 

Aviation Park 

• Mineral beneficiation 

• Agro-processing 

• Astronomy exploration 

• High-value micro technology. 

Together with our partners, the Northern Cape 

Economic Development Trade and Investment Agency 

(NCEDA), the Northern Cape Department of Economic 

Development and Tourism, the National Department 

of Trade and Industry (dti) and the Airports Company 

South Africa (ACSA), we invite all interested investors 

to contact us. 

NCEDA: 6 Monridge Office Park, Cnr Kekewich & 

Memorial Street, Kimberley 8301 

Tel: +27 53 833 1503 

Fax: +27 53 833 1390 

Website: www.nceda.co.za 


38

The Upington SEZ 

boasts several 

advantages 

INTERVIEW 

Thobela Dikeni, CEO of the Upington SEZ, explains how 

climate and location enhance the value proposition. 

Thobela Dikeni 

BIOGRAPHY 

Thobela Dikeni has held various 

managerial positions in the 

private sector, including senior 

positions at Standard Bank and 

FNB (where he was Director Public 

Sector Banking). He was Director 

Business Development and Africa 

for Naspers’ subsidiary Paarl 

Media. He has studied Economics 

and Management and attended 

several executive development 

programmes at international 

institutions. He is currently studying 

for a Master’s degree in Information 

and Knowledge Management. He 

has served on private and public 

sector boards. 

What sectors are you hoping to attract to the SEZ? 

In the first phase, renewable energy and aviation. These sectors are the 

focus of the Economic Development sector of the Northern Cape and 

in line with the Provincial Growth and Development Strategy (PGDS). 

How does the location of the SEZ support the business 

case for investing? 

Renewable energy: Upington is an area with warm weather and long 

sunny days for solar energy generation. The increasing and sustained 

demand for photovoltaic (PV) and concentrated solar power (CSP) 

systems will produce a number of assembly opportunities for PV 

panels and inverters as well as CSP in-field mirrors, structures and backward 

integration of manufacturing facilities. European and Chinese 

companies continue to express interest in establishing solar energy 

component manufacturing and assembly plants. About 440ha of land 

is set aside for the development of a solar farm with a complete EIA 

for industrial development. 

Aviation: An arid climate which is not susceptible to accelerated corrosion 

and deterioration and the availability of relatively low-cost open 

land are positive factors. Upington is close to the northern border of 

South Africa which makes it convenient and strategic from the African 

continental perspective and its relative remoteness enhances security 

considerations. 

How important is the airport? 

Successful SEZs are attached to ports, whether airport or sea port. 

Therefore, the proximity to an airport will assist the value proposition 

and logistics connectivity of the SEZ. Upington Airport has an unusually 

long runway (5km) that serves as a designated African landing site for 

the shuttles of National Aeronautics and Space Administration (NASA). 

What progress has been made in getting the SEZ off 

the ground? 

Positive feasibility studies have been conducted. Environmental Impact 

Assessments have been completed. A Record of Decision has been 

received. The application for designation was submitted in May 2018. 


PROFILE 

Maluti-A-Phofung Special 

Economic Zone 

Attractive incentives and good infrastructure make for a compelling 

investment proposition. 

The Maluti-A-Phofung Special Economic Zone was officially 

launched on 25 April 2017. The Maluti-A-Phofung Special 

Economic Zone (MAP SEZ) is strategically located in the eastern 

part of the Free State Province. Its location and access to good 

transport infrastructure provides it with an advantage as a logistics hub. 

The main objective of the MAP SEZ is to attract foreign and direct 

investment and to stimulate the local economy as well as creating 

meaningful work opportunities. The SEZ will further provide support 

to local businesses, skills transfer and accelerate the establishment of 

manufacturing activities in creating local and international trade with 

value-added benefits. 

The zone has 1 038ha of land which is divided into four precincts, 

including one for cross-docking and a container terminal. The proximity 

to major agricultural production areas makes an attractive investment 

destination for food processors. Taking advantage of its central location 

on the N3 road corridor between Johannesburg and the busiest port in 

South Africa, Durban, the Maluti-A-Phofung Special Economic Zone’s 

ultimate value proposition is to create a prosperous trade city with a 

functional trade ecosystem. 

Sectors 

The main sectors of the Maluti-A-Phofung Special Economic Zone are: 

• Automotive 

• Agro-processing 

• Pharmaceuticals 

Incentives 

A number of incentives are available to investors, including the use 

of a Customs Controlled Area tailored for manufacturing, storage, 

CONTACT DETAILS 


• ICT 

• Logistics 

• General processing. 

Contact person: Maphoka Setai, Office Manager 

Address: Cnr of De Lange and Amanda street, Sthiane, 

Harrismith 9880 

Tel: +27 51 4000 800 

Email: maphoka@mapsez.co.za 

Website: www.mapsez.co.za 

40 

repackaging, processing and 

beneficiation: qualifying entities will 

pay15% tax (not 28%), 10% rebate on 

buildings or improvements for 10 

years, employment tax incentives 

reduces the amount of PAYE, grants 

are available to support machinery 

for production. 

A One-Stop Shop strategy has 

been introduced to reduce bureaucracy 

and red tape for government 

approvals and applications processing, 

permits and licences. 

Achievements 

MAP SEZ has attracted a number 

of investors which have been approved 

by the National Department 

of Trade and Industry (dti) for top 

structure funding to the value 

R200-million. The investment value 

created as a result amounts to R550- 

million over the period of five years. 

A landmark investment into the 

MAP SEZ occurred with the launch 

in June 2018 of the Kevali Chemicals 

plant. Kevali produces products for 

use in hygiene and sanitation, watertreatment 

and adhesives. The investment 

forms part of the promotion of 

black industrialists by the dti. 

Small businesses have been 

empowered through the awarding 

of procurement contracts 

for goods and services. The local 

community has been empowered 

through the provision of jobs to 

locals on all the completed and 

ongoing capital projects.

INTERVIEW 

Bringing work 

opportunities and skills 

transfer 

The CEO of the Maluti-A-Phofung Special Economic Zone, 

Mpho Mgemane, relates how new investments are ramping up. 

Mpho Mgemane 

How does the MAP SEZ benefit from its strategic location? 

The zone is strategically situated on the intersection of the N3 and N5 

highways. These are some of the country’s most important and busiest 

freight routes and provide the MAP SEZ with prime access to the busy 

Durban port, the large Gauteng commercial market, the Port Elizabeth 

and Cape Town ports and also provide a link to imports and exports to 

and from SADC countries. 

BIOGRAPHY 

Mpho Mgemane graduated with 

an honours degree in Industrial 

Psychology from the University 

of South Africa. She was born 

in Soweto, Johannesburg, but 

attended high school in Qwa 

Qwa. She acquired considerable 

knowledge in asset capital 

funding and deal-making during 

her time with Nedbank, Absa 

and Standard Bank. After a 

spell as Executive Director of 

the Food Gardens Foundation, 

Mpho led the Expanded Public 

Works Programme of the Free 

State Provincial Government and 

became MAP SEZ CEO in 2016. 

What are the main sectors you are targeting to invest in 

the facility? 

There are six priority sectors: automotive, agro-processing, logistics, 

general processing, ICT and pharmaceuticals. Agro-processing is our 

main targeted sector. 

How far advanced is infrastructure development at the 

SEZ? 

Bulk infrastructure development of the park is being undertaken in three 

phases. Phase 1 Bulk has reached over 75% completion and is scheduled to 

be completed by January 2019. The subsequent phases will be led by the 

coming of new investments. We have also signed on three new investors 

with their top structure construction scheduled to start in February 2019. 

What is the significance of a chemical company deciding to 

locate their factory at MAP SEZ? 

This is our first official investment as an SEZ. The chemical plant will be 

relocated to its new custom-built facility following its construction. The 

chemical plant has acted as a live advertisement for the SEZ to other investors 

as the Harrismith area is not well known as an industrial hub. This facility 

not only brings work opportunities to the area, but we are looking forward 

to the skills transfer that will be made possible through its operations. 

What other significant investments have there been? 

We have two abattoirs (one beef abattoir and one pork abattoir) with construction 

to commence in the near future. We are also finalising investment 

deals with another chemicals plant, a human hair manufacturer, a beverage 

processing plant, a farming vehicle assembly plant and a biogas facility. 



Healthcare 

Health counselling at work is a growing trend. 

One of South Africa’s most innovative and successful manufacturing 

companies signalled in 2018 that its growth 

path is continuing. Aspen Pharmacare sells medicines and 

products in 150 countries from 25 manufacturing plants 

at 17 sites. In 2017, revenue was R41.2-billion. 

The opening in May 2018 of a R1-billion specialised product 

facility in Port Elizabeth will add 500 jobs to the existing complement 

of 2 000 staff members. The new plant will make products for 

chronic conditions, a new departure for the company which until 

now has focussed on generics. Annual production is planned of 

about 3.6-billion tablets. 

South Africa has one of the world’s biggest HIV/Aids programmes. 

The National Department of Health’s Centralised Chronic Medicines 

Dispensing and Distribution programme aims to reach six-million 

patients on treatment by 2021: it is currently serving 4.4-million patients. 

In mid-2018, Pharmacy Direct, an Afrocentric business, spent 

R100-million on upgrading a warehouse for distributing medicines 

to state patients. 

This business is likely to grow if the state goes ahead with plans 

for National Health Insurance. The NHI intends to create a single fund 

that will buy services on behalf of all South Africans. 

South Africa’s pharmaceutical sector is worth approximately 

R20-billion annually. Although there are more than 200 pharmaceutical 

firms in the country, large companies dominate, with Aspen 

(34%) and Adcock Ingram (25%) the key players, followed by Sanofi, 

Pharmaplan and Cipla Medpro. A number of large pharmaceutical 

firms have made significant investments. The National Association 

of Pharmaceutical Manufacturers (NAPM) has re-branded as Generic 

ONLINE RESOURCES 

Generic and Biosimilar Medicines of Southern Africa: 

http://gbmsa.org 

National Health Insurance: www.health.gov.za/index.php/nhi 

Innovative Pharmaceutical Association South Africa: 

http://ipasa.co.za/ 

South African Medical Research Council: www.mrc.ac.za 

South African Medical Technology Industry Association: 

www.samed.org.za 

SECTOR INSIGHT 

National Health Insurance 

could be a game changer. 

and Biosimilar Medicines of 

Southern Africa. 

A new field opened up in the 

pharmaceutical industry when 

the South African Health Products 

Regulatory Authority (SAHPRA) 

gave the go-ahead for the production 

of a biosimilar drug in 

July 2018, the first time this has 

been allowed in South Africa. 

Teva Pharmaceutical Industries 

became the first company to 

win a licence with its version of 

Amgen’s filgrastim, a white blood 

cell booster. 

Taking health education and 

counselling into communities 

and the workplace is a trend that 

is growing. A focus on prevention, 

risk assessments and profiling 

assists people in avoiding illness 

or managing their health. 

A cheap plastic heart valve, research 

on radiation treatment of 

cancer using Gold Nano particles 

and posture support wheelchairs 

and positioning devices that allow 

greater independence and 

participation of disabled people 

– these are some of the inventions 

and innovations coming out of 

the Western Cape health research 

and manufacturing sector where 

provincial and national funding is 

available for innovation. 


42

INTERVIEW 

Selfmed Medical Scheme 

Christo Becker, the Principal Officer at Selfmed Medical Scheme, 

outlines the advantages of a self-administered scheme. 

Christo Becker 

BIOGRAPHY 

Christo started his 21-year career 

in healthcare as a paramedic in 

Fire and Disaster Management 

Services. In 2001 he completed 

an MBA with the intention of 

moving his career towards 

hospital management. He has 

worked as hospital manager 

in several private facilities. 

His passion for people and 

strategy has ensured that the 

hospitals he has managed have 

grown rapidly while focusing 

on sustainability. With selfmotivation 

and a commitment to 

continual improvement, Christo 

implements positive changemanagement. 

How did Selfmed begin and how has it evolved? 

The Scheme initially formed part of the Sanlam Life Insurance stable, created 

in 1965 and formally registered in 1972. This makes Selfmed one of the most 

experienced medical aid schemes in the industry. At Selfmed we have a handson 

approach, and this resulted in our taking control of our own Client Services 

Centre, or Excellence Centre in 2006. We thereafter progressed to taking over 

the full administration function in 2010; also recently bringing our Managed 

Healthcare inhouse. 

What is your market? 

Historically membership comprised individuals and their families. The introduction 

of the Selfnet options in 2015 and 2016 allowed us to reach a younger 

audience. This was also the opportunity to branch out into corporate marketing, 

offering membership to blue-collar employees. We have seen great success in 

this area. 

Is there flexibility for clients? 

The scheme currently has five products: Selfmed 80%, Med Elite, Selfsure, Med 

XXI, Selfnet and Selfnet Essential. Each product is designed specifically for a life 

stage, as the needs of a member changes. As the person advances in life and 

starts a family they will move towards the Med XXI or Selfsure options, for example, 

which have a wider range of benefits relevant to a young family. 

How is Selfmed handling ever-rising costs? 

The biggest challenge facing the healthcare industry is the significant rise in 

healthcare costs, with healthcare inflation exceeding general inflation. This 

compels us to proactively introduce mechanisms to manage these costs. Selfmed 

is applying machine learning to the claims database to draw a more accurate 

picture of a member’s specific needs. The information can then be used to 

engage members on an individual basis – if we can intervene early it is to the 

benefit of all parties. 

How does SelfMed Medical Scheme differentiate from competitors? 

In a traditional medical aid/administrator environment all administered functions 

rest with an administrator. As such, a medical aid would be fully dependent on 

its outsourced administrator to inform it of any issues relating to its members. 

Being fully self-administered allows Selfmed to take total ownership of all its 

member interactions and can address any administrative problems or complaints 

immediately. We do not have an electronic routing system, you speak to an 

individual. This personalised hands-on approach is fundamental to our model 

of building a credible member experience. 



Business in Africa 

Trading with African neighbours is set to become easier. 

The signing of the Kigali Declaration in March 2018 marks a significant 

shift in expectations for intra-African trade. Regarded 

as the first step towards the establishment of a Continental 

Free Trade Area (AfCFTA), the commitment shown by African 

political leaders shows that the issue is receiving priority status. 

The continent’s population of 1.2-billion represents a huge and 

potentially lucrative market, with the 55 members states of the 

African Union having a combined gross domestic product (GDP) 

of $2.5-trillion. However, many African countries have stronger 

trading ties with countries on other continents that they do with 

their neighbours. 

The reasons for this are long-standing and complex and will require 

investment in logistics and infrastructure to overcome. But political 

will is a major component in the equation and the Kigali Declaration 

shows an intention to make trading among Africans easier. 

An AfCFTA Business Forum has 

been established to allow for private 

sector engagement with the 

formulators of policy. This should 

allow for realistic and workable 

trade agreements. The United 

Nations Economic Commission 

for Africa (ECA) has suggested 

that by the year 2022, the AfCFTA 

could lead to an increase in intra- 

African trade by as much as 52%. 

Fully 30% of South Africa’s 

exports are to other countries in 

Africa, but a massive 83% of this 

volume is into Southern Africa. 


44


This means that the potential for South Africa to grow its exports into 

other parts of Africa is enormous, if the infrastructural obstacles can 

be overcome. 

The Southern African Development Community (SADC) is a 

16-member inter-governmental organisation with its headquarters 

in Gaborone, Botswana. Other members include South Africa, Lesotho, 

Malawi, Namibia, Tanzania, Comoros and Mozambique. 

SADC is one of several regional organisations on the continent and 

there have been moves in the past for cooperation between these 

bodies. For example, a tripartite summit was held between the leaders 

of the Common Market for Eastern and Southern Africa (COMESA), the 

East African Community (EAC) and SADC. The AfCFTA may supercede 

these agreements as it applies to all of Africa. 

SADC’s theme for 2018/19 is “Promoting Infrastructure Development 

and Youth Empowerment for Sustainable Development”. This is an 

extension of the body’s focus on industrialisation, while also putting 

the focus on infrastructure development, youth empowerment and 

sustainable development. 

The 38th summit of SADC held in Namibia in 2018 approved the 

creation of the SADC University of Transformation, in the form of a 

virtual university. This is further intended to support industrialisation 

through subjects such as technology transfer, innovation, digital 

and knowledge economy, entrepreneurship, commercialisation and 

enterprise development. SADC has a Revised Regional Indicative 

Strategic Development Plan (RISDP) 2015-2020, which deals with 

industrialisation, regional infrastructure, agriculture and strategy. 

Corridor development is an important part of growing intra-African 

trade. Within the corridors of development, red tape and infrastructure 

are other key elements. 

South African retailer Shoprite spends about R20 000 per week in 

permits, and long waits at border posts are routine. But the Chirundu 

one-stop border post in Zambia has reduced transit times by a third. 

Passenger transport delays have been reduced from three hours to 

30 minutes and freight is now cleared in one day instead of three. 

A number of corridor projects are in the pipeline or have already 

been implemented. The Maputo Development Corridor has successfully 

linked the thriving industrial and business centre of Gauteng Province 

in South Africa with the Mozambican port city of Maputo. The idea 

of corridors has been adopted by the Infrastructure Consortium for 

Africa (ICA), and several corridors have been conceptualised since that 

decision, for example the Northern Corridor of Central and East Africa. 

A corridor strategy relies on infrastructure, with inter-related plans 

being developed involving the upgrading and standardisation of 

facilities at ports, railway lines, customs posts and energy projects. 

South African rail, ports and pipeline operator Transnet is already 

very active in African countries north of the South African border and 

is intending to offer its services more widely. 

The Sustainable Development 

Investment Partnership (SDIP) 

comprises 30 institutions which 

aim to see 16 African infrastructure 

projects (valued at more 

than $20-billion) carried out. The 

founders of the SDIP were the 

World Economic Forum (WEF) and 

the Organisation for Economic 

Co-operation and Development 

(OECD) and other members now 

include the Bill and Melinda Gates 

Foundation, the Senegal Strategic 

Investment Fund (FONSIS), the 

US Agency for International 

Development (USAID), the 

Industrial Development 

Corporation of South Africa (IDC) 

and the Development Bank of 

Southern Africa (DBSA). 

The Export Credit Insurance 

Corporation of South Africa 

(ECIC) exists to help trade and 

investment across borders. ECIC 

can provide insurance for bank 

loans that are taken by investors 

and South Africans can get insurance 

for investments and for small 

and medium enterprises there is 

a product available (performance 

bonds to anyone exporting 

capital goods and services. 

The South African Department 

of Trade and Industry plays a key 

role in terms of promoting trade 

between South Africa and the 

rest of Africa, but also supports 

regional bodies such as SADC 

and promotes the kind of integration 

contained in the plans of 

the New Partnership for Africa’s 

Development (NEPAD) and the 

African Union’s Agenda 2063. The 

dti’s Africa Export Council (AEC) 

was inaugurated in 2016 with the 

goal of promoting South African 

products and services in Africa. 


FOCUS 

Billion-dollar intra-African 

financing programme 

launched 

The ECIC proudly supports South African exporters and investors. 

A $1-billion financing 

programme 

The Export Credit Insurance Corporation of South Africa SOC 

Limited (ECIC) was formed as a dedicated export credit 

agency to cater for medium to long-term export transactions. 

The short-term transaction market was amply catered 

for, but medium to long-term export transactions still had a need for 

a dedicated export credit agency, hence the formation of the ECIC. 

Acting as a catalyst for private investment, the ECIC steps in where commercial 

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

Along with the ECIC’s major shareholder, the Department of Trade and 

Industry, the ECIC makes use of market research tools and specialised 

business development units to create new insurance products that 

support the government’s export promotion objectives. The revised 

performance bond insurance product, which was launched in 2016, 

is one such example. 

“The ECIC has recently developed new products, including lines of 

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

catalyst for an increased lending capacity by financial institutions by 

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

way, it creates a framework for both re- and coinsurance,” explains the 

Chief Executive Officer, Kutoane Kutoane. To this end, it has adopted 

a comprehensive plan of action aimed at actualising cooperation 

programmes for mutual benefit in conjunction with, among others, 

BRICS ECAs, Afreximbank and African Trade Insurance. The ECIC is also 

able to price African risk more competitively, given its knowledge of 

the African market. 

In 2018 the ECIC, in partnership 

with the African Export- 

Import Bank (Afreximbank), 

launched the South African- 

Africa Trade and Investment 

Promotion Programme 

(SATIPP), a $1-billion financing 

programme to promote and 

expand trade and investments 

between South Africa and the 

rest of Africa. 

The financing institutions 

will work together to identify, 

prepare and appraise trade 

transactions and projects, 

explore co-financing and 

risk-sharing opportunities 

and share knowledge, with 

particular emphasis on intra- 

African trade matters, through 

technical cooperation, staff 

exchange, research and joint 

events. 

The joint initiative will support 

businesses through capacity 

building and market information 

initiatives. It will also 

provide advisory services and 

guarantees to South African 

investors seeking trade and 

investment opportunities in 

selected African countries. 


46

SUCCESSFULLY GROWING OUR 

PORTFOLIO IN FRONTIER MARKETS 

Since 2001 we have continued to provide commercial and political risk insurance for cross-border 

transactions, offering risk mitigation solutions to South African exporters of capital goods and 

investors . We have partnered with credible financial institutions and believe through partnerships 

economic growth can be achieved. As Export Credit Insurance Corporation of South Africa (ECIC) we 

are committed to supporting our South African businesses who export and invest in capital projects 

beyond our borders. 

If youʼre planning on exporting to or investing in capital projects beyond our 

borders, contact ECIC for assistance 

+27 12 471 3800 | info@ecic.co.za | www.ecic.co.za 

ECIC is a registered service provider with the FSB No. 30656 

In partnership with


Investing in Lesotho to 

become easier and faster 

The new Lesotho National Development Corporation (LNDC) Strategic 

Plan is outlined by the incoming Chief Executive, Mohato A Seleke. 

As the main parastatal of the Government of Lesotho, the 

Lesotho National Development Corporation (LNDC) is 

charged with the implementation of the country’s industrial 

development policies. The corporation’s role is to promote 

Lesotho as an attractive investment location for foreign, domestic 

and indigenous investors. The LNDC is the first point of contact for 

investors who intend to set up operations in Lesotho. In 2016, the 

LNDC received an Investment Promotion Award from UNCTAD (United 

Nations Conference on Trade and Development) at the 14th UNCTAD 

Conference. 

We are a commercially operated entity that has been making good 

profit and maintaining a healthy balance sheet in striving to pursue 

its founding mandate and higher purpose to the people of Lesotho. 

We are committed to moving into the next five years with a new and 

strong sense of meaning: to make an impact in a truly fundamental way 

in Lesotho’s economy. To this effect we have developed and launched 

a Strategic Plan 2018-2022 which intends to mobilise our private sector 

and the resources at our disposal around one common purpose, to 

develop the first generation of Basotho industrialists. This is crucial to 

lifting thousands of rural communities out of poverty and unemployment 

by consciously mainstreaming their participation in the supply 

chains of strategic investments. 

This is not only about jobs. It is 

also about raising income levels 

and creating generational wealth 

and capital gains for the people of 

Lesotho. This is our raison dêtre. 

We seek to put significant financial 

resources and technical know-how 

into a sector where over just 70% of 

our people earn a living, subsistence 

agriculture. This is critical to realising 

the ideals of shared, inclusive and 

sustainable growth as espoused in 

the National Strategic Development 

Plan II (NSDP II). We are repositioning 

the country as an agricultural 

powerhouse in Southern Africa by 

developing local supply chains and 

plugging into regional value chains. 

We have identified 21 priority 

products which already have 

international market access or hold a 

great potential to do so. These include 

meat and meat products, fruits and 

vegetables, utilising our abundant 

and quality natural resource. The 

textiles and apparel manufacturing 

value chains also hold potential and 

we aim to gain a bigger share in the 

light-engineering value chain. 

We are aiming to partner with, 

support, incentivise and reward 

leading export-oriented companies 

by scaling up their productive 

capacity, facilitating international 

market access and integrating them 

into supply chains. 


48

National champions 

Secondly, we are going to set up new companies, or national 

champions, within the priority areas and related product categories. 

We have already made great strides here to attract the necessary 

Foreign Direct Investment by initiating partnerships with renowned 

regional and global players in those target product lines. We 

can no longer afford to look only inward within the geographic 

borders of Lesotho in diversifying our economy. We are talking to 

strong partners and are seeking more of those to initiate, promote 

and facilitate the development of vertically integrated industrial 

activities. The intention is to establish national champions that are 

capable of competing at par with their regional and global peers 

in strategic industries, particularly in manufacturing and hightech 

agri-processing. For the first time, building industries and 

diversifying our economy will mean cross-border acquisitions of 

strategic assets, raw materials, distribution channels and technology 

by these national champions. This represents a real chance to 

turn the tide for Lesotho. These companies will be pitched at the 

necessary scale and scope with the right technology, product and 

process certifications and with top talent to lead them. 

Entering foreign and regional markets early is no longer an 

option for us as a country, but it has now become a vital necessity. 

With this strategic roadmap, we are flipping our resource allocation 

almost completely, to cover talent, capital and time commitment. 

Activities in high-value manufacturing and high-tech agri-business and 

related supply chains will consume a significant portion of these resources. 

In the next five years, we are looking at modern high-tech agriculture 

as an area for big business, big investment,and big impact in terms of 

jobs, incomes and overall economic competitiveness. In manufacturing, 

Basotho entrepreneurs will be integrated into local, regional and global 

supply chains. We will meticulously assess and evaluate the impacts of 

these investments on the economy, on social equity and the environment. 

Thirdly, in line with the NSDP II, we aim to facilitate further investments 

in our national priority sectors such as tourism and the 

creative industries as well as the development of infrastructure and 


Lesotho National Development Corporation 

Address: Development House, P Bag A96, Kingsway 

Road, Maseru 100 

Contact person: Marina Bizabani, Foreign 

Investment Manager 

Tel: +266 22 312012 

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

Website: www.lndc.org.ls 


Mohato Seleke joined the 

Lesotho National Development 

Corporation in December 2017. 

Within six months he released 

a five-year corporate strategy 

mapping the direction for the 

development of industry, and 

its contribution to the creation 

of inclusive economic growth 

in Lesotho. 

technology-based industries. We are 

keen to welcome the world to experience 

our mountainous scenery, green 

summers and snowy winters on their 

visits to Lesotho or in consuming film 

and digital products made in Lesotho. 

We recognise that a superior strategy 

and a winning business model are 

not enough. We are therefore building 

our nation brand “Brand Lesotho” 

and undertaking a reform process to 

streamline our investment climate 

to deliver on our promise. This new 

strategic posture also demands a reconfigured 

organisational platform. 

The LNDC is therefore being realigned 

to deliver on its key performance parameters 

with speed and excellence 

in execution. 

I invite investment and technical 

partners to come and build this new 

impactful and rewarding journey of 

Lesotho’s with us. 



Botswana: investment and trade hub 

A fast-growing economy at the heart of Southern Africa. 

diamonds in the world by value. Its people have a 

rich, diverse culture and embrace all who come to 

Botswana with a welcoming warmth. The official 

language of the country is English; Setswana is the 

national language. 

• Gross Domestic Product 2016: $15.6-billion 

• Per capita GDP: $7 018 

Investment Opportunities 

Botswana is a peaceful country with a 

fast-growing economy at the heart of 

Southern Africa, bordered by Namibia, 

Zambia, Zimbabwe and South Africa. Its 

central location makes Botswana the perfect gateway 

for reaching the whole of the Southern African 

Development Community (SADC), making it the 

ideal investment and trade hub. 

With a stable political system, real GDP growth 

rate of 4.3% (2016) and an adult literacy rate of 83% 

(World Bank), Botswana truly is an ideal investment 

destination. 

Botswana has deservedly become a favoured 

destination for international tourists as a land of unmatched 

beauty, plentiful in wildlife and rich in culture. 

The landscape gives it a magical and dreamlike 

quality, from its prominent salt pans to diamond-rich 

deserts and lush flood plains. The business potential 

of this friendly nation is less well known. 

Since peacefully gaining its independence in 

1966, Botswana has managed to exploit its wealth 

of underground resources, especially diamonds, 

to develop not only its diverse economy but also 

its people. Botswana is the biggest producer of 

There are investment opportunities in each of the 

following sectors: 

• Mining, including diamond beneficiation, coal 

and soda ash 

• Cargo, freight and logistics 

• Leather and leather goods 

• Automotive 

• Agriculture 

• Financial and business services 

• ICT 

• Health 

• Education 

The Big Five – reasons to invest 

Botswana provides a peaceful and stable environment 

to its citizens and investors and has maintained peace 

since independence in 1966. Reasons to invest include: 

• Zero tolerance for corruption, a sound legal 

system and adherence to the rule of law 

• Botswana is the least corrupt country in Africa, 

ranked 35 out of 176 in the world in 2017 

(Transparency International) 

• World’s second most attractive investment 

location (Altman’s Baseline Profitability Index 

(BPI), New York University) 

• Highest sovereign credit rating in Africa 

• One of the world’s fastest growth rates in per 

capita income. 


