Northern Cape Business 2019/20 edition

christoffscholtz

Since its launch in 2009, Northern Cape Business has established itself as the premier business and investment guide to the Northern Cape Province. The 2019/20 edition is officially supported and used by the Northern Cape Department of Economic Development and Tourism.

Northern Cape Business is unique as a business and investment guide that focuses exclusively on the province. In addition to comprehensive overviews of sectors of the economy, this publication has a particular focus on specific, packaged investment opportunities.

The massive potential represented by the Square Kilometre Array radio telescope project and the rapid progress being made by Sol Plaatje University are also highlighted in this edition.

NORTHERN CAPE

BUSINESS

THE GUIDE TO BUSINESS AND INVESTMENT

IN THE NORTHERN CAPE PROVINCE

2019/20 EDITION

RTHERN CAPE

SINESS

E TO BUSINESS AND INVESTMENT

ORTHERN CAPE PROVINCE

2017/18 EDITION

JOIN US ONLINE

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Web: http://economic.ncape.gov.za

Email: dedat@ncpg.gov.za


CONTENTS

CONTENTS

Northern Cape Business 2019/20 Edition

Introduction

Foreword4

The Northern Cape’s unique guide to business and investment.

Special features

Regional overview 6

Major infrastructure is under construction in the Northern

Cape – or it will be soon – as the province prepares to move

its economy into top gear.

A competitive destination 10

A trade and foreign direct investment (FDI) profile for the

Northern Cape.

Investment projects 12

A wide range of investment opportunities are available for

potential investors in the province.

Upington Special Economic Zone 26

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

Tourism sector boom 28

Adventure tourism continues to grow, and investors are sought

for a steam train revival.

Education creating opportunity 30

Sol Plaatje University is reaching for the stars as the world’s

biggest telescope project ramps up in the Northern Cape.

NORTHERN CAPE BUSINESS 2019/20

2


Economic sectors

CONTENTS

Agriculture40

Agri-processing is set to drive economic growth.

Grapes and wine 44

Record harvests are being recorded.

Mining48

A huge zinc project near Pofadder could lead to the Northern

Cape acquiring a smelter and a refinery.

Water56

Water projects are stimulating economic growth.

Renewable energy 58

Technical innovation comes to the Northern Cape.

Banking and finance 60

New banks are targeting niche markets.

Development finance and SMME support 61

An industrial park at Kathu will boost SMMEs.

References

Key sector contents 38

Index64

ABOUT THE COVER:

Credit: NRF|SARAO. The MeerKAT radio telescope in the Karoo

region of South Africa comprises 64 antennas and is currently

the largest radio telescope in the world. MeerKAT is the precursor

to the giant international project, the Square Kilometre Array

(SKA) radio telescope. When the prototype Karoo Array Telescope

(KAT) was expanded, the name for the expanded telescope was

adopted to reflect the fact that more receptors were to be built

(“meer” in Afrikaans) and to call to mind the much-loved animal

that roams the Karoo.

NORTHERN CAPE BUSINESS 2019/20


FOREWORD

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: Shiko Diala, Sandile Koni,

Gavin van der Merwe, Sam Oliver,

Gabriel Venter, 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

Northern Cape Business

A unique guide to business and investment in the

Northern Cape.

The 2019/20 edition of Northern Cape Business is the ninth

issue of this highly successful publication that has, since its

launch in 2009, established itself as the premier business

and investment guide for the Northern Cape Province.

Officially supported and used by the Northern Cape Department

of Economic Development and Tourism, Northern Cape Business is

unique as a business and investment guide that focuses exclusively

on the province. In addition to comprehensive overviews of sectors

of the economy, this publication has a particular focus on specific,

packaged investment opportunities

The massive potential represented by the Square Kilometre Array

radio telescope project and the rapid progress being made by Sol

Plaatje University are also highlighted in this edition.

To complement the extensive local, national and international

distribution of the print edition, the full content can also be viewed

online at www.globalafricanetwork.com under e-books. Updated

information on the Northern Cape is also available through our monthly

e-newsletter, which you can subscribe to online at www.gan.co.za, in

addition to our complementary business-to-business titles that cover

all nine provinces as well as our flagship South African Business title.

Chris Whales

Publisher, Global Africa Network Media

Email: chris@gan.co.za

DISTRIBUTION

Northern Cape Business is distributed internationally on outgoing

and incoming trade missions, through trade and investment

agencies; to foreign offices in South Africa’s main trading partners

around the world; 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 and companies.

Member of the Audit Bureau

of Circulations

PUBLISHED BY

Global Africa Network Media (Pty) Ltd

Company Registration No: 2004/004982/07

Directors: Clive During, Chris Whales

Physical address: 28 Main Road, Rondebosch 7700

Postal address: PO Box 292, Newlands 7701

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

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

ISSN 2074-0654

COPYRIGHT | Northern Cape 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: Abengoa Solar; Aurecon;

Flicker/SA Tourism; Industrial Development Corporation; iStock; Kumba

Iron Ore; Murray and Dickson Construction; Noblesfontien Wind Farm;

NRF|SARAO; Kevin Wright and Vedanta Zinc International; Robertson

Ventilation Industries (RVI); Savage + Dodd architects; Sedibeng Water.

NORTHERN CAPE BUSINESS 2019/20 4

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

used all reasonable efforts to ensure that the information contained in Northern

Cape Business is accurate and up-to-date, the publishers make no representations

as to the accuracy, quality, timeliness, or completeness of the information.

Global Africa Network will not accept responsibility for any loss or damage

suffered as a result of the use of or any reliance placed on such information.


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


SPECIAL FEATURE

A REGIONAL OVERVIEW OF THE

NORTHERN

CAPE PROVINCE

By John Young

Major infrastructure is under construction in the Northern Cape —or it will be soon

— as the province prepares to move its economy into top gear. Water schemes, an

economic development zone, a railways logistics hub, a Special Economic Zone at

Upington Airport, a new harbour and a new university are among the infrastructure

projects underway or under consideration in South Africa’s largest province.

The planned Special Economic Zone

(linked to the Upington International

Airport) is intended as a site for solarrelated

manufacturing. The Industrial

Development Corporation has spent R11.4-

billion of its commitment to renewable energy

so far in the Northern Cape. Part of the IDC’s

role has been to take up a 20% stake in projects

on behalf of local communities.

Provincial assets

The Northern Cape is South Africa’s

largest province at 372 889km², covering

30% of the country’s landmass on the dry

western side of the country bordering the

Atlantic Ocean, Namibia and Botswana.

The Sishen-Saldanha ore export railway

line is one of the mechanical wonders of

the world. The line extends 860km and the

NORTHERN CAPE BUSINESS 2019/20

6


SPECIAL FEATURE

trains sometimes extend beyond 3 500 metres

and carry a load exceeding 41 000 tons.

The Northern Cape produces more than 84%

of South Africa’s iron ore. Kumba Iron Ore is the

country’s biggest iron-ore miner with two large

two mines (Sishen and Kolomela) in the province.

The Kalahari Basin contains 80% of the

world’s manganese reserve, but only 15% of

global production comes from this area so there

is enormous scope for development. Several new

black-owned manganese projects are underway.

The world receives 7% of its diamonds from the

Northern Cape, and exports of zinc and lead

from the province account for 13% of global

demand.

Vedanta Zinc International started work in

2015 on its huge new Gamsberg Zinc project.

The new mine is near to Vedanta’s existing Black

Mountain mine and is the biggest current new

project underway The flotation area of the mine

is shown here in a photograph by Kevin Wright.

The province also has copper, lead, zinc,

mineral sands, gypsum, granite, asbestos,

fluorspar, semi-precious stones and marble.

The Northern Cape is a big contributor to

the national basket of exports in minerals and

in agricultural products such as table grapes

and raisins. About 45 000 people are employed

in agriculture, which represents approximately

16% of employment. The province supports

livestock farming (mainly goats and sheep

with cattle in the north), table grapes, dates,

cotton and cereal crops and vineyards along

the banks of the Orange River, large varieties of

crops including cotton, groundnuts, wheat and

maize on irrigated lands. Pecan nuts are a major

new crop. Thoroughbred horses are bred in the

south-eastern parts of the province, especially

around Colesberg.

The Northern Cape is home to six national parks

and five provincial parks and nature reserves. The

Richtersveld Cultural and Botanical Landscape is

a World Heritage Site and the Namaqualand spring

flower display draws many visitors.

Most of the province falls into the category

of semi-arid (apart from the coastal strip) and it

receives relatively little rainfall. Summers are hot

and winters are cold.

District municipalities

Frances Baard District Municipality

Towns: Kimberley, Barkly West, Warrenton,

Hartswater, Jan Kempdorp.

This district accounts for 40.3% of the province’s

economic activity. It is the smallest but with a population

of approximately 325 500, it is the most

densely populated. Although Kimberley is historically

7

NORTHERN CAPE BUSINESS 2019/20


SPECIAL FEATURE

renowned for diamond mining, its economy is now

driven by its role as the administrative headquarters

of the province. Strategically located and with good

infrastructure, Kimberley is the leading centre in

the province for retail, financial services, education,

commerce and light industry.

The Mittah Seperepere Convention Centre and

the Sol Plaatje University are in Kimberley. Mining

and agriculture are found in rural municipalities.

Agriculture in the region comprises crop cultivation

and stock and game farming. The Vaalharts Water

Scheme is the largest irrigation project of its kind

in the southern hemisphere.

Investment opportunities:

• Sol Plaatje University

• Kimberley International Diamond and

Jewellery Academy (KIDJA)

• Mining: diamonds and precious stones

• Manufacturing: textiles, agri-processing.

John Taolo Gaetsewe District Municipality

Towns: Kuruman, Kathu, Hotazel.

Kuruman is the headquarters of local government

in this region and contributes 19.7% to the

province’s economy. The local spring produces

20-million litres of water every day.

Most of the district is situated on the Ghaap

Plateau, over 1 000 metres above sea-level and

can experience extreme temperatures. Most

agricultural activity is limited to grazing and

boer goats are a popular breed among farmers,

although game hunting is growing.

Kathu has a well-developed CBD with shopping

malls that arose when iron demand was high.

The Sishen iron ore mine outside Kathu is a vast

undertaking, providing employment for thousands

of people. Samancor’s Mamatwan and Wessels

manganese mines and plants are situated at Hotazel.

Investment opportunities:

• Kathu Industrial Park (IDC involvement)

• Eco-tourism and hunting

• Boesmansput diving resort

• Gamagara Mining Corridor (housing,

infrastructure)

• Goat commercialisation

• Agri-processing: olives, grains, pecan

nuts, medicinal plants.

Namakwa District Municipality

Towns: Springbok, Calvinia, Niewoudtville,

Garies, Williston, Fraserburg, Sutherland,

Pofadder, Okiep, Port Nolloth, Alexander Bay.

The Namakwa District stretches from the northwestern

corner of the province, and the country,

bordering Namibia and the Atlantic Ocean to

the southern border of the province with the

Western Cape Province. It includes the famous

star-gazing town of Sutherland on its southern

edge. The district is sparsely populated, and

predominantly rural. It contributes 11.1% to

economic activity in the province.

A major new investment has been undertaken

in zinc at the Gamsberg project.

The mining and agricultural sectors provide

most employment, while tourism and small-scale

manufacturing are also present. There are plans

to upgrade the harbour at Port Nolloth.

The region’s economy gets a great boost

every spring when tourists flock to see the veld

in bloom. The climate and soil support certain

niche crops, and the sites and sights are unique

to the region, offering opportunities in agriculture

and tourism. Niewoudtville is the site of a rooibos

tea factory.

The /Ai/Ais/Richtersveld Transfrontier Park,

the Namakwa National Park and the Tankwa

Karoo National Park have the potential to grow

as travel destinations, as does the western

coastline.

Investment opportunities:

• Development of Port Nolloth and smaller

harbours

• Hondeklip Fish Factories

• Abalone and hake

• Kelp processing and export

• Game and nature reserve infrastructure

• Rooibos tea

• Calvinia: sheep and goat processing.

Pixley Ka Seme District Municipality

Towns: De Aar, Hanover, Carnarvon, Douglas,

Marydale, Prieska, Hopetown, Richmond,

Noupoort, Norvalspont, Colesberg.

The district covers 102 000 square kilometres

in the central Karoo and contributes 11.3% of

NORTHERN CAPE BUSINESS 2019/20

8


SPECIAL FEATURE

the economic activity of the province. It has four

national roads passing through it. De Aar, the

site of the municipal headquarters, has national

significance as a railway junction. The provincial

government has published plans to create a

logistics hub at De Aar.

Star-gazing is Carnarvon’s great claim to

fame, and it will now host the Square Kilometre

Array (SKA) radio telescope.

The district is home to three of South Africa’s

major dams. Agricultural production includes

wheat, maize, peanuts, grapes, beans, potatoes,

nuts and sheep farming. Pixley Ka Seme is the

largest wool-producing district in South Africa,

but most of what is produced is processed in

the Eastern Cape, so opportunities exist for the

establishment of a cotton mill, a tannery and a

facility to add value to semi-precious stones.

Horse breeding is a valuable contributor to the

regional economy.

Investment opportunities:

• De Aar rail cargo hub and workshops

• SKA engineering, science, logistics

support and education

• Douglas holiday resort

• Booktown Richmond festivals

• Wool, pistachio nuts and venison

processing

• Water tourism activities on dams.

ZF Mgcawu District Municipality

Towns: Upington, Kakamas, Kenhardt,

Groblershoop, Postmasberg.

The Orange River supports a thriving

agricultural sector and a growing tourism

sector. The investment climate is ripe for

tourism along the Orange River and around

unique physical attractions such as the

Augrabies Falls.

Upington is already a busy town with

processing facilities for agricultural products.

The planned development of a Special

Economic Zone (SEZ) in the town and next

to Upington International Airport will boost

manufacturing. The main targeted sectors at

this stage are in the renewable energy sector,

for example, solar panels.

Most of the population of the //Khara Hais

Local Municipality lives in Upington. Agriculture

is a prominent feature of the local economy,

as well as wholesale and retail services in

and around the town. Various kinds of highspeed

car racing and testing takes place on

the roads, tracks and airport runway in or near

the town.

The processing of wine and dried fruit is

one of the biggest manufacturing activities in

the province. Mining activities take place in

Kgatelopele, where diamonds and lime are

found. Together with sheep and cattle farming,

mining provides most of the employment to

be found in Siyanda. The diamond mine at

Finsch is Petra Diamonds’ newest and largest

acquisition.

Investment opportunities:

• Upington Special Economic Zone

• Upington Cargo and Electronics hub: SKA,

renewable energy and aircraft storage

• Upington International Airport

• Orange River Smallholder Farmer

Settlement and Development Programme

• Tourism: wine tours, adventure and hunting

• Upington vehicle testing site

Business Process Outsourcing (BPO).

9 NORTHERN CAPE BUSINESS 2019/20


SPECIAL FEATURE

A competitive destination

A trade and foreign direct investment (FDI) profile for the Northern Cape.

SPECIAL FEATURE

A competitive destination

A trade and foreign direct investment (FDI) profile for the Northern Cape

Between January 2011 and March 2016, a total of 486 FDI projects were recorded. These projects

represent a total capital investment of ZAR365.63 which is an average investment of ZAR752.23

m per project. During the period, a total of 68,533 jobs were created.

Aggregate Annual Figures

Between January 2011 and

March 2016, a total of 486 FDI

projects were recorded. These

projects represent a total capital

investment of ZAR365.63-billion

which is an average investment of

ZAR752.23m per project. During

the period, a total of 68 533 jobs

were created.

Year Projects Capex Avg Capex Jobs Created Avg Jobs Companies

2016 15 31 689.9 2112.6 4 062 270 15

2015 80 53 080.6 663.2 11 209 140 73

2014 73 37 979.7 520.2 6 747 92 70

2013 100 74 883.7 748.7 12 981 129 87

2012 101 46 718.2 462.8 13 328 131 93

2011 117 121 273.9 1037.0 20 206 172 103

Total 486 365 626.0 752.2 68 533 141 397

Notes:

1) © fDi Intelligence, from the Financial Times Ltd 2016. Data subject to terms and conditions of use

2) All Capex figures shown in the table are in ZAR - South Africa Rand millions

3) Capex data includes estimated values Financial Times Ltd takes no responsibility for the accuracy or otherwise of this data.

4) Jobs data includes estimated values Financial Times Ltd takes no responsibility for the accurac y or otherwise of this data.