50


Trade agreements and access 

Easy to do business 

Botswana provides preferential access to the entire 

marketplace of the Southern African Development 

Community (SADC) which has more than 292-million 

people, duty-free access to South Africa, Namibia, 

Lesotho and Swaziland, and duty-free and quota-free 

access to the European Union (EU) market. Imported 

machinery and equipment for manufacturing 

purposes do not attract duties. 

In addition, Botswana is signatory to an extensive 

range of protocols and trade agreements that give 

access to lucrative markets around the world. 

Incentives for investors 

• No foreign exchange controls or restrictions on 

business ownership 

• Taxes are very low, 15% for manufacturing and 

International Finance Service Centre (IFSC) companies, 

22% for other businesses and 25% for individuals 

• Remittance and full repatriation of profits and 

dividends is allowed 

• Development Approval Order: tax holiday (zero 

corporate tax) can be available to investors for a 

period of five to 10 years 

• Operational double taxation avoidance agreements 

with South Africa, United Kingdom, Sweden, France, 

Mauritius, Namibia, Zimbabwe and Russia 

• Companies accredited by the Innovation Hub pay 

tax at 15% of profit. 


Botswana Investment and Trade Centre (BITC) is an 

integrated investment and trade promotion authority 

with an encompassing mandate of investment 

promotion and attraction, export promotion 

and development, including management of the 

nation’s brand. 

The organisation plays a critical role of driving 

Botswana’s economic growth through attraction of 

FDI, domestic investment, facilitation of expansions 

and further spearheads the growth of exports by 

promoting locally manufactured goods to regional 

and international markets. 

BITC has committed to deliver on making 

investment as easy a process as possible, through 

facilities such as the One Stop Shop. Services include 

helping with office space and registrations, visas 

and licences. 

Botswana Investment and Trade Centre (BITC): Private Bag 00445, Gaborone, Botswana 

Plot 54351, off PG Matante Road, Exponential Building, Central Business 

District (CBD), Gaborone, Botswana 

Tel: +267 363 3300 | Fax: +267 317 0452 

South Africa: 88 Sandown Mews, West Wing, Stella Street, Sandton, Johannesburg 

Tel: +27 11 884 8959 | Fax: +27 11 883 7798 

Website: www.bitc.co.bw 

51 SOUTH AFRICAN BUSINESS 2019 

Doing Business 

Doing 

in Botswana 

Business in Botsw


A hub of economic activity 

Airports can anchor economic growth in multiple sectors. 

Shopping, trading and entertainment are now accepted parts 

of the airport experience for travellers, but new thinking is 

being applied to how airports can spark economic growth 

in surrounding areas. 

By definition, airports play a role in tourism, logistics and trade 

but the concept of an aerotropolis takes this further in finding ways 

to leverage the advantages that the facility brings to the region. The 

airport becomes a hub of economic activity in the same way that cities 

anchor different economic sectors that grow up around the centre. 

Several South African airports and regions are using this thinking 

to underpin new approaches to 

economic planning. 

OR Tambo International 

Airport is the biggest airport in 

Africa. The City of Ekurhuleni, 

where OR Tambo is located, is 

hoping to be the national centre 

for logistics and to boost its 

already impressive manufacturing 

capacity by building more 


52


infrastructure and freight hubs. It also wants the aerotropolis concept 

to play a role in helping to consolidate the integration of the nine town 

councils that went into making up the current metropole. 

The Tambo Springs inland port and logistics gateway has been 

established near Katlehong as an inter-modal facility which can transfer 

containers from rail or road to storage facilities and ultimately to the 

customer. Existing freight rail lines run through the site and link it to 

the seaports of Durban, Cape Town and Ngqura (Port Elizabeth). The 

aim with this new facility is to improve efficiency. It is run by the Tambo 

Springs Development Company. 

Logistics is obviously a major part of the equation and facilities 

such as the Tambo/Springs inland port will add capacity to the region. 

However, using closeness to the airport as a factor in driving down 

costs can also be a way of promoting manufacturing. When this factor 

is supported by national, provincial and local government incentives, 

the business proposition for investors becomes very attractive. 

The OR Tambo Industrial Development Zone is one of several sites 

allocated by the South African government to stimulate investment 

in targeted sectors. The OR Tambo IDZ supports the development of 

businesses that work in the beneficiation of precious metals and minerals 

sector, with a focus on light, high-margin manufacturing of South 

African precious and semi-precious metals. Export is encouraged. 

The National Department of Trade and Industry (dti) is the lead 

agent in the creation of Special Economic Zones, which are part of the 

national Industrial Policy Action Plan (IPAP). SEZs are designed to attract 

investment, create jobs and boost exports. Industrial Development 

Zones are a type of SEZ. 

Other important participants in building on the aerotropolis concept 

include Airports Company South Africa (ACSA), operator of nine 

of the country’s airports, Air Traffic Navigation Services (ATNS) and local 

and provincial governments and their agencies. 

In the Free State, Bloemfontein is pursuing an Airport Node project 

within a broader N8 Corridor development scheme. A project covering 

2 000ha and expected to cost in the region of R100-billion over several 

phases has been initiated at the Bram Fischer International 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, conferencing, retail, motor vehicle 

dealerships, car rental, logistics hub and a showground. 

A major reason for the building of a new airport north of Durban 

was to stimulate cargo volumes, particularly in the agricultural sector. 

King Shaka International Airport (KSIA) and the nearby Dube TradePort 

are intended to complement one another, a good example of the 

aerotropolis idea. The opening of a R99-million cold-storage facility at 

Dube TradePort in 2017 gives farmers and exporters additional flexibility, 

allowing them to store chilled and 

frozen perishable goods. 

Dube TradePort is a 3 000-hectare 

development that encompasses 

the airport and is ideally 

situated for any logistics business 

as it is very close to Africa’s busiest 

cargo port (at Durban) and 140km 

from the deepest natural harbour 

in the southern hemisphere 

where the Port of Richards Bay 

and the Richards Bay Industrial 

Development Zone (RBIDZ) are 

located. 

Dube TradePort is a Special 

Economic Zone and it encompasses 

a cargo terminal, a serviced 

industrial estate, 12 hectares of 

office, retail and hospitality space 

and an agri-zone for growing, 

packaging and distribution of 

high-value perishables and horticultural 

products. 

The focus in Cape Town in recent 

years has been on growing 

the number of direct flights to 

the city. A record 10-million arrivals 

passed through the gates of 

Cape Town International Airport 

in 2016 as a result of a programme 

called Air Access. The next big 

thing at CTIA is going to be a 

new runway. Airport Industria is 

already a well-established commercial 

and industrial zone. With 

increased volumes into the airport, 

it likely to continue to grow. 

The re-aligned new runway will 

also open up new commercial 

opportunities. ACSA is looking 

to promote economic activity 

in the previously undeveloped 

Symphony Way area through site 

zoning. Commercial and logistics 

are the two most likely kind 

of activities suited to the newly 

targeted area. 


54

Discover BlueBiz 

BlueBiz, the corporate loyalty program of Air France, KLM & 

Partners, is the easiest way to reward your company. 

Instant savings 

Save on your company’s travel budget 

Double benefits 

Earn Blue Credits and Flying Blue Miles on the same ticket 

Numerous extra services 

To ensure easy and hassle free travel 

BlueBiz offers Blue Credits which are just like cash and deliver 

instant savings on your company travel. 

Go to BlueBiz.com and 

Enrol for Free!


The Oceans Economy 

There are massive opportunities in new maritime sectors. 

A 

new university campus, a new institute, new training programmes 

at several venues across the country, investment 

in ports and equipment – the Oceans Economy is no longer 

just a concept talked about at conferences, it is a reality that 

is starting to have an impact on South Africa. 

South Africa has 3 000km of coastline and the extent of the country’s 

territorial waters is greater than its land size. And yet the country 

does not have a merchant marine fleet and only scrapes the surface 

in terms of the percentage of repair and maintenance of boats and oil 

rigs which could potentially bring work to its ports. 

What is also called the Blue Economy has enormous potential for 

economic growth and concomitant job creation. National government 

wants to see the Oceans Economy contribute a R177-billion to gross 

domestic product by 2033. This is 

part of the National Development 

Plan (NDP). 

National strategy on the 

Oceans Economy is also aligned 

with Operation Phakisa, a plan 

that targets sectors that can best 

achieve quick returns in terms of 

growth and job creation. The four 

target areas within the maritime 

strategy are: aquaculture; offshore 

oil and gas; marine protection and 

governance; marine transport 


56

Global Africa Network 

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

www.gan.co.za 

www.southafricanbusiness.co.za 

www.easterncapebusiness.co.za 

www.freestatebusiness.co.za 

www.gautengbusinessguide.co.za 

www.kwazulunatalbusiness.co.za 

www.limpopobusiness.co.za 

www.mpumalangabusiness.co.za 

www.northerncapebusiness.co.za 

www.northwestbusiness.co.za 

www.westerncapebusiness.co.za 

NETWORK MEDIA 

Tel 021 657 6200 

Email sales@gan.co.za 

Web www.gan.co.za


and manufacturing. Transnet National Ports Authority is spending 

heavily on upgrading the nation’s ports. 

One statistic illustrates the potential: South Africa does maintenance on 

only 5% of the 13 000 vessels that uses its ports and services 4-5% of the 

approximately 130 rigs that pass along the coast each year. Large quantities 

of oil are transported around the Cape of Good Hope every year: 32.2% of 

West Africa’s oil and 23.7% of oil emanating from the Middle East. 

South African companies are alert to this potential. More than 

7 000 direct jobs were created in the Western Cape ship and rig repair 

sector in 2015. 

Port Elizabeth has positioned itself at the centre of the academic 

side of the Oceans Economy. Nelson Mandela University launched the 

Ocean Sciences Campus in 2017 and the South African International 

Maritime Institute (SAIMI) has chosen the city as its base as it sets about 

supporting the sector through research and training. SAIMI runs the 

National Cadet Programme which is paid for by the National Skills Fund. 

The curriculum for these institutions ranges from the law of the 

sea, shipping and transport, to aquaculture, boat-building, oil and gas 

exploration, repair and maintenance and environmental management. 

The university has four marine sector chairs funded by the South 

African Research Chair Initiative (SARChI) and the National Research 

Foundation (NRF). 

Special Economic Zones 

South Africa has a number of licenced Special Economic Zones (SEZs), 

some of which are called Industrial Development Zones (IDZs). The 

best established of these are the coastal IDZs at Saldanha, Coega (Port 

Elizabeth), East London and Richards Bay. 

These areas are central to the Oceans Economy strategy because 

of their strategic positions and the favourable environment created 

for investment by specific legislation related to SEZ tariffs, tax deductions 

and grants. The first illustration of national commitment to the 

strategy came late in 2016 with the allocation by the Department of 

Energy of two Liquefied Natural Gas (LNG) plant options, one each to 

the IDZs of Richards Bay and Coega. 

The Saldanha Bay Industrial Development Zone is central to a plan 

to grow the oil and gas sectors although it was not allocated a possible 

LNG plant. Large industrial operations already exist at Saldanha and the 

Port of Saldanha Bay is the portal for the export of South Africa’s iron 

ore. The SBIDZ is set to become a hub for a range of maritime repair 

activities and oil rig maintenance and repair. 

The ports of Ngqura and East London are well positioned to act 

as container transit points and the skills set of the Eastern Cape’s 

workforce, particularly in the automotive and automotive parts 

sector, could be attractive to repairers and manufacturers in marine 

subsectors. Both Eastern Cape 

IDZs have aquaculture sections. 

The East London IDZ already has 

investors such as Pure Ocean 

Aquaculture and Ocean Wise. 

Durban’s annual throughput 

of containers is about one-million, 

more than 60% of the country’s 

total. As part of Operation Phakisa, 

the Port of Durban is upgrading 

its dry dock and buying new 

cranes to speed up operations. 

There is also an ambitious plan 

to dig out the old airport south of 

the city, connect the big hole to 

the sea and make it a harbour; this 

would allow Toyota to roll their 

new vehicles directly from the 

factory floor to the hold of a ship. 

The Port of Durban is already 

home to a variety of maritime 

companies. EBH-SA has been in 

the business marine engineering 

and repairing ships since it began 

as Elgin Brown and Hamer in 1878. 

To improve their competitiveness, 

three South African shipbuilders 

(SAS, Damen Shipyards Cape 

Town and Nautic Africa) have 

agreed to pool their resources 

on contracts. 

Cooperation pacts like this one 

might be a good template for the 

nation’s ports and the rig/boat repair 

and servicing sector. With the 

Angolan and Mozambique oil and 

gas industries growing bigger every 

day, it is unlikely that one port 

could cope with demand anyway. 

The Port of Richards Bay has 

added a new berth on average 

every second year. It has deepwater 

infrastructure and the huge 

Richards Bay Coal Terminal, the 

country’s primary site of export 

for coal. The Richards Bay IDZ intends 

becoming an energy hub. 


58

FOCUS 

Partnering for 

maritime growth 

SAIMI supports maritime research and innovation. 

SAIMI hosted maritime business students from the Massachusetts 

Maritime Academy, USA, on an experiential learning tour in January 2018 

to understand the South African maritime sector. Pictured with the group 

at the Port of Ngqura are (front, from left) senior student Nick Zaia, the 

academy’s South African-born Dr Portia Ndlovu and Transnet representative 

Ntshantsha Buyambo. 

The South African International Maritime Institute (SAIMI) 

supports research and innovation that will help unlock 

the growth potential of the local maritime industry. 

SAIMI worked in collaboration with other research roleplayers 

to draw up the Maritime Research, Innovation and Knowledge 

Management Roadmap which presents a vision, and sets objectives 

and action steps for South Africa to be globally recognised as a 

maritime nation by 2030. 

The map provides direction for research, innovation and technology 

development to support achievement of the Operation Phakisa growth 

objectives in the Oceans Economy. It also guides SAIMI’s knowledge 

management strategy. 

The next step is dissemination and implementation of the road 

map, and SAIMI is working with the Council for Scientific and Industrial 

Research (CSIR), universities and leading research centres, to support 

postgraduate studies and commission new high-level research in 

key areas. 

Launched in late 2016, the road map is the result of an extensive 

review of existing tertiary qualifications, research and innovation activity 

and current strategies, together with wide-ranging stakeholder 

consultation in charting the way 

forward. 

It is aligned to the vision and 

objectives of Operation Phakisa 

in the Oceans Economy and 

integrates the research and innovation 

needs of the maritime 

economy, which takes in everything 

from aquaculture to tourism, 

environmental protection 

to oil and gas exploration, and 

maritime transport and manufacturing. 

Another initiative is to drive 

a maritime awareness campaign 

to develop a national maritime 

culture and consciousness, 

contributing to awareness of 

maritime economic opportunities, 

the development of a 

sustainable blue economy, and 

the profile of South Africa as a 

maritime nation. 

SAIMI also acknowledges the 

importance of interacting with 

other major institutions, not 

only in South Africa, but also on 

the African continent and in the 

global maritime industry. 

Work on SAIMI’s Africa Focus 

is well underway with leading 

teams from Kenya, Ghana and 

Nigeria all part of the research 

process. Partnerships are also 

being explored with universities 

and maritime authorities 

in China and Southeast Asia. 


PROFILE 

The South African 

International Maritime 

Institute 

SAIMI is at the helm of maritime skills development. 

SAIMI works with organisations such as the NSRI to support programmes developing life skills and maritime skills for 

school learners and future seafarers. 

South Africa’s blue economy offers a beacon of hope for 

sustainable job creation and economic growth in a field of 

almost unending potential. 

Playing a vital role in developing this burgeoning industry, 

the South African International Maritime Institute (SAIMI) facilitates the 

skills development to support growth in the sector and the country’s 

aim to be a leading maritime nation. 

“Essentially, our role is to help South Africa steer the right course in 

growing the skills needed for the rapid development of the maritime 

sector as envisaged under Operation Phakisa,” says SAIMI’s acting chief 

executive Odwa Mtati. 

Boasting, as it does, more than 3 000km of coastline and territorial 

waters larger than its land size, South Africa is extremely well positioned 

to explore the diverse economic 

and job creation opportunities 

that lie within the marine sector. 

“All the natural foundations 

are in place. South Africa is the 

African continent’s only country 

with access to and control 

over sea waters covering three 

oceans,” says Mtati. 

“While South Africa’s land 

surface is 1.21-million square 

kilometres, the waters under its 

control cover some 1.6-million 


60

PROFILE 

square kilometres. The coastline stretches from the cold Atlantic Ocean 

in the west to the Southern Ocean in the south, and then to the warm 

Indian Ocean in the east.” 

Headquartered in Port Elizabeth, and with plans to eventually be 

represented in all of South Africa’s major coastal cities, SAIMI works with 

educational institutions, government departments and the private 

sector across South Africa. 

Its primary role is to respond to industry needs by identifying skills 

gaps, facilitating collaboration and development of new programmes, 

and coordinating maritime education and training in areas across the 

diverse maritime economy spectrum – from shipping and transport, 

to aquaculture, boat-building and oil and gas exploration, through to 

ocean governance and environmental management. 

One way of doing this is by reaching out to the younger generation, 

educating them about sea-going career opportunities and also 

offering training facilities through its management of the National 

Cadet Programme. 

Funded by the National Skills Fund, the programme – which was 

SAIMI’s first and still its largest project – offers practical training and 

sea time with international shipping lines, enabling maritime diploma 

students to obtain the internationally recognised Standards of Training, 

Certification, and Watch-keeping (STCW) qualifications and become 

globally sought-after seafarers. 

Innovative approaches to seafarer training, which have the potential 

for replication if successful, are being followed with some of the partner 

shipping companies, which recruit a small number of cadets into an 

intensive programme aimed at developing their own future officer 

corps from cadet to apprentice to fully-fledged officer. 

The programme has also extended its reach to school level in an 

effort to encourage interest in maritime careers, sponsoring holiday 

camps and maritime experiential programmes for school learners, 

along with maths and science support to ensure entry to maritime 

studies programmes. 

In addition, the institute is currently facilitating a pilot project 

with the Transport Education and Training Authority (TETA) for 


Physical address: Ocean Sciences Campus, Gomery Avenue, 

Summerstrand, Port Elizabeth, South Africa 

Postal address: PO Box 77000, Nelson Mandela University, Port 

Elizabeth 6031, South Africa 

Tel: +27 41 504 4038 

Email: info@saimi.co.za 

Website: www.saimi.co.za 

training of deck and engine 

ratings towards Certificates of 

Proficiency as Able Seafarers, 

to work in areas such as vessel 

maintenance, rigging and cargo 

handling for merchant shipping 

and the fishing industry. 

In a long-standing partnership 

with the Africa region 

of the International Oceans 

Institute, SAIMI supports the 

annual IOI Ocean Governance 

for Africa course which equips 

public sector officials from 

South Africa and the African 

continent to understand the 

maritime aspects of environmental 

management and 

planning. 

SAIMI is funded by a threeyear 

grant of R296-million from 

the National Skills Fund for the 

skills and capacity-building 

work to support Operation 

Phakisa, an initiative of the 

South African government. 

The initiative was designed 

to fast-track the implementation 

of the oceans economy 

and address issues highlighted 

in the National Development 

Plan 2030 such as poverty, unemployment 

and inequality. 

A common thread running 

through all Operation Phakisa 

initiatives is the need to develop 

the skills to operate 

the engine room, as well as 

to navigate the way forward. 

SAIMI is at the helm of this 

skills development as well as 

capacity building and empowerment 

of people to support 

the goals of Operation 

Phakisa and growth of the 

maritime economy. 


PROFILE 

EBH South Africa 

High-quality ship repair and marine engineering. 

Achievements 

The Oliver Top Empowerment 

Awards honours and awards 

outstanding contribution to the 

national vision of the country. 

In 2016 EBH-SA won the Oliver 

top empowerment award for 

skills development. 

In 2017/18 Transnet awarded 

EBH with the best-performing 

ship repairer of the year. 

In 2018 EBH was once again 

nominated as finalist for skills 

development in the Oliver Top 

Empowerment Awards. 

Elgin Brown and Hamer, proudly a level 2 B-BBEE contributor, 

is among one of the largest and oldest shipyards in Southern 

Africa, having been founded in 1878. EBH South Africa was 

originally known as James Brown and Hamer. The company 

was later acquired in December 2012 by the DCD Group and then 

became known as EBH-SA. 

Operations 

EBH South Africa provides the international shipping industry as well 

as the oil and gas sector with a full in-house service in all aspects of 

ship repair through its operations in Durban, Cape Town and East 

London. The company offers a dedicated team of employees focused 

on superior quality service, delivered by skilled craftsmen, and an extensive 

network of experienced subcontractors through a full range 

of utilities. This ensures efficient ship repairs, conversations or new 

construction projects. 

What sets us apart? 

In addition to all our service offerings, Elgin Brown and Hamer purchased 

its first floating dock, Eldock, in 1998, which was originally built 

in Russia. EBH South Africa has a privately-owned floating crane which 

has a lifting capacity of 60 tons at 10 metres. 

Services 

• Pipe repairs 

• Steel repairs 

• Underwater services 

• Electrical 

• Scaffolding 

• Mechanical 

• Blasting and coating 

• Riding crew 

• Hydraulics 

Skills development 

EBH-SA passionately believes in 

artisan and engineering training 

and development. We regard 

apprenticeships and engineering 

investments as being key 

to the ongoing success of our 

organisation. Our involvement in 

these programmes since 2010 has 

produced numerous qualified 

artisans and engineers. 


62

KEY SECTORS 

Overviews of the main economic sectors in 

South Africa. 

 

Agriculture 66 

Mining 70 

Oil, gas and petrochemicals 75 

Water 82 

Engineering 90 

Construction and property 98 

Manufacturing 108 

Food and beverages 116 

Automotive 118 

Transport and logistics 120 

Information and communications technology 124 

Tourism and events 134 

Banking and financial services 140 

Development finance and SMME support 144

OVERVIEW 

Agriculture 

Increasing agri-processing volumes is a national priority. 

South Africa produces a wide variety of crops in every category 

but in recent times there has been a rapid expansion in the 

production of nuts. Macadamia nuts is one of the fastestgrowing 

sectors in South Africa. Most nuts are exported, 

and the global market is expanding: nearly 2 000ha are added to 

the land under macadamias every year. Mpumalanga and Limpopo 

provinces are big nut-growing provinces. Another sector enjoying a 

boom (mainly because of Chinese demand) is avocadoes, with almost 

1 000ha per year of new land being planted. 

Peanuts are farmed in the Northern Cape, North West and Free 

State with the Vaal River having the highest concentration of growers. 

Some analysts believe that the Northern Cape could become a global 

centre for pecan nut production. Production of pecan nuts grew from 

5 000 tons in 2010 to 10 500 tons in 2015. 

The Northern Cape is home to the Vaalharts Irrigation Scheme, one 

of the biggest systems of its kind in the world. Spread over more than 

30 000ha, it has transformed a semi-desert zone into a productive area 

that sustains cotton, wheat, maize, lucerne, citrus, peanuts, fruit, grapes, 

olives and pecan nuts. Consulting firm Aurecon has done a feasibility 

study and a business plan for the rehabilitation and upgrading of the 

irrigation scheme. 

A priority for South African agriculture is to increase the number of 

agri-processing businesses which in turn will mean that agricultural 


The Mpumalanga International 

Fresh Produce Market will 

boost farming in the region. 

production will have to increase. 

More than 50% of agricultural export 

is currently made up of processed 

agricultural products. 

The most recent version of 

the South African government’s 

Industrial Policy Action Plan (IPAP) 

flags agri-processing as a key sector 

for value addition and job creation. 

According to McKinsey, South 

Africa’s agri-processing industry 

contributed R78-billion in 2014 to 

South Africa’s GDP and employed 

362 000 people. 

In anticipation of increased 

volumes, and to assist small-scale 


66

OVERVIEW 

farmers get access to mainstream markets, agri-parks are being rolled 

out at district level in every province. These parks aim to combine production 

facilities, logistics, marketing, training and extension services. 

The other way in which small-scale farmers are connecting to 

the mainstream economy is through the supplier development 

programmes of major retailers. For example, Woolworths receives 

“indigenous” eggs from Bosveld hens from an independent farmer 

in Bela Bela, cabbage and butternut produced by five smallholders 

is channelled by Spar through its Fresh Assembly Point in Mopani 

and the Ezemvelo Direct Farm Programme of Massmart left behind 

a legacy of small-scale farmers now connected to the fresh produce 

supply chain – and a packhouse in Limpopo run by a co-operative. 

Major agricultural companies 

In 2017 Kaap Agri listed on the main board of the JSE. Although the 

agricultural sector contributes just 4.3% to the stock exchange’s total 

market capitalisation, the percentage is expected to grow. 

Companies like Kaap Agri provide services beyond speciality agricultural 

services such as grain handling. Activity in areas such as fuel 

retailing and building materials give these companies a broad retail 

footprint. 

When South Africa’s first alternative stock exchange in South 

Africa started trading in February 2017, the first listing was agricultural 

company Senwes and its holding company. The JSE has also launched 

a wool futures contract as the sector strives to add 25-million kilograms 

to the existing crop of about 44-million kilograms. 

Afgri, biggest of the former co-operatives that are now multidimensional 

companies, has delisted from the JSE but in 2017 bought 

the South African Bank of Athens. 

Zeder Investments is the agricultural arm of investment holding 

company PSG Group (which is well known through Capitec Bank 

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

companies, most notably Capespan. Capespan has a turnover of 

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

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

many big food and drink brands across Southern Africa, including 

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

an annual turnover of R20-billion and it has two Bokomo facilities in 

the United Kingdom. 

Most former co-operatives which are now agri-businesses have 

a specific geographic and farming sector focus (BKB is strong in the 

eastern Free State and Eastern Cape and concentrates on wool and 

mohair) while others like Afgri have a national presence. 

Senwes has a strong grain division and it controls 68 silos. Its operations 

are run from Klerksdorp in the centre of the country in North 

West Province. Other companies 

include NTKLA (Limpopo), GWK 

(Northern Cape), Klein Karoo 

Agri, VKB (eastern Free State and 

Limpopo), Kaap Agri (from the 

Boland to the Eastern Cape and 

up to Namibia), SSK (Overberg) 

and TWK (KZN and Mpumalanga). 

These facts show the large 

influence which the agricultural 

sector has in South Africa. When 

national agricultural output 

surged in mid-2017 on the back 

of good rains and harvests, the 

country was lifted out of the technical 

recession into which it had 

fallen in the first quarter. 

A bumper maize crop of 

16.4-million tons for 2016/17 

provided evidence that the 

long drought was over, at least 

in the central and northern regions. 

Local demand for maize 

is 10.8-million tons. The Western 

Cape drought continued for 

longer, but decent rains were 

recorded in the first half of winter. 

Investment 

The Land Bank intends to invest 

R1-billion in supporting black 

agricultural entrepreneurs. The 

hope is that by making the sector 

more inclusive, long-term food 

security will be ensured. 

Statistics SA reports that 

about 847 000 people work 

in agriculture in South Africa. 

Wandile Sihlobo of the 

Agricultural Business Chamber 

notes that two-thirds of these 

jobs are in the field crops and 

horticultural sectors, which 

should therefore be the focus of 

future investment. Other areas 


OVERVIEW 

where investment will pay off are bringing under-utilised land (in 

communal areas and land reform farms) into commercial production, 

expanding irrigation schemes and targeting areas that have 

the highest potential for growth. 

Fruit, sugar and wine make up about 7% of the country’s total export 

basket. Avocadoes, tomatoes and macadamias are among other 

important export crops. Primary agriculture provides 5% of formal 

employment in South Africa. 

Several of the Special Economic Zones around South Africa either 

have or will in the future have, agri-processing facilities. Examples 

include existing tomato paste and dairy facilities at Coega IDZ and 

plans to develop the SEZ at Harrismith (Maluti-A-Phofung) into a hub 

for agri-processing. The Nkomazi SEZ in Mpumalanga will promote 

agri-processing and the Mpumalanga International Fresh Produce 

Market currently under construction in Mbombela will boost the 

agricultural sector in the region. 


Agricultural Research Council: www.arc.agric.za 

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

Grain SA: www.grainsa.co.za 

National Department of Agriculture, Forestry and Fisheries: 

www.daff.gov.za 

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

Agricultural variety 

A total of 70% of South Africa’s 

grain production is maize, which 

covers 60% of the cropping area 

of the country. The South Africa 

feed industry has an annual 

turnover of about R50-billion with 

most of the raw material being 

soya and maize. 

KwaZulu-Natal and 

Mpumalanga produce sugar, 

but volumes are down. The Free 

State Province supplies significant 

proportions of the nation’s 

sorghum, sunflower, potatoes, 

groundnuts, dry beans, and almost 

all of its cherries. 

Products distinctive to 

South Africa, such as rooibos 

tea (Western Cape) and marula 

berries (Limpopo) hold great potential 

to capture niche markets 

internationally. 

South Africa is famous for its 

fruit, of which 35% is citrus, 23% 

subtropical and nuts, 26% pome 

fruIt, 11% stone fruit and 9% table 

grapes. Export volumes, particularly 

in tropical fruits such as 

mangoes and avocadoes, have 

been growing rapidly. Most of 

South Africa’s citrus and subtropical 

fruit comes from the eastern 

part of Limpopo. 

There are about 3 500 wine 

producers in South Africa, with 

the large majority located in the 

Western Cape. The industry earned 

R17.5-billion in exports in 2016. 

Livestock farming is the largest 

agricultural subsector in South 

Africa and the Eastern Cape is the 

largest livestock province. South 

Africa has a beef-herd of 14-million. 

South Africa produces about 

55% of the world’s mohair. 


68

facilitator of world class services for 

South Africa and the rest of the 

Realising continent long-term 

by participating in 

the following sectors 

travel & tourism, media, 

value and driving 

food & logistics, and 

property. 

transformation 

Thebe Food and Agro-processing. 

areas of energy, resources, power, 

infrastructure as well as water. The 

Services Division seeks to become a 

FOCUS 

The Thebe Food and Agro-processing subdivision 

of Thebe Investment Corporation 

aims to realise long-term value from its 

investments in the food production and 

preparation sectors and to drive and champion 

transformation in the agro-processing sector. We 

achieve this through investing in and managing 

strategic agro-processing assets with an explicit aim to 

develop and facilitate the integration of black farmers 

and agro-processors into established supply chains. 

The long-term aspiration is to be invested in leading 

operators that operate across the continent. 

Thebe Food and Agro-processing intends 

to continue to build a significant food services 


Contact person: Mokgethi Tshabalala 

(General Manager, Thebe Food and 

Agro-processing) 

Tel: +27 11 447 7800 

Email: mokgethi@Thebe.co.za 

Website: http://new.thebe.co.za/ 

company by 2020. Key to this strategic intent are four 

main drivers, namely food production and exports, 

food processing and distribution, food marketing, 

and an emerging farmers development programme. 

Thebe is currently exposed to the food sector 

through its investment in Compass Group SA, a leading 

industrial caterer, and GROW (formerly BothaRoodt), 

a fresh produce market agent at the Johannesburg 

Fresh Produce Market and HarvestFresh. 

In South Africa, CGSA, in which Thebe has a 

significant shareholding, caters for a variety of clients 

including private sector, government and education 

institutions. Partner company Compass Group PLC is 

one of the largest food services and facilities company 

in the world, operating in over 50 countries. 

HarvestFresh, a recent acquisition, is a leading 

grower, packer, processor and distributor of fresh 

produce to the retail market. 

Global trends indicate an increasing demand for 

“ready-to-eat” meals. South Africa has seen giant 

retailers respond to this through various offerings 

with the scope and demand increasing. Thebe is 

responding to this opportunity. 

Transforming the sector 

The development of farmers for food security is at the 

core of Thebe’s strategy. Thebe will partner with key 

agricultural formations and management companies 

to develop land owned and managed by emerging 

farmers and communities, in partnership with the 

relevant beneficiaries. Existing Thebe investments will 

be leveraged to provide critical market intelligence 

to assist farmers to understand market dynamics to 

compete effectively. Thebe will also explore development 

funding models for feasible development 

projects as appropriate. 

69 

SOUTH AFRICAN BUSINESS 2019

OVERVIEW 

Mining 

Mine owners are preparing for change. 

The South African mining industry is going through a time of 

change. Gold and platinum mines are under pressure because 

of global price fluctuations and the cost of doing business. 

Safety issues are to the fore and national mining policy is the 

subject of heated debate. 

The body that has represented mine owners since 1889 has undergone 

a re-branding, a strong symbol that change is under way. What used to 

be the Chamber of Mines is now the Minerals Council South Africa. The 

Minerals Council wants to reposition the South African mining sector so 

that it regains its place as the country’s “foremost industrial sector”. It aims 

to double real investment in mining by 2030. The council wants to assist in 

obtaining the objectives of the National Development Plan (NDP) regarding 

economic growth, development and transformation. 

The gold sector has shed several thousand jobs in the last five years 

and in mid-2018 a large cutback in platinum sector employment was announced. 

A proposed new mining charter (Mining Charter 3) did not go 

down well with mining companies, and the new President of South Africa, 

Cyril Ramaphosa, appointed a new mining minister to come up with a 

better arrangement. Both Ramaphosa and Minister Gwede Mantashe have 

held the post of Secretary-General of the National Union of Mineworkers 

so there is no shortage of first-hand knowledge of the sector in the upper 

echelons of government. 

SECTOR INSIGHTS 

The Gamsberg zinc and lead 

project (pictured) is South 

Africa’s biggest. 

• Afrimat has expanded into 

mining. 

The level of black ownership and 

whether that percentage must 

be “topped up” every time a black 

shareholder sells are two of the 

contentious issues that must be 

resolved. A court ruling in favour 

of “once-empowered, alwaysempowered” 

will probably not 

be the end of the debate. The 

Minerals Council says that the 

value of BBBEE deals since the 

year 2000 is R205-billion. 


70 

cont on pg 72

E&T Minerals 

A hands-on approach is paying dividends for 

this coal business and its clients. 

PROFILE 

E&T Minerals is a South African-based commodity brokerage and trading 

house specialising in coal, coking coal and other coal products. 

Vision 

E&T envisages building an African business with global reach which 

capitalises on the continent’s rich natural resources while guaranteeing 

efficiency, reliability, excellence and transparency to and for its clients. 

Services 

• commodity trading 

• sampling 

• contract management 

• management of performance risk 

• logistical management 

Reliability and efficiency 

Founded in 2013, E&T Minerals is poised for a new dawn as the enterprise 

has matured with experience. Supported by a far-reaching network of 

suppliers and producers in addition to a very hands-on approach, what 

sets the E&T team apart is a constant physical presence in the coal fields 

which ensures the smooth running of all supply contracts. This includes 

quality maintenance by efficient sampling of all product stockpiles, 

management of logistics by 

supervision of all trucks loading 

material from the different sites up 

to the clients’ point of delivery. As a 

result of this approach, reliability of 

services to clients is assured. 

Emmanuel Ngulube 

Emmanuel Ngulube is the cofounder 

and current CEO of E&T 

Minerals. His responsibilities 

include sales, marketing, business 

development and the client 

relationships. 

Having worked for many 

years as a yellow metal trader, 

Emmanuel has an extensive 

network within the mining 

industry along with an excellent 

understanding of the processes 

of the domestic and international 

commodities market. Emmanuel 

studied finance at the University 

of Johannesburg. 

71 


OVERVIEW 

Guided by the Zambezi Protocol, the Minerals 

Council wants mining to be more positive and constructive, 

working better with the communities in 

which it operates. New CEO, Mxolisi Mgojo, is simultaneously 

leading his company, Exxaro Resources, on a 

programme to make mining sustainable through water 

sharing with local communities and finding ways to 

help communities gain access to energy. 

Access to energy is something that mining concerns 

and related industries are working on. Many mines are 

putting plans in place to go “off-grid” as far as possible. 

Steel producer ArcelorMittal South Africa has 

asked the National Energy Regulator of South Africa 

(Nersa) for a negotiated price agreement (NPA) to help 

it cope with the volatility in exchange rates and lower 

domestic demand. Silicon Smelters, which has plants 

in Mpumalanga and Limpopo, has asked for a two-year 

negotiated price agreement (NPA) on electricity, which 

would allow it to resume production. Nersa has the 

power to grant such exemptions in a strategic industry. 

Investments 

Limpopo Province is the site of two new Special 

Economic Zones which will have a mining focus. Mineral 

beneficiation is a key component of the newly accredited 

Musina-Makhado Special Economic Zone (SEZ) in the 

far north of Limpopo. In 2018 nine Chinese companies 

committed to investing more than $10-billion in projects 

related to the zone’s four main areas of activity: a coking 

plant, a power plant, an alloy factory and the manufacture 

of steel. Shenzhen Holmor Resources Holdings, as the 

manager of the Energy and Metallurgical Cluster within the 

SEZ, will invest about R40-billion to create infrastructure. 

The planned Tubatse Platinum SEZ (for which accreditation 

has been submitted) will focus on platinum 

group metals beneficiation. According to the Limpopo 

Economic Development Agency, 17 new mines were 

established in the greater Tubatse/Burgersfort/ 

Steelport area between 2001 and 2016, and a further 

22 new mines are planned. The completion of the 

large new De Hoop Dam makes these plans possible. 

A Mining Supply Park is envisaged which will be a big 

boost for local businesses and suppliers. Getting local 

small businesses supplying to the mining sector is a 

goal of the provincial authorities. 

E&T MINERALS SUCCESS STORY 

It’s said that the true content of one’s 

character is not defined by good times but 

rather by times of adversity. This rings true 

with E&T Minerals. Being in a volatile sector 

such as commodity trading, we found 

ourselves in dangerously troubled waters 

in the last quarter of 2015 through to the 

first half of 2016. We took this experience 

as an opportunity to introspect, assess 

the market, re-evaluate our strategy 

and organisational 

structure to map 

a sustainable path 

forward. In 2018, 

we have not only 

survived, we have 

built a solid team 

and organisation 

that is growing at a 

healthy pace. 

Emmanuel Ngulube 

Impala Platinum (Implats) has created Tubatse 

Platinum, a vehicle in which local businesses 

hold a nine percent stake in the Marula platinum 

mine which is located north of Burgersfort. Two 

other empowerment partners are involved. 

A black empowerment deal in the Northern 

Cape recently reported good returns. Hotazel 

is the site of a relatively new manganese mine, 

Tshipi é Borwa. Tshipi e Ntle Manganese Mining 

(Tshipi) is a joint venture between Pallinghurst Co- 

Investors and a black empowerment company 

representing several groups called Ntsimbintle 

Mining. A number of non-government organisations 

(NGOs) such as the Black Sash have a 2.2% 

stake in the mine through Ditikeni Investment 

Company. Indications are that Tshipi can produce 

about 2.2-million tons of ore per year, for about 

60 years. Engineering News reported in 2017 that 

Ntsimbintle celebrated a R300-million dividend 

pay-out in July, with a further R500-million agreed 

on for disbursement in September. 

Australian miner Orion is putting considerable 

resources into investigating the possible 


72

Modi Mining 

PROFILE 

Modi offers differentiated contract mining services in a 

variety of fields across three provinces. 

About Modi Mining 

Modi Mining is a 100% black South African owned company 

founded and owned by mining engineer and entrepreneur Mr 

Samuel Molefi and a female entrepreneur, Christina Motlapele 

Molefi. Modi Mining started operations in 2011 and has grown to 

be operational in three provinces. 

In the North West Province, Modi Mining serves corporate mining 

houses in the platinum sector (RBPlats, Impala Platinum and Lonmin). 

In Mpumalanga Province, Modi works with South32 in the coal sector. 

The company also manufactures and supplies products for mines 

such as Sibanye Gold, Gold 1 and Harmony Gold, all of which are 

based in Gauteng Province. 

Vision 

To be the preferred service provider and supplier in the mining 

industry. 

Services 

Modi Mining is a multi-faceted company within the mining industry 

focusing on contract mining services (surface and underground), 

civil and bulk earth works, crushing and screening, load and haul, 

mine rehabilitation, manufacture and supply of blasting barricades. 

A detailed breakdown of services is as follows: 

Underground mining services 

• Conventional mining method: 

stoping; developing; vamping and 

sweepings 

• Equipping and reclamation 

• Mechanised mining method: capital 

development (TMM); board and 

pillar 

• Hybrid mining method 

Open cast mining services 

• Top soil and overburden stripping 

• Coal seam mining 

• Rehabilitation, dump/stockpile management 

Manufacturer and supplier of: 

• LDPE blasting barricades and pipes 

Civil services 

• Civil and bulk earth works 

• Screening and crushing 

• Load and haul 

www.modimining.co.za 

73 


OVERVIEW 

Sasol Mining is very active in Mpumalanga. 

revival of the Prieska Zinc-Copper Project in the same province. A 

maiden mineral resource estimate was published in February 2018 

and 14 drill rigs (above and below ground) are at work looking into 

the site’s prospects. 

Vedanta Zinc International’s nearby Gamsberg zinc and lead project 

is the biggest current mining project in South Africa. The mine, near 

Aggeneys, has resources and reserves of 214-million tons. The mine is 

already having a significant impact on employment. In the first phase, 

4Mtpa of ore will be mined, producing 250 000tpa of zinc concentrate. 

Aggeneys is responsible for approximately 93% of South Africa’s lead 

production, and 12% of all world lead exports. Zinc is less abundant, 

but the province is still responsible for about 43% of South Africa’s 

overall zinc production. 

Afrimat, a listed construction materials supplier and industrial minerals 

group, has added open-pit mining to its portfolio with the R322- 

million acquisition of the Diro mine (Northern Cape), which had been in 

business rescue. Production was on track for the target of one-million 

tons per year, but a problem on the railway line that delivers iron ore 

to the port of Saldanha led to production being scaled down. Afrimat 

had a transport deal with Transnet and is selling iron ore in China. 

Anglo American is investing R2-billion to expand production at 

its Venetia diamond mine near the town of Musina in Limpopo. The 

project to convert the open-pit mine to a vertical-shaft mine will 

substantially extend the life of the mine. 


Minerals Council of South Africa: www.mineralscouncil.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 Institute of Mining and Metallurgy: 

www.saimm.co.za 

Ivanplats has started sinking 

shafts at its new mine 

near Mokopane south-west of 

Polokwane. If the mine achieves 

the projected production rate of 

12Mtpa with 1.2-million ounces 

of PMG, it will rank as the biggest 

PGM mine in the world. Northam 

Platinum has invested R900- 

million on a smelter expansion 

project at its Zondereinde mine 

south of Thabazimbi. 

A R1.6-billion processing plant 

is being built at Cullinan by Petra 

Diamonds, with a throughput capacity 

of 6Mtpa. The mine’s orebody 

contains a diamond resource 

of 194Mcts which is why Petra is 

expanding with a goal of annual 

production of 2.2Mcts by 2019. 

Nkomati Anthracite in 

Mpumalanga has been revived 

after an investment from Unicorn 

Capital Partners, formerly Sentula 

Mining. The Mpumalanga 

Economic Growth Agency (MEGA) 

and local communities are also 

shareholders. The mine has proven 

resources of 8.7-million tons and 

upwards of 400 jobs were created 

over the last two years. The highgrade 

anthracite that the mine 

will produce is suitable for the 

ferro-metals industry because it 

has low phosphorus and sulphur 

levels and high fixed carbon 

percentages. 

Coal giant Exxaro has 

committed R3.8-billion to its 

Belfast project, an investment 

that will create 1 160 jobs and 

have an impact on the GDP (over 

the life of the mine) of R39-billion. 

Exxaro is also extending the life 

of its Leeuwpan Mine by another 

10 years. The mine has 1 200 

permanent employees. 


74

Oil, gas and 

petrochemicals 

National policies are focussing on gas. 

The Liquefied Natural Gas Independent Power Producer 

Procurement Programme (LNG IPPPP) is part of the programme 

of the Department of Energy which encourages private 

investment in renewable energy, namely the Renewable 

Energy Independent Power Producer Procurement Programme 

(REIPPPP). The total allocated to gas-to-power in the national power 

plan is 3 726MW, of which 3 000MW is for LNG. 

In 2016, the Department of Trade and Industry (dti) established a 

Gas Industrialisation Unit (GIU). The first two sites identified by the DoE 

for LNG plants are Richards Bay (2 000MW) and the Coega Industrial 

Development Zone (1 000MW) in the Eastern Cape. This has the potential 

to turn the Richards Bay Industrial Development Zone (RBIDZ) and its 

Eastern Cape counterpart into energy hubs. The fact that Mozambique 

has significant offshore deposits is a factor in this ambition. 

Large commercial gas companies such as Afrox and Air Products 

have plants within the Coega IDZ. First Automobile Works has established 

its motor assembly plant next door to Air Products’ air separation 

unit, giving it ready access to industrial gas. 

The Coega IDZ is also home to the country’s first gas-fired plant to 

be run by a private consortium, the Dedisa power plant. A new gas 

turbine open cycle power plant near Durban has been commissioned 

by Avon Peaking Power. 

The regulator and promoter of oil and gas exploration in South Africa, 

Petroleum Agency South Africa, has awarded coalbed-methane-gas 

SECTOR INSIGHTS 

Large gas-to-power plants 

are planned at two major 

ports. 

• The Port of Saldanha has 

launched a new LPG plant. 

exploration rights in KwaZulu- 

Natal and natural gas exploration 

permits in the Free State. Early surveys 

suggest that the Free State 

has 23-billion cubic feet of gas 

underground. If this is confirmed, 

then four new power stations 

could be built in the province. 

Afrox is spending R200-million on 

a plant to extract helium in the 

Free State. Tests have begun in 

the Karoo in search of shale gas. 

A new addition to South Africa’s 

pipeline network is a pipe to get 

natural gas from Mozambique to 


OVERVIEW 

Gauteng. SacOil’s R90-billion project aims to deliver gas to Johannesburg 

and the nearby towns in 2020. 

The Port of Saldanha in the Western Cape launched a new openaccess 

liquefied petroleum gas (LPG) plant in 2017. It will be run by 

Sunrise Energy. 

The major economic sectors using gas are the metals sector and 

the chemical, pulp and paper sector. Brick and glass manufacturers 

are also big consumers. 

An agreement has been signed between PetroSA and Russia’s 

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

invested and gas delivered to the gas-to-liquids refinery at Mossel 

Bay (Mossgas). 

Assets 

The South African oil industry generates annual sales of about 

R365-billion and includes global giants such as Engen, BP, Shell, 

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

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

South Africa for R12.6-billion. Assets include a lubricants plant 

in Durban, an oil refinery in Cape Town and 820 petrol stations 

across South Africa and Botswana. South Africa’s own global giant, 

Sasol, is a major player in the oil sector and the only player in the 

petrochemicals sector. 

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

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

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

Sasol produces fuel from coal at its Secunda facility and PetroSA has 

the country’s only gas-to-liquid (GTL) facility at Mossel Bay. 

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

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

of 703 000 barrels a day. The Natref refinery is strategically placed at 

Sasolburg near to the industrial hub of southern Gauteng. The petrochemical 

complex at Sasolburg is a major national asset. One of Sasol’s 

many companies, Sasol New Energy, is moving the group away from 

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


Independent Power Producers Programme: 

www.ipp-projects.co.za 

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

Petroleum Agency SA: www.petroleumagencysa.com 

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

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

Sasol Oil (64%) and Total SA (36%). It 

is a technologically advanced facility, 

which refines heavy crude oil into 

petrol, diesel, commercial propane, jet 

fuel and bitumen. 

KwaZulu-Natal hosts two oil 

refineries which jointly account 

for more than 300 000 barrels of 

refined crude oil. South Africa’s 

biggest refinery is Sapref in Durban. 

Owned jointly by Shell SA Refining 

(25%), Thebe Investments (25%) and 

BP Southern Africa (50%), it has a 

capacity to produce 180 000 barrels 

per day. The Enref refinery owned by 

Engen can produce 135 000 barrels 

per day. 

Safor is a base-oil production facility 

(jointly owned by Engen, Caltex and 

Total but operated by Engen) that produces 

45% of Southern Africa’s base 

oils. Engen also owns the adjoining 

Lube Oil Blend Plant, which produces 

more than 72-million litres of finished 

lubricants annually. 

A new facility is the 118 000m³ 

Bergan fuel storage unit. It comprises 

12 tanks located on the Eastern Mole 

of the Port of Cape Town. 

Getting fuel to the province of 

Gauteng is the key mission of the new 

multi-purpose pipeline (NMPP) which 

started delivering fluids in 2012. The 

NMPP terminals allow for greater flexibility 

in supply. Refined products such 

as jet fuel, sulphur diesel and both 

kinds of octane petrol are carried. 

The liquid fuels and gas networks 

of Transnet Pipelines has intake stations 

at both Durban refineries (petroleum), 

while the gas pipeline runs 

from Secunda to Durban, with diversions 

to the manufacturing hubs of 

Newcastle and Richards Bay, and 

along the coast between Durban 

and Empangeni. 


76

Poised for growth 

INTERVIEW 

Dickson Ramokone, CEO of Bakone Holding Investment, 

outlines his company’s ambitious expansion plans. 

What drives your business 

strategy? 

Initially, it was to achieve control 

of the ore itself. I was interested 

in base metals and I pursued a 

career trading in diamonds and 

gemstones for almost 20 years. That 

was my passion. 

When did you start? 

It was a long time ago, about 2005. 

Things were hectic in the early 

days. It takes a number of years to 

put something together and we 

were not financed by banks, we had 

to do it all ourselves. 

BIOGRAPHY 

Growing up in a business-oriented 

household in Soweto, Dickson 

Ramokone quickly learnt “the 

value of a penny”. Exposed as he 

was to family spaza shops and 

other ventures, he learnt to deal 

with figures and became very 

aware of what was happening in 

the business world. He has been 

involved in base metals, diamonds 

and the construction business for a 

number of years. 

Now you are quite diverse? 

I have a whole lot of things that I have put 

together. We have several companies that we 

operate, to align with different sectors. In addition 

to metals and agriculture, we also have logistics 

and prospecting rights for different minerals. We 

are always looking for opportunities. 

Can you give us an example? 

If we see that the market needs diesel, then I will 

look to find the concession or be the licensee to 

make sure that it happens. We will see to it that 

people and companies get their diesel. This year 

I’ve done about 30 deals. Things fall in place. 

What are some of your current projects? 

We are getting into commercial farming, with 

several farms between 800ha and 1 500ha under 

irrigation. The aim is to build vegetable sorting 

and packing facilities for the market. We have also 

done several property deals and we are in the 

process of setting up a finance company. 

Do you own all your subsidiaries? 

Yes, I am the sole owner, but I am going to be 

buying equity in an existing manufacturing facility 

soon. 

And future plans? 

We are buying equity in ore concessions and 

gems and we intend to list. We are on the verge 

of listing 12 companies on the main board of 

the JSE. 


PROFILE 

Bakone Holding 

Investment 

Professionals in investment and wealth growth. 

Bakone Holding Investment is a holdings and 

investment company focused on growing and 

investing in various ventures. To work on such 

a complex and powerful financial market as an 

investor is not easy. It is necessary to have not only expertise, 

but also a great positive experience. Otherwise, 

the investor risks losing all of his or her investments. 

Bakone Holding Investment has mastered the skills of 

investment and has built a large investment portfolio. 

Bakone Holding Investment offers customers the 

opportunity to earn and grow in the investment industry. 

The company has an investment portfolio in 

various companies. 

Leadership 

Dickson Ramokone, CEO of Bakone Holding 

Investment, is a seasoned businessman and entrepreneur 

with many years of experience in various 

sectors. Having learnt from his parents’ retail 

enterprises, he worked in minerals for many 

years and more recently has been branching 

out into property, agriculture, logistics and 

construction. 

Mother of companies 

The companies that make up the Bakone 

Holding Investment portfolio cover a wide 

range of sectors: 

• Financial 

• Commodities (Coal, diamonds and 

minerals) 

• Fuel and logistics (including Bakone Fuel) 

• Trade 

• Construction and civils 

• Agricultural produce 

• General. 


Contact person: Mr DK Ramokone (CEO), Bakone Holding Investments 

Tel: +27 78 868 9377 | Fax: 086 525 9190 

Email: dickson@bhinvestments.co.za 

Website: bhinvestments.co.za 


78

Financial 

North Capital First 

Specialists in capital investment and growth. We 

know when to invest and how to grow. Our main 

goal is to assist businesses achieve their ambitions 

for growth. Our target market is to invest in businesses 

over which we have management control or 

an ability to exert significant influence. To promote 

opportunities for professional achievement for talented, 

motivated and suitably qualified black executives 

to participate in the economic transformation 

of South Africa. North Capital First offers investors 

long-term capital appreciation by investing in a diversified 

portfolio of unlisted investments managed 

by North First Capital. 

Tel: 078 868 9377 

Email: dickson@northcapitalfirst.co.za 

Website: www.northcapitalfirst.co.za 

Commodities 

Fency Diamonds 

The company currently provides services to companies 

ranging from small-scale mining to large commercial 

mining projects. Fency Diamonds is a clientdriven 

commodity trading company that puts the 

needs of clients first. Our goal is to deliver a superior 

advantage to all our business partners, providing them 

with specialist expertise and deep market knowledge. 

Our dedicated team of specialists balance daily activities 

and long-term strategies, seamlessly connected 

with a worldwide network of suppliers, manufacturers 

and jewelers. Over the years we have demonstrated 

supreme competence in service delivery and living up 

to the commitments made to our clients. 

Tel: 078 868 9377 

Email: dickson@fencydiamonds.co.za 

Website: www.fencydiamonds.co.za 

White Blue Insurance 

Life insurance services tailored products for lowincome 

families. Affordable life cover and funeral 

cover for individuals and families. The company 

aims to partner with insurance brokers who can sell 

services in remote areas. 

Tel: 076 900 3933 

Email: dickson@wbinsurance.co.za 

Website: www.wbsinsurance.co.za 

Kgwale For Projects 

Established in 2005, this business has a professional 

and committed team, specialising in commodities 

trading, marketing, brokerage and finance. The focus 

is on food-stuffs, farming, export and import and big 

brand retailers. Other services include marketing, 

advertising, branding and developing a corporate 

identity for clients. 

Tel: 078 868 9377 

Email: dickson@kgwaleprojects.co.za 

Website: www.kgwaleprojects.co.za 

Master Ore & Diamonds Holdings 

Specialists in Iron ore & Diamond mining, sales and 

distribution, including the sale of individual stone 

diamonds. Master Ore & Diamond Holdings is a diversified 

business group with interests in mineral 

resources and industrial sectors. We believe that the 

best way to stay ahead is to think ahead and are confident 

of leading the way as we move into the future 

guided by thought leadership which has multiple 

years of experience of building successful businesses 

and a highly talented and culturally diverse team. 

Connecting decision makers to a dynamic network 

of information, people and ideas with unrivalled expertise 

in the exploration and mining. 

Tel: 078 868 9377 

Email: dickson@modholdings.co.za 

Website: www.modholdings.co.za 


FOCUS 

Far East Coal 

Far East Coal is a coal mining company with a focus 

on thermal coal production in South Africa, resource 

exploration and development. The company aims to 

create shareholder value through the acquisition, exploration 

and development of coal projects in South 

Africa. Our focus is on being a diversified operation 

which focuses on commodity processing with special 

interest in coal processing and advancing the development 

of coal projects in Mpumalanga and other 

regions, to service the public and private sector for 

power generation and industrial use. 

Tel: 078 868 9377 

Contact for all subsidiaries Tel: 078 868 9377 

Email: dickson@fareastcoal.co.za 

Website: www.fareast.coal.co.za 

Obovu Coal 

Is a coal mine situated in Mpumalanga Province which 

will supply bituminous coal to inland areas and the 

export market. Obovu Coal serves customers in the 

public and private sector by supplying coal in bulk 

for industrial, domestic and export use. We supply 

coal to the power generation industry, as well as 

other coal traders and end users. Obovu Coal aims 

to be is a national distributor, covering all provinces in 

South Africa as well as many countries on the African 

continent. Obovu Coal is a subsidiary of Far East Coal, 

where a coal processing plant will be situated. 

Tel: 078 868 9377 

Email: dickson@obovucoal.co.za 

Website: www.obovucoal.co.za 

Black Ingwe Coal 

Our main function is coal mining. Coal is valued for its 

energy content and, since the 1880s, has been widely 

used to generate electricity. The steel and cement 

industries use coal as a fuel for extraction of iron from 

iron ore and for cement production. 

We offer the following underground coal mining 

services: new development, board and pillar mining, 

mining with continuous miners, conventional drilling 

and blasting, continuous miner pillar extraction (total 

and partial extraction), establishing box cuts and edits 

into high walls, underground engineering infrastructure 

and beneficiation of coal services. 

Tel: 078 868 9377 

Email: dickson@blackingwecoal.co.za 

Website: www.blackingwecoal.co.za 

Fuel and Logistics 

Bakone Fuel and Logistics 

An integrated South African company engaged in 

the supply and delivery of petroleum and petroleumrelated 

products to niche markets within the bulk 

fuels trading environment, both locally and globally. 

What we do: Our operational footprint in Africa allows 

us to offer a full bouquet of oil and gas services, 

backed by international alliances, thereby ensuring 

world-class delivery every time. 

Our vision: To become the leader in petroleum supply 

based on our expertise and our commitment to 

sustainable earnings, growth, value creation and the 

re-investment in human capital. 

Transportation of fuel: Product transportation, 

market intelligence, distribution, marketing, 

trading and finance. 

Tel: 076 900 3933 

Email: dickson@bakonefuelandlogistics.co.za 

Website: www.bakonefuel.co.za 

Construction and civils 

Versich Construction and Civil 

Construction of township development infrastructure 

and general municipal services. Construction and 

servicing of bulk and internal water and sewer systems. 