Top 10 Export Countries: 2017

Country

Export value (R)

Aggregate Annual Figures Botswana 6,890,685,954

China 2,221,952,600

Projects Created Avg Destination State Capex Avg Capex Jobs Jobs Companies

India

129

1,069,547,234

Gauteng 197 113 130.5 574.1 28 142 190

Western Cape 86 26 092.7 303.5 7 154 83 84

KwaZulu-Natal

Japan

49 27 887.8 569.4 5 694

715,242,337

116 40

Eastern Cape 28 28 097.5 1003.0 7 043 251 25

Northern Cape South Korea 27 82 577.1 3058.2 4 314 696,539,853 159 17

Mpumalanga 9 5 586.7 621.0 1 471 163 9

Limpopo Hong Kong 6 7 938.3 1322.9 499599,381,645

83 4

Free State 5 18 979.3 3796.3 2 676 535 5

North West Spain 4 1 160.0 290.6 569528,724,330

142 4

Not Specified 75 54 177.3 722.9 10 984 146 71

Total Netherlands 486 365 626.0 752.2 68 533 468,907,925 141 397

Notes:

Russia 444,756,156

1) © fDi Intelligence, from the Financial Times Ltd 2016. Data subject to terms and conditions of use

Namibia

the table are

380,498,692

2) All Capex figures shown in in ZAR - South Africa Rand millions

3) Capex data includes estimated values Financial Times Ltd takes no responsibility for the accuracy or otherwise of this data.

Source: IHS Markit Regional eXplorer version 1570

4) Jobs data includes estimated values Financial Times Ltd takes no responsibility for the accurac y or otherwise of this data.

Between January 2011 and March 2016 a total of 27 FDI projects were recorded in the Northern

Top 10 Export Countries: 2017

Top 10 Export Products: 2017

Cape. These projects represent a total capital investment of ZAR82.57 which is an average

Country

Export value (R)

Product

Export value (R)

investment of ZAR3058.2 m per project. During the period, a total of 4 314 jobs were created.

Botswana 6,890,685,954

Other mining and quarrying 6,868,457,598

China 2,221,952,600

India 1,069,547,234

Japan 715,242,337

South Korea 696,539,853

Hong Kong 599,381,645

Spain 528,724,330

Netherlands 468,907,925

Russia 444,756,156

Namibia 380,498,692

Source: IHS Markit Regional eXplorer version 1570

Mining of metal ores 6,774,758,037

Agriculture and hunting 2,662,038,128

Furniture and other items NEC and recycling 435,389,857

Metal products, machinery and household appliances 312,717,558

Food, beverages and tobacco products 235,931,643

Transport equipment 170,557,206

Fuel, petroleum, chemical and rubber products 54,817,748

Electrical machinery and apparatus 53,095,740

Wood and wood products 34,282,962

Source: IHS Markit Regional eXplorer version 1570

NORTHERN CAPE BUSINESS 2019/20

Top 10 Export Products: 2017

Product

Export value (R)

10

Other mining and quarrying 6,868,457,598

Mining of metal ores 6,774,758,037


All FDI into Northern Cape, South Africa

Data for companies from source countries investing in Northern Cape in activities between January 2011 and March 2016

Project Date Investing

NO

Company

Mar-15 Enel Green

1

Power

Jan-15 ACWA Power

2

International

3

Jan-15 Engie (GDF SUEZ)

(Gaz de France

Parent

Company

Source

Country

Source City Capital

Investment

Sub-Sector

Enel Italy Rome 2557.833087 Solar electric

power

ACWA Saudi Arabia Riyadh 14060.46589 Solar electric

Power

power

International

Engie (GDF France Paris 2557.833087 Solar electric

SUEZ) (Gaz

power

de France

Industry

Activity

Electricity

Electricity

Electricity

Jan-15 Sonnedix Solar Sonnedix Netherlands Amsterdam 2568.378436 Solar electric Electricity

4

Solar

power

Nov-14 Sesa Sterlite Vendanta UK London 7381.744593 Copper,

Electricity

5

Resources

lead,nickel,zinc

Nov-13 Sunpower Total France Paris 2343.410982 Solar electric Electricity

6

power

Oct-13 Mainstream Mainstream Ireland Dublin 2568.378436 Wind electric Electricity

7

Renewable Renewable

power

Power

Power

Oct-13 Mainstream

8

Renewable

Power

Oct-13 Mainstream

9

Renewable

Power

Mainstream

Renewable

Power

Mainstream

Renewable

Power

Ireland Dublin 2568.378436 Wind electric

power

Ireland Dublin 2568.378436 Wind electric

power

Electricity

Electricity

Sep-13 Acciona Acciona Spain Alcobendas 2441.834243 Solar electric Electricity

10

power

Sep-13 ACWA Power ACWA Saudi Arabia Riyadh 6151.453828 Solar electric Electricity

11

International Power

power

International

May-13 Scatec Solar Scatec AS Norway Oslo 2348.449316 Solar electric Electricity

12

power

Feb-13 Globeleq

Globeleq South East UK London 2568.378436 Solar electric Electricity

13

Generation Generation

power

Nov-14 Mainstream 17 Mainstream

Jan-12 Powerway Ireland Powerway Dublin China 2568.378436 Foshan 0.23434109 Solar electric Steel products Electricity Manufacturin

14

Renewable Renewable Renewable Renewable Energy

8 power

g

Power

Power Energy

Nov-12 Mainstream Mainstream Ireland Dublin 82.01938437 Solar electric Electricity

15 18 Jan-12 Powerway Powerway

China Foshan 0.23434109 Other

Manufacturin

Renewable Renewable

power

Renewable Renewable Energy

8

fabricated g

Power

Power

Energy

metal pro

Jan-12 Powerway

Powerway China Foshan 0.234341098 Other

Education &

16

Renewable 19 Renewable

Jan-12 Powerway Powerway

China Foshan 0.23434109 fabricated Coating, Training heat Manufacturin

Energy

Energy Renewable Renewable Energy

8 metal prds treating ,etc g

Jan-12 Powerway

Powerway Energy China Foshan 0.234341098 Steel products Manufacturing

17

Renewable Renewable

Energy

No Energy Projec Investing

Parent Company Source Source City Capital Sub-Sector Industry

Jan-12 Powerway

Powerway

t Date Company China Foshan Country 0.234341098 Investment Other

Manufacturing Activity

18

Renewable Renewable

fabricated

Energy

20 Energy Dec-11 Abengoa Abengoa Spain Seville 2283.65400 metal pro Solar electric Electricity

2

power

Jan-12 Powerway

Powerway China Foshan 0.234341098 Coating, heat Manufacturing

19

Renewable Renewable

treating ,etc

21 Dec-11 Abengoa Abengoa Spain Seville 2283.65400 Solar electric Electricity

Energy

Energy

2

power

Dec-11 Abengoa Abengoa Spain Seville 2283.654002 Solar electric Electricity

20

22 Dec-11 Anglo American Anglo American UK London 11717.0549 power Iron ore mining Extraction

Dec-11 Abengoa Abengoa Spain Seville 2283.654002 1 Solar electric Electricity

21

power

Dec-11 Anglo American 23 Anglo Dec-11 Scatec Solar UK Scatec AS London Norway 11717.05491 Oslo 3091.31059 Iron ore Solar Extraction

electric Electricity

22

American

7 mining power

Dec-11 Scatec Solar Scatec AS Norway Oslo 3091.310597 Solar electric Electricity

23

24 Dec-11 Solar Reserve Solar Reserve United Santa 2568.37843 power Solar electric Electricity

States Monica 6

power

Dec-11 Solar Reserve Solar

United States Santa Monica 2568.378436 Solar electric Electricity

24

Reserve

power

25 Jul-11 David Brown Clyde Blowers UK East 58.5852745 General Maintenance

Jul-11 David Brown Clyde

UK East Kilbridge 58.58527455 General

Maintenance

25 Group

Kilbridge 5

purpose & Service

Group

Blowers

purpose machinery & Service

machinery

May-11 Diana Group 26 Diana May- Group Diana France Group Diana Not Group specified France 326.905832 Not

326.905832 Paints, Paints, Manufacturing

26

Manufacturin

(Groupe Diana) (Groupe 11 (Groupe Diana) (Groupe Diana)

specified coatings& coatings& g

Diana)

adhesive adhesive

May-11 Diana Group Diana Group France Not specified 326.905832 Paints,

Manufacturing

26

(Groupe Diana) 27 (Groupe Feb-11 Jupiter Mines Jupiter Mines Australia Perth 2343.41098 coatings& Nonmetallic Extraction

Diana)

2 adhesive mineral mining

Feb-11 Jupiter Mines Jupiter Australia Perth 2343.410982 Nonmetallic Extraction

27

Mines

mineral mining

Source: Investment South Africa (ISA) the dti


FOCUS

Investment

Opportunities

Northern Cape economic potential and investment.

Several locations within the Northern

Cape are being developed to be catalysts

for investment into the province.

These include the Upington Special

Economic Zone, the Kathu Industrial Park,

the De Aar Logistics Hub and the Boegoebaai

Port Project.

Other sites attracting different kinds of investment

include the Square Kilometre Array radio

telescope project near Carnarvon and the Sol

Plaatje University in Kimberley.

The competitive and comparative advantages

of the Northern Cape can be summarised as

follows:

• mineral resources

• climate

• open spaces and distances

• astronomy

• air quality

• coastline.

To realise the socio-economic priorities of the

Northern Cape Province, there is a focus on the

following key economic sectors:

• agriculture and agro-processing

• fishing and aquaculture

• mining and mineral processing

• manufacturing

• tourism

• knowledge economy

• energy sector.

The following investment opportunities are

described in detail in the pages that follow:

Investment opportunity Sectors Location Value

Kathu Industrial Park

Upington SEZ Agri-hub

Aviation Aircraft

Development

Maintenance repair and

operations (MRO)

Mining, renewable energy,

service, logistics

manufacturing

Kathu

R530-million (1st phase)

Agricultural processing and Upington

R570-million

logistics

Aeronautical Upington SEZ R340-million

Aeronautical Upington SEZ R800-million

Northern Cape Renewable

Renewable energy,

Upington

R23-million, R240-million or

Energy Incubator

manufacturing

R500-million (options)

Solar Farm, power for SEZ Renewable energy Upington SEZ R270-million

Fibre Optics Manufacturing ICT broadband Upington SEZ R228-million

Nyaniso Healthcare

Latex condom

Colesberg

R150-million

manufacturing

Versa Chemicals, Paint and

Detergent Manufacturing

Manufacturing Kimberley R100-million

Promethean Waterfront Tourism and heritage Barkly West R800-million

NORTHERN CAPE BUSINESS 2019/20

12


Fibre Optics

Manufacturing

Broadband services.

Project location

The project’s physical address is 24 Schroeder

Street, Upington, in the ZF Mgcawu District.

Targeted sectors

ICT broadband.

FOCUS

Project description

The investor is a fibre optic manufacturing and

broadband solutions company. It is a black

and female-owned company managed and

supported by a team of experts in engineering,

marketing and financial disciplines. The

company intends to contribute to the

infrastructural broadband development in

South Africa and other African countries.

To discuss this opportunity, contact

Ms Babalwa Mbobo, Sector Specialist,

Upington SEZ

Tel: +27 54 333 1136

Mobile: 071 016 5813

Email:

bmbobo@upington-sez.co.za

Mr E Ntoba, Dawid Kruiper Local Municipality

Tel: +27 54 338 5000

Email: entoba@dkm.gov.za

Project background

The investor is a fibre optic ICT broadband

organisation that specialises in infrastructure

services, facilitating all light infrastructure

needs for cloud computing and data centres.

It distributes passive fibre optic materials.

Key facts

Investment value: R228-million

Job creation: 169 jobs

Mr T Klassen, Department of Trade and

Industry

Tel: +27 12 394 1482

Finance

The project will be financed by the investor

with the government providing enabling

infrastructure.

Project status

The business case and feasibility studies

have been completed.

13

NORTHERN CAPE BUSINESS 2019/20


FOCUS

Kathu Industrial Park (KIP)

A catalyst for economic growth.

Targeted sectors

The KIP targets all economic sectors requiring

serviced industrial space in the region,

but with the major portion of the initial tenant

makeup (study phase) primarily serving the

established mining sector, by virtue of the

KIP’s central proximity to the Postmasburg-

Hotazel iron-ore/manganese belt. The KIP is

also well positioned to serve the emerging

REIPPPP sector in the region. In addition to

the ongoing development of business opportunities

within the tenant supply chains,

it will be the role of the KIP business incubator

to expand coverage of the KIP into

other sectors.

Study phase tenant engagement and

commitment to the project has been concluded

on a “first come, first served” basis

and has covered all possible prospective

tenants, regardless of size or level of development.

The KIP development caters for all

nature of tenant facilities, from large customised

facilities through to smaller, economically

efficient mini-factories.

Project location

Farm Sekgame, 461 Kuruman Road, Gamagara

Local Municipality, Kathu. GPS coordinates:

S27° 42’ 52.5” E23° 02’ 33.8”

Job creation

During development: 1 300 (direct), 805

(indirect) and 2 273 (induced).

During operations: 2 240 (direct), 3 137

(indirect) and 3 446 (induced).

Project description

The KIP development comprises the following:

• Central hub: This will comprise various

facilities and the associated infrastructure

network supporting KIP management

structures. The scope of facilities

is envisaged to include: central administration

offices; conferencing facilities;

an auditorium; a security office; a restaurant;

and other social facilities. These

are to be located in a hub within the park

in a centrally located single-level building,

with visitor parking and appropriate

landscaping.

• A central logistics facility.

• A Business Incubation Centre and

Training Centre.

• Customised warehouses and industrial

buildings and (standard specification)

mini-factories.

• Security fencing and lighting.

• Additional infrastructure envisaged for

the functionality of the KIP includes:

internal roads (tarred and paved), a

storm-water system and an internal

water reticulation system.

Project status

Feasibility Study, Project Development Plan,

Business Plan and Environmental Impact

Assessment Study completed. Currently in

the process of finalising KIP Shareholders

Agreement, with involvement in the project

currently secured from: IDC, Kumba, SIOC-

CDT, Assmang and with engagement still

underway with South32. Partnerships are in

place with the private sector, the Industrial

Development Corporation, provincial

government and local government.

NORTHERN CAPE BUSINESS 2019/20

14


FOCUS

Finance

KIP is a strategic Social Economic

Development (SED) project with extensive

short- and long-term benefits which also provides

a key point of integration supporting

the Northern Cape Share Value Initiative (a

strategic initiative recently launched by the

Northern Cape Mining Leadership Forum).

Government commitment: bulk

infrastructure contribution. ​

Private sector investment required: Phase

1 estimated R152-million (to crowd out

Project Summary

Industrial Development Corporation equity

1. Kathu Industrial Park

contribution).

Project Location

District:Gamagara Local Municipality

Physical address: Farm Sekgame, 461 Kuruman Road

Key facts

GPS Coordinates: S27° 42’ 52.5” E23° 02’ 33.8”

Project Name and background

City/Town: Kathu

Kathu Industrial Park. Sishen Iron Ore Company (Pty) Ltd (“SIOC”) and the Industrial Development

Investment Corporation (“IDC”) have funded value: various studies to R530-million assess the feasibility of developing an (Phase industrial 1

park to stimulate sustainable long-term economic development for the Northern Cape region. The

estimate)

envisaged development will attract all nature of tenants delivering industrial goods and services, to

an environment leveraging economy of scale from centralized facilities and complemented by a

business incubation and training complex. With the mining industry being the largest real economic

sector in the Northern Cape economy (based on contribution to GDP), the town of Kathu - located in

the Gamagara Local Municipality (“GLM”) - is the preferred location due to its central proximity to

the Postmasburg – Hotazel iron-ore/manganese belt and various established and pending REIPP

To discuss this opportunity, contact

Mr Stuart Dangerfield, Project Lead, Anglo

American

Tel: +27 11 679 2181 ​​​​​

Mobile: 083 455 2862

Email:

stuart.dangerfield@angloamerican.com ​

Mr Mehmood Ahmed, KIP Director

Tel: +27 53 807 1050 ​​​​​

Mobile: 078 801 4081

Email: Mehmooda@idc.co.za

Project background

Sishen Iron Ore Company (Pty) Ltd (SIOC)

and the Industrial Development Corporation

(IDC) have funded various studies to assess

the feasibility of developing an industrial park

to stimulate sustainable long-term economic

development for the Northern Cape region.

The envisaged development will attract varied

tenants delivering industrial goods and

services to an environment leveraging economies

of scale from centralised facilities and

complemented by a business incubation and

training complex.

With the mining industry being the largest

real economic sector in the Northern

Cape economy, the town of Kathu is the

preferred location due to its central proximity

to the Postmasburg-Hotazel iron-ore/

manganese belt and various established and

pending Renewable Energy Power Producer

Procurement Programme (REIPPPP) projects.

It is envisaged that the KIP serve as a

catalyst for accelerated growth of other economic

sectors. The feasibility study has not

only confirmed extensive interest from businesses

with a vested interest in the Northern

Cape region (ie potential tenants) but has

also confirmed the support of various key

stakeholders as well as the commitment of a

number of investors. There has been interest

from financial institutions.

This development, located on the R380,

is easily accessible from the N14 highway, a

major service route between Johannesburg,

the West Coast of South Africa and Botswana,

and the Kathu airport. The study process has

included an assessment of infrastructural

requirements and has confirmed integration

with Gamagara Local Municipality planning.

15 NORTHERN CAPE BUSINESS 2019/20


FOCUS

Aircraft Development

Aviation potential.

Project location

The project’s physical address is 24 Schroeder

Street, Upington, in the ZF Mgcawu District. The

GPS coordinates are: S28°25’51.96”; 21E°14’04.71”.

Project description

The investor intends to develop a new aircraft

and to initiate a bone-yard recycling operation

in Upington for other aircraft types.

Targeted sectors

Aeronautical.

To discuss this opportunity, contact

Ms Babalwa Mbobo, Sector Specialist.

Upington SEZ

Tel: +27 54 333 1136

Mobile: 071 016 5813

Email:

bmbobo@upington-sez.co.za

Mr E Ntoba, Dawid Kruiper Local Municipality

Tel: +27 54 338 5000

Email: entoba@dkm.gov.za

Mr T Klassen, Department of Trade and

Industry

Tel: +27 12 3941482

Finance

The project will be financed by the private

sector with the government providing

enabling infrastructure.

Project background

The investor is poised to initiate the

development of a local aircraft development

group with a specific focus on helicopter

manufacturing, bone-yard recycling

operations and a new training academy for

commercial pilots, technicians and engineers.

The aim is to manufacture a new-age aircraft

with lighter frames, a green end-to-end eco

system, with energy and fuel efficiency and

the ability to migrate to electric engines or

hybrid technologies.

Key facts

Investment value: R340-million

Job creation: 3 538 jobs

Project status

The business case and feasibility studies

have been completed.

NORTHERN CAPE BUSINESS 2019/20 16


Maintenance Repair

and Operations

Aviation park for MRO.

FOCUS

Project location

The project’s physical address is 24 Schroeder

Street, Upington, in the ZF Mgcawu District.

Targeted sectors

Aeronautics.

Project description

The investor intends to develop an aviation park

to accommodate Maintenance, Repairs and

Overhaul (MRO) of aircraft and research and

development. Activities will also include airline

storage, dismantling, scrapping, painting, and

internal refurbishment.

To discuss this opportunity, contact

Ms Babalwa Mbobo, Sector Specialist.

Upington SEZ

Tel: +27 54 333 1136

Mobile: 071 016 5813

Email: bmbobo@upington-sez.co.za

Mr E Ntoba, Dawid Kruiper Local Municipality

Tel: +27 54 338 5000

Email: entoba@dkm.gov.za

Mr T Klassen, Department of Trade and

Industry

Tel: +27 12 3941482

Finance

The project will be financed by the investor

with the government providing enabling

infrastructure. Partnerships will be pursued

with the private sector, provincial government,

local government and the Northern Cape

Development Agency.

Key facts

Investment value: R800-million

Job creation: 400 jobs

Project status

The business case and feasibility studies

have been completed.

17 NORTHERN CAPE BUSINESS 2019


FOCUS

Northern Cape Renewable Energy

Incubator

Renewable energy hub.

Project location

The incubator will be located within the town of

Upington in the ZF Mgcawu District.

Targeted sectors

Primary: renewable energy (utilities).

Secondary: manufacturing, construction,

transport, services, trade and ICT.

Investment value

Three options: R23-million, R240-million and

R500-million.

Project description

South Africa’s Renewable Energy Independent

Power Producer Procurement Programme

(REIPPPP) has been successful in attracting

billions of rands in investment. The Northern

Cape has been the leading solar power

province and intends to further leverage its

many advantages in this field. The renewable

energy sector has the potential to unlock

other sectors such as manufacturing and

construction. The Renewable Energy Incubator

will provide local SMMEs opportunities to

participate in the localisation programme.

To discuss this opportunity, contact

Ms Babalwa Mbobo, Sector Specialist,

Upington SEZ

Tel: +27 54 333 1136

Mobile: 071 016 5813

Email: bmbobo@upington-sez.co.za

Northern Cape Department of Economic

Development and Tourism

Mr Riaan Warie, Senior Manager

Tel: +27 53 830 4058

Mobile: 079 877 2828

Email: rwarie@ncpg.gov.za

Finance

Funding for top structure and three years of

operations through government incentives

and contributions from IPPs.

Key facts

Incubator staff jobs: 15-25

SMME jobs: 150-250

Construction jobs: about 500

Project status

Business plan and implementation plan

completed. Partnerships are envisaged

with national government departments (dti

and Small Business Development), provincial

government and IPPs.

NORTHERN CAPE BUSINESS 2019/20 18


Solar Farm

Solar energy for SEZ.

Project description

The main focus for the investor will be the

construction of a solar farm. There are

possibilities for other opportunities such as

the manufacture of solar panels and a silicon

smelter.

Targeted sectors

Renewable energy.

To discuss this opportunity, contact

Ms Babalwa Mbobo, Sector Specialist,

Upington SEZ

Tel: +27 54 333 1136

Mobile: 071 016 5813

Email: bmbobo@upington-sez.co.za

FOCUS

Project location

The project’s physical address is 24 Schroeder

Street, Upington in the ZF Mgcawu District in

Upington.

Project background

The investor intends to establish a solar farm

on 75ha of land to supply power to tenants of

the Upington Special Economic Zone (SEZ).

The anticipated power to be harnessed will be

23MW-50MW depending on the technology.

Mr E Ntoba, Dawid Kruiper Local Municipality

Tel: +27 54 338 5000

Email: entoba@dkm.gov.za

Mr T Klassen, Department of Trade and

Industry

Tel: +27 12 3941482

Northern Cape Department of Economic

Development and Tourism

Mr Riaan Warie, Senior Manager

Tel: +27 53 830 4058

Mobile: 079 877 2828

Email: rwarie@ncpg.gov.za

Finance

The project will be financed by the investor

with the government providing enabling

infrastructure.

Key facts

Investment value: R270-million

Job creation: 1 000 part-time and 30 fulltime

jobs

Project status

The business case and feasibility studies

have been completed. The Environmental

Impact Assessment and the Geotechnical

Study Investigation are complete.

19 NORTHERN CAPE BUSINESS 2019/20


FOCUS

Nyaniso

Healthcare

Latex condom manufacturing.

Project location

The project is situated at the old Colesberg

Hospital in the Pixley Ka Seme District in

Colesberg.

Targeted sectors

Medical and health sector.

To discuss this opportunity, contact

Mr Choaro Timothy, Project Promoter,

Nyaniso Healthcare (Pty) Ltd

Tel: 064 070 9534

Email: choaro.timothy@gmail.com

Northern Cape Department of Economic

Development and Tourism

Mr Riaan Warie, Senior Manager

Tel: +27 53 830 4058

Mobile: 079 877 2828

Email: rwarie@ncpg.gov.za

Project description

Nyaniso Healthcare will produce male latex

condoms using German technology from the

technical partner, CPR GmBH. The plant in

Colesberg will produce 60-million condoms

annually. The plan is also to later produce

latex gloves, and thus create meaningful

employment for the local community. The

condoms produced will be sold to government,

private markets and for export markets in Africa

and globally.

Project background

The project name is Nyaniso Healthcare

Male Latex Condoms & Latex Gloves

Manufacturing. The founder and CEO of

Nyaniso Healthcare first thought of starting

a condom manufacturing plant in 2007

when the country was producing only 5%

of the condoms used in South Africa. The

HIV/Aids pandemic and the high infection

rate influenced the decision to assist the

government in reducing the infection rate

and promoting safe sex among youth.

Key facts

Investment value: R150-million

Job creation: 100 direct jobs

Project status

The business case and feasibility studies

have been completed.

Finance

The project will be financed by private investor/s

with the government providing enabling infrastructure

and various incentives as part of the

project support. Partnerships will be pursued

with the private sector, provincial government

and local government.

NORTHERN CAPE BUSINESS 2019/20 20


Promethean

Waterfront

A tourism node for Barkly West.

Project location

The project is located on the banks of the Vaal

River in the town of Barkly West in the Dikgatlong

Local Municipality.

Project background

Barkly West has been earmarked for a

multifaceted development project with

the potential to bolster the local economy.

Promethean Property, a local investment

company, in conjunction with SIZA Architects

& Project Managers, has teamed up as

the developers of the project. Dikgatlong

Municipality will be engaged through the

multi-year lease for the land.

FOCUS

Project description

An entertainment resort that compromises:

waterpark; arcade games and fun rides; food

court; wave pool; chalets; upmarket selfcatering

riverside accommodation; people’s

park (outdoor events with permanent stage);

picnic/braai area; lifestyle centre; retail and

commercial outlets; regional mall; middleincome

housing; government subsidised

housing; residential estate; apartments; hotel

and conference centre; casino (depending on

legislation) and office park.

To discuss this opportunity, contact

Thabo Makweya, Director, Promethean

Property

Tel: +27 53 831 2336

Mobile: +27 81 337 8492

Email: makweyat@me.com

Richard Poulton, Project Director

Tel: +27 53 831 2336

Mobile: +27 81 446 5297

Email: richard@prometheangroup.co.za

Finance

The project is being developed in terms of

the Public-Private-Partnership Project Cycle

in terms of the Treasury Regulation 16 of

the Public Finance Management Act, Act

1 of 1999.

Targeted sectors

Tourism and heritage.

Key facts

Investment value: Overall R2.5-billion,

including bulk infrastructure. Phase 1

(Waterpark and chalets): R800-million

Job creation: 6 743 jobs

Project status

The project is at the start of the feasibility and

business case phase. A detailed feasibility

study will cost about R12-million.

21

NORTHERN CAPE BUSINESS 2019/20


FOCUS

Versa Chemicals

Paint and detergent manufacturing.

Project location

The project is situated in the Pixley Ka Seme

District Municipality in Kimberley.

Targeted sectors

Paint; protective

coatings; household

detergents; industrial

cleaning chemicals.

Project description

The paint plant will produce water-based and

solvent-based paints or coatings serving

various markets across South Africa and Sub-

Saharan Africa. The focus of the products will

be on architectural or decorative coatings and

on protective and industrial paints. The factory

will run three shifts, five days a week. Versa

has a partnership agreement with a leading

French road-marking paint manufacturer; SAR

France, to distribute their products and later

manufacture these products.

To discuss this opportunity, contact

Mr Choaro Timothy, Project Promoter,

Versa Chemicals (Pty) Ltd

Tel: 064 070 9534

Email: choaro.timothy@gmail.com

Northern Cape Department of Economic

Development and Tourism:

Mr Riaan Warie, Senior Manager​

Tel: +27 53 830 4058

Mobile: 079 877 2828​

Email: rwarie@ncpg.gov.za

Project background

The name of the project is Versa Chemicals,

Paint and Detergent Manufacturing. The idea

is to create a sustainable paint and chemicals

company that can compete with multinational

companies in the chemical sector.

Key facts

Investment value: R100-million

Job creation: 100 direct jobs

Finance

The project will be financed by a private

investor/s with the government providing

enabling infrastructure and various incentives.

Project status

The business case and feasibility studies

have been completed.

NORTHERN CAPE BUSINESS 2019/20 22


Upington SEZ

Agri-Hub

Agricultural processing and logistics.

Project location

The project’s physical address is 24 Schroeder

Street, Upington, in the ZF Mgcawu District. The

GPS coordinates are: S28°25’51.96”; E21°14’04.71”.

Targeted sectors

Agriculture.

FOCUS

Project description

The Agri-Hub will consist of various facilities:

Retail, Mechanisation, Packaging, Quality

Control, Agri-Processing, Training Centre,

Research and Development, Logistics and

Transport, Agricultural Inputs and Distribution,

Silos, Abattoir, Feedstock, Aquaculture and

Agri-Tourism and Greenhouse.

To discuss this opportunity, contact

Ms Babalwa Mbobo, Sector Specialist,

Upington SEZ

Tel: +27 54 333 1136

Mobile: 071 016 5813

Email: bmbobo@upington-sez.co.za

Mr E Ntoba, Dawid Kruiper Local Municipality

Tel: +27 54 338 5000

Email: entoba@dkm.gov.za

Mr T Klassen, Department of Trade and

Industry

Tel: +27 12 3941482

Finance

The main financing for the project will be

provided by the private sector. The SEZ and

municipality will provide incentives.

Investment value

Three options: R23-million, R240-million and

R500-million.

Key facts

Investment value: R570-million

Job creation: 1 200 jobs

Project status

The business case and feasibility studies

have been completed.

23

NORTHERN CAPE BUSINESS 2019/20


Key stakeholders

Transaction advisor

Technical consultants

Boegoebaai

Port, Rail and Infrastructure Development Project.

Project location

Boegoebaai is approximately 60km

north of Port Nolloth and 20km south

of othe border between Namibia and

South o Africa in the Richtersveld Local

o Services base for oil, gas and offshore mining

Municipality area.

Project background

The Reducing Northern cost Cape of moving Province cargo has the


volumes of commodities to warrant a

system

deep-sea Stimulating commercial regional socio-economic port, specifically

development

as a

Securing

result

a competitive

of mining

advantage

and agricultural

regionally for SA

ports

activities. The Boegoebaai site has

all the advantages for the potential

Volume

development of a deep-sea (mtpa) port,

namely: the 20-metre contour is 250m

offshore and it is a greenfield site owned

by the people of the Richtersveld, the

Community Property Association (CPA).

Key facts

Transnet, National Department of Transport, Department of Public Enterprises, Treasury

TM and Nelutha Consulting JV (TM)

PRDW, PSP Logistics, NAKO ILISO

Project status The project is in FEL2 phase. Finalisation of FEL2 is planned for December 2018.

CAPEX Port = ~R6 billion +/-40% accuracy. Rail = ~R9 billion +/-50%

Estimated jobs to be created

3 000 permanent and 18 000 indirect jobs

Project status PPP Feasibility study at FEL 2 level to be completed end of April 2019

PROJECT DESCRIPTION

A greenfield, deep water port. Two berths; one dry bulk export

berth and one break bulk berth supported by a rail line (550

kilometers). The port has the potential to accommodate

Capesize vessels.

Primary drivers for the development include:

Capitalizes on new economy, including:

o Iron ore from junior miners, creates a catalyst for

junior / development miners currently constrained

by high transportation costs and exclusion from

larger logistic solutions i.e. Sishen-Saldanha line

Provides a more efficient logistic manganese route

Strategically positioned to capitalize on gas fields

industry

o Potential of an Oil Refinery to be constructed close

to the port

Economic catalyst for the Northern Cape Province and

specifically the Richtersveld Community

Optimizing the cargo distribution within the SA port

PROJECT COMMODITY MIX

Commodity

Dry bulk – iron ore 5-10 New volume from junior miners

Dry bulk – manganese 2-5 Lower cost logistic solution

Dry bulk – lead and zinc 1-2 Closest port to mines

Comment

Break bulk 0.5 Multi-purpose commodities, agricultural, mining and low container volumes

FUNDING MODEL

Project description

Deep-water port development comprising two berths: one

dry bulk export berth and one breakbulk berth, supported

by a 550km railway line, bulk services and associated social

infrastructure.

Finance

The project is being developed in terms of the PPP Project

Cycle in terms of the Treasury Regulation 16 of the Public

Finance Management Act, 1999. The development of a

Northern Cape Provincial SEZ Establishment Framework will

Targeted sectors

Finance be used for a Special Economic Zone as economic growth

Exporting bulk commodities, breakbulk and development instrument to attract new local and foreign

The project is being developed in terms of the PPP Project Cycle in terms of the Treasury

and container staging. Oil refinery. Ship investment.

recycling.