Tel: 078 868 9377 

Email: dickson@versich.co.za 

Website: www.versich.co.za 

Red Construction & Civil 

Red Construction & Civil is a construction and 

maintenance company offering building and road 

construction and maintenance, sewer and drainage 

systems construction, industrial structures and 

general construction services. Customers include 

municipalities and industrial and domestic clients. 

Tel: 078 868 9377 

Email: dickson@redconstruction.co.za 

Website: www.redconstruction.co.za

Cambium Development 

Cambium Development is a professional South 

African civil construction service provider. The 

company was established to absorb the previously 

disadvantaged into mainstream economic activity for 

the betterment of life for the majority. The company 

has set its objective to improve the living conditions 

of communities. 

Tel: 078 868 9377 

Email: dickson@cambiumdevelopment.co.za 

Website: www.cambiumdevelopment.co.za 

Agricultural produce 

Mr Harvest Veggies & Fruit 

FOCUS 

We supply quality organic premium-quality fresh 

fruit and vegetables directly to the consumer. Mr 

Harvest Veggies & Fruit is a dynamic and progressive 

fresh-produce marketing and processing company. 

Tel: 078 868 9377 

Email: dickson@mrharvest.co.za 

Website: www.mrharvest.co.za 

Altitude Construction and Civil Consultants 

Altitude plans and constructs roads and streets. From 

residential streets to national highways connecting 

the whole country, Altitude Construction and Civil 

Consultants has it all covered. 

The company offers construction and maintenance 

services for roads, buildings, industrial structures, 

sewer and drainage systems, water drainage system 

construction and maintenance, water drainage 

systems along roads, pavements and within cities 

and shopping centres. 

Type of work: Commercial and residential 

construction, road construction and maintenance, 

drainage and sewer systems construction and 

maintenance. Shopping centres, office spaces and 

general commercial structures. 

Tel: 078 868 9377 

Email: dickson@accconsultants.co.za 

Website: www.accconsultants.co.za 

DKR Aluminium and Wood 

A specialist designer and manufacturer of aluminium 

and wooden door and window frames. We can 

design, manufacture and install most architectural 

aluminium door and window systems, including 

sliding/folding doors, casement windows, shop 

fronts, sliding doors and double-glazed units for the 

domestic and commercial markets. Our windows 

and doors are manufactured from the highest quality 

architectural aluminium. Our aim is to become the 

biggest provider to the architectural aluminium 

manufacturing trade. 

Tel: 078 868 9377 

Email: dickson@dkraw.co.za 

Website: www.dkraw.co.za 

Dickson Import and Export 

Dickson Export and Import helps feed the world 

by sourcing and exporting or importing complete 

food product lines and brands from fresh produce 

to beverages. We export fresh produce fruits and 

vegetables from South Africa to the world. Our fresh 

produce reaches its destination as fresh as when it 

was picked from the farm. 

Sea and air shipments transport organic, frozen and 

dry foods. We have developed strong relationships 

with many small, medium and large food 

manufacturers willing to offer their product range 

internationally. 

Tel: 078 868 9377 

Email: dickson@dicksonexportimport.co.za 

Website: www.dicksonexportimport.co.za 

General 

Boys Will Be Boys Entertainment 

Specialist event planning and management, festivals 

and concerts. 

Tel: 078 868 9377 

Email: dickson@bwbbentertainment.co.za 

Website: www.bwbbentertainment.co.za

OVERVIEW 

Water 

Restructured water boards have greater responsibilities. 


Companies and households are 

focussed on water saving like 

never before. 

• An agency has been created 

to help municipalities deliver 

water. 

A 

new organisation has been formed to help municipalities 

deliver services. Research has shown that many municipalities, 

which in South Africa are the main delivery agent of 

water and waste-water services, are either functioning very 

badly or barely functioning at all. 

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

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

presents an opportunity for innovative companies to provide better 

pipes and smart meters. 

The Municipal Infrastructure Support Agency (MISA) falls under the 

Ministry for Cooperative Governance and Traditional Affairs and will 

assist municipalities to plan for, provide and maintain infrastructure. 

The first action of MISA was to commission 81 engineers and town 

planners to get to work in areas that need the most help. 

A study jointly commissioned by the Water Research Commission 

and the South African Local Government Association (SALGA) found 

that the country’s four-in-a-million ratio of engineers is a long way from 

the required 50-per-million. One response at national level was the 

importation of Cuban engineers to assist in the short term. 

Another response to the municipal problem is a new national 

strategy which gives a bigger role to well-resourced water boards such 

as Umgeni Water and Sedibeng 

Water. Rand Water has expanded 

its original footprint and now 

serves an area which includes 

Gauteng, and parts of Limpopo, 

North West, Mpumalanga and the 

Free State. The national Minister 

of Water and Sanitation is the 

shareholder, representing the 

government of South Africa. 

In terms of the National Water 

Resource Strategy, catchment 

area management agencies 

have been established to oversee 

water resource management 

on a regional basis. The 

Imkomati-Usuthu Catchment 

Management Agency covers 

Mpumalanga, parts of Limpopo 

and part of the Kingdom of 

Swaziland. Another example 

of a CMA is the Breede-Gouritz 

Catchment Management 

Agency in the Western Cape. 

The National Water Resource 

Strategy takes into account 

groundwater to a far greater 

degree than previous plans. 

Extracting groundwater takes skill 

and money, but with droughts 

becoming commonplace it is 

likely to become a much higher 

priority in water planning. 


82

Innovation 

A long drought was finally broken in most of the country in late 2016, 

but the Western Cape continued to experience severe shortages until 

mid-2018. Tenders for desalination in various guises (including barges 

in Cape Town harbour) were issued and there is no doubt that a new 

phase in water management has begun. 

Water harvesting (including installing tanks to collect rain water from 

roofs) has not been comprehensively exploited. Innovators and investors 

in the sector have a lot of scope to develop products and systems to help 

South Africa harvest rain water, store water and reduce consumption. 

The Danish government has an agreement to help the South African 

government with water management and water efficiency. Companies 

such as smart-meter specialists Kamstrup are already active in the 

country. 

A Western Cape company has developed a mobile unit for the 

South African National Defence Force that can produce drinkable 

water from any source, including sea water. Malutsa’s Blesbok Project 

has the potential to be converted to civilian use in situations such as 

refugee camps or remote and dry areas which services cannot reach. 

The National Department of Science and Technology is piloting 

a Point-of-Use (POU) project in Malatane village in Limpopo, 

Eastern Cape and North West. The project is part of the department’s 

Innovation Partnership for Rural Development Programme (IPRDP), 

which is supported by the European Union. 

Large projects 

The distribution of South Africa’s water means that large quantities 

must be piped to urban concentrations. The Vaal basin, which serves 

the most populated and industrialised part of the country including 

Johannesburg, receives water from seven inter-basin transfer schemes. 

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

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

The completion of the De Hoop Dam in eastern Limpopo means 

that people living in small municipalities can now expect bulk water 

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


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

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

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

Umzimvubu Catchment Partnership Programme: 

www. umzimvubu.org 

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

OVERVIEW 

for bulk water supplies. The De 

Hoop Dam is the centrepiece 

in the large Olifants River Water 

Resource Development Project. 

In KwaZulu-Natal, the first 

phase of the Spring Grove Dam 

in the Mooi River area has been 

completed on schedule and has 

increased water supplies in the 

Umgeni River catchment area. A 

new reservoir (Waterloo) near the 

King Shaka International Airport, 

and serving this northern area, 

has been constructed as part 

of the master plan that will see 

water delivered to this reservoir 

from the Northern Aqueduct 

Augmentation Project. 

The Western Aqueduct 

project (valued at R864-million) 

and the associated Northern 

Aqueduct Augmentation 

Project will inject water into the 

rapidly developing area north of 

Durban. The Tugela Bulk Water 

Scheme (valued at R1.4-billion) 

will supply water to KwaZulu- 

Natal’s North Coast. 

A water supply and hydropower 

project is planned on the 

Umzimvubu River in the Eastern 

Cape, under the control of the 

National Department of Water 

and Sanitation. The Umzimvubu 

catchment and river system 

stretches for over 200km from its 

source in the Maloti‐Drakensberg 

watershed on the Lesotho 

escarpment to Port St Johns. 

Amatola Water is a leading 

water provider in the Eastern 

Cape. The body manages bulk 

water infrastructure across 

50 000km², encompassing the 

district municipalities of Chris 

Hani and Amathole and portions 

of other municipal areas. 


PROFILE 

Malutsa 

A leading South African water treatment company, 

specialising in the design, engineering and manufacturing 

of water treatment equipment and systems. 

World class 

In 2005 Malutsa played a role in relief efforts around the Indian 

Ocean tsunami, having been approached by government departments 

of the Maldives and South Africa, the Red Cross and the 

United Nations Children’s Fund. 

Co-founder of Malutsa, 

Nathan Herbert. 

What we do 

Malutsa constructs fully functional 

water treatment plants using the 

latest technology sourced locally 

and globally in order to meet the 

particular need of each client. 

Malutsa often supplies 

reverse osmosis water treatment 

plants to rural municipalities in 

water-stressed areas. Complex 

treatment processes ensure that 

the wastewater is compliant for 

discharge into environmentally 

sensitive areas. 

Key markets 

Anywhere that desalination, water 

treatment, effluent treatment 

and specialised separation of process 

streams is required. All major 

industrial sectors, municipalities, 

aid organisations, NGOs, military. 

Staff 

A staff complement of between 120 and 150 has extensive experience 

in water and wastewater treatment. The founders of the company 

have decades of high-level experience: Bernard Cannon in 

chemical engineering, Nathan Herbert in mechanical engineering. 

Since the 1980s both men have been pioneers in the development 

of industrial applications for tubular reverse osmosis and 

ultrafiltration membrane technology and systems. 

In terms of technology and chemical process engineering, 

Malutsa has the backing and support of some of the most experienced 

professional engineers in water and wastewater treatment. 

Malutsa also has supply agreements with and access to the 

technology of leading international companies in the chemical 

manufacturing, membrane and ultraviolet technology fields. 

Innovative technology 

The landmark Blesbok Project has created a cutting-edge 

mobile water purification plant for the South African National 

Defence Force through Armscor. This extremely adaptable, 

robust and efficient unit is now the focus of the world’s first 

continuous-line production of the mobile water plant at the 

new custom-built Malutsa factory in Wellington. 

Installer of ultraviolet (UV) disinfection 

systems 

Malutsa is the Southern African representative of the largest supplier 

of ultraviolet (UV) disinfection systems in the world, Trojan 

Technology. Malutsa has established the largest UV plants in Africa 

on behalf of Trojan. 


84

PROFILE 

The new office block and factory premises that Malutsa built to create an assembly line for production 

of the cutting-edge Blesbok water treatment plant. 

Vision 

We aim to be the leading local and global 

brand in bespoke and line-produced mobile 

and static water treatment and desalination 

systems. 

Mission 

Design, engineer, manufacture and install 

water treatment systems to empower industry, 

municipalities, militaries, hospitality and allied 

institutions with cutting-edge technology that 

meets immediate and strategic water needs. 

Strategic objectives 

Five fundamentals identified: 

• Create unique environment where selfactualisation 

meets excellent market 

offering. 

• Develop human capital holistically. 

• Excel in product offering. 

• Ensure company existence. 

• Develop a culture of ownership. 

Strategic intent 

Malutsa has an unwavering commitment to 

becoming a leading local and international player 

in a fiercely competitive and dynamically evolving 

water treatment environment. 

The uniqueness of the post-apartheid industrial 

engineering landscape allows our innovative and 

entrepreneurial company to model a new paradigm 

in developing human capital. We intend to fulfil 

the desire for world-class attitude and world-class 

capability. 

Our objective of redefining the stereotypical 

opinion of an African world player and leader in an 

intensely technical field is paramount to the passion 

and drive we advocate internally at Malutsa. 


Malutsa House, 1 Meent Street, Wellington 

Industrial Park, Wellington 7655 

Tel: +27 (0)21 864 2620 

Email: admin@malutsa.co.za 

Website: www.malutsa.co.za 


FOCUS 

Ground-breaking 

mobile unit delivers 

pure water – anywhere 

The Blesbok Project is a game changer for water specialists Malutsa. 

Blesbok is a mobile water provisioning system 

for the military which is able to purify 

all types of water including ground water, 

sea water and reclaimed water. In addition, 

the unit can exploit surface water, store water and 

deliver water packaging via sachets and bottles. 

The problem 

The South African National Defence Force needed 

to update its water provisioning systems for rapid 

deployment forces. Eight companies submitted 

bids. The signing of the deal by the Armament 

Corporation of South Africa (Armscor) to develop 

the state-of-the-art Blesbok Project was a watershed 

moment for Malutsa. 

Long associated with 21st-century technology 

and world-class standards in the field of water treatment 

plants, the large and sophisticated Blesbok 

Project has given the Malutsa staff a chance to shine. 

Experience 

The Malutsa team has experience of delivering highquality 

water in remote areas. With the North-West 

University, the Water Research Commission and 

the Meridian Trust, Malutsa delivered a desalination 

plant to the village of Madibogo, converting polluted 

ground water to potable water. When the Indian Ocean 

tsunami hit in 2005, Malutsa was part of the solution in 

providing water to disaster-struck communities. 

The solution 

Conceived and designed by Malutsa engineers and 

staff, the Blesbok mobile plant is tough enough to 

cater for bone-dry deserts and the bucking decks 

of navy boats at sea: it goes where the military goes. 

It is also versatile enough to use whatever water is 

available to produce drinkable water. The unit needs 

to be configured to cope with each kind of source 


86

FOCUS 

water (it can’t do two kinds at the same time) but 

easy-to-follow instructions are built into the unit and 

every component has its place so it’s easy to see if 

something is missing. 

Storage and delivery 

Water is stored in two ways: self-supporting tanks 

and bladder tanks. The self-supporting tanks have 

a capacity of between 10 000 and 40 000 litres 

while the bladder tanks can hold between 3 000 

and 10 000 litres. 

Blesbok is also a self-contained packaging unit. 

In an hour, the unit can either produce up to 1 200 

sachets of purified water or can fill up to 1 200 

one-litre bottles. 

Factory 

With the contract won, Malutsa had to produce 60 

mobile purification plants in short order. Having 

built and developed Malutsa House themselves 

(and essentially sponsored the creation of a construction 

company to get it done), Malutsa set 

about building another new warehouse and office 

complex across the road from headquarters in 

2015 to accommodate the punishing production 

schedule for Blesbok. 

By 2017, the spanking new factory space was 

up and running, together with an office complex. 

Altogether the new space covers about 4 000 

square metres within the Wellington Industrial Park. 

Applications 

The Blesbok Project was designed for military use 

and so there will be other militaries around the world 

who become potential buyers for this innovative and 

successful product. 

But the potential applications of the technology 

are vast. Few clients will be as demanding as the military 

and so there is enormous potential for producing 

versions of Blesbok that might be less robust but no 

less effective. Villages in remote areas that need pure 

water, aid agencies that regularly need to respond to 

crises such as flooding or earthquakes, refugee camps 

that spring up overnight without any infrastructure, 

government departments or research bodies doing 

work in water-scarce areas – all of these are possible 

applications for future iterations of Blesbok. 

Empowerment 

As much as Bernard Cannon and Nathan Herbert are 

the company founders and the institutional memory of 

Malutsa, the young staff members who are taking the 

tubular reverse osmosis and membrane technology 

forward are clearly committed to the project and eager 

to learn. The work ethic at the company is strong, and 

the sense of pride in the Blesbok Project is tangible. 


INTERVIEW 

Bernard Cannon 

BIOGRAPHY 

Bernard Cannon is a founder 

and Managing Director of the 

Malutsa Group of Companies 

which includes Malutsa Water 

and Bernali Designs. He is an 

entrepreneur who diversified the 

business to secure collateral for 

expansion of the group with the 

view to the creation of employment 

and opportunities. An analytical 

chemist by profession, he was 

part of the pioneering team that 

introduced tubular membrane 

systems into the water and 

wastewater treatment market in 


Meaningful 

empowerment: 

being the change in 

people’s lives 

Malutsa Managing Director Bernard Cannon 

shares his views on bringing the latest in 

water purification technology to market. 

How did you get started in this business? 

My business partner Nathan Herbert and I have been in the water purification 

business for the past 30 years, being involved since the advent 

of membrane technology in South Africa. Support and research by the 

Institute of Polymer Science at Stellenbosch University was formatively 

critical at this stage. Ground-breaking work on tubular reverse osmosis 

and ultrafiltration membranes led to pilot plant construction and work 

being conducted in the ‘80s. This led to accelerated industrialising of 

the novel technologies with the help of facilitating organisations like 

the CSIR and WRC. 

What is the ownership structure of Malutsa? 

The ownership has changed over the years. After the democratic 

elections, we had investment from a Scottish company, which took 

30% in 1997. In 2005 that shareholding was sold to Veolia Water but 

we bought out the whole company in 2016. Nathan is a mechanical 

engineer and I have the chemical engineering background, so we 

complement each other well. 

Why is empowerment so important for you? 

Historically, chemical engineering was a no-go for our people. We are 

very aware of the injustices of the past, and so empowerment is at the 

core of what we do. In everything we have done, it has been to grow 

people and expand their skills base. We have always done things for 

ourselves; we empower ourselves and others by this ethos. 

Please give an example. 

Even in construction of this building (Malutsa House, pictured 

above), we took people and helped them learn the skills to go into 

construction. After this building was finished, that group went on 

to form a construction company, and that has formed part our enterprise 

development drive. We have helped them financially, and 


88

INTERVIEW 

with business skills. This is enterprise development in real terms. 

We are exposing young people to opportunities and giving 

them choices. Studies are paid for and are actively encouraged 

and suppported. 

Tell us about your expansion across the road. 

Construction of the new factory and offices across the road (about 

4 000sqm) began in 2015 and was completed in 2017. We realised we 

need more space for the Blesbok Project. We needed to manufacture 

60 mobile purification plants, quickly. We needed to make a plan. 

We have also developed the idea of a continuous production line 

for mobile purifiers, the first of its kind in the world. We developed this 

entirely with our own in-house architects and engineers. 

How up-to-date is the technology you are using? 

We were part of the team that pioneered tubular membrane technology 

in South Africa, so we have been aware of all the changes along 

the way. This has allowed us to stay current. We can say with pride that 

we have been part of this technology journey all the way. 

Has your business journey been interesting? 

There have been many challenges along the way, but it has been 

exciting! The Blesbok Project was really delivered against all odds. We 

have been the developers and designers of these very unique mobile 

purification units, mobile bottling and sachet plants. 

Does the unit have wider applications? 

The military option is obviously quite expensive because of the very 

high specifications for the military. If we produce something that is 

less robust, then it will cost less. It 

can have multiple applications, in 

remote areas, for flood relief, etc. 

The list goes on. We are certainly 

looking at developing it further. 

Please comment on the 

South African water sector. 

It was intimated 20 years ago that 

South Africa was on the way to 

being an arid country. People 

ridiculed the idea, but now water 

is being talked about as “liquid 

gold”. For us it is not just about 

business, it is about keeping our 

people-centred approach. We 

really want to be the change in 

other people’s lives. 

We believe that water re-use 

is the key. The only thing holding 

back the development of 

this strategy is the psychological 

block. We are helping developers 

and building owners who want to 

make their buildings “green” or 

get off the grid. The hotel sector 

is another important sector. We 

also specialise in bespoke plant 

construction. 


OVERVIEW 

Engineering 

Major restructuring is under way. 

For many years leading up to the Soccer World Cup hosted 

by South Africa in 2010, the bigger engineering companies 

developed into conglomerates with several divisions and 

international operations. But the latest trend is for these 

large companies to unbundle and narrow their focus. 

Some firms have kept their focus on niche areas such as electrical 

engineering, construction, fluids control and project management. 

These firms continue to build on their expertise. 

The reason normally given for the move to restructure is the fact 

that the expected infrastructure spending boom after the World 

Cup has not materialised. This has led to many companies aiming 

to become more flexible and better able to pursue projects in other 

countries in Africa and overseas. 

With slow growth, national freight and logistics company 

Transnet has not been able to pursue its R300-billion infrastructure 

programme at the speed that it wanted to. 


Renewable energy projects 

are creating opportunities for 

engineers. 

Aspects of the programme, 

such as the acquisition of 

locomotives, are going ahead 

(despite some of the projects 

being the subject of corruption 

investigations) and the expansion 

programmes of the Gautrain 

and the Passenger Rail Agency 

of South Africa (PRASA) are 

providing work for engineers. 


90

OVERVIEW 

Infrastructure spending has only slowed, not 

dried up entirely. One province alone, Gauteng, 

spent R30-billion on infrastructure between 

2013 and 2016. A further R46-billion has been 

pledged for the years to 2019. In addition, 

Gauteng municipalities will spend R94-billion 

over the next five years using their city budgets. 

Some 31 major housing developments have 

been approved for the various development 

corridors around Johannesburg. These projects 

will attract public and private money. 

A study carried out by KMPG found that 

spending on infrastructure resulted in additional 

economic activity worth R26-billion and created 

92 000 direct jobs. A major provincial infrastructure 

project was the technically demanding 

Gauteng Freeway Improvement Project, which 

involved many companies and several joint ventures. 

GOBA Consulting Engineers and Project 

Managers supervised the design and construction 

of the project, as it did the even bigger Vaal 

River Eastern Subsystem Augmentation Project 

(VRESAP). This water project entailed redirecting 

water flows from one system to another to 

feed the petrochemical and mining industries 

of Mpumalanga. 

The Renewable Energy Independent Power 

Producer Procurement Programme (REIPPPP) 

has created an entirely new industry in less than 

seven years, with investment of about R200- 

billion in solar parks and wind farms. This has 

created huge opportunities for engineers of 

every sort. 

Two of the world’s largest coal-fired power 

stations are still under construction in Limpopo 

(Medupi) and Mpumalanga (Kusile) and there 

are several coal and platinum projects in both 

of those provinces that are also sources of work 

for engineering companies. The Northern Cape 

and North West are attracting new mines (zinc, 

copper) or investments in new smelters and 

processing facilities (platinum, manganese). 

South Africa has one engineer to every 3 166 

citizens, compared to Malaysia where the figure is 

543 citizens per engineer. The Skills Development 

Amendment Act is intended to improve the situation. 

Universities, universities of technology and 

TAKING THE INITIATIVE IS FAR BETTER 

Maitazwifoma Engineering and Consulting 

takes its name from the Tshivenda proverb 

“Maitazwitoma hafani na madzulafhedzi”, which 

means that an innovative person who takes 

initiative is far better than one who is idle. 

Scanning the list of services offered by 

Maitazwifoma, it is easy to see that this is a 

group of committed contractors, engineers and 

plumbers who really want to work. 

Services range from electrical, construction 

and civil construction, to plumbing, road construction, 

concrete coring and waterproofing. 

The company is also available to provide cleaning 

services, staff transport and general tasks 

such as painting, paving, partitioning and rubble 

removal. 

With more than seven years of experience 

in building expertise in a range of construction 

and engineering disciplines, the leadership and 

staff of Maitazwifoma are enthusiastic and 

hard-working. 

Clients include Attaq and Broll, WBHO 

(Maitazwifoma were subcontractors on the 

Newtown Junction Project), Jozi@Work, on 

behalf of the City of Johannesburg and the 

Johannesburg Development Agency. 


OVERVIEW 

companies are increasing their focus on 

the training of engineers. 

The Engineering Council of South 

Africa (ECSA) has started a programme 

where trainees can earn certificates in 

specific disciplines from a range of institutions. 

The qualifications are in line 

with the council’s Exit Level outcomes. 

Six of South Africa’s biggest construction 

companies have established a 

R1.25-billion skills fund. 

POLYURETHANE PRODUCTS AND REFURBISHMENT 

Restructuring 

Murray & Roberts, a giant and diverse 

company, disposed of Murray 

& Roberts Infrastructure and Building 

Platform (MRIB) in 2016 to focus on 

procurement, project engineering 

and construction in certain resource 

sectors. Firefly Investments, the consortium 

that bought MRIB, is led by 

Southern Palace, which includes among 

its shareholders some MRIB managers 

and the Government Employees 

Pension Fund (GEPF). The transaction 

goes a long way to creating more diversity 

in the ownership in the construction 

and engineering sector. 

Netha Engineering Technology supplies high-quality 

processing equipment for the relevant application. 

The company specialises in polyurethane screen 

panels. 

Dedicated on-site teams deal with screen panel 

maintenance. The removal and installation of screen 

panels is done on-site. 

Netha Engineering Technology also offers polywedge 

wire panels, spray nozzles, polyurethane liners 

and self-cleaning spray bars. The company aims to 

become a diversified supplier of processing equipment. 

The refurbishment processes offered by Netha 

aims to restore the condition of equipment at minimal 

cost. Equipment is considered refurbish-able if 

the cost of repair is less than 70% cost of new item. 

Refurbishment is done with both ceramic and rubber. 

Refurbishments can either take place on- or off-site 

depending on the degree of work and turnaround 

time needed to complete the work. Refurbishment 

and manufacture of the following equipment is currently 

done: hydro-cyclones, tanks and sumps, transfer 

chutes, screen under-pans, steel pipes, plastic 

pipes and HDPE pipes. 

Genrec, a large steel engineering and fabrication business 

company that started out on the gold fields of early 

Johannesburg, was another Murray & Roberts company to 

be sold to the Southern Palace Group. It has a large plant 

outside Johannesburg at Wadeville and is involved in South 

Africa’s two biggest power station construction projects at 

Medupi and Kusile. 


92

OVERVIEW 

Group Five also sold part of its business (Group Five Pipe) to a 

black-owned entity in 2017 but the most significant change came 

in the group’s structure. A stand-alone construction division for 

South Africa (where the company has more than 7 400 employees) 

is part of a drive by the company to focus on smaller infrastructure 

projects and to dispose of manufacturing assets. Like most 

large South African firms in the sector, Group Five has significant 

investments offshore. 

Transnet Engineering is in the process of changing its focus 

from only providing engineering services to other com- 


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

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

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

South African Consulting Engineering Firms: 

www.consultsa.co.za 

Southern African Institution of Civil Engineering: 

www.civils.org.za 

panies in the Transnet group 

to becoming a multi-faceted 

business. The company is exploring 

opportunities in Africa 

to provide maintenance, repair 

and overhaul services (MRO). As 

an original equipment manufacturer 

(OEM) with the ability 

to manufacture locomotives, 

rail wagons and coaches, TE 

is opening up a wide range 

of markets not only in South 

Africa but in Africa and the rest 

of the world. The Trans-Africa 

Locomotive is the first locally 

designed locomotive produced 

by TE in its Koedoespoort factory. 

There are seven business 

units located at Koedoespoort, 

including a foundry. 

Maitazwifoma Engineering and Consulting 

Be part of the solution. 

Maitazwifoma Engineering and 

Consulting is a 100% black-owned 

full-service construction engineering 

company based in Johannesburg. 

The company specialises in the 

following trades of the construction 

industry: 

• electricity 

• building construction 

• civil construction. 

The staff of Maitazwifoma comprises 

qualified individuals who have extensive 

experience in the fields of civil, building 

and electrical engineering. 

The company is registered with the 

Construction Industry Development 

Board (CIDB) and is compliant with the 

following bodies: SARS, NBCEI, ECA, 

COIDA and CIDB. 

In electrical engineering services include: 

Heavy current engineering, electrification, 

general electricity maintenance and COC 

issuing on completion of the job or project. 

Other services: 

• Concrete coring and waterproofing. 

• Plumbing: professional, fast and 

dependable services. Fully licensed 

plumbers, drain technicians, HVAC 

and water restoration technicians 

can handle any plumbing, sewer, 

furnace or restoration problems. 

• General services: Transport is available 

for our teams of contracted 

labourers to sites. Tasks can include 

garbage and refuse removal, painting, 

brick-laying, paving, rubble removal 

and partitioning. 

Contact details: Physical address: 209 Silverdale, No 69 Claim Street, Hillbrow, Johannesburg 2001 | Tel: +27 11 048 2907 

or +27 11 049 6297 Mobile: 072 829 8852 | Email: info@maitazwifoma.co.za | Website: www.maitazwifoma.co.za

PROFILE 

Netha Engineering 

Technology 

Get it right the first time. 

Netha Engineering Technology is a proprietary limited company 

located in Alberton. The company offers off- and onsite 

engineering services to the minerals processing plants 

generally within the Southern African mining industry. 

The company is under the leadership and directorship of Neo 

Gumede. She is the founder and owner of the company and has 12 

years’ experience in process engineering, manufacturing and process 

equipment supply. 

Vision 

To become a leading supplier of high-quality products and engineering 

solutions to the mineral processing industry, within the shortest 

turnaround time and the most cost-effective price. Through dedicated 

people, Netha Engineering Technology endeavours to provide an 

unparalleled aftermarket support to our clientele, backed by stringent 

in-house quality control systems. 

Services 

• Equipment manufacturing and refurbishment including wear 

lining solutions (tiling). Refurbishment is done with both ceramic 

and rubber and the scope of refurbishment and manufacture 

currently includes the following equipment: tanks and sumps, 

transfer shuts, steel and plastic pipes. 

• Polyurethane products, including screen panels, spray nozzles, 

liners and self-cleaning spray bars. 


Physical address: 10 Launceston Road, Unit 6 St Teresa Estate, 

Alberton, Johannesburg 

Contact person: Neo Gumede, Managing Director 

Email: gumeden@netha-tec.co.za 

Tel: +27 11 044 9015 | Cell: 081 458 8798 

Fax: 086 541 8615 

Email: enquiries@netha-tec.co.za 

Website: www.netha-tec.co.za 

Mission 

To provide high-quality engineering 

solutions and services at 

a highly competitive price within 

the shortest lead times possible. 

“Get it right the first time”. It is the 

company’s goal to have 100% customer 

satisfaction with respect 

to quality, professionalism and 

speed to market. 

Values 

Netha Engineering Technology 

strives to achieve and live the 

following non-negotiable values: 

• Integrity and trustworthiness: 

We earn your trust by doing 

what we say we will do. 

• Respect: We respect our clients 

and our employees. 

• Accountability: We take ownership 

for our own actions. 

• Quality: We do it right the 

first time. 

• Innovations: We use innovative 

technologies and ideas to stay 

ahead of our competitors. 

Netha Engineering Technology 

continues to seek opportunities 

to add to the list of processing 

equipment we supply in order 

to become a diversified supplier 

that complements market 

needs for innovative technologies 

that are efficient and costeffective. 


94

INTERVIEW 

A winning combination 

in serving the mining 

sector 

Netha Engineering Technology Managing Director Neo 

Gumede explains her company’s competitive edge. 

Neo Gumede 

What are the core services that Netha Engineering 

Technology provides? 

Netha Engineering Technology is a wear-lining solution company 

based in Meadowdale. We protect the steel and increase the life of 

the steel by installing high alumina tile and polyurethane liners. Netha 

manufactures and maintains cyclones, transfer chutes, steel tanks and 

launders. Netha Engineering manufactures vibrating screen panels for 

the mining industry. 

In what sectors do you operate and where are you noting 

growth? 

Mining industries: coal, gold and platinum. Coal mining in Mpumalanga 

is showing good growth potential. 

BIOGRAPHY 

Neo Gumede is the founder 

and owner of Netha Engineering 

Technology and has 12 

years’ experience in process 

engineering, manufacturing 

and process equipment supply. 

She has extensive metallurgical 

experience in gold, platinum, 

iron ore and diamonds. She 

has also worked in the mining 

industry as a metallurgist and 

as an equipment supplier in 

the manufacturing sector. After 

conducting sales for some time, 

Neo moved up the ranks to take 

on leadership roles within the 

same sectors. 

What gives Netha the competitive edge? 

Our competitive prices, unbeatable lead times, metallurgical expertise 

and best-quality products in the market. 

How did your journey in engineering begin? 

It began in 2003 when I started my career as a chemical engineer at 

Vaal University of Technology. I then practised metallurgy for 12 years 

in various industries like mining, manufacturing and sales. 

How did you overcome the obstacles faced by women in 

the field? 

By developing a thick skin and becoming highly knowledgeable in 

everything I do. 

Have things improved in the current era? 

Yes, things have definitely changed. Women are now recognised, and 

people are more curious about the capabilities of women in mining 

or engineering. 


The Black Management Forum 

The BMF is a thought leadership organisation founded in 

1976, with the main purpose of influencing socio-economic 

transformation of our country, in pursuit of socio-economic 

justice, fairness and equity. 

The organisation stands for the development and 

empowerment of managerial leadership amongst black people 

within organisations and the creation of managerial structures 

and processes, which reflect the demographics, and 

value of the wider society. 

For detailed information on how to become a member, please contact 

Thulisile Simelane. Email: thulisile@bmfonline.co.za 

www.bmfonline.co.za BMFNational@ BMFNational @BMFNational

ETHICAL LEADERSHIP 

AS A CATALYST FOR TRANSFORMATION 

AND INCLUSIVE ECONOMIC GROWTH 

WHAT WE DO 

• BMF Branch, Provincial and National Events 

• BMF Networking & Engagement Opportunities 

• BMF Managerial Leadership Development Programmes 

• BMF Mentoring & Coaching Programmes 

• BMF Leadership Executives Search 

• BMF Advisory Services 

• BMF Achievement Awards 

• BMF Publication 

• BMF Apparel 

KEY INITIATIVES 

• Young Professional Development Programmes 

• Duke Corporate Education Programmes 

• Maduke Lot Ndlovu Legacy Trust 

• Gender Equity Catslysts 

• SMME Desk 

• Managerial Leadership 

Development Programmes 

Provided by Various 

Corporate Members (e.g 

Deloitte, Sanlam, PwC, 

PPS, Nedbank, Allan Gray) 

Corporate Member 

Fee: R34,500 incl. VAT 

Contact: 

leswene@bmfonline.co.za 

Individual Member 

Fee: R747.50 incl. VAT 

Contact: 

thulisile@bmfonline.co.za 

Young Professional 

Fee: R747.50 incl. VAT 

Contact: 

thulisile@bmfonline.co.za 

Student Chapter 

Fee: University Specific 

Contact: 

leswene@bmfonline.co.za

OVERVIEW 

Construction and property 

The shopping mall trend continues to grow. 

A 

big new development on Oxford Road in the Johannesburg 

suburb of Rosebank says a lot about the South African construction 

and property sector. The 300 000m² Oxford Parks 

mixed-use development by Intraprop began construction 

in 2017 and the first phase is expected to be valued at about R1-billion. 

Firstly, South Africans love shopping malls. The South African 

Council of Shopping Centres calculates that the country has the sixthhighest 

number of shopping malls in the world. R2-billion was recently 

spent on Menlyn Park in Pretoria to expand it to 177 000m² of gross 

lettable space while the Gateway Theatre of Shopping in Durban, 

South Africa’s second-biggest mall, will spend R750-million in 2018. 

Limpopo’s provincial capital Polokwane has had the super-regional 

Mall of the North since 2011. 

Secondly, development often follows existing patterns (Rosebank- 

Sandton is already the richest and densest retail and office precinct in 

Africa). Many of South Africa’s biggest firms have their headquarters 

in this area: BPSA will take up residence in Oxford Parks. Thirdly, the 


More South Africans live in 

flats than ever before. 

concept of “lifestyle” malls (combining 

apartments with office, 

entertainment and retail space) 

has caught on. The best known 

of these is Johannesburg’s 

Melrose Arch. 

Finally, the Oxford Parks 

project illustrates a big shift in the 

construction sector away from 

large conglomerates towards 

smaller, black-empowered 


98 

cont on pg 100

Mueletshedzi Logistics 

Meeting and exceeding the petroleum needs of clients. 

FOCUS 

Mueletshedzi Logistics (trading as MLTL) runs a dedicated 

fleet of trucks and tankers to provide a logistical backbone 

in order to meet and exceed the petroleum needs 

of clients. 

Mueletshedzi Logistics supplies petroleum products to other companies, 

retailers’ partners and all types of industries across Africa. MLTL 

is an Authorised Distributor for Total South Africa in the Southern 

African market. The company also offers storage facilities for petroleum 

products. 

Mission statement and values 

To supply in a safe, dependable and reliable manner all products and 

related services throughout sectors and industries in chosen South 

African regions. 

• Reliability 

• Integrity 

• Accountability 

• Commitment 


Tel: +27 11 695 4845 

Mobile: +27 76 847 2030 and +27 81 359 4807 

Fax to email: 086 566 3606 | Email: info@mltl.co.za 

Website: www.mltl.co.za 

Services 

Supply and installation of fuel 

tanks. Supply of petroleum products 

(aviation gasoline, biofuels, 

diesel, jet fuel, liquefied petroleum 

gas, paraffin and petrol). 

Lubricants. Bitumen. Garage 

cards. Earth-moving equipment 

(yellow machines) including excavator, 

TLB, grader, roller, frontend 

loader and articulated dump 

trucks. Parrot Products. 

Transportation of a wide range 

of machinery and products using 

the following vehicles and 

equipment: low-bed, flat-deck, 

fuel tanker, side tipper, six cube 

tipper and 10 cube tipper. 

Target markets 

The target markets are haulage 

companies, white-site (unbranded) 

filling stations, truck stops 

and end users. The company 

intends to be the biggest supplier 

in the South African provinces 

of Gauteng, North West, 

Northern Cape and the Eastern 

Cape. Externally, the focus is on 

Botswana, Zimbabwe, Malawi 

and Zambia. 


OVERVIEW 

companies. Like many such multi-disciplinary 

construction and engineering firms, Murray & 

Roberts has decided to unbundle and the sale 

in 2017 of Murray & Roberts Construction to a 

black-led consortium is part of a wider trend. The 

Southern Palace Group is the majority shareholder 

of the company (renamed Concor) with the Public 

Investment Corporation (PIC) holding 25%. 

Supporting this trend is the fact that two of 

South Africa’s nine listed construction companies 

(Ensor and Basil Read) entered businesses rescue 

in mid-2018. 

Away from the glitz of multi-purpose malls and 

towering office blocks, Statistics SA has found that 

the percentage of South Africans living in flats has 

risen markedly. Whereas 26 out of 100 approved 

plans in 2013 were for flats, this figure reached 59 in 

2016. Although the total number of people living in 

flats is still relatively small (5.4%), this figure will rise 

as urbanisation increases. 

BAKENBERG READY MIX STAFF READY TO SERVE 

Bakenberg Ready Mix is a dynamic company 

operating in the Waterberg District Municipality. 

Founder and owner David Mnisi pulled together 

resources and skills which he acquired in more 

than a decade of working in a variety of sectors. 

He has worked extensively as a marketing 

executive for FMCG firms in Gauteng. Other 

business experience ranges from working as a 

sales representative and restaurant owner to 

mention a few. 

Frans Makgoka is the operations man at 

Bakenberg Ready Mix. With experience in the 

mining sector, he moved into the business 

management field where he is now responsible 

for the coordination of operations of the 

company and batching. 

Transport and client relations are the domain of 

Jimmy Tlhabane. An enthusiastic businessman 

himself and a people-oriented person, Frans 

brings energy and vibrancy to the organisation. 

He is obsessed with efficient service delivery. 


100

an Development Zone 

perty regeneration and growth through tax incentives. 

OVERVIEW 

uplace Properties is investing in providing accommodation in central Johannesburg. 

In order to fight urban decay and to encourage investment in inner 

cities, a tax incentive was created called the Urban Development huge potential. The develop- 

believes the rental market has 

rder to fight Zone urban tax incentive. decay The and UDZs to for encourage Johannesburg investment and Cape Town in were inner ers of the trendy Maboneng 

first allocated in 2004. The inner city of Johannesburg, comprising Precinct are also very upbeat. 

es, a tax incentive was created that applied to major South African 

just less than 18km², is the largest UDZ in South Africa and it is Boost Property Management 

es. This is called expanding the its Urban footprint. Development Zone tax incentive. The is building a 10-storey apartment 

block in Hillbrow. The 

Zs for Johannesburg Making inner and cities Cape more Town liveable were is a first global allocated trend. The in move 2004. 

back to cities is spurred partly by the relative cheapness of property R40-million Kaptejn Corner will 

nner city of Johannesburg, comprising just less than 18km², is the 

in CBDs, legislation encouraging inner-city investment and even a have 128 apartments. 

st UDZ in South perception Africa that and suburbs it is expanding are boring. its footprint in response An innovative approach 

nificant successes Private that developer have Indluplace been achieved. Properties has purchased nine large to unlocking the value of land 

he Urban Development 

apartment blocks, 

Zone of 

tax 

which 

allowances 

is shown above, 

(Section 

taking its 

13quat) 

total in the traditional areas is under 

consideration. The hous- 

buildings in central Johannesburg CBD, Berea and Hillbrow to 23: 

ide for an 

33% 

accelerated 

of the units 

depreciation 

are bachelor pads, 

allowance 

22% are two-bedroomed 

on the costs 

flats. 

of 

ing 

development: 

agency of the Limpopo 

ings erected, The added listed company to, extended (its major or shareholder improved is Arrowhead) inside a UDZ. intends The Economic Development Agency 

h African Revenue to “aggressively Service grow (SARS) its portfolio” has of extended high-yielding the properties incentive as it to (LEDA) has proposed a plan for 

the conversion of Permissions to 

arch 2020. Municipalities can apply for extension to the existing 


Occupy (PTO) to title deeds in 

s via the National Treasury. There are five requirements to qualify deep rural areas such as Vhembe 

Black Business Council in Built Environment: www.bbcbe.org 

UDZ tax deduction. These relate to the building, the nature of the and Sekhukhune. The National 

Construction Industry Development Board: www.cidb.org.za 

Home Builders Registration 

, trade considerations, Construction the Industry specifics Training of Authority: ownership www.ceta.org.za and to the dates 

Council (NHBRC) will consider 

e applications. South The African fact Property that the Owners incentive Association: has been www.sapoa.org.za extended to the proposal. centre planned. 

gives investors a good chance to take advantage of favourable 

itions in Johannesburg. 

he Johannesburg Social Housing Company (Joshco) has plans to 

ide affordable rental accommodation in 12 inner-city buildings 

were recently identified for that purpose. But the main target for 

reaching out to other areas a 

regions on the city’s outskirts. T 

city wants to achieve nothing l 

than the “structural transform 

tion of the inner city’s econom 

and physical landscape”. 

The City of Johannesburg h 

identified the following nodes 

• Carlton Precin 

Johannesburg’s tall 

building attracts touri 

undergoing revamp; S 

Rink TV and film studio b 

ing developed; conferen 

• Park Station: intermo 

node catering for cars, b 

es, rail commuters and ta 

Gautrain link to OR Tam 

International Airport; w 


PROFILE 

Maritz Electrical 

Delivering projects within budget, on time and 

to clients’ expectations, every time. 

From commercial electrical applications to 

high-end floodlights and sports stadiums 

and spotlights using state-of-the-art products, 

Maritz Electrical delivers end-to-end 

electrical solutions tailored to clients’ needs. 

Delivering service excellence and exceptional 

quality are key differentiators for Maritz Electrical 

and what clients have come to expect. 

Maritz Electrical is an empowerment company 

established by Kurt Maritz in January 2000. Maritz 

Electrical is BBBEE compliant (Level 1 contributor). 

It is ISO 9001 certified and fully compliant with the 

Occupational Health and Safety Act with a full-time, 

trained safety representative. 

In 2018 the company’s three branches were 

consolidated, with all 150 staff members now 

working out of a newly renovated 3-000-squaremetre 

factory and office facility in Athlone. The 

company employs full-time, licensed installation 

and master electricians. The company’s artisans 

have completed the ORHVS. 

Maritz Electrical places great emphasis on its 

relationship with clients, private or commercial, 

and prides itself on the ability to respond to any 

contracting requirements in an efficient and costeffective 

way. Maritz Electrical aims to contribute 

positively to the South African economy, provide 

excellent workmanship and be a leader in quality 

service provision. 

World first 

In 2017, St George’s Park became the world’s first 

International Cricket Council-compliant, LED-lit stadium 

and the first such stadium to be fitted with 

theatrics. Maritz Electrical won the contract to install 

the Musco Lighting system at the venue after visiting 

the US with officials from Eastern Province Cricket 

and the national cricket board. 

Over four days in December 2017, the famous 

ground celebrated the landmark of being the first 

South African venue to host a day-night Test match, 

against Zimbabwe. The R27-million contract was 

completed on time and on budget by a team from 


102

PROFILE 

Maritz Electrical led by Warren Williams. Two project 

managers from Musco Lighting supported the 

installation. The lights on top of the Duck Pond 

Pavilion were hoisted at night, the process being 

illuminated by floodlight. 

Select current projects 

Coetzenburg Athletics Stadium is undergoing a R40- 

million revamp and Maritz Electrical is part of the 

team of contractors charged with making it happen 

to the highest specifications. Apart from Varsity 

Athletics and national championships, Stellenbosch 

hosted more than 150 international athletes over 

the summer as they prepared for the World Athletic 

Championships. 

Maritz Electrical has been contracted by the 

municipalities of Stellenbosch and Overstrand for 

electrification of large housing projects. This is a 

relatively new area for Maritz and one in which the 

company is building specialist skills. 

Other flagship projects 

• Cape Town Grand Parade: Re-lit with Musco 

fixtures to improve the lighting level to reduce 

the personal crimes being committed because 

of poor lighting. 

• Cape Town Festive Lights including Adderley, 

Strand and Main streets: Maritz Electrical installs 

the popular Festive Lights. 

• Security Lighting for Waste Water Treatment 

plants: Musco’s metal halide and LED system is the 

preferred product of Cape Town’s Department 

of Water and Sanitation and Maritz Electrical is 

the proud installer. 

Services 

Maritz Electrical works closely with its customers, 

ensuring that the task or project is completed on time 

and on budget, using the highest quality products 

available. In particular, Maritz Electrical has become 

a premier supplier and installer of dedicated sports 

lighting. This includes schools, universities and multisports 

stadia. 

The company works in all residential and commercial 

areas of electrical installation and maintenance. 

Its electrical services include project 

management, design, supply and installation of 

electrical systems including: 

• Electrical and reticulation services 

• Testing and commissioning 

• Water analysis, monitoring, management and 

purification systems 

• Lighting and power 

• External lighting 

• Mechanical services integration 

• Emergency switchgear 

• HV and LV switchgear 

• Pre-planned maintenance. 

Professional memberships 

BBBEE Level 1. ISO 9001 certified. Electrical 

Contractors Association. Master Builders 

Association member. Member of South African 

Institute of Lighting (SAIL). 

CONTACT DETAILS: 

Physical address: 11 Noll Avenue, Athlone, Cape Town 7764 

Tel: +27 21 703 0867 

Fax: 0864 552 436 

Email: tenders@maritzelectrical.co.za 

Website: www.maritzelectrical.co.za 


PROFILE 

Mamli Projects 

Experienced staff offer expert construction services. 

Objectives 

To expand our business coverage 

area in terms of rendering 

services. To render high-quality 

services, thus maintaining the 

good reputation of the company. 

To empower as many communities 

as possible, especially black 

communities, taking into consideration 

the youth in our region. 

To stimulate local and regional 

economic growth. 

Mamli Projects is a BBBEE Level 1 construction company 

providing services in building construction, renovations, 

alterations, paving, demolition and refurbishment. 

Mamli Projects is a broad-based black economic 

empowerment company, 100% owned by an indigenous woman, 

Josephine Mamlingaphi Nkosi. It strives to attain success through determination, 

focus and hard work, giving special attention to training 

of the unskilled youth, women, disabled people and the previously 

disadvantaged. 

Mission 

Mamli Projects strives to be a leader in providing value-added construction 

services to our clients by creating a successful partnership 

with them throughout the construction process. Our pledge is to 

establish lasting relationships with our clients by exceeding their 

expectations and gaining their trust through exceptional performance. 

Vision 

Our goal is to become the preferred company for construction in both 

the public and private sectors through diligent commitment and to 

provide self-sustainability to all our employees. 

Our services 

The company has extensive 

experience in providing expert 

building services on a wide range 

of demolition, construction and 

refurbishment projects across all 

sectors of the industry: 

• building construction 

• renovations and alterations 

• paving. 

Equipment 

To enable our experienced workforce 

to do quality work, good 

equipment and tools have been 

acquired over the years. This 

includes six bakkies, a six-ton 

Toyota truck, two soil compactors, 

five generators, two dumpy 

levels and a V-Tec trailer. We also 

use a roller, scaffolding, a Bobcat 

JCB155, a Bomag Single Drum VIB 

Roller BW55E, Bomag Vibrating 

Plates BT65/4, a Bomag Double 

Drum Roller and a Bomag Stroke 

Tamper BVP18/4. 


104

PROFILE 

Completed projects 

Some of the projects completed by Mamli Projects for the 

Department of Public Works include the construction of MC 

Zitha Combined School at Masibekela, the erection of palisade 

fencing and water supply at Soshanguve High School, the 

construction of 19 VIP toilets at Mgubho Primary School and 

the construction of six water-borne toilets at Engwenyameni 

Primary School. 

Other projects and clients include the construction of 

Thembisile Fire Station at Tweetfontein (Nkangala District 

Municipality), construction of an animal clinic at Casteel 

Bushbuckridge and the renovation of the Lowveld Agricultural 

College (Mpumalanga Department of Agriculture) and the 

renovation of chalets in the Kruger National Park (SANParks). 

For the National Department of Public Works, Mamli Projects 

worked for five years on the maintenance and servicing of buildings, 

civil mechanical, electrical infrastructure and installation at 

the Lebombo Port of Entry. 

Current projects 

Three current projects show Mamli’s versatility: 

Project Client Value Engineers 

Construction of Bhambanana campus 

Department of Higher Education 

R167.4-million 

Hector Makgatho 

of Umfolozi TVET College 

and Training 

Installation of generator sets at police 

station 

Department of Public Works R4.1-million AES Consulting 

Installation and upgrade of kitchen 

equipment at military base 

Department of Public Works R2.4-million Seabo Consulting Engineers 


Contact person: Mamlingaphi Josephine Nkosi 

Physical address: 189 Schoemansdal, Shongwe Mission 1331 

Postal address: PO Box 861, Shongwe Mission 1331 

Tel: +27 13 781 0702 | Fax: 27 13 781 0701 

Fax 2 email: 086 514 5811 | Email: admin@mamliprojects.co.za 

Website: www.mamliprojects.co.za | Company registration: 2013/175770/07 


PROFILE 

Bakenberg Ready Mix 

A competitive edge in concrete supply. 

price structure that is differentiated 

to accommodate various levels of 

affordability. It is, however, our passion 

for great service and commitment 

to excellence that make us 

the ideal professional service provider 

to partner with you for you. 

Bakenberg Ready Mix is a division of Mnisi Turnkey Projects 

(Pty) Ltd, a proudly South African, black-owned company 

based in Bakenberg Village, Mokopane, Limpopo Province. 

It was founded in 2016 by David Walter Mnisi. He saw an opportunity 

to create a professional, client-oriented, ready mix concrete 

supply company to cater for those who value professional services. The 

building industry is gaining momentum in the villages and elsewhere 

in Limpopo. Bakenberg Ready Mix currently operates a mobile batch 

plant with two ready mix trucks for any project needs. 

The company is involved in all kind of road building, RDP housing 

and the mining sector. Job opportunities for local communities is a 

high priority and the company engages in social responsibility projects. 

Mission 

To be a supplier of choice and offer the best product (concrete) in the 

Waterberg region of Limpopo. 

Competitive offering 

Clients place a high premium on value for their money. In order to 

maintain a satisfied client base, Bakenberg Ready Mix has designed a 


Physical address: 93A Mmotong Village, Bakenberg, 

Mokopane, 0611 

Tel: +27 15 110 0150/ 083.317.0294 | Fax: 086.564.1645 

Email: info@bakenbergreadymix.co.za 

Website: www.bakenbergreadymix.co.za 

Branches 

Mokopane, Lephalale and 

Rustenburg. 

Current project 

Client: Conco Group/ Eskom 

Borotho Powerline Project. Supply 

of 35mpa and 40mpa ready mix 

concrete since November 2017. 

Our plant is based in Marken, 

Limpopo. 

Client: Stefanutti Stocks. 

Concrete supply on Rietfontein 

tar road project. 

Other services 

Building materials, crusher sand 

and dust, manufacture of bricks, 

concrete and stone. 


106

INTERVIEW 

Concrete opportunities 

in rural areas 

Bakenberg Ready Mix founder David Mnisi explains how 

the home-building industry is booming in Limpopo. 

David Mnisi 

What are your main services? 

We supply ready mix concrete, concrete stone, 13mm and 19mm stone, 

and bricks. 

Where did you get the idea for starting this business? 

The idea to start this business came through research into the market. In 

travelling around Bakenberg and surrounding areas for other business 

that I was doing, I became aware of the need for a professional, clientorientated 

ready mix concrete supply company to cater for those who 

value professional services. 

In what sectors do you operate? 

We deal with both the public and private sector, mostly in the 

construction industry. 

BIOGRAPHY 

For more than a decade, David 

Mnisi worked in the business 

world, gaining experience in a 

wide range of positions in different 

economic sectors. Having 

been a marketing executive in 

the fast-moving consumer goods 

field, a restaurant owner and at 

one point being responsible for 

sales, David developed a sound 

appreciation of customer needs 

and the market. In 2016 he decided 

to harness these skills and 

resources into starting a business 

in the Bakenberg area. 

Where has the growth been in the last few years? 

House building is the subsector that has grown the most in the last few 

years. The building industry is gaining momentum in our villages and in 

Limpopo Province more generally. We currently operate a mobile batch 

plant with two ready mix trucks for any project needs. 

What areas do you operate in? 

We are based in Bakenberg (Mokopane, Limpopo) but our mobile batch 

plant allows us to go anywhere in the country. 

Please tell us about any projects you have successfully 

completed. 

We supplied Stefanutti Stocks Roads & Earthworks for a rural road they built 

to connect villages in the Rietfontein area. We were also contracted as a 

supplier for Eskom’s Medupi-Borutho powerline project from Lephalale 

to Bakenberg. 

Do you plan to expand in the near future? 

We have plans to buy new plant and two new trucks in order to expand 

our footprint throughout South Africa. 


OVERVIEW 

Manufacturing 

Incentives are in place to support new investment. 


US tariffs on steel imports 

will affect South Africa. 

• The leather sector is making 

a comeback. 

The manufacturing sector employs the third-most people of 

South Africa’s economic sectors, about 1.7-million, after financial 

services and retail. 

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

lead promoter of the sector. The main vehicle for the dti is the Industrial 

Policy Action Plan (IPAP) which is periodically updated with particular 

focus areas. In marking the 10th version of IPAP in 2018, the department 

noted that some “deep-seated structural problems” in the domestic 

economy are still in place. 

The Manufacturing and Competitiveness Enhancement Programme 

(MCEP) of the National Department of Trade and Industry (dti) announced 

in 2017 that it had disbursed a total of 1 552 grants to the 

value of R5.8-billion which had resulted in 230 000 jobs being “sustained”. 

Plastics, pharmaceuticals and chemicals received 31% of the 

money, metal fabrication, capital and real transport equipment 28% 

and agri-processing 21%. 

Because of the dti’s Clothing and Textile Competitiveness Programme, 

that sector currently employs around 95 000 workers, contributing 8% 

to manufacturing GDP and 2.9% to overall GDP. In the leather sector 22 

new factories have been opened, supporting 2 200 jobs. Manufacturing 

value addition for companies receiving the incentive has grown by 

60.8%, and productivity by 22.3%. 

The various IPAPs are intended to create policy certainty to stimulate 

investment. The creation of an investment “one-stop shop” is another measure 

aimed at the same goal. Investor support is also available in terms of 

tax incentives, on budget support measures and Special Economic Zones 

(SEZs). Increasing demand for goods manufactured locally through government 

procurement programmes is 

yet another way of stimulating the 

manufacturing sector. 

Growth elsewhere in Africa and 

beyond is something that South 

Africa’s manufacturers are increasingly 

turning their attention to. 

Relationships with other Southern 

African countries through SADC, 

and to Brazil, Russia and India 

through the BRICS grouping hold 

tremendous potential for makers 

of goods in South Africa. 

Innovation 

The Support Programme for 

Industrial Innovation (SPII), run 

by the Industrial Development 

Corporation (IDC) on behalf of 

the dti, promotes technology development. 

New technology has 

been embraced by some innovative 

manufacturers. Desert Wolf’s 

Skunk Riot Control Chopper is an 

unmanned light aerial vehicles 

(UAV) that has proved popular in 

the world market. Denel makes a 

drone product that can be adapted 

for use by conservationists. 

Another IDC initiative has allocated 

R23-billion over three years 


108

to support the Black Industrialist Programme to 

help existing entrepreneurs grow. 

Additive manufacturing is receiving support 

from the state through the Department of Science 

and Technology and a strategic business unit with 

a focus on new industries at the dti. Additive manufacturing 

uses 3D data. 

The main sectors receiving support (and R358- 

million in public money has been invested in research 

since 2014) are jewellery, tooling, medical 

and dental and aerospace. Products such as titanium 

medical implants and aerospace components 

have come out of the programme. 

The Centre for Advanced Manufacturing 

(CFAM) is housed at North-West University in 

Potchefstroom. The centre specialises in extruder 

technology, an important component in 

the food-manufacturing process. CFAM works 

with Gaborona Consulting, the Vaal University of 

Technology, Thripp (a dti technology programme) 

and ChemCity, an initiative of Sasol. 

Metals 

Among other important sectors are metals beneficiation 

(more than 50% of the world’s ferrochrome 

is produced in South Africa), coke and 

refined petroleum products and information and 

communication technology. Steel and petroleum 

collectively make up about 45% of South Africa’s 

total manufacturing production capacity. 