Regulation 16 of the Public Finance Management Act, 1999. The development of a Northern

Cape Provincial SEZ Establishment Framework will be used for a Special Economic Zone as

economic growth and development instrument to attract new local and foreign investment.

Project status

Project status Finalisation of phase FEL2 is planned for 31 May 2019. Business

Investment value: Seaside: R4.2-billion. case and feasibility studies will be completed and submitted

Finalisation of phase FEL2 is planned for 31 May 2019. Business case and feasibility

Railway Boegoebaai: line from Upington Port, Rail & Infrastructure to Boegoebaai: Development studies will Project

be at completed end of the and May submitted 2019. at Several end of the relevant May 2019. studies Several relevant are available studies are

R12.6-billion. Project Location A total of 10 000 jobs are available for for potential investors investors study, to including study, a including transport investors a transport report investors and a port

expected to be created.

competitor analysis.

The Boegoebaai Port, Rail & Infrastructure Development Project is situated approximately 60km report north of and Port

a port competitor analysis.

Nolloth and 20km south of the border between Namibia and South Africa in the Richtersveld Local Municipality area.

The figure below shows the position of Boegoebaai.

Project contacts Person Tel Mobile email

Dept of Transport,

Safety and Liaison

Dept of Transport,

Safety and Liaison

National Dept of

Transport

Transnet Ports

Authority

TM Nelutha

Consultants

Mr MP Dichaba + 27 53 839 1743 082 675 1933 Lntobela@ncpg.gov.za

Mr P Mguza, Project +27 53 807 4812 079 694 3254

PMguza@ncpg.gov.za

Promoter

Mr Clement

Manyungwana

+27 12 309 3408 083 679 9662 manyungc@dot.gov.za

Mr H Nxumalo +27 31 361 8821 083 299 7966 Hamilton.nxumalo@transnet.net

Mr P Maneza +27 53 833 1010 082 889 3685 Info@manzholdings.co.za


De Aar Logistics Hub

PROJECT INFORMATION

Project

CAPEX


Project Estimated project description

De Aar Logistics Hub

The Estimated development Vehicle jobs Storage be created Yard. of a Logistics

Project

Hub

statusin

the

PROJECT

town

DESCRIPTION

of De Aar that will offer CAPEX the following


infrastructure to identified Estimated tenants: project

freight/products by small miners and farmers

• the following Container infrastructure Terminal to identified which tenants: will act

Northern Cape

as a Trans-Shipment Inland (Dry)

Revitalize the rail line to and from De Aar

Port Influence as well economic as development consolidation point

Ensure creation of jobs in the area.

for

Vehicle

freight

Storage Yard.


Further to the above, the Inland Dry Port will:

• Agricultural Warehouse and

Facilitate road to rail migration

Storage Facilities


Port(s) of Export

• Vehicle Storage Yard.

The objectives for the development

specifically Influence the economic Pixley ka Seme development

District Community

include but are not limited to:

Reducing Ensure the creation cost of moving of jobs cargo in the area.



Provide a sustainable transport

Stimulating regional socio-economic development

Further to the above, the Inland Dry Port will:

network for the transportation of

Facilitate road to rail migration

freight/products by small miners

to be a minimum and Port(s) farmers of R1.7 of Export billion.



• Provide relief from road-based

PROJECT COMMODITY MIX


freight Energy market transportation segment Volume in the

Commodity


(mtpa)

Northern Cape


Container Terminal

400 000

• Agricultural Revitalise Commodities

Reducing the cost rail of line 100 moving 000 to cargo and from

Break-Bulk

7 000



Vehicles De Aar



• Influence economic development


• Ensure creation of jobs in the area.

Project Sheet

21 June 2018

Centrally located hub will reduce costs.

Project Sheet

21 June 2018

Owner

Northern Cape Department of Transport, Safety and Liaison (NCDTSL)

Key stakeholders

Transnet, National Department of Transport, Department of Public Enterprises, National and Provincial

Treasury

Transaction PROJECT INFORMATION

advisor

TM and Nelutha Consulting JV (TM)

Technical Project consultants

PSP Logistics, De Aar Fasken, Logistics Aurecon Hub and NAKO ILISO

The project status is at Feasibility Study Stage. The next steps will be to conduct a Study Tour and Investors

Project Owner status

Northern Cape Department of Transport, Safety and Liaison Project (NCDTSL) Sheet

Roadshow. Issue an RFQ in November 2018

21 June 2018

CAPEX

Logistics

Transnet,

Hub = ~R2.5

National

billion

Department of Transport, Department of Public Enterprises, National and Provincial

Key stakeholders

Treasury

Estimated project

Financial close and award estimated to be in March 2020

development Transaction start advisor date

TM and Nelutha Consulting JV (TM)

PROJECT INFORMATION

Estimated Technical jobs consultants to be created 2 500 permanent PSP and 15 000 indirect jobs

Project Logistics, Fasken, Aurecon and De Aar NAKO Logistics ILISO Hub

Funding PROJECT model DESCRIPTION Public

The

Private

project

Partnership

status is

to

at

be

Feasibility

adopted.

Study

Multi-tiered

Stage.

sub

The

concessions

Project status

Owner

Northern Cape Department next of steps Transport, will be Safety to conduct and Liaison a Study (NCDTSL) Tour and Investors

The development of a Logistics Hub in the Roadshow. town of De Issue Aar that an will RFQ offer in November Transnet, 2018 National Department of Transport, Department of Public Enterprises, National and Provincial

the following infrastructure to identified tenants: Key stakeholders

Logistics Hub = ~R2.5 billion Treasury

Container Terminal which will act as a Trans- Shipment Inland

Transaction advisor

TM and Nelutha Consulting JV (TM)

(Dry) Port as well as consolidation point for Freight

Financial close and award estimated to be in March 2020

development Agricultural start Warehouse date and Storage Technical Facilities consultants

The project status is at Feasibility Study Stage. The next steps will be to conduct a Study Tour and Investors

2 500 permanent and 15 000 indirect jobs

The objectives for the development include but are not limited to:

Provide a sustainable transport network for the transportation

The development of a Logistics Hub in the town of De Aar that will offer

development start date

Provide relief from road-based freight Estimated transportation jobs to be in created the

Container Terminal which will act as a Trans- Shipment Inland

(Dry) Port as well as consolidation PROJECT point DESCRIPTION for Freight

Agricultural Warehouse and The Storage development Facilities of a Logistics Hub in the town of De Aar that will offer

the following infrastructure to identified tenants:

Container Terminal which will act as a Trans- Shipment Inland

(Dry) Port as well as consolidation point for Freight

The objectives for the development include but Agricultural are not Warehouse limited to: and Storage Facilities

Provide Provide a more a sustainable efficient logistics transport route for network manganese Vehicle for Storage the the transportation

Yard.

freight/products by small miners and farmers

Potential Provide of relief a Fuel, from Oil and road-based Gas storage The objectives

freight facility for the development include but are not limited to:

transportation in the

Serving Northern transport Cape and logistics needs of the Provide Renewable a sustainable transport network for the transportation

Energy market segment

freight/products by small miners and farmers

Revitalize the rail line to and from De Aar

Economic catalyst for the Northern Cape Province Provide and relief from road-based freight transportation in the

Northern Cape

Revitalize the rail line to and from De Aar

Optimizing the cargo distribution to the SA port Influence systemeconomic development

Ensure creation of jobs in the area.

The Inland

PSP Logistics,

Dry

Fasken,

Port

Aurecon

will:

and NAKO ILISO

• Facilitate road-to-rail migration

Roadshow. Issue an RFQ in November 2018

• Logistics Provide Hub = ~R2.5 a more billion efficient logistics route for manganese to

Financial the close Port(s) and award of Export estimated to be in March 2020

• 2 500 Potential permanent and of a 15 Fuel, 000 indirect Oil jobs and Gas storage facility

• Serving the transport and logistics needs of the Renewable

• Energy market segment

• Economic catalyst for the Northern Cape Province and

specifically the Pixley ka Seme District community

• Reducing the cost of moving cargo

• Optimising the cargo distribution to the SA port system

• Stimulating regional socio-economic development

• Securing a competitive advantage regionally for SA ports.

The envisaged impact on the economy in year one of operation

is estimated to be a minimum of R1.7-billion.

Securing a competitive advantage regionally for SA ports.

Further to the above, the Inland Dry Port will:

Provide a more efficient logistics route

The envisaged impact on the economy in Year 1 of Operation

Facilitate for manganese to the

is estimated

road to rail migration

Provide a more efficient logistics route for manganese to the

Potential of a Fuel, Oil and Gas storage Port(s) facility of Export

Potential of a Fuel, Oil and Gas storage facility

Serving the transport and logistics needs of the Renewable

Serving the transport and logistics needs of the Renewable

Energy market segment

Comment

Economic catalyst for the Northern Economic Cape Province catalyst and for the Northern Cape Province and

specifically the Pixley ka Seme District specifically Community the Pixley ka Seme District Community

Reducing the cost of moving cargo

Optimizing the cargo distribution to

Optimizing

the SA port

the

system

cargo distribution to the SA port system

8 500 Vehicles Stimulating per annum regional (Base socio-economic data: 2015) development

Stimulating regional socio-economic development

Securing a competitive advantage regionally for SA ports.

Securing a competitive advantage regionally for SA ports.

The envisaged impact on the economy in Year 1 of Operation is estimated

The envisaged impact on the economy to in be Year a minimum 1 of Operation of R1.7 billion. is estimated

to be a minimum of R1.7 billion.

PROJECT COMMODITY MIX

Volume

PROJECT COMMODITY MIX Commodity

(mtpa)

Volume Container Terminal

400 000

Commodity

Comment

(mtpa) Agricultural Commodities 100 000

Break-Bulk

7 000

Container Terminal

400 000

Vehicles

8 500 Vehicles per annum (Base data: 2015)

Agricultural Commodities 100 000

Break-Bulk

7 000

Vehicles

8 500 Vehicles per annum (Base data: 2015)

Comment

Contact details: Northern Cape Department of Transport, Safety and Liaison | Tel: +27 53 8391743 or +27 53 8391835

Email: mdichaba@ncpg.gov.za


SPECIAL FEATURE

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.

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

The Upington International Airport has a 5km-long

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 welldeveloped

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 world-class 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 and

Memorial Street, Kimberley 8301

Tel: +27 53 833 1503

Fax: +27 53 833 1390

Website: www.nceda.co.za

NORTHERN CAPE BUSINESS 2013 2019/20

26


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.

27

NORTHERN CAPE BUSINESS 2019/20


OVERVIEW

Tourism sector boom

Adventure tourism continues to grow and investors are sought for a

steam train revival.

Assets unique to the Northern Cape

include wonderful spring flower displays,

spectacular arid areas and brilliantly

clear night skies for star-gazers.

Heritage tourism is another important niche.

SteamNet 2000 and the Railway Museum at

Kimberley Station maintain and protect fascinating

rail assets. A Northern Cape Steam Rail

tourism route might be an attractive opportunity

for the right investor.

There are no fewer than six national parks

and five provincial reserves in the province, each

showing off distinct geographical and biological

features. Most of the province lies in the Nama-

Karoo Biome and the annual display of spring

flowers is spectacular.

The north-western portion of the province is

known as the Green Kalahari, much of which

is taken up by national parks. The Kgalagadi

Transfrontier Park (with Botswana) encompasses

3.7-million hectares, making it one of

the biggest conservation areas in the world.

The Kalahari Red Dune Route is a network of

guesthouses, reserves and farms to guide the

visitor to the great park. The rushing waters of

the Augrabies Falls National Park provide another

popular attraction.

The Kalahari in the north-east is home to

many of the province’s biggest mines, but also

to great numbers of raptors, vultures and owls.

A specialist raptor route has been developed.

Birders can look out for 50 species, including

the Booted Eagle, the Pygmy Falcon and the

Bateleur. Tours of the area’s vast open-cast

mining operations can be arranged.

A new route under development in the region

is the Heritage Route tracing the footprints of

the early missionaries to Southern Africa and

will include Kimberley and surrounds, Kuruman

and surrounds and the Robert Moffat Mission.

Hunting is a lucrative subsection of the

tourism sector that is proving extremely popular

in this region and brings valuable economic

development to these rural communities.

The Diamond Fields region contains the

spectacular Big Hole, the Mokala National

Park and portions of the famed South African

War or Battlefields Route. The Magersfontein

War Memorial is an iconic attraction on this

route where you can visit the graves, Burgher

NORTHERN CAPE BUSINESS 2019/20

28


SPECIAL FEATURE

the two major towns in this huge district, which is

also the only Northern Cape region with a coastline

and soon to be the home of a new small harbour.

The decision by UNESCO to inscribe the

Richtersveld Cultural and Botanical Landscape

as a World Heritage Site has great significance

for the tourism industry in the Northern Cape, and

for the prospects for ecotourism in general. This

160 000-hectare landscape lies on the border

between South Africa and Namibia. The park

achieved another a major international accolade

when it was included in the Rough Guide’s Top

10 for 2016.

Investment opportunities

monument and Boer trenches. The town of

Kimberley is itself an extremely popular attraction

and offers fine examples of Victorian

architecture and the world-class McGregor

Museum, Sol Plaatje Museum and the famed

William Humphrey Art Gallery.

The Karoo region encompasses the southeastern

portion of the province. While most of

the region is dry, the Vanderkloof Dam is a major

tourism asset. Many of the region’s small towns

are geared to cater to tourists drawn to the magic

of the Karoo’s open spaces and features famous

Karoo towns such as De Aar, Britstown,

Hanover, Victoria West and Carnarvon. The latter

is especially of importance as home to the

SKA. Other tourist attractions are the unique

Karoo architecture, South African War sites, rock

art, ancient Paleo surfaces, farm stays and the

famous Karoo lamb.

The Namakwa region is famous for its flowers,

but it also hosts the South African Astronomical

Observatory, several historic mission settlements,

the Namaqua National Park (on the

West Coast) and the awe-inspiring Richtersveld

Transfrontier Park. Springbok and Calvinia are

General opportunities for investors in the tourism

sector include:

• nature and game reserves

• adventure tourism

• ​upgrading of accommodation facilities

• ​new attractions and entertainment features

(theme parks)

• ​improve air transport networks.

Adventure sports at Kimberley: the possible

establishment of an adventure sports resort in the

Big Hole Precinct, Kimberley.

Steam train: reviving steam train tourism (“Gems

on Track” is the working title) could be done along

a variety of routes including routes out of Kimberley

to Belmont and from De Aar to Victoria West.

Eco-resort at Boesmansput: development of

a diver training facility would form part of the plan

at this popular fresh-water cave diving site. An

eco-lodge is envisaged and a conference facility.

Wildebeest Rock Art Centre: more than 400

pieces of rock art would form the cornerstone

(together with the nearby Nooitgedacht Glacial

Paving) of a world-class heritage and archaeological

site. Developments would include the creation

of a performance arena (for the depiction of San

Bushman culture) and facilities for game viewing

and photographic safaris.

29 NORTHERN CAPE BUSINESS 2019/20


nternational consortiums are using the latest photovoltaic and conentrated

solar power (CSP) methods. CSP has the benefit of being

ble to store energy.

The rise of the renewable energy sector has given the Northern Cape

chance to break its dependence on the mining sector, subject as it is

SPECIAL FEATURE

o global price fluctuations. The Provincial Government of the Northern

ape has plans to further diversify the economy. It has identified three key

lusters: mineral beneficiation; agri-processing; energy and technology.

The planned Special Economic Zone (linked to the Upington

nternational Airport) is intended as a site for solar-related manufacuring.

The Industrial Development Corporation has spent R11.4-billion exceeding 41 000 tons.

3 500 metres and carry a load

f its commitment Sol Plaatje to renewable University energy is reaching so far the for Northern stars Cape. as world’s The Northern biggest Cape produces

art of the telescope IDC’s role has project been to ramps take up up a 20% in the stake Northern in projects Cape. on more than 84% of South Africa’s

ehalf of local communities.

iron ore. Kumba Iron Ore is the

Education creating trains opportunity

sometimes extend beyond

One day in the future, a graduate of Kimberley’s Sol

Plaatje University will write her or his doctoral thesis on

some aspect of a far-away star yet to be discovered.

The information will come from the Square

NORTHERN Kilometre CAPE BUSINESS Array 2018/19 (SKA) Telescope, currently 8 under construction in

the Karoo. Unimaginable amounts of data are set to be collected

in this transformative radio telescope project that is centred on

Carnarvon but has global reach.