Steel has been experiencing a volatile few 

years, with reduced demand from China severely 

reducing production volumes in South Africa. The 

Steel and Engineering Industries Federation of 

Southern Africa (Seifsa) reported that 19 000 jobs 

were lost in the metals and engineering sector in 

the nine months to September 2016. New import 

tariffs of 25% imposed by US President Trump will 

further hurt the SA steel sector. 

This sector makes up 28% of manufacturing 

in the country. The country consumes about 150 

000 tons of stainless steel every year. South Africa 

makes about 500 000 tons of primary stainless 

steel (most of which is exported) and imports a 

further 40 000 tons. 

OVERVIEW 

SOLUTIONS FOR AFRICA 

Modern manufacturers are coming up with ways 

to improve efficiency. In Africa, water saving and 

conservation is becoming a vital part of doing 

business. 

Marley Pipe Systems has released a revolutionary 

new hot and cold water supply solution called Profit. 

Not only is Pro-fit made from the highest grade 

PE-RT (Polyethylene with Raised Temperature 

Resistance), which reduces loss through punctures 

and tears, but it also reduces installation costs 

by 50% and is resistant to corrosion and impact. 

Water passing through the system is healthier 

and by avoiding the use of metal any scrap value is 

eliminated, thus making the product more secure. 

The recent extended drought has reminded all 

South Africans of how fragile water supply can 

be. The Marley Vynadeep® Rainwater System 

efficiently channels roofwater into tanks, 

reducing demand on ground water and supplying 

vital back-up for individual private or corporate 

premises. 

Marley Pipe Systems is active in several parts 

of Africa and with an increased uptake in the use of 

gas, Marley’s presence is growing. As big retailers 

expand their footprints in Namibia, Mozambique 

and Malawi, so Marley distributes larger volumes 

through those channels. With the mining sectors 

of countries such as Zambia, Tanzania and the DRC 

showing signs of recovery, so the gas market is 

growing further still. 

Cheap imports have been at the heart of problems for 

the steel sector, as they have for textiles, but other issues 

include energy prices and labour costs. 

The dti has moved to try to protect the local steel 

industry by regulating the use in the construction sector 

of locally produced and manufactured steel and steel 

products. Another possible intervention is related to 


OVERVIEW 

energy prices. Silicon Smelters, which has plants in 

Mpumalanga and Limpopo, has asked for a two-year 

negotiated price agreement (NPA) on electricity, 

which would allow it to resume production. The 

National Energy Regulator of South Africa (Nersa) 

has the power to grant such exemptions where the 

industry is regarded as strategic. 

The structural mill of Evraz Highveld Steel in 

Witbank was officially relaunched in June 2017 after 

ArcelorMittal South Africa signed a contract to supply 

blooms and slabs for the mill to make into heavy 

structural steel. Evraz Highveld went into business 

rescue in 2015. The contract is for two years with 

an option to renew for another year. Alternately, 

ArcelorMittal may buy the mill after the two years. 

Elsewhere in Mpumalanga, the presence of 

Ferrometals means that Mpumalanga is still an important 

place for metals and machinery manufacturing, 

but the turbulence in the steel sector has reminded 

everyone of the need to diversify. Samancor Chrome 

(which runs Ferrometals) is the second-largest ferrochrome 

producer in the world with three plants. 

Middelburg-based Columbus Stainless is a major 

supplier of stainless-steel products to the domestic 

and international market. The Manganese Metal 

Company in Nelspruit is the largest producer of 

pure electrolytic manganese metal in the world. 

Iron production at Saldanha in the Western Cape 

includes hot-rolled coil produced by ArcelorMittal 

and cold-rolled and galvanised steel by DSP, a 

joint venture between South Africa’s Industrial 

Development Corporation (IDC) and a Belgian 

company, Duferco. 

VARIETY AND QUALITY 

Tirisano Holdings manufactures between 200 

and 1 700 pairs of shoes per day at its facility 

in Phuthaditjhaba in the Free State. 

The factory produces formal shoes and 

school shoes, sneakers and pumps. The pumps 

are adorned with artistic designs, including 

African print designs. 

Some testimonials attest to the professionalism 

of Tirisano. 

“Since our involvement with Tirisano Shoe 

Company, they have been professional, dependable 

and competitively priced with good aftersales 

support. Tirisano supplies shoes to many 

of our beneficiary schools.” 

– Rivers Foundation 

“We have had various engagements with 

Tirisano (Pty) Ltd with regard to conducting 

assessments and due care with a view of considering 

development support to them in the 

future. To this end we had a site inspection at 

their facilities in Qwaqwa. The school shoes were 

manufactured on time, with the requisite quality. 

Tirisano’s conduct was always professional.” 

– National Development Agency 


Aluminium Federation of South Africa: 

www.afsa.org.za 

Centre for Advanced Manufacturing: 

www.cfam.co.za 

Manufacturing Circle: 

www. manufacturingcircle.co.za 

Steel and Engineering Industries Federation 

of Southern Africa: www.seifsa.co.za 

South African Textile Federation: 

www.texfed.co.za 


110

Service that 

delivers the 

Difference 

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

of atmospheric gases, specialty gases, equipment and services to the Southern African region. 

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

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

metal and steel manufacturers, welding and cutting applications to laboratory applications. 

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

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

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

www.airproducts.co.za

INTERVIEW 

Stepping out to create 

quality products 

The CEO of Tirisano Holdings, Kgotso Ramooana, relates 

how a revitalised shoe factory is creating employment. 

What is your main business? 

We manufacture a variety of shoes, including pumps, sneakers and 

school shoes. Our production capacity varies from 200 pairs a day to 

1 700 pairs a day. 

Kgotso Ramooana 

BIOGRAPHY 

Kgotso Ramooana is the youngest 

black shoe manufacturer in South 

Africa. He has a diploma in Arabic 

for Non-Arab speakers and is 

currently studying for a diploma in 

digital marketing. Growing up in a 

rural area, he succeeded against 

the odds. Kgotso has been part 

of the Standard Bank Accelerator 

Programme for Entrepreneurs 

and in 2018 participated in a 

seminar on footwear designing 

and manufacturing technology 

organised by the International 

Business Vocational College in 

China. His long-term vision is 

to see the factory expanding its 

branches worldwide. 

How was Tirisano established? 

I took over a factory which was previously owned by a co-operative 

which had collapsed. I had the privilege to have worked within the 

co-operative while in school, assisting with marketing and research. 

Seeing the rising unemployment within my community, I took it upon 

myself to re-establish the factory. We inherited a few machines from 

the co-operative which we had to refurbish to industry standard. We 

targeted the CSI school initiatives and pitched to manufacture school 

shoes for donations. We built traction which enabled us to approach 

government agencies for both funding and as potential clients. 

Did you have tough times? 

Market penetration was really difficult due to entry barriers. The wellestablished 

players dominate the market. From the beginning I knew 

that market analysis as well as establishing strong ties with other 

players in the industry would help me to have a strong foundation. 

We conducted a lot of research by visiting factories in Durban and 

gaining industry insight. 

What is the secret of your success? 

The success of our business lies in creating enduring relationships 

within the industry, producing high-quality goods for our clients, and 

a dedicated team that is always willing to go the extra mile. 

Is your business helping to uplift the community? 

Yes, we provide employment and we have up-skilled our team. We 

also donate shoes to our local community. 

What area of your business is growing? 

Our main focus has been to manufacture leather school shoes. We 

are in the process of increasing our production line to include the 

manufacture of PVC school shoes. 


114

Tirisano Holdings 

Building a reputation in shoe manufacturing. 

PROFILE 

What we do 

We manufacture a variety of shoes, including school 

shoes, pumps and sneakers. These are manufactured 

from a variety of materials. The success of the shoe 

factory is founded on the creation of enduring relationships 

within the industry, and the importance 

of maintaining high-quality products and solid partnerships 

with our clients. 

Customer focus 

Key factors that help us succeed are: customer satisfaction, 

continuous staff training, a highly talented 

and experienced management team and maintenance 

of existing contracts. 

Vision 

Working together, our vision is to provide our customers 

with uncompromising quality, innovation 

and continuous improvement, which will result in 

profitable growth and financial strength for our 

company. 

Mission 

To build consistent business relationships and a 

good reputation among all of our customers. To 

encourage innovation and new ideas with new business 

approaches to keep a competitive edge. To 

become one of the most reliable and trusted shoe 

manufacturers in the market so all of our clients 

can completely rely on us. To consider and cater to 

potential wider market requirements. By drawing 

upon our experience in industrial manufacturing 

and distribution, we focus on delivering optimal 

solutions in the least time possible, through collaboration, 

knowledge sharing and improved efficiency. 

Skills development 

Management will need intensive training on various 

managerial fields to consolidate their knowledge. 

We will be working with various service providers 

and networking with other business organisations. 

Establishment of affirmative action or equity for 

the company will be enhanced. We will embark on 

programmes to familiarise ourselves with quality 

management protocols. We are committed to obtain 

advanced learning and prepare ourselves for any 

joint venture in order to expand. 


Physical address: Factory No 95 Site 140, 

Industrial Area 3, Phuthaditjhaba, Free State 

9866 

Tel: +27 (0) 71 747 2280 

Email: info@tirisanoholdings.com 

Website: www.tirisanoholdings.com 


OVERVIEW 

Food and beverages 

Acquisitions are supporting backward integration. 

Food and beverages make up 26% of the South African consumer 

products sector, just ahead of agri-business (25%), diversified 

companies (23%) and sugar producers. Between 2009 and 2016 

the sector grew by 2%. Most recent capital expenditure has 

targeted improving efficiency rather than expansion of production. 

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

Foods, Pioneer Foods, Clover, AVI and Astral. 

The food and beverages sector employs about 230 000 people. 

Beverages account for just over 4% of all manufacturing sales while 

food is responsible for 13.5%. Within the sector, beverages accounts for 

24% of sales. One quarter of the 37% of national GDP that is generated 

by agri-industries derives from agri-processing. 

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

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

Gauteng. There are approximately 4 000 food-processing companies 

in Gauteng, employing more than 100 000 people. South African 

Breweries is spending R2.8-billion on expanding two of its three 

Gauteng breweries. Heineken’s brewery at Sedibeng is undergoing 

its second expansion since it opened in 2010. 

Nestlé operates four manufacturing plants in the province and has 

invested heavily in increasing production volumes. Tiger Brands runs 

six plants in Germiston that produce a range of meat products, and the 

establishment of a new tomato sauce plant and pasta plant rank among 

the company’s recent investments in the province. McCain Foods 


Unilever has invested 

R4-billion recently. 

produces frozen vegetables for 

the Gauteng market. 

Global consumer goods company 

Unilever, whose plant in 

Durban is shown above, has invested 

nearly R4-billion in recent 

years, including R600-million in a 

Gauteng ice-cream factory that 

will boost the company’s drive 

into Africa. 

This highlights a trend across 

the food and beverage sector. In 

2016 Nestlé South Africa invested 

R1.2-billion in adding instant coffee 

to the products it makes in 


RCL Foods, formerly Rainbow 

Chickens, has been on an aggres- 


116

OVERVIEW 

sive run of acquisitions. RCL is reconsidering its business model with 

a thought to producing fewer frozen chickens and doing more in the 

fast-food sector. 

Although the South African poultry business took a knock because 

of the relaxation of import duties, it is still a big sector. Earlybird Farm, 

one of Astral’s operations, processes 800 tons of chicken per day at its 

two factories in Olifantsfontein. RCL operates 18 farms and two feed 

mills in Gauteng alone. Daybreak Farms, an AFGRI operation in Springs, 

produces about 650 000 broilers every week. 

By volume and value, the Joburg Market is the biggest in Africa. 

There are 55 cold rooms that can accommodate 4 561 pallets of fresh 

produce at any one time. An average of 10 000 buyers congregate 

daily on the market’s 65 000m² of trading space. 

The Eastern Cape provides approximately a quarter of South Africa’s 

milk, and the industry is further expanding as producers tend to favour 

high-rainfall coastal areas. The Coega Dairy in the Coega IDZ produces 

the brand Coastal, sells milk to all parts of South Africa and manages 

the Famous Brands Cheese Company. 

The province’s farmers mostly sell raw milk to two processors: 

Parmalat and Clover. Small-scale dairy farming presents an opportunity 

to develop the industry in the former homeland areas, especially in a 

range of previously untapped products such as milk powder, speciality 

cheeses and long-life milk. 

Clover makes UHT/fresh milk in Port Elizabeth and Dairybelle manufactures 

natural cheese, processed cheese and speciality cheeses in 

Cookhouse near Somerset East. Ouma Rusks are still made in Molteno, 

the small rural town where they were invented. Cabdbury Chocolates 

operates a big site in Port Elizabeth and Nestlé makes 11 kinds of 

chocolate at its factory in East London. 

Excellent agricultural produce, good manufacturing capacity and 

a skilled workforce give the Western Cape a competitive advantage. 

Famous Brands has bought a famous Western Cape brand in its 

drive for greater backward integration. Lambert’s Bay Foods supplied 

Famous Brands restaurants with chips for two decades. With its purchase 

from Oceana, Famous Brands now has greater control over one 

of the vital items on the menu of its 26 restaurant brands, including 

Wimpy, Steers, Fishaways and Mugg & Bean. 

The wheat-growing areas of the Swartland host several mills such 


Agricultural Research Council: www.arc.agric.za 

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

FoodBev SETA: www.foodbev.co.za 

Perishable Products Export Control Board: www.ppecb.com 

South African Association for Food Science and Technology: 

www.saafost.org.za 

as Sasko’s facility in Malmesbury. 

Bokomo has several manufacturing 

facilities in areas such as Atlantis, 

Epping, Ndabeni near Pinelands, 

Worcester and Bonnievale. Safari 

Vinegar is based in Strand and 

there are two Heinz manufacturing 

plants at Wellington and Atlantis. 

The Western Cape has about 16 000 

commercial pork sows and produces 

a quarter of South Africa’s milk. 

Nestlé produces condensed 

milk and milk powder in Mossel 

Bay and canned pet food in Cape 

Town. Tiger Brands makes mayonnaise 

in Bellville and has also 

invested heavily in its prepared 

meals plant in Cape Town. 

SABMiller’s Newlands brewery 

is one of the busiest in the country 

as it is responsible for providing 

product for a very large geographical 

area. 

The fast-food and familyrestaurant 

franchise sectors 

are sophisticated and cover a 

broad range, from the indigenous 

Spur and Nando’s brands 

to international giants such as 

KFC, McDonald’s and recent 

arrival of Burger King. Nando’s, 

the Portuguese-chicken chain, 

has done very well internationally, 

and is a phenomenon in Britain. 

Wimpy is the second largest-franchise 

operation in SA (after KFC). 


OVERVIEW 

Automotive 

Chinese investors are building at the Coega Industrial Development Zone. 


Manufacturers are eyeing the 

African market for growth. 

• Exports have doubled in 10 

years. 

The automotive sector contributes 33% to manufacturing GDP 

and about 6% to overall GDP. It produces approximately 600 

000 vehicles per year, supporting 113 000 jobs in three provinces. 

Exports have doubled in the 10 years to 2018. 

Some of the world’s leading original equipment manufacturers 

(OEMs) have recently made large investments in new plant and technology. 

According to the National Department of Trade and Industry (dti), 

the figure invested since 2009 is approximately R45-billion. 

Long-term state support of the industry through the Automotive 

Production and Development Programme (APDP) is a major reason for 

the continuing health of this vital sector. The industry itself is looking 

to Africa for new markets. By increasing total production numbers to 

one-million vehicles, the sector will be more viable. 

The dti, working together with the NAAMSA, has set targets for 2035 

to increase production to 1% of world volumes (1.4-million vehicles), to 

increase local content and to double employment and black-owned 

businesses in the sector. Automotive and automotive components 

make up 30.2% of total manufacturing output and about 7% of the 

nation’s Gross Domestic Product (GDP). 

Beijing Automotive Industry Group (BAIC) expects to be building 

50 000 vehicles per year at its site at Coega Industrial Development 

Zone (IDZ) by 2022. BAIC’s investment follows that of another Chinese 

firm, First Automotive Works (FAW). 

Companies like BAIC may be positioning themselves to push 

into Africa, not only for selling vehicles but for automotive parts and 

partly-assembled kits. A new pan- 

African organisation has been 

established to promote the auto 

industry on the continent, the 

African Association of Automotive 

Manufacturers (AAAM). Most 

international brands such as 

Volkswagen have given responsibility 

for Africa to their South 

African offices. VWSA is in a joint 

venture in Kenya and is exploring 

opportunities in Rwanda. 

VWSA is based in the Eastern 

Cape where it manufactures 

half of the country’s passenger 

vehicles and provides 51% of 

South Africa’s vehicle exports. 

The sector accounts for over 40 

000 formal sector jobs in the 

Eastern Cape. 

Volkswagen’s two new types 

of Polos started rolling off the 

production line in Uitenhage in 

2018. Volkswagen’s R6.1-billion 

investment will take production 

up to full capacity of 160 000 

vehicles in 2019, from 110 000 in 

2017. The increase will mean that 

a third shift will be introduced. 

In addition, VWSA makes 

130 000 engines for local demand 

and for export. Ford in 

Port Elizabeth is the country’s 

other engine manufacturer. 


118

OVERVIEW 

Smart factories are the subject of research being undertaken by 

the Department of Computing Sciences at the Nelson Mandela 

Metropolitan University (NMMU). The research is supported by 

Volkswagen SA and Mercedes-Benz SA. 

In January 2018, Mercedes-Benz South Africa (MBSA) started producing 

the Mercedes-AMG C 63 S at its East London factory, after an investment 

of R200-million. MBSA started exporting record volumes in 2016. 

BMW South Africa has invested R6-billion in its Rosslyn plant to 

prepare for the manufacture of the new BMW X3 model. Nissan is 

another big automotive manufacturer with a plant at Rosslyn, northwest 

of Pretoria. Ford announced in 2017 that it would put R3-billion 

into taking the production of the Ranger vehicle to 167 00 per year. 

Gauteng is also home to a strong automotive components industry, 

together with several bus and truck assembly plants. These include 

Scania, TFM Industries and MAN Truck and Bus South Africa, as well as 

the Chinese truck manufacturer FAW, which owns an assembly plant 

in Isando. Bejing Automotive Works (BAW) assembles taxis at Springs. 

DCD Protected Mobility manufactures armoured cars in Boksburg, 

which are branded as Vehicle Mounted Mine Detectors. In Benoni, BAE 

Systems OMC designs and manufactures protected vehicles. 

In 2016, Toyota invested R6.1-billion into its massive plant at 

Prospecton, Durban. The company regularly sells about a quarter of 

the vehicles sold in South Africa, and accounts for the same proportion 

of exports. The Corolla car, the Hilux bakkie and the Fortuner SUV are 

manufactured at the plant. 

KwaZulu-Natal’s other large OEM, Bell Equipment, is transferring 

production of its current truck range to its factory in Germany. Bell’s 

Richards Bay plant will start assembling Kamaz heavy-duty trucks in 

2019 for the African market. 

Automotive components 

South Africa has a sophisticated automotive component sector. The 

catalytic converter sector experienced incredible growth for a number 

of years but volatility in the platinum mining sector, together 

with increased interest in electric vehicles and hybrids, means that 

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

Tyre and glass manufacturers are clustered around the areas 


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

National Association of Automotive Component and Allied 

Manufacturers: www.naacam.co.za 

National Association of Automobile Manufacturers of South 

Africa: www.naamsa.co.za 

where the automotive industry 

is active. Sumitomo 

Rubber South Africa which 

includes Dunlop among its 

brands, is spending R2-billion 

on expanding production in 

Ladysmith, KwaZulu-Natal. 

Bridgestone Tyres has plants 

in Port Elizabeth and Brits 

and Continental makes tyres 

in Port Elizabeth. 

The large number of vehicle 

models produced in South 

Africa is a complicating factor 

for the components sector: 

low volumes often mean 

high prices. Two Port Elizabeth 

companies export significant 

portions of their production 

to overcome this: Schaeffler 

SA exports to its international 

parent so that it can achieve 

higher volumes. Shatterprufe 

supplies the majority of windscreens 

to the South African 

market but there are 12 model 

ranges to serve. 


OVERVIEW 

Transport and logistics 

Plans are in place to shift freight from road to rail. 

The decision by Imperial Holdings to create a separate stock 

exchange listing for its automotive division marks an interesting 

departure for one of the biggest logistics companies 

in South Africa. 

Imperial Holdings employs 49 000 people and Imperial Logistics, 

apart from its large South African footprint, has a presence via 

multiple companies in other African countries and in Europe, the 

Americas, the Middle East and the Far East. The Motus division 

represents 22 OEMs through 358 vehicle dealerships and runs two 

car rental companies, Europcar and Tempest. 

Companies like Imperial Logistics and Barloworld carry just about 

anything while other listed companies specialise. Cargo Carriers has 

a fairly broad range of specialised services: fuel, steel, chemicals, 

gas, powders and services to the mining and sugar industries. 

Other companies specialise even further, for example CSS Logistics 

operates 12 refrigerated warehouses around South Africa. Laser 

Logistics describes itself as a specialist in distribution for retailers 

and wholesalers in the clothing, footwear, lifestyle, electronics and 

appliance markets. 

Industry news 

• DHL Express has launched a green distribution centre in 

Johannesburg. Energy consumption will be reduced by 55%. 


A new Special Economic 

Zone will boost logistics in 

Limpopo. 

• The inland manganese terminal 

at Lohatlha in the Northern 

Cape has been taken over 

by Transnet Port Terminals. 

Allowing miners to move ore 

by rail reduces costs. Transnet 

also operates inland terminals 

in Brits (North West) and 

Newcastle (KwaZulu-Natal). 

• The building of the Musina- 

Makhado Special Economic 

Zone (SEZ) will boost 

Limpopo’s role as a transport 

and logistics hub. The Musina 

Intermodal Terminal, which 

was officially opened in June 

2017, is 15km from the busy 

Beit Bridge border crossing. 


120

OVERVIEW 

It will boost efforts to move cargo from road to 

rail. Warehousing facilities on-site make for loading 

efficiencies in the main cargoes such as chrome, 

fertiliser, coal, fuel and citrus. 

• The Nkomazi SEZ near the border with Mozambique 

in Mpumalanga has similar advantages as it forms 

part of the Maputo Development Corridor. 

• The purchase of 75% of German logistics company In 

Time for €137.2m in 2015 has paid off well for South 

African logistics company Super Group. 

Road and rail 

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

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

industry employs 65 000 drivers. The logistics and courier 

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

in the country, 10 of which have international status. 

Investment in improved infrastructure is being 

made at all of South Africa’s ports. Special Economic 

Zones are in place at the ports of Saldanha on the 

West Coast, Coega (Port Elizabeth), East London, and 

Richards Bay in northern KwaZulu-Natal. The Maputo 

Development Corridor is Africa’s most advanced 

Spatial Development Initiative. Run by the Maputo 

Development Corridor Logistics Initiative (MCLI), 

the corridor runs from near Pretoria in Gauteng, to 

Maputo in Mozambique. 

The Harrismith Logistics Hub at the Maluti-A- 

Phofung SEZ on the N3 is an inland port that can 

handle cargo containers and shift cargo from road 

to rail, reducing congestion and costs. 

Transnet is the state-owned enterprise focussed 

on transport and logistics. It comprises Transnet 

Freight Rail, Transnet Engineering, Transnet National 

Ports Authority, Transnet Port Terminals and Transnet 

Pipelines. Transnet Freight Rail’s operations represent 

about 80% of Africa’s rail infrastructure. With 25 000 

employees TFR has specialist divisions for hauling coal 

and iron ore together with a general freight division 

which transports everything from grain to chemicals. 

The major rail haulage lines are the manganese 

line from the Northern Cape to Port Elizabeth; from 

Sishen in the Northern Cape to the Port of Saldanha 

GROWING WITH AFRICA 

Mueletshedzi Logistics (MLTL) believes 

Africa is fast becoming the hub of economic 

growth and there are opportunities to 

invest. The growth economy needs welldeveloped 

skills and services to efficiently 

keep up with the expansion. There 

must be a reliable supply of equipment, 

transportation, proper facilities as well as 

bringing together other logistics solutions 

to sustain the growth. With the experience 

and commitment that we have at MLTL, 

we’re well equipped to take on these 

challenges. We understand the needs of 

business and, based on our experience and 

commitment, we stand out as a preferred 

choice for reliable and sustainable logistics 

solutions. Mueletshedzi Logistics is a 

unique logistics company that offers a 

range of solutions in one basket. That factor 

makes us easy to work with as we deliver 

quality work at once. The company is still a 

growing business, but the goal is to develop 

into the biggest logistics company in Africa. 


OVERVIEW 

Coast toll road project. The bridge over the 

Mtentu River will be the highest bridge 

in the country at 217m and will cost R1.6- 

billion. 

Air transport 

(iron ore); and from the coal fields of Mpumalanga to 

Richards Bay. More than 55-million tons is regularly 

transported along the former and upwards of 70-million 

tons can travel annually along the latter. 

Almost 90% of freight is transported by road and the 

logistics sector is very reliable. However, these volumes 

are not good for the condition of the country’s roads and 

Transnet is working hard to attract more business to the 

rail network. TFR has put 28 new electric locomotives 

on the line supporting steel producer ArcelorMittal to 

improve service. 

The rail sector is receiving many investments. The 

speedy Gautrain which started life as a service to the main 

airport in Johannesburg has been tremendously popular 

and there are plans to expand its network. Bids to supply 

12 new trains will be adjudicated on in 2018. 

A total of 600 new passenger trains will be added to 

Metrorail’s fleet at a cost of R51-billion. Transnet Freight 

Rail has ordered 1 064 diesel and electric locomotives 

from four suppliers. 

Sheltam Group is expanding its services beyond rail 

services. A new lease company (for rolling stock) and an 

investment company (focussed on rail infrastructure) underpin 

the group’s African ambitions. 

Multi-billion- rand road projects planned by the South 

African National Roads Agency Limited (Sanral) include a Wild 


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

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

Road Freight Association of South Africa: www.rfa.co.za 

South African Association of Freight Forwarders: 

saaff.org.za 

South African Heavy Haul Association: 

www.saheavyhaul.co.za 

Airports Company South Africa (ACSA) 

owns and operates the country’s 10 biggest 

airports. The company also manages 

airports in India and Brazil. In 2016/17 the 

company reported a profit of R2-billion. 

Ekurhuleni wants to leverage the location 

of South Africa’s biggest airport, OR 

Tambo International, into a major economic 

asset. OR Tambo International in Gauteng 

caters for more than 17-million passengers 

every year. The Cape Town International 

Airport has been expanded and improved 

and recorded 10-million passengers in 2016. 

King Shaka International Airport (KSIA) is 

north of Durban. 

Several airports are possible future 

regional freight nodes: Wonderboom 

Airport in Pretoria, Polokwane Airport in 

Limpopo and Mafikeng Airport in North 

West Province. 

The South African Ministry of Transport 

has several agencies and businesses reporting 

to it: Air Traffic and Navigation 

Services Company, Airports Company 

South Africa (ACSA), National Transport 

Information System, Road Accident Fund, 

South African Civil Aviation Authority, 

South African Maritime Safety Authority 

(SAMSA), the South African National Roads 

Agency Limited (Sanral) and the Passenger 

Rail Agency of SA (PRASA). 

The Polokwane International Airport 

(PIA) is wholly owned by the Limpopo 

provincial government and run by the 

Gateway Airport Authority Ltd (GAAL), an 

agency of the Department of Roads and 

Transport. It has the potential to be an important 

regional cargo airport. 


122

Safety is a priority at 

logistics company 

PROFILE 

Mueletshedzi Logistics aims to take logistics to another level. 

Environment and Quality (SHEQ) 

and Compliance Manager. He is 

currently enrolled on a strategy 

management programme with 

Unisa. 

Mueletshedzi Logistics (trading as MLTL) was founded in 

2009 by Benedict Mudumela, an experienced metallurgist 

with an appetite for entrepreneurship. 

He saw a gap in the market where everyone was 

thinking about logistics as just the transport of goods. Mueletshedzi 

Logistics was founded with goal of changing that thinking. The aim is 

to deliver logistics solutions in a far more encompassing way: to bring 

logistics to clients in a way that had never been done before. To bring 

all solutions under one roof and to take logistics to another level. The 

company is able to assist clients in developing sensible, cost-effective 

solutions, be it in logistics, training or delivery of services. 

At Mueletshedzi Logistics, the goal is to have a long-term and sustainable 

relationship with clients based on honesty, trust and integrity. 

Business Development Manager 

Busani Sibanda holds a Diploma in Transport Management from ABMA 

(UK), a Diploma in Banking from the Institute of Bankers, Zimbabwe, a 

certificate in Store Administration and a certificate in Sales. He joined 

the Mueletshedzi Group of Companies in 2015 and has added value 

to to an already robust team of managers. 

SHEQ Manager 

Simba Gapara has a National Diploma in Analytical Chemistry (Harare 

Polytechnic), a certificate in Quality Assurance Management from City 

& Guilds of London Institute, and a certificate in Quality Management 

System Development and Maintenance. He is national Safety, Health, 

Safety, health, environment 

and quality 

The safety, health and environment 

policies of Mueletshedzi 

Logistics encompass: 

• to comply with environmental 

legislation and regularly assess 

the impact of all current and 

future activities, products and 

services on the environment 

• to provide training and tools 

for a good working environment 

and deliver a quality service 

in a consistent and timely 

manner 

• to implement mechanisms 

for the regular and continual 

review of business practices 

• to develop and implement 

mechanisms to identify health 

and safety issues 

• to impart training and awareness 

to employees to ensure 

employees are made aware 

of their legal obligations in 

respect of their own and 

others’ health and safety 

• make available adequate resources 

for the establishment 

of a quality and environmental 

management system. 


OVERVIEW 

ICT 

Incentives are encouraging investment. 

Companies and educational bodies in the ICT sector can 

apply for incentives from the National Department of Trade 

and Industry (dti). These include: 

• The Technology and Human Resources for Industry Programme 

(THRIP): companies and educational institutions working to improve 

technology; 50/50 cost sharing grant to a maximum of R8-million 

• Technology Development Fund: the Technology Innovation Agency 

makes up to R50-million available for up to 10 years 

• Technology Venture Capital: managed by the Industrial Development 

Corporation; commercialisation of innovative products, processes 

and technologies. 

Liquid Telecom paid R6.5-billion in 2017 to buy South African network 

operator Neotel. Liquid Telecom is part of the Econet group. Royal 

Bafokeng Holdings will take up a 30% shareholding in Neotel as part 

of the deal. The transaction significantly expands the reach of the fibre 

network which, it is claimed, will be Africa’s largest broadband network. 

Twelve countries are currently connected by 40 000km of fibre network, 

with more expansion part of the business plan. 

The Information Technology Association (ITA) is the trade 

and employer body of the Information Technology industry in 

South Africa. The ITA represents more than 200 companies which 


Fibre is being rolled out in 

some low-income areas. 

• Neotel has changed hands 

for R6.5-billion. 

supply information technology 

equipment, systems, software 

and services. Members include 

IBM, Microsoft SA, Siemens, SAP 

and Axiz. 

A new technology venture 

was launched when Cape Town 

hosted AfricArena 2017, a conference 

that aimed to be a “bridge 

between international technology 

stalwarts and African technology 

innovators”. A collaboration 

between Silicon Cape and 

La French Tech Cape Town, it 

brought together investors, 


124

OVERVIEW 

venture capitalists, start-ups and entrepreneurs. The 

French government has officially designated the city 

as one of six global French Tech Hubs. Other hubs 

include Tokyo and San Francisco. 

French Tech Labs was launched as a fintech incubator 

in 2016. The same company earlier established 

Methys Labs. The new incubator offers mentoring 

support for innovators, connections to possible investors 

and a chance for selected candidates to travel 

to France. 

Major banks are feeling pressure from new companies 

who can connect with customers without having 

to build bricks-and-mortar infrastructure. They are 

responding by spending heavily on ICT. One example 

is Barclays Africa Group’s expenditure of R3.1-billion 

on ICT in 2016. The Big Four banks spent R30-billion 

in the year to June 2016, with Standard Bank laying 

out R14-billion in that period (Tech Central). 

They are also investing in innovation. Barclays Bank 

have invested in a fintech incubator in Cape Town, 

Rise. There are six other Rise sites around the world, 

including New York and Mumbai. 

The Cape Innovation and Technology Initiative 

(CiTi) is another support system for the ICT sector. 

There are 2 000 ICT firms in the Western Cape and 

they have 17 000 employees. 

South Africa’s appetite for fast Internet connectivity 

is growing. The state-owned company Telkom 

controls most of the country’s fibre cable but several 

smaller private companies are winning contracts to 

lay fibre optic cables around the country. 

Wider access 

Allowing access to the Internet to rural people and 

poorer people in urban areas is a policy priority. As 

part of its mandate, the Independent Communications 

Authority of South Africa (ICASA) has organised that private 

operators have connected more than 623 schools 

around the country. 

Dark Fibre Africa, a Remgro subsidiary, has established 

a Digital Villages unit to roll out fibre in lowincome 

areas. Another company in which Remgro has 

a stake, Vumatel, plans to offer uncapped broadband 

services in Alexandra (Johannesburg) for less than 

R100 per month. 

Marketing and delivering solutions 

As a professional distribution company, 

Kemtek is gratified to be entrusted with 

the channel responsibility for many of the 

world’s leading brands. Presently, Kemtek 

focuses on the following industry sectors: 

• Printing – digital and conventional 

• 3D Printing – manufacturing, medical, 

dental, jewellery and automotive 

• Auto identification and barcoding 

systems 

• Labelling – home, office and industrial 

systems. 

Kemtek’s marketing approach is based 

on developing a detailed understanding 

of the markets served and the needs of 

the end user. The aim is to marry the technologies 

and solutions provided by the 

principal brands to these needs, creating 

value on a sustainable basis. A cornerstone 

of Kemtek’s success is ongoing technical 

support and after-sales service, which all 

employees are passionate about providing. 

At Kemtek, there is a commitment to 

investing in leading systems to enhance 

the channel and distribution efficiencies, 

whether this be CRM and sales, procurement 

planning, inventory management, 

warehouse management and logistics. 

The specialised distribution division 

operates in excess of 25 delivery vehicles 

nationwide, performing approximately 

15 000 deliveries per year from five 

dedicated sales and distribution sites 

nationwide. Delivery services are also 

extended by the use of most major 

courier companies for the retail chains 

and outer-lying regions. 


OVERVIEW 

If developers have an opportunity to put fibre into a new township’s 

infrastructure when it is built, a new level of affordability can 

be achieved. DFA is active in Gauteng Province and by August 2018 

had installed connections in 1 000 units. 

Private companies like Vodacom allocate specific budget items 

to rural access and in September 2017 it announced that it would 

zero-rate its services for university student and staff who are 

Vodacom subscribers. To illustrate the vastly different uses to which 

technology can be put, Vodacom is also developing an affordable 

sheep-tracking collar with farmers in the Eastern Cape. 

Statistics South Africa reports that nearly 60% of households 

in the Gauteng city region have direct access to the Internet. This 

provides an opportunity to both the private and public sector, but 

also a challenge to ensure that government improves its online 

services. More than 1 500 kilometres of network fibre has been connected 

throughout the province, with 1 066 sites such as schools, 

health facilities, libraries and community centres giving community 

members and entrepreneurs the chance to be connected with the 

digital world. The aim is to have 100% broadband connectivity in 

Gauteng by 2020. A provincial government initiative known as 

eKasiLabs Innovation Centres supports entrepreneurs and young 

people with good business ideas. 

Both Johannesburg and Tshwane have free Wifi networks with 

Tshwane’s covering 780 zones in places such as libraries, educational 

institutions and clinics. 

The Small Enterprise Development Agency runs ICT incubators 

in several parts of South Africa. The SoftstartBTI ICT incubator is 

in Midrand and Tuksnovation, a high-tech incubator, is at Pretoria 

University. In the Nelson Mandela Bay Metropolitan Municipality 

there is the SEDA Nelson Mandela Bay ICT Incubator (SNII). A new 

research and development laboratory was established by SNII in 

2016, focussing on apps, mechanical and technical prototypes and 

software solutions. 

SNII also hosted a national conference on “Universal Affordable 

Access to Communications in South Africa”. An example of 


Cape Innovation and Technology Initiative: www.citi.org.za 

Independent Communications Authority: www.icasa.org.za 

Information Technology Association of South Africa: 

www.ita.org.za 

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

Technology Innovation Agency: www.tia.org.za 

what can be done to reduce 

telecommunication costs in 

rural areas was presented by 

the University of the Western 

Cape, who teamed up with the 

Mankosi community in a rural 

part of the Eastern Cape to 

create the Zenzeleni Network. 

This is essentially a community 

telecoms company where local 

calls are free, data is considerably 

cheaper and calls to other 

networks half the normal cost. 

The Universal Service and 

Access Agency of South Africa 

(USAASA) is providing connectivity 

for schools in five provinces 

and smart devices have been 

distributed to schools. 

There are many opportunities 

for employment in the sector. 

It is ironic that in a country 

with a very high unemployment 

rate, the Johannesburg Centre 

for Software Engineering (JCSE) 

in 2016 put the number of vacancies 

in software and application 

development, cloud computing 

and information security 

at 40 000 (Sunday Times). 

Training is available from 

organisations such as the Quad 

Digital Academy, a Standard 

Bank initiative, an ICT Incubator 

in Port Elizabeth run by the 

Small Enterprise Development 

Agency (Seda) and from the City 

of Johannesburg (which runs a 

digital intern programme called 

COJEDI). Scarce skills training is 

offered by the City of Cape Town 

(in partnership with SAP Africa) 

in software programming. The 

programme is called “Western 

Cape Skills for Africa”. 


126

PROFILE 

Khabane Majestic 

Consulting 

Agile software development and consulting. 

Khabane Majestic Consulting is a software development 

company. We pride ourselves on implementing and 

perfecting our clients’ IT strategy. We build digital solutions 

which give our clients a competitive edge. 

Our people have delivered solutions on five continents and we 

bring that experience to bear on providing Agile delivery practices 

to gain the optimal result. We deliver quality software and solutions 

which provide business value to clients. We are BEE Level 1 black 

women-owned. 

Sectors 

Our responsive digital business helps organisations achieve their 

ambitious missions – whether they are in the commercial, social or 

government sectors. 

Four key services 

Agile software development and consulting 

We deliver high-quality software products by being truly agile – 

beyond daily standups and other arbitrary Agile rituals. We focus 

on stimulating the culture of our client. We bring our international 

consulting expertise and get things done – faster and more efficiently. 

User experience design 

We give our clients’ software product a personality by using different 

UX techniques combined with design thinking approaches. This 

produces usable software and delightful user experiences. 

We combine this with a thorough testing approach that allows 

us to quickly validate design assumptions with real users. We can 

CONTACT INFO 

Physical address: 207 Market Up Office Park, 10 Van Beek Street, 

New Doornfontein, Johannesburg 2094 

Tel: +27 11 404 5004 

Email: info@khabane.co.za 

Website: www.khabane.co.za 

quickly know if the desired outcomes 

have been achieved. At 

each step, you can be comfortable 

that we will: 

• ensure that we are solving real 

user problems 

• ensure that the problem is 

worth solving 

• ensure that the solution is 

usable. 

Agile delivery coaching 

We train client teams on how to 

adopt Agile software delivery in 

their day-to-day processes. We 

then combine what our clients 

have learnt in training and 

implement it via co-delivery. 

Here we work together, richly 

integrated with our clients’ 

delivery teams to enrich the 

understanding of Agile. 

This process allows for a more 

practical and richer Agile learning 

experience for software delivery 

teams. 

DevOps delivery 

We turn the experience of 

software deployment into 

a pleasant experience. We 

automate even the most 

mundane tasks. We turn big and 

slow organisations into lean and 

sexy machines. 

Clients 

Include Liberty, Absa, Discovery, 

Unicef and Sigidi Solutions. 


128

INTERVIEW 

Creating innovative 

IT products 

Kgomotso Sediane, MD of Khabane Majestic Consulting, 

shares her vision for the future. 

Kgomotso Sediane 

BIOGRAPHY 

Kgomotso Sediane founded 

Khabane Majestic Consulting 

in 2015 and spearheads the 

company’s operations as the 

Managing Director with more 

than 15 years’ experience in IT. 

Graduating with a BSc Computer 

Science (Software Engineering), 

she started her career in 1998 

in the software development 

field as a programmer. She 

is passionate about making a 

difference to customers through 

collaboration between business 

and IT, while promoting gender 

equality. Kgomotso cares 

about upskilling people and 

contributing to Africa’s future. 

How did the business begin? 

Khabane Majestic Consulting was created by a group of young black 

technologists who believed there was a gap in the South African 

software development industry. This industry is notorious for being 

predominantly white-male owned and run. KMC’s vision was to create 

a female-led IT company which celebrates diversity and innovative 

thinking. What started as a humble company running from a garage 

has morphed into a hub for young futuristic thinkers. 

Describe the journey so far. 

It has been an interesting journey so far. Trying to get new clients 

and building credibility was hard. Competing with companies with 

decades of experience and existing relationships with potential clients 

was a good lesson for our young company. This battle to earn our slice 

of the cake helped us hone our brand, build awesome software, get 

people talking about us and attract some of the best talent in South 

Africa. Today, we are expanding our consultancy operations to service 

clients outside our country. 

What sets you apart? 

When you walk into our Maboneng offices, you are greeted with stickies, 

whiteboards, doodles, collaboration and all-round awesomeness. 

This sums up the culture within KMC. Our unique service offering 

allows us to create innovative and disruptive digital products using 

Agile, Design Thinking and Extreme Programming practices. KMC is 

a diverse company that encourages collaboration despite seniority. 

What gives you the most satisfaction? 

Seeing young black technologists go to infinity and beyond. 

Is SA ready for the 4th Industrial Revolution? 

The ideas are there, but the problem is the lack of accessibility to 

tech for all South Africans. Good broadband infrastructure will allow 

kids from rural areas to have the same exposure to technology and 

information as a child from Sandton. 


PROFILE 

Prompt IT Solutions 

Working together for high-impact ICT solutions. 

Prompt IT Solutions is 100% black women-owned IT company which 

has been in existence since 2004, with Level 1 BEE Status. 

Vision 

Being a partner in identifying impactful Information and 

Communications Technology solutions. 

Client as partner 

Our knowledgeable technology team produces work that is up to 

standard with our clients’ expectations through solid as well as professional 

strategising, conceptualising and implementation of IT solutions. 

Every Information and Communications Technology service provided 

must involve, engage and build upon the company’s image and, 

most importantly, strengthen the consumer/product bond. 

The challenge for the private and public sector is to find innovative 

and alternative solutions that adhere to business needs. Solutions 

need to be understood, relevant and experienced on an intensely 

personal level by the consumer to strengthen the relationship they 

have with their service providers. The service provider should know 

the needs of their consumers to make sure that they work efficiently 

and productively. 

Company focus 

Our strategy is to ensure that we offer our clients the best highquality 

and cost-competitive service, thereby enabling them to 

respond quickly to any changing market dynamics and increasing 

their competitiveness. 

Services 

• Infrastructure development data 

• Voice and wireless connectivity 


Address: 56 Cetu Street, KwaMagxaki, Port Elizabeth 6201 

Tel: +27 (83) 585 4822 

Website: www.promptit.co.za 


130 

PromptIT 

J O U R N E Y I N G W I T H Y O U 

• Networking installations 

and maintenance (Molex 

Certification) 

• End User Computing 

(Accredited with MICSETA) 

• Server support and maintenance 

• Electrical and CCTV installation 

and maintenance 

• Laptop, computer, printer 

repairs and service 

• Computer consumables sales 

• Computer hardware and 

software sales 

Staff 

Prompt IT has a dedicated team of 

software and hardware engineers. 

We derive from a base of freelance 

specialists should the need arise, 

because core to sustainability for 

us is job creation. The approach of 

combining a wealth of expertise on 

a project basis enables us to meet 

each of our clients’ specific needs 

in the most suitable, creative and 

cost-effective manner. 

Clients include 

The Post Office, Aberdare 

Cables, Shoprite, Enel Green 

Energy, Airports Company 

South Africa, Sarah Baartman 

District Municipality, Eastern 

Cape Provincial Government 

Departments (Social Development, 

Health, Education).

PromptIT lives its 

name with on-time 

delivery 

INTERVIEW 

The CEO of PromptIT, Azola Socenywa, recounts how a 

gap in the market became a thriving business. 

Azola Socenywa 

BIOGRAPHY 

PromptIT 

J O U R N E Y I N G W I T H Y O U 

Port Elizabeth-born Azola 

Ngwekazi Socenywa completed 

courses on the technical side 

of computers and a national 

diploma with Damelin. Work 

for Coca-Cola Sabco led 

to a posting to Business 

Connexions, the only female 

among 16 technicians. Success 

in the SAB Kickstart Programme 

was the stimulus to start 

PromptIT. In 2015 she joined 

VW’s incubator programme, 

Raizcorp. Azola is a board 

member of the Eastern Province 

Children’s Home and on the 

Advisory Committee of MES, a 

poverty relief organisation. 

How did PromptIT come into being? 

I worked for Coca-Cola Sabco before being outsourced as a junior 

technician to Business Connexion. I proposed projects because there 

were not many black children exposed to the ICT sector. In 2004 I saw 

a gap in the market and started PromptIT. Having done well in the SAB 

Kickstart Programme I started an Internet cafe in the township which 

was registered with MICSETA to teach Computer Literacy. Since 2015 

the incubator Raizorp has mentored me in business. 

What have been the highlights in your business journey? 

After 14 years of being in business I have been recognised and a few 

ICT organisations are seeing the need of partnering with PromptIT. The 

journey has not been easy, but we are still standing and growing our 

network. We would like to continue to grow our skills. 

What are your company’s key services? 

Our core services are network cabling, data, voice, fibre installation and 

maintenance, cyber security and professional IT support. 

Please tell us about the capabilities of your workforce. 

Most of our staff are project managers and qualified Cisco engineers. 

We assign junior technicians to shadow the seniors to grow their skills 

as it is important for us that we give them exposure. 

What sets you apart in terms of your business processes? 

Our philosophy is Trade not Aid. We are a black woman-owned and 

managed business in a male-dominated industry. Despite this we 

have managed to thrive and grow. This is the spirit that sets us apart. 

We deliver customer centrality, delivery on time, co-creating with our 

customers. Our staff has joint ICT experience of 25 years, having worked 

for multinationals such as Microsoft, SAP and IBM. 

Do you have experience with projects in the public sector? 

We have contracts with the Coega IDZ, Transnet PE College and the 

Department of Health. We believe that ICT should be an enabler 

towards service delivery. 


PROFILE 

Emalangeni Technologies 

Global standard and innovative technology solutions. 

Emalangeni Technologies is a specialised systems 

integrator, website development, graphic design, 

networking, hardware and software troubleshooting 

and solutions provider in the information technology 

and security fields. Emalangeni Technologies is a 

100% black-owned company with extensive experience in 

a range of ICT services. 

Originally founded with a main focus on website 

development, software development, graphic design, 

computer hardware and software trouble-shooting and 

networking solutions. 

Emalangeni Technologies has gained valuable in-depth 

knowledge and expertise in these fields and the best 

practice of ICT. The company has over the years increased the 

amount and quality of services rendered, including Internet 

connectivity and VoIP system connectivity. The team has 

grown continuously, and the company strives to remain at 

the forefront of the latest technological innovations. 

From the outset the aim with Emalangeni Technologies 

was to provide clients with the best possible information 

technology products. To this end, diversification has led to 

increased service offerings over the years. 

Emalangeni Technologies can today cater for the information 

technology needs of clients in every possible way. 

Emalangeni Technologies has distinguished itself not only 

for the originality and quality of its products, but also for its 

comprehensive services. 

Services 

• Domain and email hosting 

• Website development 

• E-commerce web development 

• Corporate branding 

• Full-service graphic design 

• Specialised software engineering 

• CCTV installation 

• Content management systems (CMS) 

• Search engine optimisation 

• Google adwords management 

• Basic and advanced flash animation 

• Monthly maintenance and support 

• Point of sale installation and maintenance 

• Hardware supply and maintenance 

• Rocketseed authorised key reseller 

• VoIP telephone system and connectivity 

• Internet connectivity 

Clients 

We have worked with a range of start-ups, SMEs 

and large corporate companies. Projects include 

provision of Internet to Mpumalanga Public Libraries 

for three years, installation and maintenance of VoIP 

system for Chief Albert Luthuli Local Municipality 

and Bushbuckridge Local Municipality, installation 

of CCTVs, networking and setup equipment for 

OTJ Holdings, and development of a website for 

Phumelela Bible College. Also, integrating client 

websites with Basecamp, YouTube and Facebook 

APIs and the development of various CRM systems. 


Address: Suite 146 Ground Floor, Caltex Building, 32 Bell Street, Nelspruit 1200 

Tel: +27 13 004 0180 and Cell: +27 76 303 3278 

Email: info@emalangenitech.co.za 

Website: www.emalangenitech.co.za 


132

Striving for the best way 

INTERVIEW 

The CEO of Emalangeni Technologies, Sifiso Magonyane, 

explains how his company’s growth path began. 

What is your main service offering? 

Our main service is VOIP, hardware supplier, software development 

and point of sales. 

How have you diversified over the years? 

We have grown from just focussing on website development to 

software development, VOIP, Internet connectivity, hardware supply 

and point of sales. Growing in these different spheres has also led to 

us growing our list of clients, providing our services to bigger entities 

in the public and private sectors. 

Sifiso Magonyane 

How did you get started in the business? 

We started as a small web and graphic design company that was 

just focussed on small private clients. At the time our clients were 

either individuals or SMMEs which themselves were trying to break 

into the business sector. We had to give a lot of discounts or even 

cancel our invoices at times. However, this never interfered with our 

work ethic. We believe that in technology, you either do it the best 

you can, or you don’t do it at all. 

What gives you the most satisfaction when you tackle 

a project? 

Even before the completion of a project, it is always satisfying to 

know that we were trusted by the client. The fact that our company 

can be seen as competent enough to be handed any project is always 

an honour. This fuels our team to apply their abilities in a project and 

to find innovative ways to execute a project. 

BIOGRAPHY 

Sifiso Magonyane was born in 

the Shabalala area of Hazyview, 

Mpumalanga. He has more than 

five years’ experience working as a 

systems analyst. As the founder and 

CEO of Emalangeni Technologies, 

Sifiso is a visionary who strives for 

perfection in his work and the work 

of his company which was founded in 

2009 and officially registered in 2013. 

Please tell us about some of your clients. 

• The Mpumalanga Department of Sports, Culture and Recreation: 

we work on providing Internet connectivity to public libraries. 

• City of Mbombela Municipality: providing maintenance and 

support of all computer hardware and CISCO devices. 

• Retail shops: installations and maintenance of point of sale 

systems. 

What principles underlie the way you run your business? 

Integrity, respect and transparency is the core of our business. We 

make sure that these principles are implemented in every project 

and with every client. 


OVERVIEW 

Tourism and events 

The events and conferences sector is growing across the country. 

South Africa gained its 10th World Heritage Site in 2018, opening 

up the possibility of a new type of niche tourism for the 

country and Mpumalanga in particular. 

A three-billion-year-old micro-fossil found in the 

Makhonjwa Mountains near Barberton and the border with 

Swaziland is thought to be the oldest sign of life on the planet. 

Now the Makhonjwa Mountains, themselves somewhere between 

3.2-billion and 3.6-billion years old, have been declared a 

World Heritage Site by the United Nations Educational‚ Scientific 

and Cultural Organisation (UNESCO). The tourist offering near 

Barberton has been branded the Genesis route. 

There are 711 745 people employed in the tourism industry, 

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

(19%) absorbing the largest numbers. The sector 

contributes 9% to South Africa’s gross domestic product (GDP) 

and the National Department of Tourism has ambitious growth 

targets. It wants to see tourism contribute R1-trillion to GDP and 

create an additional 300 000 jobs by 2026. 

Tourist numbers are going up, both from traditional markets and 

from newer markets like China and India. In 2017, South Africa hosted 


A new World Heritage 

Site has been declared in 

Mpumalanga. 

• The Cape Town International 

Convention Centre (pictured) 

has increased capacity and 

flexibility. 

10.2-million tourists. This represented 

a small increase of just 2% 

over the previous year, but that 

figure was a 10% improvement 

on the year before. 

The rise in tourist numbers 

follows determined efforts by 

national and provincial tourism 

bodies to promote the country. 

In Mpumalanga, links to BRICS 


134

OVERVIEW 

countries have yielded results and in KwaZulu-Natal there has 

been a strong focus on the meetings, incentives, conference and 

exhibition sector (MICE). 

A Western Cape project to increase the number of seats on 

routes to and from Cape Town called Cape Town Air Access has 

been spectacularly successful. Cape Town International Airport’s 

capacity has increased by more than 600 000 seats in the two 

years that the programme has been running. 

The Port of Cape Town has launched its dedicated cruiseship 

terminal, and the area between the terminal and the Cape 

Town International Convention Centre is being developed. The 

precinct, called the Yacht Club, includes a hotel, residential and 

commercial complex owned by the Amdec Group, and is linked 

to the Waterfront via an extension of the existing canal. 

In Durban, a joint venture between MSA Cruises SA and Africa 

Armada Consortium will spend R175-million on the financing‚ 

construction‚ maintenance and operation of a cruise terminal for 

a 25-year concession period. The terminal should be operational 

in October 2019. 

A lot of effort has gone into increasing the number of South 

Africans who take trips within the country. A Tourism Incentive 

Programme (TIP) has been launched by the National Department 

of Tourism. Tourism has been earmarked as one of the six key 

growth sectors in national government’s New Growth Path. 

The Industrial Development Corporation has committed to 

investing R2-billion in local resorts (and in the African hotel market). 

There are several unused or under-used facilities. One suggestion 

is that former military bases could be converted into 

low-fee resorts. Other possible niche sectors include astrology 

and adventure tourism. 

An Enterprise Development Project Management Unit (PMU) 

has been established. Among the PMU’s tasks will be to manage 

an Enterprise Development Online Information Portal for SMMEs. 

South Africa’s tourism offering is incredibly diverse. Superb 

natural beauty, excellent beaches (45 have Blue Flag status), incomparable 

wildlife, vibrant cities and cultural and heritage attractions 

that represent a heterogeneous population and a dramatic 

history, South Africa has it all. Every province has superb natural 

assets. In the Northern Cape these include wonderful spring 

flower displays, spectacular arid areas and brilliantly clear night 

skies for sky-gazers. There are no fewer than six national parks and 

five provincial reserves in the province, each showing off distinct 

geographical and biological features. 

Culture and heritage accounts for 40% of world tourism 

and is one of the fastest-growing sub-sectors. The other nine 

UNESCO World Heritage Sites in South Africa are: Robben 

Island Museum, Cradle of 

Humankind, Mapungubwe 

Cultural Landscape, iSimangaliso 

Wetland Park, uKhahlamba 

Drakensberg (newly 

named Maloti Drakensberg 

Transfrontier Park), Richtersveld, 

Cape Floral Kingdom, Khomani 

Cultural Landscape and 

Vredefort Dome. 

Popular history or cultural 

sites include the Nelson Mandela 

Museum, Hector Petersen 

Memorial, Apartheid Museum, 

Freedom Park, Voortrekker 

Monument, Constitution Hill, 

District Six Museum and the 

Bo-Kaap Museum. There are opportunities 

to further develop 

the full potential of tourism at 

heritage sites. 

Events 

A total of 34 000 international 

delegates attended conferences 

in Cape Town in 2017, helping to 

secure the city’s number one spot 

in Africa for the 10th year in a row 

for the African city hosting the 

most international association 

meetings. The ranking is awarded 

by the International Congress and 

Convention Association (ICCA). 

The Cape Town and the 

Western Cape Convention 

Bureau, a Wesgro unit, promotes 

the Cape as a venue and 

assists with bids, planning support 

and on-site services. In the 

first quarter of 2018, nine bids 

were won with an estimated 

economic impact of R336- 

million and attendance of more 

than 9 000 delegates. 


OVERVIEW 

The annual AfriCom event, hosted by the CTICC, regularly attracts 

up to 14 000 visitors who can choose from 400 exhibits and 450 

speakers in the fields of telecoms, media and technology. 

The R900-million expansion of the Cape Town International 

Convention Centre (CTICC2,) has given the city’s biggest venue additional 

volume and flexibility. The new section of the centre hosted 

its first conference in September 2017, the 21st Annual Congress of 

the South African Council of Shopping Centres (SACSC) at the same 

time as the CTICC was hosting another major conference. 

Johannesburg and Durban are the other two South African 

cities with large MICE sectors, but towns linked to research universities 

(like Potchefstroom and Stellenbosch) and game and 

nature reserves are also popular destinations for conferences. 

Most hotels have conference facilities. 

Sun City in the North West has a wide range of venues and 

has recently won bids to host big events such as the SAFTAS, the 

South African Film and Television Awards. 

A new event on Limpopo’s calendar caused great excitement in 2018 

with the first riding of the Tour de Limpopo, a four-day cycling event. 

Structure of the industry 

The South African tourism industry is well segmented. The distribution 

channel is dominated by four major groups, each of which runs several 

companies in different parts of the value chain. The biggest groups are: 

• Imperial Holdings: mostly logistics, companies include Europcar 

and Tempest Car Hire. 

• Bidvest Travel and Aviation: Budget Rent a Car, Bidvest Sky Lounge, 

Rennies Foreign Exchange, BidTravel, Harvey World Travel, HRG 

Rennies Travel and BidAir Services. 

• Cullinan Holdings: iKapa Tours and Travel, Thompsons, Hylton Ross 

Tours, Pentravel, Grosvenor Tours and Springbok Atlas. 