The data that the SKA will collect in a day would take twomillion

years to play back on an iPod. The radio telescope’s

image-resolution quality will exceed that of the Hubble Space

Telescope by a factor of 50.

The SKA will be the world’s largest radio telescope, made up

of thousands of antennae throughout Australia and Africa. SKA

will be tackling the big questions: What is dark matter? When did

life begin? How are galaxies created?

In March 2019, 15 countries involved in the SKA Project

gathered in Rome for the signing of the international treaty

establishing the intergovernmental organisation that will oversee

the delivery of the world’s largest radio telescope. This is the

Square Kilometre Array Observatory (SKAO), which is tasked with

delivering and operating the SKA.

the country’s landmass on the

dry western side of the country

bordering the Atlantic Ocean,

Namibia and Botswana.

The Sishen-Saldanha ore

export railway line is one of the

mechanical wonders of the world.

The line extends 860km and the

The Sol Plaatje Library and Resource Centre, an award-winning example of innovation and excellence. Architects:

designworkshop; construction: Murray and Dickson Construction; structural and civils design: Aurecon.

That inquisitive future

student will be a graduate of

the Data Sciences Programme

of Sol Plaatje University

(SPU), South Africa’s newest

tertiary institution. Having a

technological marvel such as

the SKA within the province will

boost scientific curiosity and

provide many opportunities

for researchers and academics.

At community level, an SPU

Knowledge Hub for Rural

Development is in the pipeline

for locals near the town of

Carnarvon.

The SPU’s first vicechancellor,

Dr Yunus Ballim,

holds a doctorate in civil

engineering and is rated by the

National Research Foundation.

The first intake of students at

the Kimberley campus in 2014

was 124. There are now more

than 1 000 students enrolled in

a range of degree and diploma

courses. Approximately 60%

of the students are enrolled in

teacher training courses.

The university has set itself

a goal of catering to specific

niches, such as heritage

studies. The McGregor

Museum in Kimberley is one of

the most respected museums

in the South Africa and heritage

tourism is seen as a growth

market, so university students

concentrating on this area will

NORTHERN CAPE BUSINESS 2019/20

30


SPECIAL FEATURE

have good support and good prospects. SPU’s first postgraduate

students will include students specialising in agricultural sciences

and a new course in Creative Writing in African Languages.

The academic programme is housed in four schools:

Education; Humanities; Natural and Applied Sciences; Economic

and Management Sciences. Bachelor’s degrees are offered in

education, science, science in data, commerce and arts. A diploma

in retail business management (three years) and a one-year higher

certificate in heritage studies completes the prospectus.

Another striking building,

designed by Savage + Dodd,

was “highly commended” at

the World Architecture Festival

in 2017 in the Higher Education

and Research category and won

“Best Use of Colour”. The multipurpose

building encompasses

a residence, offices, meeting

spaces and retail space on the

ground floor.

External and internal images

on this page show the details of

the design. The colourful, winddriven

louvres which act as

sun shading were designed by

Savage + Dodd Architects and

executed by RVI Architectural

Solutions. The project was a

finalist in the Southern African

Institute of Steel Construction

(SAISC) awards.

The key to education

More than one philosopher has noted the link between beautiful

surroundings and a good educational experience, so when the

decision to create a new university in Kimberley was made, it was

also decided that every effort would be made to build fine buildings

that would enhance the experience of lecturers and students.

A competition was held to choose the architects to work on

the new university. From a total of 59 entries, nine firms were

selected in 2013 to enter the second round of the competition.

Ultimately, five firms were chosen as winners, and they would

be tasked with completing work on the campus over the three

years to 2016: Activate Architecture; Savage + Dodd Architects;

designworkshop:sa; Comrie Wilkinson Cape and Urban Studio JV;

Wilkinson Architects in Joint Venture with Mashilo Lampbrechts

Architects and GXY Architects.

Sol Plaatje University Library and Student Resources Building,

designed by designworkshop: sa, won the 2017 Fulton Concrete

Awards for “Buildings Greater Than 3-Stories” (main picture). The

construction work was done by Murray and Dickson and Aurecon

provided structural, civil, electrical, fire and wet services design

for the project.

31 NORTHERN CAPE BUSINESS 2019/20


INTERVIEW

Developing local

intellectual capacity

Prof Yunus Ballim, Vice-Chancellor and Principal, Sol Plaatje

University, outlines the way forward.

Yunus Ballim

What are your goals as VC and Principal?

Our intentions in these early years has been to develop and consolidate a

good foundation in the essential areas to sustain a university in the long term:

• Academic activities: qualifications to be offered, research,

learning and teaching, academic staff

• Institutional capacity: governance structures and administrative

support arrangements

• Infrastructure: properly constructed buildings with sufficient

space to accommodate growth plans. We have also focused on

developing partnerships with social and government institutions

in the city and the province.

BIOGRAPHY

Yunus Ballim holds BSc,

MSc and PhD degrees in

civil engineering, a National

Research Foundation rating

and a personal professorship

in Civil Engineering at the

University of Witwatersrand.

At Wits he served as Head

of the School of Civil and

Environmental Engineering,

Deputy Vice-Chancellor

(Academic) and Vice-Principal.

He was awarded the Bram

Fisher-Oxford Fellowship in

2000 and has been Chair of

the Higher Education Quality

Council. Yunus chairs the

Transformation Strategy Group

of Universities South Africa.

NORTHERN CAPE BUSINESS 2019/20

What is it like to work in award-winning buildings?

We have worked hard to ensure we have structures and buildings that

are conducive to working and learning and this seems to have been

successful to date. Our idea of using our infrastructure development

project to also reflect the future ambitions of the city of Kimberley has

been well reflected in the architecture and artwork on our buildings,

giving a strong sense of place in Kimberley and the Northern Cape. It

is exciting to be in these buildings.

With the landmark passed of SPU’s first BEd graduates, what

lies ahead?

We also produced the first BSc, BA, BCom and BSc (Data Science)

graduates in 2018 as other important academic landmarks. The next

landmarks will be our first postgraduate students, particularly those

from our planned programme in Creative Writing in African Languages

and academic qualifications in agricultural sciences.

What links does SPU have with the SKA project?

Our Data Science programmes were specifically started to develop the

local intellectual capacity to contribute to the collection and analysis

of large data sets such as that to be generated at the SKA. Our

hope is that, when the SKA is fully functional in 2025, some of our

graduates will hold doctoral degrees and be contributing to the SKA

activities. Furthermore, we are in discussion with provincial government

to establish the SPU Knowledge Hub for Rural Development near

Carnarvon. This will bring a stronger community link to the general

scientific and knowledge development activities in the area.

32


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at stimulating growth

Kevin de Beer, Nedbank Provincial General Manager in the

Free Nedbank’s State and Regional Northern Manager Cape, of explains Small Business how Nedbank Services, Kim

works Lawrence, with explains communities how Nedbank to deliver is banking committed solutions. to partnering

with businesses for growth.

The initiative calls on everyone to make a conscious

decision to vote for small businesses through their

hearts, feet and wallets; not only on Small Business

Friday, but every day.

‘Small businesses are the mainstay of the

economy. Nedbank has, over the years,

instituted various interventions aimed at

giving support to the small-business sector.

Over and above our small-business services

solutions, we provide small-business owners

with support that goes beyond banking,

freeing up their time to truly focus on

running their businesses,’ says Lawrence.

Nedbank has built a solid reputation as a bank for

small businesses through initiatives such as

Small Business Friday, free small-business seminars

and the SimplyBiz.co.za platform – all geared

to support the small- and medium-sized enterprises

sector. For example, the Small Business Friday initiative,

in association with the National Small Business

Chamber, seeks to encourage everyone in South

Africa to rally behind and support small businesses.

Nedbank has recently launched its Business

Bundle, a game changer for small enterprises,

comparatively offering the best value for money

when set against rivals, with exclusive benefits

and personalised services for entrepreneurs. With

the country’s challenging economic environment,

the Nedbank Business Bundle not only offers you

personalised banking services, but also critical

tools to save – with up to 40% savings on monthly

banking fees, contributing directly to the bottom

line at a time when every cent counts.

In line with Nedbank’s new brand proposition ‘see

money differently’, the Business Bundle resonates

with the bank’s commitment to using expertise for

good in promoting small business enterprises.

SimplyBiz.co.za is a free-to-join value networking

portal designed especially for small businesses. The

online portal helps small businesses improve their

business administration skills, keep up with the latest

trends, network with other small businesses and

share ideas.

Should you wish to tap into our small business

expertise to help your business goals, why not get

in touch with Nedbank’s Small Business Services,

call Kim Lawrence +27 (0)51 400 5700 or send an

email to kiml@nedbank.co.za.


ADVERTORIAL

Nedbank’s new brand promise

ADVERTORIAL

focuses on client engagement that

will New create brand a proposition better understanding

encourages

clients to ‘see money differently’

Kevin de Beer, Nedbank Provincial General Manager in the

Free Lorraine State McAnda, and Northern Nedbank Cape, Free State explains and how Northern Nedbank Cape

works Regional with Manager, communities Business to Banking, deliver banking explains how solutions. the new

brand values build on the expertise of the bank to benefit clients.

almost two years of research and client

engagement that revealed that people want to

work with purpose-driven institutions they can

trust. They want a professional financial partner that

balances expertise with a genuine commitment to

do good.

The public will see a number of changes in the

next few months as the bank evolves its corporate

identity, advertising and communication campaigns,

as well as its products, services and channels. All

these changes are designed to inspire clients and

society to see money differently and partner with

the bank to achieve their goals.

Nedbank officially launched its new

brand repositioning during the first day

of the world’s largest design festival – the

2017 Design Indaba on March 1. The

bank’s new tagline challenges clients and

society to ‘see money differently’.

One of the solutions from Nedbank is

Whole-view Business Banking, which provides

a bird’s-eye view of clients’ businesses. It is aimed

at business owners who believe that they need the

best-of-breed of financial institutions.

The new brand positioning is built on Nedbank’s

purpose: to use financial expertise to enable

individuals, families, businesses and society to do

good. Our new brand proposition was born after

Our new brand proposition is not just a

marketing initiative but a reflection of the

continuing business evolution at Nedbank.

As a bank we want to ensure that our clients

experience our brand in a way that is aligned with

our brand promise.

It is common knowledge that we live in a volatile

socioeconomic environment, so it is even more

important for us to intensify our commitment to

improve on our skill in enabling clients to navigate

challenges and meet their goals.

If you would like to explore further how

Business Banking can help take your firm to the next

level, and for more information about Nedbank

Business Banking Services call Lorraine McAnda

on +27 (0)51 400 5745 or send an email to

LorraineMc@nedbank.co.za.

see money differently

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

services and registered credit provider (NCRCP16).

SPONGE 5556


CREDIT: VEDANTA ZINC INTERNATIONAL (VZI)

KEY SECTORS

Overviews of the main economic

sectors of the Northern Cape

Agriculture 340

Grapes and wine 38 44

Mining 42 48

Water 50 56

Tourism Renewable energy 52 58

Banking and financial services 58 60

Development finance

and SMME support 6061

The tower at Khi Solar One is one the tallest structures in South Africa.


Agriculture

Agri-processing is set to drive economic growth.

Compared to other types of manufacturing, agriprocessing

can be scaled up relatively quickly with

good financial rewards. It can also be labour-intensive.

As such, agri-processing is a key plank in the growth

plans of the Northern Cape.

Work has already been done in providing manufacturing facilities

for the speciality tea, rooibos, at Niewoudtville and investments

have been made in fisheries and new vineyard development for

groups of people who previously had not had exposure to the

grape and wine sector.

The Northern Cape Department of Agriculture, Land Reform and

Rural Development (DALRRD) was behind the rooibos tea factory,

which now trades as Bokkeveld Rooibos. The factory takes tea

from 85 local farmers with the goal of helping to integrate these

farmers into the agricultural and agri-processing business chain.

Two particular areas of interest to assist small-scale farmers

are being explored with regard to hemp and crops that can

produce liquor. The dry interior of the Northern Cape is suitable

SECTOR INSIGHT

Hemp and liquor hold enormous

potential.

• A commercial goat kid

project has expanded into

Namibia.

for the growing of Agave that

provides the source material

for tequila and there are

several other opportunities.

The rapidly changing legislative

environment for hemp and

marijuana holds potential in

textiles and medicine.

NORTHERN CAPE BUSINESS 2019/20

40


OVERVIEW

Long-term thinking underpins the adoption by the

provincial government of the Northern Cape Climate Change

Adaptation Response Strategy. This allows for a framework

to tackle drought and other climate change issues.

Occupying 36-million hectares, the Northern Cape is the

largest province in the country, almost a third of South Africa’s

total land area. Although the province is a predominantly

semi-arid region, agriculture is a major component of the

economy of the regional economy and the province’s farmers

contribute 6.8% to South African agriculture.

The agricultural sector also plays a vital role in the broader

economy of the Northern Cape, employing as it does about

45 000 people. This represents about 16% of employment,

a much higher figure than the national figure of 5.5%.

Agricultural development takes place along defined

corridors within the province:

In the Orange River Valley, especially at Upington, Kakamas

and Keimoes, grapes and fruit are cultivated intensively. Highvalue

horticultural products such as table grapes, sultanas

and wine grapes, dates, nuts, cotton, fodder and cereal crops

are grown along the Orange River.

Wheat, fruit, groundnuts, maize and cotton are grown in

the Vaalharts Irrigation Scheme in the vicinity of Hartswater

and Jan Kempdorp. The Vaalharts Irrigation Scheme is one

of the biggest systems of its kind in the world. Ranging 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.

Vegetables and cereal crops are farmed at the confluence

of the Vaal River and the Orange River in the vicinity of

Douglas. Of the nearly 40-million 10kg bags of onions

produced in South Africa (outside of linked production chains

set up by supermarkets), about 10-million 10kg bags come

from the Northern Cape.

Wool, mohair, karakul, Karoo lamb, venison, ostrich meat

and leather are farmed throughout most of the province. The

province is second only to the Eastern Cape in terms of the

number of sheep farmed and it is the fourth-largest woolproducing

province based on annual sale of producer lots.

The Beefmaster abattoir in Kimberley is one of three abattoirs

in South Africa to export frozen beef to China. The company

processes and packages about 30 000 tons at the abattoir.

The karakul-pelt industry is one of the most important

in the Gordonia district of Upington. Agri-company KLK

is the only organisation that handles these pelts in South

Africa, which are sorted in Windhoek before being sent to

Copenhagen for auction.

Companies

KLK is based in Upington and

does much more than karakul

pelts. The company’s interests

include 19 retail outlets, 12

petrol stations, four Build it

franchises and a strong auction

division.

KLK runs three abattoirs

in Calvinia, Carnarvon and

Upington that slaughter lamb

and beef carcasses. SA Dorper

manages the production and

export of dorper skins and the

production of cattle hides.

GWK is another company

with its headquarters in the

Northern Cape, in this case

the town of Douglas. In 2016

GWK invested R400-million in

a wheat mill, pasta plant and

biscuit factory in Modder River.

GWK Farm Foods’ new plant

has a capacity of 25t/h for

wheat flour, 1.3t/h for biscuits

and 1t/h for pasta. R60-million

was spent on increasing silo

capacity to feed the plant. The

company reported turnover in

2016 of R8.3-billion.

Senwes is one of the

country’s biggest agricompanies

and its Northern

Cape area of operation is

mostly around the Vaalharts

irrigation area, which is fairly

close to the headquarters just

over the provincial border in

North West, at Klerksdorp.

Storage and handling of grains

and oilseeds are the speciality

of Senwes.

OVK controls the large

Gariep abattoir at Strydenburg,

which has a daily capacity of

41

NORTHERN CAPE BUSINESS 2019/20


OVERVIEW

1 300 sheep, 100 cattle and either 250 ostriches or 750 small

game animals. OVK also has trade branches, vehicle dealerships,

a finance division and manufacturing facilities for maize meal and

wheat meal.

Kaap Agri is a Western Cape company with a presence in the

Northern Cape and Namibia.

Rooibos tea

Health trends around the world are helping the sales of rooibos

tea, most of which is farmed and processed in the Western Cape

and Northern Cape provinces.

Recent studies proving that rooibos tea increases antioxidant

capacity in human blood are further proof of the beverage’s

healthy qualities. The unique climate and soil of the western part

of the province support this niche crop. About 6 000 tons of tea

is exported to more than 30 countries and domestic consumption

is about 8 000 tons.