• Tourvest: The group controls 63 companies dealing with many 

aspects of the tourist experience: tour operators and conference 

organisers, foreign exchange, retail (gift shops and duty-free shops) 

and hotels (African Hotels and Adventures). 


African Business Travel Association: www.abta.co.za 

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

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

South African Tourism: www.southafrica.net 

South African Tourism Services: www.satsa.com 

Casinos are a popular part 

of many entertainment and 

accommodation complexes 

around the country, although 

relatively few licences are 

in operation. Private game 

reserves and golf resorts 

has been one of the fastestgrowing 

markets in recent 

years. The South African Golf 

Tourism Association says that 

up to 10% of visitors to the 

country are attracted by its 

golf courses. 

The Garden Route and 

the KwaZulu-Natal coastline 

are rich in golfing venues. 

Between George and Cape St 

Francis there are many highlyrated 

golf courses including 

Pinnacle Point, Fancourt (three 

courses), Simola, Plettenberg 

Bay Country Club and St Francis 

Links. Limpopo has two highend 

golf resorts fairly near 

Johannesburg: Zebula Golf 

Estate and Spa and the Legend 

Golf and Safari Resort which has 

the world’s most dramatic golf 

hole, a par-three where golfers 

are ferried to the top of a mountain 

by helicopter and take aim 

at an Africa-shaped green at the 

bottom of the mountain. 

Wine tourism contributes 

indirectly more than R4.5- 

billion to the South African 

tourism sector (South African 

Wine Industry Information and 

Systems, SAWIS). According to 

Wine Tourism South Africa, a 

website and publishing concern 

that provides information 

about the wine industry, 43% of 

visitors to South Africa visit the 

Cape Winelands. 


136

Everyone went the extra mile 

and worked together with our 

team as ‘partners’ to ensure 

the success of our Annual 

Congress event. 

Amanda Stops 

CEO 

South African Council of Shopping Centres 

(SACSC) 

Nestling in the shadow of the majestic Table Mountain, and overlooking the 

spectacular Atlantic Ocean, the CTICC is a magical place where the imagined becomes 

real, visions turn into strategies, consumers become customers, and strangers from 

across the globe become colleagues, partners and friends. 

So much more than a multi-purpose event destination, this African icon combines 

expansive venues, impeccable service, cutting-edge technology and the finest global 

cuisine, to transform your convention, conference, exhibition, banquet or meeting 

into an extraordinary experience. 

For more information, or to book your event at the CTICC, call +27 21 410 5000, 

email sales@cticc.co.za or visit www.cticc.co.za.

INDABA HOTEL, SPA & CONFERENCE CENTRE 

YOUR AFRICAN DESTINATION IN JOHANNESBURG 

Just north of the fast paced business world of Sandton in the upmarket residential suburb of Fourways, lies 

the 258 bedroom Indaba Hotel, Spa & Conference Centre. It is a compelling blend of business-like 

convenience and efficiency, with a relaxed and warm country atmosphere. 

Coupled with easy and convenient access to all main highways, OR Tambo International Airport and a 

mere 15km from Lanseria International Airport, the hotel features an impressive selection of some 24 

multi-purpose conference venues that can accommodate up to 2 000 delegates in total with banqueting 

facilities for up to 500 guests. 

With two restaurants on property, there is no need to leave the comfort of the hotel to enjoy world class cuisine. 

Our 300 seater Chief’s Boma Restaurant caters for all tasted with over 120 African inspired dished ranging from 

North African Moroccan cuisine to Koeksisters and Melktert from the cape – and with a “Shisa Nyama” grill 

boasting a variety of game meats sizzled to your specification, everyone is sure to find their favourite. 

Well known for the lavish full South African Breakfast Buffet, the Epsom Terrace Restaurant also boasts an 

evening Bistro Menu which will delight even the most demanding gourmet’s exacting standards. A 

traditional Carvery Lunch with live music can be enjoyed every Sunday with limited outdoor seating 

available for those who prefer dining al fresco – after all, Jo’burg really has the best weather in South Africa. 

INDABA HOTEL, SPA & CONFERENCE CENTRE 

C/O WILLIAM NICOL DRIVE & PIETER WENNING ROAD, FOURWAYS 

Phone: +27 11 840 6600 | Email: indaba@indabahotel.co.za | Website: www.indabahotel.co.za

Take a wander through the 17 hectares of lush bushveld gardens and you will find the Mowana Spa - a 

wellness sanctuary which will revive your senses, rejuvenate your body and soothe your soul. The Mowana 

Spa, which takes its name from the majestic Baobab Tree of African Lore and Legend, offers wellness 

journeys based on the recognized healing energy of Tribal Massaging. 

Signature Pamper Journeys include the decadent Mowana Full Day African Rejuvenation Spa pamper 

which is an indulgent spa experience including breakfast, lunch, complimentary beverages and six 

revitalizing treatments; the romantic Mowana African Skies Night Spa pamper with includes dinner, 

complimentary beverages and 3 relaxing treatments; and the indulgent Mowana African Escape Spa & 

Stay Pamper Journey for the ultimate decadent relaxation. 

Our commitment to service excellence and staff empowerment through training and mentoring will ensure 

that your needs are met and your expectations exceeded as you enjoy a Day of Pampering at Mowana Spa. 

The Indaba Hotel and Mowana Spa are also PROUDLY GREEN ensuring responsible tourism and minimising 

carbon foot print through extensive recycling of waste products, water-wise gardening, greening 

conference initiatives, better material choices, minimising power usage and buying local - after all, a better 

place to live is a better place to visit. 

The Indaba Hotel is sure to meet all your business and leisure requirements. We look forward to welcoming 

you to our oasis in the City. 

15 MINUTES FROM SANDTON ... A MILLION MILES AWAY

OVERVIEW 

Banking and financial 

services 

New sectors and new licences are creating opportunities. 


African Rainbow Capital has 

acquired a majority share in 

Tyme Digital Bank. 

An entirely new economic sector has opened up in South 

Africa within the last decade – renewable energy. Financing 

for this investment segment has come from South Africa’s 

sophisticated banking sector and from the cash reserves 

of some European utilities. The Power and Infrastructure division of 

Standard Bank, one of Africa’s biggest companies, was involved in 

about 40% of the projects approved within the first four rounds of 

the bidding process. 

South Africa’s banking and financial services sector looks quite different 

compared to 10 years ago in two other important ways. Firstly, 

the move to ever-more sophisticated IT applications has accelerated 

(and moved a long way from the first ATMs launched by Standard 

Bank in 1981). The related change is the issuing of banking licences to 

newcomers offering digital banking instead of tellers and deposit slips. 

The first new bank to receive a licence since Capitec in 1999 was 

Tyme Digital in 2017. Tyme stands for Take Your Money Everywhere 

and refers to its plans which do not include a branch network. 

Commonwealth Bank of Australia bought a controlling share of 

Tyme when it was a loans company and African Rainbow Capital 

(ARC) was originally the venture’s BEE partner, but in August 

2018 ARC bought out the Australians. The bank is targeting the 

lower-income segment and is rolling out access to its services 

through machines in major retailers 

like Shoprite and Pep and 

Boxer stores. 

A study by EY reports that 

35% of digitally active South 

Africans use fintech and banks 

are responding quickly to this. 

Bank Zero, which has a provisional 

licence and is led by former 

FNB bank leaders, calls itself 

an “app-driven” bank. Discovery 

Bank has the advantage of having 

access to vast stores of data 

through all the other businesses 

in the Discovery group. The 

other bank close to gaining a 

licence is Post Bank, a division 

of the Post Office. 

In 2019, the banking 

sector globally will spend 

more than R100-billion on 

artificial intelligence (Citi GPS). 

Moneyweb calculated that 

the Big Four banks spent R30- 

billion on ICT in 2016, a sign of 

how seriously the technology 

challenge is being taken. 

Capitec, which is counted in 

some quarters as part of a new 

Big Five, recently spent R348- 

million on Creamfinance which 

will allow for machine learning 


140

OVERVIEW 

to be applied to online credit applications. Fifteen new Capitec 

branches will have no cashiers. Since its listing in 2012, Capitec 

shares have risen by 52 000%, a better performance even than 

Apple, which achieved “only” 9 000% (Business Times). 

PwC’s Major Banks Analysis reported that the four banks in 

its study had combined headline earnings of R76.1-billion at 31 

December 2017, an annualised improvement of 5.2%. The banks covered 

were Barclays Africa, FirstRand, Nedbank and Standard Bank. 

Merchant banking and investment banking are the most competitive 

sectors in South Africa with companies such as BoE Private 

Clients, Rand Merchant Bank and Investec prominent. 

Afgri, South Africa’s largest agricultural company, which already 

offers financial services, bought the South African Bank of 

Athens in 2017. Most South African agricultural companies have 

financial divisions. 

Financial services group Old Mutual (a 54% stakeholder in 

Nedbank) is in the process of creating four stand-alone businesses 

out of the Old Mutual Group. 

The insurance market has become more varied over time, with 

a greater variety of products available to more market segments, 

including middle-income earners. An example of a product responding 

to new realities is Old Mutual’s iWYZE medical gap cover, 

designed to pay the difference between what a medical aid scheme 

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

The Chartered Institute of Government Finance, Audit and Risk 

Officers advises institutions, trains it members in public finance 

and promotes the interests of professionals in the public sector. 

It also develops and assesses qualifications and advises tertiary 

institutions on the requirements for courses. 

The African Institute of Financial Markets and Risk Management 

at the University of Cape Town has a strong focus on research. 

Among the alumni of the Vunani Securities Training Academy, 

sponsored for a decade by Coronation Fund Managers, is First 

National Bank chief economist Sizwe Nxedlana. 


Banking Association of SA: www.banking.org.za 

Financial Services Board: www.fsb.co.za 

Insurance Institute of South Africa: www.iisa.co.za 

South African Institute for Chartered Accountants: 

www.saica.co.za 

South African Reserve Bank: www.resbank.co.za 

Stock exchanges 

The JSE is the world’s 19th biggest 

exchange and nearly 400 

companies are listed on the JSE 

or AltX, the JSE-owned exchange 

for smaller companies. Other investment 

options that are available 

through the JSE are Yield X 

(interest rate and currency instruments), 

the South African Futures 

Exchange (SAFEX) and the Bond 

Exchange of South Africa (BESA). 

In 2017, several new exchanges 

won regulatory approval, 

with ZAR X winning the 

nod from the Financial Services 

Board (FSB) against objections 

by the established JSE and 

another new exchange, 4AX. 

Shortly after winning its court 

case, ZAR X started trading in 

Senwesbel, the holding company 

of one of South Africa’s 

biggest agricultural trading 

companies, Senwes. There is 

no trading in derivatives or 

high-frequency trading on this 

exchange. 

A2X will offer secondary 

listings platform for JSE-listed 

companies and aims to cut 

costs for investors. African 

Rainbow Capital is an investor 

in A2X. 4 Africa Exchange (4AX) 

will focus on companies with 

market capitalisation of up to 

R8-billion. Agricultural trading 

company NWK is a shareholder 

in this venture. 

The newcomers all promise 

to use the latest technology to 

make trading simpler, quicker 

and cheaper. 


The hustle to be the best you can be, never stops. It involves deciding 

what your Next is and going for it. But many budding entrepreneurs 

remain side-hustlers, because they need a steady income to make that 

Next a reality. 

Winning a R1 million salary for the next year in Standard Bank’s My Fearless 

Next has made that dream a reality for Nonhlanhla Mthethwa. 

Nonhlanhla, an HR practitioner from Pietermaritzburg, believes the win 

will allow her company, Girlz Ink, and the African dolls they manufacture to 

become the next big thing. 

“My Fearless Next has provided me with a key to open the door to Girlz Ink a 

bit wider. I am going forward knowing that, even if I hadn’t won, I am wiser 

and better equipped to survive in a competitive business world.“ 

Nonhlanhla really took to the business boot camps on the business reality 

TV show and is using lessons learned about marketing and direct selling to 

boost her business. 

“This opportunity means so much to me. We lost a lot of stock of our Baby 

Thando dolls in a fire, which put a deal with Toys R Us on hold. Now we’ll be 

able to seal that deal. I also met so many smart people with great businesses 

on the show — even a new business partner to design clothes for our dolls.” 

Nonhlanhla’s plans to grow self-love through her black dolls will also see 

the Girlz Ink brand expand to children’s accessories including clothing, 

schoolbags and luggage. 

“I wanted to celebrate our vast ethnic diversity by giving kids a chance to play 

with dolls that reflect their own identities. We’re not only helping them build 

positive self-images and pride in who they are, but also fostering a society 

where children can learn about each other’s cultures, because all kids can 

play with our dolls.”

OVERVIEW 

Development finance and 

SMME support 

Prompt payment is vital for small businesses. 


SAB aims to create 10 000 

jobs by 2022. 

Portia Mngomezulu, the founder and managing director of 

Portia M, told the host of a radio business show in 2018 that 

one of the most important factors in allowing her to scale up 

her skin products business was the willingness of Pick n Pay 

to pay her within seven days. 

The entrepreneur was named in 2018 as Pick n Pay’s Small Supplier 

of the Year and her sales topped R10-million. From an initial investment 

of R200, she now employs 27 full-time staff and her range of products 

is available in four African countries outside South Africa. 

One of biggest problems faced by small, medium and microenterprises 

(SMMEs) is cash flow. Most government departments have 

rules about procurement which are biased in favour of purchasing 

from SMMEs or co-operatives. However, for many South African 

entrepreneurs, the inability or unwillingness of government to pay 

within 30 days presents a major risk to sustainability. The Enterprise 

and Supplier Development (ESD) Programme of Pick n Pay addresses 

and goes a step further with the seven-day rule. 

Public procurement from township enterprises from provincial and 

municipal governments in Gauteng, the province where more than half 

of the country’s SMMEs are located, 

increased in 2017 to R17-billion, up 

from just R600-million in 2014. This 

expenditure has allowed many 

township businesses to enter the 

formal economy and for them to 

become more sustainable. The City 

of Johannesburg runs seven SMME 

hubs where office space, Wifi and 

advice and training are available for 

small business operators. 

All South African retailers 

have ESD programmes which 

typically create or support small 

businesses along their supply 

chain. A small community in rural 

Mpumalanga is remote and 

difficult to get to, but 13 farmers 

at Elukwatini Farm sell tomatoes 

to Woolworths. According to a 

Business Day report, Woolworths 

works through Technoserve (an 

NPO) and Qutom (a large supplier) 

for produce to be collected. 

De Beers Venetia Mine in 

northern Limpopo has chosen 

the transport of its workers as an 

area for business creation. Two 

small bus businesses servicing 

its labour-sending areas have 

been created with a wide range 

of ownership and with potential 

to expand. 


144

OVERVIEW 

South African Breweries, a subsidiary of AB InBev, wants to use its 

four entrepreurship programmes to create 10 000 jobs by 2022. In 2018, 

Coca-Cola Beverages South Africa launched the Mintirho Foundation, 

a R400-million fund to pay for training of farmers and support business 

in the agricultural value chain. 

Toyota South Africa Motors is funding the newly created Toyota 

Empowerment Trust (TET) to the tune of R42-million. Beginning in 

2018, the trust will at first train specialised automation technicians 

with the long-term intention of helping qualified technicians to start 

their own maintenance firms. 

The National Department of Small Business Development (DSBD) 

has several programmes to assist small, medium and micro enterprises 

(SMMEs) and co-operatives. These include: 

• The Black Business Supplier Development Programme, a costsharing 

grant to promote competitiveness 

• The Co-operative Incentive Scheme, a 100% grant. 

The Small Enterprise Development Agency (Seda) is a subsidiary of the 

DSBD. Seda has 42 incubation centres in South Africa under its Seda 

Technology Programme (STP). 

In a 2018 publication, Seda reported that the number of SMMEs in 

South Africa increased by only 3%, from 2.18-million to 2.25-million, 

between 2008 and 2015. 

The National Department of Trade and Industry (dti) is trying to 

stimulate township and rural economies. Various programmes within 

the dti and its agencies contribute to the creation of SMMEs or to the 

rescue of ailing SMMEs in tough times. 

The Enterprise Investment Programme (EIP) has achieved considerable 

success. Having received a grant in 2014, Thorax LP Equipment, a 

100% black-women-owned company based in Gauteng, has subsequently 

turned over more than R8-million and employed many young 

people. A grant to Kalagadi Manganese in the Northern Cape helped 

to create 8 857 jobs. 

The National Gazelles is a national SMME accelerator jointly funded 

by Seda and the DSBD. The aim is to identify and support businesses 

with growth potential across priority sectors. Businesses can receive 


Gazelles: www.nationalgazelles.org.za 

National Small Business Chamber: www.nsbc.org.za 

Small Business Institute: www.smallbusinessinstitute.co.za 

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

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

SMME Opportunity Roadshow: www.smmesa.co.za 

up to R1-million for training, productivity 

advice, business skills 

development and the purchase 

of equipment. 

The Industrial Development 

Corporation (IDC) supports 

SMMEs either by disbursing 

loans or by taking minority 

shares in enterprises and 

giving advice. An agricultural 

project in the Northern Cape 

is an example of the kind of 

work it does. Through the 

IDC’s Transformation and 

Entrepreneurial Scheme, a 

black economic empowerment 

project is underway at 

Kakamas. The emerging farmers 

of Vaal Community Citrus 

are planting citrus. 

The president of Business 

Leadership South Africa, Jabu 

Mabuza, expressed concerns 

about at a small business summit 

in July 2018 about the number 

of different agencies working 

on diverse programmes 

to promote SMMEs. He also 

called for big businesses to pay 

SMMEs promptly. 

At about the same time 

as Mabuza’s speech, some of 

the early findings of a baseline 

study of the SMME sector 

were released. The study is 

being conducted by the Small 

Business Institute (SBI) and 

SBP, a business environment 

specialist. The study suggests 

that definitions of enterprise 

size vary too much, that there 

is not sufficient coordination in 

support of the sector and that 

entrepreneurs face an enormous 

amount of red tape. 


PROFILE 

VeriFi 

VeriFi is the leader in the business of verification and 

certification for BBBEE recognition. 

South Africa requires an economy that can meet the 

needs of all its economic citizens, its people and their 

enterprises in a sustainable manner. Government’s 

objective is to achieve this vision of an adaptive 

economy characterised by growth, employment 

and equity. Achieving authentic BEE has required a 

reassessment of traditional business models and corporate 

cultures. The Bill, code and strategy document 

rely upon core policy instruments that have been 

designed to bring about BEE. These instruments are 

essentially measurement tools that will permit the 

public and private sectors to evaluate the BEE status 

of a particular enterprise. Failure to adapt to the new 

paradigm will have significant consequences. A real 

commitment to BEE is now a business imperative. 

Description of services 

• assess and certify BBBEE rating; 

• provide insight into BBBEE challenges facing 

various organisations; 

• provide insight and guidance on the actions 

required to elevate BBBEE status; and verification 

of supplier BBBEE status. 

With BBBEE recognised as an imperative by companies 

committed to building an equitable South 

Africa, verification is an essential requirement that 

confirms a company’s participation and contribution. 

Verification is performed in a manner similar to 

that of a financial audit: it provides an independent 

assessment of investment, performance and initiatives 

in a control system. Criteria against which 

companies are measured are provided by government 

and like an audit, verification must be 

performed annually. 

Target markets 

Small, medium and large enterprises achieving 

an annual turnover of below R10-million and over 

R50-million respectively (including all charter 

sectors). 

Pricing 

Pricing for BEE consultancy services is based on 

the client’s requirements and can be structured 

on an hourly or monthly basis. 

For BEE verification and issue of a BEE Compliance 

Certificate, please contact the office for the 

current rates. 


146

PROFILE 

The value of verification 

With BBBEE recognised as an imperative by companies 

committed to building an equitable South 

Africa, verification is an essential requirement that 

confirms a company’s participation and contribution. 

Verification is performed in a manner similar to that of 

a financial audit: it provides an independent assessment 

of investment, performance and initiatives as 

a control system. Criteria against which companies 

are measured are provided by government, and like 

an audit, verification must be performed annually. 

BBBEE explained 

Government BBBEE legislation consists of: 

• The Strategy for Broad-Based Black Economic 

Empowerment 

• The Broad-Based Black Economic 

Empowerment Act, No 53 of 2003 

• The Codes of Good Practice for Black Economic 

Empowerment 

• Various sectoral BEE Charters or Codes 

In terms of these Codes of Good Practice, 

businesses are divided into three categories: 

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

or when in the first year of incorporation, a 

business is categorised as an Exempt Micro 

Enterprise (EME). However, it is necessary 

to confirm this status by providing proof of 

annual income. 

• Businesses with a turnover of between 

R10-million and R50-million a year are categorised 

as Qualifying Small Enterprises (QSEs). 

The criteria for each of these elements are less 

onerous for QSEs than for companies with 

turnovers exceeding R50-million per annum. 

Advantages of BEE certificate 

from VeriFi 

• proposals for new business with government; 

• the licensing of regulated activities which include 

mining, liquor sales and the granting of 

credit; leasing of premises from government or 

private businesses; and 

• the creation or continuance of business relations 

with clients seeking assurance of a 

company’s BEE compliance. 

Once a verification and certified rating through VeriFi 

is accomplished, a company can perform business in 

confidence, as its commitment to equality, nationbuilding 

and unique South African business processes 

will be recognised. 

Key facts and figures 

Year established: 2005 

No of staff: 15 

Major clients: BP, Public Investment Corporation 

Limited, IBM South Africa, Saab Grintek Defence, 

Independent Newspapers, Premier Fishing & Brands 

Limited, African Equity Empowerment Investment 

Limited, South African Express Airways SOC Ltd. 

CONTACT INFO 

Tel: +27 86 175 3233 

Email: info@verifibee.co.za 

Website: www.verifibee.co.za 

147 


LISTING 

South African National 

Government 

An overview of South Africa’s national government departments. 

The Presidency 

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

Website: www.thepresidency.gov.za 

Website: www.economic.gov.za 

Department of Agriculture, Forestry and 

Fisheries 

Tel: +27 12 319 6000 | Fax: +27 12 319 6681 

Website: www.daff.gov.za 

Department of Arts and Culture 

Tel: +27 12 441 3000 | Fax: +27 12 440 4485 

Website: www.dac.gov.za 

Department of Basic Education 

Tel: +27 12 357 3000 | Fax: +27 12 323 5989 

Website: www.education.gov.za 

Department of Communications 

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

Website: www.doc.gov.za 

Department of Cooperative Governance and 

Traditional Affairs 

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

Website: www.cogta.gov.za 

Department of Correctional Services 

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

Website: www.dcs.gov.za 

Department of Economic Development 

Tel: +27 12 394 3747 | Fax: +27 12 394 0255 

Website: www.economic.gov.za 

Department of Defence 

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

Website: www.dod.mil.za 

Department of Energy 

Tel: +27 12 406 8000 | Fax: +27 12 319 6681 

Website: www.energy.gov.za 

Department of Environmental Affairs 

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

Website: www.environment.gov.za 

Department of Finance (National Treasury) 

Tel: +27 12 315 5111 | Fax: +27 12 315 5126 

Website: www.treasury.gov.za 

Department of Health 

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

Website: www.doh.gov.za 

Department of Higher Education 

and Training 

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

Website: www.dhet.gov.za 

Department of Home Affairs 

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

Website: www.dha.gov.za 

Department of Human Settlements 

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

Website: www.dhs.gov.za 

Department of International Relations and 

Cooperation 

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

Website: www.dirco.gov.za 

Department of Justice and Constitutional 

Development 

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

Website: www.doj.gov.za 


148

LISTING 

Department of Labour 

Tel: +27 12 309 4000 | Fax: +27 12 320 2059 

Website: www.labour.gov.za 

Department of Military Veterans 

Tel: 080 232 3244 (SA only) 

Website: www.dmv.gov.za 

Department of Mineral Resources 

Tel: +27 12 444 3000 | Fax: +27 12 341 2228 

Website: www.dmr.gov.za 

Department of Police (Civilian Secretariat for 

Police Service) 

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

Website: www.saps.gov.za 

Department of Public Enterprises 

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

Website: www.dpe.gov.za 

Department of Public Service and 

Administration 

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

Website: www.dpsa.gov.za 

Department of Public Works 

Tel: +27 12 406 2000 | Fax: 086 272 8986 

Website: www.publicworks.gov.za 

Department of Rural Development and 

Land Reform 

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

Website: www.ruraldevelopment.gov.za 

Department of Science and Technology 

Tel: +27 12 843 6300 | Fax: +27 12 349 1041/8 

Website: www.dst.gov.za 

Department of Small Business Development 

Tel: +27 12 394 5535 | Fax: +27 12 394 0339 

Website: www.dsbd.gov.za 

Department of Social Development 

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

Website: www.dsd.gov.za 

Department of State Security 

Tel: +27 12 367 0700 | Fax: +27 12 367 0749 

Website: www.ssa.gov.za 

Department of Sport and 

Recreation 


Tel: +27 12 304 5000 

Fax: +27 12 323 7196 / 086 644 9583 

Website: www.srsa.gov.za 

Department of Tourism 

Tel: +27 12 444 6000 | Fax: +27 12 444 7000 

Website: www.tourism.gov.za 

Department of Trade and Industry 

Tel: 086 184 3384 | Fax: 086 184 3888 

Website: www.thedti.gov.za 

Department of Transport 

Tel: +27 12 309 3000 | Fax: +27 12 328 3370 

Website: www.transport.gov.za 

Department of 

Telecommunications and Postal 

Services 

Tel: +27 12 427 8000 | Fax: +27 12 427 8110 

Website: www.dtps.gov.za 

Department of Water and 

Sanitation 

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

Website: www.dwa.gov.za 

Department of Women 

Tel: +27 12 359 0000 | Fax: 086 765 3365 

Website: www.women.gov.za 


INDEX 

INDEX 

Adorantha Investments............................................................................................................................................................ IFC, 13 

Afrimat........................................................................................................................................................................................................ 7 

Air France ................................................................................................................................................................................................51 

Air Products.........................................................................................................................................................................................111 

Air Traffic Navigation Services (ATNS)...................................................................................................................................11, 53 

Bakenberg Ready Mix...................................................................................................................................................................... 106 

Bakone Holding Investment.....................................................................................................................................................77-81 

Black Management Forum (BMF)..................................................................................................................................................96 

BlueBiz......................................................................................................................................................................................................55 

Botswana Investment and Trade Centre (BITC)........................................................................................................................50 

Cape Town International Convention Centre (CTICC)........................................................................................................ 137 

EBH SA.......................................................................................................................................................................................................62 

Emalangeni Technologies.............................................................................................................................................................. 132 

E&T Minerals...........................................................................................................................................................................................71 

Export Credit Insurance Corporation of South Africa (ECIC)..............................................................................................46 

Genesis Eco-Energy Developments.......................................................................................................................................29-31 

ICT Training..........................................................................................................................................................................................127 

Indaba Hotel, Spa & Conference Centre................................................................................................................................... 138 

Invest Durban ......................................................................................................................................................................................... 2 

Kaefer Thermal Contracting Services...........................................................................................................................................32 

Kemtek Imaging Systems................................................................................................................................................................... 5 

Khabane Majestic Consulting...................................................................................................................................................... 128 

KLM Royal Dutch Airlines................................................................................................................................................................IBC 

Lesotho National Development Corporation (LNDC)...........................................................................................................48 

Maluti-A-Phofung Special Economic Zone (MAP SEZ).........................................................................................................40 

Malutsa..............................................................................................................................................................................................84-89 

Mamli Projects....................................................................................................................................................................................104 

Maitazwifoma Engineering and Consulting.............................................................................................................................93 

Maritz Electrical...........................................................................................................................................................................34, 102 

Marley Pipe Systems........................................................................................................................................................................ 112 

Modi Mining...........................................................................................................................................................................................73 

Mueletshedzi Logistics (MLTL)..............................................................................................................................................99, 122 

Netha EngineeringTechnology.......................................................................................................................................................94 

Prompt IT.............................................................................................................................................................................................. 130 

Selfmed.........................................................................................................................................................................................43, OBC 

Scouts South Africa.............................................................................................................................................................................19 

South African International Maritime Institute (SAIMI).................................................................................................59-61 

Standard Bank....................................................................................................................................................................................142 

Thebe Investment Corporation.................................................................................................................................................9, 69 

Tirisano Holdings...............................................................................................................................................................................114 

Transnet Pipelines.............................................................................................................................................................................150 

Upington Special Economic Zone ................................................................................................................................................38 

Verifi........................................................................................................................................................................................................146 

Join us! 

Advertise your organisation in this journal to reach 

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

YEARS 

KLM Royal Dutch Airlines 

First flight to South Africa 1938 

Celebrating 80 years of service to South Africa 

www.klm.co.za

Plan for the 

unplanned. 

Get medical 

aid cover. 

Meet Joe. 

His smart phone is insured. 

His body? Not so much. 

Don’t be like Joe. 

Get cover that matters. 

Get medical aid. 

! 

SMS “SAmed” to 45738 today!

South African Business 2019 edition

Transform your PDFs into Flipbooks and boost your revenue!

Delete template?

Save as template ?