In several coffee shops in London, Red Espresso has replaced

the traditional double-shot of pure coffee, and a more recent use

of the tea is to spruce up cocktails. The Rooibos Council states

that more than 5 000 people are employed in the rooibos industry.

Only the leaves of the Aspalathus linearis (a legume that is

part of the fynbos family) are used in making rooibos (Afrikaans

for “red bush”). Harvested while still green, the leaves are left to

dry and ferment in the sun after being cut up. Naturally high in

a range of vitamins and potassium, zinc and iron, its low tannin

content makes it an excellent alternative as a hot drink. Fair Cape

Dairies has a product called Rooiboost.

Plans

Consulting firm Aurecon was involved in doing a feasibility study

and compiling a business plan for the rehabilitation and upgrading

of the irrigation scheme and agribusiness development in the

Vaalharts and Taung areas, a

major concern of the DALRRD.

The aim is to anchor the project

in Ganspan. Another goal is

to establish black pecan nut

farmers in the area.

Another new area where the

DALRRD is involved is in issuing

permits and licences for trout

production at the Vanderkloof

Dam. This aims to create new

stream of food production,

reduce anxiety related to food

security and create jobs.

Other priority projects to

support the rollout of agriprocessing

include:

• Namaqua irrigation

development

• Rooibos development

• Vanderkloof fisheries

• Vaalharts revitalisation

• Vineyard development

scheme.

The Agri-parks initiative is

designed to promote inclusivity

in agriculture and to grow

agri-processing, particularly

closer to where farmers farm.

The concept brings together

farmers, traders and agriprocessors

(such as abattoirs)

in convenient sites within each

district municipality. Within

these parks, support for rural

smallholders will be available

in terms of equipment hire

from a central source, storage

facilities, packaging of produce

and getting products to market.

The Agri-park intends to

provide a network for farmers

and manufacturers. There will

also be training available.

The provincial department

has a programme to place

NORTHERN CAPE BUSINESS 2019/20

42


unemployed agricultural graduates at land-reform farms in the

province to make sure that the farms are run well, at the same

time giving the graduates hands-on experience.

The commercialisation of the goat project which has been

running in the Northern Cape for some time has been expanded

into Namibia. Emerging farmers in Namibia are being exposed

to the benefits of the programme.

Aquaculture and mariculture

The Northern Cape’s 313km-long coastline means that the

province is well placed to take advantage of growing global

demand for abalone.

The aquaculture consultancy Sustainable Environmental

Aquaculture Services (SEAS) helped create an abalone farm at

Kleinzee which will produce 200 tons of product per year when

it is at full capacity. The Western Cape company Tuna Marine

is contracted to buy abalone from the Kleinzee facility, which

is owned by Ponahalo Holdings (the empowerment partners of

De Beers Consolidated Mining South Africa).

With food security an important consideration, the provincial

government has committed to supporting small-scale fishers.

Forty farmers have signed up for a Catfish Project in the Vaalharts

area. The scheme lies in the Phokwane Local Muncipality, north of

Kimberley, which falls under the Frances Baard District Municipality.

A joint venture by the National Department of Science and

Technology (DST) and HIK Abalone is running an abalone project in

Hondeklip Bay with the intention of producing 120 tons of abalone

for sale. This seaside town is very well known for its kelp. The

coastline of the Northern Cape has 2 000 hectares of kelp beds.

There is a growing domestic and international demand for kelp.

The old John Ovenstone factory in Port Nolloth is now the site

of small-scale hatcheries for abalone and oysters. Premier Fishing

has a lobster-processing plant in Port Nolloth.

ONLINE RESOURCES

Agri SA: www.agrisa.co.za

Northern Cape Department of Agriculture, Land Reform and Rural

Development: www.agrinc.gov.za

Northern Cape Economic Development Trade and Investment

Promotion Agency: www.nceda.co.za

Niewoudtville: www.niewoudtville.com

Rooibos Council: www.sarooibos.co.za

South African Pecan Nut Producers Association:

www.sappa.za.org

Nuts

OVERVIEW

Nuts-in-shell pecan nuts are

popular in China. South African

producers are able to supply

fresh nuts for the Chinese New

Year when demand for the

snack is high.

Some analysts believe

that the Northern Cape could

become a global centre

for pecan nut production.

Figures released by the South

African Pecan Nut Producers

Association (SAPPA) suggest

that huge increases in

production and the extent of

land planted to nuts is already

underway.

Production of pecan nuts

grew from 5 000 tons in 2010

to 10 500 tons in 2015, and

the figure continues to rise as

world markets react positively

to the South African product.

At one time it was thought that

pecan nuts were better suited

to tropical and subtropical

climates, but the consensus is

now that the Northern Cape is

ideal for the cultivation of the

versatile and healthy nut.

Hot summers and short,

cold winters are perfect,

together with the dry air which

has made areas like Prieska,

Upington, the Orania district

and the Vaalharts area the

site of many new groves.

SAPPA says that 90% of the

new plantings in South Africa

are happening in the drier,

western parts of the country.

Farmers have to be patient

because the nut takes a long

time to grow.

43 NORTHERN CAPE BUSINESS 2019/20


OVERVIEW

Grapes and wine

Record harvests are being recorded.

The Orange River region produced a record grape harvest

in 2016/17, going above 20-million 4.5kg equivalent cartons

for the first time. Despite what were described as ideal

conditions, berry sizes were smaller in the 2017/18 season

and production was down by 7%. However, with new, more hardy

varietals being developed and planted, the outlook for the grape

industry in the Northern Cape is good.

A variety of seedless grapes dominate plantings, with Thompson

Seedless, Prime, Sugraone, Grapaes and Crispy Flame Seedless

among the most popular. The South African Table Grape Industry

(SATI) reports that the Orange River region has 1 975 permanent

employees and 16 926 seasonal employees.

If ambitious plans to create a Special Economic Zone at Upington

come to fruition, the grape, raisin and wine traders of the Northern

Cape could be among the beneficiaries, providing logistical support

for getting their products to international markets more rapidly than

is currently the case.

On a provincial level, there are plans to add 40 000 tons of

grapes for wine, juice and raisins to the Northern Cape’s capacity.

A draft six-year plan has been developed for the Northern Cape

Vineyard Development Scheme which will be implemented by the

Northern Cape Department of Agriculture, Land Reform and Rural

Development (DALRRD), the National Agricultural Marketing Council,

the Land Bank, Distell, Winetech and Orange River Wine Cellars.

Almost a third of South Africa’s table grape crop is produced

in the fertile Orange River region of the Northern Cape. The South

African table grape industry has been investing in some new

varietals which produce a better yield.

Seventy percent of the Sultana grapes grown in the Lower

Orange River Region are used for vine-fruit products. There are

1 250 Sultana grape growers in the province, producing three

SECTOR INSIGHT

A Special Economic Zone could

boost exports.

Sultana-type grapes which rank

among the best in the world: the

Sultana Clone H5, a new hybrid

called Merbein Seedless, which

has proved resistant to splitting

after rain, and the most popular

type, the 143B.

The following vine-fruit

products are produced in

the Northern Cape: Sundried

Thompson Seedless Raisins;

Dipped Orange River Sultanas;

Golden Sultanas; Muscat

Raisins; and Monuca Raisins.

An example of successful

Sultana-grape production in

the province is SAD Vine Fruit

(Pty) Ltd, which owns the largest

dried-vine fruit processing

and packaging plant in South

Africa. The Upington-based firm

employs more than 350 people

when in full production. As

much as 80% of vine fruit grown

in South Africa is exported,

primarily to Europe.

NORTHERN CAPE BUSINESS 2019/20

44


OVERVIEW

Diversified agri-company KLK recently purchased a half share

in Carpe Diem Raisins, an exporter of high-quality raisins. The

raisin factory has a production capacity of 12 000 tons and the

company packages and sells about 22% of South African raisin

production. All of the products in the Carpe Diem Group, including

table grapes and pecan nuts, are certified organic. With about

135ha under production, the farm lies 10km east of Upington.

Wine

According to SA Wine Industry Statistics, the Orange River region

has about 5% of the total hectares under wine grapes in South

Africa, and just over 3% of the total number of vines. New vineyards

are being planted.

Warm to hot conditions, coupled with the nutrient-rich land on

the banks of the Orange River and sharply contrasting temperatures

at times, combine to produce consistently excellent wines. Average

annual rainfall in the area is 150mm, but the eastern part of the

region from Kanoneiland to Groblershoop have been receiving

more than their due in recent seasons.

The Northern Cape’s Orange River wine region accounts for

25.6% of South Africa’s Colombard vines and 10% of Chenin

Blanc. The focus is on Colombard and Hanepoot grapes.

Orange River Wine Cellars (ORC) is a large co-operative

with six wineries. Grapes are collected from 749 farmers. OWC

has a winery at its head office in Upington and at Keimoes,

Groblershoop, Kakamas and Grootdrink.

ONLINE RESOURCES

Northern Cape Department of Agriculture, Land Reform and Rural

Development: www.agrinc.gov.za

Orange River Wine Cellars: www.orangeriverwines.com

SA Wine Industry Information & Systems: www.sawis.co.za

South African Table Grape Industry: www.satgi.co.za

South African Wine and Brandy Company: www.sawb.co.za

Orange River Concentrate

Producers (part of the ORC

group) produces about 7.5-million

litres of white grape juice

concentrate, a percentage of

which is exported to Japan where

the Itochu Corporation uses it in

soft drinks and food.

ORC supplies wine to Tops

at Spar which has more than

700 stores across the country

and makes Tops’ private label

“Carnival”. ORC has also been

selling wine in China, the USA

and Europe for a number of

years through its Norweco

division. Unique labelling aims

to capture local markets, so ORC

wines are called “Star Tree” in the

US and “Goddess” in Denmark.

The Douglas Wine Cellar

produces about 6 000 cases

per year. Together with the

Landzicht cellar (just over the

border in the Free State), the

Douglas Wine Cellars is a GWK

company. The Douglas cellar

crushes 7 000 tons of grapes

every year and produces

5.6-million litres of wine.

Hartswater Wine Cellar is a

part of the region’s other big

agricultural company, Senwes.

Two wine brands (Overvaal and

Elements) are produced in the

Hartswater irrigation area north

of Kimberley.

45 NORTHERN CAPE BUSINESS 2019/20


PROFILE

South African Table

Grape Industry

South Africa: Preferred Country of Origin for the world’s best-tasting grapes.

jobs. Several downstream industries

are also supported. The harvesting

of table grapes in this region takes

place from about early November

until early February.

SATI represents growers in key government and industry initiatives

aimed at creating more opportunities in the sector, from ownership

to accessing new markets in a sustainable way.

SATI assists growers with crucial industry information, transformation,

statistics, research, technology and technical transfer as well as

training and education with the aim of establishing South Africa as

the Preferred Country of Origin for the world’s best-tasting grapes.

There are five major table grape-growing regions in South Africa.

The difference in soil and climate enables growers to supply the markets

from November to May. The early season is dominated by varieties from

the Northern Provinces and the valleys of the Orange and Olifants River.

The Northern Cape has one of the biggest table grape-growing

regions, known as the Orange River region, represented by the Orange

River Producer Alliance (ORPA), chaired by Willie du Plessis. This table

grape region, with more than 5 688 hectares of vines planted, stretches

from Upington to Kakamas, Augrabies and Blouputs. The table grape

industry is a key industry in the Northern Province, contributing to direct

employment in the order of 1 415 permanent and 12 415 seasonal

CONTACT INFO

Manager: Communications: Clayton Swart

Email: clayton@satgi.co.za

Chairperson ORPA: Willie du Plessis

Email: willie@omdraai.co.za

Physical address: 63 Main Street, Paarl 7624

Tel: +27 21 863 0366 | Fax: +27 21 863 3039

Email: info@satgi.co.za

Website: www.satgi.co.za

Mission

SATI delivers service excellence to

create a progressive, equitable and

sustainable industry.

Vision

South Africa is the Preferred Country

of Origin for table grapes and will

provide every table grape producer

as wide a choice as possible with

profitable markets.

SATI’s key areas of

intervention

• Technical market access

• Research and technology transfer

• Information and knowledge

management

• Transformation

• Communication and stakeholder

engagement

• Human capacity and skills

development

• Technical support.

These interventions are aimed at

assisting producers to Gain, Retain

and Optimise (GRO) market access.

NORTHERN CAPE BUSINESS 2019/20

46


OVERVIEW

Mining

A huge zinc project near Pofadder could lead to the Northern Cape

acquiring a smelter and a refinery.

When phase three is reached, the biggest new

mining project in South Africa will deliver

600 000 tons of zinc for Vedanta Zinc

International.

Located about 60km from the small Northern Cape

town of Pofadder, the Gamsberg zinc project (pictured)

has so far attracted $400-million in investment from the

company and started trucking product to the Port of

Saldanha in 2018. Phase one of the open-pit operation

will deliver an annual load of 250 000 tons of zinc. If it

proceeds to phase three, it would likely go underground.

Anil Agarwal, chairman of Vedanta Resources Limited,

was quoted by the Sunday Times in 2019 saying that

another $400-million might well be committed by the

company as it strives to ramp up production volumes.

South African President Cyril Ramaphosa, a former

mine union official, was the guest of honour when the

Gamsberg project was officially opened. He made a plea

for South Africa to create more value from its mineral

products. He said, “We must therefore move away from

the ‘pit to port approach’ where resources mined here

are transported out of the country as raw as they are from

along the Sishen-Saldanha route.”

Ramaphosa was referring to the 861km railway line

that carries iron ore from the northern parts of the

Northern Cape Province to the Port of Saldanha on the

west coast. The line has a capacity of 60-million tonsper-year

but a truck colliding with a bridge in November

2018 led to the closure of the line and reduced capacity.

The line was quickly repaired in record time and services

returned to normal.

The president’s wishes might well be answered by

Vedanta who have expressed an interest in building a

refinery and a smelter. The fact that South Africa’s power

grid has been experiencing shutdowns is less of a problem

when one considers that Vedanta is the world’s largest

single independent power producer. In India it uses coal

SECTOR INSIGHT

Ekapa Mining paid R300-million to

buy out Petra Diamonds from a JV.

• Assmang will spend R2.7-billion at

its Gloria manganese mine.

and renewable resources to generate

10 000MW.

At the same time, the Northern Cape

Province is continuing with planning

towards developing a deep harbour at

Boegoebaai. Part of the strategy involves

the creation of a commodities corridor

linking the Upington Special Economic

Zone (SEZ) with the port. The Gamsberg

Mine and related industrial investment

along the corridor would increase the

sustainability of the project.

Ramaphosa made specific pledges

from government’s side to fast-track

development around the zinc project.

He announced the establishment of an

intergovernmental task team led by the

Department of Trade and Industry to

explore the possibility of establishing

a Special Economic Zone to unlock

further investment in sulphuric acid

and fertiliser. The aim is to develop

infrastructure, accelerate skills

development and empowerment, and

consolidate economic development in

the Northern Cape.

The president praised Vedanta

for spending R44-million on skills

development, health, enterprise

development and municipal

NORTHERN CAPE BUSINESS 2019/20

48


infrastructure support in 2018 with a further R77.5-million spent

on local businesses. Ramaphosa also noted the significance of

the Gamsberg Mine being considered one of the most digitally

advanced mines in South Africa.

Other news in the zinc sector is that Australian miner Orion

is putting considerable resources into investigating the possible

revival of the Prieska Zinc-Copper Project. A maiden mineral

resource estimate was published in February 2018 and 14 drill

rigs are at work looking into the site’s prospects.

Small-scale mining has been problematic in recent years. It is

hoped that the recent issuing of small-scale mining permits will

allow individuals access mineral resources in a way that reduces

risk. The Office of the Premier, in partnership with the National

Department of Mineral Resources, has held a workshop for artisanal

mine workers on how to conduct legal mining operations. The

Swedish International Housing Company is another partner in

identifying possible land on which artisanal miners can legally start

sustainable mining operations. Land owned by municipalities at

Prieska, Niekerkshoop, Marydale and Griekwastad is the focus

of these initiatives.

The National Youth Development Agency (NYDA), the provincial

government and Mintek are collaborating on the Prieska Loxion

Hub (PLH), which beneficiates tiger’s eye for jewellery and stonecutting

products.

Mining sector employment rose somewhat in 2017/18, reaching

a total of 27 000.

Mining assets in the Northern Cape

• 95% of South Africa’s diamond output

• 97.6% of alluvial diamond mining

• 13.4% of world lead exports

• 80% of the world’s manganese resource

• 25% of the manganese used in the world

• 100% of South Africa’s tiger’s eye

• largest national production of sugilite (a semi-precious

stone).

Rare earth elements

Rare earth elements (REE) are a very modern mineral, in that large

parts of the modern economy rely on them. Super-conductors,

X-ray machines, nuclear batteries and PET-scan detectors are

just some of the technologies that rely on rare earth elements

such as promethium, thulium and holmium. China controls

95% of the world’s supply of REEs and the search is on for

OVERVIEW

alternative sources. Two sites

in western South Africa have

attracted investors attention:

Zandkopsdrift (Northern Cape)

and, close by but in the adjoining

province of the Western Cape,

Steenkampskraal.

Diamonds

Another change took place in the

diamond ownership environment

in 2018 when Ekapa Mining paid

R300-million to buy out Petra

Diamonds from its Kimberley

Ekapa Mining Joint Venture (KEM

JV). Petra held 75.9% of the old

De Beers assets that include

Kimberley Underground Mines,

various dumps around the town

and underground resources

at Bultfontein, Dutoitspan and

Wesselton. Ekapa’s plans to keep

the mines and tailings in profit entail

the use of modern technology.

This includes an automated pan

plant in support of an upgraded

Combined Treatment Plant.

Rockwell Diamonds, which is

listed on the TSX and JSE, has

several assets in the Northern

Cape. They lie between Prieska

and Douglas, south-west

of Kimberley: Wouterspan,

Nieuwejaarskraal, Remhoogte

and Saxendrift.

Away from the underground

kimberlite pipes and fissures,

river and coastal deposits

are also present. Diamonds

have been recovered along

the Orange, Buffels, Spoeg,

Horees, Doom and Swart rivers

in the province, while coastal

deposits have been found from

the mouth of the Orange River

to Lamberts Bay.

49 NORTHERN CAPE BUSINESS 2019/20


OVERVIEW

In 2018, Trans Hex sold two mines to LOR Diamonds, a blackowned

company led by women, but will continue to mine the

property as an independent contractor.

The Kimberley International Diamond and Jewellery Academy

continues to provide training with a total of 406 graduates having

so far passed through the academy. In a recent development, De

Beers Sightholder Sales South Africa awarded KIDJA an amount

of R500 000 for bursary students. Ten diamond processing

bursaries will also be supported by Alexkor for local Richtersveld

communities.

Quartz

Quartz is used in the manufacture of semiconductors, fibre-optic

cables and ceramics. Fused quartz improves the efficiency of solar

powered devices and quartz glass is used in the manufacture of

photovoltaic cell manufacturing. Positive tests have been done

at Riemvasmaak where the silica content is 99.98% in some

places. Difeme, a black start-up, will mine the quartz with technical

help from Mintek. Investors are sought for the development of

processing and beneficiation plant for high-purity quartz.

Iron ore and manganese

In 2019, Sitatunga Resources purchased the East Manganese

project on the Hotazel-Kalahari ore belt from Southern Ambition.

Menar Holdings, which controls a majority share in Sitatunga, is

mostly invested in coal.

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, which had been in

business rescue. The Diro mine has proven run-of-mine reserves

of 10-million tons.

The overwhelming majority of the world’s manganese comes from

the Postmasburg and Kalahari regions of the Northern Cape. Assmang

has two manganese mines in the province: Nchwaning and Gloria.

ONLINE RESOURCES

Minerals Council of South Africa: www.mineralscouncil.org.za

Mining Qualifications Authority: www.mqa.org.za

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

Northern Cape Department of Economic Development and

Tourism: www.economic.ncape.gov.za

South African Mining Development Association:

www.samda.co.za

NORTHERN CAPE BUSINESS 2019/20

50

The Northern Cape

produces more than 84% of

South Africa’s iron ore. The

province has two major iron

belts, from Postmasburg to

Hotazel, and running through

Sishen and Kathu. Sishen is

the most important iron-ore

mine in South Africa, where

operations include extraction

and four beneficiation plants.

The availability of natural

resources, labour and

infrastructure (including the

Sishen-Saldanha railway

line), make Sishen the ideal

location.

Kumba Iron Ore has the

huge Sishen facility at Kathu

and Kolomela. Assmang,

a joint venture comprising

African Rainbow Minerals and

Assore, mines at Khumani.

The company will spend

R2.7-billion on upgrading its

Gloria mine.

South32 is very active

in the Northern Cape. The

Hotazel Manganese Mines

is made up of two mines,

Wessels (underground) and

Mamatwan (open cut), and

the Metalloys manganese

smelter. The company has

30% of the product from

its mines processed at the

smelter where a managese

alloy is made.

Hotazel is also 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 (led

by Brian Gilbertson) and a

black empowerment company

representing several groups

called Ntsimbintle Mining.


Working smart to

unlock more value

INTERVIEW

Deshnee Naidoo, CEO Vedanta Zinc International (VZI),

expands on plans for the company’s new Gamsberg Mine.

Deshnee Naidoo

How is Gamsberg Mine digitally advanced?

For VZI, the digital transformation is not something that is planned in years

to come, but one that is taking shape today. The next wave will be in the

integration of systems to enable our teams to make data-driven decisions

to find efficiencies, improve planning, lower risk, create safer working

environments and unlock more value from our resources.

When do you expect to be operating at full capacity?

Gamsberg Phase 1 has a Life of Mine of 13 years. Four-million tons a year

of ore will be produced from Gamsberg’s open pit and 250 000t/y of concentrate

from its concentrator plant. By March 2019, we achieved a mining

rate of over five-million tons of ore and waste combined. Concentrate

volumes are in the process of ramp-up as the Gamsberg plant reaches

full steady state by mid-2019.

BIOGRAPHY

After a 20-year career at Anglo

American in various roles,

including CFO of Anglo Thermal

Coal, Deshnee Naidoo was

appointed CEO of Vedanta

Zinc International in 2014. Her

responsibility covers operations

in South Africa and Namibia,

the now closed Lisheen Mine

in Ireland and Copper Mines of

Tasmania in Australia. In May

2018, Deshnee was appointed

to the board of the Minerals

Council of South Africa, a first

for a woman in South African

mining.

Do you have plans to build a smelter and a refinery?

In parallel with the Phase 2 mine and plant, we are looking at developing

a modular smelter/refinery beneficiation complex, which would represent

an estimated direct capital investment of USD-800 million. The complex

would be the first integrated zinc manufacturing facility in South Africa

and the largest in Africa. External factors that will make a critical difference

include power security, competitive power tariff, an offtake for the 1 000

tons of sulfuric acid the complex will produce every day and an efficient

freight transport solution. This will have to be supported by an aggressive

spatial development plan for the region.

When will a decision be taken on investing further?

Vedanta has already committed that Phase 2 of Gamsberg will get

underway as soon as is economically and logistically feasible. Phase 1

was executed with a much larger project in mind. We estimate that up

to 12 000 direct and indirect jobs will be created in Phase 2.

How does Vedanta view its responsibility to the people of

the surrounding area?

Vedanta has always viewed the communities surrounding our mines

as partners and stakeholders. Making sure you contribute to improving

the lives of the communities around your operations is simply the right

thing to do.

51

NORTHERN CAPE BUSINESS 2019/20


THE STORY OF GAMSBERG –

HOW VEDANTA IS WORKING TOWARDS

“FULFILLING DREAMS”

IN THE NORTHERN CAPE

Vedanta Zinc International (VZI),

headquartered in Johannesburg, is a

grouping of zinc assets located in South

Africa, Namibia and Ireland, owned by

India-based Vedanta Limited, a listed

subsidiary of Vedanta Resources Limited.

As a globally diversified natural resources

major, Vedanta has interests in zinc, lead,

silver, copper, iron ore, aluminium, power,

and oil and gas.

GAMSBERG TIMELINE

1972

1998

2009-2010

2011

2014

2015

Gamsberg

zinc deposit

discovered by

Okiep Copper

Company (OCC)

Anglo American

acquired 100%

interest in

Gamsberg

Anglo American

pre-feasibility

study, additional

drilling in open

pit area

Vedanta acquired

Black Mountain

and Gamsberg

mines from Anglo

American

Gamsberg

feasibility study

completed and

Phase 1 of project

is approved

Gamsberg project

site breaks

ground


Head office

NAMIBIA

Skorpion

Zinc

Black Mountain Mining

Gamsberg project

SOUTH AFRICA

A major focus on VZI’s growth front is Gamsberg –

a new zinc mine and its associated infrastructure,

Phase 1 of which is now fully operational. VZI’s vision

is to create an integrated world-class regional zinc

complex comprising Black Mountain Mining

(including Gamsberg) and the Skorpion Zinc mining

and refining operations.

Gamsberg is one of the largest zinc deposits in the

world. Although discovered more than 40 years ago,

it was held undeveloped by its various owners before

Vedanta acquired it from Anglo American in 2011.

It has a reserve and resource of more than 214Mt and

an estimated life of mine (LoM) of 30+ years.

Vedanta knew that Gamsberg’s impressive scale would

contribute to its our overall global position in zinc.

Vedanta committed to our South African stakeholders

that the mine would be developed within fi ve years.

Despite being at the height of the global economic

downturn in 2014, Vedanta still took the decision to

go ahead with the project.

2016

2017

2018

2019

2025

Engineering,

procurement and

construction services

contracted awarded

to ELB Engineering

Services Proprietary

Limited

Gamsberg Phase 1

LOM extension

Gamsberg Phase 2

feasibility

Gamsberg officially

opened by President

Cyril Ramaphosa and

Vedanta Chairman

Anil Agarwal

Gamsberg Phase 3


Gamsberg was offi cially inaugurated by

President Cyril Ramaphosa and Vedanta

Chairman Mr Anil Agarwal on 28 February 2019.

Vedanta anticipates that Phase 1 of Gamsberg

will be at full production by mid-2019.

Gamsberg’s development forms part of

Vedanta’s long-term commitment to the

development of the Northern Cape. Vedanta is

one of the largest private sector employers in the

province and the construction of Gamsberg has

had a meaningful impact on the local economy.

WHAT WE ARE WORKING TOWARDS

Now that Phase 1 of Gamsberg – representing an

investment by Vedanta in South Africa of US$400 million –

is officially opened, and is working towards full production,

Vedanta is focusing on Phase 2, and the potential for a

smelter-refi nery complex. Phase 2 would see a larger pit

and a second plant stream, increasing ore production to

8 million tons and concentrate to 450 000 tons per annum.

It would represent a further investment of around

US$350 million.

Vedanta is currently assessing the feasibility of developing

a smelter-refi nery benefi ciation complex – which would

be a direct capital investment of US$800 million. This

benefi ciation complex will have a wider regional and even

national impact, creating industrialisation and employment

(estimates suggest construction will create around

4 000 jobs). The complex would be the fi rst integrated

zinc manufacturing facility in South Africa, and the largest

on the continent.

Vedanta is looking at a range of options to make

the complex a reality. These include:

• Building the complex at Gamsberg in the Northern

Cape – this would have a signifi cant spillover and

multiplier effect – a fertiliser industry, the potential to

accelerate the region’s agricultural activities, a possible

agro-processing industry, and the need (and potential)

for both solar and wind power. Vedanta is working with

government to create a Special Economic Zone which

would support and stimulate this vision.

• Building the complex at a port – Port Nolloth,

Saldanha Bay or Richards Bay – this would signifi cantly

decrease logistics costs, unlock wider economic

opportunities, and position the complex as one of the

top port-based smelters in the world.

The development of Gamsberg Phase 2 will create benefi ts

for communities and for South Africa as a whole. Vedanta’s

estimates suggest that the project phase will generate a


• 3 000 people employed during

construction; 750 people employed

for operations to date

• 34% women employees

• 500 – 1 000 youth in development

programs

• Improved education facilities

for 3 000 learners, 23 students

awarded tertiary bursaries

(2017/18)

• 45 black-owned businesses

supported

• 12 local businesses created –tripled

in value since creation in 2015

once-off contribution to GDP of around R4.3 billion.

Once operational, it should generate around

R6.4 billion per annum – excluding the tax revenue

it will generate. Estimates also indicate that around

12 000 direct and indirect jobs will be created.

Critical success factors

For all of this to happen, Vedanta is dependent on

a number of key external factors, including power

security at competitive tariffs, an offtake for the

approximately 1 000 tons of sulphuric acid the

complex will produce every day and an effi cient

freight transport solution. All of this will have to be

supported by and aggressive spatial development

plan for the region which will allow for the

development of housing and towns closest to the

complex to enable a thriving community.

Our communities are critical stakeholders and partners

in our work. We get our social licence to mine from

them, and Vedanta’s commitment has always been that

we will deliver value to all our stakeholders.

Corporate Social Responsibility plays a critical role in VZI’s

relationships with its communities and employees. The

concept of ‘Business with Purpose’ is one which we take

very seriously. We are obliged to deliver returns for all

stakeholders, not just to shareholders. VZI can extract value

from this vision for our shareholders but more importantly

facilitate value for the communities in which we operate.

CSR spend for BMM

overall sits at over

R17.5 million so far,

with over R8 million

committed.


OVERVIEW

Water

Department of Scientific Services

Water projects are stimulating economic growth.

From providing water for an attempt on a world land speed

record to laying on bulk water facilities for small rural

municipalities — national, provincial and local authorities

have a wide range of challenges to overcome in ensuring

that life is sustained, and economic activity can thrive.

The dry area around Hakskeenpan is ideally suited to driving

vehicles fast but the world record land speed attempt is going to

attract big crowds (and large technical support teams) and so a

special effort has been made to provide infrastructure that will

make sure that a reliable water supply is on tap. This investment

will also secure the venue as a future site of similar open-air events

or competitions.

Six municipalities have been identified for the eradication of

informal settlements. A major obstacle in the municipalities of Sol

Plaatje, Phokwane, Tsantsabane, Dawid Kruiper, Gamagara and

Ga-Segonyana is the lack of bulk water and sanitation facilities.

Ring-fenced funding in terms of the Division of Revenue Act has

been approved.

Two projects being run by the Provincial Government of the

Northern Cape in conjunction with national government departments

relate to water. Solar water heaters are being provided to residents

of the Sol Plaatje Municipality and training for maintenance and

repair is also being offered by the National Department of Energy.

The National Department of Public Works is running a Shared

SECTOR INSIGHT

“Sustaining the source and flow of life forever”

Sedibeng Water has opened

a laboratory in the Northern

Cape.

• Twenty-two villages will

benefit from the Vaal

Gamagara project.

Water Efficiency Programme

on 30 Northern Cape provincial

government properties. The

provincial government has

adopted a Climate Change

Adaptation Response Strategy.

Assets

Two of South Africa’s great

rivers meet in the Northern

Cape at a point south-west of

Kimberley. After absorbing the

Vaal River, the Orange River

NORTHERN CAPE BUSINESS 2019/20

56


OVERVIEW

continues westwards to the Atlantic Ocean and provides the

basis for agriculture all along its path.

North of Kimberley, the confluence of the Vaal and the Harts

rivers encompasses one of South Africa’s most intensely irrigated

areas. The Vaal-Harts irrigation system is one of the most productive

in the country, covering about 38 000 hectares with a variety of

crops. Various water users’ associations (WUAs) representing

particular areas (such as the Vaal-Harts) are recognised by the

national water authority.

Two of South Africa’s biggest dams, the Gariep and Vanderkloof,

also provide water for irrigation and hydro-electric power.

But many parts of the province are dry with sections of the north

and north-west classified as semi-arid and arid. The southern

Kalahari Desert receives rain (sometimes a lot of rain in a very short

space of time) but the fact that mining is a primary economic activity

in the dry regions of the province presents many challenges. The

town of Kuruman is an exception in that it has a natural and prolific

spring, the Eye of Kuruman.

The National Department of Water and Sanitation is consolidating

the country’s water boards into nine regional water utilities. Some

boards have merged to create new entities while others have

extended their area of supply. Sedibeng Water now offers water

supply services across three provinces, including most of the

Northern Cape.

Sedibeng Water’s Central Laboratory, based at Balkfontein

near Bothaville, is a SANAS-accredited facility. A new laboratory

has been built to monitor the quality of water at the revamped

Vaal Gamagara scheme. The laboratory’s four sections cover

Instrumentation, Wet Chemistry, Sewage and Microbiology. When

the laboratory gains SANAS accreditation, it will be the first in the

province to have such a rating. The water laboratory image is

supplied by Sedibeng Water.

Projects

The Vaal Gamagara and Namakwa bulk water supply projects hold

the key to boosting the mining sector and laying the foundation

for expansion in outlying districts. The projects will give additional

security to mines, businesses and households in the target areas.

ONLINE RESOURCES

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

South African Association of Water Utilities: www.saawu.org.za

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

Water Research Commission: www.wrc.org.za

Engineering group ELB

Group has been appointed by

Vedanta Zinc International to

do a wide range of jobs at its

new Gamsberg project. This

includes laying a water pipe from

the Orange River to the mining

company’s processing plant.

The town of Springbok has

been plagued by water supply

problems for several years, with

pipes failing on a regular basis.

The copper mining company

that used to see to water delivery

operations in the area has closed

down. The Namakwa water

project will deliver water to about

11 000 households. Twenty-two

villages in six municipalities will

benefit from the Vaal Gamagara

Refurbishment and Upgrading

Project.

The existing scheme, run

by Sedibeng Water, supplies

about 22-million m³ of water

to industry, mines, agricultural

enterprises and domestic

users, but demand is growing.

Existing manganese and

iron ore mines near Hotazel

and Kathu are heavy water

users and if any new mines

are to be considered in the

area, a reliable water supply

is needed. The cost of the

project, which falls under the

National Department of Water

and Sanitation, is R18-billion.

Sedibeng Water has been

selected as the implementing

agent for the project and it will

work with the Kgalagadi Joint

Venture. Once the project

is complete, the scheme

will be able to deliver water

to neighbouring country,

Botswana.

57 NORTHERN CAPE BUSINESS 2019/20


OVERVIEW

Renewable energy

Technical innovation comes to the Northern Cape.

SECTOR INSIGHT

The tower at Khi Solar One is

one of South Africa’s tallest

structures.

The renewable energy revolution is speeding up. In recent

months, landmarks such as the start of commercial

operations by the 100MW Kathu Solar Park and the

reaching of financial closure of the 147MW Roggeveld

Wind Farm mark what can be described as the first phase of the

coming of renewable energy to South Africa.

In less than a decade, an entirely new sector has been created

through legislation that invited local and foreign investors to bid

for and then build renewable energy generation plants. South

Africa’s National Development Plan (NDP) requires 20 000MW of

renewable energy by 2030. That will be achieved mainly through

the Renewable Energy Independent Power Producer Procurement

Programme (REIPPPP).

The wind and solar parks now spreading over the vast spaces

of the Northern Cape indicate that renewable energy has well

and truly arrived.

Projects such as Kathu Solar Park, a concentrating solar power

(CSP) project, and the Roggeveld Wind Farm are indicative of the

large scale of most of the energy generation that is being rolled

out, but at Black Rock Mine solar power is being put to use on

a smaller, but no less important scale. To light the intersections

leading to the mine, BEKA Schréder has installed solar-powered

street lights.

The 2018 signing ceremony by new Energy Minister Jeff Rabebe

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.

When a group of dignitaries

gathered a month after that

important signing ceremony

to inaugurate a solar plant that

covers 300ha in the Northern

Cape, there was therefore a lot

of optimism in the air. National

government’s confirmation of its

commitment to the REIPPPP is

vital for growth. Approximately

60% of the projects so far

allocated have been in the

nation’s sunniest province.

Xina Solar One is located at

Pofadder on the N14 between

Upington and Springbok. The

R9.4-billion project is a joint

venture between Spanish

energy firm Abengoa Solar,

the Industrial Development

Corporation (IDC), the Public

Investment Corporation (PIC) and

a community trust representing

the local population. The plant is

Abengoa’s third in the Northern

Cape. Kaxu Solar One is also

near Pofadder but Khi Solar One

is closer to Upington. All three

use concentrated solar power

which reflects the sun’s rays

NORTHERN CAPE BUSINESS 2019/20

58


OVERVIEW

during the day in to a molten salt storage system. The energy

is then slowly released during the night. The 205m tower that

collects the rays at the Khi Solar One site is one of the tallest

structures in South Africa. The image across two pages that

introduces the sector overviews (pages 38 and 39) shows the

tower at Khi Solar One.

The Northern Cape is the natural home for the generation of

solar power. Long-term annual direct normal irradiance (DNI)

at Upington is 2 816kWh/m², according to a survey done for

Stellenbosch University by Slovakian company GeoModal Solar.

South Africa’s national average is among the best in the world.

Stellenbosch University’s Solar Thermal Energy Research Group

has six sites monitoring irradiation levels.

The small towns of Postmasburg and Groblershoop lie between

Upington and Kimberley. They are modest settlements which

have ticked along in support of surrounding farmers with some

diamond mining and wine cultivation. They are now the centre

of some of the world’s most advanced technological innovation

in concentrated solar power.

Saudi Arabian electricity group ACWA Power has won approval

for the 100MW Redstone project near Postmasburg and the

50MW Bokpoort CSP plant near Groblershoop is in operation.

Large wind projects are also winning approval in the Northern

Cape. The commissioning of the 100MW De Aar Wind Power

Project brings together Mulilo Renewable Energy and the China

Longyuan Power Group Corporation.

Commercial operations have begun on Khobab Wind Farm

and Loeriesfontein Wind Farm, collectively providing 280MW via

61 wind turbines. The projects were developed by Lekela Power,

a joint venture between Actis and Mainstream Renewable Power.

Noblesfontein (main picture) was one of the earliest wind farms to

be constructed in the Northern Cape, about 40km from Victoria

West. Spanish company Gestamp Wind was an early investor.

The 147MW Roggeveld Wind Farm, which has 47 Nordex wind

ONLINE RESOURCES

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

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

South African Photovoltaic Industry Association:

www.sapvia.co.za

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

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

ACWA Power’s Bokpoort

CSP project uses innovative

technology. (Image: Abengoa).

turbines and was developed by G7

and then taken over by Building

Energy, will operate commercially

in the first quarter of 2021.

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.

59 NORTHERN CAPE BUSINESS 2019/20


OVERVIEW

Banking and finance

New banks are targeting niche markets.

News in 2018 that a mutual bank in Limpopo had been

hollowed out by corrupt activities put the spotlight on

banking practice in South Africa. Mutual banks do not

offer full-service banking but focus rather on encouraging

savings and providing benefits to their depositors.

Despite the experience in Limpopo, the appetite for mutual

banks is strong, given the nature of the South African market. The

Young Women in Business Network (YWBN) intends applying for a

mutual bank licence in 2019. Bank Zero will use the mutual model

while other new entrants such as Timebank (free transactional

accounts) and Discovery Bank (which will apply the behavioural

model it uses in its health business to reward good financial

behaviour) are introducing innovations.

South Africa’s four big retail banks (Nedbank, Absa, Standard

Bank and First National Bank) have a solid presence in the major

towns in the province. Capitec is rapidly moving towards being part

of a Big Five and it announced in 2018 that it would partner with

Centriq Life to enter the insurance market.

The established banks have specialists in the province and

dedicated units such as Nedbank Agribusiness. Focus areas for

this unit are agronomy (grain, oil seeds, sugar and cotton), livestock

(including game farming), horticulture (fruit and vegetables, for

example), and secondary agriculture which covers agricultural

processing and storage.

With the renewable energy sector booming in South Africa, a

whole new sector in need of project funding has opened up for

banks. The Northern Cape has attracted a high percentage of

independent power producers which have won the right to build

power plants, especially in the solar power sector.

The other new sector is astronomy as represented by the

Square Kilometre Array project. This will attract investments, one

of the first of which is in education by Absa Bank. The bank has

ONLINE RESOURCES

Association for Savings and Investment South Africa:

www.asisa.org.za

Chartered Institute for Government Finance, Audit and Risk

Officers: www.cigfaro.co.za

Financial Services Board: www.fsb.co.za

SECTOR INSIGHT

Sol Plaatje University has

received R4.5-million from

Absa Bank for Data Science.

given R4.5-million to Sol Plaatje

University to develop the field of

Data Science.

The Land and Agricultural

Development Bank of South

Africa (Land Bank) is a major

participant in the Northern

Cape financial sector and

the Industrial Development

Corporation (IDC), as an equity

investor in several businesses

in strategic sectors, is another

important player.

Most agricultural companies

in the Northern Cape have

financing and services

divisions, as one would expect

in a province with a strong and

varied agricultural sector which

exports much of its produce.

GWK has six units within its

Corporate Services division and

these mostly relate to finance:

Finance, Financing, Risk

Management, and Financial

Agricultural Advice.

In 2017 Senwes and its

holding company Senwesbel

became the first new stocks to

be listed on the country’s new

stock exchange, the ZAR X.

Upington-based KLK Landbou

offers insurance and medical

cover while OVK has insurance

and financing options.

NORTHERN CAPE BUSINESS 2019/20

60


Development finance and

SMME support

An industrial park at Kathu will boost SMMEs.

An opportunity to move materials and do production drilling

for Kumba Iron Ore has not only spurred Kele Mining

Solutions, a Northern Cape SMME, to hire 150 people,

it has led to the establishment of a subsidiary logistics

company. Kefilwe and Jomo Khomo (pictured with some of their

staff) experienced a huge increase in turnover when they teamed

up with minerals giant Kumba, which has set aside R1-billion

specifically for local procurement and supplier development. The

company’s supplier development programme also gives advice

on business practices and marketing. With a head office in Kathu,

Kele is expanding to the platinum sector in Rustenburg and looking

for business in Botswana. The Khomos are also doing their bit for

SMME development by contracting other local businesses when

they can.

SMMEs will be catered for in the planned Kathu Industrial Park

which is being supported by the Industrial Development Corporation

(IDC) and companies in the mining sector. The focus of the park will

be metals. The park’s infrastructure will enable smaller companies

to be in a position to tender for supply contracts to mines.

The Industrial Development Corporation is one of the biggest

funders of projects in the Northern Cape. Through the IDC’s

Transformation and Entrepreneurial Scheme, a black economic

empowerment project is underway at Kakamas, where emerging

farmers are planting citrus.

A 2018 conference on renewable energy laid out opportunities

in this growing sector for interested SMMEs. The theme of the

conference was “Driving economic growth and transformation

through renewable energy”.

A provincial local economic development (LED) forum was held

with a focus on finance and commercial banking. The opportunities

for small, medium and micro-enterprises (SMMEs) were explained

ONLINE RESOURCES

Industrial Development Corporation: www.idc.co.za

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

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

SECTOR INSIGHT

OVERVIEW

Kumba will spend R1-billion on

local suppliers and procurement.

and various supplier development

and training programmes were

detailed.

The provincial government

supports small enterprises, rural

enterprises and co-operatives

through business and financial

management training and

procurement of goods from

SMMEs. In partnership with the

Small Enterprise Development

Agency (Seda), cadets receive

training before receiving work

places at various municipalities.

There is a plan to create a

Provincial Incubation Strategy

and planners are also looking into

creating a specialist Renewable

Energy Incubator to support

smaller entrants into that growing

sector. Many programmes focus

on agricultural production and

food security.

61 NORTHERN CAPE BUSINESS 2019/20


PROFILE

Northern Cape Chamber

of Commerce and Industry

Your ultimate business connection.

Our heritage in brief

NOCCI was established on 22 February 2000

when the Chamber of Business and the Kimberley

Afrikaanse Sakekamer amalgamated. At the time,

these two organisations had served the business

community of Kimberley for 120 years.

Membership advantages

A Chamber assesses and evaluates the needs of

the local business community, especially regarding

the need for services to small business at a

reasonable cost:

• Monitors developments at the local level

• Mobilises business opinion on local issues

• Exerts a positive influence on the environment in

which business operates and helps prospective

members grow their business

• Promotes and encourages the pursuit of a high

standard of business ethics

From left: Hannes van Niekerk, Riaan Vorster, Marie Parsons

(NOCCI President), Innes Joubert, Jan van Vuuren, Tasneem

Motlekar, Charlene Zondagh, Pieter Serfontein and Jaime

Goncalves. Absent: Mr Gerrie Cloete, Mr Harry Hurndall

and Ms Nicola Smith

• Disseminates information that is useful to the

business fraternity

• Creates opportunities for improving business skills

• Extends business contacts locally, regionally and

nationally, and allows individual businesspeople

to share in the provincial and national business

decision-making processes

• Upholds the market economy and private

enterprise system

• Has committees which are ideal places for

members of diverse interests to consolidate

and unify their thinking as they work together –

committees accurately sense the environment,

process information and provide valuable

guidance to the member

• Holds functions and special events, allowing members

to network and learn about interesting topics

Through affiliation with national organised business

structures, the “Voice of Business” is representative

as memberships grows. The “Voice of Business” is a

binding force combining the skills and influences of

men and women engaged in all forms and sectors

of business.

Can you afford not to belong?

The increasingly complex business and social environment

requires a comprehensive support structure

to ensure the most favourable climate for the

continued viable existence of individual businesses

in a system of free enterprise. At the same time,

the Chamber movement facilitates adjustment by

business to those realities that cannot be altered.

Involvement in the Chamber movement bears

abundant fruit for the well-being of each business.

NORTHERN CAPE BUSINESS 2019/20

62


EXPO AND TRADE FAIR

Hosted by NOCCI in association with OFM

KIMBERLEY: 1 - 3 AUGUST 2019

MITTAH SEPEREPERE

CONVENTION CENTRE

PROFILE

NOCCI staff: Cornel Snyman - PA, Sharon Steyn - CEO and

Beverley Deke - Members Manager

Thousands of successful businesspeople can testify

to the enrichment of their own skills and the development

of a network base through active participation

in the Chamber affairs. If you are a businessperson

with vision, you cannot afford not to join the Chamber

movement.

Executive Committee of NOCCI

President: Marie Parsons (Parsons Home Appliances)

1st Vice-Chairperson: Riaan Vorster (GW Rugby Union)

2nd Vice-Chairperson: Charlene Zondagh (Halsted)

Treasurer: Jan van Vuuren (Bishops Lodge)

Executive members: Hannes van Niekerk (Super

Armature Winding), Innes Joubert (GWK), Tasneem

Motlekar (Engelsman Magabane), Pieter Serfontein

(Hancor Dairy), Jaime Goncalves (KEW), Harry Hurndall

(Roburn Construction)

Staff: Sharon Steyn (CEO), Cornel Snyman (PA to CEO),

Beverley Deke (Members Manager).

CONTACT INFO

CEO NOCCI: Kimberley: Sharon Steyn

Tel: +27 53 831 1081 | Fax: +27 53 831 1082

Cell: 083 457 8148 | Email: Sharon@nocci.co.za

Website: www.nocci.co.za

Face -to-face interaction is the best way to build

business relationships with suppliers and peers.

Who will attend?

Corporate managers, engineers, sales

managers, plant managers, the public, research/

development and purchasers.

What NOCCI Expo and Trade Fair offers

NOCCI offers you the keys to gaining a competitive

edge. In a single trip, you can visit all

your vendors. You have a chance to source new

suppliers, get ideas from other industries and

pursue professional development.

No other show in the Northern Cape offers so

much.

Stands

The Expo has grown from 62 stands. In

2018, a total of 176 stands were sold.

Stands are located in the auditorium of the

convention centre. Seize this amazing opportunity

and BOOK YOUR STAND NOW.

NOCCI Members: R7 000

Non-members: R8 600

Contact Beeda on 083 279 2929

Stalls now open for 2019

63

NORTHERN CAPE BUSINESS 2019/20


INDEX

INDEX

Black Management Forum (BMF) ..................................................................................................................... 5

Nedbank........................................................................................................................................................... 34-37

Northern Cape Chamber of Commerce and Industry (NOCCI) ............................................................62

Northern Cape Department of Economic Development and Tourism ................... IFC, 10-25, OBC

SA Airlink............................................................................................................................................................... IBC

Sol Plaatje University ...........................................................................................................................................32

South African Table Grape Industry (SATI) ..................................................................................................46

Upington Special Economic Zone (SEZ).......................................................................................................26

Vedanta Zinc International ................................................................................................................. 51, 52-55

NORTHERN CAPE BUSINESS 2019/20

64


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flyairlink.com @fly_airlink Fly Airlink


Promotion of Economic Growth and Economic

Development in the Northern Cape Province

Physical: Metlife Towers,

13th Fl, Cnr Stead & Knight Sts, Kimberley, 8309

Postal: Private Bag X6108, Kimberley, 8300

Tel: 053 839 4000 | Fax: 053 832 6805

Web: http://economic.ncape.gov.za

Email: dedat@ncpg.gov.za

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